Westwood Holdings Group Inc. (WHG, Financial) filed Quarterly Report for the period ended 2009-03-31.
Westwood is a well-established investment management company that has built a strong reputation of providing superior investment results with the highest level of client service. Westwood Holdings Group Inc. has a market cap of $287.1 million; its shares were traded at around $40.06 with a P/E ratio of 24.4 and P/S ratio of 6.2. The dividend yield of Westwood Holdings Group Inc. stocks is 3%.
Total Revenues. Our total revenues decreased by 10% to $8.2 million for the three months ended March 31, 2009 compared with $9.1 million for the three months ended March 31, 2008. Asset-based advisory fees decreased by 4% to $6.1 million for the three months ended March 31, 2009 compared with $6.4 million for the three months ended March 31, 2008, as a result of decreased average assets under management by Westwood Management due to the market depreciation of assets and the withdrawal of assets by certain clients, which was partially offset by inflows from new and existing clients. Trust fees decreased by 12% to $2.4 million for the three months ended March 31, 2009 compared with $2.7 million for the three months ended March 31, 2008, as a result of
decreased average assets under management by Westwood Trust due to market depreciation of assets and the withdrawal of assets by certain clients. Inflows from new and existing clients partially offset these decreases. Other revenues, which generally consist of interest and investment income, decreased by 2,936% to $(334,000) for the three months ended March 31, 2009 compared with $(11,000) for the three months ended March 31, 2008. Other revenues are presented net and decreased primarily due to an increase of $208,000 in net realized and unrealized losses on investments and a decrease of $115,000 in interest and dividend income due to lower interest rates as well as a shift into lower yielding U.S. Treasury Bills.
Employee Compensation and Benefits. Employee compensation and benefits costs generally consist of salaries, incentive compensation, equity based compensation expense and benefits. Employee compensation and benefits costs were $4.7 million for both the three months ended March 31, 2009 and the three months ended March 31, 2008. Restricted stock expense increased by approximately $274,000 due to additional employee restricted stock grants in February 2009, as well as the higher price at which these shares were granted compared to prior grants. Salary expense increased by approximately $187,000 due primarily to increased headcount. These increases were offset by decreased incentive compensation expense due to lower pretax income, decreased profit sharing expense and lower payroll taxes. We had 63 full-time employees as of March 31, 2009 compared to 55 full-time employees as of March 31, 2008.
During the three months ended March 31, 2009, cash flow provided by operating activities, principally our investment advisory business, was $1.6 million. The cash we generated from operations was supplemented by collections of receivables and partially offset by incentive compensation payments and the net purchase of trading securities. At March 31, 2009, we had working capital of $35.9 million. Cash flow used in investing activities during the three months ended March 31, 2009 of $84,000 was related to net purchases of investments and purchases of fixed assets. Cash flow used in financing activities during the three months ended March 31, 2009 of $2.5 million was due to cash dividends paid to our stockholders and the purchase of treasury shares. Those cash uses were partially offset by tax benefits from stock-based compensation.
We had cash and investments of $34.1 million as of March 31, 2009 and $31.7 million as of December 31, 2008. Dividends payable were $2.2 million and $2.1 million as of March 31, 2009 and December 31, 2008, respectively. We had no liabilities for borrowed money at March 31, 2009.
Read the The complete ReportWHG is in the portfolios of Third Avenue Management, John Keeley of Keeley Fund Management.
Westwood is a well-established investment management company that has built a strong reputation of providing superior investment results with the highest level of client service. Westwood Holdings Group Inc. has a market cap of $287.1 million; its shares were traded at around $40.06 with a P/E ratio of 24.4 and P/S ratio of 6.2. The dividend yield of Westwood Holdings Group Inc. stocks is 3%.
Highlight of Business Operations:
Assets under management decreased $267 million to $7.2 billion at March 31, 2009, compared with $7.5 billion at March 31, 2008. The average of beginning and ending assets under management for the first quarter of 2009 were $7.2 billion compared to $7.7 billion for the first quarter of 2008, a decrease of 6%. The decrease in period ending assets under management was principally due to market depreciation of assets under management and the withdrawal of assets by certain clients and was partially offset by asset inflows from new and existing clients. The following table sets forth Westwood Managements and Westwood Trusts assets under management as of March 31, 2009 and 2008:Total Revenues. Our total revenues decreased by 10% to $8.2 million for the three months ended March 31, 2009 compared with $9.1 million for the three months ended March 31, 2008. Asset-based advisory fees decreased by 4% to $6.1 million for the three months ended March 31, 2009 compared with $6.4 million for the three months ended March 31, 2008, as a result of decreased average assets under management by Westwood Management due to the market depreciation of assets and the withdrawal of assets by certain clients, which was partially offset by inflows from new and existing clients. Trust fees decreased by 12% to $2.4 million for the three months ended March 31, 2009 compared with $2.7 million for the three months ended March 31, 2008, as a result of
decreased average assets under management by Westwood Trust due to market depreciation of assets and the withdrawal of assets by certain clients. Inflows from new and existing clients partially offset these decreases. Other revenues, which generally consist of interest and investment income, decreased by 2,936% to $(334,000) for the three months ended March 31, 2009 compared with $(11,000) for the three months ended March 31, 2008. Other revenues are presented net and decreased primarily due to an increase of $208,000 in net realized and unrealized losses on investments and a decrease of $115,000 in interest and dividend income due to lower interest rates as well as a shift into lower yielding U.S. Treasury Bills.
Employee Compensation and Benefits. Employee compensation and benefits costs generally consist of salaries, incentive compensation, equity based compensation expense and benefits. Employee compensation and benefits costs were $4.7 million for both the three months ended March 31, 2009 and the three months ended March 31, 2008. Restricted stock expense increased by approximately $274,000 due to additional employee restricted stock grants in February 2009, as well as the higher price at which these shares were granted compared to prior grants. Salary expense increased by approximately $187,000 due primarily to increased headcount. These increases were offset by decreased incentive compensation expense due to lower pretax income, decreased profit sharing expense and lower payroll taxes. We had 63 full-time employees as of March 31, 2009 compared to 55 full-time employees as of March 31, 2008.
During the three months ended March 31, 2009, cash flow provided by operating activities, principally our investment advisory business, was $1.6 million. The cash we generated from operations was supplemented by collections of receivables and partially offset by incentive compensation payments and the net purchase of trading securities. At March 31, 2009, we had working capital of $35.9 million. Cash flow used in investing activities during the three months ended March 31, 2009 of $84,000 was related to net purchases of investments and purchases of fixed assets. Cash flow used in financing activities during the three months ended March 31, 2009 of $2.5 million was due to cash dividends paid to our stockholders and the purchase of treasury shares. Those cash uses were partially offset by tax benefits from stock-based compensation.
We had cash and investments of $34.1 million as of March 31, 2009 and $31.7 million as of December 31, 2008. Dividends payable were $2.2 million and $2.1 million as of March 31, 2009 and December 31, 2008, respectively. We had no liabilities for borrowed money at March 31, 2009.
Read the The complete ReportWHG is in the portfolios of Third Avenue Management, John Keeley of Keeley Fund Management.
