The Caldwell Partners International Issues Fiscal 2015 Third Quarter Financial Results

  • Year-over-year third quarter revenue increased 20% to $14,813,000.
  • Year-over-year third quarter operating profit increased 42% to $905,000.
  • Board declares fourteenth consecutive quarterly dividend of 2.0 cents.

TORONTO, July 9, 2015 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2015 third quarter ended May 31, 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

May 31

Nine Months Ended

 May 31


2015

2014

2015

2014

Revenue

$14,813

$12,359

$39,123

$31,855

Operating expenses

$13,908

$11,726

$37,400

$30,764

Operating profit

$905

$633

$1,723

$1,091

Investment income

$34

$6

$58

$11

Earnings before tax

$939

$639

$1,781

$1,102

Net earnings

$768

$639

$1,326

$1,075

Earnings per share

$0.036

$0.030

$0.062

$0.057

"We are very pleased with our team's performance this past quarter," said John N. Wallace, chief executive officer. "These results represent the ninth consecutive quarter of year-over-year growth for Caldwell Partners, and we believe it is a result of our single-minded focus on improving both the level of service we provide our clients, and the long-term value we deliver to our shareholders."

Wallace continued: "We have built an incredible team of partners and support staff – each renowned in their space for the depth of their knowledge, the breadth of their experience and the level of care with which they treat our clients. We will continue to expand our partner teams and our physical footprint where it allows us to strengthen the services we are able to provide to our clients on a global basis. The recent additions of Christopher Coe, Andrew Duncan, and their supporting teams in London are clear evidence of this ongoing strategy, as they add significant depth to our life sciences and financial services practices, respectively."

The Board of Directors today also declared the payment of a quarterly dividend of 2.0 cents per Common Share payable September 14, 2015 to shareholders of record on July 20, 2015.

Financial Overview (all numbers expressed in $000s)

  • Operating revenue:

    • Fiscal 2015 third quarter operating revenue increased by 20% (11% excluding a 9% variance from exchange rate fluctuations) over the comparable period last year to $14,813 (2014: $12,359).
      • US revenues increased 15% (2% excluding a 13% favourable variance from exchange rate fluctuations) to $10,398, driven primarily by an increase in the average number of search partners and higher average fees partially offset by slightly lower search volumes during the current year.
      • Canadian revenues increased 29% to $4,218 with higher fees more than offsetting the lower average number of search partners and slight decrease in search volumes.
      • Revenues from the Europe operations were $197.
    • Year to date revenue increased 23% (15% excluding an 8% variance from exchange rate fluctuations) over the prior year to $39,123 (2014: $31,855)

  • Operating profit:

    • For the third quarter, higher year-over-year revenues ($2,455) partially offset by the related higher cost of sales ($1,532) and expenses ($650) resulted in operating profit of $905 in the third quarter of fiscal 2015, an increase of $272 from $633 in the third quarter of fiscal 2015.
    • Year to date, higher year-over-year revenues ($7,268) partially offset by the related higher cost of sales ($4,942) and expenses ($1,694) resulted in the net increase of $632 to operating profit of $1,723 in the first three-quarters of fiscal 2015, up from $1,091 in the first three-quarters of fiscal 2014.

  • Net profit:

    • The third quarter net earnings were $768 ($0.036 per share) in fiscal 2015, as compared to $639 ($0.030 per share) in the comparable period a year earlier.
    • Year to date net earnings were $1,326 ($0.062 per share) in fiscal 2015, as compared to $1,075 ($0.057 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






May 31


August 31






2015


2014

Assets







Current assets








Cash and cash-equivalents




7,128,195


12,742,873


Marketable securities 




7,865,353


7,809,403


Accounts receivable




8,892,518


8,141,145


Prepaid expenses and other assets




1,594,412


1,364,383






25,480,478


30,057,804









Non-current assets








Restricted cash




483,384


452,138


Advances




389,599


195,033


Property and equipment




1,790,492


1,609,811


Intangible assets 




375,160


384,470


Goodwill 




3,026,543


1,072,315


Deferred income taxes




2,807,803


2,443,435

Total assets




34,353,459


36,215,006









Liabilities







Current liabilities








Accounts payable 




1,397,415


1,399,983


Compensation payable 




14,242,009


15,752,702


Dividends payable




425,503


367,513


Income taxes payable




32,427


1,790,091


Contingent consideration




269,454


-


Deferred revenue




1,314,537


1,974,144






17,681,345


21,284,433

Non-current liabilities








Compensation payable




776,032


552,799


Contingent consideration




257,896


-






18,715,273


21,837,232

Equity attributable to owners of the Company








Share capital




7,710,063


7,330,563


Contributed surplus 




16,254,123


16,253,631


Accumulated other comprehensive income




1,742,142


911,417


Deficit 




(10,068,142)


(10,117,837)

Total equity




15,638,186


14,377,774

Total liabilities and equity




34,353,459


36,215,006

 










THE CALDWELL PARTNERS INTERNATIONAL INC.










