The Caldwell Partners International Issues Fiscal 2015 Second Quarter Financial Results
- Year-over-year second quarter revenue increase of 30%.
- Second quarter operating income is $511,000.
- Board declares 2.0 cent quarterly dividend.
TORONTO, April 9, 2015 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2015 second quarter ended February 28, 2015. 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 |
Six Months Ended |
|||
2015 |
2014 |
2015 |
2014 |
|
Revenue |
$11,874 |
$9,158 |
$24,310 |
$19,496 |
Operating expenses |
$11,363 |
$9,108 |
$23,492 |
$19,039 |
Operating profit |
$511 |
$50 |
$818 |
$458 |
Investment income |
$11 |
$4 |
$24 |
$5 |
Earnings before tax |
$522 |
$54 |
$842 |
$463 |
Net earnings |
$282 |
$43 |
$559 |
$436 |
Earnings per share |
$0.013 |
$0.002 |
$0.026 |
$0.024 |
"Our partner and support team continued the strong momentum from previous quarters, delivering a sizeable increase in revenue and a positive contribution to operating profit," said John N. Wallace, chief executive officer. "We are very pleased with the way our entire team is operating, and are feeling confident about continuing our performance for the remainder of the fiscal year."
Wallace added: "We continue to focus on making targeted, strategic additions of high calibre partners in key sectors and practices to enhance our value proposition to our clients, as well as our overall market presence and industry competitiveness. The recent additions of Rodes Cole (Atlanta) and Glenn Buggy (Stamford/New York) to our partner team add significant depth to both our professional services and financial services practices and will contribute positively to our second half revenues."
The Board of Directors today also declared the payment of a quarterly dividend of 2.0 cents per Common Share payable on June 15, 2015 to shareholders of record on April 20, 2015.
Financial Overview (in $000s except per share amounts)
- Operating revenue:
- Fiscal 2015 second quarter operating revenue increased by 30% (20% excluding a 10% variance from exchange rate fluctuations) over the comparable period last year to $11,874 (2014: $9,158).
- US revenues increased 19% (6% excluding a 13% favourable variance from exchange rate fluctuations) to $7,800 (2014: $6,568), driven by an increase in the average number of search partners and search volumes during the current year, partially offset by lower average fees.
- Revenues from Canadian operations increased 45% to $3,758 (2104: $2,590) in the current period, generated by higher search volumes offset partially by lower average fees
- Revenues from the Europe operations were $316
- Year to date revenue increased 25% over the prior year to $24,310 (2014: $19,496).
- Fiscal 2015 second quarter operating revenue increased by 30% (20% excluding a 10% variance from exchange rate fluctuations) over the comparable period last year to $11,874 (2014: $9,158).
- Operating profit:
- For the second quarter, higher year-over-year revenues ($2,716) offset by the related higher compensation and cost of sales ($1,992) and expenses ($264) resulted in operating profit of $511 in the second quarter of fiscal 2015, an increase of $461 from $50 in the second quarter of fiscal 2015.
- On a segment basis, $351 of operating profit was from the US, $118 was from Canada and $42 was from Europe.
- Year to date, higher year-over-year revenues ($4,814) partially offset by the related higher compensation and cost of sales ($3,410) and expenses ($1,044) resulted in the net increase of $360 to operating profit of $818 in the first half of fiscal 2015, up from $458 in the first half of fiscal 2014.
- Net profit:
- The second quarter net earnings were $282 ($0.013 per share) in fiscal 2015, as compared to $43 ($0.002 per share) in the comparable period a year earlier.
