Caldwell Partners Posts Five Percent Revenue Increase
July 11, 2017 – Executive search firm Caldwell Partners International has posted third quarter revenues of $14.5 million (Canadian), a five percent increase from a year ago when the firm recorded revenues of $13.8 million. U.S. professional fees rose 6.6 percent as increases in the number of assignments per partner and average fee per assignment were partially offset by a lower average number of partners.
Professional fees in Canada were up 6.1 percent as a result of a higher average number of partners and higher number of assignments per partner, which were partially offset by a lower average fee per assignment. Third quarter professional fees in Europe were down 29.6 percent. Two European partners, whose aggregate related costs were significantly higher than the revenue produced, recently left the firm and corresponding reductions were made to the support staff. 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.
Third quarter net income was $224,000 ($0.11 per share), as compared to earnings of $339,000 ($0.17 per share) in the comparable period a year earlier. The company’s board of directors declared the payment of a quarterly dividend of 2.0 cents per common share payable to holders of common shares of record on July 14, 2017 and to be paid on September 8, 2017.
Focus On Growth
“We continue to focus on growing our firm in a way that will serve to make our clients better, more competitive and more successful,” said John Wallace, chief executive officer. “We have found that keeping our clients at the center of our strategy has been the catalyst for our growth and the driver behind our position as one of the fastest-growing search firms in our space and category.”
“We added five new high caliber partners to our team during the third quarter and a sixth partner subsequent to quarter-end,” Mr. 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.”
Shares in Caldwell Partners shares were unchanged at $1.01 (Canadian) upon the release of its Q3 figures; it has a market cap of $18.92 million (Canadian).
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Recent Additions
During the quarter, Caldwell added Kathy Ventura as a partner in its consumer, e-commerce & retail, and marketing & communications practices based in its Stamford, Conn office. Ms. Ventura recruits senior executives in all areas of consumer products and services, including consumer technologies, automotive, lifestyle brands and consumer financial services. She also specializes in corporate reputation leadership roles, including communications, public affairs and corporate marketing. Her clients include Fortune 500 companies, private equity and other alternative asset firms, and their portfolio companies. Her work also encompasses diversity and inclusion initiatives for her clients. She was previously with Russell Reynolds Associates, where she led the firm’s corporate communications practice.
The firm also recently named Matt Comyns as managing partner of its cybersecurity search practice. He, too, is based in the firm’s Stamford office and was also recruited out of Russell Reynolds Associates. 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 global cybersecurity practice, where he served for nearly six years.
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. Like the others, Mr. Banerji joins Caldwell in Stamford and was recruited from Russell Reynolds Associates, where he most recently served as a leader in the firm’s technology officers practice.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Chase Barbe, Managing Editor – Hunt Scanlon Media