CONSOLIDATED INTERIM STATEMENTS OF EARNINGS

(unaudited - in $Canadian)



Three months ended


Nine months ended



May 31


May 31



2015


2014


2015


2014










Revenues


14,813,614


12,358,955


39,123,375


31,855,289










Cost of sales


10,801,626


9,269,216


28,824,444


23,882,823

Gross profit


4,011,988


3,089,739


10,298,931


7,972,466










Expenses










General and administrative


2,879,483


2,243,929


7,868,201


6,390,132


Sales & marketing


223,079


180,208


666,928


563,222


Foreign exchange loss (gain)


4,286


32,493


41,232


(71,490)




3,106,848


2,456,630


8,576,361


6,881,864

Operating profit 


905,140


633,109


1,722,570


1,090,602










Investment income


33,942


5,897


57,945


11,216

Earnings before income tax


939,082


639,006


1,780,515


1,101,818










Income tax


171,436


284


454,311


26,967










Net earnings for the period attributable to owners of the Company


767,646


638,722


1,326,204


1,074,851










Earnings per share










Basic and diluted


$0.036


$0.030


$0.062


$0.057



















CONSOLIDATED INTERIM STATEMENTS OF 

COMPREHENSIVE EARNINGS

(unaudited - in $Canadian)



Three months ended


Nine months ended



May 31


May 31



2015


2014


2015


2014










Net earnings for the period


767,646


638,722


1,326,204


1,074,851










Other comprehensive income:









Items that may be reclassified subsequently to net income










Unrealized gain on marketable securities


9,024


51,372


28,497


197,801


Cumulative translation adjustment


(47,340)


(78,571)


802,228


103,034

Comprehensive earnings for the period attributable to owners of the Company


729,330


611,523


2,156,929


1,375,686

 




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 nine month period ended 







    May 31, 2014

1,074,851

-

-

-

-

1,074,851








Dividend payments declared

(1,033,763)

-

-

-

-

(1,033,763)








Share-based payment expense

-

-

4,233

-

-

4,233








Common share issuance

-

3,250,543

-

-

-

3,250,543








Change in unrealized gains on marketable







     securities available for sale 

-

-

-

-

197,801

197,801








Change in cumulative translation adjustment

-

-

-

103,034

-

103,034








Balance - May 31, 2014

(10,642,259)

7,330,563

16,252,220

3,411

878,383

13,822,318








Balance - September 1, 2014

(10,117,837)

7,330,563

16,253,631

(797)

912,214

14,377,774








Net earnings for the nine month period ended 







    May 31, 2015

1,326,204

-

-

-

-

1,326,204








Dividend payments declared

(1,276,509)

-

-

-

-

(1,276,509)








Share-based payment expense

-

-

492

-

-

492








Common share issuance

-

379,500

-

-

-

379,500








Change in unrealized gain on







     marketable securities available for sale 

-

-

-

-

28,497

28,497








Change in cumulative translation adjustment

-

-

-

802,228

-

802,228








Balance - May 31, 2015

(10,068,142)

7,710,063

16,254,123

801,431

940,711

15,638,186

 


THE CALDWELL PARTNERS INTERNATIONAL INC.


CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW

(unaudited - in $Canadian)





Nine months ended





May 31





2015


2014








Cash flow provided by (used in)














Operating activities








Net earnings for the period




1,326,204


1,074,851


Adjustments for:









Depreciation




302,353


254,008



Amortization




63,053


57,146



Share-based payment expense




492


4,233



Unrealized foreign exchange on subsidiary loans




18,823


(59,254)



Decrease in non-current severance accrual




-


(148,750)



Increase in long term incentive accrual




223,233


79,182



Disposal of property and equipment




4,932


14,444



Decrease (increase) in accounts receivable




79,475


(1,439,459)



Increase in prepaid expenses and other assets




(39,530)


(273,218)



Decrease in accounts payable 




(182,701)


(42,539)



(Decrease) increase in income taxes payable 




(1,759,775)


33,257



(Decrease) increase in compensation payable




(2,112,954)


1,937,878



Payment of share-based compensation




(597,589)


(330,313)



(Decrease) increase in deferred revenue




(761,122)


183,422

Net cash (used in) provided by operating activities




(3,435,105)


1,344,889








Investment activities








Acquisition of business, net of cash acquired




(1,002,794)


-


Increase in marketable securities




(27,453)


(4,000,960)


(Increase) decrease in advances




(111,351)


86,464


Increase in restricted cash




(31,246)


(1,638)


Additions to property and equipment




(377,938)


(445,268)

Net cash used in investing activities




(1,550,782)


(4,361,402)








Financing activities








Dividend payments




(1,218,519)


(922,232)


Common share issuance




-


3,250,543

Net cash (used in) provided by investing activities




(1,218,519)


2,328,311








Effect of exchange rate changes on cash and cash equivalents




589,728


196,379

Net decrease in cash and cash equivalents




(5,614,678)


(491,823)

Cash and cash equivalents, beginning of period




12,742,873


7,612,957

Cash and cash equivalents, end of period




7,128,195


7,121,134

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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