The Caldwell Partners International Issues Fiscal 2015 Third Quarter Financial Results

• Year-over-year third quarter revenue increased 20% to $14,813,000.
• Year-over-year third quarter operating profit increased 42% to $905,000.
• Board declares fourteenth consecutive quarterly dividend of 2.0 cents.

TORONTO, July 9, 2015 /CNW/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2015 third quarter ended May 31, 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 May 31		Nine Months Ended  May 31
	2015	2014	2015	2014
Revenue	$14,813	$12,359	$39,123	$31,855
Operating expenses	$13,908	$11,726	$37,400	$30,764
Operating profit	$905	$633	$1,723	$1,091
Investment income	$34	$6	$58	$11
Earnings before tax	$939	$639	$1,781	$1,102
Net earnings	$768	$639	$1,326	$1,075
Earnings per share	$0.036	$0.030	$0.062	$0.057

"We are very pleased with our team's performance this past quarter," said John N. Wallace, chief executive officer. "These results represent the ninth consecutive quarter of year-over-year growth for Caldwell Partners, and we believe it is a result of our single-minded focus on improving both the level of service we provide our clients, and the long-term value we deliver to our shareholders."

Wallace continued: "We have built an incredible team of partners and support staff – each renowned in their space for the depth of their knowledge, the breadth of their experience and the level of care with which they treat our clients. We will continue to expand our partner teams and our physical footprint where it allows us to strengthen the services we are able to provide to our clients on a global basis. The recent additions of Christopher Coe, Andrew Duncan, and their supporting teams in London are clear evidence of this ongoing strategy, as they add significant depth to our life sciences and financial services practices, respectively."

The Board of Directors today also declared the payment of a quarterly dividend of 2.0 cents per Common Share payable September 14, 2015 to shareholders of record on July 20, 2015.

Financial Overview (all numbers expressed in $000s)

• Operating revenue:
  
  
  • Fiscal 2015 third quarter operating revenue increased by 20% (11% excluding a 9% variance from exchange rate fluctuations) over the comparable period last year to $14,813 (2014: $12,359).
    • US revenues increased 15% (2% excluding a 13% favourable variance from exchange rate fluctuations) to $10,398, driven primarily by an increase in the average number of search partners and higher average fees partially offset by slightly lower search volumes during the current year.
    • Canadian revenues increased 29% to $4,218 with higher fees more than offsetting the lower average number of search partners and slight decrease in search volumes.
    • Revenues from the Europe operations were $197.
  • Year to date revenue increased 23% (15% excluding an 8% variance from exchange rate fluctuations) over the prior year to $39,123 (2014: $31,855)
    
    
• Operating profit:
  
  
  • For the third quarter, higher year-over-year revenues ($2,455) partially offset by the related higher cost of sales ($1,532) and expenses ($650) resulted in operating profit of $905 in the third quarter of fiscal 2015, an increase of $272 from $633 in the third quarter of fiscal 2015.
  • Year to date, higher year-over-year revenues ($7,268) partially offset by the related higher cost of sales ($4,942) and expenses ($1,694) resulted in the net increase of $632 to operating profit of $1,723 in the first three-quarters of fiscal 2015, up from $1,091 in the first three-quarters of fiscal 2014.
    
    
• Net profit:
  
  
  • The third quarter net earnings were $768 ($0.036 per share) in fiscal 2015, as compared to $639 ($0.030 per share) in the comparable period a year earlier.
  • Year to date net earnings were $1,326 ($0.062 per share) in fiscal 2015, as compared to $1,075 ($0.057 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
					May 31		August 31
					2015		2014
Assets
Current assets
	Cash and cash-equivalents				7,128,195		12,742,873
	Marketable securities				7,865,353		7,809,403
	Accounts receivable				8,892,518		8,141,145
	Prepaid expenses and other assets				1,594,412		1,364,383
					25,480,478		30,057,804
Non-current assets
	Restricted cash				483,384		452,138
	Advances				389,599		195,033
	Property and equipment				1,790,492		1,609,811
	Intangible assets				375,160		384,470
	Goodwill				3,026,543		1,072,315
	Deferred income taxes				2,807,803		2,443,435
Total assets					34,353,459		36,215,006
Liabilities
Current liabilities
	Accounts payable				1,397,415		1,399,983
	Compensation payable				14,242,009		15,752,702
	Dividends payable				425,503		367,513
	Income taxes payable				32,427		1,790,091
	Contingent consideration				269,454		-
	Deferred revenue				1,314,537		1,974,144
					17,681,345		21,284,433
Non-current liabilities
	Compensation payable				776,032		552,799
	Contingent consideration				257,896		-
					18,715,273		21,837,232
Equity attributable to owners of the Company
	Share capital				7,710,063		7,330,563
	Contributed surplus				16,254,123		16,253,631
	Accumulated other comprehensive income				1,742,142		911,417
	Deficit				(10,068,142)		(10,117,837)
Total equity					15,638,186		14,377,774
Total liabilities and equity					34,353,459		36,215,006

