Toronto, Ontario– April 12, 2012 – Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2012 second quarter ended February 29, 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 Feb 29
||Six Months Ended Feb 29
|Operating revenue||$7,221||$ 8,844
|Operating profit (loss)||(246)||133||(647)||(876)|
|Net earnings (loss) before tax||(239)||$148||(638)||(845)|
|Net earnings (loss) after tax||(241)||$148||(685)||(845)|
|Net earnings (loss) per share||(0.014)||$ 0.009||(0.040)||(0.049)|
“Softness in the financial services sector had a significant impact on the year-over-year top line performance in the first six months of our fiscal year,” said John N. Wallace, chief executive officer. “We are not satisfied with these revenue results and are marketing aggressively in all sectors and practices. We also continue to fine-tune our partner ranks, making strategic additions of new partners to strengthen the team.
With a good deal of our partner and management compensation tied directly to revenue achievement, costs in this area have been contained proportional to the decrease in revenues. Further, we continue to manage our general and administrative costs, reporting an overall decrease in these expenses despite continued expansion of our operations. As a result, with softer revenues, we have reduced the year-to-date operating loss as compared to the same period last year.
Wallace continued: “Market conditions have been improving over the last few months, and our recent booking trend has been positive, providing momentum and billing backlog going into the third quarter. With 5 new partners hired since this time last year, we remain confident of a strong and profitable second half.”
Financial Highlights (all numbers expressed in $000s)
- Fiscal 2012 six month operating revenues decreased 5% over the same period a year earlier to $14,490. The decrease is attributable to weakness in Canadian search revenues (down 29%) more than offsetting growth in US search revenues (up 12%).
- Fiscal 2012 second quarter operating revenue decreased by 18% over the comparable period last year to $7,221.
- Revenues from US operations represent 67% or $4,870 of the second quarter total, decreasing 11% from $5,483 in the comparable period of 2011. This decrease in revenues reflects softness in certain sectors, most notably financial services.
- Revenues from Canadian operations decreased 30% to $2,351 in the current period from $3,361 in the comparable period of 2011, due to weakness in the financial service practice and in the Toronto office.
- Sequentially, 2012 second quarter revenues were almost identical to 2012 first quarter revenues.
- Year-to-date operating loss of $647 represents a 26% improvement over the prior year (2011: loss of $877).
- Lower second quarter revenues as compared to the comparable period of fiscal 2011 resulted in an operating loss of $246 for the quarter (2011: profit of $133).
- Year-to-date net loss of $686 represents a 19% improvement over fiscal 2011 comparable results (2011: net loss of $845)
- The second quarter net loss was $241 in fiscal 2012 as compared to a profit of $148 in the comparable period a year earlier.
Over the past two years, Caldwell Partners has transformed from a respected Canadian brand to a firm with a strong North American presence. At the end of the second quarter of fiscal 2012, the firm now has 23 of its total 34 partners located in six American offices, and has established strategic alliances with executive search firms based in London and Hong Kong.
Operating revenue, gross profit/loss and operating income/loss are non-GAAP (generally accepted accounting principles) measures. The company believes, however, that they provide a useful understanding of the performance of its core human capital services operations as they exclude income or loss from investments and taxes.
For a complete discussion of the quarterly and annual financial results, please see the company’s Management Discussion and Analysis 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.
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