QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) | |
7250 Redwood Boulevard , Suite 200 |
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(Address of principal executive office) |
(Zip code) |
Title of each class |
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Trading symbol |
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Name of each exchangeon which registered |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
PART I |
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Item 1 |
1 |
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1 |
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2 |
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3 |
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4 |
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5 |
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Item 2 |
14 |
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Item 4 |
23 |
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PART II |
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Item 2 |
24 |
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Item 6 |
25 |
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26 |
Item 1: |
Unaudited Condensed Financial Statements |
December 31, 2021 |
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September 30, 2021 |
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(Unaudited) |
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Assets |
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Current assets |
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Cash and cash equivalents |
$ | |
$ | ||||
Investments in marketable securities, at fair value |
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Investment fee income receivable |
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Prepaid expenses |
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Other accounts receivable |
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Total current assets |
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Property and equipment, net of accumulated depreciation of $ |
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Operating lease right-of-use |
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Management contracts |
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Other assets |
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Total assets |
$ | |
$ | ||||
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Liabilities and Stockholders’ Equity |
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Current liabilities |
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Accrued liabilities and accounts payable |
$ | |
$ | ||||
Operating lease liability |
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Income taxes payable |
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Total current liabilities |
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Notes payable, net of issuance costs |
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— | |||||
Long-term operating lease liability |
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Net deferred income tax liability |
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Total liabilities |
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Commitments and contingencies (Note 9 ) |
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Stockholders’ equity |
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Common stock, |
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Retained earnings |
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | |
$ | ||||
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Three Months Ended December 31, |
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2021 |
2020 |
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Revenue |
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Investment advisory fees |
$ | $ | ||||||
Shareholder service fees |
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Total revenue |
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Operating expenses |
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Compensation and benefits |
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General and administrative |
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Mutual fund distribution |
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Sub-advisory fees |
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Depreciation |
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Total operating expenses |
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Net operating income |
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Interest expense |
— | |||||||
Other income |
( |
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Income before income tax expense |
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Income tax expense |
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Net income |
$ | $ | ||||||
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Earnings per share |
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Basic |
$ | $ | ||||||
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Diluted |
$ | $ | ||||||
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Weighted average shares outstanding |
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Basic |
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Diluted |
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Cash dividends declared per share |
$ | $ | ||||||
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Three Months Ended December 31, 2021 |
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Total |
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Common Stock |
Retained |
Stockholders’ |
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Shares |
Amount |
Earnings |
Equity |
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Balance at September 30, 2021 |
$ | |
$ | |
$ | |
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Net income |
— | — | ||||||||||||||
Dividends paid |
( |
) | ( |
) | ||||||||||||
Employee restricted stock vested |
— | |||||||||||||||
Repurchase of vested employee restricted stock for tax withholding |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Shares issued for auto-investments pursuant to the 2021 Dividend Reinvestment and Stock Purchase Plan |
— | |||||||||||||||
Shares Purchase Plan |
— | |||||||||||||||
Stock-based compensation |
— | — | ||||||||||||||
Employee restricted stock forfeiture |
— | ( |
) | ( |
) | |||||||||||
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Balance at December 31, 2021 |
$ | $ | $ | |||||||||||||
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Three Months Ended December 31, 2020 |
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Total |
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Common Stock |
Retained |
Stockholders’ |
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Shares |
Amount |
Earnings |
Equity |
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Balance at September 30, 2020 |
$ | |
$ | |
$ | |
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Net income |
— | — | ||||||||||||||
Dividends paid |
— | — | ( |
) | ( |
) | ||||||||||
