CTPartners Executive Search Inc. (NYSE MKT:CTP), a leading global executive search firm, today commented on its expected financial results for the second quarter ended June 30, 2012 and its outlook for the full year 2012.
On a preliminary basis, CTPartners expects to report diluted earnings per share of $0.07 on approximately $33.5 million to $34 million in revenue for the second quarter 2012 compared with the previously issued guidance of $0.01 to $0.06 in diluted earnings per share and $31 million to $33 million in revenue, respectively. The better than expected earnings per share results are due to slightly higher revenue and the operating leverage in the Company’s business model.
“Despite the ongoing challenges facing the executive recruitment industry, we are pleased that our expected financial results for the second quarter will exceed our prior expectations,” said Brian Sullivan, CEO. “We believe this demonstrates the scale of our global operations and reflects our ability to develop new client relationships while preserving our existing client base.”
In looking at expected financial results for the full year 2012, the Company narrowed its full year revenue guidance to $128 million to $132 million and introduced diluted earnings per share guidance of $0.15 to $0.30. The ongoing softness in Europe has negatively impacted our overall tax rate, which has been accounted for in the earnings per share guidance. Operating margin for the year is expected to be in the range of 2% to 3.5% compared with previous guidance of 4% to 6% due to ongoing investments designed to maximize profitability longer term.
Mr. Sullivan added, “We are confident that the initiatives we have taken to attract and retain top quality consultants extend to new geographic markets in Latin America, France and Germany, and expand into high growth practices that will enhance our operating margin and improve profitability in 2013 and beyond.”
CTPartners will announce 2012 financial results for the second quarter ended June 30, 2012 on August 9, 2012, after the market close, and will hold a conference call for the investment community on Friday, August 10 at 9 AM Eastern Time.
CTPartners is a leading performance-driven executive search firm serving clients across the globe. Committed to a philosophy of partnering with its clients, CTPartners offers a proven track record in C-Suite, top executive, and board searches, as well as expertise serving private equity and venture capital firms.
With origins dating back to 1980, CTPartners serves clients with a global organization of more than 400 professionals and employees, offering expertise in board advisory services and executive recruiting services in the financial services, life sciences, industrial, professional services, retail and consumer, and technology, media and telecom industries.
CTPartners’ focus is straightforward: Place the right executive in the chair. Evidence of CTPartners’ ability to get the job done is its 81% placement success rate and average days to placement of 140 days in 2011. CTPartners has a stick rate of 88% for the eighteen month period ending on June 30, 2011.
Methodologies used include our proprietary technology, ClientNet®, a technology tool that permits clients to access password-protected information over the internet from any place, at any time, to check the status of their search engagements, and the 40-day Audit process, a comprehensive assessment tool that provides formal feedback and insures search milestones are met according to plan.
Headquartered in New York, CTPartners has offices in Bogotá, Boston, Caracas, Chicago, Cleveland, Columbia MD, Dallas, Dubai, Geneva, Hong Kong, Lima, London, Mexico City, Moscow , Panama City, Paris, Santiago, São Paulo, Shanghai, Silicon Valley, Singapore, Toronto, and Washington, D.C.
Safe Harbor Statement
The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release includes forward-looking statements. As a general matter, forward-looking statements reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. These statements may be identified by the use of forward looking terminology such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words, but the absence of these words does not necessarily mean that a statement is not forward-looking. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for the disclosure of forward-looking statements.
The forward-looking statements contained in this press release are based upon our historical performance, current plans, estimates, expectations and other factors we believe are appropriate under the circumstances. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved since these forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from those indicated in these statements. Some of the key uncertainties and factors that could affect our future performance and cause actual results to differ materially from those expressed or implied by forward-looking statements are: our expectations regarding our revenues, expenses and operations and our ability to sustain profitability; our ability to recruit and retain qualified executive search consultants to staff our operations appropriately; our ability to expand our customer base and relationships, especially given the off-limit arrangements we are required to enter into with certain of our clients; further declines in the global economy and our ability to execute successfully through business cycles; our anticipated cash needs; our anticipated growth strategies and sources of new revenues; unanticipated trends and challenges in our business and the markets in which we operate; social or political instability in markets where we operate; the impact of foreign currency exchange rate fluctuations; price competition; the ability to forecast, on a quarterly basis, variable compensation accruals that ultimately are determined based on the achievement of annual results; and the mix of profit and loss by country in which we operate.
The above list should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our annual report on Form 10-K filed on March 22, 2012. The forward looking statements included in this press release are made only as of the date hereof. We do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. You should, however, review the factors and risks we describe in the reports we will file from time to time with the Securities and Exchange Commission.