NOVATO, Calif., Feb. 11, 2020 /PRNewswire/ -- Hennessy
Advisors, Inc. (NASDAQ: HNNA) reported results for its first
fiscal quarter of 2020, which ended December
31, 2019. The firm also announced a quarterly dividend of
$0.1375 per share, which will be paid
on March 6, 2020, to shareholders of record as of
February 24, 2020, bringing the
stock's annualized dividend yield to 5.3%*.
"The U.S. economy and stock market remain healthy, with
fundamentals in place to support a continued bull market," said
Neil Hennessy, Chairman and
CEO. "To quote Sir John
Templeton's famous saying, 'Bull markets are born on
pessimism, grow on skepticism, mature on optimism, and die on
euphoria.' Over the past 30-plus years, negative annual market
performance has largely been driven by euphoria in either real
estate or dot coms. I have been saying for a number of years that I
see no signs of euphoria in the market. There will likely be
moments of volatility, but I remain confident in the strength of
the market today and going forward," he added.
"Hennessy Advisors continues to weather the headwinds faced by
actively managed mutual funds, including fee compression and
investors moving to passively managed funds. Each of our 16
mutual funds posted positive performance in calendar year 2019,"
added Mr. Hennessy.
"While earnings are down in line with the decline in average
assets under management, the underlying financials of our company
remain very strong," said Teresa
Nilsen, President and Chief Operating Officer. "We
continue to repurchase shares at stock prices we believe are
undervalued, reduce our debt, and pay a robust quarterly dividend
to shareholders," she added.
Summary Highlights (compared to the prior comparable
quarter ended December 31, 2018):
- Fully diluted earnings per share decreased 10% to $0.35.
- Total revenue decreased 12% to $10.2
million.
- Total assets under management increased 2% to $5.0 billion.
- Average assets under management, upon which revenue is earned,
decreased 11% to $4.9 billion.
|
Hennessy Advisors,
Inc.
|
|
Financial
Highlights
|
|
Period to
Period
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
First
Quarter
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Dec. 31,
2019
|
Dec. 31,
2018
|
$
Change
|
%
Change
|
|
Total
Revenue
|
$
10,243,634
|
$
11,644,176
|
$
(1,400,542)
|
-12.0%
|
|
Net Income
|
$
2,628,047
|
$
3,066,825
|
$
(438,778)
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-14.3%
|
|
Earnings Per Share
(Diluted)
|
$
0.35
|
$
0.39
|
$
(0.04)
|
-10.3%
|
|
Weighted Average
Number of Shares Outstanding (Diluted)
|
7,537,716
|
7,916,870
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(379,154)
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-4.8%
|
|
Mutual Fund Average
Assets Under Management
|
$
4,948,290,569
|
$
5,584,795,216
|
$
(636,504,647)
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-11.4%
|
|
|
|
|
|
|
|
At Period Ending
Date
|
Dec. 31,
2019
|
Dec. 31,
2018
|
$
Change
|
%
Change
|
|
Mutual Fund Total
Assets Under Management
|
$
4,978,502,181
|
$
4,887,546,767
|
$
90,955,414
|
1.9%
|
|
Cash and Cash
Equivalents
|
$
22,455,402
|
$
23,445,886
|
$
(990,484)
|
-4.2%
|
|
Gross Loan
Balance
|
$
16,406,250
|
$
20,781,250
|
$
(4,375,000)
|
-21.1%
|
|
* Based on the
closing stock price of $10.44 on February 10, 2020, and an
annualized dividend of $0.55 per share.
|
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 providing superior
service to shareholders and employing a consistent and disciplined
approach to investing based on a buy‑and‑hold philosophy that
rejects the idea of market timing.
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.
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SOURCE Hennessy Advisors, Inc.