Shares issued for auto-investments pursuant to the 2018 Dividend Reinvestment and Stock Purchase Plan |
— | |||||||||||||||
Shares Purchase Plan |
— | |||||||||||||||
Stock-based compensation |
— | — | ||||||||||||||
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Balance at December 31, 2020 |
$ | $ | $ | |||||||||||||
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Three Months Ended December 31, |
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2021 |
2020 |
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Cash flows from operating activities |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities |
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Depreciation |
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Change in right-of-use |
— | ( |
) | |||||
Amortization of note issuance costs |
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— |
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Deferred income taxes |
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Employee restricted stock forfeiture |
( |
) | — | |||||
Stock-based compensation |
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Change in operating assets and liabilities |
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Investment fee income receivable |
( |
) | ( |
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Prepaid expenses |
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Other accounts receivable |
( |
) | ||||||
Other assets |
( |
) | ( |
) | ||||
Accrued liabilities and accounts payable |
( |
) | ( |
) | ||||
Income taxes payable |
( |
) | ||||||
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Net cash provided by operating activities |
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Cash flows from investing activities |
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Purchases of property and equipment |
( |
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Net cash used in investing activities |
( |
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) | ||||
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Cash flows from financing activities |
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Proceeds from issuance of notes , net of underwriting discount |
— | |||||||
Payment of issuance costs on notes |
( |
) | — | |||||
Repurchase of vested employee restricted stock for tax withholding |
( |
) | — | |||||
Proceeds from shares issued pursuant to the 2018 Dividend Reinvestment and Stock Repurchase Plan |
— | |||||||
Proceeds from shares issued pursuant to the 2021 Dividend Reinvestment and Stock Repurchase Plan |
— | |||||||
Dividend payments |
( |
) | ( |
) | ||||
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Net cash provided by (used in) financing activities |
( |
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Net increase (decrease) in cash and cash equivalents |
( |
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Cash and cash equivalents at the beginning of the period |
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Cash and cash equivalents at the end of the period |
$ | $ | ||||||
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Supplemental disclosures of cash flow information |
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Cash paid for interest |
$ | $ | ||||||
Dividend reinvestment issued in shares |
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$ |
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$ |
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(1) |
Basis of Financial Statement Presentation |
• | acting as portfolio manager for the fund or overseeing the sub-advisor acting as portfolio manager for the fund, which includes managing the composition of the fund’s portfolio (including the purchase, retention, and disposition of portfolio securities in accordance with the fund’s investment objectives, policies, and restrictions), seeking best execution for the fund’s portfolio, managing the use of soft dollars for the fund, and managing proxy voting for the fund; |
• | performing a daily reconciliation of portfolio positions and cash for the fund; |
• | monitoring the liquidity of the fund; |
• | monitoring the fund’s compliance with its investment objectives and restrictions and federal securities laws; |
• | maintaining a compliance program (including a code of ethics), conducting ongoing reviews of the compliance programs of the fund’s service providers (including any sub-advisor), including their codes of ethics, as appropriate, conducting onsite visits to the fund’s service providers (including any sub-advisor) as feasible, monitoring incidents of abusive trading practices, reviewing fund expense accruals, payments, and fixed expense ratios, evaluating insurance providers for fidelity bond, directors and officers and errors and omissions insurance, and cybersecurity insurance coverage, managing regulatory examination compliance and responses, conducting employee compliance training, reviewing reports provided by service providers, and maintaining books and records; |
• | if applicable, overseeing the selection and continued employment of the fund’s sub-advisor, reviewing the fund’s investment performance, and monitoring the sub-advisor’s adherence to the fund’s investment objectives, policies, and restrictions; |
• | overseeing service providers that provide accounting, administration, distribution, transfer agency, custodial, sales, marketing, public relations, audit, information technology, and legal services to the fund; |
• | maintaining in-house marketing and distribution departments on behalf of the fund; |
• | preparing or directing the preparation of all regulatory filings for the fund, including writing and annually updating the fund’s prospectus and related documents; |
• | for each annual report of the fund, preparing or reviewing a written summary of the fund’s performance during the most recent 12-month period ; |
• | monitoring and overseeing the accessibility of the fund on third-party platforms; |
• | paying the incentive compensation of the fund’s compliance officers and employing other staff such as legal, marketing, national accounts, distribution, sales, administrative, and trading oversight personnel, as well as management executives; |
• | providing a quarterly compliance certification to the Board of Trustees of Hennessy Funds Trust (the “Funds’ Board of Trustees”); and |
• | preparing or reviewing materials for the Funds’ Board of Trustees, presenting to or leading discussions with the Funds’ Board of Trustees, preparing or reviewing all meeting minutes, and arranging for training and education of the Funds’ Board of Trustees. |
(2) |
Management Contracts Purchased |
(3) |
Investment Advisory Agreements |
(4) |
Fair Value Measurements |
• |
Level 1 – Unadjusted, quoted prices in active markets for identical assets or liabilities that an entity has the ability to access at the measurement date; |
• |
Level 2 – Other significant observable inputs (including, but not limited to, quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets); and |
• |
Level 3 – Significant unobservable inputs (including the entity’s own assumptions about what market participants would use to price the asset or liability based on the best available information) when observable inputs are not available. |
