NOVATO, Calif., Aug. 6, 2020 /PRNewswire/ -- Hennessy
Advisors, Inc. (NASDAQ:HNNA) reported results for its third
fiscal quarter of 2020, which ended June 30,
2020, and announced a quarterly dividend of $0.1375 per share, representing an annualized
dividend yield of 6.7%.* The dividend will be paid on
September 10, 2020, to shareholders of record as of
August 19, 2020.
"While uncertainty and volatility persist, I see strong
underlying fundamentals that should allow the economy to survive
the current challenges," said Neil
Hennessy, Chairman and CEO. "The U.S. equity markets
rebounded sharply during the most recent quarter, rallying from the
March lows. However, a significant portion of the returns was
driven by a handful of the largest technology companies, and many
sectors of the economy continue to struggle due to the ongoing
disruption to normal work, travel, and retail operations. Growth
stocks have significantly outperformed value stocks, but I believe
it is time to rotate into stocks with the potential for steady
earnings and dividend growth," he added.
"I am inspired each day by the ingenuity of companies to create
new business lines or respond to new demand arising from the
pandemic. I believe active asset managers are best positioned to
uncover these types of opportunities and that
active management will play an increasingly important role in
investors' portfolios going forward. We are well positioned to
capitalize on this trend, and I remain confident in our ability to
create shareholder value over the long term," said Mr.
Hennessy.
"Despite heightened market volatility, which has negatively
affected our financial results, we continue to diligently pursue
strategic acquisitions and organic growth. During the past several
months, our team has demonstrated its remarkable dedication to our
company and shareholders as we navigate this difficult
environment," said Teresa Nilsen,
President and Chief Operating Officer. "While total assets under
management was down 30% year over year, total assets increased
$0.2 billion, or 5%, versus last
quarter ended March 31, 2020, which I
believe illustrates some resiliency in our asset base," she
added.
Summary Highlights (compared to the prior comparable
quarter ended June 30, 2019):
- Fully diluted earnings per share decreased 29% to $0.24.
- Total revenue decreased 34% to $6.9
million.
- Total assets under management decreased 30% to $3.5 billion.
- Average assets under management, upon which revenue is earned,
decreased 32% to $3.4 billion.
Financial
Highlights
|
|
|
|
Three Months Ended
June 30,
|
|
Change
|
|
|
2020
|
|
2019
|
|
Dollar
|
|
Percent
|
Total
revenue
|
|
$
6,895,494
|
|
$
10,442,572
|
|
$
(3,547,078)
|
|
-34.0%
|
Net income
|
|
1,775,235
|
|
2,656,330
|
|
(881,095)
|
|
-33.2%
|
Earnings per share
(diluted)
|
|
0.24
|
|
0.34
|
|
(0.10)
|
|
-29.4%
|
Weighted average
shares outstanding (diluted)
|
|
7,279,294
|
|
7,725,079
|
|
(445,785)
|
|
-5.8%
|
Average assets under
management
|
|
3,448,808,949
|
|
5,090,021,826
|
|
(1,641,212,877)
|
|
-32.2%
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2020
|
|
June 30,
2019
|
|
|
|
|
Cash and cash
equivalents
|
|
$
8,708,094
|
|
$
23,747,686
|
|
$
(15,039,592)
|
|
-63.3%
|
Gross loan
balance
|
|
-
|
|
18,593,750
|
|
(18,593,750)
|
|
-100.0%
|
Total assets under
management
|
|
3,491,767,647
|
|
5,013,074,613
|
|
(1,521,306,966)
|
|
-30.3%
|
|
* Based on the
closing stock price of $8.15 on August 5, 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.
Forward-Looking Statements
This press release
contains "forward-looking statements" for which Hennessy Advisors,
Inc. claims the protection of the safe harbor contained in the
Private Securities Litigation Reform Act of
1995. Forward-looking statements relate to expectations and
projections about future events based on currently available
information. Forward–looking statements are not a guarantee of
future performance or results and are not necessarily accurate
indications of the times at which, or means by which, such
performance or results may be achieved. Forward-looking
statements are subject to risks, uncertainties, and assumptions,
including those described in the sections entitled "Risk Factors"
and elsewhere in the reports that Hennessy Advisors, Inc. files
with the Securities and Exchange Commission. Unforeseen
developments could cause actual performance or results to differ
substantially from those expressed in, or suggested by, the
forward–looking statements. Hennessy Advisors, Inc. management does
not assume responsibility for the accuracy or completeness of the
forward-looking statements and undertakes no responsibility to
update any such statement after the date of this press release to
conform to actual results or to changes in expectations.
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SOURCE Hennessy Advisors, Inc.