ADVISORS, INC. ANNOUNCES
ANNUAL EARNINGS OF $0.28 PER SHARE
Novato, CA – December 5, 2008 –
Hennessy Advisors, Inc. (OTCBB:HNNA) President and Chief
Executive Officer, Neil Hennessy, today announced fully diluted
earnings per share for Hennessy Advisors, Inc. of $0.28 for the
fiscal year ended September 30, 2008. Earnings decreased approximately
60% versus the prior fiscal year, which were $0.70 per share. The
decline in earnings is primarily attributable to decreased mutual
fund assets under management, with more than half of the change
in assets due to market depreciation. Assets under management were
$876 million at September 30, 2008, compared to $1.72 billion at
September 30, 2007.
has been a very difficult year for mutual fund companies and investment
managers across the board. In the past year, investors have pulled
their money out of funds at a record pace, and the average total
returns of all stock funds are down approximately 50%. These factors
have contributed to a loss of literally trillions of dollars in
assets under management for mutual fund companies,” said Mr.
Hennessy. “While our earnings are down versus last year, it
is important to note that we are reporting earnings. During the
past year we have increased our retained earnings by almost 8% and
reduced our debt by more than 24%, or $2.1 million. We maintain
a healthy balance sheet, with a cash position of $12.8 million,
which is nearly double our debt,” he added.
believe we have built a strong foundation that allows us to weather
the current economic downturn. We are using this time to aggressively
build and strengthen our sales and distribution efforts, positioning
our company for the market’s turnaround, and we continue to
seek out and pursue opportunities to acquire mutual fund assets.
With history as our guide, we know the long-term prospects of the
market remain fundamentally strong, and we are operating the company
for the long-term benefit of our shareholders,” said Mr. Hennessy.
Advisors, Inc. is a publicly traded investment advisor to a family
of mutual funds. Hennessy Advisors, Inc. is committed to their time-tested,
quantitative stock selection formulas and disciplined money management
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.