134 0 Kommentare Currency Exchange International Announces Financial Results for the Three-and Nine-Month Period Ended July 31, 2020

TORONTO, Sept. 09, 2020 (GLOBE NEWSWIRE) -- Currency Exchange International, Corp. (the “Company”) (TSX:CXI; OTCBB:CURN), announces its financial results and management's discussion and analysis ("MD&A") for the three-and nine-month periods ended July 31, 2020 (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.sedar.com.

On March 11, 2020 the World Health Organization (“WHO”) officially declared COVID-19, the disease caused by a novel coronavirus, a pandemic. Measures enacted to curtail COVID-19 by various governments have significantly impacted travel and tourism, and therefore the demand for foreign currencies. The Company has experienced a material decline in revenue as a result. While the Company continues to operate, it is not possible to reliably estimate the duration and severity of these consequences as well as their impact on the financial position and results of future periods.

Randolph Pinna, CEO of the Company, stated “The third quarter of 2020 was one of the most challenging periods in the history of the Company in terms of the unprecedented decline in revenue. Despite this, CXI’s subsidiary, Exchange Bank of Canada (“EBC”), successfully closed on its acquisition of a Quebec-based payments company that has operated for over 22 years. This business advances EBC’s footprint in the Canadian payments market and will enable growth in the months ahead for the bank. While it is expected that the demand for banknotes will take an extended time to recover to pre-crisis levels, the CXI financial group is firmly committed to this space. We have already seen some competitors leave the North American market, which has provided an opportunity to gain market share. This will accelerate the group’s return to profitability as demand for travel recovers. CXI has been through challenging periods in the past and proven its resilience. It’s a testament to the exceptional pool of talent, technology, global relationships and customers that have been the hallmarks of CXI’s success.”

Financial Highlights for the Three-month Period Ended July 31, 2020 compared to the Three-month Period Ended July 31, 2019:

Revenue decreased 69% or $8.5 million to $3.9 million for the three-month period ended July 31, 2020, due to a pandemic-induced decline in the banknotes segment of 73%, partially offset by an increase in the payments segment of 13%;

A net operating loss of $2.0 million in the three-month period ended July 31, 2020 compared to $2.9 million in net operating income for the three-month period ended July 31, 2019. Operating expenses declined by 38%, mitigating a significant amount of the revenue decline. Normalizing for the adoption of IFRS 16 on November 1, 2019, the net operating loss would have been $2.6 million in the three-month period ended July 31, 2020;

Other income includes non-repayable government wage subsidies of $0.4M for the three-month period ended July 31, 2020;

A net loss of $2.3 million in the three-month period ended July 31, 2020 compared to a net profit of $1.8 million for the three-month period ended July 31, 2019; and

A net loss per share of ($0.35) on a basic and fully diluted basis for the three-month period ended July 31, 2020, compared to earnings per share of $0.28 in the three-month period ended July 31, 2019.