Sorry for borderline offending you but I was rather asking why would anyone defend grossly over inflated estimates that HH management forecasted. They gave Tom S. the number 7.25 million. They achieved 500 thousand. How can anyone believe that the 7.25 million was at all in the realm of possibility. Once a week the CEO's corporate bio is posted here on this board. EX-NASDQ CEO with decades of experience. How can they be so far off the estimate? It is simply not expectable in most rational people's minds. IMO there is no way any person here can justify the management's 7.25 million theatrical estimate and still honestly believe they will even come close to 40 million in theatrical revenue in 2012. IMO, these grossly overestimated numbers surely harms their credibility. These are not my made up numbers for gosh sakes. These are the actual numbers that current management have made PUBLIC.
I do wish you all the luck with your company's endeavor.
SALES HISTORIES AND MARKETING PLANS – In evaluating and determining the Valuation of this Library, Szwak Consulting Group has relied upon prior title sales histories and new release marketing plans to support sales forecasts for calendar years 2011 and 2012 that
were provided by Hannover House Management. Szwak Consulting Group makes no representation, warranty or guarantee as to the accuracy of the sales histories provided by Hannover House Management.
THEATRICAL RELEASES – The Library Report contains sales forecasts (both “Box Office Gross” and “Net Theatrical Fees”) for six (6) titles to be released by Hannover House during 2011, and six (6) titles to be released by Hannover House during 2012. The cumulative Box Office Gross for the six titles to be released to theaters during 2011 is $7,250,000, with fees to Hannover House of $698,250. The cumulative Box Office Gross for the six titles to be released to theaters during 2012 is $40,500,000 with fees to Hannover House of $4,180,000.
DVD REVENUES – New Release DVD Revenues were reflected for a total of forty-five (45) titles that will debut on DVD during 2011 and 2012. The gross revenue forecast from New Release DVD for 2011 is $7,777,011 with net fees and income to Hannover House of approximately $1,965,761. Over the following four years (2012 – 2015), these forty-five (45) titles are projected to gross approximately $20,566,554 in additional, cumulative revenues, with net fees and income to Hannover House of approximately $5,391,054. Catalog DVD Revenues were reflected for a total of one-hundred-ten (110) titles that are already available on DVD. The gross revenue forecast for 2011 from these catalog DVD releases is projected at $1,291,722 with new fees and income to Hannover House of approximately $364,162. Over the following four years (2012 – 2015), these one-hundred-ten (110) catalog DVD titles are projected to cumulatively gross approximately $2,557,508 with net fees and income to Hannover House of approximately $726,898.
BLU-RAY REVENUES – New Release Blu-ray Revenues were reflected for a total of forty-one (41) titles that will debut on the Blu-ray format during 2011 and 2012. The gross revenue forecast from New Release Blu-ray sales for 2011 is $1,467,000 with net fees and income to Hannover House of approximately $353,350. Over the following four years (2012 – 2015), these forty-one (41) Blu-ray titles are projected to cumulatively gross approximately $4,803,500 with net fees and income to Hannover House of approximately $1,186,525.
VIDEO-ON-DEMAND REVENUES – V.O.D. Revenues were reflected for a total of one- hundred-twenty-seven (127) titles that will be launched initially through various streaming media during 2011 and 2012. The gross revenue forecast from V.O.D. titles during 2011 is $4,869,633 with net fees and income to Hannover House of approximately $1,264,528. Over the next four years (2012 – 2015) these one-hundred-twenty-seven (127) V.O.D. titles are projected to cumulatively gross approximately $2,458,787 with net fees and income to Hannover House of approximately $667,658.
BOOKS & E-BOOK REVENUES – Publishing Revenues for all formats of printed and E- Books were reflected for six (6) new release titles that will be published in print format and eleven (11) titles that will be made available in E-Book formats during 2011 and 2012. Book revenues also include forecasts from five (5) catalog titles already in release. The gross revenue forecast from all book publishing activities during 2011 is $982,500 with net fees and income to Hannover House of approximately $491,250. Over the next four years (2012 – 2015) these eleven (11) titles are projected to cumulatively gross approximately $1,184,500 with net fees and income to Hannover House of approximately $592,375.
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TELEVISION REVENUES – Revenues from all forms of television within the United States and Canada were reflected for forty-one (41) titles that will be made available to TV during 2011 and 2012. The gross revenue forecast from all television media formats in this territory during 2011 is $2,339,00 with net fees and income to Hannover House of approximately $601,600. Over the next four years (2012 – 2015) these forty-one (41) titles are projected to cumulatively gross approximately $6,975,500 with net fees and income to Hannover House of approximately $1,899,713.
INTERNATIONAL REVENUES – Income from the sales and licensing of titles to territories and media outside of North America was reflected for fifteen (15) titles. The gross revenue forecast from all international sales during 2011 is $5,120,000 with net fees and income to Hannover House of approximately $1,336,000. Over the next four years (2012 – 2015) these fifteen (15) titles are projected to cumulatively gross approximately $2,667,500 with net fees and income to Hannover House of approximately $747,125.
2011 LIBRARY SUMMARY – During 2011, Hannover House is slated to release six (6) titles to theaters from the Library listings as of 12-31-2010 (note: additional titles have been acquired during 2011 which may also be released during 2011 by Hannover House; but for the purpose of this Library Valuation Report, only properties licensed as of 12-31-2010 are included). The company also plans to release from the listings thirty-six (36) titles to DVD, thirty-two (32) titles onto Blu-ray, ninety-eight (98) through V.O.D., eleven (11) through book formats, thirty-two (32) to domestic (North American) television and fifteen (15) to International markets. The gross revenues anticipated from all titles and applicable media for 2011 is forecast at $31,957,877 with net fees and income to Hannover House of approximately $7,308,812. The titles from this Library listing that are anticipated to be top revenue generators for Hannover House during 2011 are (in descending order): “TURTLE: THE INCREDIBLE JOURNEY”, “THRU THE MOEBIUS STRIP” and “ALL’S FAIRE IN LOVE.”
