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Armada announces Q1 2014 Results

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Armada announces Q1 2014 Results

Mississauga, Ontario CANADA, October 30, 2013 /FSC/ – Armada Data Corporation (ARD – TSX Venture), is pleased to report its interim financial results for the quarter ended August 31, 2013 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

* August 31, 2013 revenue increased to $702,542 versus $678,786 at August 31, 2012 or an increase of 3%.

* The Company recorded comprehensive income before corporate income tax provision, of $154,941 compared to $28,754 last year, an increase of 439%

* Wages and Other Office Expenses have been reduced by 20%, from $647,650 to $519,449, due to staffing efficiencies and other cost-saving efforts

Wages and other office expenses decreased to $519,449 from $647,650 at August 31, 2012 or a decrease of 20%. Management is committed to keeping expenses controlled during periods of change, therefore the decrease in expenses is greater than the decrease in revenue.

The Company recorded comprehensive income before corporate income tax provision, of $154,941 compared to $28,754 last year, an increase of 439%. This change is a direct result of the reduction of divisional expenses offsetting the divisional loss in the Mister Beer Inc. operations and the increase in revenue in the Insurance Services division.

Amortization expense increased to $39,378 from $14,829 last year, due to the capital expenditures the Company has invested in for the Mister Beer Inc. division’s new brewery facility.

Selected Quarterly Information

-***-

————– ——- ——— ——- ——– ——-

Fiscal Year 2014 2013 2013 2013 2013

——- ——— ——- ——– ——-

————– ——- ——— ——- ——– ——-

Quarter Aug-31 May-31 Feb-28 Nov-30 Aug-31

Ended 2013 2013 2013 2012 2012

————– ——- ——— ——- ——– ——-

——- ——— ——- ——– ——-

Total Revenue 702,542 622,611 612,237 675,288 677,786

————– ——- ——— ——- ——– ——-

——- ——— ——- ——– ——-

Comprehensive

Income (Loss) 154,941 (519,430) 26,633 (31,503) 28,754

————– ——- ——— ——- ——– ——-

——- ——— ——- ——– ——-

Comprehensive

(Loss)

Income

per share $0.01 $(0.03) $0.01 $(0.01) $0.01

————– ——- ——— ——- ——– ——-

————– ——— ——– ——–

Fiscal Year 2012 2012 2012

——— ——– ——–

————– ——— ——– ——–

Quarter May 31 Feb-28 Nov-30

Ended 2012 2012 2011

————– ——— ——– ——–

——— ——– ——–

Total Revenue 728,225 742,239 863,133

————– ——— ——– ——–

——— ——– ——–

Comprehensive

Income (Loss) (604,075) (71,441) (36,375)

————– ——— ——– ——–

——— ——– ——–

Comprehensive

(Loss)

Income

per share $(0.01) $(0.01) $(0.01)

————– ——— ——– ——–

-****-

The prior periods’ comparative figures have been reclassified where necessary,

to conform to the current period’s presentation.

Cash on hand decreased from $230,272 at August 31, 2012 to an overdraft of $(134,783) at August 31, 2013. This cash on hand reduction is directly attributed to the acquisition of 90% interest in TBE/Mister Beer Inc. In addition, capital investments in the new Mister Beer Inc. brewery have had and will continue to have significant impact on the Company’s cash on hand. The Company has obtained a credit facility from its bank to assist in day-to-day operations.

Accounts receivable increased from $431,394 in the prior year’s quarter to $487,518 in the quarter ended August 31, 2013. Related party Accounts Receivable increased to $4,719 from $2,348.

Accounts payable decreased to $252,587 from $262,233. Related party Accounts Payables decreased from $14,572 to $6,547. The Note payable related to the TBE/Mister Beer Inc. acquisition is $Nil, compared to$58,334 last year.

As a result of the comprehensive loss reported by the Company for fiscal 2013 and comprehensive income for this first quarter of 2014, the retained earnings are a deficit of $(767,807), as compared to retained earnings of a deficit of $(398,448) at August 31, 2012.

