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Westwood Holdings Group, Inc. Reports Second Quarter 2011 Results; Assets Under Management Increase 43% Year-over-year to Rec...
Westwood (NYSE:WHG)
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Today : Thursday 21 July 2011
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Westwood Holdings Group, Inc. (NYSE: WHG) today reported 2011 second quarter revenues of $18.9 million, net income of $3.7 million and earnings per diluted share of $0.52. This compares to revenues of $13.2 million, net income of $2.5 million and earnings per diluted share of $0.34 in the second quarter of 2010. The second quarter 2011 results include the impact of a performance-based fee of approximately $991,000. Economic Earnings were $6.7 million compared to $5.2 million for the second quarter of 2010. Economic Earnings per share (“Economic EPS”) were $0.94 per diluted share compared to $0.76 per diluted share for the second quarter of 2010. (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.)
Assets under management were $13.8 billion as of June 30, 2011, an increase of 43% compared to $9.7 billion as of June 30, 2010. The increase was primarily due to market appreciation of assets under management, the acquisition of McCarthy Group Advisors in November 2010 and asset inflows from new and existing clients, partially offset by the withdrawal of assets by certain clients. Mutual fund assets were $1.3 billion as of June 30, 2011, an increase of 98% compared to assets of $652 million as of June 30, 2010, driven by net asset inflows as well as market appreciation.
Brian Casey, Westwood’s President & CEO, commented, “While market volatility returned in the second quarter, our investment teams produced returns ahead of the corresponding benchmarks for most of the products we manage. We posted record assets under management and generated the highest level of quarterly revenue in our history. Our WHG Funds continue to attract strong net inflows resulting in an organic growth rate for the funds of greater than 50% over the last twelve months.”
Westwood’s Board of Directors declared a quarterly cash dividend of $0.35 per common share payable on October 3, 2011 to stockholders of record on September 15, 2011.
For the six months ended June 30, 2011, Westwood reported revenues of $35.9 million, net income of $7.3 million and earnings per diluted share of $1.01, compared to revenues of $26.4 million, net income of $5.4 million and earnings per diluted share of $0.74, for the same 2010 period. First half 2011 results include the impact of a performance-based fee of approximately $991,000. Economic Earnings for the six months ended June 30, 2011 were $12.8 million compared to $10.0 million for the same period in 2010, while Economic EPS for the six months ended June 30, 2011 were $1.79 per diluted share compared to $1.48 per diluted share for the same period in 2010.
Total expenses for the second quarter were $12.9 million compared with $9.3 million for the second quarter of 2010. Economic Expenses were $10.0 million compared with $6.6 million for the second quarter of 2010. (An explanation and reconciliation of Economic Expenses to total expenses is included in the attached tables.)
Westwood will host a conference call to discuss second quarter 2011 results and other business updates at 4:30 p.m. Eastern time today. To join the conference call, dial 866-337-6663 (domestic) or 904-520-5771 (international). The conference call can also be accessed at www.westwoodgroup.com under the Investor Relations tab and will be available for replay through July 27 by dialing 888-284-7564 (domestic) or 904-596-3174 (international) and entering passcode 2591371.
About Westwood
Westwood Holdings Group, Inc. manages investment assets and provides services for its clients through two subsidiaries, Westwood Management Corp. and Westwood Trust. Westwood Management Corp. is a registered investment advisor and provides investment advisory services to corporate pension funds, public retirement plans, endowments, foundations, the WHG Funds, other mutual funds, individuals and clients of Westwood Trust. Westwood Trust provides trust services and participation in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Holdings Group, Inc. trades on the New York Stock Exchange under the symbol “WHG.”
For more information on Westwood, please visit www.westwoodgroup.com.
For more information on the WHG Funds, please visit www.whgfunds.com.