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):  October 23, 2014

WESTWOOD HOLDINGS GROUP, INC.
(Exact name of registrant as specified in charter)

Delaware	001-31234	75-2969997	
(State or other jurisdiction
of incorporation)	(Commission
  File Number)	(IRS Employer
    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 October 23, 2014, Westwood Holdings Group, Inc. issued a press release entitled “Westwood Holdings Group, Inc. Reports Third Quarter 2014 Results; Assets Under Management at $19.8 Billion with Net Inflows for the Third Quarter; Quarterly Dividend Increased 14%”, 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 (the “Exchange Act”), as amended, or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

ITEM 7.01:          REGULATION FD DISCLOSURE

Westwood announced today that its Board of Directors has approved the payment of a quarterly cash dividend of $0.50 per common share payable on January 2, 2015 to stockholders of record on December 15, 2014.

ITEM 9.01:          FINANCIAL STATEMENTS AND EXHIBITS

(d)       Exhibits:  The following exhibit is furnished with this report:
Exhibit Number	Description	
 	
99.1	Press Release dated October 23, 2014, entitled “Westwood Holdings Group, Inc. Reports
Third Quarter 2014 Results; Assets Under Management at $19.8 Billion with Net Inflows
for the Third Quarter; Quarterly Dividend Increased 14%”.	

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:      October 23, 2014
 	 	 	
 	WESTWOOD HOLDINGS GROUP, INC.	 	

 	By:	/s/  Tiffany B. Kice	 	
 	 	Tiffany B. Kice	 	
 	 	Chief Financial Officer and Treasurer	 	

EXHIBIT INDEX
Exhibit Number	Description	
 	 	
99.1	Press Release dated October 23, 2014, entitled“Westwood Holdings Group, Inc.
Reports Third Quarter 2014 Results; Assets Under Management at $19.8 Billion
with Net Inflows for the Third Quarter; Quarterly Dividend Increased 14%”.	

Exhibit 99.1

Westwood Holdings Group, Inc. Reports Third Quarter 2014 Results

Assets Under Management at $19.8 Billion with Net Inflows for the Third Quarter

Quarterly Dividend Increased 14%

DALLAS--(BUSINESS WIRE)--October 23, 2014--Westwood Holdings Group, Inc. (NYSE: WHG) today reported third quarter 2014 revenues of $28.1 million, 22% higher than revenues of $23.0 million in the third quarter of 2013. Non-GAAP Economic Earnings per share (“Economic EPS”) were $1.41 compared to $0.97 in the same quarter of the prior year and $1.52 in the second quarter of 2014. Diluted earnings per share were $0.92 compared to $0.57 in the same quarter of 2013 and $1.12 in the second quarter of 2014. This year’s second quarter included $3.4 million in performance fees recognized following the annual performance period in our MLP strategy.

Highlights related to our third quarter 2014 results include:
Revenues increased 22% to $28.1 million compared to the same period last year.
Our Emerging Markets strategy ranked in the top decile of its peer group year to date and received quarterly net inflows of $470 million.
Our Income Opportunity strategy attracted quarterly net inflows exceeding $300 million.
The Westwood SmallCap Fund received a high rating for 3 year, 5 year and overall performance.

Immediately following quarter end, Westwood added a third distinct team to its investment platform. The initial four-person Global Convertible Securities Team joined Westwood on October 1, 2014 and will operate out of a new Westwood office in Boston. The team has been hired to subadvise the Aviva Investors Global Convertibles Absolute Return Fund that it previously managed as Aviva employees. The fund started with approximately $500 million in assets.

Brian Casey, Westwood’s President & CEO, commented, “We are very pleased with our third quarter financial results. Despite a volatile quarter for financial markets, our asset management business experienced positive net inflows and essentially kept pace with this year’s robust second quarter. Our Westwood Funds® continued to enjoy strong investor demand with $165 million of quarterly net inflows, representing 20% in annualized organic growth. Westwood International Advisors reached $3.4 billion in AUM at September 30, 2014, up 15% from June 30, 2014, and continues to attract new client prospects. We have seen some initial interest for our new Global Convertibles strategies and we are in the process of launching both UCITS and mutual fund vehicles which will be available to investors in the next 30 to 120 days subject to regulatory approval.”

Total AUM of $19.8 billion at September 30, 2014 declined 2% from June 30, 2014 primarily due to market depreciation partially offset by net asset inflows. Mutual fund assets, comprising ten Westwood Funds®, grew 4% to $3.4 billion compared to the prior quarter end and climbed 44% compared to the third quarter end of the prior year.

