News: Armada Data earns $91,679 before tax in Q1 2019 Armada Data earns $91,679 before tax in Q1 2019
2018-10-29 16:05 MT - News Release
Mr. James Matthews reports
ARMADA RELEASES Q1 2019 RESULTS
Armada Data Corp. has released its interim financial results for the quarter ended Aug. 31, 2018, on SEDAR, which are available to view on SEDAR and the company's website.
Selected Quarterly Information Fiscal Year 2019 2018 2018 2018 2018 2017 2017 2017 Quarter Aug-31 May-31 Feb-28 Nov-30 Aug-31 May-31 Feb-28 Nov-30 Ended 2018 2018 2018 2017 2017 2017 2017 2016 Total Revenue 748,287687,745 738,577750,684777,838594,625 568,029633,385 Comprehensive Income(Loss) before taxes91,679 (144,518)51,546 166,313199,064(118,352)51,733 117,740 Comprehensive Income per share $0.01 $0.00 $0.00 $0.01 $0.01 $0.00 $0.00 $0.01
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.
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, 2018August 31, 2017 Insurance Services $ 344,700$ 359,470 CarCostCanada 316,725 345,791 IT Services 86,862 72,577 Total Revenue - Armada Data Corporation $ 748,287$ 577,838
Outlook
The Company's outlook is to continue to increase sales, update and improve our data services products and services, and deliver significantly better results to our shareholders by way of the following:
Build upon the historical success of the Company's ongoing sales and marketing efforts focused on increasing sales in the three divisions – Insurance, CarCostCanada and IT. Launch first-to-the-market features and tools to further increase market share and take advantage of the significant available base of new car buyers currently not using third-party pricing and dealer referral services. Exploit market awareness and demand for new vehicle pricing information and dealer referrals that result from the additional competition with that market space; by putting more emphasis on outside partners, data outsourcing and our underutilized online magazine TheCarMagazine.com Continue to improve our relationships with some of the largest insurance companies in Canada and partner with some of these organizations to produce new products and services for their vast client base.
About Armada Data Corp.
Armada Data is a Canadian publicly tradedInformation & 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.
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