Westwood Holdings Group Inc (WHG, Financial) released its Q3 2023 earnings report on October 31, 2023. The report shows a significant increase in revenues and net income compared to the same period last year. The company's strong performance was reflected in its quarterly peer rankings with SMidCap Value, MidCap Value, Platinum, and Tactical Growth all posting top quartile rankings.
Financial Highlights
Revenues for Q3 2023 were $21.9 million, the same as the second quarter's revenues but a substantial increase from $15.4 million in Q3 2022. Net income for Q3 2023 was $4.4 million, a significant improvement from the net loss of $1.2 million in Q3 2022. Non-GAAP Economic Earnings for Q3 2023 were $6.3 million, compared to $0.8 million in Q3 2022.
New Initiatives
During the quarter, WHG launched Managed Investment Solutions, a group providing customized index solutions to a wide range of clients, and a new private markets strategy called Westwood Energy Secondaries Fund to source energy-related private investments.
Balance Sheet and Cash Flow
As of September 30, 2023, WHG held $48.5 million in cash and short-term investments, up $10.4 million from the second quarter. Stockholders' equity totaled $117.8 million, and the company reported no debt. WHG declared a cash dividend of $0.15 per common share, payable on January 3, 2024, to stockholders of record on December 1, 2023.
CEO Commentary
Brian Casey, Westwood’s President and CEO, commented on the results,
We are very pleased with the progress we have made over the past several quarters, especially the integration of relationships and teams from Salient Partners. We are ready to capitalize on the sales momentum that our newest investment team, Managed Investment Solutions, will generate with its unique, customized approach, and launched Westwood Energy Secondaries Fund to access private investments in the energy field."
Outlook
WHG's strong Q3 2023 performance, coupled with the launch of new investment solutions, positions the company well for future growth. The company's solid financial position, with increased revenues and net income, provides a strong foundation for continued success.
Explore the complete 8-K earnings release (here) from Westwood Holdings Group Inc for further details.
