Entravision Communications Corporation Reports Fourth Quarter and Year-End 2006 Results

Entravision Communications Corporation Reports Fourth Quarter and Year-End 2006 Results

- Fourth Quarter 2006 Pro Forma Net Revenue and Pro Forma Consolidated Adjusted EBITDA Increase 6% and 9% Respectively

- Full Year 2006 Pro Forma Net Revenue and Pro Forma Consolidated Adjusted EBITDA Increase 8% and 13% Respectively

SANTA MONICA, Calif., Feb. 22 /PRNewswire-FirstCall/ -- Entravision Communications Corporation (NYSE:EVC) today reported financial results for the three- and twelve-month periods ended December 31, 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 9. Unaudited financial highlights are as follows:

Three Months Ended Twelve Months Ended
December 31, December 31,
% %
2006 2005 Change 2006 2005 Change

Net revenue $74,236 $73,164 1% $291,752 $280,964 4%
Operating expenses(1) 44,521 44,270 1% 175,791 172,040 2%
Corporate expenses(2) 4,941 4,520 9% 18,851 17,513 8%

Consolidated adjusted
EBITDA(3) 25,645 24,903 3% 100,081 92,473 8%

Free cash flow(4) $13,240 $11,628 14% $42,412 $40,129 6%
Free cash flow per
share, basic and
diluted(4) $0.13 $0.09 44% $0.40 $0.32 25%

Net income (loss) $21,388 $3,421 NM $(134,599) $(9,657) NM

Net income (loss)
per share applicable
to common
stockholders,
basic and diluted $0.20 $0.03 NM $(1.27) $(0.08) NM

Weighted average
common shares
outstanding,
basic 104,725,252 124,367,530 106,078,486 124,293,792
Weighted average
common shares
outstanding,
diluted 104,812,441 124,511,705 106,078,486 124,293,792

(1) Operating expenses include direct operating, selling, general and
administrative expenses. Included in operating expenses are $229
thousand and $146 thousand of non-cash stock-based compensation for
the three-month periods ended December 31, 2006 and 2005,
respectively. Included in operating expenses are $1.2 million and
$0.2 million of non-cash stock-based compensation for the twelve-
month periods ended December 31, 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 $431 thousand and $356 thousand of non-
cash stock-based compensation for the three-month periods ended
December 31, 2006 and 2005, respectively. Corporate expenses include
$1.6 million and $0.8 million of non-cash stock-based compensation
for the twelve-month periods ended December 31, 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, 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, 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
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. 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, "Our record results for the fourth quarter and full-year demonstrate the strength of our platform, our ability to capitalize on our audience shares and the dedication of all our employees. Once again we outpaced the general market, with strength across all three of our operating divisions as we benefited from the growth of the U.S. Hispanic consumer and the desire of local and national advertisers to target this expanding market. As we enter 2007 we are focused on our core strengths and the execution of our growth strategy. With a unique group of assets positioned in the most dynamic Hispanic growth markets in the U.S. and a sound balance sheet we remain well positioned to generate long-term value for our shareholders."

Financial Results

Three Months Ended December 31, 2006 Compared to Three Months Ended
December 31, 2005
(Unaudited)

Three Months Ended
December 31,
2006 2005 % Change

Net revenue $74,236 $73,164 1%
Operating expenses(1) 44,521 44,270 1%
Corporate expenses(1) 4,941 4,520 9%
Gain on sale of assets (7,099) - NM
Depreciation and amortization 11,065 11,589 (5)%

Operating income 20,808 12,785 63%
Interest expense, net (7,417) (4,932) 50%

Income before income taxes 13,391 7,853 71%

Income tax (expense) benefit 8,129 (4,485) NM
Net income before equity in net income
(loss) of nonconsolidated affiliates 21,520 3,368 NM
Equity in net income (loss) of
nonconsolidated affiliates (132) 53 NM

Net income $21,388 $3,421 NM

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

Net revenue increased to $74.2 million for the three-month period ended December 31, 2006 from $73.2 million for the three-month period ended December 31, 2005, an increase of $1.0 million. Excluding the 2006 and 2005 net revenue contributed by our radio stations in the San Francisco/San Jose, Tucson and Dallas markets that we sold in 2006, net revenue would have increased by $4.3 million during the three-month period ended December 31, 2006. Of the overall increase, $1.4 million came from our television segment. The increase from this segment was primarily attributable to an increase in local advertising sales from our Univision stations, primarily attributable to an increase in inventory sold. Additionally, $1.0 million of the overall increase was from our outdoor segment, primarily attributable to an increase in local advertising sales as well as revenue associated with the expansion of our outdoor division in Tampa. The overall increase was partially offset by a $1.4 million decrease in our radio net revenue. The decrease was primarily attributable to a decrease in net revenue of $3.3 million from our San Francisco/San Jose, Tucson and Dallas radio stations that we sold, partially offset by an increase in inventory sold.

