- 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, cbeck@caldwellpartners.com, +1.617.934.1843; Media: Caroline Lomot, Director of Marketing, The Caldwell Partners International, clomot@caldwellpartners.com, +1.516.830.3535Copyright CNW Group 2015