PR Newswire
TORONTO, July 5, 2017
TORONTO, July 5, 2017 /PRNewswire/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2017 third quarter ended May 31, 2017. 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 May 31 |
Nine Months Ended | ||||
2017 |
2016 |
2017 |
2016 | ||
Professional fees |
$14,443 |
$13,680 |
$41,737 |
$41,906 | |
Investment income |
- |
$90 |
- |
$877 | |
License fees |
$81 |
$57 |
$218 |
$189 | |
Revenues |
$14,524 |
$13,827 |
$41,955 |
$42,972 | |
Cost of sales |
$10,771 |
$10,596 |
$30,717 |
$33,157 | |
Expenses (1) |
$3,131 |
$2,551 |
$8,911 |
$8,573 | |
Operating profit |
$622 |
$680 |
$2,327 |
$1,242 | |
Investment (loss) income from marketable securities |
($142) |
- |
($142) |
$404 | |
Earnings before tax |
$480 |
$680 |
$2,185 |
$1,646 | |
Net earnings after tax |
$224 |
$339 |
$1,253 |
$939 | |
Net earnings per share |
$0.011 |
$0.017 |
$0.062 |
$0.046 |
"We continue to focus on growing our firm in a way that will serve to make our clients better, more competitive and more successful," said John Wallace, chief executive officer. "We have found that keeping our clients at the centre of our strategy has been the catalyst for our growth and the driver behind our position as one of the fastest-growing search firms in our space and category."
Wallace continued: "We added five new high calibre partners to our team during the third quarter and a sixth partner subsequent to quarter-end. This brings the number of partners in our wholly-owned offices to 40 – a new high water mark for the firm. We will continue to make strategic additions to the firm where it will expand the products and services that we are able to provide to our clients and to the benefit of our shareholders."
The Board of Directors today also declared the payment of a quarterly dividend of 2.0 cents per Common Share payable to holders of Common Shares of record on July 14, 2017 and to be paid on September 8, 2017.
Financial Highlights (all numbers expressed in $000s)
Average Number of Partners, Professional Fees per Partner, Number of Assignments, Number of Assignments per Partner and Average Fee per Assignment do not have any standardized meaning under IFRS and may not be comparable to measures presented by other companies. These operating measures are used by the Company to analyze its results. Please refer to section "Non‐GAAP Financial Measures and Other Operating Measures" in the Company's MD&A for a definition of these terms.
For a complete discussion of the quarterly financial results, please see the company's Management Discussion and Analysis posted on SEDAR at www.sedar.com
About Caldwell Partners
Caldwell Partners is a leading international provider of executive search and has been for more than 45 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, Europe, Latin America and Asia Pacific, the firm takes pride in delivering an unmatched level of service and expertise to its clients.
The 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
Forward-looking statements in this document are based on current expectations that are subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by 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. The Company is 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 Company's ability to attract and retain key personnel; the performance of the Canadian, US domestic and international economies; competition from other companies directly or indirectly engaged in executive search; the possibility of a significant shareholder impacting shareholder votes; foreign currency exchange rate risks; the Company's ability to invest retained earnings in marketable securities and in short-term money market instruments to generate consistent investment income returns; volatility of the market price and volume of common shares; and legal matters. 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 the 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, and 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.
