x
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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DELAWARE
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75-2969997
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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200 CRESCENT COURT, SUITE 1200
DALLAS, TEXAS
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75201
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(Address of principal executive office)
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(Zip Code)
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PART I
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FINANCIAL INFORMATION
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PAGE
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Item 1.
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Financial Statements
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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September 30,
2018 |
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December 31, 2017
|
||||
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||||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
48,086
|
|
|
$
|
54,249
|
|
Accounts receivable
|
|
19,832
|
|
|
21,660
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|
||
Investments, at fair value
|
|
71,003
|
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|
51,324
|
|
||
Prepaid income taxes
|
|
589
|
|
|
4,269
|
|
||
Other current assets
|
|
2,308
|
|
|
6,612
|
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||
Total current assets
|
|
141,818
|
|
|
138,114
|
|
||
Investments
|
|
5,425
|
|
|
—
|
|
||
Goodwill
|
|
19,804
|
|
|
27,144
|
|
||
Deferred income taxes
|
|
5,081
|
|
|
3,407
|
|
||
Intangible assets, net
|
|
16,379
|
|
|
19,804
|
|
||
Property and equipment, net of accumulated depreciation of $6,287 and $5,673
|
|
4,120
|
|
|
4,190
|
|
||
Total assets
|
|
$
|
192,627
|
|
|
$
|
192,659
|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable and accrued liabilities
|
|
$
|
2,521
|
|
|
$
|
3,501
|
|
Dividends payable
|
|
7,295
|
|
|
7,357
|
|
||
Compensation and benefits payable
|
|
12,726
|
|
|
19,075
|
|
||
Income taxes payable
|
|
2,198
|
|
|
1,598
|
|
||
Total current liabilities
|
|
24,740
|
|
|
31,531
|
|
||
Accrued dividends
|
|
1,349
|
|
|
1,717
|
|
||
Noncurrent income taxes payable
|
|
—
|
|
|
1,017
|
|
||
Deferred rent
|
|
1,866
|
|
|
1,998
|
|
||
Total liabilities
|
|
27,955
|
|
|
36,263
|
|
||
Commitments and contingencies (Note 13)
|
|
|
|
|
||||
Stockholders' Equity:
|
|
|
|
|
||||
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 10,196,635 and outstanding 9,018,436 shares at September 30, 2018; issued 9,980,827 and outstanding 8,899,587 shares at December 31, 2017
|
|
102
|
|
|
100
|
|
||
Additional paid-in capital
|
|
191,062
|
|
|
179,241
|
|
||
Treasury stock, at cost - 1,178,199 shares at September 30, 2018; 1,081,240 shares at December 31, 2017
|
|
(55,215
|
)
|
|
(49,788
|
)
|
||
Accumulated other comprehensive loss
|
|
(2,826
|
)
|
|
(1,764
|
)
|
||
Retained earnings
|
|
31,549
|
|
|
28,607
|
|
||
Total stockholders' equity
|
|
164,672
|
|
|
156,396
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
192,627
|
|
|
$
|
192,659
|
|
|
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Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
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2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
Advisory fees:
|
|
|
|
|
|
|
|
|
||||||||
Asset-based
|
|
$
|
22,023
|
|
|
$
|
25,334
|
|
|
$
|
69,979
|
|
|
$
|
73,619
|
|
Performance-based
|
|
—
|
|
|
—
|
|
|
2,984
|
|
|
1,417
|
|
||||
Trust fees
|
|
7,191
|
|
|
7,858
|
|
|
22,265
|
|
|
23,570
|
|
||||
Other, net
|
|
640
|
|
|
300
|
|
|
953
|
|
|
1,265
|
|
||||
Total revenues
|
|
29,854
|
|
|
33,492
|
|
|
96,181
|
|
|
99,871
|
|
||||
EXPENSES:
|
|
|
|
|
|
|
|
|
||||||||
Employee compensation and benefits
|
|
14,444
|
|
|
15,601
|
|
|
46,857
|
|
|
48,875
|
|
||||
Sales and marketing
|
|
549
|
|
|
457
|
|
|
1,401
|
|
|
1,447
|
|
||||
Westwood mutual funds
|
|
979
|
|
|
977
|
|
|
2,966
|
|
|
2,749
|
|
||||
Information technology
|
|
2,332
|
|
|
1,855
|
|
|
6,753
|
|
|
5,494
|
|
||||
Professional services
|
|
1,372
|
|
|
1,681
|
|
|
3,677
|
|
|
4,495
|
|
||||
Legal settlement
|
|
—
|
|
|
4,009
|
|
|
—
|
|
|
4,009
|
|
||||
General and administrative
|
|
3,027
|
|
|
3,160
|
|
|
6,477
|
|
|
8,697
|
|
||||
Total expenses
|
|
22,703
|
|
|
27,740
|
|
|
68,131
|
|
|
75,766
|
|
||||
