2017 Q4 Form 10-Q Financial Statement

#000116500217000072 Filed on October 25, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q3
Revenue $33.91M $33.49M $31.78M
YoY Change 9.08% 5.4% -2.08%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $21.84M $3.617M $2.555M
YoY Change 17.42% 41.57% -1.5%
% of Gross Profit
Research & Development $2.290M $1.855M $1.874M
YoY Change 34.71% -1.01% 15.25%
% of Gross Profit
Depreciation & Amortization $740.0K $710.0K $730.0K
YoY Change 1.37% -2.74% 7.35%
% of Gross Profit
Operating Expenses $24.13M $5.472M $4.429M
YoY Change 18.93% 23.55% 4.95%
Operating Profit $5.752M
YoY Change
Interest Expense
YoY Change
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $9.788M $5.752M $9.053M
YoY Change -9.36% -36.46% -13.8%
Income Tax $3.490M $1.620M $3.166M
% Of Pretax Income 35.66% 28.16% 34.97%
Net Earnings $2.897M $4.132M $5.887M
YoY Change -61.77% -29.81% -16.06%
Net Earnings / Revenue 8.54% 12.34% 18.53%
Basic Earnings Per Share $0.35 $0.51 $0.74
Diluted Earnings Per Share $0.34 $0.49 $0.72
COMMON SHARES
Basic Shares Outstanding 8.884M shares 8.172M shares 7.996M shares
Diluted Shares Outstanding 8.421M shares 8.180M shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $105.6M $99.50M $80.50M
YoY Change 17.07% 23.6% 0.25%
Cash & Equivalents $54.25M $51.44M $30.69M
Short-Term Investments $51.30M $48.10M $49.80M
Other Short-Term Assets $6.612M $6.261M $2.355M
YoY Change 179.7% 165.86% 1.99%
Inventory
Prepaid Expenses
Receivables $21.66M $22.16M $22.81M
Other Receivables $0.00 $2.700M $0.00
Total Short-Term Assets $138.1M $130.7M $105.7M
YoY Change 19.11% 23.64% -3.27%
LONG-TERM ASSETS
Property, Plant & Equipment $4.190M $4.103M $4.014M
YoY Change -2.1% 2.22% 37.75%
Goodwill $27.14M $27.14M $27.14M
YoY Change 0.0% 0.0% 8.18%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $3.400M $9.500M $11.00M
YoY Change -68.81% -13.64% 254.84%
Total Long-Term Assets $54.55M $60.67M $63.99M
YoY Change -14.4% -5.2% 12.39%
TOTAL ASSETS
Total Short-Term Assets $138.1M $130.7M $105.7M
Total Long-Term Assets $54.55M $60.67M $63.99M
Total Assets $192.7M $191.4M $169.7M
YoY Change 7.22% 12.77% 2.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.500M $2.900M $3.500M
YoY Change 34.62% -17.14% 34.62%
Accrued Expenses $19.10M $22.10M $13.40M
YoY Change 11.05% 64.93% -12.99%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $31.53M $32.38M $25.48M
YoY Change 6.28% 27.08% -24.04%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $4.700M $3.600M $3.400M
YoY Change 20.51% 5.88% 36.0%
Total Long-Term Liabilities $4.732M $3.600M $3.400M
YoY Change 20.07% 5.88% 36.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $31.53M $32.38M $25.48M
Total Long-Term Liabilities $4.732M $3.600M $3.400M
Total Liabilities $36.26M $35.93M $28.85M
YoY Change 7.9% 24.57% -20.05%
SHAREHOLDERS EQUITY
Retained Earnings $28.61M $31.76M $29.68M
YoY Change -10.27% 7.0% -0.79%
Common Stock $179.3M $176.4M $159.7M
YoY Change 10.14% 10.47% 14.11%
Preferred Stock
YoY Change
Treasury Stock (at cost) $49.79M $50.91M $44.86M
YoY Change 12.25% 13.48% 24.7%
Treasury Stock Shares 1.081M shares 1.102M shares 976.1K shares
Shareholders Equity $156.4M $155.4M $140.9M
YoY Change
Total Liabilities & Shareholders Equity $192.7M $191.4M $169.7M
YoY Change 7.22% 12.77% 2.09%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q3
OPERATING ACTIVITIES
Net Income $2.897M $4.132M $5.887M
YoY Change -61.77% -29.81% -16.06%
Depreciation, Depletion And Amortization $740.0K $710.0K $730.0K
YoY Change 1.37% -2.74% 7.35%
Cash From Operating Activities $8.560M $12.63M $8.390M
YoY Change 2.03% 50.54% 24.3%
INVESTING ACTIVITIES
Capital Expenditures -$630.0K -$290.0K -$690.0K
YoY Change 350.0% -57.97% 392.86%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities -$630.0K -$290.0K -$690.0K
YoY Change 384.62% -57.97% 392.86%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -5.240M -5.150M -5.770M
YoY Change 10.08% -10.75% 33.26%
NET CHANGE
Cash From Operating Activities 8.560M 12.63M 8.390M
Cash From Investing Activities -630.0K -290.0K -690.0K
Cash From Financing Activities -5.240M -5.150M -5.770M
Net Change In Cash 2.690M 7.190M 1.930M
YoY Change -23.14% 272.54% -15.35%
FREE CASH FLOW
Cash From Operating Activities $8.560M $12.63M $8.390M
Capital Expenditures -$630.0K -$290.0K -$690.0K
Free Cash Flow $9.190M $12.92M $9.080M
YoY Change 7.74% 42.29% 31.79%

