Link section to Armada Insurance Link to Car Cost Canada Link to The Car Magaiznes web site Link to Home Page

Armada Posts Record Q2 Revenue

by Eli Oszlak on February 3, 2012

in Acquistions,Corporate News & Information,Financial Documents,Mister Beer,Press Releases

Armada Posts Record Q2 Revenue

Mississauga, Ontario, February 2, 2012 – Armada Data Corporation (TSX.V: ARD) is pleased to report its interim financial results for the quarter ended November 30, 2011 have now been filed on Sedar and are available to view on Sedar at www.Sedar.com .

Highlights for the Quarter compared to the same quarter last year

  • The Company completed the acquisition of 90% of The Big & Easy Bottle Brewing Company (TBE)
  • The Company recorded the highest quarterly revenue in its history at $913,795 versus $711,520 last year or an increase of 28%
  • The Company’s Insurance Services division recorded the highest quarterly revenue in its history at $337,632 versus $271,205 last year or an increase of 24%
  • Total assets of the Company grew to $2,574,800 versus $1,823,140 last year or an increase of 41%.
  • Shareholders’ equity grew to $2,033,839 versus $1,533,622 last year or an increase of 33%.
  • Due to the acquisition of TBE the Company’s cash position decreased to $609,621 from $964,394, which management believes is adequate to fund all foreseeable funding requirements.
  • The Company distributed its third annual dividend which increased to $81,796 from $70,679 last year or an increase of 16%.

The Company generated the highest quarterly revenue in its history. Revenue increased to $913,795 versus $711,520 last year or an increase of 28%.

The company recorded a net loss of $36,375, after taxes, amortization, stock-based compensation and one-time expenses associated with the TBE acquisition.

One-time expenses associated with the TBE acquisition, including legal, accounting and filing fees totalled $78,670.

Based on a quarter-end cash position of $609,621, receivables of $721,495 and total liabilities of $454,318, management feels that the Company is in a good position to meet all current and foreseeable financial obligations.

Mister Beer (MB)

The Company has allocated $450,000-$500,000 to fund the establishment of a larger more efficient facility for MB and to cover the on-going negative cash-flow associated with MB until production and sales are ramped up.

TBE’s larger facility will have the capacity to increase production approximately ten times current levels or approximately one million 2-litre bottles per year before additional investments will be required, yet the Company estimates the profitability point to be reached at only 30,000 bottles per month.

Initial discussions with new larger retailers have been very positive and upon the opening of the new facility in late spring/early summer, initial orders are anticipated to be well in excess of 30,000 bottles per month.

Insurance Services

Despite a warmer and drier period during the 2nd quarter ending Nov 30, 2011, revenue from the Insurance Services division increased to a record $337,632 from $271,205 last year or an increase of 28%. For the quarter Insurance Services generated 37% of the company’s revenue versus 38% last year.

The Company currently works with 26 Insurance Companies in Canada, including eight of the top ten.

The Company’s newer, more automated version of the ACV service has increase the productivity and profitability of the service. The total market for the ACV service is over ten times greater than the 43r service and the Company expects to continue to increase its market share moving forward.

Retail Services

Overall revenue from Retail Services decreased to $156,425 from $168,387 last year, a decrease of 7%. For the quarter Retail Services generated 17% of the company’s revenue versus 24% last year.

Dealer Services

Overall revenue from Dealer Services increased to $245,932 from $224,108 last year, an increase of 10%. For the quarter Dealer Services generated 27% of the company’s revenue versus 32% last year.

Dealer Services generates revenue through the sale of new vehicle leads derived from members of Car Cost Canada. Additional coverage in previously underserviced areas drove revenue increases despite a decrease in Retail Services.

Advertising/Marketing Services

Third party advertising revenue on CarCostCanada.com and TheCarMagazine.com increased to $32,170 from $15,993 last year, an increase of 101%. The significant increase can be attributed to the transition from the company’s previous advertising agency to a new one. Initial increases in revenues generated by the new agency have been excellent to date and the Company anticipates increased revenues moving forward.

Internet Technology Services

Armada’s IT division derives its revenue from web site hosting, web site development, email services, online marketing, search engine optimization, cloud services, technical support and network support services. Additional benefits include the cost-saving advantage of bringing the Company’s IT expenditures in-house.

During the quarter IT Services revenue increased to $47,545 from $31,827 last year, an increase of 49%.

IT Services’ main goal is to use advanced technology solutions to streamline many of the Company’s current processes, which have already increased efficiencies to generate higher operating margins in all divisions.

About Armada Data Corp.

Armada Data is a diversified Canadian publicly traded Information & Marketing Services Company providing data to a diverse group of corporate and retail clients. Armada also provides information technology, e-commerce and online marketing services to its clients.

On October 1st 2011, Armada acquired 90% of The Big & Easy Bottle Brewing Company, which produces and markets the unique Mister Beer Bottle Brew beer-making kit. This adds a new dimension to Armada which Management believes has great potential for increasing shareholders value.

Armada is one of the very few profitable companies trading on the TSX Venture exchange. The company has been able to grow organically and profitably, while continuously improving its financial strength and solid balance sheet.

The combination of revenue and net earnings growth, coupled with increasing Shareholder’s equity, ample free cash flow, virtually no debt and an annual shareholder dividend is virtually unheard of with a Canadian public company of this size.

Armada Data shares are listed on the TSX Venture exchange under the trading Symbol ARD. Armada currently has a total of 16,359,154 shares outstanding. The Company has been based in Mississauga, Ontario since its inception in July 1999.

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. Paul Timoteo, President & CFO

Tel 1-866-453-6995 ext 224

Email: PT@ArmadaData.com

 

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.

 

 

Previous post:

Next post: