Mr. James Matthews reports

ARMADA ANNOUNCES Q3 2013 RESULTS

Armada Data Corp. has filed its interim financial results for the quarter ended Feb. 28, 2013, on SEDAR. The results are available on the company's website as well as on SEDAR.

Highlights for the quarter compared with the same quarter last year

• The Mister Beer Inc. division's new production facility is fully operational, and has accepted and filled its first significant order, the biggest in Mister Beer's history;
• Capital investment of $854,156 in the new facility;
• Wages and other office expenses have been reduced by 30 per cent, from $829,245 to $581,492, due to staffing efficiencies and other cost-saving efforts.

Revenue for the quarter ended Feb. 28, 2013, decreased to $612,327 versus $742,239 for the same period in 2012, or a decrease of 18 per cent.

The company recorded comprehensive income before corporate income tax provision of $26,633 compared with a comprehensive loss of $71,441 last year, an increase of 137 per cent. This change is a direct result of the reduction of divisional expenses, offsetting the divisional loss in the Mister Beer operations.

Cash on hand decreased from $495,688 at Feb. 29, 2012, to an overdraft of $214,100 at Feb. 28, 2013. This cash on hand reduction is directly attributed to the acquisition of a 90-per-cent interest in TBE/Mister Beer. In addition, capital investments in the new Mister Beer brewery have had and will continue to have significant impact in the company's cash on hand. The company has obtained a credit facility from its bank to assist in day-to-day operations. In January, 2013, the company closed a non-brokered private placement of 1,111,111 common shares at nine cents per share for gross proceeds of $100,000.

Insurance services

Revenue in this division decreased by 23 per cent from $294,849 to $228,010. Insurance services contributed 37 per cent of the company's total revenue in this quarter. Reduction of expenses allows this division to remain profitable.

Retail services

Revenue was down to $95,543 from $115,306, or 17 per cent. The division contributed 16 per cent of the company's total revenue.

Dealer services

This division's revenue decreased by 9 per cent (to $180,936 from $198,474), expected due to the division's productivity being directly related to CarCostCanada membership sales. Due to efficiencies made by management, the percentage decrease is not as great as the decrease in the retail services division. The division contributed 30 per cent of the company's total revenue.

Internet technologies

The Internet technologies (IT) division decreased its revenue by 4 per cent, from $72,172 to $69,071, and contributed 11 per cent to the company's total revenue. It also provides the additional benefit of keeping all the many and varied IT expenditures in house.

Advertising/marketing

Revenue was down to $8,269 from $22,268 (63 per cent). The contribution to total revenue was 1 per cent this quarter.

Mister Beer

Mister Beer had gross sales of $145,682, less $115,184 of direct costs and labour, to report net revenue of $30,498 and contributed 5 per cent to the company's total revenue. In the quarter ended Feb. 29, 2012, this division had gross sales of $94,060 less $54,890 direct costs for net revenue of $39,170. Inventory on hand increased to $154,376 at Feb. 28, 2013, compared with $50,318 at Feb. 29, 2013.