Armada Data Corporation Due Diligence Report Armada Data Corporation Q2 Results (Ending November 30th 2015) Price: $0.045c Common Shares: 17,670,265 Insider Holdings: 13,499,960(76.4% as per SEDI) Website: www.armadadata.com ASSETS Cash: $196,813 (Cash in Q1: $115,573) Accounts Receivable: $299,594 Related Receivable: $4,037 Prepaid Expenses: $53,955 Property & Equipment: $93,992 Goodwill: $180,000 Total Assets: $828,391 (Total Assets in Q1: $762,100) LIABILITIES Accounts Payable: $293,011 Related Payable: $4,538 Related Note Payable: $206,000 Corporate Income Tax: $68,592 Long Term Note: $81,000 Total Liabilities: $653,141 (Total Liabilities in Q1: $621,214) Q2 Sales Revenue: $545,409 Expenses: $500,984 Amortization: 10,061 Net Income: $34,364 Q1 & Q2 Combined Sales Revenue: $1,074,262 Expenses: $948,897 Amortization: $20,826 Net Income: $104,539 or $0.006c EPS MD&A Highlights The Company’s operations consist of five main segments: Insurance Services, Retail Services, Dealer Services, Information Technology (IT) Services, and Advertising/Marketing Services. Liquidity Based on a cash position of $196,813 and accounts receivable of $299,594, management feels that the Company is in a good position to meet all current and foreseeable financial obligations. With the closing of the Mister Beer production facility, expenses have been reduced. 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 CarCostCanada.com divisions (Retail and Dealer services) are not be void of the competition that has made significant advancements over the past three years; however, the divisions have now learned how to deal with our competition and overcome many of their tactics. The Retail and Dealer services division were competition-free for many years and had to re-group and re-strategize in order to prevent further erosion caused by an overly aggressive new 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. Outlook 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: 1. 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. 2. 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.com 3. Continue 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. 4. Maintain operating expenses and achieve the economies of scales of an Internet based business. 5. Expand third-party fee-based online advertising, by developing improved and more secure advertising methods. Operations The Company’s total sales decreased by 6% in the quarter ended November 30, 2015, from $580,517 in 2014, to $545,409. Comprehensive income increased from a loss of $(71,214) in the period ended November 30, 2014 to $34,364 in the period ended November 30, 2015. The Insurance Services division experienced an 11% increase in revenue, from $252,525 in 2014 to $280,719 in 2015. The Retail Services division revenue was down 22% to $64,727 in 2015 from $82,826 in 2014. The updated CarCostCanada.com website, as well as the new Partners and Discounts program clearly helped the CarCostCanada.com membership program maintain a strong presence in the marketplace, despite increasing competition. The Dealer Services division revenue remained much the same, at $161,981 in 2014, and $162,013 in 2015. This division’s dealer development team has a plan to service the customers who find themselves without a dealer referral, although full implementation of this program has not been completed at the end of this period. The Advertising/Marketing Services division, which derives its revenue from the sale of online third party advertising on CarCostCanada.com and TheCarMagazine.com increased from $100 to $7,298. The Information Technology division revenue increased 11% to $30,652 in 2015, up from $27,550 in 2014. IT continues to offer technical support and web site hosting to hundreds of customers, and to develop new customer relationships on a regular basis. The Mister Beer division’s revenues are down from $55,535 to nil. Direct product costs and labour decreased from $53,633 to nil. The net income for Mister Beer Inc. went from $1,902 in 2014 to nil in 2015. Management made the decision to close the production facility on December 31, 2014, in order to explore options with respect to a sale or other disposition of the Bottle Brew business line. This division’s assets were disposed of during the period ended November 30, 2015. Total expenses before amortization decreased to $500,984 compared to $561,314, a 11% decrease over last year. This is attributed to ceasing production at Mister Beer Inc. and continued cost-cutting measures implemented by management during the previous quarter.
