The Caldwell Partners Reports Fiscal 2007 Second-Quarter Financial Results; Declares Quarterly Cash Dividend



    TORONTO, April 9 /CNW/ - The Caldwell Partners International Inc. (TSX:
CWL.A), the leading Canadian executive search firm, today reported its
financial results for the second quarter and six months ended February 28,
2007.
    The company's Board of Directors also declared a dividend for the fiscal
2007 second quarter of $0.02 per Class A non-voting and Class B voting share
payable on May 17, 2007 to shareholders of record on May 7, 2007. Based on the
closing price of the company's Class A shares on April 4, 2007, the dividend
represents an annualized yield of approximately 5.3 percent.

    
    Fiscal 2007 Second Quarter Highlights
        -  Operating revenue(1) increased 28% to $3,846,124 compared to
           $2,994,842 in Q2 2006
        -  New business bookings continued upward trend
        -  Additional new professionals joined firm as part of growth
           strategy
        -  Net earnings increased 44% to $321,134 compared to $222,457
           in Q2 2006
    

    "As expected, increased new business activity in our first quarter led to
stronger second quarter operating revenue and income," said C. Douglas
Caldwell, Chairman and Chief Executive Officer of The Caldwell Partners. "This
new business momentum continued into our second quarter, with new business
bookings substantially ahead compared to the second quarter a year ago."
    "We believe our second quarter results and recent new business bookings
demonstrate tangible market opportunities," added Mr. Caldwell. "We remain
focused on driving our utilization rates by expanding our relationships with
existing clients and pursuing new client engagements. Looking ahead, we are
committed to leveraging our brand and growing our team of professionals, to
drive organic growth, add complementary services and enter new markets."

    Financial Results

    For the three months ended February 28, 2007, operating revenue(1)
increased 28% to $3,846,124 compared to operating revenue(1) $2,994,842, in
the second quarter a year ago. The 28% increase in revenue is the result of
strong new business activity in the first quarter which, given the company's
method of recognizing revenue over a three-month period, is now being realized
in the second quarter.
    Total expenses, including employee compensation, general and
administrative, and amortization, rose 23% to $3,557,449 from $2,891,943 in
the second quarter a year ago. Increased total expenses resulted from higher
variable and fixed compensation costs, reflecting the additional investment in
new search professionals, and higher legal expenses.
    Operating income(1) for the second quarter of 2007 totaled $288,675,
compared to operating income of $102,899 in the second quarter of fiscal 2006.
Increased operating income reflects higher operating revenue for the period.
    Investment income for the second quarter of 2007 increased to $160,165
from $157,889 in the second quarter of fiscal 2006.
    Net earnings for the period were $321,134 or $0.02 cents per share,
compared to net earnings of $222,457 or $0.01 cents per share in the second
quarter a year ago.
    Operating revenue(1) for the six months ended February 28, 2007 was
$6,955,305, compared to $6,941,108 for the same period in fiscal 2006. Total
expenses, including executive compensation, general and administrative, and
amortization were $6,903,073 compared to $6,576,993 for the same period a year
ago. Operating income(1) for the first half of fiscal 2007 totaled $52,232
compared to $364,115 the same period in 2006. Investment income for the first
half of 2007 decreased slightly to $292,869, from $328,896 in the first half
of 2006. Net earnings for the six-month period were $273,879, compared to
$549,766 for the same period a year ago.
    As at February 28, 2007, the Company had cash and cash equivalents of
$5,023,062 and marketable securities of $13,599,842. The Company had no
long-term debt as at February 28, 2007.

    Corporate

    The Caldwell Partners' vision is to move beyond its current position as
Canada's leading, national executive search firm towards becoming the premier
Canadian-based, diversified human capital services organization. The company
has initiated a four-year growth plan to achieve this. The primary strategic
objectives involve leveraging The Caldwell Partners brand to:

    
        -  Launch complementary services; and,
        -  Enter new markets, including new regions and market segments,
           including mid-market search which comprises salary ranges between
           $65,000 to $100,000.
    

    In support of these initiatives and ongoing organic growth, The Caldwell
Partners is actively recruiting new search professionals. The company is also
evaluating acquisition opportunities and/or strategic alliances.
    "To carry out this growth plan, we will need to make significant
investments and incur additional costs for at least the next two or three
years. The implementation of these initiatives may have an adverse effect on
our margins, operating, and net earnings during this period," added Mr.
Caldwell. "We are confident we have the financial strength, including our cash
reserves, to execute our plans and build long term value for our
shareholders."

    (1) 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.

