Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
75-2969997 | |||||||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | ||||||||||
200 CRESCENT COURT, SUITE 1200 | |||||||||||
DALLAS, | Texas | 75201 | |||||||||
(Address of principal executive office) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common stock, par value $0.01 per share | WHG | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||||||||||||||
Emerging growth company | ||||||||||||||||||||
☐ |
PART I | FINANCIAL INFORMATION | PAGE | |||||||||
Item 1. | Financial Statements | ||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | |||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 12,989 | $ | 13,016 | |||||||
Accounts receivable | 11,744 | 9,450 | |||||||||
Investments, at fair value | 73,880 | 69,542 | |||||||||
Prepaid income taxes | 336 | 1,700 | |||||||||
Other current assets | 2,588 | 2,606 | |||||||||
Total current assets | 101,537 | 96,314 | |||||||||
Investments | 4,455 | 8,154 | |||||||||
Noncurrent investments at fair value | 3,981 | 3,527 | |||||||||
Goodwill | 16,401 | 16,401 | |||||||||
Deferred income taxes | 1,418 | 1,468 | |||||||||
Operating lease right-of-use assets | 5,796 | 6,103 | |||||||||
Intangible assets, net | 13,129 | 13,535 | |||||||||
Property and equipment, net of accumulated depreciation of $8,099 and $8,056 | 2,488 | 3,186 | |||||||||
Other long-term assets | 459 | 464 | |||||||||
Total assets | $ | 149,664 | $ | 149,152 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 2,431 | $ | 1,627 | |||||||
Dividends payable | 1,109 | 810 | |||||||||
Compensation and benefits payable | 2,426 | 7,448 | |||||||||
Operating lease liabilities | 1,420 | 1,718 | |||||||||
Accrued stock repurchases | 359 | 0 | |||||||||
Income taxes payable | 2,450 | 191 | |||||||||
Total current liabilities | 10,195 | 11,794 | |||||||||
Accrued dividends | 230 | 526 | |||||||||
Noncurrent operating lease liabilities | 5,794 | 6,121 | |||||||||
Total long-term liabilities | 6,024 | 6,647 | |||||||||
Total liabilities | 16,219 | 18,441 | |||||||||
Commitments and contingencies (Note 10) | 0 | 0 | |||||||||
Stockholders' Equity: | |||||||||||
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 10,630,452 and outstanding 8,313,003 shares at March 31, 2021; issued 10,500,549 and outstanding 8,326,948 shares at December 31, 2020 | 107 | 105 | |||||||||
Additional paid-in capital | 211,988 | 210,268 | |||||||||
Treasury stock, at cost - 2,317,449 shares at March 31, 2021; 2,173,559 shares at December 31, 2020 | (80,255) | (77,967) | |||||||||
Retained earnings (accumulated deficit) | 1,605 | (1,695) | |||||||||
Total stockholders' equity | 133,445 | 130,711 | |||||||||
Total liabilities and stockholders' equity | $ | 149,664 | $ | 149,152 |
September 30, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 51,436 | $ | 33,679 | ||||
Accounts receivable | 22,163 | 23,429 | ||||||
Investments, at fair value | 48,093 | 56,485 | ||||||
Income taxes receivable | 2,744 | — | ||||||
Other current assets | 6,261 | 2,364 | ||||||
Total current assets | 130,697 | 115,957 | ||||||
Goodwill | 27,144 | 27,144 | ||||||
Deferred income taxes | 9,473 | 10,903 | ||||||
Intangible assets, net | 19,945 | 21,394 | ||||||
Property and equipment, net of accumulated depreciation of $5,354 and $4,590 | 4,103 | 4,280 | ||||||
Total assets | $ | 191,362 | $ | 179,678 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 2,851 | $ | 2,641 | ||||
Accrued litigation settlement | 8,018 | — | ||||||
Dividends payable | 6,666 | 6,679 | ||||||
Compensation and benefits payable | 14,126 | 17,200 | ||||||
Income taxes payable | 722 | 3,148 | ||||||
Total current liabilities | 32,383 | 29,668 | ||||||
Accrued dividends | 1,495 | 1,767 | ||||||
Deferred rent | 2,055 | 2,174 | ||||||
Total liabilities | 35,933 | 33,609 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Stockholders' Equity: | ||||||||
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 9,986,076 and outstanding 8,884,421 shares at September 30, 2017; issued 9,801,938 and outstanding 8,810,375 shares at December 31, 2016 | 100 | 98 | ||||||
Additional paid-in capital | 176,329 | 162,730 | ||||||
Treasury stock, at cost - 1,101,655 shares at September 30, 2017; 991,563 shares at December 31, 2016 | (50,910 | ) | (44,353 | ) | ||||
Accumulated other comprehensive loss | (1,849 | ) | (4,287 | ) | ||||
Retained earnings | 31,759 | 31,881 | ||||||
Total stockholders' equity | 155,429 | 146,069 | ||||||
Total liabilities and stockholders' equity | $ | 191,362 | $ | 179,678 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
REVENUES: | ||||||||||||||||
Advisory fees: | ||||||||||||||||
Asset-based | $ | 25,334 | $ | 23,447 | $ | 73,619 | $ | 67,928 | ||||||||
Performance-based | — | 226 | 1,417 | 635 | ||||||||||||
Trust fees | 7,858 | 7,690 | 23,570 | 22,798 | ||||||||||||
Other, net | 300 | 414 | 1,265 | 568 | ||||||||||||
Total revenues | 33,492 | 31,777 | 99,871 | 91,929 | ||||||||||||
EXPENSES: | ||||||||||||||||
Employee compensation and benefits | 15,601 | 15,637 | 48,875 | 47,239 | ||||||||||||
Sales and marketing | 457 | 408 | 1,447 | 1,423 | ||||||||||||
Westwood mutual funds | 977 | 755 | 2,749 | 2,282 | ||||||||||||
Information technology | 1,855 | 1,874 | 5,494 | 6,039 | ||||||||||||
Professional services | 1,681 | 1,903 | 4,495 | 4,707 | ||||||||||||
Legal settlement | 4,009 | — | 4,009 | — | ||||||||||||
