The Caldwell Partners International Issues Fiscal 2015 Second Quarter Financial Results

  • Year-over-year second quarter revenue increase of 30%.
  • Second quarter operating income is $511,000.
  • Board declares 2.0 cent quarterly dividend.

TORONTO, April 9, 2015 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2015 second quarter ended February 28, 2015. 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 except per share amounts)


Three Months Ended
February 28

Six Months Ended
February 28


2015

2014

2015

2014

Revenue

$11,874

$9,158

$24,310

$19,496

Operating expenses

$11,363

$9,108

$23,492

$19,039

Operating profit

$511

$50

$818

$458

Investment income

$11

$4

$24

$5

Earnings before tax

$522

$54

$842

$463

Net earnings

$282

$43

$559

$436

Earnings per share

$0.013

$0.002

$0.026

$0.024

"Our partner and support team continued the strong momentum from previous quarters, delivering a sizeable increase in revenue and a positive contribution to operating profit," said John N. Wallace, chief executive officer. "We are very pleased with the way our entire team is operating, and are feeling confident about continuing our performance for the remainder of the fiscal year."

Wallace added: "We continue to focus on making targeted, strategic additions of high calibre partners in key sectors and practices to enhance our value proposition to our clients, as well as our overall market presence and industry competitiveness. The recent additions of Rodes Cole (Atlanta) and Glenn Buggy (Stamford/New York) to our partner team add significant depth to both our professional services and financial services practices and will contribute positively to our second half revenues."

The Board of Directors today also declared the payment of a quarterly dividend of 2.0 cents per Common Share payable on June 15, 2015 to shareholders of record on April 20, 2015.

Financial Overview (in $000s except per share amounts)

  • Operating revenue:

    • Fiscal 2015 second quarter operating revenue increased by 30% (20% excluding a 10% variance from exchange rate fluctuations) over the comparable period last year to $11,874 (2014: $9,158).
      • US revenues increased 19% (6% excluding a 13% favourable variance from exchange rate fluctuations) to $7,800 (2014: $6,568), driven by an increase in the average number of search partners and search volumes during the current year, partially offset by lower average fees.
      • Revenues from Canadian operations increased 45% to $3,758 (2104: $2,590) in the current period, generated by higher search volumes offset partially by lower average fees
      • Revenues from the Europe operations were $316
    • Year to date revenue increased 25% over the prior year to $24,310 (2014: $19,496).

  • Operating profit:

    • For the second quarter, higher year-over-year revenues ($2,716) offset by the related higher compensation and cost of sales ($1,992) and expenses ($264) resulted in operating profit of $511 in the second quarter of fiscal 2015, an increase of $461 from $50 in the second quarter of fiscal 2015.
    • On a segment basis, $351 of operating profit was from the US, $118 was from Canada and $42 was from Europe.
    • Year to date, higher year-over-year revenues ($4,814) partially offset by the related higher compensation and cost of sales ($3,410) and expenses ($1,044) resulted in the net increase of $360 to operating profit of $818 in the first half of fiscal 2015, up from $458 in the first half of fiscal 2014.

  • Net profit:

    • The second quarter net earnings were $282 ($0.013 per share) in fiscal 2015, as compared to $43 ($0.002 per share) in the comparable period a year earlier.
    • Year to date net earnings were $559 ($0.026 per share) in fiscal 2015, as compared to $436 ($0.024 per share) in the comparable period a year earlier.

For a complete discussion of the quarterly financial results, please see the company's Management Discussion and Analysis posted on SEDAR at www.sedar.com.

About Caldwell Partners

Caldwell Partners is a leading international provider of executive search and has been for more than 40 years. As one of the world'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 and partners across North America and in London, 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 INTERIM STATEMENTS OF FINANCIAL POSITION

(unaudited - in $Canadian)



As at



As at



February 28



August 31



2015



2014

Assets





Current assets






Cash and cash-equivalents

3,742,122



12,742,873


Marketable securities

7,828,876



7,809,403


Accounts receivable

8,172,709



8,141,145


Income taxes receivable

65,733



-


Prepaid expenses and other assets

1,542,136



1,364,383



21,351,576



30,057,804

Non-current assets






Restricted cash

483,461



452,138


Advances

293,556



195,033


Property and equipment 

1,758,855



1,609,811


Intangible assets 

398,601



384,470


Goodwill 

3,055,390



1,072,315


Deferred income taxes

2,817,517



2,443,435

Total assets

30,158,956



36,215,006







Liabilities





Current liabilities






Accounts payable 

2,035,853



1,399,983


Compensation payable

10,104,230



15,752,702


Dividends payable

425,503



367,513


Income taxes payable

-



1,790,091


Contingent consideration

263,858



-


Deferred revenue

1,158,927



1,974,144



13,988,371



21,284,433

Non-current liabilities






Compensation payable

582,681



552,799


Contingent consideration

253,709



-



14,824,761



21,837,232

Equity attributable to owners of the Company






Share Capital

7,710,063



7,330,563


Contributed surplus

16,253,959



16,253,631


Accumulated other comprehensive income

1,780,458



911,417


Deficit 

(10,410,285)



(10,117,837)

Total equity

15,334,195



14,377,774

Total liabilities and equity

30,158,956



36,215,006












 










THE CALDWELL PARTNERS INTERNATIONAL INC.










