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 MARCH 31, 2013

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 April 26, 2013, there were 55,146,521 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-MONTH PERIOD ENDED MARCH 31, 2013

TABLE OF CONTENTS

		Page Number
PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS		4
	CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2013 (UNAUDITED) AND DECEMBER 31, 2012		4
	CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2013 AND MARCH 31, 2012		5
	CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2013 AND MARCH 31, 2012		6
	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)		7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		18
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		27
ITEM 4.	CONTROLS AND PROCEDURES		28
PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS		28
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 $324 million aggregate principal amount of 8.75% senior secured first lien notes due 2017, or the Notes, and the amended and restated agreement dated as of December 20, 2012, or the amended Credit Agreement, which governs our credit facility, the terms of 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 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 economic uncertainty;

• the impact of any potential 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 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, 2012.

3

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ENTRAVISION COMMUNICATIONS CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

	March 31,			December 31,
	2013			2012
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	32,315		$	36,130
Trade receivables, net of allowance for doubtful accounts of $3,985 and $4,396 (including related parties of $7,064 and $4,916)		46,361			48,030
Prepaid expenses and other current assets (including related parties of $274 and $274)		4,960			4,245
Total current assets		83,636			88,405
Property and equipment, net		60,042			61,435
Intangible assets subject to amortization, net (included related parties of $20,299 and $20,880)		21,714			22,349
Intangible assets not subject to amortization		220,701			220,701
Goodwill		36,647			36,647
Other assets		8,072			8,514
Total assets	$	430,812		$	438,051
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	200		$	150
Advances payable, related parties		118			118
Accounts payable and accrued expenses (including related parties of $3,756 and $3,576)		29,855			39,158
Total current liabilities		30,173			39,426
Long-term debt, less current maturities (net of bond discount of $2,848 and $2,982)		340,748			340,664
Other long-term liabilities		7,180			7,359
Deferred income taxes		47,043			45,201
Total liabilities		425,144			432,650
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 2013 55,090,121; 2012 54,404,226		6			5
Class B common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2013 and 2012 22,188,161		2			2
Class U common stock, $0.0001 par value, 40,000,000 shares authorized; shares issued and outstanding 2013 and 2012 9,352,729		1			1
Additional paid-in capital		932,037			930,814
Accumulated deficit		(926,378	)		(925,421	)
Total stockholders’ equity (deficit)		5,668			5,401
Total liabilities and stockholders’ equity (deficit)	$	430,812		$	438,051

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
	Ended March 31,
	2013			2012
Net revenue	$	49,087		$	46,524
Expenses:
Direct operating expenses (including related parties of $2,293 and $2,244) (including non-cash stock-based compensation of $184 and $13)		24,225			21,634
Selling, general and administrative expenses (including non-cash stock-based compensation of $0 and $109)		7,683			9,372
Corporate expenses (including non-cash stock-based compensation of $688 and $139)		4,497			3,881
Depreciation and amortization (includes direct operating of $3,032 and $3,141; selling, general and administrative of $713 and $717; and corporate of $210 and $489) (including related parties of $581 and $893)		3,955			4,347
		40,360			39,234
Operating income (loss)		8,727			7,290
Interest expense		(7,784	)		(9,100	)
Interest income		7			4
Income (loss) before income taxes		950			(1,806	)
Income tax (expense) benefit		(1,907	)		(1,589	)
Net income (loss) applicable to common stockholders	$	(957	)	$	(3,395	)
Basic and diluted earnings per share:
Net income (loss) per share applicable to common stockholders, basic and diluted	$	(0.01	)	$	(0.04	)
Weighted average common shares outstanding, basic and diluted		86,459,017			85,806,080

See Notes to Consolidated Financial Statements

5

ENTRAVISION COMMUNICATIONS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	Three-Month Period
	Ended March 31,
	2013			2012
Cash flows from operating activities:
Net income (loss)	$	(957	)	$	(3,395	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		3,955			4,347
Deferred income taxes		1,842			1,106
Amortization of debt issue costs		455			563
Amortization of syndication contracts		151			193
Payments on syndication contracts		(325	)		(467	)
Non-cash stock-based compensation		872			261
Changes in assets and liabilities:
(Increase) decrease in accounts receivable		1,916			3,269
(Increase) decrease in prepaid expenses and other assets		(828	)		(644	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(8,692	)		(11,539	)
Net cash provided by (used in) operating activities		(1,611	)		(6,306	)
Cash flows from investing activities:
Purchases of property and equipment and intangibles		(2,555	)		(1,164	)
Net cash provided by (used in) investing activities		(2,555	)		(1,164	)
Cash flows from financing activities:
Proceeds from issuance of common stock		351			—
Payments of deferred debt and offering costs		—			(80	)
Net cash provided by (used in) financing activities		351			(80	)
Net increase (decrease) in cash and cash equivalents		(3,815	)		(7,550	)
Cash and cash equivalents:
Beginning		36,130			58,719
Ending	$	32,315		$	51,169
Supplemental disclosures of cash flow information:
Cash payments (refunds) for:
Interest	$	14,383		$	16,933
Income taxes	$	65		$	483

See Notes to Consolidated Financial Statements

6

ENTRAVISION COMMUNICATIONS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MARCH 31, 2013

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, 2012 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. 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, 2013 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 UniMás-affiliated television stations. The Company’s network affiliation agreements, as amended, with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and UniMás 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, the Company generally retains 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 UniMás network. Those allocations are subject to adjustment from time to time by Univision.

Under the network affiliation agreements, Univision acts as the Company’s exclusive sales representative for the sale of national advertising sales on the Company’s Univision- and UniMás-affiliate television stations, and the Company pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on the Company’s Univision- and UniMás-affiliate television stations. During the three-month periods ended March 31, 2013 and 2012, the amount the Company paid Univision in this capacity was $2.3 million and $2.2 million, respectively.

In August 2008, the Company entered into a proxy agreement with Univision pursuant to which the Company granted Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and UniMás-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 the Company by Univision with respect to retransmission consent agreements entered into with Multichannel Video Programming Distributors (“MVPDs”). As of March 31, 2013, the amount due to the Company from Univision was $7.1 million related to the agreements for the carriage of its Univision and UniMás-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.

7

Stock-based compensation expense related to grants of stock options and restricted stock units was $0.9 million and $0.3 million for the three-month periods ended March 31, 2013 and 2012, 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.

The fair value of each stock option granted was estimated using the following weighted-average assumptions:

	Three-Month Period Ended March 31,
	2013
Fair value of options granted	$	1.49
Expected volatility		90	%
Risk-free interest rate		1.4	%
Expected lives		7.0 years
Dividend rate		—

As of March 31, 2013, there was approximately $4.5 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 March 31, 2013, there was approximately $0.3 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 1.3 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 Ended March 31,
	2013			2012
Basic and diluted earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	(957	)	$	(3,395	)
Denominator:
Weighted average common shares outstanding		86,459,017			85,806,080
Per share:
Net income (loss) per share applicable to common stockholders	$	(0.01	)	$	(0.04	)

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 and restricted stock awards.

8

For the three-month periods ended March 31, 2013 and 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 604,618 and 290,675 equivalent shares of dilutive securities for the three-month periods ended March 31, 2013 and 2012, 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.

During the second quarter of 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.

During the fourth quarter of 2012, the Company repurchased Notes with a principal amount of $40.0 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 $2.5 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

9

• 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, 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, the Company 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 March 31, 2013 was $320.9 million and $352.0 million, respectively. The estimated fair value is based on quoted market prices for the Notes.

The Company recognized interest expense related to amortization of the bond discount of $0.1 million for each of the three-month periods ended March 31, 2013 and 2012.

2012 Credit Facility

On December 20, 2012, the Company entered into a new term loan and revolving credit facility of up to $50 million (“2012 Credit Facility”) pursuant to the amended Credit Agreement. The 2012 Credit Facility consists of a four-year $20 million term loan facility and a four-year $30 million revolving credit facility that expires on December 20, 2016, which includes a $3 million sub-facility for letters of credit. As of March 31, 2013, the Company had approximately $0.6 million in outstanding letters of credit. In addition, the Company may increase the aggregate principal amount of the 2012 Credit Facility by up to an additional $50 million, subject to the Company satisfying certain conditions.

Borrowings under the 2012 Credit Facility bear interest at either: (i) the Base Rate (as defined in the agreement governing the 2012 Credit Facility (the “amended Credit Agreement”) plus the Applicable Margin (as defined in the amended Credit Agreement); or (ii) LIBOR plus the Applicable Margin (as defined in the amended Credit Agreement). The Company has not drawn on the revolving credit facility of the 2012 Credit Facility.

The 2012 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 2012 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 2012 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 credit facility that was in effect at that time.

The amended Credit Agreement also requires compliance with a total net leverage ratio financial covenant in the event that the revolving credit facility is drawn in an amount in excess of $3 million, net of certain letter of credit obligations.

Upon an event of default, as defined in the amended Credit Agreement, the lender 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 2012 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.

10

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 2012 Credit Facility for the benefit of the holders of the Notes and the lender under the 2012 Credit Facility; and

• An Intercreditor Agreement, in order to define the relative rights of the holders of the Notes and the lender under the 2012 Credit Facility with respect to the collateral securing the Company’s and the Guarantors’ respective obligations under the Notes and the 2012 Credit Facility; and

• 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;

• engage in acquisitions;

• make certain investments;

• make certain restricted payments;

• use loan proceeds to purchase or carry margin stock or for any other prohibited purpose;

• incur certain contingent obligations;

• 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 lender under the 2012 Credit Facility.

Moreover, if the Company fails to comply with any of the financial covenants or ratios under the 2012 Credit Facility, the Company’s lender 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.

The carrying amount and estimated fair value of the term loan as of March 31, 2013 was $20.0 million and $20.2 million, respectively. The estimated fair value is calculated using an income approach which projects expected future cash flows and discounts them using a rate based on industry and market yields.

11

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 2012 Annual Report on Form 10-K.

3. SEGMENT INFORMATION

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

Television Broadcasting

The Company owns and/or operates 56 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.

12

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. There were no significant sources of revenue generated outside the United States during the three-month periods ended March 31, 2013 and 2012. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period Ended March 31,						%  Change 2013 to 2012
	2013			2012
Net Revenue
Television	$	34,952		$	33,164			5	%
Radio		14,135			13,360			6	%
Consolidated		49,087			46,524			6	%
Direct operating expenses
Television		14,988			13,221			13	%
Radio		9,237			8,413			10	%
Consolidated		24,225			21,634			12	%
Selling, general and administrative expenses
Television		3,926			5,314			(26	)%
Radio		3,757			4,058			(7	)%
Consolidated		7,683			9,372			(18	)%
Depreciation and amortization
Television		3,217			3,558			(10	)%
Radio		738			789			(6	)%
Consolidated		3,955			4,347			(9	)%
Segment operating profit (loss)
Television		12,821			11,071			16	%
Radio		403			100			303	%
Consolidated		13,224			11,171			18	%
Corporate expenses		4,497			3,881			16	%
Operating income (loss)		8,727			7,290			20	%
Interest expense		(7,784	)		(9,100	)		(14	)%
Interest income		7			4			75	%
Income (loss) before income taxes	$	950		$	(1,806	)		(153	)%
Capital expenditures
Television	$	1,786		$	919
Radio		142			370
Consolidated	$	1,928		$	1,289

	March 31, 2013		December 31, 2012
Total assets
Television	$	309,914	$	313,904
Radio		120,898		124,147
Consolidated	$	430,812	$	438,051

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.

