CTPartners Executive Search Inc. (NYSE MKT:CTP), a leading global retained executive search firm, today announced its financial results for the second quarter and six-months, ended June 30, 2012.
Revenue for the second quarter was $33.8 million, a 2.0% increase from $33.1 million reported in the same period last year and a 4.2% sequential increase from $32.4 million reported in the first quarter 2012. Operating income and operating margin were $1.1 million and 3.2%, respectively, flat with the results for the same period last year and above first quarter 2012 results of $660,000 in operating income and operating margin of 2.0%. Fully diluted EPS was $0.07 compared to $0.09 in the same period last year and $0.05 for the first quarter 2012. Financial results for the second quarter 2012 were consistent with the Company’s revised expectations issued on July 13, 2012.
“We are pleased to report second quarter revenue and earnings above our original expectations and consistent with our recently revised financial forecast. Despite operating in a challenging macro environment that has reduced demand for executive recruitment services, our positive year-over-year and sequential revenue growth reflects the value proposition we deliver to our clients. Our business fundamentals remained strong throughout the quarter as new search assignments increased 22% year-over-year. Our initiatives to diversify our practices and invest prudently in qualified and experienced consultants are paying off as we posted sequential revenue growth in five out of our six business practices. We appreciate the dedication of our consultants and the support of our shareholders and are confident that we are well positioned to increase shareholder value as current market conditions improve,” said Brian Sullivan, Chief Executive Officer.
Q2 2012 Highlights - New search assignments increased 22.0% to 350 compared to 287 for the second quarter 2011
- Consultant headcount increased by 10 to 109 from the second quarter 2011 and was down 4 on a net basis from the first quarter of 2012
- Revenue from the consumer/retail practice increased to 18.7% of revenue from 6.3%, compared to the same period last year
- Revenue from the financial services practice grew 14.7% on a sequential basis
- Compensation and employee benefits expense decreased 2.1% of net revenue to 75.1% compared to 77.2% in the same period last year
- EPS of $0.07 includes the Q2 2012 income tax rate increase to 47.7% from 38.7% in Q2 2011
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| Revenue Breakdown by Region |
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| YEAR OVER YEAR | | Q2 2012 | | Q2 2011 | | | | |
| By Region | | Revenue | | % of Revenue | | Revenue | | % of Revenue | | Increase / (Decrease) | | % Change | |
| North America | | $ | 21,365,726 | | 63.3 | % | | $ | 22,019,434 | | 66.6 | % | | $ | (653,708 | ) | | -3.0 | % |
| EMEA | | | 6,707,445 | | 19.9 | % | | | 8,378,655 | | 25.3 | % | | | (1,671,210 | ) | | -19.9 | % |
| Asia Pacific | | | 2,568,066 | | 7.6 | % | | | 2,686,580 | | 8.1 | % | | | (118,514 | ) | | -4.4 | % |
| Latin America | | | 3,113,029 | | 9.2 | % | | | - | | 0.0 | % | | | 3,113,029 | | | 100.0 | % |
| TOTAL | | $ | 33,754,266 | | 100 | % | | $ | 33,084,669 | | 100 | % | | $ | 669,597 | | | 2.0 | % |
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| Revenue Breakdown by Practice |
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| YEAR OVER YEAR | | Q2 2012 | | Q2 2011 | | | | |
| By Practice | | Revenue | | % of Revenue | | Revenue | | % of Revenue | | Increase / (Decrease) | | % Change | |
| Financial Services | | $ | 11,207,388 | | 33.2 | % | | $ | 12,346,523 | | 37.3 | % | | $ | (1,139,135 | ) | | -9.2 | % |
| Consumer/Retail | | | 6,309,166 | | 18.7 | % | | | 2,088,878 | | 6.3 | % | | | 4,220,288 | | | 202.0 | % |
| Life Sciences | | | 5,425,624 | | 16.1 | % | | | 6,073,531 | | 18.4 | % | | | (647,907 | ) | | -10.7 | % |
| Professional Services | | | 4,134,309 | | 12.2 | % | | | 5,629,088 | | 17.0 | % | | | (1,494,779 | ) | | -26.6 | % |
| TMT | | | 3,807,543 | | 11.3 | % | | | 4,782,053 | | 14.5 | % | | | (974,510 | ) | | -20.4 | % |
| Industrial | | | 2,870,236 | | 8.5 | % | | | 2,164,596 | | 6.5 | % | | | 705,640 | | | 32.6 | % |
| TOTAL | | $ | 33,754,266 | | 100 | % | | $ | 33,084,669 | | 100 | % | | $ | 669,597 | | | 2.0 | % |
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| Performance Metrics |
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| | | Q2 2012 | | Q2 2011 | | Increase / (Decrease) | | % Change | |
| New search assignments | | | 350 | | | 287 | | | 63 | | | 22.0 | % |
| Executive search consultants | | | 109 | | | 99 | | | 10 | | | 10.1 | % |
| Productivity | | $ | 1,238,689 | | $ | 1,336,754 | | $ | (98,065 | ) | | -7.3 | % |
| Average revenue per search | | $ | 94,373 | | $ | 111,950 | | $ | (17,577 | ) | | -15.7 | % |
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Productivity is measured as the average annualized net revenue per executive search consultant. Excluding Latin America, productivity and average revenue per executive search were $1.3 million and $110,600, respectively, in the second quarter.
