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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