Good morning and welcome to the Beasley Broadcast Group Second Quarter 2019 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 risk and uncertainties described in the risk factors section of our most recent annual report on Form 10-K as 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 the Item 10 in 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 the morning's news announcement on the company's website.I would also like to remind listeners that the following its completion, a replay of today's call will be accessible for five days on the company's website www.bbgi.com.You can also find a copy of the press release on the Investors or Press Room sections of the site.At this time, I would now like to turn today’s conference to your host of Beasley’s Broadcast Group's CEO, Caroline Beasley. Please go ahead.

Thank you, and good morning everyone, and thank you for joining us to review our second quarter operating results. I’m going to review several quarterly highlights and then hand it over to our CFO, Marie Tedesco, who will take a deeper dive into our financial performance.So, for the quarter, we generated record second quarter revenue of $65.7 million, which is a 6.5% increase over last year, primarily driven by our Boston, New Jersey, and Philadelphia clusters, including the September 2018 acquisition of XTU.Now looking closer at the year-over-year revenue comparison, in last year's second quarter, we realized approximately 675,000 of non-recurring USTN traffic revenue, as well as 340,000 of non-recurring revenue related to cancelled spectrum license and approximately 230,000 more in political revenue. As such, excluding these items, our second quarter revenue would have increased 8.7%.Now digging deeper, on a pro forma basis, revenue for the quarter increased 2.4% and same station revenue increased 2.7%. Overall, second quarter same station spot advertising increased 2% and our solid same station growth was again led by our national team with national spot revenue increasing almost 10% for the quarter. As such, we outperformed revenue guidance provided at the time we reported during the first quarter call on both an actual and same station date basis.In addition, we continued to make progress with our digital growth initiative as digital revenues accounted for 7.4% of total revenue, and this is up from 6.5% in the year ago second quarter. Our strategic accretive acquisitions and margin focus enabled us to increase reported second quarter SOI by 7.5%. We also increased pro forma SOI by 0.9% and same station SOI increased 1.9%. So, just to recap here, actual, pro forma, same station, revenue and SOI increased across the board.While the integration of XTU has been seamless,…

Thanks Caroline. I'll start with a review of the second quarter, and then, I will review our balance sheet. Second quarter net revenue increased 6.5% or $4 million to $65.7 million and we saw year-over-year net revenue increases in our Boston, New Jersey and Philadelphia clusters, while net revenue at our remaining clusters was comparable to the levels in second quarter of 2018.As Caroline mentioned, the year-over-year comparison was impacted by approximately $1.2 million of non-recurring revenue, including USTN, which would have been equivalent to an additional 2% growth in net revenue for the quarter.Station operating expenses for the quarter rose 6.2% to 47.8 million, mostly related to the addition of WXTU, the Celtics and Bruins playoff games in Boston and other strategic growth initiatives. As a result, the 6.5% increase in net revenue generated a 7.5% increase in station operating income to 17.9 million.Looking at our revenue categories for second quarter on an actual basis, consumer services remained our largest revenue category, representing just over 25% of our revenue and we generated almost a 17% year-over-year increase in this category during the quarter. Our consumer services category includes advertisers such as medical, dental, construction, insurance, real estate, education and other service-oriented businesses.Our second largest category in the quarter was retail, which represents 18% of our revenue and the retail category was up 5%. Entertainment was our third largest category for the quarter, and here we generated a 6% year-over-year revenue increase. Auto, our fourth largest revenue category, representing about 12% of our revenue was down 1%.The Top 4 categories accounted for approximately 69% of our total second quarter net revenue and the combined net revenue from the Top 4 categories increased 3% in second quarter 2019 over second quarter 2018 on a same station basis. Also, on a same…

Okay. Thank you, Marie. As we’ve discussed, we are in the midst of aggressively rolling out a digital expansion and transformation across the company. And during the second quarter, we continued our investment in the development and diversification of our digital platform. I’m going to break it out in several different areas.In terms of technology, in the second quarter, we launched 62 new websites for our brands that are designed to deepen audience engagement with our brand and our advertisers. Our new website technology is integrated with the Beasley experience engine joining our mobile apps and giving Beasley much deeper visibility into our audience, while giving our audience a greatly enhanced user experience.Development has also been completed on our next generation of Amazon and Google Smart speaker skills, bringing our brands to the Google platform. The new skills began to roll-out in late July and will continue through third quarter.In terms of sales, during the first half of the year, we developed and deployed digital support teams strategically throughout the organization to help our local markets with all aspects of digital sales execution, including lead generation, custom presentation, proposal development, campaign activation, optimization reporting, and final campaign recap report. These teams have been very well received by both advertisers and by our internal teams.We've made developing custom digital marketing solutions as turnkey and efficient as possible and we are seeing the results to prove it both in terms of better campaign renewal rates, as well as increased revenue across the market where we have coverage today. And I'm happy to report that we saw a 16% increase in digital revenue year-over-year, and digital revenue has grown from, as I mentioned earlier, 6.5% of total revenue a year ago to 7.4% of total revenue in the current quarter, and this of…

Thanks, Caroline. We’ve got a few questions. The first question is – we’ve got a question about our revenue share in our Top 5 market, can you speak a little bit about that?

Sure. As a reminder to everyone, 30% revenue share is our goal. Outside the Top 5 markets that we have, we do you have several smaller markets that are well in excess of 30% market revenue share. Boston, in Charlotte, and Philly are around the 30% revenue share mark, and then, we have Detroit, Tampa and Vegas, and they are currently in the 20 – in the 20s in terms of revenue share. Detroit, we’re very excited about. We do have the ability to add one more station in that market and we’re actually excited about Tampa and Vegas as we see potential upside in all three of these markets in order to achieve the 30% market revenue share that we believe we’ll be able to achieve.

Thanks, Caroline. Another question was if you could give an update on ownership rules?

Okay. So, really not much to say here other than because of litigation we are not expecting a decision until the first half of next year, and that's when we should take in [both].

Great, thanks. We also got a question on CapEx and when we expect CapEx to normalize and also can we break out the CapEx between investment and maintenance?So, our maintenance CapEx is typically around $4 million to $5 million per year. The investment CapEx this year will likely be somewhere between $3 million and $4 million, and that is due a lot to the Philadelphia studio build-out and also several other projects that we are working on. At this point, we expect our CapEx to normalize back to maintenance level towards sometime in 2021.The next question was if we could mention the political revenue growth in second half of 2019?So, for the political revenue, net revenue in the second half of 2018 was approximately 4 million and we don't really expect to see much political in the second half of 2019 until we move closer into 2020.Another question is, if we could remind or state to where we expect our leverage to be at the end of the year?And as we have been vocal about in the past, we always try to get to around four times, that is our goal.And then, I think that was it. Okay, that was it, alright.

Great. Well, thank you all for joining us today and should you have any further questions please feel free to reach out to Marie or myself. Have a great day.