Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 25, 2014 | Jun. 30, 2013 | |
Document - Document and Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'WESTWOOD HOLDINGS GROUP INC | ' | ' |
Entity Central Index Key | '0001165002 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $308,961,000 |
Entity Common Stock, Shares Outstanding | ' | 8,262,430 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $10,864 | $3,817 |
Accounts receivable | 14,468 | 8,920 |
Investments, at fair value | 64,554 | 59,906 |
Deferred income taxes | 3,782 | 3,362 |
Other current assets | 2,521 | 1,365 |
Total current assets | 96,189 | 77,370 |
Goodwill | 11,255 | 11,255 |
Deferred income taxes | 2,041 | 1,696 |
Intangible assets, net | 3,789 | 4,149 |
Property and equipment, net of accumulated depreciation of $2,155 and $1,747 | 2,746 | 2,145 |
Total assets | 116,020 | 96,615 |
Current Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 2,082 | 1,650 |
Dividends payable | 3,935 | 1,201 |
Compensation and benefits payable | 17,805 | 14,537 |
Income taxes payable | 1,031 | 1,438 |
Total current liabilities | 24,853 | 18,826 |
Accrued dividends | 1,266 | ' |
Deferred rent | 1,268 | 1,238 |
Total long-term liabilities | 2,534 | 1,238 |
Total liabilities | 27,387 | 20,064 |
Commitments and contingencies (Note 14) | ' | ' |
Stockholders’ Equity: | ' | ' |
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 8,778,613 and outstanding 8,176,417 shares at December 31, 2013; issued 8,526,598 and outstanding 8,031,045 shares at December 31, 2012 | 88 | 85 |
Additional paid-in capital | 100,955 | 88,483 |
Treasury stock, at cost – 602,196 shares at December 31, 2013; 495,553 shares at December 31, 2012 | -23,169 | -18,502 |
Accumulated other comprehensive (loss) income | -257 | 30 |
Retained earnings | 11,016 | 6,455 |
Total stockholders’ equity | 88,633 | 76,551 |
Total liabilities and stockholders’ equity | $116,020 | $96,615 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement - Consolidated Balance Sheets (Parenthetical) [Line Items] | ' | ' |
Property and equipment, accumulated depreciation | $2,155 | $1,747 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 8,778,613 | 8,526,598 |
Common stock, shares outstanding | 8,176,417 | 8,031,045 |
Treasury stock, shares | 602,196 | 495,553 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Advisory fees | ' | ' | ' |
Asset-based | $70,027 | $57,936 | $54,246 |
Performance-based | 2,561 | 1,251 | 991 |
Trust fees | 18,367 | 14,969 | 13,453 |
Other revenues, net | 870 | 3,339 | 219 |
Total revenues | 91,825 | 77,495 | 68,909 |
EXPENSES: | ' | ' | ' |
Employee compensation and benefits | 47,780 | 43,692 | 35,081 |
Sales and marketing | 1,252 | 1,132 | 994 |
Westwood mutual funds | 2,153 | 1,153 | 790 |
Information technology | 2,882 | 2,555 | 2,054 |
Professional services | 4,223 | 4,420 | 2,981 |
General and administrative | 5,266 | 4,517 | 3,900 |
Total expenses | 63,556 | 57,469 | 45,800 |
Income before income taxes | 28,269 | 20,026 | 23,109 |
Provision for income taxes | 10,378 | 7,936 | 8,423 |
Net income | 17,891 | 12,090 | 14,686 |
Available-for-sale investments: | ' | ' | ' |
Change in unrealized gain on investment securities | ' | -40 | 1,014 |
Less: reclassification adjustment for net gains included in earnings | ' | -1,900 | ' |
Net change (net of income taxes of $0, (1,058) and $560, respectively) | ' | -1,940 | 1,014 |
Foreign currency translation adjustments | -287 | 30 | ' |
Other comprehensive income (loss) | -287 | -1,910 | 1,014 |
Total comprehensive income | $17,604 | $10,180 | $15,700 |
Earnings per share: | ' | ' | ' |
Basic | $2.44 | $1.69 | $2.11 |
Diluted | $2.34 | $1.65 | $2.04 |
Weighted average shares outstanding: | ' | ' | ' |
Basic | 7,331,874 | 7,145,701 | 6,970,382 |
Diluted | 7,643,051 | 7,338,104 | 7,208,515 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement - Consolidated Statements of Comprehensive Income (Parenthetical) [Line Items] | ' | ' | ' |
Net change, income taxes | $0 | ($1,058) | $560 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Westwood Holdings Group, Inc. Common Stock, Par | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
BALANCE at Dec. 31, 2010 | $60,677,000 | $79,000 | $65,639,000 | ($8,749,000) | $926,000 | $2,782,000 |
BALANCE, shares at Dec. 31, 2010 | ' | 7,645,678 | ' | ' | ' | ' |
Net income | 14,686,000 | ' | ' | ' | ' | 14,686,000 |
Other comprehensive income | 1,014,000 | ' | ' | ' | 1,014,000 | ' |
Issuance of restricted stock, net of forfeitures | ' | 2,000 | -2,000 | ' | ' | ' |
Issuance of restricted stock, net of forfeitures, shares | ' | 207,995 | ' | ' | ' | ' |
Amortization of stock compensation | 9,969,000 | ' | 9,969,000 | ' | ' | ' |
Tax benefit related to equity compensation | 1,077,000 | ' | 1,077,000 | ' | ' | ' |
Dividends declared ($1.64 per share in 2013, $1.51 per share in 2012, $1.42 per share in 2011) | -10,995,000 | ' | ' | ' | ' | -10,995,000 |
Stock options exercised | 286,000 | ' | 286,000 | ' | ' | ' |
Stock options exercised, shares | ' | 22,150 | ' | ' | ' | ' |
Purchases of treasury stock | -5,957,000 | ' | ' | -5,957,000 | ' | ' |
Purchases of treasury stock, shares | ' | -168,634 | ' | ' | ' | ' |
BALANCE at Dec. 31, 2011 | 70,757,000 | 81,000 | 76,969,000 | -14,706,000 | 1,940,000 | 6,473,000 |
BALANCE, shares at Dec. 31, 2011 | ' | 7,707,189 | ' | ' | ' | ' |
Net income | 12,090,000 | ' | ' | ' | ' | 12,090,000 |
Other comprehensive income | -1,910,000 | ' | ' | ' | -1,910,000 | ' |
Issuance of restricted stock, net of forfeitures | ' | 4,000 | -4,000 | ' | ' | ' |
Issuance of restricted stock, net of forfeitures, shares | ' | 405,330 | ' | ' | ' | ' |
Amortization of stock compensation | 10,515,000 | ' | 10,515,000 | ' | ' | ' |
Tax benefit related to equity compensation | 793,000 | ' | 793,000 | ' | ' | ' |
Dividends declared ($1.64 per share in 2013, $1.51 per share in 2012, $1.42 per share in 2011) | -12,108,000 | ' | ' | ' | ' | -12,108,000 |
Stock options exercised | 210,000 | ' | 210,000 | ' | ' | ' |
Stock options exercised, shares | ' | 16,250 | ' | ' | ' | ' |
Purchases of treasury stock | -3,796,000 | ' | ' | -3,796,000 | ' | ' |
Purchases of treasury stock, shares | ' | -97,724 | ' | ' | ' | ' |
BALANCE at Dec. 31, 2012 | 76,551,000 | 85,000 | 88,483,000 | -18,502,000 | 30,000 | 6,455,000 |
BALANCE, shares at Dec. 31, 2012 | 8,031,045 | 8,031,045 | ' | ' | ' | ' |
Net income | 17,891,000 | ' | ' | ' | ' | 17,891,000 |
Other comprehensive income | -287,000 | ' | ' | ' | -287,000 | ' |
Issuance of restricted stock, net of forfeitures | ' | 3,000 | -3,000 | ' | ' | ' |
Issuance of restricted stock, net of forfeitures, shares | ' | 405,330 | ' | ' | ' | ' |
Amortization of stock compensation | 11,595,000 | ' | 11,595,000 | ' | ' | ' |
Tax benefit related to equity compensation | 760,000 | ' | 760,000 | ' | ' | ' |
Dividends declared ($1.64 per share in 2013, $1.51 per share in 2012, $1.42 per share in 2011) | -13,330,000 | ' | ' | ' | ' | -13,330,000 |
Stock options exercised, shares | ' | 16,250 | ' | ' | ' | ' |
Purchases of treasury stock | -4,667,000 | ' | ' | -4,667,000 | ' | ' |
Purchases of treasury stock, shares | ' | -97,724 | ' | ' | ' | ' |
Reclassification of compensation liability to be paid in shares | 120,000 | ' | 120,000 | ' | ' | ' |
BALANCE at Dec. 31, 2013 | $88,633,000 | $88,000 | $100,955,000 | ($23,169,000) | ($257,000) | $11,016,000 |
BALANCE, shares at Dec. 31, 2013 | 8,176,417 | 8,031,045 | ' | ' | ' | ' |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Dividends declared, per share | $1.64 | $1.51 | $1.42 |
Retained Earnings | ' | ' | ' |
Dividends declared, per share | $1.64 | $1.51 | $1.42 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $17,891 | $12,090 | $14,686 |
Adjustments to reconcile net income to net cash provided by operating activities, net of business combinations: | ' | ' | ' |
Depreciation | 410 | 349 | 264 |
Amortization of intangible assets | 359 | 472 | 498 |
Fair value adjustment of deferred acquisition liabilities | ' | ' | -31 |
Gain on sale of available for sale investment | ' | -1,900 | ' |
Unrealized losses (gains) on investments | 325 | -344 | 291 |
Loss on disposal of property | ' | 1 | 20 |
Stock based compensation | 11,595 | 10,515 | 9,969 |
Deferred income taxes | -907 | -1,817 | -93 |
Excess tax benefits from stock based compensation | -694 | -676 | -805 |
Net purchases of investments – trading securities | -4,993 | -7,692 | -10,285 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -5,702 | -1,208 | -359 |
Other current assets | -887 | 61 | -755 |
Accounts payable and accrued liabilities | 450 | -39 | 381 |
Compensation and benefits payable | 3,598 | 1,846 | 3,308 |
Income taxes payable and prepaid taxes | 160 | 2,147 | 989 |
Other liabilities | 102 | -25 | 470 |
Net cash provided by operating activities | 21,707 | 13,780 | 18,548 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Sales of available for sale investments | ' | 1,900 | ' |
Cash paid for business combination, net of cash acquired | ' | ' | -816 |
Purchases of property and equipment | -1,201 | -264 | -1,431 |
Sale of property and equipment | ' | ' | 3 |
Net cash (used in) provided by investing activities | -1,201 | 1,636 | -2,244 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Purchases of treasury stock | -4,667 | -3,796 | -5,957 |
Excess tax benefits from stock based compensation | 694 | 676 | 805 |
Proceeds from exercise of stock options | ' | 210 | 286 |
Cash dividends | -9,330 | -13,981 | -7,918 |
Net cash used in financing activities | -13,303 | -16,891 | -12,784 |
Effect of currency rate changes on cash | -156 | 28 | ' |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,047 | -1,447 | 3,520 |
Cash and cash equivalents, beginning of year | 3,817 | 5,264 | 1,744 |
Cash and cash equivalents, end of year | 10,864 | 3,817 | 5,264 |
Supplemental cash flow information: | ' | ' | ' |
Cash paid during the year for income taxes | $11,031 | $7,600 | $7,502 |
Description_of_the_Business
Description of the Business | 12 Months Ended |
Dec. 31, 2013 | |
Description of the Business | ' |
1. DESCRIPTION OF THE BUSINESS: | |
Westwood Holdings Group, Inc. (“Westwood”, “we”, “us” or “our”) was incorporated under the laws of the State of Delaware on December 12, 2001. Westwood manages investment assets and provides services for its clients through its subsidiaries, Westwood Management Corp. (“Westwood Management”), Westwood Trust (“Westwood Trust”) and Westwood International Advisors Inc. (“Westwood International”). Westwood Management provides investment advisory services to corporate retirement plans, public retirement plans, endowments and foundations, mutual funds, individuals and clients of Westwood Trust. Westwood Trust provides institutions and high net worth individuals with trust and custodial services and participation in its sponsored common trust funds. Westwood International provides investment advisory services to corporate retirement plans, public retirement plans, endowments and foundations, mutual funds and other pooled investment vehicles. Revenue is largely dependent on the total value and composition of assets under management (“AUM”). Accordingly, fluctuations in financial markets and in the composition of AUM impact revenues and results of operations. | |
Westwood Management is a registered investment adviser under the Investment Advisers Act of 1940. Westwood Trust is chartered and regulated by the Texas Department of Banking. Westwood International is registered as a portfolio manager and exempt market dealer with the Ontario Securities Commission and the Autorité des marchés financiers (AMF) in Québec. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |
Principles of consolidation | |
The accompanying consolidated financial statements include the accounts of Westwood and its subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. | |
We assess each legal entity that we manage to determine whether consolidation is appropriate at the onset of the relationship. We first determine whether the entity is a voting interest entity (“VOE”), or a variable interest entity (“VIE”), under GAAP and then whether we have a controlling financial interest in the entity. Assessing whether an entity is a VOE or VIE and if it requires consolidation involves judgment and analysis. Factors considered in this assessment include, but are not limited to, the legal organization of the entity, our equity ownership and contractual involvement with the entity and any related party or de facto agent implications of our involvement with the entity. We reconsider whether entities are a VOE or VIE whenever contractual arrangements change, the entity receives additional equity or returns equity to its investors or changes in facts and circumstances occur that change the investors’ ability to direct the activities of the entity. | |
A VIE is an entity in which (i) the total equity investment at risk is not sufficient to enable the entity to finance its activities without subordinated financial support or (ii) the at-risk equity holders do not have the normal characteristics of a controlling financial interest. That is, the at-risk equity holders do not have the obligation to absorb losses, the right to receive residual returns and/or the right to direct the activities of the entity that most significantly impact the entity’s economic performance. An enterprise must consolidate all VIEs of which it is the primary beneficiary. We determine if a sponsored investment meets the definition of a VIE by considering whether the fund’s equity investment at risk is sufficient to finance its activities without additional subordinated financial support and whether the fund’s at-risk equity holders absorb any losses, have the right to receive residual returns and have the right to direct the activities of the entity most responsible for the entity’s economic performance. For VIEs that are investment companies, the primary beneficiary of the VIE is the party that absorbs a majority of the expected losses of the VIE, receives a majority of the expected residual returns of the VIE, or both. For VIEs that are not investment companies, the primary beneficiary of a VIE is defined as the party who, considering the involvement of related parties and de facto agents, has (i) the power to direct the activities of the VIE that most significantly affect its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. This evaluation is updated continuously. | |
A VOE is an entity that is not within the scope of the guidance for VIEs. Consolidation of a VOE is required when a reporting entity owns a controlling financial interest in a VOE. Ownership of a majority of the voting interests is the usual condition for a controlling financial interest. At December 31, 2013, none of our sponsored investment entities were VOEs subject to this assessment by the Company. | |
Westwood Investment Funds PLC (the “UCITS Fund”), which was authorized by the Central Bank of Ireland on June 18, 2013 pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, is an Ireland domiciled umbrella-type open-ended self-managed investment company. The UCITS Fund is established as an umbrella fund with segregated assets and liabilities between sub-funds. Notwithstanding the segregation of assets and liabilities within each sub-fund, the UCITS Fund is a single legal entity and no sub-fund constitutes a legal entity separate from the UCITS Fund itself. The Company’s first UCITS sub-fund is focused on Westwood’s Emerging Markets strategy. Shares of the sub-fund are listed on the Irish Stock Exchange, all of which are owned by the third-party investors. The base currency of the UCITS Fund is the British pound sterling. We determined that the UCITS Fund was a VIE as its at-risk equity holders do not have the ability to direct the activities of the UCITS Fund that most significantly impact the entity’s economic performance. Although the Company does not have an equity investment in the UCITS Fund, through its representatives having a majority control of the UCITS Fund’s Board of Directors its representatives can influence the UCITS Fund’s management and affairs. The UCITS Fund’s Board of Directors maintains this control through its duties, which are stated in the UCITS Fund’s Memorandum, and Articles of Association, which have no expiration date. We concluded that the Company was not the primary beneficiary of the UCITS Fund because even though it has the power to direct the activities of the UCITS Fund (that most significantly impact the fund’s economic performance), it does not absorb a majority of the UCITS Fund’s expected losses and does not receive a majority of the UCITS Fund’s expected residual returns. As a result, the results of the UCITS Fund are not included in the Company’s consolidated financial results. | |
We have also evaluated all of our other advisory relationships and our relationship as sponsor of the common trust funds to determine whether or not we qualify as the primary beneficiary based on whether there is an obligation to absorb the majority of expected losses or a right to receive the majority of residual returns. Since all losses and returns are distributed to the shareholders of the Westwood VIEs, we are not the primary beneficiary and consequently the Westwood VIEs are not included in our consolidated financial statements. We have included the disclosures related to VIEs in Note 12. | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We believe the most significant estimates and assumptions are associated with the valuation of deferred taxes, stock-based compensation and impairment assessments of goodwill and intangible assets. Actual results could differ from those estimates. | |
Revenue Recognition | |
Investment advisory and trust fees are recognized as services are provided. These fees are determined in accordance with contracts between our subsidiaries and their clients and are generally based on a percentage of assets under management. A limited number of our clients have contractual performance-based fee arrangements, which would pay us an additional fee if we outperform a specified index over a specific period of time. We record revenue for performance-based fees at the end of the measurement period. Most advisory and trust fees are payable in advance or in arrears on a calendar quarterly basis. Advance payments are deferred and recognized over the periods services are performed. Since billing periods for most of our advance paying clients coincide with the calendar quarter to which payment relates, revenue is fully recognized within the quarter. Consequently no significant amount of deferred revenue is contained in our consolidated financial statements. Deferred revenue is shown on the consolidated balance sheets under the heading of “Accounts payable and accrued liabilities”. Other revenues generally consist of interest and investment income and are recognized as earned. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of short-term, highly liquid investments with maturities of three months or less, other than pooled investment vehicles that are considered investments. We maintain some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. The Company has not experienced losses on uninsured cash accounts. | |
