Currency Exchange International, Corp. (the “Group” or “CXI”) (TSX:
CXI; OTCBB: CURN), today reported its financial results and
Management’s Discussion and Analysis (“MD&A”) for the three and
nine-month periods ended July 31, 2024 (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.sedarplus.ca.
Randolph Pinna, CEO of the Group, stated, “CXI
group delivered revenue growth over the prior period keeping our
balance sheet strong while managing expenses. CXI’s business is
very strong in the USA as its model is diverse with both its
wholesale and direct-to-consumer customers. CXI remains committed
to executing against our strategy of profitable growth while
maintaining adequate capital levels. The management team and I are
confident in our ability to continue to grow and become a global
leader in the supply of foreign currency and payment services.”
Financial Highlights for the
three-months ended July 31, 2024 compared to the three-months ended
July 31, 2023:
- Revenue increased
by 2% or $0.4 million to $24.0 million compared to $23.6 million.
Payments revenue grew 5% or $0.2 million over the prior period and
Banknotes revenue grew by 1% or $0.2 million;
- Net operating
income increased by 5% or $0.3 million to $6.7 million from $6.4
million;
- Net income
decreased by 3% or $0.1 million to $3.9 million from $4.0
million;
- Earnings per share
were $0.61 and $0.59 on a basic and fully diluted basis,
respectively, compared to reported earnings per share of $0.63 and
$0.60, respectively; and
- The Group had
strong liquidity and capital positions of $74.9 million in net
working capital and $83.1 million in total equity as at July 31,
2024.
Financial Highlights for the nine-months ended July 31,
2024 compared to the nine-months ended July 31, 2023:
- Revenue increased
by 5% or $3.0 million to $62.2 million compared to $59.2 million.
Banknotes revenue grew 4% or $2.0 million over the prior period and
Payments revenue grew by 9% or $1.0 million;
- Net operating
income decreased by 1% or $0.1 million to $12.8 million from $12.9
million;
- Reported net income
declined by 33% or $2.6 million to $5.3 million from $7.9 million
primarily related to the deferred tax expense recorded in the
second quarter;
- Reported earnings
per share was $0.84 on a basic basis and $0.80 on a fully diluted
basis (adjusted earnings per share1 was $1.06 and $1.02 on a basic
and a fully diluted basis, respectively) compared to reported
earnings per share of $1.23 and $1.18, respectively; and
- Cash flows from
operating activities, excluding the changes in working capital
amounted to $13.9 million compared to $13.6 million.
________________________1 This is a non-GAAP measure. For
further information, refer to the non-GAAP financial metrics and
measures section on page 3 of this document
Corporate Highlights for the three-months ended July 31,
2024:
- The Group continued
to grow its Payments product line benefiting from the recent
investments in core banking platform integration which enabled the
Company to expand its reach and increase its volumes in the United
States
- The Company
maintained its strong volumes in the Banknotes product line as a
result of the strong consumer demand for foreign currencies in the
third quarter as international travel continued to strengthen in
the United States. This is supported by the increased rate of
travelers passing through TSA check points in United States
airports;
- The financial
institutions sector in the United States continued to grow with the
addition of 98 new clients, representing 123 transacting
locations;
- The Group continued
expanding its OnlineFX platform, adding Maryland and Iowa to its
network. The platform now provides its services in 43 states and
the District of Columbia; and
- The Payments
product line processed 39,779 payments transactions, representing
$3.38 billion in volume compared to 32,675 transactions and $2.57
billion in volume in the prior period.
Selected Financial Data
The following table summarizes the performance
of the Group over the last eight fiscal quarters2:
Three-monthperiod ended |
Revenue |
Net operatingincome |
Net income |
Total assets |
Total equity |
Earnings pershare (diluted) |
|
$ |
$ |
$ |
$ |
$ |
$ |
7/31/2024 |
23,993,252 |
6,747,390 |
3,935,350 |
163,224,374 |
83,103,393 |
0.59 |
4/30/2024 |
20,095,168 |
3,818,275 |
506,522 |
159,910,390 |
79,940,478 |
0.08 |
1/31/2024 |
18,106,918 |
2,247,267 |
849,874 |
133,780,438 |
80,520,993 |
0.13 |
10/31/2023 |
22,786,072 |
5,818,667 |
2,303,822 |
132,049,444 |
79,232,981 |
0.34 |
7/31/2023 |
23,587,589 |
6,438,354 |
4,056,478 |
129,643,409 |
77,590,126 |
0.60 |
4/30/2023 |
18,694,919 |
3,743,069 |
2,243,708 |
134,697,253 |
73,104,851 |
0.33 |
1/31/2023 |
16,886,189 |
2,734,159 |
1,589,499 |
133,072,968 |
71,448,732 |
0.24 |
10/31/2022 |
19,800,463 |
5,401,678 |
4,383,876 |
125,528,832 |
69,305,509 |
0.66 |
________________________2 Certain historical numbers in this
table have been restated to conform with the numbers presented in
the current period’s financial statements
Earnings Conference Call Details
The Company plans to host a conference call on
Thursday, September 12, 2024, at 8:30 AM
EST.
To participate in or listen to the call, please
dial the appropriate number:
Toll Free - North America: (+1) 800 717
1738
Conference ID Number: 53171
About Currency Exchange International,
Corp.
Currency Exchange International is in the
business of providing comprehensive foreign exchange technology and
processing services for banks, credit unions, businesses, and
consumers in the United States and select clients globally. Primary
products and services include the exchange of foreign currencies,
wire transfer payments, Global EFTs, and foreign cheque clearing.
Wholesale customers are served through its proprietary FX software
applications delivered on its web-based interface, www.cxifx.com
(“CXIFX”), its related APIs with core banking
platforms, and through personal relationship managers. Consumers
are served through Group-owned retail branches, agent retail
branches, and its e-commerce platform, order.ceifx.com
(“OnlineFX”).
The Group’s wholly-owned Canadian subsidiary,
Exchange Bank of Canada, based in Toronto, Canada, provides foreign
exchange and international payment services in Canada and select
international foreign jurisdictions. Customers are served through
the use of its proprietary software, www.ebcfx.com
(“EBCFX”), related APIs to core banking platforms,
and personal relationship managers.
Contact Information
For further information please contact: Bill
MitoulasInvestor Relations(416) 479-9547Email:
bill.mitoulas@cxifx.comWebsite: www.cxifx.com
NON-GAAP FINANCIAL METRICS AND
MEASURES
The Company measures and evaluates its
performance in this document using a number of financial metrics
and measures, such as adjusted net income, which do not have
standardized meanings under generally accepted accounting
principles (GAAP) and may not be comparable to other companies. The
Company’s management believes that these measures are more
reflective of its operating results and provide the readers of this
document with a better understanding of management’s perspective on
the performance. These measures enhance the comparability of our
financial performance for the current period with the corresponding
period in the prior year.
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, 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, the impact of COVID-19 or the evolving situation in
Ukraine on factors relevant to the Company’s business, 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 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 the three and nine-month periods ended July 31, 2024
and 2023. 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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