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): July 29, 2015

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):

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    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 July 29, 2015, Westwood Holdings Group, Inc. issued a press release entitled “Westwood Holdings Group, Inc. Reports Second Quarter 2015 Results; Total Assets Under Management Increase to a Record $23.1 Billion”, 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 October 1, 2015 to stockholders of record on September 11, 2015.

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 July 29, 2015, entitled “Westwood Holdings Group, Inc. Reports Second Quarter 2015 Results; Total Assets Under Management Increase to a Record $23.1 Billion”.	

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: July 29, 2015

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 July 29, 2015, entitled “Westwood Holdings Group, Inc. Reports Second Quarter 2015 Results; Total Assets Under Management Increase to a Record $23.1 Billion”.	

Westwood Holdings Group, Inc. Reports Second Quarter 2015 Results

Total Assets Under Management Increase to Record $23.1 Billion

Dallas, TX, July 29, 2015 – Westwood Holdings Group, Inc. (NYSE: WHG) today reported second quarter 2015 revenues of $37.3 million, a $6.4 million, or 21%, increase compared to revenues of $30.9 million in the second quarter of 2014, with $2.7 million of the increase attributable to the Woodway acquisition. Second quarter 2015 net income increased 14% to $9.8 million compared to net income of $8.6 million for the same period of the prior year. Diluted earnings per share (“Diluted EPS”) was $1.23, 10% higher than Diluted EPS of $1.12 for the second quarter of 2014.

Second quarter 2015 non-GAAP Economic Earnings of $14.4 million were 23% higher than the $11.7 million recorded in the second quarter of 2014. Non-GAAP Economic Earnings per share of $1.80 increased 18% from $1.52 in the second quarter of 2014.

Highlights related to our second quarter 2015 results include:
 	 	
▪	Revenues increased 21% to $37.3 million compared to the same period last year.	

▪	Total Assets under Management (“AUM”) increased to a record $23.1 billion.	

▪	Following the acquisition of Woodway Financial Advisors on April 1, our Private Wealth business represents approximately 25% of Westwood's total AUM.	

▪	We launched three new mutual funds during the quarter bringing the mutual funds we now offer to a total of 15.	

Brian Casey, Westwood’s President & CEO, commented, “We have experienced an exciting twelve months, with AUM reaching record levels, tremendous growth in our Emerging Markets and Income Opportunity strategies and the addition of our Global Convertibles team. In addition, we are very pleased to have closed our previously-announced acquisition of Woodway Financial Advisors, which enables us to partner with talented individuals in the growing Houston market while expanding our footprint in the private wealth arena. Finally, we launched three new U.S. mutual funds during the quarter, and our third UCITS sub-fund was seeded by a Canadian institutional investor. All of this demonstrates our commitment to growing our U.S. institutional, private wealth and retail business, as well as our non-U.S. activities.”

Westwood’s Board of Directors declared a quarterly cash dividend of $0.50 per common share, payable on October 1, 2015 to stockholders of record on September 11, 2015. At quarter end, Westwood had $69 million in cash and investments, stockholders’ equity of $124 million, and no debt.

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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 second quarter 2015 results and other business matters at 4:30 p.m. Eastern time today. To join the conference call, dial 877-303-6235 (domestic and Canada) 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 August 5, 2015 by dialing 855-859-2056 (domestic and Canada) or 404-537-3406 (international) and then entering the passcode 77061168.

About Westwood

Westwood Holdings Group, Inc. provides investment management services to institutional investors, private wealth clients and financial intermediaries. With $23.1 billion in assets under management (as of June 30, 2015), the firm offers a range of investment strategies including U.S. equities, Master Limited Partnerships (MLPs), Multi-Asset, Global and Emerging Markets equities, and Global Convertible securities portfolios. Access to these strategies is available through separate accounts, commingled funds, the Westwood Funds® family of mutual funds, and UCITS funds. Westwood benefits from significant, broad-based employee ownership and trades on the New York Stock Exchange under the symbol “WHG.” Based in Dallas, Westwood also maintains offices in Toronto, Boston, Omaha and Houston.

