Currency Exchange International, Corp.

Good morning, ladies and gentlemen, and welcome to the Currency Exchange International Q3 2026 Financial Results Conference Call. At this time, all lines are in listen-only mode, and following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, September 10th, 2026. I would now like to turn the conference call over to Mr. Bill Mitoulas of Investor Relations. Please go ahead.

Thank you, Kelsey. Good morning, everyone. Welcome to the Currency Exchange International conference call to discuss the financial results for the third quarter of the 2026 fiscal year. Thank you for joining us. With us today are President and CEO Randolph Pinna and Group CFO Gerhard Barnard. Gerhard will provide an overview of CXI's financial results, and his latest perspective on the company's operations. Randolph will then provide his commentary on CXI's strategic initiatives, sales efforts, and business activities, after which we'll open it up for your questions. Today's conference call is open to shareholders, prospective shareholders, members of the investment community, including the media. For those of you may happen to leave our call before this conclusion, Please be advised that this conference call will be recorded and then uploaded to CXI's Investor Relations website page, along with the financial statements and MD&A. Please note that this conference call will include forward-looking information, which is based on a number of assumptions and actual results could differ materially. Please refer to our financial statements and MD&A reports for more information about the factors that could cause these different results and the assumptions that we have made. With that, I'll turn the call over to Gerhard. Gerhard, please go ahead.

Thank you, Bill, and thank you to everyone for joining us today. Today, I will review CXI's financial performance for the third quarter and the first nine months of fiscal 2026. Unless otherwise indicated, all amounts are presented in US dollars and comparisons are against the same period last year, meaning the third quarter of 2026 compared to the third quarter of 2025. Before I begin, a brief note on how CXI discusses performance. We use both reported results prepared in accordance with IFRS accounting standards and certain adjusted non-GAAP measures. We believe the adjusted measures help explain the underlying performance of the business by excluding specific items that are non-recurring or introduced specific significant period to period volatility, such as stock-based compensation expense. However, adjusted results include close to $1 million of discontinued operations losses incurred by EBC in the normal course of business, EBC, Exchange Bank of Canada. Full definitions and reconciliations are included in our financial statements and MD&A on page 24 and 25, just to highlight that. The third quarter continued to deliver substantial payments growth that more than offset the lower banknotes revenue and overall drove a 5% increase in total revenue. At the same time, higher bank service charges due to substantial volume increases and share price-related stock-based compensation increased reported operating expenses. Even with those increases, adjusted EBITDA increased 3% and adjusted net income increased 31%. The main highlights of the third quarter are revenue increased by 1.1 million, roughly 5% to 22.4 million. Now the payments as revenue increased by about 1.8 million or 54% to close to 5.2 million, while banknotes revenue decreased by 700,000 or 4% to 17.2 million. Reported EBITDA was 8.1 million, fairly consistent with last year and down about 1%. Adjusted EBITDA increased by 220,000 or 3% to 8.5 million. Now net income from continuing operations was at 5.3 million consistent with last year. Reported group net income increased by a million or 24% to 5.3 million because of the prior year quarter including a 1 million loss from EBC's discontinued operations. Adjusted group net income increased by 1.3 million or 31% to $5.6 million. Diluted earnings per share was $0.87, so $0.87 compared to $0.67 last year. Adjusted diluted earnings per share were $0.93 compared to $0.68. Now let's talk about revenue performance. Total revenue of $22.4 million was 5% higher than last year, as I mentioned. The payments business increased its revenue by 54% representing 23% of our total revenue. A year ago, they represented 16% of our total revenue. So we used growth there. Banknotes represented 17.2 million or 77% of our total revenue compared to 84% last year. Now compared to the second quarter of 2026, Revenue increased by 4.4 million or 25%. As we know, our cyclical trend is Q1, Q2 a little slower, Q3, Q4 we pick up speed with all the international traveling. That sequential increase is consistent with the normal seasonality of our business as banknotes activity is generally stronger from March to September.