Friday, January 6, 2017
January 6, 2017
Toronto, Canada - Currency Exchange International, Corp. (TSX:CXI) (OTCBB:CURN), announces that, following discussions with its independent auditors, the Company anticipates that on or about January 10, 2017 (after market close), it will file audited consolidated financial statements and management discussion and analysis for the twelve months ended October 31, 2016, which will include restated comparative figures for the twelve months ended October 31, 2015 as well as an opening restated balance sheet as at November 1, 2014.
The restatement is being made to correct the presentation of gains on foreign exchange (along with the corresponding income tax impact) which were required to be presented under International Financial Reporting Standards (“IFRS”) as other income. The foreign exchange gain was previously included in the consolidated financial statements within other comprehensive income (“OCI”) as part of exchange differences on translating foreign operations. In addition, the gains on foreign exchange presented in the 2015 and 2014 audited financial statements under OCI did not provide for a corresponding tax provision, which is now included in the restated amounts.
The restatement does not impact the Company’s revenues, operating expenses, net operating income or other operating income performance measures on a before tax basis. The restatement reduces equity by $0.7 million (on a cumulative basis) and increases net income and earnings per share in both 2015 and 2014 as summarized in the following table (unaudited):
CURRENCY EXCHANGE INTERNATIONAL, CORP.
Restatement for years ended October 31 (unaudited) - USD $ millions
|originally reported||change||restated||originally reported||change||restated|
|Total assets||$ 52.2||$ (0.1)||$ 52.1||$ 39.7||$ -||$ 39.7|
|Total liabilities and equity||$ 52.2||$ (0.1)||$ 52.1||$ 39.7||$ -||$ 39.7|
|Other income - gain on foreign exchange||(0.3)||1.5||1.2||(0.2)||1.1||0.9|
|Income before income taxes||5.5||1.5||7.0||6.0||1.1||7.1|
|Income tax expense||1.9||0.4||2.3||2.6||0.3||2.9|
|Net income||$ 3.6||$ 1.1||$ 4.7||$ 3.4||$ 0.8||$ 4.2|
|Exchange differences on translating foreign operations||(1.7)||(1.4)||(3.1)||(0.8)||(1.1)||(1.9)|
|Total other comprehensive income||$ 1.9||$ (0.3)||$ 1.6||$ 2.6||$ (0.3)||$ 2.3|
|Earnings Per Share|
|basic||$ 0.62||$ 0.18||$ 0.80||$ 0.63||$ 0.15||$ 0.78|
|diluted||$ 0.59||$ 0.18||$ 0.77||$ 0.62||$ 0.15||$ 0.77|
President and CEO, Randolph Pinna and Chief Financial Officer, Peter Scherer will host a conference call on Wednesday January 11, 2017 at 3:00pm (EST). Following an overview of the financial performance, a question and answer period will take place. To participate or listen to the call, the U.S. and Canadian toll-free number is +1 (855) 336-7594 and the access code is 48635282.
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 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 , and licensing retail foreign currency operations to select companies in agreed locations.
CXI’s wholly-owned Canadian subsidiary, Exchange Bank of Canada, based in Toronto, Canada, provides these services in Canada, through the use of its proprietary software.
For further information please contact:
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, and the regulatory approval process for a new Canadian Schedule I bank, 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, 2015. 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.