TDGI Price, Earnings and Revenue Projections from their filings
VI-a). Base Business Forecasts for 2010 – Based upon the Company’s current release slate of 30 video releases, 4 theatrical titles and 5 books in 2010 (as well as revenues to be derived from the Company’s existing library plus the Elite Entertainment and FOCUSFilm libraries),
Management forecasts $17-million as “Base Business” gross revenues for 2010, with pre-tax margins of approximately $3.75-million.
VI-b). Key Title Anticipated Forecasts for 2010 – Subject to the Company’s successful closing of the financing venture for the P&A Fund (or any other comparable financing venture), and subject to the acquisition of at least two of the key titles now being pursued for national theatrical release,
Target-Hannover believes that an additional $22-million in gross revenues (generating an additional $4.8-million in pre-tax margins) is realistically obtainable to be added to the Company’s base Business Forecasts for 2010.
They already landed one of those two key titles for national theatrical release with the deal they announced for the movie "Twelve". So we just need one more deal.
$39 million revenue, $8.55 million pre-tax margins. EPS of just under .02 per share. PE of 25X gets me a TDGI share price of .50 (Throw in Hemdale deal closing and some other big project drops into their lap this year, then $1.00 per share is not impossible based on last years earning and on this years projections we got from Hannover management.
General Operations, Administration and Overhead – The executives and managers of Target-Hannover House believe that the Company’s Overhead and G&A costs are extremely conservative and significantly lower than the entertainment industry average. This lowered expense for basic overhead should enable Target-Hannover to realize greater profit margins than its competitors, and in doing so, deliver a greater value to the Company’s shareholders.
On December 15, 2009, the board of directors of Target accepted and approved the employment agreements that were already in place at Hannover House for the services of Eric Parkinson and D. Frederick Shefte. The Company also approved the hiring of middle management positions including a Director of Marketing, a Director of Sales and an Accountant-Controller, along with administrative support staff as needed. Notwithstanding the costs of these anticipated new hires, the estimated Overhead / Base G&A costs for Target-Hannover in 2010 (inclusive of salaries to key executives) are forecast at a total of $690,000. This 2010 overhead total has been included within the Base Business Forecasts listed above on line item V-a.
