99.1 | Press Release dated October 26, 2016, entitled “Westwood Holdings Group, Inc. Reports Third Quarter 2016 Results; Assets Under Management of $21.3 Billion; Assets Under Advisement Increase to $1.1 Billion; Quarterly Dividend Increased 9%, Representing the 14th Consecutive Year of Increases”. |
99.1 | Press Release dated October 26, 2016, entitled “Westwood Holdings Group, Inc. Reports Third Quarter 2016 Results; Assets Under Management of $21.3 Billion; Assets Under Advisement Increase to $1.1 Billion; Quarterly Dividend Increased 9%, Representing the 14th Consecutive Year of Increases”. |
• | Continued strong performance of our Emerging Markets and Multi-Asset strategies. |
• | Appointed to sub-advise approximately $800 million in the Aviva Investors Global Convertibles Fund. |
• | Authorized an additional $5 million of repurchases of our outstanding common stock under our share repurchase program, bringing total authorized repurchases up to $15 million ($9.4 million available for repurchases at September 30, 2016). |
• | Repurchased 24,199 shares of our common stock at an aggregate purchase price of $1.2 million. |
Three Months Ended | |||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||
REVENUES: | |||||||||||
Advisory fees: | |||||||||||
Asset-based | $ | 23,447 | $ | 22,666 | $ | 24,940 | |||||
Performance-based | 226 | 409 | — | ||||||||
Trust fees | 7,690 | 7,643 | 7,973 | ||||||||
Other, net | 414 | 305 | (462 | ) | |||||||
Total revenues | 31,777 | 31,023 | 32,451 | ||||||||
EXPENSES: | |||||||||||
Employee compensation and benefits | $ | 15,637 | $ | 15,108 | $ | 15,686 | |||||
Sales and marketing | 408 | 687 | 419 | ||||||||
Westwood mutual funds | 755 | 831 | 865 | ||||||||
Information technology | 1,874 | 2,201 | 1,626 | ||||||||
Professional services | 1,903 | 1,158 | 1,178 | ||||||||
General and administrative | 2,147 | 2,526 | 2,175 | ||||||||
Total expenses | 22,724 | 22,511 | 21,949 | ||||||||
Income before income taxes | 9,053 | 8,512 | 10,502 | ||||||||
Provision for income taxes | 3,166 | 2,851 | 3,489 | ||||||||
Net income | $ | 5,887 | $ | 5,661 | $ | 7,013 | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | (453 | ) | 157 | (1,386 | ) | ||||||
Total comprehensive income | $ | 5,434 | $ | 5,818 | $ | 5,627 | |||||
Earnings per share: | |||||||||||
Basic | $ | 0.74 | $ | 0.71 | $ | 0.90 | |||||
Diluted | $ | 0.72 | $ | 0.69 | $ | 0.87 | |||||
Weighted average shares outstanding: | |||||||||||
Basic | 7,995,680 | 8,000,214 | 7,808,239 | ||||||||
Diluted | 8,179,956 | 8,172,923 | 8,037,080 | ||||||||
Economic Earnings | $ | 10,615 | $ | 10,387 | $ | 12,434 | |||||
Economic EPS | $ | 1.30 | $ | 1.27 | $ | 1.55 | |||||
Dividends declared per share | $ | 0.57 | $ | 0.57 | $ | 0.50 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
REVENUES: | |||||||
Advisory fees: | |||||||
Asset-based | $ | 67,928 | $ | 76,327 | |||
Performance-based | 635 | 2,206 | |||||
Trust fees | 22,798 | 21,044 | |||||
Other, net | 568 | (207 | ) | ||||
Total revenues | 91,929 | 99,370 | |||||
EXPENSES: | |||||||
Employee compensation and benefits | $ | 47,239 | $ | 47,507 | |||
Sales and marketing | 1,423 | 1,310 | |||||
Westwood mutual funds | 2,282 | 2,593 | |||||
