Armada Announces Q 2014 Results

V.ARD

Armada Announces Q 2014 Results



Mississauga, Ontario (FSCwire) - Armada Data Corporation (TSX.V: ARD) is pleased to report its interim financial results for the quarter ended February 28, 2014 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.

 

Selected Quarterly Information

Fiscal Year

2014

2014

2014

2013

2013

2013

2013

2012

Quarter Ended

Feb-28

2014

Nov-30

2013

Aug-31

2013

May-31

2013

Feb-28

2013

Nov-30

2012

Aug-31

2012

May-31

2012

Total Sales

629,869

704,626

764,576

731,644

727,511

738,763

748,301

800,148

Cost of Goods Sold

(128,856)

(85,911)

(62,034)

(110,123)

(115,184)

(63,475)

(69,515)

(71,923)

Gross Operating Profit

501,013

618,715

702,542

621,521

612,327

675,288

678,786

728,225

Comprehensive (Loss) Income

(58,352)

(5,338)

154,941

(519,430)

26,633

(31,503)

28,754

(604,075)

Comprehensive (Loss) Income per Share

$(0.01)

$0.00

$0.01

$(0.03)

$0.01

$(0.01)

$0.01

$(0.01)

 

The prior periods’ comparative figures have been reclassified where necessary, to conform to the current period’s presentation.

 

 

Operations

The sales for the quarter ended February 28, 2014 decreased to $629,869 versus $727,511 at February 28, 2013 or a decrease of 13%.  Gross profit decreased from $612,327 in 2013, to $501,013 in 2014, or by 18%.

 

Wages and other office expenses decreased to $537,450 from $581,492 at February 28, 2013 or a decrease of 8%.  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 $(58,352) compared to comprehensive income of $26,633 last year, a decrease of 319%.  This change is a direct result of the divisional loss in the Mister Beer division.

 

Amortization expense increased to $39,378 from $24,952 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 $257,900 from $228,010, or by 13%.  Insurance Services contributed 41% of the Company’s total sales this quarter, compared to 31% for the quarter ended November 30, 2012.

 

The Retail Services division sales decreased by 6% to $89,462 from $95,543 last year.  The Retail Services division contributed 14% of the Company’s total sales, compared to 13% from the prior year’s quarter.

 

The Dealer Services division sales decreased by 22% (to $140,872 from $180,936) 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 22% to the Company’s total sales is a decrease over last year’s contribution of 25%.

 

The Internet Technology division sales decreased by 38%, from $69,071 to $42,880.   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 7% of the corporate quarterly revenue; a decrease over the 10% contribution in the prior year’s quarter.  

 

The Advertising and Marketing division decreased to $1,240 from $8,269, a decrease of 85%.  The contribution to total revenue has remains the same at 1% from the quarter ended February 28, 2013 to February 28, 2014.  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 $97,515, less $128,856 of direct costs and labour, to report  gross profit of $(31,341), compared to gross sales of $145,682 less $115,184 direct costs and labour resulting in  gross profit of $30,498 in the quarter ended February 28, 2013. Mister Beer Inc. contributed 15% to the Company’s total sales, compared to 20% from the previous year’s quarter.  Inventory on hand decreased to $99,363 at February 28, 2014 from $154,376 at February 28, 2013. 

 

Bank indebtedness increased from $(214,100) at February 28, 2013 to $(231,464) at February 28, 2014.  This is directly attributed to the ongoing losses sustained by the Mister Beer Inc. division and the sales team’s difficulties in securing a long-term relationship with a national retailer.  Management believes that once Mister Beer sales have increased enough to break even, the bank indebtedness will be reduced and subsequently eliminated.

 

Accounts receivable decreased from $453,711 in the prior year’s quarter to $444,635 in the quarter ended February 28, 2014.  Related party Accounts Receivable increased to $9,048 from $4,764.

 

Accounts payable decreased to $268,585 from $420,112.  Related party Accounts Payables decreased from $17,066 to $11,016.  The Note payable related to the TBE and Mister Beer Inc. acquisition is $Nil, compared to $33,333 last year.

 

As a result of the comprehensive loss reported by the Company for fiscal 2013 and comprehensive loss for this third quarter of 2014, the retained earnings are a deficit of $(831,495), as compared to retained earnings of a deficit of $(409,299) at February 28, 2013. 

 

 

 

Sales earned by division were as follows:

   

  3 months ended

 

  3 months ended

 

   year ended

 
   

February 28, 2014

 

February 28, 2013

 

May 31, 2013

 
               

Insurance Services

 $                  257,900

41%

 $                 228,010

31%

 $       833,529

28%

Retail Services

89,462

14%

95,543

13%

          467,197

16%

Dealer Services

140,872

22%

180,936

25%

          828,228

28%

Internet Technology

42,880

7%

69,071

10%

          235,168

8%

Advertising and Marketing

1,240

1%

8,269

1%

            67,004

2%

Mister Beer Inc

 

97,515

15%

145,682

20%

          515,093

18%

Total consolidated sales

629,869

100%

727,511

100%

       2,946,219

100%

Less: Direct product costs/wages - Mister Beer Inc.

(128,856)

 

(115,184)

 

(358,297)

 

Total Gross Profit

 $                  501,013

 

 $                 612,327

 

 $   2,587,922

 
             

 

 

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 this press release as a PDF file, click onto the following link:
public://news_release_pdf/armada04282014.pdf

Source: Armada Data Corporation (TSX Venture:ARD) http://www.armadadatacorp.ca

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