Mississauga, Ontario (FSCwire) - Armada Data Corporation (TSX.V: ARD) reports its interim financial results for the quarter ended February 29, 2016 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 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 |
Quarter Ended | Feb-29 | Nov-30 | Aug-31 | May-31 | Feb-28 | Nov-30 | Aug-31 | May-31 |
2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 |
Total Revenue | 522,663 | 545,409 | 528,853 | 463,056 | 466,797 | 526,884 | 552,035 | 437,930 |
Comprehensive Income (Loss) | 81,419 | 34,364 | 70,175 | (505,629) | (52,028) | (71,214) | (11,563) | (289,672) |
Comprehensive Income (Loss) per share | $0.00 | $0.00 | $0.00 | $(0.03) | $0.00 | $0.00 | $0.00 | $(0.02) |
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 10% in the quarter ended February 29, 2016, from $474,293 in 2015, to $522,663. Comprehensive income increased from a loss of $(52,028) in the period ended February 28, 2015 to $81,419 in the period ended February 29, 2016.
The Insurance Services division experienced a 14% increase in revenue, from $241,433 in 2015 to $276,217 in 2016.
The Retail Services division revenue was down 29% to $44,060 in 2016 from $56,798 in 2015.
The Dealer Services division revenue increased 9%, from $142,129 in 2015, to $155,525 in 2016.
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 $200 to $18,425.
The Information Technology division revenue increased 5% to $28,436 in 2016, up from $27,129 in 2015. IT continues to offer technical support and web site hosting to hundreds of customers, and to develop new customer relationships on a regular basis.
The Mister Beer division’s revenues are down from $6,604 to nil. Direct product costs and labour decreased from $7,496 to nil. The net revenue for Mister Beer Inc. went from $(892) in 2015 to nil in 2016. Management made the decision to close the production facility on December 31, 2014, in order to explore options with respect to a sale or other disposition of the Bottle Brew business line. This division’s assets have been disposed of and the division is permanently closed.
Total expenses before amortization decreased to $431,183 compared to $482,042, a 10.5% decrease over last year. This is attributed to ceasing production at Mister Beer Inc. and continued cost-cutting measures implemented by management.
Cash on hand increased from $39,649 as at February 28, 2015 to $209,181 as at February 29, 2016.
Accounts receivable increased by 23%, $324,529 as at February 29, 2016, compared to $264,728 last year. Related party accounts receivable decreased from $10,933 to $8,763.
Accounts payable increased to $305,619 as at February 29, 2016 from $195,358 a year earlier. Related party accounts payable decreased to $537 as at February 29, 2016, from $3,313 last year.
Despite the comprehensive income reported by the Company for this period, the Company’s deficit increased to $(1,648,858) as at February 29, 2016 compared to a deficit of $(1,329,187) last year, attributable to the write-down of Mister Beer Inc. assets at May 31, 2015.
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 | |
| | | February 29, 2016 | | February 28, 2015 | | May 31, 2015 | |
| | | | | | | | |
Insurance Services | $276,217 | 53% | $ 241,433 | 52% | $ 909,656 | 46% |
Retail Services | 44,060 | 8% | 56,798 | 12% | 323,012 | 16% |
Dealer Services | 155,525 | 30% | 142,129 | 30% | 695,017 | 35% |
Internet Technology | 28,436 | 5% | 27,129 | 6% | 127,649 | 6% |
Advertising/Marketing Services | 18,425 | 4% | 200 | 0% | 12,251 | 0% |
Total revenue - Armada Data Corp | 522,663 | 100% | 467,689 | 100% | 2,067,585 | 103% |
| | | | | | | | |
Revenue - Mister Beer Inc. | - | | 6,604 | | 107,790 | |
Less: Direct product costs/wages - Mister Beer Inc. | - | | (7,496) | | (166,603) | |
Total revenue - Mister Beer Inc. | - | 0% | (892) | 0% | (58,813) | -3% |
Total consolidated revenue | $ 522,663 | 100% | $ 466,797 | 100% | $ 2,008,772 | 100% |
Related Party Transactions
Salaries and expenses are paid to an officer of the Company, who is also 50% 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 Corporation, 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.
About Armada Data Corporation
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.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/armada04282016.pdfSource: Armada Data Corporation (TSX Venture:ARD) http://www.armadadatacorp.ca
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