10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(MARK ONE)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2012

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM              TO             

COMMISSION FILE NUMBER 1-15997

ENTRAVISION COMMUNICATIONS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	95-4783236
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2425 Olympic Boulevard, Suite 6000 West

Santa Monica, California 90404

(Address of principal executive offices) (Zip Code)

(310) 447-3870

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of August 1, 2012, there were 54,404,226 shares, $0.0001 par value per share, of the registrant’s Class A common stock outstanding, 22,188,161 shares, $0.0001 par value per share, of the registrant’s Class B common stock outstanding and 9,352,729 shares, $0.0001 par value per share, of the registrant’s Class U common stock outstanding.

ENTRAVISION COMMUNICATIONS CORPORATION

FORM 10-Q FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2012

TABLE OF CONTENTS

		Page Number
PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS		4
	CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2012 (UNAUDITED) AND DECEMBER 31, 2011		4
	CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2012 AND JUNE 30, 2011		5
	CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2012 AND JUNE 30, 2011		6
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)		7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		17
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		28
ITEM 4.	CONTROLS AND PROCEDURES		28
PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS		29
ITEM 1A.	RISK FACTORS		29
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		29
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES		29
ITEM 4.	MINE SAFETY DISCLOSURES		29
ITEM 5.	OTHER INFORMATION		29
ITEM 6.	EXHIBITS		29

1

Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements may include the words “may,” “could,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report. Except for our ongoing obligation to disclose material information as required by the federal securities laws, we do not intend, and undertake no obligation, to update any forward-looking statement.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. Some of the key factors impacting these risks and uncertainties include, but are not limited to:

• risks related to our history of operating losses, our substantial indebtedness or our ability to raise capital;

• provisions of our debt instruments, including the indenture governing our $364 million aggregate principal amount of 8.750% senior secured first lien notes due 2017, or the Notes, and the amended agreement governing the current credit facility that we entered into in July 2010, or our 2010 Credit Facility, which restrict certain aspects of the operation of our business;

• our continued compliance with all of our obligations, including financial covenants and ratios, under the indenture governing the Notes, or the Indenture, and the amended agreement governing our 2010 Credit Facility, or the amended Credit Agreement;

• cancellations or reductions of advertising due to the current economic environment or otherwise;

• advertising rates remaining constant or decreasing;

• the impact of rigorous competition in Spanish-language media and in the advertising industry generally;

• the impact on our business, if any, as a result of changes in the way market share is measured by third parties;

• our relationship with Univision Communications Inc., or Univision;

• the extent to which we continue to generate revenue under retransmission consent agreements;

• subject to restrictions contained in the Indenture and the amended Credit Agreement, the overall success of our acquisition strategy, which historically has included developing media clusters in key U.S. Hispanic markets, and the integration of any acquired assets with our existing business;

• industry-wide market factors and regulatory and other developments affecting our operations;

• continued uncertainty in the current economic environment;

• the impact of previous and any future impairment of our assets;

• risks related to changes in accounting interpretations; and

• the impact, including additional costs, of mandates and other obligations that may be imposed upon us as a result of the passage of new federal healthcare laws.

2

For a detailed description of these and other factors that could cause actual results to differ materially from those expressed in any forward-looking statement, please see the section entitled “Risk Factors,” beginning on page 26 of our Annual Report on Form 10-K for the year ended December 31, 2011.

3

PART I

FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

ENTRAVISION COMMUNICATIONS CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	June 30,			December 31,
	2012			2011
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	40,757		$	58,719
Trade receivables, net of allowance for doubtful accounts of $4,286 and $3,926 (including related parties of $8,914 and $5,608)		48,306			44,270
Prepaid expenses and other current assets (including related parties of $274 and $274)		5,697			5,939
Total current assets		94,760			108,928
Property and equipment, net		61,923			65,226
Intangible assets subject to amortization, net (including related parties of $22,039 and $23,513)		23,067			24,598
Intangible assets not subject to amortization		220,701			220,701
Goodwill		36,647			36,647
Other assets		9,845			11,221
Total assets	$	446,943		$	467,321
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Advances payable, related parties		118			118
Accounts payable and accrued expenses (including related parties of $3,891 and $5,691)		37,466			39,750
Total current liabilities		37,584			39,868
Long-term debt, less current maturities (net of bond discount of $3,641 and $4,134)		360,155			379,662
Other long-term liabilities		7,666			8,327
Deferred income taxes		42,430			40,025
Total liabilities		447,835			467,882
Commitments and contingencies (note 4)
Stockholders’ equity (deficit)
Class A common stock, $0.0001 par value, 260,000,000 shares authorized; shares issued and outstanding 2012 54,354,226; 2011 53,514,769		5			5
Class B common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2012 and 2011 22,188,161		2			2
Class U common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2012 and 2011 9,352,729		1			1
Additional paid-in capital		939,451			938,453
Accumulated deficit		(940,351	)		(939,022	)
Total stockholders’ equity (deficit)		(892	)		(561	)
Total liabilities and stockholders’ equity (deficit)	$	446,943		$	467,321

See Notes to Consolidated Financial Statements

4

ENTRAVISION COMMUNICATIONS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except share and per share data)

	Three-Month Period						Six-Month Period
	Ended June 30,						Ended June 30,
	2012			2011			2012			2011
Net revenue	$	54,491		$	50,265		$	101,015		$	94,309
Expenses:
Direct operating expenses (including related parties of $2,461, $1,815, $4,705 and $3,519) (including non-cash stock-based compensation of $43, $53, $56 and $104)		22,876			22,487			44,510			43,308
Selling, general and administrative expenses (including non-cash stock-based compensation of $215, $159, $324 and $315)		9,635			9,286			19,007			18,529
Corporate expenses (including non-cash stock-based compensation of $479, $289, $618 and $445)		4,181			3,772			8,062			7,517
Depreciation and amortization (includes direct operating of $3,076, $3,352, $6,217 and $6,678; selling, general and administrative of $720, $798, $1,437 and $1,619; and corporate of $280, $275, $769 and $860) (including related parties of $580, $627, $1,473 and $1,520)		4,076			4,425			8,423			9,157
		40,768			39,970			80,002			78,511
Operating income (loss)		13,723			10,295			21,013			15,798
Interest expense (including related parties of $0, $15, $0 and $30) (note 2)		(8,959	)		(9,459	)		(18,059	)		(18,902	)
Interest income		9			—			13			2
Other income (loss)		—			—			—			687
Gain (loss) on debt extinguishment		(1,230	)		—			(1,230	)		—
Income (loss) before income taxes		3,543			836			1,737			(2,415	)
Income tax (expense) benefit		(1,477	)		(1,188	)		(3,066	)		(2,369	)
Net income (loss) applicable to common stockholders	$	2,066		$	(352	)	$	(1,329	)	$	(4,784	)
Basic and diluted earnings per share:
Net income (loss) per share applicable to common stockholders, basic and diluted	$	0.02		$	0.00		$	(0.02	)	$	(0.06	)
Weighted average common shares outstanding, basic		85,837,846			85,053,417			85,821,963			85,046,396
Weighted average common shares outstanding, diluted		86,178,331			85,053,417			85,821,963			85,046,396

See Notes to Consolidated Financial Statements

5

ENTRAVISION COMMUNICATIONS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	Six-Month Period
	Ended June 30,
	2012			2011
Cash flows from operating activities:
Net income (loss)	$	(1,329	)	$	(4,784	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		8,423			9,157
Deferred income taxes		2,405			1,617
Amortization of debt issue costs		1,137			1,086
Amortization of syndication contracts		381			1,143
Payments on syndication contracts		(934	)		(955	)
Non-cash stock-based compensation		998			864
Other income (loss)		—			(687	)
Gain (loss) on debt extinguishment		1,230			—
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in restricted cash		—			809
(Increase) decrease in accounts receivable		(3,771	)		1,605
(Increase) decrease in prepaid expenses and other assets		(177	)		47
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(1,998	)		(783	)
Net cash provided by (used in) operating activities		6,365			9,119
Cash flows from investing activities:
Purchases of property and equipment and intangibles		(3,647	)		(4,702	)
Purchase of a business		—			(551	)
Net cash provided by (used in) investing activities		(3,647	)		(5,253	)
Cash flows from financing activities:
Proceeds from issuance of common stock		—			42
Payments on long-term debt		(20,600	)		(1,000	)
Payments of deferred debt and offering costs		(80	)		(29	)
Net cash provided by (used in) financing activities		(20,680	)		(987	)
Net increase (decrease) in cash and cash equivalents		(17,962	)		2,879
Cash and cash equivalents:
Beginning		58,719			72,390
Ending	$	40,757		$	75,269
Supplemental disclosures of cash flow information:
Cash payments for:
Interest	$	17,651		$	18,205
Income taxes	$	661		$	752

See Notes to Consolidated Financial Statements

6

ENTRAVISION COMMUNICATIONS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

JUNE 30, 2012

1. BASIS OF PRESENTATION

Presentation

The consolidated financial statements included herein have been prepared by Entravision Communications Corporation (the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2011 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. The unaudited information contained herein has been prepared on the same basis as the Company’s audited consolidated financial statements and, in the opinion of the Company’s management, includes all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the information for the periods presented. The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2012 or any other future period.

2. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

Related Party

A majority of the Company’s television stations are Univision- or TeleFutura-affiliated television stations. The Company’s network affiliation agreements with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and TeleFutura network programming in their respective markets. These long-term affiliation agreements each expire in 2021, and can be renewed for multiple, successive two-year terms at Univision’s option, subject to the Company’s consent.

Under the network affiliation agreements, Univision acts as the Company’s exclusive sales representative for the sale of national advertising on the Company’s Univision- and TeleFutura-affiliate television stations, and the Company pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on our Univision- and TeleFutura-affiliate television stations. During the three-month periods ended June 30, 2012 and 2011, the amount the Company paid Univision in this capacity was $2.5 million and $1.8 million, respectively. During the six-month periods ended June 30, 2012 and 2011, the amount the Company paid Univision in this capacity was $4.7 million and $3.5 million, respectively.

In August 2008, the Company entered into a proxy agreement with Univision pursuant to which the Company granted to Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and TeleFutura-affiliated television station signals for a term of six years, expiring December 2014. Among other things, the proxy agreement provides terms relating to compensation to be paid to the Company by Univision with respect to retransmission consent agreements entered into with Multichannel Video Programming Distributors (“MVPDs”). As of June 30, 2012, the amount due to the Company from Univision was $8.9 million related to the agreements for the carriage of its Univision and TeleFutura-affiliated television station signals.

Univision currently owns approximately 10% of the Company’s common stock on a fully-converted basis.

Stock-Based Compensation

The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.

Stock-based compensation expense related to grants of stock options and restricted stock units was $0.7 million and $0.5 million for the three-month periods ended June 30, 2012 and 2011, respectively. Stock-based compensation expense related to grants of stock options and restricted stock units was $1.0 million and $0.9 million for the six-month periods ended June 30, 2012 and 2011, respectively.

Stock Options

Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years.

	Six-Month Period Ended June 30, 2012
Fair value of options granted	$	1.26
Expected volatility		89	%
Risk-free interest rate		1.5	%
Expected lives		7.0 years
Dividend rate		—

7

As of June 30, 2012, there was approximately $2.5 million of total unrecognized compensation expense related to grants of stock options that is expected to be recognized over a weighted-average period of 1.9 years.

Restricted Stock Units

Stock-based compensation expense related to restricted stock units is based on the fair value of the Company’s stock price on the date of grant and is amortized over the vesting period, generally between 1 to 4 years.

As of June 30, 2012, there was approximately $0.9 million of total unrecognized compensation expense related to grants of restricted stock units that is expected to be recognized over a weighted-average period of 1.2 years.

Income (Loss) Per Share

The following table illustrates the reconciliation of the basic and diluted income per share computations required by ASC 260-10, “Earnings Per Share” (in thousands, except share and per share data):

	Three-Month Period					Six-Month Period
	Ended June 30,					Ended June 30,
	2012		2011			2012			2011
Basic earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	2,066	$	(352	)	$	(1,329	)	$	(4,784	)
Denominator:
Weighted average common shares outstanding		85,837,846		85,053,417			85,821,963			85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$	0.02	$	0.00		$	(0.02	)	$	(0.06	)
Diluted earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	2,066	$	(352	)	$	(1,329	)	$	(4,784	)
Denominator:
Weighted average common shares outstanding		85,837,846		85,053,417			85,821,963			85,046,396
Dilutive securities:
Stock options and restricted stock units		340,485		—			—			—
Diluted shares outstanding		86,178,331		85,053,417			85,821,963			85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$	0.02	$	0.00		$	(0.02	)	$	(0.06	)

Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, if any, that could occur from shares issuable through stock options, restricted stock units and convertible securities.

For the three-month period ended June 30, 2012, a total of 9,636,422 shares of dilutive securities were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares.

For the six-month period ended June 30, 2012, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 315,580 equivalent shares of dilutive securities for six-month period ended June 30, 2012.

For the three- and six-month periods ended June 30, 2011, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 722,709 and 701,308 equivalent shares of dilutive securities for the three- and six-month periods ended June 30, 2011, respectively.

8

Notes

On July 27, 2010, the Company completed the offering and sale of $400 million aggregate principal amount of its 8.75% Senior Secured First Lien Notes (the “Notes”). The Notes were issued at a discount of 98.722% of their principal amount and mature on August 1, 2017. Interest on the Notes accrues at a rate of 8.75% per annum from the date of original issuance and is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2011. The Company received net proceeds of approximately $388 million from the sale of the Notes (net of bond discount of $5 million and fees of $7 million), which were used to pay all indebtedness outstanding under the previous syndicated bank credit facility, terminate the related interest rate swap agreements, pay fees and expenses related to the offering of the Notes and for general corporate purposes.

During the fourth quarter of 2011, the Company repurchased Notes on the open market with a principal amount of $16.2 million. The Company recorded a loss on debt extinguishment of $0.4 million primarily due to the write off of unamortized finance costs and unamortized bond discount.

On May 30, 2012, the Company repurchased Notes with a principal amount of $20.0 million pursuant to the optional redemption provisions in the Indenture. The redemption price for the redeemed Notes was 103% of the principal amount plus all accrued and unpaid interest. The Company recorded a loss on debt extinguishment of $1.2 million related to the premium paid and the write off of unamortized finance costs and unamortized bond discount.

The Notes are guaranteed on a senior secured basis by all of the existing and future wholly-owned domestic subsidiaries (the “Note Guarantors”). The Notes and the guarantees rank equal in right of payment to all of the Company’s and the guarantors’ existing and future senior indebtedness and senior in right of payment to all of the Company’s and the Note Guarantors’ existing and future subordinated indebtedness. In addition, the Notes and the guarantees are effectively junior: (i) to the Company’s and the Note Guarantors’ indebtedness secured by assets that are not collateral; (ii) pursuant to an Intercreditor Agreement entered into at the same time that the Company entered into the 2010 Credit Facility described below; and (iii) to all of the liabilities of any of the Company’s existing and future subsidiaries that do not guarantee the Notes, to the extent of the assets of those subsidiaries. The Notes are secured by substantially all of the assets, as well as the pledge of the stock of substantially all of the subsidiaries, including the special purpose subsidiary formed to hold the Company’s FCC licenses.

At the Company’s option, the Company may redeem:

• prior to August 1, 2013, on one or more occasions, up to 10% of the original principal amount of the Notes during each 12-month period beginning on August 1, 2010, at a redemption price equal to 103% of the principal amount of the Notes, plus accrued and unpaid interest;

• prior to August 1, 2013, on one or more occasions, up to 35% of the original principal amount of the Notes with the net proceeds from certain equity offerings, at a redemption price of 108.750% of the principal amount of the Notes, plus accrued and unpaid interest; provided that: (i) at least 65% of the aggregate principal amount of all Notes issued under the Indenture remains outstanding immediately after such redemption; and (ii) such redemption occurs within 60 days of the date of closing of any such equity offering;

• prior to August 1, 2013, some or all of the Notes may be redeemed at a redemption price equal to 100% of the principal amount of the Notes plus a “make-whole” premium plus accrued and unpaid interest; and

• on or after August 1, 2013, some or all of the Notes may be redeemed at a redemption price of: (i) 106.563% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2013; (ii) 104.375% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2014; (iii) 102.188% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2015; and (iv) 100% of the principal amount of the Notes if redeemed on or after August 1, 2016, in each case plus accrued and unpaid interest.

9

In addition, upon a change of control of the Company, as defined in the indenture governing the issuance of the Notes (the “Indenture”), the Company must make an offer to repurchase all Notes then outstanding, at a purchase price equal to 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest. In addition, we may at any time and from time to time purchase Notes in the open market or otherwise.

Upon an event of default, as defined in the Indenture, the Notes will become due and payable: (i) immediately without further notice if such event of default arises from events of bankruptcy or insolvency of the Company, any Note Guarantor or any restricted subsidiary; or (ii) upon a declaration of acceleration of the Notes in writing to the Company by the Trustee or holders representing 25% of the aggregate principal amount of the Notes then outstanding, if an event of default occurs and is continuing. The Indenture contains additional provisions that are customary for an agreement of this type, including indemnification by the Company and the Note Guarantors.

The carrying amount and estimated fair value of the Notes as of June 30, 2012 was $360.2 million and $387.4 million, respectively. The estimated fair value is based on quoted market prices for the Notes.

The Company recognized an increase in interest expense related to amortization of the bond discount of $0.1 million for each of the three-month periods ended June 30, 2012 and 2011. The Company recognized an increase in interest expense related to amortization of the bond discount of $0.3 million for each of the six-month periods ended June 30, 2012 and 2011.

2010 Credit Facility

On July 27, 2010, the Company also entered into a $50 million revolving credit facility (“2010 Credit Facility”) and terminated the amended syndicated bank credit facility agreement. The 2010 Credit Facility consists of a three-year $50 million revolving credit facility that expires on July 27, 2013, which includes a $3 million sub-facility for letters of credit. In addition, the Company may increase the aggregate principal amount of the 2010 Credit Facility by up to an additional $50 million, subject to the Company satisfying certain conditions. As of June 30, 2012, the Company had approximately $0.7 million in outstanding letters of credit. The Company currently has no outstanding borrowings under the 2010 Credit Facility.

The 2010 Credit Facility is guaranteed on a senior secured basis by all of the Company’s existing and future wholly-owned domestic subsidiaries (the “Credit Guarantors”), which are also the Note Guarantors (collectively, the “Guarantors”). The 2010 Credit Facility is secured on a first priority basis by the Company’s and the Credit Guarantors’ assets, which also secure the Notes. The Company’s borrowings, if any, under the 2010 Credit Facility rank senior to the Notes upon the terms set forth in the Intercreditor Agreement that the Company entered into in connection with the 2010 Credit Facility. The 2010 Credit Facility is secured by substantially all of the assets, as well as the pledge of the stock of substantially all of the subsidiaries, including the special purpose subsidiary formed to hold the Company’s FCC licenses.

In February 2012, the Company entered into an amendment to the credit agreement governing the 2010 Credit Facility (the “amended Credit Agreement”). The amendment changed certain thresholds for financial covenants relating to total leverage ratio, fixed charge coverage ratio, cash interest coverage ratio and revolving credit facility leverage ratio. In addition, on or after March 31, 2012, the financial covenants shall not be applicable unless any loans are outstanding on the relevant date. The amendment also contains other provisions that are customary for an agreement of this type.

Borrowings under the 2010 Credit Facility bear interest at either: (i) the Base Rate (as defined in the amended Credit Agreement) plus a margin of 3.375% per annum; or (ii) LIBOR plus a margin of 4.375% per annum. The Company has not drawn on the 2010 Credit Facility.

Upon an event of default, as defined in the amended Credit Agreement, the lenders may, among other things, suspend or terminate their obligation to make further loans to the Company and/or declare all amounts then outstanding under the 2010 Credit Facility to be immediately due and payable. The amended Credit Agreement also contains additional provisions that are customary for an agreement of this type, including indemnification by the Company and the Credit Guarantors.

In connection with the Company entering into the Indenture and the amended Credit Agreement, the Company and the Guarantors also entered into the following agreements:

• A Security Agreement, pursuant to which the Company and the Guarantors each granted a first priority security interests in the collateral securing the Notes and the 2010 Credit Facility for the benefit of the holders of the Notes and the lenders under the 2010 Credit Facility; and

10

• An Intercreditor Agreement, in order to define the relative rights of the holders of the Notes and the lenders under the 2010 Credit Facility with respect to the collateral securing the Company’s and the Guarantors’ respective obligations under the Notes and the 2010 Credit Facility.

