Greetings, and welcome to the Professional Diversity Network's Third Quarter 2015 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation [Operator Instructions]. As a reminder, this conference is being recorded. I would like to remind listeners that during the call certain information presented contains forward-looking statements. These statements are based on Management's current expectations and are subject to risks, uncertainties and assumptions, potential risks and uncertainties that could cause the Company's business and financial results to differ materially from these forward-looking statements are described in the Company's periodic reports filed with the SEC from time-to-time. All information discussed on this call is as of today, November 16, 2015, and Professional Diversity Network does not intend and undertakes no duty to update future events or circumstances. It is now my pleasure to introduce your host, Jim Kirsch, CEO. Thank you, Mr. Kirsch. You may begin.

Thank you. Good afternoon and thank you for joining us. This is Jim Kirsch, Chairman and Chief Executive Officer of Professional Diversity Network. With me today are Star Jones, our President, David Mecklenburger, our Chief Financial Officer, Chris Wesser, our General Counsel, Kim Brown, our Communications Director and Jorge Perez, our Executive Vice President. I am going to begin this call by talking about hitting our stride, especially with regard to what we have accomplished in the month of September. Star will talk a bit about the business and David Mecklenburger will review some financial details. In the month of September, we took a big step forward by achieving our previously stated cost savings goals. It was our best single month from an unaudited EBITDA perspective since we came public in March 2013. We were nearly breakeven on an adjusted EBITDA basis for all of our business units. We have eliminated certain expenses related to marketing in personnel to achieve near-EBITDA breakeven, with gross profit margins of 84%. Our strategic plan is to be positioned to achieve profitability and begin a growth cycle. All three of our products sectors are now at or near adjusted EBITDA breakeven. In doing this, we hit a major milestone and our plan to cross over into profitability is within sight. We trimmed the fat and adjusted the course to position the Company for highly profitable long-term growth. Our plan for the combined businesses of NAPW, PDN and Noble Voice is to create synergies. These synergies will be achieved on both, the cost and revenue sides of the combined businesses. At first, we thought that we could cut $3 million to $4 million out of the combined annual expenses of our business units and reach profitability in early 2016. As it turned out that we…

Thank you, Jim. Good afternoon. This is Star Jones, President of Professional Diversity Network. At this time, I would like to talk a little bit about each of our business groups and how we are creating value for our members, clients and shareholders. First I am going to talk about NAPW. NAPW is our largest business unit with 850,000 members. Jim touched on engagement as a key to delivering value and I would like to comment further on that point. We have given a lot of thought to how to engage and this led to the launch of our first e-chapter, a virtual online networking chapter in the third quarter. The e-chapter brings a new dimension to networking. It is a live online event. It is interactive and it does not take a lot of time. In just one hour, our e-chapter also allows member to a geographically separated to make a connection that might not otherwise be able to make. When we launched the e-chapter, we knew it was a good idea, but we did not know what to expect. It turned out that the e-chapter was very well received so much so that we now have over 7,000 opt-in members and we will be rolling out the new regional and professionally-oriented e-chapter groups in 2016. The online e-chapter may ultimately cross over with our local chapters. Our members have always had the opportunity to participate locally through live, in-person events. Now, they can also join electronic chapters that are specific to members' interest and profession. With members from different local chapters being connected in a new way, we now have the opportunity to connect our over 200 local chapters to one another through common members and ultimately expand value of a networking opportunity. Since we do have over…

Thank you, Star. This is David Mecklenburger. I am going to comment on a few financial highlights and then we can open up the floor for questions. In the third quarter revenue was $9.3 million. That was up 493% over the year ago quarter. We were down just a bit from Q2, but that was baked into our plan to streamline the business. It is important to understand that when we set out to combine the Professional Diversity Network, the National Association of Professional Women and Noble Voice groups, we knew that we had to rationalize both, the revenue and expense lines to reach our margin and profitability targets. Right now, we are where we need to be. As Jim said, we are hitting our stride. Our gross margin was 84% in the third quarter. It has been running 84% to 85% range since the beginning of 2015, when we began operating as a combined Company. It is well above the 73% gross margin in the comparable quarter of last year, which speaks to the fact that are combined business is greater than the sum of its parts. The high gross margin provides significant operating leverage and also bodes well for our future profitability. We spend a lot of time bringing the cost in line in with revenue and we were very close to adjusted EBITDA breakeven in the month of September. As it might not be apparent from the reported results, I would like to highlight our adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that we feel helps in interpreting or financial results given the size and range of some of our non-cash adjustments. Our adjusted EBITDA deficit in third quarter was just about $900,000 after adjusting for non-cash goodwill impairment charges and tax allowances. That is…

Thank you. At this time, we will conduct a question and answer session. [Operator Instructions] Our first question comes from Andrew D'Silva with Merriman Capital. Please proceed with your question.

Hi. It is Brian Murphy in for Andrew. Just have a few questions to relay here. First question relates to the headcount. Can you give us a sense for how much your headcount has dropped since you began the cost reduction initiatives?

David, I can take that. On our three business lines, we have been refining headcount in order to maximize the profitability of the business and focusing on the most actively producing sales reps. The rate reduction on the recruitment side went from 24 to 20 to 16 that is Q1, Q2, Q3. Q3 being 16. In our Noble Voice business, we have adjusted that business from 343 to 260 to 214. On the NAPW side, we have gone from 121 to 117 to 89 in the third quarter.

Okay. Great. The second question relates to seasonality. Since the business combination, how should we think about that how will you know, for instance, fourth quarter seasonality be different if at all?

Traditionally, fourth quarter seasonality as it is reflected in the three business lines flows as follows. The NAPW business is rather stable with December being slightly softer, due to the holiday period. Noble Voice traditionally is pretty much stable and PDN usually has a strongest quarter. The recruitment business is usually the strongest in the fourth quarter, so I would say slightly down at NAPW on the trending basis quarter-over-quarter for a seasonality-neutral at Noble Voice and accelerated it at the recruitment business.

Okay. Great. That is a great color. Finally, Jim you went into quite a bit of detail on your sales force enablement initiatives. I was wondering if you could characterize the state of that the sales force right now. Is this sort of and 80-20 rule over there or you have sort of a relatively small percentage of sales reps handling at disproportionate amount of the revenue or is it more evenly distributed and sort of where is that trending?

Sure. Obviously, I think it is important to note that we could have generated more revenue with lower profitability, so if we were looking just to scale, we certainly could have done that. What we have chosen to do is, focus on those resources who are doing well and accelerating. What that has resulted in is having a team in place of high performers, most if not all of the lower performing reps are no longer with the business. While we do have fewer reps, the best reps are still with us and we are seeing more productivity per rep. Especially on the NAPW side, we are seeing an increase in rep productivity increasing in the third quarter and going into the fourth quarter.

Okay. Thanks very much.

Thank you.

[Operator Instructions] At this time, I would like to turn the floor back over to Management for closing comments. Also, the Management Team will be available for questions after the call and/or day tomorrow.

Thank you very much, operator. Thank you all for joining the call today. It did not seem there was a lot of questions just the one, but I want to make sure I reiterate what the operator said. We will be available for your questions as we always are, after the call today and tomorrow and throughout the week. We thank you very much for joining the call today. We look forward to your follow-up questions this week. Thanks very much. Have a good day.

Thank you. This does conclude today's teleconference. You may disconnect at this time. Have a great day.