2022 Third Quarter Financial Results

  • Third quarter revenue of $41.9 million – highest quarter in firm’s history
  • Year to date revenue of $120.2 million, a 54% increase year over year
  • Record year to date operating profit of $7.9 million

Toronto – July 13, 2022 – Talent acquisition firm The Caldwell Partners International Inc. (TSX: CWL; OTCQX: CWLPF) today issued its financial results for the fiscal 2022 third quarter ended May 31, 2022. 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 Six Months Ended
5.31.22 5.31.21 5.31.22 5.31.21
Professional fees – Caldwell 26,534 26,914 80,384 64,691
Professional fees – IQTP 15,171 8,821 39,443 13,106
Consolidated professional fees 41,705 35,735 119,827 77,797
Direct expense reimbursements 168 84 419 231
     Revenues 41,873 35,819 120,246 78,028
Cost of sales 32,180 26,737 92,883 58,153
Government stimulus grants (68) (334)
Reimbursed direct expenses 168 84 419 231
Gross profit 9,525 9,066 26,944 19,978
Selling, general and administrative expenses 7,318 5,058 17,092 13,621
Acquisition-related expenses 504 791 1,995 1,660
     Operating profit 1,703 3,217 7,857 4,697
Interest expense on lease liability 102 121 321 348
Interest expense on loans payable 11 20
Investment income (15) (5) (22) (19)
Foreign exchange loss 73 249 39 354
     Earnings before tax 1,543 2,841 7,519 3,994
Income tax expense 187 609 1,916 458
     Net earnings after tax 1,356 2,232 5,603 3,536
     Basic earnings per share $0.053 $0.088 $0.218 $0.152
  1. Results for the nine months ended May 31, 2022, exclude the pre-acquisition results of IQTP, which had $5,931 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 marks the fifth consecutive quarter of record year-over-year revenue results” said John Wallace, chief executive officer. “Consolidated revenue for the quarter was $41.9 million (a 17% increase over the prior year) and $120.2 million for the fiscal year to date (a 54% increase over the prior year).”

“Our Caldwell executive search segment contributed $26.5 million in professional fees in the third quarter – largely flat coming off a surge that began building in the third quarter of last year. We experienced continued robust growth at our IQTP segment, generating $15.2 million in professional fees during the third quarter – a 72% increase from the prior year. While rising inflation, interest rates and geopolitical tensions in Europe may bring moderation to our near-term growth, executive search trends remain strong, we are at a record high partner count and focused on continued partner recruitment, and IQTP’s flexible on-demand pricing model and innovative use of AI technology continues to resonate with our clients and their talent needs.”

Wallace continued: “Over the last two years we have implemented a deliberate strategy aimed at expanding and modernizing the range of talent acquisition solutions we deliver to our clients. We now integrate outcome-oriented service with innovative technology to deliver a wider range of talent acquisition solutions to our clients. With IQTP providing recurring talent procurement support and Caldwell engaged for higher end retained executive searches not undertaken by our clients’ in-house teams, we can provide seamless support for our clients’ talent acquisition needs at all levels. We do anticipate benefitting from an increasingly diversified mix of products and services, with cross-collaboration opportunities between our two business segments expected to amplify our long-term success. We also continue to review business and technology acquisition opportunities that align with client-driven talent offerings and our driving principle, that Talent Transforms.”

Click to read the 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 – 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 subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by the 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.

We are 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, the impact of pandemic diseases, 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; foreign currency exchange rate fluctuations; competition from other companies directly or indirectly engaged in talent acquisition; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; our ability to align our cost structure to changes in our revenue; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; reliance on software that we license from third parties; reliance on third-party contractors for talent acquisition support; our ability to successfully recover from a disaster or other business continuity issues; adverse governmental and tax law rulings; successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses; volatility of the market price and volume of our common shares; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; affiliation agreements may fail to renew or affiliates may be acquired; the impact on profitability from marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; 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. 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, President and Chief Financial Officer
+1 (617) 934-1843

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

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