EX-99.1 2 ex991.htm EX-99.1 ex991.htm
EXHIBIT 99.1
 
 

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS
FOURTH QUARTER AND YEAR END 2009 RESULTS

 
 
SANTA MONICA, CALIFORNIA, March 4, 2010 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2009.

Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data).  The results of our outdoor operations are presented in discontinued operations within the statements of operations in accordance with FASB Accounting Standards Codification (ASC) 360, “Impairment or Disposal of Long-Lived Assets”.  This press release contains certain non-GAAP financial measures as defined by SEC Regulation G.  The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure, is included beginning on page 7.  Unaudited financial highlights are as follows:
 

   
Three Months Ended
          
Twelve Months Ended
        
   
December 31,
          
December 31,
        
   
2009
    
2008
    
% Change
    
2009
    
2008
    
% Change
  
Net revenue
   $ 48,066     $ 52,762       (9 )%   $ 189,231     $ 232,335       (19 )%
Operating expenses (1)
     30,149       35,226       (14 )%     122,180       144,510       (15 )%
Corporate expenses (2)
     4,316       4,414       (2 )%     14,918       17,117       (13 )%
                                                 
Consolidated adjusted EBITDA (3)
     15,005       13,948       8 %     55,312       74,104       (25 )%
                                                 
Free cash flow (4)
   $ 4,780     $ 3,532       35 %   $ 13,956     $ 26,572       (47 )%
Free cash flow per share, basic and diluted (4)
   $ 0.06     $ 0.04       50 %   $ 0.17     $ 0.29       (41 )%
                                                 
Loss from continuing operations
   $ (52,023 )   $ (134,126 )     (61 )%   $ (67,671 )   $ (484,007 )     (86 )%
Net loss applicable to common stockholders
   $ (52,023 )   $ (136,483 )     (62 )%   $ (67,671 )   $ (487,937 )     (86 )%
                                                 
Net loss per share from continuing operations
                                                
applicable to common stockholders, basic and diluted
   $ (0.62 )   $ (1.56 )     (60 )%   $ (0.81 )   $ (5.34 )     (85 )%
Net loss per share applicable
                                                
to common stockholders, basic and diluted
   $ (0.62 )   $ (1.58 )     (61 )%   $ (0.81 )   $ (5.39 )     (85 )%
                                                 
Weighted average common shares outstanding, basic
     83,745,069       86,185,661               83,972,709       90,560,685          
Weighted average common shares outstanding, diluted
     83,745,069       86,185,661               83,972,709       90,560,685          

(1)
Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.9 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended December 31, 2009 and 2008, respectively and $2.0 million and $1.4 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2009 and 2008, respectively. Operating expenses do not include corporate expenses, depreciation and amortization, impairment charge, gain (loss) on sale of assets and gain (loss) on debt extinguishment.
(2)
Corporate expenses include $0.9 million and $0.5 million of non-cash stock-based compensation for the three-month periods ended December 31, 2009 and 2008, respectively and $2.0 million and $1.9 million of non-cash stock-based compensation for the twelve-month periods ended December 31, 2009 and 2008, respectively.
(3)
Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, gain (loss) on debt extinguishment, loss from discontinued operations, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization less syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our syndicated bank credit facility and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, gain (loss) on debt extinguishment, loss from discontinued operations, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization and does include syndication programming payments. While many in the financial community and we consider consolidated adjusted EBITDA to be important, it should be considered in addition to, but not as a substitute for or superior to, other measures of liquidity and financial performance prepared in accordance with accounting principles generally accepted in the United States of America, such as cash flows from operating activities, operating income and net income.  As consolidated adjusted EBITDA excludes non-cash gain (loss) on sale of assets, non-cash depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation expense, net interest expense, gain (loss) on debt extinguishment, loss from discontinued operations, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate and syndication programming amortization and includes syndication programming payments, consolidated adjusted EBITDA has certain limitations because it excludes and includes several important non-cash financial line items. Therefore, we consider both non-GAAP and GAAP measures when evaluating our business.  Consolidated adjusted EBITDA is also used to make executive compensation decisions.
(4)
Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense and capital expenditures. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, less interest income less the change in the fair value of our interest rate swaps. Free cash flow per share is defined as free cash flow divided by the basic or diluted weighted average common shares outstanding.
 
