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View All NewsCaldwell Partners revenue up 0.5%; professional fees fall in US but rise in Canada
The Caldwell Partners (TSX: CWL), a Toronto-based executive search firm, reported revenue edged up 0.5% in its fiscal fourth quarter ended Aug. 31.
| (C$ 000s) | Q4 2017 | Q4 2016 | % growth | Q4 2017 (USD $000s) | |
| Professional fees | $15,758 | $15,712 | 0.3% | $12,539 | |
| Investment income | — | — | — | — | |
| License fee revenue | $92 | $64 | 43.8% | $73 | |
| Revenue | $15,850 | $15,776 | 0.5% | $12,612 | |
| Net earnings after tax | $704 | ($57) | nm | $560 |
US professional fees fell 13.0% to C$10.5 million (US$8.3 million) in the fourth quarter; the decrease was 12.3% excluding the impact of exchange rates. Increases in both the average number of partners and number of assignments per partner were more than offset by a decrease in the average fee per assignment during the period.
Canadian professional fees rose 61.9% in the fourth quarter to C$5.1 million (US$4.0 million). The impact of a slightly lower average number of partners was more than offset by a higher number of assignments per partner and a higher average fee per assignment. Two specific assignments generating professional fees exceeding C$800,000 (US$636,500) drove professional fees and the average fee per assignment in the fiscal fourth quarter.
Professional fees in Europe fell 63.3% in the fourth quarter to C$187,000 (US$148,802); the decrease was 59.4% excluding the impact of exchange rates. 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. A new partner was hired near the end of the third quarter, but there was still a decrease during the quarter in the average number of partners, exacerbated by a decrease in the number of assignments per partner and only partially offset by an increase in the average fee per assignment.
License fees from affiliations in Latin America and New Zealand for the use of the Caldwell Partners brand and intellectual property were C$92,000 (US$73,200).
Net earnings improved year over year, but the year-ago quarter was affected by charges of C$759,000 (US$604,000) related to the sublease and relocation of its New York office premises and C$250,000 (US$198,900) in support staff separation costs.
Full fiscal-year results
| (C$ 000s) | FY 2017 | FY 2016 | % growth | FY 2017 (USD $000s) | |
| Professional fees | $57,495 | $57,618 | -0.2% | $45,750 | |
| Investment income | — | $877 | — | — | |
| License fee revenue | $310 | $253 | 22.5% | $247 | |
| Revenue | $57,805 | $58,748 | -1.6% | $45,997 | |
| Net earnings after tax | $1,957 | $881 | 122.1% | $1,557 |
Share price and market cap
Shares in Caldwell Partners rose 2.91% to C$1.06 as of 10:48 a.m. Eastern time. The company had a market cap of C$21.63 million.