The Caldwell Partners International Issues Fiscal 2015 First Quarter Financial Results
- Year-over-year first quarter revenue increase of 20%.
- First quarter operating income is $307,000.
- Board declares 2.0 cent quarterly dividend.
TORONTO, Jan. 8, 2015 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2015 first quarter ended November 30, 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)
Three Months Ended November 30, |
||
2014 |
2013 |
|
Revenue |
12,436 |
10,339 |
Operating expenses |
12,129 |
9,931 |
Operating profit |
307 |
408 |
Investment income |
13 |
1 |
Earnings before tax |
320 |
409 |
Net earnings |
277 |
393 |
Earnings per share |
$0.013 |
$0.023 |
"We have seen solid year-over-year growth in our quarterly revenues," said John N. Wallace, chief executive officer. "And while there will always be market fluctuations and economic uncertainties, our team is composed of truly experienced search people, who are well-equipped to weather turbulence in the marketplace."
Wallace continued: "Our partner and support teams continue to operate at extremely high productivity levels, and we remain focused on making targeted, strategic additions to our team. Our October 1, 2014 acquisition of London-based Hawksmoor Search Limited established our footprint into the European market and has created what we believe to be the premier insurance practice in the executive search industry."
The Board of Directors today also declared the payment of a quarterly dividend of 2.0 cents per Common Share payable on March 12, 2015 to shareholders of record on January 26, 2015.
Financial Overview (all numbers expressed in $000s)
- Operating revenue:
- Fiscal 2015 first quarter operating revenue increased by 20% (15% excluding a 5% variance from exchange rate fluctuations) over the comparable period last year to $12,436 (2014: $10,339).
- US revenues increased 24% (16% excluding an 8% favourable variance from exchange rate fluctuations) to $8,144 (2014: $6,543), driven primarily by an increase in search volumes partially offset by lower average fees during the current year.
- Revenues from Canadian operations increased 12% to $4,256 (2104: $3,795) in the current period, generated by higher search volumes partially offset by lower average fees.
- Revenues from the Europe operations were $36 for the Company's period of ownership.
- Operating profit:
- Higher year-over-year first quarter revenues ($2,098) offset by the related higher cost of sales on the increased revenue ($1,418) and increased expenses ($780) pertaining to higher share-based compensation resulting from a rise in the company's share price to $1.59 at the end of the first quarter of fiscal 2015 (2014: $0.84), the costs of the added European operations and the amount and timing of the Company's annual partner conference resulted in operating profit of $307 in the first quarter of fiscal 2015, a decrease of $101 from $408 in the first quarter
of fiscal 2014. - On a segment basis, $105 of operating profit was from the US, $297 was from Canada and ($95) was from Europe.
- Higher year-over-year first quarter revenues ($2,098) offset by the related higher cost of sales on the increased revenue ($1,418) and increased expenses ($780) pertaining to higher share-based compensation resulting from a rise in the company's share price to $1.59 at the end of the first quarter of fiscal 2015 (2014: $0.84), the costs of the added European operations and the amount and timing of the Company's annual partner conference resulted in operating profit of $307 in the first quarter of fiscal 2015, a decrease of $101 from $408 in the first quarter
- Net profit:
- The first quarter net earnings were $277 ($0.013 per share) in fiscal 2015, as compared to $393 ($0.023 per share) in the comparable period a year earlier.
