Ladies and gentlemen, thank you for standing by. Welcome to the Saga Communications Second Quarter Earnings Call. [Operator Instructions]. And as a reminder, this conference is being recorded. I'd now like to turn the conference over to President and CEO, Ed Christian. Please go ahead.

Thank you, and good morning, and Sam is here. And as usual and has been our practice for so, so many years, Sam starts off. It has been a while. This call will contain forward-looking statements about our future performance and results of operations that involve risks and uncertainties that are described in the Risk Factors section of our most recent Form 10-K. This call will also contain a discussion of certain non-GAAP financial measures. Reconciliation for all the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the selected financial data table. First, as you look at this quarter, and this was the case for the first quarter and will be the case for the third quarter, keep in mind that for the comparable periods in 2017, we have reported the financial performance of the television stations that we sold on September 1, 2017, as income from discontinued operations net of tax. This is important to note when you compare the net income, free cash flow and diluted earnings per share information. We also acquired the stations in Charleston and Hilton Head, South Carolina as of the same date. Now to the numbers. For the quarter, our net revenue increased 6.5% on an as-reported basis and was basically flat on a same-station basis. Operating income increased 2.7% and station operating expense increased to 8% on an as-reported basis. On a same-station basis, operating income increased 1.5% and station operating expense decreased 1%. Free cash flow from continuing operations increased $1.2 million to $6 million. For the six month period, our net revenue increased 6.8% on an as-reported basis and was basically flat on a same-station basis. Operating income increased 6.4% and station operating expense increased 8.8% on an as-reported basis. On a same-station basis, operating…

Sam, you sounded like a guy on the commercials for the lease rates in cars who does the speed we're getting at the end. Good grief.

Maybe I need to learn to reel.

Come on, slowdown, boy. All right. Come on, let me go. All right, I thought you did an excellent job as usual in summing up our Q2. We're at 128 quarters since the start of Saga without any quarters of losses. As you've said, $57 million paid in dividends and $54 million of stock repurchased. Over twice amount of cash versus our debt on hand, not a bad story at all. We have no second (inaudible) radio stations if you need focus and attention, and we're working diligently on making the subtle necessary changes. Let's spend a few minutes on some bigger issues in the future. Acquisitions comes up usually in some of the questions, we'll see if we get Sam and tell me what the questions are, if there are any. And so let's spend a few minutes and discuss through something. Sam and I spent the last quarter evaluating four opportunities that we've discovered. Three, we visited with the owners or manager, and one, we discarded directly as its structure was not as envisioned. Of the remaining 3, 2 of them are ongoing discussions. And interesting opportunities presented - for those of you on the call, we'll voice it for you, you know that we do not purchase bunch of radio stations at one time. Every acquisition has been evaluated using our criteria and reviewing local metrics and analysis, that's how we get to where we are. There is not rapid and dangerous growth, and there is no assurance that we have that to even the deals we're working at now will come a fruition, but it is our job to find ways to grow the company in a measured sense with quality products and stations that we bring online. So we are continuing to do that, and…

We had a couple of questions came in that we've already answered. The one question that came in, and it's an easy answer and a hard answer at the same time is the question that comes up a lot of times about what are we seeing out there in the way of deals relative to multiples and are we seeing multiples on deals going up or down relative to what's out there in the market today.

Oh, gosh. That's really a question that has no answer, and I say that because a lot of times we're in multiple issues, and then you have to break it down into small markets and maybe markets and larger markets. Small markets supposedly could have a smaller - I'd say, well, 5.5x of the small markets or 6x. Here, I can show you some small market radio stations that are tremendous in terms of their efficiency and conversion and in terms of profitability. Then I can also show you some that no matter what the value is, it would have a difficult time selling it. People are quoting a 7.5x, but that again is how do you determine cash flow, how do you look at that? We have - we kind of have a way of looking and say, "what do we expect our investments to provide as a return to us?" And when you look at it in different metrics, and people go, huh? Well, what multiple are you paying? It's - what does the station return? And what is that - if we were investing in something else, how does it look? Is it better than we could do in markets? Is it better than we could do that we're in our own environment? What is the growth potential? When you look at it, you want to take some. For us, we could pay certainly more than 7.5x based on what the station is or we could certainly pay less. I don't think you're seeing in the last several years, the quote trade multiple or industry multiple has been holding about the same or hasn't been in any decrease in that, and we think the industry's underpriced or undervalued. Wasn't all that long ago, back in the battle days of 2007, that we were seeing multiples of 13 every day for stations, 12 as a normal multiple, 13, some are even a little bit higher than that. During '08, '09, there was probably just a dearth of - there was no trading going on at that point in time, because nobody knew what was going to go on or happen to it. If somebody said to me, what is a hard number for the multiples. I would say that it's probably the average of what's been going on. They're certainly not moving up in this industry, and the industry has the challenge to make them move up and can do so by certain things to increase the appreciative value, when I say that, I'm talking about from an investor point of view of what the radio industry is. It's the old thing right now, we don't get any respect. Well, we have to. You earn respect, and that's one of the things we need to concentrate on now. Is that too long an answer? I think it is.

I thought that was a good answer.

Okay. I'm pretty well done, I guess.

No, I think with that, we can turn it back over to you and allow you to wrap up the call for us.

Certainly. Thank you, all. That does conclude our conference for today. Thank you for your participation and for using AT&T Teleconference. You may now disconnect.