Net operating income
|
|
7,151
|
|
|
5,752
|
|
|
28,050
|
|
|
24,105
|
|
||||
Gain on sale of operations
|
|
—
|
|
|
—
|
|
|
524
|
|
|
—
|
|
||||
Income before income taxes
|
|
7,151
|
|
|
5,752
|
|
|
28,574
|
|
|
24,105
|
|
||||
Provision for income taxes
|
|
1,783
|
|
|
1,620
|
|
|
7,236
|
|
|
7,013
|
|
||||
Net income
|
|
$
|
5,368
|
|
|
$
|
4,132
|
|
|
$
|
21,338
|
|
|
$
|
17,092
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
|
616
|
|
|
1,297
|
|
|
(1,062
|
)
|
|
2,438
|
|
||||
Total comprehensive income
|
|
$
|
5,984
|
|
|
$
|
5,429
|
|
|
$
|
20,276
|
|
|
$
|
19,530
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.64
|
|
|
$
|
0.51
|
|
|
$
|
2.55
|
|
|
$
|
2.10
|
|
Diluted
|
|
$
|
0.62
|
|
|
$
|
0.49
|
|
|
$
|
2.49
|
|
|
$
|
2.05
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
8,402,697
|
|
|
8,171,809
|
|
|
8,359,088
|
|
|
8,136,350
|
|
||||
Diluted
|
|
8,598,230
|
|
|
8,420,749
|
|
|
8,561,918
|
|
|
8,350,926
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per share
|
|
$
|
0.68
|
|
|
$
|
0.62
|
|
|
$
|
2.04
|
|
|
$
|
1.86
|
|
|
|
Common Stock, Par
|
|
Additional
Paid-In
Capital
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Total
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||
BALANCE, December 31, 2017
|
|
8,899,587
|
|
|
$
|
100
|
|
|
$
|
179,241
|
|
|
$
|
(49,788
|
)
|
|
$
|
(1,764
|
)
|
|
$
|
28,607
|
|
|
$
|
156,396
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,338
|
|
|
21,338
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,062
|
)
|
|
—
|
|
|
(1,062
|
)
|
||||||
Issuance of restricted stock, net of forfeitures
|
|
215,808
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,396
|
)
|
|
(18,396
|
)
|
||||||
Stock based compensation expense
|
|
—
|
|
|
—
|
|
|
11,658
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,658
|
|
||||||
Reclassification of compensation liability to be paid in shares
|
|
—
|
|
|
—
|
|
|
165
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165
|
|
||||||
Purchases of treasury stock
|
|
(13,031
|
)
|
|
—
|
|
|
—
|
|
|
(726
|
)
|
|
—
|
|
|
—
|
|
|
(726
|
)
|
||||||
Restricted stock returned for payment of taxes
|
|
(83,928
|
)
|
|
—
|
|
|
—
|
|
|
(4,701
|
)
|
|
—
|
|
|
—
|
|
|
(4,701
|
)
|
||||||
BALANCE, September 30, 2018
|
|
9,018,436
|
|
|
$
|
102
|
|
|
$
|
191,062
|
|
|
$
|
(55,215
|
)
|
|
$
|
(2,826
|
)
|
|
$
|
31,549
|
|
|
$
|
164,672
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2018
|
|
2017
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income
|
|
$
|
21,338
|
|
|
$
|
17,092
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation
|
|
653
|
|
|
722
|
|
||
Amortization of intangible assets
|
|
1,255
|
|
|
1,449
|
|
||
Unrealized (gains) losses on trading investments
|
|
145
|
|
|
(539
|
)
|
||
Stock based compensation expense
|
|
11,658
|
|
|
12,298
|
|
||
Deferred income taxes
|
|
(1,693
|
)
|
|
1,481
|
|
||
Gain on sale of operations
|
|
(524
|
)
|
|
—
|
|
||
Change in operating assets and liabilities:
|
|
|
|
|
||||
Net sales (purchases) of investments - trading securities
|
|
(19,824
|
)
|
|
8,931
|
|
||
Accounts receivable
|
|
1,537
|
|
|
1,686
|
|
||
Other current assets
|
|
4,185
|
|
|
(3,881
|
)
|
||
Accounts payable and accrued liabilities
|
|
(650
|
)
|
|
178
|
|
||
Accrued litigation settlement
|
|
—
|
|
|
8,018
|
|
||
Compensation and benefits payable
|
|
(6,157
|
)
|
|
(2,696
|
)
|
||
Income taxes payable
|
|
3,265
|
|
|
(5,181
|
)
|
||
Other liabilities
|
|
(118
|
)
|
|
(111
|
)
|
||
Net cash provided by operating activities
|
|
15,070
|
|
|
39,447
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Purchase of property and equipment
|
|
(676
|
)
|
|
(537
|
)
|
||
Proceeds from Omaha divestiture
|
|
10,013
|
|
|
—
|
|
||
Purchase of investments
|
|
(5,425
|
)
|
|
—
|
|
||
Net cash provided by (used in) investing activities
|
|
3,912
|
|
|
(537
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Purchase of treasury stock under employee stock plans
|
|
(726
|
)
|
|
(1,326
|
)
|
||
Restricted stock returned for payment of taxes
|
|
(4,701
|
)
|
|
(5,231
|
)
|
||
Cash dividends paid
|
|
(18,825
|
)
|
|
(16,787
|
)
|
||
Net cash used in financing activities
|
|
(24,252
|
)
|
|
(23,344
|
)
|
||
Effect of currency rate changes on cash
|
|
(893
|
)
|
|
2,191
|
|
||
Net Change in Cash and Cash Equivalents
|
|
(6,163
|
)
|
|
17,757
|
|
||
Cash and cash equivalents, beginning of period
|
|
54,249
|
|
|
33,679
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
48,086
|
|
|
$
|
51,436
|
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
