2015 First Quarter Financial Results

  • Year-over-year first quarter revenue increase of 20%.
  • First quarter operating income is $307,000.
  • Board declares 2.0 cent quarterly dividend.

Toronto, Ontario– January 8, 2015 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2015 first quarter ended November 30, 2014. 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)

*Months Ended November 30

Three Months Ended Nov 30
2014 2013
Revenue $12,436 $10,339
Operating expenses 12,129 9,931
Operating profit 307 408
Investment income 13 1
Earnings before tax 320 409
Net earnings 277 393
Earnings per share $0.013 $0.023

*Months Ended November 30

“We have seen solid year-over-year growth in our quarterly revenues,” said John N. Wallace, chief executive officer. “And while there will always be market fluctuations and economic uncertainties, our team is composed of truly experienced search people, who are well-equipped to weather turbulence in the marketplace.”

Wallace continued: “Our partner and support teams continue to operate at extremely high productivity levels, and we remain focused on making targeted, strategic additions to our team. Our October 1, 2014 acquisition of London-based Hawksmoor Search Limited established our footprint into the European market and has created what we believe to be the premier insurance practice in the executive search industry.”

The Board of Directors today also declared the payment of a quarterly dividend of 2.0 cents per Common Share payable on March 12, 2015 to shareholders of record on January 26, 2015.

Financial Overview (all numbers expressed in $000s)

Operating revenue:

  • Fiscal 2015 first quarter operating revenue increased by 20% (15% excluding a 5% variance from exchange rate fluctuations) over the comparable period last year to $12,436 (2014: $10,339).
  • US revenues increased 24% (16% excluding an 8% favourable variance from exchange rate fluctuations) to $8,144 (2014: $6,543), driven primarily by an increase in search volumes partially offset by lower average fees during the current year.
  • Revenues from Canadian operations increased 12% to $4,256 (2104: $3,795) in the current period, generated by higher search volumes partially offset by lower average fees.
  • Revenues from the Europe operations were $36 for the Company’s period of ownership.

Operating profit:

  • Higher year-over-year first quarter revenues ($2,098) offset by the related higher cost of sales on the increased revenue ($1,418) and increased expenses ($780) pertaining to higher share-based compensation resulting from a rise in the company’s share price to $1.59 at the end of the first quarter of fiscal 2015 (2014: $0.84), the costs of the added European operations and the amount and timing of the Company’s annual partner conference resulted in operating profit of $307 in
    the first quarter of fiscal 2015, a decrease of $101 from $408 in the first quarter
    of fiscal 2014.
  • On a segment basis, $105 of operating profit was from the US, $297 was from Canada and ($95) was from Europe.

Net profit:

  • The first quarter net earnings were $277 ($0.013 per share) in fiscal 2015, as compared to $393 ($0.023 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

Click to read full financial statement

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.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:

Chris Beck, CPA, Chief Financial Officer
The Caldwell Partners International
+1 617 934 1843


Caroline Lomot, Director of Marketing
The Caldwell Partners International
+1 516 830 3535

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