 
 
 
Entravision Communications
Page  2 of 8
 
   
 
    Commenting on the Company's earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During 2009, we were confronted with a significant advertising downturn, both in television and radio, primarily as a result of the global financial crisis and recession. Nevertheless, our audience shares remained strong in the nation’s most densely populated Hispanic markets. Although EBITDA declined for the full year 2009 compared to 2008, our focus on managing costs and maximizing cash flows were factors in increasing our EBITDA for the fourth quarter of 2009. Additionally, we anticipate that retransmission consent revenue will continue to be a growing source of revenue, along with advertising revenue from World Cup and political activity during 2010."
 
Impairment of Radio Segment Intangibles

    The Company recorded an impairment charge of $48 million related to radio FCC broadcasting licenses. The write-down was pursuant to ASC 350, which requires that goodwill and certain intangible assets be tested for impairment at least annually, or more frequently if events or changes in circumstances indicate the assets might be impaired.
 

Financial Results

    Cautionary Note Regarding Preliminary Quarterly Results

    In connection with the preparation of our financial statements for the three- and twelve-month periods ended December 31, 2009, we are currently in the process of finalizing the provision for income taxes, which we intend to complete in time to permit a timely filing of our annual report for the period ended December 31, 2009.
 
Three Months Ended December 31, 2009 Compared to Three Months Ended December 31, 2008
(Unaudited)

     Three Months Ended    
      December 31,
 
  
   
2009
    
2008
    
% Change
Net revenue
   $ 48,066     $ 52,762       (9 )%
Operating expenses (1)
     30,149       35,226       (14 )%
Corporate expenses (1)
     4,316       4,414       (2 )%
Depreciation and amortization
     5,140       6,227       (17 )%
Impairment charge
     47,928       170,436       (72 )%
                         
Operating loss
     (39,467 )     (163,541 )     (76 )%
Interest expense, net
     (6,115 )     (14,943 )     (59 )%
Gain on debt extinguishment
     -       9,813    
NM
                         
Loss before income taxes
     (45,582 )     (168,671 )     (73 )%
                         
Income tax (expense) benefit
     (6,371 )     34,538       NM  
Net loss before equity in net income (loss) of
                        
nonconsolidated affiliates and discontinued operations
     (51,953 )     (134,133 )     (61 )%
Equity in net income (loss) of nonconsolidated affiliates
     (70 )     7    
NM
                         
Net loss before discontinued operations
     (52,023 )     (134,126 )     (61 )%
Loss from discontinued operations, net of tax
     -       (2,357 )  
NM
                         
Net loss
   $ (52,023 )   $ (136,483 )     (62 )%
 
    (1)  Operating expenses and corporate expenses are defined on page 1.

 
 
 
Entravision Communications
Page  3 of 8

    Net revenue decreased to $48.1 million for the three-month period ended December 31, 2009 from $52.8 million for the three-month period ended December 31, 2008, a decrease of $4.7 million. Of the overall decrease, $3.7 million came from our radio segment and was primarily attributable to a decrease in local and national advertising rates, which in turn was primarily due to the weak economy. Additionally, $1.0 million of the overall decrease came from our television segment and was primarily attributable to a decrease in local and national advertising rates, which in turn was primarily due to the weak economy, partially offset by an increase in retransmission consent revenue in the amount of $2.2 million.

    Operating expenses decreased to $30.1 million for the three-month period ended December 31, 2009 from $35.2 million for the three-month period ended December 31, 2008, a decrease of $5.1 million. The decrease was primarily attributable to decreases in expenses associated with the decrease in net revenue and salary expense due to reductions of personnel and salary reductions.

    Corporate expenses decreased to $4.3 million for the three-month period ended December 31, 2009 from $4.4 million for the three-month period ended December 31, 2008, a decrease of $0.1 million. The decrease was primarily attributable to the decrease in professional fees and salary expense due to salary reductions, partially offset by an increase in non-cash stock based compensation of $0.4 million.

