TORONTO, July 9, 2015 /PRNewswire/ --
- 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.
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 Nine Months Ended
May 31 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)
- 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).
- 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 http://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 http://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 2,879,483 2,243,929 7,868,201 6,390,132
administrative
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
Capital
Deficit 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 1,326,204 1,074,851
period
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 (597,589) (330,313)
compensation
(Decrease)
increase in
deferred
revenue (761,122) 183,422
Net cash (used in) provided by (3,435,1 1,344,88
operating activities 05) 9
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 (377,938) (445,268)
and equipment
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 (1,218,519) 2,328,311
investing activities
Effect of exchange rate changes
on cash and cash equivalents 589,728 196,379
Net decrease in cash and cash (5,614,678) (491,823)
equivalents
Cash and cash equivalents, 12,742,873 7,612,957
beginning of period
Cash and cash equivalents, end of 7,128,195 7,121,134
period
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, +1-516-830-3535
