Exhibit 99.1 Earnings Release of August 7, 2008
HENNESSY ADVISORS, INC. ANNOUNCES THIRD QUARTER EARNINGS OF $0.06 PER SHARE
Novato, CA – August 7, 2008 – Hennessy Advisors, Inc. (OTCBB:HNNA) Chief Executive Officer, Neil Hennessy, today announced fully diluted earnings per share for Hennessy Advisors, Inc. of $0.06 for the third quarter, which ended June 30, 2008, versus $0.17 for the prior comparable period. Diluted earnings per share for the nine months ended June 30, 2008 were $0.25 per share, versus $0.53 for the prior comparable period. The decline in earnings is attributable to decreased mutual fund assets under management. Total mutual fund assets were $1.1 billion at June 30, 2008, compared to $1.9 billion at June 30, 2007.
“With the housing slump, credit crunch, price of oil and historically low levels of consumer confidence, the financial markets are as volatile and jittery as I have seen in my nearly 30-year career,” said Mr. Hennessy. “With history as our guide, we know the long-term prospects of the market remain fundamentally strong, and the company is positioning itself for the future by building our distribution and sales efforts. We have recently hired a new President of Hennessy Funds, who will focus on increasing distribution, and have recently announced a new sales partnership with Merrill Lynch,” he added. “Additionally, we continue to strengthen our balance sheet, as evidenced by a 6.5% increase in retained earnings and an 18.2% reduction in total debt since the prior fiscal year end.”
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Hennessy Advisors, Inc.
Financial Highlights
Period to Period
| | | | | | | | | | | | | |
| | | Three Months Ended | | | | | | |
Third Quarter | | June 30, 2008 | | June 30, 2007 | | $ Change | | | % Change | |
Total Revenue | | $ | 2,318,452 | | $ | 3,990,446 | | $ | (1,671,994 | ) | | -41.9 | % |
Net Income | | $ | 340,662 | | $ | 1,024,243 | | $ | (683,581 | ) | | -66.7 | % |
Earnings per share diluted | | $ | 0.06 | | $ | 0.17 | | $ | (0.11 | ) | | -64.7 | % |
Weighted Average number of shares outstanding | | | 5,801,472 | | | 5,959,184 | | | (157,712 | ) | | -2.6 | % |
| | | |
| | | Nine Months Ended | | | | | | |
Year-to-Date | | June 30, 2008 | | June 30, 2007 | | $ Change | | | % Change | |
Total Revenue | | $ | 8,114,303 | | $ | 12,345,827 | | $ | (4,231,524 | ) | | -34.3 | % |
Net Income | | $ | 1,456,279 | | $ | 3,153,783 | | $ | (1,697,504 | ) | | -53.8 | % |
Earnings per share (diluted) | | $ | 0.25 | | $ | 0.53 | | $ | (0.28 | ) | | -52.8 | % |
Weighted Average number of shares outstanding | | | 5,822,314 | | | 5,952,636 | | | (130,322 | ) | | -2.2 | % |
| | | | |
At Period Ending Date | | June 30, 2008 | | June 30, 2007 | | $ Change | | | % Change | |
Mutual Fund Assets Under Management | | $ | 1,094,790,511 | | $ | 1,913,869,612 | | $ | (819,079,101 | ) | | -42.8 | % |
| | | | |
At Period Ending Date | | June 30, 2008 | | Sep. 30, 2007 | | $ Change | | | % Change | |
Total Debt, including current portion | | $ | 7,031,323 | | $ | 8,599,210 | | $ | (1,567,887 | ) | | -18.2 | % |
Retained Earnings | | $ | 15,358,382 | | $ | 14,417,331 | | $ | 941,051 | | | 6.5 | % |
Hennessy Advisors, Inc., located in Novato, CA, is a publicly traded investment advisor to a family of mutual funds. Hennessy Advisors, Inc. is 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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