Hennessy Advisors (HNNA) 10-Q 3 Aug 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 20, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	HNNA
Entity Registrant Name	HENNESSY ADVISORS INC
Entity Central Index Key	1,145,255
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,025,377

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$ 13,865	$ 7,645
Investments in marketable securities, at fair value	7	7
Investment fee income receivable	3,962	3,142
Prepaid expenses	1,200	601
Deferred income tax asset	314	342
Other accounts receivable	316	444
Total current assets	19,664	12,181
Property and equipment, net of accumulated depreciation of $687 and $554, respectively	222	240
Management contracts	62,526	62,489
Deferred offering costs	12
Other assets, net of accumulated amortization of $307 and $242, respectively	340	405
Total assets	82,764	75,315
Current liabilities:
Accrued liabilities and accounts payable	4,372	3,538
Income taxes payable	958
Deferred rent	111	142
Current portion of long-term debt	3,750	3,750
Total current liabilities	9,191	7,430
Long-term debt, net of current portion	20,159	22,972
Deferred income tax liability	8,532	7,499
Total liabilities	$ 37,882	$ 37,901
Commitments and Contingencies (Note 8)
Stockholders' equity:
Adjustable rate preferred stock, $25 stated value, 5,000,000 shares authorized: zero shares issued and outstanding
Common stock, no par value, 15,000,000 shares authorized: 6,025,373 shares issued and outstanding at June 30, 2015 and 6,019,276 at September 30, 2014	$ 11,399	$ 10,852
Retained Earnings	33,483	26,562
Total stockholders' equity	44,882	37,414
Total liabilities and stockholders' equity	$ 82,764	$ 75,315

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 687	$ 554
Other assets, accumulated amortization	$ 307	$ 242
Adjustable rate preferred stock, stated value	$ 25	$ 25
Adjustable rate preferred stock, shares authorized	5,000,000	5,000,000
Adjustable rate preferred stock, shares issued	0	0
Adjustable rate preferred stock, shares outstanding	0	0
Common stock, no par value
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	6,025,373	6,019,276
Common stock, shares outstanding	6,025,373	6,019,276

Statements of Income (Unaudited

Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue
Investment advisory fees	$ 10,622	$ 8,550	$ 30,021	$ 24,326
Shareholder service fees	1,346	234	2,239	689
Total revenue	11,968	8,784	32,260	25,015
Operating expenses
Compensation and benefits	2,628	1,814	7,007	5,460
General and administrative	1,191	1,085	3,839	3,340
Mutual fund distribution	480	619	2,100	1,715
Sub-advisor fees	1,923	1,492	5,256	4,351
Amortization and depreciation	67	61	197	181
Total operating expenses	6,289	5,071	18,399	15,047
Operating income	5,679	3,713	13,861	9,968
Interest expense	242	280	756	812
Other income, net		(1)	(1)	(1)
Income before income tax expense	5,437	3,434	13,106	9,157
Income tax expense	2,134	1,389	5,143	3,896
Net income	$ 3,303	$ 2,045	$ 7,963	$ 5,261
Earnings per share:
Basic	$ 0.57	$ 0.35	$ 1.36	$ 0.90
Diluted	$ 0.56	$ 0.35	$ 1.34	$ 0.89
Weighted average shares outstanding:
Basic	5,776,116	5,766,376	5,861,921	5,834,073
Diluted	5,855,397	5,821,722	5,961,096	5,881,556

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity (Unaudited) - 9 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock [Member]	Retained Earnings [Member]
Beginning balance at Sep. 30, 2014	$ 37,414	$ 10,852	$ 26,562
Beginning balance, Shares at Sep. 30, 2014		6,019,276
Net income	7,963		7,963
Dividends paid	(1,024)		(1,024)
Employee restricted stock vested	0	$ 0	0
Employee restricted stock vested, Shares		7,825
Repurchase of vested employee restricted stock for tax withholding	(34)	$ (16)	(18)
Repurchase of vested employee restricted stock for tax withholding, Shares		(1,730)
Equity issued pursuant to direct stock purchase plan	0	$ 0	0
Equity issued pursuant to direct stock purchase plan, Shares		2
Deferred restricted stock unit compensation	498	$ 498
Tax effect of restricted stock vesting	65	65
Ending balance at Jun. 30, 2015	$ 44,882	$ 11,399	$ 33,483
Ending balance, shares at Jun. 30, 2015		6,025,373