• A Registration Rights Agreement, pursuant to which the Company registered the Notes and successfully conducted an exchange offering for the Notes in unregistered form, as originally issued.

Subject to certain exceptions, both the Indenture and the amended Credit Agreement contain various provisions that limit the Company’s ability, among other things, to:

• incur additional indebtedness;

• incur liens;

• merge, dissolve, consolidate, or sell all or substantially all of the Company’s assets;

• make certain investments;

• make certain restricted payments;

• declare certain dividends or distributions or repurchase shares of the Company’s capital stock;

• enter into certain transactions with affiliates; and

• change the nature of the Company’s business.

In addition, the Indenture contains various provisions that limit the Company’s ability to:

• apply the proceeds from certain asset sales other than in accordance with the terms of the Indenture; and

• restrict dividends or other payments from subsidiaries.

In addition, the amended Credit Agreement contains various provisions that limit the Company’s ability to:

• dispose of certain assets; and

• amend the Company’s or any guarantor’s organizational documents of the Company in any way that is materially adverse to the lenders under the 2010 Credit Facility.

Moreover, if the Company fails to comply with any of the financial covenants or ratios under the 2010 Credit Facility, the lenders could:

• Elect to declare all amounts borrowed to be immediately due and payable, together with accrued and unpaid interest; and/or

• Terminate their commitments, if any, to make further extensions of credit.

In addition, if the Company’s total leverage ratio exceeds 6.50 to 1.00 as of the end of the most recently completed fiscal quarter, the maximum principal outstanding amount of all loans under the Company’s 2010 Credit Facility cannot exceed $25.0 million. In the event that the maximum principal outstanding amount exceeds $25.0 million in that case, the Company must immediately prepay outstanding revolving loans in an amount sufficient to eliminate such excess.

Recent Accounting Pronouncements

There have been no developments to recently issued accounting standards applicable to the Company, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements, from those disclosed in the Company’s 2011 Annual Report on Form 10-K.

11

3. SEGMENT INFORMATION

The Company operates in two reportable segments: television broadcasting and radio broadcasting.

Television Broadcasting

The Company owns and/or operates 53 primary television stations located primarily in California, Colorado, Connecticut, Florida, Massachusetts, Nevada, New Mexico, Texas and the Washington, D.C. area.

Radio Broadcasting

The Company owns and operates 49 radio stations (38 FM and 11 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

Separate financial data for each of the Company’s operating segments are provided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses and impairment charge. There were no significant sources of revenue generated outside the United States during the three- and six-month periods ended June 30, 2012 and 2011. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period									Six-Month Period
	Ended June 30,						% Change			Ended June 30,						% Change
	2012			2011			2012 to 2011			2012			2011			2012 to 2011
Net Revenue
Television	$	37,399		$	33,118			13	%	$	70,563		$	63,786			11	%
Radio		17,092			17,147			(0	)%		30,452			30,523			(0	)%
Consolidated		54,491			50,265			8	%		101,015			94,309			7	%
Direct operating expenses
Television		13,997			13,665			2	%		27,218			26,324			3	%
Radio		8,879			8,822			1	%		17,292			16,984			2	%
Consolidated		22,876			22,487			2	%		44,510			43,308			3	%
Selling, general and administrative expenses
Television		5,209			4,991			4	%		10,523			10,162			4	%
Radio		4,426			4,295			3	%		8,484			8,367			1	%
Consolidated		9,635			9,286			4	%		19,007			18,529			3	%
Depreciation and amortization
Television		3,303			3,539			(7	)%		6,861			7,374			(7	)%
Radio		773			886			(13	)%		1,562			1,783			(12	)%
Consolidated		4,076			4,425			(8	)%		8,423			9,157			(8	)%
Segment operating profit
Television		14,890			10,923			36	%		25,961			19,926			30	%
Radio		3,014			3,144			(4	)%		3,114			3,389			(8	)%
Consolidated		17,904			14,067			27	%		29,075			23,315			25	%
Corporate expenses		4,181			3,772			11	%		8,062			7,517			7	%
Operating income (loss)		13,723			10,295			33	%		21,013			15,798			33	%
Interest expense		(8,959	)		(9,459	)		(5	)%		(18,059	)		(18,902	)		(4	)%
Interest income		9			—			*			13			2			*
Other income (loss)		—			—			*			—			687			(100	)%
Gain (loss) on debt extinguishment		(1,230	)		—			*			(1,230	)		—			*
Income (loss) before income taxes	$	3,543		$	836			324	%	$	1,737		$	(2,415	)		*
Capital expenditures
Television	$	1,763		$	1,413					$	2,682		$	4,030
Radio		536			186						906			336
Consolidated	$	2,299		$	1,599					$	3,588		$	4,366

	June 30, 2012		December 31, 2011
Total assets
Television	$	323,786	$	342,462
Radio		123,157		124,859
Consolidated	$	446,943	$	467,321

12

4. LITIGATION

The Company is subject to various outstanding claims and other legal proceedings that may arise in the ordinary course of business. In the opinion of management, any liability of the Company that may arise out of or with respect to these matters will not materially adversely affect the financial position, results of operations or cash flows of the Company.

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 June 30, 2012 and December 31, 2011 and the related consolidating statements of operations are presented for the three- and six-month periods ended June 30, 2012 and 2011. Consolidating statements of cash flows are presented for the six-month periods ended June 30, 2012 and 2011. The equity method of accounting has been used by the Company to report its investment in subsidiaries.

Consolidating Balance Sheet

June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor					Consolidated
	Parent			Subsidiaries			Subsidiaries		Eliminations			Total
ASSETS
Current assets
Cash and cash equivalents	$	40,492		$	—		$	265	$	—		$	40,757
Trade receivables, net of allowance for doubtful accounts		47,900			—			406		—			48,306
Prepaid expenses and other current assets		5,506			—			191		—			5,697
Total current assets		93,898			—			862		—			94,760
Property and equipment, net		59,101			—			2,822		—			61,923
Intangible assets subject to amortization, net		23,067			—			—		—			23,067
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		168,545			—			—		(168,545	)		—
Other assets		9,845			—			12,807		(12,807	)		9,845
Total assets	$	428,848		$	178,262		$	21,185	$	(181,352	)	$	446,943
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Advances payable, related parties	$	118		$	—		$	—	$	—		$	118
Accounts payable and accrued expenses		47,634			—			630		(10,798	)		37,466
Total current liabilities		47,752			—			630		(10,798	)		37,584
Long-term debt, less current maturities		360,155			—			—		—			360,155
Other long-term liabilities		7,666			—			—		—			7,666
Deferred income taxes		14,167			30,272			—		(2,009	)		42,430
Total liabilities		429,740			30,272			630		(12,807	)		447,835
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			—		(804,654	)		—
Additional paid-in capital		939,451			—			12,652		(12,652	)		939,451
Accumulated deficit		(940,351	)		(656,664	)		7,903		648,761			(940,351	)
Total stockholders’ equity (deficit)		(892	)		147,990			20,555		(168,545	)		(892	)
Total liabilities and stockholders’ equity (deficit)	$	428,848		$	178,262		$	21,185	$	(181,352	)	$	446,943

13

Consolidating Balance Sheet

December 31, 2011

(In thousands)

				Guarantor			Non-Guarantor					Consolidated
	Parent			Subsidiaries			Subsidiaries		Eliminations			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 June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	54,360		$	—		$	496		$	(365	)	$	54,491
Expenses:
Direct operating expenses		22,859			—			382			(365	)		22,876
Selling, general and administrative expenses		9,516			—			119			—			9,635
Corporate expenses		4,181			—			—			—			4,181
Depreciation and amortization		3,898			—			178			—			4,076
		40,454			—			679			(365	)		40,768
Operating income (loss)		13,906			—			(183	)		—			13,723
Interest expense		(8,959	)		—			—			—			(8,959	)
Interest income		9			—			—			—			9
Gain (loss) on debt extinguishment		(1,230	)		—			—			—			(1,230	)
Income (loss) before income taxes		3,726			—			(183	)		—			3,543
Income tax (expense) benefit		(570	)		(1,010	)		103			—			(1,477	)
Income (loss) before equity in net income (loss) of subsidiaries		3,156			(1,010	)		(80	)		—			2,066
Equity in income (loss) of subsidiaries		(1,090	)		—			—			1,090			—
Net income (loss) applicable to common stockholders	$	2,066		$	(1,010	)	$	(80	)	$	1,090		$	2,066

14

Consolidating Statement of Operations

Three-Month Period Ended June 30, 2011

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	49,863		$	—		$	1,106		$	(704	)	$	50,265
Expenses:
Direct operating expenses		22,766			—			425			(704	)		22,487
Selling, general and administrative expenses		9,150			—			136			—			9,286
Corporate expenses		3,772			—			—			—			3,772
Depreciation and amortization		4,221			—			204			—			4,425
		39,909			—			765			(704	)		39,970
Operating income (loss)		9,954			—			341			—			10,295
Interest expense		(9,459	)		—			—			—			(9,459	)
Income (loss) before income taxes		495			—			341			—			836
Income tax (expense) benefit		(145	)		(851	)		(192	)		—			(1,188	)
Income (loss) before equity in net income (loss) of subsidiaries		350			(851	)		149			—			(352	)
Equity in income (loss) of subsidiaries		(702	)		—			—			702			—
Net income (loss) applicable to common stockholders	$	(352	)	$	(851	)	$	149		$	702		$	(352	)

Consolidating Statement of Operations

Six-Month Period Ended June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	100,309		$	—		$	1,342		$	(636	)	$	101,015
Expenses:
Direct operating expenses		44,379			—			767			(636	)		44,510
Selling, general and administrative expenses		18,761			—			246			—			19,007
Corporate expenses		8,062			—			—			—			8,062
Depreciation and amortization		8,059			—			364			—			8,423
		79,261			—			1,377			(636	)		80,002
Operating income (loss)		21,048			—			(35	)		—			21,013
Interest expense		(18,059	)		—			—			—			(18,059	)
Interest income		13			—			—			—			13
Gain (loss) on debt extinguishment		(1,230	)		—			—			—			(1,230	)
Income (loss) before income taxes		1,772			—			(35	)		—			1,737
Income tax (expense) benefit		(1,066	)		(2,020	)		20			—			(3,066	)
Income (loss) before equity in net income (loss) of subsidiaries		706			(2,020	)		(15	)		—			(1,329	)
Equity in income (loss) of subsidiaries		(2,035	)		—			—			2,035			—
Net income (loss) applicable to common stockholders	$	(1,329	)	$	(2,020	)	$	(15	)	$	2,035		$	(1,329	)

15

Consolidating Statement of Operations

Six-Month Period Ended June 30, 2011

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	93,696		$	—		$	1,949		$	(1,336	)	$	94,309
Expenses:
Direct operating expenses		43,865			—			779			(1,336	)		43,308
Selling, general and administrative expenses		18,265			—			264			—			18,529
Corporate expenses		7,517			—			—			—			7,517
Depreciation and amortization		8,748			—			409			—			9,157
		78,395			—			1,452			(1,336	)		78,511
Operating income (loss)		15,301			—			497			—			15,798
Interest expense		(18,902	)		—			—			—			(18,902	)
Interest income		2			—			—			—			2
Other income (loss)		687			—			—			—			687
Income (loss) before income taxes		(2,912	)		—			497			—			(2,415	)
Income tax (expense) benefit		(394	)		(1,695	)		(280	)		—			(2,369	)
Income (loss) before equity in net income (loss) of subsidiaries		(3,306	)		(1,695	)		217			—			(4,784	)
Equity in income (loss) of subsidiaries		(1,478	)		—			—			1,478			—
Net income (loss) applicable to common stockholders	$	(4,784	)	$	(1,695	)	$	217		$	1,478		$	(4,784	)

Consolidating Statement of Cash Flows

Six-Month Period Ended June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Cash flows from operating actvities:
Net income (loss)	$	(1,329	)	$	(2,020	)	$	(15	)	$	2,035		$	(1,329	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		8,059			—			364			—			8,423
Deferred income taxes		580			2,020			(195	)		—			2,405
Amortization of debt issue costs		1,137			—			—			—			1,137
Amortization of syndication contracts		381			—			—			—			381
Payments on syndication contracts		(934	)		—			—			—			(934	)
Non-cash stock-based compensation		998			—			—			—			998
Gain (loss) on debt extinguishment		1,230			—			—			—			1,230
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		(3,684	)		—			(87	)		—			(3,771	)
(Increase) decrease in amounts due from related party		(15	)		—			15			—			—
(Increase) decrease in prepaid expenses and other assets		(223	)		—			46			—			(177	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(1,698	)		—			(300	)		—			(1,998	)
Net cash provided by (used in) operating activities		4,502			—			(172	)		2,035			6,365
Cash flows from investing actvities:
Investment in subsidiaries		2,035			—			—			(2,035	)		—
Purchases of property and equipment and intangibles		(3,641	)		—			(6	)		—			(3,647	)
Net cash provided by (used in) investing activities		(1,606	)		—			(6	)		(2,035	)		(3,647	)
Cash flows from financing actvities:
Payments on long-term debt		(20,600	)		—			—			—			(20,600	)
Payments of deferred debt and offering costs		(80	)		—			—			—			(80	)
Net cash provided by (used in) financing activities		(20,680	)		—			—			—			(20,680	)
Net increase (decrease) in cash and cash equivalents		(17,784	)		—			(178	)		—			(17,962	)
Cash and cash equivalents:
Beginning		58,276			—			443			—			58,719
Ending	$	40,492		$	—		$	265		$	—		$	40,757

16

Consolidating Statement of Cash Flows

Six-Month Period Ended June 30, 2011

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating actvities:
Net income (loss)	$	(4,784	)	$	(1,695	)	$	217		$	1,478		$	(4,784	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		8,748			—			409			—			9,157
Deferred income taxes		(210	)		1,695			132			—			1,617
Amortization of debt issue costs		1,086			—			—			—			1,086
Amortization of syndication contracts		1,143			—			—			—			1,143
Payments on syndication contracts		(955	)		—			—			—			(955	)
Non-cash stock-based compensation		864			—			—			—			864
Other income (loss)		(687	)		—			—			—			(687	)
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in restricted cash		809			—			—			—			809
(Increase) decrease in accounts receivable		1,778			—			(173	)		—			1,605
(Increase) decrease in amounts due from related party		406			—			(406	)		—			—
(Increase) decrease in prepaid expenses and other assets		73			—			(26	)		—			47
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(739	)		—			(44	)		—			(783	)
Net cash provided by (used in) operating activities		7,532			—			109			1,478			9,119
Cash flows from investing actvities:
Investment in subsidiaries		1,478			—			—			(1,478	)		—
Purchase of a business		(551	)		—			—			—			(551	)
Purchases of property and equipment and intangibles		(4,511	)		—			(191	)		—			(4,702	)
Net cash provided by (used in) investing activities		(3,584	)		—			(191	)		(1,478	)		(5,253	)
Cash flows from financing actvities:
Proceeds from issuance of common stock		42			—			—			—			42
Payments on long-term debt		(1,000	)		—			—			—			(1,000	)
Payments of deferred debt and offering costs		(29	)		—			—			—			(29	)
Net cash provided by (used in) financing activities		(987	)		—			—			—			(987	)
Net increase (decrease) in cash and cash equivalents		2,961			—			(82	)		—			2,879
Cash and cash equivalents:
Beginning		72,140			—			250			—			72,390
Ending	$	75,101		$	—		$	168		$	—		$	75,269

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We are a diversified Spanish-language media company with a unique portfolio of television and radio assets that reach Hispanic consumers across the United States, as well as the border markets of Mexico. We operate in two reportable segments: television broadcasting and radio broadcasting. Our net revenue for the three-month period ended June 30, 2012, was $54.5 million. Of that amount, revenue generated by our television segment accounted for 69% and revenue generated by our radio segment accounted for 31%.

As of the date of filing this report, we own and/or operate 53 primary television stations located primarily in California, Colorado, Connecticut, Florida, Massachusetts, Nevada, New Mexico, Texas and Washington, D.C. We own and operate 49 radio stations (38 FM and 11 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas. Our television and radio stations typically have local websites and other digital and interactive media platforms that provide users with news and information as well as a variety of other products and services.

We generate revenue primarily from sales of national and local advertising time on television and radio stations, and from retransmission consent agreements. Advertising rates are, in large part, based on each medium’s ability to attract audiences in demographic groups targeted by advertisers. We recognize advertising revenue when commercials are broadcast. We do not obtain long-term commitments from our advertisers and, consequently, they may cancel, reduce or postpone orders without penalties. We pay commissions to agencies for local, regional and national advertising. For contracts directly with agencies, we record net revenue from these agencies. Seasonal revenue fluctuations are common in the broadcasting industry and are due primarily to variations in advertising expenditures by both local and national advertisers. In addition, advertising revenue is generally higher during even-numbered years resulting from political advertising and every four years resulting from advertising aired during the World Cup (2010 and 2014).

We also generate revenue from retransmission consent agreements that are entered into with MVPDs. We refer to such revenue as retransmission consent revenue, which represents payments from MVPDs for access to our television station signals so that they may rebroadcast our signals and charge their subscribers for this programming. We recognize retransmission consent revenue when it is accrued pursuant to the agreements we have entered into with respect to such revenue.

17

Our primary expenses are employee compensation, including commissions paid to our sales staff and amounts paid to our national representative firms, as well as expenses for marketing, promotion and selling, technical, local programming, engineering, and general and administrative. Our local programming costs for television consist primarily of costs related to producing a local newscast in most of our markets.

Highlights

During the second quarter of 2012, we achieved revenue growth primarily driven by an increase in our television segment. Net revenue increased to $54.5 million, an increase of $4.2 million, or 8%, over the second quarter of 2011. Our audience shares remained strong in the nation’s most densely populated Hispanic markets.

Net revenue for our television segment increased to $37.4 million in the second quarter of 2012, from $33.1 million in the second quarter of 2011. This increase of $4.3 million, or 13%, in net revenue was primarily due to increases in core advertising revenue, political advertising revenue and retransmission consent revenue. In addition, our television segment benefited from revenue growth generated from a more diversified base of advertising categories. We generated a total of $5.2 million of retransmission consent revenue in the second quarter of 2012. We anticipate that retransmission consent revenue for the full year 2012 will be greater than it was for the full year 2011 and will continue to be a growing source of net revenues in future periods.

Net revenue for our radio segment was $17.1 million for each of the second quarters of 2012 and 2011.

Relationship with Univision

A majority of our television stations are Univision- or TeleFutura-affiliated television stations. Our network affiliation agreements, as amended, with Univision provide certain of our owned stations the exclusive right to broadcast Univision’s primary network and TeleFutura network programming in their respective markets. These long-term affiliation agreements each expire in 2021, and can be renewed for multiple, successive two-year terms at Univision’s option, subject to our consent. Under the network affiliation agreements, we generally retain the right to sell approximately six minutes per hour of the available advertising time on Univision’s primary network, and approximately four and a half minutes per hour of the available advertising time on the TeleFutura network. Those allocations are subject to adjustment from time to time by Univision.

Under the network affiliation agreements, Univision acts as our exclusive sales representative for the sale of national advertising on our Univision- and TeleFutura-affiliate television stations, and we pay certain sales representation fees to Univision relating to sales of all advertising for broadcast on our Univision- and TeleFutura-affiliate television stations. During the three-month periods ended June 30, 2012 and 2011, the amount we paid Univision in this capacity was $2.5 million and $1.8 million, respectively. During the six-month periods ended June 30, 2012 and 2011, the amount we paid Univision in this capacity was $4.7 million and $3.5 million, respectively.

We also generate revenue under two marketing and sales agreements with Univision, which give us the right through 2021 to manage the marketing and sales operations of Univision-owned TeleFutura and Univision affiliates in six markets – Albuquerque, Boston, Denver, Orlando, Tampa and Washington, D.C.

In August 2008, we entered into a proxy agreement with Univision pursuant to which we granted to Univision the right to negotiate the terms of retransmission consent agreements for our Univision- and TeleFutura-affiliated television station signals for a term of six years, expiring in December 2014. Among other things, the proxy agreement provides terms relating to compensation to be paid to us by Univision with respect to retransmission consent agreements entered into with MVPDs. As of June 30, 2012, the amount due to us from Univision was $8.9 million related to the agreements for the carriage of our Univision and TeleFutura-affiliated television station signals.

