Edward K. Christian - Chairman, Chief Executive Officer and President Samuel D. Bush - Chief Financial Officer, Senior Vice President and Treasurer

Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter 2013 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to our host, Mr. Ed Christian. Please go ahead.

Thank you very much. Welcome to Q2. And with that, with some short verbiage and analysis, here is Sam Bush.

Thank you, Ed. This call will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties that are described in the Risk Factors section of our most recent Form 10-K. Actual results may differ materially from those expressed in this conference call. This call will also contain a discussion of certain non-GAAP financial measures within the meaning of Item 10 of Reg S-K. Reconciliation for all the non-GAAP financial measures to the most directly comparable GAAP measure is attached in the selected financial data table. Net revenues increased 2.6% this quarter. During the quarter, we had $172,000 in gross political revenue compared to $717,000 last year. Netting out the political revenue, our gross revenues increased 4.1% for the second quarter. We experienced nice growth in both national and local this quarter. Our gross local revenue increased 4.4% or almost $1.2 million over second quarter last year. National increased 7.6% or $342,000 over the same period last year. And national accounted for approximately 13.1% of gross revenue for the quarter compared to 12.5% for the same period last year. We are anticipating a bit of a revenue challenge in the third quarter, as last year, we had almost $1.5 million in political for the quarter. That said, July started the quarter off nicely, being up low single digits. August and September are both pacing down low single digits, but in reality, it's too early to tell how they will finish. As stated in the press release, station operating expense increased $1.5 million for the quarter. Over half of this increase was due to the expense in the second quarter of last year being reduced by the $851,000 credit we received from music licensing fees. Normalizing the comparison, our expenses were up 3% for the quarter.…

Thank you, Sam. Also in the room with us today is Warren Lada. So in the background, if you hear somebody going, "Go boy" or "You rock", that's Warren kind of urging us on to -- as we continue on with our comments. I'm going to give you my monic right now, or another way to remember something. And it's monosodium glutamate, MSG, and I did this with Warren and Sam before the call, so they would know. And Warren said, "Oh yes, that's associated with Chinese restaurants." And actually, it's called the Chinese restaurant syndrome because, one, MSG was very big at that time. It caused or it was portended to cause headaches when people ate at Chinese restaurants. And we're not saying anything about that, except that MSG will help you remember moderate sluggish growth, which is what I feel that we're in right now. Moderate sluggish growth. It's a wonderful way of explaining exactly what's going on, moderate, sluggish, and we're still growing. That's what we're in right now. And I think I'm afraid that we're going to be in it for some time. And not only as an industry, but also as a country. Bad news, the economy could be near stall speed, I don't think so. I don't see a recession. GDP was up 1.7% for Q2. Now most broadcasters outpaced that, which is good news because I always try to make sure that we're doing more in revenue than what the economy is doing in GDP. Good measure. You've got to keep ahead of that curve. Broadcast industry might be moderate right now, but it is an industry with a steady cash trail. Sam mentioned we paid down 775,000 -- $7,750,000, and we still have about $23 million cash on hand. It makes us…

No, I think that pretty well does it. As Ed said, most of the questions we got, we incorporated our answers already into either Ed's or my comments. So I think we've covered everything.

Warren says goodbye also. So thank you, all, for joining us on this call, and we'll speak to you in about 90 days.

Ladies and gentlemen, this concludes our conference for today, and thank you for using AT&T Executive TeleConference service. You may now disconnect.