Armada Data earns $144,853 in fiscal Q1 2017
2016-10-27 13:38 MT - News Release
Mr. James Matthews reports
ARMADA ANNOUNCES Q1 2017 RESULTS
Armada Data Corp. has released its interim financial results for the quarter ended Aug. 31, 2016. The results have been filed on SEDAR and are available for viewing on the company's website, as well as on the SEDAR website.
SELECTED QUARTERLY INFORMATION Fiscal year 2017 2016 2016 2016 2016 2015 2015 2015 Quarter ended Aug. 31, May 31, Feb. 29, Nov. 30, Aug. 31, May 31, Feb. 28, Nov. 30, 2016 2016 2016 2015 2015 2015 2015 2014 Total revenue $ 587,134 $ 661,263 $ 522,663 $ 545,409 $ 528,853 $ 463,056 $ 466,797 $ 526,884 Comprehensive income (loss) 144,853 97,589 81,419 34,364 70,175 (505,629) (52,028) (71,214) Comprehensive income (loss) per share 0.01 0.01 0.00 0.00 0.00 (0.03) 0.00 0.00
The prior periods' comparative figures have been reclassified where necessary, to conform to the current period's presentation.
Operations
The company's total sales increased by 11 per cent in the quarter ended Aug. 31, 2016, from $528,853 in 2015, to $587,134. Comprehensive income increased from $70,175 in the period ended Aug. 31, 2015, to $144,853 in the period ended Aug. 31, 2016.
The insurance services division experienced a 32-per-cent increase in revenue, from $239,927 in 2015 to $316,500 in 2016. This is a continuing result of the fires in Fort McMurray and expanding upon existing customer relationships, mergers and acquisitions within the Canadian insurance company landscape, and policy-driven mandates within insurance companies to use the Armada insurance services replacement value settlement protocol.
The retail services division revenue was down 17 per cent to $52,275 in 2016, from $62,875 in 2015.
The dealer services division revenue decreased 12 per cent, from $179,571 in 2015 to $157,770 in 2016.
The advertising/marketing services division, which derives its revenue from the sale of on-line third party advertising on the Car Cost Canada and The Car Magazine websites, increased from $27,088 to $28,580, or 6 per cent.
The information technology division revenue increased 65 per cent to $32,009 in 2016, up from $19,392 in 2015. IT continues to offer technical support and website hosting to hundreds of customers, and to develop new customer relationships on a regular basis.
Total expenses before amortization decreased to $432,503, compared with $447,913, a 3-per-cent decrease over last year. This is attributed to ceasing production at Mister Beer Inc. and continued cost-cutting measures implemented by management.
Cash on hand increased from $115,573 as at Aug. 31, 2015, to $256,580 as at Aug. 31, 2016.
Accounts receivable increased by 81 per cent, or $498,019, as at Aug. 31, 2016, compared with $275,514 last year. Related party accounts receivable decreased from $8,484 to $6,340.
Accounts payable decreased to $205,680 as at Aug. 31, 2016, from $225,605 a year earlier. Related party accounts payable decreased to zero as at Aug. 31, 2016, from $1,017 last year.
The company's deficit decreased to $1,406,416 as at Aug. 31, 2016, compared with a deficit of $1,764,641 last year.
Management does not plan on issuing any dividends until further notice.
Revenues earned by the divisions are shown in the attached table.
Three months ended Three months ended Year ended Aug. 31, 2016 Aug. 31, 2015 May 31, 2016 Insurance services $ 316,500 $ 239,927 $ 1,108,745 Retail services 52,275 62,875 227,038 Dealer services 157,770 179,571 660,540 Internet technology 32,009 19,392 121,289 Advertising/marketing services 28,580 27,088 74,624 ------- ------- --------- Total revenue -- Armada Data Corp. 587,134 528,853 2,192,236 ======= ======= ========= Revenue -- Mister Beer Inc. - - 17,578 Less: direct product costs/wages -- Mister Beer Inc. - - 48,374 Total revenue -- Mister Beer Inc. - - 65,952 ------- ------- --------- Total consolidated revenue 587,134 528,853 2,258,188 ======= ======= =========
Related party transactions
Salaries and expenses are paid to an officer of the company, who is also a 50-per-cent shareholder of Lease Busters Inc. Office space is rented from Lease Busters. Legal fees are paid to a law firm, of which a partner is a non-remunerated director of the company. Financing was acquired from a company owned by a director of Armada, and interest is paid to this company on a monthly basis. All of the actual costs noted in this section are paid at fair market value in the normal course of business.
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