13

5. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

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

Set forth below are consolidating financial statements related to the Company, its material guarantor subsidiary Entravision Holdings, LLC, and its non-guarantor subsidiaries. Consolidating balance sheets are presented as of March 31, 2013 and December 31, 2012 and the related consolidating statements of operations are presented for the three-month periods ended March 31, 2013 and 2012. Consolidating statements of cash flows are presented for the three-month periods ended March 31, 2013 and 2012. The equity method of accounting has been used by the Company to report its investment in subsidiaries.

Consolidating Balance Sheet

March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	31,868		$	—		$	447	$	—		$	32,315
Trade receivables, net of allowance for doubtful accounts		45,989			—			372		—			46,361
Prepaid expenses and other current assets		4,320			—			640		—			4,960
Total current assets		82,177			—			1,459		—			83,636
Property and equipment, net		57,454			—			2,588		—			60,042
Intangible assets subject to amortization, net		21,714			—			—		—			21,714
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		162,651			—			—		(162,651	)		—
Other assets		8,072			—			10,396		(10,396	)		8,072
Total assets	$	406,460		$	178,262		$	19,137	$	(173,047	)	$	430,812
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	200		$	—		$	—	$	—		$	200
Advances payable, related parties		118			—			—		—			118
Accounts payable and accrued expenses		38,117			—			747		(9,009	)		29,855
Total current liabilities		38,435			—			747		(9,009	)		30,173
Long-term debt, less current maturities		340,748			—			—		—			340,748
Other long-term liabilities		7,180			—			—		—			7,180
Deferred income taxes		14,429			34,001			—		(1,387	)		47,043
Total liabilities		400,792			34,001			747		(10,396	)		425,144
Stockholders’ equity (deficit)
Class A common stock		6			—			—		—			6
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		932,037			—			—		—			932,037
Accumulated deficit		(926,378	)		(660,393	)		5,738		654,655			(926,378	)
Total stockholders’ equity (deficit)		5,668			144,261			18,390		(162,651	)		5,668
Total liabilities and stockholders’ equity (deficit)	$	406,460		$	178,262		$	19,137	$	(173,047	)	$	430,812

14

Consolidating Balance Sheet

December 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	35,631		$	—		$	499	$	—		$	36,130
Trade receivables, net of allowance for doubtful accounts		47,779			—			251		—			48,030
Prepaid expenses and other current assets		3,778			—			467		—			4,245
Total current assets		87,188			—			1,217		—			88,405
Property and equipment, net		58,900			—			2,535		—			61,435
Intangible assets subject to amortization, net		22,349			—			—		—			22,349
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		164,355			—			—		(164,355	)		—
Other assets		8,514			—			10,603		(10,603	)		8,514
Total assets	$	415,698		$	178,262		$	19,049	$	(174,958	)	$	438,051
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	150		$	—		$	—	$	—		$	150
Advances payable, related parties		118			—			—		—			118
Accounts payable and accrued expenses		47,537			—			742		(9,121	)		39,158
Total current liabilities		47,805			—			742		(9,121	)		39,426
Long-term debt, less current maturities		340,664			—			—		—			340,664
Other long-term liabilities		7,359			—			—		—			7,359
Deferred income taxes		14,469			32,214			—		(1,482	)		45,201
Total liabilities		410,297			32,214			742		(10,603	)		432,650
Stockholders’ equity
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		930,814			—			—		—			930,814
Accumulated deficit		(925,421	)		(658,606	)		5,655		652,951			(925,421	)
Total stockholders’ equity		5,401			146,048			18,307		(164,355	)		5,401
Total liabilities and stockholders’ equity	$	415,698		$	178,262		$	19,049	$	(174,958	)	$	438,051

15

Consolidating Statement of Operations

Three-Month Period Ended March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	48,757		$	—		$	826		$	(496	)	$	49,087
Expenses:
Direct operating expenses		24,374			—			347			(496	)		24,225
Selling, general and administrative expenses		7,535			—			148			—			7,683
Corporate expenses		4,497			—			—			—			4,497
Depreciation and amortization		3,813			—			142			—			3,955
		40,219			—			637			(496	)		40,360
Operating income (loss)		8,538			—			189			—			8,727
Interest expense		(7,784	)		—			—			—			(7,784	)
Interest income		7			—			—			—			7
Income (loss) before income taxes		761			—			189			—			950
Income tax benefit (expense)		(14	)		(1,787	)		(106	)		—			(1,907	)
Income (loss) before equity in net income (loss) of subsidiaries		747			(1,787	)		83			—			(957	)
Equity in income (loss) of subsidiaries		(1,704	)		—			—			1,704			—
Net income (loss) applicable to common stockholders	$	(957	)	$	(1,787	)	$	83		$	1,704		$	(957	)

Consolidating Statement of Operations

Three-Month Period Ended March 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	45,949		$	—		$	846		$	(271	)	$	46,524
Expenses:
Direct operating expenses		21,520			—			385			(271	)		21,634
Selling, general and administrative expenses		9,245			—			127			—			9,372
Corporate expenses		3,881			—			—			—			3,881
Depreciation and amortization		4,161			—			186			—			4,347
		38,807			—			698			(271	)		39,234
Operating income (loss)		7,142			—			148			—			7,290
Interest expense		(9,100	)		—			—			—			(9,100	)
Interest income		4			—			—			—			4
Income (loss) before income taxes		(1,954	)		—			148			—			(1,806	)
Income tax benefit (expense)		(496	)		(1,010	)		(83	)		—			(1,589	)
Income (loss) before equity in net income (loss) of subsidiaries		(2,450	)		(1,010	)		65			—			(3,395	)
Equity in income (loss) of subsidiaries		(945	)		—			—			945			—
Net income (loss) applicable to common stockholders	$	(3,395	)	$	(1,010	)	$	65		$	945		$	(3,395	)

16

Consolidating Statement of Cash Flows

Three-Month Period Ended March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	(957	)	$	(1,787	)	$	83		$	1,704		$	(957	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		3,813			—			142			—			3,955
Deferred income taxes		(40	)		1,787			95			—			1,842
Amortization of debt issue costs		455			—			—			—			455
Amortization of syndication contracts		151			—			—			—			151
Payments on syndication contracts		(325	)		—			—			—			(325	)
Non-cash stock-based compensation		872			—			—			—			872
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		2,037			—			(121	)		—			1,916
(Increase) decrease in amounts due from related party		(112	)		—			112			—			—
(Increase) decrease in prepaid expenses and other assets		(655	)		—			(173	)		—			(828	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(8,697	)		—			5			—			(8,692	)
Net cash provided by (used in) operating activities		(3,458	)		—			143			1,704			(1,611	)
Cash flows from investing activities:
Investment in subsidiaries		1,704			—			—			(1,704	)		—
Purchases of property and equipment and intangibles		(2,360	)		—			(195	)		—			(2,555	)
Net cash provided by (used in) investing activities		(656	)		—			(195	)		(1,704	)		(2,555	)
Cash flows from financing activities:
Proceeds from issuance of common stock		351			—			—			—			351
Net cash provided by (used in) financing activities		351			—			—			—			351
Net increase (decrease) in cash and cash equivalents		(3,763	)		—			(52	)		—			(3,815	)
Cash and cash equivalents:
Beginning		35,631			—			499			—			36,130
Ending	$	31,868		$	—		$	447		$	—		$	32,315

Consolidating Statement of Cash Flows

Three-Month Period Ended March 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	(3,395	)	$	(1,010	)	$	65		$	945		$	(3,395	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		4,161			—			186			—			4,347
Deferred income taxes		96			1,010			—			—			1,106
Amortization of debt issue costs		563			—			—			—			563
Amortization of syndication contracts		193			—			—			—			193
Payments on syndication contracts		(467	)		—			—			—			(467	)
Non-cash stock-based compensation		261			—			—			—			261
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		3,466			—			(197	)		—			3,269
(Increase) decrease in amounts due from related party		(11	)		—			11			—			—
(Increase) decrease in prepaid expenses and other assets		(682	)		—			38			—			(644	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(11,504	)		—			(35	)		—			(11,539	)
Net cash provided by (used in) operating activities		(7,319	)		—			68			945			(6,306	)
Cash flows from investing activities:
Investment in subsidiaries		945			—			—			(945	)		—
Purchases of property and equipment and intangibles		(1,164	)		—			—			—			(1,164	)
Net cash provided by (used in) investing activities		(219	)		—			—			(945	)		(1,164	)
Cash flows from financing activities:
Payments of deferred debt and offering costs		(80	)		—			—			—			(80	)
Net cash provided by (used in) financing activities		(80	)		—			—			—			(80	)
Net increase (decrease) in cash and cash equivalents		(7,618	)		—			68			—			(7,550	)
Cash and cash equivalents:
Beginning		58,276			—			443			—			58,719
Ending	$	50,658		$	—		$	511		$	—		$	51,169

17

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

Overview

We are a diversified Spanish-language media company utilizing a combination of television and radio operations, together with mobile, digital and other interactive media platforms, to reach Hispanic consumers across the United States, as well as the border markets of Mexico. With the purchase of Univision in 2007 by a private equity consortium, we believe that we are now the largest independent public media company focused principally on the U.S. Hispanic audience.

We operate in two reportable segments: television broadcasting and radio broadcasting. Our net revenue for the three-month period ended March 31, 2013, was $49.1 million. Of that amount, revenue generated by our television segment accounted for 71% and revenue generated by our radio segment accounted for 29%.

As of the date of filing this report, we own and/or operate 56 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.

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 every two years resulting from political advertising, particularly in the third and fourth quarters of Presidential election years (2008, 2012, etc.). Also, advertising revenue is generally higher every four years resulting from advertising aired during the World Cup (2010 and 2014), particularly the second and third quarters of those years.

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.

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 first quarter of 2013, we achieved revenue growth driven by increases in both our television and radio segments. Net revenue increased to $49.1 million, an increase of $2.6 million, or 6%, over the first quarter of 2012. Our audience shares remained strong in the nation’s most densely populated Hispanic markets.

Net revenue in our television segment increased to $35.0 million in the first quarter of 2013 from $33.2 million in the first quarter of 2012. This increase of $1.8 million, or 5%, in net revenue was primarily due to increases in local advertising revenue and retransmission consent revenue. We generated a total of $5.3 million of retransmission consent revenue in the first quarter of 2013. We anticipate that retransmission consent revenue for the full year 2013 will be greater than it was for the full year 2012 and will continue to be a growing source of net revenues in future periods.

Net revenue in our radio segment increased to $14.1 million in the first quarter of 2013 from $13.4 million in the first quarter of 2012, an increase of $0.7 million. The increase was primarily attributable to increases in national advertising revenue.

18

Relationship with Univision

A majority of our television stations are Univision- or UniMás-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 UniMás network programming in their respective markets. These long-term affiliation agreements each expires 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 UniMás 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 UniMás-affiliate television stations, and we pay certain sales representation fees to Univision relating to sales of all advertising for broadcast on our Univision- and UniMás-affiliate television stations. During the three-month periods ended March 31, 2013 and 2012, the amount we paid Univision in this capacity was $2.3 million and $2.2 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 UniMás 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 UniMás-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 March 31, 2013, the amount due to us from Univision was $7.1 million related to the agreements for the carriage of our Univision and UniMás-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 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 2012 Annual Report on Form 10-K.

