Currency Exchange International, Corp.
TSX : CXI
OTCBB : CURN

Currency Exchange International, Corp.

March 12, 2015 16:01 ET

Currency Exchange International Announces Financial Results for the Three Month Period Ended January 31, 2015

TORONTO, ONTARIO--(Marketwired - March 12, 2015) - 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, 2015 (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 Three-Month Period Ended January 31, 2015 compared to the Three-Month Period Ended January 31, 2014:

  • Revenues increased 26% to $5.2 million for the three months ended January 31, 2015 from $4.1 million for the three-months ended January 31, 2014;

  • Operating income increased 28% to $1.2 million for the three-months ended January 31, 2015 from $1.0 million for three-months ended January 31, 2014;

  • Net income decreased to $0.4 million for the three-months ended January 31, 2015 from $0.5 million for the three-months ended January 31, 2015. The decrease in net income was due to an increase in amortization of intangible assets of $0.2 million and an increase in income taxes of $0.1 million resulting from a one-time increase in taxes $0.2 million from the fair value increase of its investment in its wholly-owned U.S. subsidiary, Currency Exchange International America Corp.;

  • Since January 31, 2014, the Company has added 4 new branch locations bringing the total number of CXI branch locations to 32; and

  • Since January 31, 2014, the Company has added 111 new wholesale relationships representing approximately 3,454 new transacting locations, bringing the total number of transacting locations to 9,209.

The Company's revenue has grown due to the addition of the new branch locations and the 3,454 new transacting locations added during the year. Certain expenses, including salaries and benefits, rent, and expenses were higher during the period to support the expansion and revenue growth detailed above.

Selected Financial Data
Net Earnings per
operating Net Total Total share
Period Date Revenue income* income assets equity (diluted)
(unaudited) $ $ $ $ $ $
Three-months ending 31-Jan-15 5,193,869 1,242,367 353,574 38,859,547 32,456,426 0.06
Three-months ending 31-Oct-14 6,552,184 2,279,682 1,045,192 39,709,302 33,025,175 0.19
Three-months ending 31-Jul-14 6,839,330 2,830,097 1,456,004 42,044,018 32,185,439 0.26
Three-months ending 30-Apr-14 4,487,432 1,109,212 466,774 37,244,354 30,586,996 0.09
Three-months ending 31-Jan-14 4,127,007 970,779 451,156 32,844,973 29,835,415 0.08
Four-months ending 31-Oct-13 6,463,406 2,341,712 1,669,609 33,681,819 29,763,976 0.39
Three-months ending 30-Jun-13 3,799,683 1,168,754 1,466,835 19,997,719 17,607,201 0.38
Three-months ending 31-Mar-13 2,919,292 505,207 (575,087 ) 18,709,964 16,255,314 (0.15 )

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 March 13, 2015 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: 99806094

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.

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