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 7,963	$ 5,261
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	197	181
Deferred income taxes	1,061	1,201
Tax effect from restricted stock units and stock options	65	334
Restricted stock units repurchased for employee tax withholding	(34)	(1,004)
Deferred restricted stock unit compensation	498	147
Deferred rent	(31)	39
(Increase) decrease in operating assets:
Investment fee income receivable	(820)	(592)
Prepaid expenses	(599)	87
Other accounts receivable	128	(9)
Other assets		(184)
Increase (decrease) in operating liabilities:
Accrued liabilities and accounts payable	834	666
Income taxes payable	958	(44)
Net cash provided by operating activities	10,220	6,083
Cash flows used in investing activities:
Purchases of property and equipment	(114)	(79)
Deferred offering costs	(12)
Payments related to acquisition of management contracts	(37)	(19,152)
Net cash used in investing activities	(163)	(19,231)
Cash flows provided by (used in) financing activities:
Principal payments on bank loan	(2,813)	(2,494)
Proceeds from amended bank loan		13,287
Loan fee payments and other acquisition costs related to amended bank loan		(153)
Proceeds from exercise of employee stock options		1,258
Dividend payments	(1,024)	(658)
Net cash provided by (used in) financing activities	(3,837)	11,240
Net increase (decrease) in cash and cash equivalents	6,220	(1,908)
Cash and cash equivalents at the beginning of the period	7,645	8,406
Cash and cash equivalents at the end of the period	13,865	6,498
Cash paid for:
Income taxes	3,624	2,546
Interest	$ 765	$ 777

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Financial Statement Presentation	(1) Basis of Financial Statement Presentation The accompanying condensed balance sheet as of September 30, 2014, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of June 30, 2015 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and include the accounts of Hennessy Advisors, Inc. (the “Company”). Certain information and footnote disclosures in these unaudited interim condensed financial statements, normally included in financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission for Quarterly Reports on Form 10-Q. In the opinion of management, the unaudited interim condensed financial statements reflect all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of the Company’s financial position at June 30, 2015, the Company’s operating results for the three and nine months ended June 30, 2015 and 2014, and the Company’s cash flows for the nine months ended June 30, 2015 and 2014. These unaudited interim condensed financial statements and notes should be read in conjunction with the Company’s audited financial statements and notes thereto for the year ended September 30, 2014, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014. The Company’s operating activities consist primarily of providing investment advisory services to sixteen open-end mutual funds commonly referred to as the Hennessy Funds. The Company serves as the investment advisor to all classes of the Hennessy Cornerstone Growth Fund, the Hennessy Focus Fund, the Hennessy Cornerstone Mid Cap 30 Fund, the Hennessy Cornerstone Large Growth Fund, the Hennessy Cornerstone Value Fund, the Hennessy Large Value Fund, the Hennessy Total Return Fund, the Hennessy Equity and Income Fund, the Hennessy Balanced Fund, the Hennessy Core Bond Fund, the Hennessy Gas Utility Fund, the Hennessy Small Cap Financial Fund, the Hennessy Large Cap Financial Fund, the Hennessy Technology Fund, the Hennessy Japan Fund, and the Hennessy Japan Small Cap Fund. The Company also provides shareholder services to the entire family of Hennessy Funds. Prior to March 1, 2015, the Company only earned shareholder servicing fees from some of the Hennessy Funds. The Company’s operating revenue consists of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from the Hennessy Funds by, among other things, managing the composition of each Hennessy Fund’s portfolio (including the purchase, retention, and disposition of portfolio securities in accordance with the applicable Hennessy Fund’s investment objectives, policies, and restrictions), conducting investment research, monitoring compliance with each applicable Hennessy Fund’s investment restrictions and applicable laws and regulations, overseeing service providers (including sub-advisors), maintaining an in-house public relations and marketing program for each of the Hennessy Funds, preparing and distributing regulatory reports, and overseeing distribution through third-party financial intermediaries. The Company earns shareholder service fees from the Hennessy Funds by, among other things, maintaining an “800” number that the current investors of the Hennessy Funds may call to ask questions about the Hennessy Funds or their accounts, or to get help with processing exchange and redemption requests or changing account options. These fee revenues are earned and calculated daily by the Hennessy Funds’ accountants at U.S. Bancorp Fund Services, LLC. The fees are computed and billed monthly, at which time they are recognized in accordance with Accounting Standard Codification 605 “Revenue Recognition.” In the past, the Company has waived fees with respect to some of the Hennessy Funds to comply with contractual expense ratio limitations, but all such expense ratio limitations expired or were terminated as of February 28, 2015. The fee waivers were calculated daily by the Hennessy Funds’ accountants at U.S. Bancorp Fund Services, LLC and were charged to expense monthly by the Company as an offset to revenue. The waived fees were deducted from investment advisory fee income and reduced the amount of advisory fees that the Hennessy Funds paid in the subsequent month. To date, the Company has only waived fees based on contractual obligations, but the Company has the ability to waive fees at its discretion to compete with other mutual funds with lower expense ratios. If the Company were to elect voluntarily to waive fees, the decision to waive fees would not apply to previous periods, but would only apply on a going forward basis. As of June 30, 2015, the Company has never voluntarily waived fees. The Company’s contractual agreements for investment advisory and shareholder services provide persuasive evidence that an arrangement exists with fixed and determinable fees, and the services are rendered daily. The collectability is probable as the fees are received from the Hennessy Funds in the month subsequent to the month in which the services are provided.

