Firm shows large dips in revenue, net income
Novato-based Hennessy Advisors, Inc. posted dips in revenue and income in its second quarter results for fiscal year 2019, including a more than 25 percent drop in total revenue compared to the same quarter last year.
Revenues fell from over $14 million to $10.4 million over that period, with net income diving 36 percent from $4.5 million at the end of March 2018 to $2.9 million at the end of March of this year. Assets under management also decreased over the same period 22 percent to $5.1 billion. The company also reported a quarterly dividend of $0.11 per share to be paid in June.
“Our first fiscal quarter ending December 31, 2018, was mired in stock market losses, volatility and investor uncertainty, causing a corresponding drop in our assets under management,” said Hennessy’s President and Chief Operating Officer Teresa Nilsen in a statement released along with the results.
“Due to that first quarter decline, we began our second quarter with assets at $4.9 billion, which led to decreased revenue and lower earnings for the current quarter. However, we began to build total assets again during the second quarter with both solid returns and renewed interest in our mutual fund offerings. Even though the decline in assets led to a drop in our financial results, we continued to build cash and pay down our debt, strengthening the overall financials of the company,”
CORRECTION: An earlier version of this story online incorrectly characterized the company’s performance compared to the previous quarter and the prior year. The company experienced declines in net income of 36 percent and revenue by 25 percent. Also, Teresa Nilsen is the president as well as COO.