TORONTO, January 8, 2015 /PRNewswire/ --
- Year-over-year first quarter revenue increase of 20%.
- First quarter operating income is $307,000.
- Board declares 2.0 cent quarterly dividend.
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)
Three Months Ended November 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
"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 http://www.sedar.com
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 http://www.caldwellpartners.com for further information.
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.
THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (unaudited - in $Canadian) As at November 30 August 31 2014 2014 Assets Current assets Cash and cash equivalents 9,711,597 12,742,873 Marketable securities 7,792,695 7,809,403 Accounts receivable 7,096,236 8,141,145 Prepaid expenses and other current assets 1,476,888 1,364,383 26,077,416 30,057,804 Non-current assets Restricted cash 463,286 452,138 Advances 301,301 195,033 Property and equipment 1,614,307 1,609,811 Intangible assets 384,385 384,470 Goodwill 2,812,813 1,072,315 Deferred income taxes 2,571,476 2,443,435 Total assets 34,224,984 36,215,006 Liabilities Current liabilities Accounts payable 1,481,583 1,399,983 Compensation payable 15,148,253 15,752,702 Dividends payable 425,503 367,513 Income taxes payable - 1,790,091 Due to seller of acquired business 599,689 - Contingent consideration 261,245 - Deferred revenue 739,893 1,974,144 18,656,166 21,284,433 Non-current liabilities Compensation payable 472,824 552,799 Contingent consideration 251,197 - 19,380,187 21,837,232 Equity attributable to owners of the Company Share capital 7,710,063 7,330,563 Contributed surplus 16,253,795 16,253,631 Accumulated other comprehensive income 1,147,428 911,417 Deficit (10,266,489) (10,117,837) Total equity 14,844,797 14,377,774 Total liabilities and equity 34,224,984 36,215,006 The accompanying notes are an integral part of these consolidated interim financial statements.
THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF EARNINGS (unaudited - in $Canadian) Three months ended November 30 2014 2013 Revenues 12,436,201 10,338,549 Cost of sales 9,172,269 7,754,163 Gross profit 3,263,932 2,584,386 Expenses General and administrative 2,673,908 2,023,965 Sales and marketing 273,218 160,653 Foreign exchange loss (gain) 10,115 (7,872) 2,957,241 2,176,746 Operating profit 306,691 407,640 Investment income 12,871 1,425 Earnings before income taxes 319,562 409,065 Income tax expense 42,711 15,933 Net earnings for the period attribtuable to owners of the Company 276,851 393,132 Earnings per share: Basic and diluted 0.013 0.023 CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS (unaudited - in $Canadian) Three months ended November 30 2014 2013 Net earnings for the period 276,851 393,132 Other comprehensive income: Items that may be reclassified subsequently to net earnings Unrealized (loss) gain on marketable securities (16,708) 54,502 Cumulative translation adjustment 252,719 34,887 Comprehensive earnings for the period attributable to owners of the Company 512,862 482,521 The accompanying notes are an integral part of these consolidated interim financial statements.
THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW (unaudited - in $Canadian) Three months ended November 30 2014 2013 Cash flow (used in) provided by Operating activities Net earnings for the period 276,851 393,132 Adjustments for: Depreciation 92,714 78,291 Amortization 19,802 18,414 Share-based payment expense 164 1,410 Unrealized foreign exchange on subsidiary loans 14,296 (16,286) Non-cash incentive compensation - 50,805 Deferred revenue (1,281,863) (279,814) Decrease in long-term incentive accrual (79,975) (52,500) Decrease in accounts receivable 1,479,799 1,935,004 (Increase) decrease in prepaid expenses and other assets (38,200) 168,024 Decrease in accounts payable (22,074) (216,809) (Decrease) increase in compensation payable (1,014,425) 43,891 (Decrease) increase in taxes payable (1,832,637) 15,760 Net cash (used in) provided by operating activities (2,385,548) 2,139,322 Investing activities Acquisition of business, net of cash acquired (418,966) - (Increase) decrease in advances (77,251) 53,625 Increase in restricted cash (943) (369) Additions to property and equipment (57,658) (49,070) Net cash (used in) provided by investing activities (554,818) 4,186 Financing activities Dividend payments (367,513) (255,984) Net cash used in financing activities (367,513) (255,984) Effect of exchange rate changes on cash and cash equivalents 276,603 73,264 Net (decrease) increase in cash and cash equivalents (3,031,276) 1,960,788 Cash and cash equivalents, beginning of period 12,742,873 7,612,957 Cash and cash equivalents, end of period 9,711,597 9,573,745 The accompanying notes are an integral part of these consolidated interim financial statements.
THE CALDWELL PARTNERS INTERNATIONAL INC. CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (unaudited - in $Canadian) Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Loss) Cumulative on Contributed Translation Marketable Total Capital Deficit Stock Surplus Adjustment Securities Equity Balance - September 1, 2013 (10,683,347) 4,080,020 16,247,987 (99,623) 680,582 10,225,619 Net earnings for the three month period ended November 30, 2013 393,132 - - - - 393,132 Dividend payments declared (298,737) - - - - (298,737) Share-based payment expense - - 1,410 - - 1,410 Change in unrealized gain on marketable securities available for sale - - - - 54,502 54,502 Change in cumulative translation adjustment - - - 34,887 - 34,887 Balance - November 30, 2013 (10,588,952) 4,080,020 16,249,397 (64,736) 735,084 10,410,813 Balance - September 1, 2014 (10,117,837) 7,330,563 16,253,631 (797) 912,214 14,377,774 Net earnings for the three month period ended November 30, 2014 276,851 - - - - 276,851 Dividend payments declared (425,503) - - - - (425,503) Share-based payment expense - - 164 - - 164 Common share issuance - 379,500 - - - 379,500 Change in unrealized loss on marketable securities available for sale - - - - (16,708) (16,708) Change in cumulative translation adjustment - - - 252,719 - 252,719 Balance - November 30, 2014 (10,266,489) 7,710,063 16,253,795 251,922 895,506 14,844,797 The accompanying notes are an integral part of these consolidated interim financial statements.
Investors & Analysts: Chris Beck, CPA, Chief Financial Officer, The Caldwell Partners International, email@example.com, +1-617-934-1843; Media: Caroline Lomot, Director of Marketing, The Caldwell Partners International, firstname.lastname@example.org , +1-516-830-3535
SOURCE The Caldwell Partners International Inc.