Armada announces Q2 2014 Results
Mississauga, Ontario CANADA, January 29, 2014 /FSC/ - Armada Data Corporation (ARD - TSX Venture), is pleased to report its interim financial results for the quarter ended November 30, 2013 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 .
Operations
The sales for the quarter ended November 30, 2013 decreased to $704,626 versus $738,763 at November 30, 2012 or a decrease of 5%. Gross profit decreased from $675,288 in 2012, to $618,715 in 2013, or by 8%.
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----------------- -------- -------- --------- --------- -------- --------
Fiscal Year 2014 2014 2013 2013 2013 2013
----------------- -------- -------- --------- --------- -------- --------
Quarter Ended Nov-30 Aug-31 May-31 Feb-28 Nov-30 Aug-31
2013 2013 2013 2013 2012 2012
----------------- -------- -------- --------- --------- -------- --------
Total Sales 704,626 764,576 731,644 727,511 738,763 748,301
----------------- -------- -------- --------- --------- -------- --------
Cost of Goods (85,911) (62,034) (110,123) (115,184) (63,475) (69,515)
Sold
----------------- -------- -------- --------- --------- -------- --------
Gross Operating 618,715 702,542 621,521 612,327 675,288 678,786
Profit
----------------- -------- -------- --------- --------- -------- --------
Comprehensive (5,338) 154,941 (519,430) 26,633 (31,503) 28,754
(Loss) Income
----------------- -------- -------- --------- --------- -------- --------
Comprehensive
(Loss) Income per $0.00 $0.01 $(0.03) $0.01 $(0.01) $0.01
Share
----------------- -------- -------- --------- --------- -------- --------
----------------- ----------- -----------
Fiscal Year 2012 2012
----------------- ----------- -----------
Quarter Ended May-31 Feb-28
2012 2012
----------------- ----------- -----------
Total Sales 800,148 797,129
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Cost of Goods (71,923) (54,890)
Sold
----------------- ----------- -----------
Gross Operating 728,225 742,239
Profit
----------------- ----------- -----------
Comprehensive (604,075) (71,441)
(Loss) Income
----------------- ----------- -----------
Comprehensive
(Loss) Income per $(0.01) $(0.01)
Share
----------------- ----------- -----------
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The prior periods' comparative figures have been reclassified where necessary, to conform
to the current period's presentation.
Wages and other office expenses decreased to $597,707 from $685,179 at November 30, 2012 or a decrease of 13%. Management is committed to keeping expenses controlled during periods of change, therefore the decrease in expenses is greater than the decrease in sales and gross profit.
The Company recorded comprehensive loss before corporate income tax provision, of $(5,338) compared to $(31,503) last year, a decrease of 83%. This change is a direct result of the reduction of divisional expenses offsetting the divisional loss in the Mister Beer Inc. operations.
Amortization expense increased to $39,378 from $23,855 last year, due to the capital expenditures the Company has invested in for the Mister Beer Inc. division's new brewery facility.
The Insurance Services division sales increased to $250,805 from $210,695, or by 19%. Insurance Services contributed 36% of the Company's total sales this quarter, compared to 29% for the quarter ended November 30, 2012.
The Retail Services division sales decreased by 10% to $108,876 from $121,387 last year. The Retail Services division contributed 15% of the Company's total sales, compared to 16% from the prior year's quarter.
The Dealer Services division sales decreased by 14% (to $178,634 from $208,453) from the prior year's quarter. The continuation of efficiencies undertaken by management has ensured that this decrease is more than matched by decreases in expenses. The Dealer Services division's contribution of 25% to the Company's total sales is a decrease over last year's contribution of 28%.
The Internet Technology division sales decreased by 41%, from $58,485 to $34,571. The division's focus has been redirected to the internal needs of the organization as opposed to outside projects. There are several new technological trends within this sector and management is committed to ensuring that all of Armada's divisions keep pace with the market to the best of their ability. The IT division contributed 5% of the corporate quarterly revenue; a decrease over the 8% contribution in the prior year's quarter.
