Mississauga, Ontario (FSCwire) - Armada Data Corporation (TSV.V:ARD) reports its interim financial results for the quarter ended August 31, 2017 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 Quarterly Information
Fiscal Year | 2018 | 2017 | 2017 | 2017 | 2017 | 2016 | 2016 | 2016 |
Quarter Ended | Aug-31 | May-31 | Feb-28 | Nov-30 | Aug-31 | May-31 | Feb-29 | Nov-30 |
2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 |
Total Revenue | 777,838 | 594,625 | 568,029 | 633,385 | 595,147 | 611,939 | 534,779 | 558,736 |
Comprehensive Income(Loss) before taxes | 199,064 | (38,395) | 51,733 | 117,740 | 144,743 | 175,057 | 79,419 | 34,364 |
Comprehensive Income per share | $0.01 | $0.00 | $0.00 | $0.01 | $0.01 | $0.01 | $0.00 | $0.00 |
The prior periods’ comparative figures have been reclassified, where necessary, to conform to the current year’s presentation. |
The Company’s total revenue increased by 31% in the period ended August 31, 2017 to $777,838 from $595,147 in the same period a year earlier. Comprehensive income increased to $199,064 in this quarter, up 38% from $144,743 at August 31, 2016.
The Insurance Services division experienced an increase in revenue, from $316,525 in the three months ended August 31, 2016 to $359,470 in 2017, or by 14%. The increase in revenue was the result of the concerted effort by the Insurance Division to process more claims faster.
The Company has combined the Retail, Dealer and Advertising/Marketing divisions into one segment, known as CarCostCanada, due to the fact that the revenues earned by these divisions comes directly or indirectly from the carcostcanada.com website, and as the Company has moved into free trial memberships, the business model for the former Retail Services Division has changed. CarCostCanada revenue was up 45% to $345,791 from $238,599 in 2016. An increase in dealer sales, along with the expansion into Quebec accounts for this increase in revenue.
The Information Technology division revenue increased by 81% to $72,577 in the first quarter of fiscal 2018 ended August 31, 2017, from $40,023 in the same quarter in fiscal 2017. 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.
Expenses in this first quarter of fiscal 2018 before amortization increased to $568,908 compared to $440,626, a 29% increase over the same period last year.After the many cost-cutting measures to reduce expenses in 2015 and 2016, the largest increase is in salaries and wages, and advertising expense is up due to new radio advertising campaigns.
As a result of the income reported by the Company in this quarter ended August 31, 2017, the Company’s deficit decreased to $(1,007,480) compared to $(1,260,984) at the quarter ended August 31, 2016. Earnings per share at August 31, 2017 are $0.01, unchanged from $0.01 per share at August 31, 2016.
Management does not plan on issuing any dividends until further notice.
Segmented Quarterly Information
Revenues earned by divisions were as follows:
| 3 months ended | | 3 months ended | |
| August 31, 2017 | % | August 31, 2016 | % |
Insurance Services | $ 359,470 | 46 | $ 316,525 | 53 |
CarCostCanada | 345,791 | 45 | 238,599 | 40 |
IT Services | 72,577 | 9 | 40,023 | 7 |
Total Revenue – Armada Data Corporation | $ 777,838 | 100 | $ 595,147 | 100 |
Outlook
The Company’s outlook is to maintain our current growth pattern, and to continue to find new ways to leverage and monetize our new car data, our up-to-date factory incentive platform, and our customer list.The following is a short list of initiatives that Armada is building upon to add shareholder value:
1. Continue to enhance the CarCostCanada new car data, display quality and membership features and benefits.
2. Build upon the existing CarCostCanada national online and traditional marketing and awareness programs, as well as enhancing the membership registration process.
3. Forge new and sophisticated partnerships with our insurance company clients, car business suppliers, and new car marketing agencies to grow the CarCostCanada membership base.
4. Develop new first-to-the-market tools and features that will provide new car buyers with additional tools to improve their new car buying experience and relationships with their new car dealerships.
5. Continue our growth pattern in the Insurance Services division by adding additional Canadian insurance companies to our client list.
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.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/Armada10262017.pdfSource: Armada Data Corporation (TSX Venture:ARD)
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