ex991.htm

ENTRAVISION COMMUNICATIONS CORPORATION REPORTS

THIRD QUARTER 2010 RESULTS

SANTA MONICA, CALIFORNIA, November 4, 2010 – Entravision Communications Corporation (NYSE: EVC) today reported financial results for the three- and nine-month periods ended September 30, 2010.

Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). 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 8. Unaudited financial highlights are as follows:

	Three-Month Period							Nine-Month Period
	Ended September 30,							Ended September 30,
	2010		2009		% Change			2010		2009			% Change
Net revenue	$	53,325	$	50,754		5	%	$	149,829	$	141,165			6	%
Operating expenses (1)		31,224		30,572		2	%		92,145		92,031			0	%
Corporate expenses (2)		3,823		3,351		14	%		11,048		10,602			4	%

Consolidated adjusted EBITDA (3)		18,444		17,268		7	%		46,938		40,307			16	%

Free cash flow (4)	$	8,109	$	5,058		60	%	$	12,643	$	9,176			38	%
Free cash flow per share, basic and diluted (4)	$	0.10	$	0.06		67	%	$	0.15	$	0.11			36	%

Net income (loss) applicable to common stockholders	$	6,408	$	673	NM			$	11,187	$	(15,648	)	NM

Net income (loss) per share applicable
to common stockholders, basic and diluted	$	0.08	$	0.01	NM			$	0.13	$	(0.19	)	NM

Weighted average common shares outstanding, basic		84,512,128		83,683,908					84,479,299		84,049,423
Weighted average common shares outstanding, diluted		85,089,605		83,935,319					85,215,491		84,049,423

(1)

Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.3 million and $0.4 million of non-cash stock-based compensation for the three-month periods ended September 30, 2010 and 2009, respectively and $0.8 million and $1.1 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2010 and 2009, 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 $0.4 million and $0.3 million of non-cash stock-based compensation for the three-month periods ended September 30, 2010 and 2009, respectively and $0.8 million and $1.1 million of non-cash stock-based compensation for the nine-month periods ended September 30, 2010 and 2009, respectively.

Entravision Communications

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(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, 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 revolving 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, 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, 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 non-cash interest expense relating to discount amortization on the Notes, less interest income and 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.

Commenting on the Company’s earnings results, Walter F. Ulloa, Chairman and Chief Executive Officer, said, “During the third quarter, we generated revenue growth primarily driven by retransmission consent revenue and World Cup and political advertising. Our audience shares remain strong in the nation's most densely populated Hispanic markets, and we believe we are well positioned to benefit as the U.S. Hispanic market continues to expand and advertisers increasingly recognize the importance of reaching our audience.”

Senior Secured Notes and Revolving Credit Facility

On July 27, 2010, the Company completed the offering and sale of $400,000,000 aggregate principal amount of its 8.75% Senior Secured First Lien Notes (the “Notes”). Net proceeds from the Notes were used to pay all indebtedness outstanding under the Company’s then-existing syndicated bank credit facility, pay fees and expenses related to the offering of the Notes and for general corporate purposes. Also on July 27, 2010, the Company entered into a new $50,000,000 revolving credit facility and terminated its then-existing syndicated bank credit facility.

These transactions are more fully described in the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on July 27, 2010.

Entravision Communications

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Financial Results

Three Months Ended September 30, 2010 Compared to Three Months Ended September 30, 2009

(Unaudited)

	Three-Month Period
	Ended September 30,
	2010			2009			% Change
Net revenue	$	53,325		$	50,754			5	%
Operating expenses (1)		31,224			30,572			2	%
Corporate expenses (1)		3,823			3,351			14	%
Depreciation and amortization		4,867			5,272			(8	)%

Operating income		13,411			11,559			16	%
Interest expense, net		(4,302	)		(8,157	)		(47	)%
Loss on debt extinguishment		(987	)		-			NM

Income before income taxes		8,122			3,402			139	%

Income tax expense		(1,764	)		(2,802	)		(37	)%
Net income before equity in net income of
nonconsolidated affiliates		6,358			600		NM
Equity in net income of nonconsolidated affiliates, net of tax		50			73			(32	)%

Net income	$	6,408		$	673		NM

(1) Operating expenses and corporate expenses are defined on page 1.