Univision currently owns approximately 10% of our common stock on a fully-converted basis. As of December 31, 2005, Univision owned approximately 30% of our common stock on a fully-converted basis. In connection with its merger with Hispanic Broadcasting Corporation in September 2003, Univision entered into an agreement with the U.S. Department of Justice, or DOJ, pursuant to which Univision agreed, among other things, to ensure that its percentage ownership of our company would not exceed 10% by March 26, 2009. In January 2006, we sold the assets of radio stations KBRG-FM and KLOK-AM, serving the San Francisco/San Jose, California market, to Univision for $90 million. Univision paid the full

18

amount of the purchase price in the form of approximately 12.6 million shares of our Class U common stock held by Univision. Subsequently, in 2006, we repurchased 7.2 million shares of our Class U common stock held by Univision for $52.5 million. In February 2008, we repurchased 1.5 million shares of Class U common stock held by Univision for $10.4 million. In May 2009, we repurchased an additional 0.9 million shares of Class A common stock held by Univision for $0.5 million.

The Company’s Class U common stock held by Univision has limited voting rights and does not include the right to elect directors. However, as the holder of all of the Company’s issued and outstanding Class U common stock, Univision currently has the right to approve any merger, consolidation or other business combination involving the Company, any dissolution of the Company and any assignment of the Federal Communications Commission, or FCC, licenses for any of the Company’s Univision-affiliated television stations. Each share of Class U common stock is automatically convertible into one share of the Company’s Class A common stock (subject to adjustment for stock splits, dividends or combinations) in connection with any transfer to a third party that is not an affiliate of Univision.

Recent Accounting Pronouncements

There have been no developments to recently issued accounting standards applicable to us, including the expected dates of adoption and estimated effects on our consolidated financial statements, from those disclosed in our 2011 Annual Report on Form 10-K.

Three-and Six-Month Periods Ended June 30, 2012 and 2011

The following table sets forth selected data from our operating results for the three- and six-month periods ended June 30, 2012 and 2011 (in thousands):

	Three-Month Period Ended June 30,						%			Six-Month Period Ended June 30,						%
	2012			2011			Change			2012			2011			Change
Statements of Operations Data:
Net revenue	$	54,491		$	50,265			8	%	$	101,015		$	94,309			7	%
Direct operating expenses		22,876			22,487			2	%		44,510			43,308			3	%
Selling, general and administrative expenses		9,635			9,286			4	%		19,007			18,529			3	%
Corporate expenses		4,181			3,772			11	%		8,062			7,517			7	%
Depreciation and amortization		4,076			4,425			(8	)%		8,423			9,157			(8	)%
		40,768			39,970			2	%		80,002			78,511			2	%
Operating income		13,723			10,295			33	%		21,013			15,798			33	%
Interest expense		(8,959	)		(9,459	)		(5	)%		(18,059	)		(18,902	)		(4	)%
Interest income		9			—			*			13			2			*
Other income (loss)		—			—			*			—			687			(100	)%
Gain (loss) on debt extinguishment		(1,230	)		—			*			(1,230	)		—			*
Income (loss) before income taxes		3,543			836			324	%		1,737			(2,415	)		*
Income tax (expense) benefit		(1,477	)		(1,188	)		24	%		(3,066	)		(2,369	)		29	%
Net income (loss) applicable to common stockholders	$	2,066		$	(352	)		*		$	(1,329	)	$	(4,784	)		(72	)%
Other Data:
Capital expenditures		2,299			1,599						3,588			4,366
Consolidated adjusted EBITDA (adjusted for non-cashstock-based compensation) (1)											29,881			26,007
Net cash provided by (used in) operating activities											6,365			9,119
Net cash provided by (used in) investing activities											(3,647	)		(5,253	)
Net cash provided by (used in) financing activities											(20,680	)		(987	)

(1) 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, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) on nonconsolidated affiliate, non-cash losses and syndication programming amortization less syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our 2010 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, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) on nonconsolidated affiliate, non-cash losses and syndication programming amortization and does include syndication programming payments.

Since our ability to borrow from our 2010 Credit Facility is based on a consolidated adjusted EBITDA financial covenant, we believe that it is important to disclose consolidated adjusted EBITDA to our investors. Our 2010 Credit Facility contains certain financial covenants relating to the maximum total leverage ratio, maximum revolving credit leverage ratio, minimum cash interest coverage ratio and minimum fixed charge coverage

19

ratio. The maximum total leverage ratio, or the ratio of consolidated total debt to trailing-twelve-month consolidated adjusted EBITDA, affects our ability to borrow from our 2010 Credit Facility. Under the 2010 Credit Facility, our maximum total leverage ratio may not exceed 7.00 to 1. The total leverage ratio was as follows (in each case as of June 30): 2012, 6.1 to 1; 2011, 6.6 to 1. Therefore, we were in compliance with this covenant at each of those dates.

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, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) on nonconsolidated affiliate, non-cash losses 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.

Consolidated adjusted EBITDA is a non-GAAP measure. The most directly comparable GAAP financial measure to consolidated adjusted EBITDA is cash flows from operating activities. A reconciliation of this non-GAAP measure to cash flows from operating activities follows (in thousands):

	Six-Month Period Ended  June 30,
	2012			2011
Consolidated adjusted EBITDA (1)	$	29,881		$	26,007
Interest expense		(18,059	)		(18,902	)
Interest income		13			2
Income tax (expense) benefit		(3,066	)		(2,369	)
Amortization of syndication contracts		(381	)		(1,143	)
Payments on syndication contracts		934			955
Non-cash stock-based compensation included in direct operating expenses		(56	)		(104	)
Non-cash stock-based compensation included in selling, general and administrative expenses		(324	)		(315	)
Non-cash stock-based compensation included in corporate expenses		(618	)		(445	)
Depreciation and amortization		(8,423	)		(9,157	)
Other income (loss)		—			687
Gain (loss) on debt extinguishment		(1,230	)		—
Net income (loss)		(1,329	)		(4,784	)
Depreciation and amortization		8,423			9,157
Deferred income taxes		2,405			1,617
Amortization of debt issue costs		1,137			1,086
Amortization of syndication contracts		381			1,143
Payments on syndication contracts		(934	)		(955	)
Non-cash stock-based compensation		998			864
Other (income) loss		—			(687	)
(Gain) loss on debt extinguishment		1,230			—
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in restricted cash		—			809
(Increase) decrease in accounts receivable		(3,771	)		1,605
(Increase) decrease in prepaid expenses and other assets		(177	)		47
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(1,998	)		(783	)
Cash flows from operating activities	$	6,365		$	9,119

20

Consolidated Operations

Net Revenue. Net revenue increased to $54.5 million for the three-month period ended June 30, 2012 from $50.3 million for the three-month period ended June 30, 2011, an increase of $4.2 million. The increase came from our television segment and was primarily attributable to increases in core advertising revenue, political advertising revenue, which was not material in 2011, and retransmission consent revenue.

Net revenue increased to $101.0 million for the six-month period ended June 30, 2012 from $94.3 million for the six-month period ended June 30, 2011, an increase of $6.7 million. The increase came from our television segment and was primarily attributable to increases in core advertising revenue, political advertising revenue, which was not material in 2011, and retransmission consent revenue.

We currently anticipate that net revenue will continue to increase for the full year 2012, primarily due to increased core advertising revenue, political advertising revenue and increased retransmission consent revenue. However, we believe that we will continue to face a challenging advertising environment in 2012 as our advertising customers continue to make difficult choices in the current uncertain economic environment.

Direct Operating Expenses. Direct operating expenses increased to $22.9 million for the three-month period ended June 30, 2012 from $22.5 million for the three-month period ended June 30, 2011, an increase of $0.4 million. Of the overall increase, $0.3 million came from our television segment and was primarily attributable to an increase in expenses associated with the increase in net revenue and an increase in salary expense. Additionally, $0.1 million of the overall increase came from our radio segment and was primarily attributable to an increase in salary expense. As a percentage of net revenue, direct operating expenses decreased to 42% for the three-month period ended June 30, 2012 from 45% for the three-month period ended June 30, 2011. Direct operating expenses as a percentage of net revenue decreased because the increase in net revenue outpaced the increase in direct operating expenses.

Direct operating expenses increased to $44.5 million for the six-month period ended June 30, 2012 from $43.3 million for the six-month period ended June 30, 2011, an increase of $1.2 million. Of the overall increase, $0.9 million came from our television segment and was primarily attributable to an increase in expenses associated with the increase in net revenue and an increase in salary expense. Additionally, $0.3 million of the overall increase came from our radio segment and was primarily attributable to an increase in salary expense. As a percentage of net revenue, direct operating expenses decreased to 44% for the six-month period ended June 30, 2012 from 46% for the six-month period ended June 30, 2011. Direct operating expenses as a percentage of net revenue decreased because the increase in net revenue outpaced the increase in direct operating expenses.

We believe that direct operating expenses will continue to increase during 2012 primarily as a result of employee salary increases and expenses associated with the anticipated increase in net revenue.

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased to $9.6 million for the three-month period ended June 30, 2012 from $9.3 million for the three-month period ended June 30, 2011, an increase of $0.3 million. Of the overall increase, $0.2 million came from our television segment and was primarily attributable to an increase in salary expense. Additionally, $0.1 million of the overall increase came from our radio segment and was primarily attributable to an increase in salary expense. As a percentage of net revenue, selling, general and administrative expenses remained constant at 18% for each of the three-month periods ended June 30, 2012 and 2011. Selling, general and administrative expenses as a percentage of net revenue remained constant because the increase in net revenue matched the increase in selling, general and administrative expenses.

Selling, general and administrative expenses increased to $19.0 million for the six-month period ended June 30, 2012 from $18.5 million for the six-month period ended June 30, 2011, an increase of $0.5 million. Of the overall increase, $0.4 million came from our television segment and was primarily attributable to an increase in salary expense. Additionally, $0.1 million of the overall increase came from our radio segment and was primarily attributable to an increase in salary expense. As a percentage of net revenue, selling, general and administrative expenses decreased to 19% for the six-month period ended June 30, 2012 from 20% for the six-month period ended June 30, 2011. Selling, general and administrative expenses as a percentage of net revenue decreased because the increase in net revenue outpaced the increase in selling, general and administrative expenses.

21

We believe that selling, general and administrative expenses will continue to increase during 2012 primarily as a result of employee salary increases.

Corporate Expenses. Corporate expenses increased to $4.2 million for the three-month period ended June 30, 2012 from $3.8 million for the three-month period ended June 30, 2011, an increase of $0.4 million. The increase was primarily attributable to the increase in non-cash stock-based compensation, interactive media-related expenses and salary expense. As a percentage of net revenue, corporate expenses remained constant at 8% for each of the three-month periods ended June 30, 2012 and 2011.

Corporate expenses increased to $8.1 million for the six-month period ended June 30, 2012 from $7.5 million for the six-month period ended June 30, 2011, an increase of $0.6 million. The increase was primarily attributable to the increase in non-cash stock-based compensation, interactive media-related expenses and salary expense. As a percentage of net revenue, corporate expenses remained constant at 8% for each of the six-month periods ended June 30, 2012 and 2011.

We believe that corporate expenses will continue to increase during 2012 primarily as a result of increased interactive media-related expenses and employee salary increases.

Depreciation and Amortization. Depreciation and amortization decreased to $4.1 million for the three-month period ended June 30, 2012 from $4.4 million for the three-month period ended June 30, 2011, a decrease of $0.3 million. The decrease was primarily due to a decrease in depreciation as certain assets are now fully depreciated.

Depreciation and amortization decreased to $8.4 million for the six-month period ended June 30, 2012 from $9.2 million for the six-month period ended June 30, 2011, a decrease of $0.8 million. The decrease was primarily due to a decrease in depreciation as certain assets are now fully depreciated.

Operating Income. As a result of the above factors, operating income was $13.7 million for the three-month period ended June 30, 2012, compared to $10.3 million for the three-month period ended June 30, 2011. As a result of the above factors, operating income was $21.0 million for the six-month period ended June 30, 2012, compared to $15.8 million for the six-month period ended June 30, 2011.

Interest Expense. Interest expense decreased to $9.0 million for the three-month period ended June 30, 2012 from $9.5 million for the three-month period ended June 30, 2011, a decrease of $0.5 million. On May 30, 2012, we repurchased $20.0 million of our Notes. During the fourth quarter of 2011, we repurchased $16.2 million of our Notes. The decrease in interest expense was primarily attributable to the decrease in our outstanding debt.

Interest expense decreased to $18.1 million for the six-month period ended June 30, 2012 from $18.9 million for the six-month period ended June 30, 2011, a decrease of $0.8 million. On May 30, 2012, we repurchased $20.0 million of our Notes. During the fourth quarter of 2011, we repurchased $16.2 million of our Notes. The decrease in interest expense was primarily attributable to the decrease in our outstanding debt.

Other Income. We recorded other income of $0.7 million related to the remeasurement of our previously-held 50% interest in Lotus/Entravision Reps LLC, or LER, to fair value in connection with our acquisition of the remaining 50% interest of LER during the six-month period ended June 30, 2011.

Loss on Debt Extinguishment. We recorded a loss on debt extinguishment of $1.2 million related to the premium paid, unamortized finance costs and unamortized bond discount associated with the repurchase of Notes during the three- and six-month periods ended June 30, 2012.

Income Tax Expense. Income tax expense for the six-month period ended June 30, 2012 was $3.1 million. The effective income tax rate was higher than our statutory rate of 34% due to changes in the valuation allowance and deductions attributable to indefinite-lived intangible assets. Income tax expense for the six-month period ended June 30, 2011 was $2.4 million. The effective income tax rate was lower than our statutory rate of 34% due to changes in the valuation allowance and deductions attributable to indefinite-lived intangible assets.

As of June 30, 2012, we believe that our deferred tax assets will not be fully realized in the future and we are providing a full valuation allowance against those deferred tax assets. In determining our deferred tax assets subject to a valuation allowance, we excluded the deferred tax liabilities attributable to indefinite-lived intangibles.

22

Segment Operations

Television

Net Revenue. Net revenue in our television segment increased to $37.4 million for the three-month period ended June 30, 2012 from $33.1 million for the three-month period ended June 30, 2011, an increase of $4.3 million. The increase was primarily attributable to increases in core advertising revenue, political advertising revenue, which was not material in 2011, and retransmission consent revenue. We generated a total of $5.2 million and $4.4 million in retransmission consent revenue for the three-month periods ended June 30, 2012 and 2011, respectively.

Net revenue in our television segment increased to $70.6 million for the six-month period ended June 30, 2012 from $63.8 million for the six-month period ended June 30, 2011, an increase of $6.8 million. The increase was primarily attributable to increases in core advertising revenue, political advertising revenue, which was not material in 2011, and retransmission consent revenue. We generated a total of $10.2 million and $8.6 million in retransmission consent revenue for the six-month periods ended June 30, 2012 and 2011, respectively. We anticipate that retransmission consent revenue for the full year 2012 will be greater than it was for the full year 2011 and will continue to be a growing source of net revenues in future periods.

Direct Operating Expenses. Direct operating expenses in our television segment increased to $14.0 million for the three-month period ended June 30, 2012 from $13.7 million for the three-month period ended June 30, 2011, an increase of $0.3 million. The increase was primarily attributable to an increase in expenses associated with the increase in net revenue and an increase in salary expense.

Direct operating expenses in our television segment increased to $27.2 million for the six-month period ended June 30, 2012 from $26.3 million for the six-month period ended June 30, 2011, an increase of $0.9 million. The increase was primarily attributable to an increase in expenses associated with the increase in net revenue and an increase in salary expense.

Selling, General and Administrative Expenses. Selling, general and administrative expenses in our television segment increased to $5.2 million for the three-month period ended June 30, 2012 from $5.0 million for the three-month period ended June 30, 2011, an increase of $0.2 million. The increase was primarily attributable to an increase in salary expense.

Selling, general and administrative expenses in our television segment increased to $10.5 million for the six-month period ended June 30, 2012 from $10.2 million for the six-month period ended June 30, 2011, an increase of $0.3 million. The increase was primarily attributable to an increase in salary expense.

Radio

Net Revenue. Net revenue in our radio segment was $17.1 million for each of the three-month periods ended June 30, 2012 and 2011.

Net revenue in our radio segment was $30.5 million for each of the six-month periods ended June 30, 2012 and 2011.

Direct Operating Expenses. Direct operating expenses in our radio segment increased to $8.9 million for the three-month period ended June 30, 2012 from $8.8 million for the three-month period ended June 30, 2011, an increase of $0.1 million. The increase was primarily attributable to an increase in salary expense.

Direct operating expenses in our radio segment increased to $17.3 million for the six-month period ended June 30, 2012 from $17.0 million for the six-month period ended June 30, 2011, an increase of $0.3 million. The increase was primarily attributable to an increase in salary expense.

Selling, General and Administrative Expenses. Selling, general and administrative expenses in our radio segment increased to $4.4 million for the three -month period ended June 30, 2012 from $4.3 million for the three-month period ended June 30, 2011, an increase of $0.1 million. The increase was primarily attributable to an increase in salary expense.

Selling, general and administrative expenses in our radio segment increased to $8.5 million for the six-month period ended June 30, 2012 from $8.4 million for the six-month period ended June 30, 2011, an increase of $0.1 million. The increase was primarily attributable to an increase in salary expense.

23

Liquidity and Capital Resources

While we have a history of operating losses in some periods and operating income in other periods, we also have a history of generating significant positive cash flows from our operations. Although we had net losses of approximately $8.2 million and $18.1 million for the years ended December 31, 2011 and 2010, respectively, we had positive cash flow from operations of $17.6 million and $37.1 million for the years ended December 31, 2011 and 2010, respectively. We generated cash flow from operations of $6.4 million for the six-month period ended June 30, 2012 and we expect to have positive cash flow from operations for the 2012 year. We expect to fund our working capital requirements, capital expenditures and payments of principal and interest on outstanding indebtedness, with cash on hand and cash flows from operations. We currently anticipate that funds generated from operations, cash on hand and available borrowings under our 2010 Credit Facility will be sufficient to meet our anticipated cash requirements for at least the next twelve months.

Notes

On July 27, 2010, we completed the offering and sale of $400 million aggregate principal amount of our Notes. The Notes were issued at a discount of 98.722% of their principal amount and mature on August 1, 2017. Interest on the Notes accrues at a rate of 8.75% per annum from the date of original issuance and is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2011. We received net proceeds of approximately $388 million from the sale of the Notes (net of bond discount of $5 million and fees of $7 million), which were used to pay all indebtedness outstanding under our previous syndicated bank credit facility, terminate the related interest rate swap agreements, pay fees and expenses related to offering of the Notes and for general corporate purposes.

During the fourth quarter of 2011, we repurchased Notes on the open market with a principal amount of $16.2 million. We recorded a loss on debt extinguishment of $0.4 million primarily due to the write off of unamortized finance costs and unamortized bond discount.

On May 30, 2012, we repurchased Notes with a principal amount of $20.0 million pursuant to the optional redemption provisions in the Indenture. The redemption price for the redeemed Notes was 103% of the principal amount plus all accrued and unpaid interest. We recorded a loss on debt extinguishment of $1.2 million related to the premium paid and the write off of unamortized finance costs and unamortized bond discount.

The Notes are guaranteed on a senior secured basis by all of our existing and future wholly-owned domestic subsidiaries (the “Note Guarantors”). The Notes and the guarantees rank equal in right of payment to all of our and the guarantors’ existing and future senior indebtedness and senior in right of payment to all of our and the Note Guarantors’ existing and future subordinated indebtedness. In addition, the Notes and the guarantees are effectively junior: (i) to our and the Note Guarantors’ indebtedness secured by assets that are not collateral; (ii) pursuant to an Intercreditor Agreement entered into at the same time that we entered into the 2010 Credit Facility described below; and (iii) to all of the liabilities of any of our existing and future subsidiaries that do not guarantee the Notes, to the extent of the assets of those subsidiaries. The Notes are secured by substantially all of our assets, as well as the pledge of the stock of substantially all of our subsidiaries, including the special purpose subsidiary formed to hold the Company’s FCC licenses.

At our option, we may redeem:

• prior to August 1, 2013, on one or more occasions, up to 10% of the original principal amount of the Notes during each 12-month period beginning on August 1, 2010, at a redemption price equal to 103% of the principal amount of the Notes, plus accrued and unpaid interest;

• prior to August 1, 2013, on one or more occasions, up to 35% of the original principal amount of the Notes with the net proceeds from certain equity offerings, at a redemption price of 108.750% of the principal amount of the Notes, plus accrued and unpaid interest; provided that: (i) at least 65% of the aggregate principal amount of all Notes issued under the Indenture remains outstanding immediately after such redemption; and (ii) such redemption occurs within 60 days of the date of closing of any such equity offering;

• prior to August 1, 2013, some or all of the Notes may be redeemed at a redemption price equal to 100% of the principal amount of the Notes plus a “make-whole” premium plus accrued and unpaid interest; and

24

• on or after August 1, 2013, some or all of the Notes may be redeemed at a redemption price of: (i) 106.563% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2013; (ii) 104.375% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2014; (iii) 102.188% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2015; and (iv) 100% of the principal amount of the Notes if redeemed on or after August 1, 2016, in each case plus accrued and unpaid interest.

