The Caldwell Partners International Issues Fiscal 2012 Third Quarter Financial Results

  • Firm posts third quarter revenues 30% higher than second quarter.
  • Third quarter operating income is $710k.
  • Board declares 1.5 cents per share quarterly dividend

TORONTO, July 12, 2012 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2012 third quarter ended May 31, 2012. 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
May 31
Nine Months Ended
May 31  
  2012 2011 2012 2011
Operating revenue $9,356 $ 9,562 $23,847 $24,861
Expenses 8,646 9,048 23,784 25,223
Operating profit (loss) 710 514 $63 (362)
Investment income 1 20 10 51
Net earnings (loss) before tax 711 534 $73 ($311)
Net earnings (loss) after tax 711 $ 534 25 ($311)
Net earnings (loss) per share $ 0.042 $ 0.031 $0.001 ($0.018)

"This quarter's results were more in line with our overall expectations for the performance of the business," said John Wallace, chief executive officer. "As it relates to profitability, we achieved better results, with strong growth on both a year-over-year and sequential quarter basis.

We are as focused as ever on improving our overall market presence and competitiveness, making targeted, strategic additions to the team when and where it makes sense. Our growth strategy has been fuelled by our determination to continually improve our service to clients and to create value for shareholders, and we believe our recent distinction as fastest-growing executive search firm in North America is a testament to this."

The Board of Directors today also declared the payment of a quarterly dividend of 1.5 cents per Common Share payable September 14, 2012 to shareholders of record on July 23, 2012.

Financial Highlights (all numbers expressed in $000s)

  • Operating revenue:
    • Sequentially, 2012 third quarter revenues were 30% higher than those of the second quarter, but decreased by 2% over the comparable period last year to $9,356. The decrease is attributable to weakness in Canadian search revenues (down 16%) more than offsetting the growth in US search revenues (up 5%).
    • Revenues from US operations represent 71% or $6,686 of the third quarter total, increasing 5% from $6,367 in the comparable period of 2011.
    • Revenues from Canadian operations decreased 16% to $2,671 in the current period from $3,195 in the comparable period of 2011.
    • Fiscal 2012 nine month revenues decreased 4% over the same period a year earlier to $23,847.
    • For the nine months ended May 31, 2012 US revenues represent 70% of consolidated revenues.

  • Operating profit:
    • The year-to-date operating profit of $63 represents a significant improvement over the prior year's loss of $362.
    • Lower direct costs and a higher gross profit margin as compared to the comparable period of fiscal 2011 resulted in an operating profit of $710 for the quarter, 38% higher than the $514 earned in the previous year.

  • Net earnings:
    • The year-to-date net income before tax was $73 in fiscal 2012, a $384 improvement over the loss of $311 in the comparable period a year earlier.
    • The third quarter net income before tax was $711 in fiscal 2012 representing a 33% improvement over the $534 in the comparable period a year earlier.

  • Unencumbered Cash:
    • Unencumber cash at May 31, 2012 totals $6.0 up from $5.3 million at the end of the second quarter

Over the past two and a half years, Caldwell Partners has evolved from a respected Canadian brand to a firm with a strong North American presence. At the end of the second quarter of fiscal 2012, the firm now has three offices in Canada, six offices in the United States, and has established strategic alliances with executive search firms based in London and Hong Kong.

Operating revenue, gross profit/loss and operating profit/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.

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

About Caldwell Partners

Caldwell Partners is one of North America's premier providers of executive search and has been for more than 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 and partners 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 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.


(unaudited - in $Canadian)
            Three months ended   Nine months ended
            May 31   May 31
            2012 2011   2012 2011
Revenues           9,356,904 9,562,394   23,847,356 24,861,054
Cost of sales           6,759,218 7,240,249   18,346,280 19,785,351
Gross profit             2,597,686 2,322,145   5,501,076 5,075,703
  General and administrative           1,686,078 1,629,008   4,974,600 4,808,762
  Sales & marketing           204,643 153,952   513,061 479,087
  Foreign exchange (gain) loss           (3,440) 24,626   (49,857) 149,816
            1,887,281 1,807,586   5,437,804 5,437,665
Operating profit (loss)           710,405 514,559   63,272 (361,962)
Investment income             588 20,019   9,907 51,461
Earnings (loss) before income tax           710,993 534,578   73,179 (310,501)
Income tax           281 0   48,075 0
Net earnings (loss) for the period           710,712 534,578   25,104 (310,501)
Earnings (loss) per share                    
  Basic           $0.042 $0.031   $0.001 ($0.018)
  Diluted           $0.040 $0.030   $0.001 ($0.018)
(unaudited - in $Canadian)
            Three months ended   Nine months ended
            May 31   May 31
            2012 2011   2012 2011
Net earnings (loss) for the period           710,712 534,578   25,104 (310,501)
Other comprehensive income:                    
  Unrealized gain on marketable securities (net of tax - $0)           51,906 49,075   97,196 228,352
  Cumulative translation adjustment (net of tax - $0)           126,996 (11,833)   185,929 (378,084)
Comprehensive earnings (loss) for the period           889,614 571,820   308,229 (460,233)



(unaudited - in $Canadian)
                  As at As at
                  May 31 August 31
                  2012 2011
Current assets                    
  Cash and cash-equivalents                 3,296,135 6,944,084
  Marketable securities                  3,224,023 3,126,827
  Accounts receivable                 7,406,554 6,537,347
  Income taxes receivable                 48,708 80,053
  Prepaid expenses and other assets                 1,050,208 1,178,793
                  15,025,628 17,867,104
Non-current assets                    
  Restricted cash                 250,000 250,000
  Loans receivable                 159,553 162,543
  Property and equipment                 1,615,569 1,700,721
  Intangible assets                  549,263 597,322
  Goodwill                  1,020,072 967,236
  Deferred income taxes                 76,808 72,834
Total assets                 18,696,893 21,617,760
Current liabilities                    
  Accounts payable                  8,179,186 10,724,427
  Current portion of incentive accrual                  0 530,250
                  8,179,186 11,254,677
Non-current liabilities                    
  Long-term incentive accrual                  143,361 53,490
                  8,322,547 11,308,167
  Share capital                 4,016,020 16,064,078
  Contributed surplus                  16,238,763 4,179,399
  Accumulated other comprehensive income (loss)                 198,198 (84,927)
  Deficit                  (10,078,635) (9,848,957)
Total equity                 10,374,346 10,309,593
Total liabilities and equity                 18,696,893 21,617,760




SOURCE The Caldwell Partners International Inc.

For further information:

Investors & Analysts: 
Karen Richards, CA, Chief Financial Officer
The Caldwell Partners International

Caroline Lomot, Director of Marketing
The Caldwell Partners International

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