2022 First Quarter Financial Results

Caldwell reports record first quarter

  • First quarter revenue of $38.4 million, a 112% increase year over year.

Toronto – January 12, 2022 – Talent acquisition firm The Caldwell Partners International Inc. (TSX: CWL; OTCQX: CWLPF) today issued its financial results for the fiscal 2022 first quarter ended November 30, 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
11.30.21 11.30.201
Professional fees – Caldwell 26,592 18,053
Professional fees – IQTP 11,722
Consolidated professional fees 38,314 18,053
Direct expense reimbursements 116 74
     Revenues 38,430 18,127
Cost of sales 30,432 13,337
Government stimulus grants (110)
Reimbursed direct expenses 116 74
Gross profit 7,882 4,826
Selling, general and administrative expenses 5,954 3,174
Acquisition-related expenses² 801 225
     Operating profit 1,127 1,427
Interest expense on lease liability 112 107
Investment income (5) (9)
Foreign exchange (income) loss (123) 34
     Earnings before tax 1,143 1,295
Income tax expense 398 361
     Net earnings after tax 745 934
     Net earnings per share $0.029 $0.046
  1. Results for the three months ended November 30, 2020 exclude the pre-acquisition results of IQTP, which had $3,997 of revenue.
  2. Acquisition-related expenses consist of transaction fees and IQTP purchase price structured as compensation expense which will end on December 31, 2022.

“This was a record-breaking start to the year for Caldwell – consolidated revenue for the quarter was $38.4 million, representing a 112% increase over the prior year and the highest first quarter in our history,” said John Wallace, chief executive officer. “Growth was driven both organically and through acquisition – our acquisition of IQTP contributed $11.7 million in revenue and Caldwell executive search’s $26.7 million represents a 47% increase year over year and a 48% increase over our pre-pandemic F’20 first quarter.”

“IQTP continues to see significant growth in demand for its services since pandemic lows. Their flexible on-demand pricing model and innovative use of AI technology is not only resonating with an ever-increasing client base, it’s creating a new category in talent acquisition. We anticipate this growth trend will continue into upcoming periods.”

Wallace continued: “Our ongoing success and performance speaks volumes to the creativity, innovation and execution excellence that the Caldwell and IQTP teams are delivering for our clients. There is no doubt that there’s an ongoing war for talent and the world continues to pivot towards remote work out of an increasing desire to achieve work/life balance and the ability to work from anywhere that technology provides. Given this continuing backdrop, our vision remains focused and clear – for our two segments to work in tandem to provide a seamless integration of talent acquisition solutions at all levels for our clients. And with our strong balance sheet, we will continue to review business and technology acquisition opportunities that align with client-driven talent offerings and our belief that Talent Transforms.”

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 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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