Hennessy Advisors Inc. Earnings Releases

Hennessy Advisors, Inc. Reports First Quarter Results
2003-02-05 15:00 (New York)

NOVATO, Calif., Feb. 5 /PRNewswire-FirstCall/ -- Hennessy Advisors, Inc.
(OTC Bulletin Board: HNNA) President and CEO Neil Hennessy announced earnings per share of $.14 for the quarter ended December 31, 2002 up from -- $.02 in the comparable 2001 period. These increases were attributable to an increase in mutual fund assets under management as well as the adoption of SFAS 142 which eliminated amortization of management contracts. At December 31, 2001, total mutual fund assets were $210.3 million and as of December 31, 2002 the assets increased to $493.7 million, an increase of 134.8%. "It is no secret that this was a very difficult year for the financial markets and for our economy. We are pleased with the vitality and range of our asset growth. The Hennessy Funds are held nationwide by tens of thousands of shareholders and our focus is to continually expand our distribution networks to reach additional investors. We anticipate that our investors will be pleased with our mutual fund asset growth and our earnings. We are committed to growing our assets under management for the benefit of 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
Quarter Ended December 31, 2002 and 2001
Three Months Ended
  12/31/02 12/31/01 Change % Change
First Quarter
Total Revenue
$955,155 $403,666 $551,489 136.6%
Net Income $229,965 $(19,777) $249,742 n/a
Earnings per
share (diluted)
$0.14 $(0.02) $0.16 n/a
Weighted Average
number of shares
1,626,142 960,680 665,462 69.3%
At Period
Ending Date
31-Dec-2002 31-Dec-2001 Change % Change
Mutual Fund
Assets Under
$493,677,735 $210,294,145 $283,383,590 134.8%

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 annual report on Form 10-KSB for the fiscal year ended September 30, 2002 filed December 27, 2002 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
  • 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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