WHG 8-K

Westwood Holdings Group Inc (WHG)

8-K 2020-04-29 For: 2020-04-29

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Added on April 10, 2026


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common stock, par value $0.01 per share	WHG	New York Stock Exchange


			WESTWOOD HOLDINGS GROUP, INC.


By:			/s/ Murray Forbes III
			Murray Forbes III
			Chief Financial Officer and Treasurer


	Three Months Ended
	March 31, 2020		December 31, 2019		March 31, 2019
REVENUES:
Advisory fees:
Asset-based	$	11,102	$	12,768	$	16,406
Performance-based	—		310		180
Trust fees	5,951		6,219		6,539
Other, net	(384)		(681)		737
Total revenues	16,669		18,616		23,862

EXPENSES:
Employee compensation and benefits	12,668		12,092		14,610
Sales and marketing	478		518		530
Westwood mutual funds	515		674		846
Information technology	2,031		2,150		1,977
Professional services	1,193		1,064		1,149
General and administrative	2,306		2,363		2,434
(Gain) loss on foreign currency transactions	(2,938)		712		820
Total expenses	16,253		19,573		22,366
Net operating income (loss)	416		(957)		1,496

Unrealized gains (losses) on private investments	(995)		3,296		—
Investment income	544		1,318		—
Other income	34		34		—
Income (loss) before income taxes	(1)		3,691		1,496
Income tax expense (benefit)	(1,103)		1,150		1,104
Net income	$	1,102	$	2,541	$	392
Other comprehensive income (loss):
Foreign currency translation adjustments	(3,242)		856		831
Total comprehensive income (loss)	$	(2,140)	$	3,397	$	1,223

Earnings per share:
Basic	$	0.13	$	0.30	$	0.05
Diluted	$	0.13	$	0.30	$	0.05

Weighted average shares outstanding:
Basic	8,414,393		8,389,322		8,363,109
Diluted	8,458,473		8,449,689		8,455,386

Economic Earnings	$	4,200	$	5,418	$	4,116
Economic EPS	$	0.50	$	0.64	$	0.49

Dividends declared per share	$	0.43	$	0.72	$	0.72


	March 31, 2020		December 31, 2019
ASSETS
Current Assets:
Cash and cash equivalents	$	45,116	$	49,766
Accounts receivable	11,172		13,177
Investments, at fair value	37,272		50,324
Prepaid income taxes	658		1,150
Other current assets	2,168		2,544
Total current assets	96,386		116,961
Investments	8,154		8,154
Noncurrent investments at fair value	3,243		4,238
Goodwill	19,804		19,804
Deferred income taxes	3,831		2,216
Operating lease right-of-use assets	7,220		7,562
Intangible assets, net	14,833		15,256
Property and equipment, net of accumulated depreciation of $7,570 and $7,395	3,931		4,152
Other long-term assets	400		364
Total assets	$	157,802	$	178,707
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	1,676	$	2,145
Dividends payable	4,834		7,362
Compensation and benefits payable	2,323		9,975
Operating lease liabilities	1,622		1,584
Accrued stock repurchases	920		—
Income taxes payable	323		289
Total current liabilities	11,698		21,355
Accrued dividends	411		1,303
Noncurrent operating lease liabilities	7,304		7,762
Total long-term liabilities	7,715		9,065
Total liabilities	19,413		30,420

Stockholders’ Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 10,548,103 and outstanding 8,780,041 shares at March 31, 2020; issued 10,306,570 and outstanding 8,881,086 shares at December 31, 2019	106		103
Additional paid-in capital	206,267		203,441
Treasury stock, at cost – 1,768,061 shares at March 31, 2020; 1,425,483 shares at December 31, 2019	(69,965)		(63,281)
Accumulated other comprehensive loss	(6,185)		(2,943)
Retained earnings	8,166		10,967
Total stockholders’ equity	138,389		148,287
Total liabilities and stockholders’ equity	$	157,802	$	178,707


	Three Months Ended March 31,
	2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	1,102	$	392
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	233		212
Amortization of intangible assets	423		413
Unrealized (gains) losses on investments	1,133		(374)
Stock-based compensation expense	2,616		3,252
Deferred income taxes	(1,643)		273
Non-cash lease expense	305		242
Changes in operating assets and liabilities:
Net (purchases) sales of investments – trading securities	12,916		16,554
Accounts receivable	1,844		2,981
Other current assets	326		(886)
Accounts payable and accrued liabilities	(469)		(275)
Compensation and benefits payable	(7,356)		(12,305)
Income taxes payable	475		379
Other liabilities	(383)		(293)
Net cash provided by operating activities	11,522		10,565
CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment	(16)		(71)
Purchases of investments	—		(250)


Net cash used in investing activities	(16)		(321)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchases of treasury stock	(3,947)		(981)
Purchases of treasury stock for employee stock plans	(697)		—
Restricted stock returned for payment of taxes	(1,120)		(2,385)


Cash dividends	(7,324)		(7,686)
Net cash used in financing activities	(13,088)		(11,052)
Effect of currency rate changes on cash	(3,068)		780
NET DECREASE IN CASH AND CASH EQUIVALENTS	(4,650)		(28)
Cash and cash equivalents, beginning of period	49,766		52,449
Cash and cash equivalents, end of period	$	45,116	$	52,421

Supplemental cash flow information:
Cash paid during the period for income taxes	$	64	$	453


Accrued dividends	$	5,245	$	7,980
Accrued purchases of property and equipment	$	—	$	425
Accrued purchases of treasury stock	$	920	$	—