 
Twelve Months Ended December 31, 2009 Compared to Twelve Months Ended December 31, 2008
(Unaudited)
 
   
Twelve Months Ended
  
   
December 31,
  
   
2009
    
2008
    
% Change
  
Net revenue
   $ 189,231     $ 232,335       (19 )%
Operating expenses (1)
     122,180       144,510       (15 )%
Corporate expenses (1)
     14,918       17,117       (13 )%
Depreciation and amortization
     21,033       23,412       (10 )%
Impairment charge
     50,648       610,456       (92 )%
                         
Operating loss
     (19,548 )     (563,160 )     (97 )%
Interest expense, net
     (27,489 )     (41,199 )     (33 )%
Gain (loss) on debt extinguishment
     (4,716 )     9,813    
NM
  
                         
Loss before income taxes
     (51,753 )     (594,546 )     (91 )%
                         
Income tax (expense) benefit
     (15,682 )     110,705    
NM
  
Net loss before equity in net loss of
                        
nonconsolidated affiliates and discontinued operations
     (67,435 )     (483,841 )     (86 )%
Equity in net loss of nonconsolidated affiliates
     (236 )     (166 )     42 %
                         
Net loss before discontinued operations
     (67,671 )     (484,007 )     (86 )%
Loss from discontinued operations, net of tax
     -       (3,930 )  
NM
  
                         
Net loss
   $ (67,671 )   $ (487,937 )     (86 )%
  
(1)  Operating expenses and corporate expenses are defined on page 1.

    Net revenue decreased to $189.2 million for the twelve-month period ended December 31, 2009 from $232.3 million for the twelve-month period ended December 31, 2008, a decrease of $43.1 million. Of the overall decrease, $21.6 million came from our radio segment and was primarily attributable to a decrease in local and national advertising sales and advertising rates, which in turn was primarily due to the weak economy. Additionally, $21.5 million of the overall decrease came from our television segment and was primarily attributable to a decrease in local and national advertising rates, which in turn was primarily due to the weak economy, partially offset by an increase in retransmission consent revenue in the amount of $9.5 million.
 
 
 
 
Entravision Communications
Page  4 of 8
 
    Operating expenses decreased to $122.2 million for the twelve-month period ended December 31, 2009 from $144.5 million for the twelve-month period ended December 31, 2008, a decrease of $22.3 million. The decrease was primarily attributable to decreases in expenses associated with the decrease in net revenue and salary expense due to reductions of personnel and salary reductions.

    Corporate expenses decreased to $14.9 million for the twelve-month period ended December 31, 2009 from $17.1 million for the twelve-month period ended December 31, 2008, a decrease of $2.2 million. The decrease was primarily attributable to a decrease in professional fees and salary expense due to salary reductions.


Segment Results

    The following represents selected unaudited segment information:
 
    Three Months Ended    
   
December 31,
 
  
   
2009
    
2008
    
% Change
  
Net Revenue
                  
Television
   $ 32,400     $ 33,410       (3 )%
Radio
     15,666       19,352       (19 )%
Total
   $ 48,066     $ 52,762       (9 )%
                         
Operating Expenses (1)
                        
Television
   $ 17,640     $ 21,082       (16 )%
Radio
     12,509       14,144       (12 )%
Total
   $ 30,149     $ 35,226       (14 )%
                         
Corporate Expenses (1)
   $ 4,316     $ 4,414       (2 )%
                         
Consolidated adjusted EBITDA (1)
   $ 15,005     $ 13,948       8 %
 
(1)      Operating expenses, Corporate expenses, and Consolidated adjusted EBITDA are defined on page 1.

    Entravision Communications Corporation will hold a conference call to discuss its 2009 fourth quarter results on March 4, 2010 at 5 p.m. Eastern Time.  To access the conference call, please dial 412-858-4600 ten minutes prior to the start time.  The call will be webcast live and archived for replay at www.entravision.com.

    Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television and radio operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico.  Entravision owns and/or operates 53 primary television stations and is the largest affiliate group of both the top-ranked Univision television network and Univision’s TeleFutura network, with television stations in 20 of the nation’s top 50 Hispanic markets.  The Company also operates one of the nation’s largest groups of primarily Spanish-language radio stations, consisting of 48 owned and operated radio stations.  Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC.

    This press release contains certain forward-looking statements.  These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release.  Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company’s filings with the Securities and Exchange Commission.

