• Financial Institutions
  • Corporations
  • Travelers
  • Foreign Bank Note Exchange
  • International Drafts
  • International Wire Transfers
  • Global EFT
  • Foreign Check Clearing
  • Foreign Draft Issuance
  • Travel
  • Technology Companies
  • Payroll
  • Healthcare
  • Nonprofit
  • Partnerships

Currency Exchange International Announces Financial Results for the Three-Month Period and Financial Year Ended October 31, 2020

Ryan January 27th, 2021



January 27, 2021

Toronto, Canada – Currency Exchange International, Corp. (the “Company”) (TSX:CXI; OTCBB:CURN), announces its financial results and management's discussion and analysis ("MD&A") for the three months and year ended October 31, 2020 (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.

On March 11, 2020, the World Health Organization (“WHO”) officially declared COVID-19, the disease caused by a novel coronavirus, a pandemic. Measures enacted to curtail COVID-19 by various governments have significantly impacted travel and tourism, and therefore the demand for foreign currencies. The Company has experienced a material decline in revenue as a result. While the Company continues to operate, it is not possible to reliably estimate the duration and severity of these consequences as well as their impact on the financial position and results of future periods.

Randolph Pinna, CEO of the Company, stated “Despite the many challenges that the coronavirus pandemic has presented to the business, including an unprecedented curtailment in banknote demand due to international travel restrictions, it has galvanized management to execute on its diversification strategy. We are ever-more confident in the future of Exchange Bank of Canada, as it enters the ‘scale-up’ phase in the corporate payments space. The acquisition that was completed in the third quarter was a key catalyst in this respect, and we are gaining momentum with the addition of new salespeople in the first quarter of 2021. In the U.S., we have been adding to our wholesale customer base of financial institutions throughout the entire year. They are attracted to our proprietary platform that integrates with their systems, and our multi-product offering. The market for banknotes is consolidating, and this will provide CXI with the ability to grow its revenue more quickly as activity returns. We have maintained strong liquidity throughout this period, and are well-positioned to execute our diversification strategy while also capitalizing on our already significant share of the banknote market as travel restrictions abate. I want to acknowledge the loyalty and great effort from our employees in a very challenging time.”

Corporate and Operational Highlights for 2020:

  • Management completed a new three-year, strategic plan in October that focuses on growing its payments business and expansion in banknote markets globally. The plan was developed with the objective of returning to profitability despite conservative assumptions around an eventual recovery in its core banknote business. As part of the strategy, the Company chose to permanently close 11 of its retail locations, that in conjunction with other initiatives, including a consolidation in senior management, resulted in $1.1M in charges for restructuring and impairment in the fourth quarter.
  • The Company incurred a loss provision of $1.7M in fiscal 2020 related to a customer that went bankrupt during the year. This is an unusual event as the Company has a strong repayment history with its customer base. Notwithstanding that, additional measures were implemented to reduce its credit exposure and to prevent a loss outside of the Company’s risk appetite from recurring.
  • On July 29th, the Company’s subsidiary, Exchange Bank of Canada, completed its purchase of the assets of Denarius Financial Group, a successful corporate payments business operating in the province of Quebec. EBC acquired approximately 450 new customer relationships in the transaction that added $0.3M in revenue for the year-ended October 31, 2020.
  • The Company continues to be well-capitalized with $58M in net equity at the end of the fiscal year, and $48M in net current assets, most of which is in cash. The Company has sufficient liquidity to carry out its strategic plan, and is well-positioned to capitalize on opportunities.

Financial Highlights for the Three-month Period Ended October 31, 2020 compared to the Three-month Period Ended October 31, 2019:

  • Revenue decreased 57% or $6.5 million to $4.9 million for the three-month period ended October 31, 2020, as the ongoing pandemic caused a decline in the banknotes segment of 64%, partially offset by an increase in the payments segment of 52%;
  • A net operating loss of $1.9 million in the three-month period ended October 31, 2020 compared to $0.8 million in net operating income for the three-month period ended October 31, 2019. Operating expenses declined by 29%, as cost reduction efforts mitigated a significant amount of the revenue decline. Normalizing for the adoption of IFRS 16 on November 1, 2019, the net operating loss on a comparable basis would have been $2.4 million in the three-month period ended October 31, 2020;
  • Other expenses included $1.1M in restructuring and impairment charges, and $0.7M for a loss provision related to a customer’s bankruptcy, partially offset by $0.3M in income for government grants for the three-month period ended October 31, 2020;
  • A net loss of $2.3 million in the three-month period ended October 31, 2020 compared to a net profit of $1.8 million for the three-month period ended October 31, 2019; and
  • A net loss per share of ($0.35) on a basic and fully diluted basis for the three-month period ended October 31, 2020, compared to earnings per share of $0.28 in the three-month period ended October 31, 2019.


Financial Highlights for the financial Year Ended October 31, 2020 compared to the Year Ended October 31, 2019:

  • Revenue decreased 40% or $16.8 million to $25.0 million for the year ended October 31, 2020, as demand for banknotes was significantly impacted by the steep decline in travel due to the pandemic, leading to a 45% decrease in the banknote segment, more than offsetting growth in the payments segment of 29%;
  • A net operating loss of $4.0 million in the year ended October 31, 2020 compared to $6.2 million net operating income for the year ended October 31, 2019;
  • A net loss of $8.5 million in the year ended October 31, 2020 compared to net income of $2.9 million for the year ended October 31, 2019; and
  • A net loss per share of $1.33 on a basic and fully diluted basis for the year ended October 31, 2020, compared to earnings per share of $0.46 in the year ended October 31, 2019.


As demonstrated in the table below, 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 coronavirus pandemic has significantly impacted the ability for people to travel, and therefore the three-month periods ending April 30, 2020, July 31, 2020, and October 31, 2020 are not indicative of typical seasonality.


Selected Financial Data

Three-months ending

Revenue $

Net operating income $

Net income (loss) $

Total assets $

Total equity $

Earnings (loss) per share (diluted) $

































































Conference Call

The Company plans  to  host  a  conference  call  on  January 28, 2021 at 8:30 AM (EST). To participate in or listen to the call, please dial the appropriate number:



About Currency Exchange International, Corp.

The Company is in the business of providing a range of foreign exchange technology and processing services in North America. Primary products and services include the exchange of foreign currencies, wire transfer payments, Global EFTs, 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


Contact Information

For further information please contact:
Bill Mitoulas
Investor Relations
(416) 479-9547
Email: bill.mitoulas@cxifx.com
Website: www.ceifx.com



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, the impact of COVID-19 coronavirus on factors relevant to the Company’s business, 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 the year-end period ended October 31, 2020. 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.