PR Newswire
TORONTO, Jan. 11, 2018
TORONTO, Jan. 11, 2018 /PRNewswire/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2018 first quarter ended November 30, 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 November 30 | |||
2017 |
2016 | ||
Professional fees |
$14,973 |
$13,629 | |
Investment income |
- |
- | |
License fee revenue |
$76 |
$75 | |
Operating revenue |
$15,049 |
$13,704 | |
Cost of sales |
$11,073 |
$10,221 | |
Expenses |
$3,072 |
$2,384 | |
Operating profit |
$904 |
$1,099 | |
Investment income from marketable securities |
$2 |
- | |
Earnings before tax |
$906 |
$1,099 | |
Net earnings after tax |
$410 |
$762 | |
Net earnings per share |
$0.020 |
$0.038 |
"The Caldwell Partners team delivered a strong performance in the first quarter," said John Wallace, chief executive officer. "The overall economic outlook remains healthy, as we continue to experience solid search demand, notwithstanding our unbalanced performance from geography to geography. We saw robust revenue growth in the US this quarter, which augmented our somewhat muted results in Canada and continued financial investments in the establishment and growth of the UK. While we do anticipate unevenness from quarter to quarter and from our geographic regions, our partners are collectively performing strongly, with search volumes and pricing holding steady."
Wallace continued: "As we continue to grow our presence, and to further respond to our client's needs and requirements, it has become imperative to address the need to add supplemental breadth and depth to our existing teams, in order to continue to enhance our overall capabilities. As such, we will be placing incremental attention in the coming months and quarters on the recruitment of Partners and teams, with a particular emphasis in the United States."
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 January 23, 2018 and to be paid on March 19, 2018.
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, our ability to attract and retain key personnel; exposure to our Partners taking our clients with them to another firm; the performance of the Canadian, US and international economies; competition from other companies directly or indirectly engaged in executive search; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; our ability to align our cost structure to changes in our revenue; adverse tax law rulings; our ability to generate sufficient cash flow from operations to support our growth and maintain our dividend; foreign currency exchange rate fluctuations; marketable securities valuation fluctuations; volatility of the market price and volume of our common shares; and any potential impairment of our acquired goodwill and intangible assets. 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 $000s Canadian) | ||||||
As at | ||||||
November 30 |
August 31 | |||||
2017 |
2017 | |||||
Assets |
||||||
Current assets |
||||||
Cash and cash equivalents |
9,455 |
10,917 | ||||
Marketable securities |
5,107 |
5,048 | ||||
Accounts receivable |
9,289 |
9,393 | ||||
Prepaid expenses and other current assets |
1,656 |
1,848 | ||||
25,507 |
27,206 | |||||
Non-current assets |
||||||
Restricted cash |
136 |
133 | ||||
Marketable securities |
177 |
172 | ||||
Advances |
379 |
503 | ||||
Property and equipment |
1,649 |
1,699 | ||||
Intangible assets |
160 |
178 | ||||
Goodwill |
2,913 |
2,761 | ||||
Deferred income taxes |
1,691 |
1,650 | ||||
Total assets |
32,612 |
34,302 | ||||
Liabilities |
||||||
Current liabilities |
||||||
Accounts payable |
2,133 |
2,044 | ||||
Compensation payable |
14,110 |
15,896 | ||||
Dividends payable |
408 |
408 | ||||
Income taxes payable |
969 |
636 | ||||
Deferred revenue |
227 |
1,107 | ||||
17,847 |
20,091 | |||||
Non-current liabilities |
||||||
Compensation payable |
1,178 |
958 | ||||
Provisions |
125 |
133 | ||||
19,150 |
21,182 | |||||
Equity attributable to owners of the Company |
||||||
Share capital |
7,515 |
7,515 | ||||
Contributed surplus |
14,995 |
14,992 | ||||
Accumulated other comprehensive income |
1,187 |
850 | ||||
Deficit |
(10,235) |
(10,237) | ||||
Total equity |
13,462 |
13,120 | ||||
Total liabilities and equity |
32,612 |
34,302 |
THE CALDWELL PARTNERS INTERNATIONAL INC. | |||||
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS | |||||
(unaudited - in $000s Canadian, except per share amounts) | |||||
Three months ended | |||||
November 30 | |||||
2017 |
2016 | ||||
Revenues |
|||||
Professional fees |
14,973 |
13,629 | |||
License fees |
76 |
75 | |||
15,049 |