# # #
(Financial Table Follows)

For more information, please contact:

Christopher T. Young                                                                                Mike Smargiassi/Christian Nery
Chief Financial Officer                                                                               Brainerd Communicators, Inc.
Entravision Communications Corporation                                             212-986-6667
310-447-3870

 
 
 
r
Entravision Communications
Page  5 of 8
Entravision Communications Corporation
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)
 
   
Three-Month Period
    
Twelve-Month Period
  
   
Ended December 31,
    
Ended December 31,
  
     2009      2008      2009      2008  
                         
Net revenue
   $ 48,066     $ 52,762     $ 189,231     $ 232,335  
                                 
Expenses:
                                
Direct operating expenses
     20,212       24,543       83,902       100,801  
Selling, general and administrative expenses
     9,937       10,683       38,278       43,709  
Corporate expenses
     4,316       4,414       14,918       17,117  
Depreciation and amortization
     5,140       6,227       21,033       23,412  
Impairment charge
     47,928       170,436       50,648       610,456  
      87,533       216,303       208,779       795,495  
Operating loss
     (39,467 )     (163,541 )     (19,548 )     (563,160 )
Interest expense
     (6,186 )     (15,498 )     (27,948 )     (43,093 )
Interest income
     71       555       459       1,894  
Gain (loss) on debt extinguishment
     -       9,813       (4,716 )     9,813  
Loss before income taxes
     (45,582 )     (168,671 )     (51,753 )     (594,546 )
Income tax (expense) benefit
     (6,371 )     34,538       (15,682 )     110,705  
Loss before equity in net income (loss) of
                               
nonconsolidated affiliate and discontinued operations
     (51,953 )     (134,133 )     (67,435 )     (483,841 )
Equity in net income (loss) of nonconsolidated affiliate
     (70 )     7       (236 )     (166 )
Loss from continuing operations
     (52,023 )     (134,126 )     (67,671 )     (484,007 )
Loss from discontinued operations, net of tax
     -       (2,357 )     -       (3,930 )
Net loss applicable to common stockholders
   $ (52,023 )   $ (136,483 )   $ (67,671 )   $ (487,937 )
                                 
Basic and diluted earnings per share:
                                
Loss per share from continuing operations applicable to
                                
common stockholders, basic and diluted
   $ (0.62 )   $ (1.56 )   $ (0.81 )   $ (5.34 )
Loss per share from discontinued operations, basic and diluted
   $ -     $ (0.03 )   $ -     $ (0.04 )
Net loss per share applicable to common stockholders,
                                
basic and diluted
   $ (0.62 )   $ (1.58 )   $ (0.81 )   $ (5.39 )
                                 
Weighted average common shares outstanding, basic
     83,745,069       86,185,661       83,972,709       90,560,685  
Weighted average common shares outstanding, diluted
     83,745,069       86,185,661       83,972,709       90,560,685  

 
 
 
Ent
Entravision Communications
Page  6 of 8


Entravision Communications Corporation
Consolidated Statements of Cash Flows
(Unaudited; in thousands)
 
               
Three-Month Period
    
Twelve-Month Period
               
Ended December 31,
    
Ended December 31,
               
2009
    
2008
    
2009
    
2008
                                   
Cash flows from operating activities:
                      
 
Net loss
$
 (52,023)
  
$
 (136,483)
  
$
 (67,671)
  
$
 (487,937)
 
Adjustments to reconcile net loss to net cash provided by operating activities:
                      
   
Depreciation and amortization
  
 5,140
   
 6,227
   
 21,033
   
 23,412
   
Impairment charge
    
 47,928
   
 170,436
   
 50,648
   
 610,456
   
Deferred income taxes
    
 6,714
   
 (34,653)
    
 15,248
   
 (112,190)
   
Amortization of debt issue costs
  
 104
   
 157
   
 402
   
 459
   
Amortization of syndication contracts
  
 292
   
 628
   
 1,981
   
 2,883
   
Payments on syndication contracts
  
 (717)
    
 (705)
    
 (2,836)
    
 (2,840)
   
Equity in net (income) loss of nonconsolidated affiliate
  
 70
   
 (7)
    
 236
   
 166
   
Non-cash stock-based compensation
  
 1,829
   
 903
   
 4,034
   
 3,353
   
Gain on sale of media properties and other assets
  
 (6)
    
 -   
    
 (108)
    
 -   
   
(Gain) loss on debt extinguishment
  
 -   
    
 (9,813)
    
 945
   
 (9,813)
   
Change in fair value of interest rate swap agreements
  
 (3,129)
    
 8,001
   
 (6,979)
    
 11,648
   
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
                      
     
Decrease in accounts receivable
  
 3,670
   
 7,508
   
 570
   
 11,156
     
(Increase) decrease in prepaid expenses and other assets
  
 137
   
 903
   
 (484)
    