Information technology | 6,039 | 4,085 | |||||
Professional services | 4,707 | 4,281 | |||||
General and administrative | 7,028 | 5,962 | |||||
Total expenses | 68,718 | 65,738 | |||||
Income before income taxes | 23,211 | 33,632 | |||||
Provision for income taxes | 8,141 | 11,214 | |||||
Net income | $ | 15,070 | $ | 22,418 | |||
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 1,007 | (2,541 | ) | ||||
Total comprehensive income | $ | 16,077 | $ | 19,877 | |||
Earnings per share: | |||||||
Basic | $ | 1.89 | $ | 2.90 | |||
Diluted | $ | 1.84 | $ | 2.78 | |||
Weighted average shares outstanding: | |||||||
Basic | 7,952,938 | 7,737,608 | |||||
Diluted | 8,212,468 | 8,076,055 | |||||
Economic Earnings | $ | 29,094 | $ | 36,201 | |||
Economic EPS | $ | 3.54 | $ | 4.48 | |||
Dividends declared per share | $ | 1.71 | $ | 1.50 |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 30,692 | $ | 22,740 | |||
Accounts receivable | 22,810 | 19,618 | |||||
Investments, at fair value | 49,849 | 72,320 | |||||
Other current assets | 2,355 | 2,926 | |||||
Total current assets | 105,706 | 117,604 | |||||
Goodwill | 27,144 | 27,144 | |||||
Deferred income taxes | 10,950 | 11,042 | |||||
Intangible assets, net | 21,884 | 23,354 | |||||
Property and equipment, net of accumulated depreciation of $4,365 and $3,687 | 4,014 | 2,192 | |||||
Total assets | $ | 169,698 | $ | 181,336 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 3,498 | $ | 3,549 | |||
Dividends payable | 6,146 | 5,749 | |||||
Compensation and benefits payable | 13,357 | 20,264 | |||||
Contingent consideration | — | 9,023 | |||||
Income taxes payable | 2,482 | 6,268 | |||||
Total current liabilities | 25,483 | 44,853 | |||||
Accrued dividends | 1,536 | 1,699 | |||||
Deferred rent | 1,827 | 817 | |||||
Total liabilities | 28,846 | 47,369 | |||||
Stockholders’ Equity: | |||||||
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 9,830,612 and outstanding 8,830,021 shares at September 30, 2016; issued 9,425,309 and outstanding 8,630,687 shares at December 31, 2015 | 99 | 94 | |||||
Additional paid-in capital | 159,615 | 143,797 | |||||
Treasury stock, at cost - 1,000,591 shares at September 30, 2016; 794,622 shares at December 31, 2015 | (44,863 | ) | (34,910 | ) | |||
Accumulated other comprehensive loss | (3,681 | ) | (4,688 | ) | |||
Retained earnings | 29,682 | 29,674 | |||||
Total stockholders’ equity | 140,852 | 133,967 | |||||
Total liabilities and stockholders’ equity | $ | 169,698 | $ | 181,336 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 15,070 | $ | 22,418 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 732 | 606 | |||||
Amortization of intangible assets | 1,470 | 951 | |||||
Unrealized losses (gains) on trading investments | (676 | ) | 484 | ||||
Stock based compensation expense | 12,164 | 12,560 | |||||
Deferred income taxes | 114 | (1,923 | ) | ||||
Excess tax benefits from stock based compensation | (165 | ) | (1,432 | ) | |||
Net sales (purchases) of investments – trading securities | 23,147 | 22,679 | |||||
Other non-cash, net | 275 | (3 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (2,711 | ) | (5,332 | ) | |||
Other current assets | 900 | 236 | |||||
