|Bid||12.99 x 800|
|Ask||13.04 x 800|
|Day's Range||12.74 - 13.09|
|52 Week Range||10.50 - 31.92|
|Beta (5Y Monthly)||1.35|
|PE Ratio (TTM)||49.96|
|Earnings Date||Oct 28, 2020 - Nov 02, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar 05, 2020|
|1y Target Est||N/A|
The following discussion will include forward-looking statements, which are subject to known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those contemplated by the forward-looking statements. You are cautioned not to place undue reliance on forward-looking statements.
Westwood SmallCap Fund Introduces Y Share Class Westwood SmidCap Fund Introduces Ultra Share Class Trading outsourced to improve client experience and internal operational efficiencyDALLAS, July 29, 2020 (GLOBE NEWSWIRE) -- Westwood Holdings Group, Inc. (NYSE: WHG) today reported second quarter 2020 earnings. Highlights from the quarter include: * Income Opportunity, Enhanced Balanced, SmallCap Value, Alternative Income, Global Convertible, LargeCap Select and Total Return strategies beat their primary benchmarks for the quarter. * Income Opportunity, Enhanced Balanced, Alternative Income, Global Convertible, MLP Opportunities and Total Return strategies achieved top quartile institutional rankings. * Revenues of $15.9 million compared with $16.7 million in the first quarter of 2020 and $21.7 million a year ago. * Net loss of $2.6 million compared with net income of $1.1 million in the first quarter of 2020 and $1.9 million a year ago. Non-GAAP Economic Earnings of $0.2 million, compared with $4.2 million in the first quarter of 2020 and $4.8 million a year ago. * Repurchased 407,697 shares of our common stock for an aggregate purchase price of $8.1 million. * At quarter-end, Westwood had $74.2 million in cash and short-term investments, stockholders' equity of $131.4 million and no debt.Revenues were lower than the first quarter of 2020 and last year's second quarter principally as a result of lower average assets under management ("AUM").AUM at June 30, 2020 totaled $11.9 billion versus $11.6 billion at March 31, 2020. The increase was due to market appreciation across the majority of our strategies, partially offset by net outflows in our Emerging Market and Global Convertible strategies.The second quarter net loss of $2.6 million was lower than the first quarter's net income of $1.1 million primarily due to lower revenues, foreign currency transaction losses and higher income taxes partially offset by lower operating expenses. Diluted earnings (loss) per share ("EPS") for the second quarter was $(0.33) compared to $0.13 for the first quarter. Non-GAAP Economic Earnings for the second quarter were $0.2 million, or $0.03 per share, a decrease from $4.2 million, or $0.50 per share, in the first quarter.The second quarter net loss of $2.6 million was lower than second quarter of 2019 net income of $1.9 million primarily due to lower revenues, partially offset by lower operating expenses, particularly employee compensation and benefits. Diluted EPS for the second quarter was $(0.33) compared to $0.22 for the second quarter of 2019. Non-GAAP Economic Earnings for the second quarter were $0.2 million, or $0.03 per share, down from $4.8 million, or $0.56 per share for the second quarter of 2019.Brian Casey, Westwood’s President and CEO, commented, "As the Covid-19 pandemic casts its long shadow over our social and business lives, I want to thank all of our Westwood employees, mostly working from home, for serving our clients so well. I am very pleased to report that several of our portfolio strategies beat their benchmarks for the quarter and also performed well against their peers. Many challenges confront us in the current environment and accordingly, with the full support of our board, we have crafted a strategic plan to restructure certain business areas to reduce operating expenses while continuing to invest in our long-term growth initiatives. As part of this plan, our Westwood International Advisors office in Toronto will cease operations towards the end of the third quarter. Reviews of other business units and products not deemed commercially viable in the long run are likely to lead to additional actions that will be covered in the third quarter call. We believe this plan will enable us to better manage our business in this environment as well as pursue an array of future profitable growth initiatives."Economic Earnings and Economic EPS are non-GAAP performance measures and are explained and reconciled with the most comparable GAAP numbers in the attached tables.Westwood will host a conference call to discuss second quarter 2020 results and other business matters at 4:30 p.m. Eastern time today. To join the conference call, dial 877-303-6235 (U.S. and Canada) or 631-291-4837 (international). The conference call can also be accessed via our Investor Relations page at westwoodgroup.com and will be available for replay through August 6, 2020 by dialing 855-859-2056 (U.S. and Canada) or 404-537-3406 (international) and entering the passcode 4963578.About Westwood Holdings GroupWestwood Holdings Group, Inc. is a focused investment management boutique and wealth management firm.Westwood offers high-conviction equity and outcome-oriented solutions to institutional investors, private wealth clients and financial intermediaries. The firm specializes in three distinct investment capabilities: U.S. Value Equity, Multi-Asset and Emerging Markets Equity. To meet the full range of investors’ financial needs, access to these