SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 2004
WESTWOOD HOLDINGS GROUP, INC.
(Exact name of registrant as specified in charter)
Delaware 001-31234 75-2969997
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
300 Crescent Court, Suite 1300, Dallas, Texas 75201
(Address of principal executive offices)
(214) 756-6900
(Registrant's telephone number, including area code)
ITEM 7. EXHIBITS
(c) Exhibits: The following exhibit is furnished with this report:
Exhibit Number Description
99.1 Press Release dated April 21, 2004, entitled "Westwood Holdings
Group, Inc. Reports First Quarter 2004 Results and Declares
Quarterly Dividend"
ITEM 9. REGULATION FD DISCLOSURE / RESULTS OF OPERATIONS AND FINANCIAL CONDITION
In accordance with Securities and Exchange Commission Release No. 34-47583, the
following information, which is being furnished pursuant to the requirements of
Item 12, "Results of Operations and Financial Condition," is being reported
under Item 9, "Regulation FD Disclosure."
On April 21, 2004, Westwood Holdings Group, Inc. issued a press release entitled
"Westwood Holdings Group, Inc. Reports First Quarter 2004 Results and Declares
Quarterly Dividend," a copy of which is furnished with this Current Report on
Form 8-K as Exhibit 99.1. The information in this Current Report on Form 8-K
shall not be deemed to be "filed" for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section, nor shall it be deemed incorporated by reference in
any filing of the Company under the Securities Act of 1933, as amended.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: April 21, 2004
WESTWOOD HOLDINGS GROUP, INC.
By: /s/ Brian O. Casey
-------------------------------------
Brian O. Casey,
President and Chief Operating Officer
EXHIBIT INDEX
Exhibit Number Description
99.1 Press release dated April 21, 2004, entitled "Westwood
Holdings Group, Inc. Reports First Quarter 2004 Results and
Declares Quarterly Dividend"
Exhibit 99.1
Westwood Holdings Group, Inc. Reports First Quarter 2004 Results and Declares
Quarterly Dividend
Dallas, April 21, 2004 - Westwood Holdings Group, Inc. (NYSE: WHG) today
reported 2004 first quarter revenues of $5.0 million, net income of $1.1
million, and earnings per diluted share of $0.21. This compares to revenues of
$5.0 million, net income of $1.3 million and earnings per diluted share of $0.23
in the first quarter of 2003. Total expenses for the 2004 first quarter were
$3.2 million compared to $3.0 million for the 2003 first quarter.
Assets under management were $3.9 billion as of March 31, 2004, an increase of
1.6% compared to $3.8 billion on March 31, 2003. Average assets under management
for the first quarter of 2004 were $3.9 billion, a decrease of 0.8% compared
with the first quarter of 2003. The increase in period ending assets under
management was principally attributable to the market appreciation of assets
under management as well as inflows from new clients offset by the withdrawal of
assets by certain clients.
Westwood also announced today that its Board of Directors has approved the
payment of a quarterly cash dividend of $0.04 per common share, payable on July
1, 2004 to stockholders of record on June 15, 2004.
Susan M. Byrne, Westwood's founder and Chief Executive Officer commented, "We
are on track to achieve our five-year goal of diversifying our business by
product and by delivery channel. We have upgraded and added talent over the past
few years to deliver established products to the managed account marketplace and
to create new products for the institutional delivery channel. Westwood Trust
continues to see nice growth, especially in the enhanced balanced product, which
comprises ten different asset classes and is offered to small institutions,
foundations and high net worth clients. Westwood Management manages the value
and income-oriented asset classes for Westwood Trust, while outside subadvisors
focus on the growth, international and high yield areas. The customer receives
an institutional quality product from "best of breed" managers at a cost that is
extremely competitive and with the support of a talented client service team
that is singularly focused on their needs."
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 and foundations, mutual funds and clients of Westwood Trust.
Westwood Trust provides, to institutions and high net worth individuals, trust
and custodial services and participation in common trust funds that it sponsors.
Westwood Holdings Group, Inc. trades on the New York Stock Exchange under the
symbol "WHG." For more information, please visit the Company's website at
www.westwoodgroup.com.
Note on Forward-looking Statements
Statements that are not purely historical facts, including statements about
anticipated or expected future revenue and earnings growth and profitability, as
well as other statements including words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend," "should," "could," "goal," "target,"
"designed," "on track," "continue," "comfortable with," "optimistic," "look
forward to" and other similar expressions, constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are subject to known and unknown risks, uncertainties
and other factors, which may cause actual results to be materially different
from those contemplated by the forward-looking statements. Such factors include
the risks and uncertainties referenced in our documents filed with, or furnished
to, the Securities and Exchange Commission, including without limitation those
identified under the caption "Forward-Looking Statements and Risk Factors" in
the Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. Readers are cautioned not to place undue reliance on
forward-looking statements.
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three months ended
March 31,
-------------------
2004 2003
------ ------
REVENUES:
Advisory fees ................................... $3,420 $3,620
Trust fees ...................................... 1,452 1,139
Other revenues .................................. 171 253
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Total revenues ................................ 5,043 5,012
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EXPENSES:
Employee compensation and benefits .............. 2,337 2,119
Sales and marketing ............................. 100 143
Information technology .......................... 172 175
Professional services ........................... 224 259
General and administrative ...................... 381 349
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Total expenses ................................ 3,214 3,045
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Income before income taxes ......................... 1,829 1,967
Provision for income tax expense ................... 712 717
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Net income ......................................... $1,117 $1,250
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Earnings per share:
Basic ........................................... $ 0.21 $ 0.23
Diluted ......................................... $ 0.21 $ 0.23
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of March 31, 2004 and December 31, 2003
(in thousands, except par values and share amounts)
(unaudited)
March 31, December 31,
2004 2003
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ASSETS
Current Assets:
Cash and cash equivalents ..................... $ 2,603 $ 3,643
Accounts receivable ........................... 2,113 1,931
Investments, at market value .................. 18,342 17,413
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Total current assets ...................... 23,058 22,987
Goodwill ...................................... 2,302 2,302
Other assets, net ............................. 1,031 948
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Total assets .............................. $ 26,391 $ 26,237
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities ...... $ 1,112 $ 935
Dividends payable ............................. 222 167
Compensation and benefits payable ............. 738 2,776
Income taxes payable .......................... 1,281 472
-------- --------
Total current liabilities ................. 3,353 4,350
Other liabilities ............................. 25 34
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Total liabilities ......................... 3,378 4,384
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Stockholders' Equity:
Common stock, $0.01 par value, authorized
10,000,000 shares, issued 5,549,472 and
outstanding 5,549,119 shares at
March 31, 2004, issued 5,550,472 and
outstanding 5,550,119 shares at
December 31, 2003 ............................. 55 56
Additional paid-in capital .................... 12,996 12,952
Treasury stock, at cost - 353 shares at
March 31, 2004 and December 31, 2003 ......... (6) (6)
Unamortized stock compensation ................ (2,387) (2,609)
Retained earnings ............................. 12,355 11,460
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Total stockholders' equity ................ 23,013 21,853
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Total liabilities and stockholders' equity ......... $ 26,391 $ 26,237
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SOURCE: Westwood Holdings Group, Inc.
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CONTACT:
Westwood Holdings Group, Inc.
Bill Hardcastle
(214) 756-6900