Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Oct. 25, 2019 | |
Document And Entity Information [Abstract] | |||
Document Transition Report | false | ||
Document Quarterly Report | true | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-2969997 | ||
Entity Address, Address Line One | 200 CRESCENT COURT, SUITE 1200 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Entity Registrant Name | WESTWOOD HOLDINGS GROUP, INC. | ||
City Area Code | 214 | ||
Local Phone Number | 756-6900 | ||
Entity Central Index Key | 0001165002 | ||
Document Type | 10-Q | 10-Q | |
Document Period End Date | Sep. 30, 2019 | ||
Entity File Number | 1-31234 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q3 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | true | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 8,863,674 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Trading Symbol | WHG | ||
Security Exchange Name | NYSE | ||
Entity Address, City or Town | DALLAS, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Operating Lease, Liability, Current | $ 1,554 | $ 1,432 |
Current Assets: | ||
Cash and cash equivalents | 58,372 | 52,449 |
Accounts receivable | 12,872 | 18,429 |
Investments, at fair value | 42,844 | 65,781 |
Income Taxes Receivable, Current | 916 | 349 |
Other current assets | 2,657 | 2,731 |
Total current assets | 117,661 | 139,739 |
Long-term Investments | 5,425 | 5,425 |
Long-term Investments Carried at Fair Value | 3,020 | 0 |
Goodwill | 19,804 | 19,804 |
Deferred income taxes | 3,540 | 5,102 |
Operating Lease, Right-of-Use Asset | 7,851 | 8,698 |
Intangible assets, net | 15,701 | 15,961 |
Property and equipment, net of accumulated depreciation of $7,144 and $6,462 | 4,311 | 4,454 |
Total assets | 177,313 | 199,183 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 2,040 | 2,518 |
Dividends payable | 7,290 | 7,710 |
Compensation and benefits payable | 6,858 | 15,102 |
Income taxes payable | 254 | 365 |
Total current liabilities | 17,996 | 27,127 |
Accrued dividends | 1,100 | 1,576 |
Operating Lease, Liability, Noncurrent | 8,158 | 9,331 |
Total liabilities | 27,254 | 38,034 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Common stock, $0.01 par value, authorized 25,000,000 shares, issued 10,314,305 and outstanding 8,906,152 shares at September 30, 2019; issued 10,182,583 and outstanding 8,904,902 shares at December 31, 2018 | 103 | 102 |
Additional paid-in capital | 202,278 | 194,116 |
Treasury stock, at cost - 1,408,152 shares at September 30, 2019; 1,277,681 shares at December 31, 2018 | (63,335) | (58,711) |
Foreign currency translation adjustment | (3,799) | (4,883) |
Retained earnings | 14,812 | 30,525 |
Total stockholders' equity | 150,059 | 161,149 |
Total liabilities and stockholders' equity | $ 177,313 | $ 199,183 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 7,144 | $ 6,462 |
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 10,314,305 | 10,182,583 |
Common stock, shares outstanding | 8,906,152 | 8,904,902 |
Treasury stock, shares | 1,408,152 | 1,277,681 |
Long-term Investments Carried at Fair Value | $ 3,020 | $ 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES: | ||||
Other Revenue, Net | $ 293,000 | $ 640,000 | $ 1,480,000 | $ 953,000 |
Total revenues | 19,892,000 | 29,854,000 | 65,463,000 | 96,181,000 |
EXPENSES: | ||||
Employee compensation and benefits | 12,072,000 | 14,444,000 | 38,060,000 | 46,857,000 |
Sales and marketing | 506,000 | 549,000 | 1,550,000 | 1,401,000 |
Westwood mutual funds | 916,000 | 979,000 | 2,423,000 | 2,966,000 |
Information technology | 2,017,000 | 2,332,000 | 6,276,000 | 6,753,000 |
Professional services | 940,000 | 1,372,000 | 3,258,000 | 3,677,000 |
General and administrative | 2,317,000 | 2,431,000 | 7,153,000 | 7,300,000 |
Foreign Currency Transaction Gain (Loss), before Tax | (402,000) | 596,000 | 1,142,000 | (823,000) |
Total expenses | 18,366,000 | 22,703,000 | 59,862,000 | 68,131,000 |
Operating Income (Loss) | 1,526,000 | 7,151,000 | 5,601,000 | 28,050,000 |
Gain on sale of operations | 0 | 0 | 0 | 524,000 |
Other Income | 33,000 | 0 | 110,000 | 0 |
Income before income taxes | 1,559,000 | 7,151,000 | 5,711,000 | 28,574,000 |
Provision for income taxes | 442,000 | 1,783,000 | 2,341,000 | 7,236,000 |
Net income | 1,117,000 | 5,368,000 | 3,370,000 | 21,338,000 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (482,000) | 616,000 | 1,084,000 | (1,062,000) |
Total comprehensive income | $ 635,000 | $ 5,984,000 | $ 4,454,000 | $ 20,276,000 |
Earnings per share: | ||||
Basic (dollars per share) | $ 0.13 | $ 0.64 | $ 0.40 | $ 2.55 |
Diluted (dollars per share) | $ 0.13 | $ 0.62 | $ 0.40 | $ 2.49 |
Weighted average shares outstanding: | ||||
Basic (shares) | 8,432,598 | 8,402,697 | 8,414,317 | 8,359,088 |
Diluted (shares) | 8,470,673 | 8,598,230 | 8,467,823 | 8,561,918 |
Asset Management [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 13,164,000 | $ 22,023,000 | $ 44,265,000 | $ 69,979,000 |
Investment Performance [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 154,000 | 0 | 454,000 | 2,984,000 |
Fiduciary and Trust [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 6,281,000 | $ 7,191,000 | $ 19,264,000 | $ 22,265,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock, Par | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Gain (Loss) | Retained Earnings |
Common Stock, Dividends, Per Share, Declared | $ 2.04 | |||||
BALANCE at Dec. 31, 2017 | $ 156,396 | $ 100 | $ 179,241 | $ (49,788) | $ (1,764) | $ 28,607 |
BALANCE, shares at Dec. 31, 2017 | 8,899,587 | |||||
Net income | 21,338 | |||||
Foreign currency translation adjustments | (1,062) | |||||
Other comprehensive gain | (1,062) | (1,062) | ||||
Issuance of restricted stock, net of forfeitures | 0 | $ 2 | (2) | |||
Issuance of restricted stock, net of forfeitures, shares | 215,808 | |||||
Dividends declared ($2.16 per share) | (18,396) | (18,396) | ||||
Stock based compensation expense | 11,658 | 11,658 | ||||
Reclassification of compensation liability to be paid in shares | 165 | 165 | ||||
Purchases of treasury stock | (726) | (726) | ||||
Purchases of treasury stock, shares | (13,031) | |||||
Restricted stock returned for payment of taxes | (4,701) | (4,701) | ||||
Restricted stock returned for payment of taxes, shares | (83,928) | |||||
BALANCE at Sep. 30, 2018 | $ 164,672 | $ 102 | 191,062 | (55,215) | (2,826) | 31,549 |
BALANCE, shares at Sep. 30, 2018 | 9,018,436 | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.68 | |||||
BALANCE at Jun. 30, 2018 | $ 161,141 | $ 102 | 187,367 | (55,201) | (3,442) | 32,315 |
BALANCE, shares at Jun. 30, 2018 | 9,026,806 | |||||
Net income | 5,368 | |||||
Foreign currency translation adjustments | 616 | |||||
Other comprehensive gain | 616 | |||||
Issuance of restricted stock, net of forfeitures | 0 | $ 0 | 0 | |||
Issuance of restricted stock, net of forfeitures, shares | (8,252) | |||||
Dividends declared ($2.16 per share) | (6,134) | (6,134) | ||||
Stock based compensation expense | 3,695 | 3,695 | ||||
Restricted stock returned for payment of taxes | (14) | (14) | ||||
Restricted stock returned for payment of taxes, shares | 118 | |||||
BALANCE at Sep. 30, 2018 | $ 164,672 | $ 102 | 191,062 | (55,215) | (2,826) | 31,549 |
BALANCE, shares at Sep. 30, 2018 | 9,018,436 | |||||
Common Stock, Dividends, Per Share, Declared | $ 2.16 | |||||
BALANCE at Dec. 31, 2018 | $ 161,149 | $ 102 | 194,116 | (58,711) | (4,883) | 30,525 |
BALANCE, shares at Dec. 31, 2018 | 8,904,902 | 8,904,902 | ||||
Net income | $ 3,370 | |||||
Foreign currency translation adjustments | 1,084 | |||||
Other comprehensive gain | 1,084 | 1,084 | ||||
Issuance of restricted stock, net of forfeitures | 0 | $ 1 | (1) | |||
Issuance of restricted stock, net of forfeitures, shares | 131,721 | |||||
Dividends declared ($2.16 per share) | (19,083) | (19,083) | ||||
Stock based compensation expense | 7,932 | 7,932 | ||||
Reclassification of compensation liability to be paid in shares | 231 | 231 | ||||
Purchases of treasury stock | (2,239) | (2,239) | ||||
Purchases of treasury stock, shares | (68,435) | |||||
Restricted stock returned for payment of taxes | (2,385) | (2,385) | ||||
Restricted stock returned for payment of taxes, shares | (62,036) | |||||
BALANCE at Sep. 30, 2019 | $ 150,059 | $ 103 | 202,278 | (63,335) | (3,799) | 14,812 |
BALANCE, shares at Sep. 30, 2019 | 8,906,152 | 8,906,152 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.72 | |||||
BALANCE at Jun. 30, 2019 | $ 153,986 | $ 104 | 200,028 | (62,883) | (3,317) | 20,054 |
BALANCE, shares at Jun. 30, 2019 | 8,944,733 | |||||
Net income | 1,117 | |||||
Foreign currency translation adjustments | (482) | |||||
Other comprehensive gain | (482) | |||||
Issuance of restricted stock, net of forfeitures | 0 | $ (1) | 1 | |||
Issuance of restricted stock, net of forfeitures, shares | (22,059) | |||||
Dividends declared ($2.16 per share) | (6,359) | (6,359) | ||||
Stock based compensation expense | 2,249 | 2,249 | ||||
Purchases of treasury stock | (452) | (452) | ||||
Purchases of treasury stock, shares | (16,522) | |||||
BALANCE at Sep. 30, 2019 | $ 150,059 | $ 103 | $ 202,278 | $ (63,335) | $ (3,799) | $ 14,812 |
BALANCE, shares at Sep. 30, 2019 | 8,906,152 | 8,906,152 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,370 | $ 21,338 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 662 | 653 |
Amortization of intangible assets | 1,281 | 1,255 |
Unrealized (gains) losses on trading investments | (501) | 145 |
Stock based compensation expense | 7,932 | 11,658 |
Deferred income taxes | 1,572 | (1,693) |
Non-cash lease expense | 852 | 789 |
Gain on sale of operations | 0 | (524) |
Change in operating assets and liabilities: | ||
Net sales (purchases) of investments - trading securities | 23,438 | (19,824) |
Accounts receivable | 5,673 | 1,537 |
Other current assets | (361) | 4,185 |
Accounts payable and accrued liabilities | (482) | (650) |
Compensation and benefits payable | (8,100) | (6,157) |
Income taxes payable | (668) | 3,265 |
Other liabilities | (1,057) | (907) |
Net Cash Provided by (Used in) Operating Activities | 33,611 | 15,070 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (516) | (676) |
Proceeds from sale of operations | 0 | 10,013 |
Payments to Acquire Intangible Assets | (584) | 0 |
Payments to Acquire Investments | (3,020) | (5,425) |
Net Cash Provided by (Used in) Investing Activities | (4,120) | 3,912 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Purchases of treasury stock | (1,258) | 0 |
Payment for Repurchases of Stock for Benefit Plan | (981) | (726) |
Restricted stock returned for payment of taxes | (2,385) | (4,701) |
Cash dividends paid | (19,979) | (18,825) |
Net Cash Provided by (Used in) Financing Activities | (24,603) | (24,252) |
Effect of currency rate changes on cash | 1,035 | (893) |
Net Change in Cash and Cash Equivalents | 5,923 | (6,163) |
Cash and cash equivalents, beginning of period | 52,449 | 54,249 |
Cash and cash equivalents, end of period | 58,372 | 48,086 |
Supplemental cash flow information: | ||
Cash paid during the period for income taxes | 1,431 | 5,634 |
DividendsAccrued | $ 8,390 | $ 8,644 |
DESCRIPTION OF THE BUSINESS
DESCRIPTION OF THE BUSINESS | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS | DESCRIPTION OF THE BUSINESS Westwood Holdings Group, Inc. (“Westwood”, the “Company”, “we”, “us” or “our”) was incorporated under the laws of the State of Delaware on December 12, 2001 . Westwood provides investment management services to institutional investors, high net worth individuals and financial intermediaries through its subsidiaries, Westwood Management Corp. and Westwood Advisors, L.L.C. (together “Westwood Management”), Westwood Trust, and Westwood International Advisors Inc. (“Westwood International”). Revenue is largely dependent on the total value and composition of assets under management (“AUM”). Accordingly, fluctuations in financial markets and in the composition of AUM impact revenues and results of operations. Divestiture of our Omaha Operations On September 6, 2017, we entered into an agreement to sell the Omaha-based component of our Wealth Management business. The sale closed on January 12, 2018. We received proceeds of $10.0 million , net of working capital requirements, and recorded a $524,000 gain on the sale, which is included as “Gain on sale of operations” on our Condensed Consolidated Statements of Comprehensive Income. The sale reduced goodwill and intangible assets but did not have a material impact on our Condensed Consolidated Balance Sheet. The following table presents cash proceeds received and net assets sold (in thousands): Cash Proceeds $ 10,013 Net assets sold: Accounts receivable 99 Other current assets 112 Goodwill 7,340 Intangible assets, net 2,170 Property and equipment, net 18 Accounts payable and accrued liabilities (241 ) Other liabilities (9 ) Gain on sale of operations $ 524 The component is reported within both our Advisory and Trust segments. The sale did not represent a major strategic shift in our business and did not qualify for discontinued operations reporting. |