THE CALDWELL PARTNERS INTERNATIONAL INC. | |||
CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION | |||
(unaudited - in $Canadian) | |||
As at |
As at | ||
May 31 |
August 31 | ||
2017 |
2016 | ||
Assets |
|||
Current assets |
|||
Cash and cash-equivalents |
7,574 |
8,422 | |
Marketable securities |
5,012 |
5,056 | |
Accounts receivable |
9,510 |
10,031 | |
Prepaid expenses and other assets |
1,924 |
2,416 | |
24,020 |
25,925 | ||
Non-current assets |
|||
Restricted cash |
143 |
187 | |
Marketable securities |
295 |
573 | |
Advances |
618 |
502 | |
Property and equipment |
1,879 |
1,838 | |
Intangible assets |
215 |
279 | |
Goodwill |
2,972 |
2,920 | |
Deferred income taxes |
2,542 |
2,475 | |
Total assets |
32,684 |
34,699 | |
Liabilities |
|||
Current liabilities |
|||
Accounts payable |
2,116 |
2,384 | |
Compensation payable |
14,056 |
16,125 | |
Dividends payable |
408 |
403 | |
Income taxes payable |
891 |
513 | |
Contingent consideration |
- |
289 | |
Deferred revenue |
536 |
1,187 | |
18,007 |
20,901 | ||
Non-current liabilities |
|||
Compensation payable |
846 |
687 | |
Provisions |
154 |
184 | |
19,007 |
21,772 | ||
Equity attributable to owners of the Company |
|||
Share capital |
7,515 |
7,295 | |
Contributed surplus |
14,992 |
15,025 | |
Accumulated other comprehensive income |
1,702 |
1,179 | |
Deficit |
(10,532) |
(10,572) | |
Total equity |
13,677 |
12,927 | |
Total liabilities and equity |
32,684 |
34,699 |
THE CALDWELL PARTNERS INTERNATIONAL INC. | |||||
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS | |||||
(unaudited - in $Canadian) | |||||
Three months ended |
Nine months ended | ||||
May 31 |
May 31 | ||||
2017 |
2016 |
2017 |
2016 | ||
Revenues |
|||||
Professional fees |
14,443 |
13,680 |
41,737 |
41,906 | |
Investment income |
- |
90 |
- |
877 | |
License fees |
81 |
57 |
218 |
189 | |
14,524 |
13,827 |
41,955 |
42,972 | ||
Cost of sales |
10,771 |
10,596 |
30,717 |
33,157 | |
Gross profit |
3,753 |
3,231 |
11,238 |
9,815 | |
Expenses |
|||||
General and administrative |
2,903 |
2,313 |
8,275 |
7,787 | |
Sales & marketing |
277 |
257 |
716 |
787 | |
Foreign exchange gain |
(49) |
(19) |
(80) |
(1) | |
3,131 |
2,551 |
8,911 |
8,573 | ||
Operating profit |
622 |
680 |
2,327 |
1,242 | |
Investment (loss) income |
(142) |
- |
(142) |
404 | |
Earnings before income tax |
480 |
680 |
2,185 |
1,646 | |
Income tax |
256 |
341 |
932 |
707 | |
Net earnings for the period attributable to owners of the Company |
224 |
339 |
1,253 |
939 | |
Earnings per share |
|||||
Basic and diluted |
$0.011 |
$0.017 |
$0.062 |
$0.046 | |
CONSOLIDATED INTERIM STATEMENTS OF |
|||||
COMPREHENSIVE EARNINGS |
|||||
(unaudited - in $Canadian) |
|||||
Three months ended |
Nine months ended | ||||
May 31 |
May 31 | ||||
2017 |
2016 |
2017 |
2016 | ||
Net earnings for the period |
224 |
339 |
1,253 |
939 | |
Other comprehensive income: |
|||||
Items that may be reclassified subsequently to net income |
|||||
Realization of loss (gain) included in net earnings |
142 |
- |
142 |
(403) | |
Unrealized gain on marketable securities |
37 |
142 |
190 |
114 | |
Cumulative translation adjustment |
219 |
(152) |
191 |
(188) | |
Comprehensive earnings for the period attributable to owners of the Company |
622 |
329 |
1,776 |
462 |
THE CALDWELL PARTNERS INTERNATIONAL INC. |
|||||||
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY |
|||||||
(unaudited - in $Canadian) |
|||||||
Accumulated Other Comprehensive Income (Loss) |
|||||||
Deficit |
Capital Stock |
Contributed Surplus |
