NOVATO,
Calif., May 10, 2023 /PRNewswire/
-- Hennessy Advisors, Inc. (Nasdaq: HNNA) reported
results for its second fiscal quarter of 2023, which ended
March 31, 2023. The firm also
announced a quarterly dividend of $0.1375 per share to be paid on June 5, 2023, to shareholders of record as of
May 23, 2023, which represents an
annualized dividend yield of 7.7%.*
"The recent headlines in the banking sector certainly
contributed to continued stock market volatility the first quarter
of 2023," said Neil Hennessy,
Chairman and CEO. "However, I believe that the U.S. economy and the
financial sector are healthy, as evidenced by the Fed's recent
moves. In this current market environment, I feel every investor
should be mindful that inflation will likely begin to subside, but
remain persistent in the short term, the Fed may continue to raise
rates in small increments, and corporate earnings should be
stronger than projected. I am resolute in my belief that market
fundamentals are strong enough to weather current challenges. Over
the longer term, I also believe unemployment rates will remain low
and GDP will recover to withstand any threats of a recession," he
added.
"Our earnings follow our assets under management, and we have
experienced recent declines," said Teresa
Nilsen, President and COO. "However, we continue to apply
persistent diligence while employing our business strategy of
growing organically and by strategic acquisitions:
- Several of our Hennessy Funds have received recent accolades
for their performance:
-
- The Hennessy Cornerstone Mid Cap 30 Fund and the Hennessy
Stance ESG ETF were named Category Kings in the Wall Street Journal
as of March 31, 2023.
- The Hennessy Energy Transition Fund and the Hennessy
Cornerstone Mid Cap 30 Fund received 2023 Refinitiv Lipper Fund
awards for best-in-category performance.
- On April 26, 2023, we signed a
definitive agreement to acquire approximately $70 million in assets under management:
-
- The agreement is for management of the CCM Core Impact Equity
Fund and the CCM Small/Mid-Cap Impact Value Fund (the "CCM Equity
Funds").
- Pending approval by shareholders of the CCM Equity Funds, upon
completion of the transaction, the CCM Equity Funds will be
reorganized into the Hennessy Stance ESG ETF.
Meanwhile, interest rates are on the rise and with thoughtful
management, our available cash net of debt continues to grow,
increasing over 13% in the last twelve months," she added.
Financial Highlights (compared to the prior comparable
quarter ended March 31, 2022):
- Total revenue of $5.9 million, a
decrease of 24%.
- Net income of $1.2 million, a
decrease of 26%.
- Fully diluted earnings per share of $0.15, a decrease of 29%.
- Average assets under management, upon which revenue is earned,
of $3.0 billion, a decrease of
22%.
- Total assets under management of $2.8
billion, a decrease of 25%.
- Cash and cash equivalents, net of gross debt, of $17.6 million, an increase of 13%.
|
|
Financial
Highlights
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Change
|
|
|
2023
|
|
2022
|
|
Dollar
|
|
Percent
|
Total
Revenue
|
|
$ 5,915,644
|
|
$ 7,744,624
|
|
$
(1,828,980)
|
|
-23.6 %
|
Net Income
|
|
1,194,430
|
|
1,602,541
|
|
(408,111)
|
|
-25.5 %
|
Earnings Per Share
(Diluted)
|
|
0.15
|
|
0.21
|
|
(0.06)
|
|
-28.6 %
|
Weighted Average Number
of Shares Outstanding (Diluted)
|
|
7,610,729
|
|
7,548,335
|
|
62,394
|
|
0.8 %
|
Average Assets Under
Management
|
|
2,985,902,812
|
|
3,829,346,037
|
|
(843,443,225)
|
|
-22.0 %
|
|
|
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
Total Assets Under
Management
|
|
$2,843,963,112
|
|
$3,804,027,802
|
|
$(960,064,690)
|
|
-25.2 %
|
Cash and Cash
Equivalents, Net of Gross Debt Balance
|
|
17,619,093
|
|
15,585,132
|
|
2,033,961
|
|
13.1 %
|
|
* Based on the closing
stock price of $7.12 on May 9, 2023, 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
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.
View original
content:https://www.prnewswire.com/news-releases/hennessy-advisors-inc-reports-earnings-and-announces-dividend-301821192.html
SOURCE Hennessy Advisors, Inc.