Entravision Communications Corporation Reports Third Quarter 2007 Results

Entravision Communications Corporation Reports Third Quarter 2007 Results

-Third Quarter 2007 Pro Forma Net Revenue Decreases 3%-

-Repurchases 4.8 Million Shares in the Third Quarter-

SANTA MONICA, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Entravision Communications Corporation (NYSE:EVC) today reported financial results for the three- and nine-month periods ended September 30, 2007. While net revenue decreased 5%, pro forma net revenue decreased 3% and free cash flow increased 25%.

Historical results, which are attached, are in thousands of U.S. dollars (except share and per share data). This press release contains certain non- GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each of these non-GAAP financial measures, and a table reconciling each of these non-GAAP financial measures to its most directly comparable GAAP financial measure, is included beginning on page 9. Unaudited financial highlights are as follows:

                                                    Three-Month Period                                                    Ended September 30,                                               2007          2006    % Change   Net revenue                                $74,289       $78,309    (5)%   Operating expenses (1)                      44,204        45,726    (3)%   Corporate expenses (2)                       4,033         4,617   (13)%    Consolidated adjusted EBITDA (3)            26,851        28,426    (6)%    Free cash flow (4)                         $15,482       $12,388    25 %   Free cash flow per share, basic and    diluted (4)                                 $0.15         $0.12    25 %    Net income (loss)                          $(1,377)        $(108)   NM    Net income (loss) per share applicable    to common stockholders, basic and    diluted                                    $(0.01)       $(0.00)   NM    Weighted average common shares    outstanding, basic                    102,516,344   105,069,157   Weighted average common shares    outstanding, diluted                  102,516,344   105,069,157                                                       Nine-Month Period                                                     Ended September 30,                                               2007          2006    % Change   Net revenue                               $214,261      $217,517    (1)%   Operating expenses (1)                     131,792       131,270     0 %   Corporate expenses (2)                      13,751        13,911    (1)%    Consolidated adjusted EBITDA (3)            71,123        74,436    (4)%    Free cash flow (4)                         $37,461       $29,172    28 %   Free cash flow per share, basic and    diluted (4)                                 $0.36         $0.27    33 %    Net income (loss)                           $3,934     $(155,987)   NM    Net income (loss) per share applicable    to common stockholders, basic and    diluted                                     $0.04        $(1.46)   NM    Weighted average common shares    outstanding, basic                    103,512,026   106,534,521   Weighted average common shares    outstanding, diluted                  104,206,434   106,534,521     (1) Operating expenses include direct operating, selling, general and       administrative expenses. Included in operating expenses are $0.2       million and $0.2 million of non-cash stock-based compensation for the       three-month periods ended September 30, 2007 and 2006, respectively       and $0.9 million and $0.9 million of non-cash stock-based compensation       for the nine-month periods ended September 30, 2007 and 2006,       respectively.  Operating expenses do not include corporate expenses,       depreciation and amortization, impairment loss and (gain) loss on sale       of assets.   (2) Corporate expenses include $0.4 million and $0.3 million of non-cash       stock-based compensation for the three-month periods ended September       30, 2007 and 2006, respectively and $1.4 million and $1.1 million of       non-cash stock-based compensation for the nine-month periods ended       September 30, 2007 and 2006, respectively.   (3) Consolidated adjusted EBITDA means operating income (loss) plus (gain)       loss on sale of assets, depreciation and amortization, non-cash       impairment loss, non-cash stock-based compensation included in       operating and corporate expenses, non-cash corporate expense, and       syndication programming amortization less syndication programming       payments. We use the term consolidated adjusted EBITDA because that       measure is defined in our syndicated bank credit facility and does not       include non-cash stock-based compensation, non-cash corporate expense,       non-cash impairment loss, (gain) loss on sale of assets and       syndication programming amortization and does include syndication       programming payments. The definition of operating income (loss), and       thus consolidated adjusted EBITDA, excludes equity in net earnings       (loss) of nonconsolidated affiliates. 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 of sales       of assets, non-cash depreciation and amortization, non-cash impairment       loss, non-cash stock-based compensation awards, non-cash corporate       expense 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.   (4) Free cash flow is defined as consolidated adjusted EBITDA less cash       paid for income taxes, net interest expense and capital expenditures.       Net interest expense is defined as interest expense, less non-cash       interest expense relating to amortization of debt finance costs, less       interest income less the change in the fair value of our interest rate       swaps. Free cash flow per share is defined as free cash flow divided       by the diluted weighted average common shares outstanding.    

Commenting on the Company's earnings results, Walter Ulloa, Chairman and Chief Executive Officer, said, "During the third quarter we continued to execute our strategy and build our audience shares in a challenging environment. We faced difficult comparisons due to the absence of certain major events, such as World Cup and political activity, that occurred in the prior year period, as well as some softness in the advertising market, but we benefited from our focus on cost controls. Looking ahead, we remain well positioned to capitalize on the continued growth of the Hispanic population."

The Company also announced today that it had repurchased 4.8 million shares of Class A common stock for approximately $42.5 million in the third quarter of 2007. The Company's Board of Directors had approved the repurchase of up to $100 million of its outstanding common stock on November 1, 2006. The Company has repurchased 6.5 million shares of Class A common stock for approximately $56 million since the inception of this stock repurchase plan.

   Financial Results     Three Months Ended September 30, 2007 Compared to Three Months Ended                             September 30, 2006                                (Unaudited)                                                  Three-Month Period                                                 Ended September 30,                                             2007          2006      %  Change   Net revenue                             $74,289       $78,309       (5)%   Operating expenses (1)                   44,204        45,726       (3)%   Corporate expenses (1)                    4,033         4,617      (13)%   Gain on sale of assets                        -        (1,408)      NM   Depreciation and amortization            11,530        11,406        1 %    Operating income                         14,522        17,968      (19)%   Interest expense, net                   (16,979)      (14,332)      18 %    Income (loss) before income taxes        (2,457)        3,636       NM    Income tax (expense) benefit                835        (3,837)      NM   Net loss before equity in net income    of nonconsolidated affiliates           (1,622)         (201)      NM   Equity in net income of    nonconsolidated affiliates                 245            93      163%    Net loss                                $(1,377)        $(108)      NM    (1) Operating expenses and corporate expenses are defined on page 1.    

Net revenue decreased to $74.3 million for the three-month period ended September 30, 2007 from $78.3 million for the three-month period ended September 30, 2006, a decrease of $4.0 million. Of the overall decrease, $3.3 million came from our radio segment. The decrease was primarily attributable to a decrease in net revenue of $1.7 million from our Tucson and Dallas radio stations that we sold and a decrease in third quarter revenue of $1.3 million associated with moving our annual Los Angeles promotional event from the third quarter to the second quarter in 2007. Additionally, $0.9 million of the overall decrease was from our television segment and was primarily attributable to a decrease in national advertising sales, primarily due to a decrease in advertising rates on a comparative basis, as well as strong 2006 third quarter non-recurring revenue from major events, such as World Cup and political activity. The overall decrease was partially offset by an increase of $0.2 million from our outdoor segment. The increase from this segment was primarily attributable to an increase in local advertising sales, partially offset by a decrease in national advertising sales.

Operating expenses decreased to $44.2 million for the three-month period ended September 30, 2007 from $45.7 million for the three-month period ended September 30, 2006, a decrease of $1.5 million. Of the overall decrease, $1.9 million came from our radio segment. The decrease was primarily attributable to a decrease in direct operating expenses from our Tucson and Dallas radio stations that we sold and a decrease in third quarter expenses associated with moving our annual Los Angeles promotional event from the third quarter to the second quarter in 2007. The overall decrease was partially offset by a $0.3 million increase in our outdoor segment and was primarily attributable to higher sales costs associated with local revenue and higher rent expense for our billboard locations. Additionally, $0.1 million of the overall increase came from our television operating segment. The increase from this segment was primarily attributable to an increase in wages, an increase in news costs related to the addition or expansion of our newscast operations and an increase in utility and rent expense related to digital television broadcasting, partially offset by a decrease in rating service expense.

Corporate expenses decreased to $4.0 million for the three-month period ended September 30, 2007 from $4.6 million for the three-month period ended September 30, 2006, a decrease of $0.6 million. The decrease was primarily attributable to a decrease in bonuses.

     Nine Months Ended September 30, 2007 Compared to Nine Months Ended                             September 30, 2006                                (Unaudited)                                                   Nine-Month Period                                                 Ended September 30,                                            2007          2006      %  Change   Net revenue                           $214,261       $217,517       (1)%   Operating expenses (1)                 131,792        131,270        0 %   Corporate expenses (1)                  13,751         13,911       (1)%   Gain on sale of assets                       -        (19,060)      NM   Depreciation and amortization           34,437         33,624        2 %   Impairment charge                            -        189,661       NM    Operating income (loss)                 34,281       (131,889)      NM   Interest expense, net                  (27,330)       (20,412)      34 %    Income (loss) before income taxes        6,951       (152,301)      NM    Income tax expense                      (3,422)        (3,666)      (7)%   Net income (loss) before equity in    net income (loss) of      nonconsolidated affiliates            3,529       (155,967)      NM   Equity in net income (loss) of    nonconsolidated affiliates                405            (20)      NM    Net income (loss)                       $3,934      $(155,987)      NM    (1) Operating expenses and corporate expenses are defined on page 1.    

Net revenue decreased to $214.3 million for the nine-month period ended September 30, 2007 from $217.5 million for the nine-month period ended September 30, 2006, a decrease of $3.2 million. Of the overall decrease, $2.3 million came from our radio segment. The decrease was primarily attributable to a decrease in net revenue of $5.3 million from our Tucson and Dallas radio stations that we sold, partially offset by an increase in local advertising sales. Additionally, $1.2 million of the overall decrease was from our television segment and was primarily attributable to a decrease in national advertising sales, primarily due to a decrease in advertising rates on a comparative basis, as well as strong 2006 non-recurring revenue from major events, such as World Cup and political activity. The overall decrease was partially offset by an increase of $0.3 million from our outdoor segment. The increase from this segment was primarily attributable to an increase in local advertising sales, partially offset by a decrease in national advertising sales.

Operating expenses increased to $131.8 million for the nine-month period ended September 30, 2007 from $131.3 million for the nine-month period ended September 30, 2006, an increase of $0.5 million. Of the overall increase, $1.6 million came from our television segment. The increase from this segment was primarily attributable to an increase in wages and an increase in utility and rent expense related to digital television broadcasting, partially offset by a decrease in rating service expense and a decrease in losses incurred by our TeleFutura stations under the marketing and sales agreement. Additionally, $1.1 million of the overall increase came from our outdoor segment and was primarily attributable to higher lease rents for our billboard locations and expenses associated with the expansion of our outdoor division in Tampa. The overall increase was partially offset by a $2.2 million decrease in our radio operating expenses. The decrease was primarily attributable to a decrease in direct operating expenses from our Tucson and Dallas radio stations that we sold, partially offset by an increase in wages.

Corporate expenses decreased to $13.8 million for the nine-month period ended September 30, 2007 from $13.9 million for the nine-month period ended September 30, 2006, a decrease of $0.1 million. The decrease was primarily attributable to a decrease in bonuses, partially offset by increased non-cash stock-based compensation, wages, and professional fees.

Pro Forma Segment Results

With the sale of the Company's radio assets in the Tucson and Dallas markets in the third and fourth quarters of 2006, respectively, the Company no longer has any remaining broadcasting operations in those two markets. As a result, in accordance with Company policy, the Company has elected to present its segment information on a pro forma basis by eliminating its radio broadcasting results from those two markets for the prior period so that the comparison between the periods will be meaningful. The Company believes that pro forma presentation is appropriate and useful to investors when the Company exits an entire market or enters a new market. This pro forma presentation consists of non-GAAP measures. A table reconciling each pro forma measure to its most directly comparable GAAP financial measure is included beginning on page 11.

The following is the Company's selected unaudited pro forma segment information for the third quarter of 2007 and 2006:

                                                   Three-Month Period                                                   Ended September 30,                                             2007         2006       % Change   Net Revenue       Television                           $39,917      $40,801       (2)%       Radio                                 24,184       25,764       (6)%       Outdoor                               10,188       10,002        2 %           Total                            $74,289      $76,567       (3)%    Operating Expenses (1)       Television                           $22,103      $21,974        1 %       Radio (2)                             13,835       14,549       (5)%       Outdoor                                8,266        8,006        3 %           Total                            $44,204      $44,529       (1)%    Corporate Expenses (1)                    $4,033       $4,617      (13)%    Consolidated adjusted EBITDA (1)         $26,851      $27,881       (4)%     (1) Operating expenses, Corporate expenses and Consolidated adjusted       EBITDA are defined on page 1.   (2) Radio pro forma operating expenses include only direct operating       expenses.  It does not include expense allocations for the centralized       radio network, programming, production and management of the market.     Segment Results   The following represents selected unaudited segment information:                                                     Three-Month Period                                                   Ended September 30,                                             2007         2006       % Change   Net Revenue       Television                           $39,917      $40,801       (2)%       Radio                                 24,184       27,506      (12)%       Outdoor                               10,188       10,002        2 %           Total                            $74,289      $78,309       (5)%    Operating Expenses (1)       Television                           $22,103      $21,974        1 %       Radio                                 13,835       15,746      (12)%       Outdoor                                8,266        8,006        3 %           Total                            $44,204      $45,726       (3)%    Corporate Expenses (1)                    $4,033       $4,617      (13)%    Consolidated adjusted EBITDA (1)         $26,851      $28,426       (6)%    (1) Operating expenses, Corporate expenses, and Consolidated adjusted       EBITDA are defined on page 1.     Guidance  

The following is the Company's guidance for the fourth quarter of 2007. Guidance constitutes a "forward-looking statement." Please see below regarding statements that are forward-looking.

With the sale of the Company's radio assets in the Dallas market in the fourth quarter of 2006, the Company no longer has any remaining broadcasting operations in that market. As a result, in accordance with Company policy, the Company has elected to present its guidance on a pro forma basis by eliminating net revenue of $444,000 from that market for the prior period so that the comparison between the periods will be meaningful.

Operating expenses and corporate expenses include non-cash stock-based compensation to comply with Statement of Financial Accounting Standards ("SFAS") No. 123 (Revised 2004), "Share-Based Payment" ("SFAS 123R"). The Company expects approximately $0.2 million in operating expenses and $0.4 million in corporate expenses related to equity compensation in the fourth quarter of 2007.

For the fourth quarter of 2007, the Company expects net revenues to decrease by low single digit percentages to flat and operating expenses to increase by low single digit percentages as compared to the fourth quarter of 2006. It should be noted that the Company has difficult revenue comparisons over the fourth quarter of 2006 due to $2.9 million of political revenue that, except for a small amount, is non-recurring in the fourth quarter of 2007. Excluding the incremental portion of political revenue, we expect net revenues to increase by low single digit percentages. Excluding non-cash stock-based compensation, corporate expenses are expected to be approximately flat as compared to the fourth quarter of 2006.

Entravision Communications Corporation will hold a conference call to discuss its 2007 third quarter results on November 1, 2007 at 5 p.m. Eastern Time. To access the conference call, please dial 212-231-2922 ten minutes prior to the start time. The call will be webcast live and archived for replay at www.entravision.com.

Entravision Communications Corporation is a diversified Spanish-language media company utilizing a combination of television, radio and outdoor operations to reach Hispanic consumers across the United States, as well as the border markets of Mexico. Entravision is the largest affiliate group of both the top-ranked Univision television network and Univision's TeleFutura network, with television stations in 20 of the nation's top 50 Hispanic markets. The company also operates one of the nation's largest groups of primarily Spanish-language radio stations, consisting of 47 owned and operated radio stations. The company's outdoor operations consist of approximately 10,400 advertising faces concentrated primarily in Los Angeles and New York. Entravision shares of Class A Common Stock are traded on The New York Stock Exchange under the symbol: EVC.

This press release contains certain forward-looking statements. These forward-looking statements, which are included in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this press release. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations, and the Company disclaims any duty to update any forward-looking statements made by the Company. From time to time, these risks, uncertainties and other factors are discussed in the Company's filings with the Securities and Exchange Commission.

                   Entravision Communications Corporation                   Consolidated Statements of Operations              (In thousands, except share and per share data)                                (Unaudited)                                Three-Month Period        Nine-Month Period                              Ended September 30,       Ended September 30,                               2007         2006         2007         2006   Net revenue (including    related parties of    $150, $150, $450 and    $450)                     $74,289      $78,309     $214,261     $217,517    Expenses:     Direct operating      expenses (including      related parties of      $3,203, $3,299, $9,132      and $9,336) (including      non-cash stock-based      compensation of $105,      $60, $356 and $179)      31,878       31,921       93,722       91,964     Selling, general and      administrative expenses      (including non-cash      stock-based compensation      of $135, $111, $535 and      $770)                    12,326       13,805       38,070       39,306     Corporate expenses      (including non-cash      stock-based compensation      of $397, $290,$1,415 and      $1,146)                   4,033        4,617       13,751       13,911     Gain on sale of assets         -       (1,408)           -      (19,060)     Depreciation and amortization      (includes direct operating      of $10,233, $10,224,      $30,641 and $29,934;      selling, general and      administrative of $1,078,      $966, $3,148 and $3,068;      and corporate of $219,      $215, $648 and $623)      (including related      parties of $580, $580,      $1,740 and $1,740)       11,530       11,406       34,437       33,624     Impairment charge            -            -            -        189,661                               59,767       60,341      179,980      349,406       Operating income (loss) 14,522       17,968       34,281     (131,889)   Interest expense (including    related parties of $58,    $73, $199 and $243)       (18,304)     (14,393)     (31,221)     (21,230)   Interest income              1,325           61        3,891          818       Income (loss) before        income taxes           (2,457)       3,636        6,951     (152,301)   Income tax (expense)    benefit                       835       (3,837)      (3,422)      (3,666)       Income (loss) before        equity in net income        (loss) of        nonconsolidated        affiliate              (1,622)        (201)       3,529     (155,967)   Equity in net income    (loss) of    nonconsolidated    affiliate (including    non-cash  stock-based    compensation of $0,    $(1), $3 and $88)             245           93          405          (20)   Net income (loss)    applicable to common    stockholders              $(1,377)       $(108)      $3,934    $(155,987)    Basic and diluted earnings    per share:   Net income (loss) per share    applicable to common    stockholders, basic and    diluted                    $(0.01)      $(0.00)       $0.04       $(1.46)    Weighted average common    shares outstanding,    basic                 102,516,344  105,069,157  103,512,026  106,534,521   Weighted average common    shares outstanding,    diluted               102,516,344  105,069,157  104,206,434  106,534,521                      Entravision Communications Corporation                   Consolidated Statements of Cash Flows              (In thousands, except share and per share data)                                (Unaudited)                                       Three-Month Period   Nine-Month Period                                      Ended September 30, Ended September 30,                                         2007     2006      2007      2006   Cash flows from operating    activities:    Net income (loss)                  $(1,377)   $(108)   $3,934  $(155,987)    Adjustments to reconcile net      income (loss) to net cash      provided by operating      activities:       Depreciation and amortization    11,530   11,406    34,437     33,624       Impairment charge                     -        -         -    189,661       Deferred income taxes            (1,336)   2,656     1,737         43       Amortization of debt issue costs    101      100       303        300       Amortization of syndication        contracts                          663       16     1,078         71       Payments on syndication contracts  (501)     (17)     (979)       (66)       Equity in net (income) loss of        nonconsolidated affiliate         (245)     (93)     (405)        20       Non-cash stock-based compensation   637      461     2,306      2,095       Gain on sale of media properties        and other assets                  (201)  (1,408)     (201)   (19,060)       Change in fair value of interest        rate swap agreements            10,263    6,288     7,467     (2,672)       Changes in assets and liabilities,        net of effect of acquisitions        and dispositions:         Increase in accounts          receivable                    (2,074)  (3,674)   (7,490)    (7,493)         (Increase) decrease in prepaid          expenses and other assets     (1,218)     326    (1,357)      (346)         Increase (decrease) in accounts          payable, accrued expenses and          other liabilities                177    1,870      (444)    (2,820)           Net cash provided by            operating activities        16,419   17,823    40,386     37,370   Cash flows from investing activities:     Proceeds from sale of property and      equipment and intangibles            183    4,750       242      4,763     Purchases of property and      equipment and intangibles         (4,351) (19,185)  (14,975)   (35,966)     Deposits on acquisitions                -      709         -        106     Proceeds from collection of note      receivable                             -        -         -      1,288           Net cash used in investing            activities                  (4,168) (13,726)  (14,733)   (29,809)   Cash flows from financing activities:     Proceeds from issuance of common      stock                              1,315      437     6,792      3,257     Payments on long-term debt         (1,276)  (7,326)   (2,420)   (18,969)     Repurchase of Class U common stock      -   (1,414)        -    (52,514)     Proceeds from borrowings on      long-term debt                         -    5,000         -     16,000     Excess tax benefits from exercise of      stock options                         97        2       573        109     Repurchase of Class A common      stock                            (42,605)     -     (45,445)       -           Net cash used in financing            activities                 (42,469)  (3,301)  (40,500)   (52,117)           Net increase (decrease) in            cash and cash equivalents  (30,218)     796   (14,847)   (44,556)   Cash and cash equivalents:     Beginning                         133,896   20,258   118,525     65,610     Ending                           $103,678  $21,054  $103,678    $21,054                      Entravision Communications Corporation  

