- A $0.7 million, or 5.0%, year-over-year decline in net revenue during the three months ended September 30, 2014, primarily reflects lower advertising revenue at the Company's Wilmington and Greenville-New Bern-Jacksonville market clusters which more than offset net revenue increases at the Company's Las Vegas and Ft. Myers market clusters.
- Station operating expenses in the 2014 third quarter increased by $0.2 million, or 1.8%, which coupled with the revenue decline resulted in a $0.8 million, or 18.9%, decline in third quarter 2014 station operating income to $3.6 million compared to the 2013 third quarter.
- The $0.8 million, or 45.4% year-over-year reduction in 2014 third quarter operating income, reflects the year-over-year revenue decline, the increase in station operating expenses and a 0.8% increase in total operating expenses in the third quarter of 2014 compared with the same period in 2013.
"In addition to our initiatives during the quarter to expand and diversify our station and digital media operations, we continue to focus on debt reduction and returning capital to shareholders. During the third quarter we made credit facility repayments totaling $3.3 million, reducing borrowings to $99.0 million at September 30, 2014 and declared our fourth consecutive quarterly cash dividend. Notably, the asset exchange agreement with CBS Radio has been structured to allow us to meaningfully expand our operating and revenue base without incurring additional borrowings or using cash from operations. Based on our expectation that the transaction will lead to station operating income accretion in the first eighteen months after closing, we expect to further reduce the Company's leverage ratio which is presently near its lowest level in ten years."