The Caldwell Partners' First-Quarter Operating Revenue Up 46%



    - Fiscal 2008 first-quarter operating revenue increases to $4.6 million
    - Operating and net income increase to $0.2 million
    - Board declares quarterly cash dividend of $0.02 per share

    TORONTO, Jan. 14 /CNW/ - The Caldwell Partners International Inc.
(TSX: CWL.A), Canada's first, largest, and only truly national human capital
services firm, today announced its financial results for the fiscal 2008 first
quarter ended November 30, 2007. All references to quarters or years are for
the fiscal periods unless otherwise noted and all currency amounts are in
Canadian dollars.

    Operating Revenue Up 46% Compared With 2007 First Quarter Results;
    Operating and Net Earnings Improve

    Driven by strong 2007 new business bookings, first-quarter 2008 operating
revenue rose 46 percent to $4,552,685 compared with $3,109,181 in the period a
year ago. First-quarter operating revenue in 2007 was affected by softer
bookings at the end of the prior year.
    General and administrative expenses were up only 10 percent. Direct costs
associated with generating the operating revenue, particularly employee
compensation expenses, rose 40 percent, reflecting increased variable expenses
associated with the 46 percent increase in revenue. The increase also reflects
the higher compensation expenses related to the company's implementation of
its Strategic Growth Plan that involves investing in adding and developing new
partners and other professional staff.
    Operating income increased in the 2008 first quarter to $181,001 from a
loss in the 2007 period of $236,443.
    Operating revenue and operating income are non-GAAP measures, however,
the company believes that they provide a useful understanding of the
performance of its core human capital services operations as they exclude
income or loss from investments and taxes.
    Investment income was $64,385 in the 2008 first quarter, compared with
$132,804 a year earlier. The decline is largely attributable to an increase in
realized capital losses. As at November 30, 2007, the market value of the
company's investments was $113,987 above book cost.
    Net income in the 2008 first quarter rose to $160,423 ($0.009 per basic
and fully diluted share), compared with a small net loss in the 2007 quarter
($0.003 per share on a basic and fully diluted basis).

    Board Declares Quarterly Dividend of 2 Cents

    The company's Board of Directors declared a cash dividend for the 2008
first quarter of $0.02 per Class A non-voting and Class B voting share payable
on February 15, 2008 to shareholders of record on February 5, 2008. For the
past four quarters, the company declared total dividends of $0.08 per share.

    Normal Course Issuer Bid

    On November 14, 2007, The Caldwell Partners announced that the Toronto
Stock Exchange had accepted the company's application for a normal course
issuer bid for the repurchase of up 658,439 Class A Non-voting Shares,
representing approximately five percent of the 13,168,783 Class A shares
outstanding as at October 31, 2007. During the remaining weeks of the first
quarter, the company repurchased and cancelled 8,000 Class A shares.

    Outlook Continues to be Positive

    "We are certainly pleased with the start to our new fiscal year," said C.
Douglas Caldwell, Chief Executive Officer. "At this time, based on our
assignments bookings, we feel cautiously optimistic for 2008. However, we also
recognize that concerns have surfaced about a possible U.S. recession and the
impact that this would have on the Canadian economy.
    "We continue to work with our Board on executing our strategies for
growing our business and creating additional value for the company's
shareholders. We are seeing increasing contributions from the new partners and
other staff that we added or promoted during the past year," Mr. Caldwell
said.

    About The Caldwell Partners
    ---------------------------
    The Caldwell Partners International Inc., founded in 1970, was Canada's
first executive search firm. Today it is the largest and only truly national
human capital services company, serving clients across Canada from its offices
in Halifax, Montreal, Ottawa, Toronto, Calgary, and Vancouver, as well as
internationally. The Caldwell Partners focuses, in particular, on recruiting
"C-class" executives (chief executive, chief financial, chief information
officers, as well as other senior executives). The Caldwell Partners takes
pride in delivering unmatched depth of service and expertise to its clients,
the calibre and experience of its staff, and the successful completion of its
engagements. The Caldwell Partners founded and continues to promote the
prestigious national awards programs recognizing Canada's Outstanding CEO of
the Year(TM) and Canada's Top 40 Under 40(TM), and advises and supports the
Canada's CFO of the Year Award(TM) program. In 2007, the Canada's Outstanding
CEO of the Year(TM) and Canada's Top 40 Under 40(TM) programs marked their
respective 19th and 14th anniversaries.
    The Caldwell Partners' Class-A non-voting shares are listed on The
Toronto Stock Exchange (TSX: CWL.A). Please visit our website at
www.caldwell.ca for further information.

    Forward-Looking Statements

    Forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties. Actual
results might differ materially due to various factors such as the competitive
nature of the executive search industry, the ability of the company to execute
its growth strategies, the performance of the Canadian domestic and
international economies, and the company's ability to retain key personnel.
The Caldwell Partners assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in the forward-looking statements.


    
    THE CALDWELL PARTNERS INTERNATIONAL INC.

