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
----------------------------------------------------------------------------
Net
operating Net
Period Date Revenue income income
(unaudited) $ $ $
----------------------------------------------------------------------------
Three-months ended 31-Jan-14 4,127,007 882,995 451,156
----------------------------------------------------------------------------
Four-months ended 31-Oct-13 6,463,406 2,207,417 1,669,609
----------------------------------------------------------------------------
Three-months ended 30-Jun-13 3,799,683 1,094,456 1,466,835
----------------------------------------------------------------------------
Three-months ended 31-Mar-13 2,919,292 435,357 (575,087)
----------------------------------------------------------------------------
Three-months ended 31-Dec-12 2,808,053 308,233 80,338
----------------------------------------------------------------------------
Three-months ended 30-Sep-12 3,369,548 1,433,792 1,475,426
----------------------------------------------------------------------------
Three-months ended 30-Jun-12 3,152,246 676,915 208,542
----------------------------------------------------------------------------
Three-months ended 31-Mar-12 3,076,693 631,705 497,415
----------------------------------------------------------------------------
---------------------------------------------------------------
Total Total Earnings per
Period Assets equity share
(unaudited) $ $ $
---------------------------------------------------------------
Three-months ended 32,844,972 29,835,415 0.08
---------------------------------------------------------------
Four-months ended 33,681,819 29,763,976 0.39
---------------------------------------------------------------
Three-months ended 19,997,719 17,607,201 0.38
---------------------------------------------------------------
Three-months ended 18,709,964 16,255,314 (0.15)
---------------------------------------------------------------
Three-months ended 19,929,308 16,734,553 0.02
---------------------------------------------------------------
Three-months ended 18,225,628 16,226,974 0.38
---------------------------------------------------------------
Three-months ended 17,275,581 14,711,060 0.05
---------------------------------------------------------------
Three-months ended 16,829,379 14,478,596 0.18
---------------------------------------------------------------
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 11, 2014 at 3:00 PM (EST).
To participate in or listen to the call, please dial the appropriate number:
Toll Free: +1 (855) 336-7594
Conference ID number: 9134640
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Currency Exchange International, Corp.
Randolph W. Pinna
President and Chief Executive Officer
407.240.0224
Randolph@ceifx.com
www.ceifx.com
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