Accounts payable and accrued liabilities | (82 | ) | 537 | ||||
Compensation and benefits payable | (6,758 | ) | (2,052 | ) | |||
Income taxes payable | (4,637 | ) | 1,899 | ||||
Other liabilities | 154 | (28 | ) | ||||
Net cash provided by operating activities | 38,997 | 51,600 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (1,680 | ) | (704 | ) | |||
Acquisition of Woodway, net of cash acquired | — | (24,133 | ) | ||||
Net cash used in investing activities | (1,680 | ) | (24,837 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Purchases of treasury stock | (5,629 | ) | — | ||||
Purchase of treasury stock under employee stock plans | (614 | ) | (1,327 | ) | |||
Restricted stock returned for payment of taxes | (3,710 | ) | (5,621 | ) | |||
Excess tax benefits from stock based compensation | 165 | 1,432 | |||||
Payment of contingent consideration in acquisition | (5,562 | ) | — | ||||
Cash dividends | (14,827 | ) | (13,065 | ) | |||
Net cash used in financing activities | (30,177 | ) | (18,581 | ) | |||
Effect of currency rate changes on cash | 812 | (2,430 | ) | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 7,952 | 5,752 | |||||
Cash and cash equivalents, beginning of period | 22,740 | 18,131 | |||||
Cash and cash equivalents, end of period | $ | 30,692 | $ | 23,883 | |||
Supplemental cash flow information: | |||||||
Cash paid during the period for income taxes | $ | 12,632 | $ | 11,664 | |||
Common stock issued for acquisition | $ | 3,734 | $ | 5,292 | |||
Non-cash accrued contingent consideration | $ | — | $ | 9,102 | |||
Accrued dividends | $ | 7,682 | $ | 6,452 | |||
Tenant allowance included in Property and equipment | $ | 1,128 | $ | — |
Three Months Ended | |||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||
Net Income | $ | 5,887 | $ | 5,661 | $ | 7,013 | |||||
Add: Stock based compensation expense | 4,082 | 4,080 | 4,865 | ||||||||
Add: Intangible amortization | 490 | 490 | 400 | ||||||||
Add: Tax benefit from goodwill amortization | 156 | 156 | 156 | ||||||||
Economic Earnings | $ | 10,615 | $ | 10,387 | $ | 12,434 | |||||
Diluted weighted average shares | 8,179,956 | 8,172,923 | 8,037,080 | ||||||||
Economic EPS | $ | 1.30 | $ | 1.27 | $ | 1.55 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Net Income | $ | 15,070 | $ | 22,418 | |||
Add: Stock based compensation expense | 12,164 | 12,560 | |||||
Add: Intangible amortization | 1,470 | 951 | |||||
Add: Tax benefit from goodwill amortization | 390 | 272 | |||||
Economic Earnings | $ | 29,094 | $ | 36,201 | |||
Diluted weighted average shares | 8,212,468 | 8,076,055 | |||||
Economic EPS | $ | 3.54 | $ | 4.48 |
&%P+S$N,"\ /#]X<&%C:V5T
M(&)E9VEN/2?ON[\G(&ED/2=7-4TP37!#96AI2'IR95-Z3E1C>FMC.60G/SX*
M/'@Z>&UP;65T82!X;6QN
M7W74L]KJ<@>DD) EC8?C&DA#4,P/5;+*R,R.I5E)5E8%65E-BK V(((Y'N1N
M.1PZCGA@\>N/OW7NO>_=>Z][]U[H1^INH>S>]M_8#J_J#96=[ W[N>J%+AMM
M[?I?N*N 4<"3VQG%&>H33>W!N#/;LSF6W-NC-97<>X\]
M7U65S>>SF0JLKF,ODZV5IZS(9/)5TL]975M5,Y:261V=V-R?>7UO;P6L$5M:
MPK';QJ%55 5548 % /(#K$"XN)[J>6YNIFDN)&+,S$LS, 056%U]]#O:WE;^J?)FU6,L>F_F7QY\4/B2@'2?G&FF,_-.N>'NGS2>;.<
M]UOHI-5A"W@09J/#B)&H?*1]4@^3_+JN+W(?4>=>]^Z]U[W[KW7O?NO=>]^Z
M]U[W[KW1A?B-_P!E7?&/_P 6%Z6_]^1MKV00JOY]?,;W5N?/;WW1N3>FZ