Westwood Holdings Group, Inc. (NYSE: WHG) today reported 2011 third quarter revenues of $16.0 million, net income of $3.3 million and earnings per diluted share of $0.46. This compares to revenues of $13.5 million, net income of $2.6 million and earnings per diluted share of $0.38 in the third quarter of 2010. Economic Earnings were $5.9 million compared to $5.0 million for the third quarter of 2010. Economic Earnings per share (“Economic EPS”) were $0.81 per diluted share compared to $0.73 per diluted share for the third 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 increased by $1.0 billion, or 9.5%, to $11.7 billion at September 30, 2011, compared with $10.6 billion at September 30, 2010. The increase was primarily due to asset inflows from new and existing clients and the acquisition of McCarthy Group Advisors in November 2010, partially offset by the withdrawal of assets by certain clients and market depreciation of assets under management. Mutual fund assets were $1.1 billion as of September 30, 2011, an increase of 43% compared to assets of $760 million as of September 30, 2010, primarily driven by net asset inflows.
Brian Casey, Westwood’s President & CEO, commented, “While the market environment was very challenging in the third quarter, with most indexes posting double digit losses, we were pleased that new and existing clients continued to show confidence in our products as we achieved our third consecutive quarter of net positive flows. Delivering strong risk-adjusted performance to our clients remains our top priority. We also continue to utilize our strong financial position to invest in our business by adding additional talent and depth to our team as well as implementing several technology upgrades to enhance efficiencies and improve our client reporting capabilities.”