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| Press Release

Armada Releases Annual Results

MISSISSAUGA, ON / ACCESSWIRE / September 28, 2020 / Armada Data Corporation (TSXV:ARD) reports that its annual financial results for the year ended May 31, 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 Annual Information

Fiscal Year Ended

May 31, 2020

May 31, 2019

May 31, 2018

May 31, 2017

Total Revenue

$3,280,998

$2,884,628

$2,951,844

$2,391,186

Income (loss) before taxes

$102,926

$(22,774)

$380,910

$275,821

Income Taxes

$52,801

14,680

$108,595

$79,957

Comprehensive (Loss) Income after Taxes

$50,125

$(37,454)

$272,315

$195,864

Comprehensive Income (Loss) per share

$0.00

$0.00

$0.02

$0.01

Total Assets

$1,568,978

$1,265,274

$1,196,600

$875,175

Total Liabilities

$622,030

$377,431

$355,095

$325,053

Shareholder's Equity, net of Non-controlling interests

$946,948

$887,843

$841,505

$550,122

Dividends

NIL

NIL

NIL

NIL


The Company's total revenue increased by 14% in 2020 to $3,280,998 from $2,884,628 in 2019.

The Company reported comprehensive income of $50,125, due to the following factors:

  • Total payroll costs, excluding management salaries, decreased by 2%, from $1,429,143 in the year ended May 31, 2019 to $1,404,361 in the year ended May 31, 2020. This is due to the Company receiving CEWS (COVID Employer Wage Subsidy) for the period of March 15 to April 11, 2020, and also due to reduced work hours attributed to COVID-19.

  • Advertising expenditures increased to $379,196 in 2020, compared to $331,289 in 2019, or by 14%

  • The COVID-19 pandemic resulted in the office closing and most staff working from home for the period of March 18 to July 31, 2020. As most Canadians were not driving during this period, insurance claims were close to non-existent, resulting in some staff layoffs in the Insurance Division, and a decrease in revenue during the fourth quarter of fiscal 2020. New car dealers across the country either closed their doors and worked remotely, or reduced their sales staff. Armada's CarCostCanada division suspended and/or discounted the billing for many of these dealer customers.

Selected Quarterly Information

Fiscal Year

2020

2020

2020

2020

2019

2019

2019

2019

Quarter

May-31

Feb-29

Nov-30

Aug-31

May-31

Feb-28

Nov-30

Aug-31

Ended

2020

2020

2019

2019

2019

2019

2018

2018

Total Revenue

609,210

922,113

974,475

775,200

713,646

718,174

704,521

748,287

Comprehensive

(Loss) Income before taxes

(133,491)

56,904

81,648

97,865

(85,663)

1,617

(30,407)

91,679

Comprehensive Income per share

$(0.01)

$0.00

$0.01

$0.01

$(0.01)

$0.00

$0.00

$0.01


Segmented Annual Information

Revenues earned by divisions were as follows:

 

2020

2019

Insurance Services

$1,607,899

$ 1,482,623

CarCostCanada

1,437,435

1,153,541

IT Services

235,664

228,464

Total Revenue

$ 3,280,998

$2,884,628


Liquidity

Based on a year-end cash position of $350,603, accounts receivable of $621,182, and accounts payable of $342,322, the company is in a positive cash position. The Company hired some key management and support personnel in prior years to assist in achieving revenue that should surpass 2020 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.

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.

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: 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.

SOURCE: Armada Data Corporation



View source version on accesswire.com:
https://www.accesswire.com/608030/Armada-Releases-Annual-Results

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