- Quarterly revenue up 2% over comparable period last year
- Board declares 1.5 cent quarterly dividend
TORONTO, Jan. 11, 2013 /PRNewswire/ - Retained executive search firm The Caldwell Partners International Inc. (TSX: CWL) today issued its financial results for the fiscal 2013 first quarter ended November 30, 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 November 30 | ||
| 2012 | 2011 | |
| Operating revenue | 7,417 | $7,270 |
| Expenses | 7,469 | 7,671 |
| Operating loss | (52) | (401) |
| Investment income | 2 | 2 |
| Net loss before tax | (50) | (399) |
| Net loss after tax | (56) | (444) |
| Net loss per share | (0.003) | (0.026) |
"In a challenging business climate, we are gratified to have increased revenues by 2% year over year," said John N. Wallace, chief executive officer. "Given the on-going economic uncertainty - particularly in the United States - clients continue to be cautious relative to human capital investments."
Wallace continued: "We remain confident regarding the long-term prospects for executive search in North America. To that end, we are focused on improving our overall market presence and competiveness, and will continue to invest in the growth of our firm. We will make targeted, strategic additions to our partner team 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 on March 15, 2013 to shareholders of record on January 22, 2013.
Financial Overview (all numbers expressed in $000s)
- Operating revenue:
- Fiscal 2013 first quarter operating revenue increased by 2% over the comparable period last year to 7,417.
- US revenues represent 60% or $4,467 of the first quarter total, decreasing 13% from $5,126 in the comparable period of 2012.
- Revenues from Canadian operations increased 38% to $2,950 in the current period from $2,144 in the comparable period of 2012.
- Although up slightly over the comparable period last year, 2013 first quarter revenues declined 16% or $1,439 sequentially over 2012 fourth quarter revenues. Historically, first quarter revenues are soft particularly in comparison to third and fourth quarter levels.
- Operating loss:
- Higher first quarter revenues and improved direct operating margins as compared to the comparable period of fiscal 2012, resulted in a reduced operating loss of $52 (2012: loss of $401) for the quarter.
- Net loss:
- The first quarter net loss after tax was $56 in fiscal 2013 as compared to a loss of $444 in the comparable period a year earlier.
Over the past three years, The Caldwell Partners has transformed from a respected, strictly Canadian brand to a firm with a strong North American presence. At the end of the first quarter of fiscal 2013, 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.
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 one of North America's premier providers of executive search and has been for 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
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.
| THE CALDWELL PARTNERS INTERNATIONAL INC. | ||||||||||
| CONSOLIDATED INTERIM STATEMENTS OF LOSS | ||||||||||
| (unaudited - in $Canadian) | ||||||||||
| Three months ended | ||||||||||
| November 30 | ||||||||||
| 2012 | 2011 | |||||||||
| Revenues | 7,417,211 | 7,269,878 | ||||||||
| Cost of sales | 5,620,120 | 5,912,299 | ||||||||
| Gross profit | 1,797,091 | 1,357,579 | ||||||||
| Expenses | ||||||||||
| General and administrative | 1,709,714 | 1,667,798 | ||||||||
| Sales and marketing | 126,957 | 135,424 | ||||||||
| Other gains and losses (net) | 12,859 | (44,838) | ||||||||
| 1,849,530 | 1,758,384 | |||||||||
| Operating loss | (52,439) | (400,805) | ||||||||
