Hennessy Advisors, Inc. announces a fully diluted loss per share for Hennessy Advisors, Inc. of $(0.01) for the first quarter, which ended 31 December 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 31 December 2008, compared to $1.426 billion at 31 December 2007.
“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,” says Neil Hennessy, president and chief executive officer.
“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,” continues 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.”
L.D.