The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Hennessy's Full-Year Earnings Fall By More than Half Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, December 08, 2008

Hennessy's Full-Year Earnings Fall By More than Half

News summary by MFWire's editors

The decline in AUM pulled down Hennessy Advisors' income 61 percent, to $1.61 million in its fiscal 2008 ended September 30. More than half of the change in assets was due to market depreciation, company officials said. AUM at end-September were $876 million, don w from $1.72 billion a year ago.

"While our earnings are down versus last year, it is important to note that we are reporting earnings," said president and CEO Neil Hennessy.

Hennessy also said his firm is working to bolster its sales and distribution efforts, and continues to be on the hunt for opportunities to acquire mutual fund assets.

Company Press Release

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.

“It 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.

“We 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.

Edited by: Armie Margaret Lee

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use