The $0.3 million, or 3.6%, year-over-year decline in 2013 second quarter operating income reflects a 13.7%, or $2.3 million, rise in total operating expenses which more than offset the quarterly revenue increase.
Second quarter 2013 station operating income (SOI), a non-GAAP financial measure, declined by $0.1 million, or 0.7%, to $10.1 million compared with the 2012 second quarter, as the higher quarterly net revenue was more than offset by a $2.1 million, or 14.6%, increase in station operating expenses related to operating KOAS-FM in Las Vegas and a rise in sales, programming and streaming expenses. In addition, the second quarter of 2012 benefited from the license fee settlement with BMI which had the effect of reducing station operating expenses during the period.
A $1.3 million loss on extinguishment of long-term debt, as well as a $1.1 million, or 83.8% increase in interest expense, primarily attributable to a $1.0 million pre-payment fee, and a $1.0 million, or 38.9%, reduction in income tax expense resulted in net income and net income per diluted share of $2.4 million and $0.10, respectively for the 2013 second quarter, which compares with net income and net income per diluted share of $3.9 million and $0.17 in the same period last year which included no loss on extinguishment of long-term debt or pre-payment fee.
Please refer to the "Calculation of SOI," "Reconciliation of SOI to Net Income," "Calculation of Same-Station SOI," and "Reconciliation of Same-Station SOI to Net Income" tables at the end of this announcement for a discussion regarding SOI calculations.Commenting on the results, George G. Beasley, Chairman and Chief Executive Officer, said, "Beasley Broadcast Group generated its fourth consecutive period of top line growth as second quarter net revenue rose 8.3% and same station net revenue increased 4.2%. The increase in second quarter revenue reflects strong national and digital revenue growth which contributed to strength in several market clusters including Philadelphia, Las Vegas, Ft. Myers and Augusta. Overall, for our five markets that report to Miller Kaplan -- which represent approximately 75% of our total second quarter revenue – Beasley station clusters grew revenue by 8.4% while the total revenue for all reporting radio stations in these markets declined by 2.4% for the quarter. We attribute our out-performance to our organization-wide focus on strong core programming and targeted localism, both of which are contributing to the Company's ratings strength in its markets.
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