MISSISSAUGA, ON / ACCESSWIRE / September 23, 2019 / Armada Data Corporation (TSVV:ARD) reports that its annual financial results for the year ended May 31, 2019 have now been filed on SEDAR and are available to view on SEDAR at www.sedar.com and the company's web site www.armadadata.com.
Selected Annual Information
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Fiscal Year Ended
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May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | ||||||||||||
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Total Revenue
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$ | 2,884,628 | $ | 2,951,844 | $ | 2,391,186 | $ | 2,249,620 | ||||||||
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(Loss) Income before undernoted
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$ | (22,774 | ) | $ | 380,910 | $ | 275,821 | $ | 272,545 | |||||||
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Income from discontinued operations (Mister Beer Inc.)
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NIL | NIL | $ | 86,470 | ||||||||||||
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(Loss) Income before taxes
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$ | (22,774 | ) | $ | 380,910 | $ | 275,821 | $ | 359,015 | |||||||
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Income Taxes
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$ | 14,680 | 108,595 | $ | 79,957 | $ | 75,468 | |||||||||
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Comprehensive (Loss) Income after Taxes
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$ | (37,454 | ) | $ | 272,315 | $ | 195,864 | $ | 283,547 | |||||||
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Comprehensive Income (Loss) per share
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$ | 0.00 | $ | 0.02 | $ | 0.01 | $ | 0.02 | ||||||||
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Total Assets
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$ | 1,265,274 | $ | 1,196,600 | $ | 875,175 | $ | 953,751 | ||||||||
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Total Liabilities
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$ | 377,431 | $ | 355,095 | $ | 325,053 | $ | 599,493 | ||||||||
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Shareholder's Equity, including Non-controlling interests
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$ | 887,843 | $ | 841,505 | $ | 550,122 | $ | 354,258 | ||||||||
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Dividends
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NIL | NIL | NIL | |||||||||||||
The Company's total revenue decreased by 2% in 2019 to $2,884,628 from $2,951,844 in 2018.
The Company reported comprehensive loss of $(37,454), due to the following factors:
- The Company recognized Stock-Based Compensation expense of $83,792 in fiscal year 2019, or 75% of the total Stock-Based Compensation expense of $111,840 on Options granted on April 10, 2019, during fiscal 2018. $19,068 of Stock-Based Compensation expense was recognized in 2018.
- Total payroll costs, excluding management salaries, increased by 25%, from $1,139,506 in the year ended May 31, 2018 to $1,429,143 in the year ended May 31, 2019.
- Advertising expenditures increased to $331,289 in 2019, compared to $316,376 in 2018, or by 5%
- Securing larger premises for the Insurance division.
Selected Quarterly Information
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Fiscal Year Quarter Ended
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2019 May-31 2019 |
2019 Feb-28 2019 |
2019 Nov-30 2018 |
2019 Aug-31 2018 |
2018 May-31 2018 |
2018 Feb-28 2018 |
2018 Nov-30 2017 |
2018 Aug-31 2017 |
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Total Revenue
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713,646 | 718,174 | 704,521 | 748,287 | 684,745 | 738,576 | 750,684 | 777,838 | ||||||||||||||||||||||||
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Comprehensive (Loss) Income before taxes
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(85,663 | ) | 1,617 | (30,407 | ) | 91,679 | (35,922 | ) | 51,455 | 166,313 | 199,064 | |||||||||||||||||||||
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Comprehensive Income per share
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$ | (0.01 | ) | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | (0.01 | ) | $ | 0.00 | $ | 0.01 | $ | 0.01 | ||||||||||||||
Stock Options
On April 10, 2018, the company granted options for the purchase of 1,200,000 common shares of the company, expiring 2 years from the date of grant and with an exercise price of $0.11 per share. The options vest 1/3 every six months beginning six months from the grant date. The Company had no options outstanding prior to April 10, 2018. As of May 31, 2019, 800,000 of the options were exercisable, nil at May 31, 2018. The remaining fair value of options to be expensed in fiscal years subsequent to May 31, 2019 is $8,980.
Segmented Annual Information
Revenues earned by divisions were as follows:
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2019 | 2018 | ||||||
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Insurance Services
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$ | 1,482,623 | $ | 1,450,329 | ||||
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CarCostCanada
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1,153,541 | 1,238,974 | ||||||
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IT Services
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248,464 | 262,541 | ||||||
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Total Revenue
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$ | 2,884,628 | $ | 2,951,844 | ||||
Liquidity
Based on a year-end cash position of $397,808, accounts receivable of $427,786, and accounts payable of $350,669, the company is in a positive cash position. Although the Company's two major business divisions were revenue-flat in 2019, there were many initiatives, partnerships and features developed behind the scenes that will be launched in fiscal 2020. The Company hired some key management and support personnel to assist in achieving revenue that should surpass 2019 levels. Management believes that the investment in these ventures and action plans will demonstrate significant returns for the Company in both revenue growth and corporate goodwill.
CarCostCanada revenues are primarily derived from the sale of new-car buyer members to our network of new car dealerships that will aim to sell the CarCostCanada member a new car. It is the mandate of management to monetize each CarCostCanada member by way of this lead-generation sale to new car dealers. In 2019, the CarCostCanada division hired a skilled and experienced Vice President and General Manager to enhance this member monetization, as well as increasing the size of the Company's new car dealership network, and maintain and strengthen the existing network. Management believes that our new hire and the dealer development team he is building will, over a short period of time, increase the revenues of the CarCostCanada division, as well as fortify the relationships with this dealer network.
Outlook
The Company's outlook is to continue to increase sales, update and improve our data services products and deliver significantly better results to our shareholders by way of the following:
- Develop a new, targeted CarCostCanada digital, video and traditional marketing campaign to enhance product and brand awareness to more Canadian new car buyers.
- Forge new CarCostCanada marketing partnerships that focus specifically on Canadian new car buyers and convert these buyers to CarCostCanada members.
- Continue to build out the CarCostCanada new car dealership network and strive to monetize over 80% of our members and introduce additional product offerings to our member-base.
- Maintain and 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 client base.
- Sign on one or two additional Canadian insurance companies to become Armada Insurance Services clients.
- Introduce a new CarCostCanada Member Services product that caters specifically to our insurance company clients.
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 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: [email protected]
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.
SOURCE: Armada Data Corporation