Good morning and welcome to Beasley Broadcast Group's Second Quarter 2018 Conference Call. Before proceeding, I would like to emphasize that today's conference call and webcast will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties described in the Risk Factors section of our most recent Annual Report on Form 10-K and supplemented by our quarterly reports on Form 10-Q. Today's webcast will also contain a discussion of certain non-GAAP financial measures within the meaning of Item 10 on Regulation S-K. A reconciliation of these non-GAAP measures with their most directly comparable financial measures calculated and presented in accordance with GAAP can be found in this morning's news announcement and on the Company's website. I would also remind listeners that following its completion, a replay of today's call can be accessed for five days on the Company's website www.bbgi.com. You can also find a copy of today's press release on the Investors or Press Room sections of the site. At this time, I would like to turn the conference over to your host, Beasley Broadcast Group's CEO, Caroline Beasley. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us to review our second quarter results and other recent initiatives to both expand our platform and drive free cash flow. This was another solid quarter for our company as we continue to make significant progress executing against our strategic plan to leverage our increased scale, which contributed to revenue growth, EBITDA growth, and margin improvement. Marie Tedesco, our CFO is on the call with me today and she's going to give you more details on the Q2 financial results. As a reminder, our results include the benefit for the full quarter from the December 19th 2017 Boston station asset swap and also reflect the divestiture of the Coastal Carolina cluster that closed May 2nd or May 3rd, 2017. As we previously reviewed, our reported results are actual results as we believe investors are most interested in our ability to grow free cash flow per share over the long-term. The second quarter results and more recent development demonstrate that we are making progress against all of our strategic priorities, namely driving revenue, SOI and free cash flow growth in our existing operations, completing and integrating accretive transactions that strengthen our position and revenue share in our market, reducing debt while maintaining a watchful eye on our leverage ratios as we expand our scale and reach. Returning capital to shareholders in the form of quarterly dividend payments and acting on opportunities to enhance the liquidity of our shares to make them attractive to a broader base of investors. So starting with our second quarter results, we saw an overall improvement in revenue as we generated a 1% increase year-over-year. This is primarily a result of the Boston station swap which was partially offset by last May's divestiture of the Coastal Carolina…

Thanks, Caroline. Let's start with a review of the second quarter operating results after which I will review several items from our balance sheet. Second quarter net revenue increased 1% or $0.6 million to $61.6 million as we saw increases in net revenue on a year-over-year basis in our Wilmington, Philadelphia, Augusta, Boca Raton and Boston clusters. Station operating expenses for the quarter remained essentially flat at $45 million or plus 0.1% giving us a 3.5% increase in station operating income to $16.7 million compared to $16.1 million in the year ago period. Again, the net revenue on SOI for the year ago period includes the Coastal Carolina cluster, which we sold and WMJX FM in Boston, which was swapped for WBZ FM, which is included in the current period. The small increase in station operating expenses reflects the Boston asset swap, which has a sports format typically carries higher expenses, which was almost fully offset by a reduction in general expenses across our other markets. On a category basis, consumer services remained our largest revenue category in 2Q 2018 and we generated a mid to high single-digit year-over-year increase in this category during the quarter. Consumer services include advertisers such as medical, dental, construction, insurance, real estate, among others. Our second largest category was Retail, which was down low to mid single-digits while Auto, our third largest revenue category was up in the low single-digit range marking a rebound from a low to mid single-digit decline in the first quarter. Corporate G&A expenses increased 200,000 during the quarter to $4 million, primarily reflecting our expanded scale and investment in our digital division, which includes an increase in corporate staff. In addition, non-cash stock-based compensation decreased 237,000 for the quarter to 482,000 and we paid approximately 230,000 in cash taxes…

Thanks, Marie. So with one month and the quarter complete actual Q3 revenue is chasing up in the mid single-digit and we are seeing political in certain markets. Now this does include a positive impact of XTU given the fact that we are aiming that vision and the BD swap. As demonstrated with our acquisition of XTU, we will continue to grow our company and build out our platform in a strategic manner as we identify creative acquisitions and investments with our disciplined acquisition track record and our strong balance sheet; we plan to take advantage of potential transactions that could further strengthen our platform. We are managing our capital structure and leverage and we continue to return capital to shareholders as we just paid our 19 consecutive quarterly cash dividend. So to close, radio continues to be the number reach medium in U.S. and we are very excited about its future. We had massive reach multiple distribution platform, great content, a local commitment and connection and the ability to show how effective radio is to renew attribution technology. So with that, I thank you for listening today. We do have a few questions that Marie is going to read you.

Thanks, Caroline. Our first question is about the growth of political revenue in our third quarter and fourth quarter. Now we have already booked approximately 500,000 of political revenue year-to-date, and currently we have more political dollars on the book for August as of today August 3, than we ended up with in July. We are located in several politically attractive markets and we are optimistic that our expectations, or that we will receive somewhere in the neighborhood of $2.5 million in total political revenue. Our next question is how much digital revenue did we have in second quarter of '18 and the first-half of 2018, and have we seen an increase year-over-year? Caroline, will you take that?

Sure. So I think what we have seen is about 6.5% of our revenue was generated in second quarter. And this represents about a 19% quarter-over-quarter increase and digital. That's about $4 million in revenue for us. And I think to -- and clearly this is not anywhere near our long-term digital goals. But to put that in perspective, we are now TLRing [ph] most of our PPM stations. So they have lost streaming revenue. And so that has been taken out of the digital lines that show a 19% quarter-over-quarter increase and generate $4 million in digital, which is an all-time high for our company. I think it speaks to the fact that we are very focused on growing our digital dollar.

Great. Next question is if we could talk about our early experience with the attribution product Analytic Al, and describe our expectations. Caroline?

Yes. So we are seeing great results from Analytic Al. We are seeing that radio does work and we are very excited to be able to show our advertisers that. It also shows us which created this working bed. But Analytic Al and these other attribution products that out there, they are helping radio potentially go out and generate new business. But in addition to that what's helping us to renew our spend from existing client and in some cases increase spend from existing clients.

Great. And the final question is if we have seen any new revenue related to casino advertising or sports betting?

Yes, in New Jersey which -- this is now lost I believe.

Yes.

We are seeing revenue from sports betting there we are also receiving inquiries in Philadelphia because of the close proximity between New Jersey and Philly, and we expect that this will just do nothing, but bode well for Boston, Philly, and New Jersey.

Thank you.

So with that, thank you for participating on the call today, and please feel free to call Marie or myself with any questions.

That does conclude today's conference. We thank you for your participation.