Armada Posts Record Profit in Q3
Operating Income up 57%
Mississauga, Ontario, April 28, 2011, – Armada Data Corporation (TSX.V: ARD) is pleased to report that its interim financial results for the quarter ended February 28, 2011 have now been filed on Sedar and are available to view on the Company’s website as well as on Sedar at
Highlights for the Quarter compared to the same quarter last year
Comparisons for the quarter are versus the same period last year.

  • The Company reported the highest 3rd quarter revenue in the Company’s history
  • Overall revenue grew from $707,517 last year to $753,013 or an increase of 6%.
  • Operating income (before taxes, amortization and stock-based comp.) grew from $51,770 to $81,217 or an increase of 57%.
  • Net income, before taxes (after amortization and stock-based comp.) increased from $3,451 to $73,766.
  • Net income, after taxes (after amortization and stock-based comp.) increased from $3,451 to $49,766.
  • Total assets of the Company increased from $1,361,629 to $1,914,410 or an increase of 41%.
  • Total liabilities of the Company increased from $133,764 to $304,188 or an increase of 127%.
  • Shareholder’s equity increased from $1,227,865 to $1,610,222 or an increase of 31%.
  • The Company’s cash position increased from $772,825 to $1,041,034 or an increase of 35%.

Management is pleased to report the results of the third quarter ending February 28, 2011. The Company generated record third quarter revenues. The Company is now in the strongest financial position in its history and it is anticipated that Armada will continue to experience revenue and net income growth, moving forward.
“The Company’s focus on improving its profitability and strengthening its balance is really paying off,” said Paul Timoteo, President & CFO at Armada.
Overall Company Results:
Revenue increased during the quarter to $753,013 from $707,517 last year, an increase of 6%.
Operational expenses increased to $671,796 from $655,747 an increase of only 2%. Despite the increased expense in additional staff and larger premises, the Company was able to implement cost-saving efficiencies which allowed overall expenses to increase at less than half the rate of revenues, resulting in a greater net profit.
Operationally the company recorded a profit, before taxes, amortization and stock-based compensation, of $81,217 compared to a comparable profit of $51,770 last year, an increase of 57%.
The company recorded a profit, before taxes and after amortization and stock-based compensation, of $73,766 compared to a comparable profit of $3,451 last year.
Based on a quarter-end cash position of $1,041,034, Accounts Receivable of $574,374, total current liabilities of $304,188, and the continuation of positive cash flow going forward, management feels that the Company is in a good position to meet all current and foreseeable financial obligations.
Results by major division:
Insurance Services
Armada Insurance Services revenue increased to $325,130 from $322,330 last year, an increase of 1%. For the quarter Insurance Services generated 43% of the company’s revenue versus 46% last year.
The Company has now implemented a newer, more automated version of the ACV service which has increased 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.
Subsequent to the end of the quarter, the Company began beta testing a newer, more automated version of the 43r service which is expected to increase the productivity and profitability of the service.
Retail Services
Retail Services successfully implemented a number of new marketing initiatives, including Boxing week specials and Deal of the Day campaigns, to increase CarCostCanada Membership levels during the quarter, which is typically the slowest new car selling season.
New CCC membership sales increased to 5,186 for the quarter versus 4,451 last year, an increase of 17%. The average sale price of memberships dropped to $27.17 versus $36.04, resulting in CCC Membership revenue decreasing to $140,890 from $160,435 last year, a decrease of 12%. As a result of the growth in Membership, the Dealer Services division was able to increase its sale of leads to dealers, which more than offset the loss in revenue in the Retail Services division.
Retail Services overall revenue includes revenue generated via the Company’s arrangement with Consumer Reports, which markets an Armada-sourced Canadian new car pricing service via and charges its members in US dollars. Despite the negative impact of a lower US dollar, Armada’s revenue increased to $13,798 versus $12,310 last year or an increase of 12%.
Overall Retail Services revenue decreased to $154,687 from $172,745 last year, a decrease of 10%. For the quarter Retail Services generated 20% of the company’s revenue versus 24% last year.
The decrease in revenue can also be attributed to a similar decrease in advertising expenses for Direct advertising expenses decreased to $93,868 from $112,849 last year. Towards the end of the quarter the Company increased its advertising expenses in preparation for the busy spring new car selling season.
In February, 2011 the Company launched a beta-version of its all-new website. The site was designed to appeal to Canadian consumers that are in the early stages of their new car buying process, versus which caters more to late-stage buyers. with its unmatched level of Canadian specific automotive news, reviews, pricing, dealer ratings, buyer reviews and average discounts should generate an increased level of traffic and will form the basic structure for an all-new version of, which is tentatively scheduled to launch in the Company’s first quarter of 2011-2012.
Dealer Services
Dealer Services continues to be the fastest growing division of the Company.
Aided by the increase in CCC membership, overall revenue from Dealer Services increased to $231,859 from $181,609 last year, an increase of 28%. For the quarter Dealer Services generated 31% of the company’s revenue versus 26% last year.
Dealer Services generates revenue through the sale of new vehicle leads derived from members of Car Cost Canada. Continued growth in CCC Membership and additional coverage in previously underserviced areas will continue to drive revenue increases.
Outlook and Investor Highlights

Armada Data continues to attain a number of important fiscal and operational achievements, which include:

  • CCC Membership sales continues to grow
  • Dealer Services continues to outpace all divisions in growth
  • Insurance Services continues to generate the highest revenue of all divisions
  • Company continues to improve its profit margins
  • Company continues to strengthen its balance sheet
  • Company continues to increase its cash position and shareholders equity
  • Management is focused on National sales growth, expense management and increasing profitability
  • An independent audit committee and mandate remains in full force to ensure quality of corporate governance to provide shareholders the confidence they deserve

Armada Data Corporation, with its financial and human resources, is poised for continued growth as it capitalizes and grows its niche markets in all aspects of its Internet and traditionally based businesses.
It is expected that Management can meet these objectives regardless of economic conditions.
Although a robust economy can lead to a greater number of cars sold and thus a potentially larger market opportunity for all of Armada’s Divisions, a down economy has proven to have an equally positive impact as both individuals and insurance companies become more cost conscious.
About Armada Data Corp.
Armada Data Corporation (“Armada” or “the Company”) is a profitable Information 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 services to its clients.
Armada Data Corp shares are listed on the TSX Venture exchange under the trading Symbol ARD. Armada has 14,359,154 shares outstanding.
Additional information relating to Armada Data Corporation is filed on SEDAR, and can be viewed at
For further information, please contact:
Armada Data Corporation
Mr. Paul Timoteo, President & CFO
Tel 1-866-453-6995 ext 224
Public Relations; please contact Mr. Nelson Hudes at Hudes Communications International Tel 905-660-9155 or email:
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.
This news release contains forward-looking information within the meaning of Canadian securities laws, including statements relating to revenue, earnings, customer demand, penetration and increases to market share and anticipated growth.  Forward-looking statements are based on estimates and assumptions made by Armada in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors Armada believes are appropriate.  Many factors could cause the actual results of Armada to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, reduced spending by customers and risks relating to general economic conditions.  Readers should not place undue reliance on Armada’s forward-looking statements.  Armada undertakes no obligation to update or revise any forward-looking information, except as required by law.