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating

                                 Activities                         (Unaudited; in thousands)   

The most directly comparable GAAP financial measure is operating cash flow. A reconciliation of this non-GAAP measure to cash flows from operating activities for each of the periods presented is as follows:

                                      Three-Month Period   Nine-Month Period                                      Ended September 30, Ended September 30,                                        2007     2006       2007      2006   Consolidated adjusted EBITDA (1)   $26,851  $28,426    $71,123   $74,436    Interest expense                   (18,304) (14,393)   (31,221)  (21,230)   Interest income                      1,325       61      3,891       818   Income tax (expense) benefit           835   (3,837)    (3,422)   (3,666)   Amortization of syndication    contracts                            (663)     (16)    (1,078)      (71)   Payments on syndication contracts      501       17        979        66   Gain on sale of assets                   -    1,408          -    19,060   Non-cash stock-based compensation    included in direct operating    expenses                             (105)     (60)      (356)     (179)   Non-cash stock-based compensation    included in selling, general    and administrative expenses          (135)    (111)      (535)     (771)   Non-cash stock-based compensation    included in corporate expenses       (397)    (290)    (1,415)   (1,145)   Depreciation and amortization      (11,530) (11,406)   (34,437)  (33,624)   Impairment charge                        -        -          -  (189,661)   Net income (loss) before equity in    net income (loss) of    nonconsolidated affiliates         (1,622)    (201)     3,529  (155,967)   Equity in net income (loss) of    nonconsolidated affiliates            245       93        405       (20)   Net income (loss)                   (1,377)    (108)     3,934  (155,987)    Depreciation and amortization       11,530   11,406     34,437    33,624   Impairment charge                        -        -          -   189,661   Deferred income taxes               (1,336)   2,656      1,737        43   Amortization of debt issue costs       101      100        303       300   Amortization of syndication contracts  663       16      1,078        71   Payments on syndication contracts     (501)     (17)      (979)      (66)   Equity in net (income) loss of    nonconsolidated affiliate            (245)     (93)      (405)       20   Non-cash stock-based compensation      637      461      2,306     2,095   Gain on sale of media properties    and other assets                     (201)  (1,408)      (201)  (19,060)   Change in fair value of interest    rate swap agreements               10,263    6,288      7,467    (2,672)   Changes in assets and liabilities,    net of effect of acquisitions and    dispositions:      Increase in accounts receivable  (2,074)  (3,674)    (7,490)   (7,493)      (Increase) decrease in prepaid       expenses and other assets       (1,218)     326     (1,357)     (346)      Increase (decrease) in accounts       payable, accrued expenses and       other liabilities                  177    1,870       (444)   (2,820)   Cash flows from operating    activities                        $16,419  $17,823    $40,386   $37,370    (1) Consolidated adjusted EBITDA is defined on page 1.                     Entravision Communications Corporation           Reconciliation of Free Cash Flow to Net Income (Loss)                         (Unaudited; in thousands)   

The most directly comparable GAAP financial measure is net income (loss). A reconciliation of this non-GAAP measure to net income (loss) for each periods presented is as follows:

                                     Three-Month Period   Nine-Month Period                                     Ended September 30, Ended September 30,                                       2007     2006       2007      2006   Consolidated adjusted EBITDA (1)  $26,851  $28,426    $71,123    $74,436   Net interest expense (1)            6,615    7,944     19,560     22,784   Cash paid for income taxes            404    1,179      1,112      3,514   Capital expenditures (2)            4,350    6,915     12,990     18,966   Free cash flow (1)                 15,482   12,388     37,461     29,172    Capital expenditures (2)            4,350    6,915     12,990     18,966   Non-cash interest expense    relating to amortization of debt    finance costs and interest rate    swap agreements                  (10,364)  (6,388)    (7,770)     2,372   Non-cash income tax (expense)    benefit                            1,239   (2,658)    (2,310)      (152)   Amortization of syndication    contracts                           (663)     (16)    (1,078)       (71)   Payments on syndication contracts     501       17        979         66   Gain on sale of assets                  -    1,408          -     19,060   Non-cash stock-based compensation    included in direct operating    expenses                            (105)     (60)      (356)      (179)   Non-cash stock-based compensation    included in selling, general    and administrative expenses         (135)    (111)      (535)      (771)   Non-cash stock-based compensation    included in corporate expenses      (397)    (290)    (1,415)    (1,145)   Depreciation and amortization     (11,530) (11,406)   (34,437)   (33,624)   Impairment charge                       -        -          -   (189,661)   Net income (loss) before equity    in net income (loss) of    nonconsolidated affiliates        (1,622)    (201)     3,529   (155,967)   Equity in net income (loss) of    nonconsolidated affiliates           245       93        405        (20)   Net income (loss)                 $(1,377)   $(108)    $3,934  $(155,987)    (1) Consolidated adjusted EBITDA, net interest expense and free cash flow       are defined on page 1.   (2) Capital expenditures is not part of the consolidated statement of       operations.                      Entravision Communications Corporation                    Reconciliation of Pro Forma to GAAP                         (Unaudited; in thousands)   

The following table reconciles each of the pro forma measures used in this press release - radio net revenue, total net revenue, radio operating expenses, total operating expenses and consolidated adjusted EBITDA - to its respective GAAP financial measure. The reconciliation of consolidated adjusted EBITDA to net incomes is set forth above.

                                     Three-Month Period   Nine-Month Period                                      Ended September 30, Ended September 30,                                        2007     2006       2007      2006   Radio net revenue                   $24,184  $27,506   $70,537   $72,873   Less: Tucson and Dallas markets           -   (1,742)        -    (5,330)   Pro forma radio net revenue         $24,184  $25,764   $70,537   $67,543    Total net revenue                   $74,289  $78,309  $214,261  $217,517   Less: Tucson and Dallas markets           -   (1,742)        -    (5,330)   Pro forma total net revenue         $74,289  $76,567  $214,261  $212,187    Radio operating expenses (1)        $13,835  $15,746   $42,554   $44,710   Less: Tucson and Dallas markets           -   (1,197)        -    (3,651)   Pro forma radio operating    expenses (1)                       $13,835  $14,549   $42,554   $41,059    Total operating expenses (1)        $44,204  $45,726  $131,792  $131,270   Less: Tucson and Dallas markets           -   (1,197)        -    (3,651)   Pro forma total operating    expenses (1)                       $44,204  $44,529  $131,792  $127,619    Consolidated adjusted EBITDA (1)    $26,851  $28,426   $71,123   $74,436   Less: Tucson and Dallas markets           -     (545)        -    (1,679)   Pro forma Consolidated adjusted    EBITDA (1)                         $26,851  $27,881   $71,123   $72,757    (1) Operating expenses and consolidated adjusted EBITDA are defined on       page 1.  

Source: Entravision Communications Corporation

CONTACT: John DeLorenzo, Chief Financial Officer of Entravision
Communications Corporation, +1-310-447-3870; Mike Smargiassi or Dan Harris,
both of Brainerd Communicators, Inc., +1-212-986-6667

Web site: http://www.entravision.com/

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Profile: International Entertainment