Currency Exchange International Announces Financial Results for the Three and Six Month Periods Ended April 30, 2016
Currency Exchange International Announces Financial Results for the Three and Six Month Periods Ended April 30, 2016
June 7, 2016
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, 2016 (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, 2016 compared to the Three Month Period Ended April 30, 2015:
- Revenues increased 10% or $544,000 to $5.9 million for the three month period ended April 30, 2016 from $5.3 million for the three month period ended April 30, 2015;
- Net operating income decreased $173,000 to $1.2 million for the three month period ended April 30, 2016 from $1.3 million for three month period ended April 30, 2015;
- Net income decreased $182,000 to $480,000 for the three month period ended April 30, 2016 from $662,000 for the three month period ended April 30, 2015. The decrease in net operating income and in net income was primarily due to higher expenses for compliance, sales and developing the payments business;
- Since April 30, 2015, the Company has added 4 new branch locations and, 84 new client relationships representing over 1,400 new transacting locations. Since January 31, 2016, the Company has added 41 new client relationships representing over 352 new transacting locations; and
- During the three month period ended April 30, 2016, transactional activity between the Company and its customers increased 7% to $134,919 transactions from $126,447 for the three month period ended April 30, 2015.
Financial Highlights for the Six Month Period Ended April 30, 2016 compared to the Six Month Period Ended April 30, 2015:
- Revenues increased 9% or $922,000 to $11.4 million for the six month period ended April 30, 2015 from $10.5 million for the six month period ended April 30, 2015;
- Net operating income decreased $520,000 to $2.1 million for the six month period ended April 30, 2016 from $2.6 million for six month period ended April 30, 2015;
- Net income decreased $237,000 to $778,000 for the six month period ended April 30, 2016 from $1.0 million for the six month period ended April 30, 2015. The decrease in net operating income and in net income was primarily due to higher expenses for compliance, sales and developing the payments business; and
- During the six month period ended April 30, 2016, transactional activity between the Company and its customers increased 6% to 259,247 transactions from 243,526 for the six month period ended April 30, 2015
Selected Financial Data
|
Three- months ending |
Revenue |
Net operating income* |
Net income |
Total assets |
Total equity |
Earnings per share (diluted) |
|
|
$ |
$ |
$ |
$ |
$ |
$ |
|
30-Apr-16 |
5,854,925 |
1,160,181 |
479,540 |
57,198,857 |
49,232,843 |
0.08 |
|
31-Jan-16 |
5,572,055 |
894,364 |
298,377 |
50,546,441 |
46,940,287 |
0.05 |
|
31-Oct-15 |
6,882,336 |
2,330,425 |
505,780 |
52,241,996 |
47,436,566 |
0.08 |
|
31-Jul-15 |
6,688,467 |
2,231,642 |
2,087,038 |
50,835,334 |
46,922,010 |
0.33 |
|
30-Apr-15 |
5,311,102 |
1,333,013 |
661,818 |
49,633,902 |
44,582,384 |
0.11 |
|
31-Jan-15 |
5,193,869 |
1,242,367 |
353,574 |
38,859,547 |
32,456,426 |
0.06 |
|
31-Oct-14 |
6,552,184 |
2,279,682 |
1,045,192 |
39,709,302 |
33,025,175 |
0.19 |
|
31-Jul-14 |
6,839,330 |
2,830,097 |
1,456,004 |
42,044,018 |
32,185,439 |
0.26 |
*Excludes depreciation and amortization expense
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 8, 2016 at 2:00 PM (EST). To participate in or listen to the call, please dial the appropriate number:
- Toll Free: +1 (855) 336-7594
- Conference ID number: 26781802
The Company’s services are provided in Canada by its wholly-owned Canadian subsidiary, Currency Exchange International of Canada Corp., 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
Email: [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 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.
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