In addition, upon a change of control of the Company, as defined in the Indenture, we must make an offer to repurchase all Notes then outstanding, at a purchase price equal to 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest. In addition, we may at any time and from time to time purchase Notes in the open market or otherwise.

Upon an event of default, as defined in the Indenture, the Notes will become due and payable: (i) immediately without further notice if such event of default arises from events of bankruptcy or insolvency of the Company, any Note Guarantor or any restricted subsidiary; or (ii) upon a declaration of acceleration of the Notes in writing to the Company by the Trustee or holders representing 25% of the aggregate principal amount of the Notes then outstanding, if an event of default occurs and is continuing. The Indenture contains additional provisions that are customary for an agreement of this type, including indemnification by us and the Note Guarantors.

2010 Credit Facility

On July 27, 2010, we also entered into a $50 million revolving credit facility (our “2010 Credit Facility”) and terminated the amended syndicated bank credit facility agreement. Our 2010 Credit Facility consists of a three-year $50 million revolving credit facility that expires on July 27, 2013, which includes a $3 million sub-facility for letters of credit. In addition, we may increase the aggregate principal amount of our 2010 Credit Facility by up to an additional $50 million, subject to our satisfying certain conditions. As of June 30, 2012, we had approximately $0.7 million in outstanding letters of credit. We currently have no borrowings outstanding under the 2010 Credit Facility.

Our 2010 Credit Facility is guaranteed on a senior secured basis by all of our existing and future wholly-owned domestic subsidiaries (the “Credit Guarantors”), which are also the Note Guarantors (collectively, the “Guarantors”). Our 2010 Credit Facility is secured on a first priority basis by our and the Credit Guarantors’ assets, which also secure the Notes. Our borrowings, if any, under our 2010 Credit Facility rank senior to the Notes upon the terms set forth in the Intercreditor Agreement that we entered into in connection with our 2010 Credit Facility. Our 2010 Credit Facility is secured by substantially all of the assets, as well as the pledge of the stock of substantially all of the subsidiaries, including the special purpose subsidiary formed to hold our FCC licenses.

In February 2012, we entered into an amendment to the credit agreement governing the 2010 Credit Facility (the “amended Credit Agreement”). The amendment changed certain thresholds for financial covenants relating to total leverage ratio, fixed charge coverage ratio, cash interest coverage ratio and revolving credit facility leverage ratio. In addition, on or after March 31, 2012, the financial covenants shall not be applicable unless any loans are outstanding on the relevant date. The amendment also contains other provisions that are customary for an agreement of this type.

Borrowings under our 2010 Credit Facility bear interest at either: (i) the Base Rate (as defined in the amended Credit Agreement) plus a margin of 3.375% per annum; or (ii) LIBOR plus a margin of 4.375% per annum. We have not drawn on our 2010 Credit Facility.

Upon an event of default, as defined in the amended Credit Agreement, the lenders may, among other things, suspend or terminate their obligation to make further loans to us and/or declare all amounts then outstanding under our 2010 Credit Facility to be immediately due and payable. The amended Credit Agreement also contains additional provisions that are customary for an agreement of this type, including indemnification by us and the Credit Guarantors.

In connection with our entering into the Indenture and the amended Credit Agreement, we and the Guarantors also entered into the following agreements:

• A Security Agreement, pursuant to which we and the Guarantors each granted a first priority security interests in the collateral securing the Notes and our 2010 Credit Facility for the benefit of the holders of the Notes and the lenders under our 2010 Credit Facility; and

• An Intercreditor Agreement, in order to define the relative rights of the holders of the Notes and the lenders under our 2010 Credit Facility with respect to the collateral securing our and the Guarantors’ respective obligations under the Notes and our 2010 Credit Facility; and

25

• A Registration Rights Agreement, pursuant to which we registered the Notes and successfully conducted an exchange offering for the Notes in unregistered form, as originally issued.

Subject to certain exceptions, both the Indenture and the amended Credit Agreement contain various provisions that limit our ability, among other things, to:

• incur additional indebtedness;

• incur liens;

• merge, dissolve, consolidate, or sell all or substantially all of our assets;

• make certain investments;

• make certain restricted payments;

• declare certain dividends or distributions or repurchase shares of our capital stock;

• enter into certain transactions with affiliates; and

• change the nature of our business.

In addition, the Indenture contains various provisions that limit our ability to:

• apply the proceeds from certain asset sales other than in accordance with the terms of the Indenture; and

• restrict dividends or other payments from subsidiaries.

In addition, the amended Credit Agreement contains various provisions that limit our ability to:

• dispose of certain assets; and

• amend our or any guarantor’s organizational documents of the Company in any way that is materially adverse to the lenders under our 2010 Credit Facility.

Moreover, if we fail to comply with any of the financial covenants or ratios under our 2010 Credit Facility, our lenders could:

• Elect to declare all amounts borrowed to be immediately due and payable, together with accrued and unpaid interest; and/or

• Terminate their commitments, if any, to make further extensions of credit.

In addition, if our total leverage ratio exceeds 6.50 to 1.00 as of the end of the most recently completed fiscal quarter, the maximum principal outstanding amount of all loans under our 2010 Credit Facility cannot exceed $25.0 million. In the event that the maximum principal outstanding amount exceeds $25.0 million in that case, we must immediately prepay outstanding revolving loans in an amount sufficient to eliminate such excess.

Debt and Equity Financing

On November 1, 2006, our Board of Directors approved a $100 million stock repurchase program. We were authorized to repurchase up to $100 million of our outstanding Class A common stock from time to time in open market transactions at prevailing market prices, block trades and private repurchases. On April 7, 2008, our Board of Directors approved an additional $100 million stock repurchase program. We have repurchased a total of 20.8 million shares of Class A common stock for approximately $120.3 million under both plans from inception through June 30, 2012. We did not repurchase any shares of Class A common stock during 2010, 2011 or 2012. Subject to certain exceptions, both the Indenture and the amended Credit Agreement contain various provisions that limit our ability to make future repurchases of shares of our common stock.

26

Consolidated Adjusted EBITDA

Consolidated adjusted EBITDA (as defined below) increased to $29.9 million for the six-month period ended June 30, 2012 from $26.0 million for the six-month period ended June 30, 2011, an increase of $3.9 million, or 15%. As a percentage of net revenue, consolidated adjusted EBITDA increased to 30% for the six-month period ended June 30, 2012 from 28% for the six-month period ended June 30, 2011.

We define consolidated adjusted EBITDA as 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, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) on nonconsolidated affiliate, non-cash losses and syndication programming amortization less syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our 2010 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, other income (loss), gain (loss) on debt extinguishment, income tax (expense), equity in net income (loss) on nonconsolidated affiliate, non-cash losses and syndication programming amortization and does include syndication programming payments.

Since our ability to borrow from our 2010 Credit Facility is based on a consolidated adjusted EBITDA financial covenant, we believe that it is important to disclose consolidated adjusted EBITDA to our investors. Our 2010 Credit Facility contains certain financial covenants relating to the maximum total leverage ratio, maximum revolving credit leverage ratio, minimum cash interest coverage ratio and minimum fixed charge coverage ratio. The maximum total leverage ratio, or the ratio of consolidated total debt to trailing-twelve-month consolidated adjusted EBITDA, affects our ability to borrow from our 2010 Credit Facility. Under the 2010 Credit Facility, our maximum total leverage ratio may not exceed 7.00 to 1. The total leverage ratio was as follows (in each case as of June 30): 2012, 6.1 to 1; 2011, 6.6 to 1. Therefore, we were in compliance with this covenant at each of those dates.

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, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) on nonconsolidated affiliate, non-cash losses 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.

Consolidated adjusted EBITDA is a non-GAAP measure. For a reconciliation of consolidated adjusted EBITDA to cash flows from operating activities, its most directly comparable GAAP financial measure, please see page 20.

Cash Flow

Net cash flow provided by operating activities was $6.4 million for the six-month period ended June 30, 2012, compared to net cash flow used by operating activities of $9.1 million for the six-month period ended June 30, 2011. We had a net loss of $1.3 million for the six-month period ended June 30, 2012. Our net loss for the six-month period ended June 30, 2012 was primarily the result of non-cash expenses, including depreciation and amortization expense of $8.4 million. We had a net loss of $4.8 million for the six-month period ended June 30, 2011, which was primarily a result of non-cash expenses, including depreciation and amortization expense of $9.2 million. We expect to have positive cash flow from operating activities for the 2012 year.

Net cash flow used in investing activities was $3.6 million for the six-month period ended June 30, 2012, compared to net cash flow used in investing activities of $5.3 million for the six-month period ended June 30, 2011. During the six-month period ended June 30, 2012, we spent $3.6 million on net capital expenditures. During the six-month period ended June 30, 2011, we spent $4.0 million on net capital expenditures, $0.7 million related to the purchase of an FCC license and $0.6 million related to the acquisition of LER. We anticipate that our capital expenditures will be approximately $10 million

27

during the full year 2012. The amount of our anticipated capital expenditures may change based on future changes in business plans, our financial condition and general economic conditions. We expect to fund capital expenditures with cash on hand and net cash flow from operations.

Net cash flow used in financing activities was $20.7 million for the six-month period ended June 30, 2012, compared to net cash flow used in financing activities of $1.0 million for the six-month period ended June 30, 2012. During the six-month period ended June 30, 2012, we made payments of $20.0 million to repurchase debt and $0.6 million for the related debt premium. During the six-month period ended June 30, 2011, we made debt payments of $1.0 million.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

General

Market risk represents the potential loss that may impact our financial position, results of operations or cash flows due to adverse changes in the financial markets. We are not exposed to market risk from changes in the base rates as our debt is at a fixed rate. Since we pay interest at a fixed rate, any future increase in the variable interest rate would not affect our interest expense payments under the Notes. Our current policy prohibits entering into derivatives or other financial instrument transactions for speculative purposes.

Interest Rates

On July 27, 2010, we completed the offering and sale of $400 million aggregate principal amount of our Notes. The Notes were issued at a discount of 98.722% of their principal amount and mature on August 1, 2017. Interest on the Notes accrues at a rate of 8.75% per annum from the date of original issuance and is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2011. We received net proceeds of approximately $388 million from the sale of the Notes (net of bond discount of $5 million and fees of $7 million), which were used to pay all indebtedness outstanding under our previous syndicated bank credit facility, terminate the related interest rate swap agreements, pay fees and expenses related to offering of the Notes and provide capital for general corporate purposes.

ITEM 4. CONTROLS AND PROCEDURES

We conducted an evaluation, under the supervision and with the participation of management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this quarterly report. Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of the evaluation date, our disclosure controls and procedures were effective.

Our disclosure controls and procedures are designed to ensure that the information relating to our company, including our consolidated subsidiaries, required to be disclosed in our SEC reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow for timely decisions regarding required disclosure.

Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

There have not been any changes in our internal control over financial reporting during the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

28

PART II.

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We currently and from time to time are involved in litigation incidental to the conduct of our business, but we are not currently a party to any lawsuit or proceeding which, in the opinion of management, is likely to have a material adverse effect on us or our business.

ITEM 1A. RISK FACTORS

No material change.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

I TEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

Not applicable

I TEM 6. EXHIBITS

The following exhibits are attached hereto and filed herewith:

31.1*	Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.
31.2*	Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.
32*	Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document.
101.SCH**	XBRL Taxonomy Extension Schema Document.
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF**	XBRL Taxonomy Extension Definition Linkbase.

* Filed herewith.

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

29

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ENTRAVISION COMMUNICATIONS CORPORATION
By:	/s/    CHRISTOPHER T. YOUNG
	Christopher T. Young Executive Vice President, Treasurer and Chief Financial Officer

Date: August 6, 2012

30

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
31.1*	Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.
31.2*	Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934.
32*	Certification of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**	XBRL Instance Document.
101.SCH**	XBRL Taxonomy Extension Schema Document.
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF**	XBRL Taxonomy Extension Definition Linkbase.
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document.

* Filed herewith.

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

31

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934

I, Walter F. Ulloa, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Entravision Communications Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financing reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2012

/s/    WALTER F. ULLOA        

Walter F. Ulloa

Chief Executive Officer

32

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Rules 13a-14 and 15d-14 under the Securities Exchange Act of 1934

I, Christopher T. Young, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Entravision Communications Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financing reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 6, 2012

/s/    CHRISTOPHER T. YOUNG        

Christopher T. Young

Chief Financial Officer

33

EX-32

EXHIBIT 32

Certification of Periodic Financial Report by the Chief Executive Officer and

Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Solely for the purposes of complying with 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, we, the undersigned Chief Executive Officer and Chief Financial Officer of Entravision Communications Corporation (the “Company”), hereby certify, based on our knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 6, 2012

/s/    WALTER F. ULLOA        

Walter F. Ulloa

Chief Executive Officer

Date: August 6, 2012

/s/    CHRISTOPHER T. YOUNG        

Christopher T. Young

Chief Financial Officer

34

XML

Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

SEGMENT INFORMATION

3. SEGMENT INFORMATION

The Company operates in two reportable segments: television broadcasting and radio broadcasting.

Television Broadcasting

The Company owns and/or operates 53 primary television stations located primarily in California, Colorado, Connecticut, Florida, Massachusetts, Nevada, New Mexico, Texas and the Washington, D.C. area.

Radio Broadcasting

The Company owns and operates 49 radio stations (38 FM and 11 AM) located primarily in Arizona, California, Colorado, Florida, Nevada, New Mexico and Texas.

Separate financial data for each of the Company’s operating segments are provided below. Segment operating profit (loss) is defined as operating profit (loss) before corporate expenses and impairment charge. There were no significant sources of revenue generated outside the United States during the three- and six-month periods ended June 30, 2012 and 2011. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period									Six-Month Period
	Ended June 30,						% Change			Ended June 30,						% Change
	2012			2011			2012 to 2011			2012			2011			2012 to 2011
Net Revenue
Television	$	37,399		$	33,118			13	%	$	70,563		$	63,786			11	%
Radio		17,092			17,147			(0	)%		30,452			30,523			(0	)%
Consolidated		54,491			50,265			8	%		101,015			94,309			7	%
Direct operating expenses
Television		13,997			13,665			2	%		27,218			26,324			3	%
Radio		8,879			8,822			1	%		17,292			16,984			2	%
Consolidated		22,876			22,487			2	%		44,510			43,308			3	%
Selling, general and administrative expenses
Television		5,209			4,991			4	%		10,523			10,162			4	%
Radio		4,426			4,295			3	%		8,484			8,367			1	%
Consolidated		9,635			9,286			4	%		19,007			18,529			3	%
Depreciation and amortization
Television		3,303			3,539			(7	)%		6,861			7,374			(7	)%
Radio		773			886			(13	)%		1,562			1,783			(12	)%
Consolidated		4,076			4,425			(8	)%		8,423			9,157			(8	)%
Segment operating profit
Television		14,890			10,923			36	%		25,961			19,926			30	%
Radio		3,014			3,144			(4	)%		3,114			3,389			(8	)%
Consolidated		17,904			14,067			27	%		29,075			23,315			25	%
Corporate expenses		4,181			3,772			11	%		8,062			7,517			7	%
Operating income (loss)		13,723			10,295			33	%		21,013			15,798			33	%
Interest expense		(8,959	)		(9,459	)		(5	)%		(18,059	)		(18,902	)		(4	)%
Interest income		9			—			*			13			2			*
Other income (loss)		—			—			*			—			687			(100	)%
Gain (loss) on debt extinguishment		(1,230	)		—			*			(1,230	)		—			*
Income (loss) before income taxes	$	3,543		$	836			324	%	$	1,737		$	(2,415	)		*
Capital expenditures
Television	$	1,763		$	1,413					$	2,682		$	4,030
Radio		536			186						906			336
Consolidated	$	2,299		$	1,599					$	3,588		$	4,366

	June 30, 2012		December 31, 2011
Total assets
Television	$	323,786	$	342,462
Radio		123,157		124,859
Consolidated	$	446,943	$	467,321

XML

The Company and Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

The Company and Significant Accounting Policies [Abstract]

THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

2. THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

Related Party

A majority of the Company’s television stations are Univision- or TeleFutura-affiliated television stations. The Company’s network affiliation agreements with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and TeleFutura network programming in their respective markets. These long-term affiliation agreements each expire in 2021, and can be renewed for multiple, successive two-year terms at Univision’s option, subject to the Company’s consent.

Under the network affiliation agreements, Univision acts as the Company’s exclusive sales representative for the sale of national advertising on the Company’s Univision- and TeleFutura-affiliate television stations, and the Company pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on our Univision- and TeleFutura-affiliate television stations. During the three-month periods ended June 30, 2012 and 2011, the amount the Company paid Univision in this capacity was $2.5 million and $1.8 million, respectively. During the six-month periods ended June 30, 2012 and 2011, the amount the Company paid Univision in this capacity was $4.7 million and $3.5 million, respectively.

In August 2008, the Company entered into a proxy agreement with Univision pursuant to which the Company granted to Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and TeleFutura-affiliated television station signals for a term of six years, expiring December 2014. Among other things, the proxy agreement provides terms relating to compensation to be paid to the Company by Univision with respect to retransmission consent agreements entered into with Multichannel Video Programming Distributors (“MVPDs”). As of June 30, 2012, the amount due to the Company from Univision was $8.9 million related to the agreements for the carriage of its Univision and TeleFutura-affiliated television station signals.

Univision currently owns approximately 10% of the Company’s common stock on a fully-converted basis.

Stock-Based Compensation

The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.

Stock-based compensation expense related to grants of stock options and restricted stock units was $0.7 million and $0.5 million for the three-month periods ended June 30, 2012 and 2011, respectively. Stock-based compensation expense related to grants of stock options and restricted stock units was $1.0 million and $0.9 million for the six-month periods ended June 30, 2012 and 2011, respectively.

Stock Options

Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years.

	Six-Month Period Ended June 30, 2012
Fair value of options granted	$	1.26
Expected volatility		89	%
Risk-free interest rate		1.5	%
Expected lives		7.0 years
Dividend rate		—

As of June 30, 2012, there was approximately $2.5 million of total unrecognized compensation expense related to grants of stock options that is expected to be recognized over a weighted-average period of 1.9 years.

Restricted Stock Units

Stock-based compensation expense related to restricted stock units is based on the fair value of the Company’s stock price on the date of grant and is amortized over the vesting period, generally between 1 to 4 years.

As of June 30, 2012, there was approximately $0.9 million of total unrecognized compensation expense related to grants of restricted stock units that is expected to be recognized over a weighted-average period of 1.2 years.

Income (Loss) Per Share

The following table illustrates the reconciliation of the basic and diluted income per share computations required by ASC 260-10, “Earnings Per Share” (in thousands, except share and per share data):

	Three-Month Period					Six-Month Period
	Ended June 30,					Ended June 30,
	2012		2011			2012			2011
Basic earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	2,066	$	(352	)	$	(1,329	)	$	(4,784	)
Denominator:
Weighted average common shares outstanding		85,837,846		85,053,417			85,821,963			85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$	0.02	$	0.00		$	(0.02	)	$	(0.06	)
Diluted earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	2,066	$	(352	)	$	(1,329	)	$	(4,784	)
Denominator:
Weighted average common shares outstanding		85,837,846		85,053,417			85,821,963			85,046,396
Dilutive securities:
Stock options and restricted stock units		340,485		—			—			—
Diluted shares outstanding		86,178,331		85,053,417			85,821,963			85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$	0.02	$	0.00		$	(0.02	)	$	(0.06	)

Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, if any, that could occur from shares issuable through stock options, restricted stock units and convertible securities.

For the three-month period ended June 30, 2012, a total of 9,636,422 shares of dilutive securities were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares.

For the six-month period ended June 30, 2012, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 315,580 equivalent shares of dilutive securities for six-month period ended June 30, 2012.

For the three- and six-month periods ended June 30, 2011, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 722,709 and 701,308 equivalent shares of dilutive securities for the three- and six-month periods ended June 30, 2011, respectively.

