Entravision Communications Corporation Reports Fourth Quarter and Year End 2007 Results

Entravision Communications Corporation Reports Fourth Quarter and Year End 2007 Results

-2007 Pro Forma Net Revenue Even with the Prior Year-

-Announces Sale of Outdoor Advertising Division for $100 million-

- Repurchases 7.2 Million Shares in 2007 -

SANTA MONICA, Calif., Feb. 28 /PRNewswire-FirstCall/ -- Entravision Communications Corporation (NYSE:EVC) today reported financial results for the three- and twelve-month periods ended December 31, 2007. While net revenue decreased 2%, pro forma net revenue was even with the prior year and free cash flow increased 20% for the year ended December 31, 2007.

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 Months Ended                                                         December 31,                                               2007          2006   % Change    Net revenue                               $62,514       $64,086    (2)%   Operating expenses (1)                     36,119        36,212    (0)%   Corporate expenses (2)                      4,668         4,623      1%    Consolidated adjusted EBITDA (3)           22,987        25,645   (10)%    Pro forma net revenue (4)                  62,514        63,642    (2)%    Free cash flow (5)                        $13,418       $13,240      1%   Free cash flow per share, basic and    diluted (5)                                $0.14         $0.13      8%    Net income (loss)                        $(47,988)      $21,388     NM    Net income (loss) per share    applicable to common stockholders,    basic and diluted                         $(0.49)        $0.20     NM    Weighted average common shares    outstanding, basic                    98,806,107   104,725,252   Weighted average common shares    outstanding, diluted                  98,806,107   104,812,441                                                       Twelve Months Ended                                                         December 31,                                               2007          2006    % Change   Net revenue                               $250,046      $255,134    (2)%   Operating expenses (1)                     143,875       144,566    (0)%   Corporate expenses (2)                      17,353        17,520    (1)%    Consolidated adjusted EBITDA (3)            94,110       100,081    (6)%    Pro forma net revenue (4)                  250,046       249,360      0%    Free cash flow (5)                         $50,879       $42,414     20%   Free cash flow per share, basic and    diluted (5)                                 $0.50         $0.40     25%    Net income (loss)                         $(44,054)    $(134,599)  (67)%    Net income (loss) per share    applicable to common stockholders,    basic and diluted                          $(0.43)       $(1.27)  (66)%    Weighted average common shares    outstanding, basic                    102,382,307   106,078,486   Weighted average common shares    outstanding, diluted                  102,382,307   106,078,486     (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 December 31, 2007 and 2006, respectively and       $1.1 million and $1.2 million of non-cash stock-based compensation for       the twelve-month periods ended December 31, 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 $0.5 million and $0.4 million of non-cash       stock-based compensation for the three-month periods ended December       31, 2007 and 2006, respectively and $1.9 million and $1.6 million of       non-cash stock-based compensation for the twelve-month periods ended       December 31, 2007 and 2006, respectively.    (3) Consolidated adjusted EBITDA means net 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, net interest expense,       income tax expense (benefit), equity in net income (loss) of       nonconsolidated affiliate 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, net interest expense, income tax       expense (benefit), equity in net income (loss) of nonconsolidated       affiliate and syndication programming amortization and does include       syndication programming payments. 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, net interest expense, income tax expense (benefit), equity in       net income (loss) of nonconsolidated affiliate 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) 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 segment       information on a pro forma basis by eliminating its radio broadcasting       results from that market for the prior period so that the results of       operations between the periods will be more directly comparable.  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.    (5) 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 fourth quarter we continued to execute our strategy and build our audience shares in a challenging environment. We faced difficult comps due to the absence of events that occurred in the prior year period, as well as continued softness in the advertising market. While our primary focus is on improving our operating performance, we have continued to review avenues to maximize our assets in the M&A market. The planned divestiture of our outdoor business and our pending acquisition of WNUE-FM in Orlando, reflect our strategy of building leading TV and radio clusters in the nation's fastest growing Hispanic markets. The proceeds of the Outdoor sale will expand our financial flexibility and strengthen our ability to implement our business plan as we review all options for putting our cash to work, including strategic acquisitions and potentially returning capital to shareholders. Looking ahead, we remain well-positioned to capitalize on the expanding purchasing power of the Hispanic consumer."

