NOVATO, Calif., Dec. 1, 2020 /PRNewswire/ -- Hennessy
Advisors, Inc. (NASDAQ:HNNA) today reported results for the
fiscal year ended September 30,
2020.
"Hennessy Advisors continues to post positive earnings and generate
strong operating cash flows."
"In a year defined by a global pandemic, economic shutdowns, and
a highly charged presidential election, the stock market has
continued to show its resiliency and strength," said Neil Hennessy, Chairman and CEO. "The clarity of
the presidential race, news of highly effective COVID-19 vaccine
trials, and hope for the inevitable reopening of our economy seems
to have allowed investors to return their focus to the strong
underlying fundamentals and move the markets toward all-time
highs," he added.
"Although the uncertainty created by the continued health crisis
and the stalemate over fiscal relief may lead to additional bouts
of market volatility, I remain confident the markets have the
potential to thrive in the long term. As a company, we remain ever
focused on our long–term business model of pursuing acquisitions
and growing organically, despite the challenging environment," said
Mr. Hennessy.
"Hennessy Advisors continues to post positive earnings and
generate strong operating cash flows," said Teresa Nilsen, President and COO. "During the
year, we paid off our debt and made strategic cost cuts, and we
believe our foresight has paid off for our shareholders," she
added.
Summary Highlights for the Fiscal Year (compared to
fiscal year 2019):
- Total revenue of $33.4 million, a
decrease of 22%.
- Net income of $7.8 million, a
decrease of 29%.
- Fully diluted earnings per share of $1.06, a decrease of 25%.
- Average assets under management, upon which revenue is earned,
of $4.1 billion, a decrease of
21%.
- Total assets under management of $3.6
billion, a decrease of 27%.
- Cash and cash equivalents (net of gross loan balance) of
$10.0 million, an increase of
39%.
Note: The loan balance of $17.5 million was paid off with cash on hand
in March 2020.
Other activities affecting cash and cash equivalents during the
year included the following:
-
- $10.6 million in operating cash
flow.
- $4.0 million in total annual
dividend payments, which brought our annualized dividend yield to
5.9%.*
- $2.7 million for the
repurchase of 270,896 shares of common stock outstanding at an
average price of $10.02 per
share.
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Financial
Highlights
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Twelve Months
Ended Sept. 30,
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Change
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2020
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2019
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Dollar
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Percent
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Total
Revenue
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$
33,388,696
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$
42,714,880
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$
(9,326,184)
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-21.8%
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Net Income
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7,840,670
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11,030,804
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(3,190,134)
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-28.9%
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Earnings Per Share
(Diluted)
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1.06
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1.42
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(0.36)
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-25.4%
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Weighted Average
Number of
Shares Outstanding (Diluted)
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7,378,729
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7,771,561
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(392,832)
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-5.1%
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Mutual Fund Average
Assets
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Under
Management
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4,098,404,288
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5,184,742,475
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(1,086,338,187)
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-21.0%
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As of Sept.
30,
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2020
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2019
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Mutual Fund Total
Assets
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Under
Management
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$
3,564,597,465
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$
4,873,838,569
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$(1,309,241,104)
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-26.9%
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Cash and Cash
Equivalents,
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Net of Gross Loan
Balance
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9,954,791
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7,187,042
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2,767,749
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38.5%
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*
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Based on the closing
stock price of $9.36 on November 30, 2020, and an annualized
dividend of $0.55 per share.
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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.