The Advertising and Marketing division decreased to $2,320 from $19,091, a decrease of 88%. The contribution to total revenue has decreased from 3% in the prior year's quarter; the division now brings in less than 1% of the corporate revenues. Management made the decision to stop serving advertisements on the CarCostCanada.com website. CarCostCanada.com is an ecommerce website that converted to a secure format which is not an ideal platform to serve advertisements while remaining fully secure. Web users have become more educated over the past several years and will often not purchase goods and services online with an unsecure site; hence decision to make CCC a secure site was in the best interest of the company and our customers. The Company will begin to refocus efforts on TheCarMagazine.com (TCM) which is designed to educate and inform car buyers with related news, reviews and automotive pricing information; TCM will focus on customer traffic and deriving revenue through the sale of advertising.
The Mister Beer Inc. division had gross sales of $129,420, less $85,911 of direct costs and labour, to report gross profit of $43,509, compared to gross sales of $120,652 less $63,475 direct costs and labour resulting in gross profit of $57,177 in the quarter ended November 30, 2012. Mister Beer Inc. contributed 18% to the Company's total sales, compared to 16% from the previous year's quarter. Inventory on hand decreased to $103,259 at November 30, 2013 from $137,873 at November 30, 2012. Although the sales figures declined in this quarter compared to 2012, the majority of the sales were derived in November since the majority of September 2013 and all of October 2013 were designated to brewery restructuring, maintenance and repairs as well as training of a completely new team of brewing and production specialists. Although the sales for the quarter declined, sales in the month of November 2013 were one of the highest in company history.
Bank indebtedness increased from $(138,950) at November 30, 2012 to $(172,938) at November 30, 2013. This is directly attributed to the acquisition of 90% interest in TBE/Mister Beer Inc. In addition, capital investments in the new Mister Beer Inc. brewery have had and will continue to have significant impact on the Company's cash on hand. The Company obtained a credit facility from its bank to assist in day-to-day operations.
Accounts receivable increased from $394,187 in the prior year's quarter to $512,199 in the quarter ended November 30, 2013. Related party Accounts Receivable increased to $4,994 from $396.
Accounts payable decreased to $267,149 from $289,087. Related party Accounts Payables decreased from $45,585 to $38,196. The Note payable related to the TBE and Mister Beer Inc. acquisition is $Nil, compared to $45,834 last year.
As a result of the comprehensive loss reported by the Company for fiscal 2013 and comprehensive loss for this second quarter of 2014, the retained earnings are a deficit of $(773,144), as compared to retained earnings of a deficit of $(429,950) at November 30, 2012.
Sales earned by division were as follows:
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3 months ended months ended
November 30, November 30,
2013 2012
Insurance Services $ 250,805 36% $ 210,695 29%
Retail Services 108,876 15% 121,387 16%
Dealer Services 178,634 25% 208,453 28%
Internet Technology 34,571 5% 58,485 8%
Advertising and Marketing 2,320 1% 19,091 3%
Mister Beer Inc 129,420 18% 120,652 16%
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Total consolidated sales 704,626 100% 738,763 100%
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Less: Direct product
costs/wages -
Mister Beer In (85,911) (63,475)
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Total Gross Profit $ 618,715 $ 675,288
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year ended
May 31, 2013
Insurance Services $ 833,529 28%
Retail Services 467,197 16%
Dealer Services 828,228 28%
Internet Technology 235,168 8%
Advertising and Marketing 67,004 2%
Mister Beer Inc 515,093 18%
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Total consolidated sales 2,946,219 100%
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Less: Direct product
costs/wages -
Mister Beer In (358,297)
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Total Gross Profit $ 2,587,922
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About Armada Data Corp.
Armada Data is a Canadian publicly traded Information & 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. Armada's information and marketing abilities have enabled the company to leverage that experience into the food and beverage industry by its acquisition of 90% of the issued and outstanding shares of The Big & Easy Bottle Brewing Company Inc. The Big & Easy Bottle Brewing Company Inc. owns 100% of Mister Beer Inc., which invented, produces and markets the unique "microbrewery in a bottle" beer-making kit.
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.
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. R. James Matthews, President & CEO
Email: investors@armadadatacorp.ca
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.
To view the press release as a PDF file, please click on the following link:
http://www.usetdas.com/pr/armada01292014.pdf
Source: Armada Data Corporation (ARD - TSX-V) http://www.armadadatacorp.ca
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