Date of incorporation | Dec. 12, 2001 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and consequently do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The Company’s Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary in the opinion of management to present fairly our interim financial position and results of operations and cash flows for the periods presented. The accompanying Condensed Consolidated Financial Statements are presented in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC. Operating results for the periods in these Condensed Consolidated Financial Statements are not necessarily indicative of results for any future period. The accompanying Condensed Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. In the current year, we created a new expense item on the Condensed Consolidated Statements of Comprehensive Income for “(Gain) loss on foreign currency transactions,” which was previously included in “General and Administrative” expense, and a new cash flow item on the Condensed Consolidated Statements of Cash Flows for “Non-cash lease expense,” which was previously included in the changes in operating assets and liabilities within “Other liabilities.” Prior year financial statements were reclassified to conform to this presentation. These reclassifications had no impact on net income, stockholders’ equity or cash flows as previously reported. Recent Accounting Pronouncements Recently Adopted In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases . ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases at the commencement date, excluding short-term leases. Leases will be classified as either financing or operating, with classification impacting the pattern of expense recognition in the income statement. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We adopted the standard as of January 1, 2019 under the modified retrospective approach, which provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. We elected the package of practical expedients permitted under the transition guidance, which, among other things, allows us to carry forward the historical lease classification and elect hindsight to determine certain lease terms for existing leases. See further discussion in Note 13 “Leases.” The following table summarizes the impacts of the adoption of ASU 2016-02 to our previously reported results (in thousands): Balance Sheet as of December 31, 2018: As Previously Reported New Lease Standard Adjustment As Restated Operating lease right-of-use assets $ — $ 8,698 $ 8,698 Operating lease liabilities — 1,432 1,432 Noncurrent operating lease liabilities — 9,331 9,331 Deferred rent 2,065 (2,065 ) — In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The purpose of this amendment is to simplify the accounting for share-based payments granted to nonemployees for goods and services by aligning it with the accounting used for arrangements with employees. We adopted the standard as of January 1, 2019 and it did not have a material impact on our Consolidated Financial Statements. Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement . The purpose of this amendment is to modify, remove and add certain disclosure requirements for fair value measurements. Under ASU 2018-13, entities are required to disclose the amount of total gains or losses recognized in other comprehensive income attributable to assets and liabilities categorized within Level 3 of the fair value hierarchy. The ASU includes an incremental requirement about significant unobservable inputs for Level 3 fair value measurements. The requirement to disclose reasons for transfers between Level 1 and Level 2 was removed. Various requirements for Level 3 disclosure were also modified. The amendments in this ASU are effective for all entities for fiscal years and interim periods beginning after December 15, 2019. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt this amendment within the required time frame. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The purpose of this amendment is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in this update are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt the standard within the required time frame. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. The purpose of this amendment is to amend ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that were previously recorded at amortized cost and are within the scope of ASC 326-20, Financial Instruments-Credit Losses: Amortization Cost , if the instruments are eligible for the fair value option under Accounting Standards Codification 825 - Financial Instruments . The fair value option election does not apply to held-to-maturity debt securities. The amendments in this update are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt the standard within the required time frame. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of shares outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors. There were approximately 81,000 anti-dilutive restricted shares outstanding for the three months ended September 30, 2019 , and there were no anti-dilutive restricted shares outstanding for the three months ended September 30, 2018 . There were approximately 87,000 and 3,251 anti-dilutive restricted shares outstanding for the nine months ended September 30, 2019 and 2018 , respectively. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 1,117 $ 5,368 $ 3,370 $ 21,338 Weighted average shares outstanding - basic 8,432,598 8,402,697 8,414,317 8,359,088 Dilutive potential shares from unvested restricted shares 38,075 195,533 53,506 202,830 Weighted average shares outstanding - diluted 8,470,673 8,598,230 8,467,823 8,561,918 Earnings per share: Basic $ 0.13 $ 0.64 $ 0.40 $ 2.55 Diluted $ 0.13 $ 0.62 $ 0.40 $ 2.49 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS During 2018, we made a $5.4 million strategic investment in a private company (“Private Company”), which is included in “Investments” on our Condensed Consolidated Balance Sheets. This investment represents an equity interest in a private company without a readily-determinable fair value. The Company has elected to apply the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes. As of September 30, 2019 and December 31, 2018, there were no observable price changes or indicators of impairment for this investment. In February 2019, we made a $250,000 investment in Westwood Hospitality Fund I, LLC, a private investment fund. Our investment is included in “Noncurrent investments at fair value” on our Condensed Consolidated Balance Sheets and will be measured at fair value on a recurring basis using net asset value (“NAV”) as a practical expedient. In September 2019, we made a $2.8 million investment in Charis Holdings, Inc. (“Charis”), the parent company of Westwood Private Bank. Our investment is included in “Noncurrent investments at fair value” on our Condensed Consolidated Balance Sheets and will be measured at fair value on a recurring basis. All other investments are accounted for as trading securities, are carried at fair value on a recurring basis and are included in “Investments, at fair value” on our Condensed Consolidated Balance Sheets. Investments carried at fair value are presented in the table below (in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value September 30, 2019: U.S. Government and Government agency obligations $ 24,036 $ 145 $ — $ 24,181 Money market funds 12,072 — — 12,072 Equity funds 6,329 280 (18 ) 6,591 Total trading securities 42,437 425 (18 ) 42,844 Private investment fund 250 — — 250 Private equity 2,770 — — 2,770 Total investments carried at fair value $ 45,457 $ 425 $ (18 ) $ 45,864 December 31, 2018: U.S. Government and Government agency obligations $ 48,177 $ 232 $ — $ 48,409 Money market funds 10,354 — — 10,354 Equity funds 7,344 — (326 ) 7,018 Total trading securities $ 65,875 $ 232 $ (326 ) $ 65,781 As of September 30, 2019 and December 31, 2018 , approximately $6.5 million and $6.1 million |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We determine estimated fair values for our financial instruments using available information. The fair value amounts discussed in our Condensed Consolidated Financial Statements are not necessarily indicative of either amounts realizable upon disposition of these instruments or our intent or ability to dispose of these assets. The estimated fair value of cash and cash equivalents, accounts receivable, prepaid income taxes, other current assets, accounts payable and accrued liabilities, dividends payable, compensation and benefits payable and income taxes payable approximates their carrying value due to their short-term maturities. The carrying amount of investments designated as trading securities, primarily U.S. Government and Government agency obligations, money market funds, Westwood Funds ® mutual funds, Westwood Investment Funds Plc (the “UCITS Fund”) and Westwood Trust common trust fund shares, equals their fair value based on prices quoted in active markets and, with respect to common trust funds, the net asset value of the shares held as reported by each fund. Market values of our money market holdings generally do not fluctuate. Our investment in Westwood Hospitality Fund I, LLC is measured at fair value using NAV. Our investment in Charis is measured at fair value on a recurring basis using a market approach based on a price to tangible book value multiple range that is determined to be reasonable in the current environment. Management believes this valuation methodology is consistent with the banking industry and will reevaluate our methodology and inputs on a quarterly basis. Our strategic investment in the Private Company discussed in Note 4 “Investments” is excluded from the recurring fair value table shown below, because we have elected to apply the measurement alternative for this investment. ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and requires disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows: • Level 1 – quoted market prices in active markets for identical assets • Level 2 – inputs other than quoted prices that are directly or indirectly observable • Level 3 – significant unobservable inputs where there is little or no market activity The following table summarizes the values of our investments measured at fair value on a recurring basis within the fair value hierarchy as of the dates indicated (in thousands): Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total As of September 30, 2019: Investments in trading securities $ 42,844 $ — $ — $ — $ 42,844 Private investment fund — — — 250 250 Private equity — — 2,770 — 2,770 Total investments carried at fair value $ 42,844 $ — $ 2,770 $ 250 $ 45,864 As of December 31, 2018: Investments in trading securities $ 65,781 $ — $ — $ — $ 65,781 Total investments carried at fair value $ 65,781 $ — $ — $ — $ 65,781 (1) Comprised of certain investments measured at fair value using NAV as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets. The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis for the periods presented (in thousands): Fair Value using Significant Unobservable Inputs (Level 3) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Private Equity Investment Private Equity Investment Beginning balance $ — $ — $ — $ — Purchases 2,770 — 2,770 — Transfers into (out of) level 3 — — — — Realized gains (losses) — — — — Unrealized gains (losses) — — — — Ending balance $ 2,770 $ — $ 2,770 $ — |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the cost of acquired assets over the fair value of the underlying identifiable assets at the date of acquisition. Goodwill is not amortized but is tested for impairment at least annually. We completed our annual goodwill impairment assessment during the third quarter of 2019 and determined that no impairment loss was required. No impairments on goodwill were recorded during the three or nine months ended September 30, 2019 or 2018 . Other Intangible Assets Our intangible assets represent the acquisition date fair value of acquired client relationships, trade names, non-compete agreements and internally developed software and are reflected net of amortization. In valuing these assets, we made significant estimates regarding their useful lives, growth rates and potential attrition. We periodically review intangible assets for events or circumstances that would indicate impairment. No impairments on intangible assets were recorded during the three or nine months ended September 30, 2019 or 2018 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Treasury Stock [Text Block] | Share Repurchase Program On July 20, 2012, our Board of Directors authorized the repurchase of up to $10.0 million of our outstanding common stock on the open market or in privately negotiated transactions. The share repurchase program has no expiration date and may be discontinued at any time by the Board of Directors. In July 2016, Westwood's Board of Directors authorized an additional $5.0 million of repurchases under the share repurchase program. As of September 30, 2019, approximately $4.1 million remained available under the share repurchase program. Between January 1, 2019 and September 30, 2019, under our share repurchase plan, the Company repurchased 43,388 shares of our common stock at an average price of $28.99 , including commissions, at an aggregate purchase price of $1.3 million . |
BALANCE SHEET COMPONENTS | STOCKHOLDERS' EQUITY Accumulated Other Comprehensive Loss The components of “Accumulated other comprehensive loss” were as follows (in thousands): As of September 30, 2019 As of December 31, 2018 Foreign currency translation adjustment $ (3,799 ) $ (4,883 ) Accumulated other comprehensive loss $ (3,799 ) $ (4,883 ) Share Repurchase Program On July 20, 2012, our Board of Directors authorized the repurchase of up to $10.0 million of our outstanding common stock on the open market or in privately negotiated transactions. The share repurchase program has no expiration date and may be discontinued at any time by the Board of Directors. In July 2016, Westwood's Board of Directors authorized an additional $5.0 million of repurchases under the share repurchase program. As of September 30, 2019, approximately $4.1 million remained available under the share repurchase program. Between January 1, 2019 and September 30, 2019, under our share repurchase plan, the Company repurchased 43,388 shares of our common stock at an average price of $28.99 , including commissions, at an aggregate purchase price of $1.3 million . |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES We have evaluated (i) our advisory relationships with the UCITS Fund and the Westwood Funds®, (ii) our relationship as sponsor of the Common Trust Funds (“CTFs”) and managing member of the private investment funds Westwood Hospitality Fund I, LLC and Westwood Technology Opportunities Fund I, LP (collectively, the “Private Funds”) and (iii) our investments in the Private Company and Charis discussed in Note 4 “Investments” (collectively, “Private Equity”) to determine whether each of these entities is a variable interest entity (“VIE”) or voting ownership entity (“VOE”). Based on our analysis, we determined that the CTFs and Private Funds were VIEs, as the at-risk equity holders do not have the ability to direct the activities that most significantly impact the entity’s economic performance, and the Company and its representatives have a majority control of the entities' respective boards of directors and can influence the respective entities' management and affairs. Based on our analysis, we determined the UCITS Fund, Westwood Funds® and Private Equity (i) have sufficient equity at risk to finance the entity's