Westwood(WHG) 2023 Earnings Summary
Bullish Points:
1. Total revenues for the six months ended June 30, 2023 were $44.67 million, compared to $32.82 million for the same period in 2022.
2. Net income for the six months ended June 30, 2023 was $3.61 million, compared to a net loss of $328,000 for the same period in 2022.
3. Comprehensive income attributable to Westwood Holdings Group, Inc. for Q2 2023 was $2,895,000, compared to a loss of $378,000 in Q2 2022.
4. Basic and diluted earnings per share for Q2 2023 were $0.36, compared to a loss of $0.05 in Q2 2022.
5. Total revenues increased by 41% to $21.9 million for Q2 2023 compared to $15.6 million for Q2 2022, mainly due to higher average AUM following the 2022 acquisition of Salient.
6. Assets under management (AUM) increased by 24% to $14,989,000,000 at June 30, 2023 compared to June 30, 2022.
Bearish Points:
1. Cash and cash equivalents decreased from $23.86 million at the end of December 31, 2022, to $15.23 million at the end of June 30, 2023.
2. Employee compensation and benefits increased by $4.6 million to $13.7 million compared to $9.1 million for 2022, due to additional headcount from the Salient acquisition.
3. Information technology expenses increased by 39% to $2.6 million compared to $1.8 million for 2022, primarily due to additional software licenses and investment research expenses.
4. Professional services increased by 63% to $1.4 million compared to $0.8 million for 2022, primarily due to an increase in legal and advisory costs.
5. General and administrative expenses increased by 38% to $3.2 million compared to $2.3 million for 2022, primarily due to increased intangible asset amortization following the Salient acquisition.
In summary, Westwood Holdings Group, Inc. (WHG) has shown significant growth in revenues and net income for the six months ended June 30, 2023, compared to the same period in 2022. The acquisition of Salient has contributed to higher average AUM and increased revenues. However, the company has also experienced a decrease in cash and cash equivalents and increased expenses in various areas. For more information, you can read the original text of Westwood's financial report: https://www.sec.gov/Archives/edgar/data/1165002/000116500223000070/whg-20230630.htm
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