Company operating expenses increased to $44.5 million for the three-month period ended December 31, 2006 from $44.3 million for the three-month period ended December 31, 2005, an increase of $0.2 million. Excluding the 2006 and 2005 operating expenses incurred by our radio stations in the San Francisco/San Jose, Tucson and Dallas markets that we sold in 2006, direct operating expenses would have increased by $2.2 million during the three-month period ended December 31, 2006. Of the overall increase, $0.7 million came from our television segment. The increase from this segment was primarily attributable to an increase in sales expenses associated with the increase in net revenue and an increase in utility and rent expense related to digital television, partially offset by reduced expenses in accordance with the terms of an amendment to our marketing and sales agreement with Univision. Additionally, $0.8 million of the overall increase came from our outdoor segment and was primarily attributable to an increase in sales expenses associated with the increase in net revenue, 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 $1.3 million decrease in our radio direct operating expenses. The decrease was primarily attributable to a decrease in operating expenses from our San Francisco/San Jose, Tucson and Dallas radio stations that we sold in 2006, partially offset by an increase in commissions and other sales-related expenses associated with the increase in net revenue.

Corporate expenses increased to $4.9 million for the three-month period ended December 31, 2006 from $4.5 million for the three-month period ended December 31, 2005, an increase of $0.4 million. The increase was primarily attributable to increased professional fees, wages and non-cash stock-based compensation.

Twelve Months Ended December 31, 2006 Compared to Twelve Months Ended
December 31, 2005
(Unaudited)

Twelve Months Ended
December 31,
2006 2005 % Change

Net revenue $291,752 $280,964 4%
Operating expenses(1) 175,791 172,040 2%
Corporate expenses(1) 18,851 17,513 8%
Gain on sale of assets (26,160) - NM
Depreciation and amortization 44,690 46,411 (4)%
Impairment charge 189,661 - NM

Operating income (loss) (111,081) 45,000 NM
Interest expense, net (27,829) (28,882) (4)%
Loss on debt extinguishment - (27,969) NM

Loss before income taxes (138,910) (11,851) NM

Income tax benefit 4,463 2,338 91%
Net loss before equity in net loss of
nonconsolidated affiliates (134,447) (9,513) NM
Equity in net loss of nonconsolidated
affiliates (152) (144) 6%

Net loss $(134,599) $(9,657) NM

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

Net revenue increased to $291.8 million for the year ended December 31, 2006 from $281.0 million for the year ended December 31, 2005, an increase of $10.8 million. Excluding the 2006 and 2005 net revenue contributed by our radio stations in the San Francisco/San Jose, Tucson and Dallas markets that we sold in 2006, net revenue would have increased by $20.5 million during the year ended December 31, 2006. Of the overall increase, $12.3 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, partially attributable to World Cup and political advertising. Additionally, $2.4 million of the overall 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 advertising sales. The overall increase was partially offset by a $3.9 million decrease in our radio net revenue. The decrease was primarily attributable to a decrease in net revenue of $9.7 million from our San Francisco/San Jose, Tucson and Dallas radio stations that we sold, partially offset by an increase in inventory sold and advertising rates.

Company operating expenses increased to $175.8 million for the year ended December 31, 2006 from $172.0 million for the year ended December 31, 2005, an increase of $3.8 million. Excluding the 2006 and 2005 operating expenses incurred by our radio stations in the San Francisco/San Jose, Tucson and Dallas markets that we sold in 2006, direct operating expenses would have increased by $9.6 million during the year ended December 31, 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 national representation fees and other sales expenses associated with the increase in net revenue, an increase in utility and rent expense related to digital television and an increase in syndicated programming expense, partially offset by reduced expenses in accordance with the terms of an amendment to our marketing and sales agreement with Univision. Additionally, $2.2 million of the overall increase came from our outdoor segment and was primarily attributable to an increase in sales expenses associated with the increase in net revenue, higher lease rents for our billboard locations and expenses associated with the expansion of our outdoor division in Tampa and Sacramento. The overall increase was partially offset by a $3.0 million decrease in our radio direct operating expenses. The decrease was primarily attributable to a decrease in direct operating expenses from our San Francisco/San Jose, Tucson and Dallas radio stations that we sold, partially offset by an increase in commissions and other sales-related expenses associated with the increase in net revenue.