|
||||
Cash paid during the period for income taxes
|
|
$
|
5,634
|
|
|
$
|
10,245
|
|
Accrued dividends
|
|
$
|
8,644
|
|
|
$
|
8,161
|
|
Cash Proceeds
|
$
|
10,013
|
|
Net assets sold:
|
|
||
Accounts receivable
|
99
|
|
|
Other current assets
|
112
|
|
|
Goodwill
|
7,340
|
|
|
Intangible assets, net
|
2,170
|
|
|
Property and equipment, net
|
18
|
|
|
Accounts payable and accrued liabilities
|
(241
|
)
|
|
Other liabilities
|
(9
|
)
|
|
Gain on sale of operations
|
$
|
524
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
5,368
|
|
|
$
|
4,132
|
|
|
$
|
21,338
|
|
|
$
|
17,092
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic
|
|
8,402,697
|
|
|
8,171,809
|
|
|
8,359,088
|
|
|
8,136,350
|
|
||||
Dilutive potential shares from unvested restricted shares
|
|
195,533
|
|
|
248,940
|
|
|
202,830
|
|
|
214,576
|
|
||||
Weighted average shares outstanding - diluted
|
|
8,598,230
|
|
|
8,420,749
|
|
|
8,561,918
|
|
|
8,350,926
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.64
|
|
|
$
|
0.51
|
|
|
$
|
2.55
|
|
|
$
|
2.10
|
|
Diluted
|
|
$
|
0.62
|
|
|
$
|
0.49
|
|
|
$
|
2.49
|
|
|
$
|
2.05
|
|
|
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Market
Value
|
||||||||
September 30, 2018:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government and Government agency obligations
|
|
$
|
51,194
|
|
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
51,311
|
|
Money market funds
|
|
9,978
|
|
|
—
|
|
|
—
|
|
|
9,978
|
|
||||
Equity funds
|
|
9,333
|
|
|
545
|
|
|
(164
|
)
|
|
9,714
|
|
||||
Total trading securities
|
|
$
|
70,505
|
|
|
$
|
662
|
|
|
$
|
(164
|
)
|
|
$
|
71,003
|
|
December 31, 2017:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government and Government agency obligations
|
|
$
|
29,367
|
|
|
$
|
21
|
|
|
$
|
(15
|
)
|
|
$
|
29,373
|
|
Money market funds
|
|
9,736
|
|
|
—
|
|
|
—
|
|
|
9,736
|
|
||||
Equity funds
|
|
11,578
|
|
|
657
|
|
|
(20
|
)
|
|
12,215
|
|
||||
Total trading securities
|
|
$
|
50,681
|
|
|
$
|
678
|
|
|
$
|
(35
|
)
|
|
$
|
51,324
|
|
•
|
level 1 – quoted market prices in active markets for identical assets
|
•
|
level 2 – inputs other than quoted prices that are directly or indirectly observable
|
•
|
level 3 – significant unobservable inputs where there is little or no market activity
|
|
|
Goodwill
|
||
Balance as of December 31, 2017
|
|
$
|
27,144
|
|
Omaha divestiture
|
|
(7,340
|
)
|
|
Balance as of September 30, 2018
|
|
$
|
19,804
|
|
|
|
Intangible assets, net
|
||
Balance as of December 31, 2017
|
|
$
|
19,804
|
|
Amortization
|
|
(1,255
|
)
|
|
Omaha divestiture
(1)
|
|
(2,170
|
)
|
|
Balance as of September 30, 2018
|
|
$
|
16,379
|
|
|
|
As of September 30, 2018
|
|
As of December 31, 2017
|
||||
Foreign currency translation adjustment
|
|
$
|
(2,826
|
)
|
|
$
|
(1,764
|
)
|
Accumulated other comprehensive loss
|
|
$
|
(2,826
|
)
|
|
$
|
(1,764
|
)
|
|
|
As of September 30, 2018
|
||||||||||
|
|
Assets
Under Management |
|
Corporate
Investment |
|
Amount at Risk
|
||||||
VIEs/VOEs:
|
|
|
|
|
|
|
||||||
Westwood Funds®
|
|
$
|
4,031
|
|
|
$
|
6
|
|
|
$
|
6
|
|
Common Trust Funds
|
|
2,079
|
|
|
3
|
|
|
3
|
|
|||
UCITS Fund
|
|
388
|
|
|
—
|
|
|
—
|
|
|||
Private Equity Funds
|
|
8
|
|
|
—
|
|
|
—
|
|
|||
Private Equity
|
|
—
|
|
|
5
|
|
|
5
|
|
|||
All other assets:
|
|
|
|
|
|
|
||||||
Private Wealth
|
|
2,703
|
|
|
|
|
|
|||||
Institutional
|
|
11,591
|
|
|
|
|
|
|||||
Total Assets Under Management
|
|
$
|
20,800
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Advisory Fees:
|
|
|
|
|
|
|
|
|
||||||||
Institutional
|
|
$
|
14,426
|
|
|
$
|
17,610
|
|
|
$
|
46,815
|
|
|
$
|
51,263
|
|
Mutual Funds
|
|
7,527
|
|
|
7,724
|
|
|
23,030
|
|
|
22,356
|
|
||||
Private Wealth
|
|
70
|
|
|
—
|
|
|
134
|
|
|
—
|
|
||||
Performance-based
|
|
—
|
|
|
—
|
|
|
2,984
|
|
|
1,417
|
|
||||
Trust Fees
|
|
7,191
|
|
|
7,858
|
|
|
22,265
|
|
|
23,570
|
|
||||
Other
|
|
640
|
|
|
300
|
|
|
953
|
|
|
1,265
|
|
||||
Total revenues
|
|
$
|
29,854
|
|
|
$
|
33,492
|
|
|
$
|
96,181
|
|
|
$
|
99,871
|
|
Three Months Ended September 30, 2018
|
|
Advisory
|
|
Trust
|
|
Performance-based
|
|
Other
|
|
Total
|
||||||||||
Asia
|
|
$
|
853
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
853
|
|
Australia
|
|
927
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
927
|
|
|||||
Canada
|
|
1,707
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|
1,745
|
|
|||||
Europe
|
|
1,249
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,249
|
|
|||||
United States
|
|
17,287
|
|
|
7,191
|
|
|
—
