On May 1, 2024, Westwood Holdings Group Inc. (WHG, Financial) disclosed its financial results for the first quarter of 2024, revealing a consistent financial performance with comprehensive income standing at $2.3 million. This performance is notably higher compared to the $0.7 million recorded in the same quarter the previous year. The detailed earnings report can be accessed through their 8-K filing.
Westwood Holdings Group, known for its investment management and wealth management services, operates primarily through its Advisory and Trust segments, deriving the majority of its revenue from the United States. The company's advisory segment caters to a diverse clientele including corporate retirement plans and endowments, while the Trust segment provides essential trust and custodial services.
Quarterly Financial Highlights
The first quarter saw WHG achieving a revenue of $22.7 million, consistent with the previous year's same quarter, but slightly down from $23.2 million in the fourth quarter of 2023. The comprehensive income for this quarter was $2.3 million, a significant improvement from the $0.7 million reported in the first quarter of 2023. This increase was primarily due to a $2.3 million after-tax gain following a decrease in the fair value of contingent consideration related to the 2022 Salient acquisition.
Non-GAAP Economic Earnings were reported at $3.0 million, or $0.36 per share, showing a robust increase from $1.7 million, or $0.22 per share in the first quarter of the previous year. This metric provides a clearer picture of the company's operational performance by excluding certain non-cash and irregular items.
Operational and Strategic Developments
During the quarter, WHG made significant investments aimed at future growth, including the infrastructure necessary for launching Managed Investment Solutions later in the year. The firm also celebrated the successful listing of two ETFs in the second quarter, marking a strategic expansion in its product offerings. Assets under management and advisement reached a six-year high at $17.2 billion, underscoring the effectiveness of the firm's strategies.
"To promote future growth, significant investments were made during the quarter to facilitate the second quarter’s successful listing of two ETFs and to build necessary infrastructure to launch Managed Investment Solutions later this year," stated Brian Casey, Westwood’s CEO.
Financial Position and Future Outlook
As of March 31, 2024, WHG held $46.6 million in cash and short-term investments, slightly down from the end of the previous quarter. The firm remains debt-free with stockholders' equity totaling $121.8 million. Looking ahead, WHG declared a quarterly cash dividend of $0.15 per common share, payable on July 1, 2024, to stockholders of record as of June 3, 2024.
Westwood Holdings Group Inc. continues to navigate the complexities of the financial markets with a clear strategic direction and a strong focus on maintaining robust financial health. The firm's ability to consistently meet or exceed benchmarks in many of its product categories speaks to its operational effectiveness and strategic foresight.
For more detailed information about WHG's financial performance and strategic initiatives, interested parties are encouraged to join the earnings call or access the webcast through the links provided in the earnings release.
Explore the complete 8-K earnings release (here) from Westwood Holdings Group Inc for further details.
