- Year-over-year third quarter revenue increased 34% to $12,359,000.
- Third quarter operating profit of $633,000.
- Board declares 10th consecutive quarterly dividend – 1.75 cents per share.
Toronto, Ontario – July 10, 2014 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2014 third quarter ended May 31, 2014. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars.
Financial Overview (all numbers expressed in $000s)
*Months Ended May 31
| Three Months Ended May 31 | Nine Months Ended May 31 | |||
| 2014 | 2013 | 2014 | 2013 | |
| Operating revenue | $12,359 | $9,223 | $31,855 | $23,465 |
|---|---|---|---|---|
| Expenses | 11,726 | 9,590 | 30,765 | 24,543 |
| Operating profit (loss) | 633 | (367) | 1,091 | (1,078) |
| Investment income | 6 | 2 | 11 | 11 |
| Net earnings (loss) before tax | 639 | (365) | 1,102 | (1,067) |
| Net earnings (loss) after tax | $639 | ($366) | $1,075 | ($1,075) |
| Net earnings (loss) per share | – | – | – | – |
| Basic | $0.030 | ($0.021) | $0.057 | ($0.063) |
| Diluted | $0.030 | ($0.021) | $0.056 | ($0.063) |
*Months Ended May 31
“Our team has delivered solid revenue and profitability results this quarter,” said John N. Wallace, chief executive officer. “We have continued to see gains in important metrics such as average fee and searches per partner, and our revenue levels on a per partner basis are at a new high, all of which is a testament to the commitment and ongoing engagement of our partner and support teams.”
Wallace continued: “With our partners operating at historically high productivity levels, continued growth in the business will come from significant investments in high quality partners and support teams in the areas and geographies that are important to our clients. Our growth strategy has always been fuelled by our determination to continually improve our service to our clients and to create sustainable value for our shareholders.”
The Board of Directors today also declared the payment of a quarterly dividend of 1.75 cents per Common Share payable September 12, 2014 to shareholders of record on July 21, 2014.
Operating revenue:
- Fiscal 2014 third quarter operating revenue increased by 34% over the comparable period last year to $12,359 (2013: $9,223).
- US revenues increased 48% (35% excluding a 13% favourable variance from exchange rate fluctuations) to $9,078 driven primarily by increased search volumes and average fees, offset by fewer average partners during the current year.
- Canadian revenues increased 10% to $3,281on higher average fees, and to a lesser extent higher search volumes with a consistent number of partners.
- Year to date revenue increased 36% over the comparable prior year period to $31,855 (2013: $23,465).
Operating profit:
- For the third quarter, higher year-over-year revenues ($3,136) partially offset by the related higher cost of sales ($2,086) and expenses ($50) resulted in the net increase of $1,000 to operating profit of $633 in the third quarter of fiscal 2014, up from an operating loss of $367 in the third quarter of fiscal 2013 (which included a severance expense accrual of $446).
- Year to date, higher year-over-year revenues ($8,390) partially offset by the related higher cost of sales ($5,485) and expenses ($737) resulted in the net increase of $2,169 to operating profit of $1,091 in the first three quarters of fiscal 2014, up from an operating loss of $1,078 in the first three quarters of fiscal 2013.
Net profit:
- The third quarter net earnings were $639 ($0.032 per share) in fiscal 2014, as compared to a net loss of $366 ($0.021 per share) in the comparable period a year earlier.
- Year to date net earnings were $1,075 ($0.057 per share) in fiscal 2014, as compared to a net loss of $1,075 ($0.063 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
+1 214 765 7839