|
|
|
602
|
|
|
25,080
|
|
|||||
Total
|
|
$
|
22,023
|
|
|
$
|
7,191
|
|
|
$
|
—
|
|
|
$
|
640
|
|
|
$
|
29,854
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asia
|
|
$
|
3,520
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,520
|
|
Australia
|
|
2,923
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,923
|
|
|||||
Canada
|
|
5,177
|
|
|
—
|
|
|
—
|
|
|
124
|
|
|
5,301
|
|
|||||
Europe
|
|
3,839
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,839
|
|
|||||
United States
|
|
54,520
|
|
|
22,265
|
|
|
2,984
|
|
|
829
|
|
|
80,598
|
|
|||||
Total
|
|
$
|
69,979
|
|
|
$
|
22,265
|
|
|
$
|
2,984
|
|
|
$
|
953
|
|
|
$
|
96,181
|
|
Three Months Ended September 30, 2017
|
|
Advisory
|
|
Trust
|
|
Performance-based
|
|
Other
|
|
Total
|
||||||||||
Asia
|
|
$
|
1,649
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,649
|
|
Australia
|
|
944
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
944
|
|
|||||
Canada
|
|
2,219
|
|
|
—
|
|
|
—
|
|
|
516
|
|
|
2,735
|
|
|||||
Europe
|
|
946
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
946
|
|
|||||
United States
|
|
19,576
|
|
|
7,858
|
|
|
—
|
|
|
(216
|
)
|
|
27,218
|
|
|||||
Total
|
|
$
|
25,334
|
|
|
$
|
7,858
|
|
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
33,492
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asia
|
|
$
|
4,696
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,696
|
|
Australia
|
|
2,371
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,371
|
|
|||||
Canada
|
|
6,351
|
|
|
—
|
|
|
—
|
|
|
738
|
|
|
7,089
|
|
|||||
Europe
|
|
3,065
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,065
|
|
|||||
United States
|
|
57,136
|
|
|
23,570
|
|
|
1,417
|
|
|
527
|
|
|
82,650
|
|
|||||
Total
|
|
$
|
73,619
|
|
|
$
|
23,570
|
|
|
$
|
1,417
|
|
|
$
|
1,265
|
|
|
$
|
99,871
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service condition stock-based compensation expense
|
|
$
|
2,434
|
|
|
$
|
2,591
|
|
|
$
|
7,759
|
|
|
$
|
7,828
|
|
Performance condition stock-based compensation expense
|
|
1,107
|
|
|
1,454
|
|
3,471
|
|
|
3,949
|
|
|||||
Stock-based compensation expense under the Plan
|
|
3,541
|
|
|
4,045
|
|
11,230
|
|
|
11,777
|
|
|||||
Canadian Plan stock-based compensation expense
|
|
154
|
|
|
188
|
|
|
428
|
|
|
521
|
|
||||
Total stock-based compensation expense
|
|
$
|
3,695
|
|
|
$
|
4,233
|
|
|
$
|
11,658
|
|
|
$
|
12,298
|
|
|
|
Shares
|
|
Weighted Average
Grant Date Fair Value |
|||
Non-vested, January 1, 2018
|
|
519,375
|
|
|
$
|
55.44
|
|
Granted
|
|
172,366
|
|
|
55.92
|
|
|
Vested
|
|
(203,504
|
)
|
|
53.49
|
|
|
Forfeited
|
|
(29,229
|
)
|
|
56.55
|
|
|
Non-vested, September 30, 2018
|
|
459,008
|
|
|
$
|
56.42
|
|
|
|
Shares
|
|
Weighted Average
Grant Date Fair Value |
|||
Non-vested, January 1, 2018
|
|
165,918
|
|
|
$
|
55.85
|
|
Granted
|
|
84,829
|
|
|
55.46
|
|
|
Vested
|
|
(98,281
|
)
|
|
55.81
|
|
|
Forfeited
|
|
—
|
|
|
—
|
|
|
Non-vested, September 30, 2018
|
|
152,466
|
|
|
$
|
55.66
|
|
(in thousands)
|
|
Advisory
|
|
Trust
|
|
Westwood
Holdings |
|
Eliminations
|
|
Consolidated
|
||||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net fee revenues from external sources
|
|
$
|
22,023
|
|
|
$
|
7,191
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29,214
|
|
Net intersegment revenues
|
|
1,756
|
|
|
58
|
|
|
—
|
|
|
(1,814
|
)
|
|
—
|
|
|||||
Net interest and dividend revenue
|
|
187
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|
239
|
|
|||||
Other, net
|
|
389
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
401
|
|
|||||
Total revenues
|
|
$
|
24,355
|
|
|
$
|
7,313
|
|
|
$
|
—
|
|
|
$
|
(1,814
|
)
|
|
$
|
29,854
|
|
Economic Earnings
|
|
$
|
10,553
|
|
|
$
|
1,357
|
|
|
$
|
(2,369
|
)
|
|
$
|
—
|
|
|
$
|
9,541
|
|
Less: Restricted stock expense
|
|
|
|
|
|
|
|
|
|
3,695
|
|
|||||||||
Intangible amortization
|
|
|
|
|
|
|
|
|
|
419
|
|
|||||||||
Deferred taxes on goodwill
|
|
|
|
|
|
|
|
|
|
59
|
|
|||||||||
Net income
|
|
|
|
|
|
|
|
|
|
$
|
5,368
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment assets
|
|
$
|
220,138
|
|
|
$
|
60,658
|
|
|
$
|
16,839
|
|
|
$
|
(105,008
|
)
|
|
$
|
192,627
|
|
Segment goodwill
|
|
$
|
3,403
|
|
|
$
|
16,401
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19,804
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net fee revenues from external sources
|
|
$
|
25,334
|
|
|
$
|
7,858
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,192
|
|
Net intersegment revenues
|
|
2,026
|
|
|
57
|
|
|
—
|
|
|
(2,083
|
)
|
|
—
|
|
|||||
