Third quarter 2013 station operating income (SOI), a non-GAAP financial measure, rose by $0.5 million, or 5.2%, from the 2012 third quarter to $9.4 million. Higher net revenue in the 2013 third quarter more than offset the $0.8 million, or 4.9%, increase in station operating expenses related to operating KOAS-FM in Las Vegas for a full quarter in 2013, a partial quarter of expenses for the operation of KVGS-FM in Las Vegas which was acquired in September 2013, and a rise in sales and programming expenses. The flat year-to-year comparison of 2013 third quarter operating income reflects a 6.5%, or $1.2 million, rise in total operating expenses which offset the quarterly revenue increase.
Interest expense in the 2013 third quarter declined by 25.4%, or $0.5 million, reflecting the lower cost of borrowing resulting from the refinancing of the second lien debt in the second quarter of 2013 and reduced amounts outstanding. Income tax expense in the 2013 third quarter rose 167.9% to $2.1 million from $0.8 million in the 2012 third quarter, reflecting the increase in pre-tax income. Third quarter net income and net income per diluted share rose to $3.2 million and $0.14, respectively, for the 2013 third quarter which compares with net income and net income per diluted share of $1.2 million and $0.05, respectively, in the same period last year and reflects a $2.6 million pre-tax charge for loss on extinguishment of long-term debt.
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, "The third quarter marks Beasley Broadcast Group's fifth consecutive period of top line growth as third quarter net revenue rose 5.0% and same station net revenue increased 2.7%. Excluding the benefit of political advertising in the year-ago quarter, same station net revenue rose approximately 4.4%.
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