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

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

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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,” “forecast,” “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: regulations adversely affecting the financial services industry; the composition and market value of our assets under management; competition in the investment management industry; our investments in foreign companies; our ability to develop and market new investment strategies successfully; our ability to pursue and properly integrate acquired businesses; litigation risks; our ability to retain qualified personnel; our relationships with current and potential customers; our ability to properly address conflicts of interest; our ability to maintain adequate insurance coverage; our ability to maintain an effective information systems; our ability to maintain effective cyber security; 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; the significant concentration of our revenues in a small number of customers; 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, 2014 and its quarterly reports on Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015. 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.

# # # #

SOURCE: Westwood Holdings Group, Inc.

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

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WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share and share amounts)
(unaudited)

 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	
 	June 30,
2015	 	March 31,
2015	 	June 30,
2014	
REVENUES:	 	 	 	 	 	
Advisory fees:	 	 	 	 	 	
Asset based	$	27,458	
 	 	$	23,929	
 	 	$	22,095	
 	
Performance based	1,918	
 	 	288	
 	 	3,443	
 	
Trust fees	7,921	
 	 	5,150	
 	 	5,151	
 	
Other, net	14	
 	 	241	
 	 	216	
 	
Total revenues	37,311	
 	 	29,608	
 	 	30,905	

EXPENSES:	 	 	 	 	 	
Employee compensation and benefits	$	16,512	
 	 	$	15,309	
 	 	$	12,865	
 	
Sales and marketing	496	
 	 	395	
 	 	375	
 	
Westwood mutual funds	901	
 	 	827	
 	 	722	
 	
Information technology	1,422	
 	 	1,037	
 	 	1,014	
 	
Professional services	1,031	
 	 	2,072	
 	 	1,189	
 	
General and administrative	2,197	
 	 	1,590	
 	 	1,384	
 	
Total expenses	22,559	
 	 	21,230	
 	 	17,549	
 	
Income before income taxes	14,752	
 	 	8,378	
 	 	13,356	
 	
Provision for income taxes	4,957	
 	 	2,768	
 	 	4,765	
 	
Net income	$	9,795	
 	 	$	5,610	
 	 	$	8,591	
 	
Other comprehensive income (loss):	 	 	 	 	 	
   Foreign currency translation adjustments	233	
 	 	(1,388	)	 	332	
 	
Total comprehensive income	$	10,028	
 	 	$	4,222	
 	 	$	8,923	

Earnings per share:	 	 	 	 	 	
   Basic	$	1.25	
 	 	$	0.74	
 	 	$	1.14	
 	
   Diluted	$	1.23	
 	 	$	0.71	
 	 	$	1.12	

Weighted average shares outstanding:	 	 	 	 	 	
   Basic	7,806,031	
 	 	7,596,223	
 	 	7,523,347	
 	
   Diluted	7,961,406	
 	 	7,861,090	
 	 	7,679,032	

Economic Earnings	$	14,352	
 	 	$	9,416	
 	 	$	11,708	
 	
Economic EPS	$	1.80	
 	 	$	1.20	
 	 	$	1.52	

Dividends declared per share	$	0.50	
 	 	$	0.50	
 	 	$	0.44	

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WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share and share amounts)
(unaudited)

 	
 	 	 	 	 	 	 	 	 	
 	Six Months Ended June 30,	
 	2015	 	2014	
REVENUES:	 	 	 	
Advisory fees:	 	 	 	
Asset based	$	51,387	
 	 	$	42,484	
 	
