Entravision Communications Corporation Reports Second Quarter 2006 Results

Entravision Communications Corporation Reports Second Quarter 2006 Results

- Second Quarter 2006 Pro Forma Net Revenue and Pro Forma Consolidated Adjusted EBITDA Increase 8% and 15% Respectively -

- Company Announces Sale of Dallas Radio Assets for $95 Million -

SANTA MONICA, Calif., Aug. 3 /PRNewswire-FirstCall/ -- Entravision Communications Corporation (NYSE:EVC) today reported financial results for the three- and six-month periods ended June 30, 2006.

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 11. Unaudited financial highlights are as follows:

Three-Month Period
Ended June 30,

2006 2005 % Change

Net revenue $79,289 $75,109 6%
Operating expenses (1) 44,049 43,163 2%
Corporate expenses (2) 4,387 4,285 2%

Consolidated adjusted EBITDA (3) 31,018 27,781 12%

Free cash flow (4) $15,010 $13,829 9%
Free cash flow per share, basic and
diluted (4) $0.14 $0.11 27%

Net income (loss) $(167,998) $4,231 NM

Net income (loss) per share
applicable to common stockholders,
basic and diluted $(1.60) $0.03 NM

Weighted average common shares
outstanding, basic 105,080,809 124,268,627
Weighted average common shares
outstanding, diluted 105,080,809 124,454,771

Six-Month Period
Ended June 30,

2006 2005 % Change

Net revenue $139,208 $132,263 5%
Operating expenses (1) 85,544 83,174 3%
Corporate expenses (2) 9,294 8,653 7%

Consolidated adjusted EBITDA (3) 46,010 40,823 13%

Free cash flow (4) $16,785 $15,632 7%
Free cash flow per share, basic and
diluted (4) $0.16 $0.13 23%

Net income (loss) $(155,879) $(257) NM

Net income (loss) per share
applicable to common stockholders,
basic and diluted $(1.45) $(0.00) NM

Weighted average common shares
outstanding, basic 107,279,346 124,241,105
Weighted average common shares
outstanding, diluted 107,279,346 124,241,105

(1) Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $(56) thousand and $11 thousand of non-cash stock-based compensation for the three-month periods ended June 30, 2006 and 2005, respectively. Included in operating expenses are $778 thousand and $49 thousand of non-cash stock-based compensation for the six-month periods ended June 30, 2006 and 2005, respectively. Operating expenses do not include corporate expenses, depreciation and amortization, impairment loss and gain (loss) on sale of assets.

(2) Corporate expenses include $181 thousand and $89 thousand of non-cash stock-based compensation for the three-month periods ended June 30, 2006 and 2005, respectively. Corporate expenses include $856 thousand and $308 thousand of non-cash stock-based compensation for the six-month periods ended June 30, 2006 and 2005, respectively.

(3) Consolidated adjusted EBITDA means operating income (loss) plus loss (gain) on sale of assets, depreciation and amortization, non-cash impairment loss, non-cash stock-based compensation included in operating and corporate expenses 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 impairment loss, loss (gain) 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 on sale of assets, non-cash depreciation and amortization, non-cash impairment loss, non-cash stock-based compensation awards 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. The Company uses net interest expense instead of actual cash paid for interest in the free cash flow calculation so that quarterly results are comparable as the Company made two bond interest payments in 2005. 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, "We once again generated industry leading top- line growth across our businesses driven by our strong audience shares and our ability to capitalize on the launch of improved audience measurement tools and the broadcast of the 2006 World Cup on our television and radio stations. Our aggressive focus on sales and marketing is paying dividends as we improve our ability to monetize recent ratings gains, while our efficient operating structure ensures we convert this revenue into expanding cash flows. As we look at the second half of the year we are benefiting from positive operating momentum at all of our divisions and incremental revenue associated with the 2006 political elections. We will continue to seek opportunities to enhance our long-term growth potential by optimally positioning our assets within the fastest growing Hispanic markets to take advantage of the growing demand among audiences and advertisers for Spanish-language media."

Sale of Dallas Radio Assets

The Company announced today that it has entered into a definitive agreement to sell its Dallas radio stations to Liberman Broadcasting of Dallas, Inc. for $95 million. The stations include KTCY-FM, KZZA-FM, KZMP-FM, KZMP-AM and the recently acquired KBOC-FM. The sale, which is subject to regulatory approvals, is expected to close in the fourth quarter of 2006. Upon closing of the transaction, the Company will no longer have operations in the Dallas market.