Accounts Receivable | |
Accounts receivable represents balances arising from services provided to customers and are recorded on an accrual basis, net of any allowance for doubtful accounts. Accounts receivable are written off when they are determined to be uncollectible. Any allowance for doubtful accounts is estimated based on the Company’s historical amounts written off, existing conditions in the industry, and the financial stability of the customer. The majority of our accounts receivable balances consist of advisory and trust fees receivable from customers that we believe and have experienced to be fully collectible. Accordingly our consolidated financial statements do not include an allowance for bad debt or any bad debt expense. | |
Investments | |
Class A shares of Teton Advisors, Inc. (“Teton shares”), which we sold during 2012, were classified as available for sale. The Teton shares were carried at quoted market value less a 25% discount for lack of marketability. Unrealized gains and losses on the Teton shares were recorded through other comprehensive income. All other marketable securities are classified as trading securities and are carried at quoted market values on the accompanying consolidated balance sheets. Net unrealized holding gains or losses on investments classified as trading securities are reflected as a component of other revenues. We measure realized gains and losses on investments using the specific identification method. | |
Fair Value of Financial Instruments | |
We determined the estimated fair values of our financial instruments using available information. The fair value amounts discussed in Notes 4 and 5 are not necessarily indicative of either the amounts realizable upon disposition of these instruments or our intent or ability to dispose of these assets. The estimated fair value of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable, dividends payable, income taxes payable and accrued liabilities, approximates their carrying value due to their short-term maturities and are classified as level 1 fair value measurements. The carrying amount of investments designated as “trading” securities, primarily U.S. Government and Government agency obligations, money market funds, Westwood Funds ™ mutual funds and Westwood Trust common trust fund shares, equals fair value based on prices quoted in active markets and, with respect to funds, the reported net asset value of the shares held. Market values of our money market holdings generally do not fluctuate. | |
Property and Equipment | |
Property and equipment are stated at cost less accumulated depreciation. Depreciation of furniture and equipment is provided over the estimated useful lives of the assets (from 3 to 11 years), and depreciation on leasehold improvements is provided over the lesser of the estimated useful life or lease term using the straight-line method. We capitalize leasehold improvements, furniture and fixtures, computer hardware and most office equipment purchases. | |
Goodwill and Other Intangible Assets | |
Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Goodwill is not amortized but is tested at least annually for impairment. | |
We test more frequently if indicators are present or changes in circumstances suggest that impairment may exist. These indicators include, among others, declines in sales, earnings or cash flows, or the development of a material adverse change in the business climate. We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. We have identified two reporting units, which are consistent with our reporting segments: Advisory and Trust. The Company is not required to calculate the fair value of a reporting unit unless the Company determines that it is more likely than not that its fair value is less than the carrying amount. The Company assesses goodwill for impairment using a qualitative assessment which includes consideration of the current trends in the industry in which the Company operates, macroeconomic conditions, recent financial performance of the Company’s reporting units and a market multiple approach valuation. In performing the annual impairment test, which is performed during the third quarter or more frequently when impairment indicators exist and after assessing the qualitative factors, we may be required to utilize the two-step approach prescribed by ASC 350 “Goodwill and Other Intangible Assets”. The first step requires a comparison of each reporting unit’s carrying value to the fair value of the respective unit. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. The fair value of each reporting unit is estimated, entirely or predominantly, using a market multiple approach. During the third quarter of 2013, we completed our annual goodwill impairment assessment and determined that no impairment loss was required. No impairments were recorded during any of the periods presented. | |
Our intangible assets represent the acquisition date fair value of the acquired client relationships, trade names and non-compete agreements and are reflected net of amortization. In valuing these assets, we made significant estimates regarding the useful lives, growth rates and potential attrition. We periodically review our intangible assets for events or circumstances that would indicate impairment. See Note 6. | |
Income Taxes | |
We file a United States federal income tax return as a consolidated group for Westwood and its subsidiaries based in the US. We file a Canadian income tax return for Westwood International. Deferred income tax assets and liabilities are determined based on temporary differences between the financial statement and income tax bases of assets and liabilities as measured at enacted income tax rates. Deferred income tax expense is generally the result of changes in deferred tax assets and liabilities. Deferred taxes relate primarily to stock-based compensation expense and net operating losses at Westwood International. | |
We record net deferred tax assets to the extent we believe such assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of the net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. No valuation allowance has been recorded in our consolidated financial statements. | |
We recognize tax liabilities in accordance with ASC 740, Income Taxes, and we adjust these liabilities when our judgment changes as a result of the evaluation of new information. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. At December 31, 2013 and 2012, the Company had not established any reserves for, nor recorded any unrecognized tax benefits related to, uncertain tax positions. | |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The ASU also requires presentation, either on the face of the statement where net income is presented or in the notes to the consolidated financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. However, such disclosure is only required if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety to net income, an entity should cross-reference to other disclosures that provide additional detail about those amounts. For public entities, the ASU is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have an impact on our consolidated financial statements. | |
In March 2013, the FASB issued ASU 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The ASU clarifies the interaction between ASC 810-10, Consolidation – Overall, and ASC 830-30, Foreign Currency Matters – Translation of Financial Statement, when releasing the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not currently expect the adoption of this ASU to have an impact on our consolidated financial statements. | |
In June 2013, the FASB issued ASU 2013-08, Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The ASU changes the approach to the investment company assessment in Topic 946, clarifying the characteristics of an investment company and provides comprehensive guidance for assessing whether an entity is an investment company. This update would also require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting and to include additional disclosures. The ASU is effective for reporting periods beginning after December 15, 2013. Although this update is relevant to our VIE analysis, we do not currently expect the adoption of this ASU to have an impact on our consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendment is effective prospectively for fiscal years (and interim periods within those years) beginning after December 15, 2013 and is not expected to have a material impact on our consolidated financial statements. | |
Currency Translation | |
Assets and liabilities of Westwood International, our non-U.S. dollar functional currency subsidiary, are translated at exchange rates as of applicable reporting dates. Revenues and expenses are translated at average exchange rates during the periods indicated. The gains and losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are recorded through other comprehensive income. | |
Long-term Compensation Agreements | |
We entered into employment agreements with certain employees of Westwood International that provide for specified payments over four years. In certain circumstances, these payments would be forfeited to us if the employment of these individuals is terminated before completion of the contractual earning period. Payments made in advance under these agreements are included in “Other current assets” on our Consolidated Balance Sheets, net of amounts already amortized. | |
Stock-Based Compensation | |
We account for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) No. 718, Compensation-Stock Compensation (“ASC 718”). Under ASC 718, stock-based compensation expense reflects the fair value of stock-based awards measured at grant date, is recognized over the relevant service period, and is adjusted each period for anticipated forfeitures. | |
We have issued restricted stock and stock options in accordance with our Third Amended and Restated Westwood Holdings Group, Inc. Stock Incentive Plan (the “Plan”). We apply judgment in developing an expectation of awards of restricted stock that may be forfeited. If actual experience differs significantly from these estimates, stock-based compensation expense and our results of operations could be materially affected. | |
We have compensation arrangements with certain employees of Westwood International pursuant to which these employees are able to earn cash awards based on the performance of certain investment products. A portion of such awards may be paid in shares of our stock that vest over a multi-year period. We accrue a liability for these awards over both the annual period in which we determine it is probable that the award will be earned and, for the portion to be settled in shares, over the following three-year vesting period. For the years ended December 31, 2013, 2012 and 2011, the expense recorded for these awards was $344,000, $124,000 and $0, respectively. Cash awards expected to be settled in shares are funded into a trust pursuant to an established Canadian employee benefit plan. Generally, the Canadian trust subsequently acquires Westwood common shares in market transactions and holds such shares until the shares are vested and distributed, or forfeited. Shares held in the trust are shown on our consolidated balance sheet as treasury shares. During the second quarter of 2013, the trust purchased 20,251 Westwood common shares in the open market for approximately $878,000. Until shares are acquired by the trust, we measure the liability as a cash based award, which is included in “Compensation and benefits payable” on our consolidated balance sheets. When the number of shares related to an award is determinable, the award becomes an equity award accounted for similar to restricted stock, which is described in Note 10. | |
Tax benefits realized upon the vesting of restricted shares that are in excess of the expense previously recognized for reporting purposes are recorded in stockholder’s equity and reflected as a financing activity in our Consolidated Statements of Cash Flows. If the tax benefit upon vesting is less than the expense previously recorded, the shortfall is recorded in stockholder’s equity. If the shortfall exceeds available windfall benefits in equity, they are recorded in our Consolidated Statements of Comprehensive Income and as an operating activity on our Consolidated Statements of Cash Flows. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2013 | |
Accounts Receivable | ' |
3. ACCOUNTS RECEIVABLE: | |
Some of our directors, executive officers and their affiliates invest their personal funds directly in trust accounts that we manage. There were no amounts due from these accounts as of December 31, 2013 and 2012. For the years ended December 31, 2013, 2012 and 2011, we recorded trust fees from these accounts of $278,000, $314,000, and $429,000, respectively. |
Investments
Investments | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Investments | ' | |||||||||||||||
4. INVESTMENTS: | ||||||||||||||||
Investments are presented below (in thousands). All investments are carried at fair value, and all investments are accounted for as trading securities. Our investment in Teton shares, which we sold in 2012 for a gain of $1.9 million, was accounted for as available for sale securities. | ||||||||||||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | ||||||||||||||
December 31, 2013: | ||||||||||||||||
U.S. Government and Government agency obligations | $ | 42,595 | $ | 16 | $ | — | $ | 42,611 | ||||||||
Money market funds | 8,584 | — | — | 8,584 | ||||||||||||
Equity funds | 2,130 | 200 | (54 | ) | 2,276 | |||||||||||
Fixed income funds | 10,984 | 99 | — | 11,083 | ||||||||||||
Marketable securities | $ | 64,293 | $ | 315 | $ | (54 | ) | $ | 64,554 | |||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | ||||||||||||||
December 31, 2012: | ||||||||||||||||
U.S. Government and Government agency obligations | $ | 42,588 | $ | 1 | $ | — | $ | 42,589 | ||||||||
Money market funds | 1,856 | — | — | 1,856 | ||||||||||||
Equity funds | 4,401 | 519 | — | 4,920 | ||||||||||||
Fixed income funds | 10,468 | 73 | — | 10,541 | ||||||||||||
Marketable securities | $ | 59,313 | $ | 593 | $ | — | $ | 59,906 | ||||||||
The following amounts, except for income tax amounts, are included in our consolidated statements of comprehensive income under the heading “Other revenues” for the years indicated (in thousands): | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Realized gains | $ | 629 | $ | 2,467 | $ | 407 | ||||||||||
Realized losses | -4 | (13 | ) | (182 | ) | |||||||||||
Net realized gains/(losses) | 625 | 2,454 | 225 | |||||||||||||
Income tax expense from gains | 225 | 891 | 82 | |||||||||||||
Interest income – trading | 28 | 27 | 61 | |||||||||||||
Dividend income | 541 | 514 | 221 | |||||||||||||
Unrealized gains/(losses) | (325 | ) | 344 | (291 | ) | |||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
5. FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
ASC No. 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and requires additional disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value as follows: | ||||||||||||||||
· | Level 1 – quoted market prices in active markets for identical assets, | |||||||||||||||
· | Level 2 – inputs other than quoted prices that are directly or indirectly observable | |||||||||||||||
· | Level 3 – unobservable inputs where there is little or no market activity. | |||||||||||||||
The following table summarizes the values of our assets as of the dates indicated within the fair value hierarchy (in thousands). | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of December 31, 2013 | ||||||||||||||||
Investments in securities: | ||||||||||||||||
Trading | $ | 64,554 | $ | — | $ | — | $ | 64,554 | ||||||||
Total Financial instruments | $ | 64,554 | $ | — | $ | — | $ | 64,554 | ||||||||
As of December 31, 2012 | ||||||||||||||||
Investments in securities: | ||||||||||||||||
Trading | $ | 55,389 | $ | 4,517 | $ | — | $ | 59,906 | ||||||||
Total Financial instruments | $ | 55,389 | $ | 4,517 | $ | — | $ | 59,906 | ||||||||
Investments categorized as level 2 assets consist of investments in a common trust fund sponsored by Westwood Trust. Common trust funds are private investment vehicles comprised of commingled investments held in trusts that are valued using the Net Asset Value (“NAV”) calculated by us as administrator of the funds. The NAV is quoted on a private market that is not active; however, the unit price is based on the market value of the underlying investments that are traded on an active market. | ||||||||||||||||
We sold all of our 200,000 Class A shares of Teton Advisors, Inc. in 2012. Prior to disposition, we used level 3 inputs to determine their fair value. The following table presents information regarding this investment. | ||||||||||||||||
For the years ended | ||||||||||||||||
Investments in available-for-sale securities (in thousands) | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | — | $ | 2,999 | ||||||||||||
Proceeds from sale | — | (1,900 | ) | |||||||||||||
Change in unrealized gains included in Other Comprehensive Income | — | (1,099 | ) | |||||||||||||
Ending balance | $ | — | $ | — | ||||||||||||
Acquisitions_Goodwill_and_Inta
Acquisitions, Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Acquisitions, Goodwill and Intangible Assets | ' | |||||||||||||||
6. ACQUISITIONS, GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||
On November 18, 2010, we acquired the business and all related assets of McCarthy Group Advisors, L.L.C. (“McCarthy”), a Nebraska limited liability company and registered investment advisor based in Omaha, Nebraska. The McCarthy business, now referred to as Westwood Trust-Omaha, was initially added to our Advisory segment. Since then a significant portion of client assets have transitioned to Trust segment products and we expect this to continue. In addition, new client assets added by the Omaha office are generally invested in Trust segment products. This acquisition was made in order to increase assets in our private wealth and Westwood Trust operating units, increase revenue from the Westwood Funds through the reorganization of the McCarthy Multi-Cap Stock Fund into the Westwood Dividend Growth Fund, which was completed in February 2011, and expand the Westwood Trust platform. | ||||||||||||||||
At closing, we paid a consideration totaling $12.0 million, comprised of 181,461 shares of Westwood Holdings Group, Inc. common stock and $5.0 million in cash. Related to this acquisition, we recorded goodwill of $7.4 million, intangible assets of $4.2 million and net working capital and property and equipment of $0.4 million, which is detailed by assets and liabilities in a table below. The intangible assets purchased were primarily McCarthy’s customer accounts but also included allocations to trade-name and non-compete agreements, which together comprised approximately 7% of the allocated purchase price. Pro forma results of operations have not been presented because the results of operations for the years ended December 31, 2010, 2009 and 2008, including McCarthy’s operations, would not have been materially different from those reported in our consolidated statements of comprehensive income. | ||||||||||||||||