19

Three-Month Periods Ended March 31, 2013 and 2012

The following table sets forth selected data from our operating results for the three-month periods ended March 31, 2013 and 2012 (in thousands):

	Three-Month Period Ended March 31,						% Change
	2013			2012
Statements of Operations Data:
Net revenue	$	49,087		$	46,524			6	%
Direct operating expenses		24,225			21,634			12	%
Selling, general and administrative expenses		7,683			9,372			(18	)%
Corporate expenses		4,497			3,881			16	%
Depreciation and amortization		3,955			4,347			(9	)%
		40,360			39,234			3	%
Operating income (loss)		8,727			7,290			20	%
Interest expense		(7,784	)		(9,100	)		(14	)%
Interest income		7			4			75	%
Income (loss) before income taxes		950			(1,806	)		*
Income tax (expense) benefit		(1,907	)		(1,589	)		20	%
Net income (loss) applicable to common stockholders	$	(957	)	$	(3,395	)		(72	)%
Other Data:
Capital expenditures		1,928			1,289
Consolidated adjusted EBITDA (adjusted for non-cash stock-based compensation) (1)		13,380			11,624
Net cash provided by (used in) operating activities		(1,611	)		(6,306	)
Net cash provided by (used in) investing activities		(2,555	)		(1,164	)
Net cash provided by (used in) financing activities		351			(80	)

(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) of 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 2012 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) of nonconsolidated affiliate, non-cash losses and syndication programming amortization and does include syndication programming payments.

Since our ability to borrow from our 2012 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 2012 Credit Facility contains a total net leverage ratio financial covenant. The total net leverage ratio, or the ratio of consolidated total debt (net of up to $10 million of unrestricted cash) to trailing-twelve-month consolidated adjusted EBITDA, affects both our ability to borrow from our 2012 Credit Facility and our applicable margin for the interest rate calculation. Under our 2012 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 March 31): 2013, 4.2 to 1; 2012, 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) of 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.

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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):

	Three-Month Period
	Ended March 31,
	2013			2012
Consolidated adjusted EBITDA (1)	$	13,380		$	11,624
Interest expense		(7,784	)		(9,100	)
Interest income		7			4
Income tax (expense) benefit		(1,907	)		(1,589	)
Amortization of syndication contracts		(151	)		(193	)
Payments on syndication contracts		325			467
Non-cash stock-based compensation included in direct operating expenses		(184	)		(13	)
Non-cash stock-based compensation included in selling, general and administrative expenses		—			(109	)
Non-cash stock-based compensation included in corporate expenses		(688	)		(139	)
Depreciation and amortization		(3,955	)		(4,347	)
Net income (loss)		(957	)		(3,395	)
Depreciation and amortization		3,955			4,347
Deferred income taxes		1,842			1,106
Amortization of debt issue costs		455			563
Amortization of syndication contracts		151			193
Payments on syndication contracts		(325	)		(467	)
Non-cash stock-based compensation		872			261
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		1,916			3,269
(Increase) decrease in prepaid expenses and other assets		(828	)		(644	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(8,692	)		(11,539	)
Cash flows from operating activities	$	(1,611	)	$	(6,306	)

Consolidated Operations

Net Revenue. Net revenue increased to $49.1 million for the three-month period ended March 31, 2013 from $46.5 million for the three-month period ended March 31, 2012, an increase of $2.6 million. Of the overall increase, $1.8 million came from our television segment and was primarily attributable to an increase in local advertising revenue and an increase in retransmission consent revenue. Additionally, $0.8 million of the overall increase came from our radio segment and was primarily attributable to an increase in national advertising revenue.

We believe that we will continue to face a challenging advertising environment in 2013 as our advertising customers continue to make difficult choices in the current uncertain economic environment and we will not have revenue from political advertising that positively impacted our results of operations in 2012.

Direct Operating Expenses. Direct operating expenses increased to $24.2 million for the three-month period ended March 31, 2013 from $21.6 million for the three-month period ended March 31, 2012, an increase of $2.6 million. In late 2012, we announced a new management structure with an increased focus on sales for several managers that resulted in the shifting of their salaries to direct operating expense from selling, general and administrative expense. Of the overall increase, $1.8 million came from our television segment and was primarily attributable to an increase in salary expense due to our new management structure and an increase in expenses associated with the increase in net revenue. Additionally, $0.8 million of the overall increase came from our radio segment and was primarily attributable to an increase in salary expense due to our

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new management structure. As a percentage of net revenue, direct operating expenses increased to 49% for the three-month period ended March 31, 2013 from 47% for the three-month period ended March 31, 2012. Direct operating expenses as a percentage of net revenue increased because the increase in direct operating expenses outpaced the increase in net revenue.

We believe that direct operating expenses will continue to increase during 2013 primarily as a result of the shift in expenses associated with our new management structure.

Selling, General and Administrative Expenses. Selling, general and administrative expenses decreased to $7.7 million for the three-month period ended March 31, 2013 from $9.4 million for the three-month period ended March 31, 2012, a decrease of $1.7 million. Of the overall decrease, $1.4 million came from our television segment and was primarily attributable to a decrease in salary expense due to the company’s new management structure and a decrease in bad debt expense. Additionally, $0.3 million of the overall decrease came from our radio segment and was primarily attributable to a decrease in salary expense due to our new management structure. As a percentage of net revenue, selling, general and administrative expenses decreased to 16% for the three-month period ended March 31, 2013 from 20% for the three-month period ended March 31, 2012. Selling, general and administrative expenses as a percentage of net revenue decreased because net revenue increased and selling, general and administrative expenses decreased.

We believe that selling, general and administrative expenses will continue to decrease during 2013 primarily as a result of the shift in expenses associated with our new management structure.

Corporate Expenses. Corporate expenses increased to $4.5 million for the three-month period ended March 31, 2013 from $3.9 million for the three-month period ended March 31, 2012, an increase of $0.6 million. The increase was primarily attributable to an increase in non-cash stock-based compensation expense. As a percentage of net revenue, corporate expenses increased to 9% for the three-month period ended March 31, 2013 from 8% for the three-month period ended March 31, 2012.

We believe that corporate expenses will continue to increase during 2013 primarily as a result of increased non-cash stock-based compensation expenses.

Depreciation and Amortization. Depreciation and amortization decreased to $4.0 million for the three-month period ended March 31, 2013 from $4.3 million for the three-month period ended March 31, 2012, a decrease of $0.3 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 $8.7 million for the three-month period ended March 31, 2013, compared to $7.3 million for the three-month period ended March 31, 2012.

Interest Expense. Interest expense decreased to $7.8 million for the three-month period ended March 31, 2013 from $9.1 million for the three-month period ended March 31, 2012, a decrease of $1.3 million. On December 31, 2012 and May 30, 2012, we repurchased $40.0 million and $20.0 million, respectively, of our Notes. The decrease in interest expense was primarily attributable to the decrease in our outstanding debt.

Income Tax Expense. Income tax expense for the three-month period ended March 31, 2013 was $1.9 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 three-month period ended March 31, 2012 was $1.6 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.

As of March 31, 2013, 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 reduced our deferred tax assets by deferred tax liabilities except for the deferred tax liabilities attributable to indefinite-lived intangibles. We do not have any tax planning strategies that would recover our deferred tax assets.

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Segment Operations

Television

Net Revenue. Net revenue in our television segment increased to $35.0 million for the three-month period ended March 31, 2013 from $33.2 million for the three-month period ended March 31, 2012, an increase of $1.8 million. The increase was primarily attributable to increases in local advertising revenue and retransmission consent revenue. We generated a total of $5.3 million and $5.0 million in retransmission consent revenue for the three-month periods ended March 31, 2013 and 2012, respectively.

Direct Operating Expenses. Direct operating expenses in our television segment increased to $15.0 million for the three-month period ended March 31, 2013 from $13.2 million for the three-month period ended March 31, 2012, an increase of $1.8 million. The increase was primarily attributable to an increase in salary expense due to our new management structure, which shifted salaries to direct operating expense from selling, general and administrative expense, and an increase in expenses associated with the increase in net revenue.

Selling, General and Administrative Expenses. Selling, general and administrative expenses in our television segment decreased to $3.9 million for the three-month period ended March 31, 2013 from $5.3 million for the three-month period ended March 31, 2012, a decrease of $1.4 million. The decrease was primarily attributable to a decrease in salary expense due to the company’s new management structure, which shifted salaries to direct operating expense from selling, general and administrative expense, and a decrease in bad debt expense.

Radio

Net Revenue. Net revenue in our radio segment increased to $14.1 million for the three-month period ended March 31, 2013 from $13.4 million for the three-month period ended March 31, 2012, an increase of $0.7 million. The increase was primarily attributable to an increase in national advertising revenue.

Direct Operating Expenses. Direct operating expenses in our radio segment increased to $9.2 million for the three-month ended March 31, 2013 from $8.4 million for the three-month ended March 31, 2012, an increase of $0.8 million. The increase was primarily attributable to an increase in salary expense due to our new management structure, which shifted salaries to direct operating expense from selling, general and administrative expense.

Selling, General and Administrative Expenses. Selling, general and administrative expenses in our radio segment decreased to $3.8 million for the three-month period ended March 31, 2013 from $4.1 million for the three-month period ended March 31, 2012, a decrease of $0.3 million. The decrease was primarily attributable to a decrease in salary expense due to our new management structure, which shifted salaries to direct operating expense from selling, general and administrative expense.

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. We had net income of approximately $13.6 million for the year ended December 31, 2012 and 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 $40.0 million, $17.6 million and $37.1 million for the years ended December 31, 2012, 2011 and 2010, respectively. Although we reported negative cash flow from operations of $1.6 million for the three-month period ended March 31, 2013, we expect to have positive cash flow from operations for the 2013 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 2012 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 to 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

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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 then 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.

During the second quarter of 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.

During the fourth quarter of 2012, we repurchased Notes with a principal amount of $40.0 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 $2.5 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 our previous credit facility; 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

• 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, 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

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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.

2012 Credit Facility

On December 20, 2012, we entered into a new term loan and revolving credit facility of up to $50 million (our “2012 Credit Facility”) pursuant to the amended Credit Agreement. Our 2012 Credit Facility consists of a four-year $20 million term loan facility and a four-year $30 million revolving credit facility that expires on December 20, 2016, which includes a $3 million sub-facility for letters of credit. As of March 31, 2013, we had approximately $0.6 million in outstanding letters of credit. In addition, we may increase the aggregate principal amount of our 2012 Credit Facility by up to an additional $50 million, subject to our satisfying certain conditions.

Borrowings under our 2012 Credit Facility bear interest at either: (i) the Base Rate (as defined in the agreement governing our 2012 Credit Facility (the “amended Credit Agreement”) plus the Applicable Margin (as defined in the amended Credit Agreement); or (ii) LIBOR plus the Applicable Margin (as defined in the amended Credit Agreement). We have not drawn on the revolving credit facility of our 2012 Credit Facility.

Our 2012 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 2012 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 2012 Credit Facility rank senior to the Notes upon the terms set forth in the Intercreditor Agreement that we entered into in connection with the credit facility that was in effect at that time.

The amended Credit Agreement also requires compliance with a total net leverage ratio financial covenant in the event that the revolving credit facility is drawn in an amount in excess of $3 million, net of certain letter of credit obligations.

Upon an event of default, as defined in the amended Credit Agreement, the lender may, among other things, suspend or terminate their obligation to make further loans to us and/or declare all amounts then outstanding under our 2012 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 2012 Credit Facility for the benefit of the holders of the Notes and the lender under our 2012 Credit Facility; and

• An Intercreditor Agreement, in order to define the relative rights of the holders of the Notes and the lender under our 2012 Credit Facility with respect to the collateral securing our and the Guarantors’ respective obligations under the Notes and our 2012 Credit Facility; and

• 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;

• engage in acquisitions;

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• make certain investments;

• make certain restricted payments;

• use loan proceeds to purchase or carry margin stock or for any other prohibited purpose;

• incur certain contingent obligations;

• 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 lender under our 2012 Credit Facility.

Moreover, if we fail to comply with any of the financial covenants or ratios under our 2012 Credit Facility, our lender 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.