    CONSOLIDATED BALANCE SHEET
    (unaudited)
    -------------------------------------------------------------------------
                                                                     As at
                                           As at November 30       August 31
                                           2007         2006         2007
    Assets
      Cash and short-term deposits     $7,036,857    $6,107,972   $5,839,292
      Accounts receivable               3,595,019     2,947,703    3,886,522
      Income taxes receivable             733,453       622,904      679,337
      Prepaid expenses                    198,135       244,361      169,545
    -------------------------------------------------------------------------
                                       11,563,464     9,922,940   10,574,696

      Marketable securities            12,538,604    12,749,142   13,734,660
      Loans receivable, net               248,064       693,777      355,966
      Property and equipment            2,149,483     2,262,068    2,190,973
      Future income taxes                  24,041        24,041       24,041
    -------------------------------------------------------------------------
                                      $26,523,656   $25,651,968  $26,880,336
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
      Accounts payable and accrued
       liabilities                     $2,652,304    $2,023,806   $2,961,487
      Deferred revenue                    297,253       260,771      397,854
    -------------------------------------------------------------------------
                                        2,949,557     2,284,577    3,359,341

    Long-term liabilities               1,469,712       934,158    1,337,148

    Future income taxes                   371,543       314,968      350,968

    Shareholders' equity
      Capital stock                    20,582,979    20,595,326   20,595,326
      Contributed surplus                 204,803       204,803      204,803
      Retained earnings                   851,649     1,318,136    1,032,750
    -------------------------------------------------------------------------
                                       21,639,431    22,118,265   21,832,879
    -------------------------------------------------------------------------

    Accumulated other comprehensive
     income                                93,412             0            0
    -------------------------------------------------------------------------
                                      $26,523,656   $25,651,968  $26,880,336
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    THE CALDWELL PARTNERS INTERNATIONAL INC.

    CONSOLIDATED STATEMENT OF EARNINGS
    (unaudited)
    -------------------------------------------------------------------------
                                                            Three months
                                                         ended November 30
                                                         2007        2006
    -------------------------------------------------------------------------
    Operating revenue                                 $4,552,685  $3,109,181

    Expenses
      Employee compensation, general and
       administration                                  4,282,058   3,267,301
      Amortization                                        89,625      78,323
    -------------------------------------------------------------------------
                                                       4,371,684   3,345,624
    -------------------------------------------------------------------------
    Income (loss) before the following:                  181,001    (236,443)

    Investment income                                     64,385     132,804
    -------------------------------------------------------------------------
    Net income (loss) before tax                         245,386    (103,639)

    Provision for (recovery of) income taxes              84,963     (56,384)
    -------------------------------------------------------------------------
    Net earnings (loss) for the period                  $160,423    ($47,255)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per share                                    $0.009     ($0.003)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF
    COMPREHENSIVE INCOME
    (unaudited)
    -------------------------------------------------------------------------
                                                          Three months ended
                                                              November 30
                                                                  2007
    -------------------------------------------------------------------------
    Net earnings for the period                                 $160,423

    Other comprehensive income:
      Unrealized loss on marketable securities (net of tax)     (248,451)
    -------------------------------------------------------------------------
    Comprehensive income (loss)                                 ($88,028)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    THE CALDWELL PARTNERS INTERNATIONAL INC.

    CONSOLIDATED STATEMENT OF CASH FLOWS
    (unaudited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                          Three months
                                                       ended November 30
                                                      2007          2006
    -------------------------------------------------------------------------
    Operating Activities
      Net earnings for the period                    $ 160,423      ($47,255)
      Items not affecting cash
        Amortization                                    89,625        78,323
        Loss on sale of investments                     73,616        10,300
        Non-cash incentive compensation                132,564       148,478
    -------------------------------------------------------------------------
                                                       456,228       189,846

    Net increase in working capital balances
     related to operations                             (93,084)     (451,385)
    -------------------------------------------------------------------------
                                                       363,144      (261,539)
    -------------------------------------------------------------------------

    Investment Activities
      Proceeds on sale of marketable securities      1,236,427       250,000
      Additions to marketable securities                     0    (3,440,100)
      Additions to property and equipment              (48,135)     (104,817)
    -------------------------------------------------------------------------
                                                     1,188,292    (3,294,917)
    -------------------------------------------------------------------------

    Financing Activities
      Dividends on Class A and Class B Shares         (341,180)     (341,015)
      Cancellation of Class A Shares                   (12,691)            0
    -------------------------------------------------------------------------
                                                      (353,871)     (341,015)
    -------------------------------------------------------------------------

    Net increase (decrease) in cash and cash
     equivalents during the period                   1,197,565    (3,897,471)
    Cash and cash equivalents, beginning of period   5,839,292    10,005,443
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period        $7,036,857    $6,107,972
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    THE CALDWELL PARTNERS INTERNATIONAL INC.

    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY AND
    ACCUMULATED OTHER COMPREHENSIVE INCOME
    (unaudited)
    -------------------------------------------------------------------------
                                                          Three months
                                                       ended November 30
                                                      2007          2006
    -------------------------------------------------------------------------

    Shareholders' equity - beginning of period    $21,832,879    $22,506,535

    Net earnings for the period                       160,423        (47,255)
    Cancellation of Class A shares                    (12,691)             0
    Dividends on Class A and Class B shares          (341,180)      (341,015)
    -------------------------------------------------------------------------

    Shareholders' equity - end of period          $21,639,431    $22,118,265
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Adoption of new handbook standard
     (net of tax)                                    $341,863            $ 0

    Unrealized loss on marketable securities
     (net of tax)                                    (248,451)             0
    -------------------------------------------------------------------------

    Accumulated other comprehensive income -
     end of period                                    $93,412             $0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00003230E




For further information:

For further information: Richard W. Wertheim, Wertheim + Company Inc.,
wertheim@wertheim.ca, (416) 594-1600, (416) 518-8479 (cell)


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