The Caldwell Partners International Issues Fiscal 2012 First Quarter Financial Results

TORONTO, Feb. 1, 2012 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2012 first quarter ended November 30, 2011. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars.

Financial Highlights (in $000s)

    Three Months Ended   
November 30
  2012 2011
Operating revenue $7,270 $ 6,454
Expenses 7,671 7,463
Operating profit (loss) (401) (1,009)
Investment income 2 16
Net earnings (loss) before tax   (399) (993)
Net earnings (loss) after tax (444) (993)
Net earnings (loss) per share (0.026) (0.058)

"Our year-over-year results show a solid increase in quarterly revenues," said John N. Wallace, Chief Executive Officer. "Our first quarter is historically softer than the fourth quarter, so our revenues are down sequentially. Given the relative size of our client-facing team, our sector focus and market variability, we do expect to experience further fluctuations in our quarterly revenues."

Wallace continued: "Uncertainty in the economy and the global markets has led to softness in some segments of our industry and in particular Financial Services. However, we continue to focus both on improving our overall market presence and competitiveness, and on making targeted, strategic additions to the partner team when and where it makes sense. We made two substantive new partner hires in the first quarter in business sectors that were previously underserved, allowing us to further address our client's leadership needs in a broader, more complete way."

Financial Highlights (all numbers expressed in $000s)

  • Operating revenue:
    • Fiscal 2012 first quarter operating revenue increased by 13% over the comparable period last year to $7,270.
    • US revenues represent 71% or $5,126 of the first quarter total, increasing 48% from $3,457 in the comparable period of 2011.
    • Revenues from Canadian operations decreased 28% to $2,144 in the current period from $2,998 in the comparable period of 2011, due to an unusually strong comparable period last year
    • Although up over the comparable period last year, 2012 first quarter revenues declined 22% or $2,107 sequentially over 2011 fourth quarter revenues. We continue to see seasonal softness in our first quarter revenues, particularly against third and fourth quarter figures.

  • Operating profit:
    • Higher first quarter revenues as compared to the comparable period of fiscal 2011 resulted in a significantly reduced operating loss of $401 (2011: loss of $1,009) for the quarter.
    • First quarter revenues are traditionally soft and the Company has built the infrastructure necessary to support a higher level of billing than achieved during this quarter.

  • Net earnings:
    • The first quarter net loss before tax was $444 in fiscal 2012 as compared to a loss of $993 in the comparable period a year earlier.

Over the past two years, The Caldwell Partners has transformed from a respected, strictly Canadian brand to a firm with a strong North American presence. At the end of the first quarter of fiscal 2012, the firm now has 23 of its total 33 partners located in six American offices, and has established strategic alliances with executive search firms based in London and Hong Kong.

Operating revenue, gross profit/loss and operating income/loss are non-IFRS (International Financial Reporting Standards) measures. The Company believes, however, 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.

These financial results have been presented in conformity with International Financial Reporting Standards.  Therefore, comparative figures for the fiscal 2011 period previously presented in accordance with Canadian GAAP, have been restated.  For a complete discussion of the quarterly financial results and transition to IFRS, please see the Company's quarterly Financial Statements and Management Discussion and Analysis posted on SEDAR at www.sedar.com

About Caldwell Partners

Caldwell Partners is one of North America's premier providers of executive search and has been for over 40 years. As one of the region's most trusted advisors in executive search, the firm has a sterling reputation built on successful searches for boards, chief and senior executives, and selected functional experts.

With offices in Vancouver, San Francisco, Los Angeles, Dallas, Calgary, Atlanta, Toronto, Stamford, New York City, and a strategic presence in London and Hong Kong, the firm takes pride in delivering an unmatched level of service and expertise to its clients.

Caldwell Partners' Common shares are listed on The Toronto Stock Exchange (TSX: CWL). Please visit our website at www.caldwellpartners.com 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 STATEMENT OF LOSS
(unaudited - in $Canadian)                                  
            Three months ended
            November 30
            2011       2010
                     
Revenues               $7,269,878       $6,454,300
                     
Cost of sales             5,912,299       5,620,821
Gross profit             1,357,579       833,479
                     
Expenses                        
  General and administrative           1,667,798       1,637,983
  Sales and marketing           135,424       142,260
  Other gains and losses (net)           (44,838)       62,634
            1,758,384       1,842,877
            (400,805)       (1,009,398)
                     
Investment income             2,268       16,643
Loss before income taxes           (398,537)       (992,755)
                     
Income tax             45,784       0
                     
Net loss for the period           ($444,321)       ($992,755)
                     
Earnings per share:                      
  Basic             ($0.026)       ($0.058)
  Diluted             ($0.025)       ($0.056)
                     
CONSOLIDATED STATEMENT OF 
COMPREHENSIVE LOSS
(unaudited - in $Canadian)                    
            Three months ended
            November 30
            2011       2010
                     
Net loss for the period           ($444,321)       ($992,755)
                     
Other comprehensive income:                    
  Unrealized (loss) gain on marketable securities           (63,232)       91,872
  Cumulative translation adjustment           135,650       (168,077)
Comprehensive loss for the period           ($371,903)       ($1,068,960)

 
THE CALDWELL PARTNERS INTERNATIONAL INC.  
                       
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(unaudited - in $Canadian)                            
  As at
    November 30     August 31     September 1
              2011     2011     2010
Assets                        
Current assets                      
  Cash and cash equivalents       $7,306,697     $6,944,084     $6,456,274
  Marketable securities       3,063,595     3,126,827     4,124,785
  Accounts receivable       5,552,980     6,537,347     5,875,065
  Income taxes receivable       79,901     80,053     87,377
  Prepaid expenses and other current assets   1,010,230     1,178,793     1,693,133
              17,013,403     17,867,104     18,236,634
Non-current assets                      
  Restricted cash         250,000     250,000     0
  Loans receivable       188,466     162,543     471,020
  Property and equipment        1,707,609     1,700,721     1,609,306
  Intangible assets        591,448     597,322     995,769
  Goodwill          1,007,628     967,236     1,053,255
  Deferred income taxes       75,872     72,834     0
Total assets         $20,834,426     $21,617,760     $22,365,984
                           
Liabilities                      
Current liabilities                      
  Accounts payable        $10,290,208     $10,724,427     $9,585,285
  Deferred revenue       $0     $0     $207,346
  Current portion of incentive accrual     530,250     530,250     1,639,818
              10,820,458     11,254,677     11,432,449
                           
Non-current liabilities                      
  Long-term incentive accrual       74,886     53,490     466,614
              10,895,344     11,308,167     11,899,063
                         
Equity                        
  Share capital         16,064,078     16,064,078     16,064,078
  Contributed surplus       4,180,793     4,179,399     4,154,196
  Accumulated other comprehensive income   (12,511)     (84,927)     285,057
  Deficit         (10,293,278)     (9,848,957)     (10,036,410)
Total equity         9,939,082     10,309,593     10,466,921
Total liabilities and equity       $20,834,426     $21,617,760     $22,365,984

SOURCE The Caldwell Partners International Inc.

For further information:

Investors & Analysts: 
Karen Richards, CA, Chief Financial Officer
The Caldwell Partners International
krichards@caldwellpartners.com
+1.416.934.2228

Media: 
Caroline Lomot, Director of Marketing
The Caldwell Partners International
clomot@caldwellpartners.com
+1.416.934.2239


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