The Caldwell Partners International Issues Fiscal 2014 First Quarter Financial Results

• Year-over-year first quarter revenue increase of 39%.
• First quarter operating income is $408K.
• Board declares 1.75 cent quarterly dividend.

TORONTO, Jan. 8, 2014 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2014 first quarter ended November 30, 2013. 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  November 30
	2014	2013
Operating revenue	10,339	7,417
Expenses	9,931	7,469
Operating profit/loss	408	(52)
Investment income	1	3
Net profit/loss before tax	409	(50)
Net profit/loss after tax	393	(56)
Net profit/loss per share	$0.023	($0.03)

"We are encouraged by the strengthening booking activity and trend over the last half year, and pleased with the solid start to the fiscal year," said John N. Wallace, chief executive officer. "While we still expect some volatility from quarter to quarter based on our size, we remain confident regarding the long-term prospects for executive search. We will continue to seek out and make calculated investments in the firm to grow it in terms of both revenue and sustainable profitability, focusing on improving our overall market and industry sector presence with targeted, strategic additions to the team when and where it makes financial sense."

Wallace continued: "The near unanimous participation of the Partner team in the recently announced private placement of approximately 4.0 million common shares of the Corporation bodes well for the long-term commitment that our people have to the organization and its ongoing growth and success."

The Board of Directors today also declared the payment of a quarterly dividend of 1.75 cents per Common Share payable March 14, 2014 to shareholders of record on January 20, 2014.

Financial Overview (all numbers expressed in $000s)

• Operating revenue:
• Fiscal 2014 first quarter operating revenue increased by 39% over the comparable period last year to $10,339 (2013: $7,417).
  
  
• US revenues increased 46% (39% excluding an 8% favourable variance from exchange rate fluctuations) to $6,543 in the comparable period of 2013, driven primarily by increased search volumes, partially offset by fewer average partners during the current year.
  
  
• Revenues from Canadian operations increased 29% to $3,795 in the current period, generated by higher average fees on consistent search volumes and number of partners.
• Operating profit:
• Higher year-over-year first quarter revenues ($2,922) partially offset by the related higher cost of sales ($2,134) and expenses ($327) resulted in the net increase of $460 to an operating profit of $408 in the first quarter of fiscal 2014 from an operating loss of $52 in the first quarter of fiscal 2013.
• Net profit:
• The first quarter net earnings were $393 ($0.023 per share) in fiscal 2014, as compared to a net loss of $56 ($0.003 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, 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
					November 30				August 31
					2013				2013
Assets
Current assets
	Cash and cash equivalents				9,573,745				7,612,957
	Marketable securities				3,631,313				3,576,811
	Accounts receivable				5,154,535				7,088,555
	Prepaid expenses and other current assets				895,840				1,060,998
					19,255,433				19,339,321
Non-current assets
	Restricted cash				255,381				255,012
	Advances				240,238				292,035
	Property and equipment				1,335,448				1,360,646
	Intangible assets				432,453				447,434
	Goodwill				1,048,811				1,039,922
Total assets					22,567,764				22,734,370
Liabilities
Current liabilities
	Accounts payable				1,132,879				1,345,146
	Compensation payable				9,237,091				9,156,182
	Dividends payable				298,736				255,983
	Taxes payable				29,474				13,741
	Deferrred revenue				1,080,485				1,357,718
					11,778,665				12,128,770
Non-current liabilities
	Non-current severance accrual				96,250				148,750
	Long-term incentive accrual				282,036				231,231
					12,156,951				12,508,751
Equity attributable to owners of the Company
	Share capital				4,080,020				4,080,020
	Contributed surplus				16,249,397				16,247,987
	Accumulated other comprehensive income				670,348				580,959
	Deficit				(10,588,952)				(10,683,347)
Total equity					10,410,813				10,225,619
Total liabilities and equity					22,567,764				22,734,370

 

