Core Home Video and VOD Revenues Up by 59% for Hannover House in Q3, 2012
LOS ANGELES, Nov. 15, 2012 /PRNewswire/ -- Hannover House, Inc. (Pinksheets: HHSE), a leading independent distributor of films, books and entertainment products, reported gross revenues of $746,375 for the three months ending September 30, 2012, with pre-tax net income of $411,636. This is the eleventh consecutive quarter of profitability for Hannover House since the company became publicly traded in January, 2010. Management believes that the results validate the business plan of balancing low-investment direct-to-video releases with higher-profile, limited-release theatrical titles as a means to maximize both revenues and bottom line results.
Principal revenue components for Hannover House in Q3 this year were DVD and Blu-Ray sales at $389,454, Video-On-Demand revenues of $275,667 and sub-distribution revenues of $35,822 from 20th Century Fox Home Entertainment's release of "Twelve." The company also recognized $40,000 in domestic television license fees. Titles contributing the most to the Q3 results were video releases of "Patient Zero," "Animal Clinic" and "Pink Skies," with VOD contracts for "Toys in the Attic" and "Cook County" leading the revenues from that media. Theatrical revenues from the September 7th launch of "Toys in the Attic" were not settled with exhibitors as of the close of the quarter and were therefore excluded from revenues. The Company also elected to exclude international pre-sales of "Mother Goose" from the Q3 revenue calculations.
Net income for last year's third quarter (2011) was $1,018,788, on gross revenues of $1,996,367, over half of which was from home video and video-on-demand revenues generated by 20th Century Fox on the company's release of "Twelve." Fox revenues for the current reporting quarter were $35,822. The company also posted $300,000 in sponsorship participations during last year's Q3 from "Turtle: The Incredible Journey." Adjusting for these two, one-time events from the prior year's Q3 revenues, leaves core DVD, Blu-Ray, VOD and Television revenues of $448,367 for Sept. 30, 2011. The same core revenue streams for this year's current reporting quarter (excluding Fox), were $710,523 for Hannover House, representing an improvement in core media sales of approximately 59%.
"We are pleased with the Q3 results," said Fred Shefte, President of Hannover House. "The continued focus on our core business of high-margin, direct-to-video releases has generated a significant and positive impact on our corporate profile with retailers, and continues to build on our bottom line and retained earnings. This business model is helping the company grow. The next 120-days will see the greatest volume of new releases ever from Hannover House, so we're looking forward to continued growth in Q4 and into next year," he concluded.
Upcoming releases from Hannover House include limited theatrical openings for "The Weather Station," "Asalto Al Cine" and "Borrar de la Memoria." Direct-to-video releases include the holiday themed "Upon a Midnight Clear," the urban action film "Deceptz," the animated feature "Toys in the Attic," the sports-documentary "Fathers of the Sport," the stand-up comedy "Next Up," the suspense thriller "The Underneath," the sci-fi-horror "Zombie Revolution: Falls the Shadow," the camp horror "Cowboys and Vampires," and the political documentary "An Inconsistent Truth." The company is also rereleasing "American Fighter Pilot" and repricing several other titles for sell-thru and budget bins, including "Turtle: The Incredible Journey" and "All's Faire In Love."
Hannover House recently acquired the domestic home video rights to twenty-two additional titles, including two multi-title ventures from AFM exhibitors. During 2013, Hannover House plans to balance its direct-to-video product strategy with three or more significant theatrical release titles as "locomotives."
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SAFE HARBOR STATEMENT
This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.
479-751-4500 / Garret@HannoverHouse.com
SOURCE Hannover House, Inc.
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