ARD Q3 Results will be out end of April. Level 2 below: LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 136,000 0.040 0.055 1,000 10,000 0.035 0.060 19,000 8,000 0.025 0.070 20,000 10,000 0.020 0.080 20,000 14,000 0.015 0.155 12,000 265,000 0.005 2.000 5,000
Armada extends $200,000 loan to Dec. 31 2016-04-27 09:04 MT - News Release Mr. James Matthews reports ARMADA EXTENDS PREVIOUSLY CLOSED FINANCING Armada Data Corp. has extended the maturity date of the $200,000 loan that was entered into with a corporation that is owned and controlled by a director and officer of the company from the original maturity date of Feb. 29, 2016, to Dec. 31, 2016. This financing was previously announced in a news release issued on Feb. 27, 2015. We seek Safe Harbor. © 2016 Canjex Publishing Ltd. All rights reserved.
Armada Data Corporation Q3 Results (Ending February 29th 2016) My note: ARD.V has turned around it’s performance significantly by showing three profitable quarters back to back and earning over $0.01c per share after 9 months. Below are the financial results and MD&A highlights. Stock Price: $0.04 Common Shares: 17,670,265 Insider/Institutional Holdings: 13,499,960(76.4% as per SEDI) Assets Cash: $209,181 Receivables: $324,529 Party Receivable: $8,763 Prepaid Expenses: $47,156 Property & Equipment: $84,041 Goodwill: $180,000 Total Assets: $853,670 Liabilities Accounts Payable: $305,619 Party Payable: $1,537 Income Tax: $8,845 Long Term Loan: $281,000 (recently extended to end of 2016) Sales Breakdown. First 9 months, then Q1,Q2,Q3 9 Month Sales Revenue: $1,596,926 Expenses: $1,380,081 Net Income: $185,958 - $0.0105c earnings per share Q1 Results Revenue: $528,853 Net Income: $70,175 Q2 Results Revenue: $545,409 Net Income: $34,364 Q3 Results Revenue: $522,663 Net Income: $81,419 MD&A Highlights The Company’s operations consist of five main segments: Insurance Services, Retail Services, Dealer Services, Information Technology (IT) Services, and Advertising/Marketing Services. Operations The Company’s total sales increased by 10% in the quarter ended February 29, 2016, from $474,293 in 2015, to $522,663. Comprehensive income increased from a loss of $(52,028) in the period ended February 28, 2015 to $81,419 in the period ended February 29, 2016. The Insurance Services division experienced a 14% increase in revenue, from $241,433 in 2015 to $276,217 in 2016. The Retail Services division revenue was down 29% to $44,060 in 2016 from $56,798 in 2015. The Dealer Services division revenue increased 9%, from $142,129 in 2015, to $155,525 in 2016. The Advertising/Marketing Services division, which derives its revenue from the sale of online third party advertising on CarCostCanada.com and TheCarMagazine.com, increased from $200 to $18,425. The Information Technology division revenue increased 5% to $28,436 in 2016, up from $27,129 in 2015. IT continues to offer technical support and web site hosting to hundreds of customers, and to develop new customer relationships on a regular basis. Total expenses before amortization decreased to $431,183 compared to $482,042, a 10.5% decrease over last year. This is attributed to ceasing production at Mister Beer Inc. and continued cost-cutting measures implemented by management. Liquidity Based on a cash position of $209,181 and accounts receivable of $324,529, management feels that the Company is in a good position to meet all current and foreseeable financial obligations. With the closing of the Mister Beer production facility, expenses have been reduced. 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 CarCostCanada.com divisions (Retail and Dealer services) are not void of the competition that has made significant advancements over the past three years; however, the divisions have now learned how to deal with our competition and overcome many of their tactics. The Retail and Dealer services division were competition-free for many years and had to re-group and re-strategize in order to prevent further erosion caused by an overly aggressive new 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. Outlook 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: 1. 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. 2. 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.com 3. Continue 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. 4. Maintain operating expenses and achieve the economies of scales of an Internet based business. 5. Expand third-party fee-based online advertising, by developing improved and more secure advertising methods.
