Currency Exchange International Announces a 10% Increase in Revenue for the first quarter of 2025 Versus the Prior Year

This section is

Partnership Content supplied

by GlobeNewswire

Breadcrumb Trail Links

GlobeNewswire

Article content

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Exclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman and others.Daily content from Financial Times, the world’s leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.

REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.

THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.

Create an account or sign in to continue with your reading experience.

Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authors

Sign In or Create an Account

or

Article content

Article content

Article content

The Group’s revenue was 10% higher than the prior year reflecting overall growth, of which 9% was achieved in the United States and 13% was achieved in Canada. Revenue in the United States represented 77% (78% in the prior year) while Canada represented 23% (22% in the prior year). The Group’s capital position remained robust, and liquidity was strong with $79.4 million in total equity and $73.6 million in net working capital as of January 31, 2025.

On February 18, 2025, the Group announced its decision to cease the operations of its wholly owned subsidiary, Exchange Bank of Canada. This strategic decision and operational plan for restructuring were communicated to all staff of EBC on February 19, 2025. Following the cessation of operations, the Bank intends to apply to the Minister of Finance in Canada to discontinue from the Bank Act. The voluntary discontinuance is expected to be completed in the fourth quarter of 2025, subject to receipt of all necessary regulatory approvals. Following the Group’s decision, management has commenced implementation of the restructuring and planned discontinuance of the Bank. Management is currently assessing the full financial impact of the discontinuance and estimates that the discontinuance of the Bank may lead to a positive impact on the overall Group results.

Article content

Randolph Pinna, CEO of the Group, stated, “CXI group revenue grew 10% over the prior year allowing us to keep our balance sheet strong while we continue to focus on growth and operational efficiencies through automation and integration. It remains clear that the group’s business model is very strong in the United States as it is diverse, with the continuous growth in the payments business complimented by a successful banknotes model for both our Financial Institutions and our Direct to Consumer offering through online, agent and physical branch locations. In addition to a very focused execution of our thorough exit plan from Canada, our management team and I remain committed to executing on our strategic plan which is focused on the return on capital and creating value for our shareholders. Our group is confident it will continue to grow and become a leader in the supply of banknotes and international payments through continued customer growth while improving efficiencies using new technologies and the roll out of product enhancements”.

Financial Highlights for the three-month periods ended January 31, 2025 and 2024:

Top Stories

Get the latest headlines, breaking news and columns.

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

Article content

Article content

Revenue increased by 10% or $1.8 million to $19.9 million compared to $18.1 million. Banknotes revenue increased by 9% or $1.3 million over the prior period and Payments revenue increased by 12% or $0.5 million;Reported EBITDA increased by 33% or $0.8 million to $3.1 million from $2.3 million. Adjusted EBITDA2 was $3.4 million, 45% higher than the prior period;  Reported net income was $0.8 million, a 4% decline compared to the prior period. Adjusted net income2 increased 29% or $0.3 million to $1.1 million from $0.8 million in the prior period;Reported earnings per share were $0.13 and $0.12 on a basic and fully diluted basis, respectively, compared to the prior year’s reported earnings per share of $0.13 on both a basic and fully diluted basis. Adjusted earnings per share2 were $0.17 on a basic and fully diluted basis, respectively; andThe Group had strong capital and liquidity positions of $73.6 million in net working capital and $79.4 million in total equity as of January 31, 2025.

Corporate Highlights for the three-month period ended January 31, 2025:

The Group continued its growth in the direct-to-consumer market through its network of company-owned branch locations, agent relationships, and in the states where it operates its OnlineFX platform. During the first quarter of 2025, the Group added the State of Nebraska to its OnlineFX platform network, now operating in 44 states in addition to the District of Columbia;The Group increased its banknotes market penetration into the financial institutions sector in the United States with the addition of 70 new clients in the first quarter of 2025; andThe Group continued to grow its Payments product line benefiting from the recent investments in core banking platform integrations which enabled the Group to expand its reach and increase its volumes in the United States. The Group processed 40,501 payment transactions in the first quarter compared to 35,618 payment transactions in the prior period.

Article content

Selected Financial Data

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

Article content

Earnings Conference Call Details

CXI plans to host a conference call on Thursday, March 13, 2025, 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: 62088

CXI Annual General Meeting of Shareholders:

CXI’s Annual General Meeting of Shareholders will be held in-person on Tuesday March 25, 2025 at 3:00 PM (EST).

AGM Date and Time

Tuesday March 25, 2025 at 3:00 PM (EST).

Meeting Location

KPMG – Conference Room 46026
Bay Adelaide Centre
333 Bay Street, Suite 4600
Toronto, Ontario, M5H 2S5, Canada

Questions

Shareholders can submit their questions directly to the Investor Relations group through the contact us form by selecting the topic Investor Relations. As well, shareholders attending in person will be able to ask questions of management at the conclusion of the meeting.

About Currency Exchange International, Corp.

Article content

Contact Information

For further information please contact:
Bill Mitoulas
Investor Relations
(416) 479-9547
Email: bill.mitoulas@cxifx.com
Website: www.cxifx.com

KEY PERFORMANCE AND NON-GAAP FINANCIAL MEASURES

The Group 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 Group’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 year with the corresponding period in the prior year. For further information, including a reconciliation, refer to key performance and non-GAAP financial measures in the MD&A.

Article content

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.

Article content

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.

___________________________________

1 These are non-GAAP measures based on management-determined non-recurring items. For further information, refer to the key performance and non-GAAP financial measures section on page 5, and for full reconciliation, refer to the key performance and non-GAAP financial measures section on page 15 in the MD&A.
2 These are non-GAAP measures based on management-determined non-recurring items. For further information, refer to key performance and non-GAAP financial measures section on page 5 of this document.
3 These adjusted results are non-GAAP measures based on management-determined non-recurring items. For further information, refer to the key performance and non-GAAP financial measures section on page 5 of this document and the MD&A.

Article content

Share this article in your social network