DVD Placements Set Stage for Record Q2 Video Sales at Hannover House
DVD shipments were completed today on an impressive June release slate that will see more than ten titles from Hannover House, Inc. (OTC: HHSE) on sale simultaneously at the nation’s top mass merchants and video retailers. The placement success is unprecedented for any independent studio, and sets the stage for a record level of DVD revenues for the growing family of labels under Hannover House and its affiliated Medallion Releasing venture. Sales revenues for the company have been growing rapidly with the enhanced release schedule, which has already seen 32 titles shipped in 2015, with over 90 titles slated for 2015.
Key titles now being set at retail for current summer placements feature a mix of new releases and catalog best-sellers held over for summer modulars, including: American Justice, Antonio Aguilar Colecion, Asalto Al Cine, Brutal Colors, Estrenos De Accion, Estrenos Divertidos, Gabrielle, Grand Champion, Lazarus Papers, Love Beat the Hell Outta Me and On Angel’s Wings. Hannover House and Medallion Releasing also have impressive line-ups of title commitments for September, October and November placement, including four summer theatrical releases and more than a dozen direct-to-video titles. Key accounts selling the Hannover and Medallion summer slate include Walmart, Best Buy and Family Video.
“Hannover House and our Medallion supplier studios remain committed to the packaged goods segment of the entertainment industry,” said Eric Parkinson, C.E.O. “While the initial launch of video-on-demand streaming services several years ago resulted in a decline in overall DVD and BluRay sales for most studios, industry-wide revenues have since stabilized and many key accounts are now reporting increases in packaged goods sales. We have positioned the company to maximize sales opportunities in the packaged goods side, while developing other media outlets, including theatrical, international, television and other forms of video-on-demand. Our Q2 sales success with these DVD releases represents a new quarterly sales record for the company in that format, and is further evidence of the viability of our strategic plan,” he concluded.
Pro-forma revenues for the quarter will be released shortly after the close of the current period, ending June 30, 2015; however, the company reports that the value of the active DVD shipments has already set a quarterly record for a single media format. Other principal revenues for the company’s current quarter include international sales, video-on-demand sales and contracts and theatrical output agreements.
Hannover House suffered a disappointing corporate set-back in early May, when the company’s Form 10 Registration Statement with the Securities and Exchange Commission had to be withdrawn, following an unrelated, regulatory certification issue with the outside auditing firm that had performed services on the filing. New financing for the company’s expanded release activities was delayed as a result of the Form 10 Registration withdrawal – along with anticipated payments to several key creditors. The subsequent debt conversion actions taken by key creditors of Hannover House to alleviate payment demands resulted in the release of approximately 24-million new shares of Common Stock (representing about 3% of the total float), which created a short term suppression of the company’s stock trading price. The company feels that its continuing success in DVD and revenues growth in all key media sectors will help lead the stock price to a rapid recovery and all-time new highs during 2015, especially with the imminent filing of the revised Form 10 Registration and new auditor’s report.
Hannover House was formed in 1993, and services all major forms of media distribution, from theatrical to video-on-demand. The company’s in-house library of film and television programs contains almost 300 titles – and the company’s new video-on-demand streaming service, VODWIZ (launching to consumers later this summer), boasts a library of more than 3,500 titles.
Key theatre chains in the United States and Canada that exhibit feature films from Hannover House include (listed alphabetically): AMC Theatres, Bow Tie Cinemas, Carmike, Cinemark-Century, Cineplex-Odeon, Harkins, Malco, Marcus, Metropolitan, National Amusements, Pacific Theatres, Regal Entertainment Group, Santikos and Wehrenberg Theatres.
Key mass merchants and home video purchasers of products from Hannover House and Medallion Releasing include (listed alphabetically): AAFES, Barnes & Noble, Best Buy, Eurpac, Family Video, Hastings, Netflix, Redbox, Target Stores and Walmart-Sams Clubs.
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.