| Investment income | 2,523 | 2,268 | ||||||||
| Loss before income taxes | (49,916) | (398,537) | ||||||||
| Income tax | 6,105 | 45,784 | ||||||||
| Net loss for the period attribtuable to owners of the Company | (56,021) | (444,321) | ||||||||
| Loss per share: | ||||||||||
| Basic and diluted | (0.003) | (0.026) | ||||||||
| CONSOLIDATED INTERIM STATEMENTS OF | ||||||||||
| COMPREHENSIVE LOSS | ||||||||||
| (unaudited - in $Canadian) | ||||||||||
| Three months ended | ||||||||||
| November 30 | ||||||||||
| 2012 | 2011 | |||||||||
| Net loss for the period | (56,021) | (444,321) | ||||||||
| Other comprehensive income: | ||||||||||
| Unrealized gain (loss) on marketable securities | 97,529 | (63,234) | ||||||||
| Cumulative translation adjustment | 20,437 | 135,650 | ||||||||
| Comprehensive loss for the period attributable to owners of the Company | 61,945 | (371,905) | ||||||||
| THE CALDWELL PARTNERS INTERNATIONAL INC. | ||||||||||
| CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION | ||||||||||
| (unaudited - in $Canadian) | ||||||||||
| As at | ||||||||||
| November 30 | August 31 | |||||||||
| 2012 | 2012 | |||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | 5,456,089 | 6,494,246 | ||||||||
| Marketable securities | 3,400,573 | 3,303,044 | ||||||||
| Accounts receivable | 5,764,955 | 6,122,577 | ||||||||
| Income taxes receivable | 48,563 | 49,501 | ||||||||
| Prepaid expenses and other current assets | 771,144 | 775,572 | ||||||||
| 15,441,324 | 16,744,940 | |||||||||
| Non-current assets | ||||||||||
| Restricted cash | 253,567 | 252,966 | ||||||||
| Advances | 40,123 | 92,023 | ||||||||
| Property and equipment | 1,445,729 | 1,504,015 | ||||||||
| Intangible assets | 474,971 | 488,647 | ||||||||
| Goodwill | 981,260 | 973,458 | ||||||||
| Deferred income taxes | 73,889 | 73,302 | ||||||||
| Total assets | 18,710,863 | 20,129,351 | ||||||||
| Liabilities | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | 1,790,993 | 2,338,238 | ||||||||
| Compensation payable | 5,568,701 | 6,343,417 | ||||||||
| Dividends payable | 255,983 | 254,782 | ||||||||
| 7,615,677 | 8,936,437 | |||||||||
| Non-current liabilities | ||||||||||
| Long-term incentive accrual | 229,173 | 186,267 | ||||||||
| 7,844,850 | 9,122,704 | |||||||||
| Equity attributable to owners of the Company | ||||||||||
| Share capital | 4,080,020 | 4,016,020 | ||||||||
| Contributed surplus | 16,235,252 | 16,245,848 | ||||||||
| Accumulated other comprehensive income | 240,258 | 122,292 | ||||||||
| Deficit | (9,689,517) | (9,377,513) | ||||||||
| Total equity | 10,866,013 | 11,006,647 | ||||||||
| Total liabilities and equity | 18,710,863 | 20,129,351 | ||||||||
| THE CALDWELL PARTNERS INTERNATIONAL INC. | ||||||
| CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY | ||||||
| (unaudited - in $Canadian) | ||||||
| Accumulated Other Comprehensive | ||||||
| Income (Loss) | ||||||
| Unrealized Gains | ||||||
| Cumulative | (Losses) on | Total | ||||
| Contributed | Translation | Marketable | Shareholders' | |||
| Deficit | Capital Stock | Surplus | Adjustment | Securities | Equity | |
| Balance - September 1, 2011 | (9,848,957) | 16,064,078 | 4,179,399 | (315,525) | 230,598 | 10,309,593 |
| Net loss for the three month period ended | ||||||
| November 30, 2011 | (444,321) | - | - | - | - | (444,321) |
| Share based compensation expense | - | - | 1,394 | - | - | 1,394 |
| Change in unrealized gains and losses on | ||||||
| marketable securities available for sale | - | - | - | - | (63,234) | (63,234) |
| Change in cumulative translation adjustment | - | - | - | 135,650 | - | 135,650 |