- Year to date net earnings were $559 ($0.026 per share) in fiscal 2015, as compared to $436 ($0.024 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 |
As at |
||||
February 28 |
August 31 |
||||
2015 |
2014 |
||||
Assets |
|||||
Current assets |
|||||
Cash and cash-equivalents |
3,742,122 |
12,742,873 |
|||
Marketable securities |
7,828,876 |
7,809,403 |
|||
Accounts receivable |
8,172,709 |
8,141,145 |
|||
Income taxes receivable |
65,733 |
- |
|||
Prepaid expenses and other assets |
1,542,136 |
1,364,383 |
|||
21,351,576 |
30,057,804 |
||||
Non-current assets |
|||||
Restricted cash |
483,461 |
452,138 |
|||
Advances |
293,556 |
195,033 |
|||
Property and equipment |
1,758,855 |
1,609,811 |
|||
Intangible assets |
398,601 |
384,470 |
|||
Goodwill |
3,055,390 |
1,072,315 |
|||
Deferred income taxes |
2,817,517 |
2,443,435 |
|||
Total assets |
30,158,956 |
36,215,006 |
|||
Liabilities |
|||||
Current liabilities |
|||||
Accounts payable |
2,035,853 |
1,399,983 |
|||
Compensation payable |
10,104,230 |
15,752,702 |
|||
Dividends payable |
425,503 |
367,513 |
|||
Income taxes payable |
- |
1,790,091 |
|||
Contingent consideration |
263,858 |
- |
|||
Deferred revenue |
1,158,927 |
1,974,144 |
|||
13,988,371 |
21,284,433 |
||||
Non-current liabilities |
|||||
Compensation payable |
582,681 |
552,799 |
|||
Contingent consideration |
253,709 |
- |
|||
14,824,761 |
21,837,232 |
||||
Equity attributable to owners of the Company |
|||||
Share Capital |
7,710,063 |
7,330,563 |
|||
Contributed surplus |
16,253,959 |
16,253,631 |
|||
Accumulated other comprehensive income |
1,780,458 |
911,417 |
|||
Deficit |
(10,410,285) |
(10,117,837) |
|||
Total equity |
15,334,195 |
14,377,774 |
|||
Total liabilities and equity |
30,158,956 |
36,215,006 |
|||
THE CALDWELL PARTNERS INTERNATIONAL INC. |
|||||||||
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS |
|||||||||
(unaudited - in $Canadian) |
|||||||||
Three months ended |
Six months ended |
||||||||
February 28 |
February 28 |
||||||||
2015 |
2014 |
2015 |
2014 |
||||||
Revenues |
11,873,560 |
9,157,785 |
24,309,761 |
19,496,334 |
|||||
Cost of sales |
8,850,549 |
6,859,444 |
18,022,818 |
14,613,607 |
|||||
Gross profit |
3,023,011 |
2,298,341 |
6,286,943 |
4,882,727 |
|||||
Expenses |
|||||||||
General and administrative |
2,314,810 |
2,122,238 |
4,988,718 |
4,146,203 |
|||||
Sales and marketing |
170,631 |
222,361 |
443,849 |
383,014 |
|||||
Foreign exchange loss (gain) |
26,831 |
(96,111) |
36,946 |
(103,983) |
|||||
2,512,272 |
2,248,488 |
5,469,513 |
4,425,234 |
||||||
Operating profit |
510,739 |
49,853 |
817,430 |
457,493 |
|||||
Investment income |
11,132 |
3,894 |
24,003 |
5,319 |
|||||
Earnings before income tax |
521,871 |
53,747 |
841,433 |
462,812 |
|||||
Income tax |
240,164 |
10,750 |
282,875 |
26,683 |
|||||
Net earnings for the period attributable to owners of the Company |
281,707 |
42,997 |
558,558 |
436,129 |
|||||
Earnings per share: |
|||||||||
Basic and diluted |
$0.013 |
$0.002 |
$0.026 |
$0.024 |
|||||
CONSOLIDATED INTERIM STATEMENTS OF |
|||||||||
COMPREHENSIVE EARNINGS |
|||||||||
(unaudited - in $Canadian) |
|||||||||
Three months ended |
Six months ended |
||||||||
February 28 |
February 28 |
||||||||
2015 |
2014 |
2015 |
2014 |
||||||
Net earnings for the period |
281,707 |
42,997 |
558,558 |
436,129 |
|||||
Other comprehensive income: |
|||||||||
Unrealized gain on marketable securities |
36,181 |
91,927 |
19,473 |
146,429 |
|||||
Cumulative translation adjustment |
596,849 |
146,718 |
849,568 |
181,605 |
|||||
Comprehensive earnings for the period attributable to owners of the Company |
914,737 |
281,642 |
1,427,599 |
764,163 |
|||||
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, 2013 |
(10,683,347) |
4,080,020 |
16,247,987 |
(99,623) |
680,582 |
10,225,619 |
||||||
Net earnings for the six month period ended |
||||||||||||
February 28, 2014 |
436,129 |
- |
- |
- |
- |
436,129 |
||||||
Dividend payments declared |