 803
     
Increase (decrease) in accounts payable, accrued expenses and other liabilities
  
 (1,417)
    
 (2,860)
    
 1,770
   
 (6,065)
   
Effect of discontinued operations
  
 -   
    
 957
   
 -   
    
 (1,273)
       
Net cash provided by operating activities
  
 8,592
   
 11,199
   
 18,789
   
 44,218
Cash flows from investing activities:
                      
 
Proceeds from sale of property and equipment and intangibles
  
 8
   
 -   
    
 122
   
 101,498
 
Purchases of property and equipment and intangibles
  
 (1,758)
    
 (3,458)
    
 (10,965)
    
 (16,873)
 
Purchase of a business
    
 -   
    
 -   
    
 -   
    
 (22,885)
 
Deposits on acquisitions
    
 -   
    
 -   
    
 -   
    
 (200)
 
Effect of discontinued operations
  
 -   
    
 -   
    
 -   
    
 (194)
       
Net cash provided by (used in) investing activities
  
 (1,750)
    
 (3,458)
    
 (10,843)
    
 61,346
Cash flows from financing activities:
                      
 
Proceeds from issuance of common stock
  
 -   
    
 -   
    
 255
   
 785
 
Payments on long-term debt
    
 -   
    
 (56,666)
    
 (42,572)
    
 (67,702)
 
Repurchase of Class U common stock
  
 -   
    
 -   
    
 -   
    
 (10,380)
 
Repurchase of Class A common stock
  
 -   
    
 (4,299)
    
 (1,075)
    
 (50,837)
 
Excess tax benefits from exercise of stock options
  
 -   
    
 (56)
    
 -   
    
 (81)
 
Payments of deferred debt and offering costs
  
 -   
    
 -   
    
 (1,182)
    
 -   
       
Net cash used in financing activities
  
 -   
    
 (61,021)
    
 (44,574)
    
 (128,215)
       
Net increase (decrease) in cash and cash equivalents
  
 6,842
   
 (53,280)
    
 (36,628)
    
 (22,651)
Cash and cash equivalents:
                        
 
Beginning
        
 20,824
   
 117,574
   
 64,294
   
 86,945
 
Ending
        
$
 27,666
 
$
 64,294
 
$
 27,666
 
$
 64,294
 
 
 
 
 
Ent
Entravision Communications
Page  7 of 8


Entravision Communications Corporation
Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities
 (Unaudited; in thousands)

    The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:
 
                 
Three-Month Period
    
Twelve-Month Period
                 
Ended December 31,
    
Ended December 31,
                 
2009
    
2008
    
2009
    
2008
Consolidated adjusted EBITDA (1)
      
$
 15,005
 
$
 13,948
 
$
 55,312
 
$
 74,104
                                     
Interest expense
          
 (6,186)
    
 (15,498)
    
 (27,948)
    
 (43,093)
Interest income
            
 71
   
 555
   
 459
   
 1,894
Gain (loss) on debt extinguishment
        
 -
   
 9,813
   
 (4,716)
    
 9,813
Income tax (expense) benefit
        
 (6,371)
    
 34,538
   
 (15,682)
    
 110,705
Amortization of syndication contracts
        
 (292)
    
 (628)
    
 (1,981)
    
 (2,883)
Payments on syndication contracts
        
 717
   
 705
   
 2,836
   
 2,840
Non-cash stock-based compensation included in direct operating
                        
 
 expenses
            
 (365)
    
 (171)
    
 (854)
    
 (633)
Non-cash stock-based compensation included in selling, general
                       
 
and administrative expenses
        
 (524)
    
 (215)
    
 (1,142)
    
 (794)
Non-cash stock-based compensation included in corporate expenses
    
 (940)
    
 (517)
    
 (2,038)
    
 (1,926)
Depreciation and amortization
        
 (5,140)
    
 (6,227)
    
 (21,033)
    
 (23,412)
Impairment charge
          
 (47,928)
    
 (170,436)
    
 (50,648)
    
 (610,456)
Equity in net income (loss) of nonconsolidated affiliates
    
 (70)
    
 7
   
 (236)
    
 (166)
Loss from discontinued operations
        
 -
   
 (2,357)
    
 -
   
 (3,930)
Net loss
              
 (52,023)
    
