Exhibit 99.1
Westwood Holdings Group, Inc. Announces 50% Increase in Quarterly Dividend, a
Special Cash Dividend of $1.00, and Q2 2003 Net Income of $0.22 per Share
Dallas, July 29 - Westwood Holdings Group, Inc. (NYSE: WHG) today announced that
its Board of Directors has approved the payment of a quarterly cash dividend of
$0.03 per common share, an increase of 50% from the previous quarterly dividend
of $0.02 per share. The Board has also approved the payment of a special
dividend of $1.00 per share. Both the quarterly and special dividends will be
payable on October 1, 2003 to stockholders of record on September 15, 2003.
Westwood also today reported 2003 second quarter revenues of $5.1 million, net
income of $1.2 million, and earnings per diluted share of $0.22. This compares
to revenues of $5.5 million, net income of $1.3 million and earnings per diluted
share of $0.23 in the second quarter of 2002.
Total operating expenses for the 2003 second quarter were $3.1 million, a 9.6%
decrease compared to $3.4 million for the 2002 second quarter.
Assets under management were $4.3 billion as of June 30, 2003, a decrease of
6.6% compared to $4.6 billion on June 30, 2002 and a 13.6% increase from the
$3.8 billion reported at March 31, 2003. Average assets under management for the
second quarter of 2003 were $4.1 billion compared to $4.3 billion for the second
quarter of 2002, a decrease of 5.5%.
Susan M. Byrne, Westwood's founder and Chief Executive Officer commented, "Our
dividend is a way to balance the desire for long-term capital growth with the
desire for more near-term income. We believe the interests of our stockholders
and employees are currently well aligned and are pleased to have the financial
flexibility to return excess capital to our stockholders via a special dividend.
Even though we are planning for continued challenging times ahead we will
continue to invest in our people and products as essential to meeting our
long-term growth targets. We expect to maintain a flexible and conservative
financial position even after the payment of this special dividend."
About Westwood
Westwood Holdings Group, Inc. manages investment assets and provides services
for its clients through two subsidiaries, Westwood Management Corp. and Westwood
Trust. Westwood Management Corp. is a registered investment advisor and provides
investment advisory services to corporate pension funds, public retirement
plans, endowments and foundations, mutual funds and clients of Westwood Trust.
Westwood Trust provides, to institutions and high net worth individuals, trust
and custodial services and participation in common trust funds that it sponsors.
Westwood Holdings Group, Inc. trades on the New York Stock Exchange under the
symbol "WHG." For more information, please visit the Company's website at
www.westwoodgroup.com.
Note on Forward-looking Statements
Statements that are not purely historical facts, including statements about
anticipated or expected future revenue and earnings growth and profitability, as
well as other statements including words such as "anticipate," "believe,"
"plan," "estimate," "expect," "intend," "should," "could," "goal," "target,"
"designed," "on track," "continue," "comfortable with," "optimistic," "look
forward to" and other similar expressions, constitute forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements are subject to known and unknown risks, uncertainties
and other factors, which may cause actual results to be materially different
from those contemplated by the forward-looking statements. Such factors include
the risks and uncertainties referenced in our documents filed with, or furnished
to, the Securities and Exchange Commission, including without limitation those
identified under the caption "Forward-Looking Statements and Risk Factors" in
the Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. Readers are cautioned not to place undue reliance on
forward-looking statements.
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
June 30, June 30,
------------------------- -------------------------
2003 2002 2003 2002
------- ------- ------- -------
REVENUES:
Advisory fees ........................................... $ 3,693 $ 4,115 $ 7,313 $ 8,327
Trust fees .............................................. 1,071 1,171 2,210 2,304
Other revenues .......................................... 306 252 559 439
------- ------- ------- -------
Total revenues ........................................ 5,070 5,538 10,082 11,070
------- ------- ------- -------
EXPENSES:
Employee compensation and benefits ...................... 2,202 2,127 4,321 4,347
Sales and marketing ..................................... 178 160 321 280
Information technology .................................. 208 238 383 460
Professional services ................................... 159 439 418 806
General and administrative .............................. 363 476 712 800
------- ------- ------- -------
Total expenses ........................................ 3,110 3,440 6,155 6,693
------- ------- ------- -------
Income before income taxes ................................. 1,960 2,098 3,927 4,377
Provision for income tax expense ........................... 761 839 1,478 1,732
------- ------- ------- -------
Net income ................................................. $ 1,199 $ 1,259 $ 2,449 $ 2,645
======= ======= ======= =======
Earnings per share:
Basic ................................................... $ 0.22 $ 0.23 $ 0.45 $ 0.49
Diluted ................................................. $ 0.22 $ 0.23 $ 0.45 $ 0.49
WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of June 30, 2003 and December 31, 2002
(in thousands, except par values and share amounts)
June 30,
2003 December 31,
(unaudited) 2002
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ASSETS
Current Assets:
Cash and cash equivalents ..................... $ 3,644 $ 4,359
Accounts receivable ........................... 1,996 2,186
Investments, at market value .................. 16,116 14,230
-------- --------
Total current assets ...................... 21,756 20,775
Goodwill, net of accumulated amortization
of $640 ..................................... 2,302 2,302
Other assets, net ............................. 940 1,043
-------- --------
Total assets .............................. $ 24,998 $ 24,120
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities ...... $ 834 $ 701
Dividends payable ............................. 108 108
Compensation and benefits payable ............. 1,727 3,523
Income taxes payable .......................... 340 604
-------- --------
Total current liabilities ................. 3,009 4,936
Other liabilities ............................. 47 61
-------- --------
Total liabilities ......................... 3,056 4,997
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Stockholders' Equity:
Common stock, $0.01 par value, authorized
10,000,000 shares, issued 5,394,522 and
outstanding 5,394,169 shares at
June 30, 2003; issued 5,394,522 and
outstanding 5,394,145 shares at
December 31, 2002 ............................. 54 54
Additional paid-in capital .................... 9,717 9,579
Treasury stock, at cost - 353 shares at
June 30, 2003 and 377 shares at
December 31, 2002 ............................. (6) (6)
Notes receivable from stockholders ............ (2,719) (3,598)
Retained earnings ............................. 14,896 13,094
-------- --------
Total stockholders' equity ................ 21,942 19,123
-------- --------
Total liabilities and stockholders' equity ......... $ 24,998 $ 24,120
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SOURCE: Westwood Holdings Group, Inc.
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CONTACT:
Westwood Holdings Group, Inc.
Bill Hardcastle
(214) 756-6900