2021 Third Quarter Financial Results

    • $35.8M of revenue, a 210% increase year-over-year.
    • $3.2M of operating profit, a 336% increase year-over-year.

Toronto – July 8, 2021 – Talent acquisition firm The Caldwell Partners International Inc. (TSX: CWL; OTCQX: CWLPF) today issued its financial results for the fiscal 2021 third quarter ended May 31, 2021. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars. Financial results include those of IQTalent Partners, Inc. (IQTP) beginning on the date of acquisition of December 31, 2020.

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

Three Months Ended Nine Months Ended
5.31.21 5.31.20 5.31.21 5.31.20
Professional fees – Caldwell 26,914 11,262 64,691 45,715
Professional fees – IQTP 8,821 13,106
Consolidated professional fees 35,735 11,262 77,797 45,715
Direct expense reimbursements 84 294 231 1,224
     Revenues 35,819 11,556 78,028 46,939
Cost of sales 26,737 9,166 58,153 35,656
Government stimulus grants (68) (241) (334) (241)
Reimbursed direct expenses 84 294 231 1,224
Gross profit 9,066 2,337 19,978 10,300
Selling, general and administrative expenses 5,058 1,600 13,621 8,836
Acquisition-related expenses² 791 1,660
     Operating profit 3,217 737 4,697 1,464
Interest expense on lease liability 121 92 348 220
Interest expense on loans payable 11 20
Investment (income) loss (5) 748 (19) 612
Foreign exchange loss (gain) 249 90 354 (51)
     Earnings (loss) before tax 2,841 (193) 3,994 683
Income tax expense³ 609 311 458 409
     Net earnings (loss) after tax 2,232 (504) 3,536 274
     Basic earnings (loss) per share $0.088 ($0.025) $0.152 $0.013
  1. Results include operations from IQTP for the five months post-acquisition date of December 31, 2020 with intercompany amounts eliminated.
  2. Acquisition-related expenses consist of transaction fees and IQTP purchase price structured as compensation expense which will finish amortizing on December 31, 2022.
  3. Income tax expense during the nine months ended May 31, 2021 includes $562 of income from a favourable tax ruling change during the second quarter allowing for the deductibility on the valid use of PPP funds which had previously been disallowed.

“Our third quarter revenue of $35.8 million represents a 210 percent increase over the prior year and our operating profit of $3.2 million represents a 336 percent increase over the prior year,” said John Wallace, chief executive officer. “Both financial results are the highest in our history, and while we are all participating in a vibrant market, there is no doubt that this has been a breakthrough year for Caldwell, in all aspects of our business.”

Wallace continued: “Our Caldwell executive search organization saw a year-over-year increase of 134 percent – all of which came from organic growth. We have a larger partner team who are working on more searches per year at higher fee levels. Our IQTalent Partners segment delivered  76% of the consolidated year-over-year increase in revenue, responding to the ongoing economic recovery in the talent sector and seeing significant and sustained growth in demand for its services since pandemic lows. IQTP’s flexible on-demand pricing model coupled with their innovative use of AI technology is resonating with clients. In addition, our lead generation programs and robust word-of-mouth referrals continue to provide a strong pipeline for IQTP’s growth.

Our continuing vision for our two brands, working in tandem, is for IQTP to be a constant presence at our clients, providing recurring talent acquisition support, with Caldwell engaged for higher-end retained executive searches not done by the in-house teams. Together, we have created a comprehensive and seamless integration of products and services that addresses the talent acquisition needs at all levels for our clients.”

For a complete discussion of the quarterly financial results, including a detailed segment analysis, 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 technology-powered talent acquisition firm specializing in recruitment at all levels. Through two distinct brands – Caldwell and IQTalent Partners – the firm leverages the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas. Services include candidate research and sourcing through to full recruitment at the professional, executive and board levels, as well as a suite of talent strategy and assessment tools that can help clients hire the right people, then manage and inspire them to achieve maximum business results.

Caldwell Partners’ common shares are listed on The Toronto Stock Exchange (TSX: CWL) and trade on the OTCQX Market (OTCQX: CWLPF). 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 the significant risks and uncertainties cited. These forward-looking statements generally can be identified by use of statements that include phrases such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” “may,” “will,” “likely,” “estimates,” “potential,” “continue” or other similar words or phrases. Similarly, statements that describe our objectives, plans or goals also are forward-looking statements. The Company is subject to many factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statement including, but not limited to, software that we license from third parties, our ability to successfully recover from a disaster or other business continuity issues, successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses, our ability to attract and retain key personnel; exposure to our partners taking our clients with them to another firm; the performance of the US, Canadian and international economies, including the impact of pandemic diseases; competition from other companies directly or indirectly engaged in executive search; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; our ability to align our cost structure to changes in our revenue; adverse governmental and tax law rulings; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; foreign currency exchange rate fluctuations; affiliation agreements may fail to renew or affiliates may be acquired; marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; volatility of the market price and volume of our common shares; potential impairment of our acquired goodwill and intangible assets; and disruption as a result of actions of certain stockholders or potential acquirers of the Company. For more information on the factors that could affect the outcome of forward-looking statements, refer to the “Risk Factors” section of our Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and the reader should not place undue reliance on forward-looking statements. Although any forward-looking statements are based on what management currently believes to be reasonable assumptions, we cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management’s assumptions may prove to be incorrect. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

For further information, please contact:

Chris Beck, CPA, President and Chief Financial Officer
+1 (617) 934-1843

Caroline Lomot, Director of Marketing
+1 (516) 830-3535

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