Westwood’s Board of Directors declared a quarterly cash dividend of $0.50 per common share, an increase of 14% from the previous quarterly dividend rate, payable on January 2, 2015 to stockholders of record on December 15, 2014. At quarter-end, Westwood had $90 million in cash and investments, stockholders’ equity of $105 million, and no debt.

We recently discovered an understatement of non-cash stock-based compensation expense for restricted stock grants subject to service and performance conditions however this understatement had no net effect on total stockholders’ equity as of June 30, 2014. The misstatement was not material to any prior period financial statements; however, prior period comparative financial statements have been revised due to the significance of the cumulative impact between 2006 and the second quarter of 2014 of the out-of-period correction to the third quarter of 2014. The non-cash net income impact for each of the first and second quarters of 2014 was an overstatement of approximately $0.2 million for an overstatement of approximately $0.4 million for the first half of 2014. The non-cash net income impact for each of the first, second and third quarters of 2013 was less than $0.1 million, which represented less than $0.1 million for the first nine months of 2013.

Economic Earnings and Economic EPS are non-GAAP performance measures and are explained and reconciled with the most comparable GAAP numbers in the attached tables.

Westwood will host a conference call to discuss third quarter 2014 results and other business matters at 4:30 p.m. Eastern time today. To join the conference call, dial 877-303-6235 (domestic) or 631-291-4837 (international). The conference call can also be accessed via our Investor Relations page at westwoodgroup.com and will be available for replay through October 30, 2014 by dialing 855-859-2056 (domestic) or 404-537-3406 (international) and then entering the passcode 13993952.

About Westwood

Westwood Holdings Group, Inc. provides investment management services to institutional investors, private wealth clients and financial intermediaries. Westwood manages a variety of investment strategies including U.S., Global, and Emerging Markets equities and convertible securities as well as income-oriented portfolios. These strategies are available through separate accounts, commingled funds, the Westwood Funds® family of U.S. mutual funds, and UCITS funds. Westwood has broad-based employee ownership and trades on the New York Stock Exchange under the symbol "WHG." Based in Dallas, Westwood also has offices in Omaha, Toronto and Boston.

For more information on Westwood, please visit www.westwoodgroup.com.

For more information on the Westwood Funds®, please visit www.westwoodfunds.com.

Forward-looking Statements

Statements in this press release that are not purely historical facts, including, without limitation, statements about our expected future financial position, results of operations or cash flows, as well as other statements including without limitation, words such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “intend,” “should,” “could,” “goal,” “may,” “target,” “designed,” “on track,” “comfortable with,” “optimistic” 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. Actual results and the timing of some events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including, without limitation: our ability to identify and successfully market services that appeal to our customers; the significant concentration of our revenues in a small number of our customers; our relationships with investment consulting firms; our relationships with current and potential customers; our ability to retain qualified personnel; our ability to successfully develop and market new investment strategies successfully; our ability to maintain our fee structure in light of competitive fee pressures; competition in the marketplace; downturns in the financial markets; new legislation adversely affecting the financial services industries; interest rates; changes in our effective tax rate; our ability to maintain an effective system of internal controls; and the other risks detailed from time to time in Westwood’s SEC filings, including, but not limited to, its annual report on Form 10-K for the year ended December 31, 2013 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by law, Westwood is not obligated to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

 	 	 	 	 	
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES	 	
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	 	
(in thousands, except per share data and share amounts)	 	
(unaudited)	 	
 	 	 	 	 	