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 March 31, 2013. We did not repurchase any shares of Class A common stock during 2011, 2012 or 2013. 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.

Consolidated Adjusted EBITDA

Consolidated adjusted EBITDA (as defined below) increased to $13.4 million for the three-month period ended March 31, 2013 from $11.6 million for the three-month period ended March 31, 2012, an increase of $1.8 million, or 15%. As a percentage of net revenue, consolidated adjusted EBITDA increased to 27% for the three-month period ended March 31, 2013 from 25% for the three-month period ended March 31, 2012.

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) of 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 2012 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) of nonconsolidated affiliate, non-cash losses and syndication programming amortization and does include syndication programming payments.

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Since our ability to borrow from our 2012 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 2012 Credit Facility contains a total net leverage ratio financial covenant. The total net leverage ratio, or the ratio of consolidated total debt (net of up to $10 million of unrestricted cash) to trailing-twelve-month consolidated adjusted EBITDA, affects both our ability to borrow from our 2012 Credit Facility and our applicable margin for the interest rate calculation. Under our 2012 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 March 31): 2013, 4.2 to 1; 2012, 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) of 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 21.

Cash Flow

Net cash flow used in operating activities was $1.6 million for the three-month period ended March 31, 2013, compared to net cash flow used in operating activities of $6.3 million for the three-month period ended March 31, 2012. We had a net loss of $1.0 million for the three-month period ended March 31, 2013. Our net loss for the three-month period ended March 31, 2013 was primarily due to non-cash items. We had a net loss of $3.4 million for the three-month period ended March 31, 2012, which was primarily a result of non-cash expense. We expect to have positive cash flow from operating activities for the 2013 year.

Net cash flow used in investing activities was $2.6 million for the three-month period ended March 31, 2013, compared to net cash flow used in investing activities of $1.2 million for the three-month period ended March 31, 2012. During the three-month period ended March 31, 2013, we spent $2.6 million on net capital expenditures. During the three-month period ended March 31, 2012, we spent $1.2 million on net capital expenditures. We anticipate that our capital expenditures will be approximately $9 million during the full year 2013. 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 provided by financing activities was $0.4 million for the three-month period ended March 31, 2013, compared to net cash flow used in financing activities of $0.1 million for the three-month period ended March 31, 2012. During the three-month period ended March 31, 2013, we received proceeds of $0.4 million related to the issuance of common stock upon the exercise of stock options. During the three-month period ended March 31, 2012, we made payments of $0.1 million related the amendment to our credit agreement.

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.

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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 to 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.

On December 20, 2012 we entered into our 2012 Credit Facility which consists of a four-year $20 million term loan facility and a four-year $30 million revolving credit facility. Our term loan bears interest at LIBOR plus a margin of 3.75% for a total interest rate of 3.95% at March 31, 2013. As of March 31, 2013, $20 million of our term loan was outstanding and there were no borrowings outstanding on the revolving credit facility.

If LIBOR were to increase by 100 basis points, or one percentage point, from its March 31, 2013 level, our annual interest expense would increase and cash flow from operations would decrease by approximately $0.2 million based on the outstanding balance of our 2012 Credit Facility as of March 31, 2013.

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.

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.

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ITEM 1A. RISK FACTORS

No material change.

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

None.

ITEM  3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

Not applicable

ITEM 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: May 3, 2013

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: May 3, 2013

/S/ WALTER F. ULLOA        

Walter F. Ulloa

Chief Executive Officer

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: May 3, 2013

/S/ CHRISTOPHER T. YOUNG        

Christopher T. Young

Chief Financial Officer

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 March 31, 2013 (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: May 3, 2013	/S/ WALTER F. ULLOA
	Walter F. Ulloa Chief Executive Officer
Date: May 3, 2013	/S/ CHRISTOPHER T. YOUNG
	Christopher T. Young Chief Financial Officer

XML

Segment Information

3 Months Ended

Mar. 31, 2013

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 56 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. There were no significant sources of revenue generated outside the United States during the three-month periods ended March 31, 2013 and 2012. The Company evaluates the performance of its operating segments based on the following (in thousands):

	Three-Month Period Ended March 31,						%  Change 2013 to 2012
	2013			2012
Net Revenue
Television	$	34,952		$	33,164			5	%
Radio		14,135			13,360			6	%
Consolidated		49,087			46,524			6	%
Direct operating expenses
Television		14,988			13,221			13	%
Radio		9,237			8,413			10	%
Consolidated		24,225			21,634			12	%
Selling, general and administrative expenses
Television		3,926			5,314			(26	)%
Radio		3,757			4,058			(7	)%
Consolidated		7,683			9,372			(18	)%
Depreciation and amortization
Television		3,217			3,558			(10	)%
Radio		738			789			(6	)%
Consolidated		3,955			4,347			(9	)%
Segment operating profit (loss)
Television		12,821			11,071			16	%
Radio		403			100			303	%
Consolidated		13,224			11,171			18	%
Corporate expenses		4,497			3,881			16	%
Operating income (loss)		8,727			7,290			20	%
Interest expense		(7,784	)		(9,100	)		(14	)%
Interest income		7			4			75	%
Income (loss) before income taxes	$	950		$	(1,806	)		(153	)%
Capital expenditures
Television	$	1,786		$	919
Radio		142			370
Consolidated	$	1,928		$	1,289

	March 31, 2013		December 31, 2012
Total assets
Television	$	309,914	$	313,904
Radio		120,898		124,147
Consolidated	$	430,812	$	438,051

XML

The Company and Significant Accounting Policies

3 Months Ended

Mar. 31, 2013

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 UniMás-affiliated television stations. The Company’s network affiliation agreements, as amended, with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and UniMás 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, the Company generally retains 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 UniMás network. Those allocations are subject to adjustment from time to time by Univision.

Under the network affiliation agreements, Univision acts as the Company’s exclusive sales representative for the sale of national advertising sales on the Company’s Univision- and UniMás-affiliate television stations, and the Company pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on the Company’s Univision- and UniMás-affiliate television stations. During the three-month periods ended March 31, 2013 and 2012, the amount the Company paid Univision in this capacity was $2.3 million and $2.2 million, respectively.

In August 2008, the Company entered into a proxy agreement with Univision pursuant to which the Company granted Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and UniMás-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 the Company by Univision with respect to retransmission consent agreements entered into with Multichannel Video Programming Distributors (“MVPDs”). As of March 31, 2013, the amount due to the Company from Univision was $7.1 million related to the agreements for the carriage of its Univision and UniMás-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 $0.9 million and $0.3 million for the three-month periods ended March 31, 2013 and 2012, 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.

The fair value of each stock option granted was estimated using the following weighted-average assumptions:

	Three-Month Period Ended March 31,
	2013
Fair value of options granted	$	1.49
Expected volatility		90	%
Risk-free interest rate		1.4	%
Expected lives		7.0 years
Dividend rate		—

As of March 31, 2013, there was approximately $4.5 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 March 31, 2013, there was approximately $0.3 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 1.3 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 Ended March 31,
	2013			2012
Basic and diluted earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	(957	)	$	(3,395	)
Denominator:
Weighted average common shares outstanding		86,459,017			85,806,080
Per share:
Net income (loss) per share applicable to common stockholders	$	(0.01	)	$	(0.04	)

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 and restricted stock awards.

For the three-month periods ended March 31, 2013 and 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 604,618 and 290,675 equivalent shares of dilutive securities for the three-month periods ended March 31, 2013 and 2012, 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.

During the second quarter of 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.

During the fourth quarter of 2012, the Company repurchased Notes with a principal amount of $40.0 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 $2.5 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, 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, the Company 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 March 31, 2013 was $320.9 million and $352.0 million, respectively. The estimated fair value is based on quoted market prices for the Notes.

The Company recognized interest expense related to amortization of the bond discount of $0.1 million for each of the three-month periods ended March 31, 2013 and 2012.

2012 Credit Facility

On December 20, 2012, the Company entered into a new term loan and revolving credit facility of up to $50 million (“2012 Credit Facility”) pursuant to the amended Credit Agreement. The 2012 Credit Facility consists of a four-year $20 million term loan facility and a four-year $30 million revolving credit facility that expires on December 20, 2016, which includes a $3 million sub-facility for letters of credit. As of March 31, 2013, the Company had approximately $0.6 million in outstanding letters of credit. In addition, the Company may increase the aggregate principal amount of the 2012 Credit Facility by up to an additional $50 million, subject to the Company satisfying certain conditions.

Borrowings under the 2012 Credit Facility bear interest at either: (i) the Base Rate (as defined in the agreement governing the 2012 Credit Facility (the “amended Credit Agreement”) plus the Applicable Margin (as defined in the amended Credit Agreement); or (ii) LIBOR plus the Applicable Margin (as defined in the amended Credit Agreement). The Company has not drawn on the revolving credit facility of the 2012 Credit Facility.

The 2012 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 2012 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 2012 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 credit facility that was in effect at that time.

The amended Credit Agreement also requires compliance with a total net leverage ratio financial covenant in the event that the revolving credit facility is drawn in an amount in excess of $3 million, net of certain letter of credit obligations.

Upon an event of default, as defined in the amended Credit Agreement, the lender 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 2012 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 2012 Credit Facility for the benefit of the holders of the Notes and the lender under the 2012 Credit Facility; and

• An Intercreditor Agreement, in order to define the relative rights of the holders of the Notes and the lender under the 2012 Credit Facility with respect to the collateral securing the Company’s and the Guarantors’ respective obligations under the Notes and the 2012 Credit Facility; and

• 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;

• engage in acquisitions;

• make certain investments;

• make certain restricted payments;

• use loan proceeds to purchase or carry margin stock or for any other prohibited purpose;

• incur certain contingent obligations;

• 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 lender under the 2012 Credit Facility.

Moreover, if the Company fails to comply with any of the financial covenants or ratios under the 2012 Credit Facility, the Company’s lender 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.

The carrying amount and estimated fair value of the term loan as of March 31, 2013 was $20.0 million and $20.2 million, respectively. The estimated fair value is calculated using an income approach which projects expected future cash flows and discounts them using a rate based on industry and market yields.

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 2012 Annual Report on Form 10-K.

