The Caldwell Partners (TSX: CWL.TO), a Toronto-based executive search firm with operations in Canada, the US and Europe, reported revenue rose 5.0% year over year to C$14.5 million (US$10.8 million) in its fiscal third quarter ended May 31.

US professional fees rose 6.6% to C$11.0 million (US$8.2 million) in the third quarter; the increase was 2.8% excluding impact of exchange rates. Increases in the number of assignments per partner and average fee per assignment were partially offset by a lower average number of partners.

Canadian professional fees rose 6.1% to C$3.2 million (US$2.4 million).

European professional fees fell 29.6% in the third quarter to C$250,000 (US$185,578); two partners in Europe, whose aggregate related costs were significantly higher than revenue produced, left the firm during the fourth quarter of fiscal 2016 and first quarter of fiscal 2017. As a result, there was a significant decrease during the quarter in the average number of partners, exacerbated by a decrease in average fee per assignment and partially offset by an increase in the number of assignments per partner.

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“We added five new high caliber partners to our team during the third quarter and a sixth partner subsequent to quarter-end,” CEO John Wallace said. “This brings the number of partners in our wholly-owned offices to 40 — a new high-water mark for the firm. We will continue to make strategic additions to the firm where it will expand the products and services that we are able to provide to our clients and to the benefit of our shareholders.”

Share price and market cap

Shares in Caldwell Partners shares were unchanged at C$1.01 in midmorning trading today. The company has a market cap of C$18.92 million.