2018 Q1 Form 10-Q Financial Statement

#000116500218000031 Filed on April 25, 2018

View on sec.gov

Income Statement

Concept 2018 Q1 2017 Q1
Revenue $33.57M $32.62M
YoY Change 2.89% 11.99%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $2.857M $3.021M
YoY Change -5.43% 12.6%
% of Gross Profit
Research & Development $2.038M $1.756M
YoY Change 16.06% -10.59%
% of Gross Profit
Depreciation & Amortization $213.0K $240.0K
YoY Change -11.25% -6.98%
% of Gross Profit
Operating Expenses $4.895M $4.777M
YoY Change 2.47% 2.8%
Operating Profit $9.963M $7.770M
YoY Change 28.22%
Interest Expense
YoY Change
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $10.49M $7.770M
YoY Change 34.97% 37.62%
Income Tax $2.509M $1.706M
% Of Pretax Income 23.92% 21.96%
Net Earnings $7.978M $6.064M
YoY Change 31.56% 72.17%
Net Earnings / Revenue 23.77% 18.59%
Basic Earnings Per Share $0.96 $0.75
Diluted Earnings Per Share $0.93 $0.73
COMMON SHARES
Basic Shares Outstanding 8.271M shares 8.066M shares
Diluted Shares Outstanding 8.540M shares 8.311M shares

Balance Sheet

Concept 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $100.5M $75.40M
YoY Change 33.29% 5.9%
Cash & Equivalents $51.55M $30.63M
Short-Term Investments $48.90M $44.80M
Other Short-Term Assets $3.465M $2.386M
YoY Change 45.22% 5.44%
Inventory
Prepaid Expenses
Receivables $23.95M $25.21M
Other Receivables $0.00 $0.00
Total Short-Term Assets $129.6M $103.0M
YoY Change 25.85% 3.8%
LONG-TERM ASSETS
Property, Plant & Equipment $4.220M $4.190M
YoY Change 0.72% 4.05%
Goodwill $19.80M $27.14M
YoY Change -27.04% 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $4.200M $10.90M
YoY Change -61.47% -2.68%
Total Long-Term Assets $45.49M $72.93M
YoY Change -37.63% 11.83%
TOTAL ASSETS
Total Short-Term Assets $129.6M $103.0M
Total Long-Term Assets $45.49M $72.93M
Total Assets $175.1M $175.9M
YoY Change -0.46% 6.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.200M $2.500M
YoY Change 28.0% -47.92%
Accrued Expenses $5.200M $5.300M
YoY Change -1.89% 20.45%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $16.31M $18.08M
YoY Change -9.76% -44.76%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $2.800M $3.200M
YoY Change -12.5% 18.52%
Total Long-Term Liabilities $2.800M $3.200M
YoY Change -12.5% 18.52%
TOTAL LIABILITIES
Total Short-Term Liabilities $16.31M $18.08M
Total Long-Term Liabilities $2.800M $3.200M
Total Liabilities $19.10M $21.27M
YoY Change -10.21% -39.99%
SHAREHOLDERS EQUITY
Retained Earnings $30.49M $31.76M
YoY Change -3.98% 12.59%
Common Stock $183.7M $168.0M
YoY Change 9.32% 13.67%
Preferred Stock
YoY Change
Treasury Stock (at cost) $55.20M $50.87M
YoY Change 8.52% 16.59%
Treasury Stock Shares 1.178M shares 1.101M shares
Shareholders Equity $156.1K $144.8M
YoY Change
Total Liabilities & Shareholders Equity $175.1M $166.1M
YoY Change 5.43% 1.0%

Cashflow Statement

Concept 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income $7.978M $6.064M
YoY Change 31.56% 72.17%
Depreciation, Depletion And Amortization $213.0K $240.0K
YoY Change -11.25% -6.98%
Cash From Operating Activities $1.350M $9.940M
YoY Change -86.42% -42.31%
INVESTING ACTIVITIES
Capital Expenditures $299.0K $150.0K
YoY Change 99.33% -60.32%
Acquisitions
YoY Change
Other Investing Activities $10.01M
YoY Change
Cash From Investing Activities $9.710M -$150.0K
YoY Change -6573.33% -60.53%
FINANCING ACTIVITIES
Cash Dividend Paid $7.332M $6.564M
YoY Change 11.7% 14.68%
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -12.75M -13.08M
YoY Change -2.52% -8.4%
NET CHANGE
Cash From Operating Activities 1.350M 9.940M
Cash From Investing Activities 9.710M -150.0K
Cash From Financing Activities -12.75M -13.08M
Net Change In Cash -1.690M -3.290M
YoY Change -48.63% -228.02%
FREE CASH FLOW
Cash From Operating Activities $1.350M $9.940M
Capital Expenditures $299.0K $150.0K
Free Cash Flow $1.051M $9.790M
YoY Change -89.26% -41.91%

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CY2018Q1 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 closed on January 12, 2018. We received proceeds of </font><font style="font-family:inherit;font-size:10pt;font-style:normal;">$10.0 million</font><font style="font-family:inherit;font-size:10pt;">, net of working capital requirements, and recorded a </font><font style="font-family:inherit;font-size:10pt;">$524,000</font><font style="font-family:inherit;font-size:10pt;"> gain on the sale, which is included as &#8220;Gain on sale of operations&#8221; on our Consolidated Statement of Comprehensive Income. The sale reduced our goodwill and intangible assets but did not have a material impact on our Condensed Consolidated Balance Sheet. The following table presents cash proceeds received and net assets sold (in thousands):</font></div><div style="line-height:120%;padding-top:12px;text-align:center;text-indent:37px;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:54.32098765432099%;border-collapse:collapse;text-align:left;"><tr><td colspan="4" rowspan="1"></td></tr><tr><td style="width:66%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:32%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Cash Proceeds</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">10,013</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Net assets sold:</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Accounts receivable</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">99</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other current assets</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">112</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Goodwill</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">7,340</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Intangible assets, net</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2,170</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Property and equipment, net</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">18</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Accounts payable and accrued liabilities</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(241</font></div></td><td style="vertical-align:bottom;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other liabilities</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">(9</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Gain on sale of operations</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">524</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></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;">The component is reported within both our Advisory and Trust segments. The sale did not represent a major strategic shift in our business and did not qualify for discontinued operations reporting.</font></div></div>

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