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Current assets
Cash and cash equivalents	$ 32,315	$ 36,130
Trade receivables, net of allowance for doubtful accounts of $3,985 and $4,396 (including related parties of $7,064 and $4,916)	46,361	48,030
Prepaid expenses and other current assets (including related parties of $274 and $274)	4,960	4,245
Total current assets	83,636	88,405
Property and equipment, net	60,042	61,435
Intangible assets subject to amortization, net (included related parties of $20,299 and $20,880)	21,714	22,349
Intangible assets not subject to amortization	220,701	220,701
Goodwill	36,647	36,647
Other assets	8,072	8,514
Total assets	430,812	438,051
Current liabilities
Current maturities of long-term debt	200	150
Advances payable, related parties	118	118
Accounts payable and accrued expenses (including related parties of $3,756 and $3,576)	29,855	39,158
Total current liabilities	30,173	39,426
Long-term debt, less current maturities (net of bond discount of $2,848 and $2,982)	340,748	340,664
Other long-term liabilities	7,180	7,359
Deferred income taxes	47,043	45,201
Total liabilities	425,144	432,650
Commitments and contingencies (note 4)
Stockholders' equity (deficit)
Additional paid-in capital	932,037	930,814
Accumulated deficit	(926,378)	(925,421)
Total stockholders' equity (deficit)	5,668	5,401
Total liabilities and stockholders' equity (deficit)	430,812	438,051
Class A Common Stock
Stockholders' equity (deficit)
Common stock	6	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	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ (957)	$ (3,395)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,955	4,347
Deferred income taxes	1,842	1,106
Amortization of debt issue costs	455	563
Amortization of syndication contracts	151	193
Payments on syndication contracts	(325)	(467)
Non-cash stock-based compensation	872	261
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	1,916	3,269
(Increase) decrease in prepaid expenses and other assets	(828)	(644)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(8,692)	(11,539)
Net cash provided by (used in) operating activities	(1,611)	(6,306)
Cash flows from investing activities:
Purchases of property and equipment and intangibles	(2,555)	(1,164)
Net cash provided by (used in) investing activities	(2,555)	(1,164)
Cash flows from financing activities:
Proceeds from issuance of common stock	351
Payments of deferred debt and offering costs		(80)
Net cash provided by (used in) financing activities	351	(80)
Net increase (decrease) in cash and cash equivalents	(3,815)	(7,550)
Cash and cash equivalents:
Beginning	36,130	58,719
Ending	32,315	51,169
Cash payments (refunds) for:
Interest	14,383	16,933
Income taxes	$ 65	$ 483

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Condensed Consolidating Financial Statements (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Consolidating statement of operations
Net revenue	$ 49,087	$ 46,524
Expenses:
Direct operating expenses	24,225	21,634
Selling, general and administrative expenses	7,683	9,372
Corporate expenses	4,497	3,881
Depreciation and amortization	3,955	4,347
Total expenses	40,360	39,234
Operating income (loss)	8,727	7,290
Interest expense	(7,784)	(9,100)
Interest income	7	4
Income (loss) before income taxes	950	(1,806)
Income tax benefit (expense)	(1,907)	(1,589)
Income (loss) before equity in net income (loss) of subsidiaries	(957)	(3,395)
Equity in income (loss) of subsidiaries
Net income (loss) applicable to common stockholders	(957)	(3,395)
Parent [Member]
Consolidating statement of operations
Net revenue	48,757	45,949
Expenses:
Direct operating expenses	24,374	21,520
Selling, general and administrative expenses	7,535	9,245
Corporate expenses	4,497	3,881
Depreciation and amortization	3,813	4,161
Total expenses	40,219	38,807
Operating income (loss)	8,538	7,142
Interest expense	(7,784)	(9,100)
Interest income	7	4
Income (loss) before income taxes	761	(1,954)
Income tax benefit (expense)	(14)	(496)
Income (loss) before equity in net income (loss) of subsidiaries	747	(2,450)
Equity in income (loss) of subsidiaries	(1,704)	(945)
Net income (loss) applicable to common stockholders	(957)	(3,395)
Guarantor Subsidiaries [Member]
Expenses:
Income tax benefit (expense)	(1,787)	(1,010)
Income (loss) before equity in net income (loss) of subsidiaries	(1,787)	(1,010)
Equity in income (loss) of subsidiaries
Net income (loss) applicable to common stockholders	(1,787)	(1,010)
Non-Guarantor Subsidiaries [Member]
Consolidating statement of operations
Net revenue	826	846
Expenses:
Direct operating expenses	347	385
Selling, general and administrative expenses	148	127
Depreciation and amortization	142	186
Total expenses	637	698
Operating income (loss)	189	148
Income (loss) before income taxes	189	148
Income tax benefit (expense)	(106)	(83)
Income (loss) before equity in net income (loss) of subsidiaries	83	65
Equity in income (loss) of subsidiaries
Net income (loss) applicable to common stockholders	83	65
Eliminations [Member]
Consolidating statement of operations
Net revenue	(496)	(271)
Expenses:
Direct operating expenses	(496)	(271)
Total expenses	(496)	(271)
Equity in income (loss) of subsidiaries	1,704	945
Net income (loss) applicable to common stockholders	$ 1,704	$ 945

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Basis of Presentation

3 Months Ended

Mar. 31, 2013

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, 2012 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. 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, 2013 or any other future period.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Trade receivables, allowance for doubtful accounts	$ 3,985	$ 4,396
Prepaid expenses and other current assets	4,960	4,245
Intangible assets subject to amortization, net	21,714	22,349
Accounts payable and accrued expenses	29,855	39,158
Long-term debt, less current maturities, bond discount	2,848	2,982
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	55,090,121	54,404,226
Common stock, shares outstanding	55,090,121	54,404,226
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	7,064	4,916
Prepaid expenses and other current assets	274	274
Intangible assets subject to amortization, net	20,299	20,880
Accounts payable and accrued expenses	$ 3,756	$ 3,576

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The Company and Significant Accounting Policies (Details 1) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Numerator:
Net income (loss) applicable to common stockholders	$ (957)	$ (3,395)
Denominator:
Weighted average common shares outstanding	86,459,017	85,806,080
Per share:
Net income (loss) per share applicable to common stockholders	$ (0.01)	$ (0.04)

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2013	Apr. 26, 2013 Class A Common Stock	Apr. 26, 2013 Class B Common Stock	Apr. 26, 2013 Class U Common stock
Entity Registrant Name	ENTRAVISION COMMUNICATIONS CORP
Entity Central Index Key	0001109116
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,146,521	22,188,161	9,352,729

XML

The Company and Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended			12 Months Ended				12 Months Ended					3 Months Ended		1 Months Ended	3 Months Ended			3 Months Ended						3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2011	Dec. 31, 2012	Dec. 20, 2012	Mar. 31, 2013 Letter of Credit [Member]	Mar. 31, 2013 Term Loan [Member]	Dec. 31, 2012 2012 Credit Facility [Member]	Mar. 31, 2013 2012 Credit Facility [Member]	Dec. 20, 2012 2012 Credit Facility [Member]	Mar. 31, 2013 2012 Credit Facility [Member] Letter of Credit [Member]	Dec. 20, 2012 2012 Credit Facility [Member] Letter of Credit [Member]	Dec. 31, 2012 Notes Payable to Banks [Member]	Jun. 30, 2012 Notes Payable to Banks [Member]	Jul. 31, 2010 8.75% Senior Secured First Lien Notes [Member]	Mar. 31, 2013 8.75% Senior Secured First Lien Notes [Member]	Jul. 27, 2010 8.75% Senior Secured First Lien Notes [Member]	Mar. 31, 2013 8.75% Senior Secured First Lien Notes [Member] Prior to August 1, 2013, Term One [Member]	Mar. 31, 2013 8.75% Senior Secured First Lien Notes [Member] Prior to August 1, 2013, Term Two [Member]	Mar. 31, 2013 8.75% Senior Secured First Lien Notes [Member] Prior to August 1, 2013, Term Three [Member]	Mar. 31, 2013 8.75% Senior Secured First Lien Notes [Member] Twelve Months Beginning August 1, 2013, Term Four [Member]	Mar. 31, 2013 8.75% Senior Secured First Lien Notes [Member] Twelve Months Beginning August 1, 2014, Term Four [Member]	Mar. 31, 2013 8.75% Senior Secured First Lien Notes [Member] Twelve Months Beginning August 1, 2015, Term Four [Member]	Mar. 31, 2013 8.75% Senior Secured First Lien Notes [Member] Twelve Months Beginning August 1, 2016, Term Four [Member]	Mar. 31, 2013 Univision [Member]	Mar. 31, 2012 Univision [Member]	Mar. 31, 2013 Unimas [Member]	Mar. 31, 2013 Restricted Stock [Member]	Mar. 31, 2013 Maximum [Member]	Mar. 31, 2013 Maximum [Member] Restricted Stock [Member]	Mar. 31, 2013 Minimum [Member]	Mar. 31, 2013 Minimum [Member] Restricted Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Expiry year of long-term affiliation agreements																									2021
Renewal period of affiliation agreements																									2 years
Affiliate Advertising Minutes Per Hour for which Entity has Right to Sell																									6 minutes		4 minutes 30 seconds
Payment of sales representation fees to television stations																									$ 2,300,000	$ 2,200,000
Period to grant television station for terms of retransmission consent agreements																									6 years
Amount due from television stations for carriage																									7,100,000
Common stock percentage held by Univision																									10.00%
Amortization period of stock based compensation expense																													4 years	4 years	1 year	1 year
Unrecognized compensation expense related to grants of restricted stock units																												4,500,000
Weighted-average period for unrecognized compensation expense	1 year 3 months 18 days																											1 year 10 months 24 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%
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
Notes Maturity Date																Jan. 08, 2017
Redemption price for the redeemed notes													103.00%	103.00%
Loss on debt extinguishment			400,000										2,500,000	1,200,000
Principal amount repurchased			16,200,000										40,000,000	20,000,000
Rate on priority on principal amount with net proceeds at redemption																		10.00%	35.00%
Redemption price on principal amount with net proceeds, accrued and unpaid expense																		103.00%	108.75%	100.00%	106.563%	104.375%	102.188%	100.00%
Rate on principal amount outstanding																			65.00%
Redemption closing date																			60 days
Redemption of Notes upon change in control, Amount as percentage of Principal Amount including interest																101.00%
Redemption of Notes Declaration of Acceleration Written Percentage of Principal Amount																25.00%
Carrying amount of notes																320,900,000
Fair value of notes																352,000,000
Amount of revolving credit facility										50,000,000		3,000,000
Period of revolving credit facility				4 years
Maturity date of revolving credit facility								Dec. 20, 2016
Letter of credit obligations					20,000,000	3,000,000			50,000,000	30,000,000
Carrying amount of term loan							20,000,000				600,000
Estimated fair value of term loan							20,200,000
Summary of Significant Accounting Policies (Textual) [Abstract]
Stock-based compensation expense related to grants of stock options and restricted stock units	872,000	261,000
Unrecognized compensation expense related to grants of stock options	300,000
Weighted-average period for unrecognized compensation expense	1 year 3 months 18 days																											1 year 10 months 24 days
Weighted average shares outstanding of diluted securities, not included for diluted income per share	604,618	290,675
Long term debt fair value																352,000,000
Interest expense related to amortization of the bond discount	$ 100,000	$ 100,000

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Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Consolidated Statements of Operations [Abstract]
Net revenue	$ 49,087	$ 46,524
Expenses:
Direct operating expenses (including related parties of $2,293 and $2,244) (including non-cash stock-based compensation of $184 and $13)	24,225	21,634
Selling, general and administrative expenses (including non-cash stock-based compensation of $0 and $109)	7,683	9,372
Corporate expenses (including non-cash stock-based compensation of $688 and $139)	4,497	3,881
Depreciation and amortization (includes direct operating of $3,032 and $3,141; selling, general and administrative of $713 and $717; and corporate of $210 and $489) (including related parties of $581 and $893)	3,955	4,347
Total expenses	40,360	39,234
Operating income (loss)	8,727	7,290
Interest expense	(7,784)	(9,100)
Interest income	7	4
Income (loss) before income taxes	950	(1,806)
Income tax (expense) benefit	(1,907)	(1,589)
Net income (loss) applicable to common stockholders	$ (957)	$ (3,395)
Basic and diluted earnings per share:
Net income (loss) per share applicable to common stockholders, basic and diluted	$ (0.01)	$ (0.04)
Weighted average common shares outstanding, basic and diluted	86,459,017	85,806,080

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The Company and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2013

The Company and Significant Accounting Policies [Abstract]

Related Party

Related Party

A majority of the Company’s television stations are Univision- or UniMás-affiliated television stations. The Company’s network affiliation agreements, as amended, with Univision provide certain of its owned stations the exclusive right to broadcast Univision’s primary network and UniMás 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, the Company generally retains 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 UniMás network. Those allocations are subject to adjustment from time to time by Univision.

Under the network affiliation agreements, Univision acts as the Company’s exclusive sales representative for the sale of national advertising sales on the Company’s Univision- and UniMás-affiliate television stations, and the Company pays certain sales representation fees to Univision relating to sales of all advertising for broadcast on the Company’s Univision- and UniMás-affiliate television stations. During the three-month periods ended March 31, 2013 and 2012, the amount the Company paid Univision in this capacity was $2.3 million and $2.2 million, respectively.

