NOVATO,
Calif., Dec. 7, 2022 /PRNewswire/ -- Hennessy
Advisors, Inc. (Nasdaq: HNNA) today reported results for the
fiscal year ended September 30,
2022.
"At the beginning of 2022, the financial markets were on the
rise and our economy seemed unflappable as pandemic-related issues
seemed to be subsiding. But as we all know, change is inevitable.
The conflict in the Ukraine,
widespread inflationary concerns, and interest rate increases
contributed to a year of stock market retraction and economic
volatility," said Neil Hennessy,
Chairman and CEO. "Even faced with these challenges and the often
alarmist financial headlines, I believe there are many fundamental
positives in our economy. The labor market shows no signs of
fatigue, household balance sheets are showing robust savings, and
corporations are benefitting from cost cutting and newly revived
consumer spending. I feel confident that as interest rates and
inflation stabilize, consumers and investors will recognize the
underlying strengths in our economy, which should lead to positive
momentum in the market," he added.
"While our earnings fell during the fiscal year due to lower
assets under management and the interest expense on our bond debt,
that is only part of the story here at Hennessy Advisors," said
Teresa Nilsen, President and COO.
"We are building our cash balance and we continue to cover our
long-standing dividend. Our distribution team is actively
supporting our product line-up and we are diligently pursuing
strategic partnerships, as evidenced by our transaction to acquire
the assets of the Stance Equity ESG Large Cap Core ETF (NYSE:
STNC), which we anticipate closing this month," she
added.
Summary Highlights for the Fiscal Year (compared to
fiscal year 2021):
- Total revenue of $29.7 million, a
decrease of 9%.
- Net income of $6.2 million, a
decrease of 22%.
- Fully diluted earnings per share of $0.82, a decrease of 23%.
- Average assets under management, upon which revenue is earned,
of $3.6 billion, a decrease of
9%.
- Total assets under management of $2.9
billion, a decrease of 29%.
- Cash and cash equivalents, net of gross debt, of $18.2 million, an increase of 15%.
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Financial
Highlights
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Twelve Months Ended
Sept. 30,
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Change
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2022
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2021
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Dollar
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Percent
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Total
Revenue
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$
29,666,869
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$
32,760,482
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$
(3,093,613)
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-9.4 %
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Net Income
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6,190,209
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7,902,060
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(1,711,851)
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-21.7 %
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Earnings Per Share
(Diluted)
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0.82
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1.07
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(0.25)
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-23.4 %
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Weighted Average Number
of Shares Outstanding (Diluted)
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7,558,008
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7,409,112
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148,896
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2.0 %
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Mutual Fund Average
Assets Under Management
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3,644,362,374
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3,989,300,458
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(344,938,084)
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-8.6 %
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As of Sept.
30,
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2022
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2021
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Mutual Fund Total
Assets Under Management
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$
2,895,716,700
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$
4,065,922,008
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$(1,170,205,308)
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-28.8 %
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Cash and Cash
Equivalents, Net of Gross Debt
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18,236,604
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15,835,907
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2,400,697
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15.2 %
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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 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.