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF LOSS
(unaudited - in $Canadian)
					Three months ended
					November 30
					2013			2012
Revenues					10,338,549			7,417,211
Cost of sales					7,754,163			5,620,120
Gross profit					2,584,386			1,797,091
Expenses
	General and administrative				2,023,965			1,709,714
	Sales and marketing				160,653			126,957
	Foreign exchange (gain) loss				(7,872)			12,859
					2,176,746			1,849,530
Operating profit (loss)					407,640			(52,439)
Investment income					1,425			2,523
Earnings (loss) before income taxes					409,065			(49,916)
Income tax					15,933			6,105
Net earnings (loss) for the period attribtuable to owners of the Company					393,132			(56,021)
Earnings (loss) per share:
	Basic and diluted				0.023			(0.003)
CONSOLIDATED INTERIM STATEMENTS OF
COMPREHENSIVE LOSS
(unaudited - in $Canadian)
					Three months ended
					November 30
					2013			2012
Net earnings (loss) for the period					393,132			(56,021)
Other comprehensive income:
	Unrealized gain on marketable securities (net of tax - $0)				54,502			97,529
	Cumulative translation adjustment (net of tax - $0)				34,887			20,437
Comprehensive earnings for the period attributable to owners of the Company					482,521			61,945

 

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW
(unaudited - in $Canadian)
								Three months ended
								November 30
								2013				2012
Cash flow provided by (used in)
Operating activities
	Net earnings (loss) for the period							393,132				(56,021)
	Adjustments for:
		Depreciation						78,291				91,327
		Amortization						18,414				17,486
		Share-based payment expense						1,410				8,604
		Unrealized foreign exchange on subsidiary loans						(16,286)				(14,928)
		Non-cash incentive compensation						50,805				42,906
		Deferred revenue						(279,814)				-
		Decrease in long-term incentive accrual						(52,500)				-
	Changes in items of working capital
		Decrease in accounts receivable						1,935,004				375,569
		Decrease in income taxes receivable						-				750
		Decrease in prepaid expenses and other assets						168,024				7,097
		Decrease in accounts payable						(216,809)				(555,827)
		Increase (decrease) in compensation payable						43,891				(802,086)
		Increase in dividends payable						42,753				-
		Increase in taxes payable						15,760				-
Net cash provided by (used in) operating activities								2,182,075				(885,123)
Investing activities
	Decrease in advances							53,625				53,912
	Increase in restricted cash							(369)				(601)
	Additions to property and equipment							(49,070)				(28,926)
Net cash provided by investing activities								4,186				24,385
Financing activities
	Dividend payments							(298,737)				(254,782)
	Share issuance from employee stock option plan							-				44,800
Net cash used in financing activities								(298,737)				(209,982)
Effect of exchange rate changes on cash and cash equivalents								73,264				32,563
Net increase (decrease) in cash and cash equivalents								1,960,788				(1,038,157)
Cash and cash equivalents, beginning of period								7,612,957				6,494,246
Cash and cash equivalents, end of period								9,573,745				5,456,089

 

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 three month period ended
November 30, 2012				(56,021)			-			-	-	-			(56,021)
Dividend payments declared				(255,983)			-			-	-	-			(255,983)
Employee stock option plan share issue				-			64,000			(14,776)	-	-			49,224
Share-based payment expense				-			-			4,180	-	-			4,180
Change in unrealized gains on marketable
securities available for sale				-			-			-	-	97,529			97,529
Change in cumulative translation adjustment				-			-			-	20,437	-			20,437
Balance - November 30, 2012				(9,689,517)			4,080,020			16,235,252	(264,086)	504,344			10,866,013
Balance - September 1, 2013				(10,683,347)			4,080,020			16,247,987	(99,623)	680,582			10,225,619
Net earnings for the three month period ended
November 30, 2013				393,132			-			-	-	-			393,132
Dividend payments declared				(298,737)			-			-	-	-			(298,737)
Share-based payment expense				-			-			1,410	-	-			1,410
Change in unrealized gain on
marketable securities available for sale				-			-			-	-	54,502			54,502
Change in cumulative translation adjustment				-			-			-	34,887	-			34,887
Balance - November 30, 2013				(10,588,952)			4,080,020			16,249,397	(64,736)	735,084			10,410,813

 

 

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