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.

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], +1.516.830.3535