Good morning, and welcome to the Beasley Broadcast Group’s Third 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 risks 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 of Regulation S-K. A reconciliation of these non-GAAP measures with their most direct comparable financial measures calculated and presented in accordance with GAAP can be found in the morning’s news announcements and on the Company’s website.I would also remind listeners that following the 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 now like to turn the conference over to your host of Beasley’s Broadcast Group’s CEO, Caroline Beasley. Please go ahead.

Thank you, and good morning, everyone. Thank you for joining us for our third quarter operating results. I’ll first review several quarterly highlights and then hand it over to our CFO, Marie Tedesco, who will provide some more color on the quarter.So, let me begin by reviewing the accretive and deleveraging acquisition of DMK in Detroit, which we completed on August 31st. The total purchase price was $13.5 million and was funded by a combination of debt and cash on hand. The addition of DMK and the three translators to our broadcast portfolio is complementary to our three existing radio stations and digital operations in the Detroit market. Consistent with Beasley’s disciplined approach to growing our platform, the acquisition of DMK is immediately accretive to free cash flow and will contribute approximately $2.6 million in pro forma station operating income and this includes synergies, while moving us closer to our goal of achieving 30% revenue share in the market. The integration over the last 8 weeks has been as expected. And as such, we look forward to realizing the full financial and strategic benefits of this transaction in 2020.Now, looking at the quarter. Revenue increased by 1.5% on a year-over-year basis to $66.1 million, driven by our Boston, Charlotte, Detroit, Fayetteville, Philly and Wilmington clusters.Looking closer at the year-over-year revenue comparison, in last year’s third quarter, we recorded approximately 240,000 of non-recurring USTN traffic revenue and 300,000 of non-recurring revenue related to a cancelled spectrum license. In addition Q3 ‘19 revenue levels were impacted by a $375,000 decline in political revenue from $700,000 in prior year. As such, excluding the combined $915,000 of revenue related to these items, our 3Q ‘19 net revenue would have grown 2.9%.Now, on a same station basis and not adjusting for the non-recurring revenue items…

Thanks, Caroline. Let me start with the review of the third quarter results, and then I will review our balance sheet.Third quarter net revenue increased 1.5% or $968,000 to $66.1 million, and we saw year-over-year net increases in our Boston, Charlotte, Detroit, Fayetteville, Philadelphia and Wilmington clusters with net revenue at our remaining clusters comparable to the levels in third quarter ‘18.As Caroline mentioned, the year-over-year comparison was impacted by approximately $240,000 of USTN revenue in third quarter ‘18, $300,000 of non-recurring spectrum revenue and approximately $375,000 of non-recurring political revenue, which combined would be equivalent to an additional 1.4% growth in net revenue for the quarter.Station operating expenses for the quarter decreased 1.8% to $49.4 million, mostly related to the non-recurring $1.7 million write-off of USTN that occurred in third quarter ‘18, which was partially offset by operating expenses from the Philadelphia and -- WXTU Philadelphia and WDMK Detroit acquisitions.As a result, the 1.5 increase in net revenue led to a 12.7% increase in station operating income to $16.7 million on an actual basis.Looking at our revenue categories for third quarter on an actual basis. Consumer services remained our largest revenue category representing around 26% of our revenue. And we generated a 12% year-over-year revenue increase in this category during the quarter.Our consumer services category includes advertisers such as medical, dental, construction, insurance, and other service oriented businesses. Our second largest category in third quarter was retail, which represents almost 16% of our revenue, and the retail category was up 1.5%. Entertainment was a third largest category for the quarter, and we were flat year-over-year. Auto, our fourth largest revenue category, representing about 13% of our revenue was down around 5%.The top four categories accounted for approximately 69% of our total third quarter net revenue. On the same station…

Thank you, Marie. As we discussed, we are in the midst of aggressively rolling out a digital expansion and transformation across the Company. And during the third quarter, we continued our investment in the development and diversification of our digital platform. After an extensive search we identified and hired Todd Handy to fill the newly created position of Chief Digital Officer. Handy has been at the forefront of the digital media space for more than a decade, having spent six years in local media, responsible for sales, advertising strategy and products ad operations and analytics, programmatic sales and native advertising. He also led publisher development, implementation and customer success for an ad tech studio startup and worked with blue chip digital pure plays and display, audio, video, mobile, performance marketing and retargeting and affiliate sales. And with Todd’s background and digital expertise, our digital team will be that much stronger and we expect to see the benefit going into 2020.The development of our digital support teams continue to be in progress. This team will help in developing custom marketing, solutions as turnkey and efficient as possible including lead generation, custom presentations, proposal development, campaign activation, optimization, recording and final campaign recap reports. These themes have been very well received by both advertisers and by our internal teams. And we're seeing increased renewal rates, due to highly performing campaigns and increased digital revenue. So, to reiterate, I'm happy to report that we saw an almost 37% increase in digital revenue year-over-year in the third quarter, and a 22.5% increase in digital revenue on a year-to-date basis.Our commitment to growing content and audiences within our digital space continues in full force as well. Specific content editors are now in place and are continuously creating new, relevant and exciting content. We're also in…

Yes. Thanks, Caroline. So, we received a few -- or handful of questions. Now, most of them have already been addressed except for a few. And so, I'm going to dive right into them. First question is, can you, Caroline, provide some color on our digital segment’s EBITDA and whether that is cash flow positive?

Sure, yes. I mean, definitely, the digital segment EBITDA, and we're not reporting in segments but the digital EBITDA is cash flow positive. And we’re looking at margin in the 30 plus percent range. We're very excited about this area. And as I just mentioned earlier, we just hired Todd Handy to come on board. And we're looking for even higher increases next year in our digital revenues than what we reported in third quarter.

Second question is, please, can you please provide some color on our M&A strategy going forward?

Yes. So for M&A, I mean, we are -- I would like to break it into three buckets. We have our core business of radio, and we will look at any potential strategic acquisitions that make sense for our Company. In addition to that, we're looking at growing our digital and eSports area. And because we see these two areas as providing significant increase and long-term value for our Company and also near-term revenue growth for our Company.

And the final question is, does our leverage target remain at 4 times by year-end? And the answer is, yes, 4 times is our target and has been our target, and we expect to get closer to that by the year-end, from both organic growth and from additional debt repayments. And that concludes our questions.

Okay, great. So, again, thank you all for participating on the call. And should you have any questions, please feel free to reach out to Marie or myself. Hope you all have a great day.

Thank you, ladies and gentlemen. This concludes today's presentation. You may now disconnect.