Mississauga, Ontario (FSCwire) - Armada Data Corporation (TSX.V: ARD) is pleased to report its interim financial results for the quarter ended August 31, 2014 have now been filed on SEDAR and are available to view on the Company’s website www.ArmadaData.com as well as on SEDAR at www.SEDAR.com .
Selected Quarterly Information
Fiscal Year | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | 2013 |
Quarter Ended | Aug-31, 2014 | May-31, 2014 | Feb-28, 2014 | Nov-30, 2013 | Aug-31, 2013 | May-31, 2013 | Feb-28, 2013 | Nov-30, 2012 |
Total Sales | 570,012 | 456,549 | 629,869 | 704,626 | 764,576 | 731,644 | 727,511 | 738,763 |
Cost of Goods Sold | (17,977) | (18,619) | (128,856) | (85,911) | (62,034) | (110,123) | (115,184) | (63,475) |
Gross Operating Profit | 552,035 | 437,930 | 501,013 | 618,715 | 702,542 | 621,521 | 612,327 | 675,288 |
Comprehensive (Loss) Income | (2,267) | (331,393) | (58,352) | (5,338) | 154,941 | (519,430) | 26,633 | (31,503) |
Comprehensive (Loss) Income per Share | $0.00 | $(0.02) | $(0.01) | $0.00 | $0.01 | $(0.03) | $0.01 | $(0.01) |
The prior periods’ comparative figures have been reclassified where necessary, to conform to the current period’s presentation.
Operations
The Company’s total sales decreased by 25% in the quarter ended August 31, 2014, from $764,576 in 2013 to $570,012. Gross operating profit of $552,035 in 2014 is a decrease of 21% over $702,542 in 2013.
The Company reported a comprehensive loss of $(2,267) this quarter, compared to comprehensive income of $154,941 last year due to the following factors:
- The ongoing monthly operating losses incurred by the Mister Beer division – for this quarter, $(92,956). 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.
- Management’s decision to discontinue offering outside web development services, in order to concentrate fully on internal development.
- The Company decided to not offer third-party advertising on its web sites for security reasons.
NOTE: Armada Data Corporation’s core “data” business earned a before tax profit of $90,689, which was allocated to absorb the ongoing operating losses sustained by Mister Beer Inc.
The Insurance Services division experienced a decrease in revenue, from $284,400 in 2013 to $216,375 in 2014, or by 24%. The decrease in revenue was the result of unusual flooding in Alberta and Ontario the summer of 2013, resulting in an unusually high number of claims.
The Retail Services division revenue was down 15% to $105,473 in 2014 from $123,482. The updated CarCostCanada.com website, as well as the new Partners and Discounts program clearly helped the CarCostCanada.com membership program maintain a strong presence in the marketplace, despite increasing competition. Management believes these improvements have assisted in slowing the downward trend that the membership sales have been on, and have formulated a plan to realize sustained growth, increased market share and new partnerships. These improvements should start to be realized in fiscal 2015, and the Company will keep building on these strategies in future years.
The Dealer Services division revenue decreased by 11%, from $205,512 in 2013 to $182,958 in 2014, due to the past decreases in membership sales, which drive the dealer lead generation program, but also due to some manufacturer intervention on the part of an automaker that discourages their dealer-body from participating in any type of third-party lead generation program. 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 will not be complete immediately.
The Advertising/Marketing Services division, which derives its revenue from the sale of online third party advertising on CarCostCanada.com and TheCarMagazine.com decreased from $7,466 to $662, or 91%. This reduction was due to CarCostCanada’s decision to further secure the websites from ecommerce fraud, site hacking and online intruders; management continues to look into technology that will allow us to provide customers with a fully secure website while we deliver third party advertisements.
The Information Technology division revenue decreased 28% to $25,372, down from $35,090. This reduction is solely due to management’s decision to devote its resources to internal web development only. IT continues to offer technical support and web site hosting to hundreds of customers, and develop new customer relationships on a regular basis.