Performance based	2,206	
 	 	3,806	
 	
Trust fees	13,071	
 	 	10,179	
 	
Other, net	255	
 	 	385	
 	
Total revenues	66,919	
 	 	56,854	

EXPENSES:	 	 	 	
Employee compensation and benefits	31,821	
 	 	25,717	
 	
Sales and marketing	891	
 	 	662	
 	
Westwood mutual funds	1,728	
 	 	1,374	
 	
Information technology	2,459	
 	 	1,729	
 	
Professional services	3,103	
 	 	2,571	
 	
General and administrative	3,787	
 	 	2,832	
 	
Total expenses	43,789	
 	 	34,885	
 	
Income before income taxes	23,130	
 	 	21,969	
 	
Provision for income taxes	7,725	
 	 	7,816	
 	
Net income	$	15,405	
 	 	$	14,153	
 	
Other comprehensive loss:	 	 	 	
   Foreign currency translation adjustments	(1,155	)	 	(22	)	
Total comprehensive income	$	14,250	
 	 	$	14,131	

Earnings per share:	 	 	 	
   Basic	$	2.00	
 	 	$	1.89	
 	
   Diluted	$	1.93	
 	 	$	1.82	

Weighted average shares outstanding:	 	 	 	
   Basic	7,701,707	
 	 	7,499,016	
 	
   Diluted	7,976,790	
 	 	7,774,410	

Economic Earnings	$	23,768	
 	 	$	20,877	
 	
Economic EPS	$	2.98	
 	 	$	2.69	

Dividends declared per share	$	1.00	
 	 	$	0.88	

 

5

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except par value and share amounts)

 	 	 	 	 	 	 	 	
 	June 30,
2015
(unaudited)	 	December 31,
2014	
ASSETS	 	 	 	
Current Assets:	 	 	 	
   Cash and cash equivalents	$	22,767	
 	 	$	18,131	
 	
   Accounts receivable	21,890	
 	 	14,540	
 	
   Investments, at fair value	46,195	
 	 	79,620	
 	
   Deferred income taxes	4,634	
 	 	4,060	
 	
   Other current assets	2,164	
 	 	2,413	
 	
      Total current assets	97,650	
 	 	118,764	
 	
Goodwill	22,910	
 	 	11,255	
 	
Deferred income taxes	3,355	
 	 	3,792	
 	
Intangible assets, net	28,977	
 	 	3,430	
 	
Property and equipment, net of accumulated depreciation of $3,030 and $2,720	3,217	
 	 	2,633	
 	
      Total assets	$	156,109	
 	 	$	139,874	

LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	
Current Liabilities:	 	 	 	
   Accounts payable and accrued liabilities	$	3,300	
 	 	$	2,334	
 	
   Dividends payable	4,927	
 	 	4,868	
 	
   Compensation and benefits payable	11,091	
 	 	18,504	
 	
   Contingent consideration	9,257	
 	 	—	
 	
   Income taxes payable	860	
 	 	1,498	
 	
      Total current liabilities	29,435	
 	 	27,204	
 	
Accrued dividends	1,144	
 	 	1,450	
 	
Deferred rent	1,179	
 	 	1,213	
 	
      Total liabilities	31,758	
 	 	29,867	

Stockholders’ Equity:	 	 	 	
   Common stock, $0.01 par value, authorized 25,000,000 shares, issued 9,415,560 and outstanding 8,601,754 shares at June 30, 2015; issued 9,010,255 and outstanding 8,308,460 shares at December 31, 2014	94	
 	 	90	
 	
   Additional paid-in capital	135,349	
 	 	119,859	
 	
   Treasury stock, at cost – 813,806 shares at June 30, 2015; 701,795 shares at December 31, 2014	(35,931	)	 	(29,028	)	
   Accumulated other comprehensive loss	(2,386	)	 	(1,231	)	
   Retained earnings	27,225	
 	 	20,317	
 	
      Total stockholders’ equity	124,351	
 	 	110,007	
 	
Total liabilities and stockholders’ equity	$	156,109	
 	 	$	139,874	

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WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

 	 	 	 	 	 	 	 	
 	Six Months Ended June 30,	
 	2015	 	2014	
CASH FLOWS FROM OPERATING ACTIVITIES:	 	 	 	
   Net income	$	15,405	
 	 	$	14,153	
 	
