Currency Exchange International Releases Third Quarter Financials
Currency Exchange International Announces Quarterly Financial Results
August 6, 2013
Toronto, Canada – Currency Exchange International, Corp. (the “Company”) (TSX:CXI; CXI.WT.S, OTCBB:CURN), is pleased to announce its financial results and present the management's discussion and analysis ("MD&A") for the three and nine month periods ended June 30, 2013 (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 Month Period Ended June 30, 2013:
- Revenues increased 21% to $3.8 million in 2013 from $3.2 million for the same period in 2013;
- Operating income increased 62% to $1.1 million from $0.7 million for the same quarter in the previous year;
- Net income increased to $1.5 million for the third quarter of 2013 from $0.2 million for the same period in 2012. The increase in net income was due primarily to a $0.8 million gain on the fair value change in warrant liability and a $0.4 million increase in operating income. The Company’s warrants are expected to be exercised or expire by September 8, 2013. Either the exercise or expiration of the warrants will result in an additional $0.3 million gain on the fair value change in warrant liability; and
- The Company added 47 new clients representing approximately 2,200 locations.
The Company's total revenue for the three month period ended June 30, 2013 was $3.8 million compared to $3.2 million for the three month period ended June 30, 2012. Revenues increased over 33% in Canada compared to the same period of the previous year while revenues generated in the United States increased by nearly 20%. Certain expenses, including salaries and benefits, stock based compensation and rent were higher during the period to support the expansion of Currency Exchange International of Canada Corp. and the Company's branch and client network.
Financial Highlights for the Nine Month Period Ended June 30, 2013
- Revenues increased 7% to $9.5 million in 2013 from $8.9 million for the same period in 2012;
- Operating income decreased 15% to $1.8 million from $2.2 million due primarily as a result of additional expenses from investments in Currency Exchange International of Canada Corp, additional stock based compensation. and the opening of additional branch locations compared to the same period in the previous year;
- The Company added 88 new clients representing approximately 2,400 locations; and
- The Company added two new retail stores in Seattle, Washington and Ft. Lauderdale, Florida.
The Company's revenue for the nine month period ended June 30, 2013 was $9.5 million compared to $8.9 million for the nine months ended June 30, 2012, an increase of 7%. Revenues increased over 133% in Canada compared to the same period of the previous year while revenues generated in the United States remained relatively constant. Certain expenses, including salaries and benefits, rent, and stock based compensation were higher during the period to support the expansion of Currency Exchange International of Canada Corp. and the Company's branch and client network.
Selected Financial Data
|
For the three months ended (unaudited) |
Revenue |
Operating income |
Net income |
Total Assets |
Total equity |
Return on assets |
Return on equity |
|
|
$ |
$ |
$ |
$ |
$ |
% |
% |
|
June 30, 2013 |
3,799,683 |
1,094,456 |
1,466,835 |
19,997,719 |
17,607,201 |
7.3% |
8.3% |
|
March 31, 2013 |
2,919,292 |
435,357 |
(575,087) |
18,709,964 |
16,255,314 |
-3.1% |
-3.5% |
|
December 31, 2012 |
2,808,053 |
308,233 |
80,338 |
19,929,308 |
16,734,553 |
0.4% |
0.5% |
|
September 30, 2012 |
3,369,548 |
1,423,083 |
1,475,426 |
18,225,628 |
16,226,974 |
8.1% |
9.1% |
|
June 30, 2012 |
3,152,246 |
676,915 |
208,542 |
17,275,581 |
14,711,060 |
1.2% |
1.4% |
|
March 31, 2012 |
3,076,693 |
631,705 |
497,415 |
16,829,379 |
14,478,596 |
3.0% |
3.4% |
|
December 31, 2011 |
2,715,986 |
831,209 |
536,269 |
10,391,386 |
6,695,607 |
5.2% |
8.0% |
|
September 30, 2011 |
2,988,585 |
1,106,515 |
483,399 |
9,914,292 |
6,159,338 |
4.9% |
7.9% |
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 August 6, 2013 at 4:15 PM (EST). To participate in or listen to the call, please dial the appropriate number:
|
Toll Free: |
+1 (855) 336-7594 |
|
Conference ID number: |
27514805 |
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
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 “Risk Factors” of the Company’s Management’s Discussion and Analysis for the year ended September 30, 2012. 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
