Hennessy earnings jump four-fold on FBR asset purchase

NOVATO -- In its first earnings announcement since the acquisition of assets from Arlington-based FBR Funds, Hennessy Advisors (OTCBB: HNNA) today reported net income for the three months ended Dec. 31 was 404 percent higher than a year before.

"Financial performance for the first quarter was clearly impacted by the purchase of the assets related to the management contracts of the FBR Funds, which took place on Oct. 26, 2012," said Neil Hennessy, president, chairman and CEO. He noted that new mutual fund products were available after the acquisition. "We remain committed to our long-range business model and to our core value that our shareholders always come first."

Earnings in the investment management firm's first fiscal quarter were equal to 13 cents per diluted share, a 333 percent increase versus the same quarter in 2011.

The company also announced a 3.1 cent dividend per share. Based on today's closing stock price of $5.44 per share, it carried an annualized yield of 2.3 percent.

Total assets under management, at more than $3 billion, were 287 percent greater for the quarter than one year prior. Total revenue was $4.7 million, 173 percent greater than during the first fiscal quarter of 2011.

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