Business
Deferred Recognition of Home Video Sales Leads to Modest Q4 During a Record 2015 for Hannover House
Deferred Recognition of Home Video Sales Leads to Modest Q4 During a Record 2015 for Hannover House.
About this update from Hannover House, Inc.
[{"type":"text","content":"Hannover\nHouse, Inc. (OTC PINK: HHSE), a leading independent distributor of films, books and\nentertainment products, reported that revenues for the fourth quarter ending December\n31, 2015 were comparable to the same quarter's results in 2014 – due primarily\nto the company's decision to defer the recognition of home video sales until\nretail sell-through rates are determined. Home video sales for five releases,\nincluding \"The Algerian\", \"Bonobos: Back to the Wild\" and \"Dancin' It's On\" will be posted by Hannover House during the first quarter of 2016. Despite the company's\ndecision to defer certain Q4 home video revenues, calendar year 2015 was still\nthe best year ever for Hannover House since becoming publicly traded in\n2010. Revenues\nthat were recognized by Hannover House during the last quarter of 2015 were\n$707,416, with pre-tax profits of $197,562 after deducting all overhead,\ncost-of-goods, a 25% returns reserve for mass merchant sales and all other\ncustomary income statement deductions and adjustments. Hannover House and Medallion Releasing's annual\nrevenues for the year ending 12-31-2015 were $6,519,409, as compared to\n$2,802,392 for 2014 year and $2,677,061 for all of 2013. The company attributes the significant\nrevenue growth to an enhanced focus on releasing films to theatres prior to\nhome video distribution, which has proven to be a viable strategy to increase\nthe ancillary values of the physical home video release and digital streaming\nrevenues.Principal\nsales and marketing activities for Hannover House during the fourth quarter of\n2015 were: Theatrical Release duties for \"Dancin' It’s On\" (opened in theatres on Oct. 30); theatrical expansion of \"The\nAlgerian\" and \"Bonobos: Back to the Wild\" and solicitation and fulfillment of catalog,\nseasonal home video and Video-On-Demand releases. Principal issues impacting\nthe Company during the last quarter included a temporary disruption of DVD and\nBluRay products flowing into U.S. Walmart Stores (as a result of the\nacquisition of wholesaler Anderson Merchandisers by Alchemy Entertainment), and\na change in ownership of FreeStyle Releasing / FreeStyle Digital Media, a major\nstreaming-media consolidator and placement agency for HHSE titles. Neither of these changes in customer status\nare expected to negatively im...