The Company also announced today that it repurchased 2.1 million shares of Class A common stock for approximately $15.5 million in the fourth quarter of 2007. The Company repurchased 7.2 million shares of Class A common stock for approximately $60.7 million in 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 a total of 10.6 million shares of Class A common stock for approximately $84.2 million since the inception of this stock repurchase plan. Additionally, in February 2008 the Company repurchased 1.5 million shares for approximately $10.4 million from Univision Communications, Inc.

Sale of Outdoor Division and Impairment of Outdoor Intangibles

The Company announced today that it has entered into a definitive agreement to sell its outdoor advertising division to Lamar Advertising Company for $100 million. The transaction, which is subject to customary closing requirements, is expected to close in the second quarter of 2008. Upon closing of the transaction, the Company will no longer have outdoor operations. In accordance with SFAS 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the Company reported the results of our outdoor operations in discontinued operations within the statements of operations. As part of the Company's annual impairment testing and decision to sell the outdoor segment, the Company recorded an $80.5 million impairment charge of outdoor intangible assets in the fourth quarter of 2007 that is included in discontinued operations.

   Financial Results    Cautionary Note Regarding Preliminary Quarterly Results  

In connection with the preparation of the our financial statements for the three and twelve-month periods ended December 31, 2007, we are currently in the process of finalizing discontinued operations and related income taxes. Accordingly, certain numbers presented herein are subject to change upon the conclusion of such assessment. Any change would only affect income tax (expense) benefit, net income (loss) before equity in net income (loss) of nonconsolidated affiliates, net income (loss) before discontinued operations, Income (loss from discontinued operations, net of tax and net income (loss), which does not affect operating income. We intend to complete the assessments described above in time to permit a timely filing of our annual report for the period ended December 31, 2007.

                    Three Months Ended December 31, 2007              Compared to Three Months Ended December 31, 2006                                (Unaudited)                                                  Three Months Ended                                                    December 31,                                               2007         2006    % Change   Net revenue                               $62,514      $64,086      (2)%   Operating expenses (1)                     36,119       36,212      (0)%   Corporate expenses (1)                      4,668        4,623        1%   Gain on sale of assets                        -         (7,099)      NM   Depreciation and amortization               5,572        5,265        6%    Operating income                           16,155       25,085     (36)%   Interest expense, net                     (17,266)      (7,417)     133%    Income (loss) before income taxes          (1,111)      17,668       NM    Income tax benefit                         21,507        1,393       NM   Net income before equity in net loss    of nonconsolidated affiliates and    discontinued operations                   20,396       19,061        7%   Equity in net loss of nonconsolidated    affiliates                                   (69)        (132)    (48)%    Net income before discontinued    operations                                20,327       18,929        7%   Income (loss) from discontinued    operations, net of tax                   (68,315)       2,459       NM    Net income (loss)                        $(47,988)     $21,388       NM     (1)  Operating expenses and corporate expenses are defined on page 1.   

Net revenue decreased to $62.5 million for the three-month period ended December 31, 2007 from $64.1 million for the three-month period ended December 31, 2006, a decrease of $1.6 million. Of the overall decrease, $0.9 million came 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, and a decrease in political revenue. Additionally, $0.7 million of the overall decrease came from our radio segment and was primarily attributable to a decrease in net revenue from our Tucson and Dallas radio stations that we sold in 2006.

Operating expenses decreased to $36.1 million for the three-month period ended December 31, 2007 from $36.2 million for the three-month period ended December 31, 2006, a decrease of $0.1 million. Of the overall decrease, $0.3 million came from our radio segment and was primarily attributable to a decrease in operating expenses from our Tucson and Dallas radio stations that we sold in 2006, partially offset by an increase in wages and bad debt expense. The overall decrease was partially offset by a $0.2 million increase in our television segment, which was primarily attributable to an increase in wages, bad debt expense and news costs related to the addition or expansion of our newscast operations, partially offset by a decrease in rating service expense.

Corporate expenses increased to $4.7 million for the three-month period ended December 31, 2007 from $4.6 million for the three-month period ended December 31, 2006, an increase of $0.1 million. The increase was primarily attributable to an increase in wages.

The Company recorded an $80.5 million impairment charge of outdoor intangible assets that is included in loss from discontinued operations.

