- Year-over-year second quarter revenue increased 34% to $9,158.
- Board declares ninth consecutive quarterly dividend – 1.75 cents per share.
Toronto, Ontario– April 10, 2014 – 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)
*Months Ended February 28
| Three Months Ended Feb 28 | Six Months Ended Feb 28 | |||
| 2014 | 2013 | 2014 | 2013 | |
| Operating 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) |
*Months Ended February 28
“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
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 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.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