December 31, 2021 |
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Level 1 |
Level 2 |
Level 3 |
Total |
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(In thousands) |
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Money market fund deposits |
$ |
$ | — | $ | — | $ |
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Mutual fund investments |
— | — | ||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Amounts included in: |
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Cash and cash equivalents |
$ | $ | $ | $ | ||||||||||||
Investments in marketable securities |
— | — | ||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
September 30, 2021 |
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Level 1 |
Level 2 |
Level 3 |
Total |
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(In thousands) |
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Money market fund deposits |
$ |
$ | — | $ | $ |
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Mutual fund investments |
— | — | ||||||||||||||
Total |
$ |
$ | $ | $ |
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Amounts included in: |
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Cash and cash equivalents |
$ |
$ | $ | $ |
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Investments in marketable securities |
— | — | ||||||||||||||
Total |
$ |
$ | $ | $ |
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(5) |
Leases |
December 31, 2021 |
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(In thousands, except years and percentages) |
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Operating lease right-of-use |
$ | |||
Current operating lease liability |
$ | |||
Long-term operating lease liability |
$ | |||
Weighted average remaining lease term |
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Weighted average discount rate |
% |
December 31, 2021 |
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(In thousands) |
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Remainder of fiscal year 2022 |
$ | |||
Fiscal year 2023 |
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Fiscal year 2024 |
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Total undiscounted cash flows |
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Present value discount |
( |
) | ||
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Total operating lease liabilities |
$ | |||
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(6) |
Accrued Liabilities and Accounts Payable |
December 31, 2021 |
September 30, 2021 |
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(In thousands) |
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Accrued bonus liabilities |
$ | $ | ||||||
Accrued sub-advisor fees |
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Other accrued expenses |
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Total accrued liabilities and accounts payable |
$ | $ | ||||||
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(7) |
Debt Outstanding |
(8) |
Income Taxes |
(9) |
Commitments and Contingencies |
(10) |
Equity |
Three Months Ended December 31, 2021 |
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Shares |
Weighted Average Grant Date Fair Value per Share |
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Non-vested balance at beginning of period |
$ | |||||||
Granted |
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Vested (1) |
( |
) | ( |
) | ||||
Forfeited |
( |
) | ( |
) | ||||
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Non-vested balance at end of period |
$ | |||||||
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(1) |
Represents partially vested RSUs for which the Company already has recognized the associated compensation expense but has not yet issued to employees the related shares of common stock. |
December 31, 2021 |
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(In thousands, except years) |
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Total expected compensation expense related to RSUs |
$ | |||
Recognized compensation expense related to RSUs |
( |
) | ||
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Unrecognized compensation expense related to RSUs |
$ | |||
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Weighted average remaining years to expense for RSUs |
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(11) |
Earnings per Share and Dividends per Share |
(12) |
Recently Issued and Adopted Accounting Standards |
(13) |
Subsequent Events |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Fiscal Quarter Ended |
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December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
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(In thousands) |
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Beginning assets under management |
$ | 4,065,922 | $ | 4,117,560 | $ | 4,023,364 | $ | 3,832,551 | $ | 3,564,597 | ||||||||||
Acquisition inflows |
— | — | — | — | — | |||||||||||||||
Organic inflows |
147,461 | 94,871 | 301,731 | 208,253 | 213,502 | |||||||||||||||
Redemptions |
(240,160 | ) | (222,467 | ) | (351,897 | ) | (369,846 | ) | (401,160 | ) | ||||||||||
Market appreciation (depreciation) |
99,626 | 75,958 | 144,362 | 352,406 | 455,612 | |||||||||||||||
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Ending assets under management |
$ | 4,072,849 | $ | 4,065,922 | $ | 4,117,560 | $ | 4,023,364 | $ | 3,832,551 | ||||||||||
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Fiscal Quarter Ended |
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December 31, 2021 |
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
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(In thousands) |
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Investor Class |
$ | 2,365,152 | $ | 2,385,204 | $ | 2,505,402 | $ | 2,378,675 | $ | 2,308,369 | ||||||||||
Institutional Class |
1,734,121 | 1,717,046 | 1,646,013 | 1,539,714 | 1,477,001 | |||||||||||||||
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Total |
$ | 4,099,273 | $ | 4,102,250 | $ | 4,151,415 | $ | 3,918,389 | $ | 3,785,370 | ||||||||||
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Three Months Ended December 31, |
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2021 |
2020 |
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Amount |
Percent of Total Revenue |
Amount |
Percent of Total Revenue |
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(In thousands, except percentages) |
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Revenue |
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Investment advisory fees |
$ | 7,938 | 93.0 | % | $ | 7,208 | 92.5 | % | ||||||||
Shareholder service fees |
596 | 7.0 | 581 | 7.5 | ||||||||||||
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Total revenue |
8,534 | 100.0 | 7,789 | 100.0 | ||||||||||||
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Operating expenses |
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Compensation and benefits |
2,262 | 26.5 | 2,104 | 27.0 | ||||||||||||
General and administrative |
1,400 | 16.4 | 1,308 | 16.8 | ||||||||||||
Mutual fund distribution |