CONSOLIDATED INTERIM STATEMENTS OF EARNINGS

(unaudited - in $Canadian)


Three months ended



Six months ended


February 28



February 28


2015


2014



2015


2014










Revenues

11,873,560


9,157,785



24,309,761


19,496,334










Cost of sales

8,850,549


6,859,444



18,022,818


14,613,607

Gross profit

3,023,011


2,298,341



6,286,943


4,882,727










Expenses










General and administrative

2,314,810


2,122,238



4,988,718


4,146,203


Sales and marketing

170,631


222,361



443,849


383,014


Foreign exchange loss (gain)

26,831


(96,111)



36,946


(103,983)


2,512,272


2,248,488



5,469,513


4,425,234

Operating profit

510,739


49,853



817,430


457,493










Investment income

11,132


3,894



24,003


5,319

Earnings before income tax

521,871


53,747



841,433


462,812










Income tax

240,164


10,750



282,875


26,683










Net earnings for the period attributable to owners of the Company

281,707


42,997



558,558


436,129










Earnings per share:










Basic and diluted

$0.013


$0.002



$0.026


$0.024











CONSOLIDATED INTERIM STATEMENTS OF 

COMPREHENSIVE EARNINGS

(unaudited - in $Canadian)


Three months ended



Six months ended


February 28



February 28


2015


2014



2015


2014










Net earnings for the period

281,707


42,997



558,558


436,129










Other comprehensive income:










Unrealized gain on marketable securities

36,181


91,927



19,473


146,429


Cumulative translation adjustment

596,849


146,718



849,568


181,605

Comprehensive earnings for the period attributable to owners of the Company

914,737


281,642



1,427,599


764,163











 









THE CALDWELL PARTNERS INTERNATIONAL INC.














CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(unaudited - in $Canadian)









Accumulated Other Comprehensive











Income (Loss)













Unrealized











Cumulative 


Gains on









Contributed


Translation


Marketable


Total



Deficit


Capital Stock


Surplus


Adjustment


Securities


Equity














Balance - September 1, 2013


(10,683,347)


4,080,020


16,247,987


(99,623)


680,582


10,225,619














Net earnings for the six month period ended 













    February 28, 2014


436,129


-


-


-


-


436,129














Dividend payments declared


(666,250)


-


-


-


-


(666,250)














Share-based payment expense


-


-


2,822


-


-


2,822














Common share issuance


-


3,272,317


-


-


-


3,272,317














Change in unrealized gain on marketable













     securities available for sale 


-


-


-


-


146,429


146,429














Change in cumulative translation adjustment


-


-


-


181,605


-


181,605














Balance - February 28, 2014


(10,913,468)


7,352,337


16,250,809


81,982


827,011


13,598,671








































Balance - September 1, 2014


(10,117,837)


7,330,563


16,253,631


(797)


912,214


14,377,774














Net earnings for the six month period ended 













    February 28, 2015


558,558


-


-


-


-


558,558














Dividend payments declared


(851,006)


-


-


-


-


(851,006)














Share-based payment expense


-


-


328


-


-


328














Common share issuance


-


379,500


-


-


-


379,500














Change in unrealized gain on













     marketable securities available for sale 


-


-


-


-


19,473


19,473














Change in cumulative translation adjustment


-


-


-


849,568


-


849,568














Balance - February 28, 2015


(10,410,285)


7,710,063


16,253,959


848,771


931,687


15,334,195















 


THE CALDWELL PARTNERS INTERNATIONAL INC.













CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW

(unaudited - in $Canadian)










Six months ended










February 28










2015


2014













Cash flow provided by (used in)





















Operating Activities











Net earnings for the period






558,558


436,129


Adjustments for:












Depreciation






189,477


162,715



Amortization






41,136


37,675



Share-based payment expense





328


2,822



Unrealized foreign exchange on subsidiary loans




24,197


(84,748)



Decrease in non-current severance accrual





-


(105,000)



Increase (decrease) in long term incentive accrual




29,882


(86,339)



Disposal of property and equipment





-


14,444



Decrease in accounts receivable





816,431


2,620,958



Increase in taxes receivable





(65,733)


-



Decrease (increase) in prepaid expenses and other assets




19,379


(151,718)



Increase in accounts payable 





358,784


327,518



(Decrease) increase in income taxes payable 




(1,790,384)


32,507



Decrease in compensation payable





(6,141,818)


(2,125,819)



Payment of share-based compensation 





(597,589)


(330,013)



Decrease in deferred revenue





(912,859)


(271,075)

Net cash (used in) provided by operating activities





(7,470,211)


480,056













Investment Activities











Acquisition of business, net of cash acquired





(1,017,702)


-


(Increase) decrease in advances






(14,625)


111,033


Increase in restricted cash






(1,730)


(904)


Additions to property and equipment





(224,098)


(149,428)

Net cash used in investing activities






(1,258,155)


(39,299)

Financing Activities











Dividend payments






(793,016)


(554,719)


Common share issuance 






-


3,272,317

Net cash (used in) provided by financing activities





(793,016)


2,717,598













Effect of exchange rate changes on cash and cash equivalents




520,631


261,906

Net (decrease) increase in cash and cash equivalents





(9,000,751)


3,420,261

Cash and cash equivalents, beginning of period





12,742,873


7,612,957

Cash and cash equivalents, end of period





3,742,122


11,033,218










 

SOURCE The Caldwell Partners International Inc.

For further information: Investors & Analysts: Chris Beck, CPA, Chief Financial Officer, The Caldwell Partners International, cbeck@caldwellpartners.com, +1.617.934.1843; Media: Caroline Lomot, Director of Marketing, The Caldwell Partners International, clomot@caldwellpartners.com, +1.516.830.3535


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