Notes

On July 27, 2010, the Company completed the offering and sale of $400 million aggregate principal amount of its 8.75% Senior Secured First Lien Notes (the “Notes”). The Notes were issued at a discount of 98.722% of their principal amount and mature on August 1, 2017. Interest on the Notes accrues at a rate of 8.75% per annum from the date of original issuance and is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2011. The Company received net proceeds of approximately $388 million from the sale of the Notes (net of bond discount of $5 million and fees of $7 million), which were used to pay all indebtedness outstanding under the previous syndicated bank credit facility, terminate the related interest rate swap agreements, pay fees and expenses related to the offering of the Notes and for general corporate purposes.

During the fourth quarter of 2011, the Company repurchased Notes on the open market with a principal amount of $16.2 million. The Company recorded a loss on debt extinguishment of $0.4 million primarily due to the write off of unamortized finance costs and unamortized bond discount.

On May 30, 2012, the Company repurchased Notes with a principal amount of $20.0 million pursuant to the optional redemption provisions in the Indenture. The redemption price for the redeemed Notes was 103% of the principal amount plus all accrued and unpaid interest. The Company recorded a loss on debt extinguishment of $1.2 million related to the premium paid and the write off of unamortized finance costs and unamortized bond discount.

The Notes are guaranteed on a senior secured basis by all of the existing and future wholly-owned domestic subsidiaries (the “Note Guarantors”). The Notes and the guarantees rank equal in right of payment to all of the Company’s and the guarantors’ existing and future senior indebtedness and senior in right of payment to all of the Company’s and the Note Guarantors’ existing and future subordinated indebtedness. In addition, the Notes and the guarantees are effectively junior: (i) to the Company’s and the Note Guarantors’ indebtedness secured by assets that are not collateral; (ii) pursuant to an Intercreditor Agreement entered into at the same time that the Company entered into the 2010 Credit Facility described below; and (iii) to all of the liabilities of any of the Company’s existing and future subsidiaries that do not guarantee the Notes, to the extent of the assets of those subsidiaries. The Notes are secured by substantially all of the assets, as well as the pledge of the stock of substantially all of the subsidiaries, including the special purpose subsidiary formed to hold the Company’s FCC licenses.

At the Company’s option, the Company may redeem:

• prior to August 1, 2013, on one or more occasions, up to 10% of the original principal amount of the Notes during each 12-month period beginning on August 1, 2010, at a redemption price equal to 103% of the principal amount of the Notes, plus accrued and unpaid interest;

• prior to August 1, 2013, on one or more occasions, up to 35% of the original principal amount of the Notes with the net proceeds from certain equity offerings, at a redemption price of 108.750% of the principal amount of the Notes, plus accrued and unpaid interest; provided that: (i) at least 65% of the aggregate principal amount of all Notes issued under the Indenture remains outstanding immediately after such redemption; and (ii) such redemption occurs within 60 days of the date of closing of any such equity offering;

• prior to August 1, 2013, some or all of the Notes may be redeemed at a redemption price equal to 100% of the principal amount of the Notes plus a “make-whole” premium plus accrued and unpaid interest; and

• on or after August 1, 2013, some or all of the Notes may be redeemed at a redemption price of: (i) 106.563% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2013; (ii) 104.375% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2014; (iii) 102.188% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2015; and (iv) 100% of the principal amount of the Notes if redeemed on or after August 1, 2016, in each case plus accrued and unpaid interest.

In addition, upon a change of control of the Company, as defined in the indenture governing the issuance of the Notes (the “Indenture”), the Company must make an offer to repurchase all Notes then outstanding, at a purchase price equal to 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest. In addition, we may at any time and from time to time purchase Notes in the open market or otherwise.

Upon an event of default, as defined in the Indenture, the Notes will become due and payable: (i) immediately without further notice if such event of default arises from events of bankruptcy or insolvency of the Company, any Note Guarantor or any restricted subsidiary; or (ii) upon a declaration of acceleration of the Notes in writing to the Company by the Trustee or holders representing 25% of the aggregate principal amount of the Notes then outstanding, if an event of default occurs and is continuing. The Indenture contains additional provisions that are customary for an agreement of this type, including indemnification by the Company and the Note Guarantors.

The carrying amount and estimated fair value of the Notes as of June 30, 2012 was $360.2 million and $387.4 million, respectively. The estimated fair value is based on quoted market prices for the Notes.

The Company recognized an increase in interest expense related to amortization of the bond discount of $0.1 million for each of the three-month periods ended June 30, 2012 and 2011. The Company recognized an increase in interest expense related to amortization of the bond discount of $0.3 million for each of the six-month periods ended June 30, 2012 and 2011.

2010 Credit Facility

On July 27, 2010, the Company also entered into a $50 million revolving credit facility (“2010 Credit Facility”) and terminated the amended syndicated bank credit facility agreement. The 2010 Credit Facility consists of a three-year $50 million revolving credit facility that expires on July 27, 2013, which includes a $3 million sub-facility for letters of credit. In addition, the Company may increase the aggregate principal amount of the 2010 Credit Facility by up to an additional $50 million, subject to the Company satisfying certain conditions. As of June 30, 2012, the Company had approximately $0.7 million in outstanding letters of credit. The Company currently has no outstanding borrowings under the 2010 Credit Facility.

The 2010 Credit Facility is guaranteed on a senior secured basis by all of the Company’s existing and future wholly-owned domestic subsidiaries (the “Credit Guarantors”), which are also the Note Guarantors (collectively, the “Guarantors”). The 2010 Credit Facility is secured on a first priority basis by the Company’s and the Credit Guarantors’ assets, which also secure the Notes. The Company’s borrowings, if any, under the 2010 Credit Facility rank senior to the Notes upon the terms set forth in the Intercreditor Agreement that the Company entered into in connection with the 2010 Credit Facility. The 2010 Credit Facility is secured by substantially all of the assets, as well as the pledge of the stock of substantially all of the subsidiaries, including the special purpose subsidiary formed to hold the Company’s FCC licenses.

In February 2012, the Company entered into an amendment to the credit agreement governing the 2010 Credit Facility (the “amended Credit Agreement”). The amendment changed certain thresholds for financial covenants relating to total leverage ratio, fixed charge coverage ratio, cash interest coverage ratio and revolving credit facility leverage ratio. In addition, on or after March 31, 2012, the financial covenants shall not be applicable unless any loans are outstanding on the relevant date. The amendment also contains other provisions that are customary for an agreement of this type.

Borrowings under the 2010 Credit Facility bear interest at either: (i) the Base Rate (as defined in the amended Credit Agreement) plus a margin of 3.375% per annum; or (ii) LIBOR plus a margin of 4.375% per annum. The Company has not drawn on the 2010 Credit Facility.

Upon an event of default, as defined in the amended Credit Agreement, the lenders may, among other things, suspend or terminate their obligation to make further loans to the Company and/or declare all amounts then outstanding under the 2010 Credit Facility to be immediately due and payable. The amended Credit Agreement also contains additional provisions that are customary for an agreement of this type, including indemnification by the Company and the Credit Guarantors.

In connection with the Company entering into the Indenture and the amended Credit Agreement, the Company and the Guarantors also entered into the following agreements:

• A Security Agreement, pursuant to which the Company and the Guarantors each granted a first priority security interests in the collateral securing the Notes and the 2010 Credit Facility for the benefit of the holders of the Notes and the lenders under the 2010 Credit Facility; and

• An Intercreditor Agreement, in order to define the relative rights of the holders of the Notes and the lenders under the 2010 Credit Facility with respect to the collateral securing the Company’s and the Guarantors’ respective obligations under the Notes and the 2010 Credit Facility.

• A Registration Rights Agreement, pursuant to which the Company registered the Notes and successfully conducted an exchange offering for the Notes in unregistered form, as originally issued.

Subject to certain exceptions, both the Indenture and the amended Credit Agreement contain various provisions that limit the Company’s ability, among other things, to:

• incur additional indebtedness;

• incur liens;

• merge, dissolve, consolidate, or sell all or substantially all of the Company’s assets;

• make certain investments;

• make certain restricted payments;

• declare certain dividends or distributions or repurchase shares of the Company’s capital stock;

• enter into certain transactions with affiliates; and

• change the nature of the Company’s business.

In addition, the Indenture contains various provisions that limit the Company’s ability to:

• apply the proceeds from certain asset sales other than in accordance with the terms of the Indenture; and

• restrict dividends or other payments from subsidiaries.

In addition, the amended Credit Agreement contains various provisions that limit the Company’s ability to:

• dispose of certain assets; and

• amend the Company’s or any guarantor’s organizational documents of the Company in any way that is materially adverse to the lenders under the 2010 Credit Facility.

Moreover, if the Company fails to comply with any of the financial covenants or ratios under the 2010 Credit Facility, the lenders could:

• Elect to declare all amounts borrowed to be immediately due and payable, together with accrued and unpaid interest; and/or

• Terminate their commitments, if any, to make further extensions of credit.

In addition, if the Company’s total leverage ratio exceeds 6.50 to 1.00 as of the end of the most recently completed fiscal quarter, the maximum principal outstanding amount of all loans under the Company’s 2010 Credit Facility cannot exceed $25.0 million. In the event that the maximum principal outstanding amount exceeds $25.0 million in that case, the Company must immediately prepay outstanding revolving loans in an amount sufficient to eliminate such excess.

Recent Accounting Pronouncements

There have been no developments to recently issued accounting standards applicable to the Company, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements, from those disclosed in the Company’s 2011 Annual Report on Form 10-K.

XML

Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 40,757	$ 58,719
Trade receivables, net of allowance for doubtful accounts of $4,286 and $3,926 (including related parties of $8,914 and $5,608)	48,306	44,270
Prepaid expenses and other current assets (including related parties of $274 and $274)	5,697	5,939
Total current assets	94,760	108,928
Property and equipment, net	61,923	65,226
Intangible assets subject to amortization, net (including related parties of $22,039 and $23,513)	23,067	24,598
Intangible assets not subject to amortization	220,701	220,701
Goodwill	36,647	36,647
Other assets	9,845	11,221
Total assets	446,943	467,321
Current liabilities
Advances payable, related parties	118	118
Accounts payable and accrued expenses (including related parties of $3,891 and $5,691)	37,466	39,750
Total current liabilities	37,584	39,868
Long-term debt, less current maturities (net of bond discount of $3,641 and $4,134)	360,155	379,662
Other long-term liabilities	7,666	8,327
Deferred income taxes	42,430	40,025
Total liabilities	447,835	467,882
Commitments and contingencies (note 4)
Stockholders' equity (deficit)
Additional paid-in capital	939,451	938,453
Accumulated deficit	(940,351)	(939,022)
Total stockholders' equity (deficit)	(892)	(561)
Total liabilities and stockholders' equity (deficit)	446,943	467,321
Class A common Stock
Stockholders' equity (deficit)
Common stock	5	5
Class B Common Stock
Stockholders' equity (deficit)
Common stock	2	2
Class U common stock
Stockholders' equity (deficit)
Common stock	$ 1	$ 1

XML

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income (loss)	$ (1,329)	$ (4,784)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	8,423	9,157
Deferred income taxes	2,405	1,617
Amortization of debt issue costs	1,137	1,086
Amortization of syndication contracts	381	1,143
Payments on syndication contracts	(934)	(955)
Non-cash stock-based compensation	998	864
Other income (loss)		(687)
Gain (loss) on debt extinguishment	1,230
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in restricted cash		809
(Increase) decrease in accounts receivable	(3,771)	1,605
(Increase) decrease in prepaid expenses and other assets	(177)	47
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(1,998)	(783)
Net cash provided by (used in) operating activities	6,365	9,119
Cash flows from investing activities:
Purchases of property and equipment and intangibles	(3,647)	(4,702)
Purchase of a business		(551)
Net cash provided by (used in) investing activities	(3,647)	(5,253)
Cash flows from financing activities:
Proceeds from issuance of common stock		42
Payments on long-term debt	(20,600)	(1,000)
Payments of deferred debt and offering costs	(80)	(29)
Net cash provided by (used in) financing activities	(20,680)	(987)
Net increase (decrease) in cash and cash equivalents	(17,962)	2,879
Cash and cash equivalents:
Beginning	58,719	72,390
Ending	40,757	75,269
Supplemental disclosures of cash flow information:
Cash payments for Interest	17,651	18,205
Cash payments for Income taxes	$ 661	$ 752

XML

Condensed Consolidating Financial Statements (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidating Statement of Operations
Net revenue	$ 54,491	$ 50,265	$ 101,015	$ 94,309
Expenses:
Direct operating expenses	22,876	22,487	44,510	43,308
Selling, general and administrative expenses	9,635	9,286	19,007	18,529
Corporate expenses	4,181	3,772	8,062	7,517
Depreciation and amortization	4,076	4,425	8,423	9,157
Total expenses	40,768	39,970	80,002	78,511
Operating income (loss)	13,723	10,295	21,013	15,798
Interest expense (including related parties of $0, $15, $0 and $30) (note 2)	(8,959)	(9,459)	(18,059)	(18,902)
Interest income	9		13	2
Other income (loss)				687
Gain (loss) on debt extinguishment	(1,230)		(1,230)
Income (loss) before income taxes	3,543	836	1,737	(2,415)
Income tax (expense) benefit	(1,477)	(1,188)	(3,066)	(2,369)
Income (loss) before equity in net income (loss) of subsidiaries	2,066	(352)	(1,329)	(4,784)
Equity in income (loss) of subsidiaries
Net income (loss) applicable to common stockholders	2,066	(352)	(1,329)	(4,784)
Parent [Member]
Consolidating Statement of Operations
Net revenue	54,360	49,863	100,309	93,696
Expenses:
Direct operating expenses	22,859	22,766	44,379	43,865
Selling, general and administrative expenses	9,516	9,150	18,761	18,265
Corporate expenses	4,181	3,772	8,062	7,517
Depreciation and amortization	3,898	4,221	8,059	8,748
Total expenses	40,454	39,909	79,261	78,395
Operating income (loss)	13,906	9,954	21,048	15,301
Interest expense (including related parties of $0, $15, $0 and $30) (note 2)	(8,959)	(9,459)	(18,059)	(18,902)
Interest income	9		13	2
Other income (loss)				687
Gain (loss) on debt extinguishment	(1,230)		(1,230)
Income (loss) before income taxes	3,726	495	1,772	(2,912)
Income tax (expense) benefit	(570)	(145)	(1,066)	(394)
Income (loss) before equity in net income (loss) of subsidiaries	3,156	350	706	(3,306)
Equity in income (loss) of subsidiaries	(1,090)	(702)	(2,035)	(1,478)
Net income (loss) applicable to common stockholders	2,066	(352)	(1,329)	(4,784)
Guarantor Subsidiaries [Member]
Consolidating Statement of Operations
Net revenue
Expenses:
Direct operating expenses
Selling, general and administrative expenses
Corporate expenses
Depreciation and amortization
Total expenses
Operating income (loss)
Interest expense (including related parties of $0, $15, $0 and $30) (note 2)
Interest income
Gain (loss) on debt extinguishment
Income (loss) before income taxes
Income tax (expense) benefit	(1,010)	(851)	(2,020)	(1,695)
Income (loss) before equity in net income (loss) of subsidiaries	(1,010)	(851)	(2,020)	(1,695)
Equity in income (loss) of subsidiaries
Net income (loss) applicable to common stockholders	(1,010)	(851)	(2,020)	(1,695)
Non-Guarantor Subsidiaries [Member]
Consolidating Statement of Operations
Net revenue	496	1,106	1,342	1,949
Expenses:
Direct operating expenses	382	425	767	779
Selling, general and administrative expenses	119	136	246	264
Corporate expenses
Depreciation and amortization	178	204	364	409
Total expenses	679	765	1,377	1,452
Operating income (loss)	(183)	341	(35)	497
Interest expense (including related parties of $0, $15, $0 and $30) (note 2)
Interest income
Gain (loss) on debt extinguishment
Income (loss) before income taxes	(183)	341	(35)	497
Income tax (expense) benefit	103	(192)	20	(280)
Income (loss) before equity in net income (loss) of subsidiaries	(80)	149	(15)	217
Equity in income (loss) of subsidiaries
Net income (loss) applicable to common stockholders	(80)	149	(15)	217
Eliminations [Member]
Consolidating Statement of Operations
Net revenue	(365)	(704)	(636)	(1,336)
Expenses:
Direct operating expenses	(365)	(704)	(636)	(1,336)
Selling, general and administrative expenses
Corporate expenses
Depreciation and amortization
Total expenses	(365)	(704)	(636)	(1,336)
Operating income (loss)
Interest expense (including related parties of $0, $15, $0 and $30) (note 2)
Interest income
Gain (loss) on debt extinguishment
Income (loss) before income taxes
Income tax (expense) benefit
Income (loss) before equity in net income (loss) of subsidiaries
Equity in income (loss) of subsidiaries	1,090	702	2,035	1,478
Net income (loss) applicable to common stockholders	$ 1,090	$ 702	$ 2,035	$ 1,478

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2012

Basis of Presentation [Abstract]

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION

Presentation

The consolidated financial statements included herein have been prepared by Entravision Communications Corporation (the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. These consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2011 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. The unaudited information contained herein has been prepared on the same basis as the Company’s audited consolidated financial statements and, in the opinion of the Company’s management, includes all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the information for the periods presented. The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2012 or any other future period.

XML

Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Trade receivables, allowance for doubtful accounts	$ 4,286	$ 3,926
Prepaid expenses and other current assets (including related parties of $274 and $274)	5,697	5,939
Intangible assets subject to amortization, net (including related parties of $22,039 and $23,513)	23,067	24,598
Accounts payable and accrued expenses (including related parties of $3,891 and $5,691)	37,466	39,750
Long-term debt, less current maturities, bond discount	3,641	4,134
Class A common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	260,000,000	260,000,000
Common stock, shares issued	54,354,226	53,514,769
Common stock, shares outstanding	54,354,226	53,514,769
Class B Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	22,188,161	22,188,161
Common stock, shares outstanding	22,188,161	22,188,161
Class U common stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	9,352,729	9,352,729
Common stock, shares outstanding	9,352,729	9,352,729
Related Parties
Trade receivables, related parties	8,914	5,608
Prepaid expenses and other current assets (including related parties of $274 and $274)	274	274
Intangible assets subject to amortization, net (including related parties of $22,039 and $23,513)	22,039	23,513
Accounts payable and accrued expenses (including related parties of $3,891 and $5,691)	$ 3,891	$ 5,691

XML

The Company and Significant Accounting Policies (Details 1) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Numerator:
Net income (loss) applicable to common stockholders	$ 2,066	$ (352)	$ (1,329)	$ (4,784)
Denominator:
Weighted average common shares outstanding	85,837,846	85,053,417	85,821,963	85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$ 0.02	$ 0.00	$ (0.02)	$ 0.06
Numerator:
Net income (loss) applicable to common stockholders	$ 2,066	$ (352)	$ (1,329)	$ (4,784)
Denominator:
Weighted average common shares outstanding	85,837,846	85,053,417	85,821,963	85,046,396
Dilutive securities:
Stock options and restricted stock units	340,485
Diluted shares outstanding	86,178,331	85,053,417	85,821,963	85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$ 0.02	$ 0.00	$ (0.02)	$ 0.06

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 01, 2012 Class A common Stock	Aug. 01, 2012 Class B Common Stock	Aug. 01, 2012 Class U common stock
Entity Registrant Name	ENTRAVISION COMMUNICATIONS CORP
Entity Central Index Key	0001109116
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		54,354,226	22,188,161	9,352,729

