Armada Releases Annual Results

Mississauga, Ontario (FSCwire) - Armada Data Corporation (TSV.V:ARD) reports that its annual financial results for the year ended May 31, 2015 have now been filed on Sedar and are available to view on SEDAR at www.sedar.com and the company’s web site www.armadadata.com.

Selected Annual Information

The Company’s total revenue decreased by 11% in 2015 from $2,260,200 to $2,008,772

The Company reported a comprehensive loss of $640,434, due to the following factors:

• Management’s decision to close the brewing facility of Mister Beer on January 1, 2015 – the annualized loss recognized by this segment, before adjustments to inventory and fixed assets, was $193,194
• The write down of Mister Beer’s Property, Plant and Equipment assets from a Net Book Value of $410,328 to a Fair Market Value of $45,000, resulting in a loss of $365,328.  These assets were sold on August 31, 2015 for $45,000.
• The write down of Mister Beer inventory to a nil value at May 31, 2015, from a value of $84,079.
• The continuing fixed expenses (rent and utilities) of the Mister Beer production facility – these expenses will continue until management is able to dispose of or offset the costs of this facility.

The Insurance Services division experienced a decrease in revenue, from $983,405 in 2014 to $909,656 in 2015, or by 7%.  The decrease in revenue was the result of unusual flooding in Alberta and Ontario in fiscal 2014, which resulted in an unusually high number of claims processed. 

The Retail Services division revenue was down 26% to $323,012 from $437,734.  The new CarCostCanada.com website and a new French-language site devoted to the Quebec market clearly helped the CarCostCanada.com membership program maintain a strong presence in the marketplace, despite increasing competition.  Experimentation with pricing of retail memberships in fiscal 2015 contributed to the decrease. 

The Dealer Services division revenue increased by 3%, from $676,995 in 2014 to $695,017 in 2015, despite the decrease in membership sales, which drive the dealer lead generation program, and 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. 

The Advertising/Marketing Services division, which derives its revenue from the sale of online third party advertising on CarCostCanada.com and TheCarMagazine.com increased from $8,336 to $12,251, or 47%. 

The Information Technology division revenue improved 22% to $127,649 in 2015, from $104,654 in 2014.   IT continues to offer technical support and web site hosting to hundreds of customers, and is developing new customer relationships on a regular basis, as well as offering new services for sale.

The Mister Beer division’s revenues were down from $344,496 to $107,790 or 69%.   Direct product costs and labour decreased by 44%, from $295,420 to $166,603. The net revenue for Mister Beer Inc. went from $49,076 in 2014 to $(58,813) in 2015.  Management made the decision to close this division and production facility effective January 1, 2015, and pursue a sale or other disposition of the Mister Beer business line, assets and facility.  On August 31, 2015, the plant equipment was sold for $45,000.

Armada’s consolidated statement reflects a loss this year, before corporation income taxes, of $(640,434), compared to the loss before corporation income taxes of $(137,853) in 2014.  This loss is the result of the Mister Beer operating loss of $642,601.  Corporation income tax expense is nil in 2015, compared to $102,289 in 2014.

Total expenses before amortization decreased to $2,137,421 compared to $2,222,133, a 4% decrease over last year.Management engaged in many cost-cutting measures to reduce expenses in 2015, including reductions in advertising, management salaries, computer consulting and rent.

The bank indebtedness was reduced to nil at May 31, 2015 from $(200,946) at May 31, 2014, by obtaining financing from a private company controlled by a director and an officer of the Company.

Accounts receivable increased to $267,182 as at May 31, 2015 from $244,777 last year.Related party accounts receivable decreased from $5,255 to $3,493.

Accounts payable increased to $254,762 as at May 31, 2015 from $191,823 a year earlier.Related parties accounts payable decreased to $1,469 as at May 31, 2015, from $45,771 last year.Corporation income taxes payables are $110,623 as at May 31, 2015 compared to $106,601 as at May 31, 2014. Related Party Notes Payable-current portion increased from nil at May 31, 2014 to $212,000 at May 31, 2015, and Related Party Notes Payable – long term portion went from nil at May 31, 2014 to $81,000 at May 31, 2015.

As a result of the loss reported by the Company in 2015, the Company’s deficit increased to $(1,834,816) as at May 31, 2015 compared to $(1,194,382) the prior year. Earnings per share at May 31, 2015 are $(0.04) versus $(0.01) per share at May 31, 2014.

No dividends were paid out to shareholders in fiscal 2015 or fiscal 2014.Management does not plan on issuing any dividends until further notice.

Segmented Annual Information

Revenues earned by divisions were as follows:

Outlook

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

1. Build on the historical success of the Company’s ongoing sales and marketing efforts focused on increasing sales at Retail Services, Dealer Services and Insurance Services.
2. Exploit market awareness and demand for new vehicle pricing information and dealer referrals that result from the additional competition within that market space; by putting more emphasis on outside partners, data outsourcing and our underutilized online magazine TheCarMagazine.com
3. Continue to improve our 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.
4. Maintain operating expenses and achieve the economies of scales of an Internet based business.
5. Expand third-party fee-based online advertising, by developing improved and more secure advertising methods.

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 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.

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