• Firm posts third quarter revenues that were 35% higher than second quarter.
• Year-over-year third quarter revenue decline of 1%.
• Board declares 1.5 cent quarterly dividend.
Toronto, Ontario– July 11, 2013 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2013 third quarter ended May 31, 2013. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars.
*Months Ended May 31
| Three Months Ended May 31 | Nine Months Ended May 31 | |||
| 2013 | 2012 | 2013 | 2012 | |
| Operating revenue | $9,223 | $9,357 | $23,465 | $23,847 |
|---|---|---|---|---|
| Expenses | 9,590 | 8,647 | 24,532 | 23,784 |
| Operating profit (loss) | (367) | 710 | (1,078) | 63 |
| Investment income | 2 | 1 | 11 | 10 |
| Net earnings (loss) before tax | (365) | 711 | (1,067) | $73 |
| Net earnings (loss) after tax | ($366) | $711 | ($1,075) | $25 |
| Net earnings (loss) per share | ($ 0.021) | $ 0.040 | ($0.063) | $0.001 |
*Months Ended May 31
“Although revenues were relatively flat year-over-year, we are encouraged by the strong increase in booking activity that led to a 35% increase sequentially” said John Wallace, chief executive officer. “Though we have historically seen rising revenue trends in the back half of the year compared to the first half, we are encouraged by the magnitude of the increase from Q2 to Q3.”
Wallace added: “We continue to see difficult market conditions and the pressures that come from operating in slower-growing economies. However, we have seen these conditions stabilize during the current quarter, with notable strengthening in the number of new searches. We remain focused on growth opportunities through enhanced business development and marketing initiatives and select hires of high caliber search professionals.”
The Board of Directors today also declared the payment of a quarterly dividend of 1.5 cents per Common Share payable September 13, 2013 to shareholders of record on July 22, 2013.
Financial Highlights (all numbers expressed in $000s)
Operating revenue:
- Sequentially, third quarter revenue was up $2,398, or 35% over second quarter revenue, driven by a large increase in new search volumes. Revenue decreased by 1% over the comparable period last year to $9,223. The slight revenue decline year over year is attributable to the US business, which was down 7% in the third quarter and 10% through nine months, on lower average search fees.
- Revenues in Canada were up 12% in the third quarter, and up 15% through nine months due to very strong search volumes.
- For the nine months ended May 31, 2013 US revenues represent 65% of consolidated revenues versus 70% a year ago driven by Canada’s increasing search volumes on higher per partner productivity.
Operating profit:
- Lower year-over-year third quarter revenues ($134) coupled with higher cost of sales ($424) and expenses ($518 which includes an employee severance of $446) resulted in the decline in operating profit to a loss of $367.
- Excluding severance, the company posted third quarter operating profit of $79.
Net earnings:
- The year-to-date net loss before tax increased to $1,067 in fiscal 2013 from $73 of net earnings in the comparable period a year ago.
- The third quarter net loss before income tax fell to $365 in fiscal 2013 from a profit of $711 in fiscal 2012, the result of the revenue decline, increased Cost of Sales and Expenses and $446 of severance expense noted in the above discussion.
Over the past three years, The Caldwell Partners has transformed from a respected, strictly Canadian brand to a firm with a strong North American presence. At the end of the third quarter of fiscal 2013, the firm now has 23 of its total 34 partners located in six American offices, and has established strategic alliances with executive search firms based in London and Hong Kong.
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
Click to read full financial statement
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 www.caldwell.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.
For further information, please contact:
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
+1 416 934 2239
