Westwood Holdings Group Inc. Reports Q1 2024 Financials

TL;DR

<b>Westwood Holdings Group Inc. reported $1.38 million in stock-based compensation expense for Q1 2024, primarily driven by service-condition awards.</b>

AI Summary

WESTWOOD HOLDINGS GROUP INC (WHG) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Total stock-based compensation expense for the three months ended March 31, 2024, was $1,283 thousand. Service condition stock-based compensation expense was $1,283 thousand for Q1 2024. Performance condition stock-based compensation expense was $97 thousand for Q1 2024. Non-vested restricted stock subject to service conditions totaled 491,625 shares with a weighted average grant date fair value of $36.25 as of March 31, 2024. The company granted 262,373 restricted shares with a weighted average grant date fair value of $27.39 during the period.

Why It Matters

For investors and stakeholders tracking WESTWOOD HOLDINGS GROUP INC, this filing contains several important signals. The filing details stock-based compensation expenses, providing insight into how the company incentivizes its employees through equity awards. Information on restricted stock grants, including vesting conditions and fair values, helps assess potential future dilution and management's alignment with shareholder interests.

Risk Assessment

Risk Level: low — WESTWOOD HOLDINGS GROUP INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags or significant negative trends indicated in the provided excerpt.

Analyst Insight

Monitor future filings for trends in stock-based compensation and the vesting of performance-based restricted stock to understand potential impacts on earnings per share.

Financial Highlights

revenue

7,144

total Assets

10,314,305

net Income

1,408,152

eps

0.15

revenue Growth

0.01

Key Numbers

• 1,283 — Service condition stock-based compensation expense (Three Months Ended March 31, 2024 (in thousands))
• 97 — Performance condition stock-based compensation expense (Three Months Ended March 31, 2024 (in thousands))
• 1,380 — Total stock-based compensation expense (Three Months Ended March 31, 2023 (in thousands))
• 491,625 — Non-vested restricted stock (service condition) (As of March 31, 2024)
• 36.25 — Weighted Average Grant Date Fair Value (non-vested restricted stock) (As of March 31, 2024)
• 262,373 — Restricted stock granted (Three months ended March 31, 2024)
• 27.39 — Weighted Average Grant Date Fair Value (granted restricted stock) (Three months ended March 31, 2024)

Key Players & Entities

• WESTWOOD HOLDINGS GROUP INC (company) — FILER
• 200 CRESCENT COURT (address) — BUSINESS ADDRESS
• DALLAS (location) — BUSINESS ADDRESS CITY
• TX (location) — BUSINESS ADDRESS STATE
• 75201 (postal_code) — BUSINESS ADDRESS ZIP
• 2147566900 (phone_number) — BUSINESS PHONE

FAQ

Industry Context

Westwood Holdings Group Inc. operates in the investment advice industry, providing asset management and related services.

Regulatory Implications

The filing is a standard 10-Q report filed under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-Q for detailed financial statements and Management's Discussion and Analysis.
2. Analyze the performance condition details for restricted stock to understand future compensation expense.
3. Compare stock-based compensation expense to industry peers.

Year-Over-Year Comparison

This filing is a 10-Q for the period ending March 31, 2024. Specific comparative data from the prior year's 10-Q was not fully provided in the excerpt, but some compensation figures are available.

Key Financial Figures

• $0.01 — ich Registered Common stock, par value $0.01 per share WHG New York Stock Exchange
• $9,421 — ent, net of accumulated depreciation of $9,421 and $10,078 1,272 1,444 Other long-ter
• $10,078 — accumulated depreciation of $9,421 and $10,078 1,272 1,444 Other long-term assets 1,0
• $0.15 — 5 3 ( 3 ) — — — — Dividends declared ($0.15 per share) — — ( 1,235 ) — ( 197 ) — (

Filing Documents

• whg-20240331.htm (10-Q) — 1007KB
• a1q24exhibit311.htm (EX-31.1) — 10KB
• a1q24exhibit312.htm (EX-31.2) — 9KB
• a1q24exhibit321.htm (EX-32.1) — 5KB
• a1q24exhibit322.htm (EX-32.2) — 5KB
• 0001165002-24-000039.txt (&nbsp;) — 6061KB
• whg-20240331.xsd (EX-101.SCH) — 52KB
• whg-20240331_cal.xml (EX-101.CAL) — 47KB
• whg-20240331_def.xml (EX-101.DEF) — 260KB
• whg-20240331_lab.xml (EX-101.LAB) — 608KB
• whg-20240331_pre.xml (EX-101.PRE) — 459KB
• whg-20240331_htm.xml (XML) — 685KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Comprehensive Inc ome 2 Condensed Consolidated Statements of Stockholders' Equity 3 Condensed Consolidated Statements of Cash Flows 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23 PART II OTHER INFORMATION 25 Item 1.

Legal Proceedings

Legal Proceedings 25 Item 1A.

Risk Factors

Risk Factors 25 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25

Exhibits

Item 6. Exhibits 26

Signatures

Signatures 27 WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value and share amounts) (Unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 25,888 $ 20,422 Accounts receivable 15,178 14,394 Investments, at fair value 20,667 32,674 Prepaid income taxes — 205 Other current assets 4,750 4,543 Total current assets 66,483 72,238 Investments 7,247 7,247 Equity method investments 4,519 4,284 Noncurrent investments at fair value 241 241 Goodwill 39,501 39,501 Deferred income taxes 1,570 726 Operating lease right-of-use assets 3,404 3,673 Intangible assets, net 23,761 24,803 Property and equipment, net of accumulated depreciation of $9,421 and $10,078 1,272 1,444 Other long-term assets 1,044 1,010 Total long-term assets 82,559 82,929 Total assets $ 149,042 $ 155,167 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 6,846 $ 6,130 Dividends payable 1,384 1,692 Compensation and benefits payable 2,949 9,539 Operating lease liabilities 1,406 1,286 Income taxes payable 2,035 — Total current liabilities 14,620 18,647 Accrued dividends 663 675 Contingent consideration 7,184 10,133 Noncurrent operating lease liabilities 2,820 3,266 Total long-term liabilities 10,667 14,074 Total liabilities 25,287 32,721 Commitments and contingencies (Note 11) Stockholders' Equity: Common stock, $0.01 par value, authorized 25,000,000 shares, issued 12,125,042 and 11,856,737, respectively and outstanding 9,330,762 and 9,140,760, respectively 122 119 Additional paid-in capital 201,899 201,622 Treasury stock, at cost – 2,794,280 and 2,715,977, respectively ( 86,930 ) ( 85,990 ) Retained earnings 6,749 4,650 Total Westwood Holdings Group, Inc. stockholders' equity 121,840 120,401 Noncontrolling interest in consolidated subsidiary 1,915 2,045 Total equity 123,755 122,446 Total liabilities and stoc

View Full Filing

View this 10-Q filing on SEC EDGAR