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Westwood Holdings Group, Inc. Reports First Quarter 2016 Results

WHG, -1.27% today reported first quarter 2016 revenues of $29.1 million compared to revenues of $29.6 million in the first quarter of 2015. Asset-based advisory fees decreased $2.1 million due to lower average assets under management primarily related to asset depreciation, partially offset by asset inflows with higher average advisory fees. Trust fees increased $2.3 million related to Houston-based Woodway Financial Advisors - A Westwood Trust Company, which was acquired on April 1, 2015. Assets Under Management ("AUM") totaled $21.1 billion at March 31, 2016.

First quarter net income totaled $3.5 million compared with $5.6 million in the first quarter of 2015, primarily due to a $1.4 million decrease in advisory fees and a $0.5 million charge for one-time information technology implementation costs, both net of tax. Diluted earnings per share was $0.44 compared to $0.71 for the first quarter of 2015. Non-GAAP Economic Earnings for the quarter was $8.1 million versus $9.4 million in the prior year's first quarter. Non-GAAP Economic Earnings per share was $1.01 compared with $1.20 in the first quarter of 2015.

Highlights of our first quarter 2016 include:

  • Continued robust performance in our LargeCap and Income Opportunity strategies.
  • Strong performance rebound in our Emerging Markets strategies.
  • Broadly neutral asset flows in a difficult industry-wide environment for U.S. equity allocations.
  • Repurchased 93,053 shares of our common stock at an aggregate purchase price of $4.4 million.

Brian Casey, Westwood’s President & CEO, commented, “Market conditions were difficult for asset managers during the first quarter of 2016, and our revenues and net income were adversely affected by pressures in equity markets. We were pleased with the continued performance improvement of our flagship LargeCap Value product and the exceptional performance delivered by our Emerging Markets equity team. We believe firmly in the value of active investment management and the proven capabilities of our three investment teams. Our discipline and focus has served our clients well, especially during volatile market periods. We continue to make significant investments in people and systems in order to build an infrastructure capable of supporting a much larger, yet agile firm. Our recent firm-wide technology upgrade has resulted in greater mobility and accessibility while providing an advanced level of security for our clients.”

Westwood’s Board of Directors declared a quarterly cash dividend of $0.57 per common share, payable on July 1, 2016 to stockholders of record on June 10, 2016. At quarter-end, Westwood had $71.2 million in cash and investments, stockholders’ equity of $129.0 million, and no debt.

Economic Earnings and Economic EPS are non-GAAP performance measures and are explained and reconciled with the most comparable GAAP numbers in the attached tables.

Westwood will host a conference call to discuss first quarter 2016 results and other business matters at 4:30 p.m. Eastern time today. To join the conference call, dial 877-303-6235 (domestic and Canada) or 631-291-4837 (international). The conference call can also be accessed via our Investor Relations page at westwoodgroup.com and will be available for replay through May 4, 2016 by dialing 855-859-2056 (domestic and Canada) or 404-537-3406 (international) and then entering the passcode 85600842.

About Westwood

Westwood Holdings Group, Inc. provides investment management services to institutional investors, private wealth clients and financial intermediaries. With $21.1 billion in assets under management [*] , our firm offers a range of investment strategies including U.S. equities, Master Limited Partnerships (MLPs), Multi-Asset, Global and Emerging Markets equities, and Global Convertible securities portfolios. Access to these strategies is available through separate accounts, commingled funds, the Westwood Funds® family of mutual funds, and UCITS funds. Westwood benefits from significant, broad-based employee ownership and trades on the New York Stock Exchange under the symbol “WHG.” Based in Dallas, Westwood also maintains offices in Toronto, Boston, Omaha and Houston.

For more information on Westwood, please visit www.westwoodgroup.com.

For more information on the Westwood Funds®, please visit www.westwoodfunds.com.

*As of March 31, 2016

Forward-looking Statements

Statements in this press release that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including without limitation, words such as “anticipate,” “forecast,” “believe,” “plan,” “estimate,” “expect,” “intend,” “should,” “could,” “goal,” “may,” “target,” “designed,” “on track,” “comfortable with,” “optimistic” and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of...


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