2011 Fourth Quarter & Full Year Financial Results

  • Annual revenues up 27% over last year
  • Growth of US operations continues – percentage of consolidated annual revenues grows to 63%

Toronto, Ontario– November 17, 2011 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2011 fourth quarter and year ended August 31, 2011.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)

Three Months Ended Aug 31 Year Ended Aug 31
2011 2010 2011 2010
Operating revenue $9,377 $10,426 $34,238 $26,904
Expenses 8,728 9,650 34,156 27,518
Operating profit 649 776 82 (614)
Investment income 195 83 246 363
Net earnings before restructuring charges 844 859 328 (251)
Restructuring costs 0 0 0 (1,001)
Income taxes 169 0 169 0
Net earnings $675 $859 $ 159 ($1,252)
Net earnings per share $0.039 $0.052 $0.009 ($0.076)


“I am pleased by the great effort our team made this year, and by the results we are beginning to see,” said John N. Wallace, chief executive officer. We continue to grow revenues, our team is getting stronger and more cohesive, we are extending our reach with like-minded allies in important international markets and we remain relentlessly focused on delivering superior service to our clients.”

Wallace continued: “In the last two years we have made substantial progress toward our overall goals, and remain committed to driving increasing profitability and sustainable value to our shareholders.”

Financial Highlights (all numbers expressed in $000s)

Operating revenue:

  • 2011 fourth quarter operating revenue decreased by 10% over the comparable period last year to $9,377. Although the current quarter’s revenue reflects favourably against recent quarters, last year’s fourth quarter revenues were unusually high.
  • Revenues generated in the United States of America (US) represent 66% or $6,147 of the 2011 fourth quarter total, decreasing from $6,491 in the comparable period of 2010.
  • Revenues from Canadian operations were $3,230 in the fourth quarter of 2011 also down from $3,935 in the comparable period of 2010.
  • 2011 annual operating revenues increased 27% over the same period a year earlier to $34,238. The increase is attributable to solid year over year growth in search revenues in Canada (6% increase) and strong year over year growth in the US (44% increase).
  • After the exceptional 2010 fourth quarter revenues led to a comparably softer 2011 first quarter, the last three quarters’ revenues rebounded to levels more representative of the Company’s current productive resources. Given the Company’s size, sector focus, and market volatility, sequential quarterly revenues may continue to be somewhat variable.

Operating profit:

  • Operating margin in the fourth quarter of 2011 was 7%, in line with the comparable period a year earlier. Operating income in the fourth quarter of 2011 was down 16% to $649 (2010: $776).
  • The company achieved a slight annual operating profit of $82 in 2011, up from an operating loss of $614 in the previous year.

Net earnings:

  • Fourth quarter net earnings after tax were $675 in 2011 as compared to $859 in the comparable period a year earlier.
  • Decline in quarterly net earnings largely attributed to unusually high level of revenue in the 2010 fourth quarter, as well as a $169 provision for income taxes recorded in the 2011 fourth quarter.

The Company reported annual net earnings after tax of $159 as compared to a loss of $1.25 million in the comparable period of 2010. 2010 annual results reflect a one-time restructuring charge of $1.0 million relating to the retirement of the Company’s founder, executive chairman and director, and the related agreement to accelerate the planned conversion of the Company’s voting Class B Shares to non-voting Class A shares

Having achieved multiple years of strong revenue growth from strategic investments made to expand the business, the Company will continue to devote its energies in 2012 to improving profitability. The Company’s strong focus will remain on enhancing shareholder value with strategic additions of quality people being made to the team.

Despite the persistent global economic uncertainty, the executive search business remains relatively healthy in most industry sectors. However, given the relative size of the Company’s clientfacing team, its sector focus and market variability, fluctuations in quarterly revenues will likely continue. The first quarter of each fiscal year in particular is typically affected by the seasonal impact of slower summer bookings.

Operating revenue, gross profit/loss and operating income/loss are non-GAAP (generally accepted accounting principles) measures. The company believes, however, that they provide a useful understanding of the performance of its core human capital services operations as they exclude income or loss from investments and taxes.

For a complete discussion of the quarterly and annual financial results, please see the company’s Management Discussion and Analysis posted on SEDAR at www.sedar.com

Click to read full financial statement

About Caldwell Partners

Caldwell Partners is one of North America’s premier providers of executive search and has been for over 40 years. As one of the region’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 in Vancouver, San Francisco, Los Angeles, Dallas, Calgary, Atlanta, Toronto, Stamford, New York City, and a strategic presence in London and Hong Kong, 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.caldwell.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.

For further information, please contact:

Investors & Analysts:

Karen Richards, CA, Chief Financial Officer
The Caldwell Partners International
+1 416 934 2228


Caroline Lomot, Director of Marketing
The Caldwell Partners International
+1 416 934 2239

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