Hennessy Advisors, Inc. Announces Third Quarter Earnings Increase 380% Firm Also Announces Quarterly Dividend

NOVATO, Calif., Aug. 7, 2013 /PRNewswire/ -- Hennessy Advisors, Inc. (OTCBB:HNNA) today reported financial results for the third quarter of fiscal 2013, which show the company's continued momentum in growth of  earnings and assets under management.  Fully diluted earnings per share were $0.24 for the quarter ended June 30, 2013, an increase of 380% versus earnings of $0.05 per share for the quarter ended June 30, 2012.  Fully diluted earnings per share for the nine months ended June 30, 2013 were $0.56 per share, an increase of 367% from $0.12 for the nine months ended June 30, 2012.  The increase in earnings is attributable to increased mutual fund assets under management, primarily due to the purchase of mutual fund assets from FBR & Co. in October, 2012.  Net purchases in the firm's domestic equity, specialty, balanced and fixed income mutual funds and strong market appreciation also contributed to the increase in assets under management.  The increase in average assets under management, the asset levels upon which the firm's fees are earned, increased 341% over the three-month and 286% over the nine-month prior comparable periods, respectively, creating a corresponding rise in revenue, net income and earnings per share.  

"We are very pleased with our third quarter results, which were aided by increased investor interest in our products," said Neil Hennessy, President, Chairman and CEO of Hennessy Advisors, Inc. "With the successful integration of the mutual funds from our last acquisition, I believe we are well positioned to continue to serve and retain our shareholders by offering a broad line-up of solidly performing products and to attract new investors by maintaining an aggressive marketing and sales program,"  he added.

The Board of Directors of Hennessy Advisors, Inc. today also declared a quarterly dividend of $0.03125 per share to be paid on September 15, 2013 to shareholders of record as of August 22, 2013.  Based on the Hennessy Advisors, Inc. stock price at the close of business on August 7, 2013 of $8.25 per share, this dividend, when annualized, represents a 1.5% yield.

"The third quarter of our fiscal year was marked by good returns in the overall financial markets, which I feel validates my long-standing belief that we are in a long term, sustainable bull market and economic recovery," noted Mr. Hennessy.  "Hennessy Advisors will maintain its strong commitment to the business model of organic growth and strategic asset purchases. We apply a diligent work ethic to that business model in order to generate positive financial results, and that firm-wide focus keeps the shareholders' interest our top priority," he added.








Hennessy Advisors, Inc.








Financial Highlights








Period to Period











Three Months Ended 



Third Quarter


Jun. 30, 2013

Jun. 30, 2012

$ Change

% Change

Total Revenue


$         6,505,770

$         1,714,716

$          4,791,054

279.4%

Net Income 


$         1,369,792

$             303,183

$          1,066,609

351.8%

Earnings per share (diluted)

$                    0.24

$                    0.05

$                     0.19

380.0%

Weighted Average number of





shares outstanding (diluted)

5,720,926

5,706,122

14,804

0.3%

Mutual Fund Average Assets 





Under Management


$ 3,567,795,425

$     809,173,084

$  2,758,622,341

340.9%


















Nine Months Ended 



Year-to-date


Jun. 30, 2013

Jun. 30, 2012

$ Change

% Change

Total Revenue


$       17,155,991

$         5,160,979

$        11,995,012

232.4%

Net Income 


$         3,254,960

$             701,499

$          2,553,461

364.0%

Earnings per share (diluted)

$                    0.56

$                    0.12

$                     0.44

366.7%

Weighted Average number of





shares outstanding (diluted)

5,794,775

5,750,423

44,352

0.8%

Mutual Fund Average Assets 





Under Management


$ 3,081,806,623

$     798,489,961

$  2,283,316,662

286.0%















At Period Ending Date


Jun. 30, 2013

Jun. 30, 2012

$ Change

% Change

Mutual Fund Total Assets





Under Management


$ 3,593,673,417

$     821,406,362

$  2,772,267,055

337.5%

Retained Earnings


$       18,458,347

$       15,658,558

$          2,799,789

17.9%








About Hennessy Advisors, Inc.

Hennessy Advisors, Inc. is a publicly traded investment manager offering a broad range of domestic equity, specialty, balanced and fixed income mutual funds. Hennessy Advisors, Inc. is committed to its consistent and repeatable investment process, combining time-tested stock selection strategies with a highly disciplined, team-managed approach, and to superior service to shareholders.

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.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Neil J. Hennessy
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=100270

 

SOURCE Hennessy Advisors, Inc.



RELATED LINKS
http://www.hennessyadvisors.com

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