Currency Exchange International Announces Financial Results for the Three and Six Month Periods Ended April 30, 2017
June 6, 2017
Toronto, Canada - Currency Exchange International, Corp. (TSX:CXI) (OTCBB:CURN), is pleased to announce its financial results and present management's discussion and analysis ("MD&A") for the three and six month periods ended April 30, 2017 (all figures are in U.S. dollars except where otherwise indicated). The complete financial statements and MD&A can be found on the Company's SEDAR profile at www.sedar.com.
Financial Highlights for the Three Month Period Ended April 30, 2017 compared to the Three Month Period Ended April 30, 2016:
- Revenues increased 22% or $1.3 million to $7.2 million for the three month period ended April 30, 2017 from $5.9 million for the three month period ended April 30, 2016;
- Net operating income increased $264,000 to $1.4 million for the three month period ended April 30, 2017 from $1.2 million for the three month period ended April 30, 2016;
- Net income increased $145,000 to $625,000 for the three month period ended April 30, 2017 from $480,000 for the three month period ended April 30, 2016. The increase in net operating income and in net income is attributable to an increase in the number of customer transactions resulting from the addition of three new CXI branches as well as 63% growth in wholesale banknote transacting locations since April 30, 2016;
- During the three-month period ended April 30, 2017, transactional activity between the Company and its customers increased 57% to 212,000 transactions from 135,000 for the three month period ended April 30, 2016; and
- Since April 30, 2016, the Company has added 365 new wholesale banknote relationships representing 2,777 new transacting locations as well as three new branch locations.
Financial Highlights for the Six Month Period Ended April 30, 2017 compared to the Six Month Period Ended April 30, 2016:
- Revenues increased 16% or $1.9 million to $13.3 million for the six month period ended April 30, 2017 from $11.4 million for the six month period ended April 30, 2016;
- Net operating income decreased $340,000 to $1.7 million for the six month period ended April 30, 2017 from $2.1 million for the six month period ended April 30, 2016;
- Net income decreased $239,000 to $539,000 for the six month period ended April 30, 2017 from $778,000 for the six month period ended April 30, 2016. The decrease in net operating income and net income was primarily due to one-time executive replacement costs; one-time fees for the new wholly-owned subsidiary bank, Exchange Bank of Canada, related to membership in certain payments associations to support development of the payments business, and professional fees; and higher recurring expenses for compliance, sales, and shipping. Shipping fees are up due to a large increase in transaction volume; and
- During the six month period ended April 30, 2017, transactional activity between the Company and its customers increased 59% to 412,000 transactions from 259,000 for the six month period ended April 30, 2016.
Selected Financial Data
*Restatement made in Fiscal Year 2015 to correct the presentation of a gain on foreign exchange along with its corresponding income tax impact which was required to be presented under IFRS as other income. The foreign exchange gain was previously disclosed under comprehensive income with no corresponding tax provision. The restatement does not impact the Company's revenues, operating expenses, or net operating income.
Seasonality is reflected in the timing of when foreign currencies are in greater or lower demand. In a normal operating year there is seasonality to the Company's operations with higher revenues generated from March until September and lower revenues from October to February. This coincides with peak tourism seasons in North America when there are generally more travelers entering and leaving the United States and Canada.
The Company plans to host a conference call on June 7, 2017 at 3:00 PM (EST). To participate in or listen to the call, please dial the appropriate number:
- Toll Free: +1 (855) 336-7594
- Conference ID number: 34174967
About Currency Exchange International, Corp.
CXI is in the business of providing a range of foreign currency exchange and related products and services in North America, including the Hawaiian Islands. Primary products and services include the exchange of foreign currencies, wire transfer payments, purchase and sale of foreign bank drafts and international traveler cheques, and foreign cheque clearing. Related services include the licensing of proprietary FX software applications delivered on its web-based interface, www.ceifx.com ("CEIFX"), and licensing retail foreign currency operations to select companies in agreed locations.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release includes forward-looking information within the meaning of applicable securities laws. This forward-looking information includes, or may be based upon, estimates, forecasts and statements as to management's expectations with respect to, among other things, demand and market outlook for wholesale and retail foreign currency exchange products and services, proposed entry into the Canadian financial services industry, future growth, the timing and scale of future business plans, results of operations, performance, and business prospects and opportunities. Forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "preliminary", "project", "will", "would", and similar terms and phrases, including references to assumptions.
Forward-looking information is based on the opinions and estimates of management at the date such information is provided, and on information available to management at such time. Forward- looking information involves significant risks, uncertainties and assumptions that could cause the Company's actual results, performance or achievements to differ materially from the results discussed or implied in such forward-looking information. Actual results may differ materially from results indicated in forward-looking information due to a number of factors including, without limitation, the competitive nature of the foreign exchange industry, currency exchange risks, the need for the Company to manage its planned growth, the effects of product development and the need for continued technological change, protection of the Company's proprietary rights, the effect of government regulation and compliance on the Company and the industry in which it operates, network security risks, the ability of the Company to maintain properly working systems, theft and risk of physical harm to personnel, reliance on key management personnel, global economic deterioration negatively impacting tourism, volatile securities markets impacting security pricing in a manner unrelated to operating performance and impeding access to capital or increasing the cost of capital as well as the factors identified throughout this press release and in the section entitled "Risks and Uncertainties" of the Company's Management's Discussion and Analysis for Year Ended October 31, 2016. The forward-looking information contained in this press release represents management's expectations as of the date hereof (or as of the date such information is otherwise stated to be presented), and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this press release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this press release.
For further information please contact: