Condensed Consolidating Financial Statements

6 Months Ended

Jun. 30, 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 June 30, 2013 and December 31, 2012 and the related consolidating statements of operations are presented for the three- and six-month periods ended June 30, 2013 and 2012. Consolidating statements of cash flows are presented for the six-month periods ended June 30, 2013 and 2012. The equity method of accounting has been used by the Company to report its investment in subsidiaries.

Consolidating Balance Sheet

June 30, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
ASSETS
Current assets
Cash and cash equivalents	$	40,748		$	—		$	318	$	—		$	41,066
Trade receivables, net of allowance for doubtful accounts		52,137			—			280		—			52,417
Prepaid expenses and other current assets		3,854			—			619		—			4,473
Total current assets		96,739			—			1,217		—			97,956
Property and equipment, net		56,478			—			2,692		—			59,170
Intangible assets subject to amortization, net		21,080			—			—		—			21,080
Intangible assets not subject to amortization		38,739			178,262			3,700		—			220,701
Goodwill		35,653			—			994		—			36,647
Investment in subsidiaries		160,895			—			—		(160,895	)		—
Other assets		13,002			—			10,496		(10,496	)		13,002
Total assets	$	422,586		$	178,262		$	19,099	$	(171,391	)	$	448,556
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		46,285			—			678		(9,139	)		37,824
Total current liabilities		46,603			—			678		(9,139	)		38,142
Long-term debt, less current maturities		340,835			—			—		—			340,835
Other long-term liabilities		6,934			—			—		—			6,934
Deferred income taxes		14,064			35,788			—		(1,357	)		48,495
Total liabilities		408,436			35,788			678		(10,496	)		434,406
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		935,446			—			—		—			935,446
Accumulated deficit		(921,305	)		(662,180	)		5,769		656,411			(921,305	)
Total stockholders’ equity (deficit)		14,150			142,474			18,421		(160,895	)		14,150
Total liabilities and stockholders’ equity (deficit)	$	422,586		$	178,262		$	19,099	$	(171,391	)	$	448,556

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 (deficit)
Class A common stock		5			—			—		—			5
Class B common stock		2			—			—		—			2
Class U common stock		1			—			—		—			1
Member’s capital		—			804,654			12,652		(817,306	)		—
Additional paid-in capital		930,814			—			—		—			930,814
Accumulated deficit		(925,421	)		(658,606	)		5,655		652,951			(925,421	)
Total stockholders’ equity (deficit)		5,401			146,048			18,307		(164,355	)		5,401
Total liabilities and stockholders’ equity (deficit)	$	415,698		$	178,262		$	19,049	$	(174,958	)	$	438,051

Consolidating Statement of Operations

Three-Month Period Ended June 30, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	56,669		$	—		$	841		$	(560	)	$	56,950
Expenses:
Direct operating expenses		26,072			—			476			(560	)		25,988
Selling, general and administrative expenses		7,255			—			169			—			7,424
Corporate expenses		4,736			—			—			—			4,736
Depreciation and amortization		3,692			—			128			—			3,820
		41,755			—			773			(560	)		41,968
Operating income (loss)		14,914			—			68			—			14,982
Interest expense		(7,881	)		—			—			—			(7,881	)
Interest income		9			—			—			—			9
Gain (loss) on debt extinguishment		(130	)		—			—			—			(130	)
Income (loss) before income taxes		6,912			—			68			—			6,980
Income tax (expense) benefit		(83	)		(1,787	)		(37	)		—			(1,907	)
Income (loss) before equity in net income (loss) of subsidiaries		6,829			(1,787	)		31			—			5,073
Equity in income (loss) of subsidiaries		(1,756	)		—			—			1,756			—
Net income (loss) applicable to common stockholders	$	5,073		$	(1,787	)	$	31		$	1,756		$	5,073

Consolidating Statement of Operations

Three-Month Period Ended June 30, 2012

(In thousands)

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

Consolidating Statement of Operations

Six-Month Period Ended June 30, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Net revenue	$	105,426		$	—		$	1,667		$	(1,056	)	$	106,037
Expenses:
Direct operating expenses		50,446			—			823			(1,056	)		50,213
Selling, general and administrative expenses		14,790			—			317			—			15,107
Corporate expenses		9,233			—			—			—			9,233
Depreciation and amortization		7,505			—			270			—			7,775
		81,974			—			1,410			(1,056	)		82,328
Operating income (loss)		23,452			—			257			—			23,709
Interest expense		(15,665	)		—			—			—			(15,665	)
Interest income		16			—			—			—			16
Gain (loss) on debt extinguishment		(130	)		—			—			—			(130	)
Income (loss) before income taxes		7,673			—			257			—			7,930
Income tax (expense) benefit		(97	)		(3,574	)		(143	)		—			(3,814	)
Income (loss) before equity in net income (loss) of subsidiaries		7,576			(3,574	)		114			—			4,116
Equity in income (loss) of subsidiaries		(3,460	)		—			—			3,460			—
Net income (loss) applicable to common stockholders	$	4,116		$	(3,574	)	$	114		$	3,460		$	4,116

Consolidating Statement of Operations

Six-Month Period Ended June 30, 2012

(In thousands)

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

Consolidating Statement of Cash Flows

Six-Month Period Ended June 30, 2013

(In thousands)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
Cash flows from operating activities:
Net income (loss)	$	4,116		$	(3,574	)	$	114		$	3,460		$	4,116
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		7,505			—			270			—			7,775
Deferred income taxes		(405	)		3,574			125			—			3,294
Amortization of debt issue costs		1,030			—			—			—			1,030
Amortization of syndication contracts		302			—			—			—			302
Payments on syndication contracts		(651	)		—			—			—			(651	)
Non-cash stock-based compensation		2,241			—			—			—			2,241
Other income (loss)		—			—			—			—			—
(Gain) loss on debt extinguishment		130			—			—			—			130
Changes in assets and liabilities, net of effect of acquisitions and dispositions:
(Increase) decrease in accounts receivable		(4,298	)		—			(29	)		—			(4,327	)
(Increase) decrease in amounts due from related party		18			—			(18	)		—			—
(Increase) decrease in prepaid expenses and other assets		(302	)		—			(152	)		—			(454	)
Increase (decrease) in accounts payable, accrued expenses and other liabilities		(573	)		—			(64	)		—			(637	)
Net cash provided by (used in) operating activities		9,113			—			246			3,460			12,819
Cash flows from investing activities:
Investment in subsidiaries		3,460			—			—			(3,460	)		—
Purchases of property and equipment and intangibles		(4,178	)		—			(427	)		—			(4,605	)
Net cash provided by (used in) investing activities		(718	)		—			(427	)		(3,460	)		(4,605	)
Cash flows from financing activities:
Proceeds from issuance of common stock		2,392			—			—			—			2,392
Payments on long-term debt		(50	)		—			—			—			(50	)
Payments of deferred debt and offering costs		(5,620	)		—			—			—			(5,620	)
Net cash provided by (used in) financing activities		(3,278	)		—			—			—			(3,278	)
Net increase (decrease) in cash and cash equivalents		5,117			—			(181	)		—			4,936
Cash and cash equivalents:
Beginning		35,631			—			499			—			36,130
Ending	$	40,748		$	—		$	318		$	—		$	41,066

Consolidating Statement of Cash Flows

Six-Month Period Ended June 30, 2012

(In thousands)

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