Caldwell Reports Strong Growth in Revenue and Operating Profit

• HIGHLIGHTS:
  • Quarterly revenue of $41.7M, a 271% increase year-over-year.
  • Full year revenue of $119.8M, a 106% increase year-over-year.

TORONTO, ON / ACCESSWIRE / November 16, 2021 / Talent acquisition firm The Caldwell Partners International Inc. (TSX:CWL)(OTCQX:CWLPF) today issued its financial results for the fiscal 2021 fourth quarter and full year ended August 31, 2021. All references to quarters or years are for the fiscal periods unless otherwise noted and all currency amounts are in Canadian dollars. Financial results include those of IQTalent Partners, Inc. (IQTP) beginning on the date of acquisition of December 31, 2020.

1) Results include operations from IQTP for the eight months post-acquisition date of December 31, 2020 with intercompany amounts eliminated.

2) Acquisition-related expenses consist of transaction fees and IQTP purchase price structured as compensation expense which will end on December 31, 2022.

3) Income tax expense during the year ended August 31, 2021 includes $562 of income from a favourable tax ruling change during the second quarter allowing for the deductibility on the valid use of PPP funds which had previously been disallowed.

"Fiscal 2021 was a year of enormous and transformational growth for Caldwell," said John Wallace, chief executive officer. "It was busy, unpredictable, and set against an unprecedented backdrop, yet we had one of the most extraordinary years in our firm's history, growing the size of our team, expanding our products and services, and breaking all-time records for a number of key metrics.

"After a challenging second half of Fiscal 2020, our executive search team came roaring back, setting new records for revenue, search volume, and searches per recruiter. Strategic additions to the partner and principal team expanded our global footprint significantly and added depth and breadth to our capabilities across functions, practices and geographies. Our December acquisition of IQTalent Partners accelerated our growth, advancing us into a new market for augmenting internal talent teams on an hourly business model. The IQTP team's year was also one best summed up by amplified growth, closing out the fiscal year close to triple their prior year preacquisition performance. More than a phenomenal investment, IQTP is a fantastic cultural fit, and a real expansion of our collective value proposition."

Wallace continued: "With strong demand from clients and a robust pipeline, we closed out the fiscal year in a powerful position. We are excited for the fiscal year ahead and while we expect some easing in our clients' surge of post-pandemic hiring activity, we anticipate strong growth at IQTP and continued growth in the aggregate. Supported by our solid balance sheet, we do continue to seek out additional portfolio investments that will add to the breadth and depth of the products and services that we can bring to our clients."

For a complete discussion of the quarterly financial results, including a detailed segment analysis, please see the company's Management Discussion and Analysis posted on SEDAR at www.sedar.com.

About Caldwell Partners

Caldwell Partners is a technology-powered talent acquisition firm specializing in recruitment at all levels. Through two distinct brands - Caldwell and IQTalent Partners - the firm leverages the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas. Services include candidate research and sourcing through to full recruitment at the professional, executive and board levels, as well as a suite of talent strategy and assessment tools that can help clients hire the right people, then manage and inspire them to achieve maximum business results.

Caldwell Partners' common shares are listed on The Toronto Stock Exchange (TSX: CWL) and trade on the OTCQX Market (OTCQX: CWLPF). Please visit our website at www.caldwellpartners.com for further information.

Forward-Looking Statements

Forward-looking statements in this document are based on current expectations that are subject to the significant risks and uncertainties cited. These forward-looking statements generally can be identified by use of statements that include phrases such as "believe," "expect," "anticipate," "intend," "plan," "foresee," "may," "will," "likely," "estimates," "potential," "continue" or other similar words or phrases. Similarly, statements that describe our objectives, plans or goals also are forward-looking statements. The Company is subject to many factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statement including, but not limited to, software that we license from third parties, our ability to successfully recover from a disaster or other business continuity issues, successfully integrating or realizing the expected benefits from our acquisitions, adverse operating issues from acquired businesses, our ability to attract and retain key personnel; exposure to our partners taking our clients with them to another firm; the performance of the US, Canadian and international economies, including the impact of pandemic diseases; competition from other companies directly or indirectly engaged in executive search; liability risk in the services we perform; potential legal liability from clients, employees and candidates for employment; cybersecurity requirements, vulnerabilities, threats and attacks; damage to our brand reputation; our ability to align our cost structure to changes in our revenue; adverse governmental and tax law rulings; our ability to generate sufficient cash flow from operations to support our growth and fund any dividends; technological advances may significantly disrupt the labour market and weaken demand for human capital at a rapid rate; foreign currency exchange rate fluctuations; affiliation agreements may fail to renew or affiliates may be acquired; marketable securities valuation fluctuations; increasing dependence on third parties for the execution of critical functions; volatility of the market price and volume of our common shares; potential impairment of our acquired goodwill and intangible assets; and disruption as a result of actions of certain stockholders or potential acquirers of the Company. For more information on the factors that could affect the outcome of forward-looking statements, refer to the "Risk Factors" section of our Annual Information Form and other public filings (copies of which may be obtained at www.sedar.com). These factors should be considered carefully, and the reader should not place undue reliance on forward-looking statements. Although any forward-looking statements are based on what management currently believes to be reasonable assumptions, we cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. Except as required by Canadian securities laws, we do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf; such statements speak only as of the date made. The forward-looking statements included herein are expressly qualified in their entirety by this cautionary language.

For further information, please contact:

SOURCE: Caldwell Partners International, Inc.