Mr. Ulloa commented: "This transaction reflects our focus on maximizing the value of our assets and directing our resources towards building strong radio clusters and television duopolies. The proceeds will bolster our balance sheet and improve our financial flexibility. Going forward, we will continue to build leading positions in the fastest growing and highest density Hispanic markets where we can operate both television and radio assets, allowing us to efficiently manage our costs and leverage our operating footprint. At the same time, we will continually review our portfolio to ensure we are optimally positioned to capitalize on our operating strategy and enhance the value of our assets."

Impairment of Radio Segment Intangibles

The Company recorded an impairment charge of $189.7 million as a result of an appraisal recently conducted on the radio division.

Financial Results

Three Months Ended June 30, 2006 Compared to
Three Months Ended June 30, 2005 (Unaudited)

Three-Month Period
Ended June 30,

2006 2005 % Change

Net revenue $79,289 $75,109 6%
Operating expenses (1) 44,049 43,163 2%
Corporate expenses (1) 4,387 4,285 2%
Loss on sale of assets 1,656 - NM
Depreciation and amortization 11,195 11,620 (4)%
Impairment charge 189,661 - NM

Operating income (loss) (171,659) 16,041 NM
Interest expense, net (4,251) (8,322) (49)%

Income (loss) before income taxes (175,910) 7,719 NM

Income tax (expense) benefit 7,832 (3,453) NM
Net income (loss) before equity in net
income (loss) of nonconsolidated
affiliates (168,078) 4,266 NM
Equity in net income (loss) of
nonconsolidated affiliates 80 (35) NM

Net income (loss) $(167,998) $4,231 NM

(1) Operating expenses and corporate expenses are defined on page 1.

Net revenue increased to $79.3 million for the three-month period ended June 30, 2006 from $75.1 million for the three-month period ended June 30, 2005, an increase of $4.2 million. Excluding the net revenue contributed during the second quarter of 2005 by our radio stations in the San Francisco/San Jose market sold in the first quarter of 2006, net revenue would have increased by $6.1 million during the three-month period ended June 30, 2006. Of the overall increase, $4.6 million came from our television segment. The increase from this segment was primarily attributable to an increase in both local and national advertising sales, primarily attributable to an increase in advertising rates. Additionally, $0.6 million of the increase was from our outdoor segment, primarily attributable to revenue associated with the expansion of our outdoor division in Tampa, as well as an increase in local and national advertising sales. The overall increase was partially offset by a $1.0 million decrease in our radio net revenue. The decrease was primarily attributable to a decrease in net revenue of $1.9 million from our San Francisco/San Jose radio stations that we sold. Excluding the net revenue contributed during the second quarter of 2005 by our radio stations in the San Francisco/San Jose market that we sold in the first quarter of 2006, net revenue in our radio segment would have increased by $0.9 million during the three-month period ended June 30, 2006, primarily attributable to an increase in advertising rates.

Company operating expenses increased to $44.1 million for the three-month period ended June 30, 2006 from $43.2 million for the three-month period ended June 30, 2005, an increase of $0.9 million, or 2%. Excluding the operating expenses incurred during the second quarter of 2005 by our radio stations in the San Francisco/San Jose market that we sold in the first quarter of 2006, operating expenses would have increased $2.1 million, or 5%. Of the overall increase, $1.0 million came from our television segment. The increase from this segment was primarily attributable to an increase in national representation fees and other sales-related expenses associated with the increase in net revenue and an increase in salaries. Additionally, $0.5 million of the overall increase came from our outdoor segment and was primarily attributable to increased leasing expense and expenses associated with the expansion of our outdoor division in Tampa. The overall increase was partially offset by a $0.6 million decrease in our radio operating expenses. The decrease was primarily attributable to a decrease in operating expenses of $1.2 million from our San Francisco/San Jose radio stations that we sold. Excluding the operating expense contributed during the second quarter of 2005 by our radio stations in the San Francisco/San Jose market that we sold in the first quarter of 2006, operating expense in our radio segment would have increased by $0.6 million during the three-month period ended June 30, 2006, primarily attributable to an increase in promotional spending and legal expense.

Corporate expenses increased to $4.4 million for the three-month period ended June 30, 2006 from $4.3 million for the three-month period ended June 30, 2005, an increase of $0.1 million. The increase was primarily attributable to increased non-cash stock-based compensation of $0.1 million.