                   Twelve Months Ended December 31, 2007             Compared to Twelve Months Ended December 31, 2006                                (Unaudited)                                                  Twelve Months Ended                                                    December 31,                                              2007            2006   % Change   Net revenue                              $250,046       $255,134    (2)%   Operating expenses (1)                    143,875        144,566    (0)%   Corporate expenses (1)                     17,353         17,520    (1)%   Gain on sale of assets                        -          (26,160)    NM   Depreciation and amortization              22,565         21,769      4%   Impairment charge                             -          189,661     NM    Operating income (loss)                    66,253        (92,222)    NM   Interest expense, net                     (44,596)       (27,829)    60%    Income (loss) before income taxes          21,657       (120,051)    NM    Income tax (expense) benefit               18,085         (2,273)    NM   Net income (loss) before equity in    net income (loss) of nonconsolidated    affiliates and discontinued    operations                                39,742       (122,324)    NM   Equity in net income (loss) of    nonconsolidated affiliates                   336           (152)    NM    Net income (loss) before discontinued    operations                                40,078       (122,476)    NM   Loss from discontinued operations,    net of tax                               (84,132)       (12,123)    NM    Net income (loss)                        $(44,054)     $(134,599)  (67)%     (1)  Operating expenses and corporate expenses are defined on page 1.   

Net revenue decreased to $250.0 million for the year ended December 31, 2007 from $255.1 million for the year ended December 31, 2006, a decrease of $5.1 million. Of the overall decrease, $3.0 million came from our radio segment and was primarily attributable to a decrease in net revenue from our Tucson and Dallas radio stations that we sold in 2006, partially offset by an increase in local advertising sales despite difficult World Cup comparisons. Additionally, $2.1 million of the overall decrease came from our television segment and was primarily attributable to a decrease in national advertising sales due to a decrease in advertising rates, as well as strong 2006 non- recurring revenue from major events, such as World Cup and political activity.

Operating expenses decreased to $143.9 million for the twelve-month period ended December 31, 2007 from $144.6 million for the twelve-month period ended December 31, 2006, a decrease of $0.7 million. Of the overall decrease, $2.5 million came from our radio segment and was primarily attributable to a decrease in operating expenses from our Tucson and Dallas radio stations that we sold in 2006, partially offset by an increase in wages and bad debt expense. The overall decrease was partially offset by a $1.8 million increase in our television operating expenses. The increase from this segment was primarily attributable to an increase in wages, bad debt expense and news costs related to the addition or expansion of our newscast operations, partially offset by a decrease in rating service expense.

Corporate expenses decreased to $17.4 million for the year ended December 31, 2007 from $17.5 million for the year ended December 31, 2006, a decrease of $0.1 million. The decrease was primarily attributable to a decrease in bonuses.

The Company recorded an $80.5 million impairment charge of outdoor intangible assets that is included in loss from discontinued operations.

Pro Forma Segment Results

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 segment information on a pro forma basis by eliminating its radio broadcasting results from that market for the prior period so that the results of operations between the periods will be more directly comparable. 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 fourth quarter of 2007 and 2006:

                                                   Three Months Ended                                                      December 31,                                              2007         2006      % Change   Net Revenue       Television                           $39,380      $40,291       (2)%       Radio                                 23,134       23,351       (1)%           Total                            $62,514      $63,642       (2)%    Operating Expenses (1)       Television                           $22,112      $21,879         1%       Radio (2)                             14,007       13,928         1%           Total                            $36,119      $35,807         1%    Corporate Expenses (1)                    $4,668       $4,623         1%    Consolidated adjusted EBITDA (1)         $22,987      $25,606      (10)%     (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 Months Ended                                                       December 31,                                              2007         2006      % Change   Net Revenue       Television                           $39,380      $40,291       (2)%       Radio                                 23,134       23,795       (3)%           Total                            $62,514      $64,086       (2)%    Operating Expenses (1)       Television                           $22,112      $21,879         1%       Radio                                 14,007       14,333       (2)%           Total                            $36,119      $36,212       (0)%    Corporate Expenses (1)                    $4,668       $4,623         1%    Consolidated adjusted EBITDA (1)         $22,987      $25,645      (10)%     (1) Operating expenses, Corporate expenses, and Consolidated adjusted       EBITDA are defined on page 1.     Guidance  

The following is the Company's guidance for the first quarter of 2008. Guidance constitutes a "forward-looking statement." Please see below regarding statements that are forward-looking.

For the first quarter of 2008, the Company expects net revenues to decrease by low- to mid-single digit percentages and operating expenses to increase by low-single digit percentages as compared to the first quarter of 2007. Excluding non-cash stock-based compensation, corporate expenses are expected to be approximately flat as compared to the first quarter of 2007.

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 first quarter of 2008.

Entravision Communications Corporation will hold a conference call to discuss its 2007 fourth quarter results on February 28, 2008 at 5 p.m. Eastern Time. To access the conference call, please dial 212-231-2939 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 and radio 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 48 owned and/or operated radio stations. 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       Twelve-Month Period                             Ended December 31,        Ended December 31,                              2007        2006         2007         2006      Net revenue (including    related parties of    $165, $150, $615 and    $600)                     $62,514      $64,086     $250,046     $255,134    Expenses:     Direct operating      expenses (including      related parties of       $3,048, $3,086,        $12,180 and        $12,422) (including        non-cash stock-based        compensation of        $75, $87, $431 and        $267)                  25,179       25,262       99,608       98,306     Selling, general and      administrative      expenses (including      non-cash stock-based      compensation of $143,      $142, $678 and $911)     10,940       10,950       44,267       46,260     Corporate expenses      (including non-cash      stock-based compensation      of $469, $431, $1,884      and $1,576)               4,668        4,623       17,353       17,520     Gain on sale of assets       -         (7,099)         -        (26,160)     Depreciation and      amortization      (includes direct       operating of       $4,362, $4,369, $17,700       and $17,288; selling,       general and       administrative       of $1,003, $1,013,       $4,007 and $3,975;       and corporate of       $207, $(117), $858 and       $506) (including       related parties of $580,       $580, $2,320 and $2,320) 5,572        5,265       22,565       21,769     Impairment charge            -            -            -        189,661                               46,359       39,001      183,793      347,356       Operating income        (loss)                 16,155       25,085       66,253      (92,222)   Interest expense    (including related    parties of $58, $73,    $257 and $315)            (18,184)      (8,201)     (49,405)     (29,431)   Interest income                918          784        4,809        1,602       Income (loss)        before income taxes    (1,111)      17,668       21,657     (120,051)   Income tax (expense)    benefit                    21,507        1,393       18,085       (2,273)       Income (loss)        before equity in        net income (loss)        of nonconsolidated        affiliate and        discontinued        operations             20,396       19,061       39,742     (122,324)   Equity in net income    (loss) of nonconsolidated    affiliate (including    non-cash stock-based    compensation of $0,    $1, $3 and $90)               (69)        (132)         336         (152)   Income (loss) before    discontinued    operations                 20,327       18,929       40,078     (122,476)       Loss from        discontinued        operations, net of        tax                   (68,315)       2,459      (84,132)     (12,123)   Net income (loss)    applicable to common    stockholders             $(47,988)     $21,388     $(44,054)   $(134,599)    Basic and diluted    earnings per share:   Net income (loss) per    share from continuing    operations applicable    to common stockholders      $0.21        $0.18        $0.39       $(1.15)   Net loss per share from    discontinued operations    $(0.69)       $0.02       $(0.82)      $(0.11)   Net income (loss) per    share applicable to    common stockholders,     basic and diluted         $(0.49)       $0.20       $(0.43)      $(1.27)     Weighted average common    shares outstanding,    basic                  98,806,107  104,725,252  102,382,307  106,078,486   Weighted average common    shares outstanding,    diluted                98,806,107  104,812,441  102,382,307  106,078,486                      Entravision Communications Corporation                   Consolidated Statements of Cash Flows              (In thousands, except share and per share data)                                (Unaudited)                                      Three-Month Period  Twelve-Month Period                                     Ended December 31,  Ended December 31,                                       2007      2006      2007      2006    Cash flows from operating    activities:     Net income (loss)               $(47,988)  $21,388  $(44,054) $(134,599)     Adjustments to reconcile net      income (loss) to net cash      provided by operating      activities:       Depreciation and amortization    5,572     5,265    22,565     21,769       Impairment charge                  -         -         -      189,661       Deferred income taxes          (20,365)   (8,921)  (18,628)    (8,882)       Amortization of debt issue        costs                             101       105       404        406       Amortization of syndication        contracts                         720        15     1,798         87       Payments on syndication        contracts                        (851)      (17)   (1,830)       (83)       Equity in net (income) loss        of nonconsolidated affiliate       69       132      (336)       152       Non-cash stock-based        compensation                      687       660     2,993      2,754       Gain on sale of media        properties and other assets       -      (7,099)      -      (26,160)       Change in fair value of        interest rate swap        agreements                     10,200       313    17,667     (2,359)       Changes in assets and        liabilities, net of effect        of acquisitions and        dispositions:         (Increase) decrease in          accounts receivable           3,098     6,681    (4,015)       482         Decrease in prepaid          expenses and other assets     1,327     1,103        84      1,390         Increase (decrease) in          accounts payable, accrued          expenses and other          liabilities                     121    (1,205)     (937)    (4,454)       Effect of discontinued        operations                     70,189     6,244    87,554     21,865           Net cash provided by            operating activities       22,880    24,664    63,265     62,029   Cash flows from investing    activities:     Proceeds from sale of property      and equipment and intangibles        17    91,504        37     96,242     Purchases of property and      equipment and intangibles       (12,687)   (4,196)  (26,177)   (38,545)     Deposits on acquisitions             -         -         -          106     Proceeds from collection of      note receivable                     -         -         -        1,288     Distribution from      nonconsolidated affiliate           250       -         250        -     Effect of discontinued      operations                         (347)     (412)   (1,610)    (2,001)           Net cash provided by            (used in) investing            activities                (12,767)   86,896   (27,500)    57,090   Cash flows from financing    activities:     Proceeds from issuance of      common stock                        561       503     7,353      3,760     Payments on long-term debt       (11,272)   (5,826)  (13,692)   (24,795)     Repurchase of Class U common      stock                               -         -         -      (52,514)     Repurchase of Class A common      stock                           (15,561)   (8,772)  (61,006)    (8,772)     Proceeds from borrowings on      long-term debt                      -         -         -       16,000     Excess tax benefits from      exercise of stock options          (573)        8       -          117           Net cash used in            financing activities      (26,845)  (14,087)  (67,345)   (66,204)           Net increase (decrease)            in cash and cash            equivalents               (16,732)   97,473   (31,580)    52,915   Cash and cash equivalents:     Beginning                        103,677    21,052   118,525     65,610     Ending                           $86,945  $118,525   $86,945   $118,525                      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 Twelve-Month Period                                     Ended December 31, Ended December 31,                                       2007     2006     2007      2006   Consolidated adjusted EBITDA (1)   $22,987  $25,645  $94,110  $100,081    Interest expense                   (18,184)  (8,201) (49,405)  (29,431)   Interest income                        918      784    4,809     1,602   Income tax (expense) benefit        21,507    1,393   18,085    (2,273)   Income tax benefit in discontinued    operations                         15,323    6,736   15,323     6,736   Amortization of syndication    contracts                            (720)     (15)  (1,798)      (87)   Payments on syndication contracts      851       17    1,830        83   Gain on sale of assets                   -    7,099        -    26,160   Non-cash expense included in    corporate expenses                      -     (213)       -      (213)   Non-cash stock-based compensation    included in direct operating    expenses                              (75)     (87)    (431)     (267)   Non-cash stock-based compensation    included in selling, general    and administrative expenses          (143)    (142)    (678)     (911)   Non-cash stock-based compensation    included in corporate expenses       (469)    (431)  (1,884)   (1,576)   Depreciation and amortization       (5,572)  (5,265) (22,565)  (21,769)   Depreciation and amortization in    discontinued operations            (3,892)  (5,800) (21,336)  (22,921)   Impairment charge                        -        -        -  (189,661)   Impairment charge in discontinued    operations                        (80,450)       -  (80,450)        -   Equity in net income (loss) of    nonconsolidated affiliates            (69)    (132)     336      (152)   Net income (loss)                  (47,988)  21,388  (44,054) (134,599)     Depreciation and amortization        5,572    5,265   22,565    21,769   Impairment charge                        -        -        -   189,661   Deferred income taxes              (20,365)  (8,921) (18,628)   (8,882)   Amortization of debt issue costs       101      105      404       406   Amortization of syndication    contracts                             720       15    1,798        87   Payments on syndication contracts     (851)     (17)  (1,830)      (83)   Equity in net (income) loss of    nonconsolidated affiliate              69      132     (336)      152   Non-cash stock-based compensation      687      660    2,993     2,754   Gain on sale of media properties    and other assets                        -   (7,099)       -   (26,160)   Change in fair value of interest    rate swap agreements               10,200      313   17,667    (2,359)   Changes in assets and liabilities,    net of effect of acquisitions and    dispositions:      (Increase) decrease in accounts       receivable                       3,098    6,681   (4,015)      482      Decrease in prepaid expenses       and other assets                 1,327    1,103       84     1,390      Increase (decrease) in accounts       payable, accrued expenses and       other liabilities                  121   (1,205)    (937)   (4,454)   Effect of discontinued operations   70,189    6,244   87,554    21,865   Cash flows from operating    activities                        $22,880  $24,664  $63,265   $62,029     (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   Twelve-Month Period                                    Ended December 31,   Ended December 31,                                       2007     2006      2007      2006   Consolidated adjusted EBITDA (1)   $22,987  $25,645   $94,110   $100,081   Net interest expense (1)             6,965    6,997    26,526     29,782   Cash paid for income taxes            (568)     785       543      4,298   Capital expenditures (2)             3,172    4,623    16,162     23,587   Free cash flow (1)                  13,418   13,240    50,879     42,414    Capital expenditures (2)             3,172    4,623    16,162     23,587   Non-cash interest (expense)    income relating to amortization    of debt finance costs and interest    rate swap agreements              (10,301)    (420)  (18,071)     1,953   Non-cash income tax benefit         36,262    8,914    33,952      8,761   Amortization of syndication    contracts                            (720)     (15)   (1,798)       (87)   Payments on syndication contracts      851       17     1,830         83   Gain on sale of assets                   -    7,099         -     26,160   Non-cash expense included in    corporate expenses                      -     (213)        -       (213)   Non-cash stock-based compensation    included in direct operating    expenses                              (75)     (87)     (431)      (267)   Non-cash stock-based compensation    included in selling, general    and administrative expenses          (143)    (142)     (678)      (911)   Non-cash stock-based compensation    included in corporate expenses       (469)    (431)   (1,884)    (1,576)   Depreciation and amortization       (5,572)  (5,265)  (22,565)   (21,769)   Depreciation and amortization in    discontinued operations            (3,892)  (5,800)  (21,336)   (22,921)   Impairment charge                        -        -         -   (189,661)   Impairment charge in discontinued    operations                        (80,450)       -   (80,450)         -   Equity in net income (loss) of    nonconsolidated affiliates            (69)    (132)      336       (152)   Net income (loss)                 $(47,988) $21,388  $(44,054) $(134,599)     (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 Twelve-Month Period                                      Ended December 31,  Ended December 31,                                        2007     2006      2007      2006   Radio net revenue                   $23,134  $23,795   $93,671   $96,668   Less: Tucson and Dallas markets           -     (444)        -    (5,774)   Pro forma radio net revenue         $23,134  $23,351   $93,671   $90,894    Total net revenue                   $62,514  $64,086  $250,046  $255,134   Less: Tucson and Dallas markets           -     (444)        -    (5,774)   Pro forma total net revenue         $62,514  $63,642  $250,046  $249,360    Radio operating expenses (1)        $14,007  $14,333   $56,561   $59,044   Less: Tucson and Dallas markets           -     (405)        -    (4,056)   Pro forma radio operating    expenses (1)                       $14,007  $13,928   $56,561   $54,988    Total operating expenses (1)        $36,119  $36,212  $143,875  $144,566   Less: Tucson and Dallas markets           -     (405)        -    (4,056)   Pro forma total operating    expenses (1)                       $36,119  $35,807  $143,875  $140,510    Consolidated adjusted EBITDA (1)    $22,987  $25,645   $94,110  $100,081   Less: Tucson and Dallas markets           -      (39)        -    (1,718)   Pro forma Consolidated adjusted    EBITDA (1)                         $22,987  $25,606   $94,110   $98,363     (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; or Mike Smargiassi or Joe
Kessler, both of Brainerd Communicators, Inc., +1-212-986-6667, for
Entravision Communications Corporation

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

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Profile: International Entertainment