NOVATO,
Calif., May 11, 2022 /PRNewswire/ -- Hennessy
Advisors, Inc. (NASDAQ:HNNA) reported results for its second
fiscal quarter of 2022, which ended March
31, 2022. The firm also announced a quarterly dividend of
$0.1375 per share to be paid on
June 2, 2022, to shareholders of
record as of May 23, 2022, which
represents an annualized dividend yield of 5.8%.*
"After two years of unprecedented change in the world, we are
still confronted with many challenges: a lingering pandemic,
mounting inflation (including high energy prices), a war in
Ukraine, and market volatility.
Moreover, while all of these challenges have ramifications for
every person and every business (including ours), I believe the
social and economic effects on our world, especially for the people
in the Ukraine, are far more
significant. Despite all these hurdles, we still believe that the
U.S. economy is strong. The American consumer is in solid financial
shape with a robust job market, wage increases, more than
$2 trillion in savings, and very low
individual debt. I remain confident that our financial markets will
be buoyed by corporate earnings, continued buybacks, and dividend
increases as companies strategically use their cash. I am hopeful
that the Federal Reserve and the government will be thoughtful as
they deploy rate increases intended to stem inflation," said
Neil Hennessy, Chairman and CEO.
"Although the volatility we've seen in the first calendar quarter
of the year will likely continue in the short term, I am convinced
that strong market fundamentals can support reasonable returns in
2022 and beyond," he added.
"While our earnings are down this quarter primarily due to the
interest expense related to our bond debt, our cash net of
outstanding debt is up over 35% in the past 12 months, and that
continues to be the real story here at Hennessy," said Teresa Nilsen, President and COO. "We have
nearly $56 million in cash (and
growing) to deploy strategically and efficiently. We remain
diligent in our search for acquisitions. With excellent operating
cash flow coverage for our dividend, we can focus on deploying our
available cash in the best way possible to provide value to our
shareholders," she added.
Summary Highlights (compared to the prior comparable
quarter ended March 31, 2021):
- Total revenue of $7.7 million, a
decrease of 2%.
- Net income of $1.6 million, a
decrease of 15%.
- Fully diluted earnings per share of $0.21, a decrease of 19%.
- Average assets under management, upon which revenue is earned,
of $3.8 billion, a decrease of
2%.
- Total assets under management of $3.8
billion, a decrease of 5%.
- Cash and cash equivalents, net of gross debt, of $15.6 million, an increase of 36%.
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Financial
Highlights
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Three Months Ended
March 31,
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Change
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2022
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2021
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Amount
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Percent
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Total
Revenue
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$ 7,744,624
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$ 7,934,057
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$ (189,433)
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-2.4%
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Net Income
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$ 1,602,541
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$ 1,885,516
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$ (282,975)
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-15.0%
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Earnings Per Share
(Diluted)
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$
0.21
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$
0.26
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$
(0.05)
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-19.2%
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Weighted Average Number
of Shares Outstanding (Diluted)
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7,548,335
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7,382,854
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165,481
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2.2%
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Mutual Fund Average
Assets Under Management
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$3,829,346,037
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$3,918,388,292
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$
(89,042,255)
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-2.3%
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As of March
31,
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2022
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2021
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Mutual Fund Total
Assets Under Management
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$3,804,027,802
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$4,023,364,123
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$(219,336,321)
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-5.5%
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Cash and Cash
Equivalents, Net of Gross Debt Balance
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$ 15,585,132
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$ 11,476,204
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$ 4,108,928
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35.8%
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*
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Based on the closing
stock price of $9.45 on May 10, 2022, 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.