Net revenue increased to $53.3 million for the three-month period ended September 30, 2010 from $50.8 million for the three-month period ended September 30, 2009, an increase of $2.5 million. Of the overall increase, $2.3 million came from our television segment and was primarily attributable to retransmission consent revenue, advertising revenue from the World Cup and political advertising revenue. Additionally, $0.2 million of the overall increase came from our radio segment and was primarily attributable to advertising revenue from the World Cup and political advertising revenue.

Operating expenses increased to $31.2 million for the three-month period ended September 30, 2010 from $30.6 million for the three-month period ended September 30, 2009, an increase of $0.6 million. The increase was primarily attributable to an increase in national representation fees and other expenses associated with the increase in net revenue.

Corporate expenses increased to $3.8 million for the three-month period ended September 30, 2010 from $3.4 million for the three-month period ended September 30, 2009, an increase of $0.4 million. The increase was primarily attributable to expenses relating to the issuance of the Notes. Excluding the expenses relating to the issuance of the Notes, corporate expenses remained at $3.4 million for each of the three-month periods ended September 30, 2010 and 2009.

Entravision Commications

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Nine Months Ended September 30, 2010 Compared to Nine Months Ended September 30, 2009

(Unaudited)

	Nine-Month Period
	Ended September 30,
	2010			2009			% Change
Net revenue	$	149,829		$	141,165			6	%
Operating expenses (1)		92,145			92,031			0	%
Corporate expenses (1)		11,048			10,602			4	%
Depreciation and amortization		14,464			15,893			(9	)%
Impairment charge		-			2,720			(100	)%

Operating income		32,172			19,919			62	%
Interest expense, net		(14,912	)		(21,374	)		(30	)%
Loss on debt extinguishment		(987	)		(4,716	)		(79	)%

Income (loss) before income taxes		16,273			(6,171	)	NM

Income tax expense		(5,102	)		(9,311	)		(45	)%
Net income (loss) before equity in net income (loss) of
nonconsolidated affiliates		11,171			(15,482	)	NM
Equity in net income (loss) of nonconsolidated affiliates, net of tax		16			(166	)	NM

Net income (loss)	$	11,187		$	(15,648	)	NM

(1) Operating expenses and corporate expenses are defined on page 1.

Net revenue increased to $149.8 million for the nine-month period ended September 30, 2010 from $141.2 million for the nine-month period ended September 30, 2009, an increase of $8.6 million. Of the overall increase, $6.7 million came from our television segment and was primarily attributable to advertising revenue from the World Cup, retransmission consent revenue, and political advertising revenue. Additionally, $1.9 million of the overall increase came from our radio segment and was primarily attributable to advertising revenue from the World Cup, and political and census advertising revenue.

Operating expenses increased to $92.1 million for the nine-month period ended September 30, 2010 from $92.0 million for the nine-month period ended September 30, 2009, an increase of $0.1 million. The increase was primarily attributable to an increase in national representation fees and other expenses associated with the increase in net revenue, partially offset by a decrease in salary expense due to reductions of personnel and salary reductions implemented in 2009.

Corporate expenses increased to $11.0 million for the nine-month period ended September 30, 2010 from $10.6 million for the nine-month period ended September 30, 2009, an increase of $0.4 million. The increase was primarily attributable to expenses relating to the issuance of the Notes. Excluding the expenses relating to the issuance of the Notes, corporate expenses remained at $10.6 million for each of the nine-month periods ended September 30, 2010 and 2009.

Entravision Communications

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Segment Results

The following represents selected unaudited segment information:

	Three-Month Period
	Ended September 30,
	2010		2009		% Change
Net Revenue
Television	$	34,322	$	32,019		7	%
Radio		19,003		18,735		1	%
Total	$	53,325	$	50,754		5	%

Operating Expenses (1)
Television	$	18,041	$	17,601		2	%
Radio		13,183		12,971		2	%
Total	$	31,224	$	30,572		2	%

Corporate Expenses (1)	$	3,823	$	3,351		14	%

Consolidated adjusted EBITDA (1)	$	18,444	$	17,268		7	%

(1) Operating expenses, Corporate expenses, and Consolidated adjusted EBITDA are defined on page 1 and 2.

