Hannover House Inc (HHSE)

[livinginstyle]

Not Yet Possible To Calculate Q4 Gross Margins. Your post is so full of misstatements, impossible calculations and errors, I am not even sure where to begin.

Wow Spec, I can’t believe what I just read. You said there was no mention of cost of goods sold. Well to start with, there is way more too it than just cost of goods. There are wages, heat and lights, telephone and advertising and the list of the cost of doing business goes on and on. That said, they gave us all those costs. They gave us gross sales of $1,153,186 and net profit before taxes of $279,268. All one has to do is find the unknown (cost of goods) with some basic algebra. Just subtract $279,268 from $1,153,186. That gives you $873,918 as cost of goods. But, you didn’t need to do that. The company gave us gross sales and profit. To get margins all you have to do is divide $279,268 into $1,153,186 and you get 24.2% margins this Q. Last Q’s margins were 29.2%. I deal with this stuff in my business. My numbers are right. You divide revenue minus cost of goods (which gives you your profit or loss) into total revenue. I did it right, there are no mistakes.

The cost of sales is actually not used in the equation. But, to get the correct profit or loss number one must know cost of sales. Again, the company did the math for us, all we had to do is the division. A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage is how you get margins. Your numbers are wrong. Even your gross revenue is wrong. Your 34% margin number is wrong. Again, all my numbers are correct. Grade school math is all that is needed.

You also posted you did not recall Q4 projections being higher than actual results. Well, they fell far short. Q4, Projected was; $ 1,410,000.00 gross and $ 586,960.00 net was projected. He fell $257,000 short on revenue and $307,692 short on profits. Those are huge short falls. My question is; how can he fall so short on projections when he had half the Q already in his pocket? Using those projected numbers, his margin projection was 41.6% for Q4, not even close!!

Anyway, you asked for a link to those projections and here it is.

http://hannoverhousemovies.blogspot.com/2013/11/q3-filing-today-plus-much-more-and.html