Good morning and welcome to Beasley Broadcast Group's Third 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 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 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, Ann and good morning, everyone, thank you for joining us to review our 2018 third quarter results. As we previously announced, during the quarter we began to operate XTU under an LMA and then we subsequently closed on the acquisition on September 27. After nearly four year hiatus, we are thrilled to welcome XTU back into the Beasley family, and our Philadelphia staff is excited as well as they are working actively to integrate this Heritage Country Station into their cluster, thus strengthening our already strong position and revenue share in the Philadelphia market. Reflecting our recent strategic initiative in the Q3 outperformance of our revenue in our markets, we grew third quarter revenue by 10.6%. Now let me do a quick rundown of the quarter highlights after which Marie will provide more detail on the quarter. As a reminder, reported results represent actual results and reflect the operations and results from [indiscernible] Boston which is the market leading sports stations in the three and nine months ended September '18, and the divested WMJX FM in Boston in the three and nine months ended September '17. The results also reflect approximately two months of contributions from XTU in the three and nine months ended September '18 and four months of contributions from Coastal Carolina in the nine months ended September '17. So starting with our third quarter results; as I said, we outperformed total revenue on a combined basis when combined with our market, and we benefited from our new stations in Boston and Philly, as well as year-over-year net revenue increases in five of our clusters. Station operating expenses rose during the quarter as a direct result of the XTU acquisition, the operations at Beasley [ph] and a charge of approximately $1.7 million due to the financial…

Thanks, Caroline. Let's start with a review of the third quarter operating results and then I will review some balance sheet items. Third quarter and net revenue increased 10.6% or $6.2 million to $65.1 million as we saw increases in net revenue on a year-over-year basis in five our clusters. Station operating expenses for the quarter rose 18.5% to $50.4 million resulting in a 9.9% decrease in station operating income to $14.8 million compared to $16.4 million in the year ago period. The increase in station operating expenses reflects the Boston asset swap, the addition of WXPU inclusive of $0.9 million of LMA fees and $1.7 million charge due to the financial issues at United States Traffic Network. Excluding the USTN charge, our expenses would have increased 14.4% and our SOI would be 0.7% up. Looking at our revenue categories on an actual basis; consumer services remained our largest revenue category in third quarter '18 representing about 20% of our revenue and we generated a mid-20% year-over-year revenue increase in this category during the quarter. Our consumer services category includes advertisers such as medical, dental, construction, insurance and real estate. Our second largest category in third quarter was retail which was down low-to- mid single-digits. Entertainment was our third largest category for the quarter which also showed a mid-20% year-over-year revenue increase while auto, our fourth largest revenue category was up in the mid-single digit range. And we are seeing improvements in national revenues as we are performing national on a combined basis. Corporate G&A decreased by $190,000 during the quarter to $3.4 million. In addition, non-cash stock-based compensation decreased $84,000 for the quarter to $457,000 and we paid approximately $7,000 in cash taxes for the quarter and 273,000 year-to-date. Reported third quarter 2018 operating income was approximately $2.7 million…

Thanks, Marie. Looking ahead, actual Q4 revenue is pacing up double-digits as October rose double-digits in November and December are pacing up as well. And again, this is actual, we're going to go into same station in a few minutes during Q&A. With respect to political, we had approximately $1.2 million in political in the first nine months of the year and we expect total political advertising to reach just north of $3 million for the year. We're very excited about our Esports content acquisition and it's future potential looking into '19. As many of you are aware, this is a space that is in it's infancy, and as radio leader in this area we look forward to offering more exciting and engaging content. In closing, it's important for all of us in the industry to hammer-home the fact that radio remains the number one reach medium in the U.S. We outreach broadcast and cable TV and digital for advertisers, and we provide audiences great and in many cases original content. These factors allow our stations to build local connections and now coupled with the attribution technology available today, we're able to demonstrate to advertisers and brand radio's unique effectiveness in reaching audiences of all ages and demographics on a highly targeted and cost effective spaces. As such we remain hyper-focused on driving ratings and revenue share in our existing markets towards or over our goal of 30% of title [ph] market revenue, or like sending our brands across multiple platforms. We also remain committed to reducing our leverage ratios by through growth and latest trailing 12-month consolidated operating cash flow and voluntary prepayments. We saw our leverage increase slightly with the XTU acquisition, and we're very mindful of bringing this down within a short period of time. We're managing our capital structure and we continue to return capital to shareholders as we just paid our 20th consecutive quarterly cash dividends. We also expect to continue to act on strategic opportunities to increase our scale, diversify our revenue and grow our free cash flow with a long-term point of view. And so on behalf of our corporate and stationed personnel, thank you for participating. And with that, I'm going to turn it over to Marie; she has a number of questions to ask and answer.

We have received several questions; and the first question for Caroline is how was the core advertising in first quarter on the same station basis, ex-political?

Core advertising ex-political on a same station basis was down approximately 3%, with political it was down approximately 2% on a same station basis.

How is core pacing in fourth quarter?

So core pacing ex-political is currently pacing up on a low single-digit basis for same station.

Also, how is political tracking relative to 2014? I will take that. So the political revenue in 2014 which was another non-election year was approximately $1.2 million. We expect our political to finish in 2018 just north of $3 million which is a little bit above our initial expectations. Another question is, how dependent are you on auto and talk about auto in the next year? So auto on a natural basis was our fourth largest category in third quarter, and it was up as we discussed earlier. And looking into 2019, at a very early stage, Auto is pacing up and it is pacing to be our third largest category. Another question is, where does your leverage stand today? And how do you think about 2019? So our net leverage for third quarter as we discussed was 4.62x. We're very focused on continuing to delevering in fourth quarter and also into 2019; and we're going to do that by continuing to pay down debt focused on growing our revenues and also managing our expenses. Another question is, if we can review the USTN financial issue and help to invoice [ph] our exposure to them. And should we expect anymore loses in fourth quarter?

Right. So USTN we did a write-down of $1.7 million, that was our complete exposure to USTN. There should be no further write-downs for that.

And what is your options for the USTN Government stalwart's [ph]?

So for us I just want to say that we in the past used multiple vendors so we didn't put all of our eggs in one basket which was the reason that we only had $1.7 million write-down. We are working with CATS [ph] currently on reselling some of this inventory and we are also monetizing some of this inventory in-house as well.

And if you have any additional questions, we will be happy to answer those after the earnings call and please feel free to call either Caroline or myself.

Alright. Well, thank you again for participating. And as always, as Marie said, feel free to call.

This does conclude today's conference. We thank you for your participation. You may now disconnect.