CTPartners Executive Search expects approx full year net revenue of $172m
The preliminary results are based on currently available financial and operating information and management's preliminary analysis of the unaudited financial results for the quarter and year ended December 31, 2014.
The company expects fourth quarter net revenue of approximately $42 million, within the range of guidance given on November 5, 2014. This reflects a 22% increase compared to net revenue of $34.3 million in the year-ago fourth quarter. For the full year, the Company expects net revenue will be approximately $172 million, representing a 32% year-over-year increase compared to $130.3 million reported in 2013.
GAAP net loss for the fourth quarter is expected to be in the range of $0.3 million to $0.6 million, or $0.04 to $0.08 loss per share, compared to a net income of $0.1 million, $0.02 per share, for last year’s fourth quarter. In the fourth quarter of 2014, CTPartners experienced higher than anticipated operating expenses of $1.3 millionrelated to business development activity, increased marketing and upgrading the search process and corporate infrastructure. As a result, excluding after-tax non-operating items of $0.8 to $1.1 million, adjusted net income is expected to be in the range of $0.5 million to $0.6 million, or $0.06 to $0.08 per share, compared to adjusted net income of $0.9 million, or $0.12 per share, in the year-ago fourth quarter. The Company’s previous guidance for the 2014 fourth quarter was adjusted EPS in the range of $0.19 to $0.21. A reconciliation of non-GAAP measures is included in this news release.
Brian Sullivan, Chief Executive Officer, said, “While 2014 was a very successful year for CTPartners, fourth quarter adjusted earnings will be less than expected. We continued to experience high demand for our services and will report strong revenue growth for the fourth quarter and full year. We made necessary investments in our business that will continue to allow CTPartners to be a disruptor in the executive search industry while maintaining our high level of client service as we build our brand globally.”
For the full year 2014, GAAP net income is expected to be in the range of $4.0 million to $4.2 million, or $0.53 to $0.56 per share, compared to a net loss of $1.6 million, or $0.23 loss per share, in 2013. The Company expects adjusted net income, excluding after-tax non-operating items of $1.9 to $2.3 million, for the full year to be in the range of $6.2 to $6.4 million, or $0.82 to $0.85 per share, compared to adjusted net income of $1.8 million, or$0.24 per share, reported in 2013, an increase of 3.5 times.
Mr. Sullivan added, “Looking forward, we expect net revenue and adjusted earnings per share for the full year 2015 to increase over 2014. Our business fundamentals remain strong, search assignments continue to grow and the investments we made in late 2014 will support our future growth as we enter 2015.”
For the first quarter ending March 31, 2015, the Company is anticipating net revenue of $43 million to $45 millionand adjusted EPS in the range of $0.08 to $0.12. For the full year ending December 31, 2015, the Company expects to report net revenue of approximately $200 million and adjusted EPS in the range of $0.90 to $1.00. Based on the Company’s preliminary fourth quarter results and full year 2015 outlook revenue is expected to increase approximately 16% as the Company continues to expand its presence in key geographies and grow across each of its practice areas.
The Company currently intends to report its complete financial results for the fourth quarter and full year endedDecember 31, 2014 on March 12, 2015.