The following tables present the assets and liabilities we acquired from McCarthy: | ||||||||||||||||
Amount | ||||||||||||||||
($ thousands) | ||||||||||||||||
Goodwill: | ||||||||||||||||
Other goodwill | $ | 6,875 | ||||||||||||||
Assembled workforce | 491 | |||||||||||||||
Total goodwill | $ | 7,366 | ||||||||||||||
Intangible assets: | ||||||||||||||||
Customer accounts | $ | 3,965 | ||||||||||||||
Trade name | 234 | |||||||||||||||
Non-compete agreements | 24 | |||||||||||||||
Total Intangible assets | $ | 4,223 | ||||||||||||||
Tangible assets | Amount | |||||||||||||||
($ thousands) | ||||||||||||||||
Cash | $ | 1,008 | ||||||||||||||
Receivables | 370 | |||||||||||||||
Property and equipment | 88 | |||||||||||||||
Prepaid expenses | 76 | |||||||||||||||
Bonuses payable | (753 | ) | ||||||||||||||
Unearned Income | (296 | ) | ||||||||||||||
Other liabilities | (101 | ) | ||||||||||||||
Net tangible assets | $ | 392 | ||||||||||||||
On November 16, 2009, we acquired the business and substantially all the related assets of Baxter Financial Corporation related to its management of the Philadelphia Fund. In connection with this acquisition, the Philadelphia Fund was reorganized into the Westwood LargeCap Value Fund. On November 21, 2011, we paid cash for the final deferred payment in the amount of $867,000. | ||||||||||||||||
The goodwill we acquired is not amortized for book purposes, but is deductible for income tax purposes. | ||||||||||||||||
The changes in goodwill for the last two years were as follows (in thousands): | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning balance | $ | 11,255 | $ | 11,255 | ||||||||||||
Acquired goodwill | — | — | ||||||||||||||
Ending balance | $ | 11,255 | $ | 11,255 | ||||||||||||
Intangible Assets | ||||||||||||||||
The following is a summary of intangible assets at December 31, 2013 and 2012 (in thousands, except years): | ||||||||||||||||
Weighted | Gross | Accumulated | Net | |||||||||||||
Average | Carrying | Amortization | Carrying | |||||||||||||
Amortization | Amount | Amount | ||||||||||||||
Period | ||||||||||||||||
(years) | ||||||||||||||||
2013 | ||||||||||||||||
Client relationships | 14.2 | $ | 5,005 | $ | -1,216 | $ | 3,789 | |||||||||
Trade names | 2 | 256 | -256 | — | ||||||||||||
Non-compete agreements | 2.3 | 26 | -26 | — | ||||||||||||
Total | $ | 5,287 | $ | -1,498 | $ | 3,789 | ||||||||||
2012 | ||||||||||||||||
Client relationships | 14.2 | $ | 5,005 | $ | (857 | ) | $ | 4,148 | ||||||||
Trade names | 2 | 256 | (256 | ) | — | |||||||||||
Non-compete agreements | 2.3 | 26 | (25 | ) | 1 | |||||||||||
Total | $ | 5,287 | $ | (1,138 | ) | $ | 4,149 | |||||||||
Amortization expense, which is included in “General and administrative” expense on our consolidated statements of comprehensive income, was $359,000, $472,000 and $498,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||
Estimated amortization expense for the intangible assets for the next five years is as follows (in thousands): | ||||||||||||||||
Estimated | ||||||||||||||||
Amortization | ||||||||||||||||
Expense | ||||||||||||||||
For the Year ending December 31, | ||||||||||||||||
2014 | $ | 359 | ||||||||||||||
2015 | 359 | |||||||||||||||
2016 | 359 | |||||||||||||||
2017 | 359 | |||||||||||||||
2018 | 359 | |||||||||||||||
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Balance Sheet Components | ' | |||||||
7. BALANCE SHEET COMPONENTS: | ||||||||
Property and Equipment | ||||||||
The following table reflects information about our property and equipment as of December 31, 2013 and 2012 (in thousands): | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Leasehold improvements cost | $ | 2,068 | $ | 1,321 | ||||
Furniture and fixtures cost | 1,453 | 1,450 | ||||||
Computer hardware and office equipment cost | 1,380 | 1,121 | ||||||
Accumulated depreciation | (2,155 | ) | (1,747 | ) | ||||
Net property and equipment | $ | 2,746 | $ | 2,145 | ||||
Accumulated Other Comprehensive Income | ||||||||
The components of accumulated other comprehensive income were as follows (in thousands): | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Foreign currency translation adjustment | $ | (257 | ) | $ | 30 | |||
Accumulated other comprehensive income | $ | (257 | ) | $ | 30 | |||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Taxes | ' | |||||||||||
8. INCOME TAXES: | ||||||||||||
Income Tax Provision | ||||||||||||
Income (loss) before income taxes by jurisdiction is as follows: | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 30,883 | $ | 26,850 | $ | 23,109 | ||||||
Canada | (2,614 | ) | (6,824 | ) | — | |||||||
Total | $ | 28,269 | $ | 20,026 | $ | 23,109 | ||||||
Income tax expense differs from the amount that would otherwise have been calculated by applying the U.S. Federal corporate tax rate of 35% to income before income taxes. | ||||||||||||
The difference between the Federal corporate tax rate and the effective tax rate is comprised of the following (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income tax provision computed at US federal statutory rate | $ | 9,894 | $ | 7,009 | $ | 8,088 | ||||||
Canadian rate differential | 222 | 580 | — | |||||||||
State and local income taxes, net of federal income taxes | 386 | 305 | 353 | |||||||||
Other, net | (124 | ) | 42 | (18 | ) | |||||||
Total income tax expense | $ | 10,378 | $ | 7,936 | $ | 8,423 | ||||||
Effective income tax rate | 36.7 | % | 39.6 | % | 36.4 | % | ||||||
We include penalties and interest on income-based taxes in the “Provision for income taxes” line on our consolidated statements of comprehensive income. We recorded penalties and interest of $0, $0 and $135 in 2013, 2012 and 2011, respectively. | ||||||||||||
Income tax provision (benefit) as set forth in the consolidated statements of comprehensive income consisted of the following components (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current taxes: | ||||||||||||
US Federal | $ | 10,683 | $ | 9,280 | $ | 7,944 | ||||||
State and local | 602 | 473 | 546 | |||||||||
Total | 11,285 | 9,753 | 8,490 | |||||||||
Deferred taxes: | ||||||||||||
State and local | (5 | ) | (2 | ) | (2 | ) | ||||||
US Federal | (210 | ) | (4 | ) | (65 | ) | ||||||
Non-US | (692 | ) | (1,811 | ) | — | |||||||
Total | (907 | ) | (1,817 | ) | (67 | ) | ||||||
Total income tax expense | $ | 10,378 | $ | 7,936 | $ | 8,423 | ||||||
Deferred Income Taxes | ||||||||||||
The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are presented below (in thousands): | ||||||||||||
As of | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Restricted stock amortization | $ | 4,196 | $ | 3,903 | ||||||||
Net operating loss | 2,244 | 1,818 | ||||||||||
Deferred rent | 204 | 173 | ||||||||||
Other | 97 | 19 | ||||||||||
Total deferred tax assets | 6,741 | 5,913 | ||||||||||
2013 | 2012 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (390 | ) | (391 | ) | ||||||||
Intangibles | (449 | ) | (253 | ) | ||||||||
Unrealized gains on investments | (79 | ) | (211 | ) | ||||||||
Total deferred tax liabilities | (918 | ) | (855 | ) | ||||||||
Net deferred tax assets | $ | 5,823 | $ | 5,058 | ||||||||
Net deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Net current deferred tax asset | $ | 3,782 | $ | 3,362 | ||||||||
Net current deferred tax liabilities | — | — | ||||||||||
Net current deferred tax assets reflected on the balance sheets | 3,782 | 3,362 | ||||||||||
Net non-current deferred tax assets | 2,275 | 2,552 | ||||||||||
Net non-current deferred tax liabilities | (234 | ) | (856 | ) | ||||||||
Net non-current deferred tax assets reflected on the balance sheets | 2,041 | 1,696 | ||||||||||
Total net deferred tax assets | $ | 5,823 | $ | 5,058 | ||||||||
As of December 31, 2013, we have Canadian net operating loss carry forwards of approximately $8.5 million that are subject to limitation and account for the deferred tax asset of $2.2 million. These net operating loss carryforwards begin to expire in 2032. We believe that it is more likely than not that we will realize the benefit of our deferred tax assets. | ||||||||||||
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2013 | |
Regulatory Capital Requirements | ' |
9. REGULATORY CAPITAL REQUIREMENTS: | |
Westwood Trust is subject to the capital requirements of the Texas Department of Banking and has a minimum capital requirement of $1.0 million. At December 31, 2013, Westwood Trust had approximately $12 million in excess of its minimum capital requirement. | |
Westwood Trust is limited under applicable Texas law in the payment of dividends to undivided profits, which is that part of equity capital equal to the balance of net profits, income, gains and losses since formation minus subsequent distributions to stockholders and transfers to surplus or capital under share dividends or appropriate Board resolutions. At the discretion of its board of directors, Westwood Trust has made quarterly and special dividend payments to us out of its undivided profits. | |
Westwood International is subject to the working capital requirements of the Ontario Securities Commission, which requires that combined cash and receivables be at least $200,000 CDN in excess of current liabilities. At December 31, 2013 Westwood International had combined cash and receivables that were $4.4 million CDN (or $4.2 million in U.S. Dollars using the exchange rate on December 31, 2013) in excess of its current liabilities, which satisfies this requirement. |
Employee_Benefits
Employee Benefits | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Employee Benefits | ' | |||||||||||
10. EMPLOYEE BENEFITS: | ||||||||||||
Stock Based Compensation | ||||||||||||
We have issued stock options and restricted shares to our employees and non-employee directors and offer 401(k) matching and profit sharing contributions to our employees. The Plan reserves shares of Westwood common stock for issuance to eligible employees, directors and consultants of Westwood or its subsidiaries in the form of restricted stock and stock options. The total number of shares that may be issued under the Plan (including predecessor plans to the Plan) may not exceed 3,898,100 shares. In the event of a change in control of Westwood, the Plan contains provisions providing for the acceleration of the vesting of restricted stock and stock options. At December 31, 2013, approximately 716,000 shares remain available for issuance under the Plan. | ||||||||||||
The Share Award Plan of Westwood Holdings Group, Inc. for Service provided in Canada to its Subsidiaries (the “Canada EB Plan”) provides compensation in the form of common stock for services performed by persons to Westwood International. As described in Note 2, the trust formed pursuant to the Canada EB Plan holds 20,251 shares of Westwood common stock. Under the Canada EB Plan, no more than $10 million CDN (or $9.4 million in U. S. Dollars using the exchange rate on December 31, 2013) may be funded to the Plan Trustee to fund purchases of common stock with respect to awards granted under the Canada EB Plan. At December 31, 2013, approximately 147,000 shares remain available for issuance under the Canada EB Plan based on a share price of $61.91, the closing price of our stock as of the last business day of 2013. As of December 31, 2013, for restricted stock grants under the Canada EB Plan there was approximately $0.5 million of unrecognized compensation cost, which we expect to recognize over a weighted-average period of 2 years. | ||||||||||||
The following table presents the total stock-based compensation expense recorded and the total income tax benefit recognized for stock-based compensation arrangements for the years indicated (in thousands): | ||||||||||||
For the years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Service condition restricted stock expense | $ | 7,602 | $ | 7,546 | $ | 7,632 | ||||||
Performance-based restricted stock expense | 3,758 | 2,969 | 2,337 | |||||||||
Restricted stock expense under the Plan | 11,360 | 10,515 | 9,969 | |||||||||
Canada EB Plan restricted stock expense | 235 | — | — | |||||||||
Total stock based compensation expense | $ | 11,595 | $ | 10,515 | $ | 9,969 | ||||||
Total income tax benefit recognized related to stock-based compensation | $ | 4,382 | $ | 4,230 | $ | 3,872 | ||||||
Restricted Stock | ||||||||||||
Under the Plan, we have granted to employees and non-employee directors restricted stock subject to service conditions, and to certain key employees restricted stock subject to both service and performance conditions. We calculate compensation cost for restricted stock grants by using the fair market value of our common stock at the date of grant, the number of shares issued, an adjustment for restrictions on dividends and an estimate of shares that will not vest due to forfeitures. This compensation cost is amortized on a straight-line basis over the applicable vesting period. | ||||||||||||
As of December 31, 2013, there was approximately $21.9 million of unrecognized compensation cost for restricted stock grants under the Plan, which we expect to recognize over a weighted-average period of 2.5 years. In order to satisfy tax liabilities that employees will owe on their shares that vest, we may withhold a sufficient number of vested shares from employees on the date vesting occurs. We withheld 86,392 shares in 2013 for this purpose. Our two types of restricted stock grants under the Plan are discussed below. | ||||||||||||
Employee and non-employee director restricted share grants | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, we granted restricted stock to employees and non-employee directors. The employees’ shares vest over four years and the directors’ shares vest over one year. | ||||||||||||
The following table details the status and changes in our restricted stock grants that are subject only to a service condition for the year ended December 31, 2013: | ||||||||||||
Shares | Weighted Average | |||||||||||
Grant Date Fair | ||||||||||||
Value | ||||||||||||
Restricted shares subject only to a service condition: | ||||||||||||
Non-vested, January 1, 2013 | 560,025 | $ | 37.52 | |||||||||
Granted | 205,624 | 43.68 | ||||||||||
Vested | (210,980 | ) | 35.87 | |||||||||
Forfeited | (43,609 | ) | 39.73 | |||||||||
Non-vested, December 31, 2013 | 511,060 | 40.49 | ||||||||||
The following table shows the weighted-average grant date fair value for shares granted and the total fair value of shares vested during the years indicated: | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Restricted shares subject only to a service condition: | ||||||||||||
Weighted-average grant date fair value | $ | 43.68 | $ | 39.26 | $ | 36.64 | ||||||
Fair value of shares vested (in thousands) | $ | 7,568 | $ | 8,115 | $ | 7,380 | ||||||
Performance-based restricted share grants | ||||||||||||
Under the Plan, we granted to certain key employees restricted shares that vest over five years, provided that annual performance goals established by the Compensation Committee of Westwood’s board of directors are met. In February 2013, the Compensation Committee established the 2013 goal as adjusted pre-tax income of at least $27.0 million, representing a five-year compound annual growth rate in excess of 10% over annual adjusted pre-tax income recorded in 2008 (excluding a 2008 non-recurring performance fee of $8.7 million). Our adjusted pre-tax income is determined based on our audited financial statements and is equal to income before income taxes increased by expenses incurred for the year for (i) incentive compensation for all officers and employees and (ii) performance-based restricted stock awards, and excluding start up, non-recurring, and similar expense items. In the first quarter of 2013, we concluded that it was probable that we would meet the performance goals required to vest the applicable percentage of the performance-based restricted shares this year and began recording expense related to those shares. Each year the Compensation Committee establishes a specific goal for that year’s vesting of the restricted shares, which historically is based upon Westwood’s adjusted pre-tax income, as defined. If the performance goal is not met in any year during the vesting period, the Compensation Committee may establish a goal for a subsequent vesting period, which, if achieved or exceeded, may result in full or partial vesting of the shares that did not otherwise become vested in a prior year. In no event, under the current grants, will the maximum number of shares which may become vested over the vesting period exceed 175,000 shares in the case of our Chief Executive Officer or 290,000 shares collectively in the case of certain other employees. If a portion of the performance-based restricted shares do not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that do not vest would be reversed. | ||||||||||||
Shares | Weighted Average | |||||||||||
Grant Date Fair | ||||||||||||
Value | ||||||||||||
Restricted shares subject to service and performance conditions: | ||||||||||||
Non-vested, January 1, 2013 | 230,000 | $ | 39.49 | |||||||||
Granted | 90,000 | 43.85 | ||||||||||
Vested | (93,000 | ) | 40.41 | |||||||||
Forfeited | — | — | ||||||||||
Non-vested, December 31, 2013 | 227,000 | $ | 40.84 | |||||||||
The following table shows the weighted-average grant date fair value for shares granted and the total fair value of shares vested during the years indicated: | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Restricted shares subject to a service and performance condition: | ||||||||||||
Weighted-average grant date fair value | $ | 43.85 | $ | 39.31 | $ | — | ||||||
Fair value of shares vested (in thousands) | $ | 3,758 | $ | 3,068 | $ | 3,107 | ||||||
Because the performance goal was met in 2013, the shares are vested in substance but require certification by our Compensation Committee, at which time a share price will be determined for tax purposes. As a result, we estimate that the total fair value of the shares that vested in 2013 was approximately $5,758,000 based on a share price of $61.91, the closing price of our stock as of the last business day of 2013. | ||||||||||||
Stock Options | ||||||||||||
Options granted under the Plan had a maximum ten-year term and vested over a period of four years. Options exercised represent newly issued shares. There are no options currently outstanding or exercisable as of December 31, 2013. | ||||||||||||
There were options representing 16,250 shares of Westwood’s common stock outstanding at the beginning of 2012 at a weighted average exercise price of $12.90 per share that were exercised in 2012. These options had an intrinsic value of $384,000 as of December 31, 2011. The total intrinsic value of options exercised was $0, $364,000 and $542,000 in 2013, 2012 and 2011, respectively. The cash received from the exercise of stock options was $0, $210,000 and $287,000 in 2013, 2012 and 2011, respectively. | ||||||||||||
Deferred Share Units | ||||||||||||