The Company recorded an impairment charge of $189.7 million as a result of an appraisal recently conducted on the radio division.

Six Months Ended June 30, 2006 Compared to
Six Months Ended June 30, 2005
(Unaudited)

Six-Month Period
Ended June 30,

2006 2005 % Change

Net revenue $139,208 $132,263 5%
Operating expenses (1) 85,544 83,174 3%
Corporate expenses (1) 9,294 8,653 7%
Gain on sale of assets (17,652) - NM
Depreciation and amortization 22,218 23,052 (4)%
Impairment charge 189,661 - NM

Operating income (loss) (149,857) 17,384 NM
Interest expense, net (6,080) (16,355) (63)%

Income (loss) before income taxes (155,937) 1,029 NM

Income tax (expense) benefit 171 (1,091) NM
Net loss before equity in net loss of
nonconsolidated affiliates (155,766) (62) NM
Equity in net loss of nonconsolidated
affiliates (113) (195) (42)%

Net loss $(155,879) $(257) NM

(1) Operating expenses and corporate expenses are defined on page 1.

Net revenue increased to $139.2 million for the six-month period ended June 30, 2006 from $132.3 million for the six-month period ended June 30, 2005, an increase of $6.9 million. Excluding the net revenue contributed during the first and second quarters of 2005 by our radio stations in the San Francisco/San Jose market that we sold in the first quarter of 2006, net revenue would have increased by $10.1 million during the six-month period ended June 30, 2006. Of the overall increase, $7.8 million came from our television segment. The increase from this segment was primarily attributable to an increase in both local and national advertising sales, primarily attributable to an increase in advertising rates. Additionally, $0.7 million of the increase was from our outdoor segment, primarily attributable to revenue associated with the expansion of our outdoor division in Tampa and Sacramento, as well as an increase in local and national advertising sales. The overall increase was partially offset by a $1.6 million decrease in our radio net revenue. The decrease was primarily attributable to a decrease in net revenue of $3.2 million from our San Francisco/San Jose radio stations that we sold. Excluding the net revenue contributed during the first and second quarters of 2005 by our radio stations in the San Francisco/San Jose market that we sold in the first quarter of 2006, net revenue in our radio segment would have increased by $1.6 million during the six-month period ended June 30, 2006, primarily attributable to an increase in advertising rates.

Company operating expenses increased to $85.5 million for the six-month period ended June 30, 2006 from $83.2 million for the six-month period ended June 30, 2005, an increase of $2.3 million, or 3%. Excluding the operating expenses incurred during the first and second quarters of 2005 by our radio stations in the San Francisco/San Jose market that we sold in the first quarter of 2006, operating expenses would have increased $4.6 million, or 6%. Excluding non-cash stock-based compensation of $0.8 million, operating expenses increased to $84.8 million for the six-month period ended June 30, 2006 from $80.9 million for the six-month period ended June 30, 2005, an increase of $3.9 million, or 5%. Of the overall increase, $2.5 million came from our television segment. The increase from this segment was primarily attributable to an increase in commissions and other sales-related expenses associated with the increase in net revenue, salaries and non-cash stock-based compensation. Additionally, $0.9 million of the overall increase came from our outdoor segment and was primarily attributable to increased leasing expense and expenses associated with the expansion of our outdoor division in Tampa and Sacramento. The overall increase was partially offset by a $1.1 million decrease in our radio operating expenses. The decrease was primarily attributable to a decrease in operating expenses of $2.3 million from our San Francisco/San Jose radio stations sold. Excluding the operating expense contributed during the first and second quarters of 2005 by our radio stations in the San Francisco/San Jose market that we sold in the first quarter of 2006, operating expense in our radio segment would have increased by $1.2 million during the six-month period ended June 30, 2006, primarily attributable to an increase in promotional spending and legal expense, as well as expenses associated with radio station KDLD-FM/KDLE-FM, which we began operating in the second quarter of 2005.

Corporate expenses increased to $9.3 million for the six-month period ended June 30, 2006 from $8.7 million for the six-month period ended June 30, 2005, an increase of $0.6 million. The increase was primarily attributable to increased non-cash stock-based compensation of $0.5 million. The remaining increase of $0.1 million was primarily attributable to increased rent and higher wages and expenses associated with our compliance with the Sarbanes- Oxley Act of 2002, including internal controls.