Net interest and dividend revenue
|
|
111
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
154
|
|
|||||
Other, net
|
|
157
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
146
|
|
|||||
Total revenues
|
|
$
|
27,628
|
|
|
$
|
7,947
|
|
|
$
|
—
|
|
|
$
|
(2,083
|
)
|
|
$
|
33,492
|
|
Economic Earnings
|
|
$
|
8,786
|
|
|
$
|
1,560
|
|
|
$
|
(1,356
|
)
|
|
$
|
—
|
|
|
$
|
8,990
|
|
Less: Restricted stock expense
|
|
|
|
|
|
|
|
|
|
4,233
|
|
|||||||||
Intangible amortization
|
|
|
|
|
|
|
|
|
|
469
|
|
|||||||||
Deferred taxes on goodwill
|
|
|
|
|
|
|
|
|
|
156
|
|
|||||||||
Net income
|
|
|
|
|
|
|
|
|
|
$
|
4,132
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment assets
|
|
$
|
208,444
|
|
|
$
|
73,170
|
|
|
$
|
18,388
|
|
|
$
|
(108,640
|
)
|
|
$
|
191,362
|
|
Segment goodwill
|
|
$
|
5,219
|
|
|
$
|
21,925
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27,144
|
|
(in thousands)
|
|
Advisory
|
|
Trust
|
|
Westwood
Holdings |
|
Eliminations
|
|
Consolidated
|
||||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net fee revenues from external sources
|
|
$
|
72,963
|
|
|
$
|
22,265
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
95,228
|
|
Net intersegment revenues
|
|
5,639
|
|
|
171
|
|
|
—
|
|
|
(5,810
|
)
|
|
—
|
|
|||||
Net interest and dividend revenue
|
|
464
|
|
|
152
|
|
|
—
|
|
|
—
|
|
|
616
|
|
|||||
Other
|
|
331
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
337
|
|
|||||
Total revenues
|
|
$
|
79,397
|
|
|
$
|
22,594
|
|
|
$
|
—
|
|
|
$
|
(5,810
|
)
|
|
$
|
96,181
|
|
Economic Earnings
|
|
$
|
37,463
|
|
|
$
|
4,034
|
|
|
$
|
(7,069
|
)
|
|
$
|
—
|
|
|
$
|
34,428
|
|
Less: Restricted stock expense
|
|
|
|
|
|
|
|
|
|
11,658
|
|
|||||||||
Intangible amortization
|
|
|
|
|
|
|
|
|
|
1,255
|
|
|||||||||
Deferred taxes on goodwill
|
|
|
|
|
|
|
|
|
|
177
|
|
|||||||||
Net income
|
|
|
|
|
|
|
|
|
|
$
|
21,338
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net fee revenues from external sources
|
|
$
|
75,036
|
|
|
$
|
23,570
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
98,606
|
|
Net intersegment revenues
|
|
6,050
|
|
|
160
|
|
|
—
|
|
|
(6,210
|
)
|
|
—
|
|
|||||
Net interest and dividend revenue
|
|
391
|
|
|
67
|
|
|
—
|
|
|
—
|
|
|
458
|
|
|||||
Other
|
|
811
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
807
|
|
|||||
Total revenues
|
|
$
|
82,288
|
|
|
$
|
23,793
|
|
|
$
|
—
|
|
|
$
|
(6,210
|
)
|
|
$
|
99,871
|
|
Economic Earnings
|
|
$
|
31,372
|
|
|
$
|
4,528
|
|
|
$
|
(4,592
|
)
|
|
$
|
—
|
|
|
$
|
31,308
|
|
Less: Restricted stock expense
|
|
|
|
|
|
|
|
|
|
12,298
|
|
|||||||||
Intangible amortization
|
|
|
|
|
|
|
|
|
|
1,449
|
|
|||||||||
Deferred taxes on goodwill
|
|
|
|
|
|
|
|
|
|
469
|
|
|||||||||
Net income
|
|
|
|
|
|
|
|
|
|
$
|
17,092
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
|
$
|
5,368
|
|
|
$
|
4,132
|
|
|
$
|
21,338
|
|
|
$
|
17,092
|
|
Add: Stock-based compensation expense
|
|
3,695
|
|
|
4,233
|
|
|
11,658
|
|
|
12,298
|
|
||||
Add: Intangible amortization
|
|
419
|
|
|
469
|
|
|
1,255
|
|
|
1,449
|
|
||||
Add: Tax benefit from goodwill amortization
|
|
59
|
|
|
156
|
|
|
177
|
|
|
469
|
|
||||
Economic Earnings
|
|
$
|
9,541
|
|
|
$
|
8,990
|
|
|
$
|
34,428
|
|
|
$
|
31,308
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
the composition and market value of our assets under management;
|
•
|
regulations adversely affecting the financial services industry;
|
•
|
competition in the investment management industry;
|
•
|
our assets under management includes investments in foreign companies;
|
•
|
our ability to develop and market new investment strategies successfully;
|
•
|
our reputation and our relationships with current and potential customers;
|
•
|
our ability to attract and retain qualified personnel;
|
•
|
our ability to perform operational tasks;
|
•
|
our ability to maintain effective cyber security;
|
•
|
our ability to identify and execute on our strategic initiatives;
|
•
|
our ability to select and oversee third-party vendors;
|
•
|
our ability to maintain effective information systems;
|
•
|
litigation risks;
|
•
|
our ability to properly address conflicts of interest;
|
•
|
our ability to maintain adequate insurance coverage;
|
•
|
our ability to maintain an effective system of internal controls;
|
•
|
our ability to maintain our fee structure in light of competitive fee pressures;
|
•
|
our relationships with investment consulting firms; and
|
•
|
the significant concentration of our revenues in a small number of customers.