Armada Data earns $81,419 in fiscal Q3 2016 2016-04-28 12:47 MT - News Release Mr. James Matthews reports ARMADA ANNOUNCES Q3 2016 RESULTS Armada Data Corp. has filed its interim financial results for the quarter ended Feb. 29, 2016, on SEDAR. The financial results are available to view on the company's website, as well as on SEDAR. SELECTED QUARTERLY INFORMATION Fiscal year 2016 2016 2016 2015 2015 2015 2015 2014 Quarter ended Feb. 29, Nov. 30, Aug. 31, May 31, Feb. 28, Nov. 30, Aug. 31, May 31, 2016 2015 2015 2015 2015 2014 2014 2014 Total revenue $522,663 545,409 528,853 463,056 466,797 526,884 552,035 437,930 Comprehensive income (loss) 81,419 34,364 70,175 (505,629) (52,028) (71,214) (11,563) (289,672) Comprehensive income (loss) per share $0.00 $0.00 $0.00 $(0.03) $0.00 $0.00 $0.00 $(0.02) The prior periods' comparative figures have been reclassified where necessary, to conform to the current period's presentation. Operations The company's total sales increased by 10 per cent in the quarter ended Feb. 29, 2016, from $474,293 in 2015, to $522,663. Comprehensive income increased from a loss of $52,028 in the period ended Feb. 28, 2015, to $81,419 in the period ended Feb. 29, 2016. The insurance services division experienced a 14-per-cent increase in revenue, from $241,433 in 2015 to $276,217 in 2016. The retail services division's revenue was down 29 per cent to $44,060 in 2016 from $56,798 in 2015. The dealer services division's revenue increased 9 per cent from $142,129 in 2015 to $155,525 in 2016. The revenue of the advertising/marketing services division, which derives its revenue from the sale of on-line third party advertising on the Car Cost Canada and The Car Magazine websites, increased from $200 to $18,425. The information technology division's revenue increased 5 per cent to $28,436 in 2016, up from $27,129 in 2015. The IT division continues to offer technical support and website hosting to hundreds of customers and to develop new customer relationships on a regular basis. The Mister Beer division's revenues are down from $6,604 to nil. Direct product costs and labour decreased from $7,496 to nil. The net revenue for Mister Beer Inc. went from negative $892 in 2015 to nil in 2016. Management made the decision to close the production facility on Dec. 31, 2014, in order to explore options with respect to a sale or other disposition of the bottle brew business line. This division's assets have been disposed of and the division is permanently closed. Total expenses before amortization decreased to $431,183 compared with $482,042, a 10.5-per-cent decrease over last year. This is attributed to ceasing production at Mister Beer and continued cost-cutting measures implemented by management. Cash on hand increased from $39,649 as at Feb. 28, 2015, to $209,181 as at Feb. 29, 2016. Accounts receivable increased by 23 per cent to $324,529 as at Feb. 29, 2016, compared with $264,728 last year. Related party accounts receivable decreased from $10,933 to $8,763. Accounts payable increased to $305,619 as at Feb. 29, 2016, from $195,358 a year earlier. Related party accounts payable decreased to $537 as at Feb. 29, 2016, from $3,313 last year. Despite the comprehensive income reported by the company for this period, the company's deficit increased to $1,648,858 as at Feb. 29, 2016, compared with a deficit of $1,329,187 last year, attributable to the writedown of Mister Beer assets at May 31, 2015. Management does not plan on issuing any dividends until further notice. Revenues earned by the divisions are as shown in the attached table. Three months ended Three months ended Year ended Feb. 29, 2016 Feb. 28, 2015 May 31, 2015 Insurance services $ 276,217 $ 241,433 $ 909,656 Retail services 44,060 56,798 323,012 Dealer services 155,525 142,129 695,017 Internet technology 28,436 27,129 127,649 Advertising/marketing services 18,425 200 12,251 --------- --------- ---------- Total revenue -- Armada Data Corp. $ 522,663 $ 467,689 $2,067,585 --------- --------- ---------- Revenue -- Mister Beer Inc. - 6,604 107,790 --------- --------- ---------- Less direct product costs/wages -- Mister Beer Inc. - (7,496) (166,603) --------- --------- ---------- Total revenue -- Mister Beer Inc. - (892) (58,813) --------- --------- ---------- Total consolidated revenue $ 522,663 $ 466,797 $2,008,772 ========= ========= ========== Related party transactions Salaries and expenses are paid to an officer of the company, who is also a 50-per-cent shareholder of Lease Busters Inc. Legal fees are paid to a law firm, of which a partner is a (non-remunerated) director of the company. Financing was acquired from a company owned by a director of Armada Data, and interest is paid monthly to this related party. All of the actual costs noted in this section are paid at fair market value in the normal course of business. © 2016 Canjex Publishing Ltd. All rights reserved.
