WHG 8-K

Westwood Holdings Group Inc (WHG)

8-K 2024-05-01 For: 2024-05-01

View Original

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, 2024		December 31, 2023		March 31, 2023
REVENUES:
Advisory fees:
Asset-based	$	16,817	$	16,657	$	17,033
Performance-based	—		710		555
Trust fees	5,113		5,124		5,031
Trust performance-based fees	—		349		—
Other, net	802		389		108
Total revenues	22,732		23,229		22,727
EXPENSES:
Employee compensation and benefits	14,711		12,367		14,202
Sales and marketing	628		810		740
Westwood mutual funds	721		783		732
Information technology	2,290		2,367		2,383
Professional services	1,489		1,239		1,529
General and administrative	2,901		2,933		3,046

(Gain) loss from change in fair value of contingent consideration	(2,949)		(113)		(1,060)
Acquisition expenses	—		—		209
Total expenses	19,791		20,386		21,781
Net operating income	2,941		2,843		946

Net change in unrealized appreciation (depreciation) on private investments	—		(18)		—
Net investment income	455		561		172
Other income	185		365		372

Income before income taxes	3,581		3,751		1,490
Income tax provision	1,415		1,168		776
Net income	$	2,166	$	2,583	$	714



Total comprehensive income	$	2,166	$	2,583	$	714
Less: Comprehensive income attributable to noncontrolling interest	(130)		7		21
Comprehensive income attributable to Westwood Holdings Group, Inc.	$	2,296	$	2,576	$	693
Earnings per Westwood Holdings Group, Inc. share:
Basic	$	0.28	$	0.32	$	0.09
Diluted	$	0.27	$	0.32	$	0.09
Weighted average shares outstanding:
Basic	8,099,028		8,007,896		7,853,921
Diluted	8,392,496		8,184,736		7,968,504
Economic Earnings	$	3,012	$	3,554	$	1,718
Economic EPS	$	0.36	$	0.43	$	0.22
Dividends declared per share	$	0.15	$	0.15	$	0.15


	March 31, 2024		December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents	$	25,888	$	20,422
Accounts receivable	15,178		14,394
Investments, at fair value	20,667		32,674
Prepaid income taxes	—		205
Other current assets	4,750		4,543
Total current assets	66,483		72,238
Investments	7,247		7,247
Equity method investments	4,519		4,284
Noncurrent investments at fair value	241		241
Goodwill	39,501		39,501
Deferred income taxes	1,570		726
Operating lease right-of-use assets	3,404		3,673
Intangible assets, net	23,761		24,803
Property and equipment, net of accumulated depreciation of $9,421 and $10,078	1,272		1,444
Other long-term assets	1,044		1,010
Total long-term assets	82,559		82,929
Total assets	$	149,042	$	155,167
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	6,846	$	6,130
Dividends payable	1,384		1,692
Compensation and benefits payable	2,949		9,539
Operating lease liabilities	1,406		1,286

Income taxes payable	2,035		—
Total current liabilities	14,620		18,647
Accrued dividends	663		675
Contingent consideration	7,184		10,133
Noncurrent operating lease liabilities	2,820		3,266
Total long-term liabilities	10,667		14,074
Total liabilities	25,287		32,721

Stockholders’ Equity:
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,125,042 and 11,856,737, respectively and outstanding 9,330,762 and 9,140,760, respectively	122		119
Additional paid-in capital	201,899		201,622
Treasury stock, at cost – 2,794,280 and 2,715,977, respectively	(86,930)		(85,990)

Retained earnings	6,749		4,650
Total Westwood Holdings Group, Inc. stockholders’ equity	121,840		120,401
Noncontrolling interest in consolidated subsidiary	1,915		2,045
Total liabilities and stockholders’ equity	$	149,042	$	155,167


	Three Months Ended March 31,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	2,166	$	714
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	174		176
Amortization of intangible assets	1,042		1,021
Net change in unrealized (appreciation) depreciation on investments	(632)		(369)

Stock-based compensation expense	1,515		1,748
Deferred income taxes	(844)		(136)
Non-cash lease expense	269		320
Loss on asset disposition	—		69


Fair value change of contingent consideration	(2,949)		(1,060)

Changes in operating assets and liabilities:
Net (purchases) sales of trading securities	12,404		47
Accounts receivable	(784)		(657)
Other current assets	(242)		(17)
Accounts payable and accrued liabilities	719		141
Compensation and benefits payable	(6,591)		(5,612)
Income taxes payable	2,240		881
Other liabilities	(354)		(445)
Net cash provided by (used in) operating activities	8,133		(3,179)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition, net of cash acquired	—		(1,168)


Purchases of property and equipment	(3)		(84)




Net cash used in investing activities	(3)		(1,252)
CASH FLOWS FROM FINANCING ACTIVITIES:


Restricted stock returned for payment of taxes	(940)		(837)


Cash dividends	(1,724)		(1,840)
Net cash used in financing activities	(2,664)		(2,677)

NET CHANGE IN CASH AND CASH EQUIVALENTS	5,466		(7,108)
Cash and cash equivalents, beginning of period	20,422		23,859
Cash and cash equivalents, end of period	$	25,888	$	16,751
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for income taxes	$	9	$	32
Accrued dividends	$	2,047	$	1,972


Additional operating lease right-of-use assets	$	—	$	1,217