General and administrative | 3,160 | 2,147 | 8,697 | 7,028 | ||||||||||||
Total expenses | 27,740 | 22,724 | 75,766 | 68,718 | ||||||||||||
Income before income taxes | 5,752 | 9,053 | 24,105 | 23,211 | ||||||||||||
Provision for income taxes | 1,620 | 3,166 | 7,013 | 8,141 | ||||||||||||
Net income | $ | 4,132 | $ | 5,887 | $ | 17,092 | $ | 15,070 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | 1,297 | (453 | ) | 2,438 | 1,007 | |||||||||||
Total comprehensive income | $ | 5,429 | $ | 5,434 | $ | 19,530 | $ | 16,077 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.51 | $ | 0.74 | $ | 2.10 | $ | 1.89 | ||||||||
Diluted | $ | 0.49 | $ | 0.72 | $ | 2.05 | $ | 1.84 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 8,171,809 | 7,995,680 | 8,136,350 | 7,952,938 | ||||||||||||
Diluted | 8,420,749 | 8,179,956 | 8,350,926 | 8,212,468 | ||||||||||||
Cash dividends declared per share | $ | 0.62 | $ | 0.57 | $ | 1.86 | $ | 1.71 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
REVENUES: | |||||||||||||||||||||||
Advisory fees: | |||||||||||||||||||||||
Asset-based | $ | 10,450 | $ | 11,102 | |||||||||||||||||||
Performance-based | 1,959 | 0 | |||||||||||||||||||||
Trust fees | 6,065 | 5,951 | |||||||||||||||||||||
Other, net | (155) | (384) | |||||||||||||||||||||
Total revenues | 18,319 | 16,669 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Employee compensation and benefits | 11,548 | 12,668 | |||||||||||||||||||||
Sales and marketing | 230 | 478 | |||||||||||||||||||||
Westwood mutual funds | 391 | 515 | |||||||||||||||||||||
Information technology | 1,992 | 2,031 | |||||||||||||||||||||
Professional services | 1,317 | 1,193 | |||||||||||||||||||||
General and administrative | 2,072 | 2,306 | |||||||||||||||||||||
(Gain) loss on foreign currency transactions | 0 | (2,938) | |||||||||||||||||||||
Total expenses | 17,550 | 16,253 | |||||||||||||||||||||
Net operating income | 769 | 416 | |||||||||||||||||||||
Realized gains on private investments | 8,325 | 0 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on private investments | (2,326) | (995) | |||||||||||||||||||||
Investment income | 196 | 544 | |||||||||||||||||||||
Other income | 50 | 34 | |||||||||||||||||||||
Income (loss) before income taxes | 7,014 | (1) | |||||||||||||||||||||
Income tax expense (benefit) | 2,913 | (1,103) | |||||||||||||||||||||
Net income | $ | 4,101 | $ | 1,102 | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | 0 | (3,242) | |||||||||||||||||||||
Total comprehensive income (loss) | $ | 4,101 | $ | (2,140) | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.52 | $ | 0.13 | |||||||||||||||||||
Diluted | $ | 0.52 | $ | 0.13 | |||||||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 7,887,044 | 8,414,393 | |||||||||||||||||||||
Diluted | 7,917,390 | 8,458,473 |
Common Stock, Par | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Total | |||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 8,326,948 | $ | 105 | $ | 210,268 | $ | (77,967) | $ | (1,695) | $ | 130,711 | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | 4,101 | 4,101 | |||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of forfeitures | 129,905 | 2 | (2) | — | — | 0 | |||||||||||||||||||||||||||||||||||
Dividends declared ($0.10 per share) | — | — | — | — | (801) | (801) | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 1,722 | — | — | 1,722 | |||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (92,491) | — | — | (1,404) | — | (1,404) | |||||||||||||||||||||||||||||||||||
Restricted stock returned for payment of taxes | (51,359) | — | — | (884) | — | (884) | |||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 8,313,003 | $ | 107 | $ | 211,988 | $ | (80,255) | $ | 1,605 | $ | 133,445 |
Common Stock, Par | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total | ||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||
BALANCE, December 31, 2016 | 8,810,375 | $ | 98 | $ | 162,730 | $ | (44,353 | ) | $ | (4,287 | ) | $ | 31,881 | $ | 146,069 | ||||||||||||
Cumulative effect of accounting change | — | — | 711 | — | — | (711 | ) | — | |||||||||||||||||||
Net income | — | — | — | — | — | 17,092 | 17,092 | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | 2,438 | — | 2,438 | ||||||||||||||||||||
Issuance of restricted stock, net of forfeitures | 184,138 | 2 | (2 | ) | — | — | — | — | |||||||||||||||||||
Dividends declared | — | — | — | — | — | (16,503 | ) | (16,503 | ) | ||||||||||||||||||
Stock based compensation expense | — | — | 12,298 | — | — | — | 12,298 | ||||||||||||||||||||
Reclassification of compensation liability to be paid in shares | — | — | 592 | — | — | — | 592 | ||||||||||||||||||||
Purchases of treasury stock | (23,822 | ) | — | — | (1,326 | ) | — | — | (1,326 | ) | |||||||||||||||||
Restricted stock returned for payment of taxes | (86,270 | ) | — | — | (5,231 | ) | — | — | (5,231 | ) | |||||||||||||||||
BALANCE, September 30, 2017 | 8,884,421 | $ | 100 | $ | 176,329 | $ | (50,910 | ) | $ | (1,849 | ) | $ | 31,759 | $ | 155,429 |
Common Stock, Par | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2019 | 8,881,086 | $ | 103 | $ | 203,441 | $ | (63,281) | $ | (2,943) | $ | 10,967 | $ | 148,287 | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,102 | 1,102 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3,242) | — | (3,242) | ||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of forfeitures | 241,533 | 3 | (3) | — | — | — | 0 | ||||||||||||||||||||||||||||||||||