Entravision Communications Corporation will hold a conference call to discuss its 2010 third quarter results on November 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/Brad Edwards
Chief Financial Officer		Brainerd Communicators, Inc.
Entravision Communications Corporation		212-986-6667
310-447-3870

Entravision Communications

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Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009

Net revenue	$	53,325		$	50,754		$	149,829		$	141,165

Expenses:
Direct operating expenses		21,011			21,030			63,941			63,690
Selling, general and administrative expenses		10,213			9,542			28,204			28,341
Corporate expenses		3,823			3,351			11,048			10,602
Depreciation and amortization		4,867			5,272			14,464			15,893
Impairment charge		-			-			-			2,720
		39,914			39,195			117,657			121,246
Operating income		13,411			11,559			32,172			19,919
Interest expense		(4,394	)		(8,227	)		(15,171	)		(21,762	)
Interest income		92			70			259			388
Loss on debt extinguishment		(987	)		-			(987	)		(4,716	)
Income (loss) before income taxes		8,122			3,402			16,273			(6,171	)
Income tax expense		(1,764	)		(2,802	)		(5,102	)		(9,311	)
Income (loss) before equity in net income (loss) of
nonconsolidated affiliate		6,358			600			11,171			(15,482	)
Equity in net income (loss) of nonconsolidated affiliate, net of tax		50			73			16			(166	)
Net income (loss) applicable to common stockholders	$	6,408		$	673		$	11,187		$	(15,648	)

Basic and diluted earnings per share:
Net income (loss) per share applicable to common stockholders,
basic and diluted	$	0.08		$	0.01		$	0.13		$	(0.19	)


Weighted average common shares outstanding, basic		84,512,128			83,683,908			84,479,299			84,049,423
Weighted average common shares outstanding, diluted		85,089,605			83,935,319			85,215,491			84,049,423

Emtravision Communications

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Entravision Communications Corporation

Consolidated Statements of Cash Flows

(Unaudited; in thousands)

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009

Cash flows from operating activities:
Net income (loss)	$	6,408		$	673		$	11,187		$	(15,648	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		4,867			5,272			14,464			15,893
Impairment charge		-			-			-			2,720
Deferred income taxes		1,587			2,548			4,214			8,534
Amortization of debt issue costs		487			104			695			298
Amortization of syndication contracts		290			441			840			1,689
Payments on syndication contracts		(732	)		(706	)		(2,141	)		(2,119	)
Equity in net (income) loss of nonconsolidated affiliate		(50	)		(73	)		(16	)		166
Non-cash stock-based compensation		608			702			1,603			2,205
Gain on sale of media properties and other assets		-			-			-			(102	)
Non-cash expenses related to debt extinguishment		934			-			934			945
Change in fair value of interest rate swap agreements		(4,135	)		(1,314	)		(12,188	)		(3,850	)
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
Increase in restricted cash		(1,023	)		-			(1,023	)		-
(Increase) decrease in accounts receivable		1,765			(1,828	)		(1,860	)		(3,100	)
Increase in prepaid expenses and other assets		(474	)		(810	)		(426	)		(621	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(2,691	)		1,085			760			3,187
Net cash provided by operating activities		7,841			6,094			17,043			10,197
Cash flows from investing activities:
Proceeds from sale of property and equipment and intangibles		-			-			-			114
Purchases of property and equipment and intangibles		(1,033	)		(2,589	)		(7,078	)		(9,207	)
Net cash used in investing activities		(1,033	)		(2,589	)		(7,078	)		(9,093	)
Cash flows from financing activities:
Proceeds from issuance of common stock		14			53			233			255
Payments on long-term debt		(358,491	)		(1,572	)		(362,949	)		(42,572	)
Termination of swap agreements		(4,039	)		-			(4,039	)		-
Repurchase of Class A common stock		-			-			-			(1,075	)
Proceeds from borrowings on long-term debt		394,888			-			394,888			-
Payments of deferred debt and offering costs		(9,691	)		-			(10,554	)		(1,182	)
Net cash provided by (used in) financing activities		22,681			(1,519	)		17,579			(44,574	)
Net increase (decrease) in cash and cash equivalents		29,489			1,986			27,544			(43,470	)
Cash and cash equivalents:
Beginning		25,721			18,838			27,666			64,294
Ending	$	55,210		$	20,824		$	55,210		$	20,824

Entravision Comjmunications

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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						Nine-Month Period
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009