activities independently, (ii) have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity’s economic performance and (iii) are not structured with disproportionate voting rights, and therefore the UCITS Funds, Westwood Funds® and Private Equity are not VIEs and should be analyzed under the VOE consolidation method. Based on our analysis of our investments in these entities for the periods ending September 30, 2019 and December 31, 2018 , we have not consolidated the CTFs, Private Funds or LLCs under the VIE method or the UCITS Fund, Westwood Funds® or Private Equity under the VOE method, and therefore the financial results of these entities are not included in the Company’s consolidated financial results. As of September 30, 2019 and December 31, 2018 , our seed investments in the Westwood Funds aggregated approximately $6.5 million and $6.1 million , respectively. The seed investments were provided for the sole purpose of showing the economic substance needed to establish the funds and are included in “Investments, at fair value” on our Condensed Consolidated Balance Sheets. We have not otherwise provided any financial support not previously contractually obligated to provide, and there are no arrangements that would require us to provide additional financial support to any of these entities. Our seed investments in the above-mentioned Westwood Funds ® , the UCITS Fund and the CTFs are accounted for as investments consistent with our other investments described in Note 4 “Investments.” We recognized fee revenue from the Westwood VIEs and Westwood VOEs of approximately $7.2 million and $11.7 million for the three months ended September 30, 2019 and 2018 , respectively. We recognized fee revenue from the Westwood VIEs and Westwood VOEs of approximately $24.3 million and $36.3 million for the nine months ended September 30, 2019 and 2018 , respectively. The following table displays the assets under management, the amounts of our seed investments included in “Investments” on our consolidated balance sheets, and the risk of loss in each vehicle (in millions): As of September 30, 2019 Assets Corporate Amount at Risk VIEs/VOEs: Westwood Funds® $ 2,338 $ 6.5 $ 6.5 Common Trust Funds 1,409 — — UCITS Fund 309 — — Private Funds 11 0.3 0.3 Private Equity — 8.2 8.2 All other assets: Wealth Management 2,881 Institutional 8,038 Total Assets Under Management $ 14,986 |
REVENUE (Notes)
REVENUE (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer, Excluding Assessed Tax | REVENUE Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and Trust fees are calculated based on a percentage of assets under management and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment. Advisory Fee Revenues Our advisory fees are generated by Westwood Management and Westwood International, which manage client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of assets under management and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on assets under management on the last day of the preceding quarter, quarterly in arrears based on assets under management on the last day of the quarter just ended or are based on a daily or monthly analysis of assets under management for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts. Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers. Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts. Arrangements with Performance Based Obligations A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time. The revenue is based on future market performance and is susceptible to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied. Trust Fee Revenues Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of assets under management. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of assets under management for the quarter. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred trust fee revenue. Revenue Disaggregated Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Advisory Fees: Institutional $ 8,664 $ 14,426 $ 28,475 $ 46,815 Mutual Funds 4,375 7,527 15,452 23,030 Wealth Management 125 70 338 134 Performance-based 154 — 454 2,984 Trust Fees 6,281 7,191 19,264 22,265 Other 293 640 1,480 953 Total revenues $ 19,892 $ 29,854 $ 65,463 $ 96,181 We serve clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands): Three Months Ended September 30, 2019 Advisory Trust Performance-based Other Total Asia $ 410 $ — $ — $ — $ 410 Canada 608 — — 44 652 Europe 836 — 154 — 990 United States 11,310 6,281 — 249 17,840 Total $ 13,164 $ 6,281 $ 154 $ 293 $ 19,892 Nine Months Ended September 30, 2019 Asia $ 1,223 $ — $ — $ — $ 1,223 Australia 591 — — — 591 Canada 2,134 — — 128 2,262 Europe 2,685 — 454 — 3,139 United States 37,632 19,264 — 1,352 58,248 Total $ 44,265 $ 19,264 $ 454 $ 1,480 $ 65,463 Three Months Ended September 30, 2018 Advisory Trust Performance-based Other Total Asia $ 853 $ — $ — $ — $ 853 Australia 927 — — — 927 Canada 1,707 — — 38 1,745 Europe 1,249 — — — 1,249 United States 17,287 7,191 — 602 25,080 Total $ 22,023 $ 7,191 $ — $ 640 $ 29,854 Nine Months Ended September 30, 2018 Asia $ 3,520 $ — $ — $ — $ 3,520 Australia 2,923 — — — 2,923 Canada 5,177 — — 124 5,301 Europe 3,839 — — — 3,839 United States 54,520 22,265 2,984 829 80,598 Total $ 69,979 $ 22,265 $ 2,984 $ 953 $ 96,181 |
LONG-TERM INCENTIVE COMPENSATIO
LONG-TERM INCENTIVE COMPENSATION | 9 Months Ended |
Sep. 30, 2019 | |
Employee Benefit and Share-based Payment Arrangement, Noncash Expense [Abstract] | |
LONG-TERM INCENTIVE COMPENSATION | LONG-TERM INCENTIVE COMPENSATION Restricted Stock Awards We have issued restricted shares to our employees and non-employee directors. The Sixth Amended and Restated Westwood Holdings Group, Inc. Stock Incentive Plan (the “Plan”) reserves shares of Westwood common stock for issuance to eligible employees, directors and consultants of Westwood or its subsidiaries in the form of restricted stock. The total number of shares issuable under the Plan (including predecessor plans to the Plan) may not exceed 5,048,100 shares. At September 30, 2019 , approximately 511,000 shares remain available for issuance under the Plan. The following table presents the total stock-based compensation expense recorded for stock-based compensation arrangements for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Service condition stock-based compensation expense $ 1,578 $ 2,434 $ 5,526 $ 7,759 Performance condition stock-based compensation expense 491 1,107 1,909 3,471 Stock-based compensation expense under the Plan 2,069 3,541 7,435 11,230 Canadian Plan stock-based compensation expense 180 154 497 428 Total stock-based compensation expense $ 2,249 $ 3,695 $ 7,932 $ 11,658 Restricted Stock Under the Plan, we have granted to employees and non-employee directors restricted stock subject to service conditions and to certain key employees restricted stock subject to both service and performance conditions. As of September 30, 2019 , there was approximately $15.9 million of unrecognized compensation cost for restricted stock grants under the Plan, which we expect to recognize over a weighted-average period of 2.4 years. Our two types of restricted stock grants under the Plan are discussed below. Restricted Stock Subject Only to a Service Condition We calculate compensation cost for restricted stock grants by using the fair market value of our common stock at the date of grant, the number of shares issued and an adjustment for restrictions on dividends. This compensation cost is amortized on a straight-line basis over the applicable vesting period, with adjustments for forfeitures recorded as they occur. The following table details the status and changes in our restricted stock grants subject only to a service condition for the nine months ended September 30, 2019 : Shares Weighted Average Non-vested, January 1, 2019 440,073 $ 56.40 Granted 198,295 $ 38.64 Vested (162,287 ) $ 57.14 Forfeited (73,036 ) $ 51.11 Non-vested, September 30, 2019 403,045 $ 48.32 Restricted Stock Subject to Service and Performance Conditions Under the Plan, certain key employees were provided agreements for grants of restricted shares that vest over multiple year periods subject to achieving annual performance goals established by the Compensation Committee of Westwood’s Board of Directors. Each year the Compensation Committee establishes specific goals for that year’s vesting of the restricted shares. The date that the Compensation Committee establishes annual goals is considered to be the grant date and the fair value measurement date to determine expense on the shares that are likely to vest. The vesting period ends when the Compensation Committee formally approves the performance-based restricted stock vesting based on the specific performance goals from the Company’s audited consolidated financial statements. If a portion of the performance-based restricted shares does not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that do not vest is reversed. In March 2019, the Compensation Committee established fiscal 2019 goals based on various departmental and company-wide performance goals. During the first nine months of 2019, we recorded expense related to the applicable percentage of the performance-based restricted shares expected to meet or exceed the performance goals needed to earn the shares. The following table details the status and changes in our restricted stock grants subject to service and performance conditions for the nine months ended September 30, 2019 : Shares Weighted Average Non-vested, January 1, 2019 156,293 $ 55.66 Granted 21,186 $ 37.97 Vested (80,493 ) $ 56.09 Forfeited (19,495 ) $ 55.18 Non-vested, September 30, 2019 77,491 $ 50.29 Canadian Plan The Share Award Plan of Westwood Holdings Group, Inc. for Service Provided in Canada to its Subsidiaries (the “Canadian Plan”) provides compensation in the form of common stock for services performed by employees of Westwood International. Under the Canadian Plan, no more than $10 million CDN ( $7.6 million in U.S. Dollars using the exchange rate on September 30, 2019 ) may be funded to the plan trustee for purchases of common stock with respect to awards granted under the Canadian Plan. At September 30, 2019 , approximately $2.3 million CDN ( $1.7 million in U.S. Dollars using the exchange rate on September 30, 2019 ) remains available for issuance under the Canadian Plan, or approximately 62,000 shares based on the closing share price of our stock of $27.67 as of September 30, 2019 . During the first nine months of 2019 , the trust formed pursuant to the Canadian Plan purchased 25,047 Westwood common shares in the open market for approximately $980,000 . As of September 30, 2019 , the trust holds 61,078 shares of Westwood common stock. As of September 30, 2019 , unrecognized compensation cost related to restricted stock grants under the Canadian Plan totaled $907,000 , which we expect to recognize over a weighted-average period of 1.8 years years. Mutual Fund Share Incentive Awards We may grant mutual fund incentive awards, which are bonus awards based on our mutual funds achieving specific performance goals, annually to certain employees. Awards granted are notionally credited to a participant account maintained by us that contains a number of mutual fund shares equal to the award amount divided by the net closing value of a fund share on the date the amount is credited to the account. We maintain the award in a corporate investment account until vesting. The investment may increase or decrease based on changes in the value of the mutual fund shares awarded, including reinvested income from the mutual funds during the vesting period. Unvested mutual fund awards are included under “Investments, at fair value” on our Condensed Consolidated Balance Sheets. Awards vest over approximately two years of service following the year in which the participant earned the award. We begin accruing a liability for mutual fund incentive awards when we believe it is probable that the award will be earned and record expense for these awards over the service period of the award, which is 3 years . During the year in which the amount of the award is determined, we record expense based on the expected value of the award. After the award is earned, we record expense based on the value of the shares awarded and the percentage of the vesting period that has elapsed. Our liability under these awards may increase or decrease based on changes in the value of the mutual fund shares awarded, including reinvested income from the mutual funds during the vesting period. Upon vesting, participants receive the value of the mutual fund share awards adjusted for earnings or losses attributable to the underlying mutual funds. For the three months ended September 30, 2019 and 2018 , we recorded expense of approximately $12,000 and $89,000 , respectively, related to mutual fund share incentive awards. For the nine months ended September 30, 2019 , we recorded a net $100,000 credit to mutual fund expense, primarily related to the forfeiture of a mutual fund award during the first quarter. For the nine months ended September 30, 2018 , we recorded expense of approximately $274,000 related to mutual fund share incentive awards. As of September 30, 2019 and December 31, 2018 , we had an accrued liability of approximately $67,000 and $635,000 |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES Our effective income tax rate was 28.4% for the third quarter of 2019 , compared with 24.9% for the third quarter of 2018 . Our effective income tax rate was 41.0% for the first nine months of 2019 , compared with 25.3% for the first nine months of 2018 . The current year-to-date rate was negatively impacted by a $638,000 discrete tax expense related to a permanent difference between book and tax restricted stock expense based on a decrease in our stock price between the grant and vesting dates. Tax Audit The Company is subject to taxation in the United States and various state and foreign jurisdictions. The audit of our 2015, 2016 and 2017 tax returns in a state jurisdiction in which we operate has been closed with no findings and had no impact on our Consolidated Financial Statements. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Some of our directors, executive officers and their affiliates invest personal funds directly in trust accounts that we manage. For the three months ended September 30, 2019 and 2018 , we recorded trust fees from these accounts of $90,000 and $89,000 , respectively. For the nine months ended September 30, 2019 and 2018 , we recorded trust fees from these accounts of $252,000 and $276,000 , respectively. There was approximately $90,000 and $84,000 due from these accounts as of September 30, 2019 and December 31, 2018 , respectively. The Company engages in transactions with its affiliates in the ordinary course of business. Westwood International and Westwood Management provide investment advisory services to the Westwood Funds®, and Westwood International provides investment advisory services to the UCITS Fund. Certain members of our management serve on the board of directors of the UCITS Fund, and we have capital invested in three of the Westwood Funds®. Under the terms of the investment advisory agreements, the Company earns quarterly fees paid by clients of the fund or by the funds directly. The fees are based on negotiated fee schedules applied to assets under management. For the three months ended September 30, 2019 and 2018 , the Company earned approximately $708,000 and $1.0 million , respectively, in fees from the affiliated funds. For the nine months ended September 30, 2019 and 2018 , the Company earned approximately $2.3 million and $3.3 million , respectively, in fees from the affiliated funds. These fees do not include fees paid directly to Westwood International by certain clients invested in the UCITS Fund that have an investment management agreement with Westwood International. As of September 30, 2019 and December 31, 2018 , $240,000 and $295,000 , respectively, of these fees were outstanding and included in “Accounts receivable” on our Condensed Consolidated Balance Sheets. As discussed in Note 4 “Investments,” the Company made a strategic investment in the Private Company during 2018 . We previously entered into a separate agreement with this company to implement portfolio management and digital solutions products. For the three months ended September 30, 2019 and 2018 , we incurred approximately $216,000 and $162,000 , respectively, in expenses payable to this company. For the nine months ended September 30, 2019 and 2018 , we incurred approximately $796,000 and $767,000 , respectively, in expenses payable to this company. These expenses are included in “Information technology expenses” on our Condensed Consolidated Statements of Comprehensive Income. Additionally discussed in Note 4 “Investments,” the Company made an investment in Charis in September 2019. We previously entered into an agreement to sublease a portion of our corporate headquarters to a subsidiary of Charis. For the three and nine months ended September 30, 2019 , we recorded other income of approximately $33,000 and $110,000 , respectively, related to the sublease agreement. This income is included in “Other Income” on our Condensed Consolidated Statements of Comprehensive Income. We did not record any income from Charis for the three or nine months ended September 30, 2018. |
LEASES (Notes)
LEASES (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES We have operating leases for corporate offices and for certain office equipment. The lease terms for our corporate offices vary and have remaining lease terms ranging from one to seven years . The corporate office lease payments are fixed and are based upon contractual monthly rates. The majority of our corporate office leases do not include options to extend or terminate the leases, and each lease is re-negotiated before its leasing period ends. We lease office equipment for a period of two years . In June 2019, we entered into a sublease agreement for a portion of newly built-out space in our corporate office. The sublease agreement has a term of seven years , and the sublease income is included in “Other income” on our Condensed Consolidated Statements of Comprehensive Income. The following table presents the components of lease costs, as well as supplemental cash flow information, related to our leases (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating lease cost $ 449 $ 426 $ 1,346 $ 1,279 Sublease income $ 33 $ — $ 110 $ — Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 524 $ 475 $ 1,568 $ 1,415 Right-of-use assets obtained in exchange for lease obligations $ — $ 569 $ — $ 1,010 Operating lease cost is included in “General and administrative” expense on our Condensed Consolidated Statements of Comprehensive Income. The following table presents information regarding our operating leases (in thousands, except years and rates): September 30, 2019 December 31, 2018 Operating lease right-of-use assets $ 7,851 $ 8,698 Operating lease liabilities $ 1,554 $ 1,432 Non-current lease liabilities 8,158 9,331 Total lease liabilities $ 9,712 $ 10,763 Weighted-average remaining lease term (in years) 5.9 6.6 Weighted-average discount rate 5.0 % 5.0 % The maturities of lease liabilities are as follows (in thousands): Year Ending December 31, Operating Leases 2019 (excluding the nine months ended September 30, 2019) $ 524 2020 2,117 2021 2,081 2022 1,717 2023 1,719 2024 1,550 Thereafter 1,852 Total undiscounted lease payments $ 11,560 Less discount (1,848 ) Total lease liabilities $ 9,712 |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING We operate two segments: Advisory and Trust. These segments are managed separately based on the types of products and services offered and their related client bases. The Company’s segment information is prepared on the same basis that management reviews the financial information for operational decision-making purposes. The Company’s chief operating decision maker, our Chief Executive Officer, evaluates the performance of our segments based primarily on fee revenues and Economic Earnings. Westwood Holdings Group, Inc., the parent company of Advisory and Trust, does not have revenues and is the entity in which we record typical holding company expenses including employee compensation and benefits for holding company employees, directors’ fees and investor relations costs. All segment accounting policies are the same as those described in the summary of significant accounting policies. Intersegment balances that eliminate in consolidation have been applied to the appropriate segment. Advisory Our Advisory segment provides investment advisory services to (i) corporate pension and profit sharing plans, public employee retirement funds,Taft Hartley plans, endowments, foundations and individuals , (ii) subadvisory relationships where Westwood provides investment management services to the Westwood Funds ®, funds offered by other financial institutions and funds offered by our Trust segment and (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts. Westwood Management and Westwood International, which provide investment advisory services to similar clients, are included in our Advisory segment. Trust Trust provides trust and custodial services and participation in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Trust is included in our Trust segment. (in thousands) Advisory Trust Westwood Eliminations Consolidated Three Months Ended September 30, 2019 Net fee revenues from external sources $ 13,318 $ 6,281 $ — $ — $ 19,599 Net intersegment revenues 755 38 — (793 ) — Net interest and dividend revenue 179 69 3 — 251 Other, net 39 3 — — 42 Total revenues $ 14,291 $ 6,391 $ 3 $ (793 ) $ 19,892 Economic Earnings $ 3,574 $ 2,055 $ (1,758 ) $ — $ 3,871 Less: Restricted stock expense 2,249 Intangible amortization 445 Deferred taxes on goodwill 60 Net income $ 1,117 Segment assets $ 236,710 $ 66,352 $ 21,541 $ (147,289 ) $ 177,313 Segment goodwill $ 3,403 $ 16,401 $ — $ — $ 19,804 Three Months Ended September 30, 2018 Net fee revenues from external sources $ 22,023 $ 7,191 $ — $ — $ 29,214 Net intersegment revenues 1,756 58 — (1,814 ) — Net interest and dividend revenue 187 52 — — 239 Other, net 389 12 — — 401 Total revenues $ 24,355 $ 7,313 $ — $ (1,814 ) $ 29,854 Economic Earnings $ 10,553 $ 1,357 $ (2,369 ) $ — $ 9,541 Less: Restricted stock expense 3,695 Intangible amortization 419 Deferred taxes on goodwill 59 Net income $ 5,368 Segment assets $ 220,138 $ 60,658 $ 16,839 $ (105,008 ) $ 192,627 Segment goodwill $ 3,403 $ 16,401 $ — $ — $ 19,804 (in thousands) Advisory Trust Westwood Eliminations Consolidated Nine Months Ended September 30, 2019 Net fee revenues from external sources $ 44,719 $ 19,264 $ — $ — $ 63,983 Net intersegment revenues 2,638 180 — (2,818 ) — Net interest and dividend revenue 596 247 3 — 846 Other 645 (11 ) — — 634 Total revenues $ 48,598 $ 19,680 $ 3 $ (2,818 ) $ 65,463 Economic Earnings $ 13,665 $ 4,872 $ (5,776 ) $ — $ 12,761 Less: Restricted stock expense 7,932 Intangible amortization 1,281 Deferred taxes on goodwill 178 Net income $ 3,370 Nine Months Ended September 30, 2018 Net fee revenues from external sources $ 72,963 $ 22,265 $ — $ — $ 95,228 Net intersegment revenues 5,639 171 — (5,810 ) — Net interest and dividend revenue 464 152 — — 616 Other 331 6 — — 337 Total revenues $ 79,397 $ 22,594 $ — $ (5,810 ) $ 96,181 Economic Earnings $ 37,463 $ 4,034 $ (7,069 ) $ — $ 34,428 Less: Restricted stock expense 11,658 Intangible amortization 1,255 Deferred taxes on goodwill 177 Net income $ 21,338 We are providing a performance measure that we refer to as Economic Earnings. Our management and the Board of Directors review Economic Earnings to evaluate our ongoing performance, allocate resources and determine our dividend policy. We also believe that this performance measure is useful for management and investors when evaluating our underlying operating and financial performance and our available resources. In calculating Economic Earnings, we add to net income the non-cash expense associated with equity-based compensation awards of restricted stock, amortization of intangible assets and the deferred taxes related to the tax-basis amortization of goodwill. Although depreciation on property and equipment is a non-cash expense, we do not add it back when calculating Economic Earnings because depreciation charges represent a decline in the value of the related assets that will ultimately require replacement. The following tables provide a reconciliation of Net income to Economic Earnings (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 1,117 $ 5,368 $ 3,370 $ 21,338 Add: Stock-based compensation expense 2,249 3,695 7,932 11,658 Add: Intangible amortization 445 419 1,281 1,255 Add: Tax benefit from goodwill amortization 60 59 178 177 Economic Earnings $ 3,871 $ 9,541 $ 12,761 $ 34,428 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Event [Line Items] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Dividend Declared In October 2019, Westwood’s Board of Directors declared a quarterly cash dividend of $0.72 per common share, payable on January 2, 2020 , to stockholders of record on December 6, 2019 . Share Repurchase Program In October 2019, we repurchased 42,171 shares of our common stock for an aggregate purchase price of approximately $1.2 million . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Restricted Stock Subject Only To A Service Condition Policy [Text Block] | Restricted Stock Subject Only to a Service Condition We calculate compensation cost for restricted stock grants by using the fair market value of our common stock at the date of grant, the number of shares issued and an adjustment for restrictions on dividends. This compensation cost is amortized on a straight-line basis over the applicable vesting period, with adjustments for forfeitures recorded as they occur. |
Restricted Stock Subject To Service And Performance Conditions Policy [Text Block] | Restricted Stock Subject to Service and Performance Conditions Under the Plan, certain key employees were provided agreements for grants of restricted shares that vest over multiple year periods subject to achieving annual performance goals established by the Compensation Committee of Westwood’s Board of Directors. Each year the Compensation Committee establishes specific goals for that year’s vesting of the restricted shares. The date that the Compensation Committee establishes annual goals is considered to be the grant date and the fair value measurement date to determine expense on the shares that are likely to vest. The vesting period ends when the Compensation Committee formally approves the performance-based restricted stock vesting based on the specific performance goals from the Company’s audited consolidated financial statements. If a portion of the performance-based restricted shares does not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that do not vest is reversed. In March 2019, the Compensation Committee established fiscal 2019 goals based on various departmental and company-wide performance goals. During the first nine months of 2019, we recorded expense related to the applicable percentage of the performance-based restricted shares expected to meet or exceed the performance goals needed to earn the shares. |
