99.1 | Press Release dated October 28, 2015, entitled “Westwood Holdings Group, Inc. Reports Third Quarter 2015 Results; Quarterly Dividend Increased 14%”. |
99.1 | Press Release dated October 28, 2015, entitled “Westwood Holdings Group, Inc. Reports Third Quarter 2015 Results; Quarterly Dividend Increased 14%”. |
▪ | Revenues increased 15% to $32.5 million compared to the same period last year. |
▪ | Cash dividend of $0.57, an increase of 14% from the previous quarterly dividend rate. |
▪ | Strong relative performance for our high conviction U.S. value equity and global convertible strategies. |
Three Months Ended | |||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||||
REVENUES: | |||||||||||
Advisory fees: | |||||||||||
Asset based | $ | 24,940 | $ | 27,458 | $ | 22,857 | |||||
Performance based | — | 1,918 | — | ||||||||
Trust fees | 7,973 | 7,921 | 5,282 | ||||||||
Other, net | (462 | ) | 14 | (17 | ) | ||||||
Total revenues | 32,451 | 37,311 | 28,122 | ||||||||
EXPENSES: | |||||||||||
Employee compensation and benefits | $ | 15,686 | $ | 16,512 | $ | 13,309 | |||||
Sales and marketing | 419 | 496 | 430 | ||||||||
Westwood mutual funds | 865 | 901 | 591 | ||||||||
Information technology | 1,626 | 1,422 | 807 | ||||||||
Professional services | 1,178 | 1,031 | 983 | ||||||||
General and administrative | 2,175 | 2,197 | 1,410 | ||||||||
Total expenses | 21,949 | 22,559 | 17,530 | ||||||||
Income before income taxes | 10,502 | 14,752 | 10,592 | ||||||||
Provision for income taxes | 3,489 | 4,957 | 3,474 | ||||||||
Net income | $ | 7,013 | $ | 9,795 | $ | 7,118 | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | (1,386 | ) | 233 | (578 | ) | ||||||
Total comprehensive income | $ | 5,627 | $ | 10,028 | $ | 6,540 | |||||
Earnings per share: | |||||||||||
Basic | $ | 0.90 | $ | 1.25 | $ | 0.95 | |||||
Diluted | $ | 0.87 | $ | 1.23 | $ | 0.92 | |||||
Weighted average shares outstanding: | |||||||||||
Basic | 7,808,239 | 7,806,031 | 7,525,489 | ||||||||
Diluted | 8,037,080 | 7,961,406 | 7,734,309 | ||||||||
Economic Earnings | $ | 12,434 | $ | 14,352 | $ | 10,881 | |||||
Economic EPS | $ | 1.55 | $ | 1.80 | $ | 1.41 | |||||
Dividends declared per share | $ | 0.50 | $ | 0.50 | $ | 0.44 |
Nine Months Ended September 30, | ||||||||
2015 | 2014 | |||||||
REVENUES: | ||||||||
Advisory fees: | ||||||||
Asset based | $ | 76,327 | $ | 65,341 | ||||
Performance based | 2,206 | 3,806 | ||||||
Trust fees | 21,044 | 15,461 | ||||||
Other, net | (207 | ) | 368 | |||||
Total revenues | 99,370 | 84,976 | ||||||
EXPENSES: | ||||||||
Employee compensation and benefits | 47,507 | 39,026 | ||||||
Sales and marketing | 1,310 | 1,092 | ||||||
Westwood mutual funds | 2,593 | 1,965 | ||||||
Information technology | 4,085 | 2,536 | ||||||
Professional services | 4,281 | 3,554 | ||||||
General and administrative | 5,962 | 4,242 | ||||||
Total expenses | 65,738 | 52,415 | ||||||
Income before income taxes | 33,632 | 32,561 | ||||||
Provision for income taxes | 11,214 | 11,290 | ||||||
Net income | $ | 22,418 | $ | 21,271 | ||||
Other comprehensive loss: | ||||||||
Foreign currency translation adjustments | (2,541 | ) | (600 | ) | ||||
Total comprehensive income | $ | 19,877 | $ | 20,671 | ||||
Earnings per share: | ||||||||
Basic | $ | 2.90 | $ | 2.83 | ||||
Diluted | $ | 2.78 | $ | 2.73 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 7,737,608 | 7,507,937 | ||||||
Diluted | 8,076,055 | 7,801,073 | ||||||
Economic Earnings | $ | 36,201 | $ | 31,758 | ||||
Economic EPS | $ | 4.48 | $ | 4.07 | ||||
Dividends declared per share | $ | 1.50 | $ | 1.32 |
September 30, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 23,883 | $ | 18,131 | |||
Accounts receivable | 19,997 | 14,540 | |||||
Investments, at fair value | 56,457 | 79,620 | |||||
Deferred income taxes | 6,634 | 4,060 | |||||
Other current assets | 2,309 | 2,413 | |||||
Total current assets | 109,280 | 118,764 | |||||
Goodwill | 25,091 | 11,255 | |||||
Deferred income taxes | 3,066 | 3,792 | |||||
Intangible assets, net | 25,866 | 3,430 | |||||
Property and equipment, net of accumulated depreciation of $3,293 and $2,720 | 2,914 | 2,633 | |||||
Total assets | $ | 166,217 | $ | 139,874 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 2,634 | $ | 2,334 | |||