|
|
|
|
|
|
|
% Change
|
|||||
|
|
|
|
September 30, 2018
|
|||||||
|
|
As of September 30,
|
|
vs.
|
|||||||
|
|
2018
|
|
2017
|
|
September 30, 2017
|
|||||
|
|
(in millions)
|
|
|
|||||||
Institutional
|
|
$
|
11,979
|
|
|
$
|
13,658
|
|
|
(12
|
)%
|
Private Wealth
|
|
4,790
|
|
|
5,822
|
|
|
(18
|
)
|
||
Mutual Funds
|
|
4,031
|
|
|
4,144
|
|
|
(3
|
)
|
||
Total Assets Under Management
(1)
|
|
$
|
20,800
|
|
|
$
|
23,624
|
|
|
(12
|
)%
|
(1)
|
AUM excludes
$268 million
and
$362 million
of assets under advisement (
“
AUA
”
) as of
September 30, 2018
and
2017
, respectively, related to our model portfolios for which we provided consulting advice but for which we did not have direct discretionary investment authority.
|
•
|
Institutional
includes (i) separate accounts of corporate pension and profit sharing plans, public employee retirement funds, Taft Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers.
|
•
|
Private Wealth
includes assets for which Westwood Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals pursuant to trust or custodial agreements and assets for which Westwood Advisors, L.L.C. provides advisory services to high net worth individuals. Investment subadvisory services are provided for the common trust funds by Westwood Management, Westwood International and external, unaffiliated subadvisors. For certain assets in this category, Westwood Trust currently provides limited custody services for a minimal or no fee, viewing these assets as potentially converting to fee-generating managed assets in the future. As an example, some assets in this category consist of low-basis stock currently held in custody for clients where we believe such assets may convert to fee-generating managed assets upon an inter-generational transfer of wealth.
|
•
|
Mutual Funds
include the Westwood Funds
®
, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional and private wealth accounts.
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
(in millions)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Institutional
|
|
|
|
|
|
|
|
|
||||||||
Beginning of period assets
|
|
$
|
12,457
|
|
|
$
|
12,773
|
|
|
$
|
14,421
|
|
|
$
|
11,911
|
|
Inflows
(1)
|
|
402
|
|
|
1,113
|
|
|
1,187
|
|
|
2,173
|
|
||||
Outflows
|
|
(1,265
|
)
|
|
(659
|
)
|
|
(3,858
|
)
|
|
(1,954
|
)
|
||||
Net flows
|
|
(863
|
)
|
|
454
|
|
|
(2,671
|
)
|
|
219
|
|
||||
Market appreciation
|
|
385
|
|
|
431
|
|
|
229
|
|
|
1,528
|
|
||||
Net change
|
|
(478
|
)
|
|
885
|
|
|
(2,442
|
)
|
|
1,747
|
|
||||
End of period assets
|
|
$
|
11,979
|
|
|
$
|
13,658
|
|
|
$
|
11,979
|
|
|
$
|
13,658
|
|
|
|
|
|
|
|
|
|
|
||||||||
Private Wealth
|
|
|
|
|
|
|
|
|
||||||||
Beginning of period assets
|
|
$
|
4,935
|
|
|
$
|
5,685
|
|
|
$
|
5,566
|
|
|
$
|
5,520
|
|
Inflows
|
|
106
|
|
|
194
|
|
|
293
|
|
|
509
|
|
||||
Outflows
(2)
|
|
(422
|
)
|
|
(216
|
)
|
|
(1,242
|
)
|
|
(710
|
)
|
||||
Net flows
|
|
(316
|
)
|
|
(22
|
)
|
|
(949
|
)
|
|
(201
|
)
|
||||
Market appreciation
|
|
171
|
|
|
159
|
|
|
173
|
|
|
503
|
|
||||
Net change
|
|
(145
|
)
|
|
137
|
|
|
(776
|
)
|
|
302
|
|
||||
End of period assets
|
|
$
|
4,790
|
|
|
$
|
5,822
|
|
|
$
|
4,790
|
|
|
$
|
5,822
|
|
|
|
|
|
|
|
|
|
|
||||||||
Mutual Funds
|
|
|
|
|
|
|
|
|
||||||||
Beginning of period assets
|
|
$
|
4,199
|
|
|
$
|
4,092
|
|
|
$
|
4,242
|
|
|
$
|
3,810
|
|
Inflows
|
|
164
|
|
|
293
|
|
|
716
|
|
|
792
|
|
||||
Outflows
|
|
(466
|
)
|
|
(334
|
)
|
|
(1,034
|
)
|
|
(803
|
)
|
||||
Net flows
|
|
(302
|
)
|
|
(41
|
)
|
|
(318
|
)
|
|
(11
|
)
|
||||
Market appreciation
|
|
134
|
|
|
93
|
|
|
107
|
|
|
345
|
|
||||
Net change
|
|
(168
|
)
|
|
52
|
|
|
(211
|
)
|
|
334
|
|
||||
End of period assets
|
|
$
|
4,031
|
|
|
$
|
4,144
|
|
|
$
|
4,031
|
|
|
$
|
4,144
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total AUM
|
|
|
|
|
|
|
|
|
||||||||
Beginning of period assets
|
|
$
|
21,591
|
|
|
$
|
22,550
|
|
|
$
|
24,229
|
|
|
$
|
21,241
|
|
Inflows
|
|
672
|
|
|
1,600
|
|
|
2,196
|
|
|
3,474
|
|
||||
Outflows
|
|
(2,153
|
)
|
|
(1,209
|
)
|
|
(6,134
|
)
|
|
(3,467
|
)
|
||||
Net flows
|
|
(1,481
|
)
|
|
391
|
|
|
(3,938
|
)
|
|
7
|
|
||||
Market appreciation
|
|
690
|
|
|
683
|
|
|
509
|
|
|
2,376
|
|
||||
Net change
|
|
(791
|
)
|
|
1,074
|
|
|
(3,429
|
)
|
|
2,383
|
|
||||
End of period assets
|
|
$
|
20,800
|
|
|
$
|
23,624
|
|
|
$
|
20,800
|
|
|
$
|
23,624
|
|
(1)
|
Institutional inflows include approximately $713 million of assets related to a long-only convertibles fund, which transitioned from AUA to AUM during the third quarter of 2017.
