Hennessy Advisors Inc. Earnings Releases
Hennessy Advisors, Inc. Reports Fiscal Year 2002 Results
2002-11-20 09:00 (New York)

NOVATO, Calif., Nov. 20 /PRNewswire-FirstCall/ -- Hennessy Advisors, Inc. (OTC Bulletin Board: HNNA) President and CEO Neil Hennessy announced earnings per share of $.23 for the fiscal year ended September 30, 2002, an increase of 9.5% from $.21 in the comparable 2001 period. This year's results include a $.07 per share increase from a gain on extinguishment of debt. As of June 30, 2002, the Company had no outstanding debt. Net income increased 55.3% to
$308,697 from $198,739 last year. These increases were attributable to an increase in mutual fund assets under management of 92.3% to $373.6 million. The strong performance of the mutual funds under management, combined with a public relations campaign directly attributed to the growth of Hennessy Advisors' assets.

Mr. Hennessy stated, "I was pleased that the Company was able to grow its asset base under the current financial market conditions. In an environment where most asset managers were losing assets from market impact or from poor performance, Hennessy Advisors was able to grow substantially. Our focus on disciplined investing and our straightforward management style has produced great results. Our mutual fund customers and the financial media are
beginning to see the benefits of the way we manage money."

Mr. Hennessy also gave credit to his team. "The Hennessy team of talented and dedicated professionals has done an excellent job of serving our customers and building our assets. I believe that we are in a strong position to continue to grow our market share and we are all committed to growing our earnings per share for our shareholders."

Hennessy Advisors, Inc., located in Novato, CA, is the advisor to four no- load mutual funds, satisfying a variety of investment horizons and risk tolerance levels. Each of the Hennessy Funds employs a unique and powerful money management approach combining superior, time-tested stock selection formulas with unwavering discipline and consistency. The Company serves clients with integrity, honesty and candor. The Hennessy Funds strategies and performance are fully disclosed.

Hennessy Advisors, Inc.
Financial Highlights

Year to Year Comparison
Fiscal Year October 1, 2001 to September 30, 2002
Fourth Quarter 9/30/02 9/30/01 Change %Change
Total Revenue $748,583 $455,560 $293,023 64.3%
Net Income $88,507 $16,292 $72,215 443.3%
Earnings per share
$0.05 $0.02 $0.03 150.0%
Weighted Average number of shares outstanding 1,626,142 960,680 665,462 69.3%
Fiscal Year 9/30/02 9/30/01 Change %Change
Total Revenue $2,270,287 $1,674,068 $596,219 35.6%
Net Income $308,697 $198,739 $109,958 55.3%
Earnings per share
$0.23 $0.21 $0.02 9.5%
Weighted Averagenumber of shares outstanding 1,319,618 930,680 388,938 41.8%
At Period Ending Date 30-Sep-2002 30-Sep-2001 Change % Change
Mutual Fund Assets Under Management $373,611,124 $194,300,907 $179,310,217 92.3%

Forward-Looking Statements
Statements in this press release regarding Hennessy Advisors, Inc.'s business, which are not historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks, uncertainties and other important factors that could cause the actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. These risks, uncertainties and other
important factors are described in more detail in the "Risk Factors" section of the Company's recent Form SB-2 Registration Statement filed November 21, 2001 with the U.S. Securities and Exchange Commission, including, without limitation, the "Risk Factors" section of the Management's Discussion and Analysis of Financial Condition and Results of Operations. The following

factors affect the actual results of the Company:

  • Continuing volatility in the equity markets have caused the levels of
    our assets under management to fluctuate significantly.
  • Continued weak market conditions may lower our assets under management
    and reduce our revenues and income.
  • We face strong competition from numerous and sometimes larger
  • Changes in the distribution channels on which we depend could reduce
    our revenues or hinder our growth.
  • For the next several years, insurance costs are likely to increase
    materially and we may not be able to obtain the same types or amounts
    of coverage.
  • The ongoing threat of terrorism may adversely affect the general
    economy, financial and capital markets and our business.

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.

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