Hennessy Advisors Inc. (HNNA), a California-based investment advisory firm with a market capitalization of approximately $101 million and a strong financial health rating according to InvestingPro, has announced a change in its independent registered public accounting firm. The company was informed on Monday, December 10, 2024, that Marcum LLP would not stand for reelection. Following Marcum's decision, the company's Audit Committee approved the engagement of CBIZ (NYSE:CBZ) CPAs P.C. as their new auditor for the fiscal year ending September 30, 2025.
The company's financial statements for the fiscal years ending September 30, 2024, and 2023, audited by Marcum, did not contain any adverse opinion or disclaimer of opinion. Furthermore, they were not qualified or modified regarding uncertainty, audit scope, or accounting principles. The company's solid financial position is reflected in its impressive current ratio of 13.78, indicating strong liquidity with assets well exceeding short-term obligations. InvestingPro analysis reveals 8 additional key financial indicators that subscribers can access to better understand the company's financial health.
Throughout the audit periods and up until Marcum's resignation on Tuesday, December 11, 2024, there were no disagreements on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures that, if unresolved, would have led Marcum to mention such disagreement in their report. Additionally, there were no "reportable events," which typically refer to significant issues encountered during the audit process.
Before the appointment of CBIZ CPAs P.C., Hennessy Advisors had not consulted with the firm regarding the application of accounting principles or the type of audit opinions that might be rendered on the company's financial statements. CBIZ CPAs P.C. provided no written or oral advice that was an important factor considered by the company in reaching a decision on any accounting, auditing, or financial reporting issue.
Shares of Hennessy Advisors are traded on The Nasdaq Stock Market LLC under the ticker symbol HNNA, with the stock showing remarkable performance, delivering a 123.8% return over the past year. The company maintains a consistent dividend payment track record spanning 20 consecutive years, with a current dividend yield of 4.04%. Technical indicators from InvestingPro suggest the stock is currently in overbought territory. The company also has 4.875% Notes due 2026 listed under the symbol HNNAZ on the same exchange.
In other recent news, Hennessy Advisors, Inc. has made significant adjustments to the compensation arrangements for its key executives. The changes, effective October 1, 2024, include a decrease in the quarterly incentive-based bonus for Neil J. Hennessy, a prominent figure in the company's leadership, from 6.5% to 5.0% of the firm's pre-tax profits. Concurrently, Teresa M. Nilsen, another executive, will see an increase in her quarterly bonus to 5.0% and a raise in annual base salary to $375,000.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.