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View All NewsCaldwell Partners revenue up 10%; US revenue growth offsets losses elsewhere
The Caldwell Partners International Inc. (TSX: CWL), a Toronto-based executive search firm, reported revenue rose 9.8% in its fiscal first quarter ended Nov. 30.
| (C$ 000s) | Q1 2018 | Q1 2017 | % growth | Q1 2018 (USD $000s) | |
| Professional fees | $14,973 | $13,629 | 9.9% | $11,663 | |
| License fee revenue | $76 | $75 | 1.3% | $59 | |
| Revenue | $15,049 | $13,704 | 9.8% | $11,722 | |
| Net earnings after tax | $410 | $762 | -46.2% | $319 |
US professional fees rose 20.8% to C$11.5 million (US$9.0 million) in the first quarter; the increase was 27.3% excluding the effect of exchange rates. The gain was the result of increases in the number of assignments per partner, the average number of partners and the average fee per assignment.
Canadian professional fees fell 5.7% in the first quarter to C$3.4 million (US$4.0 million); a higher average fee per assignment was more than offset by a lower number of partners and a lower number of assignments per partner.
Professional fees in Europe fell 90.9% in the first quarter to C$44,000 (US$34,273); the decrease was 91.0% excluding the impact of exchange rates. The addition of one new partner in the second half of 2017 and another late in the current period resulted in a higher number of partners, offset by a significantly lower number of assignments per partner and 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$76,000 (US$59,198).
Quote
“The overall economic outlook remains healthy, as we continue to experience solid search demand, notwithstanding our unbalanced performance from geography to geography,” said CEO John Wallace. “We saw robust revenue growth in the US this quarter, which augmented our somewhat muted results in Canada and continued financial investments in the establishment and growth of the UK. While we do anticipate unevenness from quarter to quarter and from our geographic regions, our partners are collectively performing strongly, with search volumes and pricing holding steady.”
Wallace noted the firm will place incremental attention in the coming months and quarters on the recruitment of partners and teams, with a particular emphasis in the US.
Share price and market cap
Shares in The Caldwell Partners fell 0.92% to C$1.08 as of 10:57 a.m. Eastern time. The company had a market cap of C$22.04 million.