Westwood Holdings Group, Inc. Reports Third Quarter 2018 Results
Quarterly Dividend Increased 6%, Representing the 16th Consecutive Year of Increases
Dallas, TX, October 24, 2018 – Westwood Holdings Group, Inc. (NYSE: WHG) today reported third quarter 2018 earnings. Highlights from the quarter include:
Revenues of $29.9 million compared with $33.5 million in last year's third quarter and $32.8 million in the second quarter of this year.
Net income of $5.4 million compared with $4.1 million in last year's third quarter and $8.0 million in the second quarter of this year.
Our Emerging Markets and Emerging Markets SMid strategies delivered top decile peer rankings, and our LargeCap Value and Emerging Markets Plus strategies achieved top quartile peer rankings.
Nearly all of our U.S. Value and Emerging Markets strategies beat their primary benchmarks for the quarter.
At quarter-end, Westwood had $119.1 million in cash and short-term investments, stockholders’ equity of $164.7 million, and no debt.
Revenues of $29.9 million decreased $3.6 million from last year's third quarter on lower average assets under management resulting from net outflows and the sale of the Omaha-based component of our Private Wealth business. Revenues decreased $2.9 million from this year's second quarter on lower average assets under management and the recording of performance-based fees of $1.6 million in the second quarter.
Assets under management at September 30, 2018 totaled $20.8 billion compared to $23.6 billion at September 30, 2017 and $21.6 billion at June 30, 2018.
Third quarter net income of $5.4 million compared with $4.1 million in last year's third quarter. The current quarter benefited from lower compensation expenses after selling the Omaha-based component of our Private Wealth business and reductions in incentive compensation, offset by lower asset-based fees and higher information technology expenses as we continue to invest in our technology infrastructure. The prior year quarter was negatively impacted by a $2.5 million legal settlement charge, net of insurance recovery and taxes. Diluted earnings per share of $0.62 in the current quarter compared to $0.49 in the third quarter of 2017. Non-GAAP Economic Earnings increased from $9.0 million, or $1.07 per share, in last year's third quarter, to $9.5 million, or $1.11 per share, in the third quarter of 2018.
Third quarter net income of $5.4 million compared with $8.0 million in the second quarter, which benefited from higher asset-based fees, performance-based fees and foreign currency transaction gains. Diluted earnings per share for the third quarter of $0.62 compared to $0.94 for the second quarter. Non-GAAP Economic Earnings for the third quarter of $9.5 million, or $1.11 per share, compared to $12.2 million, or $1.43 per share, in the second quarter.
The following information was filed by Westwood Holdings Group Inc (WHG) on Wednesday, October 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: WHG CIK: 1165002 Form Type:10-Q Quarterly Report Accession Number: 0001165002-18-000064 Submitted to the SEC: Wed Oct 24 2018 5:06:15 PM EST Accepted by the SEC: Wed Oct 24 2018 Period: Sunday, September 30, 2018 Industry: Investment Advice