ADVISORS, INC. REPORTS SECOND QUARTER RESULTS
Novato, CA – April 21, 2003 – Hennessy
Advisors, Inc. (OTCBB:HNNA) President and CEO Neil Hennessy announced
earnings per share of $.29 for the six-months ended March 31, 2003,
up from $.07 in the comparable 2002 period. The increase was primarily
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 March 31, 2002, total mutual fund assets
were $261 million, and as of March 31, 2003, the assets increased
to $498 million, an increase of 91%.
“With the onset of the war in Iraq and fundamental
economic indicators reflecting negatively on the financial markets,
I feel fortunate that the mutual funds we manage still performed
relatively well during the quarter. Many mutual fund management
companies experienced heavy redemptions during the period, but at
Hennessy Advisors, Inc. we were able to maintain our asset levels.
We are hopeful for a swift resolution to the conflict in Iraq and
for a worldwide economic rebound in the near future. We anticipate
that our investors will be pleased with our earnings and we will
continue in our commitment to growing our assets under management
for the benefit of our shareholders.”
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.
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 and Results
of Operations. The following factors affect the actual results of
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.
For the next several years, professional service fees are likely
to increase due to increased securities industry legislation.
The current conflict in Iraq and the ongoing threat of terrorism
may adversely affect the general economy, financial and capital
markets and our business.
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.