Revenue [Policy Text Block] | Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and Trust fees are calculated based on a percentage of assets under management and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment. Advisory Fee Revenues Our advisory fees are generated by Westwood Management and Westwood International, which manage client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of assets under management and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on assets under management on the last day of the preceding quarter, quarterly in arrears based on assets under management on the last day of the quarter just ended or are based on a daily or monthly analysis of assets under management for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts. Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers. Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts. Arrangements with Performance Based Obligations A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time. The revenue is based on future market performance and is susceptible to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied. Trust Fee Revenues Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of assets under management. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of assets under management for the quarter. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred trust fee revenue. |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited and are presented in accordance with the requirements for quarterly reports on Form 10-Q and consequently do not include all of the information and footnote disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The Company’s Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) necessary in the opinion of management to present fairly our interim financial position and results of operations and cash flows for the periods presented. The accompanying Condensed Consolidated Financial Statements are presented in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”). The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements, and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC. Operating results for the periods in these Condensed Consolidated Financial Statements are not necessarily indicative of results for any future period. The accompanying Condensed Consolidated Financial Statements include the accounts of Westwood and its subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. In the current year, we created a new expense item on the Condensed Consolidated Statements of Comprehensive Income for “(Gain) loss on foreign currency transactions,” which was previously included in “General and Administrative” expense, and a new cash flow item on the Condensed Consolidated Statements of Cash Flows for “Non-cash lease expense,” which was previously included in the changes in operating assets and liabilities within “Other liabilities.” Prior year financial statements were reclassified to conform to this presentation. These reclassifications had no impact on net income, stockholders’ equity or cash flows as previously reported. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases . ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use asset for all leases at the commencement date, excluding short-term leases. Leases will be classified as either financing or operating, with classification impacting the pattern of expense recognition in the income statement. The amendment is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We adopted the standard as of January 1, 2019 under the modified retrospective approach, which provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a full retrospective approach. We elected the package of practical expedients permitted under the transition guidance, which, among other things, allows us to carry forward the historical lease classification and elect hindsight to determine certain lease terms for existing leases. See further discussion in Note 13 “Leases.” The following table summarizes the impacts of the adoption of ASU 2016-02 to our previously reported results (in thousands): Balance Sheet as of December 31, 2018: As Previously Reported New Lease Standard Adjustment As Restated Operating lease right-of-use assets $ — $ 8,698 $ 8,698 Operating lease liabilities — 1,432 1,432 Noncurrent operating lease liabilities — 9,331 9,331 Deferred rent 2,065 (2,065 ) — In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The purpose of this amendment is to simplify the accounting for share-based payments granted to nonemployees for goods and services by aligning it with the accounting used for arrangements with employees. We adopted the standard as of January 1, 2019 and it did not have a material impact on our Consolidated Financial Statements. Not Yet Adopted In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement . The purpose of this amendment is to modify, remove and add certain disclosure requirements for fair value measurements. Under ASU 2018-13, entities are required to disclose the amount of total gains or losses recognized in other comprehensive income attributable to assets and liabilities categorized within Level 3 of the fair value hierarchy. The ASU includes an incremental requirement about significant unobservable inputs for Level 3 fair value measurements. The requirement to disclose reasons for transfers between Level 1 and Level 2 was removed. Various requirements for Level 3 disclosure were also modified. The amendments in this ASU are effective for all entities for fiscal years and interim periods beginning after December 15, 2019. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt this amendment within the required time frame. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The purpose of this amendment is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments in this update are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt the standard within the required time frame. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. The purpose of this amendment is to amend ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments , to allow companies to irrevocably elect, upon adoption of ASU 2016-13, the fair value option on financial instruments that were previously recorded at amortized cost and are within the scope of ASC 326-20, Financial Instruments-Credit Losses: Amortization Cost , if the instruments are eligible for the fair value option under Accounting Standards Codification 825 - Financial Instruments . The fair value option election does not apply to held-to-maturity debt securities. The amendments in this update are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within that fiscal year. We do not expect the amendment to have a material impact on our Consolidated Financial Statements, and we plan to adopt the standard within the required time frame. |
EARNINGS PER SHARE Policies (Po
EARNINGS PER SHARE Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Policy [Policy Text Block] | Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of shares outstanding for the applicable period. Diluted earnings per share is computed based on the weighted average number of shares outstanding plus the effect of any dilutive shares of restricted stock granted to employees and non-employee directors. |
VARIABLE INTEREST ENTITIES Poli
VARIABLE INTEREST ENTITIES Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | We have evaluated (i) our advisory relationships with the UCITS Fund and the Westwood Funds®, (ii) our relationship as sponsor of the Common Trust Funds (“CTFs”) and managing member of the private investment funds Westwood Hospitality Fund I, LLC and Westwood Technology Opportunities Fund I, LP (collectively, the “Private Funds”) and (iii) our investments in the Private Company and Charis discussed in Note 4 “Investments” (collectively, “Private Equity”) to determine whether each of these entities is a variable interest entity (“VIE”) or voting ownership entity (“VOE”). Based on our analysis, we determined that the CTFs and Private Funds were VIEs, as the at-risk equity holders do not have the ability to direct the activities that most significantly impact the entity’s economic performance, and the Company and its representatives have a majority control of the entities' respective boards of directors and can influence the respective entities' management and affairs. Based on our analysis, we determined the UCITS Fund, Westwood Funds® and Private Equity (i) have sufficient equity at risk to finance the entity's activities independently, (ii) have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity’s economic performance and (iii) are not structured with disproportionate voting rights, and therefore the UCITS Funds, Westwood Funds® and Private Equity are not VIEs and should be analyzed under the VOE consolidation method. Based on our analysis of our investments in these entities for the periods ending September 30, 2019 and December 31, 2018 , we have not consolidated the CTFs, Private Funds or LLCs under the VIE method or the UCITS Fund, Westwood Funds® or Private Equity under the VOE method, and therefore the financial results of these entities are not included in the Company’s consolidated financial results. |
REVENUE Policies (Policies)
REVENUE Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue [Policy Text Block] | Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and Trust fees are calculated based on a percentage of assets under management and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment. Advisory Fee Revenues Our advisory fees are generated by Westwood Management and Westwood International, which manage client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of assets under management and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on assets under management on the last day of the preceding quarter, quarterly in arrears based on assets under management on the last day of the quarter just ended or are based on a daily or monthly analysis of assets under management for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts. Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers. Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts. Arrangements with Performance Based Obligations A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time. The revenue is based on future market performance and is susceptible to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied. Trust Fee Revenues Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of assets under management. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of assets under management for the quarter. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred trust fee revenue. |
LEASES (Policies)
LEASES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES We have operating leases for corporate offices and for certain office equipment. The lease terms for our corporate offices vary and have remaining lease terms ranging from one to seven years . The corporate office lease payments are fixed and are based upon contractual monthly rates. The majority of our corporate office leases do not include options to extend or terminate the leases, and each lease is re-negotiated before its leasing period ends. We lease office equipment for a period of two years . In June 2019, we entered into a sublease agreement for a portion of newly built-out space in our corporate office. The sublease agreement has a term of seven years , and the sublease income is included in “Other income” on our Condensed Consolidated Statements of Comprehensive Income. The following table presents the components of lease costs, as well as supplemental cash flow information, related to our leases (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating lease cost $ 449 $ 426 $ 1,346 $ 1,279 Sublease income $ 33 $ — $ 110 $ — Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 524 $ 475 $ 1,568 $ 1,415 Right-of-use assets obtained in exchange for lease obligations $ — $ 569 $ — $ 1,010 Operating lease cost is included in “General and administrative” expense on our Condensed Consolidated Statements of Comprehensive Income. The following table presents information regarding our operating leases (in thousands, except years and rates): September 30, 2019 December 31, 2018 Operating lease right-of-use assets $ 7,851 $ 8,698 Operating lease liabilities $ 1,554 $ 1,432 Non-current lease liabilities 8,158 9,331 Total lease liabilities $ 9,712 $ 10,763 Weighted-average remaining lease term (in years) 5.9 6.6 Weighted-average discount rate 5.0 % 5.0 % The maturities of lease liabilities are as follows (in thousands): Year Ending December 31, Operating Leases 2019 (excluding the nine months ended September 30, 2019) $ 524 2020 2,117 2021 2,081 2022 1,717 2023 1,719 2024 1,550 Thereafter 1,852 Total undiscounted lease payments $ 11,560 Less discount (1,848 ) Total lease liabilities $ 9,712 |
DESCRIPTION OF THE BUSINESS Tab
DESCRIPTION OF THE BUSINESS Table (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table presents cash proceeds received and net assets sold (in thousands): Cash Proceeds $ 10,013 Net assets sold: Accounts receivable 99 Other current assets 112 Goodwill 7,340 Intangible assets, net 2,170 Property and equipment, net 18 Accounts payable and accrued liabilities (241 ) Other liabilities (9 ) Gain on sale of operations $ 524 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following table summarizes the impacts of the adoption of ASU 2016-02 to our previously reported results (in thousands): Balance Sheet as of December 31, 2018: As Previously Reported New Lease Standard Adjustment As Restated Operating lease right-of-use assets $ — $ 8,698 $ 8,698 Operating lease liabilities — 1,432 1,432 Noncurrent operating lease liabilities — 9,331 9,331 Deferred rent 2,065 (2,065 ) — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share and share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 1,117 $ 5,368 $ 3,370 $ 21,338 Weighted average shares outstanding - basic 8,432,598 8,402,697 8,414,317 8,359,088 Dilutive potential shares from unvested restricted shares 38,075 195,533 53,506 202,830 Weighted average shares outstanding - diluted 8,470,673 8,598,230 8,467,823 8,561,918 Earnings per share: Basic $ 0.13 $ 0.64 $ 0.40 $ 2.55 Diluted $ 0.13 $ 0.62 $ 0.40 $ 2.49 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Balances | Investments carried at fair value are presented in the table below (in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Market Value September 30, 2019: U.S. Government and Government agency obligations $ 24,036 $ 145 $ — $ 24,181 Money market funds 12,072 — — 12,072 Equity funds 6,329 280 (18 ) 6,591 Total trading securities 42,437 425 (18 ) 42,844 Private investment fund 250 — — 250 Private equity 2,770 — — 2,770 Total investments carried at fair value $ 45,457 $ 425 $ (18 ) $ 45,864 December 31, 2018: U.S. Government and Government agency obligations $ 48,177 $ 232 $ — $ 48,409 Money market funds 10,354 — — 10,354 Equity funds 7,344 — (326 ) 7,018 Total trading securities $ 65,875 $ 232 $ (326 ) $ 65,781 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | The following table summarizes the values of our investments measured at fair value on a recurring basis within the fair value hierarchy as of the dates indicated (in thousands): Level 1 Level 2 Level 3 Investments Measured at NAV (1) Total As of September 30, 2019: Investments in trading securities $ 42,844 $ — $ — $ — $ 42,844 Private investment fund — — — 250 250 Private equity — — 2,770 — 2,770 Total investments carried at fair value $ 42,844 $ — $ 2,770 $ 250 $ 45,864 As of December 31, 2018: Investments in trading securities $ 65,781 $ — $ — $ — $ 65,781 Total investments carried at fair value $ 65,781 $ — $ — $ — $ 65,781 (1) Comprised of certain investments measured at fair value using NAV as a practical expedient. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on our Condensed Consolidated Balance Sheets. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table summarizes the changes in Level 3 investments measured at fair value on a recurring basis for the periods presented (in thousands): Fair Value using Significant Unobservable Inputs (Level 3) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Private Equity Investment Private Equity Investment Beginning balance $ — $ — $ — $ — Purchases 2,770 — 2,770 — Transfers into (out of) level 3 — — — — Realized gains (losses) — — — — Unrealized gains (losses) — — — — Ending balance $ 2,770 $ — $ 2,770 $ — |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of “Accumulated other comprehensive loss” were as follows (in thousands): As of September 30, 2019 As of December 31, 2018 Foreign currency translation adjustment $ (3,799 ) $ (4,883 ) Accumulated other comprehensive loss $ (3,799 ) $ (4,883 ) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | The following table displays the assets under management, the amounts of our seed investments included in “Investments” on our consolidated balance sheets, and the risk of loss in each vehicle (in millions): As of September 30, 2019 Assets Corporate Amount at Risk VIEs/VOEs: Westwood Funds® $ 2,338 $ 6.5 $ 6.5 Common Trust Funds 1,409 — — UCITS Fund 309 — — Private Funds 11 0.3 0.3 Private Equity — 8.2 8.2 All other assets: Wealth Management 2,881 Institutional 8,038 Total Assets Under Management $ 14,986 |
