Currency Exchange International Announces Financial Results for the Three and Six Month Periods Ended April 30, 2018
May 31, 2018
Toronto, Canada – Currency Exchange International, Corp. (the “Company”) (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 period ended April 30, 2018 (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, 2018 compared to the Three Month Period Ended April 30, 2017:
- During the three month period ended April 30, 2018, transactional activity between the Company and its customers increased 16% to 245,000 transactions from 212,000 for the three month period ended April 30, 2017;
- Revenues increased 24% or $1.7 million to $8.9 million for the three month period ended April 30, 2018 from $7.2 million for the three month period ended April 30, 2017;
- Net operating income decreased $300,000 to $1.1 million for the three month period ended April 30, 2018 from $1.4 million for the three month period ended April 30, 2017;
- Net income decreased $117,000 to $508,000 for the three month period ended April 30, 2018 from $625,000 for the three month period ended April 30, 2017; and
- The decrease in profitability is attributable to increased salaries and recruitment fees for new positions, legal and professional fees, and nonrecurring one-time losses/costs in the period.
Financial Highlights for the Six Month Period Ended April 30, 2018 compared to the Six Month Period Ended April 30, 2017:
- During the six month period ended April 30, 2018, transactional activity between the Company and its customers increased 10% to 455,000 transactions from 412,000 for the six month period ended April 30, 2017. Since April 30, 2017, the Company has added 25 new wholesale banknote relationships representing 3,184 new transacting locations and 31 new payment relationships as well as two new CXI branch locations;
- Revenues increased 30% or $4 million to $17.3 million for the six month period ended April 30, 2018 from $13.3 million for the six month period ended April 30, 2017;
- Net operating income increased 71% or $1.2 million to $2.9 million for the six month period ended April 30, 2018 from $1.7 million for the six month period ended April 30, 2017;
- Net income increased 53% or $284,000 to $824,000 for the six month period ended April 30, 2018 from $539,000 for the six month period ended April 30, 2017; and
- The increase in profitability for the six month period is attributable to increased contributions from payments, increased margins from changes in currency mix and organic growth from wholesale and retail business lines.
Selected Financial Data for Currency Exchange International
|Revenue $||Net operating income $||Net income (loss) $||Total assets $||Total equity $||Earnings per share (diluted) $|
*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.
On May 31, 2018, CXI’s board has appointed Johanne Brossard to be an independent director of both CXI and EBC. “On behalf of our entire Board, we are very pleased and honored to have Johanne join our boards. Her career as CEO of a successful online banking business combined with her wealth of knowledge and strategic vision, further expands our board’s strengths and diversity allowing our group to continue to grow as outlined in our strategic plan and vision.” says Randolph Pinna, CEO and Chair of the Board of CXI.
Johanne Brossard, MBA, ICD.D, has more than 30 years in the financial services industry in Canada, Europe and Japan. As a former President and CEO of Bank West (Zag Bank), a subsidiary of Desjardins and ING Bank of Canada (ING Direct), Johanne played a major role in establishing the global ING Direct digital banking model that set a new strategic direction for retail banking in Canada.
The Company plans to host a conference call on June 1, 2018 at 8:30 AM (EST). To participate in or listen to the call, please dial the appropriate number:
Toll Free: +1 (855) 336-7594
Conference ID number: 1999269
About Currency Exchange International, Corp.
The Company 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 travelers 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.
The Company’s wholly-owned Canadian subsidiary, Exchange Bank of Canada, based in Toronto, Canada, provides foreign exchange and international payment services to financial institutions and select corporate clients in Canada through the use of its proprietary software – www.ebcfx.com.
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, 2017. 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.