Currency Exchange International (CXI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 2% to $24M, with nine-month revenue up 5% to $62.2M, driven by Payments and Banknotes product lines.

• Net income for Q3 was $3.9M, down 3% year-over-year; nine-month net income was $5.3M, down 33% mainly due to deferred tax expense.

• U.S. operations accounted for 83% of total revenue and remain the primary driver.

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

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

Financial highlights

• Quarterly revenue: $24.0M (+2% YoY); nine-month revenue: $62.2M (+5% YoY).

• Quarterly net income: $3.9M (-3% YoY); nine-month net income: $5.3M (-33% YoY, impacted by deferred tax expense).

• U.S. net income grew 13% to $5.14M; Canadian net loss increased to $1.2M.

• EBITDA margin improved to 29% from 28% year-over-year.

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

Outlook and guidance

• Management is focused on returning the Canadian subsidiary to profitability through international expansion and cost control.

• Anticipates increased international revenues from new clients and expanded product offerings.

• Plans to open additional U.S. retail locations and expand agent relationships.

• Management remains confident in continued growth and aims to become a global leader in foreign currency and payment services.

• Focus on profitable growth and maintaining adequate capital levels.