Springdale, AR / January 29, 2014 / ACCESSWIRE / Hannover House, Inc. (OTC: HHSE), a leading independent distributor of films, books and entertainment products, reported that gross revenues for the fourth quarter, ending December 31, 2013, increased by approximately 390% over the same quarterly period in the previous year.
Gross revenues for the Q4 reporting quarter were $1,153,136 with pre-tax net income of approximately $279,268. This is the sixteenth consecutive quarter of profitability for Hannover House since the company became publicly traded in January, 2010. Management believes that the growing revenue results validate the business plan of balancing low-investment, direct-to-video and video-on-demand releases with higher-profile theatrical titles as a means to maximize revenues and bottom line results. As first noted in the prior quarter, the Q4 results also reflect sales revenues from international licensing of films, representing a significant new media income stream for the studio.
Gross revenues for last year's fourth quarter (2012) were $295,822. For the current 2013 reporting period, sales revenues of $1,153,136 represents a significant increase from last year's Q4 results. Net (pre-tax) income for Q4, 2012 was $107,081 as compared to net (pre-tax) income for the just ended period in 2013 of $279,268, representing an increase in the company’s bottom line of 261%.
Principal revenue components for Hannover House in Q4 of this year 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 also included in the Q4, 2013 results, although the on-sale street date for that item is a Q1, 2014 event.
Full financials for the Q4 period, and the entire 2013 year, will be released next week on the OTC Markets site, as well as through S.E.C. Edgar filings. Ongoing audit activities for Hannover House may impact the categorization and recognition of some of the company’s capitalized costs and investments customarily appearing on the balance sheets; as such, current Q4 balance sheets are not being published as of the date of this revenues release, but will be included within the year-end results.
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.