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View All NewsCaldwell Partners’ fee growth flat after removing currency variance
Revenue rose at The Caldwell Partners (TSX: CWL.TO), a Toronto-based executive search firm, in its fiscal first quarter ended Nov. 30, but the increase was fueled by currency exchange rates.
| Q1 2016 (C$ 000s) | Q1 2015 (C$ 000s) | % growth | Q1 2016 (USD $000s) | ||
| Revenue | $14,010 | $12,436 | 12.7% | — | $10,473 |
| Net (loss) earnings | -$165 | $277 | — | — | nm |
Looking at Q1 professional fees only of C$13.9 million in Q1, which make up the bulk of Caldwell’s revenue, they were up 12.1% compared to the year-ago quarter. However, the company said professional fees fell 0.3% excluding variance from exchange rates.
Caldwell’s European revenue for the first quarter was boosted by an acquisition.
The search firm also posted a net loss for the quarter.
Professional fees by geography
| Q1 2016 (C$ 000s) | Q1 2015 (C$ 000s) | % growth | % growth excluding currency variation | Q1 2016 (USD $000s) | ||
| US | $9,973 | $8,144 | 22.5% | 3.6% | — | $7,456 |
| Canada | $3,370 | $4,256 | -20.8% | — | $2,519 | |
| Europe | $602 | $36 | nm | nm | — | $450 |
Quote
“Despite absolute revenue growth, we are disappointed in our first quarter results,” said CEO John Wallace. “Our revenue was flat on a constant currency basis and this, coupled with higher direct costs from our investment in Europe, led to an operating loss on the quarter. “However, we are seeing a stronger start early in this quarter, relative to last year. Our new partners have now fully transitioned to our platform and are seeing traction in the marketplace.”
Share price and market cap
Shares in Caldwell Partners fell 3.45% to C$1.40 in early afternoon trading today and the company has a market cap of C$28.18 million, according to Yahoo!