Dividends declared ($0.43 per share) | — | — | — | — | — | (3,903) | (3,903) | ||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | 2,616 | — | — | — | 2,616 | ||||||||||||||||||||||||||||||||||
Reclassification of compensation liability to be paid in shares | — | — | 213 | — | — | — | 213 | ||||||||||||||||||||||||||||||||||
Purchases of treasury stock | (272,059) | — | — | (4,867) | — | — | (4,867) | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock under employee stock plans | (27,474) | — | — | (697) | — | — | (697) | ||||||||||||||||||||||||||||||||||
Restricted stock returned for payment of taxes | (43,045) | — | — | (1,120) | — | — | (1,120) | ||||||||||||||||||||||||||||||||||
Balance, March 31, 2020 | 8,780,041 | $ | 106 | $ | 206,267 | $ | (69,965) | $ | (6,185) | $ | 8,166 | $ | 138,389 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | 4,101 | $ | 1,102 | |||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||
Depreciation | 207 | 233 | |||||||||
Amortization of intangible assets | 406 | 423 | |||||||||
Net change in unrealized (appreciation) depreciation on investments | 2,432 | 1,133 | |||||||||
Realized gains on private investments | (8,325) | 0 | |||||||||
Stock based compensation expense | 1,722 | 2,616 | |||||||||
Deferred income taxes | 40 | (1,643) | |||||||||
Non-cash lease expense | 307 | 305 | |||||||||
Gain on asset disposition | (148) | 0 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Net (purchases) sales of trading securities | (4,444) | 12,916 | |||||||||
Accounts receivable | (2,295) | 1,844 | |||||||||
Other current assets | 23 | 326 | |||||||||
Accounts payable and accrued liabilities | 803 | (469) | |||||||||
Compensation and benefits payable | (5,026) | (7,356) | |||||||||
Income taxes payable | 3,630 | 475 | |||||||||
Other liabilities | (478) | (383) | |||||||||
Net cash (used in) provided by operating activities | (7,045) | 11,522 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Sale of investments | 9,258 | 0 | |||||||||
Sale of property and equipment | 501 | 0 | |||||||||
Purchase of property and equipment | (9) | (16) | |||||||||
Purchase of investments | (15) | 0 | |||||||||
Net cash provided by (used in) investing activities | 9,735 | (16) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Purchases of treasury stock | (1,045) | (3,947) | |||||||||
Purchase of treasury stock under employee stock plans | 0 | (697) | |||||||||
Restricted stock returned for payment of taxes | (884) | (1,120) | |||||||||
Cash dividends paid | (801) | (7,324) | |||||||||
Net cash used in financing activities | (2,730) | (13,088) | |||||||||
Effect of currency rate changes on cash | 13 | (3,068) | |||||||||
Net Change in Cash and Cash Equivalents | (27) | (4,650) | |||||||||
Cash and cash equivalents, beginning of period | 13,016 | 49,766 | |||||||||
Cash and cash equivalents, end of period | $ | 12,989 | $ | 45,116 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid during the period for income taxes | $ | 769 | $ | 64 | |||||||
Accrued dividends | $ | 1,339 | $ | 5,245 | |||||||
Accrued purchases of treasury stock | $ | 359 | $ | 920 | |||||||
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 17,092 | $ | 15,070 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 722 | 732 | ||||||
Amortization of intangible assets | 1,449 | 1,470 | ||||||
Unrealized gains on trading investments | (539 | ) | (676 | ) | ||||
Stock based compensation expense | 12,298 | 12,164 | ||||||
Deferred income taxes | 1,481 | 114 | ||||||
Excess tax benefits from stock based compensation | — | (165 | ) | |||||
Other | — | 275 | ||||||
Change in operating assets and liabilities: | ||||||||
Net sales of investments - trading securities | 8,931 | 23,147 | ||||||
Accounts receivable | 1,686 | (2,711 | ) | |||||
Other current assets | (3,881 | ) | 900 | |||||
Accounts payable and accrued liabilities | 178 | (82 | ) | |||||
Accrued litigation settlement | 8,018 | — | ||||||
Compensation and benefits payable | (2,696 | ) | (6,758 | ) | ||||
Income taxes receivable/payable | (5,181 | ) | (4,637 | ) | ||||
Other liabilities | (111 | ) | 154 | |||||
Net cash provided by operating activities | 39,447 | 38,997 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of property and equipment | (537 | ) | (1,680 | ) | ||||
Net cash used in investing activities | (537 | ) | (1,680 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Purchases of treasury stock | — | (5,629 | ) | |||||
Purchase of treasury stock under employee stock plans | (1,326 | ) | (614 | ) | ||||
Restricted stock returned for payment of taxes | (5,231 | ) | (3,710 | ) | ||||
Excess tax benefits from stock based compensation | — | 165 | ||||||
Payment of contingent consideration in acquisition | — | (5,562 | ) | |||||
Cash dividends paid | (16,787 | ) | (14,827 | ) | ||||
Net cash used in financing activities | (23,344 | ) | (30,177 | ) | ||||
Effect of currency rate changes on cash | 2,191 | 812 | ||||||
Net Change in Cash and Cash Equivalents | 17,757 | 7,952 | ||||||
Cash and cash equivalents, beginning of period | 33,679 | 22,740 | ||||||
Cash and cash equivalents, end of period | $ | 51,436 | $ | 30,692 | ||||
Supplemental cash flow information: | ||||||||
Cash paid during the period for income taxes | $ | 10,245 | $ | 12,632 | ||||
Common stock issued for acquisition | $ | — | $ | 3,734 | ||||
