Currency Exchange International (CXI) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 4% year-over-year to $85.3 million, with 7% growth in the U.S. and a 6% decline in Canada.

• Net income for the year was $2.5 million, down 76% from the prior year, mainly due to $7.7 million in non-recurring Canadian charges.

• Adjusted net income remained flat year-over-year at $10.2 million; adjusted diluted EPS rose 3% to $1.56.

• Strategic review initiated for Exchange Bank of Canada to maximize shareholder value and focus on profitable U.S. operations.

• U.S. operations accounted for 81% of revenue, up from 79% last year.

Financial highlights

• Q4 revenue was $23.1 million, up 1% year-over-year, driven by payments and direct-to-consumer banknotes in the U.S.

• Q4 reported net loss of $2.8 million versus net income of $2.3 million last year, due to non-recurring Canadian items.

• Adjusted Q4 net income rose 21% to $2.8 million; adjusted EBITDA was $5.9 million, flat year-over-year.

• Reported EBITDA fell 30% year-over-year to $13.4 million; adjusted EBITDA rose 3% to $19.7 million.

• Operating expenses increased 10% for the year, outpacing revenue growth due to non-recurring Canadian charges.

Outlook and guidance

• Management targets double-digit growth over the next three years, driven by payments and banknotes expansion.

• Focus remains on selective retail expansion, agent partnerships, and software-driven payments growth.

• Continued cost management and operational efficiencies expected to support profitability.

• Strategic plan centers on shareholder return and leadership in banknotes and international payments.

• Confident in continued customer growth and market leadership.