TORONTO, ONTARIO -- (Marketwired) -- 09/09/15 -- Currency Exchange International, Corp. (the "Company") (TSX: CXI)(OTCBB: CURN), is pleased to announce its financial results and present management's discussion and analysis ("MD&A") for the three and nine month periods ended July 31, 2015 (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 July 31, 2015 Compared to the Three Month Period Ended July 31, 2014:
-- Net income increased to $2.1 million for the three month period ended
July 31, 2015 from $1.5 million for the three month period ended July 31
2014. The increase in net income was primarily due to a $1.0 million
decrease in current income tax expense resulting from the exercise of
176,174 employee and director stock options in June 2015, offset by
lower net operating income;
-- Net operating income decreased 21% to $2.2 million for the three month
period ended July 31, 2015 from $2.8 million for three month period
ended July 31, 2014. The decline in operating income is due to slightly
reduced revenues combined with increased operating expenditures. The
increase in operating expenditures is attributed to an increase in
staffing costs in the U.S. and Canada to support the Company's bank
application as well as increased premises costs for new locations;
-- Revenues decreased 2% to $6.7 million for the three month period ended
July 31, 2015 from $6.8 million for the three month period ended July
31, 2014. The decrease in revenue is attributable to the strengthening
U.S. dollar and its negative impact on exchange volumes. During the
three month period ended July 31, 2015, the number of transactions
between the Company and its customers increased 12% from the same period
of the previous year; however, the volume when translated into U.S.
dollars actually decreased. On a year over year basis, the U.S. dollar
has appreciated approximately 20% against the Company's most commonly
traded currencies;
-- The Company opened branches in three locations at the Orlando Eye in
Orlando, Florida, the Garden State Plaza in Paramus, New Jersey, and the
Westfield Mission Valley Mall in San Diego, California bringing the
total to 36 branch locations; and
-- Since July 31 2014, the Company has added 55 new client relationships
representing over 2,000 transacting locations, a 25% increase.
Financial Highlights for the Nine Month Period Ended July 31, 2015 Compared to the Nine Month Period Ended July 31, 2014:
-- Net income increased to $3.1 million for the nine month period ended
July 31, 2015 from $2.4 million for the nine month period ended July 31,
2014 The increase in net income was primarily due to a $1.0 million
decrease in current income tax expense resulting from the exercise of
176,174 employee and director stock options;
-- Net operating income decreased 2% to $4.8 million for the nine month
period ended July 31, 2015 from $4.9 million for nine month period ended
July 31 2014. The decline in operating income is due to increased
operating expenditures attributed to higher staffing costs in the U.S.
and Canada, increased premises costs, and increased postage and shipping
costs from increased transactional activity;
-- Revenues increased 11% to $17.2 million for the nine month period ended
July 31, 2015 from $15.4 million for the nine month period ended July 31
2014. Revenues increased for the nine month period ended July 31, 2015
due to the addition of new branch and transacting locations. The nine
month period ended July 31, 2015 includes nine months of revenue from
customer trading relationships acquired from the U.S. Exchange House
asset acquisition completed on March 28, 2014 compared to four months of
revenue for the nine months ended July 31, 2014;
-- On March 12, 2015, the Company secured additional financing by the
completion of a bought deal private placement offering by issuing
540,000 common shares at a price of $21.06 (Cdn$26.75) for aggregate
gross proceeds of $11,371,104 (Cdn$14,445,000). The Company will utilize
the proceeds to expand business opportunities in Canada and the United
States; and
-- The Company opened branches in six locations at Union Square in New
York, New York, in the Upper East Side in New York, New York, the
Sunvalley Shopping Center in Concord, California, the Orlando Eye in
Orlando, Florida, the Garden State Plaza in Paramus, New Jersey and the
Westfield Mission Valley Mall in San Diego, California, bringing the
total to 36 branch locations.
Selected Financial Data
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Net operating
Period Date Revenue income(i)
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(unaudited) $ $
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Three-months ending 31-Jul-15 6,688,467 2,231,642
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Three-months ending 30-Apr-15 5,311,102 1,333,013
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Three-months ending 31-Jan-15 5,193,869 1,242,367
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Three-months ending 31-Oct-14 6,552,184 2,279,682
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Three-months ending 31-Jul-14 6,839,330 2,830,097
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Three-months ending 30-Apr-14 4,487,432 1,109,212
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Three-months ending 31-Jan-14 4,127,007 970,779
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Four-months ending 31-Oct-13 6,463,406 2,341,712
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Earnings
per share
Period Net income Total assets Total equity (diluted)
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(unaudited) $ $ $ $
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Three-months ending 2,087,038 50,835,334 46,922,010 0.33
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Three-months ending 661,818 49,633,902 44,582,384 0.11
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Three-months ending 353,574 38,859,547 32,456,426 0.06
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Three-months ending 1,045,192 39,709,302 33,025,175 0.19
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Three-months ending 1,456,004 42,044,018 32,185,439 0.26
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Three-months ending 466,774 37,244,354 30,586,996 0.09
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Three-months ending 451,156 32,844,973 29,835,415 0.08
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Four-months ending 1,669,609 33,681,819 29,763,976 0.39
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(i)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 September 10, 2015 at 3:00 PM (EST). To participate in or listen to the call, please dial the appropriate number:
-- Toll Free: +1 (855) 336-7594 -- Conference ID number: 24074502
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 Canadian subsidiary, Currency Exchange International of Canada Corp., 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 Year Ended October 31, 2014. 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.
Contacts:
Currency Exchange International, Corp.
Bill Mitoulas
Investor Relations
(416) 479-9547
bill.mitoulas@ceifx.com
www.ceifx.com
