Currency Exchange International Announces Financial Results for the Three and Six Month Periods Ended April 30, 2014
Currency Exchange International Announces Financial Results for the Three and Six Month Periods Ended April 30, 2014
June ?4, 2014
Toronto, Canada – Currency Exchange International, Corp. (the “Company”) (TSX:CXI; OTCBB:CURN), is pleased to announce its financial results and present the management's discussion and analysis ("MD&A") for the three and six month periods ended April 30, 2014 (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, 2014 Compared to the Three Month Period Ended March 31, 2013:
- Revenues increased 54% to $4,487,000 for the three month period ended April 30, 2014 from $2,919,000 million for the three month period ended March 31, 2013;
- Net operating income increased 120% to $1,109,000 for the three month period ended April 30, 2014 from $505,000 for three month period ended March 31, 2013;
- Net income increased to $467,000 for the three month period ended April 30, 2014 from a loss of $575,000 for the three month period ended March 31, 2013. The increase in net income was primarily due to a $604,000 increase in net operating income and a reduction in the fair value change in the Company’s warrant liability from a loss of
- $639,000 for the three months ended March 31, 2013 to $Nil in the current period;
- The Company completed the purchase of certain assets of U.S. Exchange House, Inc. (“USEH”) pertaining to bank note operations in the United States and Canada; and
- At April 30, 2014, the Company has added 156 new clients representing over 3,200 locations since March 31, 2013.
The Company's total revenues for the three month period ended April 30, 2014 was $4,487,000 compared to $2,919,000 for the three month period ended March 31, 2013. Revenues increased as result of increases in same store sales at branch locations as well as the addition of several wholesale relationships since March 31, 2013. Certain expenses, including salaries and benefits, stock based compensation, rent, and other general and administrative expenses were higher during the period to support the expansion of its wholly-owned subsidiary, Currency Exchange International of Canada Corp. (“CXIC”) and the Company's branch and client network.
Financial Highlights for the Six Month Period Ended April 30, 2014 Compared to the Six Month Period Ended March 31, 2013:
- Revenues increased 50% to $8,614,000 for the six month period ended April 30, 2014 from $5,727,000 million for the six month period ended March 31, 2013;
- Net operating income increased 136% to $2,080,000 for the six month period ended April 30, 2014 from $882,000 for six month period ended March 31, 2013;
- Net income increased to $918,000 for the six month period ended April 30, 2014 from a loss of $495,000 for the six month period ended March 31, 2013. The increase in net income was primarily due to a $1,198,000 increase in net operating income and a decrease in the fair value change in the Company’s warrant liability from a loss of
- $636,000 for the six months ended March 31, 2013 to $Nil in the current period; and
- The Company completed the purchase of certain assets of USEH pertaining to bank note operations in the United States and Canada.
Change in Reporting Period
Effective February 2013, Currency Exchange International, Corp. changed its fiscal year end to October 31, 2013 to conform with the same change in fiscal year end made by its wholly owned subsidiary corporation, Currency Exchange International of Canada Corp. (“CXIC”) to comply with the reporting period for Canadian chartered banks as part of the ongoing process of CXIC applying for a bank license in Canada. As a result, the condensed interim consolidated financial statements and the MD&A are presented for the three and six month period ended April 30, 2014 compared to the three and six month period ended March 31, 2013.
Selected Financial Data
|
Period (unaudited) |
Date |
Revenue |
Net operating income |
Net income |
Total Assets |
Total equity |
Earnings per share (diluted) |
|
|
|
$ |
$ |
$ |
$ |
$ |
$ |
|
Three-months ended |
30-Apr-14 |
4,487,432 |
1,109,212 |
466,774 |
37,244,354 |
30,586,996 |
0.09 |
|
Three-months ended |
31-Jan-14 |
4,127,007 |
970,779 |
451,156 |
32,844,972 |
29,835,415 |
0.08 |
|
Four-months ended |
31-Oct-13 |
6,463,406 |
2,341,712 |
1,669,609 |
33,681,819 |
29,763,976 |
0.39 |
|
Three-months ended |
30-Jun-13 |
3,799,683 |
1,168,754 |
1,466,835 |
19,997,719 |
17,607,201 |
0.38 |
|
Three-months ended |
31-Mar-13 |
2,919,292 |
505,207 |
(575,087) |
18,709,964 |
16,255,314 |
(0.15) |
|
Three-months ended |
31-Dec-12 |
2,808,053 |
376,843 |
80,338 |
19,929,308 |
16,734,553 |
0.02 |
|
Three-months ended |
30-Sep-12 |
3,369,548 |
1,503,907 |
1,475,426 |
18,225,628 |
16,226,974 |
0.38 |
|
Three-months ended |
30-Jun-12 |
3,152,246 |
738,177 |
208,542 |
17,275,581 |
14,711,060 |
0.05 |
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.
Conference Call
The Company plans to host a conference call on June 5, 2014 at 10:00 AM (EST). To participate in or listen to the call, please dial the appropriate number:
Toll Free: +1 (855) 336-7594
Conference ID number: 48820433
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: Bill Mitoulas
Investor Relations (416) 479-9547
E-mail: [email protected] Website: www.ceifx.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, 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 Thirteen Month Period Ended October 31, 2013. 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.
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations, and travelers. Products and services for international travelers include access to buy and sell more than 80 foreign currencies, gold bullion coins and bars. For financial institutions, our services include the exchange of foreign currencies, international wire transfers, purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software www.ceifx.com
