Good morning and welcome to Beasley Broadcast Group's First 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 Item 10 of 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 like to 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.

Robin, thank you, and good morning, everyone. Thank you for joining us to review our first quarter operating results. I'll review several quarterly highlights after which I'll handed it over to Marie, who is going to provide your more additional details on the quarter. But looking at our first quarter, we increased revenue by 4.6% on a year-over-year basis. As with last quarter, the revenue growth was broad based, and was driven by our Augusta, Boston, Philly, Tampa and Wilmington clusters. It is also driven by the September 18 acquisition of XTU and last year's acquisition of the event company in Tampa. First quarter was also a busy quarter of our Boston cluster which includes 98.5 to Sports Hub as the New England Patriot won the Super Bowl which we all know, which contributed to the year-over-year increase in the quarter. As reviewed before and as widely reported in the industry, we discontinued our relationship with USTN in 2018. However, in last year's first quarter, we realized approximately $825,000 USTN traffic revenue and of course we did not have that revenue this year. As such excluding that revenue our net revenue would have increased 6.2%. On a pro forma basis revenue for the quarter was essentially flat. Overall, our pro forma's spot revenue increased year-over-year by 1%. And this was led by our national team with national increasing double digits for the quarter. So kudos to our national team, our national rep and everyone who participated in that increase. Our revenue performance was consistent with the Q1 guidance we provided in February, both on an actual and pro forma basis. Our portfolio moves and margin focus enabled us to increase reported first quarter SOI by 6.2%. While the integration of XTU is exceeding our internal projections, we did see a…

Thanks, Caroline. I will now review first quarter results and our balance sheet. So first quarter net revenue increased 4.6 or $2.5 million to $57.7 million and we saw year-over-year net revenue increases in our Augusta, Boston, Tampa Philadelphia and Wilmington clusters. And as Caroline mentioned, the year-over-year comparison was impacted by approximately $826,000 of USTN revenue in first quarter 2018, would have been equivalent to an additional 1.5% growth in net revenue of first quarter 2019. Station operating expenses with a quarter rose 4.3% to $47.5 million and it's mostly related to the addition of WXTU and our digital content and other strategic growth initiatives. As a result the 4.6% rise in net revenue generated a 6.2% increase in station operating income to $10.1 million. Looking at our revenue categories for first quarter on an actual basis, consumer services remained our largest revenue category representing about 26% of our revenue, and we generated almost a 6% year-over-year revenue increase in these categories during the quarter. Our consumer services category includes advertisers such as medical, dental, construction, insurance, real estate and education. Our second largest category in first quarter was retail which was up 8%; entertainment was our third largest category for the quarter with a 1% year-over-year revenue increase, and auto; our fourth largest revenue categories was also up 1%. These top four categories account for approximately 70% of our total net revenue. And in aggregate net revenue from the top four categories was up 4% in first quarter 2019 over first quarter 2018. On the same station basis, consumer services increased 2.5%, retail was up 3%; entertainment was down 1.5% and auto was down 3%. Corporate G&A expenses for the quarter increased $1.7 million compared to the same quarter a year ago to $5.0 million. While the increase…

Thank you, Marie. And continuing our focus on growing and leveraging our core local audio operations to diversify our revenue streams, I'll provide an update on our initiatives where we have invested to expand our platform to set the stage for future growth. As we've previously reviewed, we are in the midst of aggressively rolling out a digital expansion and transformation across the company. We're working hard to diversify our business platforms and revenue streams to further participate in consumer and advertiser preferences, given the short-term impact this transition is having on our reported free cash flow, it's important to share our vision and initiative that we believe will strengthen and diversify the company and create new long-term shareholder value. So the first driver of this effort is content marketing monetization as we seek to leverage our live and local DNA across all of our digital platforms, while increasing efficiencies by maximizing resources, minimizing redundancies and delivering excellence across every digital platform. For the first part of the year, our focus has been on introducing our national content team. This new team of format focused and credential digital editors hit the ground running in late January, and were trained and in place to cover major Q events. Today, this group generates about 11% of the company's digital traffic, and we anticipate this to accelerate now that the new team is fully on boarded and publishing nationally relevant content designed to reinforce our leadership position in our markets across the music industry, and in the pop culture universe. A second strategic initiative is expanding our local market commitment to digital content excellence. We are in the midst of expanding our live and local coverage, harnessing the influential connections that our on-air talent enjoys with their audiences and extending this far more…

[Operator Instructions]

That's right. Thanks Caroline. Yes, we have received several questions. And the majority of those questions have been answered within this call today. We will review a few questions that have not been addressed yet. So the first question I will address is what were your best and worst performing categories? So by percentage-wise and also by dollar-wise, the best performing category was not one of our top four categories, rather it was their fast food. Now the worst performing categories by percentages was beverages and also consumer products, which were down about the same percentage wise and dollar wise, we were-- our worst performing category was consumer products.

Second question is what is the impact of USTN in second quarter?

So as Caroline and I both reviewed, our USTN impact for first quarter was $826,000. For second quarter, it was $675,000. Again, I will remind you that the total impact for Beasley was approximately $1.7 million. And this was all written off in third quarter.

Another question is how should we think about margins in the Esports segments?

Yes, so let me just say that for Esports, podcasting and our digital content initiative combined, Marie has outlined before the total expense expected impact for the year. And based on that we review, we believe that these initiatives and reviewing them at startups will have about a 1% to 2% impact on our margins.

Right and the final question is that you had mention in your release about your digital content. Can you give us a little bit more information on that?

Sure. So after our remarks, I think that we went into a lot of detail about our digital content initiative. And we're very excited about where we're going especially based on the initial results. And in addition to that, digital content accounts for about 30% of our digital revenue. So we're basically fishing where the fish are and we see that there's great opportunity to grow revenue in this area. End of Q&A

Great then that's all the questions we have.

All right. Well, everyone thank you very much. And if you have any questions, please feel free to call Marie or myself. Thank you.

Thank you.