January 19, 2021 – Caldwell posted fiscal 2021 first quarter revenues of $18.1 million (Canadian). Financial results do not include those of IQTalent Partners (IQTP), its recent acquisition. “This was a strong start to the year by any measure, and it was an exceptional start in this instance, given what the world has been through in the last 12 months,” said John Wallace, chief executive officer. “We saw a significant rebound in search activity in the first quarter of fiscal 2021, effecting a 61 percent rise in quarter over quarter revenue from the fourth quarter of fiscal 2020 and a one percent increase over the first quarter of fiscal 2020.”
The increase in revenues are results from a higher average fee per assignment of $162,000 ($163,000 excluding exchange rate fluctuations; 2020: $155,000), partially offset by a slight reduction in the number of assignments to 111 (2020: 113). The number of assignments decreased on a lower number of assignments per partner at 2.8 (2020: 2.9) and a slightly higher average number of partners at 39.1 (2020: 39). On a geographic segment basis, $14,581,000 of professional fees, or 80 percent, were generated from the U.S. (2020: $12,885,000), $2,993,000 from Canada (2020: $3,729,000) and $453,000 from Europe (2020: $884,000).
“As a result of the cost reduction initiatives enacted in the third and fourth quarters of fiscal 2020, coupled with ongoing support from government stimulus programs, we have maintained profitability and fortified our liquidity during the pandemic,” said Mr. Wallace. “This has allowed us to reengage our growth strategy with great success, as evidenced by our Dec. 31 acquisition of IQTalent Partners, a technology-driven talent acquisition firm offering consulting, candidate sourcing, candidate research, and full lifecycle recruiting. Together, our two organizations will leverage IQTP’s expertise and advanced artificial intelligence to specialize in all levels of professional recruitment, driving revenue growth and increased profitability.
Mr. Wallace said: “Additionally, we were pleased to announce five partner additions to the team during the first quarter: Peter Anselmo, technology and professional services (New York); Liz Bernich, financial services (New York); Rui Di, consumer, retail and e-commerce (Dallas); Allison Dubrow, insurance (New York/Stamford); and Ryan Mason, energy, mining, and infrastructure (Sydney). We expect to make further partner additions in the coming months as the industry continues to see the stability and exciting opportunities that Caldwell has to offer.”
Senior Leadership Changes
Caldwell also announced changes to its senior leadership team as the firm expands operations after its acquisition of IQTP. John Wallace has relinquished the role of president of Caldwell, and the board has appointed Chris Beck in his place. Mr. Wallace will continue in his role as CEO and Mr. Beck will continue in his role as CFO. In his expanded role, Mr. Beck will be responsible for all financial and investor relations functions of the enterprise, and will provide day-to-day leadership and management of the executive search business. He will focus on the firm’s growth strategies and he continue to lead Caldwell’s diversity, equity and inclusion initiatives.
Caldwell has signed an agreement to acquire IQTalent Partners. “With this merger, we are setting our sights on transforming the world of talent,” said John Wallace, CEO. “IQTalent Partners’ unique service model and innovative use of technology, paired with Caldwell’s expertise, network and resources will allow us to serve our clients in a more integrated fashion and allow us to have a greater impact on their long-term success, which remains our primary mandate.”
Founded in 2009, IQTalent Partners provides talent acquisition solutions to 300 corporations from Fortune 500s to startups across a wide range of industries and functions throughout North America, Europe, Australia, Asia, and South America. The firm ranked No. 30 on the most recent Hunt Scanlon Media roster of the 50 largest search firms, reporting revenue of $15.5 million, a 25 percent rise over the previous year. At the time the firm reported 56 consultants in two offices.
Additionally, David Windley has been appointed as president of IQTP, responsible for the day-to-day leadership and management of the firm and focused on the its continued growth. He will also join Caldwell Partners’ executive leadership team. And Mike Falagario has been appointed vice president, finance of Caldwell, responsible for the finance and accounting functions of both Caldwell and IQTalent Partners. He will remain as corporate secretary.
“These changes are part of an overall growth strategy as we continue to transform into a technology-powered talent acquisition firm specializing in recruitment at all levels,” said Mr. Wallace. “By combining our two firms’ capabilities, expertise, network and resources, our teams will have the ability to strengthen our client offerings and create a seamless recruiting experience all the way through the C-suite and the boardroom for our clients. Chris, David and Mike are experienced Caldwell and IQTP employees who are well-placed to usher in this exciting new era of growth for our combined organizations and to ensure that our teams are able to remain wholly focused on one thing: putting clients together with the right talent to fuel their success.”
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media