13,704 | ||||
Cost of sales |
11,073 |
10,221 | |||
Gross profit |
3,976 |
3,483 | |||
Expenses |
|||||
General and administrative |
2,813 |
2,256 | |||
Sales and marketing |
329 |
177 | |||
Foreign exchange gain |
(70) |
(49) | |||
3,072 |
2,384 | ||||
Operating profit |
904 |
1,099 | |||
Investment income |
2 |
- | |||
Earnings before income taxes |
906 |
1,099 | |||
Income taxes |
496 |
337 | |||
Net earnings for the period attributable to owners of the Company |
410 |
762 | |||
Earnings per share |
|||||
Basic and diluted |
0.020 |
0.038 | |||
CONSOLIDATED INTERIM STATEMENTS OF | |||||
COMPREHENSIVE EARNINGS | |||||
(unaudited - in $000s Canadian) | |||||
Three months ended | |||||
November 30 | |||||
2017 |
2016 | ||||
Net earnings for the period |
410 |
762 | |||
Other comprehensive income: |
|||||
Items that may be reclassified subsequently to net earnings |
|||||
Unrealized gain on marketable securities |
59 |
38 | |||
Cumulative translation adjustment |
278 |
85 | |||
Comprehensive earnings for the period attributable to owners of the Company |
747 |
885 |
THE CALDWELL PARTNERS INTERNATIONAL INC. | |||||||
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY | |||||||
(unaudited - in $000s Canadian) |
|||||||
Accumulated Other Comprehensive |
|||||||
Income (Loss) |
|||||||
Unrealized |
|||||||
Cumulative |
Gains on |
||||||
Contributed |
Translation |
Marketable |
Total | ||||
Deficit |
Share Capital |
Surplus |
Adjustment |
Securities |
Equity | ||
Balance - September 1, 2016 |
(10,572) |
7,295 |
15,025 |
842 |
337 |
12,927 | |
Net earnings for the three month period ended |
|||||||
November 30, 2016 |
762 |
- |
- |
- |
- |
762 | |
Dividend payments declared |
(403) |
- |
- |
- |
- |
(403) | |
Change in unrealized gains on |
|||||||
marketable securities available for sale |
- |
- |
- |
- |
38 |
38 | |
Change in cumulative translation adjustment |
- |
- |
- |
85 |
- |
85 | |
Balance - November 30, 2016 |
(10,213) |
7,295 |
15,025 |
927 |
375 |
13,409 | |
Balance - September 1, 2017 |
(10,237) |
7,515 |
14,992 |
428 |
422 |
13,120 | |
Net earnings for the three month period ended |
|||||||
November 30, 2017 |
410 |
- |
- |
- |
- |
410 | |
Dividend payments declared |
(408) |
- |
- |
- |
- |
(408) | |
Share based payment expense |
- |
- |
3 |
- |
- |
3 | |
Change in unrealized gains on |
|||||||
marketable securities available for sale |
- |
- |
- |
- |
59 |
59 | |
Change in cumulative translation adjustment |
- |
- |
- |
278 |
- |
278 | |
Balance - November 30, 2017 |
(10,235) |
7,515 |
14,995 |
706 |
481 |
13,462 |
THE CALDWELL PARTNERS INTERNATIONAL INC. | ||||
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW | ||||
(unaudited - in $000s Canadian) | ||||
Three months ended | ||||
November 30 | ||||
2017 |
2016 | |||
Cash flow provided by (used in) |
||||
Operating activities |
||||
Net earnings for the period |
410 |
762 | ||
Add (deduct) items not affecting cash |
||||
Depreciation |
130 |
127 | ||
Amortization |
22 |
23 | ||
Amortization of advances |
208 |
183 | ||
Share based payment expense |
3 |
- | ||
Unrealized foreign exchange on subsidiary loans |
(86) |
(56) | ||
Reduction in marketable securities following assignment to partner |
- |
432 | ||
Decrease in provisions |
(7) |
- | ||
Change in fair value of contingent consideration |
- |
(116) | ||
Decrease in deferred revenue |
(884) |
(279) | ||
Increase (decrease) in cash settled share-based compensation payable |
220 |
(259) | ||
Decrease in accounts receivable |
295 |
1,932 | ||
Decrease in prepaid expenses and other assets |
163 |
329 | ||
Increase (decrease) in accounts payable |
62 |
(349) | ||
Decrease in compensation payable |
(1,970) |
(771) | ||
Increase (decrease) in income taxes payable |
329 |
(86) | ||
Payment of contingent consideration |
- |
(181) | ||
Net cash (used in) provided by operating activities |
(1,105) |
1,691 | ||
Investing activities |
||||
Repayment of advances |
- |
350 | ||
Additions to property and equipment |
(50) |
(167) | ||
Net cash (used in) provided by investing activities |
(50) |
183 | ||
Financing activities |
||||
Dividend payments |
(408) |
(403) | ||
Net cash used in financing activities |
(408) |
(403) | ||
Effect of exchange rate changes on cash and cash equivalents |
101 |
151 | ||
Net (decrease) increase in cash and cash equivalents |
(1,462) |
1,622 | ||
Cash and cash equivalents, beginning of period |
10,917 |
8,422 | ||
Cash and cash equivalents, end of period |
9,455 |
10,044 |
SOURCE The Caldwell Partners International Inc.