155 | 1.8 | 121 | 1.6 | ||||||||||||
Sub-advisory fees |
1,877 | 22.0 | 1,785 | 22.9 | ||||||||||||
Depreciation |
53 | 0.6 | 62 | 0.8 | ||||||||||||
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Total operating expenses |
5,747 | 67.3 | 5,380 | 69.1 | ||||||||||||
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Net operating income |
2,787 | 32.7 | 2,409 | 30.9 | ||||||||||||
Interest expense |
508 | 6.0 | — | — | ||||||||||||
Other income |
(2 | ) | (0.0 | ) | (1 | ) | (0.0 | ) | ||||||||
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Income before income tax expense |
2,281 | 26.7 | 2,410 | 30.9 | ||||||||||||
Income tax expense |
368 | 4.3 | 637 | 8.1 | ||||||||||||
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Net income |
$ | 1,913 | 22.4 | % | $ | 1,773 | 22.8 | % | ||||||||
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Three Months Ended December 31, 2021 |
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Fund Name |
Amount |
|||
Hennessy Japan Small Cap Fund |
$ | 6 million | ||
Hennessy Large Cap Financial Fund |
$ | 5 million | ||
Hennessy Energy Transition Fund |
$ | 2 million |
Three Months Ended December 31, 2021 |
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Fund Name |
Amount |
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Hennessy Focus Fund |
$ | (46) million | ||
Hennessy Gas Utility Fund |
$ | (26) million | ||
Hennessy Cornerstone Mid Cap 30 Fund |
$ | (13) million |
• | average daily net assets held by financial institutions; |
• | the split of average daily net assets held by financial institutions in Institutional Class shares of the Hennessy Funds versus Investor Class shares of the Hennessy Funds; and |
• | fee minimums at various financial institutions. |
For the Three Months Ended December 31, |
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2021 |
2020 |
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(In thousands) |
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Net cash provided by operating activities |
$ | 1,159 | $ | 1,051 | ||||
Net cash used in investing activities |
(57 | ) | (66 | ) | ||||
Net cash provided by (used in) financing activities |
37,564 | (986 | ) | |||||
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|
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Net increase (decrease) in cash and cash equivalents |
$ | 38,666 | $ | (1 | ) | |||
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Item 4. |
Controls and Procedures |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
Period |
Total Number of Shares Purchased |
Average Price Paid per Share |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1) |
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October 1-31, 2021 |
— | — | — | 596,368 | ||||||||||||
November 1-30, 2021 |
— | — | — | 596,368 | ||||||||||||
December 1-31, 2021 (2) |
3,458 | $ | 10.60 | — | 596,368 | |||||||||||
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Total |
3,458 |
$ |
10.60 |
— |
596,368 |
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(1) | We are authorized to purchase a maximum of 1,500,000 shares under our stock buyback program. We announced the stock buyback program in August 2010, and the program has no expiration date. We did not repurchase any shares pursuant to the stock buyback program during the three months ended December 31, 2021. |
(2) | The shares repurchased in December 2021 were not completed pursuant to a plan or program and are therefore not subject to a maximum per plan or program. |
Item 6. |
Exhibits |
31.1 | Rule 13a-14a Certification of the Principal Executive Officer. | |
31.2 | Rule 13a-14a Certification of the Principal Financial Officer. | |
32.1 | Written Statement of the Principal Executive Officer, Pursuant to 18 U.S.C. § 1350. | |
32.2 | Written Statement of the Principal Financial Officer, Pursuant to 18 U.S.C. § 1350. | |
101 | Financial statements from the Quarterly Report on Form 10-Q of Hennessy Advisors, Inc. for the quarter ended December 31, 2021, filed on February 10, 2022, formatted in XBRL: (i) the Condensed Balance Sheets; (ii) the Condensed Statements of Income; (iii) the Condensed Statements of Changes in Stockholders’ Equity; (iv) the Condensed Statements of Cash Flows; and (v) the Notes to Unaudited Condensed Financial Statements. | |
104 | The cover page for the Company’s Quarterly Report on Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101. |
HENNESSY ADVISORS, INC. | ||||||
Date: February 10, 2022 | By: | /s/ Teresa M. Nilsen | ||||
Teresa M. Nilsen President |
Exhibit 31.1
Rule 13a 14a Certification of the Principal Executive Officer
I, Teresa M. Nilsen, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Hennessy Advisors, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Teresa M. Nilsen |
Teresa M. Nilsen, President |
Hennessy Advisors, Inc. |
Date: February 10, 2022 |
Exhibit 31.2
Rule 13a 14a Certification of the Principal Financial Officer
I, Kathryn R. Fahy, certify that:
1. | I have reviewed this Quarterly Report on Form 10-Q of Hennessy Advisors, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ Kathryn R. Fahy |
Kathryn R. Fahy, Chief Financial Officer |
Hennessy Advisors, Inc. |
Date: February 10, 2022 |
Exhibit 32.1
Written Statement of the Principal Executive Officer
Pursuant to 18 U.S.C. § 1350
Solely for the purposes of complying with 18 U.S.C. § 1350, I, the undersigned President of Hennessy Advisors, Inc. (the Company), hereby certify, based on my knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended December 31, 2021 (the Report), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Teresa M. Nilsen |
Teresa M. Nilsen, President |
Hennessy Advisors, Inc. |
Date: February 10, 2022 |
Exhibit 32.2
Written Statement of the Principal Financial Officer
Pursuant to 18 U.S.C. § 1350
Solely for the purposes of complying with 18 U.S.C. § 1350, I, the undersigned Chief Financial Officer of Hennessy Advisors, Inc. (the Company), hereby certify, based on my knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended December 31, 2021 (the Report), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Kathryn R. Fahy |
Kathryn R. Fahy, Chief Financial Officer |
Hennessy Advisors, Inc. |
Date: February 10, 2022 |
Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Sep. 30, 2021 |
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Statement of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 1,903 | $ 1,850 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 22,500,000 | 22,500,000 |
Common stock, shares issued | 7,478,048 | 7,469,584 |
Common stock, shares outstanding | 7,478,048 | 7,469,584 |
Statements of Income - USD ($) $ in Thousands |
3 Months Ended | |
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Dec. 31, 2021 |
Dec. 31, 2020 |
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Revenue | ||
Total revenue | $ 8,534 | $ 7,789 |
Operating expenses | ||
Compensation and benefits | 2,262 | 2,104 |
General and administrative | 1,400 | 1,308 |
Mutual fund distribution | 155 | 121 |
Sub-advisory fees | 1,877 | 1,785 |
Depreciation | 53 | 62 |
Total operating expenses | 5,747 | 5,380 |
Net operating income | 2,787 | 2,409 |
Interest expense | 508 | |
Other income | (2) | (1) |
Income before income tax expense | 2,281 | 2,410 |
