Westwood Holdings Group, Inc. (NYSE: WHG) today reported 2011 first quarter revenues of $17.0 million, net income of $3.5 million and earnings per diluted share of $0.50. This compares to revenues of $13.2 million, net income of $2.9 million and earnings per diluted share of $0.40 in the first quarter of 2010. Economic Earnings were $6.1 million compared to $4.9 million for the first quarter of 2010. Economic Earnings per share (“Economic EPS”) were $0.85 per diluted share compared to $0.74 per diluted share for the first quarter of 2010. (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 $13.3 billion as of March 31, 2011, an increase of 25% compared to $10.6 billion as of March 31, 2010. The increase was primarily due to market appreciation of assets under management, the acquisition of McCarthy Group Advisors in November 2010 and asset inflows from new and existing clients, partially offset by the withdrawal of assets by certain clients. Mutual fund assets were $1.2 billion as of March 31, 2011, an increase of 83% compared to assets of $652 million as of March 31, 2010.
Brian Casey, Westwood’s President & CEO, commented, “We continued to capitalize on the momentum in our business this quarter as assets under management reached another record level. Our investment teams produced performance above the median of the respective peer group across most products and the WHG Funds surpassed $1 billion in assets with continued strong organic growth. We added our sixth and seventh funds to the WHG Funds family with the reorganization of the McCarthy Multi-Cap Stock Fund into the WHG Dividend Growth Fund (WHGDX) and the launch of the WHG SMidCap Plus Fund (WHGPX). We are also pleased that our fellow shareholders today approved an increase in the shares available for our stock incentive plan. We believe this validates the appeal of our shared ownership model; the additional shares will enable us to continue to align the incentives of our employee owners with other shareholders and our clients.”