 	 	 	Three Months Ended	 	
 	 	 	September 30,
2014	 	 	June 30,
2014	 	 	September 30,
2013	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	
Advisory fees:	 	 	 	 	 	 	 	 	 	 	 	
Asset based	 	 	$	22,857	 	 	 	$	22,095	 	 	$	17,956	 	 	
Performance based	 	 	 	-	 	 	 	 	3,443	 	 	 	26	 	 	
Trust fees	 	 	 	5,282	 	 	 	 	5,151	 	 	 	4,672	 	 	
Other, net	 	 	 	(17	)	 	 	 	216	 	 	 	344	 	 	
Total revenues	 	 	 	28,122	 	 	 	 	30,905	 	 	 	22,998	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	
Employee compensation and benefits	 	 	 	13,309	 	 	 	 	12,865	 	 	 	12,508	 	 	
Sales and marketing	 	 	 	430	 	 	 	 	375	 	 	 	326	 	 	
Westwood mutual funds	 	 	 	591	 	 	 	 	722	 	 	 	599	 	 	
Information technology	 	 	 	807	 	 	 	 	1,014	 	 	 	690	 	 	
Professional services	 	 	 	983	 	 	 	 	1,189	 	 	 	887	 	 	
General and administrative	 	 	 	1,410	 	 	 	 	1,384	 	 	 	1,250	 	 	
Total expenses	 	 	 	17,530	 	 	 	 	17,549	 	 	 	16,260	 	 	
Income before income taxes	 	 	 	10,592	 	 	 	 	13,356	 	 	 	6,738	 	 	
Provision for income taxes	 	 	 	3,474	 	 	 	 	4,765	 	 	 	2,437	 	 	
Net income	 	 	$	7,118	 	 	 	$	8,591	 	 	$	4,301	 	 	
Other comprehensive income (loss):	 	 	 	 	 	 	 	 	 	 	 	
Foreign currency translation adjustments	 	 	 	(578	)	 	 	 	332	 	 	 	104	 	 	
Total comprehensive income	 	 	$	6,540	 	 	 	$	8,923	 	 	$	4,405	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Earnings per share:	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	$	0.95	 	 	 	$	1.14	 	 	$	0.58	 	 	
Diluted	 	 	$	0.92	 	 	 	$	1.12	 	 	$	0.57	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	 	7,525,489	 	 	 	 	7,523,347	 	 	 	7,374,600	 	 	
Diluted	 	 	 	7,734,309	 	 	 	 	7,679,032	 	 	 	7,597,001	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Economic Earnings	 	 	$	10,881	 	 	 	$	11,708	 	 	$	7,344	 	 	
Economic EPS	 	 	$	1.41	 	 	 	$	1.52	 	 	$	0.97	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Dividends declared per share	 	 	$	0.44	 	 	 	$	0.44	 	 	$	0.40	 	 	

 	 	 	 	
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES	
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	
(in thousands, except per share data and share amounts)	
(unaudited)	
 	 	 	 	
 	 	 	Nine months ended September 30,	
REVENUES:	 	 	2014	 	 	2013	
Advisory fees:	 	 	 	 	 	 	
Asset based	 	 	$	65,341	 	 	 	$	49,989	 	
Performance based	 	 	 	3,806	 	 	 	 	2,561	 	
Trust fees	 	 	 	15,461	 	 	 	 	13,463	 	
Other, net	 	 	 	368	 	 	 	 	560	 	
Total revenues	 	 	 	84,976	 	 	 	 	66,573	 	
 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	
Employee compensation and benefits	 	 	 	39,026	 	 	 	 	36,163	 	
Sales and marketing	 	 	 	1,092	 	 	 	 	947	 	
Westwood mutual funds	 	 	 	1,965	 	 	 	 	1,465	 	
Information technology	 	 	 	2,536	 	 	 	 	2,024	 	
Professional services	 	 	 	3,554	 	 	 	 	2,966	 	
General and administrative	 	 	 	4,242	 	 	 	 	3,723	 	
Total expenses	 	 	 	52,415	 	 	 	 	47,288	 	
Income before income taxes	 	 	 	32,561	 	 	 	 	19,285	 	
Provision for income taxes	 	 	 	11,290	 	 	 	 	7,211	 	
Net income	 	 	$	21,271	 	 	 	$	12,074	 	
Other comprehensive loss:	 	 	 	 	 	 	
Foreign currency translation adjustments	 	 	 	(600	)	 	 	 	(131	)	
Total comprehensive income	 	 	$	20,671	 	 	 	$	11,943	 	
 	 	 	 	 	 	 	
Earnings per share:	 	 	 	 	 	 	
Basic	 	 	$	2.83	 	 	 	$	1.64	 	
Diluted	 	 	$	2.73	 	 	 	$	1.57	 	
 	 	 	 	 	 	 	
Weighted average shares outstanding:	 	 	 	 	 	 	
Basic	 	 	 	7,507,937	 	 	 	 	7,347,376	 	
Diluted	 	 	 	7,801,073	 	 	 	 	7,667,851	 	
 	 	 	 	 	 	 	
Economic Earnings	 	 	$	31,758	 	 	 	$	20,970	 	
Economic EPS	 	 	$	4.07	 	 	 	$	2.73	 	
 	 	 	 	 	 	 	
Dividends declared per share	 	 	$	1.32	 	 	 	$	1.20	 	

 	 	 	 	 	 	 	
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES	
CONSOLIDATED BALANCE SHEETS	
As of September 30, 2014 and December 31, 2013	
(in thousands, except par value and share amounts)	
 	 	 	 	 	 	 	
