Hennessy Advisors Announces Second Quarter Results
05 Maggio 2009 - 9:20PM
PR Newswire (US)
NOVATO, Calif., May 5 /PRNewswire-FirstCall/ -- Hennessy Advisors,
Inc. (OTC:HNNA) (BULLETIN BOARD: HNNA) President and Chief
Executive Officer, Neil Hennessy, today announced a fully diluted
loss per share for Hennessy Advisors, Inc. of $(0.02) for the
second quarter, which ended March 31, 2009, versus earnings of
$0.07 per share for the prior comparable period. "Certainly we are
not pleased to report a loss for the quarter, but we firmly believe
that it is much more important to allocate resources to build the
company for the future than it is to avoid a very small loss per
share in the short term," said Mr. Hennessy. "During the recent
financial crisis we did not hide, but instead continued to
regularly meet with clients, prospects and the media in order to
further strengthen our marketing, sales and distribution foundation
for the future growth of the company," he added. The decline in
earnings is primarily attributable to decreased mutual fund assets
under management in the year over year period, which was caused in
large part by market depreciation. During Q2 alone, assets under
management were $641 million at the beginning of the quarter on
December 31, 2008, dipped to a low of $475 million in March as the
market hit its lows, but rebounded to finish the quarter at $699
million on March 31, 2009. From the low on March 9th to the end of
the quarter on March 31st, assets under management grew
approximately 14% mainly due to market appreciation, and on March
23rd, Hennessy closed the acquisition of the Tamarack Funds. Given
the late timing of this surge in assets under management, it had
relatively little effect on earnings for the second quarter. "I
foresee steady and sustainable economic growth in the coming months
that will come from fundamental financial improvement in well-run
companies. It is my opinion that investors learned an important
lesson about leverage and will resume investing in high quality
stocks and mutual funds as confidence in the markets is restored,"
said Mr. Hennessy. "I believe that the recovery actually started in
November with the first injection of government TARP spending and
that the lows the market hit in March are behind us. As in any type
of recovery, it will take time for the fix to work its way through
the system. We have successfully managed the company through a
number of difficult market cycles over the years, and we will
continue to execute our long-term business plan to build assets
under management organically, to strengthen our sales network, to
aggressively pursue acquisitions and to continue to pay down our
debt," added Mr. Hennessy. Hennessy Advisors, Inc. Financial
Highlights Period to Period Three Months Ended Second Quarter March
31, March 31, $ Change % Change 2009 2008 Total Revenue $1,194,526
$2,454,848 $(1,260,322) -51.3% Net Income (Loss) $(133,514)
$419,994 $(553,508) -131.8% Earnings (Loss) per share diluted
$(0.02) $0.07 $(0.09) -128.6% Weighted Average number of shares
outstanding 5,676,677 5,701,678 (25,001) -0.4% At Period Ending
Date March 31, March 31, $ Change % Change 2009 2008 Mutual Fund
Assets Under Management $699,175,969 $1,098,694,513 $(399,518,544)
-36.4% Hennessy Advisors, Inc. is a publicly traded investment
advisor to a family of mutual funds committed to their time-tested,
quantitative stock selection formulas and disciplined money
management approach. Supplemental Information Nothing in this
section 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. Available Topic Expert(s):
For information on the listed expert(s), click appropriate link.
Neil J. Hennessy
http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=36873
DATASOURCE: Hennessy Advisors, Inc. CONTACT: Tania Kelley of
Hennessy Advisors, Inc., 7250 Redwood Blvd., Suite 200, Novato, CA
94945, 1-800-966-4354, or +1-415-899-1555 Web Site:
http://www.hennessyadvisors.com/
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