Accrued dividends | $ | 8,161 | $ | 7,682 | ||||
Tenant allowance included in property and equipment | $ | — | $ | 1,128 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income | $ | 4,132 | $ | 5,887 | $ | 17,092 | $ | 15,070 | ||||||||
Weighted average shares outstanding - basic | 8,171,809 | 7,995,680 | 8,136,350 | 7,952,938 | ||||||||||||
Dilutive potential shares from unvested restricted shares | 248,940 | 184,276 | 214,576 | 259,530 | ||||||||||||
Weighted average shares outstanding - diluted | 8,420,749 | 8,179,956 | 8,350,926 | 8,212,468 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.51 | $ | 0.74 | $ | 2.10 | $ | 1.89 | ||||||||
Diluted | $ | 0.49 | $ | 0.72 | $ | 2.05 | $ | 1.84 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Market Value | |||||||||||||
September 30, 2017: | ||||||||||||||||
U.S. Government and Government agency obligations | $ | 26,093 | $ | 12 | $ | (14 | ) | $ | 26,091 | |||||||
Money market funds | 9,925 | — | — | 9,925 | ||||||||||||
Equity funds | 11,510 | 578 | (11 | ) | 12,077 | |||||||||||
$ | 47,528 | $ | 590 | $ | (25 | ) | $ | 48,093 | ||||||||
December 31, 2016: | ||||||||||||||||
U.S. Government and Government agency obligations | $ | 30,275 | $ | — | $ | (2 | ) | $ | 30,273 | |||||||
Money market funds | 14,127 | — | — | 14,127 | ||||||||||||
Equity funds | 12,057 | 204 | (176 | ) | 12,085 | |||||||||||
$ | 56,459 | $ | 204 | $ | (178 | ) | $ | 56,485 |
Level 1 | Level 2 | Level 3 | Investments Measured at NAV (1) | Total | ||||||||||||||||
As of September 30, 2017: | ||||||||||||||||||||
Investments in trading securities | $ | 45,836 | $ | — | $ | — | $ | 2,257 | $ | 48,093 | ||||||||||
Total financial instruments | $ | 45,836 | $ | — | $ | — | $ | 2,257 | $ | 48,093 | ||||||||||
As of December 31, 2016: | ||||||||||||||||||||
Investments in trading securities | $ | 53,319 | $ | — | $ | — | $ | 3,166 | $ | 56,485 | ||||||||||
Total financial instruments | $ | 53,319 | $ | — | $ | — | $ | 3,166 | $ | 56,485 | ||||||||||
(1) Comprised of certain investments measured at fair value using net asset value (“NAV”) as a practical expedient. These investments were recategorized and are no longer included within Level 2 of the valuation hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our consolidated balance sheets. |
As of September 30, 2017 | As of December 31, 2016 | |||||||
Foreign currency translation adjustment | $ | (1,849 | ) | $ | (4,287 | ) | ||
Accumulated other comprehensive loss | $ | (1,849 | ) | $ | (4,287 | ) |
As of September 30, 2017 | ||||||||||||
Assets Under Management | Corporate Investment | Amount at Risk | ||||||||||
VIEs/VOEs: | ||||||||||||
Westwood Funds® | $ | 4,144 | $ | 6 | $ | 6 | ||||||
Common Trust Funds | 2,602 | 2 | 2 | |||||||||
LLCs | 113 | — | — | |||||||||
UCITS Fund | 595 | 2 | 2 | |||||||||
All other assets: | ||||||||||||
Private Wealth | 3,107 | |||||||||||
Institutional | 13,063 | |||||||||||
Total Assets Under Management | $ | 23,624 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Advisory Fees: | |||||||||||||||||||||||
Institutional | $ | 8,858 | $ | 7,900 | |||||||||||||||||||
Mutual Funds | 3,414 | 3,071 | |||||||||||||||||||||
Wealth Management | 137 | 131 | |||||||||||||||||||||
Trust Fees | 6,065 | 5,951 | |||||||||||||||||||||
Other, net | (155) | (384) | |||||||||||||||||||||
Total revenues | $ | 18,319 | $ | 16,669 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Service condition stock-based compensation expense | $ | 2,591 | $ | 2,679 | $ | 7,828 | $ | 7,978 | ||||||||
Performance condition stock-based compensation expense | 1,454 | 1,234 | 3,949 | 3,705 | ||||||||||||
Stock-based compensation expense under the Plan | 4,045 | 3,913 | 11,777 | 11,683 | ||||||||||||
Canadian Plan stock-based compensation expense | 188 | 169 | 521 | 481 | ||||||||||||
Total stock-based compensation expense | $ | 4,233 | $ | 4,082 | $ | 12,298 | $ | 12,164 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Non-vested, January 1, 2017 | 607,501 | $ | 54.67 | ||||
Granted | 143,460 | 61.20 | |||||
Vested | (182,085 | ) | 57.43 | ||||
Forfeited | (36,579 | ) | 55.11 | ||||
Non-vested, September 30, 2017 | 532,297 | $ | 55.46 |
Shares | Weighted Average Grant Date Fair Value | ||||||
Non-vested, January 1, 2017 | 153,620 | $ | 55.90 | ||||
Granted | 157,877 | 54.86 | |||||
Vested | (102,367 | ) | 56.58 | ||||
Forfeited | (45,675 | ) | 55.86 | ||||
Non-vested, September 30, 2017 | 163,455 | $ | 55.87 |
Three Months Ended March 31, 2021 | Advisory | Trust | Performance-based | Other | Total | |||||||||||||||||||||||||||
Canada | $ | 276 | $ | 0 | $ | 0 | $ | 0 | $ | 276 | ||||||||||||||||||||||
Europe | 638 | 0 | 262 | 0 | 900 | |||||||||||||||||||||||||||
United States | 9,546 | 6,065 | 1,687 | (155) | 17,143 | |||||||||||||||||||||||||||
Total | $ | 10,460 | $ | 6,065 | $ | 1,949 | $ | (155) | $ | 18,319 |
Three Months Ended March 31, 2020 | Advisory | Trust | Performance-based | Other | Total | |||||||||||||||||||||||||||
Asia | $ | 417 | $ | 0 | $ | 0 | $ | 0 | $ | 417 | ||||||||||||||||||||||
Canada | 490 | 0 | 0 | 0 | 490 | |||||||||||||||||||||||||||
Europe | 1,009 | 0 | 0 | 0 | 1,009 | |||||||||||||||||||||||||||
United States | 9,186 | 5,951 | 0 | (384) | 14,753 | |||||||||||||||||||||||||||
Total | $ | 11,102 | $ | 5,951 | $ | 0 | $ | (384) | $ | 16,669 |
Balance at January 1, 2017 | $ | 2,462 | ||