The Company recorded an impairment charge of $189.7 million as a result of an appraisal recently conducted on the radio division.

Pro Forma Segment Results

With the sale of the Company's radio assets in the San Francisco/San Jose market in the first 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 broadcasting results from that market 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. A table reconciling each 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 second quarter of 2006 and 2005:

Three-Month Period
Ended June 30,
2006 2005 % Change
Net Revenue
Television $43,336 $38,756 12%
Radio 26,211 25,263 4%
Outdoor 9,742 9,141 7%
Total $79,289 $73,160 8%

Operating Expenses (1)
Television $20,969 $20,016 5%
Radio 15,294 14,677 4%
Outdoor 7,786 7,251 7%
Total $44,049 $41,944 5%

Corporate Expenses (1) $4,387 $4,285 2%

Consolidated adjusted EBITDA (1) $31,018 $27,051 15%

(1) Operating expenses, corporate expenses and consolidated adjusted
EBITDA are defined on page 1.

Segment Results
The following represents selected unaudited segment information:

Three-Month Period
Ended June 30,
2006 2005 % Change
Net Revenue
Television $43,336 $38,756 12%
Radio 26,211 27,212 (4)%
Outdoor 9,742 9,141 7%
Total $79,289 $75,109 6%

Operating Expenses (1)
Television $20,969 $20,016 5%
Radio 15,294 15,896 (4)%
Outdoor 7,786 7,251 7%
Total $44,049 $43,163 2%

Corporate Expenses (1) $4,387 $4,285 2%

Consolidated adjusted EBITDA (1) $31,018 $27,781 12%

(1) Operating expenses, corporate expenses and consolidated adjusted
EBITDA are defined on page 1.

Guidance

The following is the Company's guidance for the third quarter of 2006. 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 San Francisco/San Jose market in the first 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 its broadcasting results from that market for the prior period so that the comparison between the periods will be meaningful. The amounts excluded from net revenue and operating expenses for the third quarter of 2005 were $1,824,000 and $1,250,000, respectively.

Beginning in 2006, corporate expenses include non-cash stock-based compensation to comply with Statement of Financial Accounting Standards ("SFAS") No. 123 (Revised 2005), "Share-Based Payment" ("SFAS 123R"). The Company expects approximately $200,000 in operating expenses and $300,000 in corporate expenses related to stock option compensation in the third quarter of 2006.

For the third quarter of 2006, the Company expects net revenues to increase by mid single digit percentages and operating expenses to increase by low to mid single digit percentages as compared to the third quarter of 2005. Excluding non-cash stock-based compensation, corporate expenses are expected to be flat compared to the third quarter of 2005.

The Company will hold a conference call to discuss its 2006 second quarter results on August 3, 2006 at 5 p.m. Eastern Time. To access the conference call, please dial 212-271-4604 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 approximately 75% of 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 52 owned and operated radio stations. The company's outdoor operations consist of approximately 10,700 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. 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 Six-Month Period
Ended June 30, Ended June 30,
2006 2005 2006 2005

Net revenue (including
related parties of
$150, $150, $300 and
$300) $79,289 $75,109 $139,208 $132,263

Expenses:
Direct operating
expenses (including
related parties of
$3,584, $3,038, $6,037
and $5,393) (including
non-cash stock-based
compensation of $60,
$0, $119 and $0) 31,386 30,577 60,043 57,882
Selling, general and
administrative
expenses (including
non-cash stock-based
compensation of
$(116), $11, $659 and
$49) 12,663 12,586 25,501 25,292
Corporate expenses
(including non-cash
stock-based
compensation of $181,
$89, $856 and $308) 4,387 4,285 9,294 8,653
(Gain) loss on sale
of assets 1,656 - (17,652) -
Depreciation and
amortization
(includes direct
operating of $9,943,
$10,218, $19,709 and
$20,210; selling,
general and
administrative of
$1,050, $1,172, $2,102
and $2,371; and
corporate of $200,
$230, $408 and $471)
(including related
parties of $39, $77,
$39 and $77) 11,195 11,620 22,218 23,052
Impairment charge 189,661 - 189,661 -
250,948 59,068 289,065 114,879

