Welcome to the Hannover House Investor Relations Blog

Thursday, February 21, 2013

Back to work....

Greetings HHSE Friends & Shareholders -- quick memo of activities and updates for this cold and icy day in N.W. Arkansas.

1).  TOYS Re-orders -- Second pressing began shipments yesterday, with product delivered "overnight" to Amazon, Netflix and two wholesalers (already confirmed receipt);  balance to ship today.  WalMart.com and Amazon.com should post as "in stock" by tomorrow;  next placement within WalMart Store locations has been pegged at April 2nd due to prior shelf space commitments that begin next Tuesday.  TOYS is already Hannover's best selling "self-distributed" home video release (and is presently on target to meet or beat 20th Century Fox's sales for "TWELVE").

2).  DARK SKIES -- the Allegheny Film Factory production of "Mothman Chronicles" is being retitled as "DARK SKIES" to avoid confusion that this might be a sequel to a prior Mothman movie;  UPDATE 2-28-13:  We misunderstood director Bob Tinnell when he said that he wanted to change the title of the movie to "something like Dark Skies."  He has not yet picked the new title, and clearly, we will not be using a title of a different film that's currently in release.  The point of changing the title is to address concerns from some of the "A" level cast members that the prior title might sound  like a sequel to the Richard Gere Mothman film from about 10-years ago, which was not intentional.

3).  MANUFACTURING OPPORTUNITIES-- DVD volume at Hannover House has grown so significantly over the past six months that we are considering the financial merits of purchasing our own DVD Manufacturing System (Singulus Spaceline 2);  we welcome shareholder feedback on the idea of streamlining our manufacturing processes, which would also save us 35% or more on the cost-of-goods.  UPDATE 2-28-13:  Shareholders asked more about the COST of this venture and the SOURCE of funding.  The short answer is that Hannover House spent almost five-times the cost of the manufacturing venture in 2012 by paying third-party suppliers for DVD replication copies... so the answer to the second question is: "regular operational funds."  The issues that are still being evaluated include direct costs of new staff for manufacturing duties, power, space and the intangible costs of management time.  On the surface, it looks like the company could cut it's costs by 50% and improve turn-around times. Plus, the equipment becomes a balance sheet hard-asset.