TORONTO, Jan. 23, 2023 (GLOBE NEWSWIRE) — Currency Exchange International, Corp. (the “Group” or “CXI”) (TSX: CXI; OTCBB: CURN), announces its financial results and Management’s Discussion and Analysis (“MD&A”) for the three-months and year ended October 31, 2022 (all figures are in U.S. dollars except where otherwise indicated). The complete financial statements and MD&A can be found on the Group’s SEDAR profile at www.sedar.com.
Randolph Pinna, CEO of the Group, stated, “Q4 was another strong quarter that capped a record year for CXI in which the Group generated revenue that was 50% higher than 2019, our last full-year before the pandemic. This performance reflects our steadfast commitment to executing against the strategic plan that we developed in 2020. That strategy has seen each business focus fully on growing our global payments offering, expand aggressively into the international banknote marketplace, increase our penetration of financial institutions in the United States, as well as expand our direct-to-consumer reach through our online and agent platforms. The 2022 refresh of our strategic plan also identified specific investments in infrastructure and organizational design changes to enable a more scalable enterprise. Those included establishing Managing Directors for each of Exchange Bank of Canada, CXI Wholesale and CXI’s Direct-to-Consumer divisions, which the Group implemented on November 1, 2022. We have also appointed Alan Stratton as the CFO of Exchange Bank of Canada on a permanent basis. With this seasoned management team in place, I am confident that CXI will grow to become a global leader in financial currency and exchange services.”
Corporate and Operational Highlights for the three-months ended October 31, 2022:
- CXI continued growth in the international payments product line in both Canada and the U.S. Exchange Bank of Canada initiated trades with 72 new corporate clients, representing an active client base of 853 during the same period. The Company processed 28,845 payments transactions, representing $3,190 million in volume in the three-month period ended October 31, 2022. This compares to 21,291 transactions on $2,029 million of volume in the three-month period ending October 31, 2021;
- Increased penetration of the financial institution sector in the U.S. with the addition of 107 new clients, representing 231 transacting locations; and
- Adding additional agent locations as well as adding the State of North Carolina, marking the 38th State that CXI services through its OnlineFX platform for its Direct-to-Consumer division.
Financial Highlights for the three-months ended October 31, 2022, compared to the three-months ended October 31, 2021:
- Revenue increased 96% or $9.7 million to $19.8 million for the three-month period ended October 31, 2022, as compared to $10.1 million in the three-month period ending October 31, 2021. The Banknotes product line accounted for $16.4 million of the revenue, an increase of 108% over the prior year. The Payments product line represented $3.4 million of the revenue, an increase of 53% over the prior year;
- Net operating income increased to $5.4 million for the three-month period ended October 31, 2022, from a net operating income of $0.8 million in the same period in the prior year;
- Net income increased to $4.4 million in the three-month period ended October 31, 2022, from a net income of $1.6 million in the same period in the prior year;
- Earnings per share was $0.68 on a basic and $0.66 on a fully diluted basis for the three-month period ended October 31, 2022, compared to earnings per share of $0.25 in the same period in the prior year; and
- The Group had strong liquidity and capital positions of $60.4 million in net working capital, and $69.3 million in net equity at October 31, 2022.
Financial Highlights for the fiscal year ended October 31, 2022, compared to the fiscal year ended October 31, 2021:
- Revenue increased 117% or $35.7 million to $66.3 million for the year ended October 31, 2022, compared to $30.6 million in the year ended October 31, 2021. The Banknotes product line accounted for $53.9 million of the revenue, an increase of 136% over the prior year. The Payments product line represented $12.4 million of the revenue, an increase of 61% over the prior year;
- Net operating income increased to $18.7 million for the year ended October 31, 2022, from a net operating loss of $0.04 million in the same period in the prior year;
- Net income increased to $11.8 million in the year ended October 31, 2022, from a net loss of $1.1 million in the same period in the prior year; and
- Earnings per share was $1.83 on a basic basis and $1.78 on a fully diluted basis for the year ended October 31, 2022, compared to a loss per share of $0.18 in the same period in the prior year.
Selected Financial Data
|Net income (loss)||Total assets||Total equity||Earnings (loss)|
The Company plans to host a conference call on Tuesday, January 24, 2023, at 8:30 AM (EDT). To participate in or listen to the call, please dial the appropriate number:
- Local – Toronto (+1) 416 764 8646
- Toll Free – North America (+1) 888 396 8049
- Conference ID Number: 09620999
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.
For further information please contact:
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 Year Ended October 31, 2022. 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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