Very few sellers on ARD and with more profitable quarters coming in, the price will go up. But also keep in mind that insiders/institutions own most of the 17.5 million common shares. Level 2 below: LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 138,000 0.050 0.070 19,000 7,000 0.045 0.080 20,000 108,000 0.040 0.155 12,000 28,000 0.025 1.990 5,000 10,000 0.020 -- -- -- 14,000 0.015 -- -- -- 265,000 0.005 -- -- --
Trading at a two year high today, but still a very cheap price considering the three profitable quarters of over $0.01c EPS and solid balance sheet. Armada's big problem the last four years was that home made wine kit that cost them millions, however their turnaround plan is so far working.
LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 12,000 0.060 0.100 19,000 5,000 0.055 0.145 12,000 138,000 0.050 0.225 5,000 10,000 0.045 1.990 5,000 120,000 0.040 -- -- -- 28,000 0.025 -- -- -- 10,000 0.020 -- -- -- 14,000 0.015 -- -- -- 265,000 0.005 -- -- --
LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 22,000 0.060 0.090 19,000 10,000 0.055 0.095 5,000 163,000 0.050 0.130 5,000 10,000 0.045 0.145 12,000 120,000 0.040 1.990 5,000 10,000 0.035 -- -- -- 10,000 0.030 -- -- -- 28,000 0.025 -- -- -- 10,000 0.020 -- -- -- 14,000 0.015 -- -- --
Spoke to ARD management and they are quite busy with an influx of new work, along with updating the CarCost website, Car Magazine website, and then finally the main site. We should also be getting a presentation of some sort soon which will help current and future shareholders see where the company is going with it's 5 different revenue streams. LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 22,000 0.060 0.090 19,000 10,000 0.055 0.095 5,000 125,000 0.050 0.140 5,000 10,000 0.045 0.145 12,000 20,000 0.040 1.990 5,000 10,000 0.035 -- -- -- 10,000 0.030 -- -- -- 28,000 0.025 -- -- -- 10,000 0.020 -- -- -- 14,000 0.015 -- -- --
It's been the same level two for weeks, kind of setting up the same way CTZ did last year and IRO did this year, except less dilution and better earnings. This will pop in time. LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 110,000 0.055 0.085 5,000 30,000 0.050 0.090 19,000 10,000 0.045 0.140 5,000 20,000 0.040 0.145 12,000 10,000 0.035 -- -- -- 10,000 0.030 -- -- -- 28,000 0.025 -- -- -- 10,000 0.020 -- -- -- 14,000 0.015 -- -- -- 265,000 0.005 -- -- --
Just a little bit of buying this week and that's cleaned up some of the level 2. There's really nothing left for sale under 10c and another $70K+ net income for Q4 2015 and for Q1 2016 would likely send the price back to a multi year high. But we'll have to wait until September and October to see those results. Level 2 below: LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 3,500 0.090 0.135 13,000 10,000 0.065 0.140 5,000 27,000 0.060 -- -- -- 100,000 0.055 -- -- -- 20,000 0.050 -- -- -- 20,000 0.040 -- -- -- 28,000 0.025 -- -- -- 10,000 0.020 -- -- -- 14,000 0.015 -- -- -- 265,000 0.005 -- -- --
A couple shares came down, but still not much for sale given the price is near a multi year high. The wait for year end will be a while, but more profitable quarters will keep the price going up. Would be nice to see news and an updated website. LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 10,000 0.070 0.090 60,500 27,000 0.060 0.095 2,000 100,000 0.055 0.135 12,000 20,000 0.050 -- -- -- 20,000 0.040 -- -- -- 8,000 0.025 -- -- -- 10,000 0.020 -- -- -- 14,000 0.015 -- -- -- 100,000 0.005 -- -- --
Looks like Armada Data might have a new partnership going on with another insurance company. This website was last updated June 15th and I do weekly Google checks of "armada data corporation" and have never come across it until now. http://insurancehound.ca/about-us/ Who we are: Insurancehound.ca is a full service insurance brokerage owned & staffed by licensed insurance professionals in Ontario. We combine the simplicity of Point of Sale technology with the support of experienced insurance brokers. To enhance your online experience InsuranceHound has partnered with online marketing & sales pioneers Armada Data Corp with their high profile online brands Leasebusters and Car Cost Canadalevering the expertise of these 2 industry leaders we are certain you will have a powerful cost savings experience.
