Armada ONLY earns $16k profit on $3 Million Revenue.....Ugly earnings. Management needs to reduce it's G&A costs badly!
Armada Data earns $16,426 in fiscal 2021
2021-09-27 13:17 ET - News Release
Mr. James Matthews reports
ARMADA RELEASES ANNUAL RESULTS
Armada Data Corp.'s annual financial results for the year ended May 31, 2021, have now been filed on SEDAR and are available to view on SEDAR and the company's website.
The company's total revenue decreased by 4 per cent in 2021 to $3,149,528 from $3,280,998 in 2020.
The company reported comprehensive income of $16,426, due to the following:
- The COVID-19 pandemic resulted in the office closing and most staff working from home for the period of March 18 to July 31, 2020, then again on Nov. 16, 2020, to date. As most Canadians were not driving during these periods, insurance claims were close to non-existent, resulting in some staff layoffs in the insurance division and a decrease in revenue. When permitted by the provincial government and public health guidelines, management will permit full staff to return. New-car dealers across the country either closed their doors and worked remotely or reduced their sales staff. Due to an international problem of manufacturing computer chips, automobile production slowed, with the resulting effect of little new car inventory, which in turn had a detrimental effect on CarCostCanada's revenues.
Segmented annual information
Revenues earned by divisions were as shown in an attached table.
Liquidity
Based on a year-end cash position of $431,563, accounts receivable of $459,963 and accounts payable of $366,399, the company is in a positive cash position. By continuing to manage expenses efficiently during the COVID-19 pandemic and its aftermath, management expects that the company's positive cash position will continue through fiscal 2022 and through the new-car automobile industry's recovery from the pandemic.
Outlook
COVID-19 emerged in December, 2019, and subsequently spread worldwide, leading to the World Health Organization's declaration of a COVID-19 pandemic on March 11, 2020. To date, Canadian federal and provincial governments and businesses have mandated various measures, including: travel restrictions, restrictions on public gatherings, stay-at-home orders and advisories, and the quarantine of people who may have been exposed to the virus. The company has and will continue to follow all federal and provincial guidelines mandated to combat this pandemic.
The company's goals are to continue to increase top-line sales and revenues from all divisions, establish a bigger presence on social media platforms, and find new and unique ways to leverage client bases from its three divisions. Methods of achieving these goals include:
- Building out a better and more effective on-line new-car pricing platform for the company's partners (such as RBC Drive) to drive more new car buyers into the CarCostCanada membership group;
- Finding more products and services to monetize more CarCostCanada members, similar to the company's lead generation services and the company's e-book, The Road to a Deal;
- Improve the company's customer engagement mandate to result in more on-line visitors becoming CarCostCanada members;
- Continue to maintain and sustain the CarCostCanada new-car dealership network and strive to monetize a larger percentage of the company's members, despite the new-vehicle inventory shortage;
- Maintain and improve the company's relationships with some of the largest insurance companies in Canada and continue to grow the number of insurance companies using the proprietary claims processing services pioneered by Armada Insurance Services.
About Armada Data Corp.
Armada Data is a Canadian publicly traded information and marketing services company providing accurate and real-time data to institutional and retail customers through developing, owning and operating automotive pricing-related websites 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.