Income tax expense | 368 | 637 |
Net income | $ 1,913 | $ 1,773 |
Earnings per share | ||
Basic | $ 0.26 | $ 0.24 |
Diluted | $ 0.25 | $ 0.24 |
Weighted average shares outstanding | ||
Basic | 7,472,680 | 7,357,883 |
Diluted | 7,522,686 | 7,367,128 |
Cash dividends declared per share | $ 0.14 | $ 0.14 |
Investment Advice [Member] | ||
Revenue | ||
Total revenue | $ 7,938 | $ 7,208 |
Shareholder Service [Member] | ||
Revenue | ||
Total revenue | $ 596 | $ 581 |
Basis of Financial Statement Presentation |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Financial Statement Presentation |
The accompanying condensed balance sheet as of September 30, 2021, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of and for the three months ended December 31, 2021, 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,” “we,” “us,” or “our”). Certain information and footnote disclosures in these unaudited interim condensed financial statements, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, 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 necessary for a fair statement of the Company’s financial position at December 31, 2021, the Company’s operating results for the three months ended December 31, 2021 and 2020, and the Company’s cash flows for the three months ended December 31, 2021 and 2020. These unaudited interim condensed financial statements and notes should be read in conjunction with the Company’s audited financial statements and notes thereto for fiscal year 2021, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021. The preparation of financial statements requires management to make estimates and assumptions. Making estimates requires management to exercise significant judgment. Accordingly, the actual results could differ substantially from those estimates. The Company’s operating activities consist primarily of providing investment advisory services to 16 open-end mutual funds branded 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 Total Return Fund, the Hennessy Equity and Income Fund, the Hennessy Balanced Fund, the Hennessy Energy Transition Fund, the Hennessy Midstream Fund, the Hennessy Gas Utility Fund, the Hennessy Japan Fund, the Hennessy Japan Small Cap Fund, the Hennessy Large Cap Financial Fund, the Hennessy Small Cap Financial Fund, and the Hennessy Technology Fund. The Company also provides shareholder services to shareholders of the Hennessy Funds. The Company’s operating revenues consist of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from each Hennessy Fund by, among other things:
The Company earns shareholder service fees from Investor Class shares of the Hennessy Funds by, among other things, maintaining a toll-free number that the current investors in the Hennessy Funds may call to ask questions about their accounts or the funds 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. Bank Global Fund Services and are subsequently reviewed by management. The fees are computed and billed monthly, at which time they are recognized in accordance with Accounting Standards Codification 606 — Revenue from Contracts with Customers. The Company waived a portion of its fees with respect to the Hennessy Cornerstone Large Growth Fund and the Hennessy Energy Transition Fund through the expiration of each fund’s expense limitation agreement on November 30, 2019, and October 25, 2020, respectively. The Company continues to waive a portion of its fees with respect to the Hennessy Midstream Fund and the Hennessy Technology Fund to comply with contractual expense ratio limitations. The fee waivers are calculated daily by the Hennessy Funds’ accountants at U.S. Bank Global Fund Services, reviewed by management, and then charged to expense monthly as offsets to the Company’s revenues. Each waived fee is then deducted from investment advisory fee income and reduces the aggregate amount of advisory fees the Company receives from such fund 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. Any decision to waive fees would apply only on a going-forward basis. The Company’s contractual agreements for investment advisory and shareholder services prove that a contract exists with fixed and determinable fees, and the services are rendered daily. The collectability is deemed probable because the fees are received from the Hennessy Funds in the month subsequent to the month in which the services are provided. |
Management Contracts Purchased |
3 Months Ended | ||
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Dec. 31, 2021 | |||
Text Block [Abstract] | |||
Management Contracts Purchased |
Throughout its history, the Company has completed 10 purchases of the assets related to the management of 30 different mutual funds, some of which were reorganized into already existing Hennessy Funds. In accordance with Financial Accounting Standards Board (“FASB”) guidance, the Company periodically reviews the carrying value of its management contracts asset to determine if any impairment has occurred. The fair value of the management contracts asset was estimated as of September 30, 2021, by applying the income approach and is based on management estimates and assumptions, including third-party valuations that utilize appropriate valuation techniques. It was determined there was no impairment as of such date. As of December 31, 2021, management performed a qualitative analysis and determined it was more likely than not that there continued to be no impairment. Under Accounting Standards Codification 350 — 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 useful life of the management contracts each reporting period to determine if they continue to have an indefinite useful life. |
Investment Advisory Agreements |
3 Months Ended | ||
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Dec. 31, 2021 | |||
Text Block [Abstract] | |||
Investment Advisory Agreements |
The Company has investment advisory agreements with Hennessy Funds Trust under which it provides investment advisory services to all classes of the 16 Hennessy Funds. The investment advisory agreements must be renewed annually (except in limited circumstances) by (a) the Funds’ Board of Trustees or the vote of a majority of the outstanding shares of the applicable Hennessy Fund and (b) the vote of a majority of the trustees of Hennessy Funds Trust who are not interested persons of the Hennessy Funds. If an investment advisory agreement is not renewed, it terminates automatically. There are two additional circumstances in which an investment advisory agreement terminates. First, an investment advisory agreement automatically terminates if the Company assigns 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, an investment advisory agreement may be terminated prior to its expiration upon 60 days’ written notice by either the applicable Hennessy Fund or the Company. As provided in each investment advisory agreement, the Company receives investment advisory fees monthly based on a percentage of the applicable fund’s average daily net asset value. The Company has entered into sub-advisory agreements for the Hennessy Focus Fund, the Hennessy Equity and Income Fund, the Hennessy Energy Transition Fund, the Hennessy Midstream 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 reinvestments 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 are subject to the direction, supervision, and control of the Company and the Funds’ Board of Trustees. The sub-advisory agreements must be renewed annually (except in limited circumstances) in the same manner as, and are subject to the same termination provisions as, the investment advisory agreements. In exchange for the
