April 17, 2017 – Executive search firm Caldwell Partners International posted second quarter revenues of $13.7 million (Canadian), a 9.3 percent decline from a year ago when the firm recorded revenues of $15.1 million.
Second quarter net income was $267,000 ($0.13 per share), as compared to a loss of $764,000 ($0.38 per share) in the comparable period a year earlier. The company’s board of directors declared the payment of a quarterly dividend of two cents per share payable to holders of common stock.
Pressure On Revenue
“While lower average fees and a slightly lower number of partners during the current quarter put pressure on revenue, this was somewhat mitigated by a growth in search volumes, demonstrating continued strength in the recruitment sector,” said John Wallace, chief executive officer.
“Additionally, the cost-alignment initiatives enacted over the course of the prior fiscal year enabled us to deliver significantly higher profit year-over-year through the first half. We feel positive about the productivity metrics of our partner and supporting teams, and how that has translated into operating profit, and remain bullish about the direction of our firm.” He said Caldwell continues to pursue high-caliber, content-driven professionals to join the firm who will expand its scope of capabilities and market presence.
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Nevertheless, this is Caldwell’s second consecutive quarter of negative growth. In January, it reported a two percent dip in business in its first quarter. To stem any further erosion, Caldwell is looking to emerging sectors for expansion, like cybersecurity and life sciences, and assessment services to help give it a distinct advantage among rivals.
Caldwell recently named Matt Comyns as managing partner of its cybersecurity search practice. He is based in the firm’s Stamford, Conn office. Mr. Comyns has a distinct and well-regarded focus on recruiting chief information security officers and next-level-down top lieutenants in information security for large global corporations and fast growing private companies, as well as cyber security consultants for leading professional services firms and top executives for cyber security technology companies. He previously co-led Russell Reynolds Associates’ global cybersecurity practice, where he served for nearly six years.
The firm also added Manny Corsino as a partner in the firm’s Miami office. Mr. Corsino focuses on global companies with interests in Latin America, and works in concert with the firm’s Latin American team to provide seamless solutions to clients with operations in the U.S. and Latin America. With more than 15 years of experience in executive recruitment, he has conducted numerous searches for CEOs, presidents, general managers, and sales directors in Latin America, and also participated in cross-border searches for global clients. Mr. Corsino previously led the Latin American search practice at Allen Austin.
In addition, Caldwell appointed Shawn Banerji as managing partner of the firm’s technology, digital and data leaders practice. Specializing in the global technology sector, Mr. Banerji recruits CIOs and CTOs across major industries, including financial services, telecom/technology, retail/consumer, healthcare, industrial/natural resources, as well as media and internet. He also has extensive experience in business process outsourcing, process improvement, and shared services. Most recently, Mr. Banerji was most recently a leader in the technology officers practice, and was a member of the fin-tech practice at Russell Reynolds Associates.
Lastly, Caldwell partners named John Blank as co-leader of the firm’s life sciences and healthcare practice, where he joined Darin DeWitt at the helm of the practice. Mr. Blank specializes in recruiting board directors, CEOs and senior executives for private equity-backed high-growth healthcare, healthcare technology, managed care and provider service portfolio companies. He previously held positions of increasing responsibility at several executive search firms, including running the healthcare practice at DHR International.
Shares in Caldwell Partners closed down 1.72 percent at $1.14 (Canadian) upon the release of its Q2 figures; it has a current market cap of $23 million, according to Yahoo.
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media