Preparing its shareholders for a potential sale, Mediacom Communications (MCCC) reported on Friday worse-than-expected preliminary fourth-quarter sales amid a narrowed subscriber base.
The company announced in November a merger agreement with Mediacom CEO and founder Rocco B. Commisso and an entity formed by Commisso, which would convert all outstanding shares into $8.75 each in cash.
Mediacom released the preliminary results in an effort to provide more financial information to its shareholders before the March 4 merger vote.
The Middletown, N.Y.-based company posted fourth-quarter operating income before depreciation and amortization of $138.3 million, unchanged from the prior-year period. Adjusted operating income was $73.8 million, a 4.4% decline from the same quarter last year.
Revenue for the developer of cable systems, including video-on-demand services, pay-per-view and high-definition televisions services, was $378.9 million, up 1.9% from a year ago, below average analyst estimates polled by Thomson Reuters of $380.92 million.
The company booked an increase in digital, high-speed data and phone customers, up 14,000, 11,000 and 8,000, respectively, partially offset by a loss of 10,000 of basic subscribers.
If the deal is approved, it will likely be consummated on or about the date of the stockholder meeting. If that’s the case, the company will release no further earnings beyond the latest quarter.