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