Additions for tax positions related to the current year | 68 | |||
Additions for tax positions related to prior years | — | |||
Reductions for tax positions related to prior years | (768 | ) | ||
Payments for tax positions related to prior years | (1,566 | ) | ||
Balance at September 30, 2017 | $ | 196 |
(in thousands) | Advisory | Trust | Westwood Holdings | Eliminations | Consolidated | |||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||
Net fee revenues from external sources | $ | 12,409 | $ | 6,065 | $ | 0 | $ | 0 | $ | 18,474 | ||||||||||||||||||||||
Net intersegment revenues | 676 | 81 | 0 | (757) | 0 | |||||||||||||||||||||||||||
Other, net | (155) | 0 | 0 | 0 | (155) | |||||||||||||||||||||||||||
Total revenues | $ | 12,930 | $ | 6,146 | $ | 0 | $ | (757) | $ | 18,319 | ||||||||||||||||||||||
Segment assets | $ | 207,193 | $ | 54,143 | $ | 12,603 | $ | (124,275) | $ | 149,664 | ||||||||||||||||||||||
Segment goodwill | $ | 0 | $ | 16,401 | $ | 0 | $ | 0 | $ | 16,401 | ||||||||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||
Net fee revenues from external sources | $ | 11,102 | $ | 5,951 | $ | 0 | $ | 0 | $ | 17,053 | ||||||||||||||||||||||
Net intersegment revenues | 624 | 50 | 0 | (674) | 0 | |||||||||||||||||||||||||||
Net interest and dividend revenue | 20 | 0 | 0 | 0 | 20 | |||||||||||||||||||||||||||
Other, net | (404) | 0 | 0 | 0 | (404) | |||||||||||||||||||||||||||
Total revenues | $ | 11,342 | $ | 6,001 | $ | 0 | $ | (674) | $ | 16,669 | ||||||||||||||||||||||
Segment assets | $ | 236,817 | $ | 49,606 | $ | 21,962 | $ | (150,583) | $ | 157,802 | ||||||||||||||||||||||
Segment goodwill | $ | 3,403 | $ | 16,401 | $ | 0 | $ | 0 | $ | 19,804 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||
March 31, 2021: | ||||||||||||||||||||||||||
U.S. Government and Government agency obligations | $ | 59,722 | $ | 0 | $ | (298) | $ | 59,424 | ||||||||||||||||||
Money market funds | 12,552 | 0 | 0 | 12,552 | ||||||||||||||||||||||
Equity funds | 95 | 0 | 0 | 95 | ||||||||||||||||||||||
Equities | 307 | 114 | 0 | 421 | ||||||||||||||||||||||
Exchange-traded bond funds | 1,394 | 0 | (6) | 1,388 | ||||||||||||||||||||||
Total trading securities | 74,070 | 114 | (304) | 73,880 | ||||||||||||||||||||||
Private investment fund | 265 | 0 | (156) | 109 | ||||||||||||||||||||||
Private equity | 3,420 | 452 | 0 | 3,872 | ||||||||||||||||||||||
Total investments carried at fair value | $ | 77,755 | $ | 566 | $ | (460) | $ | 77,861 | ||||||||||||||||||
December 31, 2020: | ||||||||||||||||||||||||||
U.S. Government and Government agency obligations | $ | 65,132 | $ | 2 | $ | (180) | $ | 64,954 | ||||||||||||||||||
Money market funds | 4,003 | 0 | 0 | 4,003 | ||||||||||||||||||||||
Equity funds | 90 | 0 | (5) | 85 | ||||||||||||||||||||||
Equities | 288 | 94 | 0 | 382 | ||||||||||||||||||||||
Exchange-traded bond funds | 115 | 3 | 0 | 118 | ||||||||||||||||||||||
Total trading securities | 69,628 | 99 | (185) | 69,542 | ||||||||||||||||||||||
Private investment fund | 250 | 0 | (154) | 96 | ||||||||||||||||||||||
Private equity | 3,420 | 11 | 0 | 3,431 | ||||||||||||||||||||||
Total investments carried at fair value | $ | 73,298 | $ | 110 | $ | (339) | $ | 73,069 |
(in thousands) | Advisory | Trust | Westwood Holdings | Eliminations | Consolidated | |||||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||||||
Net fee revenues from external sources | $ | 25,334 | $ | 7,858 | $ | — | $ | — | $ | 33,192 | ||||||||||
Net intersegment revenues | 2,026 | 57 | — | (2,083 | ) | — | ||||||||||||||
Net interest and dividend revenue | 111 | 43 | — | — | 154 | |||||||||||||||
Other, net | 157 | (11 | ) | — | — | 146 | ||||||||||||||
Total revenues | $ | 27,628 | $ | 7,947 | $ | — | $ | (2,083 | ) | $ | 33,492 | |||||||||
Economic Earnings | $ | 8,786 | $ | 1,560 | $ | (1,356 | ) | $ | — | $ | 8,990 | |||||||||
Less: Restricted stock expense | 4,233 | |||||||||||||||||||
Intangible amortization | 469 | |||||||||||||||||||
Deferred taxes on goodwill | 156 | |||||||||||||||||||
Net income | $ | 4,132 | ||||||||||||||||||
Segment assets | $ | 208,444 | $ | 73,170 | $ | 18,388 | $ | (108,640 | ) | $ | 191,362 | |||||||||
Segment goodwill | $ | 5,219 | $ | 21,925 | $ | — | $ | — | $ | 27,144 | ||||||||||
Three Months Ended September 30, 2016 | ||||||||||||||||||||
Net fee revenues from external sources | $ | 23,673 | $ | 7,690 | $ | — | $ | — | $ | 31,363 | ||||||||||
Net intersegment revenues | 5,275 | 41 | — | (5,316 | ) | — | ||||||||||||||
Net interest and dividend revenue | 128 | 5 | — | — | 133 | |||||||||||||||
Other, net | 279 | 2 | — | — | 281 | |||||||||||||||
Total revenues | $ | 29,355 | $ | 7,738 | $ | — | $ | (5,316 | ) | $ | 31,777 | |||||||||
Economic Earnings | $ | 10,270 | $ | 1,690 | $ | (1,345 | ) | $ | — | $ | 10,615 | |||||||||
Less: Restricted stock expense | 4,082 | |||||||||||||||||||
Intangible amortization | 490 | |||||||||||||||||||
Deferred taxes on goodwill | 156 | |||||||||||||||||||
Net income | $ | 5,887 | ||||||||||||||||||
Segment assets | $ | 163,826 | $ | 65,986 | $ | 13,046 | $ | (73,160 | ) | $ | 169,698 | |||||||||
Segment goodwill | $ | 5,219 | $ | 21,925 | $ | — | $ | — | $ | 27,144 |
Level 1 | Level 2 | Level 3 | Investments Measured at NAV (1) | Total | |||||||||||||||||||||||||
As of March 31, 2021: | |||||||||||||||||||||||||||||
Investments in trading securities | $ | 73,880 | $ | 0 | $ | 0 | $ | 0 | $ | 73,880 | |||||||||||||||||||
