Mr. R. James Matthews reports

ARMADA ANNOUNCES Q2 2016 RESULTS

Armada Data Corp. has released its interim financial results for the quarter ended Nov. 30, 2015, now filed on SEDAR and available to view on the company's website.

                                          SELECTED QUARTERLY INFORMATION

Fiscal year                               2016     2016     2015     2015     2015     2015      2014      2014    
Quarter ended                          Nov. 30, Aug. 31,  May 31, Feb. 28, Nov. 30, Aug. 31,   May 31,  Feb. 28,  
                                          2015     2015     2015     2015     2014     2014      2014      2014    

Total revenue                         $545,409 $528,853 $463,056 $466,797 $526,884 $552,035  $437,930  $501,013 
Comprehensive income (loss)             34,364   70,175 (505,629) (52,028) (71,214) (11,563) (289,672)  (75,815)
Comprehensive income (loss) per share    $0.00    $0.00   $(0.03)   $0.00    $0.00    $0.00    $(0.02)    $0.00   

The prior-period comparative figures have been reclassified, where necessary, to conform to the current-period presentation.

Operations

The company's total sales decreased by 6 per cent in the quarter ended Nov. 30, 2015, from $580,517 in 2014, to $545,409. Comprehensive income increased from a loss of ($71,214) in the period ended Nov. 30, 2014, to $34,364 in the period ended Nov. 30, 2015.

The insurance services division experienced an 11-per-cent increase in revenue, from $252,525 in 2014 to $280,719 in 2015.

The retail services division revenue was down 22 per cent to $64,727 in 2015 from $82,826 in 2014. The updated car cost Canada website, as well as the new partners and discounts program, clearly helped the car cost Canada membership program maintain a strong presence in the marketplace, despite increasing competition.

The dealer services division revenue remained much the same, at $161,981 in 2014, and $162,013 in 2015. This division's dealer development team has a plan to service the customers who find themselves without a dealer referral, although full implementation of this program has not been completed at the end of this period.

The advertising/marketing services division, which derives its revenue from the sale of on-line third party advertising on the car cost Canada website and the car magazine website, increased from $100 to $7,298.

The information technology division revenue increased 11 per cent to $30,652 in 2015, up from $27,550 in 2014. IT continues to offer technical support and website hosting to hundreds of customers and to develop new customer relationships on a regular basis.

The Mister Beer division's revenues are down from $55,535 to nil. Direct product costs and labour decreased from $53,633 to nil. The net income for Mister Beer Inc. went from $1,902 in 2014 to nil in 2015. Management made the decision to close the production facility on Dec. 31, 2014, to explore options with respect to a sale or other disposition of the Bottle Brew business line. This division's assets were disposed of during the period ended Nov. 30, 2015.

Total expenses before amortization decreased to $500,984 compared with $561,314, an 11-per-cent decrease over last year. This is attributed to ceasing production at Mister Beer and continued cost-cutting measures implemented by management during the previous quarter.

The bank indebtedness decreased from ($161,983) at Nov. 30, 2014, to nil at Nov. 30, 2015, as a result of acquiring addition financing from a company owned by a director of Armada Data.

Accounts receivable decreased by 1 per cent to $299,594 as at Nov. 30, 2015, compared with $303,080 last year. Related-party accounts receivable decreased from $6,770 to $4,037.

Accounts payable increased to $293,011 as at Nov. 30, 2015, from $212,765 a year earlier. Related-party accounts payable decreased to $4,538 as at Nov. 30, 2015, from $8,243 last year.

Despite the comprehensive income reported by the company for this period, the company's deficit increased to ($1,730,277) as at Nov. 30, 2015, compared with a deficit of ($1,277,159) last year, attributable to the writedowns of Mister Beer assets at May 31, 2015.

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

Related-party transactions

Salaries and expenses are paid to an officer of the company, who is also 50-per-cent shareholder of Lease Busters Inc. Legal fees are paid to a law firm, of which a partner is a (non-remunerated) director of the company. Financing was acquired from a company owned by a director of Armada Data, and interest is paid monthly to this related party. All of the actual costs noted in this section are paid at fair market value in the normal course of business.