ARD is finally trading at a more realistic price level compared to the company earnings over the last 9 months. They earned over $0.01 eps and a 10-15 times multiple is proper for a junior. End of September we will have Q4 and year end results and end of October Q1 2016 results. If those quarters are also profitable(which I believe they will be since the disposition of Mr.Beer has helped greatly), ARD should reach the $0.20-0.25 range. Level 2 below: LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 174,000 0.060 0.125 2,000 8,000 0.025 0.135 11,000 10,000 0.020 0.150 10,000 14,000 0.015 -- -- -- 285,000 0.005 -- -- --
Armada Data 10 Year Revenue /Profit (loss) / Dividend Chart Legend: M = Millions, K = Thousands, Common Shares: 17.7 million, 50% held by directors Note: In 2011, ARD purchased Mister Beer and wrote it off in 2015 Note: In 2012, a director and one of the largest shareholders passed away Note: CEO and 20% shareholder Jim Matthews loans company $200,000 Feb.2015 Note: 2016 Sales only based on first three quarters. Year end will be out end of September 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: $1.6M – Net Income: $186K – Assets: $854K – Liabilities - $597K – Dividends paid yearly After 10 years of sales, it’s clear to see how ARD.V had grown as a company from 2006 to 2011, even through the financial crisis of 2008. However, after the asset purchase of Mister Beer in 2011 and passing of director Paul Timoteo, the combination hurt the company from 2012 to 2015 and almost made it go bankrupt. With the directors now focused on the original five revenue producing assets, along with some cost reductions, ARD will be able to recover back to a profitable position and possibly pay dividends once again. So far after 9 months without Mister Beer, ARD has earned over 1 cent in net income and this should continue to carry forward. Additional articles: Mister Beer Purchase: http://www.armadadata.com/index.php/2011/armada-to-acquire-mister-beer/ Director Passing: http://www.armadadata.com/index.php/2012/paul-timoteo/ ARD Q3 2016 Results: http://www.armadadata.com/wp-content/uploads/2016/04/PressReleaseQuarterEnding_FEB292016.pdf
Good to see the level 2 looking thin on the ask side. I think interested buyers need to realize that ARD is worth more than $0.10 and the lack of sellers reinforces this notion. From what I posted already, it makes sense that Mister Beer was the culprit of quarterly losses for years. Now the company is definitely on a reversal course which will lead to larger yearly profits, dividends, and making shareholders happy overall. 9 weeks left to go before we see year end, but the update coming in August will be awesome and then Q1 in October should show five straight quarters of profits. Level 2 below: LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 7,000 0.085 0.145 10,000 13,000 0.080 0.330 15,000 5,000 0.075 1.990 5,000 29,000 0.070 -- -- -- 10,000 0.065 -- -- -- 65,000 0.060 -- -- -- 20,000 0.040 -- -- -- 8,000 0.025 -- -- -- 10,000 0.020 -- -- -- 14,000 0.015 -- -- --
Sure is amazing how crap shoot mining stocks that just reorganized can go up 1000% on nothing(talking about GUL.V right now), yet ARD which is a proven profitable company with nearly the exact same float stays quiet. Investors need to smarten up and at least buy a company that can pay it's own bills rather than just dilute itself a thousand times over. Yes I owned GUL back in 2004 and it got me started in the small cap game, but it's not worth anything these days if you ask me.
Just checking google and I seem to have found the prototype for Armada's new insurance page. You can tell it's them because when you scroll to the bottom, you'll see all their disclaimers. Sounds as if they are expanding to the US for insurance. However, when my friend spoke to the company they mentioned an update on the CarCostCanada and TheCarMagazine websites. Now it seems the insurance portion is expanding too. Lots of major things coming soon. http://www.earlynaija.com/armada-insurance.html
