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Armada Data Corporation — Earnings Release 2018
Apr 30, 2018
44883_rns_2018-04-30_463ecb26-5f9b-4440-998a-e159ae181ac2.pdf
Earnings Release
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5080 Timberlea Blvd, Suite 215 Mississauga, Ontario L4W 4M2 Tel: 866-453-6995 [email protected]
For immediate Release: April 28, 2018
Armada Releases Q3 2018 Results
Mississauga, Ontario, April 30, 2018 - Armada Data Corporation (TSV.V:ARD) reports its interim financial results for the quarter ended February 28, 2018 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 | 2018 | 2018 | 2017 | 2017 | 2017 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|
| Quarter Ended |
Feb-28 2018 |
Nov-30 2017 |
Aug-31 2017 |
May-31 2017 |
Feb-28 2017 |
Nov-30 2016 |
Aug-31 2016 |
May-31 2016 |
| Total Revenue | 738,576 | 758,242 | 777,838 | 594,625 | 568,029 | 633,385 | 595,147 | 611,939 |
| Comprehensive Income(Loss) before taxes |
51,364 | 166,941 | 199,064 | (38,395) | 51,733 | 117,741 | 144,743 | 97,589 |
| Comprehensive Incomeper share |
$0.00 | $0.01 | $0.01 | $0.00 | $0.00 | $0.01 | $0.01 | $0.01 |
The prior periods’ comparative figures have been reclassified, where necessary, to conform to the current year’s presentation.
Operations
The Company’s total revenue increased by 30% in the period ended February 28, 2018 to $738,576 from $568,029 in the same period a year earlier. Comprehensive income decreased to $51,364 in this quarter, down 1% from $51,733 at February 28, 2017.
The Insurance Services division experienced an increase in revenue, from $319,012 in the three months ended February 28, 2017 to $404,750 in 2018, or by 27%. The increase in revenue was the result of processing the most claims in January 2018 in the Company’s history.
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 27% to $259,651 from $203,693 in 2017. An increase in dealer sales, along with the expansion into Quebec accounts for this increase in revenue.
The Information Technology division revenue increased by 64% to $74,175 in the third quarter of fiscal 2018 ended February 28, 2018, from $45,324 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 third quarter of fiscal 2018 before amortization increased to $685,643, compared to $506,518, a 35% 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 February 28, 2018, the Company’s deficit decreased to $(788,977) compared to $(1,081,523) at the quarter ended February 28, 2017. Earnings per share at February 28, 2018 are $0.00, unchanged from $0.00 per share at February 28, 2017.
CarCostCanda.com | Armada Insurance Services | Armada IT Services
4/28/2018
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5080 Timberlea Blvd, Suite 215 Mississauga, Ontario L4W 4M2 Tel: 866-453-6995 [email protected]
Management does not plan on issuing any dividends until further notice.
Segmented Quarterly Information
Revenues earned by divisions were as follows:
| 3 month ended February 28, 2018 |
% |
3 months ended February 28, 2017 |
% | |
|---|---|---|---|---|
| Insurance Services | $ 404,750 | 55 | $ 319,012 | 56 |
| CarCostCanada | 259,651 | 33 | 203,693 | 36 |
| IT Services | 74,175 | 10 | 45,324 | 8 |
| Total Revenue – Armada Data Corporation | $ 738,576 | 100 | $568,029 | 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:
-
Continue to enhance the CarCostCanada new car data, display quality and membership features and benefits.
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Build upon the existing CarCostCanada national online and traditional marketing and awareness programs, as well as enhancing the membership registration process.
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Forge new and sophisticated partnerships with our insurance company clients, car business suppliers, and new car marketing agencies to grow the CarCostCanada membership base.
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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.
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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 pricingrelated 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: [email protected]
CarCostCanda.com | Armada Insurance Services | Armada IT Services
4/28/2018
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5080 Timberlea Blvd, Suite 215 Mississauga, Ontario L4W 4M2 Tel: 866-453-6995 [email protected]
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.
CarCostCanda.com | Armada Insurance Services | Armada IT Services
4/28/2018
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