First Quarter 2012 Financials Released
Currency Exchange Reports First Quarter 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.
February 29, 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 months ended December 31, 2011 (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 Quarter Ended December 31, 2011:
- Revenue was $2,715,986, up 90% compared to $1,429,866 for the quarter ended December 31, 2010 (“Q1 2011”)
- Operating income was $831,386, up 298% compared to $208,681 for Q1 2011
- Net income was $536,446 or $0.22 per share compared to $120,494 or $0.06 per share for Q1 2011
The Company’s total revenue for the three month period ended December 31, 2011 was $2,715,986 compared to $1,429,866 for Q1 2011. The commissions from trading increased to $2,444,193 and the fee income increased to $271,793, as compared to $1,248,518 and $181,348, respectively, for Q1 2011. The increase in trading commissions can be attributed to retaining new financial institution customers and the addition of four new retail stores during the period. Additional revenue was generated from increased trading volumes of exotic currencies that are executed at higher margins. For instance, the Company has noted increased purchases of Iraqi Dinars, apparently as small scale currency speculation, which activity is a source of high margin currency trades. 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.
Outlook
On February 16, 2012, the Company obtained a receipt for its final long-form prospectus dated February 15, 2012 (the “Prospectus”) from the securities regulatory authorities in the Provinces of British Columbia, Alberta, and Ontario in respect of an initial public offering (“IPO”) of units. Upon successful completion of the proposed IPO, the Company anticipates it will raise aggregate gross of proceeds of up to CDN$9,177,000 and list its common shares and common share purchase warrants on the Toronto Stock Exchange. Pursuant to the completion of the proposed IPO, the Company has positioned itself to continue the expansion of its business, fund capital expenditure projects and increase its public awareness. A copy of the Prospectus is available on the Company’s SEDAR profile at www.sedar.com.
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.
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 December 31, 2011. 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.
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
