Hannover House Inc (HHSE)

[speckulater]

Q3 10-Q Revenues Stellar; BATTLECREEK "Biggest-December-Ever" Coming Q4+



Since we knew some Releases were purposely delayed, was expecting low numbers for Q3. A nice surprise Q3 Revenues were $351,252, Adjusted Revenues $406,164. Great numbers.

FOOTNOTES
(1) During the Merger Process with Crimson Forest, Company purposely delayed the release of five (5) new release Home Video and V.O.D. titles, which will be released in 2017 and 2018. Company projects that the gross revenue value of the delayed titles is approx. $750,000.

(Per Footnote 1) Very reasonable to assume another few hundred thousands Revenue are coming in Q4 and Q1 2018.






Additionally, Q3 Period End Date was September 30, 2017. BATTLECREEK Theatrical Lauch was November 3, 2017, after Q3. So, HHSE is scheduled for Biggest December ever since the 20th Century Fox mega shipment of Twelve in 2011. Some big financial Quarters are coming up for HHSE that will line up nicely with HHSE Uplist to OTCQB.








Monday, November 6, 2017

Battlecreek Theatrical Launch - meeting and exceeding our ancillary commitments!

Greetings HHSE Friends & Followers - Friday (Nov. 3), marked the launch of BATTLECREEK into 27 theatres in 18 different markets across the USA.

Some shareholders have expressed the need for a clarification blog as to why HHSE has released BATTLECREEK to only 27 theatres and an explanation of the manner pursued - in hopes that this information will illuminate the overall ancillary business model for those who are unfamiliar with the film industry.

What is the rationale for doing a limited theatrical release with limited advertising support? Isn't that a guarantee that a film will not hit a good box office number?

Yes, that's correct. Perhaps blindingly obvious to those who understand our strategy. If our 27 theatres playing BATTLECREEK had SOLD OUT EVERY SEAT FOR EVERY SHOWTIME this past weekend, we might have grossed about $200,000 - because unlike a film such as THOR which played in large auditoriums, smaller indie releases are usually in 60-to-90 seat auditoriums, and often "split" (shared auditorium) with another indie release. But we didn't sell out all of our shows and we didn't hit $200,000. We generated about $30,000 - and will likely finish the first week with about $45,000 in box office gross.

So, why spend $35,000 in "hard costs" plus $15,000 in "deferred fees" in pursuit of only $45,000 in total box office grosses (that will "settle" out after the theatres keep their share to about $20,000 back to HHSE)? The math from box office returns alone does not seem sustainable. That's correct. It's not a logical venture until you see the massive impact this sort of theatrical release delivers for all other ancillary revenue streams.

Our goal with BATTLECREEK was to enhance the visibility and credibility of the film so that we could MAXIMIZE overall revenues for HHSE. By opening the film in "at least 8-of the top 25 largest markets" we qualified the film for NATIONAL TV coverage - elevated its stature for home video - positioned the film for a lucrative Netflix contract - qualified the film for a Redbox kiosk placement - and legitimized the film for international markets. From a modest investment, we reap major returns.

How major? Well - based on video preorders already received from Walmart, Target, Best Buy, K-Mart and Family Video - BATTLECREEK will be the largest new release video shipment since 20th Century Fox Home Video shipped over 250,000 units of "TWELVE" for HHSE back in January, 2011. Because of what happened THIS WEEKEND with BATTLECREEK in theatres, HHSE will have our biggest December ever.

Will HHSE ever have a movie that has more significant box office potential? Absolutely - in fact,,we have solid indications that our Dec. 1 release of DAISY WINTERS could have that special "spark" with holiday movie audiences. If it does, great. If it does not, still great, because we are spending theatrical funds conservatively and in a targeted manner so that we are NOT dependent on box office magic to thrive. Meanwhile, national TV audiences have ALREADY seen feature stories on BATTLECREEK on ACCESS HOLLYWOOD, ENTERTAINMENT TONIGHT and EXTRA. Tomorrow morning, ALISON EASTWOOD is slated for FOX AND FRIENDS and HOME AND FAMILY (Hallmark Channel)... major national TV placements that would NOT occur for a "direct-to-video" release... but are available for theatrical titles... and ironically DRIVE the home video demand.

Successfully releasing independent films is a strategy and process involving multiple revenues streams and steps to achieve the best, bottom-line result. We are happy with the launch of BATTLECREEK, and know that our year-end financials will demonstrate the validity of this strategy.

http://hannoverhousemovies.blogspot.com/2017/11/battlecreek-theatrical-launch-meeting.html












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