 	 	 	September 30,
2014
(unaudited)	 	 	December 31,
2013	
ASSETS	 	 	 	 	 	 	
Current Assets:	 	 	 	 	 	 	
Cash and cash equivalents	 	 	$	16,485	 	 	 	$	10,864	 	
Accounts receivable	 	 	 	13,784	 	 	 	 	14,468	 	
Investments, at fair value	 	 	 	73,099	 	 	 	 	64,554	 	
Deferred income taxes	 	 	 	4,161	 	 	 	 	3,812	 	
Other current assets	 	 	 	1,948	 	 	 	 	2,521	 	
Total current assets	 	 	 	109,477	 	 	 	 	96,219	 	
Goodwill	 	 	 	11,255	 	 	 	 	11,255	 	
Deferred income taxes	 	 	 	5,740	 	 	 	 	2,041	 	
Intangible assets, net	 	 	 	3,520	 	 	 	 	3,789	 	
Property and equipment, net of accumulated depreciation of $2,585 and $2,155	 	 	 	2,623	 	 	 	 	2,746	 	
Total assets	 	 	$	132,615	 	 	 	$	116,050	 	
 	 	 	 	 	 	 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	
Current Liabilities:	 	 	 	 	 	 	
Accounts payable and accrued liabilities	 	 	$	2,098	 	 	 	$	2,082	 	
Dividends payable	 	 	 	4,272	 	 	 	 	3,935	 	
Compensation and benefits payable	 	 	 	13,551	 	 	 	 	17,805	 	
Income taxes payable	 	 	 	5,433	 	 	 	 	1,031	 	
Total current liabilities	 	 	 	25,354	 	 	 	 	24,853	 	
Accrued dividends	 	 	 	1,204	 	 	 	 	1,266	 	
Deferred rent	 	 	 	1,157	 	 	 	 	1,268	 	
Total long-term liabilities	 	 	 	2,361	 	 	 	 	2,534	 	
Total liabilities	 	 	 	27,715	 	 	 	 	27,387	 	
 	 	 	 	 	 	 	
Stockholders’ Equity:	 	 	 	 	 	 	
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 8,989,877 and outstanding 8,288,082 shares at September 30, 2014; issued 8,778,613 and outstanding 8,176,417 shares at December 31, 2013	 	 	 	90	 	 	 	 	88	 	
Additional paid-in capital	 	 	 	116,189	 	 	 	 	103,853	 	
Treasury stock, at cost – 701,795 shares at September 30, 2014; 602,196 shares at December 31, 2013	 	 	 	(29,028	)	 	 	 	(23,169	)	
Accumulated other comprehensive loss	 	 	 	(857	)	 	 	 	(257	)	
Retained earnings	 	 	 	18,506	 	 	 	 	8,148	 	
Total stockholders’ equity	 	 	 	104,900	 	 	 	 	88,663	 	
Total liabilities and stockholders’ equity	 	 	$	132,615	 	 	 	$	116,050	 	

 	 	 	 	
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES	
CONSOLIDATED STATEMENTS OF CASH FLOWS	
(in thousands)	
(unaudited)	
 	 	 	 	
 	 	 	Nine Months Ended September 30,	
 	 	 	2014	 	 	2013	
CASH FLOWS FROM OPERATING ACTIVITIES:	 	 	 	 	 	 	
Net income	 	 	$	21,271	 	 	 	$	12,074	 	
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	 	 	 	
Depreciation	 	 	 	436	 	 	 	 	288	 	
Amortization of intangible assets	 	 	 	270	 	 	 	 	270	 	
Unrealized (gains) losses on trading investments	 	 	 	(29	)	 	 	 	430	 	
Stock based compensation expense	 	 	 	10,103	 	 	 	 	8,512	 	
Deferred income taxes	 	 	 	(4,227	)	 	 	 	75	 	
Excess tax benefits from stock based compensation	 	 	 	(1,850	)	 	 	 	(696	)	
Net purchases of investments – trading securities	 	 	 	(8,528	)	 	 	 	4,202	 	
Changes in operating assets and liabilities:	 	 	 	 	 	 	
Accounts receivable	 	 	 	478	 	 	 	 	(3,241	)	
Other current assets	 	 	 	367	 	 	 	 	(480	)	
Accounts payable and accrued liabilities	 	 	 	10	 	 	 	 	369	 	
Compensation and benefits payable	 	 	 	(3,887	)	 	 	 	(668	)	
Income taxes payable and prepaid income taxes	 	 	 	6,496	 	 	 	 	(1,922	)	
Other liabilities	 	 	 	(42	)	 	 	 	20	 	
Net cash provided by operating activities	 	 	 	20,868	 	 	 	 	19,233	 	
 	 	 	 	 	 	 	
