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View All NewsCaldwell Partners revenue down 6.7%
The Caldwell Partners (TSX: CWL.TO), a Toronto-based executive search firm with operations in Canada, the US and Europe, reported revenue fell 6.7% year over year to C$13.8 million (US$10.6 million) in its fiscal third quarter ended May 31.
| (C$ 000s) | Q3 2016 | Q3 2015 | % growth | Q3 2016 (USD $000s) | |
| Revenue | $13,827 | $14,814 | -6.7% | — | $10,584 |
| Net earnings | $339 | $768 | nm | — | $260 |
Third-quarter professional fees fell 7.7% year over year, or 10.3% in constant currency, to C$13.7 million (US$10.5 million).
In the US, third-quarter professional fees edged down as declines in the number of assignments per partner more than offset increases in the average fee per assignment and the average number of partners.
Professional fees in Canada continued to be pressured by economic conditions in Western Canada as well as financial services across Canada and fell due to lower number of assignments per partner and lower average fees per assignment, more than offsetting a higher average number of partners.
Professional fees by geography
| (C$ 000s) | Q3 2016 | Q3 2015 | % growth | % growth excluding currency variation | Q3 2016 (USD $000s) |
| US | $10,305 | $10,399 | -0.9% | -4.8% | $7,888 |
| Canada | $3,020 | $4,218 | -28.4% | — | $2,312 |
| Europe | $355 | $197 | 80.2% | — | $272 |
Quote
“This was a challenging quarter,” CEO John Wallace said. “Ongoing weakness in Western Canada, spurred on by continued low oil prices; an unforeseen softening of search volumes in the United States and Canada, where we were staffed to handle last fiscal year’s all-time high search demand; and fixed costs exceeding disappointing revenue in the United Kingdom pressured our quarterly results. We have taken measures to reduce our fixed search delivery costs over the last quarter, and will continue to make adjustments in the fourth quarter, including the relocation of our New York office, which will both lower our cost basis and provide us with a more efficient and attractive client/employee working environment. We anticipate continued revenue pressure in the fourth quarter and our alignment initiatives may have an attendant financial cost to implement, but they will put us in a position to achieve the type of growing profitability that we have obtained over the prior three years.”
Share price and market cap
Shares in Caldwell Partners fell 2.48% to C$1.18 in early afternoon trading today and the company has a market cap of C$23.75 million, according to Yahoo!