Private investment fund | 0 | 0 | 0 | 109 | 109 | ||||||||||||||||||||||||
Private equity | 0 | 0 | 3,872 | 0 | 3,872 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | 73,880 | $ | 0 | $ | 3,872 | $ | 109 | $ | 77,861 | |||||||||||||||||||
As of December 31, 2020: | |||||||||||||||||||||||||||||
Investments in trading securities | $ | 69,542 | $ | 0 | $ | 0 | $ | 0 | $ | 69,542 | |||||||||||||||||||
Private investment fund | 0 | 0 | 0 | 96 | 96 | ||||||||||||||||||||||||
Private equity | 0 | 0 | 3,431 | 0 | 3,431 | ||||||||||||||||||||||||
Total assets measured at fair value | $ | 69,542 | $ | 0 | $ | 3,431 | $ | 96 | $ | 73,069 | |||||||||||||||||||
(1) Comprised of certain investments measured at fair value using net asset value ("NAV") as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets. |
Fair Value using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Beginning balance | $ | 3,431 | $ | 3,975 | |||||||||||||||||||
Unrealized gains (losses) on private investments | 441 | (995) | |||||||||||||||||||||
Ending balance | $ | 3,872 | $ | 2,980 |
(in thousands) | Advisory | Trust | Westwood Holdings | Eliminations | Consolidated | |||||||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Net fee revenues from external sources | $ | 75,036 | $ | 23,570 | $ | — | $ | — | $ | 98,606 | ||||||||||
Net intersegment revenues | 6,050 | 160 | — | (6,210 | ) | — | ||||||||||||||
Net interest and dividend revenue | 391 | 67 | — | — | 458 | |||||||||||||||
Other, net | 811 | (4 | ) | — | — | 807 | ||||||||||||||
Total revenues | $ | 82,288 | $ | 23,793 | $ | — | $ | (6,210 | ) | $ | 99,871 | |||||||||
Economic Earnings | $ | 31,372 | $ | 4,528 | $ | (4,592 | ) | $ | — | $ | 31,308 | |||||||||
Less: Restricted stock expense | 12,298 | |||||||||||||||||||
Intangible amortization | 1,449 | |||||||||||||||||||
Deferred taxes on goodwill | 469 | |||||||||||||||||||
Net income | $ | 17,092 | ||||||||||||||||||
Nine Months Ended September 30, 2016 | ||||||||||||||||||||
Net fee revenues from external sources | $ | 68,563 | $ | 22,798 | $ | — | $ | — | $ | 91,361 | ||||||||||
Net intersegment revenues | 14,455 | 82 | — | (14,537 | ) | — | ||||||||||||||
Net interest and dividend revenue | 360 | 9 | — | — | 369 | |||||||||||||||
Other, net | 462 | (263 | ) | — | — | 199 | ||||||||||||||
Total revenues | $ | 83,840 | $ | 22,626 | $ | — | $ | (14,537 | ) | $ | 91,929 | |||||||||
Economic Earnings | $ | 30,493 | $ | 4,160 | $ | (5,559 | ) | $ | — | $ | 29,094 | |||||||||
Less: Restricted stock expense | 12,164 | |||||||||||||||||||
Intangible amortization | 1,470 | |||||||||||||||||||
Deferred taxes on goodwill | 390 | |||||||||||||||||||
Net income | $ | 15,070 |
Three Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Net income | $ | 4,132 | $ | 5,887 | ||||
Add: Stock-based compensation expense | 4,233 | 4,082 | ||||||
Add: Intangible amortization | 469 | 490 | ||||||
Add: Tax benefit from goodwill amortization | 156 | 156 | ||||||
Economic Earnings | $ | 8,990 | $ | 10,615 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net income | $ | 4,101 | $ | 1,102 | |||||||||||||||||||
Weighted average shares outstanding - basic | 7,887,044 | 8,414,393 | |||||||||||||||||||||
Dilutive potential shares from unvested restricted shares | 30,346 | 44,080 | |||||||||||||||||||||
Weighted average shares outstanding - diluted | 7,917,390 | 8,458,473 | |||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.52 | $ | 0.13 | |||||||||||||||||||
Diluted | $ | 0.52 | $ | 0.13 |
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Net Income | $ | 17,092 | $ | 15,070 | ||||
Add: Stock-based compensation expense | 12,298 | 12,164 | ||||||
Add: Intangible amortization | 1,449 | 1,470 | ||||||
Add: Tax benefit from goodwill amortization | 469 | 390 | ||||||
Economic Earnings | $ | 31,308 | $ | 29,094 |
Three Months Ended | |||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||||||||
Fee Revenues | $ | 4.9 | $ | 5.7 |
As of March 31, 2021 | ||||||||||||||||||||
Assets Under Management | Corporate Investment | Amount at Risk | ||||||||||||||||||
VIEs/VOEs: | ||||||||||||||||||||
Westwood Funds® | $ | 2,564 | $ | 0 | $ | 0 | ||||||||||||||
Common Trust Funds | 1,014 | 0 | 0 | |||||||||||||||||
Private Funds | 4 | 0.1 | 0.1 | |||||||||||||||||
Private Equity | 0 | 8.3 | 8.3 | |||||||||||||||||
All other assets: | ||||||||||||||||||||
Wealth Management | 3,342 | |||||||||||||||||||
Institutional | 7,569 | |||||||||||||||||||
Total Assets Under Management | $ | 14,493 |
As of March 31, | ||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Institutional(1) | $ | 7,569 | $ | 6,335 | 19 | % | ||||||||||||||
Wealth Management(2) | 4,360 | 3,765 | 16 | |||||||||||||||||
Mutual Funds(3) | 2,564 | 1,500 | 71 | |||||||||||||||||
Total AUM(4) | $ | 14,493 | $ | 11,600 | 25 | % |
% Change | |||||||||||
September 30, 2017 | |||||||||||
As of September 30, | vs. | ||||||||||
2017 | 2016 | September 30, 2016 | |||||||||
(in millions) | |||||||||||
Institutional | $ | 13,658 | $ | 12,192 | 12 | % | |||||
Private Wealth | 5,822 | 5,327 | 9 | ||||||||
Mutual Funds | 4,144 | 3,753 | 10 | ||||||||
Total Assets Under Management(1) | $ | 23,624 | $ | 21,272 | 11 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in millions) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Institutional | ||||||||||||||||