Management Contracts Purchased

Management Contracts Purchased	9 Months Ended
	Jun. 30, 2015
Text Block [Abstract]
Management Contracts Purchased	(2) Management Contracts Purchased The Company has purchased assets related to the management of open-end then-existing The contingent payment due under the Asset Purchase Agreement was determined to be $19,193,595 as of October 28, 2013. The amount of the liability was booked as of September 30, 2013 because it was measurable. The contingent payment was funded in part with $13,286,666 of debt proceeds that were obtained pursuant to an amendment of the Company’s then-existing In accordance with guidance issued by the Financial Accounting Standards Board (“FASB”), the Company periodically reviews the carrying value of its purchased management contracts to determine if any impairment has occurred. The fair value of management contracts are based on management estimates and assumptions, including third-party valuations that utilize appropriate valuation techniques. The fair value of the management contracts was estimated by applying the income approach. As of June 30, 2015, no events or changes in circumstances had occurred that indicated potential impairment of the management contracts. Under the FASB guidance on “Intangibles – Goodwill and Other,” intangible assets that have indefinite useful lives are not amortized but are tested at least annually for impairment. The Company reviews the life of the management contracts each reporting period to determine if they continue to have an indefinite useful life. The Company considers the mutual fund management contracts to be intangible assets with an indefinite useful life as of June 30, 2015.

Investment Advisory Agreements

Investment Advisory Agreements	9 Months Ended
	Jun. 30, 2015
Text Block [Abstract]
Investment Advisory Agreements	(3) Investment Advisory Agreements The Company has management contracts with Hennessy Funds Trust, under which it provides investment advisory services to all classes of the sixteen Hennessy Funds. The management contracts must be renewed annually by (i) the Board of Trustees of Hennessy Funds Trust or by the vote of a majority of the outstanding shares of the applicable Hennessy Fund and (ii) by the vote of a majority of the trustees of Hennessy Funds Trust who are not interested persons of the Hennessy Funds, except that the management contract for the Hennessy Cornerstone Growth Fund, the Hennessy Cornerstone Mid Cap 30 Fund, the Hennessy Cornerstone Value Fund, the Hennessy Total Return Fund, the Hennessy Balanced Fund, the Hennessy Japan Fund and the Hennessy Japan Small Cap Fund has an initial period of two years, which commenced on February 28, 2014, to be renewed annually thereafter. If the management contracts are not renewed as described above, they will terminate automatically. In addition, there are two other circumstances in which the management contracts would terminate. First, the management contracts would automatically terminate if the Company assigned them to another advisor (assignment includes “indirect assignment,” which is the transfer of the Company’s common stock in sufficient quantities deemed to constitute a controlling block). Second, each management contract may be terminated prior to its expiration upon 60 days’ notice by either the Company or the applicable Hennessy Fund. As provided in the management contracts with the sixteen Hennessy Funds, the Company receives investment advisory fees monthly based on a percentage of the respective Hennessy Fund’s average daily net assets. The Company has entered into sub-advisory agreements for the Hennessy Focus Fund, the Hennessy Large Value Fund, the Hennessy Equity and Income Fund, the Hennessy Core Bond Fund, the Hennessy Japan Fund, and the Hennessy Japan Small Cap Fund. Under each of these sub-advisory agreements, the sub-advisor is responsible for the investment and re-investment of the assets of the applicable Hennessy Fund in accordance with the terms of such agreement and the applicable Hennessy Fund’s Prospectus and Statement of Additional Information. The sub-advisors sub-advisory sub-advisory In exchange for the sub-advisor services, the Company (not the Hennessy Funds) pays a sub-advisor fee to the sub-advisors, which is based on the amount of each applicable Hennessy Fund’s average daily net assets.

