5. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The Company's Notes are guaranteed by all of the Company's existing and future wholly-owned domestic subsidiaries. All of the guarantees are full and unconditional and joint and several. None of the Company's foreign subsidiaries is a guarantor of the Notes.

Set forth below are consolidating financial statements related to the Company, its material guarantor subsidiary Entravision Holdings, LLC, and its non-guarantor subsidiaries. Consolidating balance sheets are presented as of March 31, 2012 and December 31, 2011 and the related consolidating statements of operations and cash flows are presented for the three-month periods ended March 31, 2012 and 2011. The equity method of accounting has been used by the Company to report its investment in subsidiaries.

Consolidating Balance Sheet

March 31, 2012

(In thousands)


	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	50,658		$	—		$	511	$	—		$	51,169
Trade receivables, net of allowance for doubtful accounts		40,673			—			516		—			41,189
Prepaid expenses and other current assets		6,139			—			226		—			6,365

Total current assets		97,470			—			1,253		—			98,723
Property and equipment, net		60,094			—			2,995		—			63,089
Intangible assets subject to amortization, net		23,676			—			—		—			23,676
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		169,635			—			—		(169,635	)		—
Other assets		10,783			—			12,589		(12,589	)		10,783

Total assets	$	436,050		$	178,262		$	21,531	$	(182,224	)	$	453,619

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Advances payable, related parties		118			—			—		—			118
Accounts payable and accrued expenses		38,055			—			896		(10,802	)		28,149

Total current liabilities		38,173			—			896		(10,802	)		28,267
Long-term debt, less current maturities		379,807			—			—		—			379,807
Other long-term liabilities		8,109			—			—		—			8,109
Deferred income taxes		13,656			29,262			—		(1,787	)		41,131

Total liabilities		439,745			29,262			896		(12,589	)		457,314

Stockholders' equity (deficit)
Class A common stock		5			—			—		—			5
Class B common stock		2			—			—		—			2
Class U common stock		1			—			—		—			1
Member's capital		—			804,654			12,652		(817,306	)		—
Additional paid-in capital		938,714			—			—		—			938,714
Accumulated deficit		(942,417	)		(655,654	)		7,983		647,671			(942,417	)

Total stockholders' equity (deficit)		(3,695	)		149,000			20,635		(169,635	)		(3,695	)

Total liabilities and stockholders' equity (deficit)	$	436,050		$	178,262		$	21,531	$	(182,224	)	$	453,619

Consolidating Balance Sheet

December 31, 2011

(In thousands)


	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	58,276		$	—		$	443		$	—		$	58,719
Trade receivables, net of allowance for doubtful accounts		43,951			—			319			—			44,270
Prepaid expenses and other current assets		5,678			—			261			—			5,939

Total current assets		107,905			—			1,023			—			108,928
Property and equipment, net		62,046			—			3,180			—			65,226
Intangible assets subject to amortization, net		24,598			—			—			—			24,598
Intangible assets not subject to amortization		38,739			178,262			3,700			—			220,701
Goodwill		35,653			—			994			—			36,647
Investment in subsidiaries		170,580			—			—			(170,580	)		—
Other assets		11,221			—			12,603			(12,603	)		11,221

Total assets	$	450,742		$	178,262		$	21,500		$	(183,183	)	$	467,321

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Advances payable, related parties	$	118		$	—		$	—		$	—		$	118
Accounts payable and accrued expenses		49,633			—			930			(10,813	)		39,750

Total current liabilities		49,751			—			930			(10,813	)		39,868
Long-term debt, less current maturities		379,662			—			—			—			379,662
Other long-term liabilities		8,327			—			—			—			8,327
Deferred income taxes		13,563			28,252			—			(1,790	)		40,025

Total liabilities		451,303			28,252			930			(12,603	)		467,882

Stockholders' equity (deficit)
Class A common stock		5			—			—			—			5
Class B common stock		2			—			—			—			2
Class U common stock		1			—			—			—			1
Member's capital		—			804,654			12,652			(817,306	)		—
Additional paid-in capital		938,453			—			—			—			938,453
Accumulated deficit		(939,022	)		(654,644	)		7,918			646,726			(939,022	)

Total stockholders' equity (deficit)		(561	)		150,010			20,570			(170,580	)		(561	)

Total liabilities and stockholders' equity (deficit)	$	450,742		$	178,262		$	21,500		$	(183,183	)	$	467,321


Consolidating Statement of Operations Three-Month Period Ended March 31, 2012 (In thousands)
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	45,949		$	—		$	846		$	(271	)	$	46,524

Expenses:
Direct operating expenses		21,520			—			385			(271	)		21,634
Selling, general and administrative expenses		9,245			—			127			—			9,372
Corporate expenses		3,881			—			—			—			3,881
Depreciation and amortization		4,161			—			186			—			4,347

		38,807			—			698			(271	)		39,234

Operating income (loss)		7,142			—			148			—			7,290
Interest expense		(9,100	)		—			—			—			(9,100	)
Interest income		4			—			—			—			4

