The Caldwell Partners International Issues Fiscal 2015 First Quarter Financial Results
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
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, cbeck@caldwellpartners.com, +1-617-934-1843; Media: Caroline Lomot, Director of Marketing, The Caldwell Partners International, clomot@caldwellpartners.com , +1-516-830-3535
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