Caldwell Partners International Inc. · TSX:CWL
Caldwell Partners International — Investor Presentation (2021)
21 slides from Caldwell Partners International's investor presentation, 2021
Slide 1: Investing in Caldwell: value and growth
INVESTING IN CALDWELL: value and growth
Slide 2: Forward Looking Statements
FORWARD We endeavour to be open and informative in our presentations. LOOKING However, we are not always correct in our expectations, and many STATEMENTS circumstances can cause our forecasts and opinions to change; possibly materially so. Any statements that we make today that may be considered to
Slide 3: Forward Looking Statements (Cont.)
FORWARD 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,” “
Slide 4: Disclaimer
Disclaimer This presentation is not, and under no circumstances is to be construed as, a prospectus, offering memorandum, or advertisement or a public offering of securities. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that
Slide 5: Presenters
PRESENTERS John Wallace David Windley John is chief executive officer of Caldwell. Since becoming Chris Beck David is president of IQTalent Partners and serves on CEO in 2008, John has effected Chris is chief financial officer of Caldwell’s board of directors. a strategic growth plan for the the org
Slide 6: Caldwell Transitions
Leveraging Caldwell executive search as our CALDWELL selling relationship “crown jewel” TRANSITIONS • Trusted client relationships are with CEO/CHRO/Head of Talent Acquisition • Opportunity to expand service lines into higher Additional focus growth/margin adjacencies organically and with M&A on gro
Slide 7: Caldwell Today: Seamless talent acquisition
CALDWELL TODAY Caldwell is a technology-powered talent acquisition firm specializing in recruitment at all levels. We leverage the latest innovations in AI to offer an integrated spectrum of services delivered by teams with deep knowledge in their respective areas, allowing us to have a more signifi
Slide 8: Caldwell Snapshot
50 YEARS ~700/YR ~ $150K CAD CALDWELL of transforming talent with a C-suite and executive average executive search fee SNAPSHOT heritage in executive search level searches PUBLICLY-TRADED >$100M CAD ~ $50M CAD TSX: CWL; OTCQX: CWLPF Annualized revenue run rate Market cap EV/Adjusted EBITDA: ~6x ~ $1
Slide 9: Investing for the Future
INVESTING FOR THE FUTURE GEOGRAPHIES SOLUTIONS Multiple We foresee continued opportunities to expansion in the United There are complementary services that would invest and grow States, and further TECHNOLOGIES expand our spectrum of solutions: expansion into Europe − Diversity, Equity and Inclusion
Slide 10: Historical Revenue Trend
Annual Professional Fees Trend (CAD $ in millions) HISTORICAL $100.0 REVENUE TREND $90.0 $88.9 $13.1 $80.0 Caldwell is now on $70.0 an accelerated growth trajectory, $60.0 following a decade $50.0 of moderate growth $40.0 $75.8 $70.4 $66.5 $30.0 $58.7 $57.8 $54.5 $56.9 $45.1 $20.0 $34.2 $32.7 $33.8
Slide 11: Managing Through COVID
MANAGING — Our first half of f’20 ended February 28, 2020 was the best in our history. THROUGH COVID — The pandemic’s impact was immediate in March and we swiftly adjusted. — Ability to service clients was only minimally impacted—shift to virtual was seamless. Shrinking real estate footprint and les
Slide 12: Quarterly Segmented Revenue
