HHSE

Hannover House, Inc.

 
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OTC Disclosure & News Service

 

Q1 Results Show Increasing Profit Margins for Hannover House

Jun 25, 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 net income for the first quarter, ending March 31, 2013 increased by approximately 9% over the same period in the previous year.  Gross revenues for the quarter were $535,273 with pre-tax net income of $432,499.  This is the thirteenth 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.

 

Net income for last year's first quarter (2012) was $394,410, on gross revenues of $603,635.  The 2013, Q1 sales revenues of $535,273 represent a modest decrease from last year's Q1 sales of approximately 11%.  However, overhead, operational and cost-of-goods expenditures from the current Q1 period  reflect a net cash savings of  $106,451 over the same period in 2012, and are reflected in the Company's consistently improving profit margins.

 

Principal revenue components for Hannover House in Q1 of this year were direct sales of DVD and Blu-Ray units at $190,493, rising Video-On-Demand revenues of $251,446 and sub-distribution revenues of $93,334 from 20th Century Fox Home Entertainment's ongoing release of the film "Twelve."  New release titles contributing the most to the Q1 results were from the video and V.O.D. releases of "Toys in the Attic", "Fathers of the Sport" and "Deceptz."  

 

The Company has elected to continue excluding international pre-sales of "Mother Goose" from the accounting of accrual revenues, as a management option under Generally Accepted Accounting Principles.  Orders received but not shipped as of March 31st for key retailers Wal-Mart and Redbox are also excluded from this current reporting period (i.e., expansion roll-outs of "Toys in the Attic", "Fathers of the Sport" and "Zombie Warz").  Contract sales for subscription Video-On-Demand title placements with Netflix have been accrued, but on a cash-flow basis are paid over the term life of the contract.

 

A detailed filing of the Company's financial results for the quarter ending March 31, 2013, will be posted to the OTC Markets today, under stock trading ticker: 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.

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