WHG 8-K

Westwood Holdings Group Inc (WHG)

8-K 2020-02-05 For: 2020-02-05

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Added on April 10, 2026


Delaware	001-31234	75-2969997
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


Exhibit No.						Description
99.1						Press Release dated February 5, 2020, entitled “Westwood Holdings Group, Inc. Reports Fourth Quarter and Fiscal Year 2019 Results”.


	Three Months Ended
	December 31, 2019		September 30, 2019		December 31, 2018
REVENUES:
Advisory fees:
Asset-based	$	12,768	$	13,164	$	19,388
Performance-based	310		154		—
Trust fees	6,219		6,281		6,688
Other, net	(681)		293		43
Total revenues	18,616		19,892		26,119

EXPENSES:
Employee compensation and benefits	12,092		12,072		13,102
Sales and marketing	518		506		535
Westwood mutual funds	674		916		842
Information technology	2,150		2,017		2,350
Professional services	1,064		940		1,106

General and administrative	2,363		2,317		2,264
(Gain) loss on foreign currency transactions	712		(402)		(1,968)
Total expenses	19,573		18,366		18,231
Net operating income	(957)		1,526		7,888

Unrealized gains on private investments	3,296		—		—
Investment income	1,318		—		—
Other income	34		33		—
Income before income taxes	3,691		1,559		7,888
Provision for income taxes	1,150		442		2,475
Net income	$	2,541	$	1,117	$	5,413
Other comprehensive income (loss):
Foreign currency translation adjustments	856		(482)		(2,057)
Total comprehensive income	$	3,397	$	635	$	3,356

Earnings per share:
Basic	$	0.30	$	0.13	$	0.65
Diluted	$	0.30	$	0.13	$	0.64

Weighted average shares outstanding:
Basic	8,389,322		8,432,598		8,383,972
Diluted	8,449,689		8,470,673		8,503,522

Economic Earnings	$	5,418	$	3,871	$	9,515
Economic EPS	$	0.64	$	0.46	$	1.12

Dividends declared per share	$	0.72	$	0.72	$	0.72


	Year Ended December 31,
	2019		2018
REVENUES:
Advisory fees:
Asset-based	$	57,033	$	89,367
Performance-based	764		2,984
Trust fees	25,483		28,953
Other, net	799		996
Total revenues	84,079		122,300

EXPENSES:
Employee compensation and benefits	50,152		59,959
Sales and marketing	2,068		1,936
Westwood mutual funds	3,097		3,808
Information technology	8,426		9,103
Professional services	4,322		4,783

General and administrative	9,516		9,564
(Gain) loss on foreign currency transactions	1,854		(2,791)
Total expenses	79,435		86,362
Net operating income	4,644		35,938
Gain on sale of operations	—		524
Unrealized gains on private investments	3,296		—
Investment income	1,318		—
Other income	144		—
Income before income taxes	9,402		36,462
Provision for income taxes	3,491		9,711
Net income	$	5,911	$	26,751
Other comprehensive income (loss):
Foreign currency translation adjustments	1,940		(3,119)
Total comprehensive income	$	7,851	$	23,632

Earnings per share:
Basic	$	0.70	$	3.20
Diluted	$	0.70	$	3.13

Weighted average shares outstanding:
Basic	8,408,017		8,365,360
Diluted	8,463,239		8,547,370

Economic Earnings	$	18,179	$	43,943
Economic EPS	$	2.15	$	5.14

Dividends declared per share	$	2.88	$	2.76


	December 31, 2019		December 31, 2018
ASSETS
Current Assets:
Cash and cash equivalents	$	49,766	$	52,449
Accounts receivable	13,177		18,429
Investments, at fair value	50,324		65,781
Prepaid income taxes	1,150		349
Other current assets	2,544		2,731
Total current assets	116,961		139,739
Investments	8,154		5,425
Noncurrent investments at fair value	4,238		—
Goodwill	19,804		19,804
Deferred income taxes	2,216		5,102
Operating lease right-of-use assets	7,562		8,698
Intangible assets, net	15,256		15,961
Property and equipment, net of accumulated depreciation of $7,395 and $6,462	4,152		4,454
Other long-term assets	364		—
Total assets	$	178,707	$	199,183
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	2,145	$	2,518
Dividends payable	7,362		7,710
Compensation and benefits payable	9,975		15,102

Operating lease liabilities	1,584		1,432
Income taxes payable	289		365
Total current liabilities	21,355		27,127
Accrued dividends	1,303		1,576

Noncurrent operating lease liabilities	7,762		9,331
Total long-term liabilities	9,065		10,907
Total liabilities	30,420		38,034

Stockholders’ Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 10,306,570 and outstanding 8,881,086 shares at December 31, 2019; issued 10,182,583 and outstanding 8,904,902 shares at December 31, 2018	103		102
Additional paid-in capital	203,441		194,116
Treasury stock, at cost – 1,425,483 shares at December 31, 2019; 1,277,681 shares at December 31, 2018	(63,281)		(58,711)
Accumulated other comprehensive loss	(2,943)		(4,883)
Retained earnings	10,967		30,525
Total stockholders’ equity	148,287		161,149
Total liabilities and stockholders’ equity	$	178,707	$	199,183


	Year ended December 31,
	2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	5,911	$	26,751
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	898		867
Amortization of intangible assets	1,726		1,672
Unrealized (gains) losses on investments	(3,650)		737
Stock-based compensation expense	10,305		15,283
Deferred income taxes	2,906		(1,749)

Gain on sale of operations	—		(524)
Non-cash lease expense	1,151		1,062
Changes in operating assets and liabilities:
Net (purchases) sales of investments – trading securities	15,811		(15,194)
Accounts receivable	5,404		2,678
Other current assets	(608)		3,755
Accounts payable and accrued liabilities	(382)		(644)
Compensation and benefits payable	(5,018)		(3,636)
Income taxes payable	(849)		1,643
Other liabilities	(1,433)		(1,217)
Net cash provided by operating activities	32,172		31,484
CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property, equipment and other	(593)		(991)
Proceeds from Omaha divestiture	—		10,013
Purchases of investments	(3,671)		(5,425)
Additions to internally developed software	(584)		—

Net cash provided by (used in) investing activities	(4,848)		3,597
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	(2,414)		(4,000)
Purchases of treasury stock for employee stock plans	(980)		(726)
Restricted stock returned for payment of taxes	(2,387)		(4,768)


Cash dividends	(26,089)		(24,621)
Net cash used in financing activities	(31,870)		(34,115)
Effect of currency rate changes on cash	1,863		(2,766)