XML

The Company and Significant Accounting Policies (Details Textual) (USD $)	1 Months Ended	3 Months Ended		6 Months Ended				6 Months Ended		6 Months Ended			1 Months Ended	6 Months Ended		6 Months Ended				3 Months Ended		6 Months Ended
	May 31, 2012	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	May 30, 2012	Dec. 31, 2011	Jun. 30, 2012 2010 Credit Facility [Member]	Jul. 27, 2010 2010 Credit Facility [Member]	Jun. 30, 2012 Restricted Stock [Member]	Jun. 30, 2012 Letter of Credit [Member] 2010 Credit Facility [Member]	Jul. 27, 2010 Letter of Credit [Member] 2010 Credit Facility [Member]	Jul. 31, 2010 8.75% Senior Secured First Lien Notes [Member]	Jun. 30, 2012 8.75% Senior Secured First Lien Notes [Member]	Jul. 27, 2010 8.75% Senior Secured First Lien Notes [Member]	Jun. 30, 2012 Minimum [Member]	Jun. 30, 2012 Minimum [Member] Restricted Stock [Member]	Jun. 30, 2012 Maximum [Member]	Jun. 30, 2012 Maximum [Member] Restricted Stock [Member]	Jun. 30, 2012 Univision [Member]	Jun. 30, 2011 Univision [Member]	Jun. 30, 2012 Univision [Member]	Jun. 30, 2011 Univision [Member]
Related Party Transaction [Line Items]
Expiry year of long-term affiliation agreements																						2021
Renewal period of affiliation agreements																						2 years
Payment of sales representation fees to television stations																				$ 2,500,000	$ 1,800,000	$ 4,700,000	$ 3,500,000
Period to grant television station for terms of retransmission consent agreements																						6 years
Amount due from television stations for carriage																				8,900,000		8,900,000
Company's common stock owned by related party on fully-converted basis																				10.00%		10.00%
Amortization period of stock based compensation expense																1 year	1 year	4 years	4 years
Unrecognized compensation expense related to grants of restricted stock units										900,000
Weighted-average period for unrecognized compensation expense				1 year 10 months 24 days						1 year 2 months 12 days
Aggregate principal amount of Senior Secured First Lien Notes															400,000,000
Interest rate of notes															8.75%
Issuance price as percentage of principal amount															98.722%
Maturity date of notes														Aug. 01, 2017
Net proceeds received from the sale of the Notes													388,000,000
Discount on bond														5,000,000
Fees for sale of notes														7,000,000
Amount of revolving credit facility									50,000,000			3,000,000
Period of revolving credit facility				3 years
Maturity date of revolving credit facility								Jul. 27, 2013
Outstanding letters of credit											700,000
Company's total leverage ratio				6.50%
Maximum principal outstanding amount of loans				25,000,000
Interest rate on borrowings under 2010 Credit Facility								Base Rate (as defined in the credit agreement governing the 2010 Credit Facility (the “Credit Agreement”)) plus a margin of 3.375% per annum; or (ii) LIBOR plus a margin of 4.375% per annum
Increase in aggregate principal amount 2010 Credit Facility								50,000,000
Variable interest rate spread in addition to LIBOR under condition Two								4.375%
Variable interest rate spread to under condition one								3.375%
The Company and Significant Accounting Policies (Textual) [Abstract]
Stock-based compensation expense related to grants of stock options and restricted stock units		700,000	500,000	998,000	864,000
Unrecognized compensation expense related to grants of stock options		2,500,000		2,500,000
Weighted average period for unrecognized compensation expense related to grants of stock options				1 year 10 months 24 days						1 year 2 months 12 days
Weighted average shares outstanding of diluted securities, not included for diluted income per share		9,636,422	722,709	315,580	701,308
Maximum percentage of original principal amount to be redeem				10.00%
Repurchased notes, principal amount						20,000,000	16,200,000
Loss on debt extinguishment	1,200,000			400,000
Percentage of redemption price				103.00%
Maximum principal outstanding amount of loans				25,000,000
Maximum percentage of original principal amount with net proceeds from equity offering to be redeemed				35.00%
Percentage of redemption price to be redeemed of principal amount plus accrued unpaid interest				108.75%
Minimum percentage of indenture remains outstanding				65.00%
Number of days before the date of closing of equity offering for occurrence of redemption				60 days
Percentage of redemption price to be redeemed of principal amount plus premium				100.00%
Percentage of redemption price to be redeemed of principal amount at August 1, 2013				106.563%
Percentage of redemption price to be redeemed of principal amount at August 1, 2014				104.375%
Percentage of redemption price to be redeemed of principal amount at August 1, 2015				102.188%
Percentage of redemption price to be redeemed of principal amount at August 1, 2016				100.00%
Purchase price as a percentage of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest				101.00%
Percentage of the aggregate principal amount of the outstanding Notes represented by the Trustee or holders				25.00%
Carrying amount of notes		360,200,000		360,200,000
Fair value of notes		387,400,000		387,400,000
Increase in interest expense related to amortization of bond discount		$ 100,000	$ 100,000	$ 300,000	$ 300,000

XML

Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statements of Operations [Abstract]
Net revenue	$ 54,491	$ 50,265	$ 101,015	$ 94,309
Expenses:
Direct operating expenses (including related parties of $2,461, $1,815, $4,705 and $3,519) (including non cash stock- based compensation of $43, $53, $56 and $104)	22,876	22,487	44,510	43,308
Selling, general and administrative expenses (including non-cash stock-based compensation of $215, $159, $324 and $315)	9,635	9,286	19,007	18,529
Corporate expenses (including non-cash stock-based compensation of $479, $289, $618 and $445)	4,181	3,772	8,062	7,517
Depreciation and amortization (includes direct operating of $3,076, $3,352, $6,217 and $6,678; selling, general and administrative of $720, $798, $1,437 and $1,619; and corporate of $280, $275, $769 and $860) (including related parties of $580, $627, $1,473 and $1,520)	4,076	4,425	8,423	9,157
Total expenses	40,768	39,970	80,002	78,511
Operating income (loss)	13,723	10,295	21,013	15,798
Interest expense (including related parties of $0, $15, $0 and $30) (note 2)	(8,959)	(9,459)	(18,059)	(18,902)
Interest income	9		13	2
Other income (loss)				687
Gain (loss) on debt extinguishment	(1,230)		(1,230)
Income (loss) before income taxes	3,543	836	1,737	(2,415)
Income tax (expense) benefit	(1,477)	(1,188)	(3,066)	(2,369)
Net income (loss) applicable to common stockholders	$ 2,066	$ (352)	$ (1,329)	$ (4,784)
Basic and diluted earnings per share:
Net income (loss) per share applicable to common stockholders, basic and diluted	$ 0.02	$ 0.00	$ (0.02)	$ (0.06)
Weighted average common shares outstanding	85,837,846	85,053,417	85,821,963	85,046,396
Weighted average common shares outstanding, diluted	86,178,331	85,053,417	85,821,963	85,046,396

XML

The Company and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

The Company and Significant Accounting Policies [Abstract]

Related Party

Related Party

A majority of the Company’s television stations are Univision- or TeleFutura-affiliated television stations. The Company’s network affiliation agreements with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and TeleFutura network programming in their respective markets. These long-term affiliation agreements each expire in 2021, and can be renewed for multiple, successive two-year terms at Univision’s option, subject to the Company’s consent.

Under the network affiliation agreements, Univision acts as the Company’s exclusive sales representative for the sale of national advertising on the Company’s Univision- and TeleFutura-affiliate television stations, and the Company pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on our Univision- and TeleFutura-affiliate television stations. During the three-month periods ended June 30, 2012 and 2011, the amount the Company paid Univision in this capacity was $2.5 million and $1.8 million, respectively. During the six-month periods ended June 30, 2012 and 2011, the amount the Company paid Univision in this capacity was $4.7 million and $3.5 million, respectively.

In August 2008, the Company entered into a proxy agreement with Univision pursuant to which the Company granted to Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and TeleFutura-affiliated television station signals for a term of six years, expiring December 2014. Among other things, the proxy agreement provides terms relating to compensation to be paid to the Company by Univision with respect to retransmission consent agreements entered into with Multichannel Video Programming Distributors (“MVPDs”). As of June 30, 2012, the amount due to the Company from Univision was $8.9 million related to the agreements for the carriage of its Univision and TeleFutura-affiliated television station signals.

Univision currently owns approximately 10% of the Company’s common stock on a fully-converted basis.

Stock-Based Compensation

Stock-Based Compensation

The Company measures all stock-based awards using a fair value method and recognizes the related stock-based compensation expense in the consolidated financial statements over the requisite service period. As stock-based compensation expense recognized in the Company’s consolidated financial statements is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.

Stock-based compensation expense related to grants of stock options and restricted stock units was $0.7 million and $0.5 million for the three-month periods ended June 30, 2012 and 2011, respectively. Stock-based compensation expense related to grants of stock options and restricted stock units was $1.0 million and $0.9 million for the six-month periods ended June 30, 2012 and 2011, respectively.

Stock Options

Stock-based compensation expense related to stock options is based on the fair value on the date of grant using the Black-Scholes option pricing model and is amortized over the vesting period, generally between 1 to 4 years.

	Six-Month Period Ended June 30, 2012
Fair value of options granted	$	1.26
Expected volatility		89	%
Risk-free interest rate		1.5	%
Expected lives		7.0 years
Dividend rate		—

As of June 30, 2012, there was approximately $2.5 million of total unrecognized compensation expense related to grants of stock options that is expected to be recognized over a weighted-average period of 1.9 years.

Restricted Stock Units

Stock-based compensation expense related to restricted stock units is based on the fair value of the Company’s stock price on the date of grant and is amortized over the vesting period, generally between 1 to 4 years.

As of June 30, 2012, there was approximately $0.9 million of total unrecognized compensation expense related to grants of restricted stock units that is expected to be recognized over a weighted-average period of 1.2 years.

Income (Loss) Per Share

Income (Loss) Per Share

The following table illustrates the reconciliation of the basic and diluted income per share computations required by ASC 260-10, “Earnings Per Share” (in thousands, except share and per share data):

	Three-Month Period					Six-Month Period
	Ended June 30,					Ended June 30,
	2012		2011			2012			2011
Basic earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	2,066	$	(352	)	$	(1,329	)	$	(4,784	)
Denominator:
Weighted average common shares outstanding		85,837,846		85,053,417			85,821,963			85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$	0.02	$	0.00		$	(0.02	)	$	(0.06	)
Diluted earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	2,066	$	(352	)	$	(1,329	)	$	(4,784	)
Denominator:
Weighted average common shares outstanding		85,837,846		85,053,417			85,821,963			85,046,396
Dilutive securities:
Stock options and restricted stock units		340,485		—			—			—
Diluted shares outstanding		86,178,331		85,053,417			85,821,963			85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$	0.02	$	0.00		$	(0.02	)	$	(0.06	)

Basic income (loss) per share is computed as net income (loss) divided by the weighted average number of shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, if any, that could occur from shares issuable through stock options, restricted stock units and convertible securities.

For the three-month period ended June 30, 2012, a total of 9,636,422 shares of dilutive securities were not included in the computation of diluted income per share because the exercise prices of the dilutive securities were greater than the average market price of the common shares.

For the six-month period ended June 30, 2012, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 315,580 equivalent shares of dilutive securities for six-month period ended June 30, 2012.

For the three- and six-month periods ended June 30, 2011, all dilutive securities have been excluded as their inclusion would have had an antidilutive effect on loss per share. The number of securities whose conversion would result in an incremental number of shares that would be included in determining the weighted average shares outstanding for diluted earnings per share if their effect was not antidilutive was 722,709 and 701,308 equivalent shares of dilutive securities for the three- and six-month periods ended June 30, 2011, respectively.

2010 Credit Facility

Notes

On July 27, 2010, the Company completed the offering and sale of $400 million aggregate principal amount of its 8.75% Senior Secured First Lien Notes (the “Notes”). The Notes were issued at a discount of 98.722% of their principal amount and mature on August 1, 2017. Interest on the Notes accrues at a rate of 8.75% per annum from the date of original issuance and is payable semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2011. The Company received net proceeds of approximately $388 million from the sale of the Notes (net of bond discount of $5 million and fees of $7 million), which were used to pay all indebtedness outstanding under the previous syndicated bank credit facility, terminate the related interest rate swap agreements, pay fees and expenses related to the offering of the Notes and for general corporate purposes.

During the fourth quarter of 2011, the Company repurchased Notes on the open market with a principal amount of $16.2 million. The Company recorded a loss on debt extinguishment of $0.4 million primarily due to the write off of unamortized finance costs and unamortized bond discount.

On May 30, 2012, the Company repurchased Notes with a principal amount of $20.0 million pursuant to the optional redemption provisions in the Indenture. The redemption price for the redeemed Notes was 103% of the principal amount plus all accrued and unpaid interest. The Company recorded a loss on debt extinguishment of $1.2 million related to the premium paid and the write off of unamortized finance costs and unamortized bond discount.

The Notes are guaranteed on a senior secured basis by all of the existing and future wholly-owned domestic subsidiaries (the “Note Guarantors”). The Notes and the guarantees rank equal in right of payment to all of the Company’s and the guarantors’ existing and future senior indebtedness and senior in right of payment to all of the Company’s and the Note Guarantors’ existing and future subordinated indebtedness. In addition, the Notes and the guarantees are effectively junior: (i) to the Company’s and the Note Guarantors’ indebtedness secured by assets that are not collateral; (ii) pursuant to an Intercreditor Agreement entered into at the same time that the Company entered into the 2010 Credit Facility described below; and (iii) to all of the liabilities of any of the Company’s existing and future subsidiaries that do not guarantee the Notes, to the extent of the assets of those subsidiaries. The Notes are secured by substantially all of the assets, as well as the pledge of the stock of substantially all of the subsidiaries, including the special purpose subsidiary formed to hold the Company’s FCC licenses.

At the Company’s option, the Company may redeem:

• prior to August 1, 2013, on one or more occasions, up to 10% of the original principal amount of the Notes during each 12-month period beginning on August 1, 2010, at a redemption price equal to 103% of the principal amount of the Notes, plus accrued and unpaid interest;

• prior to August 1, 2013, on one or more occasions, up to 35% of the original principal amount of the Notes with the net proceeds from certain equity offerings, at a redemption price of 108.750% of the principal amount of the Notes, plus accrued and unpaid interest; provided that: (i) at least 65% of the aggregate principal amount of all Notes issued under the Indenture remains outstanding immediately after such redemption; and (ii) such redemption occurs within 60 days of the date of closing of any such equity offering;

• prior to August 1, 2013, some or all of the Notes may be redeemed at a redemption price equal to 100% of the principal amount of the Notes plus a “make-whole” premium plus accrued and unpaid interest; and

• on or after August 1, 2013, some or all of the Notes may be redeemed at a redemption price of: (i) 106.563% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2013; (ii) 104.375% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2014; (iii) 102.188% of the principal amount of the Notes if redeemed during the twelve-month period beginning on August 1, 2015; and (iv) 100% of the principal amount of the Notes if redeemed on or after August 1, 2016, in each case plus accrued and unpaid interest.

In addition, upon a change of control of the Company, as defined in the indenture governing the issuance of the Notes (the “Indenture”), the Company must make an offer to repurchase all Notes then outstanding, at a purchase price equal to 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest. In addition, we may at any time and from time to time purchase Notes in the open market or otherwise.

Upon an event of default, as defined in the Indenture, the Notes will become due and payable: (i) immediately without further notice if such event of default arises from events of bankruptcy or insolvency of the Company, any Note Guarantor or any restricted subsidiary; or (ii) upon a declaration of acceleration of the Notes in writing to the Company by the Trustee or holders representing 25% of the aggregate principal amount of the Notes then outstanding, if an event of default occurs and is continuing. The Indenture contains additional provisions that are customary for an agreement of this type, including indemnification by the Company and the Note Guarantors.

The carrying amount and estimated fair value of the Notes as of June 30, 2012 was $360.2 million and $387.4 million, respectively. The estimated fair value is based on quoted market prices for the Notes.

The Company recognized an increase in interest expense related to amortization of the bond discount of $0.1 million for each of the three-month periods ended June 30, 2012 and 2011. The Company recognized an increase in interest expense related to amortization of the bond discount of $0.3 million for each of the six-month periods ended June 30, 2012 and 2011.

2010 Credit Facility

On July 27, 2010, the Company also entered into a $50 million revolving credit facility (“2010 Credit Facility”) and terminated the amended syndicated bank credit facility agreement. The 2010 Credit Facility consists of a three-year $50 million revolving credit facility that expires on July 27, 2013, which includes a $3 million sub-facility for letters of credit. In addition, the Company may increase the aggregate principal amount of the 2010 Credit Facility by up to an additional $50 million, subject to the Company satisfying certain conditions. As of June 30, 2012, the Company had approximately $0.7 million in outstanding letters of credit. The Company currently has no outstanding borrowings under the 2010 Credit Facility.

The 2010 Credit Facility is guaranteed on a senior secured basis by all of the Company’s existing and future wholly-owned domestic subsidiaries (the “Credit Guarantors”), which are also the Note Guarantors (collectively, the “Guarantors”). The 2010 Credit Facility is secured on a first priority basis by the Company’s and the Credit Guarantors’ assets, which also secure the Notes. The Company’s borrowings, if any, under the 2010 Credit Facility rank senior to the Notes upon the terms set forth in the Intercreditor Agreement that the Company entered into in connection with the 2010 Credit Facility. The 2010 Credit Facility is secured by substantially all of the assets, as well as the pledge of the stock of substantially all of the subsidiaries, including the special purpose subsidiary formed to hold the Company’s FCC licenses.

In February 2012, the Company entered into an amendment to the credit agreement governing the 2010 Credit Facility (the “amended Credit Agreement”). The amendment changed certain thresholds for financial covenants relating to total leverage ratio, fixed charge coverage ratio, cash interest coverage ratio and revolving credit facility leverage ratio. In addition, on or after March 31, 2012, the financial covenants shall not be applicable unless any loans are outstanding on the relevant date. The amendment also contains other provisions that are customary for an agreement of this type.

Borrowings under the 2010 Credit Facility bear interest at either: (i) the Base Rate (as defined in the amended Credit Agreement) plus a margin of 3.375% per annum; or (ii) LIBOR plus a margin of 4.375% per annum. The Company has not drawn on the 2010 Credit Facility.

Upon an event of default, as defined in the amended Credit Agreement, the lenders may, among other things, suspend or terminate their obligation to make further loans to the Company and/or declare all amounts then outstanding under the 2010 Credit Facility to be immediately due and payable. The amended Credit Agreement also contains additional provisions that are customary for an agreement of this type, including indemnification by the Company and the Credit Guarantors.

In connection with the Company entering into the Indenture and the amended Credit Agreement, the Company and the Guarantors also entered into the following agreements:

• A Security Agreement, pursuant to which the Company and the Guarantors each granted a first priority security interests in the collateral securing the Notes and the 2010 Credit Facility for the benefit of the holders of the Notes and the lenders under the 2010 Credit Facility; and

• An Intercreditor Agreement, in order to define the relative rights of the holders of the Notes and the lenders under the 2010 Credit Facility with respect to the collateral securing the Company’s and the Guarantors’ respective obligations under the Notes and the 2010 Credit Facility.

• A Registration Rights Agreement, pursuant to which the Company registered the Notes and successfully conducted an exchange offering for the Notes in unregistered form, as originally issued.

Subject to certain exceptions, both the Indenture and the amended Credit Agreement contain various provisions that limit the Company’s ability, among other things, to:

• incur additional indebtedness;

• incur liens;

• merge, dissolve, consolidate, or sell all or substantially all of the Company’s assets;

• make certain investments;

• make certain restricted payments;

• declare certain dividends or distributions or repurchase shares of the Company’s capital stock;

• enter into certain transactions with affiliates; and

• change the nature of the Company’s business.

In addition, the Indenture contains various provisions that limit the Company’s ability to:

• apply the proceeds from certain asset sales other than in accordance with the terms of the Indenture; and

• restrict dividends or other payments from subsidiaries.

In addition, the amended Credit Agreement contains various provisions that limit the Company’s ability to:

• dispose of certain assets; and

• amend the Company’s or any guarantor’s organizational documents of the Company in any way that is materially adverse to the lenders under the 2010 Credit Facility.

Moreover, if the Company fails to comply with any of the financial covenants or ratios under the 2010 Credit Facility, the lenders could:

• Elect to declare all amounts borrowed to be immediately due and payable, together with accrued and unpaid interest; and/or

• Terminate their commitments, if any, to make further extensions of credit.

In addition, if the Company’s total leverage ratio exceeds 6.50 to 1.00 as of the end of the most recently completed fiscal quarter, the maximum principal outstanding amount of all loans under the Company’s 2010 Credit Facility cannot exceed $25.0 million. In the event that the maximum principal outstanding amount exceeds $25.0 million in that case, the Company must immediately prepay outstanding revolving loans in an amount sufficient to eliminate such excess.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

There have been no developments to recently issued accounting standards applicable to the Company, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements, from those disclosed in the Company’s 2011 Annual Report on Form 10-K.

XML

Condensed Consolidating Financial Statements

6 Months Ended

Jun. 30, 2012

Condensed Consolidating Financial Statements [Abstract]

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

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 June 30, 2012 and December 31, 2011 and the related consolidating statements of operations are presented for the three- and six-month periods ended June 30, 2012 and 2011. Consolidating statements of cash flows are presented for the six-month periods ended June 30, 2012 and 2011. The equity method of accounting has been used by the Company to report its investment in subsidiaries.

