Mr. James Matthews reports

ARMADA ANNOUNCES Q2 2017 RESULTS

Armada Data Corp. has filed its interim financial results for the quarter ended Nov. 30, 2016, on SEDAR. The financials are available to view on the company's website and on SEDAR.

                                    SELECTED QUARTERLY INFORMATION
   
Fiscal year           2017      2017      2016      2016      2016      2016      2015      2015    

Quarter            Nov. 30,  Aug. 31,   May 31,  Feb. 29,  Nov. 30,  Aug. 31,   May 31,  Feb. 28,  
ended                 2016      2016      2016      2016      2015      2015      2015      2015 
   
Total revenue      624,214   587,134   661,263   522,663   545,409   528,853   463,056   466,797 
Comprehensive 
income (loss)      117,740   144,853    97,589    81,419    34,364    70,175  (505,629)  (52,028)
Comprehensive 
income (loss) 
per share            $0.01     $0.01     $0.01     $0.00     $0.00     $0.00    $(0.03)    $0.00   

The prior periods' comparative figures have been reclassified where necessary to conform to the current period's presentation.

Operations

The company's total sales increased by 14 per cent in the quarter ended Nov. 30, 2016, from $545,409 in 2015, to $624,214. Comprehensive income increased from $34,364 in the period ended Nov. 30, 2015, to $117,740 in the period ended Nov. 30, 2016.

The insurance services division experienced a 25-per-cent increase in revenue, from $280,719 in 2015, to $352,176 in 2016. This is a continuing result of expanding upon existing customer relationships, mergers and acquisitions within the Canadian insurance company landscape, and policy-driven mandates within insurance companies to use the Armada Insurance Services replacement value settlement protocol.

The retail services division revenue was down 15 per cent to $55,260 in 2016 from $64,727 in 2015.

The dealer services division revenue decreased 4 per cent, from $162,013 in 2015, to $155,775 in 2016.

The advertising/marketing services division, which derives its revenue from the sale of on-line third party advertising on the Car Cost Canada and The Car Magazine websites, increased from $7,298 to $26,700.

The information technology division revenue increased 12 per cent to $34,303 in 2016, up from $30,652 in 2015. The information technology division continues to offer technical support and website hosting to hundreds of customers, and to develop new customer relationships on a regular basis.

Total expenses before amortization decreased to $496,696, compared with $500,984, a 1-per-cent decrease over last year.

Cash on hand increased from $196,813 as at Nov. 30, 2015, to $457,723 as at Nov. 30, 2016.

Accounts receivable increased by 46 per cent, $334,324 as at Nov. 30, 2016, compared with $229,594 last year. Related party accounts receivable increased from $4,037 to $4,166.

Accounts payable decreased to $160,951 as at Nov. 30, 2016, from $293,011 a year earlier. Related party accounts payable decreased to $1,894 as at Nov. 30, 2016, from $4,538 last year.

The company's deficit decreased to $1,288,676 as at Nov. 30, 2016, compared with a deficit of $1,730,277 last year.

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. Office space is rented from Lease Busters. 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 to this company on a monthly basis. All of the actual costs noted in this section are paid at fair market value in the normal course of business.

Revenues earned by the divisions are shown in the attached table.

  
                                   Three months ended   Three months ended         Year ended                 
                                        Nov. 30, 2016        Nov. 30, 2015       May 31, 2016 

Insurance services                        $   352,176          $   280,719        $ 1,108,745
Retail services                                55,260               64,727            227,038
Dealer services                               155,775              162,013            660,540
Internet technology                            34,303               30,652            121,289
Advertising/marketing services                 26,700                7,298             74,624
                                          -----------          -----------        -----------
Total revenue -- Armada Data                  624,214              545,409          2,192,236
                                          -----------          -----------        -----------
Revenue -- Mister Beer Inc.                         -                    -             17,578
Less direct product
costs/wages -- Mister Beer                                                             48,374
                                          -----------          -----------        -----------
Total revenue -- Mister Beer                        -                    -             65,952
                                          -----------          -----------        -----------
Total consolidated revenue                $   624,214          $   545,409        $ 2,258,188
                                          ===========          ===========        ===========

About Armada Data

Armada Data provides accurate and real-time data to institutional and retail customers through developing, owning and operating automotive pricing-related websites, and providing information technology and marketing services to its clients.