Cumulative Translation Adjustment |
Unrealized Gains on Marketable Securities |
Total Equity | ||
Balance - September 1, 2015 |
(9,843) |
7,295 |
15,025 |
1,271 |
841 |
14,589 | |
Net earnings for the nine month period ended |
|||||||
May 31, 2016 |
939 |
- |
- |
- |
- |
939 | |
Dividend payments declared |
(1,209) |
- |
- |
- |
- |
(1,209) | |
Realization of gains included in net income |
- |
- |
- |
- |
(403) |
(403) | |
Change in unrealized gain on |
|||||||
marketable securities available for sale |
- |
- |
- |
- |
114 |
114 | |
Change in cumulative translation adjustment |
- |
- |
- |
(188) |
- |
(188) | |
Balance - May 31, 2016 |
(10,113) |
7,295 |
15,025 |
1,083 |
552 |
13,842 | |
Balance - September 1, 2016 |
(10,572) |
7,295 |
15,025 |
841 |
338 |
12,927 | |
Net earnings for the nine month period ended |
|||||||
May 31, 2017 |
1,253 |
- |
- |
- |
- |
1,253 | |
Dividend payments declared |
(1,213) |
- |
- |
- |
- |
(1,213) | |
Employee share option plan share issue |
- |
220 |
(33) |
- |
- |
187 | |
Realization of losses included in net earnings |
- |
- |
- |
- |
142 |
142 | |
Change in unrealized gain on |
|||||||
marketable securities available for sale |
- |
- |
- |
- |
190 |
190 | |
Change in cumulative translation adjustment |
- |
- |
- |
191 |
- |
191 | |
Balance - May 31, 2017 |
(10,532) |
7,515 |
14,992 |
1,032 |
670 |
13,677 |
THE CALDWELL PARTNERS INTERNATIONAL INC. | ||||
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW | ||||
(unaudited - in $Canadian) | ||||
Nine months ended | ||||
May 31 | ||||
2017 |
2016 | |||
Cash flow provided by (used in) |
||||
Operating activities |
||||
Net earnings for the period |
1,253 |
939 | ||
Adjustments for: |
||||
Depreciation |
419 |
403 | ||
Amortization |
71 |
71 | ||
Amortization of advances |
566 |
775 | ||
Realization of capital loss (gain) |
142 |
(403) | ||
Change in fair value of contingent consideration |
(109) |
8 | ||
Unrealized foreign exchange on subsidiary loans |
(89) |
42 | ||
Increase (decrease) in long term incentive accrual |
159 |
(450) | ||
Decrease (incease) in marketable securities |
432 |
(1,309) | ||
Decrease in accounts receivable |
706 |
225 | ||
Decrease (increase) in prepaid expenses and other assets |
514 |
(98) | ||
Decrease in accounts payable |
(298) |
(282) | ||
Increase in income taxes payable |
356 |
345 | ||
Decrease in compensation payable |
(1,565) |
(3,355) | ||
Payment of contingent consideration |
(181) |
(254) | ||
Payment of compensation payable |
(709) |
(449) | ||
Decrease in deferred revenue |
(644) |
(114) | ||
Decrease in provisions |
(30) |
- | ||
Net cash provided by (used in) operating activities |
993 |
(3,906) | ||
Investment activities |
||||
Proceeds from sale of marketable securities |
101 |
3,171 | ||
Advances |
(669) |
(642) | ||
Decrease in restricted cash |
48 |
313 | ||
Additions to property and equipment |
(426) |
(267) | ||
Net cash (used in) provided by investing activities |
(946) |
2,575 | ||
Financing activities |
||||
Share issuance from employee share option plan |
187 |
- | ||
Share purchase and cancellation |
- |
(1,603) | ||
Dividend payments |
(1,208) |
(1,231) | ||
Net cash used in investing activities |
(1,021) |
(2,834) | ||
Effect of exchange rate changes on cash and cash equivalents |
126 |
247 | ||
Net decrease in cash and cash equivalents |
(848) |
(3,918) | ||
Cash and cash equivalents, beginning of period |
8,422 |
9,956 | ||
Cash and cash equivalents, end of period |
7,574 |
6,038 |
SOURCE The Caldwell Partners International Inc.