Currency Exchange International Announces Financial Results for the Three-Month Period Ended April 30, 2021 and Adoption of Advance Notice By-Law

TORONTO, June 10, 2021 (GLOBE NEWSWIRE) — Foreign money
Trade
Worldwide,
Corp.
(the
“Firm”)
(TSX:CXI;
OTCBB:CURN), broadcasts its monetary outcomes and administration’s dialogue and evaluation (“MD&A“) for the three and six-months ended April 30, 2021 (all figures are in U.S. {dollars} besides the place in any other case indicated). The entire monetary statements and MD&A may be discovered on the Firm’s SEDAR profile at www.sedar.com.

On March 11, 2020 the World Well being Group (“WHO”) formally declared COVID-19, the illness attributable to a novel coronavirus, a pandemic.Measures enacted to curtail COVID-19 by numerous governments have considerably impacted journey and tourism, and subsequently the demand for foreign currency echange. The Firm has skilled a fabric decline in income consequently. Whereas the Firm continues to function, it’s not attainable to reliably estimate the length and severity of those penalties in addition to their affect on the monetary place and outcomes of future intervals.

Randolph Pinna, CEO of the Firm, said, “Q2 marked a milestone within the pandemic for the Firm. CXI’s trailing twelve-month income was greater in Q2 than within the earlier quarter ended January 31, 2021. This inflection level additionally coincided in the identical quarter that noticed the group’s consolidated web income being greater than it was within the comparative interval a 12 months in the past. Whereas the development is seemingly small relative to CXI’s pre-pandemic income, you will need to observe that it’s principally not on account of a restoration in journey and tourism primarily based demand for foreign currency echange, however somewhat as a result of execution of our strategic plan and the diligent effort by our staff to diversify our income base whereas changing into extra environment friendly in course of and value management. Important progress has been made in rising our worldwide funds enterprise, in addition to strengthening our place within the world banknote commerce. Whereas we proceed to pursue this technique, we’re optimistic that we are actually on the precipice of a restoration in worldwide journey. There are tangible indicators that the vaccines have confirmed efficient at combatting the coronavirus, permitting some nations to loosen up rules that prohibit world mobility. The European Union is now opening up journey to vaccinated vacationers and we anticipate that the border between Canada and the U.S. is prone to re-open someday this summer time. We’re taking a conservative strategy in our expectations on the restoration because it pertains to income and keep a concentrate on returning to profitability.”

Company and Operational Highlights:

• Since April 30, 2020, the Firm has added 768 new buyer relationships comprising 1,196 places, of which 274 relationships representing 608 places have been added within the U.S. and 494 relationships representing 588 places have been added in Canada. Roughly one-half of the brand new buyer relationships in Canada have been added pursuant to the enterprise acquisition accomplished on July 29, 2020 as introduced on June 30, 2020.
• Trade Financial institution of Canada continued its progress within the worldwide funds phase in Canada, initiating trades with 210 new company shoppers, enabling it to greater than double its fee income over the identical quarter within the prior 12 months.
• Within the three-months ending April 30, 2021, the Firm has additional elevated its penetration within the monetary establishment market within the U.S. with the addition of 42 new shoppers (106 for fiscal 12 months 2021), representing 112 (233 for fiscal 12 months 2021) places.
• The Firm elevated its penetration within the world banknote market with the addition of a European-based monetary establishment consumer.
• The Firm had a web unfavorable working money movement, excluding the affect of working capital adjustments within the quarter of roughly $0.5 million, or $0.2 million per 30 days, which signifies a progressive discount in working money outflow since October 31, 2020. The liquidity place is robust with $54M in unrestricted money.

Monetary Highlights for the Three-month Interval Ended April 30, 2021 in comparison with the Three-month Interval Ended April 30, 2020:

