For immediate Release: February 1, 2010
Armada Posts Record Q2 Revenue
Revenue up 66% – Operating Income up 33%
Mississauga, Ontario, February 1, 2010, – Armada Data Corporation (TSX.V: ARD) is pleased to report that its interim financial results for the quarter ended November 30, 2010 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.
Highlights for the Quarter compared to the same quarter last year
- The Company reported the highest revenue in the Company’s history
- Overall revenue grew from $453,046 last year to $750,628; an increase of 66%.
- Operating income (before amortization and stock-based compensation) grew from $50,056 to $66,660; an increase of 33%.
- Insurance Services revenue grew from $184,810 to $299,895; an increase of 62%.
- Retail Services revenue grew from $123,373 to $212,316; an increase of 72%.
- Dealer Services revenue grew from $87,905 to $197,887; an increase of 125%.
- Advertising/Marketing Services revenue grew from $14,025 to $39,334; an increase of 180%.
- CarCostCanada.com new membership sales grew from 3,168 to 5,483; an increase of 73%.
- Company plans to increase yearly dividend. Amount to be determined at year end.
Record revenues of $750,628 for the quarter ended November 30, 2009 were achieved as the Company reported its highest revenue in the Company’s history.
Overall revenue grew to $750,628; an increase of 66% from $453,046 a year earlier. Operating income (before amortization and stock based compensation) was $66,660 from $50,056; a 33% increase over last year. (Operating Income is a non-gaap measurement)
All four major divisions experienced significant growth.
1. Insurance Services
Revenue from Armada Insurance Services, increased to $299,895 from $184,810 last year, an increase of 62%. For the quarter Insurance Services generated 40% of the company’s revenue versus 41% last year.
The increased revenues were primarily the result of the Company’s new ACV (Actual Cash Value) service being adopted by a growing number of the Company’s existing clients which currently use the 43r (Waiver of Depreciation) service.
The Company currently works with 26 Insurance Companies in Canada, including eight of the top ten.
2. Retail Services
Overall revenue from Retail Services increased to $212,316 from $123,373 last year, an increase of 72%. For the quarter Retail Services generated 28% of the company’s revenue versus 27% last year.
The majority of the increase in revenue can be attributed to an aggressive marketing campaign the Company launched in February 2009. Continuous refinement has allowed for a very high return on investment which the Company anticipates will continue moving forward.
3. Dealer Services
Overall revenue from Dealer Services increased to $197,887 from $87,905 last year, an increase of 125%. For the quarter Dealer Services generated 26% of the company’s revenue versus 19% last year.
Dealer Services generates revenue through the sale of new vehicle leads derived from members of Car Cost Canada. As Retail Services revenue increases, so does Dealer Services revenue. Additional coverage in previously underserviced areas will continue to drive revenue increases beyond those of Retail Services.
4. Advertising/Marketing Services
Third party advertising revenue on CarCostCanada.com and TheCarMagazine.com increased to $39,334 from $14,025 last year, an increase of 180%. Although revenue increased significantly, the Company will look to improve results in this area in the coming quarters, with the anticipation of increased revenues moving forward.
“I am pleased to report a very successful second quarter. All of our major business divisions posted impressive gains. Our online advertising campaign delivered the best results in Armada’s history and our new ACV insurance services product is gaining acceptance with our existing insurance customers which is in a very large market space for us; 10 times larger than our current service was targeting. We believe after 10 years we now are now beginning to see the success that our business holds. For that I thank my entire team and look forward to reporting continued success to our shareholders in the coming quarters.” commented Paul Timoteo, President and CFO.
Outlook and Investor Highlights
Armada Data continues to work to attain a number of important fiscal and operational achievements, which include:
- Retail Services continues to grow despite perceived weak overall market conditions
- Dealer Services continues to outpace all divisions in growth
- Insurance Services is now in its busiest time of the year
- ACV Service now contributing to significant revenue generation
- Company remains 100% debt free and is in the best cash position in its history
- 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
Management believes that Armada Data Corporation, with its financial resources, is poised for significant growth as it 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 Corp. is a profitable web-enabled Automobile Information Services Company providing accurate and real-time pricing data, to institutional and retail customers on a fee-for-service basis, through developing, owning and operating automotive related websites and providing information services to its clients.
Armada Data Corp shares are listed on the TSX Venture exchange under the trading Symbol ARD. Armada has 13,665,497 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. Paul Timoteo, President & CFO
- Tel 1‐866‐453‐6995 ext 224
- Email: PT@ArmadaData.com
Investor Relations; please contact Mr. Richard Buzbuzian at Integrated Investor Relations Inc. Tel 647‐501‐3290 or email: RBuzbuzian@IntegratedIR.com
Public Relations; please contact Mr. Nelson Hudes at Hudes Communications International Tel 905‐660‐9155 or email: Nelson@HudesCommunications.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.
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.