The Caldwell Partners International Issues Fiscal 2017 First Quarter Financial Results

Mittwoch, 11.01.2017 23:10 von PR Newswire

PR Newswire

  • First quarter revenue of $13,704,000.
  • Operating profit of $1,099,000.
  • Board declares twentieth consecutive quarterly dividend of 2.0 cents.

TORONTO, Jan. 11, 2017 /PRNewswire/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2017 first quarter ended November 30, 2016. 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


2016

2015

Professional fees

13,629

13,945

License fees

75

65


Revenues

13,704

14,010

Cost of sales

10,221

10,868

Expenses

2,384

3,290


Operating profit

1,099

(148)

Investment income from marketable securities

-

1


Earnings before tax

1,099

(147)


Net earnings after tax

762

(165)


Net earnings per share

$0.038

($0.008)

 

"The Caldwell Partners team delivered a strong performance in the first quarter," said John Wallace, chief executive officer. "The cost alignment initiatives that we undertook last year are having their positive intended effect, as evidenced by the marked increase in operating profit this quarter.  We remain committed to being an annuity-based firm that, in normal markets, will deliver an operating profit that will allow us to reward our shareholders through a sustainable dividend, to continue to organically grow the company's revenues, and to maintain a cash position that will underpin the firm. We look forward to continued profitability as the year unfolds."  

Wallace continued: "Moving forward, we are focussing on recruitment in the coming year, as we look to grow the firm by adding breadth and depth to further strengthen our team in certain industries and geographies, further enhancing our capabilities to serve our clients on a global basis."

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 20, 2017 and to be paid on March 15, 2017.

Financial Highlights (all numbers expressed in $000s)

  • Operating revenue:
    • Professional fees for the first quarter of 2017 decreased 2.3% (a decline of 1.7% excluding a 0.6% variance from exchange rate fluctuations) over the comparable period last year to $13,629 (2016: $13,945).
    • First quarter professional fees in the US were down 4.2% (down 4.5% excluding a 0.3% variance from exchange rate fluctuations) to $9,557 (2016: $9,973). Increases in the Number of Assignments per Partner and the Average Number of Partners were more than offset by a lower Average Fee per Assignment.
    • First quarter professional fees in Canada were up 6.5% to $3,589 (2016: $3,370). A higher Average Number of Partners and higher Number of Assignments per Partner were partially offset by a lower Average Fee per Assignment.
    • First quarter professional fees in Europe were down 19.8% (down 1.9% excluding a 17.9% unfavourable variance from exchange rate fluctuations) to $483 (2016: $602). A higher Average Fee per Assignment was more than offset by a lower Average Number of Partners and a lower Number of Assignments per Partner.
    • License fees from our licensees in Latin America and New Zealand for the use of the Caldwell Partners brand and intellectual property for the 2016 first quarter were $75 (2016: $65).

  • Operating profit:
    • For the first quarter of 2017, lower revenue ($306) was more than offset by lower cost of sales and expenses. The lower cost of sales was due primarily to lower fixed partner compensation from lower staffing in Europe and changes made to variable incentive compensation rates in compensation plans fiscal 2017 ($647). The lower expenses were predominantly from a reduction in share price-based compensation accruals and lack of holding our global partner conference during the first quarter of fiscal 2017 which had been in the first quarter of fiscal 2016 ($906). These variances resulted in an increase in operating profit of $1,247 to $1,099 (2016: loss of $148) over the comparable period in the prior year. On a segment basis, $510 of profit was from the US ($727 net of intercompany license fees), $655 of profit was from Canada ($439 net of intercompany license fee revenue) and Europe's operating loss was $66. The increase in absolute operating profit of $1,247 was the result of increased performance in all segments, with the US up by $938, the UK $259 and Canada $50.
    • We will be holding our global partner conference during the second quarter, which will cause additional expenses during that specific period ($339 when held during the first quarter of fiscal 2016).

  • Net earnings after tax:
    • First quarter net income was $762 ($0.038 per share), as compared to a loss of $165 ($0.008 per share) in the comparable period a year earlier.

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 $000s Canadian)


As at


November 30

August 31


2016

2016

Assets



Current assets




Cash and cash equivalents

10,044

8,422


Marketable securities

4,962

5,056


Accounts receivable

8,240

10,031


Prepaid expenses and other current assets

1,806

2,416


25,052

25,925

Non-current assets




Restricted cash

191

187


Marketable securities

293

573


Advances

280

502


Property and equipment 

1,905

1,838


Intangible assets 

261

279


Goodwill 

2,905

2,920


Deferred income taxes 

2,529

2,475

Total assets

33,416

34,699




Liabilities



Current liabilities




Accounts payable

2,065

2,384


Compensation payable

15,578

16,125


Dividends payable

403

403


Income taxes payable

440

513


Contingent consideration

-

289


Deferred revenue

917

1,187


19,403

20,901

Non-current liabilities




Compensation payable

428

687


Provisions

176

184


20,007

21,772




Equity attributable to owners of the Company




Share capital

7,295

7,295


Contributed surplus

15,025

15,025


Accumulated other comprehensive income

1,302

1,179


Deficit

(10,213)

(10,572)

Total equity

13,409

12,927

Total liabilities and equity

33,416

34,699

 

 


THE CALDWELL PARTNERS INTERNATIONAL INC.