Corporate expenses increased to $18.9 million for the year ended December 31, 2006 from $17.5 million for the year ended December 31, 2005, an increase of $1.4 million. The increase was primarily attributable to increased non-cash stock-based compensation of $0.8 million. The remaining increase was primarily attributable to increased professional fees and wages.

On November 1, 2006, the Company's Board of Directors approved the repurchase of up to $100.0 million of its outstanding common stock. To date, the company has repurchased approximately 1.5 million shares at an average price of $7.50 for an aggregate purchase price of $11.3 million plus transaction fees.

Pro Forma Segment Results

With the sale of the Company's radio assets in San Francisco/San Jose, Tucson and Dallas markets in the first, third and fourth quarters of 2006, respectively, the Company no longer has any remaining broadcasting operations in those three 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 broadcasting results from those three markets for the prior period and current 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 pro forma measure to its most directly comparable GAAP financial measure is included beginning on page 9.

The following is the Company's selected unaudited pro forma segment information for the fourth quarter of 2006 and 2005:

Three Months Ended
December 31,
2006 2005 % Change
Net Revenue
Television $40,291 $38,833 4%
Radio 23,351 21,509 9%
Outdoor 10,150 9,099 12%
Total $73,792 $69,441 6%

Operating Expenses(1)
Television $21,879 $21,154 3%
Radio $13,928 13,259 5%
Outdoor 8,309 7,523 10%
Total $44,116 $41,936 5%

Corporate Expenses(1) $4,941 $4,520 9%

Consolidated adjusted EBITDA(1) $25,606 $23,514 9%

(1) Operating expenses, Corporate expenses and Consolidated adjusted
EBITDA are defined on page 1.

Segment Results
The following represents selected unaudited segment information:

Three Months Ended
December 31,
2006 2005 % Change
Net Revenue
Television $40,291 $38,833 4%
Radio 23,795 25,232 (6)%
Outdoor 10,150 9,099 12%
Total $74,236 $73,164 1%

Operating Expenses(1)
Television $21,879 $21,154 3%
Radio 14,333 15,593 (8)%
Outdoor 8,309 7,523 10%
Total $44,521 $44,270 1%

Corporate Expenses(1) $4,941 $4,520 9%

Consolidated adjusted EBITDA(1) $25,645 $24,903 3%

(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 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 Tucson and Dallas markets in the third and fourth quarter 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 guidance on a pro forma basis by eliminating its broadcasting results from those markets 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 first quarter of 2006 were $1,470,000 and $1,224,000, respectively.

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 $0.4 million in operating expenses and $0.6 million in corporate expenses related to equity compensation in the first quarter of 2007.

For the first quarter of 2007, the Company expects net revenues to increase by high single digit percentages and operating expenses to increase by mid single digit percentages as compared to the first quarter of 2006. Excluding the non-cash stock-based compensation, corporate expenses are expected to increase by low single digit percentages as compared to the first quarter of 2006.

Entravision Communications Corporation will hold a conference call to discuss its 2006 fourth quarter and full year results on February 22, 2007 at 5 p.m. Eastern Time. To access the conference call, please dial 212-346-6553 ten minutes prior to the start time. The call will be webcast live and archived for replay at http://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 10,600 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 Twelve-Month Period
Ended December 31, Ended December 31,
2006 2005 2006 2005
Net revenue (including
related parties of $150,
$155, $600 and $605) $74,236 $73,164 $291,752 $280,964

