ADVISORS, INC. REPORTS THIRD QUARTER RESULTS
CA – August 10, 2004 – Hennessy Advisors, Inc. (OTCBB:HNNA)
Officer and President, Neil Hennessy, today reported diluted earnings
per share of $.46 for the third quarter ended June 30, 2004, up
from $.17 in the prior comparable period or +170.6%. Diluted earnings
per share for the nine months ended June 30, 2004, were $1.17, up
from $.42 in the prior comparable period or +178.6%. The results
for the quarter and nine months ended June 30, 2004 are primarily
attributable to increased mutual fund assets under management, derived
from acquisition of Lindner Fund management contracts, increased
market valuations and net new investments. As of June 30, 2004,
mutual fund assets under management were $1.28 billion as compared
to $663.2 million in the prior comparable period, an increase of
$621.5 million or +93.7%.
am pleased that our business strategies of growing our assets under
management through acquisition and through promoting our Hennessy
formula-driven mutual funds have produced very strong third quarter
and nine month earnings. Navigating through this economic environment
has been difficult, but we believe that economic conditions are
improving and that the financial markets will respond and improve,
as well. Our team of professionals will remain committed to growing
our business and to improving shareholder value.”
Advisors, Inc., located in Novato, CA, is the advisor to five no-load
mutual funds, satisfying a variety of investment objectives and
risk tolerance levels. Each of the Hennessy Funds employs a unique
and powerful money management approach combining 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, 2003, filed December 22, 2003, with the
U.S. Securities and Exchange Commission including, without limitation,
the “Risk Factors” section of Management’s Discussion
and Analysis and Results of Operations. The following factors may
affect the actual results of the Company:
volatility in the equity markets may cause the levels of our assets
under management to fluctuate significantly.
- Weak market conditions or loss of investor confidence in the mutual
fund industry 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
- For the next several years, professional service fees are likely
to increase due to increased securities industry legislation.
- Business growth through asset acquisitions may not proceed as
planned and result in significant expenses adversely affecting earnings.
- Retaining the mutual fund assets associated with acquired management
contracts may prove difficult and result in lower than expected
- International conflicts and the ongoing threat of terrorism may
adversely affect the general economy, financial and capital markets
and our business.
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.