Consolidating Balance Sheet

June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor					Consolidated
	Parent			Subsidiaries			Subsidiaries		Eliminations			Total
ASSETS
Current assets
Cash and cash equivalents	$	40,492		$	—		$	265	$	—		$	40,757
Trade receivables, net of allowance for doubtful accounts		47,900			—			406		—			48,306
Prepaid expenses and other current assets		5,506			—			191		—			5,697
Total current assets		93,898			—			862		—			94,760
Property and equipment, net		59,101			—			2,822		—			61,923
Intangible assets subject to amortization, net		23,067			—			—		—			23,067
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		168,545			—			—		(168,545	)		—
Other assets		9,845			—			12,807		(12,807	)		9,845
Total assets	$	428,848		$	178,262		$	21,185	$	(181,352	)	$	446,943
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Advances payable, related parties	$	118		$	—		$	—	$	—		$	118
Accounts payable and accrued expenses		47,634			—			630		(10,798	)		37,466
Total current liabilities		47,752			—			630		(10,798	)		37,584
Long-term debt, less current maturities		360,155			—			—		—			360,155
Other long-term liabilities		7,666			—			—		—			7,666
Deferred income taxes		14,167			30,272			—		(2,009	)		42,430
Total liabilities		429,740			30,272			630		(12,807	)		447,835
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			—		(804,654	)		—
Additional paid-in capital		939,451			—			12,652		(12,652	)		939,451
Accumulated deficit		(940,351	)		(656,664	)		7,903		648,761			(940,351	)
Total stockholders’ equity (deficit)		(892	)		147,990			20,555		(168,545	)		(892	)
Total liabilities and stockholders’ equity (deficit)	$	428,848		$	178,262		$	21,185	$	(181,352	)	$	446,943

Consolidating Balance Sheet

December 31, 2011

(In thousands)

				Guarantor			Non-Guarantor					Consolidated
	Parent			Subsidiaries			Subsidiaries		Eliminations			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 June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	54,360		$	—		$	496		$	(365	)	$	54,491
Expenses:
Direct operating expenses		22,859			—			382			(365	)		22,876
Selling, general and administrative expenses		9,516			—			119			—			9,635
Corporate expenses		4,181			—			—			—			4,181
Depreciation and amortization		3,898			—			178			—			4,076
		40,454			—			679			(365	)		40,768
Operating income (loss)		13,906			—			(183	)		—			13,723
Interest expense		(8,959	)		—			—			—			(8,959	)
Interest income		9			—			—			—			9
Gain (loss) on debt extinguishment		(1,230	)		—			—			—			(1,230	)
Income (loss) before income taxes		3,726			—			(183	)		—			3,543
Income tax (expense) benefit		(570	)		(1,010	)		103			—			(1,477	)
Income (loss) before equity in net income (loss) of subsidiaries		3,156			(1,010	)		(80	)		—			2,066
Equity in income (loss) of subsidiaries		(1,090	)		—			—			1,090			—
Net income (loss) applicable to common stockholders	$	2,066		$	(1,010	)	$	(80	)	$	1,090		$	2,066

Consolidating Statement of Operations

Three-Month Period Ended June 30, 2011

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	49,863		$	—		$	1,106		$	(704	)	$	50,265
Expenses:
Direct operating expenses		22,766			—			425			(704	)		22,487
Selling, general and administrative expenses		9,150			—			136			—			9,286
Corporate expenses		3,772			—			—			—			3,772
Depreciation and amortization		4,221			—			204			—			4,425
		39,909			—			765			(704	)		39,970
Operating income (loss)		9,954			—			341			—			10,295
Interest expense		(9,459	)		—			—			—			(9,459	)
Income (loss) before income taxes		495			—			341			—			836
Income tax (expense) benefit		(145	)		(851	)		(192	)		—			(1,188	)
Income (loss) before equity in net income (loss) of subsidiaries		350			(851	)		149			—			(352	)
Equity in income (loss) of subsidiaries		(702	)		—			—			702			—
Net income (loss) applicable to common stockholders	$	(352	)	$	(851	)	$	149		$	702		$	(352	)

Consolidating Statement of Operations

Six-Month Period Ended June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	100,309		$	—		$	1,342		$	(636	)	$	101,015
Expenses:
Direct operating expenses		44,379			—			767			(636	)		44,510
Selling, general and administrative expenses		18,761			—			246			—			19,007
Corporate expenses		8,062			—			—			—			8,062
Depreciation and amortization		8,059			—			364			—			8,423
		79,261			—			1,377			(636	)		80,002
Operating income (loss)		21,048			—			(35	)		—			21,013
Interest expense		(18,059	)		—			—			—			(18,059	)
Interest income		13			—			—			—			13
Gain (loss) on debt extinguishment		(1,230	)		—			—			—			(1,230	)
Income (loss) before income taxes		1,772			—			(35	)		—			1,737
Income tax (expense) benefit		(1,066	)		(2,020	)		20			—			(3,066	)
Income (loss) before equity in net income (loss) of subsidiaries		706			(2,020	)		(15	)		—			(1,329	)
Equity in income (loss) of subsidiaries		(2,035	)		—			—			2,035			—
Net income (loss) applicable to common stockholders	$	(1,329	)	$	(2,020	)	$	(15	)	$	2,035		$	(1,329	)

Consolidating Statement of Operations

Six-Month Period Ended June 30, 2011

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	93,696		$	—		$	1,949		$	(1,336	)	$	94,309
Expenses:
Direct operating expenses		43,865			—			779			(1,336	)		43,308
Selling, general and administrative expenses		18,265			—			264			—			18,529
Corporate expenses		7,517			—			—			—			7,517
Depreciation and amortization		8,748			—			409			—			9,157
		78,395			—			1,452			(1,336	)		78,511
Operating income (loss)		15,301			—			497			—			15,798
Interest expense		(18,902	)		—			—			—			(18,902	)
Interest income		2			—			—			—			2
Other income (loss)		687			—			—			—			687
Income (loss) before income taxes		(2,912	)		—			497			—			(2,415	)
Income tax (expense) benefit		(394	)		(1,695	)		(280	)		—			(2,369	)
Income (loss) before equity in net income (loss) of subsidiaries		(3,306	)		(1,695	)		217			—			(4,784	)
Equity in income (loss) of subsidiaries		(1,478	)		—			—			1,478			—
Net income (loss) applicable to common stockholders	$	(4,784	)	$	(1,695	)	$	217		$	1,478		$	(4,784	)

Consolidating Statement of Cash Flows

Six-Month Period Ended June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Cash flows from operating actvities:
Net income (loss)	$	(1,329	)	$	(2,020	)	$	(15	)	$	2,035		$	(1,329	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		8,059			—			364			—			8,423
Deferred income taxes		580			2,020			(195	)		—			2,405
Amortization of debt issue costs		1,137			—			—			—			1,137
Amortization of syndication contracts		381			—			—			—			381
Payments on syndication contracts		(934	)		—			—			—			(934	)
Non-cash stock-based compensation		998			—			—			—			998
Gain (loss) on debt extinguishment		1,230			—			—			—			1,230
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		(3,684	)		—			(87	)		—			(3,771	)
(Increase) decrease in amounts due from related party		(15	)		—			15			—			—
(Increase) decrease in prepaid expenses and other assets		(223	)		—			46			—			(177	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(1,698	)		—			(300	)		—			(1,998	)
Net cash provided by (used in) operating activities		4,502			—			(172	)		2,035			6,365
Cash flows from investing actvities:
Investment in subsidiaries		2,035			—			—			(2,035	)		—
Purchases of property and equipment and intangibles		(3,641	)		—			(6	)		—			(3,647	)
Net cash provided by (used in) investing activities		(1,606	)		—			(6	)		(2,035	)		(3,647	)
Cash flows from financing actvities:
Payments on long-term debt		(20,600	)		—			—			—			(20,600	)
Payments of deferred debt and offering costs		(80	)		—			—			—			(80	)
Net cash provided by (used in) financing activities		(20,680	)		—			—			—			(20,680	)
Net increase (decrease) in cash and cash equivalents		(17,784	)		—			(178	)		—			(17,962	)
Cash and cash equivalents:
Beginning		58,276			—			443			—			58,719
Ending	$	40,492		$	—		$	265		$	—		$	40,757

Consolidating Statement of Cash Flows

Six-Month Period Ended June 30, 2011

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating actvities:
Net income (loss)	$	(4,784	)	$	(1,695	)	$	217		$	1,478		$	(4,784	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		8,748			—			409			—			9,157
Deferred income taxes		(210	)		1,695			132			—			1,617
Amortization of debt issue costs		1,086			—			—			—			1,086
Amortization of syndication contracts		1,143			—			—			—			1,143
Payments on syndication contracts		(955	)		—			—			—			(955	)
Non-cash stock-based compensation		864			—			—			—			864
Other income (loss)		(687	)		—			—			—			(687	)
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in restricted cash		809			—			—			—			809
(Increase) decrease in accounts receivable		1,778			—			(173	)		—			1,605
(Increase) decrease in amounts due from related party		406			—			(406	)		—			—
(Increase) decrease in prepaid expenses and other assets		73			—			(26	)		—			47
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(739	)		—			(44	)		—			(783	)
Net cash provided by (used in) operating activities		7,532			—			109			1,478			9,119
Cash flows from investing actvities:
Investment in subsidiaries		1,478			—			—			(1,478	)		—
Purchase of a business		(551	)		—			—			—			(551	)
Purchases of property and equipment and intangibles		(4,511	)		—			(191	)		—			(4,702	)
Net cash provided by (used in) investing activities		(3,584	)		—			(191	)		(1,478	)		(5,253	)
Cash flows from financing actvities:
Proceeds from issuance of common stock		42			—			—			—			42
Payments on long-term debt		(1,000	)		—			—			—			(1,000	)
Payments of deferred debt and offering costs		(29	)		—			—			—			(29	)
Net cash provided by (used in) financing activities		(987	)		—			—			—			(987	)
Net increase (decrease) in cash and cash equivalents		2,961			—			(82	)		—			2,879
Cash and cash equivalents:
Beginning		72,140			—			250			—			72,390
Ending	$	75,101		$	—		$	168		$	—		$	75,269

XML

Condensed Consolidating Financial Statements (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income (loss)	$ 2,066	$ (352)	$ (1,329)	$ (4,784)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	4,076	4,425	8,423	9,157
Deferred income taxes			2,405	1,617
Amortization of debt issue costs			1,137	1,086
Amortization of syndication contracts			381	1,143
Payments on syndication contracts			(934)	(955)
Non-cash stock-based compensation	700	500	998	864
Other income (loss)				(687)
Gain (loss) on debt extinguishment	1,230		1,230
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in restricted cash				809
(Increase) decrease in accounts receivable			(3,771)	1,605
(Increase) decrease in amounts due from related party
(Increase) decrease in prepaid expenses and other assets			(177)	47
Increase (decrease) in accounts payable, accrued expenses and other liabilities			(1,998)	(783)
Net cash provided by (used in) operating activities			6,365	9,119
Cash flows from investing activities:
Investment in subsidiaries
Purchase of a business				(551)
Purchases of property and equipment and intangibles			(3,647)	(4,702)
Net cash provided by (used in) investing activities			(3,647)	(5,253)
Cash flows from financing activities:
Proceeds from issuance of common stock				42
Payments on long-term debt			(20,600)	(1,000)
Payments of deferred debt and offering costs			(80)	(29)
Net cash provided by (used in) financing activities			(20,680)	(987)
Net increase (decrease) in cash and cash equivalents			(17,962)	2,879
Cash and cash equivalents:
Beginning			58,719	72,390
Ending	40,757	75,269	40,757	75,269
Parent [Member]
Cash flows from operating activities:
Net income (loss)	2,066	(352)	(1,329)	(4,784)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,898	4,221	8,059	8,748
Deferred income taxes			580	(210)
Amortization of debt issue costs			1,137	1,086
Amortization of syndication contracts			381	1,143
Payments on syndication contracts			(934)	(955)
Non-cash stock-based compensation			998	864
Other income (loss)			0	(687)
Gain (loss) on debt extinguishment	1,230		1,230
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in restricted cash				809
(Increase) decrease in accounts receivable			(3,684)	1,778
(Increase) decrease in amounts due from related party			(15)	406
(Increase) decrease in prepaid expenses and other assets			(223)	73
Increase (decrease) in accounts payable, accrued expenses and other liabilities			(1,698)	(739)
Net cash provided by (used in) operating activities			4,502	7,532
Cash flows from investing activities:
Investment in subsidiaries			2,035	1,478
Purchase of a business				(551)
Purchases of property and equipment and intangibles			(3,641)	(4,511)
Net cash provided by (used in) investing activities			(1,606)	(3,584)
Cash flows from financing activities:
Proceeds from issuance of common stock				42
Payments on long-term debt			(20,600)	(1,000)
Payments of deferred debt and offering costs			(80)	(29)
Net cash provided by (used in) financing activities			(20,680)	(987)
Net increase (decrease) in cash and cash equivalents			(17,784)	2,961
Cash and cash equivalents:
Beginning			58,276	72,140
Ending	40,492	75,101	40,492	75,101
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	(1,010)	(851)	(2,020)	(1,695)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
Deferred income taxes			2,020	1,695
Amortization of debt issue costs
Amortization of syndication contracts
Payments on syndication contracts
Non-cash stock-based compensation
Other income (loss)			0
Gain (loss) on debt extinguishment
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable
(Increase) decrease in amounts due from related party
(Increase) decrease in prepaid expenses and other assets
Increase (decrease) in accounts payable, accrued expenses and other liabilities
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Investment in subsidiaries
Purchases of property and equipment and intangibles
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Payments on long-term debt
Payments of deferred debt and offering costs
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents:
Beginning
Ending
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	(80)	149	(15)	217
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	178	204	364	409
Deferred income taxes			(195)	132
Amortization of debt issue costs
Amortization of syndication contracts
Payments on syndication contracts
Non-cash stock-based compensation
Other income (loss)			0
Gain (loss) on debt extinguishment
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable			(87)	(173)
(Increase) decrease in amounts due from related party			15	(406)
(Increase) decrease in prepaid expenses and other assets			46	(26)
Increase (decrease) in accounts payable, accrued expenses and other liabilities			(300)	(44)
Net cash provided by (used in) operating activities			(172)	109
Cash flows from investing activities:
Investment in subsidiaries
Purchases of property and equipment and intangibles			(6)	(191)
Net cash provided by (used in) investing activities			(6)	(191)
Cash flows from financing activities:
Payments on long-term debt
Payments of deferred debt and offering costs
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents			(178)	(82)
Cash and cash equivalents:
Beginning			443	443
Ending	265	168	265	168
Eliminations [Member]
Cash flows from operating activities:
Net income (loss)	1,090	702	2,035	1,478
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
Deferred income taxes
Amortization of debt issue costs
Amortization of syndication contracts
Payments on syndication contracts
Non-cash stock-based compensation
Other income (loss)			0
Gain (loss) on debt extinguishment
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable
(Increase) decrease in amounts due from related party
(Increase) decrease in prepaid expenses and other assets
Increase (decrease) in accounts payable, accrued expenses and other liabilities
Net cash provided by (used in) operating activities			2,035	1,478
Cash flows from investing activities:
Investment in subsidiaries			(2,035)	(1,478)
Purchases of property and equipment and intangibles
Net cash provided by (used in) investing activities			(2,035)	(1,478)
Cash flows from financing activities:
Payments on long-term debt
Payments of deferred debt and offering costs
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents			0
Cash and cash equivalents:
Beginning
Ending

XML

Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Separate financial data for each of the Company's operating segments
Net revenue	$ 54,491	$ 50,265	$ 101,015	$ 94,309
Percentage change in net revenue	8.00%		7.00%
Direct operating expenses	22,876	22,487	44,510	43,308
Percentage change in direct operating expenses	2.00%		3.00%
Selling, general and administrative expenses	9,635	9,286	19,007	18,529
Percentage change in selling, general and administrative expenses	4.00%		3.00%
Depreciation and amortization	4,076	4,425	8,423	9,157
Percentage change in depreciation and amortization	(8.00%)		(8.00%)
Segment operating profit	17,904	14,067	29,075	23,315
Percentage change in segment operating profit	27.00%		25.00%
Corporate expenses	4,181	3,772	8,062	7,517
Percentage change in corporate expenses	11.00%		7.00%
Operating income (loss)	13,723	10,295	21,013	15,798
Percentage change in operating income (loss)	33.00%		33.00%
Interest expense (including related parties of $0, $15, $0 and $30) (note 2)	(8,959)	(9,459)	(18,059)	(18,902)
Percentage change in interest expense	(5.00%)		(4.00%)
Interest income	9		13	2
Percentage change in interest income
Other income (loss)				687
Percentage change in other income (loss)			100.00%
Gain (loss) on debt extinguishment	(1,230)		(1,230)
Percentage change in extinguishment of debt gain loss net of tax
Income (loss) before income taxes	3,543	836	1,737	(2,415)
Percentage change in income loss before income taxes	324.00%
Capital expenditures	2,299	1,599	3,588	4,366
Total assets	446,943		446,943		467,321
Television [Member]
Separate financial data for each of the Company's operating segments
Net revenue	37,399	33,118	70,563	63,786
Percentage change in net revenue	13.00%		11.00%
Direct operating expenses	13,997	13,665	27,218	26,324
Percentage change in direct operating expenses	2.00%		3.00%
Selling, general and administrative expenses	5,209	4,991	10,523	10,162
Percentage change in selling, general and administrative expenses	4.00%		4.00%
Depreciation and amortization	3,303	3,539	6,861	7,374
Percentage change in depreciation and amortization	(7.00%)		(7.00%)
Segment operating profit	14,890	10,923	25,961	19,926
Percentage change in segment operating profit	36.00%		30.00%
Capital expenditures	1,763	1,413	2,682	4,030
Total assets	323,786		323,786		342,462
Radio [Member]
Separate financial data for each of the Company's operating segments
Net revenue	17,092	17,147	30,452	30,523
Percentage change in net revenue	0.00%		0.00%
Direct operating expenses	8,879	8,822	17,292	16,984
Percentage change in direct operating expenses	1.00%		2.00%
Selling, general and administrative expenses	4,426	4,295	8,484	8,367
Percentage change in selling, general and administrative expenses	3.00%		1.00%
Depreciation and amortization	773	886	1,562	1,783
Percentage change in depreciation and amortization	(13.00%)		(12.00%)
Segment operating profit	3,014	3,144	3,114	3,389
Percentage change in segment operating profit	(4.00%)		(8.00%)
Capital expenditures	536	186	906	336
Total assets	$ 123,157		$ 123,157		$ 124,859

XML

Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2012

Condensed Consolidating Financial Statements [Abstract]

Consolidating Balance Sheet

Consolidating Balance Sheet

June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor					Consolidated
	Parent			Subsidiaries			Subsidiaries		Eliminations			Total
ASSETS
Current assets
Cash and cash equivalents	$	40,492		$	—		$	265	$	—		$	40,757
Trade receivables, net of allowance for doubtful accounts		47,900			—			406		—			48,306
Prepaid expenses and other current assets		5,506			—			191		—			5,697
Total current assets		93,898			—			862		—			94,760
Property and equipment, net		59,101			—			2,822		—			61,923
Intangible assets subject to amortization, net		23,067			—			—		—			23,067
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		168,545			—			—		(168,545	)		—
Other assets		9,845			—			12,807		(12,807	)		9,845
Total assets	$	428,848		$	178,262		$	21,185	$	(181,352	)	$	446,943
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Advances payable, related parties	$	118		$	—		$	—	$	—		$	118
Accounts payable and accrued expenses		47,634			—			630		(10,798	)		37,466
Total current liabilities		47,752			—			630		(10,798	)		37,584
Long-term debt, less current maturities		360,155			—			—		—			360,155
Other long-term liabilities		7,666			—			—		—			7,666
Deferred income taxes		14,167			30,272			—		(2,009	)		42,430
Total liabilities		429,740			30,272			630		(12,807	)		447,835
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			—		(804,654	)		—
Additional paid-in capital		939,451			—			12,652		(12,652	)		939,451
Accumulated deficit		(940,351	)		(656,664	)		7,903		648,761			(940,351	)
Total stockholders’ equity (deficit)		(892	)		147,990			20,555		(168,545	)		(892	)
Total liabilities and stockholders’ equity (deficit)	$	428,848		$	178,262		$	21,185	$	(181,352	)	$	446,943

Consolidating Balance Sheet

December 31, 2011

(In thousands)

				Guarantor			Non-Guarantor					Consolidated
	Parent			Subsidiaries			Subsidiaries		Eliminations			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