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	
Depreciation	325	
 	 	288	
 	
Amortization of intangible assets	552	
 	 	180	
 	
Unrealized gains on trading investments	(81	)	 	(134	)	
Stock based compensation expense	7,695	
 	 	6,468	
 	
Deferred income taxes	(612	)	 	2,145	
 	
Excess tax benefits from stock based compensation	(1,396	)	 	(1,916	)	
Net sales of investments – trading securities	33,506	
 	 	6,927	
 	
Changes in operating assets and liabilities:	 	 	 	
Accounts receivable	(6,773	)	 	(2,236	)	
Other current assets	288	
 	 	919	
 	
Accounts payable and accrued liabilities	810	
 	 	(166	)	
Compensation and benefits payable	(6,522	)	 	(8,683	)	
Income taxes payable and prepaid income taxes	1,673	
 	 	(1,189	)	
Other liabilities	(18	)	 	(29	)	
   Net cash provided by operating activities	44,852	
 	 	16,727	

CASH FLOWS FROM INVESTING ACTIVITIES:	 	 	 	
   Purchases of property and equipment	(564	)	 	(302	)	
  Acquisition of Woodway	(24,133	)	 	—	
 	
Net cash used in investing activities	(24,697	)	 	(302	)	
 	 	 	 	
CASH FLOWS FROM FINANCING ACTIVITIES:	 	 	 	
   Purchases of treasury stock	(1,327	)	 	—	
 	
   Restricted stock returned for payment of taxes	(5,576	)	 	(5,839	)	
   Excess tax benefits from stock based compensation	1,396	
 	 	1,916	
 	
   Cash dividends	(8,743	)	 	(7,291	)	
   Net cash used in financing activities	(14,250	)	 	(11,214	)	
Effect of currency rate changes on cash	(1,269	)	 	(12	)	
NET INCREASE IN CASH AND CASH EQUIVALENTS	4,636	
 	 	5,199	
 	
Cash and cash equivalents, beginning of period	18,131	
 	 	10,864	
 	
Cash and cash equivalents, end of period	$	22,767	
 	 	$	16,063	

Supplemental cash flow information:	 	 	 	
   Cash paid during the period for income taxes	$	6,675	
 	 	$	6,978	
 	
   Common stock issued for acquisition	$	5,669	
 	 	$	—	
 	
   Non-cash accrued contingent consideration	$	9,257	
 	 	$	—	

7

WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Economic Earnings
(in thousands, except per share and share amounts)
(unaudited)

 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	
 	June 30,
2015	 	March 31,
2015	 	June 30,
2014	
Net Income	$	9,795	
 	 	$	5,610	
 	 	$	8,591	
 	
Add: Stock based compensation expense	4,017	
 	 	3,678	
 	 	2,989	
 	
Add: Intangible amortization	462	
 	 	90	
 	 	90	
 	
Add: Tax benefit from goodwill amortization	78	
 	 	38	
 	 	38	
 	
Economic earnings	$	14,352	
 	 	$	9,416	
 	 	$	11,708	

Diluted weighted average shares	7,961,406	
 	 	7,861,090	
 	 	7,679,032	
 	
Economic EPS	
 	$1.80	
 	 	
 	$1.20	
 	 	$	1.52	

 	
 	 	 	 	 	 	 	 	
 	Six Months Ended June 30,	
 	2015	 	2014	
Net Income	$	15,405	
 	 	$	14,153	
 	
Add: Stock based compensation expense	7,695	
 	 	6,468	
 	
Add: Intangible amortization	552	
 	 	180	
 	
Add: Tax benefit from goodwill amortization	116	
 	 	76	
 	
Economic earnings	$	23,768	
 	 	$	20,877	

Diluted weighted average shares	7,976,790	
 	 	7,774,410	
 	
Economic EPS	
 	$2.98	
 	 	
 	$2.69	

As supplemental information, we are providing non-GAAP performance measures that we refer to as Economic Earnings and Economic Earnings per share ("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 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 also considering financial information prepared in accordance with GAAP.

We define Economic Earnings as net income plus non-cash equity-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.

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