false 0001145255 0001145255 2024-02-08 2024-02-08 0001145255 hnna:CommonStockNoParValueCustomMember 2024-02-08 2024-02-08 0001145255 hnna:NotesDue20264875CustomMember 2024-02-08 2024-02-08
 
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 8, 2024
 
HENNESSY ADVISORS, INC.
 
(Exact name of registrant as specified in its charter)
 
California
001-36423
68-0176227
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 
7250 Redwood Blvd., Suite 200
             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
4.875% Notes due 2026
HNNAZ
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. ☐
 
 
1
 
 
Item 2.02.
Results of Operations and Financial Condition
 
On February 8, 2024, Hennessy Advisors, Inc. issued a press release announcing its financial results for the fiscal quarter ended December 31, 2023. 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 8, 2024, 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 4, 2024, to shareholders of record at the close of business on February 20, 2024. 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
 
EXHIBIT INDEX
 
Exhibit
Description
   
99.1
   
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
 
2
 
 
SIGNATURES
 
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 8, 2024
By:
/s/ Teresa M. Nilsen
Teresa M. Nilsen
President
 
 
 
3

Exhibit 99.1

 

logosmall.jpg

 

Media Contacts:

Teresa Nilsen

Hennessy Advisors, Inc. 

Terry@hennessyadvisors.com; 800-966-4354

Hibre Teklemariam

SunStar Strategic
 HTeklemariam@sunstarstrategic.com; 703-894-1057

                   

 

FOR IMMEDIATE RELEASE

 

Hennessy Advisors, Inc. Reports 7% Increase in Quarterly
Earnings Per Share and Announces Quarterly Dividend

 

February 8, 2024, Novato, CA - Hennessy Advisors, Inc. (Nasdaq:HNNA) reported results for its first fiscal quarter of 2024, which ended December 31, 2023. The firm also announced a quarterly dividend of $0.1375 per share to be paid on March 4, 2024, to shareholders of record as of February 20, 2024, which represents an annualized dividend yield of 8.3%.*

 

“The markets and our economy were strong in 2023 as inflation fell slightly, employment data was positive, and interest rates flattened,” said Neil Hennessy, Chairman and CEO. “I strongly believe that corporate profits and cash flow remain healthy, and that the U.S. consumer is still participating in our economic growth in a meaningful way.”

 

“2023 market performance did not disappoint, with the S&P 500® Index returning 26.29% and the Dow Jones Industrial Average returning 16.18% for the year ended December 31, 2023. The backdrop of a strong market helped every one of our 17 Hennessy Funds produce positive returns for calendar year 2023. However, it is the longer-term performance of our products that makes me most proud. All 16 of our funds over ten years old had positive returns for both the five- and ten-year periods ended December 31, 2023,” said Neil Hennessy. “I’m also pleased to share the following three mentions of our Funds’ performances in industry journals from the first two weeks of January 2024.”

 

 

•

On January 8, 2024, the Wall Street Journal announced its Category Kings in 18 Realms. The Hennessy Cornerstone Mid Cap 30 was ranked 5th in the Small-Cap Core category with 12-month performance through December 31, 2023, of 31.3%.

 

 

•

Lawrence C. Strauss. (January 4, 2024). Japan is Hot. Here are the Best Funds to Play It. Barron’s. The Hennessy Japan Fund is ranked 9th in the article.

 

 

•

Are these 3 Top-Ranked Mutual Funds in Your Retirement Portfolio? (January 1, 2024). Zacks Equity Research. The Hennessy Cornerstone Mid Cap 30 Fund is named in the article.

 

 

“Our investment products performed well during the quarter ended December 31, 2023, as evidenced by a 9% increase in total assets under management versus the prior comparable period,” said Teresa Nilsen, President, and COO. “We continue to increase our cash position net of debt, which is up over 15% in the last twelve months,” she added. “We remain focused on consistent distribution and marketing, and we are committed to our search for attractive acquisition opportunities as we head into calendar 2024 and beyond.”

 

 
 

 

Summary Highlights (compared to the prior comparable quarter ended December 31, 2022):

 

●

Total revenue of $6.1 million.
 

●

Net income of $1.2 million, an increase of 7%.
 

●

Fully diluted earnings per share of $0.16, an increase of 7%.
 

●

Average assets under management, upon which revenue is earned, of $3.0 billion.
 

●

Total assets under management of $3.3 billion, an increase of 9%.
 

●

Cash and cash equivalents, net of gross debt, of $19.4 million, an increase of 15%.

 

   

Three Months Ended December 31,

    

Change

  
   

2023

    

2022

    

Dollar

    

Percent

  

Total Revenue

   $ 6,143,843     $ 6,144,863     $ (1,020 )     0.0 %

Net Income

     1,200,095       1,119,100       80,995       7.2 %

Earnings Per Share (Diluted)

     0.16       0.15       0.01       6.7 %

Weighted Average Number of Shares Outstanding (Diluted)

     7,673,688       7,581,157       92,531       1.2 %

Average Fund Assets Under Management

     3,038,241,860       3,044,246,652       (6,004,792 )     -0.2 %
                                 
   

As of December 31,

                  
   

2023

    

2022

                  

Total Fund Assets Under Management

   $ 3,280,372,061     $ 3,009,457,663     $ 270,914,398       9.0 %

Cash and Cash Equivalents, Net of Gross Debt Balance

     19,355,225       16,800,396       2,554,829       15.2 %

 

*          Based on the closing stock price of $6.60 on February 7, 2024, 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 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 Information

Nothing 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.

 

Forward-Looking Statements

This press release contains “forward-looking statements” for which Hennessy Advisors, Inc. claims the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. Forward‑looking statements relate to expectations and projections about future events based on currently available information. Forward‑looking statements are not a guarantee of future performance or results and are not necessarily accurate indications of the times at which, or means by which, such performance or results may be achieved. Forward‑looking statements are subject to risks, uncertainties, and assumptions, including those described in the sections entitled “Risk Factors” and elsewhere in the reports that Hennessy Advisors, Inc. files with the Securities and Exchange Commission. Unforeseen developments could cause actual performance or results to differ substantially from those expressed in, or suggested by, the forward‑looking statements. Hennessy Advisors, Inc. management does not assume responsibility for the accuracy or completeness of the forward-looking statements and undertakes no responsibility to update any such statement after the date of this press release to conform to actual results or to changes in expectations.

 

 
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Document And Entity Information
Feb. 08, 2024
Document Information [Line Items]  
Entity, Registrant Name HENNESSY ADVISORS, INC.
Document, Type 8-K
Document, Period End Date Feb. 08, 2024
Entity, Incorporation, State or Country Code CA
Entity, File Number 001-36423
Entity, Tax Identification Number 68-0176227
Entity, Address, Address Line One 7250 Redwood Blvd., Suite 200
Entity, Address, City or Town Novato
Entity, Address, State or Province CA
Entity, Address, Postal Zip Code 94945
City Area Code 415
Local Phone Number 899-1555
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Pre-commencement Issuer Tender Offer false
Entity, Emerging Growth Company false
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Entity, Central Index Key 0001145255
CommonStockNoParValue Custom [Member]  
Document Information [Line Items]  
Title of 12(b) Security Common stock, no par value
Trading Symbol HNNA
Security Exchange Name NASDAQ
NotesDue20264875 Custom [Member]  
Document Information [Line Items]  
Title of 12(b) Security 4.875% Notes due 2026
Trading Symbol HNNAZ
Security Exchange Name NASDAQ
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