The Caldwell Partners International Issues Fiscal 2014 Second Quarter Financial Results

• Year-over-year second quarter revenue increased 34% to $9,158.
• Board declares ninth consecutive quarterly dividend - 1.75 cents per share.
  
  

TORONTO, April 10, 2014 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2014 second quarter ended February 28, 2014. 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
	2014	2013	2014	2013
Revenue	$9,158	$6,825	$19,497	$14,242
Expenses	$9,107	$7,484	$19,038	$14,953
Operating profit/(loss)	$50	$(659)	$458	$(711)
Investment income	$4	$7	$5	$9
Net profit/(loss) before tax	$54	$(652)	$463	$(702)
Net profit/(loss) after tax	$43	$(653)	$436	$(709)
Net profit/(loss) per share	$0.002	$(0.038)	$0.024	$(0.041)

"This is the fourth consecutive quarter in which we have seen strong revenue levels," said John N. Wallace, chief executive officer. "We are also experiencing positive gains in important metrics such as average fee, number of searches per partner and overall billings per partner."

Wallace continued: "We are getting consistent production out of our team in a market that is strengthening. We remain focussed and committed to making targeted, strategic additions to the partner and support teams to both broaden our client coverage capabilities and to continue to increase and sustain revenues and profitability. The recent addition of John Strackhouse (Philadelphia) to our partner team adds depth to our Technology, Industrial, and CEO/Board practices and will contribute positively to our second half revenues."

The Board of Directors today also declared the payment of a quarterly dividend of 1.75 cents per Common Share payable June 13, 2014 to shareholders of record on April 21, 2014.

Financial Overview (all numbers expressed in $000s)

• Operating revenue:
• Fiscal 2014 second quarter operating revenue increased by 34% over the comparable period last year to $9,158 (2013: $6,825).
  • US revenues increased 45% (33% excluding a 12% favourable variance from exchange rate fluctuations) to $6,568 in the comparable period of 2013, driven primarily by increased search volumes, and to a lesser extent increased average fees.
    
    
  • Revenues from Canadian operations increased 12% to $2,590 in the current period, from higher average fees, partially offset by decreased search volumes.
• Year to date revenue increased 37% over the prior year to $19,497 (2013: $14,242).
  
  
• Operating profit:
• For the second quarter, higher year-over-year revenues ($2,332) partially offset by the related higher cost of sales ($1,264) and expenses ($359) resulted in the net increase of $709 to operating profit of $50 in the second quarter of fiscal 2014, up from an operating loss of $659 in the second quarter of fiscal 2013.
  
  
• Year to date, higher year-over-year revenues ($5,254) partially offset by the related higher cost of sales ($3,398) and expenses ($686) resulted in the net increase of $1,169 to operating profit of $458 in the first half of fiscal 2014, up from an operating loss of $659 in the first half of fiscal 2013.
  
  
• Net profit:
• The second quarter net earnings were $43 ($0.002 per share) in fiscal 2014, as compared to a net loss of $653 ($0.038 per share) in the comparable period a year earlier.
  
  
• Year to date net earnings were $436 ($0.024 per share) in fiscal 2014, as compared to a net loss of $709 ($0.041 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 one of North America's premier providers of executive search and has been for 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, Philadelphia, 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 INTERIM STATEMENTS OF FINANCIAL POSITION
(unaudited - in $Canadian)
									As at			As at
									February 28			August 31
									2014			2013
Assets
Current assets
	Cash and cash-equivalents								11,033,218			7,612,957
	Marketable securities								3,723,240			3,576,811
	Accounts receivable								4,605,139			7,088,555
	Prepaid expenses and other assets								1,241,440			1,060,998
									20,603,037			19,339,321
Non-current assets
	Restricted cash								255,916			255,012
	Advances								197,654			292,035
	Property and equipment								1,358,437			1,360,646
	Intangible assets								431,333			447,434
	Goodwill								1,093,647			1,039,922
Total assets									23,940,024			22,734,370
Liabilities
Current liabilities
	Accounts payable								1,722,341			1,345,146
	Compensation payable								6,904,379			9,156,182
	Dividends payable								367,513			255,983
	Taxes payable								46,082			13,741
	Deferred revenue								1,112,396			1,357,718
									10,152,711			12,128,770
Non-current liabilities
	Non-current severance accrual								43,750			148,750
	Share-based compensation accrual								144,892			231,231
									10,341,353			12,508,751
Equity attributable to owners of the Company
	Share Capital								7,352,337			4,080,020
	Contributed surplus								16,250,809			16,247,987
	Accumulated other comprehensive income								908,993			580,959
	Deficit								(10,913,468)			(10,683,347)
Total equity									13,598,671			10,225,619
Total liabilities and equity									23,940,024			22,734,370

The accompanying notes are an integral part of these consolidated interim financial statements. 