    About The Caldwell Partners
    ---------------------------

    The Caldwell Partners International Inc., founded in 1970, was Canada's
first executive search firm. Today it is the only truly national human capital
services company, serving clients across Canada in Halifax, Montreal, Ottawa,
Toronto, Winnipeg, 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 caliber 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 2006, the Canada's Outstanding CEO of the Year(TM) and
Canada's Top 40 Under 40(TM) programs marked their respective 17th and 12th
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 STATEMENT OF EARNINGS
    (unaudited)
    -------------------------------------------------------------------------
                                Three months               Six months
                              ended February 28         ended February 28
                              2007         2006         2007         2006
    -------------------------------------------------------------------------
    Operating revenue      $3,846,124   $2,994,842   $6,955,305   $6,941,108

    Expenses
      Employee compensation,
       general and
       administration       3,481,304    2,805,152    6,748,605    6,405,491
      Amortization             76,145       86,791      154,468      171,502
    -------------------------------------------------------------------------
                            3,557,449    2,891,943    6,903,073    6,576,993
    -------------------------------------------------------------------------
                              288,675      102,899       52,232      364,115

    Investment income         160,065      157,889      292,869      328,896
    -------------------------------------------------------------------------
    Net income before tax     448,740      260,788      345,101      693,011

    Provision for income
     taxes:
      Current                 124,592       45,231       68,208      148,384
      Future                    3,014       (6,900)       3,014       (5,139)
    -------------------------------------------------------------------------
                              127,606       38,331       71,222      143,245
    -------------------------------------------------------------------------

    Net earnings for
     the period              $321,134     $222,457     $273,879     $549,766
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per share         $0.019       $0.013       $0.016       $0.032
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED BALANCE SHEET
    (unaudited)
    -------------------------------------------------------------------------
                                           As at February 28  As at August 31
                                           2007         2006        2006
    -------------------------------------------------------------------------

    Assets
      Cash and short-term deposits      $5,023,062   $5,939,631  $10,005,443
      Accounts receivable                3,188,158    3,242,410    2,963,787
      Income taxes receivable              664,615    1,107,850      269,562
      Prepaid expenses                     208,602      177,026      146,590
    -------------------------------------------------------------------------
                                         9,084,437   10,466,917   13,385,382

      Marketable securities
       (market value at February 28,
       2007 equals $14,324,765)         13,599,842   12,346,900    9,569,342
      Loans receivable                     964,265      810,317      808,317
      Property and equipment             2,300,466    2,208,237    2,235,574
      Future income taxes                   21,027       79,542       24,041
    -------------------------------------------------------------------------
                                       $25,970,037  $25,911,913  $26,022,656
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
      Accounts payable and
       accrued liabilities              $3,287,919   $2,614,959   $2,951,041
      Deferred revenue                     268,827      333,012      250,112
    -------------------------------------------------------------------------
                                         3,556,746    2,947,971    3,201,153

    Future income taxes                    314,968      369,330      314,968

    Shareholders' equity                22,098,323   22,594,612   22,506,535
    -------------------------------------------------------------------------
                                       $25,970,037  $25,911,913  $26,022,656
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    THE CALDWELL PARTNERS INTERNATIONAL INC.

    CONSOLIDATED STATEMENT OF
    CHANGES IN CASH FLOWS
    (unaudited)
    -------------------------------------------------------------------------
                                Three months               Six months
                              ended February 28         ended February 28
                              2007         2006         2007         2006
    -------------------------------------------------------------------------
    Operating Activities
      Net earnings for
       the period            $321,134     $222,457     $273,879     $549,766
      Items not affecting
       cash:
        Amortization           76,145       86,791      154,468      171,502
        (Gain) loss on sale
         of investments       (12,500)      34,447       (2,200)      24,741
        Provision for
         impairment of
         investments                -       30,000            -       60,000
        Future income taxes     3,014       (6,900)       3,014       (5,139)
    -------------------------------------------------------------------------
                              387,793      366,795      429,161      800,870

    Net increase in working
     capital balances
     related to operations   (178,884)  (1,167,948)    (481,791)  (1,242,510)
    -------------------------------------------------------------------------
                              208,909     (801,153)     (52,630)    (441,640)
    -------------------------------------------------------------------------

    Investment Activities
      Proceeds on sale
       of marketable
       securities           2,068,150    1,581,197    2,318,150    1,878,403
      Additions to
       marketable
       securities          (2,906,350)    (731,208)  (6,346,450)  (1,242,237)
      Additions to
       property and
       equipment             (114,543)     (34,275)    (219,360)     (64,039)
    -------------------------------------------------------------------------
                             (952,743)     815,714   (4,247,660)     572,127
    -------------------------------------------------------------------------

    Financing Activities
      Dividends on Class A
       and B shares          (341,076)    (342,433)    (682,091)    (682,230)
    -------------------------------------------------------------------------

    Net decrease in cash
     during the period     (1,084,910)    (327,872)  (4,982,381)    (551,743)
    Cash and cash
     equivalents,
     beginning of period    6,107,972    6,267,503   10,005,443    6,491,374
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period         $5,023,062   $5,939,631   $5,023,062   $5,939,631
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    CONSOLIDATED STATEMENTS OF
    SHAREHOLDERS' EQUITY
    (unaudited)
    -------------------------------------------------------------------------
                                Three months               Six months
                              ended February 28         ended February 28
                              2007         2006         2007         2006
    -------------------------------------------------------------------------

    Balance, beginning
     of period            $22,118,265  $22,714,588  $22,506,535   22,727,076

    Net earnings for
     the period               321,134      222,457      273,879      549,766
    Dividends on Class A
     and Class B shares      (341,076)    (342,433)    (682,091)    (682,230)
    -------------------------------------------------------------------------

    Balance, end of
     period               $22,098,323  $22,594,612  $22,098,323  $22,594,612
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00003230E




For further information:

For further information: Bruce Wigle, Investor Relations, The Equicom
Group Inc., Tel: (416) 815-0700, 1-800-385-5451, ext. 228, Email:
bwigle@equicomgroup.com


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