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS
(unaudited - in $Canadian)
			Three months ended				Nine months ended
			May 31				May 31
			2015		2014		2015		2014
Revenues			14,813,614		12,358,955		39,123,375		31,855,289
Cost of sales			10,801,626		9,269,216		28,824,444		23,882,823
Gross profit			4,011,988		3,089,739		10,298,931		7,972,466
Expenses
	General and administrative		2,879,483		2,243,929		7,868,201		6,390,132
	Sales & marketing		223,079		180,208		666,928		563,222
	Foreign exchange loss (gain)		4,286		32,493		41,232		(71,490)
			3,106,848		2,456,630		8,576,361		6,881,864
Operating profit			905,140		633,109		1,722,570		1,090,602
Investment income			33,942		5,897		57,945		11,216
Earnings before income tax			939,082		639,006		1,780,515		1,101,818
Income tax			171,436		284		454,311		26,967
Net earnings for the period attributable to owners of the Company			767,646		638,722		1,326,204		1,074,851
Earnings per share
	Basic and diluted		$0.036		$0.030		$0.062		$0.057
CONSOLIDATED INTERIM STATEMENTS OF
COMPREHENSIVE EARNINGS
(unaudited - in $Canadian)
			Three months ended				Nine months ended
			May 31				May 31
			2015		2014		2015		2014
Net earnings for the period			767,646		638,722		1,326,204		1,074,851
Other comprehensive income:
Items that may be reclassified subsequently to net income
	Unrealized gain on marketable securities		9,024		51,372		28,497		197,801
	Cumulative translation adjustment		(47,340)		(78,571)		802,228		103,034
Comprehensive earnings for the period attributable to owners of the Company			729,330		611,523		2,156,929		1,375,686

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 nine month period ended
May 31, 2014	1,074,851	-	-	-	-	1,074,851
Dividend payments declared	(1,033,763)	-	-	-	-	(1,033,763)
Share-based payment expense	-	-	4,233	-	-	4,233
Common share issuance	-	3,250,543	-	-	-	3,250,543
Change in unrealized gains on marketable
securities available for sale	-	-	-	-	197,801	197,801
Change in cumulative translation adjustment	-	-	-	103,034	-	103,034
Balance - May 31, 2014	(10,642,259)	7,330,563	16,252,220	3,411	878,383	13,822,318
Balance - September 1, 2014	(10,117,837)	7,330,563	16,253,631	(797)	912,214	14,377,774
Net earnings for the nine month period ended
May 31, 2015	1,326,204	-	-	-	-	1,326,204
Dividend payments declared	(1,276,509)	-	-	-	-	(1,276,509)
Share-based payment expense	-	-	492	-	-	492
Common share issuance	-	379,500	-	-	-	379,500
Change in unrealized gain on
marketable securities available for sale	-	-	-	-	28,497	28,497
Change in cumulative translation adjustment	-	-	-	802,228	-	802,228
Balance - May 31, 2015	(10,068,142)	7,710,063	16,254,123	801,431	940,711	15,638,186

THE CALDWELL PARTNERS INTERNATIONAL INC.
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW
(unaudited - in $Canadian)
						Nine months ended
						May 31
						2015		2014
Cash flow provided by (used in)
Operating activities
	Net earnings for the period					1,326,204		1,074,851
	Adjustments for:
		Depreciation				302,353		254,008
		Amortization				63,053		57,146
		Share-based payment expense				492		4,233
		Unrealized foreign exchange on subsidiary loans				18,823		(59,254)
		Decrease in non-current severance accrual				-		(148,750)
		Increase in long term incentive accrual				223,233		79,182
		Disposal of property and equipment				4,932		14,444
		Decrease (increase) in accounts receivable				79,475		(1,439,459)
		Increase in prepaid expenses and other assets				(39,530)		(273,218)
		Decrease in accounts payable				(182,701)		(42,539)
		(Decrease) increase in income taxes payable				(1,759,775)		33,257
		(Decrease) increase in compensation payable				(2,112,954)		1,937,878
		Payment of share-based compensation				(597,589)		(330,313)
		(Decrease) increase in deferred revenue				(761,122)		183,422
Net cash (used in) provided by operating activities						(3,435,105)		1,344,889
Investment activities
	Acquisition of business, net of cash acquired					(1,002,794)		-
	Increase in marketable securities					(27,453)		(4,000,960)
	(Increase) decrease in advances					(111,351)		86,464
	Increase in restricted cash					(31,246)		(1,638)
	Additions to property and equipment					(377,938)		(445,268)
Net cash used in investing activities						(1,550,782)		(4,361,402)
Financing activities
	Dividend payments					(1,218,519)		(922,232)
	Common share issuance					-		3,250,543
Net cash (used in) provided by investing activities						(1,218,519)		2,328,311
Effect of exchange rate changes on cash and cash equivalents						589,728		196,379
Net decrease in cash and cash equivalents						(5,614,678)		(491,823)
Cash and cash equivalents, beginning of period						12,742,873		7,612,957
Cash and cash equivalents, end of period						7,128,195		7,121,134

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