Hennessy Advisors Inc. Earnings Releases

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.

“2008 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.

“We 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.

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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