================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ---------- 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): February 9, 2005 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.) 200 Crescent Court, Suite 1200 Dallas, Texas 75201 (Address of principal executive offices) (214) 756-6900 (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ITEM 2.02: 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 2.02, "Results of Operations and Financial Condition," is being reported under Item 7.01, "Regulation FD Disclosure." On February 9, 2005, Westwood Holdings Group, Inc. issued a press release entitled "Westwood Holdings Group, Inc. Reports Q4 and Fiscal Year 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. ITEM 7.01: REGULATION FD DISCLOSURE Westwood announced today that its Board of Directors has approved the payment of a quarterly cash dividend of $0.08 per common share, payable on April 1, 2005 to stockholders of record on March 15, 2005. ITEM 9.01: FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits: The following exhibit is furnished with this report: Exhibit Number Description - -------------- -------------------------------------------------------------- 99.1 Press Release dated February 9, 2005, entitled "Westwood Holdings Group, Inc. Reports Q4 and Fiscal Year 2004 Results and Declares Quarterly Dividend"
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: February 9, 2005 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 February 9, 2005, entitled "Westwood Holdings Group, Inc. Reports Q4 and Fiscal Year 2004 Results and Declares Quarterly Dividend"
WESTWOOD HOLDINGS GROUP, INC. REPORTS Q4 AND FISCAL YEAR 2004 RESULTS AND DECLARES QUARTERLY DIVIDEND DALLAS, Feb. 9 /PRNewswire-FirstCall/ -- Westwood Holdings Group, Inc. (NYSE: WHG) today reported 2004 fourth quarter revenues of $5.1 million, net income of $896,000, and earnings per diluted share of $0.16. This compares to revenues of $4.7 million and net income of $1.1 million, or $0.21 per diluted share in the fourth quarter of 2003. For the fiscal year ended December 31, 2004, Westwood reported revenues of $20.0 million and net income of $3.7 million, or $0.68 per diluted share, compared to revenues of $20.1 million and net income of $4.9 million, or $0.90 per diluted share for the 2003 fiscal year. Total expenses for the 2004 fourth quarter were $3.7 million compared to $2.9 million for the 2003 fourth quarter, and were $14.0 million for the 2004 fiscal year compared to $12.2 million for the 2003 fiscal year, an increase of approximately $1.8 million. Employee compensation and benefits costs for the year 2004 increased by approximately $1.3 million compared to 2003, primarily as a result of higher restricted stock expense. Professional services costs increased by approximately $356,000 primarily due to increased costs associated with Sarbanes-Oxley compliance. Susan M. Byrne, Westwood's founder and Chief Executive Officer commented, "While many of our peers in the asset management industry have seen significant increases in cash compensation, we are gratified that our employees have chosen to receive restricted stock in lieu of increased cash compensation in an effort to participate in the future growth of the company." Assets under management were $4.0 billion as of December 31, 2004, an increase of 1.1% compared to December 31, 2003. Quarterly average assets under management for the year 2004 were $3.9 billion compared to $4.0 billion for the year 2003. The increase in period ending assets under management was primarily due to the market appreciation of assets under management offset by the withdrawal of assets by certain clients. Westwood Trust continued its solid growth, reporting record revenue of $5.9 million and net income of $524,000 in 2004, compared to revenue of $4.8 million and net income of $380,000 for 2003. Westwood Trust also reported period ending assets under management of over $1.0 billion for the first time in its history. Westwood also announced today that its Board of Directors has approved the payment of a quarterly cash dividend of $0.08 per common share, payable on April 1, 2005 to stockholders of record on March 15, 2005. Brian O. Casey, Westwood's President and Chief Operating Officer commented, "We are pleased to have delivered improved performance in our flagship LargeCap Value product and another year of strong performance in our seasoned SMidCap Value product. Until recently SMidCap Value has been available exclusively to Westwood Trust clients. We are now focusing on bringing this product to our institutional client base in 2005. We are off to a good start with a new SMidCap client earned last month and additional opportunities in the pipeline. Our AllCap Value and Alternative REAL Income products will complete a three-year record in 2005 and our new SmallCap Value product completed an excellent first year. We have spent considerable time and money over the past several years developing all of these products and look forward to adding additional clients in the years ahead."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 http://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 Year ended December 31, December 31, ----------------------- ----------------------- 2004 2003 2004 2003 ---------- ---------- ---------- ---------- REVENUES: Advisory fees $ 3,229 $ 3,204 $ 13,069 $ 14,008 Trust fees 1,494 1,324 5,818 4,794 Other revenues 340 178 1,093 1,276 Total revenues 5,063 4,706 19,980 20,078 EXPENSES: Employee compensation and benefits 2,458 1,995 9,799 8,492 Sales and marketing 112 112 473 563 Information technology 188 182 692 779 Professional services 401 216 1,248 892 General and administrative 513 392 1,783 1,472 Total expenses 3,672 2,897 13,995 12,198 Income before income taxes 1,391 1,809 5,985 7,880 Provision for income tax expense 495 693 2,299 2,996 Net income $ 896 $ 1,116 $ 3,686 $ 4,884 Earnings per share: Basic $ 0.17 $ 0.21 $ 0.68 $ 0.91 Diluted $ 0.16 $ 0.21 $ 0.68 $ 0.90
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS As of December 31, 2004 and December 31, 2003 (in thousands, except par values and share amounts) (unaudited) 2004 2003 ---------- ---------- ASSETS Current Assets: Cash and cash equivalents $ 720 $ 3,643 Accounts receivable 1,832 1,931 Investments, at market value 18,632 17,413 Other current assets 414 385 Total current assets 21,598 23,372 Goodwill, net of accumulated amortization of $640 2,302 2,302 Deferred income taxes 517 364 Property and equipment, net of accumulated 1,860 199 depreciation of $250 and $620 Total assets $ 26,277 $ 26,237 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued liabilities $ 629 $ 935 Dividends payable 460 167 Compensation and benefits payable 2,703 2,776 Income taxes payable -- 472 Other current liabilities 17 19 Total current liabilities 3,809 4,369 Deferred rent 805 15 Total liabilities 4,614 4,384 Stockholders' Equity: Common stock, $0.01 par value, authorized 10,000,000 shares, issued and outstanding 5,754,147 shares at December 31, 2004; issued 5,550,472 and outstanding 5,550,119 shares at December 31, 2003 58 56 Additional paid-in capital 16,962 12,952 Treasury stock, at cost - 353 shares at December 31, 2003 -- (6) Unamortized stock compensation (4,821) (2,609) Retained earnings 9,464 11,460 Total stockholders' equity 21,663 21,853 Total liabilities and stockholders' equity $ 26,277 $ 26,237 Investor Relations 214-756-6900 SOURCE Westwood Holdings Group, Inc. -0- 02/09/2005 /CONTACT: media, Bill Hardcastle of Westwood Holdings Group, Inc., +1-214-756-6900/ /Web site: http://www.westwoodgroup.com /