sub-advisory services, the Company (not the Hennessy Funds) pays sub-advisory fees to the sub-advisors out of its own assets. Sub-advisory fees are calculated as a percentage of the applicable sub-advised fund’s average daily net asset value. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
The Company applies Accounting Standards Codification 820 — Fair Value Measurement for all financial assets and liabilities, which establishes a framework for measuring fair value 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:
Based on the definitions, the following tables represent the Company’s assets categorized in the Level 1 to Level 3 hierarchies :
There were no transfers between levels during the three months ended December 31, 2021, or the year ended September 30, 2021. The fair values of receivables, payables, and accrued liabilities approximate their fair values given the short-term nature of those instruments. The fair value of the 2026 Notes (see Note 7) was approximately $ 41.78 million as of December 31, 2021, based on the last trading price of the notes on that date (Level 1). |
Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
The Company determines if an arrangement is an operating lease at inception. Operating leases are included in operating lease right-of-use assets and current and long-term operating lease liabilities on the Company’s balance sheet. There were no other long-term operating leases as of three years. The renewed lease expires on July 31, 2024. The lease renewal created a long-term operating lease as of March 31, 2021, and the Company recorded a right of use asset of $1.1 million on the balance sheet. December 31, 2021, and September 30, 2021. During the quarter ended March 31, 2021, the Company renewed the lease for its office in Novato, California for an additional Right-of-use right-of-use right-of-use The Company’s most significant leases are real estate leases of office facilities. The Company leases office space under non-cancelable operating leases. Its principal executive office is located in Novato, California, and it has additional offices in Austin, Texas, Boston, Massachusetts, and Chapel Hill, North Carolina. Only the office lease in Novato, California has been capitalized because the other operating leases have terms of 12 months or less, including leases that are month-to-month right-of-use
For the three months ended December 31, 2021, total rent expense for all offices, which is recorded under general and administrative expense in the statements of income, totaled $0.1 million. The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows:
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Accrued Liabilities and Accounts Payable |
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Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities and Accounts Payable |
Details relating to accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows:
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Debt Outstanding |
3 Months Ended | ||
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Dec. 31, 2021 | |||
Debt Instruments [Abstract] | |||
Debt Outstanding |
On October 20, 2021, the Company completed a public offering of 4.875% notes due 2026 in the aggregate principal amount of $40,250,000 (the “2026 Notes”), which included the full exercise of the underwriters’ overallotment option. The 2026 Notes bear interest at 4.875% per annum, payable on the last day of each calendar quarter and at maturity, beginning December 31, 2021. The 2026 Notes mature on December 31, 2026. The 2026 Notes are direct unsecured obligations, rank equally in right of payment with any of the Company’s future unsecured unsubordinated indebtedness, senior to any of the Company’s future indebtedness that expressly provides that it is subordinate to the 2026 Notes, effectively subordinate to all of the Company’s existing and future secured indebtedness, and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s future subsidiaries. |
Income Taxes |
3 Months Ended | ||
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Dec. 31, 2021 | |||
Income Tax Disclosure [Abstract] | |||
Income Taxes |
The Company’s effective income tax rates for the three months ended December 31, 2021 and 2020, were 16.1% and 26.4%, respectively. For the three months ended December 31, 2021, the effective income tax rate was lower than the federal statutory rate due to the recognition of a tax benefit related to a California tax refund of $0.2 million. The Company is subject to income tax in the U.S. federal jurisdiction and multiple state jurisdictions. As of December 31, 2021, the Company has identified 22 major state tax jurisdictions in which is subject to income tax. For state tax jurisdictions with unfiled tax returns, the statutes of limitations remains open indefinitely. |
Commitments and Contingencies |
3 Months Ended | ||
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Dec. 31, 2021 | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Commitments and Contingencies |
The Company has no commitments and no other significant contingencies with original terms in excess of one year other than operating leases, which are discussed in Note 5. |
Equity |
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Equity |
Amended and Restated 2013 Omnibus Incentive Plan The Company has adopted, and the Company’s shareholders have approved, the Amended and Restated 2013 Omnibus Incentive Plan (the “Omnibus Plan”). Under the Omnibus Plan, participants may be granted RSUs, each of which represents 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 Omnibus Plan vest over four years at a rate of 25% per year. The Company recognizes stock-based compensation expense on a straight-line basis over the four-year vesting term of each award. A summary of RSU activity is as follows:
Additional information related to RSUs is as follows:
Dividend Reinvestment and Stock Purchase Plan In January 2021, the Company adopted a Dividend Reinvestment and Stock Purchase Plan (the “DRSPP”), replacing the previous Dividend Reinvestment and Stock Purchase Plan that had been in place since 2018. The DRSPP provides shareholders and new investors with a convenient and economical means of purchasing shares of the Company’s common stock and reinvesting cash dividends paid on the Company’s common stock. Under the DRSPP and its predecessor plans, the Company issued 1,922 and 2,817 shares of common stock during the three months ended December 31, 2021 and 2020, respectively. The maximum number of shares that may be issued under the DRSPP is 1,470,000, of which 1,458,535 shares remained available for issuance as of December 31, 2021. Stock Buyback Program In August 2010, the Company adopted a stock buyback program. The program provides that the Company may repurchase up to 1,500,000 shares of its common stock and has no expiration date. Share repurchases may be made in the open market, in privately negotiated transactions, or otherwise. A total of 596,368 shares remains available for repurchase under the stock buyback program. The Company did not repurchase any shares of its common stock pursuant to the stock buyback program during the three months ended December 31, 2021. |
