Nine Months Ended June 30, 2012
Currency Exchange Reports Three and Nine Months Financial Results
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
August 7, 2012
Toronto, Ontario – Currency Exchange International, Corp. (the “Company”), is pleased to announce its financial results and management’s discussion and analysis (“MD&A”) for the three and nine months ended June 30, 2012 (all figures are in U.S. dollars except where otherwise indicated). The complete and detailed financial statements and MD&A can be found on the Company’s SEDAR profile at www.sedar.com.
Financial Highlights for the Three Months Ended June 30, 2012:
• Revenue increased to $3,152,246 up 25% compared to $2,521,236 for the three months ended June 30, 2011
• Operating income decreased to $700,837, down 32% compared to $1,029,635 for the three months ended June 30, 2011
• Net income after tax decreased to $208,542, down 66% compared to $622,490 for the three months ended June 30, 2011
The Company’s total revenue for the three month period ended June 30, 2012 was $3,152,246 compared to
$2,521,236 for the three months ended June 30, 2011. The commissions from trading increased to
$2,841,834 and the fee income increased to $310,412, as compared to $2,284,311 and $236,925, respectively, for the three months ended June 30, 2011. The increase in trading commissions can be attributed to retaining new financial institution customers and the addition of five new retail stores during the period. Additional revenue was generated from increased trading volumes of exotic currencies. Such trades, which were executed at higher margins, have recently seen reduced demand. The increase in fee income reflects the addition of new retail and wholesale customers. Fee income generally exhibits growth that correlates to the Company’s increase in its customer base.
Financial Highlights for the Nine Months Ended June 30, 2012:
• Revenue increased to $8,944,925, up 57% compared to $5,695,121 for the nine months ended June 30, 2011
• Operating income increased to $2,174,460, up 29% compared to $1,690,265 for the nine months ended June 30, 2011
• Net income after tax increased to $1,242,225, up 23% compared to $1,010,931 for the nine months ended June 30, 2011
The Company’s total revenue for the nine month period ended June 30, 2012 was $8,944,925 compared to
$5,695,121 for the nine months ended June 30, 2011. The commissions from trading increased to
$8,097,035 and the fee income increased to $847,890, as compared to $5,104,197 and $590,924, respectively, for the nine months ended June 30, 2011. The increase in trading commissions can be attributed to retaining new financial institution customers and the addition of five new retail stores during the period. Additional revenue was generated from increased trading volumes of exotic currencies. Such trades, which were executed at higher margins, have recently seen reduced demand. The increase in fee income reflects the addition of new retail and wholesale customers. Fee income generally exhibits growth that correlates to the Company’s increase in its customer base.
Initial Public Offering
On March 9, 2012, the Company completed its initial public offering ("IPO") on the Toronto Stock Exchange ("TSX") by issuing 1,380,000 units at a price of Cdn$6.65 per unit for aggregate proceeds of Cdn$9,177,000. Each Unit is comprised of one common share in the capital stock of the Company (“Common Share”) and one Common Share Purchase Warrant (“Warrant”). Each Warrant entitles the holder thereof to purchase one additional Common Share at a price of CDN$7.50 per Common Share at any time on or before 5:00 p.m. (Toronto time) on September 9, 2013. The Common Shares and the Warrants trade on the TSX under the symbols “CXI.S” and “CXI.WT.S”, respectively. Funds received were used to finance foreign exchange inventories for wholesale and retail growth opportunities as well as debt reduction.
New Director Appointed
Currency Exchange International is pleased to announce that Mr. Chirag J. Bhavsar has been appointed as a director subject to regulatory approval. Mr. Bhavsar is the Executive Vice President and Chief Financial Officer of CNLBank. Formerly, Mr. Bhavsar was founding member of Florida Choice Bank where he served as the Executive Vice President, Chief Operating Officer and Chief Financial Officer. From 1992 to 1999, Mr. Bhavsar served as a Senior Audit Manager for Hacker Johnson Cohen and Grieb. He is currently a director or treasurer of several community service organizations including Family Services of Metro Orlando, Church Street Investment Properties, Florida Banker's Association, Christian Service Center, and Fellowship of Christian Athletes
Mr. Randolph W. Pinna, Chairman, President, Chief Executive Officer and director of Currency Exchange International stated, “We welcome Chirag to the board of directors of Currency Exchange. Chirag has significant operational experience which will be valuable as we grow our business. Chirag also possesses extensive banking and finance knowledge to assist the operation of the Company.”
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 traveler cheques, and foreign cheque clearing. Related products and 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 services are provided in Canada by its wholly owned subsidiary based in Toronto, Canada through the use of its proprietary software www.ceifx.ca.
Contact Information
For further information please contact: Randolph W. Pinna
President, Chief Executive Officer & Director 407.240.0224
E-mail: [email protected] Website: www.ceifx.com
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This press release includes forward-looking statements within the meaning of applicable securities laws. Forward- looking statements relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to preliminary results, guidance, strategies, expectations, planned operations or future actions. Forward-looking statements are identified by the use of terms and phrases such as "preliminary", "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on assumptions, including those described herein and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, the Company’s limited operating history, future capital needs and uncertainty of additional financing, the competitive nature of the industry, currency exchange risks, the need for the Company to manage its planned growth and expansion, the effects of product development and need for continued technology change, protection of proprietary rights, the effect of government regulation and compliance on the Company and the industry, network security risks, the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel, reliance on key personnel, global economic and financial market deterioration impacting tourism and impeding access to capital or increasing the cost of capital, volatile securities markets impacting security pricing unrelated to operating performance, the ability to enforce judgements against a foreign corporation and its management and completion of the proposed IPO, as well as the factors identified throughout this news release and those identified in section entitled “Risks and Uncertainties” of the Company’s MD&A for the quarter ended June 30, 2012. The forward-looking statements contained in this news release represent the Company’s expectations as of the date of this news release (or as of the date they are otherwise stated to be made), and are subject to change after such date. However, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