We established a deferred share unit (“DSU”) plan for employees and directors of Westwood International. A DSU is an award linked to the value of Westwood’s common stock and is represented by a notional credit to a participant account. The value of a DSU is initially equal to the value of a share of our common stock. DSUs vest 20%, 40%, 60%, and 80% after two, three, four and five years of service, respectively. DSUs become fully vested after six years of service by the participant and the liability for these units is settled in cash upon termination of the participant’s service. We record expense for DSUs based on the number of units vested on a straight line basis, which may increase or decrease based on changes in the price of our common shares, and will increase for additional units received from dividends declared on our shares. As of December 31, 2013, we had an accrued liability of $71,000 for 4,193 deferred share units related to the 2012 awards issued in 2013 which is based on the closing price of our common stock on the last trading day of the year ended December 31, 2013 of $61.91 per share. | ||||||||||||
Mutual Fund Share Incentive Awards | ||||||||||||
We grant mutual fund incentive awards annually to certain employees which are bonus awards based on our mutual funds achieving certain performance goals. Awards granted are notionally credited to a participant account maintained by the Company representing a number of mutual fund shares equal to the award amount divided by the net closing value of a fund share on the date the amount is credited to the account. | ||||||||||||
These awards vest after approximately one year of service following the year the award is earned by the participant. We begin accruing a liability for mutual fund incentive awards when we determine it is probable that the award will be earned and record expense for these awards over the service period of the award, which is approximately two years. During the year in which the amount of the award is determined, we record expense based on the expected value of the award. After the award is earned, we record expense based on the value of the shares awarded and the percentage of the vesting period that has transpired. Our liability under these awards may increase or decrease based on changes in the value of the mutual fund shares awarded, including reinvested income from the mutual funds during the vesting period. Upon vesting, participants receive the value of the mutual fund share awards adjusted for earnings or losses attributable to the underlying mutual funds. For the year ended December 31, 2013, we recorded expense of $1.8 million related to mutual fund share incentive awards. As of December 31, 2013 and 2012, we had an accrued liability of $1.9 million and $0, respectively, related to mutual fund incentive awards. | ||||||||||||
Westwood Holdings Group, Inc. Savings Plan | ||||||||||||
Westwood has a defined contribution 401(k) and profit sharing plan that was adopted in July 2002 and covers substantially all of our U.S. employees. Discretionary employer profit sharing contributions become fully vested after six years of service by the participant. For the 401(k) portion of the plan, Westwood provides a match of up to 6% of eligible compensation. These 401(k) matching contributions vest immediately. | ||||||||||||
The following table displays our profit sharing and 401(k) contributions for the periods presented (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Profit sharing contributions | $ | 674 | $ | 648 | $ | 582 | ||||||
401(k) matching contributions | 871 | 744 | 707 | |||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share | ' | |||||||||||
11. EARNINGS PER SHARE | ||||||||||||
Basic earnings per common share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding. Diluted EPS is computed based on the weighted average shares of common stock outstanding plus the effect of any dilutive shares of restricted stock and stock options granted to employees and non-employee directors. There were no anti-dilutive restricted shares or options as of December 31, 2013, 2012 or 2011. | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts): | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income | $ | 17,891 | $ | 12,090 | $ | 14,686 | ||||||
Weighted average shares outstanding – basic | 7,331,874 | 7,145,701 | 6,970,382 | |||||||||
Dilutive potential shares from unvested restricted shares | 311,177 | 189,269 | 204,957 | |||||||||
Dilutive contingently issuable shares | — | — | 17,607 | |||||||||
Dilutive potential shares from stock options | — | 3,134 | 15,569 | |||||||||
Weighted average shares outstanding – diluted | 7,643,051 | 7,338,104 | 7,208,515 | |||||||||
Earnings per share: | ||||||||||||
Basic | $ | 2.44 | $ | 1.69 | $ | 2.11 | ||||||
Diluted | $ | 2.34 | $ | 1.65 | $ | 2.04 | ||||||
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Variable Interest Entities | ' | |||||||||||
12. VARIABLE INTEREST ENTITIES | ||||||||||||
Westwood Trust sponsors common trust funds (“CTFs”) for its clients. These funds allow clients to commingle assets to achieve economies of scale. Westwood Management provides investment advisory services to the Westwood Funds ™, a family of mutual funds, and to two collective investment trusts (“CITs”). Some clients of Westwood Management acquired in the McCarthy acquisition hold their investments in ten limited liability companies (“LLCs”) that were formed and sponsored by McCarthy. The CTFs, Westwood Funds ™, CITs and LLCs (“Westwood VIEs”) are considered VIEs because our clients, who hold the equity at risk, do not have direct or indirect ability through voting or similar rights to make decisions about the funds that may have a significant effect on their economic performance. We receive fees for managing assets in these entities commensurate with market rates. | ||||||||||||
We evaluate all of our advisory relationships and CTFs to determine whether or not we qualify as the primary beneficiary based on whether there is an obligation to absorb the majority of the expected losses or a right to receive the majority of the expected residual returns or both. Since all losses and returns are distributed to the shareholders of the Westwood VIEs, we are not the primary beneficiary and consequently, the Westwood VIEs are not consolidated into our financial statements. | ||||||||||||
In June 2013, the Company provided €300,000 (or approximately $405,750) to the UCITS Fund for the sole purpose of meeting the minimum capital requirements (and showing economic substance) needed to complete the application process to establish the fund. In August 2013, the UCITS Fund refunded this amount in full. | ||||||||||||
Otherwise, we have not provided any financial support that we were not previously contractually obligated to provide and there are no arrangements that would require us to provide additional financial support to any of these variable interest entities. Our investments in the Westwood Funds ™ and the CTFs are accounted for as investments in accordance with our other investments described in Note. 4. We recognized fee revenue from the Westwood VIEs of approximately $36.2 million, $30.3 million and $26.8 million for the twelve months ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
The following table displays the assets under management, amount of corporate money invested that are included in “Investments, at fair value” on the consolidated balance sheets, and the risk of loss in each vehicle (in millions): | ||||||||||||
As of December 31, 2013 | ||||||||||||
Assets | Corporate | Risk | ||||||||||
Under | Investment | of | ||||||||||
Management | Loss | |||||||||||
Westwood Funds ™ | $ | 2,784 | $ | 13.4 | $ | 13.4 | ||||||
Common Trust Funds | 2,647 | — | — | |||||||||
Collective Investment Trusts | 308 | — | — | |||||||||
LLCs | 155 | — | — | |||||||||
UCITS Fund | 1,386 | — | — | |||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
13. RELATED PARTY TRANSACTIONS | |
The Company engages in transactions with its affiliates in the ordinary course of business. Westwood International provides investment advisory services to the UCITS Fund. Certain members of the Company’s management and board of directors serve on the board of directors of the UCITS Fund, which began operations in August 2013. Under the terms of the investment advisory agreements, the Company earns quarterly fees that are paid by clients of the UCITS Fund. The fees are based on negotiated fee schedules applied to AUM. These fees are commensurate with market rates and are negotiated and contracted at arm’s length. As of December 31, 2013, the Company did not earn or receive any fees from the UCITS Fund. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies | ' | |||
14. COMMITMENTS AND CONTINGENCIES: | ||||
Leases | ||||
We lease our offices under non-cancelable operating lease agreements, which have expiration dates that run through 2021. Rental expense for facilities and equipment leases for years ended December 31, 2013, 2012 and 2011 aggregated approximately $1,640,000, $1,258,000 and $979,000, respectively, and is included in general and administrative and information technology expenses in the accompanying consolidated statements of comprehensive income. | ||||
At December 31, 2013, the future contractual rental payments for non-cancelable operating leases for each of the following five years and thereafter follow (in thousands): | ||||
Year ending: | ||||
2014 | $ | 1,422 | ||
2015 | 1,321 | |||
2016 | 1,342 | |||
2017 | 1,157 | |||
2018 | 1,003 | |||
Thereafter | 2,924 | |||
Total payments due | $ | 9,169 | ||
Litigation | ||||
On August 3, 2012, AGF Management Limited and AGF Investments Inc. (“AGF”) filed a lawsuit in the Ontario Superior Court of Justice against Westwood, certain Westwood employees and executive recruiting firm Warren International, LLC. The action relates to the hiring of certain members of Westwood’s global and emerging markets investment team who were previously employed by AGF. AGF is alleging that the former employees breached certain obligations when they resigned from AGF and that Westwood and Warren induced such breaches. AGF is seeking an unspecified amount of damages and punitive damages of $10 million (CAD) in the lawsuit. On November 5, 2012, Westwood issued a response to AGF’s lawsuit with a counterclaim against AGF for defamation. Westwood is seeking $1 million (CAD) in general damages, $10 million (CAD) in special damages, $1 million (CAD) in punitive damages, and costs. On November 6, 2012, AGF filed a second lawsuit against Westwood, Westwood Management and an employee of a Westwood subsidiary, alleging that the employee made defamatory statements about AGF. In this second lawsuit, AGF is seeking $5 million (CAD) in general damages, $1 million (CAD) per defendant in punitive damages, unspecified special damages, interest and costs. The pleadings phase is complete and we are now in the discovery phase, which we hope to complete in the first half of 2014. | ||||
While we intend to vigorously defend both actions and pursue our counterclaims, we are currently unable to estimate the ultimate aggregate amount of monetary gain, loss or financial impact of these actions and counterclaims. Defending these actions and pursuing these counterclaims may be expensive for us and time consuming for our personnel. While we do not currently believe these proceedings will have a material impact, adverse resolution of these actions and counterclaims could have a material adverse effect on our business, financial condition or results of operations. | ||||
Our policy is to not accrue legal fees and directly related costs as part of potential loss contingencies. We have agreed with our Directors & Officers insurance provider that 50% of the defense costs related to both AGF claims, excluding Westwood’s counterclaim against AGF, will be covered by insurance. We expense legal fees and directly-related costs as they are incurred. We have recorded a receivable of $254,000 as of December 31, 2013 which is our current minimum estimate of the expenses incurred related to this lawsuit that we expect to recover under our insurance policies. This receivable is part of “Other current assets” on our consolidated balance sheets. |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Segment Reporting | ' | ||||||||||||||||||||
15. SEGMENT REPORTING: | |||||||||||||||||||||
We operate two segments: Advisory and Trust. These segments are managed separately based on the types of products and services offered and their related client bases. We evaluate the performance of our segments based primarily on income before income taxes. Westwood Holdings, the parent company of Advisory and Trust, does not have revenues or employees and is the entity in which we record stock-based compensation expense. All segment accounting policies are the same as those described in the summary of significant accounting policies. Intersegment balances that eliminate in consolidation have been applied to the appropriate segment. | |||||||||||||||||||||
Advisory | |||||||||||||||||||||
Our Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals and the Westwood Funds™, as well as investment subadvisory services to mutual funds and our Trust segment. Westwood Management and Westwood International, which provide investment advisory services to clients of similar type, are included in our Advisory segment. | |||||||||||||||||||||
Trust | |||||||||||||||||||||
Trust provides trust and custodial services to its clients and to our Advisory segment and participates in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Trust is included in our Trust segment. | |||||||||||||||||||||
Advisory | Trust | Westwood | Eliminations | Consolidated | |||||||||||||||||
Holdings | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Net fee revenues from external sources | $ | 72,588 | $ | 18,367 | $ | — | $ | — | $ | 90,955 | |||||||||||
Net intersegment revenues | 10,402 | 14 | — | (10,416 | ) | — | |||||||||||||||
Net interest and dividend revenue | 568 | 1 | — | — | 569 | ||||||||||||||||
Other revenue | 301 | — | — | — | 301 | ||||||||||||||||
Total revenues | 83,859 | 18,382 | — | (10,416 | ) | 91,825 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Depreciation and amortization | 468 | 301 | — | — | 769 | ||||||||||||||||
Other operating expenses | 47,362 | 15,140 | 10,701 | (10,416 | ) | 62,787 | |||||||||||||||
Total expenses | 47,830 | 15,441 | 10,701 | (10,416 | ) | 63,556 | |||||||||||||||
Income (loss) before income taxes | 36,029 | 2,941 | (10,701 | ) | — | 28,269 | |||||||||||||||
Income tax expense (benefit) | 13,047 | 1,117 | (3,786 | ) | — | 10,378 | |||||||||||||||
Net income | $ | 22,982 | $ | 1,824 | $ | (6,915 | ) | $ | — | $ | 17,891 | ||||||||||
Segment assets | $ | 114,853 | $ | 14,190 | $ | — | $ | (13,023 | ) | $ | 116,020 | ||||||||||
Segment goodwill | $ | 5,219 | $ | 6,036 | $ | — | $ | — | $ | 11,255 | |||||||||||
Expenditures for long-lived assets | $ | 962 | $ | 239 | $ | — | $ | — | $ | 1,201 | |||||||||||
2012 | |||||||||||||||||||||
Net fee revenues from external sources | $ | 59,187 | $ | 14,969 | $ | — | $ | — | $ | 74,156 | |||||||||||
Net intersegment revenues | 5,858 | 16 | — | (5,874 | ) | — | |||||||||||||||
Net interest and dividend revenue | 539 | 2 | — | — | 541 | ||||||||||||||||
Other revenue | 2,798 | — | — | — | 2,798 | ||||||||||||||||
Total revenues | 68,382 | 14,987 | — | (5,874 | ) | 77,495 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Depreciation and amortization | 450 | 372 | — | — | 822 | ||||||||||||||||
Other operating expenses | 40,520 | 11,984 | 10,017 | (5,874 | ) | 56,647 | |||||||||||||||
Total expenses | 40,970 | 12,356 | 10,017 | (5,874 | ) | 57,469 | |||||||||||||||
Income (loss) before income taxes | 27,412 | 2,631 | (10,017 | ) | — | 20,026 | |||||||||||||||
Income tax expense (benefit) | 10,458 | 992 | (3,514 | ) | — | 7,936 | |||||||||||||||
Net income | $ | 16,954 | $ | 1,639 | $ | (6,503 | ) | $ | — | $ | 12,090 | ||||||||||
Segment assets | $ | 91,619 | $ | 13,657 | $ | — | $ | (8,661 | ) | $ | 96,615 | ||||||||||
Segment goodwill | $ | 5,219 | $ | 6,036 | $ | — | $ | — | $ | 11,255 | |||||||||||
Expenditures for long-lived assets | $ | 228 | $ | 36 | $ | — | $ | — | $ | 264 | |||||||||||
2011 | |||||||||||||||||||||
Net fee revenues from external sources | $ | 55,237 | $ | 13,453 | $ | — | $ | — | $ | 68,690 | |||||||||||
Net intersegment revenues | 4,624 | 17 | — | (4,641 | ) | — | |||||||||||||||
Net interest and dividend revenue | 280 | 2 | — | — | 282 | ||||||||||||||||
Other revenue | (67 | ) | 4 | — | — | (63 | ) | ||||||||||||||
Total revenues | 60,074 | 13,476 | — | (4,641 | ) | 68,909 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Depreciation and amortization | 386 | 376 | — | — | 762 | ||||||||||||||||
Other operating expenses | 28,598 | 11,112 | 9,969 | (4,641 | ) | 45,038 | |||||||||||||||
Total expenses | 28,984 | 11,488 | 9,969 | (4,641 | ) | 45,800 | |||||||||||||||
Income (loss) before income taxes | 31,090 | 1,988 | (9,969 | ) | — | 23,109 | |||||||||||||||
Income tax expense (benefit) | 11,112 | 765 | (3,454 | ) | — | 8,423 | |||||||||||||||
Net income | $ | 19,978 | $ | 1,223 | $ | (6,515 | ) | $ | — | $ | 14,686 | ||||||||||
Expenditures for long-lived assets | $ | 1,069 | $ | 362 | $ | — | $ | — | $ | 1,431 | |||||||||||
Geographical information | |||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||
Analysis of revenues by geographic location of client: | |||||||||||||||||||||
U.S. | $ | 83,622 | $ | 73,255 | $ | 65,409 | |||||||||||||||
Canada | 5,567 | 2,542 | 1,598 | ||||||||||||||||||
Europe | 1,843 | 1,698 | 1,902 | ||||||||||||||||||
Australia | 793 | — | — | ||||||||||||||||||
Total | $ | 91,825 | $ | 77,495 | $ | 68,909 | |||||||||||||||
As of | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||||||
Analysis of property and equipment, net by geographic area: | |||||||||||||||||||||
U.S. | $ | 2,102 | $ | 2,077 | |||||||||||||||||
Canada | 644 | 68 | |||||||||||||||||||
Total | $ | 2,746 | $ | 2,145 | |||||||||||||||||
Concentration
Concentration | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Concentration | ' | |||||||||||
16. CONCENTRATION: | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, our four largest clients accounted for 13.7%, 12.6%, and 14.3% of our fee revenue, respectively. | ||||||||||||
No single customer accounted for 10% or more of our fee revenues in any of these years. | ||||||||||||
Years ended December 31, | ||||||||||||
(in thousands) | 2013 | 2012 | 2011 | |||||||||
Advisory fees from Westwood Management’s largest client: | ||||||||||||
Asset-based fees | $ | 1,729 | $ | 1,452 | $ | 1,772 | ||||||
Performance-based fees | 2,561 | 1,251 | 991 | |||||||||
Percent of fee revenue | 4.7 | % | 3.7 | % | 4 | % | ||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
17. SUBSEQUENT EVENTS: | |
On February 6, 2014, we declared a quarterly cash dividend of $0.44 per share on common stock payable on April 1, 2014 to stockholders of record on March 14, 2014. | |
On February 21, 2014, we issued 168,804 shares of restricted stock to employees. On February 21, 2014, shares of our stock closed at a price of $58.88 per share. The shares are subject to vesting conditions described in Note 10 of these consolidated financial statements. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||