• Income elevated 4% or $0.3 million to $6.6 million for the three-month interval ended April 30, 2021. This represents an inflection level for the Firm, because the income within the prior 12 months interval included income previous to the declaration of the COVID-19 pandemic on March 11, 2020. Whereas income between the 2 intervals is comparatively constant, the working bills as a share of income has improved, demonstrating development in the direction of the Firm’s objective of returning to constructive working leverage. This displays the constructive affect from the restructuring actions taken in 2020 to re-size the enterprise;
• A web working lack of $0.6 million within the three-month interval ended April 30, 2021 in comparison with $2.3 million in web working revenue for the three-month interval ended April 30, 2020. Working bills declined by 17%, partially on account of earlier restructuring actions and different value discount efforts which have mitigated a big quantity of the income decline;
• Different revenue included $0.5 million from authorities grants for the three-month interval ended April 30, 2021;
• A web lack of $0.9 million within the three-month interval ended April 30, 2021 in comparison with a web lack of $2.9 million for the three-month interval ended April 30, 2020;
• A web loss per share of ($0.14) on a fundamental and absolutely diluted foundation for the three-month interval ended April 30, 2021, in comparison with web loss per share of ($0.46) within the three-month interval ended April 30, 2020; and
• The Firm had $65.8 million in present property and $56.5 million in web fairness at April 30, 2021.

Monetary Highlights for the Six-month Interval Ended April 30, 2021 in comparison with the Six-month Interval Ended April 30, 2020:

• Income for the six-month interval ended April 30, 2021 declined by 28% over the identical interval within the prior 12 months. The decline displays the unprecedented affect that COVID-19 pandemic-related journey restrictions have had on shopper demand for banknotes. The decline within the U.S. additionally displays the discount in retail department places, which decreased by 24% to 35 places at April 30, 2021, from 46 at April 30, 2020;
• A web working lack of $1.9 million within the six-month interval ended April 30, 2021 in comparison with a web working lack of $1.2 million for the six-month interval ended April 30, 2020. That is reflective of the discount in income from year-to-year as a result of ongoing pandemic. Nevertheless, that is offset by a decline in working bills of twenty-two% for a similar interval;
• Different revenue included $0.7 million from authorities grants for the six-month interval ended April 30, 2021;
• A web lack of $2.7 million within the six-month interval ended April 30, 2021 in comparison with a web lack of $2.8 million for the six-month interval ended April 30, 2020;
• A web loss per share of ($0.41) on a fundamental and absolutely diluted foundation for the six-month interval ended April 30, 2021, in comparison with web loss per share of ($0.43) within the six-month interval ended April 30, 2020.

As demonstrated within the desk under, seasonality is mirrored within the timing of when foreign currency echange are in better or decrease demand. In a standard working 12 months, there may be seasonality to the Firm’s operations with greater revenues generated from March till September and decrease revenues from October to February. This coincides with peak tourism seasons in North America when there are typically extra vacationers getting into and leaving the US and Canada. The coronavirus pandemic has considerably impacted the power for folks to journey, and subsequently the three-month intervals ending April 30, 2020, July 31, 2020, October 31, 2020, January 31, 2021, and April 30, 2021 should not indicative of typical seasonality.

Chosen
Monetary
Knowledge

Adoption of Advance Discover Bylaw:

The Firm additionally introduced that the Firm’s board of administrators (the “Board”) has adopted an advance discover bylaw (the “Advance Discover Bylaw”), which establishes a framework for advance discover of shareholder proposals and nominations of administrators by shareholders of the Firm. The adoption of the Advance Discover Bylaw is meant to:

• Facilitate an orderly and environment friendly annual basic or particular assembly course of;
• Be sure that all shareholders obtain enough discover of shareholder proposals and director nominations and enough info concerning all proposals and director nominees; and
• Permit shareholders to register an knowledgeable vote after having been afforded cheap time for applicable deliberation.

The Advance Discover Bylaw, amongst different issues, fixes a deadline by which holders of file of frequent shares of the Firm should submit shareholder proposals and director nominations to the Firm previous to any annual assembly of shareholders and units out the required info that have to be included within the discover to the Firm. No particular person can be eligible for election as a director of the Firm except nominated in accordance with the Advance Discover Bylaw. This identical requirement applies to shareholder proposals.

To be well timed, a shareholder’s discover have to be delivered to the Secretary on the principal government workplaces of the Firm not later than the shut of enterprise on the ninetieth day nor sooner than the shut of enterprise on the one hundred and twentieth day previous to the primary anniversary of the previous 12 months’s annual assembly; offered, nevertheless, that within the occasion that the date of the annual assembly is greater than thirty (30) days earlier than or greater than 70 days after such anniversary date, discover by the shareholder to be well timed have to be so delivered (A) no sooner than the shut of enterprise on the one hundred and twentieth day previous to such annual assembly and (B) no later than the shut of enterprise on the later of the ninetieth day previous to such annual assembly or the shut of enterprise on the tenth day following the day on which public announcement of the date of such assembly is first made by the Firm.