strategies is available through separate accounts, the Westwood Funds® family of mutual funds and other pooled vehicles. Westwood benefits from significant, broad-based employee ownership and trades on the New York Stock Exchange under the symbol “WHG.” Based in Dallas, Westwood also maintains offices in Boston, Houston and Toronto. For more information on Westwood, please visit westwoodgroup.com.Forward-looking StatementsStatements in this press release that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including without limitation, words such as “anticipate,” “believe,” “expect,” “could,” and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation:the composition and market value of our AUM; our ability to maintain our fee structure in light of competitive fee pressures; the impact of the recent COVID-19 pandemic; the significant concentration of our revenues in a small number of customers; our ability to avoid termination of client agreements and the related investment redemptions; regulations adversely affecting the financial services industry; competition in the investment management industry; our ability to develop and market new investment strategies successfully; our AUM include investments in foreign companies; our reputation and our relationships with current and potential customers; our ability to attract and retain qualified personnel; our ability to maintain effective cyber security; our ability to perform operational tasks; our ability to identify and execute on our strategic initiatives; our ability to maintain effective information systems; our ability to select and oversee third-party vendors; litigation risks; our ability to declare and pay dividends; our ability to fund future capital requirements on favorable terms; our ability to properly address conflicts of interest; our ability to maintain adequate insurance coverage; our ability to maintain an effective system of internal controls; our stock is thinly traded and may be subject to volatility; our organizational documents contain provisions that may prevent or deter another group from paying a premium over the market price to our stockholders to acquire our stock; we are a holding company dependent on the operations and funds of our subsidiaries; our relationships with investment consulting firms; and the other risks detailed from time to time in Westwood’s SEC filings, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2019 and its quarterly report on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, Westwood is not obligated to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.SOURCE: Westwood Holdings Group, Inc.(WHG-G) CONTACT: Westwood Holdings Group, Inc. Terry Forbes Chief Financial Officer and Treasurer (214) 756-6900 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands, except per share and share amounts) (unaudited) Three Months Ended June 30, 2020 March 31, 2020 June 30, 2019 REVENUES: Advisory fees: Asset-based$9,328 $11,102 $14,695 Performance-based695 — 120 Trust fees5,657 5,951 6,444 Trust performance-based fees40 — — Other, net155 (384) 450 Total revenues15,875 16,669 21,709 EXPENSES: Employee compensation and benefits10,787 12,668 11,378 Sales and marketing253 478 514 Westwood mutual funds434 515 661 Information technology2,030 2,031 2,282 Professional services991 1,193 1,169 General and administrative2,191 2,306 2,402 (Gain) loss on foreign currency transactions1,323 (2,938) 724 Total expenses18,009 16,253 19,130 Net operating income (loss)(2,134) 416 2,579 Unrealized gains (losses) on private investments159 (995) — Investment income124 544 — Other income34 34 77 Income (loss) before income taxes(1,817) (1) 2,656 Income tax expense (benefit)758 (1,103) 795 Net income (loss)$(2,575) $1,102 $1,861 Other comprehensive income (loss): Foreign currency translation adjustments1,371 (3,242) 735 Total comprehensive income (loss)$(1,204) $(2,140) $2,596 Earnings (loss) per share: Basic$(0.33) $0.13 $0.22 Diluted$(0.33) $0.13 $0.22 Weighted average shares outstanding: Basic7,879,698 8,414,393 8,446,610 Diluted7,879,698 8,458,473 8,476,777 Economic Earnings$224 $4,200 $4,773 Economic EPS$0.03 $0.50 $0.56 Dividends declared per share$0.00 $0.43 $0.72 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands, except per share and share amounts) (unaudited) Six Months Ended June 30, 2020 June 30, 2019 REVENUES: Advisory fees: Asset-based$20,430 $31,101 Performance-based695 300 Trust fees11,608 12,983 Trust performance-based fees40 — Other, net(229) 1,187 Total revenues32,544 45,571 EXPENSES: Employee compensation and benefits23,455 25,988 Sales and marketing731 1,044 Westwood mutual funds949 1,507 Information technology4,061 4,259 Professional services2,184 2,318 General and administrative4,497 4,836 (Gain) loss on foreign currency transactions(1,615) 1,544 Total expenses34,262 41,496 Net operating income (loss)(1,718) 4,075 Unrealized gains (losses) on private investments(836) — Investment income668 — Other income68 77 Income (loss) before income taxes(1,818) 4,152 Income tax expense (benefit)(345) 1,899 Net income (loss)$(1,473) $2,253 Other comprehensive income (loss): Foreign currency translation adjustments(1,871) 1,566 Total comprehensive income (loss)$(3,344) $3,819 Earnings (loss) per share: Basic$(0.18) $0.27 Diluted$(0.18) $0.27 Weighted average shares outstanding: Basic8,147,045 8,406,367 Diluted8,147,045 8,467,589 Economic Earnings$4,424 $8,889 Economic EPS$0.54 $1.05 Dividends declared per share$0.43 $1.44 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value