CTPartners Executive Search Inc. Announces Second Quarter 2011 Financial Results

NEW YORK, Aug. 10, 2011 /PRNewswire/ -- CTPartners Executive Search Inc. (AMEX: CTP), a leading global retained executive search firm, today announced results for the quarter ended June 30, 2011.  

Second Quarter 2011 Results

For the quarter ended June 30, 2011, net revenue of $33.1 million increased 11.0% from $29.8 million in the corresponding period in 2010.  The net revenue growth was the result of an increase in the number of search assignments and the number of executive search consultants employed.

Revenue breakdown by region:

Revenue breakdown by industry vertical:

There were 287 confirmed searches in the second quarter of 2011, a 2.9% increase compared to the second quarter of 2010.  Productivity, defined as average annualized net revenue per executive search consultant, was  $1,336,750 in the second quarter 2011 compared to $1,528,460 in the second quarter of 2010.  The average revenue per executive search was $111,950 in the second quarter of 2011 compared to $100,520 in the corresponding period in 2010, up 11.4%.

Performance metrics:

For the three-month period ended June 30, 2011, compensation and employee benefits expense increased $3.9 million, or 18.0%, to $25.5 million from $21.6 million for the same period last year. As a percentage of net revenue, compensation and benefits increased to 77.2% compared to 72.7% last year. The increase in compensation and benefits expense was primarily the result of (i) approximately $1.7 million in connection with guaranteed compensation, signing bonuses and equity based grants made to newly hired executive search consultants; (ii) $1.3 million in additional non-consultant compensation costs primarily related to the addition of 48 support staff in recruiting, research and administration; and (iii) a $900,000 increase in bonus compensation for executive search consultants which was the direct result of higher consolidated net revenues for the quarter compared to the same period last year.

General and administrative expenses increased to $6.5 million, or 19.7% of net revenue, from $5.5 million, or 18.4% of net revenue, for the same period last year.  The increase was mainly due to (i) a $400,000 increase in occupancy costs due to the addition of new offices in Dallas, Dubai and Toronto and expanded offices in Singapore, Paris and Chicago; (ii) a $300,000 increase in business development expense, which is a direct result of an increase in the number of executive search consultants; and (iii) an additional $100,000  in professional fees principally reflecting the costs of being a public company.

Operating income for the second quarter was $1.1 million, a decrease of $1.4 million compared to operating income of $2.5 million for the second quarter of 2010. The decrease primarily reflects an increase in net revenues of $3.3 million offset by a $3.9 million increase in compensation and benefits expense and a $1.0 million increase in general and administrative expenses.

For the three-month period ended June 30, 2011, CTPartners reported income before taxes of $1.1 million and recorded income tax expense of $400,000, as compared to income before taxes of $2.5 million and income tax expense of $100,000 for the same period last year.

Net income for the quarter ended June 30, 2011 was $700,000.

Conference Call and Webcast

The company will host a conference call tomorrow (August 11, 2011) at 10:00 AM (Eastern) / 7:00 AM (Pacific) to discuss these financial results.  A live dial-in is available domestically at 800-591-6945 and internationally at 617-614-4911, passcode 14458035.  A replay will be available until midnight (Eastern) on August 18, 2011, domestically at 888-286-8010 and internationally at 617-801-6888, passcode 13256802.  A web broadcast of the event will be available live and for replay purposes on the CTPartners Investor Relations website at http://investor.ctnet.com.  

CTPartners' 10-Q report is available online at  http://investor.ctnet.com and www.sec.gov.

About CTPartners

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 350 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 83% placement success rate and average days to placement of 123 days in 2010.  CTPartners has a stick rate of 90% for the eighteen month period ending on June 30, 2009.

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 processes, 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 Bogota, Boston, Caracas, Chicago, Cleveland, Columbia MD, Dallas, Dubai, Geneva, Hong Kong, Lima, London, Mexico City, Miami, Panama City, Paris, Santiago, Sao Paulo, Shanghai, Silicon Valley, Singapore, Toronto, and Washington, D.C.

Contact

CTPartners Executive Search Inc.
Jennifer Silver
Vice President, Marketing & Investor Relations
Tel: 877-439-9229
Email: [email protected]

SOURCE CTPartners Executive Search Inc.