In August 2008, the Company entered into a proxy agreement with Univision pursuant to which the Company granted Univision the right to negotiate the terms of retransmission consent agreements for its Univision- and UniMás-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 the Company by Univision with respect to retransmission consent agreements entered into with Multichannel Video Programming Distributors (“MVPDs”). As of March 31, 2013, the amount due to the Company from Univision was $7.1 million related to the agreements for the carriage of its Univision and UniMás-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 $0.9 million and $0.3 million for the three-month periods ended March 31, 2013 and 2012, 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.

The fair value of each stock option granted was estimated using the following weighted-average assumptions:

	Three-Month Period Ended March 31,
	2013
Fair value of options granted	$	1.49
Expected volatility		90	%
Risk-free interest rate		1.4	%
Expected lives		7.0 years
Dividend rate		—

As of March 31, 2013, there was approximately $4.5 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 March 31, 2013, there was approximately $0.3 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 1.3 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 Ended March 31,
	2013			2012
Basic and diluted earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	(957	)	$	(3,395	)
Denominator:
Weighted average common shares outstanding		86,459,017			85,806,080
Per share:
Net income (loss) per share applicable to common stockholders	$	(0.01	)	$	(0.04	)

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 and restricted stock awards.

For the three-month periods ended March 31, 2013 and 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 604,618 and 290,675 equivalent shares of dilutive securities for the three-month periods ended March 31, 2013 and 2012, respectively.

2012 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.

During the second quarter of 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.

During the fourth quarter of 2012, the Company repurchased Notes with a principal amount of $40.0 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 $2.5 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, 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, the Company 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 March 31, 2013 was $320.9 million and $352.0 million, respectively. The estimated fair value is based on quoted market prices for the Notes.

The Company recognized interest expense related to amortization of the bond discount of $0.1 million for each of the three-month periods ended March 31, 2013 and 2012.

2012 Credit Facility

On December 20, 2012, the Company entered into a new term loan and revolving credit facility of up to $50 million (“2012 Credit Facility”) pursuant to the amended Credit Agreement. The 2012 Credit Facility consists of a four-year $20 million term loan facility and a four-year $30 million revolving credit facility that expires on December 20, 2016, which includes a $3 million sub-facility for letters of credit. As of March 31, 2013, the Company had approximately $0.6 million in outstanding letters of credit. In addition, the Company may increase the aggregate principal amount of the 2012 Credit Facility by up to an additional $50 million, subject to the Company satisfying certain conditions.

Borrowings under the 2012 Credit Facility bear interest at either: (i) the Base Rate (as defined in the agreement governing the 2012 Credit Facility (the “amended Credit Agreement”) plus the Applicable Margin (as defined in the amended Credit Agreement); or (ii) LIBOR plus the Applicable Margin (as defined in the amended Credit Agreement). The Company has not drawn on the revolving credit facility of the 2012 Credit Facility.

The 2012 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 2012 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 2012 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 credit facility that was in effect at that time.

The amended Credit Agreement also requires compliance with a total net leverage ratio financial covenant in the event that the revolving credit facility is drawn in an amount in excess of $3 million, net of certain letter of credit obligations.

Upon an event of default, as defined in the amended Credit Agreement, the lender 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 2012 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 2012 Credit Facility for the benefit of the holders of the Notes and the lender under the 2012 Credit Facility; and

• An Intercreditor Agreement, in order to define the relative rights of the holders of the Notes and the lender under the 2012 Credit Facility with respect to the collateral securing the Company’s and the Guarantors’ respective obligations under the Notes and the 2012 Credit Facility; and

• 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;

• engage in acquisitions;

• make certain investments;

• make certain restricted payments;

• use loan proceeds to purchase or carry margin stock or for any other prohibited purpose;

• incur certain contingent obligations;

• 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 lender under the 2012 Credit Facility.

Moreover, if the Company fails to comply with any of the financial covenants or ratios under the 2012 Credit Facility, the Company’s lender 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.

The carrying amount and estimated fair value of the term loan as of March 31, 2013 was $20.0 million and $20.2 million, respectively. The estimated fair value is calculated using an income approach which projects expected future cash flows and discounts them using a rate based on industry and market yields.

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 2012 Annual Report on Form 10-K.

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Condensed Consolidating Financial Statements

3 Months Ended

Mar. 31, 2013

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 March 31, 2013 and December 31, 2012 and the related consolidating statements of operations are presented for the three-month periods ended March 31, 2013 and 2012. Consolidating statements of cash flows are presented for the three-month periods ended March 31, 2013 and 2012. The equity method of accounting has been used by the Company to report its investment in subsidiaries.

Consolidating Balance Sheet

March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	31,868		$	—		$	447	$	—		$	32,315
Trade receivables, net of allowance for doubtful accounts		45,989			—			372		—			46,361
Prepaid expenses and other current assets		4,320			—			640		—			4,960
Total current assets		82,177			—			1,459		—			83,636
Property and equipment, net		57,454			—			2,588		—			60,042
Intangible assets subject to amortization, net		21,714			—			—		—			21,714
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		162,651			—			—		(162,651	)		—
Other assets		8,072			—			10,396		(10,396	)		8,072
Total assets	$	406,460		$	178,262		$	19,137	$	(173,047	)	$	430,812
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	200		$	—		$	—	$	—		$	200
Advances payable, related parties		118			—			—		—			118
Accounts payable and accrued expenses		38,117			—			747		(9,009	)		29,855
Total current liabilities		38,435			—			747		(9,009	)		30,173
Long-term debt, less current maturities		340,748			—			—		—			340,748
Other long-term liabilities		7,180			—			—		—			7,180
Deferred income taxes		14,429			34,001			—		(1,387	)		47,043
Total liabilities		400,792			34,001			747		(10,396	)		425,144
Stockholders’ equity (deficit)
Class A common stock		6			—			—		—			6
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		932,037			—			—		—			932,037
Accumulated deficit		(926,378	)		(660,393	)		5,738		654,655			(926,378	)
Total stockholders’ equity (deficit)		5,668			144,261			18,390		(162,651	)		5,668
Total liabilities and stockholders’ equity (deficit)	$	406,460		$	178,262		$	19,137	$	(173,047	)	$	430,812

Consolidating Balance Sheet

December 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	35,631		$	—		$	499	$	—		$	36,130
Trade receivables, net of allowance for doubtful accounts		47,779			—			251		—			48,030
Prepaid expenses and other current assets		3,778			—			467		—			4,245
Total current assets		87,188			—			1,217		—			88,405
Property and equipment, net		58,900			—			2,535		—			61,435
Intangible assets subject to amortization, net		22,349			—			—		—			22,349
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		164,355			—			—		(164,355	)		—
Other assets		8,514			—			10,603		(10,603	)		8,514
Total assets	$	415,698		$	178,262		$	19,049	$	(174,958	)	$	438,051
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	150		$	—		$	—	$	—		$	150
Advances payable, related parties		118			—			—		—			118
Accounts payable and accrued expenses		47,537			—			742		(9,121	)		39,158
Total current liabilities		47,805			—			742		(9,121	)		39,426
Long-term debt, less current maturities		340,664			—			—		—			340,664
Other long-term liabilities		7,359			—			—		—			7,359
Deferred income taxes		14,469			32,214			—		(1,482	)		45,201
Total liabilities		410,297			32,214			742		(10,603	)		432,650
Stockholders’ equity
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		930,814			—			—		—			930,814
Accumulated deficit		(925,421	)		(658,606	)		5,655		652,951			(925,421	)
Total stockholders’ equity		5,401			146,048			18,307		(164,355	)		5,401
Total liabilities and stockholders’ equity	$	415,698		$	178,262		$	19,049	$	(174,958	)	$	438,051

Consolidating Statement of Operations

Three-Month Period Ended March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	48,757		$	—		$	826		$	(496	)	$	49,087
Expenses:
Direct operating expenses		24,374			—			347			(496	)		24,225
Selling, general and administrative expenses		7,535			—			148			—			7,683
Corporate expenses		4,497			—			—			—			4,497
Depreciation and amortization		3,813			—			142			—			3,955
		40,219			—			637			(496	)		40,360
Operating income (loss)		8,538			—			189			—			8,727
Interest expense		(7,784	)		—			—			—			(7,784	)
Interest income		7			—			—			—			7
Income (loss) before income taxes		761			—			189			—			950
Income tax benefit (expense)		(14	)		(1,787	)		(106	)		—			(1,907	)
Income (loss) before equity in net income (loss) of subsidiaries		747			(1,787	)		83			—			(957	)
Equity in income (loss) of subsidiaries		(1,704	)		—			—			1,704			—
Net income (loss) applicable to common stockholders	$	(957	)	$	(1,787	)	$	83		$	1,704		$	(957	)

Consolidating Statement of Operations

Three-Month Period Ended March 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	45,949		$	—		$	846		$	(271	)	$	46,524
Expenses:
Direct operating expenses		21,520			—			385			(271	)		21,634
Selling, general and administrative expenses		9,245			—			127			—			9,372
Corporate expenses		3,881			—			—			—			3,881
Depreciation and amortization		4,161			—			186			—			4,347
		38,807			—			698			(271	)		39,234
Operating income (loss)		7,142			—			148			—			7,290
Interest expense		(9,100	)		—			—			—			(9,100	)
Interest income		4			—			—			—			4
Income (loss) before income taxes		(1,954	)		—			148			—			(1,806	)
Income tax benefit (expense)		(496	)		(1,010	)		(83	)		—			(1,589	)
Income (loss) before equity in net income (loss) of subsidiaries		(2,450	)		(1,010	)		65			—			(3,395	)
Equity in income (loss) of subsidiaries		(945	)		—			—			945			—
Net income (loss) applicable to common stockholders	$	(3,395	)	$	(1,010	)	$	65		$	945		$	(3,395	)

Consolidating Statement of Cash Flows

Three-Month Period Ended March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	(957	)	$	(1,787	)	$	83		$	1,704		$	(957	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		3,813			—			142			—			3,955
Deferred income taxes		(40	)		1,787			95			—			1,842
Amortization of debt issue costs		455			—			—			—			455
Amortization of syndication contracts		151			—			—			—			151
Payments on syndication contracts		(325	)		—			—			—			(325	)
Non-cash stock-based compensation		872			—			—			—			872
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		2,037			—			(121	)		—			1,916
(Increase) decrease in amounts due from related party		(112	)		—			112			—			—
(Increase) decrease in prepaid expenses and other assets		(655	)		—			(173	)		—			(828	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(8,697	)		—			5			—			(8,692	)
Net cash provided by (used in) operating activities		(3,458	)		—			143			1,704			(1,611	)
Cash flows from investing activities:
Investment in subsidiaries		1,704			—			—			(1,704	)		—
Purchases of property and equipment and intangibles		(2,360	)		—			(195	)		—			(2,555	)
Net cash provided by (used in) investing activities		(656	)		—			(195	)		(1,704	)		(2,555	)
Cash flows from financing activities:
Proceeds from issuance of common stock		351			—			—			—			351
Net cash provided by (used in) financing activities		351			—			—			—			351
Net increase (decrease) in cash and cash equivalents		(3,763	)		—			(52	)		—			(3,815	)
Cash and cash equivalents:
Beginning		35,631			—			499			—			36,130
Ending	$	31,868		$	—		$	447		$	—		$	32,315

