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