- The first quarter net earnings were $277 ($0.013 per share) in fiscal 2015, as compared to $393 ($0.023 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 |
||||||||||
November 30 |
August 31 |
|||||||||
2014 |
2014 |
|||||||||
Assets |
||||||||||
Current assets |
||||||||||
Cash and cash equivalents |
9,711,597 |
12,742,873 |
||||||||
Marketable securities |
7,792,695 |
7,809,403 |
||||||||
Accounts receivable |
7,096,236 |
8,141,145 |
||||||||
Prepaid expenses and other current assets |
1,476,888 |
1,364,383 |
||||||||
26,077,416 |
30,057,804 |
|||||||||
Non-current assets |
||||||||||
Restricted cash |
463,286 |
452,138 |
||||||||
Advances |
301,301 |
195,033 |
||||||||
Property and equipment |
1,614,307 |
1,609,811 |
||||||||
Intangible assets |
384,385 |
384,470 |
||||||||
Goodwill |
2,812,813 |
1,072,315 |
||||||||
Deferred income taxes |
2,571,476 |
2,443,435 |
||||||||
Total assets |
34,224,984 |
36,215,006 |
||||||||
Liabilities |
||||||||||
Current liabilities |
||||||||||
Accounts payable |
1,481,583 |
1,399,983 |
||||||||
Compensation payable |
15,148,253 |
15,752,702 |
||||||||
Dividends payable |
425,503 |
367,513 |
||||||||
Income taxes payable |
- |
1,790,091 |
||||||||
Due to seller of acquired business |
599,689 |
- |
||||||||
Contingent consideration |
261,245 |
- |
||||||||
Deferrred revenue |
739,893 |
1,974,144 |
||||||||
18,656,166 |
21,284,433 |
|||||||||
Non-current liabilities |
||||||||||
Compensation payable |
472,824 |
552,799 |
||||||||
Contingent consideration |
251,197 |
- |
||||||||
19,380,187 |
21,837,232 |
|||||||||
Equity attributable to owners of the Company |
||||||||||
Share capital |
7,710,063 |
7,330,563 |
||||||||
Contributed surplus |
16,253,795 |
16,253,631 |
||||||||
Accumulated other comprehensive income |
1,147,428 |
911,417 |
||||||||
Deficit |
(10,266,489) |
(10,117,837) |
||||||||
Total equity |
14,844,797 |
14,377,774 |
||||||||
Total liabilities and equity |
34,224,984 |
36,215,006 |
||||||||
The accompanying notes are an integral part of these consolidated interim financial statements. |
THE CALDWELL PARTNERS INTERNATIONAL INC. |
||||||||||
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS |
||||||||||
(unaudited - in $Canadian) |
||||||||||
Three months ended |
||||||||||
November 30 |
||||||||||
2014 |
2013 |
|||||||||
Revenues |
12,436,201 |
10,338,549 |
||||||||
Cost of sales |
9,172,269 |
7,754,163 |
||||||||
Gross profit |
3,263,932 |
2,584,386 |
||||||||
Expenses |
||||||||||
General and administrative |
2,673,908 |
2,023,965 |
||||||||
Sales and marketing |
273,218 |
160,653 |
||||||||
Foreign exchange loss (gain) |
10,115 |
(7,872) |
||||||||
2,957,241 |
2,176,746 |
|||||||||
Operating profit |
306,691 |
407,640 |
||||||||
Investment income |
12,871 |
1,425 |
||||||||
Earnings before income taxes |
319,562 |
409,065 |
||||||||
Income tax expense |
42,711 |
15,933 |
||||||||
Net earnings for the period attribtuable to owners of the Company |
276,851 |
393,132 |
||||||||
Earnings per share: |
||||||||||
Basic and diluted |
0.013 |
0.023 |
||||||||
CONSOLIDATED INTERIM STATEMENTS OF |
||||||||||
COMPREHENSIVE EARNINGS |
||||||||||
(unaudited - in $Canadian) |
||||||||||
Three months ended |
||||||||||
November 30 |
||||||||||
2014 |
2013 |
|||||||||
Net earnings for the period |
276,851 |
393,132 |
||||||||
Other comprehensive income: |
||||||||||
Items that may be reclassified subsequently to net earnings |
||||||||||
Unrealized (loss) gain on marketable securities |
(16,708) |
54,502 |
||||||||
Cumulative translation adjustment |
252,719 |
34,887 |
||||||||
Comprehensive earnings for the period attributable to owners of the Company |