CONSOLIDATED INTERIM STATEMENTS OF EARNINGS (LOSS)

(unaudited - in $000s Canadian, except per share amounts)


Three months ended


November 30


2016

2015




Revenues




Professional fees

13,629

13,945


License fees

75

65


13,704

14,010




Cost of sales

10,221

10,868

Gross profit

3,483

3,142




Expenses




General and administrative

2,256

3,036


Sales and marketing

177

260


Foreign exchange gain

(49)

(6)


2,384

3,290

Operating profit (loss)

1,099

(148)




Investment income

-

1

Earnings (loss) before income taxes

1,099

(147)




Income tax expense

337

18




Net earnings (loss) for the period attributable to owners of the Company

762

(165)




Earnings (loss) per share




Basic and diluted

0.038

(0.008)



CONSOLIDATED INTERIM STATEMENTS OF 

COMPREHENSIVE EARNINGS (LOSS)

(unaudited - in $000s Canadian)


Three months ended


November 30


2016

2015




Net earnings (loss) for the period

762

(165)




Other comprehensive income:



Items that may be reclassified subsequently to net earnings




Unrealized gain on marketable securities

38

24


Cumulative translation adjustment

85

14

Comprehensive earnings (loss) for the period attributable to owners of the Company

885

(127)

 

 


THE CALDWELL PARTNERS INTERNATIONAL INC.


CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(unaudited - in $000s Canadian)





Accumulated Other Comprehensive






Income







Unrealized






Cumulative 

Gains on





Contributed

Translation

Marketable

Total


Deficit

Capital Stock

Surplus

Adjustment

Securities

Equity








Balance - September 1, 2015

(9,843)

7,295

15,025

1,272

841

14,590








Net loss for the three month period ended 








November 30, 2015

(165)

-

-

-

-

(165)








Dividend payments declared

(403)

-

-

-

-

(403)








Change in unrealized gain on marketable securities 








available for sale

-

-

-

-

24

24








Change in cumulative translation adjustment

-

-

-

14

-

14








Balance - November 30, 2015

(10,411)

7,295

15,025

1,286

865

14,060















Balance - September 1, 2016

(10,572)

7,295

15,025

841

338

12,927








Net earnings for the three month period ended 








November 30, 2016

762

-

-

-

-

762








Dividend payments declared

(403)

-

-

-

-

(403)








Change in unrealized gain 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

926

376

13,409

 

 


THE CALDWELL PARTNERS INTERNATIONAL INC.


CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW

(unaudited - in $000s Canadian)


Three months ended


November 30


2016

2015




Cash flow provided by (used in) 






Operating activities




Net earnings (loss) for the period

762

(165)


Adjustments for:





Depreciation

127

139



Amortization

23

23



Amortization of advances

183

160



Change in fair value of contingent consideration

(116)

3



Unrealized foreign exchange on subsidiary loans

(56)

(8)



Decrease in long-term incentive accrual

(259)

(537)



Decrease in accounts receivable

1,932

1,205



Decrease in marketable securities

432

-



Decrease in prepaid expenses and other assets

329

33



(Decrease) increase in accounts payable 

(349)

286



Decrease in compensation payable

(771)

(842)



Decrease in income taxes payable

(86)

(161)



Payment of cash-settled share-based compensation

-

(449)



Payment of contingent consideration

(181)

-



Decrease in deferred revenue

(279)

(313)

Net cash provided by (used in) operating activities

1,691

(626)




Investing activities




Decrease in advances

350

-


Increase in restricted cash

-

(1)


Additions to property and equipment

(167)

(58)

Net cash provided by investing activities

183

(59)




Financing activities




Share purchase and cancellation

-

(1,604)


Dividend payments

(403)

(425)

Net cash used in financing activities

(403)

(2,029)




Effect of exchange rate changes on cash and cash equivalents

151

64

Net increase (decrease) in cash and cash equivalents

1,622

(2,650)

Cash and cash equivalents, beginning of period

8,422

9,956

Cash and cash equivalents, end of period

10,044

7,306

 


SOURCE The Caldwell Partners International Inc.