|
(2)
|
Private Wealth outflows include approximately $271 million and $802 million of assets related to the sale of the Omaha-based component of our Private Wealth business for the three and nine months ended September 30, 2018, respectively.
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
% Change
|
||||||||||
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
September 30, 2018
|
|
September 30, 2018
|
||||||||||||||
|
|
September 30,
|
|
September 30,
|
|
vs.
|
|
vs.
|
||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
September 30, 2017
|
|
September 30, 2017
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advisory fees: asset-based
|
|
$
|
22,023
|
|
|
$
|
25,334
|
|
|
$
|
69,979
|
|
|
$
|
73,619
|
|
|
(13
|
)%
|
|
(5
|
)%
|
Advisory fees: performance-based
|
|
—
|
|
|
—
|
|
|
2,984
|
|
|
1,417
|
|
|
—
|
|
|
111
|
|
||||
Trust fees
|
|
7,191
|
|
|
7,858
|
|
|
22,265
|
|
|
23,570
|
|
|
(8
|
)
|
|
(6
|
)
|
||||
Other revenues
|
|
640
|
|
|
300
|
|
|
953
|
|
|
1,265
|
|
|
NM
|
|
NM
|
||||||
Total revenues
|
|
29,854
|
|
|
33,492
|
|
|
96,181
|
|
|
99,871
|
|
|
(11
|
)
|
|
(4
|
)
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee compensation and benefits
|
|
14,444
|
|
|
15,601
|
|
|
46,857
|
|
|
48,875
|
|
|
(7
|
)
|
|
(4
|
)
|
||||
Sales and marketing
|
|
549
|
|
|
457
|
|
|
1,401
|
|
|
1,447
|
|
|
20
|
|
|
(3
|
)
|
||||
Westwood mutual funds
|
|
979
|
|
|
977
|
|
|
2,966
|
|
|
2,749
|
|
|
—
|
|
|
8
|
|
||||
Information technology
|
|
2,332
|
|
|
1,855
|
|
|
6,753
|
|
|
5,494
|
|
|
26
|
|
|
23
|
|
||||
Professional services
|
|
1,372
|
|
|
1,681
|
|
|
3,677
|
|
|
4,495
|
|
|
(18
|
)
|
|
(18
|
)
|
||||
Legal Settlement
|
|
—
|
|
|
4,009
|
|
|
—
|
|
|
4,009
|
|
|
NM
|
|
NM
|
||||||
General and administrative
|
|
3,027
|
|
|
3,160
|
|
|
6,477
|
|
|
8,697
|
|
|
(4
|
)
|
|
(26
|
)
|
||||
Total expenses
|
|
22,703
|
|
|
27,740
|
|
|
68,131
|
|
|
75,766
|
|
|
(18
|
)
|
|
(10
|
)
|
||||
Net operating income
|
|
7,151
|
|
|
5,752
|
|
|
28,050
|
|
|
24,105
|
|
|
24
|
|
|
16
|
|
||||
Gain on sale of operations
|
|
—
|
|
|
—
|
|
|
524
|
|
|
—
|
|
|
NM
|
|
NM
|
||||||
Income before income taxes
|
|
7,151
|
|
|
5,752
|
|
|
28,574
|
|
|
24,105
|
|
|
24
|
|
|
19
|
|
||||
Provision for income taxes
|
|
1,783
|
|
|
1,620
|
|
|
7,236
|
|
|
7,013
|
|
|
10
|
|
|
3
|
|
||||
Net income
|
|
$
|
5,368
|
|
|
$
|
4,132
|
|
|
$
|
21,338
|
|
|
$
|
17,092
|
|
|
30
|
%
|
|
25
|
%
|
|
|
Three Months Ended September 30,
|
|
%
Change |
|||||||
|
|
2018
|
|
2017
|
|
||||||
Net income
|
|
$
|
5,368
|
|
|
$
|
4,132
|
|
|
30
|
%
|
Add: Stock-based compensation expense
|
|
3,695
|
|
|
4,233
|
|
|
(13
|
)
|
||
Add: Intangible amortization
|
|
419
|
|
|
469
|
|
|
(11
|
)
|
||
Add: Tax benefit from goodwill amortization
|
|
59
|
|
|
156
|
|
|
(62
|
)
|
||
Economic Earnings
|
|
$
|
9,541
|
|
|
$
|
8,990
|
|
|
6
|
%
|
Diluted weighted average shares outstanding
|
|
8,598,230
|
|
|
8,420,749
|
|
|
|
|||
Economic Earnings per share
|
|
$
|
1.11
|
|
|
$
|
1.07
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
%
Change |
|||||||
|
|
2018
|
|
2017
|
|
||||||
Net Income
|
|
$
|
21,338
|
|
|
$
|
17,092
|
|
|
25
|
%
|
Add: Stock-based compensation expense
|
|
11,658
|
|
|
12,298
|
|
|
(5
|
)
|
||
Add: Intangible amortization
|
|
1,255
|
|
|
1,449
|
|
|
(13
|
)
|
||
Add: Tax benefit from goodwill amortization
|
|
177
|
|
|
469
|
|
|
(62
|
)
|
||
Economic Earnings
|
|
$
|
34,428
|
|
|
$
|
31,308
|
|
|
10
|
%
|
Diluted weighted average shares outstanding
|
|
8,561,918
|
|
|
8,350,926
|
|
|
|
|||
Economic Earnings per share
|
|
$
|
4.02
|
|
|
$
|
3.75
|
|
|
|
|
|
Payments due in:
|
||||||||||||||||||
|
|
Total
|
|
Less than
1 year
|
|
1-3
years
|
|
4-5
years
|
|
After 5
years
|
||||||||||
Purchase obligations
(1)
|
|
$
|
10,120
|
|
|
$
|
3,032
|
|
|
$
|
3,705
|
|
|
$
|
1,759
|
|
|
$
|
1,624
|
|
Operating lease obligations
|
|
$
|
13,507
|
|
|
$
|
1,908
|
|
|
$
|
4,272
|
|
|
$
|
3,501
|
|
|
$
|
3,826
|
|
(1)
|