Expenses:
Direct operating expenses
(including related parties
of $3,086, $2,729, $12,422
and $11,514) (including
non-cash stock-based
compensation of $87, $0,
$267 and $0) 31,835 31,160 123,798 120,285
Selling, general and
administrative expenses
(including non-cash
stock-based compensation
of $142, $146, $911
and $229) 12,686 13,110 51,993 51,755
Corporate expenses
(including non-cash
stock-based compensation
of $431, $356, $1,576
and $768) 4,941 4,520 18,851 17,513
Gain on sale of assets (7,099) - (26,160) -
Depreciation and
amortization (includes
direct operating of
$10,118, $10,357, $40,052
and $41,104; selling,
general and administrative
of $1,064, $1,020, $4,132
and $4,406; and corporate
of $(117), $212, $506 and
$905) (including related
parties of $580, $580,
$2,320 and $2,320) 11,065 11,589 44,690 46,411
Impairment charge - - 189,661 -
53,428 60,379 402,833 235,964
Operating income (loss) 20,808 12,785 (111,081) 45,000
Interest expense (including
related parties of $73, $87,
$315 and $373) (8,201) (5,336) (29,431) (29,848)
Interest income 784 404 1,602 966
Loss on debt extinguishment - - - (27,969)
Income (loss) before
income taxes 13,391 7,853 (138,910) (11,851)
Income tax (expense) benefit 8,129 (4,485) 4,463 2,338
Income (loss) before
equity in net income
(loss) of
nonconsolidated
affiliate 21,520 3,368 (134,447) (9,513)
Equity in net income (loss)
of nonconsolidated affiliate
(including non-cash stock-
based compensation of $1,
$102, $90 and $224) (132) 53 (152) (144)
Net income (loss) applicable
to common stockholders $21,388 $3,421 $(134,599) $(9,657)

Basic and diluted earnings
per share:
Net income (loss) per share,
applicable to common
stockholders, basic and
diluted $0.20 $0.03 $(1.27) $(0.08)
Basic weighted average
common shares
outstanding 104,725,252 124,367,530 106,078,486 124,293,792
Diluted weighted
average common shares
outstanding 104,812,441 124,511,705 106,078,486 124,293,792

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,
2006 2005 2006 2005
Cash flows from operating
activities:
Net income (loss) $21,388 $3,421 $(134,599) $(9,657)
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and amortization 11,065 11,589 44,690 46,411
Impairment charge - - 189,661 -
Deferred income taxes (8,921) 4,232 (8,882) (3,748)
Amortization of debt issue
costs 107 101 406 1,888
Amortization of syndication
contracts 15 34 87 72
Payments on syndication contracts (17) (7) (83) (7)
Equity in net (income) loss of
nonconsolidated affiliate 132 (53) 152 144
Non-cash stock-based
compensation 660 502 2,754 997
Loss (gain) on sale of media
properties and other assets (7,099) 13 (26,160) -
Loss on debt extinguishment - - - 9,581
Change in fair value of interest
rate swap agreements 313 (2,750) (2,359) (3,750)
Changes in assets and liabilities,
net of effect of acquisitions
and dispositions:
(Increase) decrease in
accounts receivable 7,419 (631) (76) (8,267)
(Increase) decrease in
prepaid expenses and other
assets 1,274 (7) 929 (2,254)
Increase (decrease) in
accounts payable, accrued
expenses and other
liabilities (1,673) 9,317 (4,490) 4,530
Net cash provided by
operating activities 24,663 25,761 62,030 35,940
Cash flows from investing
activities:
Proceeds from sale of property
and equipment and intangibles 91,519 - 96,282 44
Purchases of property and
equipment and intangibles (4,623) (7,130) (40,586) (39,880)
Deposits on acquisitions - (1,088) 106 (1,088)
Proceeds from collection of note
receivable - - 1,288 -
Net cash provided by (used
in) investing activities 86,896 (8,218) 57,090 (40,924)
Cash flows from financing
activities:
Proceeds from issuance of common
stock 503 128 3,760 1,347
Payments on long-term debt (5,826) (1,097) (24,795) (476,125)
Repurchase of Class U common
stock - - (52,514) -
Proceeds from borrowings on
long-term debt - - 16,000 500,000
Excess tax benefits from
exercise of stock options 8 - 117 -
Repurchase of Class A common
stock (8,772) - (8,772) -
Payments of deferred debt and
offering costs - (1) - (1,597)
Net cash provided by (used
in) financing activities (14,087) (970) (66,204) 23,625
Net increase in cash and
cash equivalents 97,472 16,573 52,916 18,641
Cash and cash equivalents:
Beginning 21,054 49,037 65,610 46,969
Ending $118,526 $65,610 $118,526 $65,610

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,
2006 2005 2006 2005

Consolidated adjusted EBITDA(1) $25,645 $24,903 $100,081 $92,473

Interest expense (8,201) (5,336) (29,431) (29,848)
Interest income 784 404 1,602 966
Loss on debt extinguishment - - - (27,969)
Income tax (expense) benefit 8,129 (4,485) 4,463 2,338
Amortization of syndication contracts (15) (34) (87) (72)
Payments on syndication contracts 17 7 83 7
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 (87) - (267) -
Non-cash stock-based compensation
included in selling, general and
administrative expenses (142) (146) (911) (229)
Non-cash stock-based compensation
included in corporate expenses (431) (356) (1,576) (768)
Depreciation and amortization (11,065) (11,589) (44,690) (46,411)
Impairment charge - - (189,661) -
Net income (loss) before equity in
net income (loss) of nonconsolidated
affiliates 21,520 3,368 (134,447) (9,513)
Equity in net income (loss) of
nonconsolidated affiliates (132) 53 (152) (144)
Net income (loss) 21,388 3,421 (134,599) (9,657)

