Currency Exchange International (CXI) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $3.9 million, down 3% year-over-year, with U.S. operations growing and Canadian losses narrowing.

• Revenue rose 2% year-over-year to $24 million for the quarter and 5% to $62.2 million for the nine months, driven by Payments and Banknotes growth.

• U.S. revenue accounted for 83% of total, up from 82%, while Canadian revenue declined 6%.

• Strong liquidity and capital positions maintained, with $74.9 million in net working capital and $83.1 million in total equity as of July 31, 2024.

• Strategic focus remains on technology enhancements, operational efficiencies, and international expansion.

Financial highlights

• Net operating income for Q3 was $6.75 million, up 5% year-over-year.

• EBITDA margin improved to 29% from 28% last year.

• Quarterly EPS was $0.61 basic and $0.59 diluted; nine-month EPS was $0.84 basic and $0.80 diluted (adjusted EPS: $1.06/$1.02).

• Cash flows from operating activities (excluding working capital changes) were $13.9 million for nine months, up from $13.6 million.

• Operating expenses rose 1% in Q3 and 7% for the nine months, outpacing revenue growth in Canada.

Outlook and guidance

• Management is focused on returning the Canadian subsidiary to profitability through international expansion and new client acquisitions.

• U.S. payments business expected to continue strong growth, leveraging new integrations and the Wire Hub platform.

• Continued expansion of online FX services, aiming to cover 100% of the U.S. population.

• Ongoing evaluation of M&A opportunities to drive significant group growth.

• Focus on profitable growth and maintaining adequate capital levels.