 (136,483)
    
 (67,671)
    
 (487,937)
                                     
                                     
Depreciation and amortization
        
 5,140
   
 6,227
   
 21,033
   
 23,412
Impairment charge
          
 47,928
   
 170,436
   
 50,648
   
 610,456
Deferred income taxes
          
 6,714
   
 (34,653)
    
 15,248
   
 (112,190)
Amortization of debt issue costs
        
 104
   
 157
   
 402
   
 459
Amortization of syndication contracts
        
 292
   
 628
   
 1,981
   
 2,883
Payments on syndication contracts
        
 (717)
    
 (705)
    
 (2,836)
    
 (2,840)
Equity in net (income) loss of nonconsolidated affiliate
      
 70
   
 (7)
    
 236
   
 166
Non-cash stock-based compensation
        
 1,829
   
 903
   
 4,034
   
 3,353
Gain on sale of media properties and other assets
      
 (6)
    
 -
   
 (108)
    
 -
(Gain) loss on debt extinguishment
        
 -
   
 (9,813)
    
 945
   
 (9,813)
Change in fair value of interest rate swap agreements
      
 (3,129)
    
 8,001
   
 (6,979)
    
 11,648
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
                      
 
Decrease in accounts receivable
        
 3,670
   
 7,508
   
 570
   
 11,156
 
(Increase) decrease in prepaid expenses and other assets
    
 137
   
 903
   
 (484)
    
 803
 
Increase (decrease) in accounts payable, accrued expenses and other liabilities
  
 (1,417)
    
 (2,860)
    
 1,770
   
 (6,065)
Effect of discontinued operations
        
 -
   
 957
   
 -
   
 (1,273)
Cash flows from operating activities
      
$
 8,592
 
$
 11,199
 
$
 18,789
 
$
 44,218
 
(1) Consolidated adjusted EBITDA is defined on page 1.


 
 
 
Ent
Entravision Communications
Page  8 of 8
Entravision Communications Corporation
Reconciliation of Free Cash Flow to Net Loss
(Unaudited; in thousands)

    The most directly comparable GAAP financial measure is net loss. A reconciliation of this non-GAAP measure to net loss for each of the periods presented is as follows:
 
 
   
Three-Month Period
    
Twelve-Month Period
  
   
Ended December 31,
    
Ended December 31,
  
   
2009
    
2008
    
2009
    
2008
  
Consolidated adjusted EBITDA (1)
   $ 15,005     $ 13,948     $ 55,312     $ 74,104  
Net interest expense (1)
     9,140       6,787       34,066       29,093  
Cash paid for income taxes
     (343 )     171       434       1,566  
Capital expenditures (2)
     1,428       3,458       6,856       16,873  
Free cash flow (1)
     4,780       3,532       13,956       26,572  
                                 
Capital expenditures (2)
     1,428       3,458       6,856       16,873  
Non-cash interest (expense) income relating to amortization of debt
                                
finance costs and interest rate swap agreements
     3,025       (8,156 )     6,577       (12,106 )
Non-cash income tax (expense) benefit
     (6,714 )     34,709       (15,248 )     112,271  
Gain (loss) on debt extinguishment
     -       9,813       (4,716 )     9,813  
Amortization of syndication contracts
     (292 )     (628 )     (1,981 )     (2,883 )
Payments on syndication contracts
     717       705       2,836       2,840  
Non-cash stock-based compensation included in direct operating expenses
     (365 )     (171  )     (854 )     (633 )
Non-cash stock-based compensation included in selling, general and administrative expenses
     (524 )      (215 )      (1,142 )       (794 ) 
Non-cash stock-based compensation included in corporate expenses
     (940 )     (517 )     (2,038 )     (1,926 )
Depreciation and amortization
     (5,140 )     (6,227 )     (21,033 )     (23,412 )
Impairment charge
     (47,928 )     (170,436 )     (50,648 )     (610,456 )
Equity in net income (loss) of nonconsolidated affiliates
     (70 )     7       (236 )     (166 )
Loss from discontinued operations
     -       (2,357 )     -       (3,930 )
Net loss
   $ (52,023 )   $ (136,483 )   $ (67,671 )   $ (487,937 )
 (1)  
(1) Consolidated adjusted EBITDA, net interest expense and free cash flow are defined on page 1.
(2) Capital expenditures is not part of the consolidated statement of operations.