Consolidating Statement of Operations

Three-Month Period Ended June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	54,360		$	—		$	496		$	(365	)	$	54,491
Expenses:
Direct operating expenses		22,859			—			382			(365	)		22,876
Selling, general and administrative expenses		9,516			—			119			—			9,635
Corporate expenses		4,181			—			—			—			4,181
Depreciation and amortization		3,898			—			178			—			4,076
		40,454			—			679			(365	)		40,768
Operating income (loss)		13,906			—			(183	)		—			13,723
Interest expense		(8,959	)		—			—			—			(8,959	)
Interest income		9			—			—			—			9
Gain (loss) on debt extinguishment		(1,230	)		—			—			—			(1,230	)
Income (loss) before income taxes		3,726			—			(183	)		—			3,543
Income tax (expense) benefit		(570	)		(1,010	)		103			—			(1,477	)
Income (loss) before equity in net income (loss) of subsidiaries		3,156			(1,010	)		(80	)		—			2,066
Equity in income (loss) of subsidiaries		(1,090	)		—			—			1,090			—
Net income (loss) applicable to common stockholders	$	2,066		$	(1,010	)	$	(80	)	$	1,090		$	2,066

Consolidating Statement of Operations

Three-Month Period Ended June 30, 2011

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	49,863		$	—		$	1,106		$	(704	)	$	50,265
Expenses:
Direct operating expenses		22,766			—			425			(704	)		22,487
Selling, general and administrative expenses		9,150			—			136			—			9,286
Corporate expenses		3,772			—			—			—			3,772
Depreciation and amortization		4,221			—			204			—			4,425
		39,909			—			765			(704	)		39,970
Operating income (loss)		9,954			—			341			—			10,295
Interest expense		(9,459	)		—			—			—			(9,459	)
Income (loss) before income taxes		495			—			341			—			836
Income tax (expense) benefit		(145	)		(851	)		(192	)		—			(1,188	)
Income (loss) before equity in net income (loss) of subsidiaries		350			(851	)		149			—			(352	)
Equity in income (loss) of subsidiaries		(702	)		—			—			702			—
Net income (loss) applicable to common stockholders	$	(352	)	$	(851	)	$	149		$	702		$	(352	)

Consolidating Statement of Operations

Six-Month Period Ended June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	100,309		$	—		$	1,342		$	(636	)	$	101,015
Expenses:
Direct operating expenses		44,379			—			767			(636	)		44,510
Selling, general and administrative expenses		18,761			—			246			—			19,007
Corporate expenses		8,062			—			—			—			8,062
Depreciation and amortization		8,059			—			364			—			8,423
		79,261			—			1,377			(636	)		80,002
Operating income (loss)		21,048			—			(35	)		—			21,013
Interest expense		(18,059	)		—			—			—			(18,059	)
Interest income		13			—			—			—			13
Gain (loss) on debt extinguishment		(1,230	)		—			—			—			(1,230	)
Income (loss) before income taxes		1,772			—			(35	)		—			1,737
Income tax (expense) benefit		(1,066	)		(2,020	)		20			—			(3,066	)
Income (loss) before equity in net income (loss) of subsidiaries		706			(2,020	)		(15	)		—			(1,329	)
Equity in income (loss) of subsidiaries		(2,035	)		—			—			2,035			—
Net income (loss) applicable to common stockholders	$	(1,329	)	$	(2,020	)	$	(15	)	$	2,035		$	(1,329	)

Consolidating Statement of Operations

Six-Month Period Ended June 30, 2011

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Net revenue	$	93,696		$	—		$	1,949		$	(1,336	)	$	94,309
Expenses:
Direct operating expenses		43,865			—			779			(1,336	)		43,308
Selling, general and administrative expenses		18,265			—			264			—			18,529
Corporate expenses		7,517			—			—			—			7,517
Depreciation and amortization		8,748			—			409			—			9,157
		78,395			—			1,452			(1,336	)		78,511
Operating income (loss)		15,301			—			497			—			15,798
Interest expense		(18,902	)		—			—			—			(18,902	)
Interest income		2			—			—			—			2
Other income (loss)		687			—			—			—			687
Income (loss) before income taxes		(2,912	)		—			497			—			(2,415	)
Income tax (expense) benefit		(394	)		(1,695	)		(280	)		—			(2,369	)
Income (loss) before equity in net income (loss) of subsidiaries		(3,306	)		(1,695	)		217			—			(4,784	)
Equity in income (loss) of subsidiaries		(1,478	)		—			—			1,478			—
Net income (loss) applicable to common stockholders	$	(4,784	)	$	(1,695	)	$	217		$	1,478		$	(4,784	)

Consolidating Statement of Cash Flows

Consolidating Statement of Cash Flows

Six-Month Period Ended June 30, 2012

(In thousands)

				Guarantor			Non-Guarantor						Consolidated
	Parent			Subsidiaries			Subsidiaries			Eliminations			Total
Cash flows from operating actvities:
Net income (loss)	$	(1,329	)	$	(2,020	)	$	(15	)	$	2,035		$	(1,329	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		8,059			—			364			—			8,423
Deferred income taxes		580			2,020			(195	)		—			2,405
Amortization of debt issue costs		1,137			—			—			—			1,137
Amortization of syndication contracts		381			—			—			—			381
Payments on syndication contracts		(934	)		—			—			—			(934	)
Non-cash stock-based compensation		998			—			—			—			998
Gain (loss) on debt extinguishment		1,230			—			—			—			1,230
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		(3,684	)		—			(87	)		—			(3,771	)
(Increase) decrease in amounts due from related party		(15	)		—			15			—			—
(Increase) decrease in prepaid expenses and other assets		(223	)		—			46			—			(177	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(1,698	)		—			(300	)		—			(1,998	)
Net cash provided by (used in) operating activities		4,502			—			(172	)		2,035			6,365
Cash flows from investing actvities:
Investment in subsidiaries		2,035			—			—			(2,035	)		—
Purchases of property and equipment and intangibles		(3,641	)		—			(6	)		—			(3,647	)
Net cash provided by (used in) investing activities		(1,606	)		—			(6	)		(2,035	)		(3,647	)
Cash flows from financing actvities:
Payments on long-term debt		(20,600	)		—			—			—			(20,600	)
Payments of deferred debt and offering costs		(80	)		—			—			—			(80	)
Net cash provided by (used in) financing activities		(20,680	)		—			—			—			(20,680	)
Net increase (decrease) in cash and cash equivalents		(17,784	)		—			(178	)		—			(17,962	)
Cash and cash equivalents:
Beginning		58,276			—			443			—			58,719
Ending	$	40,492		$	—		$	265		$	—		$	40,757

Consolidating Statement of Cash Flows

Six-Month Period Ended June 30, 2011

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating actvities:
Net income (loss)	$	(4,784	)	$	(1,695	)	$	217		$	1,478		$	(4,784	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		8,748			—			409			—			9,157
Deferred income taxes		(210	)		1,695			132			—			1,617
Amortization of debt issue costs		1,086			—			—			—			1,086
Amortization of syndication contracts		1,143			—			—			—			1,143
Payments on syndication contracts		(955	)		—			—			—			(955	)
Non-cash stock-based compensation		864			—			—			—			864
Other income (loss)		(687	)		—			—			—			(687	)
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in restricted cash		809			—			—			—			809
(Increase) decrease in accounts receivable		1,778			—			(173	)		—			1,605
(Increase) decrease in amounts due from related party		406			—			(406	)		—			—
(Increase) decrease in prepaid expenses and other assets		73			—			(26	)		—			47
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(739	)		—			(44	)		—			(783	)
Net cash provided by (used in) operating activities		7,532			—			109			1,478			9,119
Cash flows from investing actvities:
Investment in subsidiaries		1,478			—			—			(1,478	)		—
Purchase of a business		(551	)		—			—			—			(551	)
Purchases of property and equipment and intangibles		(4,511	)		—			(191	)		—			(4,702	)
Net cash provided by (used in) investing activities		(3,584	)		—			(191	)		(1,478	)		(5,253	)
Cash flows from financing actvities:
Proceeds from issuance of common stock		42			—			—			—			42
Payments on long-term debt		(1,000	)		—			—			—			(1,000	)
Payments of deferred debt and offering costs		(29	)		—			—			—			(29	)
Net cash provided by (used in) financing activities		(987	)		—			—			—			(987	)
Net increase (decrease) in cash and cash equivalents		2,961			—			(82	)		—			2,879
Cash and cash equivalents:
Beginning		72,140			—			250			—			72,390
Ending	$	75,101		$	—		$	168		$	—		$	75,269

XML

The Company and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

The Company and Significant Accounting Policies [Abstract]

Fair value of stock option granted weighted-average assumptions

	Six-Month Period Ended June 30, 2012
Fair value of options granted	$	1.26
Expected volatility		89	%
Risk-free interest rate		1.5	%
Expected lives		7.0 years
Dividend rate		—

Reconciliation of the basic and diluted income per share

The following table illustrates the reconciliation of the basic and diluted income per share computations required by ASC 260-10, “Earnings Per Share” (in thousands, except share and per share data):

	Three-Month Period					Six-Month Period
	Ended June 30,					Ended June 30,
	2012		2011			2012			2011
Basic earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	2,066	$	(352	)	$	(1,329	)	$	(4,784	)
Denominator:
Weighted average common shares outstanding		85,837,846		85,053,417			85,821,963			85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$	0.02	$	0.00		$	(0.02	)	$	(0.06	)
Diluted earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	2,066	$	(352	)	$	(1,329	)	$	(4,784	)
Denominator:
Weighted average common shares outstanding		85,837,846		85,053,417			85,821,963			85,046,396
Dilutive securities:
Stock options and restricted stock units		340,485		—			—			—
Diluted shares outstanding		86,178,331		85,053,417			85,821,963			85,046,396
Per share:
Net income (loss) per share applicable to common stockholders	$	0.02	$	0.00		$	(0.02	)	$	(0.06	)

XML

Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Separate financial data for each of the Company's operating segments

The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period									Six-Month Period
	Ended June 30,						% Change			Ended June 30,						% Change
	2012			2011			2012 to 2011			2012			2011			2012 to 2011
Net Revenue
Television	$	37,399		$	33,118			13	%	$	70,563		$	63,786			11	%
Radio		17,092			17,147			(0	)%		30,452			30,523			(0	)%
Consolidated		54,491			50,265			8	%		101,015			94,309			7	%
Direct operating expenses
Television		13,997			13,665			2	%		27,218			26,324			3	%
Radio		8,879			8,822			1	%		17,292			16,984			2	%
Consolidated		22,876			22,487			2	%		44,510			43,308			3	%
Selling, general and administrative expenses
Television		5,209			4,991			4	%		10,523			10,162			4	%
Radio		4,426			4,295			3	%		8,484			8,367			1	%
Consolidated		9,635			9,286			4	%		19,007			18,529			3	%
Depreciation and amortization
Television		3,303			3,539			(7	)%		6,861			7,374			(7	)%
Radio		773			886			(13	)%		1,562			1,783			(12	)%
Consolidated		4,076			4,425			(8	)%		8,423			9,157			(8	)%
Segment operating profit
Television		14,890			10,923			36	%		25,961			19,926			30	%
Radio		3,014			3,144			(4	)%		3,114			3,389			(8	)%
Consolidated		17,904			14,067			27	%		29,075			23,315			25	%
Corporate expenses		4,181			3,772			11	%		8,062			7,517			7	%
Operating income (loss)		13,723			10,295			33	%		21,013			15,798			33	%
Interest expense		(8,959	)		(9,459	)		(5	)%		(18,059	)		(18,902	)		(4	)%
Interest income		9			—			*			13			2			*
Other income (loss)		—			—			*			—			687			(100	)%
Gain (loss) on debt extinguishment		(1,230	)		—			*			(1,230	)		—			*
Income (loss) before income taxes	$	3,543		$	836			324	%	$	1,737		$	(2,415	)		*
Capital expenditures
Television	$	1,763		$	1,413					$	2,682		$	4,030
Radio		536			186						906			336
Consolidated	$	2,299		$	1,599					$	3,588		$	4,366

	June 30, 2012		December 31, 2011
Total assets
Television	$	323,786	$	342,462
Radio		123,157		124,859
Consolidated	$	446,943	$	467,321

XML

The Company and Significant Accounting Policies (Details) (USD $)	6 Months Ended
	Jun. 30, 2012
Stock-based compensation expense related to stock options is based on the fair value
Fair value of options granted	$ 1.26
Expected volatility	89.00%
Risk-free interest rate	1.50%
Expected lives	7 years
Dividend rate

XML

Condensed Consolidating Financial Statements (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 40,757	$ 58,719	$ 75,269	$ 72,390
Trade receivables, net of allowance for doubtful accounts	48,306	44,270
Prepaid expenses and other current assets	5,697	5,939
Total current assets	94,760	108,928
Property and equipment, net	61,923	65,226
Intangible assets subject to amortization, net	23,067	24,598
Intangible assets not subject to amortization	220,701	220,701
Goodwill	36,647	36,647
Investment in subsidiaries
Other assets	9,845	11,221
Total assets	446,943	467,321
Current liabilities
Advances payable, related parties	118	118
Accounts payable and accrued expenses	37,466	39,750
Total current liabilities	37,584	39,868
Long-term debt, less current maturities	360,155	379,662
Other long-term liabilities	7,666	8,327
Deferred income taxes	42,430	40,025
Total liabilities	447,835	467,882
Stockholders' equity (deficit)
Member's capital
Additional paid-in capital	939,451	938,453
Accumulated deficit	(940,351)	(939,022)
Total stockholders' equity (deficit)	(892)	(561)
Total liabilities and stockholders' equity (deficit)	446,943	467,321
Class A common stock [Member]
Stockholders' equity (deficit)
Common stock	5	5
Class B common stock [Member]
Stockholders' equity (deficit)
Common stock	2	2
Class U common stock [Member]
Stockholders' equity (deficit)
Common stock	1	1
Parent [Member]
Current assets
Cash and cash equivalents	40,492	58,276	75,101	72,140
Trade receivables, net of allowance for doubtful accounts	47,900	43,951
Prepaid expenses and other current assets	5,506	5,678
Total current assets	93,898	107,905
Property and equipment, net	59,101	62,046
Intangible assets subject to amortization, net	23,067	24,598
Intangible assets not subject to amortization	38,739	38,739
Goodwill	35,653	35,653
Investment in subsidiaries	168,545	170,580
Other assets	9,845	11,221
Total assets	428,848	450,742
Current liabilities
Advances payable, related parties	118	118
Accounts payable and accrued expenses	47,634	49,633
Total current liabilities	47,752	49,751
Long-term debt, less current maturities	360,155	379,662
Other long-term liabilities	7,666	8,327
Deferred income taxes	14,167	13,563
Total liabilities	429,740	451,303
Stockholders' equity (deficit)
Member's capital
Additional paid-in capital	939,451	938,453
Accumulated deficit	(940,351)	(939,022)
Total stockholders' equity (deficit)	(892)	(561)
Total liabilities and stockholders' equity (deficit)	428,848	450,742
Parent [Member] | Class A common stock [Member]
Stockholders' equity (deficit)
Common stock	5	5
Parent [Member] | Class B common stock [Member]
Stockholders' equity (deficit)
Common stock	2	2
Parent [Member] | Class U common stock [Member]
Stockholders' equity (deficit)
Common stock	1	1
Guarantor Subsidiaries [Member]
Current assets
Cash and cash equivalents
Trade receivables, net of allowance for doubtful accounts
Prepaid expenses and other current assets
Total current assets
Property and equipment, net
Intangible assets subject to amortization, net
Intangible assets not subject to amortization	178,262	178,262
Goodwill
Investment in subsidiaries
Other assets
Total assets	178,262	178,262
Current liabilities
Advances payable, related parties
Accounts payable and accrued expenses
Total current liabilities
Long-term debt, less current maturities
Other long-term liabilities
Deferred income taxes	30,272	28,252
Total liabilities	30,272	28,252
Stockholders' equity (deficit)
Member's capital	804,654	804,654
Additional paid-in capital
Accumulated deficit	(656,664)	(654,644)
Total stockholders' equity (deficit)	147,990	150,010
Total liabilities and stockholders' equity (deficit)	178,262	178,262
Guarantor Subsidiaries [Member] | Class A common stock [Member]
Stockholders' equity (deficit)
Common stock
Guarantor Subsidiaries [Member] | Class B common stock [Member]
Stockholders' equity (deficit)
Common stock
Guarantor Subsidiaries [Member] | Class U common stock [Member]
Stockholders' equity (deficit)
Common stock
Non-Guarantor Subsidiaries [Member]
Current assets
Cash and cash equivalents	265	443	168	443
Trade receivables, net of allowance for doubtful accounts	406	319
Prepaid expenses and other current assets	191	261
Total current assets	862	1,023
Property and equipment, net	2,822	3,180
Intangible assets subject to amortization, net
Intangible assets not subject to amortization	3,700	3,700
Goodwill	994	994
Investment in subsidiaries
Other assets	12,807	12,603
Total assets	21,185	21,500
Current liabilities
Advances payable, related parties
Accounts payable and accrued expenses	630	930
Total current liabilities	630	930
Long-term debt, less current maturities
Other long-term liabilities
Deferred income taxes
Total liabilities	630	930
Stockholders' equity (deficit)
Member's capital		12,652
Additional paid-in capital	12,652
Accumulated deficit	7,903	7,918
Total stockholders' equity (deficit)	20,555	20,570
Total liabilities and stockholders' equity (deficit)	21,185	21,500
Non-Guarantor Subsidiaries [Member] | Class A common stock [Member]
Stockholders' equity (deficit)
Common stock
Non-Guarantor Subsidiaries [Member] | Class B common stock [Member]
Stockholders' equity (deficit)
Common stock
Non-Guarantor Subsidiaries [Member] | Class U common stock [Member]
Stockholders' equity (deficit)
Common stock
Eliminations [Member]
Current assets
Cash and cash equivalents
Trade receivables, net of allowance for doubtful accounts
Prepaid expenses and other current assets
Total current assets
Property and equipment, net
Intangible assets subject to amortization, net
Intangible assets not subject to amortization
Goodwill
Investment in subsidiaries	(168,545)	(170,580)
Other assets	(12,807)	(12,603)
Total assets	(181,352)	(183,183)
Current liabilities
Advances payable, related parties
Accounts payable and accrued expenses	(10,798)	(10,813)
Total current liabilities	(10,798)	(10,813)
Long-term debt, less current maturities
Other long-term liabilities
Deferred income taxes	(2,009)	(1,790)
Total liabilities	(12,807)	(12,603)
Stockholders' equity (deficit)
Member's capital	(804,654)	(817,306)
Additional paid-in capital	(12,652)
Accumulated deficit	648,761	646,726
Total stockholders' equity (deficit)	(168,545)	(170,580)
Total liabilities and stockholders' equity (deficit)	(181,352)	(183,183)
Eliminations [Member] | Class A common stock [Member]
Stockholders' equity (deficit)
Common stock
Eliminations [Member] | Class B common stock [Member]
Stockholders' equity (deficit)
Common stock
Eliminations [Member] | Class U common stock [Member]
Stockholders' equity (deficit)
Common stock

XML

Consolidated Statements of Operations (Parenthetical) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Direct operating expenses	$ 22,876	$ 22,487	$ 44,510	$ 43,308
Non-cash stock-based compensation	700	500	998	864
Depreciation and amortization	4,076	4,425	8,423	9,157
Interest expense	8,959	9,459	18,059	18,902
Direct Operating Expenses
Non-cash stock-based compensation	43	53	56	104
Depreciation and amortization	3,076	3,352	6,217	6,678
Selling, General and Administrative Expenses
Non-cash stock-based compensation	215	159	324	315
Depreciation and amortization	720	798	1,437	1,619
Corporate Expenses
Non-cash stock-based compensation	479	289	618	445
Depreciation and amortization	280	275	769	860
Related Parties
Direct operating expenses	2,461	1,815	4,705	3,519
Depreciation and amortization	580	627	1,473	1,520
Interest expense	$ 0	$ 15	$ 0	$ 30

XML

Litigation

6 Months Ended

Jun. 30, 2012

Litigation [Abstract]

LITIGATION

4. LITIGATION

The Company is subject to various outstanding claims and other legal proceedings that may arise in the ordinary course of business. In the opinion of management, any liability of the Company that may arise out of or with respect to these matters will not materially adversely affect the financial position, results of operations or cash flows of the Company.

XML

Segment Information (Details Textual)	6 Months Ended
	Jun. 30, 2012 Segment
Segment Information (Textual) [Abstract]
Number of reportable segments	2
Television [Member]
Segment Reporting Information [Line Items]
Number of stations owned	53
Radio [Member]
Segment Reporting Information [Line Items]
Number of stations owned	49