Beginning of period assets | $ | 12,773 | $ | 11,921 | $ | 11,911 | $ | 11,752 | ||||||||
Inflows(1) | 1,113 | 420 | 2,173 | 1,133 | ||||||||||||
Outflows | (659 | ) | (606 | ) | (1,954 | ) | (1,902 | ) | ||||||||
Net flows | 454 | (186 | ) | 219 | (769 | ) | ||||||||||
Market appreciation | 431 | 457 | 1,528 | 1,209 | ||||||||||||
Net change | 885 | 271 | 1,747 | 440 | ||||||||||||
End of period assets | $ | 13,658 | $ | 12,192 | $ | 13,658 | $ | 12,192 | ||||||||
Private Wealth | ||||||||||||||||
Beginning of period assets | $ | 5,685 | $ | 5,361 | $ | 5,520 | $ | 5,393 | ||||||||
Inflows | 194 | 104 | 509 | 274 | ||||||||||||
Outflows | (216 | ) | (245 | ) | (710 | ) | (626 | ) | ||||||||
Net flows | (22 | ) | (141 | ) | (201 | ) | (352 | ) | ||||||||
Market appreciation | 159 | 107 | 503 | 286 | ||||||||||||
Net change | 137 | (34 | ) | 302 | (66 | ) | ||||||||||
End of period assets | $ | 5,822 | $ | 5,327 | $ | 5,822 | $ | 5,327 | ||||||||
Mutual Funds | ||||||||||||||||
Beginning of period assets | $ | 4,092 | $ | 3,690 | $ | 3,810 | $ | 3,617 | ||||||||
Inflows | 293 | 214 | 792 | 674 | ||||||||||||
Outflows | (334 | ) | (224 | ) | (803 | ) | (798 | ) | ||||||||
Net flows | (41 | ) | (10 | ) | (11 | ) | (124 | ) | ||||||||
Market appreciation | 93 | 73 | 345 | 260 | ||||||||||||
Net change | 52 | 63 | 334 | 136 | ||||||||||||
End of period assets | $ | 4,144 | $ | 3,753 | $ | 4,144 | $ | 3,753 | ||||||||
Total | ||||||||||||||||
Beginning of period assets | $ | 22,550 | $ | 20,972 | $ | 21,241 | $ | 20,762 | ||||||||
Inflows | 1,600 | 738 | 3,474 | 2,081 | ||||||||||||
Outflows | (1,209 | ) | (1,075 | ) | (3,467 | ) | (3,326 | ) | ||||||||
Net flows | 391 | (337 | ) | 7 | (1,245 | ) | ||||||||||
Market appreciation | 683 | 637 | 2,376 | 1,755 | ||||||||||||
Net change | 1,074 | 300 | 2,383 | 510 | ||||||||||||
End of period assets | $ | 23,624 | $ | 21,272 | $ | 23,624 | $ | 21,272 |
Three Months Ended March 31, | |||||||||||||||||||||||
(in millions) | 2021 | 2020 | |||||||||||||||||||||
Institutional | |||||||||||||||||||||||
Beginning of period assets | $ | 6,567 | $ | 8,739 | |||||||||||||||||||
Inflows | 732 | 313 | |||||||||||||||||||||
Outflows | (219) | (731) | |||||||||||||||||||||
Net client flows | 513 | (418) | |||||||||||||||||||||
Market appreciation (depreciation) | 489 | (1,986) | |||||||||||||||||||||
Net change | 1,002 | (2,404) | |||||||||||||||||||||
End of period assets | $ | 7,569 | $ | 6,335 | |||||||||||||||||||
Wealth Management | |||||||||||||||||||||||
Beginning of period assets | $ | 4,335 | $ | 4,438 | |||||||||||||||||||
Inflows | 60 | 73 | |||||||||||||||||||||
Outflows | (207) | (127) | |||||||||||||||||||||
Net client flows | (147) | (54) | |||||||||||||||||||||
Market appreciation (depreciation) | 172 | (619) | |||||||||||||||||||||
Net change | 25 | (673) | |||||||||||||||||||||
End of period assets | $ | 4,360 | $ | 3,765 | |||||||||||||||||||
Mutual Funds | |||||||||||||||||||||||
Beginning of period assets | $ | 2,143 | $ | 2,058 | |||||||||||||||||||
Inflows | 438 | 174 | |||||||||||||||||||||
Outflows | (209) | (310) | |||||||||||||||||||||
Net client flows | 229 | (136) | |||||||||||||||||||||
Market appreciation (depreciation) | 192 | (422) | |||||||||||||||||||||
Net change | 421 | (558) | |||||||||||||||||||||
End of period assets | $ | 2,564 | $ | 1,500 | |||||||||||||||||||
Total AUM | |||||||||||||||||||||||
Beginning of period assets | $ | 13,045 | $ | 15,235 | |||||||||||||||||||
Inflows | 1,230 | 560 | |||||||||||||||||||||
Outflows | (635) | (1,168) | |||||||||||||||||||||
Net client flows | 595 | (608) | |||||||||||||||||||||
Market appreciation (depreciation) | 853 | (3,027) | |||||||||||||||||||||
Net change | 1,448 | (3,635) | |||||||||||||||||||||
End of period assets | $ | 14,493 | $ | 11,600 |
% Change | % Change | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | September 30, 2017 | September 30, 2017 | |||||||||||||||||||
September 30, | September 30, | vs. | vs. | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | September 30, 2016 | September 30, 2016 | |||||||||||||||||
Revenues: | ||||||||||||||||||||||
Advisory fees: asset-based | $ | 25,334 | $ | 23,447 | $ | 73,619 | $ | 67,928 | 8 | % | 8 | % | ||||||||||
Advisory fees: performance-based | — | 226 | 1,417 | 635 | (100 | ) | 123 | |||||||||||||||
Trust fees | 7,858 | 7,690 | 23,570 | 22,798 | 2 | 3 | ||||||||||||||||
Other revenues | 300 | 414 | 1,265 | 568 | NM | NM | ||||||||||||||||
Total revenues | 33,492 | 31,777 | 99,871 | 91,929 | 5 | 9 | ||||||||||||||||
Expenses: | ||||||||||||||||||||||
Employee compensation and benefits | 15,601 | 15,637 | 48,875 | 47,239 | — | 3 | ||||||||||||||||
Sales and marketing | 457 | 408 | 1,447 | 1,423 | 12 | 2 | ||||||||||||||||
Westwood mutual funds | 977 | 755 | 2,749 | 2,282 | 29 | 20 | ||||||||||||||||
Information technology | 1,855 | 1,874 | 5,494 | 6,039 | (1 | ) | (9 | ) | ||||||||||||||
Professional services | 1,681 | 1,903 | 4,495 | 4,707 | (12 | ) | (5 | ) | ||||||||||||||
Legal settlement | 4,009 | — | 4,009 | — | 100 | 100 | ||||||||||||||||
General and administrative | 3,160 | 2,147 | 8,697 | 7,028 | 47 | 24 | ||||||||||||||||
Total expenses | 27,740 | 22,724 | 75,766 | 68,718 | 22 | 10 | ||||||||||||||||
Income before income taxes | 5,752 | 9,053 | 24,105 | 23,211 | (36 | ) | 4 | |||||||||||||||
Provision for income taxes | 1,620 | 3,166 | 7,013 | 8,141 | (49 | ) | (14 | ) | ||||||||||||||
