Q3 Results Show Increased Revenues from Media Diversity at Hannover House
Nov 19, 2013
OTC Disclosure & News Service
Los Angeles, CA -
Hannover House, Inc. (OTC: HHSE), a leading independent distributor of films, books and entertainment products, reported that gross revenues for the third quarter, ending September 30, 2013 increased by approximately 61% over the same period in the previous year.? Gross revenues for the Q3 reporting quarter were $1,205,392 with pre-tax net income of approximately $351,697.? This is the fifteenth 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 and video-on-demand releases with higher-profile theatrical titles as a means to maximize both revenues and bottom line results. The Q3 results also reflect sales revenues from international licensing of films, representing a new media income stream for the studio.
Gross revenues for last year's third quarter (2012) were $746,376.? For the current 2013 reporting period, sales revenues of $1,205,392 represents a significant increase from last year's Q3 results, and places the company ahead of year-to-date forecasts released in June by 2.59%.
Principal revenue components for Hannover House in Q3 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 "Zombie Warz" (DVD), "Toys in the Attic" (Blu-Ray), "Twelve" (Video-on-Demand), "One of the Lucky Ones" (new release books)and "Mother Goose" (international sales). The company's motion picture services division also generated equipment and vehicle rental income from the third-party-produced feature films "Greater" and "Valley Inn."
Ventures excluded from the current report include the beta-test website and IPTV streaming venture VODwiz.com, as well revenues from the John Lennon CD and book items, "Lennon Bermuda" (both of which were moved to Q4 release dates to accommodate retail space availabilities). The company's major book release for 2013, "The Verdict: Justice for John F. Kennedy, Justice for America," by best-selling author Barr McClellan, has been moved into a split release date (with the e-book slated for Kindle and Nook in November, and the print-edition book slated for release December 17). McClellan's 2003 book on the Kennedy assassination sold more than 100,000 copies and shot all the way to the #1 best-selling post for Amazon.com (nonfiction, history) and the #11 position for the New York Times.
Hannover House stock is traded on the OTC Markets under ticker symbol: HHSE. Stock Analysis site, HotStoqx.com, noted recently that the HHSE share price (currently about $.014 / share), represents a market capitalization that is less than 25% of the company's value - and a share price that is less than 25% of the Price-Earnings Average for other companies in the same industry. Their conclusion was that the share price was irrationally undervalued, and thus well-positioned for significant growth.
A detailed filing of the Company's financial results and quarterly disclosures for the period ending September 30, 2013 have been published on the OTC Markets website, under stock trading ticker: HHSE.
