Caldwell Posts 46 Percent Decline in Revenues
April 14, 2023 – Toronto-based Caldwell posted Q2 revenues of $21.6 million (Canadian), a 46 percent decrease from a year ago. The firm noted stabilization in overall hiring demand but at lower levels than the prior-year period. Caldwell reported $2.3million (Canadian) in restructuring expenses from staffing reductions at IQTalent. It also reported $266,000 (Canadian) in restructuring expenses in lease costs for the exit to remote work at the firm’s San Francisco office. “The second quarter brought stabilization in overall hiring demand, albeit at levels that were lower than the same period last year – a record-breaking fiscal year for us,” said John Wallace, chief executive officer. “Clients who have been broadly talking about resuming hiring have, in part, pushed those plans further into calendar 2023 pending more certainty on evolving economic conditions. At Caldwell, our executive search team is a group of seasoned professionals who have experience advising clients through multiple economic cycles; they’re using their expertise to find business in a suppressed market.”
“At IQTalent, our on-demand talent acquisition augmentation business, we saw further revenue erosion in the first part of the quarter, followed by stabilization in the past several months,” Mr. Wallace said. “As a result, in January IQTalent reduced staffing levels to the stabilized business demand to lower costs and minimize operating losses at current professional fee levels. Our March 1 spin off of IQTalent’s software business and related development team will further reduce costs going forward.”
“We remain optimistic about our ability to return to profitability in the fiscal year and have full confidence in the strength of our spectrum of service offerings, our team and our future,” said Mr. Wallace. “Our clients value our ability to provide seamless support for their talent acquisition needs at all levels and we are focused on identifying opportunities to cross-collaborate between our two business segments.”
Related: Caldwell Forms Alliance with Johnson Partners
Shares in Caldwell were up 4.76 percent upon release of its numbers. The firm had a market cap of $32.77 million (Canadian).
New Offices
Caldwell recently expanded with the opening of new locations in Annapolis, MD and Tysons Corner, VA, in the Washington, D.C. area. In conjunction, the firm added Byron Marchant as a partner and Tiffany Faucette as an associate. The moves expand the firm’s capabilities and add focus on the sports and entertainment industry, federal and state public sector, and the public utilities space. “This is an exciting next step for Caldwell,” said Mr. Beck. “We’re thrilled to have such exceptional people join our outstanding team and lead our continued growth in the mid-Atlantic market and our firm.”
Caldwell Acquires The Counsel Network
Caldwell has acquired The Counsel Network Inc., a Canada-based executive search firm specializing in the Canadian legal market. The acquisition of was an all-cash deal, and no securities of Caldwell were issued in connection with the acquisition. “The Counsel Network is the most respected, connected, and powerful legal recruitment firm in Canada,” said Michael DeCosta, managing partner of Caldwell’s professional services practice. “This combination brings together two strong executive search brands with exceptional reputations borne of a true passion for achieving the best results for clients and candidates.”
Mr. Marchant serves in the board and CEO practice. He joined Caldwell from the U.S. Naval Academy Alumni and Foundation, where he served as president and CEO for over 13 years. His tenure was highlighted by his steady, strategic leadership through the 2009 recession and the ongoing COVID-19 pandemic, said Caldwell. Mr. Marchant oversaw the most successful campaign in organization’s history, raising more than $541 million in support of the Naval Academy’s Strategic Plan 2020. Previously, Mr. Marchant served as executive vice president, general counsel, and chief administrative officer for Black Entertainment Television (BET).
“Byron has a successful track record that cuts across a wide range of areas – from his impressive tenure leading the U.S. Naval Academy Alumni and Foundation to his role in the $3 billion acquisition of BET by Viacom to his background with technology and nuclear submarines in the Navy and everything in between,” said Jay Millen, managing partner of Caldwell’s board and CEO practice. “He’s an incredibly accomplished individual with an exceptionally wide network of content, which together make him a true asset to the team.”
Ms. Faucette has a 30-year track record in the professional sports world as an award-winning LPGA instructor, competitor, entrepreneur, and author, delivering a rare combination of sports and business acumen, said Caldwell. Additionally, she launched FG Enterprises, which conceived, developed, patented, and released globally available products, as well as an instructional book. She has made numerous appearances on television and talk radio, including The Golf Channel, NBC, ABC, and Fox. Ms. Faucette holds a bachelor’s degree in marketing from Florida State University.
Related: Caldwell Acquires Applied Behavioral Academy
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media