Depreciation and amortization 11,065 11,589 44,690 46,411
Impairment charge - - 189,661 -
Deferred income taxes (8,921) 4,232 (8,882) (3,748)
Amortization of debt issue costs 107 101 406 1,888
Amortization of syndication contracts 15 34 87 72
Payments on syndication contracts (17) (7) (83) (7)
Equity in net (income) loss of
nonconsolidated affiliate 132 (53) 152 144
Non-cash stock-based compensation 660 502 2,754 997
Loss (gain) on sale of media
properties and other assets (7,099) 13 (26,160) -
Loss on debt extinguishment - - - 9,581
Change in fair value of interest
rate swap agreements 313 (2,750) (2,359) (3,750)
Changes in assets and liabilities,
net of effect of acquisitions and
dispositions:
(Increase) decrease in accounts
receivable 7,419 (631) (76) (8,267)
(Increase) decrease in prepaid
expenses and other assets 1,274 (7) 929 (2,254)
Increase (decrease) in accounts
payable, accrued expenses and
other liabilities (1,673) 9,317 (4,490) 4,530
Cash flows from operating activities $24,663 $25,761 $62,030 $35,940

(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,
2006 2005 2006 2005

Consolidated adjusted EBITDA(1) $25,645 $24,903 $100,081 $92,473
Net interest expense(1) 6,997 7,581 29,782 30,744
Cash paid for income taxes 785 253 4,298 1,410
Capital expenditures(2) 4,623 5,441 23,589 20,190
Free cash flow(1) 13,240 11,628 42,412 40,129

Capital expenditures(2) 4,623 5,441 23,589 20,190
Non-cash interest expense relating
to amortization of debt finance
costs and interest rate swap
agreements (420) 2,649 1,953 1,862
Loss on debt extinguishment - - - (27,969)
Non-cash income tax (expense)
benefit 8,914 (4,232) 8,761 3,748
Amortization of syndication contracts (15) (34) (87) (72)
Payments on syndication contracts 17 7 83 7
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 (87) - (267) -
Non-cash stock-based compensation
included in selling, general
and administrative expenses (142) (146) (911) (229)
Non-cash stock-based compensation
included in corporate expenses (431) (356) (1,576) (768)
Depreciation and amortization (11,065) (11,589) (44,690) (46,411)
Impairment charge - - (189,661) -
Net income (loss) before equity in
net income (loss) of
nonconsolidated affiliates 21,520 3,368 (134,447) (9,513)
Equity in net income (loss) of
nonconsolidated affiliates (132) 53 (152) (144)
Net income (loss) $21,388 $3,421 $(134,599) $(9,657)

(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
(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,
2006 2005 2006 2005

Radio net revenue $23,795 $25,232 $96,668 $100,582
Less: San Francisco/San Jose,
Tucson and Dallas markets (444) (3,723) (5,774) (15,481)
Pro forma radio net revenue $23,351 $21,509 $90,894 $85,101

Total net revenue $74,236 $73,164 $291,752 $280,964
Less: San Francisco/San Jose,
Tucson and Dallas markets (444) (3,723) (5,774) (15,481)
Pro forma total net revenue $73,792 $69,441 $285,978 $265,483

Radio operating expenses(1) $14,333 $15,593 $59,044 $62,085
Less: San Francisco/San Jose,
Tucson and Dallas markets (405) (2,334) (4,056) (9,934)
Pro forma radio operating
expenses(1) $13,928 $13,259 $54,988 $52,151

Total operating expenses(1) $44,521 $44,270 $175,791 $172,040
Less: San Francisco/San Jose,
Tucson and Dallas markets (405) (2,334) (4,056) (9,934)
Pro forma total operating
expenses(1) $44,116 $41,936 $171,735 $162,106

Consolidated adjusted EBITDA(1) $25,645 $24,903 $100,081 $92,473
Less: San Francisco/San Jose,
Tucson and Dallas markets (39) (1,389) (1,718) (5,547)
Pro forma Consolidated adjusted
EBITDA(1) $25,606 $23,514 $98,363 $86,926

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

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

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