Outdoor Channel Holdings, Inc. (OUTD) reported a net loss for the first quarter of $6.1 million or $0.24 per share, compared to a net loss of $1.2 million or $0.05 per share for the year-ago quarter.
Total operating expenses for the first quarter were $26.5 million compared to $16.3 million in the first quarter of 2012.
The latest quarter results include $7.6 million in merger related costs.
Consolidated revenues for the quarter rose to $16.9 million from $14.3 million a year ago, driven mainly by a 20% growth in advertising revenues at The Outdoor Channel.
On March 13, the company entered into a definitive merger agreement with Kroenke Sports & Entertainment under which KSE is to purchase the xompany for $8.75 per share in an all-cash transaction. On May 2, KSE amended the agreement to increase the all-cash consideration to $9.35 per share. On May 3, the company received an all-cash offer from InterMedia for $9.75 per share under essentially the same terms and conditions as the proposed KSE merger. On May 8, the company and KSE amended the merger agreement to reflect an increased all-cash price of $10.25 per share, an increase of the break-up fee to $7.5 million and an amendment to the support agreement to require the directors and certain executive officers to vote in favor of the KSE merger, even if the Board determines an alternative proposal is superior. The merger deal is subject to shareholder and other customary approvals.
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