Currency Exchange International Announces 32% Increase in Revenue for the Three-Months Ended January 31, 2023 versus the Prior Year

TORONTO, March 15, 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 ended January 31, 2023 (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, “The first quarter of 2023 demonstrated strong year-over-year growth as we continue to see increased demand for international travel. We are also seeing a return to more traditional seasonality in travel patterns, which historically has translated into Q1 being the weakest quarter and Q3 being the strongest as it relates to banknote revenue. We anticipate that pattern will reoccur in 2023, supported by continued year-over-year growth as international travel is expected to recover to pre-pandemic levels during this year. We maintain our focus in executing against our strategic plan, in which significant investments are being made in our people, infrastructure and technology platforms to support more efficient future growth. The first quarter marked the successful transition to our new organizational structure that took effect on November 1, 2022, and I am confident that we have the right team and systems to achieve our vision of being the preferred provider of foreign exchange solutions.”

Financial Highlights for the three-months ended January 31, 2023, compared to the three-months ended January 31, 2022:

• Revenue increased 32% or $4.0 million to $16.5 million for the three-month period ended January 31, 2023, as compared to $12.5 million in the three-month period ending January 31, 2022. The Banknotes product line accounted for $13.0 million of the revenue, an increase of 26% over the prior year. The Payments product line represented $3.5 million of the revenue, an increase of 60% over the prior year;  
• Net operating income decreased to $2.7 million for the three-month period ended January 31, 2023, from a net operating income of $3.1 million in the same period in the prior year;  
• Net income increased to $1.6 million in the three-month period ended January 31, 2023, from a net income of $1.5 million in the same period in the prior year;
• Earnings per share was $0.25 on a basic and $0.24 on a fully diluted basis for the three-month period ended January 31, 2023, compared to earnings per share of $0.23 in the same period in the prior year; and
• The Group had strong liquidity and capital positions of $62.4 million in net working capital, and $71.4 million in net equity as at January 31, 2023.

Corporate Highlights for the three-months ended January 31, 2023:

• The Group continued its growth in the international payments product line, having processed 28,486 payments transactions, representing $3,110 million in volume in the three-month period ended January 31, 2023. This compares to 23,478 transactions on $2,300 million of volume in the three-month period ending January 31, 2022;
• Increased penetration of the financial institution sector in the U.S. with the addition of 62 new clients, representing 83 transacting locations; and
• Adding additional agent locations as well as adding the State of Arizona, marking the 39th State that CXI services through its OnlineFX platform for its Direct-to-Consumer division.

Selected Financial Data

Conference Call

The Company plans to host a conference call on Thursday, March 16, 2023, at 8:30 AM (EST).  

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

• Toll Free - North America: (+1) 888 396 8049
• Conference ID Number: 555 96540

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

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-month Ended January 31, 2023. 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.