Westwood Holdings Group, Inc. (NYSE: WHG) today reported 2010 fourth quarter revenues of $15.4 million, net income of $3.3 million and earnings per diluted share of $0.46. This compares to revenues of $12.7 million, net income of $2.7 million and earnings per diluted share of $0.38 in the fourth quarter of 2009. Economic Earnings were $5.7 million compared to $4.7 million for the fourth quarter of 2009. Economic Earnings per share (“Economic EPS”) were $0.81 per diluted share compared to $0.73 per diluted share for the fourth quarter of 2009. (Economic Earnings and Economic EPS are non-GAAP performance measures and are explained and reconciled with the most comparable GAAP numbers in the attached tables.)
Assets under management were $12.5 billion as of December 31, 2010, an increase of 23% compared to $10.2 billion as of December 31, 2009. The increase was primarily due to market appreciation of assets under management, the acquisition of McCarthy Group Advisors in November and asset inflows from new and existing clients, partially offset by the withdrawal of assets by certain clients. Mutual fund assets, including five WHG Funds and the McCarthy Multi-Cap Stock Fund, were $970 million as of December 31, 2010, an increase of 71% compared to assets of $566 million as of December 31, 2009. On February 1, 2011, shareholders of the McCarthy Multi-Cap Stock Fund approved the fund’s reorganization into the WHG Dividend Growth Fund (WHGDX).
Brian Casey, Westwood’s President & CEO, commented, “Westwood achieved a number of important milestones in 2010. We posted the highest levels of assets under management, revenue and net income in our history. We expanded our private wealth franchise with the acquisition of McCarthy Group Advisors and introduced SMidCap Plus+ as an investment alternative to our highly successful SMidCap product, which recently reached its maximum asset capacity. Our WHG Funds continued their strong organic growth and approached $1 billion at year-end. Looking forward, we intend to utilize our stable financial position to reinvest in our business and capitalize on attractive growth opportunities in the marketplace.”