NOVATO, Calif., May 7, 2019 /PRNewswire/ -- Hennessy
Advisors, Inc. (NASDAQ:HNNA) reported results for
its second fiscal quarter of 2019, which ended March 31, 2019, and also announced a quarterly
dividend.
Summary Highlights (compared to the prior comparable
quarter ended March 31, 2018):
- Fully diluted earnings per share decreased 36% to $0.37.
- Total revenue decreased 25% to $10.5
million.
- Total assets under management decreased 22% to $5.1 billion.
- Average assets under management, upon which revenue is earned,
decreased 26% to $5.1 billion.
- Cash and cash equivalents increased over 50% to $25 million, with a total loan balance
outstanding of $19.7 million at
quarter end.
The Board of Directors also declared a quarterly dividend of
$0.11 per share, which will be paid
on June 11, 2019, to shareholders of record as of
May 20, 2019.
"Our first fiscal quarter ending December
31, 2018, was mired in stock market losses, volatility and
investor uncertainty, causing a corresponding drop in our assets
under management. Due to that first quarter decline, we began
our second quarter with assets at $4.9
billion, which led to decreased revenue and lower earnings
for the current quarter. However, we began to build total assets
again during the second quarter with both solid returns and renewed
interest in our mutual fund offerings. Even though the decline in
assets led to a drop in our financial results, we continued to
build cash and pay down our debt, strengthening the overall
financials of the company," said Teresa
Nilsen, President and Chief Operating Officer.
"Our outlook for long-term organic growth and strategic
acquisition opportunities remains positive, and we are committed to
pursuing both for the benefit of our shareholders," added
Neil Hennessy, Chairman and CEO.
Hennessy Advisors,
Inc.
|
Financial
Highlights
|
Period to
Period
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Second
Quarter
|
Mar. 31,
2019
|
Mar. 31,
2018
|
$
Change
|
%
Change
|
Total
Revenue
|
$
10,455,504
|
$
14,006,152
|
$
(3,550,648)
|
-25.4%
|
Net
Income
|
$
2,900,445
|
$
4,555,525
|
$
(1,655,080)
|
-36.3%
|
Earnings Per Share
(Diluted)
|
$
0.37
|
$
0.58
|
$
(0.21)
|
-36.2%
|
Weighted Average
Number of
|
|
|
|
|
Shares Outstanding
(Diluted)
|
7,922,408
|
7,886,380
|
36,028
|
0.5%
|
Mutual Fund Average
Assets
|
|
|
|
|
Under
Management
|
$
5,140,314,899
|
$
6,904,516,776
|
$
(1,764,201,877)
|
-25.6%
|
|
|
|
|
|
At Period Ending
Date
|
Mar. 31,
2019
|
Mar. 31,
2018
|
$
Change
|
%
Change
|
Mutual Fund Total
Assets
|
|
|
|
|
Under
Management
|
$
5,135,936,999
|
$
6,577,379,155
|
$
(1,441,442,156)
|
-21.9%
|
Cash and Cash
Equivalents
|
$
25,071,779
|
$
16,646,435
|
$
8,425,344
|
50.6%
|
About Hennessy Advisors, Inc.
Hennessy Advisors, Inc.
is a publicly traded investment manager offering a broad range of
domestic equity, multi-asset, and sector and specialty mutual
funds. Hennessy Advisors, Inc. is committed to its consistent and
repeatable investment process, combining time-tested stock
selection strategies with a highly disciplined, team‑managed
approach, and to superior service to shareholders.
Supplemental Information
Nothing in this press release
shall be considered a solicitation to buy or an offer to sell a
security to any person in any jurisdiction where such offer,
solicitation, purchase, or sale would be unlawful under the
securities laws of such jurisdiction.
Available Topic Expert: For information on the listed expert,
click appropriate link.
Neil Hennessy
ProfNet - http://www.profnetconnect.com/neil_hennessy
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SOURCE Hennessy Advisors, Inc.