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS
(unaudited - in $Canadian)
	Three months ended			Six months ended
	February 28			February 28
	2014	2013		2014	2013
Revenues	9,157,785	6,825,047		19,496,334	14,242,258
Cost of sales	6,859,444	5,594,969		14,613,607	11,215,089
Gross profit	2,298,341	1,230,078		4,882,727	3,027,169
Expenses
General and administrative	2,122,238	1,745,077		4,146,203	3,454,791
Sales and marketing	222,361	151,899		383,014	278,856
Foreign exchange (gain) loss	(96,111)	(8,054)		(103,983)	4,805
	2,248,488	1,888,922		4,425,234	3,738,452
Operating profit (loss)	49,853	(658,844)		457,493	(711,283)
Investment income	3,894	6,707		5,319	9,230
Earnings before income tax	53,747	(652,137)		462,812	(702,053)
Income tax	10,750	514		26,683	6,619
Net earnings (loss) for the period attributable to owners of the Company	42,997	(652,651)		436,129	(708,672)
Earnings (loss) per share:
Basic and diluted	$0.002	($0.038)		$0.024	($0.042)
CONSOLIDATED INTERIM STATEMENTS OF
COMPREHENSIVE EARNINGS/(LOSS)
(unaudited - in $Canadian)
	Three months ended			Six months ended
	February 28			February 28
	2014	2013		2014	2013
Net earnings (loss) for the period	42,997	(652,651)		436,129	(708,672)
Other comprehensive income:
Unrealized gain on marketable securities	91,927	111,610		146,429	209,139
Cumulative translation adjustment	146,718	98,756		181,605	119,193
Comprehensive earnings (loss) for the period attributable to owners of the Company	281,642	(442,285)		764,163	(380,340)

The accompanying notes are an integral part of these consolidated interim financial statements. 

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW
(unaudited - in $Canadian)
			Six months ended
			February 28
			2014				2013
Cash flow provided by (used in)
Operating Activities
Net earnings (loss) for the period			436,129				(708,672)
Adjustments for:
Depreciation			162,715				189,123
Amortization			37,675				35,092
Stock-option expense			2,822				12,367
Unrealized foreign exchange on subsidiary loans			(84,748)				(117,180)
Decrease in non-current severance accrual			(105,000)				160,214
Decrease in share-based compensation accrual			(86,339)				-
Disposal of property and equipment			14,444				-
Changes in items of working capital
Decrease in accounts receivable			2,620,958				25,619
Decrease in income taxes receivable			-				1,500
Increase in prepaid expenses and other assets			(151,718)				(203,125)
Increase (decrease) in accounts payable			327,518				(929,658)
Increase in taxes payable			32,507				-
Decrease in compensation payable			(2,125,819)				(2,318,333)
Payment of share-based compensation			(330,013)				-
Decrease in deferred revenue			(271,075)				-
Net cash provided by (used in) operating activities			480,056				(3,853,053)
Investment Activities
Decrease in advances			111,033				80,181
Increase in restricted cash			(904)				(572)
Additions to property and equipment			(149,428)				(92,908)
Net cash used in investing activities			(39,299)				(13,299)
Financing Activities
Dividend payments			(554,719)				(510,765)
Common share issuance			3,272,317				44,800
Net cash proved by (used in) investing activities			2,717,598				(465,965)
Effect of exchange rate changes on cash and cash equivalents			261,906				98,893
Net increase in cash and cash equivalents			3,420,261				(4,233,424)
Cash and cash equivalents, beginning of period			7,612,957				6,494,246
Cash and cash equivalents, end of period			11,033,218				2,260,822

The accompanying notes are an integral part of these consolidated interim financial statements. 

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, 2012	(9,377,513)	4,016,020	16,245,848	(284,523)	406,815	11,006,647
Net loss for the six month period ended  February 28, 2013	(708,672)	-	-	-	-	(708,672)
Dividend payments declared	(511,965)	-	-	-	-	(511,965)
Employee stock option plan share issue	-	64,000	(14,776)	-	-	49,224
Share-based payment expense	-	-	7,942	-	-	7,942
Change in unrealized gains on marketable securities available for sale	-	-	-	-	209,139	209,139
Change in cumulative translation adjustment	-	-	-	119,193	-	119,193
Balance - February 28, 2013	(10,598,150)	4,080,020	16,239,014	(165,330)	615,954	10,171,508
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

The accompanying notes are an integral part of these consolidated interim financial statements. 

SOURCE: The Caldwell Partners International Inc.

Investors & Analysts: 
Chris Beck, CPA, Chief Financial Officer
The Caldwell Partners International
[email protected]
+1.617.934.1843

Media:
Caroline Lomot, Director of Marketing
The Caldwell Partners International
[email protected]
+1.416.934.2239