Posts Record Q3 Revenue up 43%

by | Apr 29, 2010 | Corporate News & Information, Financial, Press Releases

For immediate Release: April 29, 2010

Armada Posts Record Q3 Revenue up 43%

Mississauga, Ontario, April 29, 2010, ‐ Armada Data Corporation (TSX.V: ARD) is pleased to report its interim financial results for the quarter ended April 29, 2010 have now been filed on Sedar and are available to view on the Company’s website www.ArmadaData.com as well as on Sedar at www.Sedar.com .

Highlights for the Quarter compared to the same quarter last year

  • The Company reported the highest 3rd quarter revenue in the Company’s history
  • Overall revenue increased 43%.
  • Operating income (before amortization and stock‐based compensation) increased 14%.
  • Insurance Services revenue increased 38%.
  • Retail Services revenue increased 33%.
  • Dealer Services revenue increased 76%.
  • Advertising/Marketing Services revenue increased 132%.
  • CarCostCanada.com new membership sales increased 43%.
  • Research & Development investments increased 77%.
  • The total assets of the Company increased 31%.
  • The Company’s accounts receivable increased 41%.
  • The Company’s cash position increased 33%.
  • Revenue increased during the quarter to $707,517 from $494,907 last year, an increase of 43%.

Total operational expenses increased to $655,747 from $449,545 an increase of 46%. The majority of the increase can be attributed to an increase in marketing costs related to CarCostCanada.com, Research and Development investments to improve retail and insurance service offerings and efficiencies, as well as additional personnel, employee bonuses, management expenses and investor relations expenses.
All four major divisions experienced significant growth.

1. Insurance Services

The unseasonably mild winter weather in most parts of Canada and the subsequent lower number of insurance claims had a negative impact on the Company’s 43r service. However, due to the strong growth of the Company’s new ACV service, revenue from Armada Insurance Services increased to $322,330 from $232,970 last year, an increase of 38%. For the quarter Insurance Services generated 46% of the company’s revenue versus 41% last year.
The increased revenues were a direct result of the Company’s new ACV (Actual Cash Value) service being adopted by a growing number of the Company’s existing clients which currently use the 43r (Waiver of Depreciation) service.
The Company currently works with 26 Insurance Companies in Canada, including eight of the top ten.
The Company has now completed beta testing on a newer, more automated version of the ACV service which is expected to increase the productivity and profitability of the service. The total market for the ACV service is over ten times greater than the 43r service and the Company expects to continue to increase its market share moving forward.

2. Retail Services

Overall revenue from Retail Services increased to $172,745 from $129,707 last year, an increase of 33%. For the quarter Retail Services generated 24% of the company’s revenue versus 26% last year.
The majority of the increase in revenue can be attributed to an aggressive marketing campaign the Company launched in February 2009. Continuous refinement has allowed for a very high return on investment which the Company anticipates will continue moving forward.
The Company is currently developing all‐new versions of CarCostCanada.com and TheCarMagazine.com websites to introduce new and unique services which the Company anticipates will increase traffic and revenue generated.
The Company is currently developing all‐new versions of CarCostCanada.com and TheCarMagazine.com websites to introduce new and unique services which the Company anticipates will increase traffic and revenue generated.

3. Dealer Services

Overall revenue from Dealer Services increased to $181,609 from $103,270 last year, an increase of 76%. For the quarter Dealer Services generated 26% of the company’s revenue versus 21% last year.
Dealer Services generates revenue through the sale of new vehicle leads derived from members of Car Cost Canada. As Retail Services revenue increases, so does Dealer Services revenue. Additional coverage in previously underserviced areas will continue to drive revenue increases beyond those of Retail Services.

4. Advertising/Marketing Services

Third party advertising revenue on CarCostCanada.com and TheCarMagazine.com increased to $29,220 from $12,611 last year, an increase of 132%. Although revenue increased significantly, the Company will look to improve results in this area in the coming quarters, with the anticipation of increased revenues moving forward.
“I am pleased to report a very successful third quarter. All of our major business divisions posted impressive gains. Our online advertising campaign delivered the best results in Armada’s history and our new ACV insurance services product is gaining acceptance with our existing insurance customers which is in a very large market space for us; 10 times larger than our current service was targeting. We believe after 10 years we are now beginning to see the success that our business holds. For that I thank my entire team and look forward to reporting continued success to our shareholders in the coming quarters.” commented Paul Timoteo, President and CFO.

Outlook and Investor Highlights:

Armada Data continues to attain a number of important fiscal and operational achievements, which include:

  • Retail Services continues to grow despite overall market conditions
  • Dealer Services continues to outpace all divisions in growth
  • Insurance Services continues to generate the highest revenue of all divisions
  • ACV Service now showing signs of significant revenue growth
  • Company remains 100% debt free
  • Management is focused on National sales growth, expense management and increasing profitability
  • An independent audit committee and mandate remains in full force to ensure quality of corporate governance to provide shareholders the confidence they deserve
  • Management believes that Armada Data Corporation, with its financial resources, is poised for significant growth as it grows its niche markets in all aspects of its Internet and traditionally based businesses.
  • It is expected that Management can meet these objectives regardless of economic conditions. Although a robust economy can lead to a greater number of cars sold and thus a potentially larger market opportunity for all of Armada’s divisions, a down economy has proven to have an equally positive impact as both individuals and insurance companies become more cost conscious.

About Armada Data Corp.

Armada Data Corp. is a profitable web‐enabled Automobile Information Services Company providing accurate and real‐time pricing data, to institutional and retail customers on a fee‐for‐service basis, through developing, owning and operating automotive related websites and providing information services to its clients.
Armada Data Corp shares are listed on the TSX Venture exchange under the trading Symbol ARD. Armada has 13,755,497 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. Paul Timoteo, President & CFO
  • Tel 1‐866‐453‐6995 ext 224
  • Email: PT@ArmadaData.com

Or
Investor Relations; please contact Mr. Richard Buzbuzian at Integrated Investor Relations Inc. Tel 647‐501‐3290 or email: RBuzbuzian@IntegratedIR.com
Public Relations; please contact Mr. Nelson Hudes at Hudes Communications International Tel 905‐660‐9155 or email: Nelson@HudesCommunications.com
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.
This news release contains forward-looking information within the meaning of Canadian securities laws, including statements relating to revenue, earnings, customer demand, penetration and increases to market share and anticipated growth. Forward-looking statements are based on estimates and assumptions made by Armada in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors Armada believes are appropriate. Many factors could cause the actual results of Armada to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, reduced spending by customers and risks relating to general economic conditions. Readers should not place undue reliance on Armada’s forward-looking statements. Armada undertakes no obligation to update or revise any forward-looking information, except as required by law.