Proforma Professional Fees (CAD $ in millions) QUARTERLY $40.0 SEGMENTED $35.7 REVENUE $35.0 $8.8 $30.0 $25.9 $25.0 $23.1 $21.7 $22.0 $6.2 Both segments $5.5 $20.0 $4.8 $4.0 emerging from pandemic with $15.0 $13.9 $13.1 $26.9 strong momentum $2.7 $1.9 $10.0 $19.7 $17.6 $16.9 $18.1 $5.0 $11.3 $11.2 $
Slide 13: Financial Highlights
(CAD $ in millions) Annual detail TTM Quarterly detail FINANCIAL $100.0 $88.9 $80.0 $70.4 HIGHLIGHTS $60.0 $56.9 $35.7 Professional fees $40.0 $18.1 $24.0 $20.0 $11.1 Strong quarterly $0.0 sequential growth f'19 f'20 TTM Q3 f'21 Q4 f'20 Q1 f'21 Q2 f'21 Q3 f'21 IQTP’s contribution $30.0 $24.6 reflect
Slide 14: Growth Path: Caldwell
GROWTH PATH — Caldwell 2010-2019 CAGR 11.3% — Recovered from pandemic with resumed growth trend CALDWELL — F’22 anticipate an easement from most recent quarter’s post-pandemic Consistent, “surge” levels. F’23 resuming estimated annual growth of 8% to 10% on moderate growth organic hiring/promotions
Slide 15: Caldwell Executive Search Metrics
Monthly Professional Fees (CAD $000s) Period-end Partner Headcount (owned operations) CALDWELL 11,000 46 EXECUTIVE 10,000 44 9,000 SEARCH METRICS 8,000 42 7,000 40 Strong business 6,000 38 momentum—all 5,000 metrics trending 4,000 36 upward 3,000 34 2,000 32 May Jun Jul Aug Sept Oct Nov Dec Jan Feb
Slide 16: Growth Path: IQTP
GROWTH PATH — IQTP 2016-2019 CAGR 46.3% — Recovered from pandemic with resumed growth trend — Do not anticipate an easement from post-pandemic “surge” — 25%-35% annual organic growth anticipated for next several years Consistent, high growth IQTP Revenue (USD) 3,000 2,500 2,000 Please refer to the F
Slide 17: IQTalent Partners (IQTP) Metrics
IQTP Revenue (USD $000s) IQTP Average Daily Billings (USD $000s) $120 $114 $109 $112 IQTALENT $2,500 $100 $100 PARTNERS (IQTP) $2,000 $80 METRICS $80 $67 $1,500 $61 $60 $53 $40 $1,000 $40 $27 Similarly strong $500 $20 $21 $21 $19 business $0 $0 momentum—new May Jun 20 20 Jul 20 Aug Sept Oct Nov Dec
Slide 18: An Attractive Investment Opportunity
AN ATTRACTIVE — Growing cash flow with a (net) debt-free balance sheet INVESTMENT — Attractive valuation: currently trading at a trailing EV/EBITDA multiple of OPPORTUNITY ~6x – far below industry peers — Experiencing transformative growth with the recent acquisition of IQTP — Multiple opportunities
Slide 19: Appendix 1: Board of Directors
Elias Vamvakas, Director and Chair of the Board (2019) Mr. Vamvakas is the Chairman, CEO and founder of Greybrook Capital, and Chairman of Greenbrook-TMS NeuroHealth centers, (TSX:GTMS). APPENDIX 1: He is also Founder of TLC Vision. BOARD OF Paul Daoust, Director and Chair of the Nomination, Corpora
Slide 20: Appendix 2: Reporting Shareholders
APPENDIX 2: Name Title/Relation Shares Owned % Darcy Morris Director (CEO, Ewing Morris & Co.) 3,820,250 15.0% David Windley President, IQTP; Director 1,810,904 7.1% REPORTING Tom Milic VP, Accounts Management, IQTP; Co-founder, IQTP 1,630,341 6.4% SHAREHOLDERS Chris Murdock Chief Sourcing Officer,
Slide 21: Appendix 3: Financial Highlights
fiscal '19 fiscal '20 TTM Q3 f'21 Q4 f'20 Q1 f'21 Q2 f'21 Q3 f'21 APPENDIX 3: ($000s Canadian) 8/31/2020 8/31/2020 5/31/2021 8/31/2020 11/30/2020 2/28/2021 5/31/2021 Professional fees 70,449 56,867 88,949 11,152 18,053 24,009 35,735 FINANCIAL Cost of sales 53,046 41,906 64,310 6,491 13,227 17,923 26
Caldwell Partners International — Investor Presentation (2021) on 6ix