Dividends payable | 5,060 | 4,868 | |||||
Compensation and benefits payable | 15,449 | 18,504 | |||||
Contingent consideration | 9,102 | — | |||||
Income taxes payable | 1,305 | 1,498 | |||||
Total current liabilities | 33,550 | 27,204 | |||||
Accrued dividends | 1,392 | 1,450 | |||||
Deferred rent | 1,138 | 1,213 | |||||
Total liabilities | 36,080 | 29,867 | |||||
Stockholders’ Equity: | |||||||
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 9,428,773 and outstanding 8,614,207 shares at September 30, 2015; issued 9,010,255 and outstanding 8,308,460 shares at December 31, 2014 | 94 | 90 | |||||
Additional paid-in capital | 139,874 | 119,859 | |||||
Treasury stock, at cost - 814,566 shares at September 30, 2015; 701,795 shares at December 31, 2014 | (35,976 | ) | (29,028 | ) | |||
Accumulated other comprehensive loss | (3,772 | ) | (1,231 | ) | |||
Retained earnings | 29,917 | 20,317 | |||||
Total stockholders’ equity | 130,137 | 110,007 | |||||
Total liabilities and stockholders’ equity | $ | 166,217 | $ | 139,874 |
Nine Months Ended September 30, | |||||||
2015 | 2014 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 22,418 | $ | 21,271 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 606 | 436 | |||||
Amortization of intangible assets | 951 | 270 | |||||
Unrealized gains on trading investments | 484 | (29 | ) | ||||
Stock based compensation expense | 12,560 | 10,103 | |||||
Deferred income taxes | (1,923 | ) | (4,227 | ) | |||
Excess tax benefits from stock based compensation | (1,432 | ) | (1,850 | ) | |||
Net sales of investments – trading securities | 22,679 | (8,528 | ) | ||||
Other | (3 | ) | — | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (5,332 | ) | 478 | ||||
Other current assets | 236 | 367 | |||||
Accounts payable and accrued liabilities | 537 | 10 | |||||
Compensation and benefits payable | (2,052 | ) | (3,887 | ) | |||
Income taxes payable and prepaid income taxes | 1,899 | 6,496 | |||||
Other liabilities | (28 | ) | (42 | ) | |||
Net cash provided by operating activities | 51,600 | 20,868 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (704 | ) | (337 | ) | |||
Acquisition of Woodway | (24,133 | ) | — | ||||
Net cash used in investing activities | (24,837 | ) | (337 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Purchases of treasury stock | (1,327 | ) | (669 | ) | |||
Restricted stock returned for payment of taxes | (5,621 | ) | (5,190 | ) | |||
Excess tax benefits from stock based compensation | 1,432 | 1,850 | |||||
Cash dividends | (13,065 | ) | (10,637 | ) | |||
Net cash used in financing activities | (18,581 | ) | (14,646 | ) | |||
Effect of currency rate changes on cash | (2,430 | ) | (264 | ) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 5,752 | 5,621 | |||||
Cash and cash equivalents, beginning of period | 18,131 | 10,864 | |||||
Cash and cash equivalents, end of period | $ | 23,883 | $ | 16,485 | |||
Supplemental cash flow information: | |||||||
Cash paid during the period for income taxes | $ | 11,664 | $ | 9,073 | |||
Common stock issued for acquisition | $ | 5,292 | $ | — | |||
Non-cash accrued contingent consideration | $ | 9,102 | $ | — |
Three Months Ended | |||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||||
Net Income | $ | 7,013 | $ | 9,795 | $ | 7,118 | |||||
Add: Stock based compensation expense | 4,865 | 4,017 | 3,635 | ||||||||
Add: Intangible amortization | 400 | 462 | 90 | ||||||||
Add: Tax benefit from goodwill amortization | 156 | 78 | 38 | ||||||||
Economic earnings | $ | 12,434 | $ | 14,352 | $ | 10,881 | |||||
Diluted weighted average shares | 8,037,080 | 7,961,406 | 7,734,309 | ||||||||
Economic EPS | $ | 1.55 | $ | 1.80 | $ | 1.41 |
Nine Months Ended September 30, | |||||||
2015 | 2014 | ||||||
Net Income | $ | 22,418 | $ | 21,271 | |||
Add: Stock based compensation expense | 12,560 | 10,103 | |||||
Add: Intangible amortization | 951 | 270 | |||||
Add: Tax benefit from goodwill amortization | 272 | 114 | |||||
Economic earnings | $ | 36,201 | $ | 31,758 | |||
Diluted weighted average shares | 8,076,055 | 7,801,073 | |||||
Economic EPS | $ | 4.48 | $ | 4.07 |
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