The $0.6 million, or 2.4%, year-over-year decline in net revenue during the three months ended March 31, 2014, primarily reflects lower advertising revenue at the Company’s Miami-Fort Lauderdale and Philadelphia market clusters.
Lower net revenue in the 2014 first quarter and a $0.4 million, or 2.4%, increase in station operating expenses, primarily related to operating KVGS-FM in Las Vegas which was acquired in September 2013, caused first quarter 2014 station operating income (SOI), a non-GAAP financial measure, to decrease by $1.0 million, or 12.2%, to $7.1 million, as compared to the 2013 first quarter. The $1.2 million, or 22.3% year-over-year reduction in 2014 first quarter operating income, is primarily attributable to the year-over-year revenue decline and a $0.6 million or 3.2% increase in total operating expenses, which included costs related to operating KVGS-FM in Las Vegas.