Consolidating Statement of Cash Flows

Three-Month Period Ended March 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	(3,395	)	$	(1,010	)	$	65		$	945		$	(3,395	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		4,161			—			186			—			4,347
Deferred income taxes		96			1,010			—			—			1,106
Amortization of debt issue costs		563			—			—			—			563
Amortization of syndication contracts		193			—			—			—			193
Payments on syndication contracts		(467	)		—			—			—			(467	)
Non-cash stock-based compensation		261			—			—			—			261
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		3,466			—			(197	)		—			3,269
(Increase) decrease in amounts due from related party		(11	)		—			11			—			—
(Increase) decrease in prepaid expenses and other assets		(682	)		—			38			—			(644	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(11,504	)		—			(35	)		—			(11,539	)
Net cash provided by (used in) operating activities		(7,319	)		—			68			945			(6,306	)
Cash flows from investing activities:
Investment in subsidiaries		945			—			—			(945	)		—
Purchases of property and equipment and intangibles		(1,164	)		—			—			—			(1,164	)
Net cash provided by (used in) investing activities		(219	)		—			—			(945	)		(1,164	)
Cash flows from financing activities:
Payments of deferred debt and offering costs		(80	)		—			—			—			(80	)
Net cash provided by (used in) financing activities		(80	)		—			—			—			(80	)
Net increase (decrease) in cash and cash equivalents		(7,618	)		—			68			—			(7,550	)
Cash and cash equivalents:
Beginning		58,276			—			443			—			58,719
Ending	$	50,658		$	—		$	511		$	—		$	51,169

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Condensed Consolidating Financial Statements (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ (957)	$ (3,395)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,955	4,347
Deferred income taxes	1,842	1,106
Amortization of debt issue costs	455	563
Amortization of syndication contracts	151	193
Payments on syndication contracts	(325)	(467)
Non-cash stock-based compensation	872	261
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	1,916	3,269
(Increase) decrease in prepaid expenses and other assets	(828)	(644)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(8,692)	(11,539)
Net cash provided by (used in) operating activities	(1,611)	(6,306)
Cash flows from investing activities:
Purchases of property and equipment and intangibles	(2,555)	(1,164)
Net cash provided by (used in) investing activities	(2,555)	(1,164)
Cash flows from financing activities:
Payments of deferred debt and offering costs		(80)
Proceeds from issuance of common stock	351
Net cash provided by (used in) financing activities	351	(80)
Net increase (decrease) in cash and cash equivalents	(3,815)	(7,550)
Cash and cash equivalents:
Beginning	36,130	58,719
Ending	32,315	51,169
Parent [Member]
Cash flows from operating activities:
Net income (loss)	(957)	(3,395)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,813	4,161
Deferred income taxes	(40)	96
Amortization of debt issue costs	455	563
Amortization of syndication contracts	151	193
Payments on syndication contracts	(325)	(467)
Non-cash stock-based compensation	872	261
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	2,037	3,466
(Increase) decrease in amounts due from related party	(112)	(11)
(Increase) decrease in prepaid expenses and other assets	(655)	(682)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(8,697)	(11,504)
Net cash provided by (used in) operating activities	(3,458)	(7,319)
Cash flows from investing activities:
Investment in subsidiaries	1,704	945
Purchases of property and equipment and intangibles	(2,360)	(1,164)
Net cash provided by (used in) investing activities	(656)	(219)
Cash flows from financing activities:
Payments of deferred debt and offering costs		(80)
Proceeds from issuance of common stock	351
Net cash provided by (used in) financing activities	351	(80)
Net increase (decrease) in cash and cash equivalents	(3,763)	(7,618)
Cash and cash equivalents:
Beginning	35,631	58,276
Ending	31,868	50,658
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	(1,787)	(1,010)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income taxes	1,787	1,010
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	83	65
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	142	186
Deferred income taxes	95
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(121)	(197)
(Increase) decrease in amounts due from related party	112	11
(Increase) decrease in prepaid expenses and other assets	(173)	38
Increase (decrease) in accounts payable, accrued expenses and other liabilities	5	(35)
Net cash provided by (used in) operating activities	143	68
Cash flows from investing activities:
Purchases of property and equipment and intangibles	(195)
Net cash provided by (used in) investing activities	(195)
Cash flows from financing activities:
Net increase (decrease) in cash and cash equivalents	(52)	68
Cash and cash equivalents:
Beginning	499	443
Ending	447	511
Eliminations [Member]
Cash flows from operating activities:
Net income (loss)	1,704	945
Changes in assets and liabilities:
Net cash provided by (used in) operating activities	1,704	945
Cash flows from investing activities:
Investment in subsidiaries	(1,704)	(945)
Net cash provided by (used in) investing activities	$ (1,704)	$ (945)

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Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Separate financial data for each of the Company's operating segments
Net revenue	$ 49,087	$ 46,524
Percentage change in net revenue	6.00%
Direct operating expenses	24,225	21,634
Percentage change in direct operating expenses	12.00%
Selling, general and administrative expenses	7,683	9,372
Percentage change in selling, general and administrative expenses	(18.00%)
Depreciation and amortization	3,955	4,347
Percentage change in depreciation and amortization	(9.00%)
Segment operating profit (loss)	13,224	11,171
Percentage change in segment operating profit (loss)	18.00%
Corporate expenses	4,497	3,881
Percentage change in corporate expenses	16.00%
Operating income (loss)	8,727	7,290
Percentage change in operating income (loss)	20.00%
Interest expense	(7,784)	(9,100)
Percentage change in interest expense	(14.00%)
Interest income	7	4
Percentage change in interest income	75.00%
Income (loss) before income taxes	950	(1,806)
Percentage change in income (loss) before income taxes	(153.00%)
Capital expenditures	1,928	1,289
Total assets	430,812		438,051
Television [Member]
Separate financial data for each of the Company's operating segments
Net revenue	34,952	33,164
Percentage change in net revenue	5.00%
Direct operating expenses	14,988	13,221
Percentage change in direct operating expenses	13.00%
Selling, general and administrative expenses	3,926	5,314
Percentage change in selling, general and administrative expenses	(26.00%)
Depreciation and amortization	3,217	3,558
Percentage change in depreciation and amortization	(10.00%)
Segment operating profit (loss)	12,821	11,071
Percentage change in segment operating profit (loss)	16.00%
Capital expenditures	1,786	919
Total assets	309,914		313,904
Radio [Member]
Separate financial data for each of the Company's operating segments
Net revenue	14,135	13,360
Percentage change in net revenue	6.00%
Direct operating expenses	9,237	8,413
Percentage change in direct operating expenses	10.00%
Selling, general and administrative expenses	3,757	4,058
Percentage change in selling, general and administrative expenses	(7.00%)
Depreciation and amortization	738	789
Percentage change in depreciation and amortization	(6.00%)
Segment operating profit (loss)	403	100
Percentage change in segment operating profit (loss)	303.00%
Capital expenditures	142	370
Total assets	$ 120,898		$ 124,147

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Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Consolidating Financial Statements [Abstract]

Consolidating Balance Sheet

Consolidating Balance Sheet

March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	31,868		$	—		$	447	$	—		$	32,315
Trade receivables, net of allowance for doubtful accounts		45,989			—			372		—			46,361
Prepaid expenses and other current assets		4,320			—			640		—			4,960
Total current assets		82,177			—			1,459		—			83,636
Property and equipment, net		57,454			—			2,588		—			60,042
Intangible assets subject to amortization, net		21,714			—			—		—			21,714
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		162,651			—			—		(162,651	)		—
Other assets		8,072			—			10,396		(10,396	)		8,072
Total assets	$	406,460		$	178,262		$	19,137	$	(173,047	)	$	430,812
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	200		$	—		$	—	$	—		$	200
Advances payable, related parties		118			—			—		—			118
Accounts payable and accrued expenses		38,117			—			747		(9,009	)		29,855
Total current liabilities		38,435			—			747		(9,009	)		30,173
Long-term debt, less current maturities		340,748			—			—		—			340,748
Other long-term liabilities		7,180			—			—		—			7,180
Deferred income taxes		14,429			34,001			—		(1,387	)		47,043
Total liabilities		400,792			34,001			747		(10,396	)		425,144
Stockholders’ equity (deficit)
Class A common stock		6			—			—		—			6
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		932,037			—			—		—			932,037
Accumulated deficit		(926,378	)		(660,393	)		5,738		654,655			(926,378	)
Total stockholders’ equity (deficit)		5,668			144,261			18,390		(162,651	)		5,668
Total liabilities and stockholders’ equity (deficit)	$	406,460		$	178,262		$	19,137	$	(173,047	)	$	430,812

Consolidating Balance Sheet

December 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	35,631		$	—		$	499	$	—		$	36,130
Trade receivables, net of allowance for doubtful accounts		47,779			—			251		—			48,030
Prepaid expenses and other current assets		3,778			—			467		—			4,245
Total current assets		87,188			—			1,217		—			88,405
Property and equipment, net		58,900			—			2,535		—			61,435
Intangible assets subject to amortization, net		22,349			—			—		—			22,349
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		164,355			—			—		(164,355	)		—
Other assets		8,514			—			10,603		(10,603	)		8,514
Total assets	$	415,698		$	178,262		$	19,049	$	(174,958	)	$	438,051
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt	$	150		$	—		$	—	$	—		$	150
Advances payable, related parties		118			—			—		—			118
Accounts payable and accrued expenses		47,537			—			742		(9,121	)		39,158
Total current liabilities		47,805			—			742		(9,121	)		39,426
Long-term debt, less current maturities		340,664			—			—		—			340,664
Other long-term liabilities		7,359			—			—		—			7,359
Deferred income taxes		14,469			32,214			—		(1,482	)		45,201
Total liabilities		410,297			32,214			742		(10,603	)		432,650
Stockholders’ equity
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		930,814			—			—		—			930,814
Accumulated deficit		(925,421	)		(658,606	)		5,655		652,951			(925,421	)
Total stockholders’ equity		5,401			146,048			18,307		(164,355	)		5,401
Total liabilities and stockholders’ equity	$	415,698		$	178,262		$	19,049	$	(174,958	)	$	438,051

Consolidating Statement of Operations

Consolidating Statement of Operations

Three-Month Period Ended March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	48,757		$	—		$	826		$	(496	)	$	49,087
Expenses:
Direct operating expenses		24,374			—			347			(496	)		24,225
Selling, general and administrative expenses		7,535			—			148			—			7,683
Corporate expenses		4,497			—			—			—			4,497
Depreciation and amortization		3,813			—			142			—			3,955
		40,219			—			637			(496	)		40,360
Operating income (loss)		8,538			—			189			—			8,727
Interest expense		(7,784	)		—			—			—			(7,784	)
Interest income		7			—			—			—			7
Income (loss) before income taxes		761			—			189			—			950
Income tax benefit (expense)		(14	)		(1,787	)		(106	)		—			(1,907	)
Income (loss) before equity in net income (loss) of subsidiaries		747			(1,787	)		83			—			(957	)
Equity in income (loss) of subsidiaries		(1,704	)		—			—			1,704			—
Net income (loss) applicable to common stockholders	$	(957	)	$	(1,787	)	$	83		$	1,704		$	(957	)

Consolidating Statement of Operations

Three-Month Period Ended March 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	45,949		$	—		$	846		$	(271	)	$	46,524
Expenses:
Direct operating expenses		21,520			—			385			(271	)		21,634
Selling, general and administrative expenses		9,245			—			127			—			9,372
Corporate expenses		3,881			—			—			—			3,881
Depreciation and amortization		4,161			—			186			—			4,347
		38,807			—			698			(271	)		39,234
Operating income (loss)		7,142			—			148			—			7,290
Interest expense		(9,100	)		—			—			—			(9,100	)
Interest income		4			—			—			—			4
Income (loss) before income taxes		(1,954	)		—			148			—			(1,806	)
Income tax benefit (expense)		(496	)		(1,010	)		(83	)		—			(1,589	)
Income (loss) before equity in net income (loss) of subsidiaries		(2,450	)		(1,010	)		65			—			(3,395	)
Equity in income (loss) of subsidiaries		(945	)		—			—			945			—
Net income (loss) applicable to common stockholders	$	(3,395	)	$	(1,010	)	$	65		$	945		$	(3,395	)

