Marin County’s Hennessy Advisors weathers turbulent markets, looks to 2023 improvement

The Novato-based financial firm Hennessy Advisors (Nasdaq: HNNA) reported a 9% drop in fiscal-year revenue and a 22% decline in net income.

Total revenue was $29.7 million for the year ended Sept. 30, and net income $6.2 million. Assets under management decreased 29% to $2.9 billion.

“While our earnings fell during the fiscal year due to lower assets under management and the interest expense on our bond debt, that is only part of the story here at Hennessy Advisors,” President and Chief Operating Officer Teresa Nilsen said in a statement upon release of the results Wednesday.

“Even though things are down, there’s still a positive in our cash balance,” Nilsen told the Business Journal on Thursday.

Even with declines amid an economy that for starters witnessed about a quadrupling of inflation teasing 8% at one point, Hennessy’s cash balance showed double-digit gains. The figure, which amounts to the net of gross debt, came in as $18.2 million — an increase of 15% year over year.

The gains demonstrate the firm’s long-term commitment to investments of value that will grow over time, Nilsen said.

“We’re in this over the long haul, and we feel we’re in a really good place,” she said.

Hennessy Advisors Chairman and CEO Neil Hennessy was also optimistic about the path moving forward.

“Even faced with these challenges and the often alarmist financial headlines, I believe there are many fundamental positives in our economy,” he said in a statement.

Hennessy cited a still-energized labor market as well as robust household savings accounts among Americans and balance sheets of many corporations. Both stand in the trillions of dollars.

“I feel confident that as interest rates and inflation stabilize, consumers and investors will recognize the underlying strengths in our economy,” he said.