TORONTO, ONTARIO--(Marketwired - March 11, 2014) - 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 month period ended January 31, 2014 (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.
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 as the three months ended January 31, 2014 compared to the three months ended December 31, 2012.
Financial Highlights for the Three-Month Period Ended January 31, 2014 Compared to the Three-Month Period Ended December 31, 2012:
- Revenues increased 47% to $4,127,000 for the three months ended January 31, 2013 from $2,808,000 million for the three-months ended December 31, 2012;
- Net operating income increased 186% to $883,000 for the three-months ended January 31, 2013 from $308,000 for three-months ended December 31, 2012;
- Net income increased to $451,000 for the three-months ended January 31, 2014 from $80,000 for the three-months ended December 31, 2012. The increase in net income was due primarily to a $575,000 increase in net operating income;
- The Company added two new retail branch locations in Florida and Virginia; and
- As of January 31, 2014, the Company has added 115 new clients representing approximately 3,100 locations since December 31, 2012.
The Company's total revenue for the three month period ended January 31, 2014 was $4,127,000 compared to $2,808,000 for the three month period ended December 31, 2012. Revenues increased as result of increases in same store sales at branch locations as well as the addition of several wholesale relationships since December 31, 2012. 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 Currency Exchange International of Canada Corp. and the Company's branch and client network.
Selected Financial Data
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.
The Company plans to host a conference call on March 11, 2014 at 3:00 PM (EST). To participate in or listen to the call, please dial the appropriate number:
||+1 (855) 336-7594
|Conference ID number:
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.