TORONTO, June 12, 2024 (GLOBE NEWSWIRE) -- 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 six-months ended April 30, 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 delivered revenue growth over the prior period which aligns with our strategy. Our balance sheet is strong, our business model is diverse, and we continue to grow our revenue with a heightened focus on expense management. We remain committed to executing against our strategy, including developing scale in our global payments offering and the international banknote marketplace, and increasing our penetration of financial institutions. Growing our direct-to-consumer reach through our online and agent platforms as well as company-owned locations remains a strategic pillar, while ensuring that the Company has the infrastructure to support this growth. I am confident that CXI will continue to grow as a global leader in the supply of currency and exchange services. In the second quarter, Management reassessed the recoverability of its deferred tax asset, specifically related to the unused loss carry forwards in its wholly-owned subsidiary, Exchange Bank of Canada. As a result, the deferred tax asset was reduced and a corresponding increase in deferred tax expense in the amount of $1.4 million was recorded in the statement of income. This change in the deferred tax expense resulted in a material increase in the effective tax rate for the three and six-month periods ended April 30, 2024.”

Financial Highlights for the three-months ended April 30, 2024 compared to the three-months ended April 30, 2023:

• Revenue increased by 7% or $1.4 million to $20.1 million compared to $18.7 million. Payments revenue grew 30% or $0.9 million over the prior period and Banknotes revenue grew by 3% or $0.5 million;

• Net operating income increased by 2% or $0.1 million to $3.8 million from $3.7 million;

• Reported net income declined by 77% or $1.7 million to $0.5 million from $2.2 million. As stated above, the results were impacted by the reduction of the deferred tax assets in Canada. Adjusted net income¹ declined by 14% or $0.3 million to $1.9 million from $2.2 million;

• Reported earnings per share was $0.08 on a basic and a fully diluted basis (adjusted earnings per share¹ were $0.30 and $0.29 on a basic and a fully diluted basis, respectively) compared to reported earnings per share of $0.35 and $0.33, respectively; and

• The Group had strong liquidity and capital positions of $72.8 million in net working capital and $79.9 million in total equity as at April 30, 2024.

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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

Financial Highlights for the six-months ended April 30, 2024 compared to the six-months ended April 30, 2023:

• Revenue increased by 7% or $2.6 million to $38.2 million compared to $35.6 million. Banknotes revenue grew 6% or $1.8 million over the prior period and Payments revenue grew by 11% or $0.8 million;

• Net operating income declined by 6% or $0.4 million to $6.1 million from $6.5 million;

• Reported net income declined by 65% or $2.4 million to $1.4 million from $3.8 million. As stated above, the results were impacted by the reduction of the deferred tax assets in Canada. Adjusted net income² declined by 27% or $1.0 million to $2.8 million from $3.8 million;

• Reported earnings per share was $0.21 on a basic and a fully diluted basis (adjusted earnings per share² were $0.44 and $0.42 on a basic and a fully diluted basis, respectively) compared to reported earnings per share of $0.60 and $0.57, respectively; and

• Cash flows from operating activities, excluding the changes in working capital amounted to $6.9 million compared to $7.0 million.

Corporate Highlights for the three-months ended April 30, 2024:

• The Group continued to grow its Banknotes product line as a result of the strong consumer demand for foreign currencies as international travel continued to strengthen. This is supported by the rate of travelers passing through TSA check points in United States airports which increased 8% compared to the same time last year;

• The financial institutions sector in the U.S. continues to grow with the addition of 104 new clients, representing 147 transacting locations;

• The Group continued expanding its OnlineFX platform, adding the State of Wisconsin to its network, making it the 42^nd State in which the Group provides its services through the platform; and

• The Payments product line processed 37,107 payments transactions, representing $3.39 billion in volume compared to 30,394 transactions and $2.59 billion in volume in the prior period.

Selected Financial Data

The following table summarizes the performance of the Group over the last eight fiscal quarters³:

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² 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
³ Certain historical numbers in this table have been restated to conform with the numbers presented in the current period’s financial statements

Conference Call

The Company plans to host a conference call on Thursday, June 13, 2024, at 8:30 AM (EDT).

To participate in or listen to the call, please dial the appropriate number:

Toll Free - North America: (+1) 800 717 1738

Conference ID Number: 82344

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 Mitoulas
Investor Relations
(416) 479-9547
Email: [email protected] 
Website: 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 six-month periods ended April 30, 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.