Operating income
(loss) (171,659) 16,041 (149,857) 17,384
Interest expense
(including related
parties of $83, $97,
$170 and $199) (4,344) (8,535) (6,837) (16,716)
Interest income 93 213 757 361
Income (loss)
before income
taxes (175,910) 7,719 (155,937) 1,029
Income tax (expense)
benefit 7,832 (3,453) 171 (1,091)
Income (loss)
before equity in
net income (loss)
of nonconsolidated
affiliate (168,078) 4,266 (155,766) (62)
Equity in net
income (loss) of
nonconsolidated
affiliate (including
non-cash stock-based
compensation of $(27),
$43, $89 and $78) 80 (35) (113) (195)
Net income (loss)
applicable to common
stockholders $(167,998) $4,231 $(155,879) $(257)

Basic and diluted
earnings per share:
Net income (loss) per
share applicable to
common stockholders,
basic and diluted $(1.60) $0.03 $(1.45) $(0.00)

Weighted average
common shares
outstanding, basic 105,080,809 124,268,627 107,279,346 124,241,105
Weighted average
common shares
outstanding, diluted 105,080,809 124,454,771 107,279,346 124,241,105

Entravision Communications Corporation
Consolidated Statements of Cash Flows
(In thousands, except share and per share data)
(Unaudited)

Three-Month Period Six-Month Period
Ended June 30, Ended June 30,
2006 2005 2006 2005

Cash flows from operating
activities:
Net income (loss) $(167,998) $4,231 $(155,879) $(257)
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and amortization 11,195 11,620 22,218 23,052
Impairment charge 189,661 - 189,661
Deferred income taxes (9,768) 3,071 (2,431) 219
Amortization of debt issue costs 100 598 200 1,196
Amortization of syndication
contracts 56 20 56 30
Payments on syndication
contracts (16) - (50) -
Equity in net (income) loss of
nonconsolidated affiliate (80) 35 113 195
Non-cash stock-based
compensation 125 100 1,635 357
(Gain) loss on sale of media
properties and other assets 1,656 - (17,661) -
Change in fair value of
interest rate swap agreements (3,586) - (8,960) -
Changes in assets and
liabilities, net of effect of
acquisitions and
dispositions:
Increase in accounts
receivable (15,496) (14,688) (3,820) (8,487)
(Increase) decrease in
prepaid expenses and other
assets (14) (66) (856) (1,769)
Increase (decrease) in
accounts payable, accrued
expenses and other
liabilities 1,740 6,166 (4,679) (514)
Net cash provided by
operating activities 7,575 11,087 19,547 14,022
Cash flows from investing
activities:
Proceeds from sale of property
and equipment and intangibles 10 28 13 37
Purchases of property and
equipment and intangibles (6,345) (19,041) (12,811) (27,166)
Deposits on acquisitions (58) - (4,573) -
Proceeds from collection of note
receivable - - 1,288 -
Net cash used in investing
activities (6,393) (19,013) (16,083) (27,129)
Cash flows from financing
activities:
Proceeds from issuance of common
stock 2,085 117 2,821 672
Payments on long-term debt (5,323) (1,031) (11,644) (1,063)
Repurchase of Class U common
stock - - (51,100) -
Proceeds from borrowings on
long-term debt 3,000 - 11,000 -
Excess tax benefits from
exercise of stock options 95 - 107 -
Net cash used in financing
activities (143) (914) (48,816) (391)
Net increase (decrease) in
cash and cash equivalents 1,039 (8,840) (45,352) (13,498)
Cash and cash equivalents:
Beginning 19,219 42,311 65,610 46,969
Ending $20,258 $33,471 $20,258 $33,471

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 Six-Month Period
Ended June 30, Ended June 30,
2006 2005 2006 2005

Consolidated adjusted EBITDA (1) $31,018 $27,781 $46,010 $40,823

Interest expense (4,344) (8,535) (6,837) (16,716)
Interest income 93 213 757 361
Income tax (expense) benefit 7,832 (3,453) 171 (1,091)
Amortization of syndication contracts (56) (20) (56) (30)
Payments on syndication contracts 16 - 50 -
Gain (loss) on sale of assets (1,656) - 17,652 -
Non-cash stock-based compensation
included in direct operating
expenses (60) - (119) -
Non-cash stock-based compensation
included in selling, general
and administrative expenses 116 (11) (659) (49)
Non-cash stock-based compensation
included in corporate expenses (181) (89) (856) (308)
Depreciation and amortization (11,195) (11,620) (22,218) (23,052)
Impairment charge (189,661) - (189,661) -
Net income (loss) before equity in
net income (loss) of
nonconsolidated affiliates (168,078) 4,266 (155,766) (62)
Equity in net income (loss) of
nonconsolidated affiliates 80 (35) (113) (195)
Net income (loss) (167,998) 4,231 (155,879) (257)