Bank Loan

Bank Loan	9 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Bank Loan	(4) Bank Loan The Company has an outstanding bank loan with U.S. Bank National Association. On October 26, 2012, the loan, which then had an outstanding principal balance of $1.9 million, was amended and restated to provide an additional $16.3 million to purchase the assets related to the management of the FBR Funds. The balance of the loan immediately following the amendment and restatement was $18.4 million. On November 1, 2013, in connection with the contingent payment for the purchase of assets related to the FBR Funds, the Company entered into an amendment to the loan agreement with U.S Bank National Association that increased its total outstanding loan balance by $13.3 million to $30.0 million. The amended loan agreement requires 47 monthly payments in the amount of $312,500 plus interest at the bank’s prime rate (currently 3.25%, in effect since December 17, 2008) plus 0.75% (effective interest rate of 4.00%) and is secured by the Company’s assets. The final installment of the then-outstanding The amended loan agreement includes certain reporting requirements and loan covenants requiring the maintenance of certain financial ratios. The Company is in compliance with the loan covenants as of June 30, 2015 and September 30, 2014. In connection with securing the financings discussed above, the Company incurred loan costs in the amount of $376,226. These costs are included in other assets and the balance is being amortized on a straight-line basis over 60 months. Amortization expense during the three-month nine-month

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	(5) Income Taxes The Company’s effective tax rates for the nine months ended June 30, 2015 and 2014 were 39.2% and 42.5%, respectively, and differ from the federal statutory rate of 35% primarily due to state taxes. The effective tax rate was higher for the period ended June 30, 2014 as a result of a one-time tax charge to true-up the prior year tax provision due to the inability to deduct for income tax purposes certain compensation expenses under Section 162(m) of the United States Internal Revenue Code of 1986, as amended. We are subject to income tax in the U.S. federal jurisdiction and various state jurisdictions and have identified our federal tax return and tax returns in California and Massachusetts as major tax filings. Our U.S. federal tax returns for 2011 and subsequent years remain open to examination. Our California and Massachusetts tax returns for 2010 and subsequent tax years remain open to examination.