18. QUARTERLY FINANCIAL DATA (Unaudited): | |||||||||||||||||
The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 (in thousands, except per share amounts): | |||||||||||||||||
Quarter | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 20,100 | $ | 23,475 | $ | 22,998 | $ | 25,252 | |||||||||
Income before income taxes | 4,719 | 7,733 | 6,766 | 9,051 | |||||||||||||
Net income | 2,833 | 4,879 | 4,319 | 5,860 | |||||||||||||
Basic earnings per common share | 0.39 | 0.66 | 0.59 | 0.8 | |||||||||||||
Diluted earnings per common share | 0.38 | 0.65 | 0.57 | 0.76 | |||||||||||||
2012 | |||||||||||||||||
Revenues | $ | 17,864 | $ | 20,066 | $ | 18,941 | $ | 20,624 | |||||||||
Income before income taxes | 6,084 | 3,752 | 4,331 | 5,859 | |||||||||||||
Net income | 3,785 | 2,198 | 2,504 | 3,603 | |||||||||||||
Basic earnings per common share | 0.53 | 0.31 | 0.35 | 0.5 | |||||||||||||
Diluted earnings per common share | 0.52 | 0.3 | 0.34 | 0.49 | |||||||||||||
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Principles of consolidation | ' |
Principles of consolidation | |
The accompanying consolidated financial statements include the accounts of Westwood and its subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. | |
We assess each legal entity that we manage to determine whether consolidation is appropriate at the onset of the relationship. We first determine whether the entity is a voting interest entity (“VOE”), or a variable interest entity (“VIE”), under GAAP and then whether we have a controlling financial interest in the entity. Assessing whether an entity is a VOE or VIE and if it requires consolidation involves judgment and analysis. Factors considered in this assessment include, but are not limited to, the legal organization of the entity, our equity ownership and contractual involvement with the entity and any related party or de facto agent implications of our involvement with the entity. We reconsider whether entities are a VOE or VIE whenever contractual arrangements change, the entity receives additional equity or returns equity to its investors or changes in facts and circumstances occur that change the investors’ ability to direct the activities of the entity. | |
A VIE is an entity in which (i) the total equity investment at risk is not sufficient to enable the entity to finance its activities without subordinated financial support or (ii) the at-risk equity holders do not have the normal characteristics of a controlling financial interest. That is, the at-risk equity holders do not have the obligation to absorb losses, the right to receive residual returns and/or the right to direct the activities of the entity that most significantly impact the entity’s economic performance. An enterprise must consolidate all VIEs of which it is the primary beneficiary. We determine if a sponsored investment meets the definition of a VIE by considering whether the fund’s equity investment at risk is sufficient to finance its activities without additional subordinated financial support and whether the fund’s at-risk equity holders absorb any losses, have the right to receive residual returns and have the right to direct the activities of the entity most responsible for the entity’s economic performance. For VIEs that are investment companies, the primary beneficiary of the VIE is the party that absorbs a majority of the expected losses of the VIE, receives a majority of the expected residual returns of the VIE, or both. For VIEs that are not investment companies, the primary beneficiary of a VIE is defined as the party who, considering the involvement of related parties and de facto agents, has (i) the power to direct the activities of the VIE that most significantly affect its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. This evaluation is updated continuously. | |
A VOE is an entity that is not within the scope of the guidance for VIEs. Consolidation of a VOE is required when a reporting entity owns a controlling financial interest in a VOE. Ownership of a majority of the voting interests is the usual condition for a controlling financial interest. At December 31, 2013, none of our sponsored investment entities were VOEs subject to this assessment by the Company. | |
Westwood Investment Funds PLC (the “UCITS Fund”), which was authorized by the Central Bank of Ireland on June 18, 2013 pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, is an Ireland domiciled umbrella-type open-ended self-managed investment company. The UCITS Fund is established as an umbrella fund with segregated assets and liabilities between sub-funds. Notwithstanding the segregation of assets and liabilities within each sub-fund, the UCITS Fund is a single legal entity and no sub-fund constitutes a legal entity separate from the UCITS Fund itself. The Company’s first UCITS sub-fund is focused on Westwood’s Emerging Markets strategy. Shares of the sub-fund are listed on the Irish Stock Exchange, all of which are owned by the third-party investors. The base currency of the UCITS Fund is the British pound sterling. We determined that the UCITS Fund was a VIE as its at-risk equity holders do not have the ability to direct the activities of the UCITS Fund that most significantly impact the entity’s economic performance. Although the Company does not have an equity investment in the UCITS Fund, through its representatives having a majority control of the UCITS Fund’s Board of Directors its representatives can influence the UCITS Fund’s management and affairs. The UCITS Fund’s Board of Directors maintains this control through its duties, which are stated in the UCITS Fund’s Memorandum, and Articles of Association, which have no expiration date. We concluded that the Company was not the primary beneficiary of the UCITS Fund because even though it has the power to direct the activities of the UCITS Fund (that most significantly impact the fund’s economic performance), it does not absorb a majority of the UCITS Fund’s expected losses and does not receive a majority of the UCITS Fund’s expected residual returns. As a result, the results of the UCITS Fund are not included in the Company’s consolidated financial results. | |
We have also evaluated all of our other advisory relationships and our relationship as sponsor of the common trust funds to determine whether or not we qualify as the primary beneficiary based on whether there is an obligation to absorb the majority of expected losses or a right to receive the majority of residual returns. Since all losses and returns are distributed to the shareholders of the Westwood VIEs, we are not the primary beneficiary and consequently the Westwood VIEs are not included in our consolidated financial statements. We have included the disclosures related to VIEs in Note 12. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We believe the most significant estimates and assumptions are associated with the valuation of deferred taxes, stock-based compensation and impairment assessments of goodwill and intangible assets. Actual results could differ from those estimates. | |
Revenue Recognition | ' |
Revenue Recognition | |
Investment advisory and trust fees are recognized as services are provided. These fees are determined in accordance with contracts between our subsidiaries and their clients and are generally based on a percentage of assets under management. A limited number of our clients have contractual performance-based fee arrangements, which would pay us an additional fee if we outperform a specified index over a specific period of time. We record revenue for performance-based fees at the end of the measurement period. Most advisory and trust fees are payable in advance or in arrears on a calendar quarterly basis. Advance payments are deferred and recognized over the periods services are performed. Since billing periods for most of our advance paying clients coincide with the calendar quarter to which payment relates, revenue is fully recognized within the quarter. Consequently no significant amount of deferred revenue is contained in our consolidated financial statements. Deferred revenue is shown on the consolidated balance sheets under the heading of “Accounts payable and accrued liabilities”. Other revenues generally consist of interest and investment income and are recognized as earned. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of short-term, highly liquid investments with maturities of three months or less, other than pooled investment vehicles that are considered investments. We maintain some cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation insurance limits. The Company has not experienced losses on uninsured cash accounts. | |
Accounts Receivable | ' |
Accounts Receivable | |
Accounts receivable represents balances arising from services provided to customers and are recorded on an accrual basis, net of any allowance for doubtful accounts. Accounts receivable are written off when they are determined to be uncollectible. Any allowance for doubtful accounts is estimated based on the Company’s historical amounts written off, existing conditions in the industry, and the financial stability of the customer. The majority of our accounts receivable balances consist of advisory and trust fees receivable from customers that we believe and have experienced to be fully collectible. Accordingly our consolidated financial statements do not include an allowance for bad debt or any bad debt expense. | |
Investments | ' |
Investments | |
Class A shares of Teton Advisors, Inc. (“Teton shares”), which we sold during 2012, were classified as available for sale. The Teton shares were carried at quoted market value less a 25% discount for lack of marketability. Unrealized gains and losses on the Teton shares were recorded through other comprehensive income. All other marketable securities are classified as trading securities and are carried at quoted market values on the accompanying consolidated balance sheets. Net unrealized holding gains or losses on investments classified as trading securities are reflected as a component of other revenues. We measure realized gains and losses on investments using the specific identification method. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
We determined the estimated fair values of our financial instruments using available information. The fair value amounts discussed in Notes 4 and 5 are not necessarily indicative of either the amounts realizable upon disposition of these instruments or our intent or ability to dispose of these assets. The estimated fair value of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable, dividends payable, income taxes payable and accrued liabilities, approximates their carrying value due to their short-term maturities and are classified as level 1 fair value measurements. The carrying amount of investments designated as “trading” securities, primarily U.S. Government and Government agency obligations, money market funds, Westwood Funds ™ mutual funds and Westwood Trust common trust fund shares, equals fair value based on prices quoted in active markets and, with respect to funds, the reported net asset value of the shares held. Market values of our money market holdings generally do not fluctuate. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment are stated at cost less accumulated depreciation. Depreciation of furniture and equipment is provided over the estimated useful lives of the assets (from 3 to 11 years), and depreciation on leasehold improvements is provided over the lesser of the estimated useful life or lease term using the straight-line method. We capitalize leasehold improvements, furniture and fixtures, computer hardware and most office equipment purchases. | |
Goodwill and Other Intangible Assets | ' |
Goodwill and Other Intangible Assets | |
Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Goodwill is not amortized but is tested at least annually for impairment. | |
We test more frequently if indicators are present or changes in circumstances suggest that impairment may exist. These indicators include, among others, declines in sales, earnings or cash flows, or the development of a material adverse change in the business climate. We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. We have identified two reporting units, which are consistent with our reporting segments: Advisory and Trust. The Company is not required to calculate the fair value of a reporting unit unless the Company determines that it is more likely than not that its fair value is less than the carrying amount. The Company assesses goodwill for impairment using a qualitative assessment which includes consideration of the current trends in the industry in which the Company operates, macroeconomic conditions, recent financial performance of the Company’s reporting units and a market multiple approach valuation. In performing the annual impairment test, which is performed during the third quarter or more frequently when impairment indicators exist and after assessing the qualitative factors, we may be required to utilize the two-step approach prescribed by ASC 350 “Goodwill and Other Intangible Assets”. The first step requires a comparison of each reporting unit’s carrying value to the fair value of the respective unit. If the carrying value exceeds the fair value, a second step is performed to measure the amount of impairment loss, if any. The fair value of each reporting unit is estimated, entirely or predominantly, using a market multiple approach. During the third quarter of 2013, we completed our annual goodwill impairment assessment and determined that no impairment loss was required. No impairments were recorded during any of the periods presented. | |
Our intangible assets represent the acquisition date fair value of the acquired client relationships, trade names and non-compete agreements and are reflected net of amortization. In valuing these assets, we made significant estimates regarding the useful lives, growth rates and potential attrition. We periodically review our intangible assets for events or circumstances that would indicate impairment. See Note 6. | |
Income Taxes | ' |
Income Taxes | |
We file a United States federal income tax return as a consolidated group for Westwood and its subsidiaries based in the US. We file a Canadian income tax return for Westwood International. Deferred income tax assets and liabilities are determined based on temporary differences between the financial statement and income tax bases of assets and liabilities as measured at enacted income tax rates. Deferred income tax expense is generally the result of changes in deferred tax assets and liabilities. Deferred taxes relate primarily to stock-based compensation expense and net operating losses at Westwood International. | |
We record net deferred tax assets to the extent we believe such assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of the net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. No valuation allowance has been recorded in our consolidated financial statements. | |
We recognize tax liabilities in accordance with ASC 740, Income Taxes, and we adjust these liabilities when our judgment changes as a result of the evaluation of new information. Because of the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which new information is available. At December 31, 2013 and 2012, the Company had not established any reserves for, nor recorded any unrecognized tax benefits related to, uncertain tax positions. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The ASU also requires presentation, either on the face of the statement where net income is presented or in the notes to the consolidated financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. However, such disclosure is only required if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety to net income, an entity should cross-reference to other disclosures that provide additional detail about those amounts. For public entities, the ASU is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have an impact on our consolidated financial statements. | |
In March 2013, the FASB issued ASU 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The ASU clarifies the interaction between ASC 810-10, Consolidation – Overall, and ASC 830-30, Foreign Currency Matters – Translation of Financial Statement, when releasing the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not currently expect the adoption of this ASU to have an impact on our consolidated financial statements. | |
In June 2013, the FASB issued ASU 2013-08, Financial Services - Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The ASU changes the approach to the investment company assessment in Topic 946, clarifying the characteristics of an investment company and provides comprehensive guidance for assessing whether an entity is an investment company. This update would also require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting and to include additional disclosures. The ASU is effective for reporting periods beginning after December 15, 2013. Although this update is relevant to our VIE analysis, we do not currently expect the adoption of this ASU to have an impact on our consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendment is effective prospectively for fiscal years (and interim periods within those years) beginning after December 15, 2013 and is not expected to have a material impact on our consolidated financial statements. | |
Currency Translation | ' |
Currency Translation | |
Assets and liabilities of Westwood International, our non-U.S. dollar functional currency subsidiary, are translated at exchange rates as of applicable reporting dates. Revenues and expenses are translated at average exchange rates during the periods indicated. The gains and losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are recorded through other comprehensive income. | |
Long-term Compensation Agreements | ' |
Long-term Compensation Agreements | |
We entered into employment agreements with certain employees of Westwood International that provide for specified payments over four years. In certain circumstances, these payments would be forfeited to us if the employment of these individuals is terminated before completion of the contractual earning period. Payments made in advance under these agreements are included in “Other current assets” on our Consolidated Balance Sheets, net of amounts already amortized. | |
Stock Based Compensation | ' |
Stock-Based Compensation | |
We account for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) No. 718, Compensation-Stock Compensation (“ASC 718”). Under ASC 718, stock-based compensation expense reflects the fair value of stock-based awards measured at grant date, is recognized over the relevant service period, and is adjusted each period for anticipated forfeitures. | |
We have issued restricted stock and stock options in accordance with our Third Amended and Restated Westwood Holdings Group, Inc. Stock Incentive Plan (the “Plan”). We apply judgment in developing an expectation of awards of restricted stock that may be forfeited. If actual experience differs significantly from these estimates, stock-based compensation expense and our results of operations could be materially affected. | |