512,862 |
482,521 |
||||||||
The accompanying notes are an integral part of these consolidated interim financial statements. |
THE CALDWELL PARTNERS INTERNATIONAL INC. |
||||||||||
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW |
||||||||||
(unaudited - in $Canadian) |
||||||||||
Three months ended |
||||||||||
November 30 |
||||||||||
2014 |
2013 |
|||||||||
Cash flow (used in) provided by |
||||||||||
Operating activities |
||||||||||
Net earnings for the period |
276,851 |
393,132 |
||||||||
Adjustments for: |
||||||||||
Depreciation |
92,714 |
78,291 |
||||||||
Amortization |
19,802 |
18,414 |
||||||||
Share-based payment expense |
164 |
1,410 |
||||||||
Unrealized foreign exchange on subsidiary loans |
14,296 |
(16,286) |
||||||||
Non-cash incentive compensation |
- |
50,805 |
||||||||
Deferred revenue |
(1,281,863) |
(279,814) |
||||||||
Decrease in long-term incentive accrual |
(79,975) |
(52,500) |
||||||||
Decrease in accounts receivable |
1,479,799 |
1,935,004 |
||||||||
(Increase) decrease in prepaid expenses and other assets |
(38,200) |
168,024 |
||||||||
Decrease in accounts payable |
(22,074) |
(216,809) |
||||||||
(Decrease) increase in compensation payable |
(1,014,425) |
43,891 |
||||||||
(Decrease) increase in taxes payable |
(1,832,637) |
15,760 |
||||||||
Net cash (used in) provided by operating activities |
(2,385,548) |
2,139,322 |
||||||||
Investing activities |
||||||||||
Acquisition of business, net of cash acquired |
(418,966) |
- |
||||||||
(Increase) decrease in advances |
(77,251) |
53,625 |
||||||||
Increase in restricted cash |
(943) |
(369) |
||||||||
Additions to property and equipment |
(57,658) |
(49,070) |
||||||||
Net cash (used in) provided by investing activities |
(554,818) |
4,186 |
||||||||
Financing activities |
||||||||||
Dividend payments |
(367,513) |
(255,984) |
||||||||
Net cash used in financing activities |
(367,513) |
(255,984) |
||||||||
Effect of exchange rate changes on cash and cash equivalents |
276,603 |
73,264 |
||||||||
Net (decrease) increase in cash and cash equivalents |
(3,031,276) |
1,960,788 |
||||||||
Cash and cash equivalents, beginning of period |
12,742,873 |
7,612,957 |
||||||||
Cash and cash equivalents, end of period |
9,711,597 |
9,573,745 |
||||||||
The accompanying notes are an integral part of these consolidated interim financial statements. |
THE CALDWELL PARTNERS INTERNATIONAL INC. |
||||||
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY |
||||||
(unaudited - in $Canadian) |
||||||
Accumulated Other Comprehensive |
||||||
Income (Loss) |
||||||
Unrealized |
||||||
Cumulative |
Gains (Loss) 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 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 |
Balance - September 1, 2014 |
(10,117,837) |
7,330,563 |
16,253,631 |
(797) |
912,214 |
14,377,774 |
Net earnings for the three month period ended |
||||||
November 30, 2014 |
276,851 |
- |
- |
- |
- |
276,851 |
Dividend payments declared |
(425,503) |
- |
- |
- |
- |
(425,503) |
Share-based payment expense |
- |
- |
164 |
- |
- |
164 |
Common share issuance |
- |
379,500 |
- |
- |
- |
379,500 |
Change in unrealized loss on |
||||||
marketable securities available for sale |
- |
- |
- |
- |
(16,708) |
(16,708) |
Change in cumulative translation adjustment |
- |
- |
- |
252,719 |
- |
252,719 |
Balance - November 30, 2014 |
(10,266,489) |
7,710,063 |
16,253,795 |
251,922 |
895,506 |
14,844,797 |
The accompanying notes are an integral part of these consolidated interim financial statements. |
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
Share this article