NOVATO,
Calif., May 8, 2024 /PRNewswire/
-- Hennessy Advisors, Inc. (Nasdaq:
HNNA) reported results for its second fiscal quarter of 2024,
which ended March 31, 2024. The firm
also announced a quarterly dividend of $0.1375 per share to be paid on June 5, 2024, to shareholders of record as of
May 22, 2024, which represents an
annualized dividend yield of 8.3%.*
"The markets started 2024 quite strong and I believe – and
investors appear to agree – that many economic fundamentals
continue to be favorable," said Neil
Hennessy, Chairman and CEO. "We are confident that
employment numbers and corporate profit growth will anchor the
markets through the uncertainties of an unsettling global landscape
and inflationary pressures, which may continue."
"Building on the solid performance in 2023, the S&P
500® Index returned 10.56% and the Dow Jones Industrial
Average returned 6.14% for the quarter ended March 31, 2024. All 17 Hennessy Funds continue to
produce solid results posting positive returns for the twelve
months ended March 31, 2024. We
believe our longer-term results are equally impressive. All 16 of
the Hennessy Funds with more than ten years of historical
performance had positive returns for both the five- and ten-year
periods ended March 31, 2024," said Neil Hennessy.
"It has been rewarding to see our business model produce sound
results over the last six months. Our investment product
performance has led to solid net inflows, and we were able to add
over $70 million to our assets under
management with the successful completion of the transaction with
Community Capital Management, LLC," said Teresa Nilsen, President and COO. "With our
total assets under management up nearly 36% versus the prior
comparable period, we are seeing both increased profitability and
continued cash build strengthening our financial position for the
future," she added.
Summary Highlights (compared to the prior comparable
quarter ended March 31, 2023):
- Total revenue of $6.9 million, an
increase of 17%.
- Net income of $1.5 million, an
increase of 29%.
- Fully diluted earnings per share of $0.20, an increase of 25%.
- Average assets under management, upon which revenue is earned,
of $3.5 billion, an increase of
16%.
- Total assets under management of $3.9
billion, an increase of 36%.
- Cash and cash equivalents, net of gross debt, of $19.3 million, an increase of 10%.
|
|
Three Months Ended
March 31,
|
|
Change
|
|
|
2024
|
|
2023
|
|
Dollar
|
|
Percent
|
Total
Revenue
|
|
$
6,939,977
|
|
$
5,915,644
|
|
$
1,024,333
|
|
17.3 %
|
Net Income
|
|
1,539,823
|
|
1,194,430
|
|
345,393
|
|
28.9 %
|
Earnings Per Share
(Diluted)
|
|
0.20
|
|
0.16
|
|
0.04
|
|
25.0 %
|
Weighted Average Number
of Shares Outstanding (Diluted)
|
|
7,700,203
|
|
7,610,729
|
|
89,474
|
|
1.2 %
|
Average Fund Assets
Under Management
|
|
3,459,895,504
|
|
2,985,902,812
|
|
473,992,692
|
|
15.9 %
|
|
|
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
Total Fund Assets Under
Management
|
|
$
3,852,601,729
|
|
$
2,843,963,112
|
|
$
1,008,638,617
|
|
35.5 %
|
Cash and Cash
Equivalents, Net of Gross Debt Balance
|
|
19,343,177
|
|
17,619,093
|
|
1,724,084
|
|
9.8 %
|
* Based on the closing stock price of
$6.65 on May
7, 2024, 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.
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SOURCE Hennessy Advisors, Inc.