Earnings per Share and Dividend

Earnings per Share and Dividends per Share	9 Months Ended
	Jun. 30, 2015
Text Block [Abstract]
Earnings per Share and Dividends per Share	(6) Earnings per Share and Dividends per Share Basic earnings per share is determined by dividing net earnings by the weighted average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net earnings by the weighted average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents. All common stock equivalents were dilutive and therefore included in the diluted earnings per share calculation for the three and nine months ended June 30, 2015. Quarterly cash dividends of $0.05, $0.06 and $0.06 per share, respectively, were paid on December 8, 2014 to shareholders of record as of November 14, 2014; on March 9, 2015 to shareholders of record as of February 13, 2015; and on June 12, 2015 to shareholders of record as of May 20, 2015. A quarterly cash dividend of $0.06 per share will be paid on September 10, 2015 to shareholders of record as of August 18, 2015.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	(7) Stock-Based Compensation On March 26, 2014, the Company adopted, and the Company’s shareholders approved, the Amended and Restated 2013 Omnibus Incentive Plan (the “Plan”). Under the Plan, participants may be granted restricted stock units (“RSUs”), representing an unfunded, unsecured right to receive a share of the Company’s common stock on the date specified in the recipient’s award. The Company issues new shares of its common stock when it is required to deliver shares to an RSU recipient. The RSUs granted under the Plan vest over four years, at a rate of 25 percent per year. The Company recognizes compensation expense on a straight-line basis over the four-year vesting term of each award. There were 62,500 RSUs granted during the nine months ended June 30, 2015 under the Plan and 32,800 granted during the nine months ended June 30, 2014 under the 2013 Omnibus Incentive Plan. RSU activity for the nine months ended June 30, 2015 was as follows: Restricted Stock Unit Activity Number of Restricted Weighted Avg. Non-vested Balance at September 30, 2014 112,963 $ 12.53 Granted 62,500 17.46 Vested (1) (36,577 ) 13.61 Forfeited (600 ) 9.01 Non-vested Balance at June 30, 2015 138,286 $ 14.49 (1) The restricted share units vested includes partially vested shares. Shares of common stock have not been issued for the partially vested shares, but the related compensation costs have been charged to expense. There were 6,095 shares of common stock issued for restricted stock units vested in the nine months ended June 30, 2015. Restricted Stock Unit Compensation Nine Months Ended June 30, 2015 (In Thousands) Total expected compensation expense related to Restricted Stock Units $ 4,859 Compensation expense recognized through June 30, 2015 (2,856 ) Unrecognized compensation expense related to RSU’s at June 30, 2015 $ 2,003 As of June 30, 2015, there was $2.0 million of total RSU compensation expense related to non-vested awards not yet recognized, which is expected to be recognized over a weighted-average vesting period of 2.9 years.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(8) Commitments and Contingencies The Company’s headquarters is located in leased office space under a single non-cancelable operating lease at 7250 Redwood Blvd., Suite 200, in Novato, California. The lease expires on March 31, 2017, with one five-year extension available thereafter. We also have an office located at 101 Federal Street, Suite 1900, Boston, Massachusetts 02110, where we occupy approximately 670 square feet and have the right to use all common areas. The initial term of our lease expires on November 30, 2015, but will automatically renew for successive one-year periods unless either party terminates the lease by providing at least three months’ notice of termination to the other party prior to the next renewal date. We also have an office located at 1340 Environ Way, #305, Chapel Hill, North Carolina 27517, where we occupy approximately 122 square feet and have the right to use all common areas. The initial term of our lease expired on November 30, 2014, but automatically renews for successive three-month periods unless either party terminates the lease by providing at least two months’ notice of termination to the other party prior to the next renewal date. As of June 30, 2015, there were no material changes in the leasing arrangements that would have a significant effect on future minimum lease payments reported in the Company’s Annual Report on Form 10-K

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	(9) Fair Value Measurements The Company applies the FASB standard “Fair Value Measurements” for all financial assets and liabilities, which establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The standard defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” It also establishes a fair value hierarchy consisting of the following three “levels” that prioritize the inputs to the valuation techniques used to measure fair value: • Level 1 – quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. • Level 2 – from other than quoted market prices that are observable for the asset or liability, either directly or indirectly (namely, similar assets or from markets that are not active). • Level 3 – unobservable and shall be used to measure fair value to the extent that observable inputs are not available (namely, reflecting an entity’s own assumptions). Based on the definitions, the following table represents the Company’s assets categorized in the Level 1 to 3 hierarchies as of June 30, 2015: Fair Value Measurements at Reporting Date Level 1 Level 2 Level 3 Total Money market fund deposits $ 10,942 $ — $ — $ 10,942 Mutual fund investments 7 — — 7 Total $ 10,949 $ — $ — $ 10,949 Amounts included in: Cash and cash equivalents $ 10,942 $ — $ — $ 10,942 Investments in marketable securities 7 — — 7 Total $ 10,949 $ — $ — $ 10,949

New Accounting Standards

New Accounting Standards	9 Months Ended
	Jun. 30, 2015
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards	(10) New Accounting Standards In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers.” The standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. When it becomes effective, it will replace most existing revenue recognition guidance in GAAP. The effective date for the new standard has been deferred to apply to annual periods beginning after December 15, 2017, including interim periods within that reporting period (the Company’s first quarter of fiscal year 2019). The adoption of this standard is not expected to impact the Company’s financial condition, results of operations or cash flows. There have been no other significant changes in the Company’s critical accounting policies and estimates during the nine months ended June 30, 2015 as compared to what was previously disclosed in the Company’s Annual Report on Form 10-K for the year ended September 30, 2014.

