Six Months Ended March 31, 2012
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Currency Exchange Reports Six Months Financial Results
May 7, 2012
Toronto, Ontario – Currency Exchange International, Corp. (TSX: CXI.S; CXI,WT.S) (the “Company”), is pleased to announce its financial results and management’s discussion and analysis (“MD&A”) for the six months ended March 31, 2012 (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 Six Months Ended March 31, 2012:
Revenue increased to $5,792,679, up 83% compared to $3,173,885 for the six months ended March 31, 2011
Operating income increased to $1,462,914, up 121% compared to $660,630 for the six months ended March 31, 2011
Net income after tax increased to $1,033,683 or $0.39 per share compared to $388,441 or $0.18 per share for the six months ended March 31, 2011
The Company’s total revenue for the six month period ended March 31, 2012 was $5,792,679 compared to
$3,173,885 for the six months ended March 31, 2011. The commissions from trading increased to
$5,255,201 and the fee income increased to $537,478, as compared to $2,819,886 and $353,999, respectively, for the six months ended March 31, 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.
Initial Public Offering
On March 9, 2012, the Company completed its initial public offering ("IPO") on the Toronto Stock Exchange ("TSX") by issuing 1,380,000 units at a price of Cdn$6.65 per unit for aggregate proceeds of Cdn$9,177,000. Each Unit is comprised of one common share in the capital stock of the Company (“Common Share”) and one Common Share Purchase Warrant (“Warrant”). Each Warrant entitles the holder thereof to purchase one additional Common Share at a price of CDN$7.50 per Common Share at any time on or before 5:00 p.m. (Toronto time) on September 9, 2013. The Common Shares and the Warrants trade on the TSX under the symbols “CXI.S” and “CXI.WT.S”, respectively. Funds received were used to finance foreign exchange inventories for wholesale and retail growth opportunities as well as debt reduction.
New Director Appointed
The Company is pleased to announce that Mr. V. James Sardo has been appointed as a director subject to regulatory approval. Mr. Sardo fills a vacancy in the board of directors arising from the resignation of D. Thomas Coletta. The board of directors thanks Mr. Coletta for his service and dedication during the recent initial public offering.
Mr. Sardo is the Chairman and a director of Capstone Infrastructure Corporation and a director of New Flyer Industries Inc. Previous directorships include: Consolidated Thompson Iron Ore Mines Limited, Hydrogenics Corporation, Countryside Power Income Fund, UE Waterheater Income Fund, Custom Direct Income Fund, SonnenEnergy Corp and Northstar Healthcare Inc. From 2004 to 2005, Mr. Sardo served as interim Chief Executive Officer and a Director of Royal Group Technologies. He was formerly President, Canadian Operations of Moore Corporation Limited, President and Chief Executive Officer of SMK Speedy International Inc., Chief Executive Officer of SNE Corporation and CEO and Director of Amre Inc. He is also the former Chairman and Chief Executive Officer of Firestone Canada Inc. and the President of Firestone Industrial Products Company. He is a member of the Institute of Corporate Directors and holds the ICD.D designation.
Mr. Randolph W. Pinna, Chairman, President, Chief Executive Officer and director of Currency Exchange International stated, “We welcome Jim to the board of directors of the Company. Jim has significant operational experience which will be valuable as we grow our business. Jim also possesses extensive public company and corporate governance knowledge to assist the operation of the board of directors.”
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
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 judgments against a foreign corporation; 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 filed on www.sedar.com. 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