CASH FLOWS FROM INVESTING ACTIVITIES:	 	 	 	 	 	 	
Purchases of property and equipment	 	 	 	(337	)	 	 	 	(651	)	
Net cash used in investing activities	 	 	 	(337	)	 	 	 	(651	)	
 	 	 	 	 	 	 	
CASH FLOWS FROM FINANCING ACTIVITIES:	 	 	 	 	 	 	
Purchases of treasury stock	 	 	 	(669	)	 	 	 	(878	)	
Restricted stock returned for payment of taxes	 	 	 	(5,190	)	 	 	 	(3,789	)	
Excess tax benefits from stock based compensation	 	 	 	1,850	 	 	 	 	696	 	
Cash dividends	 	 	 	(10,637	)	 	 	 	(6,346	)	
Net cash used in financing activities	 	 	 	(14,646	)	 	 	 	(10,317	)	
Effect of currency rate changes on cash	 	 	 	(264	)	 	 	 	(73	)	
NET INCREASE IN CASH AND CASH EQUIVALENTS	 	 	 	5,621	 	 	 	 	8,192	 	
Cash and cash equivalents, beginning of period	 	 	 	10,864	 	 	 	 	3,817	 	
Cash and cash equivalents, end of period	 	 	$	16,485	 	 	 	$	12,009	 	
 	 	 	 	 	 	 	
Supplemental cash flow information:	 	 	 	 	 	 	
Cash paid during the period for income taxes	 	 	$	9,073	 	 	 	$	9,093	 	

 	 	 	 	 	
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES	 	
Reconciliation of Net Income to Economic Earnings	 	
(in thousands, except per share data and share amounts)	 	
(unaudited)	 	
 	 	 	 	 	
 	 	 	Three Months Ended	 	
 	 	 	September 30,
2014	 	 	June 30,
2014	 	 	September 30,
2013	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	 	$	7,118	 	 	$	8,591	 	 	$	4,301	 	 	 	
Add: Stock based compensation expense	 	 	 	3,635	 	 	 	2,989	 	 	 	2,915	 	 	 	
Add: Intangible amortization	 	 	 	90	 	 	 	90	 	 	 	90	 	 	 	
Add: Tax benefit from goodwill amortization	 	 	 	38	 	 	 	38	 	 	 	38	 	 	 	
Economic earnings	 	 	$	10,881	 	 	$	11,708	 	 	$	7,344	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted weighted average shares	 	 	 	7,734,309	 	 	 	7,679,032	 	 	 	7,597,001	 	 	 	
Economic EPS	 	 	$	1.41	 	 	$	1.52	 	 	$	0.97	 	 	 	

 	 	 	 	Nine Months Ended	 	 	 	
 	 	 	 	 	 	September 30,
2014	 	 	September 30,
2013	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	 	 	 	 	 	$	21,271	 	 	$	12,074	 	 	 	 	
Add: Stock based compensation expense	 	 	 	 	 	 	10,103	 	 	 	8,512	 	 	 	 	
Add: Intangible amortization	 	 	 	 	 	 	270	 	 	 	270	 	 	 	 	
Add: Tax benefit from goodwill amortization	 	 	 	 	 	 	114	 	 	 	114	 	 	 	 	
Economic earnings	 	 	 	 	 	$	31,758	 	 	$	20,970	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted weighted average shares	 	 	 	 	 	 	7,801,073	 	 	 	7,667,851	 	 	 	 	
Economic EPS	 	 	 	 	 	$	4.07	 	 	$	2.73	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic Earnings and Economic Earnings per share (or “Economic EPS”). We provide these measures in addition to, not as a substitute for, net income and earnings per share, which are reported on a GAAP basis. Management reviews Economic Earnings and Economic EPS to evaluate Westwood’s ongoing performance, allocate resources, and review dividend policy. We believe that these non-GAAP performance measures, while not substitutes for GAAP net income or earnings per share, are useful for both management and investors when evaluating Westwood’s underlying operating and financial performance and its available resources. We do not advocate that investors consider these non-GAAP measures without considering financial information prepared in accordance with GAAP.

We define Economic Earnings as net income plus non-cash stock based compensation expense, amortization of intangible assets and deferred taxes related to goodwill. Although depreciation on fixed assets is a non-cash expense, we do not add it back when calculating Economic Earnings because depreciation charges represent an allocation of the decline in the value of the related assets that will ultimately require replacement. In addition, we do not adjust Economic Earnings for tax deductions related to restricted stock expense or amortization of intangible assets. Economic EPS represents Economic Earnings divided by diluted weighted average shares outstanding.

(WHG-G)

CONTACT:
Westwood Holdings Group, Inc.
Tiffany B. Kice, 214-756-6900
Chief Financial Officer and Treasurer