and share amounts) (unaudited) June 30, 2020 December 31, 2019 ASSETS Current Assets: Cash and cash equivalents$43,926 $49,766 Accounts receivable10,751 13,177 Investments, at fair value30,228 50,324 Prepaid income taxes709 1,150 Other current assets1,764 2,544 Total current assets87,378 116,961 Investments8,154 8,154 Noncurrent investments at fair value3,401 4,238 Goodwill19,804 19,804 Deferred income taxes3,139 2,216 Operating lease right-of-use assets6,981 7,562 Intangible assets, net14,398 15,256 Property and equipment, net of accumulated depreciation of $7,827 and $7,3953,741 4,152 Other long-term assets425 364 Total assets$147,421 $178,707 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable and accrued liabilities$1,781 $2,145 Dividends payable1,127 7,362 Compensation and benefits payable3,912 9,975 Operating lease liabilities1,666 1,584 Income taxes payable192 289 Total current liabilities8,678 21,355 Accrued dividends371 1,303 Noncurrent operating lease liabilities6,943 7,762 Total long-term liabilities7,314 9,065 Total liabilities15,992 30,420 Stockholders’ Equity: Common stock, $0.01 par value, authorized 25,000,000 shares, issued 10,558,111 and outstanding 8,382,342 shares at June 30, 2020; issued 10,306,570 and outstanding 8,881,086 shares at December 31, 2019106 103 Additional paid-in capital208,572 203,441 Treasury stock, at cost - 2,175,758 shares at June 30, 2020; 1,425,483 shares at December 31, 2019(78,050) (63,281) Accumulated other comprehensive loss(4,814) (2,943) Retained earnings5,615 10,967 Total stockholders’ equity131,429 148,287 Total liabilities and stockholders’ equity$147,421 $178,707 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss)$(1,473) $2,253 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation465 425 Amortization of intangible assets858 836 Unrealized (gains) losses on investments904 (600) Stock-based compensation expense4,921 5,683 Deferred income taxes(939) 763 Non-cash lease expense615 561 Changes in operating assets and liabilities: Net sales of investments – trading securities20,029 18,779 Accounts receivable2,350 4,891 Other current assets709 (589) Accounts payable and accrued liabilities(361) (604) Compensation and benefits payable(5,790) (10,357) Income taxes payable307 (288) Other liabilities(771) (692) Net cash provided by operating activities21,824 21,061 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment(56) (402) Purchases of investments— (250) Net cash used in investing activities(56) (652) CASH FLOWS FROM FINANCING ACTIVITIES: Purchases of treasury stock(12,952) (806) Purchases of treasury stock for employee stock plans(697) (981) Restricted stock returned for payment of taxes(1,120) (2,385) Cash dividends(11,043) (13,860) Net cash used in financing activities(25,812) (18,032) Effect of currency rate changes on cash(1,796) 1,484 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS(5,840) 3,861 Cash and cash equivalents, beginning of period49,766 52,449 Cash and cash equivalents, end of period$43,926 $56,310 Supplemental cash flow information: Cash paid during the period for income taxes$288 $1,417 Accrued dividends$1,498 $8,150 Accrued purchases of property and equipment$— $203 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES Reconciliation of Net Income (Loss) to Economic Earnings (in thousands, except per share and share amounts) (unaudited) Three Months Ended June 30, 2020 March 31, 2020 June 30, 2019 Net income (loss)$(2,575) $1,102 $1,861 Add: Stock-based compensation expense2,305 2,616 2,430 Add: Intangible amortization435 423 423 Add: Tax benefit from goodwill amortization59 59 59 Economic Earnings$224 $4,200 $4,773 Diluted weighted average shares7,879,698 8,458,473 8,476,777 Economic EPS$0.03 $0.50 $0.56 Six Months Ended June 30, 2020 June 30, 2019 Net income (loss) $(1,473) $2,253 Add: Stock-based compensation expense 4,921 5,682 Add: Intangible amortization 858 836 Add: Tax benefit from goodwill amortization 118 118 Economic Earnings $4,424 $8,889 Diluted weighted average shares 8,147,045 8,467,589 Economic EPS $0.54 $1.05 As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic Earnings and Economic EPS. We provide these measures in addition to, not as a substitute for, net income (loss) and earnings (loss) per share, which are reported on a GAAP basis. Our management and Board of Directors review Economic Earnings and Economic EPS to evaluate our ongoing performance, allocate resources, and review our dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP net income (loss) or earnings (loss) per share, are useful for management and investors when evaluating our underlying operating and financial performance and our available resources. We do not advocate that investors consider these non-GAAP measures without also considering financial information prepared in accordance with GAAP.We define Economic Earnings as net income (loss) plus non-cash equity-based compensation expense, amortization of intangible assets, and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic Earnings because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. In addition, we do not adjust Economic Earnings for tax deductions related to restricted stock expense or amortization of intangible assets. Economic EPS represents Economic Earnings divided by diluted weighted average shares outstanding.
DALLAS, July 16, 2020 -- Westwood Holdings Group, Inc. (NYSE:WHG) will release its second quarter 2020 earnings after the close of the New York Stock Exchange on Wednesday,.