Springdale, AR / April 1, 2014 / Hannover House, Inc. (OTC: HHSE), a leading independent distributor of films, books and entertainment products, reported that gross revenues for the calendar year ending December 31, 2013, increased by approximately 31.9% over revenues generated during the previous year. The company attributed the increases to international licensing activities, which were launched during 2013, and which offset a temporary decline in packaged goods sales resulting from a change in the company's wholesale distribution network of DVDs and Blu-Ray products.
Gross revenues for the year were $3,132,061, as compared to revenues in 2012 of $2,373,065. Pre-tax profits for the year were $1,154,556 (representing an average margin of approximately 36.8% percent). The company released eight titles onto DVD during 2013, with two titles also released as Blu-Ray products. The company also released two print edition books and four ebook-format books. The volume of releases was roughly half as many as expected for the year, due primarily to rescheduled dates that were impacted by the wholesale distribution changes. During 2014, Hannover House expects to release all of the acquired film and book properties that were originally slated for release during 2013, in addition to those other titles previously planned for the coming years.
DVD and Blu-Ray orders worth more than $550,000 in wholesale revenues were canceled by Hannover House in early 2013 due to a payment dispute with Phase 4 Films, the Company's wholesale supplier at that time for the placement of video products into Walmart. The loss of those orders, and the release opportunities lost during the engagement of a replacement wholesaler, ultimately cost the Company an estimated $1-million in sales placements during 2013. Hannover House products are now being serviced to Walmart through Anderson Merchandisers and Allegro Media Group, and the Company expects to recapture the placement opportunities that were lost during 2013 with sales to be realized during 2014.
Principal revenue components for Hannover House in 2013 were direct sales of DVD and Blu-Ray units, Video-On-Demand revenues, new release books and international sales licenses. Top-selling titles for each of the principal revenue-generating categories include "Amityville Asylum" (DVD), "Toys in the Attic" (Blu-Ray), "All's Faire In Love" (Video-on-Demand), "One of the Lucky Ones" (new release books) and "Mother Goose" (international sales). Initial shipments of the new release drama, "Blues for Willadean" were included in the 2013 results, although the on-sale street date for that item was a Q1, 2014 event.
Full financials for the Q4 period and full reporting year are available on the OTC Markets website.
Hannover House believes that the company is ideally suited for rapid growth during 2014 and 2015. Newly announced activities to develop major motion pictures with a variety of pre-sale and non-recourse financing structures will provide Hannover House with high profile theatrical releases that could significantly increase revenues, profits and corporate stature. Additionally, a consumer roll-out launch of the video-on-demand venture, "VODwiz.com" (and an IPTV VODwiz channel) could generate parallel revenue paths with a business plan combining elements of the Netflix streaming structure with the Redbox discount pricing model. While developing these new revenue streams, Hannover House will continue to operate its core business of monthly DVD and V.O.D. releases, with additional release activity occurring with book publishing and theatrical activities throughout the year.
Key retail accounts for Hannover House include Walmart Stores, Inc., Redbox, Netflix, Barnes & Noble and thousands of independent video retailers, schools, libraries and booksellers. The company also sells entertainment products to a wide range of internet sites, and services most major video-on-demand portals. Hannover House stock is traded on the OTC Markets under ticker symbol: HHSE.
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.
For more information contact:
Eric Parkinson, Hannover House, 479-751-4500
Source: Hannover House, Inc.
Release ID: 38880