Depreciation and amortization 11,195 11,620 22,218 23,052
Impairment charge 189,661 - 189,661 -
Deferred income taxes (9,768) 3,071 (2,431) 219
Amortization of debt issue costs 100 598 200 1,196
Amortization of syndication contracts 56 20 56 30
Payments on syndication contracts (16) - (50) -
Equity in net (income) loss of
nonconsolidated affiliate (80) 35 113 195
Non-cash stock-based compensation 125 100 1,635 357
(Gain) loss on sale of media
properties and other assets 1,656 - (17,661) -
Change in fair value of interest
rate swap agreements (3,586) - (8,960) -
Changes in assets and liabilities,
net of effect of acquisitions and
dispositions:
Increase in accounts receivable (15,496) (14,688) (3,820) (8,487)
(Increase) decrease in prepaid
expenses and other assets (14) (66) (856) (1,769)
Increase (decrease) in accounts
payable, accrued expenses and
other liabilities 1,740 6,166 (4,679) (514)
Cash flows from operating activities $7,575 $11,087 $19,547 $14,022

(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 of the periods presented is as follows:

Three-Month Period Six-Month Period
Ended June 30, Ended June 30,
2006 2005 2006 2005

Consolidated adjusted EBITDA (1) $31,018 $27,781 $46,010 $40,823
Net interest expense (1) 7,736 7,724 14,839 15,159
Cash paid for income taxes 1,927 382 2,335 872
Capital expenditures (2) 6,345 5,846 12,051 9,160
Free cash flow (1) 15,010 13,829 16,785 15,632

Capital expenditures (2) 6,345 5,846 12,051 9,160
Non-cash interest expense relating
to amortization of debt
finance costs and interest rate
swap agreements 3,485 (598) 8,759 (1,196)
Non-cash income tax (expense)
benefit 9,759 (3,071) 2,506 (219)
Amortization of syndication
contracts (56) (20) (56) (30)
Payments on syndication contracts 16 - 50 -
Gain (loss) on sale of assets (1,656) - 17,652 -
Non-cash stock-based compensation
included in direct operating
expenses (60) - (119) -
Non-cash stock-based compensation
included in selling, general
and administrative expenses 116 (11) (659) (49)
Non-cash stock-based compensation
included in corporate expenses (181) (89) (856) (308)
Depreciation and amortization (11,195) (11,620) (22,218) (23,052)
Impairment charge (189,661) - (189,661) -
Net income (loss) before equity in
net income (loss) of
nonconsolidated affiliates (168,078) 4,266 (155,766) (62)
Equity in net income (loss) of
nonconsolidated affiliates 80 (35) (113) (195)
Net income (loss) $(167,998) $4,231 $(155,879) $(257)

(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 Net Revenue to Net Revenue
(In thousands)
(Unaudited)

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 income is set forth above.

Three-Month Period Six-Month Period
Ended June 30, Ended June 30,
2006 2005 2006 2005

Radio net revenue $26,211 $27,212 $45,367 $46,987
Less: San Francisco/San Jose market - (1,949) - (3,166)
Pro forma radio net revenue $26,211 $25,263 $45,367 $43,821

Total net revenue $79,289 $75,109 $139,208 $132,263
Less: San Francisco/San Jose market - (1,949) - (3,166)
Pro forma total net revenue $79,289 $73,160 $139,208 $129,097

Radio operating expenses (1) $15,294 $15,896 $28,964 $30,000
Less: San Francisco/San Jose market - (1,219) - (2,276)
Pro forma radio operating
expenses (1) $15,294 $14,677 $28,964 $27,724

Total operating expenses (1) $44,049 $43,163 $85,544 $83,174
Less: San Francisco/San Jose market - (1,219) - (2,276)
Pro forma total operating
expenses (1) $44,049 $41,944 $85,544 $80,898

Consolidated adjusted EBITDA (1) $31,018 $27,781 $46,010 $40,823
Less: San Francisco/San Jose market - (730) - (890)
Pro forma Consolidated adjusted
EBITDA (1) $31,018 $27,051 $46,010 $39,933

(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 Jonathan
Lesko of Brainerd Communicators, Inc., +1-212-986-6667, for Entravision
Communications Corporation

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

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