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whg Dividends Accrued
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whg Economic Earnings Losses
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CY2016Q3 whg Incremental Common Shares Attributable To Nonvested Restricted Shares
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whg Incremental Common Shares Attributable To Nonvested Restricted Shares
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us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:24px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">DESCRIPTION OF THE BUSINESS </font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:37px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Westwood Holdings Group, Inc. (&#8220;Westwood&#8221;, the &#8220;Company&#8221;, &#8220;we&#8221;, &#8220;us&#8221; or &#8220;our&#8221;) was incorporated under the laws of the State of Delaware on </font><font style="font-family:inherit;font-size:10pt;">December&#160;12, 2001</font><font style="font-family:inherit;font-size:10pt;">. Westwood provides investment management services to institutional investors, private wealth clients and financial intermediaries through its subsidiaries, Westwood Management Corp. and Westwood Advisors, L.L.C. (together &#8220;Westwood Management&#8221;), Westwood Trust, and Westwood International Advisors Inc. (&#8220;Westwood International&#8221;). Revenue is largely dependent on the total value and composition of assets under management (&#8220;AUM&#8221;). Accordingly, fluctuations in financial markets and in the composition of AUM impact revenues and results of operations. </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Divestiture of our Omaha Operations</font></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:37px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On September 6, 2017, we entered into an agreement to sell the Omaha-based component of our Private Wealth business. The sale is expected to close on December 31, 2017, subject to usual and customary closing conditions and the receipt of regulatory approval from the Nebraska Department of Banking. We expect to receive proceeds of </font><font style="font-family:inherit;font-size:10pt;font-style:normal;">$7 million</font><font style="font-family:inherit;font-size:10pt;"> to </font><font style="font-family:inherit;font-size:10pt;font-style:normal;">$10.5 million</font><font style="font-family:inherit;font-size:10pt;">, subject to client consents and net working capital requirements; however, we do not expect to record a material gain or loss on the sale within our Consolidated Statement of Comprehensive Income. The sale will reduce our goodwill and intangible assets but is not expected to have a material impact to our Consolidated Balance Sheet. The component is reported within both our Advisory and Trust segments. The sale does not represent a major strategic shift in our business and does not qualify for discontinued operations reporting.</font></div></div>

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