Consolidated adjusted EBITDA (1)	$	18,444		$	17,268		$	46,938		$	40,307

Interest expense		(4,394	)		(8,227	)		(15,171	)		(21,762	)
Interest income		92			70			259			388
Loss on debt extinguishment		(987	)		-			(987	)		(4,716	)
Income tax expense		(1,764	)		(2,802	)		(5,102	)		(9,311	)
Amortization of syndication contracts		(290	)		(441	)		(840	)		(1,689	)
Payments on syndication contracts		732			706			2,141			2,119
Non-cash stock-based compensation included in direct operating
expenses		(104	)		(159	)		(312	)		(489	)
Non-cash stock-based compensation included in selling, general
and administrative expenses		(147	)		(204	)		(442	)		(618	)
Non-cash stock-based compensation included in corporate expenses		(357	)		(339	)		(849	)		(1,098	)
Depreciation and amortization		(4,867	)		(5,272	)		(14,464	)		(15,893	)
Impairment charge		-			-			-			(2,720	)
Equity in net income (loss) of nonconsolidated affiliates		50			73			16			(166	)
Net income (loss)		6,408			673			11,187			(15,648	)

Depreciation and amortization		4,867			5,272			14,464			15,893
Impairment charge		-			-			-			2,720
Deferred income taxes		1,587			2,548			4,214			8,534
Amortization of debt issue costs		487			104			695			298
Amortization of syndication contracts		290			441			840			1,689
Payments on syndication contracts		(732	)		(706	)		(2,141	)		(2,119	)
Equity in net (income) loss of nonconsolidated affiliate		(50	)		(73	)		(16	)		166
Non-cash stock-based compensation		608			702			1,603			2,205
Gain on sale of media properties and other assets		-			-			-			(102	)
Non-cash expenses related to debt extinguishment		934			-			934			945
Change in fair value of interest rate swap agreements		(4,135	)		(1,314	)		(12,188	)		(3,850	)
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
Increase in restricted cash		(1,023	)		-			(1,023	)		-
(Increase) decrease in accounts receivable		1,765			(1,828	)		(1,860	)		(3,100	)
Increase in prepaid expenses and other assets		(474	)		(810	)		(426	)		(621	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(2,691	)		1,085			760			3,187
Cash flows from operating activities	$	7,841		$	6,094		$	17,043		$	10,197

(1) Consolidated adjusted EBITDA is defined on page 2.

Entravision Communications

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Entravision Communications Corporation

Reconciliation of Free Cash Flow to Net Income (Loss)

(Unaudited; in thousands)

The most directly comparable GAAP financial measure is net income (loss). A reconciliation of this non-GAAP measure to net income (loss) for each of the periods presented is as follows:

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009
Consolidated adjusted EBITDA (1)	$	18,444		$	17,268		$	46,938		$	40,307
Net interest expense (1)		9,125			9,367			27,579			24,926
Cash paid for income taxes		177			254			888			777
Capital expenditures (2)		1,033			2,589			5,828			5,428
Free cash flow (1)		8,109			5,058			12,643			9,176

Capital expenditures (2)		1,033			2,589			5,828			5,428
Non-cash interest expense relating to amortization of debt
finance costs and interest rate swap agreements		4,823			1,210			12,667			3,552
Loss on debt extinguishment		(987	)		-			(987	)		(4,716	)
Non-cash income tax (expense) benefit		(1,587	)		(2,548	)		(4,214	)		(8,534	)
Amortization of syndication contracts		(290	)		(441	)		(840	)		(1,689	)
Payments on syndication contracts		732			706			2,141			2,119
Non-cash stock-based compensation included in direct operating
expenses		(104	)		(159	)		(312	)		(489	)
Non-cash stock-based compensation included in selling, general
and administrative expenses		(147	)		(204	)		(442	)		(618	)
Non-cash stock-based compensation included in corporate expenses		(357	)		(339	)		(849	)		(1,098	)
Depreciation and amortization		(4,867	)		(5,272	)		(14,464	)		(15,893	)
Impairment charge		-			-			-			(2,720	)
Equity in net income (loss) of nonconsolidated affiliates		50			73			16			(166	)
Net income (loss)	$	6,408		$	673		$	11,187		$	(15,648	)

(1) Consolidated adjusted EBITDA, net interest expense and free cash flow are defined on page 1 and 2.

(2) Capital expenditures is not part of the consolidated statement of operations.