REVENUE Table (Tables)
REVENUE Table (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our revenue disaggregated by account type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Advisory Fees: Institutional $ 8,664 $ 14,426 $ 28,475 $ 46,815 Mutual Funds 4,375 7,527 15,452 23,030 Wealth Management 125 70 338 134 Performance-based 154 — 454 2,984 Trust Fees 6,281 7,191 19,264 22,265 Other 293 640 1,480 953 Total revenues $ 19,892 $ 29,854 $ 65,463 $ 96,181 |
Revenue Disaggregation by Geographic Location [Table Text Block] | The following table presents our revenue disaggregated by our clients' geographical locations (in thousands): Three Months Ended September 30, 2019 Advisory Trust Performance-based Other Total Asia $ 410 $ — $ — $ — $ 410 Canada 608 — — 44 652 Europe 836 — 154 — 990 United States 11,310 6,281 — 249 17,840 Total $ 13,164 $ 6,281 $ 154 $ 293 $ 19,892 Nine Months Ended September 30, 2019 Asia $ 1,223 $ — $ — $ — $ 1,223 Australia 591 — — — 591 Canada 2,134 — — 128 2,262 Europe 2,685 — 454 — 3,139 United States 37,632 19,264 — 1,352 58,248 Total $ 44,265 $ 19,264 $ 454 $ 1,480 $ 65,463 Three Months Ended September 30, 2018 Advisory Trust Performance-based Other Total Asia $ 853 $ — $ — $ — $ 853 Australia 927 — — — 927 Canada 1,707 — — 38 1,745 Europe 1,249 — — — 1,249 United States 17,287 7,191 — 602 25,080 Total $ 22,023 $ 7,191 $ — $ 640 $ 29,854 Nine Months Ended September 30, 2018 Asia $ 3,520 $ — $ — $ — $ 3,520 Australia 2,923 — — — 2,923 Canada 5,177 — — 124 5,301 Europe 3,839 — — — 3,839 United States 54,520 22,265 2,984 829 80,598 Total $ 69,979 $ 22,265 $ 2,984 $ 953 $ 96,181 |
LONG-TERM INCENTIVE COMPENSAT_2
LONG-TERM INCENTIVE COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted Stock Subject Only To A Service Condition Policy [Text Block] | Restricted Stock Subject Only to a Service Condition We calculate compensation cost for restricted stock grants by using the fair market value of our common stock at the date of grant, the number of shares issued and an adjustment for restrictions on dividends. This compensation cost is amortized on a straight-line basis over the applicable vesting period, with adjustments for forfeitures recorded as they occur. |
Total Expense Recorded for Stock Based Compensation | The following table presents the total stock-based compensation expense recorded for stock-based compensation arrangements for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Service condition stock-based compensation expense $ 1,578 $ 2,434 $ 5,526 $ 7,759 Performance condition stock-based compensation expense 491 1,107 1,909 3,471 Stock-based compensation expense under the Plan 2,069 3,541 7,435 11,230 Canadian Plan stock-based compensation expense 180 154 497 428 Total stock-based compensation expense $ 2,249 $ 3,695 $ 7,932 $ 11,658 |
Restricted Stock Subject To Service And Performance Conditions Policy [Text Block] | Restricted Stock Subject to Service and Performance Conditions Under the Plan, certain key employees were provided agreements for grants of restricted shares that vest over multiple year periods subject to achieving annual performance goals established by the Compensation Committee of Westwood’s Board of Directors. Each year the Compensation Committee establishes specific goals for that year’s vesting of the restricted shares. The date that the Compensation Committee establishes annual goals is considered to be the grant date and the fair value measurement date to determine expense on the shares that are likely to vest. The vesting period ends when the Compensation Committee formally approves the performance-based restricted stock vesting based on the specific performance goals from the Company’s audited consolidated financial statements. If a portion of the performance-based restricted shares does not vest, no compensation expense is recognized for that portion and any previously recognized compensation expense related to shares that do not vest is reversed. In March 2019, the Compensation Committee established fiscal 2019 goals based on various departmental and company-wide performance goals. During the first nine months of 2019, we recorded expense related to the applicable percentage of the performance-based restricted shares expected to meet or exceed the performance goals needed to earn the shares. |
Restricted Stock Subject Only to a Service Condition | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Status and Changes in Restricted Stock Grants that Subject to Service Condition | The following table details the status and changes in our restricted stock grants subject only to a service condition for the nine months ended September 30, 2019 : Shares Weighted Average Non-vested, January 1, 2019 440,073 $ 56.40 Granted 198,295 $ 38.64 Vested (162,287 ) $ 57.14 Forfeited (73,036 ) $ 51.11 Non-vested, September 30, 2019 403,045 $ 48.32 |
Restricted Shares Subject to Service and Performance Conditions | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Status and Changes in Restricted Stock Grants that Subject to Service Condition | The following table details the status and changes in our restricted stock grants subject to service and performance conditions for the nine months ended September 30, 2019 : Shares Weighted Average Non-vested, January 1, 2019 156,293 $ 55.66 Granted 21,186 $ 37.97 Vested (80,493 ) $ 56.09 Forfeited (19,495 ) $ 55.18 Non-vested, September 30, 2019 77,491 $ 50.29 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Maturity Analysis [Table Text Block] | The maturities of lease liabilities are as follows (in thousands): Year Ending December 31, Operating Leases 2019 (excluding the nine months ended September 30, 2019) $ 524 2020 2,117 2021 2,081 2022 1,717 2023 1,719 2024 1,550 Thereafter 1,852 Total undiscounted lease payments $ 11,560 Less discount (1,848 ) Total lease liabilities $ 9,712 |
Lease, Cost [Table Text Block] | The following table presents the components of lease costs, as well as supplemental cash flow information, related to our leases (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Operating lease cost $ 449 $ 426 $ 1,346 $ 1,279 Sublease income $ 33 $ — $ 110 $ — Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 524 $ 475 $ 1,568 $ 1,415 Right-of-use assets obtained in exchange for lease obligations $ — $ 569 $ — $ 1,010 |
Lessee, Operating Lease, Disclosure [Table Text Block] | The following table presents information regarding our operating leases (in thousands, except years and rates): September 30, 2019 December 31, 2018 Operating lease right-of-use assets $ 7,851 $ 8,698 Operating lease liabilities $ 1,554 $ 1,432 Non-current lease liabilities 8,158 9,331 Total lease liabilities $ 9,712 $ 10,763 Weighted-average remaining lease term (in years) 5.9 6.6 Weighted-average discount rate 5.0 % 5.0 % |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (in thousands) Advisory Trust Westwood Eliminations Consolidated Three Months Ended September 30, 2019 Net fee revenues from external sources $ 13,318 $ 6,281 $ — $ — $ 19,599 Net intersegment revenues 755 38 — (793 ) — Net interest and dividend revenue 179 69 3 — 251 Other, net 39 3 — — 42 Total revenues $ 14,291 $ 6,391 $ 3 $ (793 ) $ 19,892 Economic Earnings $ 3,574 $ 2,055 $ (1,758 ) $ — $ 3,871 Less: Restricted stock expense 2,249 Intangible amortization 445 Deferred taxes on goodwill 60 Net income $ 1,117 Segment assets $ 236,710 $ 66,352 $ 21,541 $ (147,289 ) $ 177,313 Segment goodwill $ 3,403 $ 16,401 $ — $ — $ 19,804 Three Months Ended September 30, 2018 Net fee revenues from external sources $ 22,023 $ 7,191 $ — $ — $ 29,214 Net intersegment revenues 1,756 58 — (1,814 ) — Net interest and dividend revenue 187 52 — — 239 Other, net 389 12 — — 401 Total revenues $ 24,355 $ 7,313 $ — $ (1,814 ) $ 29,854 Economic Earnings $ 10,553 $ 1,357 $ (2,369 ) $ — $ 9,541 Less: Restricted stock expense 3,695 Intangible amortization 419 Deferred taxes on goodwill 59 Net income $ 5,368 Segment assets $ 220,138 $ 60,658 $ 16,839 $ (105,008 ) $ 192,627 Segment goodwill $ 3,403 $ 16,401 $ — $ — $ 19,804 (in thousands) Advisory Trust Westwood Eliminations Consolidated Nine Months Ended September 30, 2019 Net fee revenues from external sources $ 44,719 $ 19,264 $ — $ — $ 63,983 Net intersegment revenues 2,638 180 — (2,818 ) — Net interest and dividend revenue 596 247 3 — 846 Other 645 (11 ) — — 634 Total revenues $ 48,598 $ 19,680 $ 3 $ (2,818 ) $ 65,463 Economic Earnings $ 13,665 $ 4,872 $ (5,776 ) $ — $ 12,761 Less: Restricted stock expense 7,932 Intangible amortization 1,281 Deferred taxes on goodwill 178 Net income $ 3,370 Nine Months Ended September 30, 2018 Net fee revenues from external sources $ 72,963 $ 22,265 $ — $ — $ 95,228 Net intersegment revenues 5,639 171 — (5,810 ) — Net interest and dividend revenue 464 152 — — 616 Other 331 6 — — 337 Total revenues $ 79,397 $ 22,594 $ — $ (5,810 ) $ 96,181 Economic Earnings $ 37,463 $ 4,034 $ (7,069 ) $ — $ 34,428 Less: Restricted stock expense 11,658 Intangible amortization 1,255 Deferred taxes on goodwill 177 Net income $ 21,338 |
ReconciliationFromNetIncomeToNonGaapMeasure [Table Text Block] | The following tables provide a reconciliation of Net income to Economic Earnings (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 1,117 $ 5,368 $ 3,370 $ 21,338 Add: Stock-based compensation expense 2,249 3,695 7,932 11,658 Add: Intangible amortization 445 419 1,281 1,255 Add: Tax benefit from goodwill amortization 60 59 178 177 Economic Earnings $ 3,871 $ 9,541 $ 12,761 $ 34,428 |
DESCRIPTION OF THE BUSINESS Oma
DESCRIPTION OF THE BUSINESS Omaha Operations Divestiture (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Cash Proceeds From Divestiture [Line Items] | ||||||
Proceeds from sale of operations | $ 10,000,000 | $ 0 | $ 10,013,000 | |||
Accounts receivable | $ 12,872,000 | 12,872,000 | $ 18,429,000 | |||
Other current assets | 2,657,000 | 2,657,000 | 2,731,000 | |||
Goodwill | 19,804,000 | $ 19,804,000 | 19,804,000 | 19,804,000 | 19,804,000 | |
Intangible assets, net | 15,701,000 | 15,701,000 | 15,961,000 | |||
Property and equipment, net of accumulated depreciation of $7,144 and $6,462 | 4,311,000 | 4,311,000 | 4,454,000 | |||
Accounts payable and accrued liabilities | (2,040,000) | (2,040,000) | $ (2,518,000) | |||
Gain on sale of operations | $ 0 | $ 0 | 524,000 | $ 0 | $ 524,000 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ||||||
Cash Proceeds From Divestiture [Line Items] | ||||||
Proceeds from sale of operations | 10,013,000 | |||||
Accounts receivable | 99,000 | |||||
Other current assets | 112,000 | |||||
Goodwill | 7,340,000 | |||||
Intangible assets, net | 2,170,000 | |||||
Property and equipment, net of accumulated depreciation of $7,144 and $6,462 | 18,000 | |||||
Accounts payable and accrued liabilities | (241,000) | |||||
Other liabilities | (9,000) | |||||
Gain on sale of operations | $ 524,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Changes and Error Corrections (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 7,851 | $ 8,698 |
Operating Lease, Liability, Current | 1,554 | 1,432 |
Operating Lease, Liability, Noncurrent | $ 8,158 | 9,331 |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | 0 | |
Operating Lease, Liability, Current | 0 | |
Operating Lease, Liability, Noncurrent | 0 | |
Deferred rent | 2,065 | |
Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | 8,698 | |
Operating Lease, Liability, Current | 1,432 | |
Operating Lease, Liability, Noncurrent | 9,331 | |
Deferred rent | (2,065) | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | 8,698 | |
Operating Lease, Liability, Current | 1,432 | |
Operating Lease, Liability, Noncurrent | 9,331 | |
Deferred rent | $ 0 |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive restricted shares | 81,000 | 0 | 87,000 | 3,251 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Computation of Basic and Diluted Shares | ||||
Net income | $ 1,117 | $ 5,368 | $ 3,370 | $ 21,338 |
Weighted average shares outstanding - basic (shares) | 8,432,598 | 8,402,697 | 8,414,317 | 8,359,088 |
Dilutive potential shares from unvested restricted shares (shares) | 38,075 | 195,533 | 53,506 | 202,830 |
Weighted average shares outstanding - diluted (shares) | 8,470,673 | 8,598,230 | 8,467,823 | 8,561,918 |
Earnings per share: | ||||
Basic (dollars per share) | $ 0.13 | $ 0.64 | $ 0.40 | $ 2.55 |
Diluted (dollars per share) | $ 0.13 | $ 0.62 | $ 0.40 | $ 2.49 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2019 | Feb. 28, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Investment in private fund | $ 250,000 | |||
Schedule Of Available For Sale Securities [Line Items] | ||||
Document Period End Date | Sep. 30, 2019 | |||
Cost | $ 42,437,000 | $ 65,875,000 | ||
Gross Unrealized Gains | 425,000 | 232,000 | ||
Gross Unrealized Losses | (18,000) | (326,000) | ||
Estimated Market Value | 45,864,000 | 65,781,000 | ||
