ADVERTISEMENT
Press release content from Accesswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Accesswire
Press release content from Accesswire. The AP news staff was not involved in its creation.

Caldwell Reports Record First Quarter

January 12, 2022 GMT
First quarter revenue of $38.4 million, a 112% increase year over year.TORONTO, ON / ACCESSWIRE / January 12, 2022 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for ...
First quarter revenue of $38.4 million, a 112% increase year over year.TORONTO, ON / ACCESSWIRE / January 12, 2022 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for ...
First quarter revenue of $38.4 million, a 112% increase year over year.TORONTO, ON / ACCESSWIRE / January 12, 2022 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for ...

  • First quarter revenue of $38.4 million, a 112% increase year over year.

TORONTO, ON / ACCESSWIRE / January 12, 2022 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for the fiscal 2022 first quarter ended November 30, 2021. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars. Financial results include those of IQTalent Partners, Inc. (IQTP) beginning on the date of acquisition of December 31, 2020.

Financial Highlights (in $000s except per share amounts)

Three Months Ended
11.30.2111.30.201

Professional fees - Caldwell

26,59218,053

Professional fees - IQTP

11,722-

Consolidated professional fees

38,31418,053

Direct expense reimbursements

11674

Revenues

38,43018,127

Cost of sales

30,43213,337

Government stimulus grants

-(110)

Reimbursed direct expenses

11674

Gross profit

7,8824,826

Selling, general and administrative expenses

5,9543,174

Acquisition-related expenses 2

801225

Operating profit

1,1271,427

Interest expense on lease liability

112107

Investment income

(5)(9)

Foreign exchange (income) loss

(123)34

Earnings before tax

1,1431,295

Income tax expense

398361

Net earnings after tax

745934

Basic earnings per share

$0.029$0.046
ADVERTISEMENT
ADVERTISEMENT

“This was a record-breaking start to the year for Caldwell - consolidated revenue for the quarter was $38.4 million, representing a 112% increase over the prior year and the highest first quarter in our history,” said John Wallace, chief executive officer. “Growth was driven both organically and through acquisition - our acquisition of IQTP contributed $11.7 million in revenue and Caldwell executive search’s $26.7 million represents a 47% increase year over year and a 48% increase over our pre-pandemic F′20 first quarter.”

“IQTP continues to see significant growth in demand for its services since pandemic lows. Their flexible on-demand pricing model and innovative use of AI technology is not only resonating with an ever-increasing client base, it’s creating a new category in talent acquisition. We anticipate this growth trend will continue into upcoming periods.”

Wallace continued: “Our ongoing success and performance speaks volumes to the creativity, innovation and execution excellence that the Caldwell and IQTP teams are delivering for our clients. There is no doubt that there’s an ongoing war for talent and the world continues to pivot towards remote work out of an increasing desire to achieve work/life balance and the ability to work from anywhere that technology provides. Given this continuing backdrop, our vision remains focused and clear - for our two segments to work in tandem to provide a seamless integration of talent acquisition solutions at all levels for our clients. And with our strong balance sheet, we will continue to review business and technology acquisition opportunities that align with client-driven talent offerings and our belief that Talent Transforms.”

For a complete discussion of the quarterly financial results, including a detailed segment analysis, please see the company’s Management Discussion and Analysis posted on SEDAR at www.sedar.com

About Caldwell Partners

Caldwell Partners is a technology-powered talent acquisition firm specializing in recruitment at all levels. Through two distinct brands - Caldwell and IQTalent Partners - the firm leverages the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas. Services include candidate research and sourcing through to full recruitment at the professional, executive and board levels, as well as a suite of talent strategy and assessment tools that can help clients hire the right people, then manage and inspire them to achieve maximum business results.

Caldwell Partners’ common shares are listed on The Toronto Stock Exchange (TSX: CWL) and trade on the OTCQX Market (OTCQX: CWLPF). 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, software that we license from third parties, our ability to successfully recover from a disaster or other business continuity issues, successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses, our ability to attract and retain key personnel; exposure to our partners taking our clients with them to another firm; the performance of the US, Canadian and international economies, including the impact of pandemic diseases; 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 governmental and tax law rulings; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; foreign currency exchange rate fluctuations; affiliation agreements may fail to renew or affiliates may be acquired; marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; volatility of the market price and volume of our common shares; potential impairment of our acquired goodwill and intangible assets; and disruption as a result of actions of certain stockholders or potential acquirers of the Company. 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 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.

For further information, please contact:

Investors:

Chris Beck, CPA, President and Chief Financial Officer

cbeck@caldwellpartners.com

+1 (617) 934-1843

Media:

Caroline Lomot, Director of Marketing

clomot@caldwellpartners.com

+1 (516) 830-3535

THE CALDWELL PARTNERS INTERNATIONAL INC.

CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(unaudited - in $000s Canadian)

As at November 30 2021As at August 31 2021

Assets

Current assets

Cash and cash equivalents

27,50629,214

Accounts receivable

21,96523,218

Unbilled revenue

6,1494,217

Prepaid expenses and other assets

2,2762,332
57,89658,981

Non-current assets

Restricted cash

2,6612,624

Investments

859242

Advances

369506

Property and equipment

1,9281,970

Right-of-use assets

9,0999,549

Intangible assets

224234

Goodwill

8,7107,960

Deferred income taxes

5,1205,067

Total assets

86,86687,133

Liabilities

Current liabilities

Accounts payable

4,1544,640

Compensation payable

35,59836,852

Income taxes payable

1,9263,007

Lease liability

1,9021,868

Loans Payable

179176
43,75946,543

Non-current liabilities

Compensation payable

8,1316,278

Lease liability

8,1438,560
60,03361,381

Equity attributable to owners of the Company

Share capital

12,27912,157

Contributed surplus

15,04615,063

Accumulated other comprehensive income

435204

Deficit

(927)(1,672)

Total equity

26,83325,752

Total liabilities and equity

86,86687,133

THE CALDWELL PARTNERS INTERNATIONAL INC.

CONSOLIDATED INTERIM STATEMENTS OF EARNINGS

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

Three months ended November 30
20212020

Revenues

Professional fees

38,31418,053

Direct expense reimbursements

11674
38,43018,127

Cost of sales expenses

Cost of sales

30,43213,337

Government stimulus grants

-(110)

Reimbursed direct expenses

11674
30,54813,301

Gross profit

7,8824,826

Selling, general and administrative

5,9543,174

Acquisition-related expenses

801225
6,7553,399

Operating profit

1,1271,427

Finance expenses (income)

Interest expense on lease liability (note 10)

112107

Investment income

(5)(9)

Foreign exchange (income) loss

(123)34

Earnings before income tax

1,1431,295

Income tax expense

398361

Net earnings for the year attributable to owners of the Company

745934

Earnings per share

Basic and Diluted

$0.029$0.046

THE CALDWELL PARTNERS INTERNATIONAL INC.

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS

(unaudited - in $000s Canadian)

Three months ended November 30
20212020

Net earnings for the period

745934

Other comprehensive income:

Items that may be reclassified subsequently to net earnings

(Loss) gain on marketable securities

(26)37

Cumulative translation adjustment

257(75)

Comprehensive earnings for the year attributable to owners of the Company

976896

THE CALDWELL PARTNERS INTERNATIONAL INC.

CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(unaudited - in $000s Canadian)

Accumulated Other Comprehensive Income (Loss)
DeficitShare CapitalContributed SurplusCumulative Translation AdjustmentGain/(loss) on Marketable SecuritiesTotal Equity

Balance - August 31, 2020

(6,191)7,51515,013595(176)16,756

Net earnings for the three month period ended

November 30, 2020

934----934

Share based payment expense

--5-5

Gain on marketable securities available for sale

3737

Change in cumulative translation adjustment

---(75)-(75)

Balance - November 30, 2020

(5,257)7,51515,018520(139)17,657

Balance - August 31, 2021

(1,672)12,15715,063215(11)25,752

Net earnings for the three month period ended

November 30, 2021

745----745

Employee share option plan share issue

-122(22)--100

Share-based payment expense

--5--5

Loss on marketable securities available for sale

----(26)(26)

Change in cumulative translation adjustment

---257-257

Balance - November 30, 2021

(927)12,27915,046472(37)26,833

THE CALDWELL PARTNERS INTERNATIONAL INC.

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW

(unaudited - in $000s Canadian)

Three months ended November 30
20212020

Cash flow provided by (used in)

Operating activities

Net earnings for the year

745934

Add (deduct) items not affecting cash

Depreciation of property and equipment

9293

Depreciation of right-of-use assets

531421

Amortization of intangible assets

13-

Amortization of advances

168162

Interest expense on lease liabilities

112107

Share based payment expense

55

(Gain) loss on unrealized foreign exchange on subsidiary loans

(160)24

Changes in working capital

(2,168)3,759

Net cash (used in) provided by operating activities

(662)5,505

Investing activities

-

Acquisition of business

(314)-

Investment in convertible promissory note

(629)-

Proceeds from release of restricted cash

-45

Purchase of property and equipment

(44)(20)

Net cash (used in) provided by investing activities

(987)25

Financing activities

Payment of lease liabilities

(582)(592)

Proceeds from share issuance under employee stock option plan

100-

Sublease payments received

2990

Net cash used in financing activities

(453)(502)

Effect of exchange rate changes on cash and cash equivalents

396(121)

Net (decrease) increase in cash and cash equivalents

(1,708)4,907

Cash and cash equivalents, beginning of year

29,21414,481

Cash and cash equivalents, end of period

27,50619,388

SOURCE: Caldwell Partners International, Inc.

View source version on accesswire.com:

https://www.accesswire.com/683234/Caldwell-Reports-Record-First-Quarter