“During the second quarter, the successful integration of recently acquired stations combined with ongoing initiatives to leverage our targeted localism, content and advertiser relationships drove a 42.0% rise in net revenue, more than offsetting the $4.2 million year-over-year decline in political advertising revenue. Excluding political advertising revenue and including results from our recent acquisitions, second quarter station revenue grew 48.4%, reflecting core television ad revenue growth, a significant rise in retransmission consent revenues and our 26th consecutive quarter of e-Media revenue increases. Nexstar’s ongoing revenue diversification is reflected in the growth in total second quarter retransmission fee and e-Media revenue which rose 65.3% to $32.6 million, and accounted for 26% of 2013 second quarter net revenue, compared to 22% of net revenue in the year-ago period and 17% of net revenue in the 2011 second quarter.
“While financial results are benefiting from the operating contributions and expected synergies related to the 18 television stations acquired in the fourth quarter of 2012 and first quarter of 2013, as previously indicated, we incurred one-time legal, accounting, professional and other expenses related to recent strategic activity. These items totaled approximately $1.25 million in the quarter, with approximately $0.95 million of this amount in corporate expense and the remainder in station operating expense. Although the one-time expenses impacted earnings and cash flows, second quarter 2013 BCF and adjusted EBITDA grew 25.6% and 24.3%, respectively. Highlighting the value of our platform building and revenue diversification strategies, second quarter 2013 free cash flow was up over 100% from the second quarter of 2011, the previous non-political period, and by nearly 6% compared to last year.
“Consistent with our long-term strategic objective to target expansion opportunities through accretive transactions that expand our revenue, scale and operating base, during the second quarter Nexstar and Mission Broadcasting, Inc. (“Mission”) entered into a stock purchase agreement to acquire nineteen television stations and seven associated digital sub-channels in ten markets for $270 million from Communications Corporation of America and White Knight Broadcasting. When completed later this year, these stations will add seven duopolies to our operating base and the transaction will expand our geographic diversity and scale to 91 stations in 48 markets of which 33 will be duopoly markets.
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