| Balance - November 30, 2011 | (10,293,278) | 16,064,078 | 4,180,793 | (179,875) | 167,364 | 9,939,082 |
| Net earnings for the period of December 1, 2011 | ||||||
| to August 31, 2012 | 1,425,329 | - | - | - | - | 1,425,329 |
| Dividend payments declared | (509,564) | - | - | - | - | (509,564) |
| Share based compensation expense | - | - | 16,997 | - | - | 16,997 |
| Reduction of stated capital | (12,048,058) | 12,048,058 | - | - | 0 | |
| Change in unrealized gains and losses on | ||||||
| marketable securities available for sale | - | - | - | - | 239,451 | 239,451 |
| Change in cumulative translation adjustment | - | - | - | (104,648) | - | (104,648) |
| Balance - September 1, 2012 | (9,377,513) | 4,016,020 | 16,245,848 | (284,523) | 406,815 | 11,006,647 |
| Net loss for the three month period ended | ||||||
| November 30, 2012 | (56,021) | - | - | - | - | (56,021) |
| Dividend payments declared | (255,983) | - | - | - | - | (255,983) |
| Employee stock option plan share issue | - | 64,000 | (14,776) | - | - | 49,224 |
| Share based compensation expense | - | - | 4,180 | - | - | 4,180 |
| Change in unrealized gains and losses on | ||||||
| marketable securities available for sale | - | - | - | - | 97,529 | 97,529 |
| Change in cumulative translation adjustment | - | - | - | 20,437 | - | 20,437 |
| Balance - November 30, 2012 | (9,689,517) | 4,080,020 | 16,235,252 | (264,086) | 504,344 | 10,866,013 |
| THE CALDWELL PARTNERS INTERNATIONAL INC. | ||||||||||
| CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW | ||||||||||
| (unaudited - in $Canadian) | ||||||||||
| Three months ended | ||||||||||
| November 30 | ||||||||||
| 2012 | 2011 | |||||||||
| Cash flow provided by (used in) | ||||||||||
| Operating activities | ||||||||||
| Net loss for the period | (56,021) | (444,321) | ||||||||
| Adjustments for: | ||||||||||
| Depreciation | 91,327 | 97,385 | ||||||||
| Amortization of intangibles | 17,486 | 30,687 | ||||||||
| Stock compensation expense | 8,604 | 1,394 | ||||||||
| Unrealized foreign exchange on subsidiary loans | (14,928) | (104,839) | ||||||||
| Non-cash incentive compensation | 42,906 | 21,396 | ||||||||
| Increase in restricted cash | (601) | - | ||||||||
| Changes in items of working capital | ||||||||||
| Decrease in accounts receivable | 375,569 | 1,157,193 | ||||||||
| Decrease (increase) in income taxes receivable | 750 | (1,250) | ||||||||
| Decrease in prepaid expenses and other assets | 7,097 | 186,512 | ||||||||
| (Decrease) increase in accounts payable | (555,827) | 780,697 | ||||||||
| Decrease in compensation payable | (802,086) | (1,471,001) | ||||||||
| Net cash (used in) generated from operating activities | (885,724) | 253,853 | ||||||||
| Investing activities | ||||||||||
| Decrease (increase) in advances | 53,912 | (1,450) | ||||||||
| Additions to property and equipment | (28,926) | (77,631) | ||||||||
| Net cash generated from (used in) investing activities | 24,986 | (79,081) | ||||||||
| Financing activities | ||||||||||
| Dividend payments | (254,782) | - | ||||||||
| Share issuance from employee stock option plan | 44,800 | - | ||||||||
| Net cash used in financing activities | (209,982) | - | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 32,563 | 187,841 | ||||||||
| Net (decrease) increase in cash and cash equivalents | (1,038,157) | 362,613 | ||||||||
| Cash and cash equivalents, beginning of period | 6,494,246 | 6,944,084 | ||||||||
| Cash and cash equivalents, end of period | 5,456,089 | 7,306,697 | ||||||||
SOURCE The Caldwell Partners International Inc.
