Westwood Holdings Group Inc (WHG) has reported a 16.06 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $5.89 million, or $0.72 a share in the quarter, compared with $7.01 million, or $0.87 a share for the same period last year.
Revenue during the quarter went down marginally by 2.08 percent to $31.78 million from $32.45 million in the previous year period. Total expenses were 71.51 percent of quarterly revenues, up from 67.64 percent for the same period last year. That has resulted in a contraction of 387 basis points in operating margin to 28.49 percent.
Operating income for the quarter was $9.05 million, compared with $10.50 million in the previous year period.
Brian Casey, Westwood’s president and chief executive officer, commented, "We believe that many of the decisions we have made in recent years allow us to look forward to the future with confidence. We have increased our dividend for the 14th consecutive year, remain debt free and continue to generate strong cash flows. We are committed to further expand and diversify our global client base and were pleased to be appointed as a sub-advisor to the Aviva Global Convertibles Fund, which extends our long-term strategic partnership with Aviva Investors in the global convertibles asset class space. Approximately $800 million in assets under advisement will transition to assets under management upon approval by the Luxembourg fund regulator."
Operating cash flow declines
Westwood Holdings Group Inc has generated cash of $39 million from operating activities during the nine month period, down 24.42 percent or $12.60 million, when compared with the last year period.
The company has spent $1.68 million cash to meet investing activities during the nine month period as against cash outgo of $24.84 million in the last year period.
The company has spent $30.18 million cash to carry out financing activities during the nine month period as against cash outgo of $18.58 million in the last year period.
Cash and cash equivalents stood at $30.69 million as on Sep. 30, 2016, up 28.51 percent or $6.81 million from $23.88 million on Sep. 30, 2015.
Working capital increases
Westwood Holdings Group Inc has recorded an increase in the working capital over the last year. It stood at $80.22 million as at Sep. 30, 2016, up 5.93 percent or $4.49 million from $75.73 million on Sep. 30, 2015. Current ratio was at 4.15 as on Sep. 30, 2016, up from 3.26 on Sep. 30, 2015.
Days sales outstanding went up to 65 days for the quarter compared with 59 days for the same period last year.
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