Investments, at fair value | 42,844,000 | 65,781,000 | ||
Debt Securities, Trading, and Equity Securities, FV-NI, Cost | 45,457,000 | |||
Investments carried at fair value, unrealized gain | 425,000 | |||
Investments carried at fair value, unrealized loss | 18,000 | |||
Investment in Private Equity | $ 2,800,000 | |||
U.S. Government and Government agency obligations | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cost | 24,036,000 | 48,177,000 | ||
Gross Unrealized Gains | 145,000 | 232,000 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Market Value | 24,181,000 | 48,409,000 | ||
Money market funds | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cost | 12,072,000 | 10,354,000 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Market Value | 12,072,000 | 10,354,000 | ||
Equity funds | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cost | 6,329,000 | 7,344,000 | ||
Gross Unrealized Gains | 280,000 | 0 | ||
Gross Unrealized Losses | (18,000) | (326,000) | ||
Estimated Market Value | 6,591,000 | 7,018,000 | ||
Private Equity Funds [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Equity Securities, FV-NI, Unrealized Gain | 0 | |||
Equity Securities, FV-NI, Unrealized Loss | 0 | |||
Estimated Market Value | 250,000 | |||
Equity Securities, FV-NI, Cost | 250,000 | |||
Private Equity Investments [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Equity Securities, FV-NI, Unrealized Gain | 0 | |||
Equity Securities, FV-NI, Unrealized Loss | 0 | |||
Estimated Market Value | 2,770,000 | |||
Equity Securities, FV-NI, Cost | 2,770,000 | |||
VIE | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Estimated Market Value | $ 6,500,000 | $ 6,100,000 |
INVESTMENTS (Details Textual)
INVESTMENTS (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Feb. 28, 2019 | May 31, 2018 | |
Schedule of Investments [Line Items] | ||||
Long-term Investments | $ 5,425,000 | $ 5,425,000 | $ 5,400,000 | |
Document Period End Date | Sep. 30, 2019 | |||
Cost | $ 42,437,000 | 65,875,000 | ||
Trading Securities, Unrealized Holding Gain | 425,000 | 232,000 | ||
Trading Securities, Unrealized Holding Loss | (18,000) | (326,000) | ||
Investments, at fair value | 42,844,000 | 65,781,000 | ||
Estimated Market Value | 45,864,000 | 65,781,000 | ||
Debt Securities, Trading, and Equity Securities, FV-NI, Cost | 45,457,000 | |||
Investments carried at fair value, unrealized gain | 425,000 | |||
Investments carried at fair value, unrealized loss | (18,000) | |||
Investment in private fund | $ 250,000 | |||
VIE | ||||
Schedule of Investments [Line Items] | ||||
Estimated Market Value | 6,500,000 | 6,100,000 | ||
Equity funds | ||||
Schedule of Investments [Line Items] | ||||
Cost | 6,329,000 | 7,344,000 | ||
Trading Securities, Unrealized Holding Gain | 280,000 | 0 | ||
Trading Securities, Unrealized Holding Loss | (18,000) | (326,000) | ||
Estimated Market Value | 6,591,000 | 7,018,000 | ||
Money market funds | ||||
Schedule of Investments [Line Items] | ||||
Cost | 12,072,000 | 10,354,000 | ||
Trading Securities, Unrealized Holding Gain | 0 | 0 | ||
Trading Securities, Unrealized Holding Loss | 0 | 0 | ||
Estimated Market Value | 12,072,000 | $ 10,354,000 | ||
Private Equity Funds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Estimated Market Value | 250,000 | |||
Equity Securities, FV-NI, Cost | 250,000 | |||
Equity Securities, FV-NI, Unrealized Gain | 0 | |||
Equity Securities, FV-NI, Unrealized Loss | 0 | |||
Private Equity Investments [Member] | ||||
Schedule of Investments [Line Items] | ||||
Estimated Market Value | 2,770,000 | |||
Equity Securities, FV-NI, Cost | 2,770,000 | |||
Equity Securities, FV-NI, Unrealized Gain | 0 | |||
Equity Securities, FV-NI, Unrealized Loss | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | $ 2,770,000 | $ 2,770,000 | $ 0 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net | 0 | 0 | 0 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | $ 0 | 0 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease) | 0 | |||||||
Investments in securities: | ||||||||
Investments in trading securities | 45,864,000 | 45,864,000 | $ 65,781,000 | |||||
Investments, at fair value | 42,844,000 | 42,844,000 | 65,781,000 | |||||
Alternative Investment | (250,000) | (250,000) | ||||||
Fair Value, Net Asset (Liability) | 45,864,000 | 45,864,000 | 65,781,000 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 2,770,000 | $ 0 | 2,770,000 | $ 0 | $ 0 | 0 | $ 0 | $ 0 |
Inputs, Net Asset Value [Member] | ||||||||
Investments in securities: | ||||||||
Investments in trading securities | 0 | 0 | 0 | |||||
Alternative Investment | 250,000 | 250,000 | ||||||
Fair Value, Net Asset (Liability) | 250,000 | 250,000 | ||||||
Level 1 | ||||||||
Investments in securities: | ||||||||
Investments in trading securities | 42,844,000 | 42,844,000 | 65,781,000 | |||||
Alternative Investment | 0 | 0 | ||||||
Fair Value, Net Asset (Liability) | 42,844,000 | 42,844,000 | 65,781,000 | |||||
Level 2 | ||||||||
Investments in securities: | ||||||||
Investments in trading securities | 0 | 0 | 0 | |||||
Alternative Investment | 0 | 0 | ||||||
Fair Value, Net Asset (Liability) | 0 | 0 | 0 | |||||
Level 3 | ||||||||
Investments in securities: | ||||||||
Investments in trading securities | 0 | 0 | 0 | |||||
Alternative Investment | 0 | 0 | ||||||
Fair Value, Net Asset (Liability) | 2,770,000 | 2,770,000 | $ 0 | |||||
Private Equity Investments [Member] | ||||||||
Investments in securities: | ||||||||
Investments in trading securities | 2,770,000 | 2,770,000 | ||||||
Private Equity Investments [Member] | Level 3 | ||||||||
Investments in securities: | ||||||||
Investments in trading securities | $ 2,770,000 | $ 2,770,000 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 0 |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 | $ 0 | $ 0 | $ 0 |
COMPONENTS OF OCI (Details)
COMPONENTS OF OCI (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Components of accumulated other comprehensive loss | ||
Foreign currency translation adjustment | $ (3,799) | $ (4,883) |
Accumulated other comprehensive loss | $ (3,799) | $ (4,883) |
STOCKHOLDERS' EQUITY Share Repu
STOCKHOLDERS' EQUITY Share Repurchase Program (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Jul. 27, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||
Stock Repurchase Program, Authorized Amount | $ 10,000,000 | ||
Additional Share Repurchase | $ 5,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 4,100,000 | ||
Stock Repurchased During Period, Shares | 43,388 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 28.99 | ||
Stock Repurchased During Period, Value | $ 1,300,000 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 45,864 | $ 45,864 | $ 65,781 | ||
Fee revenues from Westwood VIEs | 7,200 | $ 11,700 | 24,300 | $ 36,300 | |
VIE | |||||
Variable Interest Entity [Line Items] | |||||
Debt Securities, Trading, and Equity Securities, FV-NI | 6,500 | 6,500 | $ 6,100 | ||
Common Trust Funds | |||||
Variable Interest Entity [Line Items] | |||||
Debt Securities, Trading, and Equity Securities, FV-NI | 0 | 0 | |||
UCITS Fund | |||||
Variable Interest Entity [Line Items] | |||||
Debt Securities, Trading, and Equity Securities, FV-NI | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES (D_2
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entities | ||
Assets Under Management | $ 14,986,000 | |
Estimated Market Value | 45,864 | $ 65,781 |
Westwood Funds® | ||
Variable Interest Entities | ||
Assets Under Management | 2,338,000 | |
Estimated Market Value | 6,500 | |
Amount at Risk | 6,500 | |
Common Trust Funds | ||
Variable Interest Entities | ||
Assets Under Management | 1,409,000 | |
Estimated Market Value | 0 | |
Amount at Risk | 0 | |
UCITS Fund | ||
Variable Interest Entities | ||
Assets Under Management | 309,000 | |
Estimated Market Value | 0 | |
Amount at Risk | 0 | |
Westwood Hospitality Fund I LLC [Member] | ||
Variable Interest Entities | ||
Assets Under Management | 11,000 | |
Estimated Market Value | 300 | |
Amount at Risk | 300 | |
Private Equity Investments [Member] | ||
Variable Interest Entities | ||
Assets Under Management | 0 | |
Estimated Market Value | 8,200 | |
Amount at Risk | 8,200 | |
Wealth Management | ||
Variable Interest Entities | ||
Assets Under Management | 2,881,000 | |
Institutional | ||
Variable Interest Entities | ||
Assets Under Management | $ 8,038,000 |
REVENUE Disaggregation of Reven
REVENUE Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | REVENUE Revenue Recognition Revenues are recognized when the performance obligation (the investment management and advisory or trust services provided to the client) defined by the investment advisory or sub-advisory agreement is satisfied. For each performance obligation, we determine at contract inception whether the revenue satisfies over time or at a point in time. We derive our revenues from investment advisory fees, trust fees and other sources of revenues. Advisory and Trust fees are calculated based on a percentage of assets under management and the performance obligation is realized over the current calendar quarter. Once clients receive our investment advisory services we have an enforceable right to payment. Advisory Fee Revenues Our advisory fees are generated by Westwood Management and Westwood International, which manage client accounts under investment advisory and sub-advisory agreements. Advisory fees are typically calculated based on a percentage of assets under management and are paid in accordance with the terms of the agreements. Advisory fees are paid quarterly in advance based on assets under management on the last day of the preceding quarter, quarterly in arrears based on assets under management on the last day of the quarter just ended or are based on a daily or monthly analysis of assets under management for the stated period. We recognize advisory fee revenues as services are rendered. Since our advance paying clients' billing periods coincide with the calendar quarter to which such payments relate, revenue is recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred advisory fee revenues. Advisory clients typically consist of institutional and mutual fund accounts. Institutional investors include separate accounts of (i) corporate pension and profit sharing plans, public employee retirement funds, Taft Hartley plans, endowments, foundations and individuals; (ii) subadvisory relationships where Westwood provides investment management services for funds offered by other financial institutions; (iii) pooled investment vehicles, including the UCITS Fund and collective investment trusts; and (iv) managed account relationships with brokerage firms and other registered investment advisors that offer Westwood products to their customers. Mutual funds include the Westwood Funds®, a family of mutual funds for which Westwood Management serves as advisor. These funds are available to individual investors, as well as offered as part of our investment strategies for institutional investors and wealth management accounts. Arrangements with Performance Based Obligations A limited number of our advisory clients have a contractual performance-based fee component in their contracts, which generates additional revenues if we outperform a specified index over a specific period of time. The revenue is based on future market performance and is susceptible to factors outside our control. We cannot conclude that a significant reversal in the cumulative amount of revenue recognized will not occur during the measurement period, and therefore the revenue is recorded at the end of the measurement period when the performance obligation has been satisfied. Trust Fee Revenues Our trust fees are generated by Westwood Trust pursuant to trust or custodial agreements. Trust fees are separately negotiated with each client and are generally based on a percentage of assets under management. Westwood Trust also provides trust services to a small number of clients on a fixed fee basis. The fees for most of our trust clients are calculated quarterly in arrears, based on a daily average of assets under management for the quarter. Since billing periods for most of Westwood Trust’s clients coincide with the calendar quarter, revenue is fully recognized within the quarter and our Condensed Consolidated Financial Statements contain no deferred trust fee revenue. Revenue Disaggregated Sales taxes are excluded from revenues. The following table presents our revenue disaggregated by account type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Advisory Fees: Institutional $ 8,664 $ 14,426 $ 28,475 $ 46,815 Mutual Funds 4,375 7,527 15,452 23,030 Wealth Management 125 70 338 134 Performance-based 154 — 454 2,984 Trust Fees 6,281 7,191 19,264 22,265 Other 293 640 1,480 953 Total revenues $ 19,892 $ 29,854 $ 65,463 $ 96,181 We serve clients in various locations around the world. The following table presents our revenue disaggregated by our clients' geographical locations (in thousands): Three Months Ended September 30, 2019 Advisory Trust Performance-based Other Total Asia $ 410 $ — $ — $ — $ 410 Canada 608 — — 44 652 Europe 836 — 154 — 990 United States 11,310 6,281 — 249 17,840 Total $ 13,164 $ 6,281 $ 154 $ 293 $ 19,892 Nine Months Ended September 30, 2019 Asia $ 1,223 $ — $ — $ — $ 1,223 Australia 591 — — — 591 Canada 2,134 — — 128 2,262 Europe 2,685 — 454 — 3,139 United States 37,632 19,264 — 1,352 58,248 Total $ 44,265 $ 19,264 $ 454 $ 1,480 $ 65,463 Three Months Ended September 30, 2018 Advisory Trust Performance-based Other Total Asia $ 853 $ — $ — $ — $ 853 Australia 927 — — — 927 Canada 1,707 — — 38 1,745 Europe 1,249 — — — 1,249 United States 17,287 7,191 — 602 25,080 Total $ 22,023 $ 7,191 $ — $ 640 $ 29,854 Nine Months Ended September 30, 2018 Asia $ 3,520 $ — $ — $ — $ 3,520 Australia 2,923 — — — 2,923 Canada 5,177 — — 124 5,301 Europe 3,839 — — — 3,839 United States 54,520 22,265 2,984 829 80,598 Total $ 69,979 $ 22,265 $ 2,984 $ 953 $ 96,181 | |||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 19,892 | $ 29,854 | $ 65,463 | $ 96,181 |
Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 410 | 853 | 1,223 | 3,520 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 927 | 591 | 2,923 | |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 652 | 1,745 | 2,262 | 5,301 |
Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 990 | 1,249 | 3,139 | 3,839 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 17,840 | 25,080 | 58,248 | 80,598 |
