CEO backs Cablevision buyout
NEW YORK — Clearview Cinema Group, the theater consolidator slated to be acquired by Cablevision Systems Corp., said Friday its net loss for the second quarter widened 572% to $4.1 million as revenues increased 241% to $9.1 million.
The loss included an extraordinary charge of $2.0 million due to the early redemption of debt.
Cash flow (earnings before interest, taxes, depreciation and amortization) rocketed 626% in the quarter to $1.0 million as the Chatham, N.J.-based operator of community-based theaters increased its presence in the tri-state area to 45 outlets and 245 screens.
Clearview CEO A. “Bud” Dale Mayo acknowledged his board’s approval Thursday of Cablevision’s offer of $24.25 per share, 55% of which will be payable in cash and 45% in Cablevision stock.
“The joining of our businesses will reinforce Clearview’s ability to proceed with our consolidation strategy and enhance our visibility with consumers of quality entertainment products and services throughout the greater New York metropolitan area,” Mayo said.
Cablevision serves more than 3.4 million cable customers in the New York, Boston, and Cleveland areas, while providing content through its Rainbow Media Holdings with American Movie Classics, Bravo and the Independent Film Channel as well as the MSG Metro Channels. It also owns Nobody Beats the Wiz consumer electronics stores and Radio City Entertainment, which holds the lease on Radio City Music Hall.