2012 Third Quarter Financial Results

  • Firm posts third quarter revenues 30% higher than second quarter.
  • Third quarter operating income is $710k.
  • Board declares 1.5 cents per share quarterly dividend

Toronto, Ontario– July 12, 2012 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2012 third quarter ended May 31, 2012.

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)

*Months Ended May 31

Three Months Ended May 31 Nine Months Ended May 31
2012 2011 2012 2011
Operating revenue $9,356 $ 9,562 $23,847 $24,861
Expenses 8,646 9,048 23,784 35,223
Operating profit (loss) 710 514 $63 (362)
Investment income 1 20 10 51
Net earnings (loss) before tax 711 534 $73 ($311)
Net earnings (loss) after tax 711 $ 534 25 ($311)
Net earnings (loss) per share $ 0.042 $ 0.031 $0.001 ($0.018)

*Months Ended May 31

This quarter’s results were more in line with our overall expectations for the performance of the business,” said John Wallace, chief executive officer. “As it relates to profitability, we achieved better results, with strong growth on both a year-over-year and sequential quarter basis.”

We are as focused as ever on improving our overall market presence and competitiveness, making targeted, strategic additions to the team when and where it makes sense. Our growth strategy has been fuelled by our determination to continually improve our service to clients and to create value for shareholders, and we believe our recent distinction as fastest-growing executive search firm in North America is a testament to this.”

The Board of Directors today also declared the payment of a quarterly dividend of 1.5 cents per Common Share payable September 14, 2012 to shareholders of record on July 23, 2012.

Financial Highlights (all numbers expressed in $000s)

Operating revenue:

  • Sequentially, 2012 third quarter revenues were 30% higher than those of the second quarter, but decreased by 2% over the comparable period last year to $9,356. The decrease is attributable to weakness in Canadian search revenues (down 16%) more than offsetting the growth in US search revenues (up 5%).
  • Revenues from US operations represent 71% or $6,686 of the third quarter total, increasing 5% from $6,367 in the comparable period of 2011.
  • Revenues from Canadian operations decreased 16% to $2,671 in the current period from $3,195 in the comparable period of 2011.
  • Fiscal 2012 nine month revenues decreased 4% over the same period a year earlier to $23,847.
  • For the nine months ended May 31, 2012 US revenues represent 70% of consolidated revenues.

Operating profit:

  • The year-to-date operating profit of $63 represents a significant improvement over the prior year’s loss of $362.
  • Lower direct costs and a higher gross profit margin as compared to the comparable period of fiscal 2011 resulted in an operating profit of $710 for the quarter, 38% higher than the $514 earned in the previous year.

Net earnings:

  • The year-to-date net income before tax was $73 in fiscal 2012, a $384 improvement over the loss of $311 in the comparable period a year earlier.
  • The third quarter net income before tax was $711 in fiscal 2012 representing a 33% improvement over the $534 in the comparable period a year earlier.

Unencumbered Cash:

  • Unencumber cash at May 31, 2012 totals $6.0 up from $5.3 million at the end of the second quarter.

Over the past two and a half years, Caldwell Partners has evolved from a respected Canadian brand to a firm with a strong North American presence. At the end of the second quarter of fiscal 2012, the firm now has three offices in Canada, six offices in the United States, and has established strategic alliances with executive search firms based in London and Hong Kong.

Operating revenue, gross profit/loss and operating profit/loss are non-IFRS (international financial reporting standards) 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 more than 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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