Investment Advisory Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,164 | 22,023 | 44,265 | 69,979 |
Investment Advisory Services [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 410 | 853 | 1,223 | 3,520 |
Investment Advisory Services [Member] | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 927 | 591 | 2,923 | |
Investment Advisory Services [Member] | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 608 | 1,707 | 2,134 | 5,177 |
Investment Advisory Services [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 836 | 1,249 | 2,685 | 3,839 |
Investment Advisory Services [Member] | United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 11,310 | 17,287 | 37,632 | 54,520 |
Investment Advisory Services [Member] | Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 8,664 | 14,426 | 28,475 | 46,815 |
Mutual Fund Advisory [Member] | Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4,375 | 7,527 | 15,452 | 23,030 |
Private Wealth Advisory [Member] | Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 125 | 70 | 338 | 134 |
Performance-based fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 154 | 0 | 454 | 2,984 |
Performance-based fees [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Performance-based fees [Member] | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Performance-based fees [Member] | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Performance-based fees [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 154 | 0 | 454 | 0 |
Performance-based fees [Member] | United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 2,984 |
Performance-based fees [Member] | Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 154 | 0 | 454 | 2,984 |
Trust Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,281 | 7,191 | 19,264 | 22,265 |
Trust Fees [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Trust Fees [Member] | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Trust Fees [Member] | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Trust Fees [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Trust Fees [Member] | United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,281 | 7,191 | 19,264 | 22,265 |
Trust Fees [Member] | Trust | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,281 | 7,191 | 19,264 | 22,265 |
Other Revenue Misc Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 293 | 640 | 1,480 | 953 |
Other Revenue Misc Services [Member] | Asia [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Other Revenue Misc Services [Member] | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | |
Other Revenue Misc Services [Member] | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 44 | 38 | 128 | 124 |
Other Revenue Misc Services [Member] | Europe [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Other Revenue Misc Services [Member] | United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 249 | 602 | 1,352 | 829 |
Other Revenue Misc Services [Member] | Advisory | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 293 | $ 640 | $ 1,480 | $ 953 |
LONG-TERM INCENTIVE COMPENSAT_3
LONG-TERM INCENTIVE COMPENSATION (Details Textual) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($) | Sep. 30, 2019CAD ($)shares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Amount of shares purchased in the open market | $ 1,258,000 | $ 0 | ||||
Remaining unrecognized compensation cost recognized over a remaining weighted average period | 2 years 4 months 24 days | 2 years 4 months 24 days | ||||
Accrued liability | $ 67,000 | $ 67,000 | $ 635,000 | |||
Mutual Fund [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Service period of mutual fund share incentive award | 3 years | 3 years | ||||
Expense related to mutual fund share incentive awards | $ 12,000 | $ 89,000 | $ (100,000) | 274,000 | ||
Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total number of shares that may be issued under the stock based compensation Plan (including predecessor plans to the Plan) | shares | 5,048,100 | 5,048,100 | ||||
Shares remain available for issuance | shares | 511,000 | 511,000 | ||||
Remaining unrecognized compensation cost | $ 15,900,000 | $ 15,900,000 | ||||
Nonvested restricted shares | shares | 403,045 | 403,045 | 440,073 | |||
Expense related to mutual fund share incentive awards | $ 2,249,000 | $ 3,695,000 | $ 7,932,000 | $ 11,658,000 | ||
Canadian Plan | Westwood International Advisors Inc | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares remain available for issuance | shares | 62,000 | 62,000 | ||||
Share Based Compensation Arrangement By Share Based Payment Award Available For Grant, Original | $ 10 | $ 7,600,000 | ||||
Fund purchases of common stock | $ 61,078 | 61,078 | ||||
Purchases of common stock with respect to awards granted | $ 2.3 | $ 1,700,000 | ||||
Share price | $ / shares | $ 27.67 | $ 27.67 | ||||
Amount of shares purchased in the open market | $ 980,000 | |||||
Purchases of treasury stock, shares | shares | 25,047 | 25,047 | ||||
Remaining unrecognized compensation cost | $ 907,000 | $ 907,000 | ||||
Remaining unrecognized compensation cost recognized over a remaining weighted average period | 1 year 9 months 18 days | 1 year 9 months 18 days |
LONG-TERM INCENTIVE COMPENSAT_4
LONG-TERM INCENTIVE COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
DomesticEmployeeServiceAward [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 1,578 | $ 2,434 | $ 5,526 | $ 7,759 |
Performance Shares [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | 491 | 1,107 | 1,909 | 3,471 |
DomesticServiceAndPerformanceAward [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | 2,069 | 3,541 | 7,435 | 11,230 |
CanadianEmployeeServiceAward [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | 180 | 154 | 497 | 428 |
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Expense | $ 2,249 | $ 3,695 | $ 7,932 | $ 11,658 |
LONG-TERM INCENTIVE COMPENSAT_5
LONG-TERM INCENTIVE COMPENSATION (Details 1) - Restricted Shares Subject Only to a Service Condition | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Restricted shares subject only to a service condition: | |
Non-vested, beginning balance, shares | shares | 440,073 |
Granted (shares) | shares | 198,295 |
Vested (shares) | shares | (162,287) |
Forfeited (shares) | shares | (73,036) |
Non-vested, ending balance, shares | shares | 403,045 |
Non-vested, beginning balance, (dollars per share) | $ / shares | $ 56.40 |
Granted (dollars per share) | $ / shares | 38.64 |
Vested (dollars per share) | $ / shares | 57.14 |
Forfeited (dollars per share) | $ / shares | 51.11 |
Non-vested, ending balance, (dollars per share) | $ / shares | $ 48.32 |
LONG-TERM INCENTIVE COMPENSAT_6
LONG-TERM INCENTIVE COMPENSATION (Details 2) - Restricted Shares Subject to Service and Performance Conditions | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Restricted shares subject only to a service condition: | |
Non-vested, beginning balance, shares | shares | 156,293 |
Granted (shares) | shares | 21,186 |
Vested (shares) | shares | (80,493) |
Forfeited (shares) | shares | (19,495) |
Non-vested, ending balance, shares | shares | 77,491 |
Non-vested, beginning balance, (dollars per share) | $ / shares | $ 55.66 |
Granted (dollars per share) | $ / shares | 37.97 |
Vested (dollars per share) | $ / shares | 56.09 |
Forfeited (dollars per share) | $ / shares | 55.18 |
Non-vested, ending balance, (dollars per share) | $ / shares | $ 50.29 |
INCOME TAXES Effective tax rate
INCOME TAXES Effective tax rate (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Discrete tax expense from stock-based compensation | $ 638,000 | |||
Effective Income Tax Rate Reconciliation, Percent | 28.40% | 24.90% | 41.00% | 25.30% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Document Period End Date | Sep. 30, 2019 | ||||
UCITS Fund | |||||
Related Party Transaction [Line Items] | |||||
Fees earned from related party | $ 708,000 | $ 1,000,000 | $ 2,300,000 | $ 3,300,000 | |
Fees unpaid from related party | 240,000 | 240,000 | $ 295,000 | ||
Private Equity Investments [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Purchases from Related Party | 216,000 | 162,000 | 796,000 | 767,000 | |
Private Equity Investment Bank [Member] [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Purchases from Related Party | 33,000 | 0 | 110,000 | 0 | |
Trust | |||||
Related Party Transaction [Line Items] | |||||
Due from related party | 90,000 | 90,000 | $ 84,000 | ||
Fees earned from related party | $ 90,000 | $ 89,000 | $ 252,000 | $ 276,000 |
LEASES (Details)
LEASES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Sublease Term | 7 years | |||||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 524,000 | $ 524,000 | ||||
Lessee, Operating Lease, Liability, Payments, Due | 2,117,000 | 2,117,000 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 2,081,000 | 2,081,000 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 1,717,000 | 1,717,000 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 1,719,000 | 1,719,000 | ||||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1,550,000 | 1,550,000 | ||||
Operating Lease, Right-of-Use Asset | 7,851,000 | 7,851,000 | $ 8,698,000 | |||
Operating Lease, Expense | 449,000 | $ 426,000 | 1,346,000 | $ 1,279,000 | ||
Sublease Income | 33,000 | 0 | 110,000 | 0 | ||
Operating Lease, Payments | 524,000 | 475,000 | 1,568,000 | 1,415,000 | ||
Operating Lease, Liability, Current | 1,554,000 | 1,554,000 | 1,432,000 | |||
Operating Lease, Liability, Noncurrent | $ 8,158,000 | $ 8,158,000 | $ 9,331,000 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5 years 10 months 24 days | 5 years 10 months 24 days | 6 years 7 months 6 days | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5.00% | 5.00% | 5.00% | |||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | $ 1,852,000 | $ 1,852,000 | ||||
Total Lease Payment | 11,560,000 | 11,560,000 | ||||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,848,000) | (1,848,000) | ||||
Operating Lease, Liability | 9,712,000 | 9,712,000 | $ 10,763,000 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 | $ 569,000 | $ 0 | $ 1,010,000 | ||
Office equipment lease term | 2 years | |||||
Minimum [Member] | ||||||
Corporate offices remaining lease terms | 1 year | |||||
Maximum [Member] | ||||||
Corporate offices remaining lease terms | 7 years |
SEGMENT REPORTING (Details Text
SEGMENT REPORTING (Details Textual) | 9 Months Ended |
Sep. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenue From External Sources | $ 19,599 | $ 29,214 | $ 63,983 | $ 95,228 | |
ReconciliationFromNetIncomeToNonGaapMeasure [Table Text Block] | The following tables provide a reconciliation of Net income to Economic Earnings (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income $ 1,117 $ 5,368 $ 3,370 $ 21,338 Add: Stock-based compensation expense 2,249 3,695 7,932 11,658 Add: Intangible amortization 445 419 1,281 1,255 Add: Tax benefit from goodwill amortization 60 59 178 177 Economic Earnings $ 3,871 $ 9,541 $ 12,761 $ 34,428 | ||||
Net intersegment revenues | 0 | 0 | $ 0 | 0 | |
Net interest and dividend revenue | 251 | 239 | 846 | 616 | |
Other revenue | 42 | 401 | 634 | 337 | |
Total revenues | 19,892 | 29,854 | 65,463 | 96,181 | |
Economic Earnings | 3,871 | 9,541 | 12,761 | 34,428 | |
Intangible amortization | 445 | 419 | 1,281 | 1,255 | |
Deferred taxes on goodwill | 60 | 59 | 178 | 177 | |
Net income | 1,117 | 5,368 | 3,370 | 21,338 | |
Segment assets | 177,313 | 192,627 | 177,313 | 192,627 | $ 199,183 |
Goodwill | 19,804 | 19,804 | 19,804 | 19,804 | $ 19,804 |
Operating Segments | Advisory | |||||
Segment Reporting Information [Line Items] | |||||
Revenue From External Sources | 13,318 | 22,023 | 44,719 | 72,963 | |
Net intersegment revenues | 755 | 1,756 | 2,638 | 5,639 | |
Net interest and dividend revenue | 179 | 187 | 596 | 464 | |
Other revenue | 39 | 389 | 645 | 331 | |
Total revenues | 14,291 | 24,355 | 48,598 | 79,397 | |
Economic Earnings | 3,574 | 10,553 | 13,665 | 37,463 | |
Segment assets | 236,710 | 220,138 | 236,710 | 220,138 | |
Goodwill | 3,403 | 3,403 | 3,403 | 3,403 | |
Operating Segments | Trust | |||||
Segment Reporting Information [Line Items] | |||||
Revenue From External Sources | 6,281 | 7,191 | 19,264 | 22,265 | |
Net intersegment revenues | 38 | 58 | 180 | 171 | |
Net interest and dividend revenue | 69 | 52 | 247 | 152 | |
Other revenue | 3 | 12 | (11) | 6 | |
Total revenues | 6,391 | 7,313 | 19,680 | 22,594 | |
Economic Earnings | 2,055 | 1,357 | 4,872 | 4,034 | |
Segment assets | 66,352 | 60,658 | 66,352 | 60,658 | |
Goodwill | 16,401 | 16,401 | 16,401 | 16,401 | |
Westwood Holdings | |||||
Segment Reporting Information [Line Items] | |||||
Revenue From External Sources | 0 | 0 | 0 | 0 | |
Net intersegment revenues | 0 | 0 | 0 | 0 | |
Net interest and dividend revenue | 3 | 0 | 3 | 0 | |
Other revenue | 0 | 0 | 0 | 0 | |
Total revenues | 3 | 0 | 3 | 0 | |
Economic Earnings | (1,758) | (2,369) | (5,776) | (7,069) | |
Segment assets | 21,541 | 16,839 | 21,541 | 16,839 | |
Goodwill | 0 | 0 | 0 | 0 | |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue From External Sources | 0 | 0 | 0 | 0 | |
Net intersegment revenues | (793) | (1,814) | (2,818) | (5,810) | |
Net interest and dividend revenue | 0 | 0 | 0 | 0 | |
Other revenue | 0 | 0 | 0 | 0 | |
Total revenues | (793) | (1,814) | (2,818) | (5,810) | |
Economic Earnings | 0 | 0 | 0 | 0 | |
Segment assets | (147,289) | (105,008) | (147,289) | (105,008) | |
Goodwill | 0 | 0 | 0 | 0 | |
Restricted Stock | |||||
Segment Reporting Information [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 2,249 | $ 3,695 | $ 7,932 | $ 11,658 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | Jan. 02, 2020 | Dec. 06, 2019 | Oct. 30, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Subsequent Event [Line Items] | ||||||||
Dividends declared per share (dollars per share) | $ 0.72 | $ 0.68 | $ 2.16 | $ 2.04 | ||||
Stock Repurchased During Period, Shares | 43,388 | |||||||
Stock Repurchased During Period, Value | $ 1,300,000 | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared per share (dollars per share) | $ 0.72 | |||||||
Dividends payable, date to be paid | Jan. 2, 2020 | |||||||
Dividends payable, date of record | Dec. 6, 2019 | |||||||
Stock Repurchased During Period, Shares | 42,171 | |||||||
Stock Repurchased During Period, Value | $ 1,200,000 |