2015 Second Quarter Financial Results

  • Year-over-year second quarter revenue increase of 30%.
  • Second quarter operating income is $511,000.
  • Board declares 2.0 cent quarterly dividend.

Toronto, Ontario– April 9, 2015 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2015 second quarter ended February 28, 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)

*Months Ended February 28

Three Months Ended Feb 28 Six Months Ended Feb 28
2015 2014 2015 2014
Revenue $11,874 $ 9,158 $24,310 $19,496
Operating expenses $11,363 $9,108 $23,492 $19,039
Operating profit $511 $50 $818 $458
Investment income $11 $4 $24 $5
Earnings before tax $522 $54 $842 $463
Net earnings $282 $43 $559 $436
Earnings per share $0.013 $0.002 $0.026 $0.024

*Months Ended February 28

“Our partner and support team continued the strong momentum from previous quarters, delivering a sizeable increase in revenue and a positive contribution to operating profit,” said John N. Wallace, chief executive officer. “We are very pleased with the way our entire team is operating, and are feeling confident about continuing our performance for the remainder of the fiscal year.”

Wallace added: “We continue to focus on making targeted, strategic additions of high calibre partners in key sectors and practices to enhance our value proposition to our clients, as well as our overall market presence and industry competitiveness. The recent additions of Rodes Cole (Atlanta) and Glenn Buggy (Stamford/New York) to our partner team add significant depth to both our professional services and financial services practices and will contribute positively to our second half revenues.”

The Board of Directors today also declared the payment of a quarterly dividend of 2.0 cents per Common Share payable on June 15, 2015 to shareholders of record on April 20, 2015.

Financial Overview (in $000s except per share amounts)

Operating revenue:

  • Fiscal 2015 second quarter operating revenue increased by 30% (20% excluding a 10% variance from exchange rate fluctuations) over the comparable period last year to $11,874 (2014: $9,158).
  • US revenues increased 19% (6% excluding a 13% favourable variance from exchange rate fluctuations) to $7,800 (2014: $6,568), driven by an increase in the average number of search partners and search volumes during the current year, partially offset by lower average fees.
  • Revenues from Canadian operations increased 45% to $3,758 (2104: $2,590) in the current period, generated by higher search volumes offset partially by lower average fees
  • Revenues from the Europe operations were $316
  • Year to date revenue increased 25% over the prior year to $24,310 (2014: $19,496).

Operating profit:

  • For the second quarter, higher year-over-year revenues ($2,716) offset by the related higher compensation and cost of sales ($1,992) and expenses ($264) resulted in operating profit of $511 in the second quarter of fiscal 2015, an increase of $461 from $50 in the second quarter of fiscal 2015.
  • On a segment basis, $351 of operating profit was from the US, $118 was from Canada and $42 was from Europe.
  • Year to date, higher year-over-year revenues ($4,814) partially offset by the related higher compensation and cost of sales ($3,410) and expenses ($1,044) resulted in the net increase of $360 to operating profit of $818 in the first half of fiscal 2015, up from $458 in the first half of fiscal 2014.

Net profit:

  • The second quarter net earnings were $282 ($0.013 per share) in fiscal 2015, as compared to $43 ($0.002 per share) in the comparable period a year earlier.
  • Year to date net earnings were $559 ($0.026 per share) in fiscal 2015, as compared to $436 ($0.024 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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