Earnings per Share and Dividends per Share |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 | |||
Earnings Per Share [Abstract] | |||
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, which consist of restricted stock units (“RSUs”). For the three months ended December 31, 2021 and 2020, the Company excluded 663 and 227,410 common stock equivalents, respectively, from the diluted earnings per share calculations because they were not dilutive. In each case, the excluded common stock equivalents consisted of non-vested RSUs. The Company paid a quarterly cash dividend of $0.1375 per share on November 23, 2021, to shareholders of record as of November 11, 2021. |
Recently Issued and Adopted Accounting Standards |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 | |||
Accounting Changes and Error Corrections [Abstract] | |||
Recently Issued and Adopted Accounting Standards |
The Company has reviewed accounting pronouncements issued between the filing date of its most recent Form
10-K, which was November 24, 2021, and the filing date of this Form 10-Q and has determined that no accounting pronouncements issued would have a material impact on the Company’s financial position, results of operations, or disclosures. |
Subsequent Events |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 | |||
Subsequent Events [Abstract] | |||
Subsequent Events |
The Company and BP Capital Fund Services, LLC mutually terminated the
sub-advisory agreement for the Hennessy Energy Transition Fund and the Hennessy Midstream Fund as of January 31, 2022. These funds are now managed internally by the Company. |
Basis of Financial Statement Presentation (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | The accompanying condensed balance sheet as of September 30, 2021, which has been derived from audited financial statements, and the unaudited interim condensed financial statements as of and for the three months ended December 31, 2021, 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,” “we,” “us,” or “our”). Certain information and footnote disclosures in these unaudited interim condensed financial statements, normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, 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 necessary for a fair statement of the Company’s financial position at December 31, 2021, the Company’s operating results for the three months ended December 31, 2021 and 2020, and the Company’s cash flows for the three months ended December 31, 2021 and 2020. These unaudited interim condensed financial statements and notes should be read in conjunction with the Company’s audited financial statements and notes thereto for fiscal year 2021, which are included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021. The preparation of financial statements requires management to make estimates and assumptions. Making estimates requires management to exercise significant judgment. Accordingly, the actual results could differ substantially from those estimates. The Company’s operating activities consist primarily of providing investment advisory services to 16 open-end mutual funds branded 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 Total Return Fund, the Hennessy Equity and Income Fund, the Hennessy Balanced Fund, the Hennessy Energy Transition Fund, the Hennessy Midstream Fund, the Hennessy Gas Utility Fund, the Hennessy Japan Fund, the Hennessy Japan Small Cap Fund, the Hennessy Large Cap Financial Fund, the Hennessy Small Cap Financial Fund, and the Hennessy Technology Fund. The Company also provides shareholder services to shareholders of the Hennessy Funds. The Company’s operating revenues consist of contractual investment advisory and shareholder service fees paid to it by the Hennessy Funds. The Company earns investment advisory fees from each Hennessy Fund by, among other things:
The Company earns shareholder service fees from Investor Class shares of the Hennessy Funds by, among other things, maintaining a toll-free number that the current investors in the Hennessy Funds may call to ask questions about their accounts or the funds 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. Bank Global Fund Services and are subsequently reviewed by management. The fees are computed and billed monthly, at which time they are recognized in accordance with Accounting Standards Codification 606 — Revenue from Contracts with Customers. The Company waived a portion of its fees with respect to the Hennessy Cornerstone Large Growth Fund and the Hennessy Energy Transition Fund through the expiration of each fund’s expense limitation agreement on November 30, 2019, and October 25, 2020, respectively. The Company continues to waive a portion of its fees with respect to the Hennessy Midstream Fund and the Hennessy Technology Fund to comply with contractual expense ratio limitations. The fee waivers are calculated daily by the Hennessy Funds’ accountants at U.S. Bank Global Fund Services, reviewed by management, and then charged to expense monthly as offsets to the Company’s revenues. Each waived fee is then deducted from investment advisory fee income and reduces the aggregate amount of advisory fees the Company receives from such fund 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. Any decision to waive fees would apply only on a going-forward basis. The Company’s contractual agreements for investment advisory and shareholder services prove that a contract exists with fixed and determinable fees, and the services are rendered daily. The collectability is deemed probable because the fees are received from the Hennessy Funds in the month subsequent to the month in which the services are provided. |
Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Categorized on Basis of Various Levels | Based on the definitions, the following tables represent the Company’s assets categorized in the Level 1 to Level 3 hierarchies :
|
Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Detailed Information About In Operating Lease Right Of Use Assets Lease Liabilities and Others | The classification of the Company’s operating lease right-of-use
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Operating Lease Maturities | The undiscounted cash flows for future maturities of the Company’s operating lease liabilities and the reconciliation to the balance of operating lease liabilities reflected on the Company’s balance sheet are as follows:
|
Accrued Liabilities and Accounts Payable (Table) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities, Current [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued liabilities | Details relating to accrued liabilities and accounts payable reflected on the Company’s balance sheet are as follows:
|
Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Banks [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-Vested Restricted Stock Units Activity | A summary of RSU activity is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-Vested Restricted Stock Units Compensation | Additional information related to RSUs is as follows:
|
Basis of Financial Statement Presentation - Additional Information (Detail) |
3 Months Ended |
---|---|
Dec. 31, 2021
Funds
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Hennessy funds to which company provides investment advisory services | 16 |
Management Contracts Purchased - Additional Information (Detail) |
Dec. 31, 2021
USD ($)
Funds
|
Sep. 30, 2021
USD ($)
|
---|---|---|
Contracts In Progress Costs And Earnings [Line Items] | ||
Number of mutual funds | Funds | 30 | |
Management contracts impairment amount | $ | $ 0 | $ 0 |
Investment Advisory Agreements - Additional Information (Detail) |
3 Months Ended |
---|---|
Dec. 31, 2021
Funds
| |
Investment Schedule [Abstract] | |
Number of Hennessy funds to which company provides investment advisory services | 16 |
Notice period for termination of agreement | 60 days |
Fair Value Measurements - Assets Categorized on Basis of Various Levels (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund deposits | $ 50,597 | $ 11,554 |
Mutual fund investments | 10 | 10 |
Cash and cash equivalents | 50,597 | 11,554 |
Investments in marketable securities | 10 | 10 |
Total | 50,607 | 11,564 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market fund deposits | 50,597 | 11,554 |
Mutual fund investments | 10 | 10 |
Cash and cash equivalents | 50,597 | 11,554 |
Investments in marketable securities | 10 | 10 |
Total | $ 50,607 | $ 11,564 |
Fair Value Measurements - Additional Information (Detail) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2021 |
Sep. 30, 2021 |
|
Transfer from fair value level 1 to level 2 | $ 0 | $ 0 |
Transfer from fair value level 2 to level 1 | 0 | 0 |
Transfer into (out of) level 3 | 0 | $ 0 |
Level 1 [Member] | Notes Payable [Member] | 2026 Notes [Member] | ||
Notes payable fair value | $ 41,780,000 |
Leases - Schedule Of Operating Lease Maturities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|
Operating lease right-of-use assets | $ 920 | $ 1,010 |
Current operating lease liability | 361 | 359 |
Long-term operating lease liability | $ 554 | $ 646 |
Weighted average remaining lease term | 2 years 7 months 6 days | |
Weighted average discount rate | 0.90% |
Leases - Detailed Information About In Operating Lease Right Of Use Assets Lease Liabilities and Others (Detail) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Remainder of fiscal year 2022 | $ 273 |
Fiscal year 2023 | 374 |
Fiscal year 2024 | 286 |
Total undiscounted cash flows | 933 |
Present value discount | (18) |
Total operating lease liabilities | $ 915 |
Leases - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Mar. 31, 2021 |
Sep. 30, 2021 |
|
Operating lease right-of-use assets | $ 920 | $ 1,010 | |
Novato California [Member] | |||
Additional operating lease term | 3 years | ||
Operating lease expiry date | Jul. 31, 2024 | ||
Operating lease right-of-use assets | 1,100 | ||
General and Administrative Expense [Member] | |||
Operating lease rent payments | $ 100 |
Accrued Liabilities and Accounts Payable - Summary of accrued expenses reflected on the company's balance sheet (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|
Accrued Liabilities, Current [Abstract] | ||
Accrued bonus liabilities | $ 801 | $ 2,738 |
Accrued sub-advisor fees | 623 | 628 |
Other accrued expenses | 1,040 | 785 |
Total accrued liabilities and accounts payable | $ 2,464 | $ 4,151 |
Debt Outstanding - Additional Information (Detail) - 2026 Notes [Member] - Notes Payable [Member] |
Oct. 20, 2021
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Debt Instrument, Interest rate | 4.875% |
Debt Instrument, Face Amount | $ 40,250,000 |
Debt Instrument, Frequency of periodic payment | payable on the last day of each calendar quarter |
Debt Instrument, Payment terms | The 2026 Notes bear interest at 4.875% per annum, payable on the last day of each calendar quarter and at maturity, beginning December 31, 2021. |
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 16.10% | 26.40% |
Recognition of tax benefits | $ 0.2 |
Commitments and Contingencies - Additional Information (Detail) |
3 Months Ended |
---|---|
Dec. 31, 2021 | |
Commitments And Contingencies Description | The Company has no commitments and no other significant contingencies with original terms in excess of one year other than operating leases, which are discussed in Note 5. |
Equity - Additional Information (Detail) - shares |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Aug. 31, 2010 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum common stock issuable under plan | 22,500,000 | 22,500,000 | ||
Stock buyback program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance under plan | 596,368 | |||
Repurchase of common stock shares | 1,500,000 | |||
Dividend Reinvestment and Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock issued during period shares | 1,922 | 2,817 | ||
Maximum common stock issuable under plan | 1,470,000 | |||
Shares available for issuance under plan | 1,458,535 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Rate of restricted stock units vest under plan | 25.00% |
Equity - Schedule of Non-Vested Restricted Stock Units Activity (Detail) - Restricted Stock Units (RSUs) [Member] |
3 Months Ended |
---|---|
Dec. 31, 2021
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested Beginning Balance, Number of Restricted Share Units | shares | 323,810 |
Granted, Number of Restricted Share Units | shares | 0 |
Vested, Number of Restricted Share Units | shares | (41,353) |
Forfeited, Number of Restricted Share Units | shares | (1,906) |
Non-vested Ending Balance, Number of Restricted Share Units | shares | 280,551 |
Non-vested Beginning Balance, Weighted Avg. Fair Value Per Share at Each Date | $ / shares | $ 8.87 |
Granted, Weighted Avg. Fair Value Per Share at Each Date | $ / shares | 0 |
Vested, Weighted Avg. Fair Value per Share at Each Date | $ / shares | (9.37) |
Forfeited, Weighted Avg. Fair Value per Share at Each Date | $ / shares | (8.95) |
Non-vested Ending Balance, Weighted Avg. Fair Value Per Share at Each Date | $ / shares | $ 8.79 |
Equity - Schedule of Non-Vested Restricted Stock Units Compensation (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total expected compensation expense related to RSUs | $ 388 | $ 352 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total expected compensation expense related to RSUs | 17,169 | |
Recognized compensation expense related to RSUs | (14,703) | |
Unrecognized compensation expense related to RSUs | $ 2,466 | |
Weighted average remaining years to expense for RSUs | 2 years 9 months 18 days |
Earnings per Share and Dividends per Share - Additional Information (Detail) - $ / shares |
3 Months Ended | ||
---|---|---|---|
Nov. 23, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items] | |||
Dividends paid | $ 0.1375 | ||
Restricted Stock Units (RSUs) [Member] | |||
Weighted Average Amounts Used In Calculating Earnings Per Share [Line Items] | |||
Stock options excluded from diluted earnings per share | 663 | 227,410 |
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