We have compensation arrangements with certain employees of Westwood International pursuant to which these employees are able to earn cash awards based on the performance of certain investment products. A portion of such awards may be paid in shares of our stock that vest over a multi-year period. We accrue a liability for these awards over both the annual period in which we determine it is probable that the award will be earned and, for the portion to be settled in shares, over the following three-year vesting period. For the years ended December 31, 2013, 2012 and 2011, the expense recorded for these awards was $344,000, $124,000 and $0, respectively. Cash awards expected to be settled in shares are funded into a trust pursuant to an established Canadian employee benefit plan. Generally, the Canadian trust subsequently acquires Westwood common shares in market transactions and holds such shares until the shares are vested and distributed, or forfeited. Shares held in the trust are shown on our consolidated balance sheet as treasury shares. During the second quarter of 2013, the trust purchased 20,251 Westwood common shares in the open market for approximately $878,000. Until shares are acquired by the trust, we measure the liability as a cash based award, which is included in “Compensation and benefits payable” on our consolidated balance sheets. When the number of shares related to an award is determinable, the award becomes an equity award accounted for similar to restricted stock, which is described in Note 10. | |
Tax benefits realized upon the vesting of restricted shares that are in excess of the expense previously recognized for reporting purposes are recorded in stockholder’s equity and reflected as a financing activity in our Consolidated Statements of Cash Flows. If the tax benefit upon vesting is less than the expense previously recorded, the shortfall is recorded in stockholder’s equity. If the shortfall exceeds available windfall benefits in equity, they are recorded in our Consolidated Statements of Comprehensive Income and as an operating activity on our Consolidated Statements of Cash Flows. |
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Investment Balances | ' | |||||||||||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | ||||||||||||||
December 31, 2013: | ||||||||||||||||
U.S. Government and Government agency obligations | $ | 42,595 | $ | 16 | $ | — | $ | 42,611 | ||||||||
Money market funds | 8,584 | — | — | 8,584 | ||||||||||||
Equity funds | 2,130 | 200 | (54 | ) | 2,276 | |||||||||||
Fixed income funds | 10,984 | 99 | — | 11,083 | ||||||||||||
Marketable securities | $ | 64,293 | $ | 315 | $ | (54 | ) | $ | 64,554 | |||||||
Cost | Gross | Gross | Estimated | |||||||||||||
Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | ||||||||||||||
December 31, 2012: | ||||||||||||||||
U.S. Government and Government agency obligations | $ | 42,588 | $ | 1 | $ | — | $ | 42,589 | ||||||||
Money market funds | 1,856 | — | — | 1,856 | ||||||||||||
Equity funds | 4,401 | 519 | — | 4,920 | ||||||||||||
Fixed income funds | 10,468 | 73 | — | 10,541 | ||||||||||||
Marketable securities | $ | 59,313 | $ | 593 | $ | — | $ | 59,906 | ||||||||
Other Revenue | ' | |||||||||||||||
The following amounts, except for income tax amounts, are included in our consolidated statements of comprehensive income under the heading “Other revenues” for the years indicated (in thousands): | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Realized gains | $ | 629 | $ | 2,467 | $ | 407 | ||||||||||
Realized losses | -4 | (13 | ) | (182 | ) | |||||||||||
Net realized gains/(losses) | 625 | 2,454 | 225 | |||||||||||||
Income tax expense from gains | 225 | 891 | 82 | |||||||||||||
Interest income – trading | 28 | 27 | 61 | |||||||||||||
Dividend income | 541 | 514 | 221 | |||||||||||||
Unrealized gains/(losses) | (325 | ) | 344 | (291 | ) | |||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Values of Assets Within Fair Value Hierarchy | ' | |||||||||||||||
The following table summarizes the values of our assets as of the dates indicated within the fair value hierarchy (in thousands). | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
As of December 31, 2013 | ||||||||||||||||
Investments in securities: | ||||||||||||||||
Trading | $ | 64,554 | $ | — | $ | — | $ | 64,554 | ||||||||
Total Financial instruments | $ | 64,554 | $ | — | $ | — | $ | 64,554 | ||||||||
As of December 31, 2012 | ||||||||||||||||
Investments in securities: | ||||||||||||||||
Trading | $ | 55,389 | $ | 4,517 | $ | — | $ | 59,906 | ||||||||
Total Financial instruments | $ | 55,389 | $ | 4,517 | $ | — | $ | 59,906 | ||||||||
Investments in Available for Sale Securities | ' | |||||||||||||||
We sold all of our 200,000 Class A shares of Teton Advisors, Inc. in 2012. Prior to disposition, we used level 3 inputs to determine their fair value. The following table presents information regarding this investment. | ||||||||||||||||
For the years ended | ||||||||||||||||
Investments in available-for-sale securities (in thousands) | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | — | $ | 2,999 | ||||||||||||
Proceeds from sale | — | (1,900 | ) | |||||||||||||
Change in unrealized gains included in Other Comprehensive Income | — | (1,099 | ) | |||||||||||||
Ending balance | $ | — | $ | — | ||||||||||||
Acquisitions_Goodwill_and_Inta1
Acquisitions, Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Assets and Liabilities Acquired from McCarthy | ' | |||||||||||||||
The following tables present the assets and liabilities we acquired from McCarthy: | ||||||||||||||||
Amount | ||||||||||||||||
($ thousands) | ||||||||||||||||
Goodwill: | ||||||||||||||||
Other goodwill | $ | 6,875 | ||||||||||||||
Assembled workforce | 491 | |||||||||||||||
Total goodwill | $ | 7,366 | ||||||||||||||
Intangible assets: | ||||||||||||||||
Customer accounts | $ | 3,965 | ||||||||||||||
Trade name | 234 | |||||||||||||||
Non-compete agreements | 24 | |||||||||||||||
Total Intangible assets | $ | 4,223 | ||||||||||||||
Tangible assets | Amount | |||||||||||||||
($ thousands) | ||||||||||||||||
Cash | $ | 1,008 | ||||||||||||||
Receivables | 370 | |||||||||||||||
Property and equipment | 88 | |||||||||||||||
Prepaid expenses | 76 | |||||||||||||||
Bonuses payable | (753 | ) | ||||||||||||||
Unearned Income | (296 | ) | ||||||||||||||
Other liabilities | (101 | ) | ||||||||||||||
Net tangible assets | $ | 392 | ||||||||||||||
Changes in Goodwill | ' | |||||||||||||||
The changes in goodwill for the last two years were as follows (in thousands): | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning balance | $ | 11,255 | $ | 11,255 | ||||||||||||
Acquired goodwill | — | — | ||||||||||||||
Ending balance | $ | 11,255 | $ | 11,255 | ||||||||||||
Summary of Intangible Assets | ' | |||||||||||||||
The following is a summary of intangible assets at December 31, 2013 and 2012 (in thousands, except years): | ||||||||||||||||
Weighted | Gross | Accumulated | Net | |||||||||||||
Average | Carrying | Amortization | Carrying | |||||||||||||
Amortization | Amount | Amount | ||||||||||||||
Period | ||||||||||||||||
(years) | ||||||||||||||||
2013 | ||||||||||||||||
Client relationships | 14.2 | $ | 5,005 | $ | -1,216 | $ | 3,789 | |||||||||
Trade names | 2 | 256 | -256 | — | ||||||||||||
Non-compete agreements | 2.3 | 26 | -26 | — | ||||||||||||
Total | $ | 5,287 | $ | -1,498 | $ | 3,789 | ||||||||||
2012 | ||||||||||||||||
Client relationships | 14.2 | $ | 5,005 | $ | (857 | ) | $ | 4,148 | ||||||||
Trade names | 2 | 256 | (256 | ) | — | |||||||||||
Non-compete agreements | 2.3 | 26 | (25 | ) | 1 | |||||||||||
Total | $ | 5,287 | $ | (1,138 | ) | $ | 4,149 | |||||||||
Estimated Amortization Expense for Intangible Assets for the Next Five Years | ' | |||||||||||||||
Estimated amortization expense for the intangible assets for the next five years is as follows (in thousands): | ||||||||||||||||
Estimated | ||||||||||||||||
Amortization | ||||||||||||||||
Expense | ||||||||||||||||
For the Year ending December 31, | ||||||||||||||||
2014 | $ | 359 | ||||||||||||||
2015 | 359 | |||||||||||||||
2016 | 359 | |||||||||||||||
2017 | 359 | |||||||||||||||
2018 | 359 | |||||||||||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property and Equipment | ' | |||||||
The following table reflects information about our property and equipment as of December 31, 2013 and 2012 (in thousands): | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Leasehold improvements cost | $ | 2,068 | $ | 1,321 | ||||
Furniture and fixtures cost | 1,453 | 1,450 | ||||||
Computer hardware and office equipment cost | 1,380 | 1,121 | ||||||
Accumulated depreciation | (2,155 | ) | (1,747 | ) | ||||
Net property and equipment | $ | 2,746 | $ | 2,145 | ||||
Components of Accumulated Other Comprehensive Income | ' | |||||||
The components of accumulated other comprehensive income were as follows (in thousands): | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Foreign currency translation adjustment | $ | (257 | ) | $ | 30 | |||
Accumulated other comprehensive income | $ | (257 | ) | $ | 30 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Provision | ' | |||||||||||
Income (loss) before income taxes by jurisdiction is as follows: | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 30,883 | $ | 26,850 | $ | 23,109 | ||||||
Canada | (2,614 | ) | (6,824 | ) | — | |||||||
Total | $ | 28,269 | $ | 20,026 | $ | 23,109 | ||||||
Difference between the Federal Corporate Tax Rate and the Effective Tax Rate | ' | |||||||||||
The difference between the Federal corporate tax rate and the effective tax rate is comprised of the following (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income tax provision computed at US federal statutory rate | $ | 9,894 | $ | 7,009 | $ | 8,088 | ||||||
Canadian rate differential | 222 | 580 | — | |||||||||
State and local income taxes, net of federal income taxes | 386 | 305 | 353 | |||||||||
Other, net | (124 | ) | 42 | (18 | ) | |||||||
Total income tax expense | $ | 10,378 | $ | 7,936 | $ | 8,423 | ||||||
Effective income tax rate | 36.7 | % | 39.6 | % | 36.4 | % | ||||||
Income Tax Provision (Benefit) as Set Forth in the Consolidated Statements of Income | ' | |||||||||||
Income tax provision (benefit) as set forth in the consolidated statements of comprehensive income consisted of the following components (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current taxes: | ||||||||||||
US Federal | $ | 10,683 | $ | 9,280 | $ | 7,944 | ||||||
State and local | 602 | 473 | 546 | |||||||||
Total | 11,285 | 9,753 | 8,490 | |||||||||
Deferred taxes: | ||||||||||||
State and local | (5 | ) | (2 | ) | (2 | ) | ||||||
US Federal | (210 | ) | (4 | ) | (65 | ) | ||||||
Non-US | (692 | ) | (1,811 | ) | — | |||||||
Total | (907 | ) | (1,817 | ) | (67 | ) | ||||||
Total income tax expense | $ | 10,378 | $ | 7,936 | $ | 8,423 | ||||||
Deferred Tax Assets and Deferred Tax Liabilities | ' | |||||||||||
The tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities are presented below (in thousands): | ||||||||||||
As of | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Restricted stock amortization | $ | 4,196 | $ | 3,903 | ||||||||
Net operating loss | 2,244 | 1,818 | ||||||||||
Deferred rent | 204 | 173 | ||||||||||
Other | 97 | 19 | ||||||||||
Total deferred tax assets | 6,741 | 5,913 | ||||||||||
2013 | 2012 | |||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | (390 | ) | (391 | ) | ||||||||
Intangibles | (449 | ) | (253 | ) | ||||||||
Unrealized gains on investments | (79 | ) | (211 | ) | ||||||||
Total deferred tax liabilities | (918 | ) | (855 | ) | ||||||||
Net deferred tax assets | $ | 5,823 | $ | 5,058 | ||||||||
Net Deferred Tax Assets and Liabilities are Reflected on Our Balance Sheet | ' | |||||||||||
Net deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Net current deferred tax asset | $ | 3,782 | $ | 3,362 | ||||||||
Net current deferred tax liabilities | — | — | ||||||||||
Net current deferred tax assets reflected on the balance sheets | 3,782 | 3,362 | ||||||||||
Net non-current deferred tax assets | 2,275 | 2,552 | ||||||||||
Net non-current deferred tax liabilities | (234 | ) | (856 | ) | ||||||||
Net non-current deferred tax assets reflected on the balance sheets | 2,041 | 1,696 | ||||||||||
Total net deferred tax assets | $ | 5,823 | $ | 5,058 | ||||||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Total Expense Recorded for Stock Based Compensation | ' | |||||||||||
The following table presents the total stock-based compensation expense recorded and the total income tax benefit recognized for stock-based compensation arrangements for the years indicated (in thousands): | ||||||||||||
For the years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Service condition restricted stock expense | $ | 7,602 | $ | 7,546 | $ | 7,632 | ||||||
Performance-based restricted stock expense | 3,758 | 2,969 | 2,337 | |||||||||
Restricted stock expense under the Plan | 11,360 | 10,515 | 9,969 | |||||||||
Canada EB Plan restricted stock expense | 235 | — | — | |||||||||
Total stock based compensation expense | $ | 11,595 | $ | 10,515 | $ | 9,969 | ||||||
Total income tax benefit recognized related to stock-based compensation | $ | 4,382 | $ | 4,230 | $ | 3,872 | ||||||
Profit Sharing and 401(k) Contributions for the Periods | ' | |||||||||||
The following table displays our profit sharing and 401(k) contributions for the periods presented (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Profit sharing contributions | $ | 674 | $ | 648 | $ | 582 | ||||||
401(k) matching contributions | 871 | 744 | 707 | |||||||||
Service condition restricted stock expense | ' | |||||||||||
Status and Changes in Restricted Stock Grants that Subject to Service Condition | ' | |||||||||||
The following table details the status and changes in our restricted stock grants that are subject only to a service condition for the year ended December 31, 2013: | ||||||||||||
Shares | Weighted Average | |||||||||||
Grant Date Fair | ||||||||||||
Value | ||||||||||||
Restricted shares subject only to a service condition: | ||||||||||||
Non-vested, January 1, 2013 | 560,025 | $ | 37.52 | |||||||||
Granted | 205,624 | 43.68 | ||||||||||
Vested | (210,980 | ) | 35.87 | |||||||||
Forfeited | (43,609 | ) | 39.73 | |||||||||
Non-vested, December 31, 2013 | 511,060 | 40.49 | ||||||||||
Weighted-Average Grant Date Fair Value for Shares Granted and the Total Fair Value of Shares Vested | ' | |||||||||||
The following table shows the weighted-average grant date fair value for shares granted and the total fair value of shares vested during the years indicated: | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Restricted shares subject only to a service condition: | ||||||||||||
Weighted-average grant date fair value | $ | 43.68 | $ | 39.26 | $ | 36.64 | ||||||
Fair value of shares vested (in thousands) | $ | 7,568 | $ | 8,115 | $ | 7,380 | ||||||
Performance - based restricted stock expense | ' | |||||||||||
Status and Changes in Restricted Stock Grants that Subject to Service Condition | ' | |||||||||||
Shares | Weighted Average | |||||||||||
Grant Date Fair | ||||||||||||
Value | ||||||||||||
Restricted shares subject to service and performance conditions: | ||||||||||||
Non-vested, January 1, 2013 | 230,000 | $ | 39.49 | |||||||||
Granted | 90,000 | 43.85 | ||||||||||
Vested | (93,000 | ) | 40.41 | |||||||||
Forfeited | — | — | ||||||||||
Non-vested, December 31, 2013 | 227,000 | $ | 40.84 | |||||||||
Weighted-Average Grant Date Fair Value for Shares Granted and the Total Fair Value of Shares Vested | ' | |||||||||||
The following table shows the weighted-average grant date fair value for shares granted and the total fair value of shares vested during the years indicated: | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Restricted shares subject to a service and performance condition: | ||||||||||||
Weighted-average grant date fair value | $ | 43.85 | $ | 39.31 | $ | — | ||||||
Fair value of shares vested (in thousands) | $ | 3,758 | $ | 3,068 | $ | 3,107 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Computation of Basic and Diluted Shares | ' | |||||||||||
The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts): | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income | $ | 17,891 | $ | 12,090 | $ | 14,686 | ||||||
Weighted average shares outstanding – basic | 7,331,874 | 7,145,701 | 6,970,382 | |||||||||
Dilutive potential shares from unvested restricted shares | 311,177 | 189,269 | 204,957 | |||||||||
Dilutive contingently issuable shares | — | — | 17,607 | |||||||||
Dilutive potential shares from stock options | — | 3,134 | 15,569 | |||||||||
Weighted average shares outstanding – diluted | 7,643,051 | 7,338,104 | 7,208,515 | |||||||||
Earnings per share: | ||||||||||||
Basic | $ | 2.44 | $ | 1.69 | $ | 2.11 | ||||||
Diluted | $ | 2.34 | $ | 1.65 | $ | 2.04 | ||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Variable Interest Entities | ' | |||||||||||
The following table displays the assets under management, amount of corporate money invested that are included in “Investments, at fair value” on the consolidated balance sheets, and the risk of loss in each vehicle (in millions): | ||||||||||||
As of December 31, 2013 | ||||||||||||
Assets | Corporate | Risk | ||||||||||
Under | Investment | of | ||||||||||
Management | Loss | |||||||||||
Westwood Funds ™ | $ | 2,784 | $ | 13.4 | $ | 13.4 | ||||||
Common Trust Funds | 2,647 | — | — | |||||||||
Collective Investment Trusts | 308 | — | — | |||||||||
LLCs | 155 | — | — | |||||||||
UCITS Fund | 1,386 | — | — | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Future Contractual Rental Payments for Non-Cancelable Operating Leases | ' | |||
At December 31, 2013, the future contractual rental payments for non-cancelable operating leases for each of the following five years and thereafter follow (in thousands): | ||||
Year ending: | ||||
2014 | $ | 1,422 | ||
2015 | 1,321 | |||
2016 | 1,342 | |||
2017 | 1,157 | |||
2018 | 1,003 | |||
Thereafter | 2,924 | |||
Total payments due | $ | 9,169 | ||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Intersegment Balances | ' | ||||||||||||||||||||
Advisory | Trust | Westwood | Eliminations | Consolidated | |||||||||||||||||
Holdings | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Net fee revenues from external sources | $ | 72,588 | $ | 18,367 | $ | — | $ | — | $ | 90,955 | |||||||||||
Net intersegment revenues | 10,402 | 14 | — | (10,416 | ) | — | |||||||||||||||
Net interest and dividend revenue | 568 | 1 | — | — | 569 | ||||||||||||||||
Other revenue | 301 | — | — | — | 301 | ||||||||||||||||
Total revenues | 83,859 | 18,382 | — | (10,416 | ) | 91,825 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Depreciation and amortization | 468 | 301 | — | — | 769 | ||||||||||||||||
Other operating expenses | 47,362 | 15,140 | 10,701 | (10,416 | ) | 62,787 | |||||||||||||||
Total expenses | 47,830 | 15,441 | 10,701 | (10,416 | ) | 63,556 | |||||||||||||||
Income (loss) before income taxes | 36,029 | 2,941 | (10,701 | ) | — | 28,269 | |||||||||||||||
