ADVISORS, INC. ANNOUNCES
FIRST QUARTER RESULTS
Novato, CA – January 29, 2009–
Hennessy Advisors, Inc. (OTCBB:HNNA) President and Chief
Executive Officer, Neil Hennessy, today announced a fully diluted
loss per share for Hennessy Advisors, Inc. of $(0.01) for the first
quarter, which ended December 31, 2008. Earnings decreased approximately
108% versus earnings the prior comparable period, which were $0.12
per share. The decline in earnings is primarily attributable to
decreased mutual fund assets under management, with almost three-quarters
of the change in assets due to market depreciation. Assets under
management were $641 million at December 31, 2008, compared to $1.426
billion at December 31, 2007.
was an absolutely abysmal year for investors and money managers
alike. The major indices lost a third or more of their value, which
in turn triggered massive sell-offs by panicked investors looking
to protect their principal,” said Mr. Hennessy. “With
30 years experience in the investment advisory business, I have
seen market cycles like this before, and with history as my guide,
I believe that the market will regain its footing in the coming
year,” he added.
are, of course, disappointed to report a loss, albeit minimal. However,
Hennessy Advisors has built a strong foundation to weather the current
market downturn, and we maintain a healthy balance sheet,”
said Mr. Hennessy. “We have a cash balance of nearly $8 million,
and we are deploying those resources to build for the future. During
the first quarter, we paid down our debt by more than 61%, or $4.0
million, and now have only $2.5 million in debt. We have continued
to build and strengthen our sales and distribution efforts, positioning
the company for the market’s turnaround. Additionally, we
are in the midst of a $200 million asset acquisition, and we continue
to aggressively seek out and pursue opportunities to acquire additional
mutual fund assets,” added Mr. Hennessy.
Hennessy Advisors, Inc. is a publicly traded
investment advisor to a family of mutual funds committed to their
time-tested, quantitative stock selection formulas and disciplined
money management approach.
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.