Income (loss) before income taxes		(1,954	)		—			148			—			(1,806	)
Income tax benefit (expense)		(496	)		(1,010	)		(83	)		—			(1,589	)

Income (loss) before equity in net income (loss) of subsidiaries		(2,450	)		(1,010	)		65			—			(3,395	)
Equity in income (loss) of subsidiaries		(945	)		—			—			945			—

Net income (loss) applicable to common stockholders	$	(3,395	)	$	(1,010	)	$	65		$	945		$	(3,395	)

Consolidating Statement of Operations

Three-Month Period Ended March 31, 2011

(In thousands)


	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	43,833		$	—		$	843		$	(632	)	$	44,044

Expenses:
Direct operating expenses		21,099			—			354			(632	)		20,821
Selling, general and administrative expenses		9,115			—			128			—			9,243
Corporate expenses		3,745			—			—			—			3,745
Depreciation and amortization		4,527			—			205			—			4,732

		38,486			—			687			(632	)		38,541

Operating income (loss)		5,347			—			156			—			5,503
Interest expense		(9,443	)		—			—			—			(9,443	)
Interest income		2			—			—			—			2
Other income (loss)		687			—			—			—			687

Income (loss) before income taxes		(3,407	)		—			156			—			(3,251	)
Income tax benefit (expense)		(249	)		(844	)		(88	)		—			(1,181	)

Income (loss) before equity in net income (loss) of subsidiaries		(3,656	)		(844	)		68			—			(4,432	)
Equity in income (loss) of subsidiaries		(776	)		—			—			776			—

Net income (loss) applicable to common stockholders	$	(4,432	)	$	(844	)	$	68		$	776		$	(4,432	)

Consolidating Statement of Cash Flows

Three-Month Period Ended March 31, 2012

(In thousands)


	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	(3,395	)	$	(1,010	)	$	65		$	945		$	(3,395	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		4,161			—			186			—			4,347
Deferred income taxes		96			1,010			—			—			1,106
Amortization of debt issue costs		563			—			—			—			563
Amortization of syndication contracts		193			—			—			—			193
Payments on syndication contracts		(467	)		—			—			—			(467	)
Non-cash stock-based compensation		261			—			—			—			261
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		3,466			—			(197	)		—			3,269
(Increase) decrease in amounts due from related party		(11	)		—			11			—			—
(Increase) decrease in prepaid expenses and other assets		(682	)		—			38			—			(644	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(11,504	)		—			(35	)		—			(11,539	)

Net cash provided by (used in) operating activities		(7,319	)		—			68			945			(6,306	)

Cash flows from investing activities:
Investment in subsidiaries		945			—			—			(945	)		—
Purchases of property and equipment and intangibles		(1,164	)		—			—			—			(1,164	)

Net cash provided by (used in) investing activities		(219	)		—			—			(945	)		(1,164	)

Cash flows from financing activities:
Payments of deferred debt and offering costs		(80	)		—			—			—			(80	)

Net cash provided by (used in) financing activities		(80	)		—			—			—			(80	)

Net increase (decrease) in cash and cash equivalents		(7,618	)		—			68			—			(7,550	)
Cash and cash equivalents:
Beginning		58,276			—			443			—			58,719

Ending	$	50,658		$	—		$	511		$	—		$	51,169

Consolidating Statement of Cash Flows

Three-Month Period Ended March 31, 2011

(In thousands)


	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	(4,432	)	$	(844	)	$	68		$	776		$	(4,432	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		4,527			—			205			—			4,732
Deferred income taxes		(214	)		844			8			—			638
Amortization of debt issue costs		539			—			—			—			539
Amortization of syndication contracts		290			—			—			—			290
Payments on syndication contracts		(480	)		—			—			—			(480	)
Non-cash stock-based compensation		363			—			—			—			363
(Gain) loss on equity investment		(687	)		—			—			—			(687	)
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		6,655			—			152			—			6,807
(Increase) decrease in amounts due from related party		302			—			(302	)		—			—
(Increase) decrease in prepaid expenses and other assets		(586	)		—			(12	)		—			(598	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(10,497	)		—			(130	)		—			(10,627	)

Net cash provided by (used in) operating activities		(4,220	)		—			(11	)		776			(3,455	)

Cash flows from investing activities:
Investment in subsidiaries		776			—			—			(776	)		—
Purchase of a business		(348	)		—			—			—			(348	)
Purchases of property and equipment and intangibles		(2,505	)		—			(8	)		—			(2,513	)

Net cash provided by (used in) investing activities		(2,077	)		—			(8	)		(776	)		(2,861	)

Cash flows from financing activities:
Proceeds from issuance of common stock		27			—			—			—			27
Payments of deferred debt and offering costs		(29	)		—			—			—			(29	)

Net cash provided by (used in) financing activities		(2	)		—			—			—			(2	)

Net increase (decrease) in cash and cash equivalents		(6,299	)		—			(19	)		—			(6,318	)
Cash and cash equivalents:
Beginning		72,140			—			250			—			72,390

Ending	$	65,841		$	—		$	231		$	—		$	66,072