Basis of Financial Statement 17

Basis of Financial Statement Presentation (Policies)	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenue Recognition	The Company’s operating revenue consists of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from the Hennessy Funds by, among other things, managing the composition of each Hennessy Fund’s portfolio (including the purchase, retention, and disposition of portfolio securities in accordance with the applicable Hennessy Fund’s investment objectives, policies, and restrictions), conducting investment research, monitoring compliance with each applicable Hennessy Fund’s investment restrictions and applicable laws and regulations, overseeing service providers (including sub-advisors), maintaining an in-house public relations and marketing program for each of the Hennessy Funds, preparing and distributing regulatory reports, and overseeing distribution through third-party financial intermediaries. The Company earns shareholder service fees from the Hennessy Funds by, among other things, maintaining an “800” number that the current investors of the Hennessy Funds may call to ask questions about the Hennessy Funds or their accounts, or to get help with processing exchange and redemption requests or changing account options. These fee revenues are earned and calculated daily by the Hennessy Funds’ accountants at U.S. Bancorp Fund Services, LLC. The fees are computed and billed monthly, at which time they are recognized in accordance with Accounting Standard Codification 605 “Revenue Recognition.”

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Non-Vested Restricted Stock Units Activity	RSU activity for the nine months ended June 30, 2015 was as follows: Restricted Stock Unit Activity Number of Restricted Weighted Avg. Non-vested Balance at September 30, 2014 112,963 $ 12.53 Granted 62,500 17.46 Vested (1) (36,577 ) 13.61 Forfeited (600 ) 9.01 Non-vested Balance at June 30, 2015 138,286 $ 14.49 (1) The restricted share units vested includes partially vested shares. Shares of common stock have not been issued for the partially vested shares, but the related compensation costs have been charged to expense. There were 6,095 shares of common stock issued for restricted stock units vested in the nine months ended June 30, 2015.
Schedule of Non-Vested Restricted Stock Units Compensation	Restricted Stock Unit Compensation Nine Months Ended June 30, 2015 (In Thousands) Total expected compensation expense related to Restricted Stock Units $ 4,859 Compensation expense recognized through June 30, 2015 (2,856 ) Unrecognized compensation expense related to RSU’s at June 30, 2015 $ 2,003

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Assets Categorized on Basis of Various Levels	Based on the definitions, the following table represents the Company’s assets categorized in the Level 1 to 3 hierarchies as of June 30, 2015: Fair Value Measurements at Reporting Date Level 1 Level 2 Level 3 Total Money market fund deposits $ 10,942 $ — $ — $ 10,942 Mutual fund investments 7 — — 7 Total $ 10,949 $ — $ — $ 10,949 Amounts included in: Cash and cash equivalents $ 10,942 $ — $ — $ 10,942 Investments in marketable securities 7 — — 7 Total $ 10,949 $ — $ — $ 10,949

Basis of Financial Statement 20

Basis of Financial Statement Presentation - Additional Information (Detail) - 9 months ended Jun. 30, 2015 - Funds	Total
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Hennessy funds to which company provides investment advisory services	16
Contractual expense ratio limitations termination date	Feb. 28, 2015

Management Contracts Purchased

Management Contracts Purchased - Additional Information (Detail)	Nov. 05, 2013USD ($)	Oct. 28, 2013USD ($)	Oct. 26, 2012USD ($)Funds	Sep. 30, 2013USD ($)	Jun. 30, 2015Funds
Contracts In Progress Costs And Earnings [Line Items]
Number of mutual funds | Funds					13
Number of funds acquired | Funds			10
Acquisition of FBR & Co. (FBRC) deal			$ 2,200,000,000
Additional loan borrowed		$ 16,300,000
Payments to acquire management contract rights through available cash		3,400,000
FBR Funds [Member]
Contracts In Progress Costs And Earnings [Line Items]
Initial payment based upon the net asset value of the FBR Funds			$ 19,692,137
Contingent payment based upon the net asset value of the FBR Funds	$ 19,193,595
Additional loan borrowed				$ 13,286,666
Contingent payment due under the asset purchase agreement		$ 19,193,595

Investment Advisory Agreements

Investment Advisory Agreements - Additional Information (Detail) - Funds	Feb. 28, 2014	Jun. 30, 2015
Investments Schedule [Abstract]
Number of Hennessy funds to which company provides investment advisory services		16
Notice period for termination of agreement		60 days
Agreement term	2 years
Initial management agreement renewal period	1 year

