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
---------------------------------------------------------------------
Net
Date Revenue operating Net
Period (unaudited) income income
$ $ $
---------------------------------------------------------------------
Three-months ended 30-Apr-14 4,487,432 1,109,212 466,774
---------------------------------------------------------------------
Three-months ended 31-Jan-14 4,127,007 970,779 451,156
---------------------------------------------------------------------
Four-months ended 31-Oct-13 6,463,406 2,341,712 1,669,609
---------------------------------------------------------------------
Three-months ended 30-Jun-13 3,799,683 1,168,754 1,466,835
---------------------------------------------------------------------
Three-months ended 31-Mar-13 2,919,292 505,207 (575,087)
---------------------------------------------------------------------
Three-months ended 31-Dec-12 2,808,053 376,843 80,338
---------------------------------------------------------------------
Three-months ended 30-Sep-12 3,369,548 1,503,907 1,475,426
---------------------------------------------------------------------
Three-months ended 30-Jun-12 3,152,246 738,177 208,542
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings
per
Date Total Total share
Period (unaudited) Assets equity (diluted)
$ $ $
---------------------------------------------------------------------
Three-months ended 30-Apr-14 37,244,354 30,586,996 0.09
---------------------------------------------------------------------
Three-months ended 31-Jan-14 32,844,972 29,835,415 0.08
---------------------------------------------------------------------
Four-months ended 31-Oct-13 33,681,819 29,763,976 0.39
---------------------------------------------------------------------
Three-months ended 30-Jun-13 19,997,719 17,607,201 0.38
---------------------------------------------------------------------
Three-months ended 31-Mar-13 18,709,964 16,255,314 (0.15)
---------------------------------------------------------------------
Three-months ended 31-Dec-12 19,929,308 16,734,553 0.02
---------------------------------------------------------------------
Three-months ended 30-Sep-12 18,225,628 16,226,974 0.38
---------------------------------------------------------------------
Three-months ended 30-Jun-12 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
About Currency Exchange International, Corp.
The Company is in the business of providing a range of foreign currency exchange
and related products and services in North America, including the Hawaiian
Islands. Primary products and services include the exchange of foreign
currencies, wire transfer payments, purchase and sale of foreign bank drafts and
international traveler cheques, and foreign cheque clearing. Related services
include the licensing of proprietary FX software applications delivered on its
web-based interface, www.ceifx.com ("CEIFX") and licensing retail foreign
currency operations to select companies in agreed locations.
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.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Currency Exchange International, Corp.
Bill Mitoulas
Investor Relations
(416) 479-9547
bill.mitoulas@ceifx.com
www.ceifx.com
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