(666,250) |
- |
- |
- |
- |
(666,250) |
||||||
Share-based payment expense |
- |
- |
2,822 |
- |
- |
2,822 |
||||||
Common share issuance |
- |
3,272,317 |
- |
- |
- |
3,272,317 |
||||||
Change in unrealized gain on marketable |
||||||||||||
securities available for sale |
- |
- |
- |
- |
146,429 |
146,429 |
||||||
Change in cumulative translation adjustment |
- |
- |
- |
181,605 |
- |
181,605 |
||||||
Balance - February 28, 2014 |
(10,913,468) |
7,352,337 |
16,250,809 |
81,982 |
827,011 |
13,598,671 |
||||||
Balance - September 1, 2014 |
(10,117,837) |
7,330,563 |
16,253,631 |
(797) |
912,214 |
14,377,774 |
||||||
Net earnings for the six month period ended |
||||||||||||
February 28, 2015 |
558,558 |
- |
- |
- |
- |
558,558 |
||||||
Dividend payments declared |
(851,006) |
- |
- |
- |
- |
(851,006) |
||||||
Share-based payment expense |
- |
- |
328 |
- |
- |
328 |
||||||
Common share issuance |
- |
379,500 |
- |
- |
- |
379,500 |
||||||
Change in unrealized gain on |
||||||||||||
marketable securities available for sale |
- |
- |
- |
- |
19,473 |
19,473 |
||||||
Change in cumulative translation adjustment |
- |
- |
- |
849,568 |
- |
849,568 |
||||||
Balance - February 28, 2015 |
(10,410,285) |
7,710,063 |
16,253,959 |
848,771 |
931,687 |
15,334,195 |
||||||
THE CALDWELL PARTNERS INTERNATIONAL INC. |
|||||||||||
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW |
|||||||||||
(unaudited - in $Canadian) |
|||||||||||
Six months ended |
|||||||||||
February 28 |
|||||||||||
2015 |
2014 |
||||||||||
Cash flow provided by (used in) |
|||||||||||
Operating Activities |
|||||||||||
Net earnings for the period |
558,558 |
436,129 |
|||||||||
Adjustments for: |
|||||||||||
Depreciation |
189,477 |
162,715 |
|||||||||
Amortization |
41,136 |
37,675 |
|||||||||
Share-based payment expense |
328 |
2,822 |
|||||||||
Unrealized foreign exchange on subsidiary loans |
24,197 |
(84,748) |
|||||||||
Decrease in non-current severance accrual |
- |
(105,000) |
|||||||||
Increase (decrease) in long term incentive accrual |
29,882 |
(86,339) |
|||||||||
Disposal of property and equipment |
- |
14,444 |
|||||||||
Decrease in accounts receivable |
816,431 |
2,620,958 |
|||||||||
Increase in taxes receivable |
(65,733) |
- |
|||||||||
Decrease (increase) in prepaid expenses and other assets |
19,379 |
(151,718) |
|||||||||
Increase in accounts payable |
358,784 |
327,518 |
|||||||||
(Decrease) increase in income taxes payable |
(1,790,384) |
32,507 |
|||||||||
Decrease in compensation payable |
(6,141,818) |
(2,125,819) |
|||||||||
Payment of share-based compensation |
(597,589) |
(330,013) |
|||||||||
Decrease in deferred revenue |
(912,859) |
(271,075) |
|||||||||
Net cash (used in) provided by operating activities |
(7,470,211) |
480,056 |
|||||||||
Investment Activities |
|||||||||||
Acquisition of business, net of cash acquired |
(1,017,702) |
- |
|||||||||
(Increase) decrease in advances |
(14,625) |
111,033 |
|||||||||
Increase in restricted cash |
(1,730) |
(904) |
|||||||||
Additions to property and equipment |
(224,098) |
(149,428) |
|||||||||
Net cash used in investing activities |
(1,258,155) |
(39,299) |
|||||||||
Financing Activities |
|||||||||||
Dividend payments |
(793,016) |
(554,719) |
|||||||||
Common share issuance |
- |
3,272,317 |
|||||||||
Net cash (used in) provided by financing activities |
(793,016) |
2,717,598 |
|||||||||
Effect of exchange rate changes on cash and cash equivalents |
520,631 |
261,906 |
|||||||||
Net (decrease) increase in cash and cash equivalents |
(9,000,751) |
3,420,261 |
|||||||||
Cash and cash equivalents, beginning of period |
12,742,873 |
7,612,957 |
|||||||||
Cash and cash equivalents, end of period |
3,742,122 |
11,033,218 |
|||||||||
SOURCE The Caldwell Partners International Inc.
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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
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