A “purchase obligation” is defined as an agreement to purchase goods or services that is enforceable and legally binding and that specifies all significant terms, including (a) fixed or minimum quantities to be purchased; (b) fixed, minimum or variable price provisions; and (c) the approximate timing of the transaction. Our purchase obligations relate to obligations associated with implementing and operating new information technology platforms and outsourcing services. The above purchase obligations exclude agreements that are cancelable without significant penalty.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total
number of
shares
purchased
|
|
Average
price paid
per share
|
|
Total number
of shares
purchased as
part of publicly
announced
plans or
programs
|
|
Maximum number (or
approximate
dollar value)
of shares that
may yet be
purchased
under the
plans or
programs (1)
|
||||||
Repurchase program
(1)
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
9,366,000
|
|
Canadian Plan
(2)
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
CDN
|
$
|
3,478,000
|
|
Employee transactions
(3)
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
July 1-31, 2018
|
|
118
|
|
|
$
|
59.40
|
|
|
—
|
|
|
—
|
|
(1)
|
On July 20, 2012, our Board of Directors authorized management to repurchase up to $10.0 million of our outstanding common stock on the open market or in privately negotiated transactions. In July 2016, Westwood's Board of Directors authorized an additional $5.0 million of repurchases under the share repurchase program. The share repurchase program has no expiration date and may be discontinued at any time by the Board of Directors.
|
(2)
|
On April 18, 2013, our stockholders approved the Share Award Plan of Westwood Holdings Group, Inc. for Service Provided in Canada to its Subsidiaries (the “Canadian Plan”), which contemplates a trustee purchasing up to $10.0 million CDN of our outstanding common stock on the open market for the purpose of making share awards to our Canadian employees. The Canadian Plan has no expiration date and may be discontinued at any time by the Board of Directors.
|
(3)
|
Consists of shares of common stock tendered by an employee at the market close price on the date of vesting in order to satisfy the employee’s minimum tax withholding obligations from vested restricted shares. We anticipate having additional shares tendered in subsequent periods for the same purpose.
|
ITEM 6.
|
EXHIBITS
|
10.1*
|
|
|
|
|
|
31.1*
|
|
|
|
|
|
31.2*
|
|
|
|
|
|
32.1**
|
|
|
|
|
|
32.2**
|
|
|
|
|
|
101.INS*
|
|
XBRL Instance Document
|
|
|
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
Dated:
|
October 24, 2018
|
WESTWOOD HOLDINGS GROUP, INC.
|
||
|
|
|
|
|
|
|
By:
|
|
/s/ Brian O. Casey
|
|
|
|
|
Brian O. Casey
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
By:
|
|
/s/ Tiffany B. Kice
|
|
|
|
|
Tiffany B. Kice
|
|
|
|
|
Chief Financial Officer and Treasurer
|
Lease Months
|
Annual Basic Rental Rate Per Rentable Square Foot
|
Monthly Basic Rental Installment
|
9/1/2018 – 11/30/2018
|
$0
|
$0
|
12/1/2018 – 11/30/2019
|
$36.00
|
$14,235.00
|
12/1/2019 – 11/30/2020
|
$37.08
|
$14,662.05
|
12/1/2020 – 11/30/2021
|
$38.19
|
$15,100.96
|
12/1/2021 – 11/30/2022
|
$39.34
|
$15,555.69
|
12/1/2022 – 11/30/2023
|
$40.52
|
$16,022.28
|
12/1/2023 – 11/30/2024
|
$41.74
|
$16,504.69
|
12/1/2024 – 12/31/2025
|
$42.99
|
$16,998.96
|
By:
|
Crescent TCI GP, LLC,
|
1.
|
I have reviewed this report on Form 10-Q of Westwood Holdings Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
/s/ Brian O. Casey
|
Brian O. Casey
|
President & Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-Q of Westwood Holdings Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
/s/ Tiffany B. Kice
|
Tiffany B. Kice
|
Chief Financial Officer and Treasurer
|
/s/ Brian O. Casey
|
Brian O. Casey
|
President & Chief Executive Officer
|
/s/ Tiffany B. Kice
|
Tiffany B. Kice
|
Chief Financial Officer and Treasurer
|