Income tax expense (benefit) | 13,047 | 1,117 | (3,786 | ) | — | 10,378 | |||||||||||||||
Net income | $ | 22,982 | $ | 1,824 | $ | (6,915 | ) | $ | — | $ | 17,891 | ||||||||||
Segment assets | $ | 114,853 | $ | 14,190 | $ | — | $ | (13,023 | ) | $ | 116,020 | ||||||||||
Segment goodwill | $ | 5,219 | $ | 6,036 | $ | — | $ | — | $ | 11,255 | |||||||||||
Expenditures for long-lived assets | $ | 962 | $ | 239 | $ | — | $ | — | $ | 1,201 | |||||||||||
2012 | |||||||||||||||||||||
Net fee revenues from external sources | $ | 59,187 | $ | 14,969 | $ | — | $ | — | $ | 74,156 | |||||||||||
Net intersegment revenues | 5,858 | 16 | — | (5,874 | ) | — | |||||||||||||||
Net interest and dividend revenue | 539 | 2 | — | — | 541 | ||||||||||||||||
Other revenue | 2,798 | — | — | — | 2,798 | ||||||||||||||||
Total revenues | 68,382 | 14,987 | — | (5,874 | ) | 77,495 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Depreciation and amortization | 450 | 372 | — | — | 822 | ||||||||||||||||
Other operating expenses | 40,520 | 11,984 | 10,017 | (5,874 | ) | 56,647 | |||||||||||||||
Total expenses | 40,970 | 12,356 | 10,017 | (5,874 | ) | 57,469 | |||||||||||||||
Income (loss) before income taxes | 27,412 | 2,631 | (10,017 | ) | — | 20,026 | |||||||||||||||
Income tax expense (benefit) | 10,458 | 992 | (3,514 | ) | — | 7,936 | |||||||||||||||
Net income | $ | 16,954 | $ | 1,639 | $ | (6,503 | ) | $ | — | $ | 12,090 | ||||||||||
Segment assets | $ | 91,619 | $ | 13,657 | $ | — | $ | (8,661 | ) | $ | 96,615 | ||||||||||
Segment goodwill | $ | 5,219 | $ | 6,036 | $ | — | $ | — | $ | 11,255 | |||||||||||
Expenditures for long-lived assets | $ | 228 | $ | 36 | $ | — | $ | — | $ | 264 | |||||||||||
2011 | |||||||||||||||||||||
Net fee revenues from external sources | $ | 55,237 | $ | 13,453 | $ | — | $ | — | $ | 68,690 | |||||||||||
Net intersegment revenues | 4,624 | 17 | — | (4,641 | ) | — | |||||||||||||||
Net interest and dividend revenue | 280 | 2 | — | — | 282 | ||||||||||||||||
Other revenue | (67 | ) | 4 | — | — | (63 | ) | ||||||||||||||
Total revenues | 60,074 | 13,476 | — | (4,641 | ) | 68,909 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Depreciation and amortization | 386 | 376 | — | — | 762 | ||||||||||||||||
Other operating expenses | 28,598 | 11,112 | 9,969 | (4,641 | ) | 45,038 | |||||||||||||||
Total expenses | 28,984 | 11,488 | 9,969 | (4,641 | ) | 45,800 | |||||||||||||||
Income (loss) before income taxes | 31,090 | 1,988 | (9,969 | ) | — | 23,109 | |||||||||||||||
Income tax expense (benefit) | 11,112 | 765 | (3,454 | ) | — | 8,423 | |||||||||||||||
Net income | $ | 19,978 | $ | 1,223 | $ | (6,515 | ) | $ | — | $ | 14,686 | ||||||||||
Expenditures for long-lived assets | $ | 1,069 | $ | 362 | $ | — | $ | — | $ | 1,431 | |||||||||||
Revenues by Geographic Location | ' | ||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||
Analysis of revenues by geographic location of client: | |||||||||||||||||||||
U.S. | $ | 83,622 | $ | 73,255 | $ | 65,409 | |||||||||||||||
Canada | 5,567 | 2,542 | 1,598 | ||||||||||||||||||
Europe | 1,843 | 1,698 | 1,902 | ||||||||||||||||||
Australia | 793 | — | — | ||||||||||||||||||
Total | $ | 91,825 | $ | 77,495 | $ | 68,909 | |||||||||||||||
Property and Equipment, Net by Geographic Area | ' | ||||||||||||||||||||
As of | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||||||
Analysis of property and equipment, net by geographic area: | |||||||||||||||||||||
U.S. | $ | 2,102 | $ | 2,077 | |||||||||||||||||
Canada | 644 | 68 | |||||||||||||||||||
Total | $ | 2,746 | $ | 2,145 | |||||||||||||||||
Concentration_Tables
Concentration (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Concentration | ' | |||||||||||
No single customer accounted for 10% or more of our fee revenues in any of these years. | ||||||||||||
Years ended December 31, | ||||||||||||
(in thousands) | 2013 | 2012 | 2011 | |||||||||
Advisory fees from Westwood Management’s largest client: | ||||||||||||
Asset-based fees | $ | 1,729 | $ | 1,452 | $ | 1,772 | ||||||
Performance-based fees | 2,561 | 1,251 | 991 | |||||||||
Percent of fee revenue | 4.7 | % | 3.7 | % | 4 | % | ||||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Quarterly Results of Operations | ' | ||||||||||||||||
The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2013 and 2012 (in thousands, except per share amounts): | |||||||||||||||||
Quarter | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
2013 | |||||||||||||||||
Revenues | $ | 20,100 | $ | 23,475 | $ | 22,998 | $ | 25,252 | |||||||||
Income before income taxes | 4,719 | 7,733 | 6,766 | 9,051 | |||||||||||||
Net income | 2,833 | 4,879 | 4,319 | 5,860 | |||||||||||||
Basic earnings per common share | 0.39 | 0.66 | 0.59 | 0.8 | |||||||||||||
Diluted earnings per common share | 0.38 | 0.65 | 0.57 | 0.76 | |||||||||||||
2012 | |||||||||||||||||
Revenues | $ | 17,864 | $ | 20,066 | $ | 18,941 | $ | 20,624 | |||||||||
Income before income taxes | 6,084 | 3,752 | 4,331 | 5,859 | |||||||||||||
Net income | 3,785 | 2,198 | 2,504 | 3,603 | |||||||||||||
Basic earnings per common share | 0.53 | 0.31 | 0.35 | 0.5 | |||||||||||||
Diluted earnings per common share | 0.52 | 0.3 | 0.34 | 0.49 | |||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Details Textual) (USD $) | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' |
Discount percentage on shares are carried at quoted market value | ' | ' | 25.00% | ' | ' |
Cash and cash equivalents maturity period, maximum | ' | ' | 'three months or less | ' | ' |
Restricted shares granted to employees vesting period | ' | ' | '4 years | ' | ' |
Accrued liability | ' | ' | $344,000 | $124,000 | $0 |
Purchase of treasury stock, shares | 20,251 | ' | ' | ' | ' |
Purchase of treasury stock | 878,000 | ' | 4,667,000 | 3,796,000 | 5,957,000 |
Impairments recorded | ' | $0 | ' | ' | ' |
Furniture and Fixtures | Minimum | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives of the assets | ' | ' | '3 years | ' | ' |
Furniture and Fixtures | Maximum | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives of the assets | ' | ' | '11 years | ' | ' |
Leasehold Improvements | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' |
Estimated useful lives of the assets | ' | ' | 'lesser of the estimated useful life or lease term | ' | ' |
Westwood International Advisors Inc | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' |
Restricted shares granted to employees vesting period | ' | ' | '3 years | ' | ' |
Accounts_Receivable_Details_Te
Accounts Receivable (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounts Receivable (Textual) [Abstract] | ' | ' | ' |
Trust fees | $278,000 | $314,000 | $429,000 |
Investments_Details_Textual
Investments (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Investments (Textual) [Abstract] | ' |
Gain on sales of Investment | $1.90 |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Investment balances | ' | ' |
Cost | $64,293 | $59,313 |
Gross Unrealized Gains | 315 | 593 |
Gross Unrealized Losses | -54 | ' |
Estimated Fair Value | 64,554 | 59,906 |
U.S. Government and Government agency obligations | ' | ' |
Investment balances | ' | ' |
Cost | 42,595 | 42,588 |
Gross Unrealized Gains | 16 | 1 |
Gross Unrealized Losses | ' | ' |
Estimated Fair Value | 42,611 | 42,589 |
Money market funds | ' | ' |
Investment balances | ' | ' |
Cost | 8,584 | 1,856 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | ' | ' |
Estimated Fair Value | 8,584 | 1,856 |
Equity funds | ' | ' |
Investment balances | ' | ' |
Cost | 2,130 | 4,401 |
Gross Unrealized Gains | 200 | 519 |
Gross Unrealized Losses | -54 | ' |
Estimated Fair Value | 2,276 | 4,920 |
Fixed income funds | ' | ' |
Investment balances | ' | ' |
Cost | 10,984 | 10,468 |
Gross Unrealized Gains | 99 | 73 |
Gross Unrealized Losses | ' | ' |
Estimated Fair Value | $11,083 | $10,541 |
Investments_Details_1
Investments (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other revenue | ' | ' | ' |
Realized gains | $629 | $2,467 | $407 |
Realized losses | -4 | -13 | -182 |
Net realized gains/(losses) | 625 | 2,454 | 225 |
Income tax expense from gains | 225 | 891 | 82 |
Interest income – trading | 28 | 27 | 61 |
Dividend income | 541 | 514 | 221 |
Unrealized gains/(losses) | ($325) | $344 | ($291) |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments in securities: | ' | ' |
Trading | $64,554 | $59,906 |
Fair Value, Measurements, Recurring | ' | ' |
Investments in securities: | ' | ' |
Trading | 64,554 | 59,906 |
Total Financial instruments | 64,554 | 59,906 |
Level 1 | Fair Value, Measurements, Recurring | ' | ' |
Investments in securities: | ' | ' |
Trading | 64,554 | 55,389 |
Total Financial instruments | 64,554 | 55,389 |
Level 2 | Fair Value, Measurements, Recurring | ' | ' |
Investments in securities: | ' | ' |
Trading | ' | 4,517 |
Total Financial instruments | ' | 4,517 |
Level 3 | Fair Value, Measurements, Recurring | ' | ' |
Investments in securities: | ' | ' |
Trading | ' | ' |
Total Financial instruments | ' | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details 1) (Equity Securities, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Securities | ' | ' |
Investments in available for sale securities | ' | ' |
Beginning balance | ' | $2,999 |
Proceeds from sale | ' | -1,900 |
Change in unrealized gains included in Other Comprehensive Income | ' | -1,099 |
Ending balance | ' | ' |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Details Textual) (Common Class A) | Dec. 31, 2012 |
Common Class A | ' |
Fair Value of Financial Instruments (Textual) [Abstract] | ' |
Number of Class A Shares | 200,000 |
Acquisitions_Goodwill_and_Inta2
Acquisitions, Goodwill and Intangible Assets (Details) (USD $) | Nov. 18, 2010 |
In Thousands, unless otherwise specified | |
Goodwill: | ' |
Other goodwill | $6,875 |
Assembled workforce | 491 |
Total goodwill | 7,366 |
Intangible assets: | ' |
Intangible assets | 4,223 |
Tangible assets | ' |
Cash | 1,008 |
Receivables | 370 |
Property and equipment | 88 |
Prepaid expenses | 76 |
Bonuses payable | -753 |
Unearned Income | -296 |
Other liabilities | -101 |
Net tangible assets | 392 |
Customer accounts | ' |
Intangible assets: | ' |
Intangible assets | 3,965 |
Trade name | ' |
Intangible assets: | ' |
Intangible assets | 234 |
Non-compete agreements | ' |
Intangible assets: | ' |
Intangible assets | $24 |
Acquisitions_Goodwill_and_Inta3
Acquisitions, Goodwill and Intangible Assets (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in goodwill | ' | ' |
Beginning balance | $11,255 | $11,255 |
Acquired goodwill | ' | ' |
Ending balance | $11,255 | $11,255 |
Acquisitions_Goodwill_and_Inta4
Acquisitions, Goodwill and Intangible Assets (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of intangible assets | ' | ' |
Gross Carrying Amount | $5,287 | $5,287 |
Accumulated Amortization | -1,498 | -1,138 |
Net Carrying Amount | 3,789 | 4,149 |
Client relationships | ' | ' |
Summary of intangible assets | ' | ' |
Weighted Average Amortization Period (years) | '14 years 2 months 12 days | '14 years 2 months 12 days |
Gross Carrying Amount | 5,005 | 5,005 |
Accumulated Amortization | -1,216 | -857 |
Net Carrying Amount | 3,789 | 4,148 |
Trade name | ' | ' |
Summary of intangible assets | ' | ' |
Weighted Average Amortization Period (years) | '2 years | '2 years |
Gross Carrying Amount | 256 | 256 |
Accumulated Amortization | -256 | -256 |
Non-compete agreements | ' | ' |
Summary of intangible assets | ' | ' |
Weighted Average Amortization Period (years) | '2 years 3 months 18 days | '2 years 3 months 18 days |
Gross Carrying Amount | 26 | 26 |
Accumulated Amortization | -26 | -25 |
Net Carrying Amount | ' | $1 |
Acquisitions_Goodwill_and_Inta5
Acquisitions, Goodwill and Intangible Assets (Details 3) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Estimated amortization expense for intangible assets for the next five years | ' |
2014 | $359 |
2015 | 359 |
2016 | 359 |
2017 | 359 |
2018 | $359 |
Acquisitions_Goodwill_and_Inta6
Acquisitions, Goodwill and Intangible Assets (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
Nov. 18, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 21, 2011 | |
Baxter Financial Corporation | |||||
Acquisitions, Goodwill And Intangible Assets (Textual) [Abstract] | ' | ' | ' | ' | ' |
Cash paid for acquisition | $5,000,000 | ' | ' | ' | $867,000 |
Number of shares issued for acquisition | 181,461 | ' | ' | ' | ' |
Purchase price of acquisition | 12,000,000 | ' | ' | ' | ' |
Total goodwill from acquisition | 7,366,000 | ' | ' | ' | ' |
Intangible assets from acquisition | 4,223,000 | ' | ' | ' | ' |
Net working capital and property and equipment | 400,000 | ' | ' | ' | ' |
Percentage of acquisition allocation | 7.00% | ' | ' | ' | ' |
Amortization expense | ' | $359,000 | $472,000 | $498,000 | ' |
Balance_Sheet_Components_Detai
Balance Sheet Components (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property and equipment | ' | ' |
Accumulated depreciation | ($2,155) | ($1,747) |
Net property and equipment | 2,746 | 2,145 |
Leasehold improvements cost | ' | ' |
Property and equipment | ' | ' |
Property and equipment cost | 2,068 | 1,321 |
Furniture and fixtures cost | ' | ' |
Property and equipment | ' | ' |
Property and equipment cost | 1,453 | 1,450 |
Computer hardware and office equipment cost | ' | ' |
Property and equipment | ' | ' |
Property and equipment cost | $1,380 | $1,121 |
Balance_Sheet_Components_Detai1
Balance Sheet Components (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Components of accumulated other comprehensive income | ' | ' |
Foreign currency translation adjustment | ($257) | $30 |
Accumulated other comprehensive income | ($257) | $30 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | $30,883 | $26,850 | $23,109 |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | -2,614 | -6,824 | ' |
Income before income taxes | $9,051 | $6,766 | $7,733 | $4,719 | $5,859 | $4,331 | $3,752 | $6,084 | $28,269 | $20,026 | $23,109 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Difference between the Federal corporate tax rate and the effective tax rate | ' | ' | ' |
Income tax provision computed at US federal statutory rate | $9,894 | $7,009 | $8,088 |
Canadian rate differential | 222 | 580 | ' |
State and local income taxes, net of federal income taxes | 386 | 305 | 353 |
Other, net | -124 | 42 | -18 |
Total income tax expense | $10,378 | $7,936 | $8,423 |
Effective income tax rate | 36.70% | 39.60% | 36.40% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current taxes: | ' | ' | ' |
US Federal | $10,683 | $9,280 | $7,944 |
State and local | 602 | 473 | 546 |
Total | 11,285 | 9,753 | 8,490 |
Deferred taxes: | ' | ' | ' |
State and local | -5 | -2 | -2 |
US Federal | -210 | -4 | -65 |
Non-US | -692 | -1,811 | ' |
Total | -907 | -1,817 | -67 |
Total income tax expense | $10,378 | $7,936 | $8,423 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Restricted stock amortization | $4,196 | $3,903 |
Net operating loss | 2,244 | 1,818 |
Deferred rent | 204 | 173 |
Other | 97 | 19 |
Total deferred tax assets | 6,741 | 5,913 |
Deferred tax liabilities: | ' | ' |
Property and equipment | -390 | -391 |
Intangibles | -449 | -253 |
Unrealized gains on investments | -79 | -211 |
Total deferred tax liabilities | -918 | -855 |
Net deferred tax assets | $5,823 | $5,058 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Net deferred tax assets and liabilities are reflected on our balance sheet | ' | ' |
Net current deferred tax asset | $3,782 | $3,362 |
Net current deferred tax liabilities | ' | ' |
Net current deferred tax assets reflected on the balance sheets | 3,782 | 3,362 |
Net non-current deferred tax assets | 2,275 | 2,552 |
Net non-current deferred tax liabilities | -234 | -856 |
Net non-current deferred tax assets reflected on the balance sheets | 2,041 | 1,696 |
Net deferred tax assets | $5,823 | $5,058 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes (Textual) [Abstract] | ' | ' | ' |
U.S. Federal corporate tax rate | 35.00% | ' | ' |
Penalties and interest | $0 | $0 | $135 |
Canadian net operating loss carryforwards | 8,500,000 | ' | ' |
Deferred tax assets | $2,200,000 | ' | ' |
Expiration period of net operating loss carryforwards | '2032 | ' | ' |
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CAD | USD ($) | |
Regulatory Capital Requirements (Textual) [Abstract] | ' | ' | ' |
Minimum capital requirement | ' | ' | $1,000,000 |
Excess from Minimum capital requirement | 12,000,000 | ' | ' |
Required combined cash and receivables | ' | 200,000 | ' |
Combined cash and receivables | $4,200,000 | 4,400,000 | ' |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Total expense recorded for stock based compensation | ' | ' | ' |
Total stock based compensation expense | $11,595 | $10,515 | $9,969 |
Total income tax benefit recognized related to stock-based compensation | 4,382 | 4,230 | 3,872 |
Service condition restricted stock expense | ' | ' | ' |
Total expense recorded for stock based compensation | ' | ' | ' |
Total stock based compensation expense | 7,602 | 7,546 | 7,632 |
Performance - based restricted stock expense | ' | ' | ' |
Total expense recorded for stock based compensation | ' | ' | ' |
Total stock based compensation expense | 3,758 | 2,969 | 2,337 |
Restricted Stock | ' | ' | ' |
Total expense recorded for stock based compensation | ' | ' | ' |
Total stock based compensation expense | 11,360 | 10,515 | 9,969 |
Canada E B Plan Restricted Stock Expense | ' | ' | ' |
Total expense recorded for stock based compensation | ' | ' | ' |
Total stock based compensation expense | $235 | ' | ' |
Employee_Benefits_Details_1
Employee Benefits (Details 1) (Service condition restricted stock expense, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Service condition restricted stock expense | ' | ' | ' |
Restricted shares subject only to a service condition: | ' | ' | ' |
Non-vested, January 1, 2013 | 560,025 | ' | ' |
Granted | 205,624 | ' | ' |
Vested | -210,980 | ' | ' |
Forfeited | -43,609 | ' | ' |
Non-vested, December 31, 2013 | 511,060 | 560,025 | ' |
Non-vested, January 1, 2013 | $37.52 | ' | ' |
Granted | $43.68 | $39.26 | $36.64 |
Vested | $35.87 | ' | ' |
Forfeited | $39.73 | ' | ' |
Non-vested, December 31, 2013 | $40.49 | $37.52 | ' |
Employee_Benefits_Details_2
Employee Benefits (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-average grant date fair value for shares granted and the total fair value of shares vested | ' | ' | ' |
Fair value of shares vested (in thousands) | $5,758,000 | ' | ' |
Service condition restricted stock expense | ' | ' | ' |
Weighted-average grant date fair value for shares granted and the total fair value of shares vested | ' | ' | ' |
Weighted-average grant date fair value | $43.68 | $39.26 | $36.64 |
Fair value of shares vested (in thousands) | $7,568,000 | $8,115,000 | $7,380,000 |
Employee_Benefits_Details_3
Employee Benefits (Details 3) (Restricted shares subject to service and performance conditions, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted shares subject to service and performance conditions | ' | ' |
Restricted shares subject only to a service condition: | ' | ' |
Non-vested, January 1, 2013 | 230,000 | ' |
Granted | 90,000 | ' |
Vested | -93,000 | ' |
Forfeited | ' | ' |