Net income | $ | 4,132 | $ | 5,887 | $ | 17,092 | $ | 15,070 | (30 | )% | 13 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | |||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Advisory fees: asset-based | $ | 10,450 | $ | 11,102 | (6) | % | |||||||||||||||||||||||||||||
Advisory fees: performance-based | 1,959 | — | NM | ||||||||||||||||||||||||||||||||
Trust fees: asset-based | 6,065 | 5,951 | 2 | ||||||||||||||||||||||||||||||||
Other, net | (155) | (384) | (60) | ||||||||||||||||||||||||||||||||
Total revenues | 18,319 | 16,669 | 10 | ||||||||||||||||||||||||||||||||
Expenses: | |||||||||||||||||||||||||||||||||||
Employee compensation and benefits | 11,548 | 12,668 | (9) | ||||||||||||||||||||||||||||||||
Sales and marketing | 230 | 478 | (52) | ||||||||||||||||||||||||||||||||
Westwood mutual funds | 391 | 515 | (24) | ||||||||||||||||||||||||||||||||
Information technology | 1,992 | 2,031 | (2) | ||||||||||||||||||||||||||||||||
Professional services | 1,317 | 1,193 | 10 | ||||||||||||||||||||||||||||||||
General and administrative | 2,072 | 2,306 | (10) | ||||||||||||||||||||||||||||||||
Gain on foreign currency transactions | — | (2,938) | (100) | ||||||||||||||||||||||||||||||||
Total expenses | 17,550 | 16,253 | 8 | ||||||||||||||||||||||||||||||||
Net operating income | 769 | 416 | |||||||||||||||||||||||||||||||||
Realized gains on private investments | 8,325 | — | NM | ||||||||||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on private investments | (2,326) | (995) | 1 | ||||||||||||||||||||||||||||||||
Investment income | 196 | 544 | -1 | ||||||||||||||||||||||||||||||||
Other income | 50 | 34 | 47 | ||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 7,014 | (1) | |||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 2,913 | (1,103) | (364) | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | 4,101 | $ | 1,102 | 272 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Net income | $ | 4,101 | $ | 1,102 | 272 | % | |||||||||||||||||||||||||||||
Add: Stock-based compensation expense | 1,722 | 2,616 | (34) | ||||||||||||||||||||||||||||||||
Add: Intangible amortization | 406 | 423 | (4) | ||||||||||||||||||||||||||||||||
Add: Tax benefit from goodwill amortization | 59 | 59 | — | ||||||||||||||||||||||||||||||||
Economic Earnings | $ | 6,288 | $ | 4,200 | 50 | % | |||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 7,917,390 | 8,458,473 | |||||||||||||||||||||||||||||||||
Economic Earnings per share | $ | 0.79 | $ | 0.50 | |||||||||||||||||||||||||||||||
Economic Earnings by Segment: | |||||||||||||||||||||||||||||||||||
Advisory | $ | 6,550 | $ | 4,293 | 53 | % | |||||||||||||||||||||||||||||
Trust | 2,984 | 992 | 201 | ||||||||||||||||||||||||||||||||
Westwood Holdings | (3,246) | (1,085) | 199 | ||||||||||||||||||||||||||||||||
Consolidated | $ | 6,288 | $ | 4,200 | 50 | % |
Three Months Ended September 30, | % Change | ||||||||||
2017 | 2016 | ||||||||||
Net income | $ | 4,132 | $ | 5,887 | (30 | )% | |||||
Add: Stock-based compensation expense | 4,233 | 4,082 | 4 | ||||||||
Add: Intangible amortization | 469 | 490 | (4 | ) | |||||||
Add: Tax benefit from goodwill amortization | 156 | 156 | — | ||||||||
Economic Earnings | $ | 8,990 | $ | 10,615 | (15 | )% | |||||
Diluted weighted average shares outstanding | 8,420,749 | 8,179,956 | |||||||||
Economic Earnings per share | $ | 1.07 | $ | 1.30 |
Nine Months Ended September 30, | % Change | ||||||||||
2017 | 2016 | ||||||||||
Net Income | $ | 17,092 | $ | 15,070 | 13 | % | |||||
Add: Stock-based compensation expense | 12,298 | 12,164 | 1 | ||||||||
Add: Intangible amortization | 1,449 | 1,470 | (1 | ) | |||||||
Add: Tax benefit from goodwill amortization | 469 | 390 | 20 | ||||||||
Economic Earnings | $ | 31,308 | $ | 29,094 | 8 | % | |||||
Diluted weighted average shares outstanding | 8,350,926 | 8,212,468 | |||||||||
Economic Earnings per share | $ | 3.75 | $ | 3.54 |
ITEM |
Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (1) | ||||||||||||||||||||||||||
Repurchase program (1) | $ | 10,000,000 | |||||||||||||||||||||||||||
March 2021 | 92,491 | $ | 15.19 | 92,491 | |||||||||||||||||||||||||
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares that may yet be purchased under the plans or programs (1) | ||||||||||
Repurchase program (1) | — | $ | — | — | $ | 9,366,000 | ||||||||
Canadian Plan (2) | — | $ | — | — | CDN | $ | 4,296,000 | |||||||
Employee transactions (3) | ||||||||||||||
July 1-31, 2017 | 713 | $ | 59.97 | — | — |
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
The following financial information from Westwood Holdings Group, Inc.'s Quarterly Report on Form 10-Q for the period ended March 31, 2021, formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020; (ii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2021 and 2020; (iii) Condensed Consolidated Statements of Stockholders' Equity; (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020; and (v) Notes to the Condensed Consolidated Financial Statements. |
Cover Page Interactive Data File (formatted as iXBRL and contained in Exhibit 101) | ||||||||
Dated: | April 28, 2021 | WESTWOOD HOLDINGS GROUP, INC. | ||||||||||||
By: | ||||||||||||||
/s/ Brian O. Casey | ||||||||||||||
Brian O. Casey | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
By: | /s/ | |||||||||||||
Chief Financial Officer and Treasurer |