Consolidating Statement of Cash Flows

Consolidating Statement of Cash Flows

Three-Month Period Ended March 31, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	(957	)	$	(1,787	)	$	83		$	1,704		$	(957	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		3,813			—			142			—			3,955
Deferred income taxes		(40	)		1,787			95			—			1,842
Amortization of debt issue costs		455			—			—			—			455
Amortization of syndication contracts		151			—			—			—			151
Payments on syndication contracts		(325	)		—			—			—			(325	)
Non-cash stock-based compensation		872			—			—			—			872
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		2,037			—			(121	)		—			1,916
(Increase) decrease in amounts due from related party		(112	)		—			112			—			—
(Increase) decrease in prepaid expenses and other assets		(655	)		—			(173	)		—			(828	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(8,697	)		—			5			—			(8,692	)
Net cash provided by (used in) operating activities		(3,458	)		—			143			1,704			(1,611	)
Cash flows from investing activities:
Investment in subsidiaries		1,704			—			—			(1,704	)		—
Purchases of property and equipment and intangibles		(2,360	)		—			(195	)		—			(2,555	)
Net cash provided by (used in) investing activities		(656	)		—			(195	)		(1,704	)		(2,555	)
Cash flows from financing activities:
Proceeds from issuance of common stock		351			—			—			—			351
Net cash provided by (used in) financing activities		351			—			—			—			351
Net increase (decrease) in cash and cash equivalents		(3,763	)		—			(52	)		—			(3,815	)
Cash and cash equivalents:
Beginning		35,631			—			499			—			36,130
Ending	$	31,868		$	—		$	447		$	—		$	32,315

Consolidating Statement of Cash Flows

Three-Month Period Ended March 31, 2012

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	(3,395	)	$	(1,010	)	$	65		$	945		$	(3,395	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		4,161			—			186			—			4,347
Deferred income taxes		96			1,010			—			—			1,106
Amortization of debt issue costs		563			—			—			—			563
Amortization of syndication contracts		193			—			—			—			193
Payments on syndication contracts		(467	)		—			—			—			(467	)
Non-cash stock-based compensation		261			—			—			—			261
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		3,466			—			(197	)		—			3,269
(Increase) decrease in amounts due from related party		(11	)		—			11			—			—
(Increase) decrease in prepaid expenses and other assets		(682	)		—			38			—			(644	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(11,504	)		—			(35	)		—			(11,539	)
Net cash provided by (used in) operating activities		(7,319	)		—			68			945			(6,306	)
Cash flows from investing activities:
Investment in subsidiaries		945			—			—			(945	)		—
Purchases of property and equipment and intangibles		(1,164	)		—			—			—			(1,164	)
Net cash provided by (used in) investing activities		(219	)		—			—			(945	)		(1,164	)
Cash flows from financing activities:
Payments of deferred debt and offering costs		(80	)		—			—			—			(80	)
Net cash provided by (used in) financing activities		(80	)		—			—			—			(80	)
Net increase (decrease) in cash and cash equivalents		(7,618	)		—			68			—			(7,550	)
Cash and cash equivalents:
Beginning		58,276			—			443			—			58,719
Ending	$	50,658		$	—		$	511		$	—		$	51,169

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The Company and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2013

The Company and Significant Accounting Policies [Abstract]

Fair value of stock option granted weighted-average assumptions

	Three-Month Period Ended March 31,
	2013
Fair value of options granted	$	1.49
Expected volatility		90	%
Risk-free interest rate		1.4	%
Expected lives		7.0 years
Dividend rate		—

Reconciliation of the basic and diluted income per share

	Three-Month Period Ended March 31,
	2013			2012
Basic and diluted earnings per share:
Numerator:
Net income (loss) applicable to common stockholders	$	(957	)	$	(3,395	)
Denominator:
Weighted average common shares outstanding		86,459,017			85,806,080
Per share:
Net income (loss) per share applicable to common stockholders	$	(0.01	)	$	(0.04	)

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2013

Segment Information [Abstract]

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

	Three-Month Period Ended March 31,						%  Change 2013 to 2012
	2013			2012
Net Revenue
Television	$	34,952		$	33,164			5	%
Radio		14,135			13,360			6	%
Consolidated		49,087			46,524			6	%
Direct operating expenses
Television		14,988			13,221			13	%
Radio		9,237			8,413			10	%
Consolidated		24,225			21,634			12	%
Selling, general and administrative expenses
Television		3,926			5,314			(26	)%
Radio		3,757			4,058			(7	)%
Consolidated		7,683			9,372			(18	)%
Depreciation and amortization
Television		3,217			3,558			(10	)%
Radio		738			789			(6	)%
Consolidated		3,955			4,347			(9	)%
Segment operating profit (loss)
Television		12,821			11,071			16	%
Radio		403			100			303	%
Consolidated		13,224			11,171			18	%
Corporate expenses		4,497			3,881			16	%
Operating income (loss)		8,727			7,290			20	%
Interest expense		(7,784	)		(9,100	)		(14	)%
Interest income		7			4			75	%
Income (loss) before income taxes	$	950		$	(1,806	)		(153	)%
Capital expenditures
Television	$	1,786		$	919
Radio		142			370
Consolidated	$	1,928		$	1,289

	March 31, 2013		December 31, 2012
Total assets
Television	$	309,914	$	313,904
Radio		120,898		124,147
Consolidated	$	430,812	$	438,051

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The Company and Significant Accounting Policies (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Stock-based compensation expense related to stock options is based on the fair value
Fair value of options granted	$ 1.49
Expected volatility	90.00%
Risk-free interest rate	1.40%
Expected lives	7 years
Dividend rate

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Condensed Consolidating Financial Statements (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Current assets
Cash and cash equivalents	$ 32,315	$ 36,130	$ 51,169	$ 58,719
Trade receivables, net of allowance for doubtful accounts	46,361	48,030
Prepaid expenses and other current assets	4,960	4,245
Total current assets	83,636	88,405
Property and equipment, net	60,042	61,435
Intangible assets subject to amortization, net	21,714	22,349
Intangible assets not subject to amortization	220,701	220,701
Goodwill	36,647	36,647
Other assets	8,072	8,514
Total assets	430,812	438,051
Current liabilities
Current maturities of long-term debt	200	150
Advances payable, related parties	118	118
Accounts payable and accrued expenses	29,855	39,158
Total current liabilities	30,173	39,426
Long-term debt, less current maturities	340,748	340,664
Other long-term liabilities	7,180	7,359
Deferred income taxes	47,043	45,201
Total liabilities	425,144	432,650
Stockholders' equity
Member's capital
Additional paid-in capital	932,037	930,814
Accumulated deficit	(926,378)	(925,421)
Total stockholders' equity	5,668	5,401
Total liabilities and stockholders' equity	430,812	438,051
Class A Common Stock [Member]
Stockholders' equity
Common stock	6	5
Class B Common Stock [Member]
Stockholders' equity
Common stock	2	2
Class U common stock [Member]
Stockholders' equity
Common stock	1	1
Parent [Member]
Current assets
Cash and cash equivalents	31,868	35,631	50,658	58,276
Trade receivables, net of allowance for doubtful accounts	45,989	47,779
Prepaid expenses and other current assets	4,320	3,778
Total current assets	82,177	87,188
Property and equipment, net	57,454	58,900
Intangible assets subject to amortization, net	21,714	22,349
Intangible assets not subject to amortization	38,739	38,739
Goodwill	35,653	35,653
Investment in subsidiaries	162,651	164,355
Other assets	8,072	8,514
Total assets	406,460	415,698
Current liabilities
Current maturities of long-term debt	200	150
Advances payable, related parties	118	118
Accounts payable and accrued expenses	38,117	47,537
Total current liabilities	38,435	47,805
Long-term debt, less current maturities	340,748	340,664
Other long-term liabilities	7,180	7,359
Deferred income taxes	14,429	14,469
Total liabilities	400,792	410,297
Stockholders' equity
Member's capital
Additional paid-in capital	932,037	930,814
Accumulated deficit	(926,378)	(925,421)
Total stockholders' equity	5,668	5,401
Total liabilities and stockholders' equity	406,460	415,698
Parent [Member] | Class A Common Stock [Member]
Stockholders' equity
Common stock	6	5
Parent [Member] | Class B Common Stock [Member]
Stockholders' equity
Common stock	2	2
Parent [Member] | Class U common stock [Member]
Stockholders' equity
Common stock	1	1
Guarantor Subsidiaries [Member]
Current assets
Intangible assets not subject to amortization	178,262	178,262
Total assets	178,262	178,262
Current liabilities
Deferred income taxes	34,001	32,214
Total liabilities	34,001	32,214
Stockholders' equity
Member's capital	804,654	804,654
Additional paid-in capital	(660,393)
Accumulated deficit		(658,606)
Total stockholders' equity	144,261	146,048
Total liabilities and stockholders' equity	178,262	178,262
Non-Guarantor Subsidiaries [Member]
Current assets
Cash and cash equivalents	447	499	511	443
Trade receivables, net of allowance for doubtful accounts	372	251
Prepaid expenses and other current assets	640	467
Total current assets	1,459	1,217
Property and equipment, net	2,588	2,535
Intangible assets not subject to amortization	3,700	3,700
Goodwill	994	994
Other assets	10,396	10,603
Total assets	19,137	19,049
Current liabilities
Accounts payable and accrued expenses	747	742
Total current liabilities	747	742
Total liabilities	747	742
Stockholders' equity
Member's capital	12,652	12,652
Additional paid-in capital	5,738
Accumulated deficit		5,655
Total stockholders' equity	18,390	18,307
Total liabilities and stockholders' equity	19,137	19,049
Eliminations [Member]
Current assets
Investment in subsidiaries	(162,651)	(164,355)
Other assets	(10,396)	(10,603)
Total assets	(173,047)	(174,958)
Current liabilities
Accounts payable and accrued expenses	(9,009)	(9,121)
Total current liabilities	(9,009)	(9,121)
Deferred income taxes	(1,387)	(1,482)
Total liabilities	(10,396)	(10,603)
Stockholders' equity
Member's capital	(817,306)	(817,306)
Additional paid-in capital	654,655
Accumulated deficit		652,951
Total stockholders' equity	(162,651)	(164,355)
Total liabilities and stockholders' equity	$ (173,047)	$ (174,958)

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Consolidated Statements of Operations (Parenthetical) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Direct operating expenses	$ 24,225	$ 21,634
Non-cash stock-based compensation	872	261
Depreciation and amortization	3,955	4,347
Direct Operating Expenses
Non-cash stock-based compensation	184	13
Depreciation and amortization	3,032	3,141
Selling, General and Administrative Expenses
Non-cash stock-based compensation	0	109
Depreciation and amortization	713	717
Corporate Expenses
Non-cash stock-based compensation	688	139
Depreciation and amortization	210	489
Related Parties
Direct operating expenses	2,293	2,244
Depreciation and amortization	$ 581	$ 893

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Litigation

3 Months Ended

Mar. 31, 2013

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.

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Segment Information (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2013 Segment	Mar. 31, 2012
Segment Information (Textual) [Abstract]
Number of reportable segments	2
Significant sources of revenue generated outside	$ 0	$ 0
Television [Member]
Segment Reporting Information [Line Items]
Number of stations owned	56
Radio [Member]
Segment Reporting Information [Line Items]
Number of stations owned	49