ARD Year End Results. Financial + MD&A Highlights (Ending May 31, 2016)
Notes: Q1 results will be released end of October 2016
Related Party Receivables: $3,780
Prepaid Expenses: $48,001
Property & Equipment: $73,557
Total Assets: $953, 751 (Last year $730, 565)
Party Payables: $537
Income Tax: $42, 955
Deferred Revenue: $25,000
Note Payable: $281,000 ( Loan from CEO to Armada Data)
Total Liabilities: $599, 493 (Last year $659,854)
Quarterly Breakdown for sales
Q1 – Sales - $528,853 – Net Income - $70,175
Q2 – Sales - $545,409 – Net Income - $34,364
Q3 – Sales - $522,663 – Net Income - $81,419
Q4 – Sales - $661,263 – Net Income - $97,589
Revenue: $2,258,188 (Last year $2,008,772)
Expenses: $1,857,802 (Last year $2,137,421)
Net Income: $283,547 or $0.016 earnings per share ( Last year was a loss of $640,434)
Insider/Institutional Holdings: 13,499,960(76.4% as per SEDI).
2006 – Sales: $1.56M – Net Loss: $48K – Assets:663K – Liabilities - $151K – Dividend - 0
2007 – Sales: $1.67M – Net Income: $100K – Assets: $792K – Liabilities - $107K – Dividend - 0
2008 – Sales: $1.73M – Net Income: $166K – Assets: 964K – Liabilities – $104K – Dividend – 0
2009 – Sales: $2.15M – Net Income: $141K – Assets: $1.18M – Liabilities - $180K – Dividend - 0
2010 – Sales: $2.94M – Net Income: $289K – Assets: $1.56M – Liabilities - $222K – Dividend - $67K
2011 – Sales: $3.06M – Net Income: $270K – Assets: $1.96M – Liabilities - $280K – Dividend - $71K
2012 – Sales: $3.1M – Net Loss: $637K – Assets: $1.7M – Liabilities - $305K – Dividends - $82K
2013 – Sales: $2.59M – Net Loss: $496K – Assets: $1.58M – Liabilities - $628K – Dividends – 0
2014 – Sales: $2.23M – Net Loss: $240K – Assets: $1.25M – Liabilities - $546K – Dividends – 0
2015 – Sales: $2M – Net Loss: $640K – Assets: $730K – Liabilities - $660K – Dividends – 0
2016 – Sales: $2.2M – Net Income: $283K – Assets: $954K – Liabilities - $600K – Dividends - 0
The Company’s total revenue increased by 12% in 2016 from $2,008,772 to $2,258,188. The Company reported comprehensive income of $283,547, due to the following factors: Management’s decision to close the brewing facility of Mister Beer on January 1, 2015 – the combination of no expenses for this division and disposal of its remaining assets meant that Mister Beer no longer had a negative financial impact on the Company. A sub-tenant was found for the brewing facility on November 1, 2015, to offset the rent expense of the lease obligation for these premises, and the Company is no longer responsible for utility, insurance and maintenance expenses for the same premises. Insurance claims increased drastically in May 2016 due to the Fort McMurray fires, and as a result, the insurance division revenue increased, which has carried over into June 2016 for fiscal 2017.
The quarter ending May 31, 2016 finished with the Company recording revenue of $661,263 versus $463,056 last year, an increase of 43%. Income before taxes for the 4th quarter of 2016 is $97,589, compared to $(505,629) in 2015.
Based on a year-end cash position of $231,242, accounts receivable of $417,171, accounts payable of $250,001, and current notes payable of $281,000, management believes that the company will remain in a debt position utilizing private financing to assist in ongoing operations of the Company. By closing the Mister Beer division, management has reduced overall expenses and commitments. The other divisions of Armada are poised for revenue gains this fiscal year as a result of new project and feature launches as well as more than one significant partnership that the Insurance and Retail Service teams are working on. Management believes that the data divisions will not only remain very stable and profitable but begin to make significant inroads in new verticals that will result from our partnerships, project releases and new revenue streams.
The Retail and Dealer services division were competition-free for many years and had to re-group and restrategize in order to prevent further erosion caused by an aggressive competitor. Management expects CarCostCanada.com to start realizing market gains this fiscal year and with the overall new car market remaining poised for more growth nationally (and more specifically in the web-rich Canadian urban centres), the division plans to earn more members to enhance the new car buying process for the Canadian new car buying marketplace.
The Company’s outlook is to continue to increase sales, update and improve our data services products and services, and deliver significantly better results to our shareholders by way of the following:
Build on the historical success of the Company’s ongoing sales and marketing efforts focused on increasing sales at Retail Services, Dealer Services and Insurance Services.Exploit market awareness and demand for new vehicle pricing information and dealer referrals that result from the additional competition within that market space; by putting more emphasis on outside partners, data outsourcing and our underutilized online magazine TheCarMagazine.comContinue to 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 vast client base.Maintain operating expenses and achieve the economies of scales of an Internet based business.Expand third-party fee-based online advertising, by developing improved and more secure advertising methods.