• Company posts annual operating profit of $1.0 million
• Board declares quarterly dividend at 1.5 cents per share
Toronto, Ontario – November 15, 2012 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2012 fourth quarter and year ended August 31, 2012. 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)
|Three Months Ended
|Year Ended Aug 31|
|Net earnings before tax||953||667||$1,026||357|
|Net earnings after tax||956||$498||981||187|
|Net earnings per share||$ 0.056||$0.029||$0.058||$0.011|
“While the overall business climate remains challenging, our ongoing commitment to the management of our cost structure has resulted in a substantial year over year increase in profit,” said John Wallace, chief executive officer. “Clients have been cautious in making human capital investments, given the economic uncertainty, yet we remain confident regarding the long term prospects for executive search in North America and will continue to invest in the growth of our firm.”
Wallace continued: “Our primary objectives are – and always have been – to keep improving our service to our clients and creating value for our shareholders. To that end, we remain focused on improving our overall market presence and competitiveness. Our current partner team is a cohesive group of experienced professionals with a remarkable esprit de corps, representing a solid platform from which we can grow. We will make targeted, strategic additions to this team to continue to add to the depth and breadth of our sector and functional experience.”
The Board of Directors today also declared the payment of a quarterly dividend of 1.5 cents per Common Share payable December 14, 2012 to shareholders of record on November 26, 2012.
Financial Highlights (all numbers expressed in $000s)
- Fourth quarter revenue decreased by 6% over the comparable period last year to
- Revenues from US operations represent 66% or $5,841 of the fourth quarter total,
decreasing 5% from $6,147 in the comparable period of 2011.
- Revenues from Canadian operations decreased 7% to $3,015 in the current period
from $3,230 in the comparable period of 2011.
- Sequentially, 2012 fourth quarter revenues were 5% lower than those of the third
- Annual 2012 operating revenues decreased 4% over 2011 levels to $32,704. The
decrease is attributable to weakness in Canadian search revenues (down 20%)
more than offsetting the growth in US search revenue (up 5%)
- For the full year US revenues represent 69% of consolidated revenues.
- The 2012 annual operating profit of $1,011 represents a $900 improvement over
the $111 earned last year.
- Lower direct costs and a higher gross profit margin, as compared to the fourth
quarter of 2011 resulted in an operating profit of $948 for the quarter, double the
$473 earned in the previous year.
- Fourth quarter net earnings after tax was $956 in 2012 representing a 93%
improvement over net earnings of $498 in the comparable period a year earlier.
- The 2012 annual net earnings after tax was $981, a $794 improvement over the
$187 earned last year.
Over the past three years, Caldwell Partners has evolved from a respected Canadian brand to a firm with a strong North American presence. In that time, revenues have increased more than two and a half times, the company has returned to profitability, and a regular quarterly dividend to shareholders has been reinstated. At the end of the 2012, the firm now has three offices in Canada, six offices in the United States, and has established strategic alliances with executive search firms based in London and Hong Kong.
For a complete discussion of the quarterly and annual financial results, please see the company’s Audited Financial Statements and Management Discussion and Analysis which will be posted on SEDAR at www.sedar.com
About Caldwell Partners
Caldwell Partners is one of North America’s premier providers of executive search and has been for more than 40 years. As one of the region’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 in Vancouver, San Francisco, Los Angeles, Dallas, Calgary, Atlanta, Toronto, Stamford, New York City, and a strategic presence in London and Hong Kong, 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 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.
For further information, please contact:
Investors & Analysts:
Karen Richards, CA, Chief Financial Officer
The Caldwell Partners International
Caroline Lomot, Director of Marketing
The Caldwell Partners International