NOVATO, Calif., May 12, 2021 /PRNewswire/ -- Hennessy
Advisors, Inc. (NASDAQ:HNNA) reported results for its second
fiscal quarter of 2021, which ended March
31, 2021. The firm also announced a quarterly dividend of
$0.1375 per share to be paid on
June 4, 2021, to shareholders of
record as of May 25, 2021, which
represents an annualized dividend yield of 6.0%.*
"Over the past quarter, U.S. GDP grew 6.4%, driven primarily by
increased consumer spending. While this is welcome news for the
economy and the asset management industry, I was also overjoyed on
a personal level to see the hope and optimism that built as
vaccinations rose and communities began to reopen during the
quarter," said Neil Hennessy,
Chairman and CEO. "The average Americans' balance sheet is in good
shape with leverage lower than it has been in many years. Even
prior to the recent stimulus package, U.S. consumers had amassed
personal savings of close to $2
trillion. Corporations also have excess cash on their
balance sheets, estimated at over $7
trillion combined for S&P 500® Index
companies. I am confident that with the continued push and
enthusiasm toward reopening, stable interest rates, and modest
inflation, the stock market and U.S. economy will thrive," said Mr.
Hennessy.
"While our average assets for the period are still rebounding
from last year's sharp market decline, our year–over–year total
ending assets under management have increased. Our cash growth
continues to be strong, and we will once again pay our quarterly
dividend while strengthening our balance sheet," said Teresa Nilsen, President and COO. "Even in the
toughest of times, we continue to make great progress and invest in
our people, technology, and mutual fund products. I believe these
investments make us nimble, versatile, and well–positioned for the
future as we continue to search for strategic acquisitions and
potential opportunities to bring value to our shareholders," she
added.
Summary Highlights (compared to the prior comparable
period ended March 31, 2020):
- Total revenue of $7.9 million, a
decrease of 11%.
- Net income of $1.9 million, a
decrease of 4%.
- Fully diluted earnings per share of $0.26, a decrease of 4%.
- Average assets under management, upon which revenue is earned,
of $3.9 billion, a decrease of
11%.
- Total assets under management of $4.0
billion, an increase of 21%.
- Cash and cash equivalents of $11.5
million, an increase of 64%.
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|
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Three Months Ended
Mar. 31,
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|
Change
|
|
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2021
|
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2020
|
|
Dollar
|
|
Percent
|
Total
Revenue
|
|
$
7,934,057
|
|
$
8,879,000
|
|
$
(944,943)
|
|
-10.6%
|
Net Income
|
|
1,885,516
|
|
1,970,207
|
|
(84,691)
|
|
-4.3%
|
Earnings Per Share
(Diluted)
|
|
0.26
|
|
0.27
|
|
(0.01)
|
|
-3.7%
|
Weighted Average
Number of Shares Outstanding (Diluted)
|
|
7,382,854
|
|
7,393,167
|
|
(10,313)
|
|
-0.1%
|
Mutual Fund Average
Assets Under Management
|
|
3,918,388,292
|
|
4,377,503,224
|
|
(459,114,932)
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-10.5%
|
|
|
|
|
|
|
|
|
|
|
|
As of Mar.
31,
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
Mutual Fund Total
Assets Under Management
|
|
$
4,023,364,123
|
|
$
3,319,932,075
|
|
$
703,432,048
|
|
21.2%
|
Cash and Cash
Equivalents
|
|
11,476,204
|
|
6,996,827
|
|
4,479,377
|
|
64.0%
|
* Based on the
closing stock price of $9.24 on May 11, 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.