Currency Exchange International Announces Financial Results for the Three and Nine Month Periods Ended July 31, 2014

TORONTO, ONTARIO--(Marketwired - Sept. 9, 2014) - Currency Exchange International, Corp. (the "Company") (TSX:CXI)(OTCBB:CURN), is pleased to announce its financial results and present its management's discussion and analysis ("MD&A") for the three and nine month periods ended July 31, 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 July 31, 2014 Compared to the Three Month Period Ended June 30, 2013:

• Revenues increased 80% to $6.8 million for the three month period ended July 31, 2014 from $3.8 million for the three month period ended June 30, 2013;
  
  
• Net operating income increased 142% to $2.8 million for the three month period ended July 31, 2014 from $1.2 million for the three month period ended June 30, 2013;
  
  
• Net income remained the same at $1.5 million for the three month periods ended July 31, 2014 and June 30, 2013. Net income for the three month period ended June 30, 2013 included a one-time $816,000 non-cash gain ($Nil in the three month period ended July 31, 2014) on the increase in fair value of the Company's warrant liability. Excluding the one-time gain in the comparative period, net income would have increased $805,000 or 124% (the warrants were either exercised or expired on September 8, 2013); and
  
  
• Since June 30, 2013, the Company added six branch locations and 124 new wholesale relationships representing approximately 3,200 locations.
  
  

The Company's total revenues for the three month period ended July 31, 2014 were $6.8 million compared to $3.8 million for the three month period ended June 30, 2013. The Company added six company owned branches and 124 new wholesale relationships representing over 3,200 locations since June 30, 2013. The most recently completed three month financial period ended July 31, 2014 also includes a full financial quarter of revenue derived from customer trading relationships acquired from U.S. Exchange House, Inc. ("USEH"). 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 Nine Month Period Ended July 31, 2014 Compared to the Nine Month Period Ended June 30, 2013:

• Revenues increased 62% to $15.5 million for the nine month period ended July 31, 2014 from $9.5 million for the nine month period ended June 30, 2013;
  
  
• Net operating income increased 139% to $4.9 million for the nine month period ended July 31, 2014 from $2.1 million for the nine month period ended June 30, 2013;
  
  
• Net income increased 144% to $2.4 million for the nine month period ended July 31, 2014 from $972,000 for the nine month period ended June 30, 2013. The increase in net income was primarily due to a $2.9 million increase in net operating income offset by $900,000 increase in income taxes and $400,000 increase in depreciation and amortization; and
  
  
• The Company completed the purchase of certain assets of USEH in the United States and Canada.
  
  

Change in Reporting Period

Effective February 2013, the Company changed its fiscal year end to October 31st to conform to the same change in fiscal year end made by its wholly-owned subsidiary corporation, 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 nine month periods ended July 31, 2014 compared to the three and nine month periods ended June 30, 2013.

Selected Financial Data

Period	Date		Revenue		Net operating income		Net income			Total assets		Total equity		Earnings per share (diluted)
(unaudited)			$		$		$			$		$		$
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	)
Three-months ending	31-Dec-12		2,808,053		376,843		80,338			19,929,308		16,734,553		0.02
Three-months ending	30-Sep-12		3,369,548		1,503,907		1,475,426			18,225,628		16,226,974		0.38

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, 2014 at 2:00 PM (EST). To participate in or listen to the call, please dial the appropriate number:

Toll Free: +1 (855) 336-7594

Conference ID number: 86976642

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, CXIC, 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.