January 13, 2017 – Executive search firm Caldwell Partners International posted first quarter revenues of $13.7 million (Canadian), a two percent decline from a year ago when the firm recorded revenues of $14 million (Canadian).
“We fine-tuned our cost structure in the second half of last year to better reflect the global footprint we now enjoy,” said John Wallace, chief executive officer. “We are pleased with the subsequent financial results this quarter, particularly as it relates to our operating profit, and do believe that we have an attractive client-focused platform to continue growing our firm, while providing sustainable and meaningful returns to our shareholders.”
The cost alignment initiatives the firm undertook last year, said Mr. Wallace, “are having their positive intended effect,” as evidenced by the marked increase in operating profit in the quarter. “We remain committed to being an annuity-based firm that, in normal markets, will deliver an operating profit that will allow us to reward our shareholders through a sustainable dividend, to continue to organically grow the company’s revenues, and to maintain a cash position that will underpin the firm.”
Moving forward, he said, “we are focusing on recruitment in the coming year, as we look to grow the firm by adding breadth and depth to further strengthen our team in certain industries and geographies, further enhancing our capabilities to serve our clients on a global basis.”
First quarter net income was $762,000 ($0.38 per share), as compared to a loss of $165,000 ($0.08 per share) in the comparable period a year earlier. The 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 January 20, 2017 and to be paid on March 15, 2017.
Shares in Caldwell Partners rose 11 percent upon the release of its Q1 figures; the firm has a market cap of $24.16 million (Canadian), according to Yahoo.
Turning to Life Sciences . . .
Like its rivals, Caldwell is seeking growth in emerging sectors and by offering an array of new services, including talent assessment and leadership development.
Just recently, it named John Blank as co-leader of the firm’s life sciences and healthcare practice, where he joins Darin DeWitt at the helm of the practice. Life sciences is a particularly rapid growth sector for recruiters, where more than 50 search firms now ply their trade across North America.
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 has partnered with some of Canada’s most prominent private equity firms and their deal teams through all stages of the investment lifecycle, consulting from deal sourcing to management team assessment and recruitment, both pre- and post-deal. Prior to joining Caldwell Partners, Mr. Blank held positions of increasing responsibility at several executive search firms, including running the healthcare practice at DHR International.
“With nearly two decades of executive search experience, John brings real perspective on our market, the importance of impeccable client service, and our strategic direction and growth plan,” said Mr. Wallace. “He and Darin are the right team to work together to drive our life sciences and healthcare practice forward, with the goal of making it the pre-eminent team in the healthcare and life sciences industry.”
. . . and Assessment Services
Caldwell also recently partnered with Caliper, a research-based talent management consulting firm focused on assessment and leadership development. The agreement will integrate Caliper’s assessment and onboarding services into Caldwell Partners’ research-based executive search process in Canada.
Mr. Wallace said that competency assessments performed by the firm’s partners “remain the most valuable aspect of our service,” and give them a “distinct advantage” in the marketplace. A full contingent of other search firms are also jumping on the same bandwagon.
“When people are in roles best suited to their innate personalities and motivations, they not only perform well, they surpass expectations,” said Elan Pratzer, managing partner of Caldwell Partners. “Our goal is to minimize uncertainty for clients with respect to how a particular candidate will fit into the role and culture of the hiring organization. This collaboration with Caliper is a huge competitive advantage in helping us achieve this goal.”
“Together, Caliper and Caldwell Partners generate tremendous value for senior executives and boards who can’t afford to make a mistake,” said Andrew Case, chief executive officer of Caliper Canada. “Our ability to objectively measure a candidate’s potential to perform the role and fit the existing team truly differentiates Caldwell’s offering among its competitors.”
Contributed by Dale M. Zupsansky, Managing Editor, Hunt Scanlon Media