Bank Loan - Additional Informat

Bank Loan - Additional Information (Detail) - US Bank National Association Loan [Member]	3 Months Ended		9 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)Installment	Jun. 30, 2014USD ($)	Nov. 01, 2013USD ($)	Oct. 26, 2012USD ($)
Debt Instrument [Line Items]
Long-term loan outstanding principal balance						$ 1,900,000
Additional borrowings						16,300,000
Outstanding bank loan					$ 30,000,000	$ 18,400,000
Monthly payments			P47M
Number of monthly installments payable | Installment			47
Required monthly loan principal repayment			$ 312,500
Debt instrument, stated interest rate	3.25%		3.25%
Spread on reference rate			0.75%
Effective interest rate on debt	4.00%		4.00%
Final installment date			Oct. 26, 2017
Increase in outstanding loan					$ 13,300,000
Amortized loan costs			$ 376,226
Amortized cost on straight-line basis in months			60 months
Amortization expenses	$ 21,624	$ 21,624	$ 64,871	$ 61,703
Unamortized loan cost	$ 201,822		$ 201,822

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Effective tax rates	39.20%	42.50%
Federal statutory rate	35.00%

Earnings per Share and Divide25

Earnings per Share and Dividends per Share - Additional Information (Detail) - $ / shares	Sep. 10, 2015	Jun. 12, 2015	Mar. 09, 2015	Dec. 08, 2014
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items]
Dividend paid		$ 0.06	$ 0.06	$ 0.05
Date of record		May 20, 2015	Feb. 13, 2015	Nov. 14, 2014
Subsequent Event [Member]
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items]
Dividend paid	$ 0.06
Date of record	Aug. 18, 2015

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of Restricted Share Units	62,500	32,800
Rate of restricted stock units vest under plan	25.00%
Maximum Vesting Period	4 years
Compensation expense related to non-vested awards not yet recognized	$ 2,003
Weighted-average vesting period for recognition of compensation expenses	2 years 10 months 24 days

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Non-Vested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested Beginning Balance, Number of Restricted Share Units	112,963
Granted, Number of Restricted Share Units	62,500	32,800
Vested, Number of Restricted Share Units	(36,577)
Forfeited, Number of Restricted Share Units	(600)
Non-vested Ending Balance, Number of Restricted Share Units	138,286
Non-vested Beginning Balance, Weighted Fair Value Per Share Each Date	$ 12.53
Granted, Weighted Fair Value Per Share Each Date	17.46
Vested, Weighted Fair Value Per Share Each Date	13.61
Forfeited, Weighted Fair Value Per Share Each Date	9.01
Non-vested Ending Balance, Weighted Fair Value Per Share Each Date	$ 14.49

Stock-Based Compensation - Sc28

Stock-Based Compensation - Schedule of Non-Vested Restricted Stock Units Activity (Parenthetical) (Detail) - shares	Jun. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares issued	6,025,373	6,019,276
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares issued	6,095

Stock-Based Compensation - Sc29

Stock-Based Compensation - Schedule of Non-Vested Restricted Stock Units Compensation (Detail) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total expected compensation expense related to Restricted Stock Units	$ 498	$ 147
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total expected compensation expense related to Restricted Stock Units	4,859
Compensation expense recognized through June 30, 2015	(2,856)
Unrecognized compensation expense related to RSU's at June 30, 2015	$ 2,003

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - 9 months ended Jun. 30, 2015 - ft²	Total
California [Member]
Loss Contingencies [Line Items]
Lease expiration date	Mar. 31, 2017
Extension period available after expiration of lease	5 years
North Carolina [Member]
Loss Contingencies [Line Items]
Lease expiration date	Nov. 30, 2014
Area occupied for office	122
Lease renew period	3 months
Massachusetts [Member]
Loss Contingencies [Line Items]
Lease expiration date	Nov. 30, 2015
Area occupied for office	670
Lease renew period	1 year

Fair Value Measurements - Asset

Fair Value Measurements - Assets Categorized on Basis of Various Levels (Detail) $ in Thousands	Jun. 30, 2015USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund deposits	$ 10,942
Mutual fund investments	7
Total	10,949
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market fund deposits	10,942
Mutual fund investments	7
Total	$ 10,949