Armada Releases Q2 2021 Results

MISSISSAUGA, ON / ACCESSWIRE / January 28, 2021 / Armada Data Corporation (TSV.V:ARD) reports its interim financial results for the quarter ended November 30, 2020 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 Quarterly Information

Operations

The Company's total revenue decreased 18% in the period ended November 30, 2020 to $797,470 from $974,475 in the same period a year earlier. Comprehensive income decreased to $7,507 in this quarter, a decrease of 91% from $81,648 at November30, 2019.

The Insurance Services division experienced a 12% decrease in revenue, from $456,700 in the three months ended November 30, 2019 to $403,275 in 2020.

The CarCostCanada division (combining the former Retail, Dealer and Advertising divisions) revenue was down by 27% for the period ended November 30, 2020, to $335,442 from $459,938 during the period ended November 30, 2019.

The Information Technology division revenue increased by 2% to $58,753 in the second quarter of fiscal 2021 ended November 30, 2020, from $57,837 in the same quarter in fiscal 2020. IT continues to offer technical support and web site hosting to hundreds of customers, and is developing new customer relationships on a regular basis, as well as offering new services for sale.

Wages and other office expenses in this second quarter of fiscal 2021 before amortization and interest, decreased to $766,079, compared to $852,614, a 10% decrease over the same period last year.

Accounts receivable increased 3% to $544,305 as at November 30, 2020, compared to $527,047 as at November 30, 2019. Related party accounts receivable increased from $5,670 to $26,323.

Accounts payable decreased 7%, to $323,311 as at November 30, 2020 from $348,768 a year earlier. There was $23,108 Related parties accounts payable as at November 30, 2020 and $6,143 as at November 30, 2019.

The Company's deficit decreased to $(686,915) as at November 30, 2020, compared to $(791,341) as at November 30, 2019. Earnings per share at November 30, 2020 are $0.00, compared to $0.01 reported November 30, 2019.

Segmented Quarterly Information

Revenues earned by divisions are as follows:

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 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:

1. Develop a new, targeted CarCostCanada digital, video and traditional marketing campaign to enhance product and brand awareness to more Canadian new car buyers.
2. Forge new CarCostCanada marketing partnerships that focus specifically on Canadian new car buyers and convert these buyers to CarCostCanada members.
3. 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.
4. 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.
5. Sign on one or two additional Canadian insurance companies to become Armada Insurance Services clients.
6. Introduce a new CarCostCanada Member Services product that caters specifically to our insurance company clients.

Armada Data Corporation is pleased to announce that the board of directors of the company has declared an annual dividend in the amount of $0.01 on each issued and outstanding common share of the company. The dividend will be payable on May 31, 2021 to the shareholders of record at the close of business on April 30, 2021. This dividend is designated by the company as an eligible dividend as defined by the Income Tax Act (Canada) and any similar provincial or territorial legislation.

Based on the January 27, 2021 closing price of $0.18 for Armada's common shares, the current annual dividend reflects a yield of 5.5%.

James Matthews, Chief Executive Officer of Armada Data Corporation states: "This dividend is a positive and encouraging development for the company's use of funds. Armada plans on upholding this annual dividend as it adds significant value to being an Armada shareholder and, as importantly, demonstrates the level of appreciation Armada has for its shareholders. However, investors are cautioned that the declaration and payment of dividends is at the discretion of the board of directors of the company and any future declaration of dividends will depend on the company's financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Company."

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] or [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