Insurance Services

The Insurance Services division revenue increased to $284,400 from $193,490, or by 47%. Insurance Services contributed 40% of the Company’s total revenue this quarter, compared to 29% for the quarter ended August 31, 2012. July 2013 saw the busiest month in the Company’s history for this division, due to the unusual flooding in Alberta and Ontario.

Retail Services

The Retail Services division revenue remained unchanged at $123,482 from $123,753 last year. The Company launched the division’s updated website during this quarter and the announcements of new value-add partnerships. The Retail Services division contributed 18% of the Company’s total revenue, remaining the same as the prior year’s quarter.

Dealer Services

The Dealer Services division’s revenue decreased by 11% (to $205,512 from $230,564) from the prior year’s quarter. The continuation of efficiencies undertaken by management has ensured that this decrease is more than matched by decreases in expenses. Management expects additional revenues within this department as a result of new revenue opportunities being market tested. The Dealer Services division’s contribution of 29% to the Company’s total revenue is a decrease over last year’s contribution of 34%.

Internet Technology

The Internet Technology division revenue decreased by 40%, from $58,329 to $35,090. The division’s focus has been redirected to the internal needs of the organization as opposed to outside projects. There are several new technological trends within this sector and management is committed to ensuring that all of Armada’s divisions keep pace with the market to the best of their ability. The IT division contributed 5% of the corporate quarterly revenue; a decrease over the 9% contribution in the prior year’s quarter.

Advertising/Marketing

The Advertising/Marketing division decreased to $7,466 from $22,420, a decrease of 67%. The contribution to total revenue has decreased from 3% in the prior year’s quarter; the division now brings in 1% of the corporate revenues.

Mister Beer Inc.

The Mister Beer Inc. division had gross sales of $108,626, less $62,034 of direct costs and labour, to report net revenues of $46,592, compared to gross sales of $119,745 less $69,515 direct costs and labour resulting in net revenue of $50,230 in the quarter ended August 31, 2012. Mister Beer Inc. contributed 7% to the Company’s total revenue, compared to 7% from the previous year’s quarter. Inventory on hand increased to $70,079 at August 31, 2013 from $29,595 at August 31, 2012.

Revenues earned by division were as follows:

-***-

3 months ended 3 months ended

August 31, 2013 August 31, 2012

Insurance Services $ 284,400 40% $ 193,490

Retail Services 123,482 18% 123,753

Dealer Services 205,512 29% 230,564

Internet Technology 35,090 5% 58,329

Advertising/Marketing 7,466 1% 22,420

———————- ———————-

———————-

655,950 93% 628,556

====================== ======================

Revenue-Mister

Beer Inc. $ 108,626 119,745

Less: Direct product

costs/wages (62,034) (69,515)

———————- ———————-

Net revenue Mister

Beer Inc. 46,592 7% 50,230

———————- ———————-

Total consolidated

revenue $ 702,542 100% $ 678,786

====================== ======================

year ended

May 31, 2013

Insurance Services 29% $ 833,529 32%

Retail Services 18% 467,197 18%

Dealer Services 34% 828,228 32%

Internet Technology 9% 235,168 9%

Advertising/Marketing 3% 67,004 3%

—————-

93% 2,431,126 94%

================

Revenue-Mister

Beer Inc. 515,093

Less: Direct product

costs/wages (358,297)

—————-

Net revenue Mister

Beer Inc. 7% 156,796 6%

—————-

Total consolidated

revenue 100% $ 2,587,922 100%

================

-****-

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’s information and marketing abilities have enabled the company to leverage that experience into the food and beverage industry by its acquisition of 90% of the issued and outstanding shares of The Big & Easy Bottle Brewing Company Inc. The Big & Easy Bottle Brewing Company Inc. owns 100% of Mister Beer Inc., which invented, produces and markets the unique “microbrewery in a bottle” beer-making kit.

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.

to view the press release as a PDF file, please click on the following link:

http://www.usetdas.com/pr/armada10302013.pdf

Source: Armada Data Corporation (ARD – TSX-V) http://www.armadadatacorp.ca

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