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Wednesday, December 31, 2014

HHSE January Shipments Top $1-mm!

Happy New Year friends & followers - As the culmination of a lot of work and effort into the company's "core" activities of DVD and Blu-Ray distribution, the sales for January (now in production and now shipping) have set a Company sales record!  Lead by video releases of "AMERICAN JUSTICE" and "ON ANY SUNDAY" (but supported with sales of five other titles, including "GRAND CHAMPION", "SUNSHINE", "VALLEY OF THE WITCH", "ASALTO AL CINE' / CINEMA HOLD-UP" and additional catalog sales), the Company has over $1,068,000 in new shipments / new A.R.! 

This is the biggest month for "direct sales" ever by Hannover House, and is surpassed only by January, 2011 when you add in the video sales from 20th Century Fox of "TWELVE." 

Some of these current shipments and titles "street" in February - but will still be invoiced in January as they ship out from our replication labs and warehouse.  BOOM-BOOM!  It's a big day for HHSE sales!

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There has been a lot of chatter amongst shareholders - mostly negative - about the Company's delays in posting the Form 10 Registration Statement.  In the midst of this justifiable impatience, the "monkey squad" of chat room residents has been injecting a sewage-flow of outrageous misinformation and total fabrications.  One of the issues of  such baloney that longs have shared with HHSE Management, is the absurd declaration that the "core" business for HHSE (the sale of DVD's and Blu-Rays) is on a decline.  Yeah, right.  Ask the replicators and retailers if the HHSE video sales are on a decline!  We're setting sales records, not just through our dramatically enhanced release volume (4-X more titles), but on individual title unit volumes as well!

Another issue of fictional misdirection by the "monkey squad" is the lack of understanding about Film Library Valuations and what they represent.  Can a company be in possession of distribution rights worth $28-mm+ if the catalog sales for the previous two years were less than $1-mm each?  Absolutely, because many distributors (including HSHE) intentionally hold titles on moratorium for later re-release under sales cycles.  Take a look at the current (first-ever) re-release activities now occurring for "GRAND CHAMPION."  This title was a big home video hit for HHSE in 2005, but has not been re-promoted as a catalog title until THIS MONTH.  Already, it has been placed into two promotions for Walmart, and is being considered for Best Buy and Target as well.  Granted, HHSE does not own titles of the caliber of  "Gone With the Wind" or "The Wizard of Oz", but MGM-UA has these and almost all other items in their Library on repeated cycles for re-release every 5-to-7 years (with a shelf moratorium in between).  A Film Library can be looked at like a portfolio of Farm Land: there's an inherent value in the property itself, even if the ground is allowed to fallow for a few years to recharge.  Then, every few years when reseeded under a planned cycle, the land produces a bumper crop, and can then be left alone to recharge and repeat.  IT'S HOW THE INDUSTRY WORKS FILM LIBRARIES!  Now that our HHSE sales staff and infrastructure has been expanded (under Tom Sims and his team), the HHSE library will be aggressively re-promoted during 2015 and 2016, and should break north of $5-mm in revenues.  Some titles will be kept in release, others will be placed on moratorium for later cycles. 

Anyway, the "monkey squad" isn't interested in making factual criticisms, they're just interested in creating misdirection.  Your support of HHSE hurts them and makes them cry to mama because the big kids aren't afraid of them. "Wah, wah you little cry-baby monkeys.  You're going to have to find a weaker kid to beat up on during 2015," - to quote one of the HHSE legitimate long shareholders.

As we close 2014, we see this past year as one of major building and achievements for HHSE.  The Company is working today (Dec. 31) on the final closing documents of our credit facility agreement, as we want to "book" the closing during 2014 and therefore enable our completed Form 10 to be released with this development included.  We thank our legitimate longs for their support and patience, and already know - based on January shipments, our impressive 2015 release slate, the imminent Form 10 filing and the equally imminent VODWIZ launch, that 2015 is the year for HHSE - and that today is the last day of a long journey to our success.