NOVATO, Calif., Feb. 11, 2021 /PRNewswire/ -- Hennessy
Advisors, Inc. (NASDAQ:HNNA) reported results for its first
fiscal quarter of 2021, which ended December
31, 2020. The firm also announced a quarterly dividend of
$0.1375 per share, which will be paid
on March 9, 2021, to shareholders of record as of February 24, 2021, resulting in an annualized
dividend yield of 6.0%.*
"We entered our new fiscal year with optimism and determination,
even as we continued to experience economic uncertainty around the
globe and political volatility here in the United States. The equity markets echoed
that optimism and ended 2020 on a high note," said Neil Hennessy, Chairman and CEO. "The continued
rollout of vaccines gives us strong hope that our economy will
further reopen and recover in 2021 and continue to grow into the
future," he added. "I want to thank our employees and business
partners who quickly adapted to the challenges of the pandemic and
continue to safely assist the investors in our mutual funds and our
shareholders," said Mr. Hennessy.
"While our assets were down versus the prior period, we again
delivered positive earnings for our shareholders, and believe the
company remains in a solid financial position. We will once again
pay our quarterly dividend while continuing to build our cash,"
said Teresa Nilsen, President and
COO. "We have endeavored to improve every aspect of our operations,
from our digital engagement in marketing and sales to our process
and focus on corporate development, including acquisitions. We are
committed to managing the company successfully through the
pandemic, and we look forward to nimbly moving into the future to
continue to deliver value for our shareholders," she added.
Summary Highlights (compared to the prior comparable
period ended December 31, 2019):
- Total revenue of $7.8 million, a
decrease of 24%.
- Net income of $1.8 million, a
decrease of 33%.
- Fully diluted earnings per share of $0.24, a decrease of 31%.
- Average assets under management, upon which revenue is earned,
of $3.8 billion, a decrease of
24%.
- Total assets under management of $3.8
billion, a decrease of 23%.
- Cash and cash equivalents (net of gross loan balance) of
$10.0 million, an increase of
65%.
|
|
Three Months Ended
Dec. 31,
|
|
Change
|
|
|
2020
|
|
2019
|
|
Dollar
|
|
Percent
|
Total
Revenue
|
|
$
7,788,999
|
|
$
10,243,634
|
|
$
(2,454,635)
|
|
-24.0%
|
Net Income
|
|
1,773,312
|
|
2,628,047
|
|
(854,735)
|
|
-32.5%
|
Earnings Per Share
(Diluted)
|
|
0.24
|
|
0.35
|
|
(0.11)
|
|
-31.4%
|
Weighted Average
Number of Shares Outstanding (Diluted)
|
|
7,367,128
|
|
7,537,716
|
|
(170,588)
|
|
-2.3%
|
Mutual Fund Average
Assets Under Management
|
|
3,785,369,547
|
|
4,948,290,569
|
|
(1,162,921,022)
|
|
-23.5%
|
|
|
|
|
|
|
|
|
|
|
|
As of Dec.
31,
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|
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
Mutual Fund Total
Assets Under Management
|
|
$
3,832,551,456
|
|
$
4,978,502,181
|
|
$
(1,145,950,725)
|
|
-23.0%
|
Cash and Cash
Equivalents, Net of Gross Loan Balance
|
|
9,954,375
|
|
6,049,151
|
|
3,905,224
|
|
64.6%
|
|
|
|
|
|
|
|
|
|
* Based on the
closing stock price of $9.19 on February 10, 2021, 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.