The Mister Beer division’s revenues are down from $108,626 to $39,172 or 64%. Direct product costs and labour decreased by 71%, from $62,034 to $17,977. The net revenue for Mister Beer Inc. went from $46,592 in 2013 to $21,195 in 2014, a decrease of 55%. Mister Beer Inc decided not to support the bulk wort sales to independent brew-your-own businesses due to licensee discontent, collection problems and delivery challenges. The Mister Beer division is now a listed vendor with Home Hardware, and is now undergoing a test opportunity with Canadian Tire convenience stores in Ontario.
Total expenses before amortization increased to $526,813 compared to $519,449, a 1% increase over last year.
The bank indebtedness increased from $(134,783) at August 31, 2013 to $(227,620) at August 31, 2014, attributed to subsidizing the monthly operating losses incurred by the Mister Beer division.
Accounts receivable decreased to $275,852 as at August 31, 2014 from $487,518 last year.Related party accounts receivable decreased from $4,719 to $3,937.
Accounts payable decreased to $212,140 as at August 31, 2014 from $252,587 a year earlier.Related parties accounts payable decreased to $6,126 as at August 31, 2014, from $6,547 last year.
As a result of the loss reported by the Company for this period, the Company’s retained earnings decreased to a deficit of $(1,110,873) as at August 31, 2014 compared to a deficit of $(767,807) last year.
Management does not plan on issuing any dividends until further notice.
Revenues earned by the divisions are as follows:
| | | 3 months ended | | 3 months ended | | year ended | |
| | | August 31, 2014 | | August 31, 2013 | | May 31, 2014 | |
| | | | | | | | |
Insurance Services | | $216,375 | 39% | $284,400 | 40% | $983,405 | 44% |
Retail Services | | 105,473 | 19% | 123,482 | 18% | 437,734 | 19% |
Dealer Services | | 182,958 | 33% | 205,512 | 29% | 676,995 | 30% |
Internet Technology | 25,372 | 5% | 35,090 | 5% | 104,654 | 5% |
Advertising/Marketing Services | 662 | 0% | 7,466 | 1% | 8,336 | - |
Total revenue - Armada Data Corp | 530,840 | 96% | 655,950 | 93% | 2,211,124 | 98% |
| | | | | | | | |
Revenue - Mister Beer Inc. | 39,172 | | 108,626 | | 344,496 | |
Less: Direct product costs/wages - Mister Beer Inc. | (17,977) | | (62,034) | | (295,420) | |
Total revenue - Mister Beer Inc. | $21,195 | 4% | $46,592 | 7% | $49,076 | 2% |
Total consolidated revenue | $552,035 | 100% | $702,542 | 100% | $2,260,200 | 100% |
About Armada Data Corp.
Armada Data is a Canadian publicly traded Information & Marketing Services Company providing accurate and real-time data to institutional and retail customers, through developing, owning and operating automotive pricing-related web sites and providing information technology and marketing services to its clients. Armada’s information and marketing abilities have enabled the company to leverage that experience into the food and beverage industry by its acquisition of 90% of the issued and outstanding shares of The Big & Easy Bottle Brewing Company Inc. The Big & Easy Bottle Brewing Company Inc. owns 100% of Mister Beer Inc., which invented, produces and markets the unique “microbrewery in a bottle” beer-making kit.
Armada Data shares are listed on the TSX Venture exchange under the trading Symbol ARD. Armada currently has a total of 17,670,265 shares outstanding.
Additional information relating to Armada Data Corporation is filed on SEDAR, and can be viewed at www.sedar.com.
For further information, please contact:
Armada Data Corporation
Mr. R. James Matthews, President & CEO
Email: investors@armadadatacorp.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/armadadata10292014.pdfSource: Armada Data Corporation (TSX Venture:ARD) http://www.armadadatacorp.ca
Maximum News Dissemination by FSCwire. http://www.fscwire.com
Copyright © 2014 Filing Services Canada Inc.