8-K
HENNESSY ADVISORS INC (HNNA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 11, 2020
HENNESSY ADVISORS, INC.
(Exact name of registrant as specified in its charter)
| California | 001-36423 | 68-0176227 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
| 7250 Redwood Blvd., Suite 200<br><br><br>Novato, California | 94945 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip code) |
Registrant’s telephone number including area code: (415) 899-1555
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a‑12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered |
|---|---|---|
| Common stock, no par value | HNNA | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
| Emerging growth company | ☐ |
|---|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition |
|---|
On February 11, 2020, Hennessy Advisors, Inc. issued a press release announcing its financial results for the fiscal quarter ended December 31, 2019. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8‑K and is incorporated by reference herein.
Item 7.01.Regulation FD Disclosure
On February 11, 2020, the Company issued a press release announcing that it had declared a cash dividend of $0.1375 per share on its common stock. The cash dividend is payable March 6, 2020, to shareholders of record at the close of business on February 24, 2020. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8‑K and is incorporated by reference herein.
Item 9.01.Financial Statements and Exhibits
The exhibit listed in the exhibit index below is furnished under Items 2.02 and 7.01 of this Current Report on Form 8-K.
EXHIBIT INDEX
| Exhibit | Description |
|---|---|
| 99.1 | Press release. |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HENNESSY ADVISORS, INC.
| February 11, 2020 | By: | /s/ Teresa M. Nilsen |
|---|---|---|
| Teresa M. Nilsen | ||
| President |
3
Hennessy Advisors, Inc. Reports First Quarter Earnings
Firm Also Announces Quarterly Dividend
NOVATO, Calif., Feb. 11, 2020 /PRNewswire/ -- Hennessy Advisors, Inc. (NASDAQ: HNNA) reported results for its first fiscal quarter of 2020, which ended December 31, 2019. The firm also announced a quarterly dividend of $0.1375 per share, which will be paid on March 6, 2020, to shareholders of record as of February 24, 2020, bringing the stock's annualized dividend yield to 5.3%*.
"The U.S. economy and stock market remain healthy, with fundamentals in place to support a continued bull market," said Neil Hennessy, Chairman and CEO. "To quote Sir John Templeton's famous saying, 'Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.' Over the past 30-plus years, negative annual market performance has largely been driven by euphoria in either real estate or dot coms. I have been saying for a number of years that I see no signs of euphoria in the market. There will likely be moments of volatility, but I remain confident in the strength of the market today and going forward," he added.
"Hennessy Advisors continues to weather the headwinds faced by actively managed mutual funds, including fee compression and investors moving to passively managed funds. Each of our 16 mutual funds posted positive performance in calendar year 2019," added Mr. Hennessy.
"While earnings are down in line with the decline in average assets under management, the underlying financials of our company remain very strong," said Teresa Nilsen, President and Chief Operating Officer. "We continue to repurchase shares at stock prices we believe are undervalued, reduce our debt, and pay a robust quarterly dividend to shareholders," she added.
Summary Highlights (compared to the prior comparable quarter ended December 31, 2018):
- Fully diluted earnings per share decreased 10% to $0.35.
- Total revenue decreased 12% to $10.2 million.
- Total assets under management increased 2% to $5.0 billion.
- Average assets under management, upon which revenue is earned, decreased 11% to $4.9 billion.
| Hennessy Advisors, Inc. | ||||||
|---|---|---|---|---|---|---|
| Financial Highlights | ||||||
| Period to Period | ||||||
| Three Months Ended | ||||||
| First Quarter | Dec. 31, 2019 | Dec. 31, 2018 | $ Change | % Change | ||
| Total Revenue | $ 10,243,634 | $ 11,644,176 | $ <br>(1,400,542) | -12.0% | ||
| Net Income | $ 2,628,047 | $ 3,066,825 | $ <br> (438,778) | -14.3% | ||
| Earnings Per Share (Diluted) | $ <br>0.35 | $ 0.39 | $ (0.04) | -10.3% | ||
| Weighted Average Number of Shares Outstanding (Diluted) | 7,537,716 | 7,916,870 | (379,154) | -4.8% | ||
| Mutual Fund Average Assets Under Management | $ 4,948,290,569 | $ 5,584,795,216 | $<br>(636,504,647) | -11.4% | ||
| At Period Ending Date | Dec. 31, 2019 | Dec. 31, 2018 | $ Change | % Change | ||
| Mutual Fund Total Assets Under Management | $ 4,978,502,181 | $ 4,887,546,767 | $ <br> 90,955,414 | 1.9% | ||
| Cash and Cash Equivalents | $ 22,455,402 | $ 23,445,886 | $ (990,484) | -4.2% | ||
| Gross Loan Balance | $ 16,406,250 | $ 20,781,250 | $ (4,375,000) | -21.1% | * Based on the closing stock price of $10.44 on February 10, 2020, and an annualized dividend of $0.55 per share. | |
| --- |
About Hennessy Advisors, Inc. Hennessy Advisors, Inc. is a publicly traded investment manager offering a broad range of domestic equity, multi-asset, and sector and specialty mutual funds. Hennessy Advisors, Inc. is committed to providing superior service to shareholders and employing a consistent and disciplined approach to investing based on a buy-and-hold philosophy that rejects the idea of market timing.
Supplemental InformationNothing in this press release 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.
CONTACT: Tania Kelley, Hennessy Advisors, Inc., tania@hennessyadvisors.com; 800-966-4354, Melissa Murphy, SunStar Strategic, MMurphy@sunstarstrategic.com; 703-894-1061