New York, NY, Aug. 17, 2012 (GLOBE NEWSWIRE) -- Hannover House, Inc. (Pinksheets: HHSE), a leading independent distributor of films, books and entertainment products, reported that net income for the second quarter of 2012 increased by more than 98% over the same period last year. Gross revenues for the three months ending June 30, 2012 were $727,232, with pre-tax net income of $411,636. This is the tenth 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 releases with higher-profile theatrical titles as a means to maximize both revenues and bottom line results.
Net income for last year's second quarter (2011) was $4,246, on gross revenues of $348,203. The 2012, Q2 sales revenues of $727,232 represent an increase over last year's Q2 sales of approximately 53%.
Principal revenue components for Hannover House in Q2 this year were DVD and Blu-Ray sales at $428,095, rising Video-On-Demand revenues of $219,582 and sub-distribution revenues of $79,554 from 20th Century Fox Home Entertainment's release of "Twelve." Titles contributing the most to the Q2 results were video releases of "Boggy Creek", "Cook County", "Humans Vs. Zombies", and "Pink Skies." The Company elected to exclude international pre-sales of "Mother Goose" from the Q2 revenue calculations.
For the current Q3 period, Hannover House is releasing the animated feature "Toys in the Attic" to theatres in major markets (beginning Sept. 7), and an enhanced output of DVD and Blu-Ray releases, including: "The Unexpendibles Pack", "Animal Clinic", "American Fighter Pilot", "Patient Zero", "Family Movie Night" and "Buried Alive."
"Toys in the Attic" is positioned to be the Company's top performing theatrical release, based on growing consumer and enthusiasm from theatrical exhibitors. The film's theatrical trailer premiered on E! Online this week, and has since been picked-up by more than 30-major entertainment websites, helping spark interest in the film and drive FaceBook "likes" to nearly 10,000 (check out: www.Facebook.com/toysintheatticfilm ). On Thursday, August 16, shortly after a national television appearance by US writer-director Vivian Schilling on "The Daily Buzz" morning show, internet trending showed "Toys in the Attic" spike into the top 100 subjects, indicating tremendous consumer interest and chatter. The film opens in theatres on Sept. 7 in New York, Los Angeles, Chicago, Dallas-Ft. Worth, Washington, DC, Memphis and N.W. Arkansas. Expansion dates start Sept. 14 with the addition of Atlanta, Philadelphia and Seattle, and the rest of the major USA markets on Sept. 21 - through - Oct. 26.
"We are pleased with the Q2 results," said Fred Shefte, President of Hannover House. "The focus on the core business of high-margin, direct-to-video releases has clearly had a significant impact on our bottom line. These improved revenues are helping the company grow, as well as helping us to address older debts relating to the significant theatrical expenditures behind 'Twelve' in 2010, which still constitutes over 80% of the company's debt load. Smart, targeted theatrical release strategies - such as what we're implementing with 'Toys in the Attic' - will serve as our higher-profile locomotive releases, without unreasonably burdening our internal resources."
"This is a balanced release strategy," said Eric Parkinson, C.E.O. "Our DVD and Blu-Ray titles are the monthly base-hits that power our cash flow, and the occasional 'Toys in the Attic' level theatrical releases are the double-and-triple hits that keep the company winning. We're excited for Q3 and Q4, and look forward to a record year for Hannover House."
Parkinson noted that the current share price for Hannover House stock (HHSE) is more than three-times lower than the industry-average price-earnings ratio for other major, film distribution companies, as based on current Hannover House earnings.
"Industry P/E ratios suggest that our stock should be currently trading at about $.07 per share," noted Parkinson. "We believe that the current release activities justify an even higher value, and we look forward to the possibility that the enhanced corporate visibility from our releases will attract more attention to the company's publicly-traded stock."
To review the full financials, go to: www.OTCMarkets.com
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.