An anonymous director reports

ARMADA RELEASES ANNUAL RESULTS

Armada Data Corp.'s annual financial results for the year ended May 31, 2014, have now been filed on SEDAR and are available to view on SEDAR and at the company's website.

                                        SELECTED ANNUAL INFORMATION 
                                                                       Fiscal year ended
                                                       May 31, 2014   May 31, 2013   May 31, 2012   May 31, 2011

Total revenue                                            $2,260,200     $2,587,922     $3,110,921     $3,061,762
(Loss) income before taxes                                $(137,853)     $(424,721)     $(621,774)      $397,263
Income taxes                                               $102,289       $122,504        $14,906       $126,321
Comprehensive (loss) income after taxes                   $(240,142)     $(547,225)     $(636,680)      $270,842
Comprehensive (loss) income per share                        $(0.01)        $(0.03)        $(0.04)         $0.02

The company's total revenue decreased by 13 per cent in 2014 from $2,587,922 to $2,260,200. The company reported a comprehensive loss of $240,142, due to the following factors:

• The continuing monthly operating losses incurred by the Mister Beer division. The losses amounted to an annualized amount of $542,834.
• Despite the significant monthly operating losses, the division made positive strides in the production facility by way of developing an all-new brewery team since the resignation of brewmaster, Stefan Riedelsheimer. Although the management salaries in this division were reduced, there were significant training costs to rebuild the production team.
• Management's decision to discontinue offering outside Web development services, to concentrate fully on internal development.
• The company decided to not offer third party advertising on its websites for security reasons.

Armada Data's core data business earned a before-tax profit of $404,983, which was allocated to absorb the continuing operating losses sustained by Mister Beer Inc.

The prior-period comparative figures have been reclassified, where necessary, to conform to the current-year presentation. Armada's consolidated statement reflects a loss, before corporation income taxes, of ($137,853). This is a decrease compared with the loss of ($424,721) in 2013. This loss is the result of the Mister Beer operating loss of $542,834.

Corporation income taxes are $102,289 in 2014, compared with $122,504 in 2013.

Total expenses before amortization decreased to $2,222,133 compared with $2,539,630, a 13-per-cent decrease over last year.

Management engaged in many cost-cutting measures to reduce expenses in 2014, including reductions in advertising, salaries and wages, computer consulting, and selling fees. The bank indebtedness increased slightly from ($200,008) at May 31, 2013, to ($200,946) at May 31, 2014, attributed to subsidizing the monthly operating losses incurred by the Mister Beer division.

Accounts receivable increased to $244,777 as at May 31, 2014, from $398,540 last year.

Related-party accounts receivable increased from $3,277 to $5,255. Accounts payable decreased to $191,823 as at May 31, 2014, from $311,291 a year earlier.

Related parties accounts payable increased to $45,771 as at May 31, 2014, from $7,983 last year.

Corporation income taxes payables are $106,601 as at May 31, 2014, compared with $108,650 as at May 31, 2013. As a result of the loss reported by the company in 2014, the company's retained earnings decreased to a deficit of ($1,194,382) as at May 31, 2014, compared with a deficit of ($954,240) last year.

No dividends were paid out to shareholders in fiscal 2014 or fiscal 2013.

Management does not plan on issuing any dividends until further notice.

Outlook

The company's outlook is to continue to increase sales, update and improve its data services products and services, and deliver significantly better results to shareholders by way of the following:

• Build on the historical success of the company's continuing sales and marketing efforts focused on increasing sales at retail services, dealer services and insurance services;
• Exploit market awareness and demand for new vehicle pricing information and dealer referrals that result from the additional competition within that market space;
• Put more emphasis on outside partners, data outsourcing and the underutilized on-line magazine, The Car Magazine;
• Continue to improve relationships with some of the largest insurance companies in Canada and partner with some of these organizations to produce new products and services for their vast client base;
• Maintain operating expenses and achieve the economies of scales of an Internet-based business;
• Expand third party fee-based on-line advertising, by developing improved and more secure advertising methods.