Non-vested, December 31, 2013 | 227,000 | 230,000 |
Non-vested, January 1, 2013 | $39.49 | ' |
Granted | $43.85 | $39.31 |
Vested | $40.41 | ' |
Forfeited | ' | ' |
Non-vested, December 31, 2013 | $40.84 | $39.49 |
Employee_Benefits_Details_4
Employee Benefits (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Weighted-average grant date fair value for shares granted and the total fair value of shares vested | ' | ' | ' |
Fair value of shares vested (in thousands) | $5,758,000 | ' | ' |
Restricted shares subject to service and performance conditions | ' | ' | ' |
Weighted-average grant date fair value for shares granted and the total fair value of shares vested | ' | ' | ' |
Weighted-average grant date fair value | $43.85 | $39.31 | ' |
Fair value of shares vested (in thousands) | $3,758,000 | $3,068,000 | $3,107,000 |
Employee_Benefits_Details_5
Employee Benefits (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Profit sharing and 401(k) contributions for the periods | ' | ' | ' |
Profit sharing contributions | $674 | $648 | $582 |
401(k) matching contributions | $871 | $744 | $707 |
Employee_Benefits_Details_Text
Employee Benefits (Details Textual) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Feb. 28, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Savings Plan | Mutual Fund | Other Senior Officers | Chief Executive Officer | Canada E B Plan Restricted Stock Expense | Restricted Stock | Restricted Stock | Restricted Stock | Stock Options | Performance Based Restricted Share Grants | Westwood International Advisors Inc | Westwood International Advisors Inc | Westwood International Advisors Inc | Westwood Holdings | Westwood Holdings | Westwood Holdings | ||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Canada E B Plan Restricted Stock Expense | Canada E B Plan Restricted Stock Expense | USD ($) | USD ($) | USD ($) | ||||||||||||
USD ($) | CAD | |||||||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of shares that may be issued under the stock based compensation Plan (including predecessor plans to the Plan) | ' | ' | 3,898,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares remain available for issuance | ' | ' | 716,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 147,000 | 147,000 | ' | ' | ' |
Purchase of treasury stock, shares | ' | 20,251 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,251 | 20,251 | ' | ' | ' |
Fund purchases of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,400,000 | 10,000,000 | ' | ' | ' |
Share Price | ' | ' | $61.91 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $61.91 | ' | ' | ' | ' |
Remaining unrecognized compensation cost | ' | ' | 21,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' |
Remaining unrecognized compensation cost recognized over a remaining weighted average period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 6 months | ' | ' | ' | ' | ' | '2 years | '2 years | ' | ' | ' |
Number of vested shares from employees on the date vesting | ' | ' | 86,392 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted shares granted to employees vesting period | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '6 years | '3 years | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement by Share Based Payment Award Vesting Period Non Employee | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted pre-tax income | 27,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Growth Rate Period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compound annual growth | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non Recurring Performance Fee | ' | ' | ' | ' | ' | 8,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares which may become vested over the vesting period | ' | ' | ' | ' | ' | ' | ' | ' | 175,000 | 290,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the shares that vested | ' | ' | 5,758,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing price per shares that vested | ' | ' | $61.91 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $61.91 | ' | ' | ' | ' |
Period of option granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Restricted shares granted to employees vesting period | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '6 years | '3 years | ' | ' | ' | ' | ' |
Percentage of deferred share units vesting after two years of service | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of deferred share units vesting after three years of service | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of deferred share units vesting after four years of service | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of deferred share units vesting after five years of service | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred share units, issued and outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,193 | ' | ' | ' | ' | ' | ' |
Weighted average grant date fair value of deferred share units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $61.91 | ' | ' | ' | ' | ' | ' |
Accrued liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71,000 | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of compensation | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mutual fund vesting period | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service period of mutual fund share incentive award | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense related to mutual fund share incentive awards | ' | ' | 11,595,000 | 10,515,000 | 9,969,000 | ' | ' | 1,800,000 | ' | ' | 235,000 | 11,360,000 | 10,515,000 | 9,969,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued liability | ' | ' | 1,900,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock outstanding at the beginning | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,250 | ' | ' |
Common stock weighted average exercise price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.90 | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 364,000 | 542,000 |
Cash received from the exercise of stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 210,000 | 287,000 |
Option intrinsic value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $384,000 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings per share (Textual) [Abstract] | ' | ' | ' |
Anti-dilutive restricted shares or options | 0 | 0 | 0 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Computation of basic and diluted shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $5,860 | $4,319 | $4,879 | $2,833 | $3,603 | $2,504 | $2,198 | $3,785 | $17,891 | $12,090 | $14,686 |
Weighted average shares outstanding – basic | ' | ' | ' | ' | ' | ' | ' | ' | 7,331,874 | 7,145,701 | 6,970,382 |
Dilutive potential shares from unvested restricted shares | ' | ' | ' | ' | ' | ' | ' | ' | 311,177 | 189,269 | 204,957 |
Dilutive contingently issuable shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,607 |
Dilutive potential shares from stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,134 | 15,569 |
Weighted average shares outstanding – diluted | ' | ' | ' | ' | ' | ' | ' | ' | 7,643,051 | 7,338,104 | 7,208,515 |
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $0.80 | $0.59 | $0.66 | $0.39 | $0.50 | $0.35 | $0.31 | $0.53 | $2.44 | $1.69 | $2.11 |
Diluted | $0.76 | $0.57 | $0.65 | $0.38 | $0.49 | $0.34 | $0.30 | $0.52 | $2.34 | $1.65 | $2.04 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details Textual) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | |
Number_of_Limited_Liability_Companies | |||||
Number_of_Limited_Partnership | |||||
Variable Interest Entities (Textual) [Abstract] | ' | ' | ' | ' | ' |
Number of limited liability companies in which some clients hold their investments | ' | ' | 10 | ' | ' |
Number of clients in which investment advisory services are provided | ' | ' | 2 | ' | ' |
Amount provided to the UCITS Fund for the sole purpose of meeting the minimum capital requirements | $405,750 | € 300,000 | ' | ' | ' |
Fee revenues from Westwood VIEs | ' | ' | $36,200,000 | $30,300,000 | $26,800,000 |
Variable_Interest_Entities_Det1
Variable Interest Entities (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Westwood Funds | ' |
Variable Interest Entities | ' |
Assets Under Management | $2,784 |
Corporate Investment | 13.4 |
Risk of Loss | 13.4 |
Common Trust Funds | ' |
Variable Interest Entities | ' |
Assets Under Management | 2,647 |
Collective Investment Trusts | ' |
Variable Interest Entities | ' |
Assets Under Management | 308 |
LLCs | ' |
Variable Interest Entities | ' |
Assets Under Management | 155 |
UCITS Fund | ' |
Variable Interest Entities | ' |
Assets Under Management | $1,386 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details Textual) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | CAD | USD ($) | USD ($) | First Lawsuit by AGF | Second Lawsuit by AGF | |
CAD | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Lawsuit Filing Date | ' | ' | ' | ' | 'On August 3, 2012, AGF Management Limited and AGF Investments Inc. (“AGFâ€) filed a lawsuit in the Ontario Superior Court of Justice against Westwood, certain Westwood employees and executive recruiting firm Warren International, LLC. | 'On November 6, 2012, AGF filed a second lawsuit against Westwood, Westwood Management and an employee of a Westwood subsidiary |
General damages | ' | 10,000,000 | ' | ' | ' | 5,000,000 |
Punitive damages, unspecified special damages, interest and costs | ' | ' | ' | ' | ' | 1,000,000 |
Commitments and Contingencies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Litigation counter claim for general damages | ' | 1,000,000 | ' | ' | ' | ' |
Litigation counter claim for special damages | ' | 10,000,000 | ' | ' | ' | ' |
Litigation counter claim for punitive damages | ' | 1,000,000 | ' | ' | ' | ' |
Percentage of defense costs which will be covered by by insurance | 50.00% | 50.00% | ' | ' | ' | ' |
Loss contingency, Receivables | 254,000 | ' | ' | ' | ' | ' |
Rental expense for facilities and equipment leases | $1,640,000 | ' | $1,258,000 | $979,000 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future contractual rental payments for non-cancelable operating leases | ' |
2014 | $1,422 |
2015 | 1,321 |
2016 | 1,342 |
2017 | 1,157 |
2018 | 1,003 |
Thereafter | 2,924 |
Total payments due | $9,169 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intersegment balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net fee revenues from external sources | ' | ' | ' | ' | ' | ' | ' | ' | $90,955 | $74,156 | $68,690 |
Net interest and dividend revenue | ' | ' | ' | ' | ' | ' | ' | ' | 569 | 541 | 282 |
Other revenue | ' | ' | ' | ' | ' | ' | ' | ' | 301 | 2,798 | -63 |
Total revenues | 25,252 | 22,998 | 23,475 | 20,100 | 20,624 | 18,941 | 20,066 | 17,864 | 91,825 | 77,495 | 68,909 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 769 | 822 | 762 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 62,787 | 56,647 | 45,038 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 63,556 | 57,469 | 45,800 |
Income (loss) before income taxes | 9,051 | 6,766 | 7,733 | 4,719 | 5,859 | 4,331 | 3,752 | 6,084 | 28,269 | 20,026 | 23,109 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 10,378 | 7,936 | 8,423 |
Net income | 5,860 | 4,319 | 4,879 | 2,833 | 3,603 | 2,504 | 2,198 | 3,785 | 17,891 | 12,090 | 14,686 |
Segment assets | 116,020 | ' | ' | ' | 96,615 | ' | ' | ' | 116,020 | 96,615 | ' |
Segment goodwill | 11,255 | ' | ' | ' | 11,255 | ' | ' | ' | 11,255 | 11,255 | 11,255 |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 1,201 | 264 | 1,431 |
Income (loss) before income taxes | 9,051 | 6,766 | 7,733 | 4,719 | 5,859 | 4,331 | 3,752 | 6,084 | 28,269 | 20,026 | 23,109 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 10,378 | 7,936 | 8,423 |
Operating Segments | Advisory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net fee revenues from external sources | ' | ' | ' | ' | ' | ' | ' | ' | 72,588 | 59,187 | 55,237 |
Net intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 10,402 | 5,858 | 4,624 |
Net interest and dividend revenue | ' | ' | ' | ' | ' | ' | ' | ' | 568 | 539 | 280 |
Other revenue | ' | ' | ' | ' | ' | ' | ' | ' | 301 | 2,798 | -67 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 83,859 | 68,382 | 60,074 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 468 | 450 | 386 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 47,362 | 40,520 | 28,598 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 47,830 | 40,970 | 28,984 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 36,029 | 27,412 | 31,090 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 13,047 | 10,458 | 11,112 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 22,982 | 16,954 | 19,978 |
Segment assets | 114,853 | ' | ' | ' | 91,619 | ' | ' | ' | 114,853 | 91,619 | ' |
Segment goodwill | 5,219 | ' | ' | ' | 5,219 | ' | ' | ' | 5,219 | 5,219 | ' |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 962 | 228 | 1,069 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 36,029 | 27,412 | 31,090 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 13,047 | 10,458 | 11,112 |
Operating Segments | Trust | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net fee revenues from external sources | ' | ' | ' | ' | ' | ' | ' | ' | 18,367 | 14,969 | 13,453 |
Net intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 16 | 17 |
Net interest and dividend revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | 2 |
Other revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 18,382 | 14,987 | 13,476 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 301 | 372 | 376 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 15,140 | 11,984 | 11,112 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 15,441 | 12,356 | 11,488 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,941 | 2,631 | 1,988 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 1,117 | 992 | 765 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 1,824 | 1,639 | 1,223 |
Segment assets | 14,190 | ' | ' | ' | 13,657 | ' | ' | ' | 14,190 | 13,657 | ' |
Segment goodwill | 6,036 | ' | ' | ' | 6,036 | ' | ' | ' | 6,036 | 6,036 | ' |
Expenditures for long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | 239 | 36 | 362 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,941 | 2,631 | 1,988 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,117 | 992 | 765 |
Corporate, Non-Segment | Westwood Holdings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 10,701 | 10,017 | 9,969 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 10,701 | 10,017 | 9,969 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -10,701 | -10,017 | -9,969 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -3,786 | -3,514 | -3,454 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | -6,915 | -6,503 | -6,515 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -10,701 | -10,017 | -9,969 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -3,786 | -3,514 | -3,454 |
Intersegment Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intersegment balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net intersegment revenues | ' | ' | ' | ' | ' | ' | ' | ' | -10,416 | -5,874 | -4,641 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | -10,416 | -5,874 | -4,641 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | -10,416 | -5,874 | -4,641 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | -10,416 | -5,874 | -4,641 |
Segment assets | ($13,023) | ' | ' | ' | ($8,661) | ' | ' | ' | ($13,023) | ($8,661) | ' |
Revenues_by_Geographic_Locatio
Revenues by Geographic Location (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $25,252 | $22,998 | $23,475 | $20,100 | $20,624 | $18,941 | $20,066 | $17,864 | $91,825 | $77,495 | $68,909 |
U.S | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 83,622 | 73,255 | 65,409 |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5,567 | 2,542 | 1,598 |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,843 | 1,698 | 1,902 |
Australia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | $793 | ' | ' |
Property_and_Equipment_Net_by_
Property and Equipment, Net by Geographic Area (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Net property and equipment | $2,746 | $2,145 |
U.S | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net property and equipment | 2,102 | 2,077 |
Canada | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net property and equipment | $644 | $68 |
Concentration_Details
Concentration (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Advisory fees from Westwood Management’s largest client: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisory fees from major client | $25,252 | $22,998 | $23,475 | $20,100 | $20,624 | $18,941 | $20,066 | $17,864 | $91,825 | $77,495 | $68,909 |
Percent of fee revenue | ' | ' | ' | ' | ' | ' | ' | ' | 13.70% | 12.60% | 14.30% |
Westwood Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisory fees from Westwood Management’s largest client: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of fee revenue | ' | ' | ' | ' | ' | ' | ' | ' | 4.70% | 3.70% | 4.00% |
Asset-based fees | Westwood Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisory fees from Westwood Management’s largest client: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisory fees from major client | ' | ' | ' | ' | ' | ' | ' | ' | 1,729 | 1,452 | 1,772 |
Performance-based fees | Westwood Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisory fees from Westwood Management’s largest client: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisory fees from major client | ' | ' | ' | ' | ' | ' | ' | ' | $2,561 | $1,251 | $991 |
Concentration_Details_Textual
Concentration (Details Textual) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Concentration (Textual) [Abstract] | ' | ' | ' |
Revenue accounted by major clients | 13.70% | 12.60% | 14.30% |
Threshold percentage | 10.00% | 10.00% | 10.00% |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (USD $) | Dec. 31, 2013 | Feb. 21, 2014 | Feb. 06, 2014 | Feb. 21, 2014 |
Subsequent Event | Subsequent Event | Subsequent Event | ||
Restricted stock | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Dividends declared per share | ' | ' | $0.44 | ' |
Dividends payable, date to be paid | ' | ' | 1-Apr-14 | ' |
Dividends payable, date of record | ' | ' | 14-Mar-14 | ' |
Restricted stock issued | ' | 168,804 | ' | ' |
Closing price per shares that vested | $61.91 | ' | ' | $58.88 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure - Quarterly Financial Data (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisory fees from major client | $25,252 | $22,998 | $23,475 | $20,100 | $20,624 | $18,941 | $20,066 | $17,864 | $91,825 | $77,495 | $68,909 |
Income (loss) before income taxes | 9,051 | 6,766 | 7,733 | 4,719 | 5,859 | 4,331 | 3,752 | 6,084 | 28,269 | 20,026 | 23,109 |
Net income | 5,860 | 4,319 | 4,879 | 2,833 | 3,603 | 2,504 | 2,198 | 3,785 | 17,891 | 12,090 | 14,686 |
Basic | $0.80 | $0.59 | $0.66 | $0.39 | $0.50 | $0.35 | $0.31 | $0.53 | $2.44 | $1.69 | $2.11 |
Diluted | $0.76 | $0.57 | $0.65 | $0.38 | $0.49 | $0.34 | $0.30 | $0.52 | $2.34 | $1.65 | $2.04 |
Total revenues | $25,252 | $22,998 | $23,475 | $20,100 | $20,624 | $18,941 | $20,066 | $17,864 | $91,825 | $77,495 | $68,909 |