The Advance Discover Bylaw is now in impact and the Firm intends to hunt shareholder approval to ratify the modification to the Firm’s bylaws to incorporate the Advance Discover Bylaw on the Firm’s subsequent annual basic assembly of shareholders (“AGM”). A abstract of the Advance Discover Bylaw can be contained within the info round to be ready for the 2021 AGM and mailed to the Firm’s shareholders. A replica of the Advance Discover Bylaw is on the market on SEDAR.

Convention
Name

The Firm plans to host a convention name on June 11, 2021
at
8:30 AM
(EST). To take part in or hearken to the decision, please dial the suitable quantity:

• Toll Free: 1-855-336-7594
• Convention ID Quantity: 8388766

About Foreign money Trade Worldwide, Corp.

The Firm is within the enterprise of offering a variety of international alternate expertise and processing providers in North America. Major services and products embrace the alternate of foreign currency echange, wire switch funds, International EFTs, buy and sale of international financial institution drafts and worldwide vacationers’ cheques, and international cheque clearing. Associated providers embrace the licensing of proprietary FX software program purposes delivered on its web-based interface, www.ceifx.com (“CXIFX”), and licensing retail international forex operations to pick corporations in agreed places.

The Firm’s wholly-owned Canadian subsidiary, Trade Financial institution of Canada, primarily based in Toronto, Canada, gives international alternate and worldwide fee providers to monetary establishments and choose company shoppers in Canada by means of the usage of its proprietary software program – www.ebcfx.com.

Contact Data
For additional info please contact:
Invoice Mitoulas
Investor Relations
(416) 479-9547
Electronic mail: invoice.mitoulas@cxifx.com
Web site: www.ceifx.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press launch consists of forward-looking info inside the that means of relevant securities legal guidelines. This forward-looking info consists of, or could also be primarily based upon, estimates, forecasts and statements as to administration’s expectations with respect to, amongst different issues, demand and market outlook for wholesale and retail international forex alternate services and products, proposed entry into the Canadian monetary providers trade, future progress, the timing and scale of future enterprise plans, outcomes of operations, efficiency, and enterprise prospects and alternatives. Ahead-looking statements are recognized by way of phrases and phrases akin to “anticipate”, “consider”, “might”, “estimate”, “anticipate”, “intend”, “might”, “plan”, “predict”, “preliminary”, “mission”, “will”, “would”, and comparable phrases and phrases, together with references to assumptions.

Ahead-looking info is predicated on the opinions and estimates of administration on the date such info is offered, and on info out there to administration at such time. Ahead-looking info entails important dangers, uncertainties and assumptions that would trigger the Firm’s precise outcomes, efficiency or achievements to vary materially from the outcomes mentioned or implied in such forward-looking info. Precise outcomes might differ materially from outcomes indicated in forward-looking info on account of a variety of elements together with, with out limitation, the aggressive nature of the international alternate trade, the affect of COVID-19 coronavirus on elements related to the Firm’s enterprise, forex alternate dangers, the necessity for the Firm to handle its deliberate progress, the results of product improvement and the necessity for continued technological change, safety of the Firm’s proprietary rights, the impact of presidency regulation and compliance on the Firm and the trade through which it operates, community safety dangers, the power of the Firm to keep up correctly working methods, theft and danger of bodily hurt to personnel, reliance on key administration personnel, world financial deterioration negatively impacting tourism, unstable securities markets impacting safety pricing in a way unrelated to working efficiency and impeding entry to capital or rising the price of capital in addition to the elements recognized all through this press launch and within the part entitled “Dangers and Uncertainties” of the Firm’s Administration’s Dialogue and Evaluation for Yr Ended October 31, 2020. The forward-looking info contained on this press launch represents administration’s expectations as of the date hereof (or as of the date such info is in any other case said to be introduced), and is topic to vary after such date. The Firm disclaims any intention or obligation to replace or revise any forward-looking info whether or not on account of new info, future occasions or in any other case, besides as required underneath relevant securities legal guidelines.

The Toronto Inventory Trade doesn’t settle for accountability for the adequacy or accuracy of this press launch. No inventory alternate, securities fee or different regulatory authority has authorised or disapproved the data contained on this press launch.