Three-Month Period

Ended March 31,

2012

2011

% Change

Net revenue

$        46,524

$        44,044

6%

Operating expenses (1)

31,006

30,064

3%

Corporate expenses (2)

3,881

3,745

4%

Consolidated adjusted EBITDA (3)

11,624

10,408

12%

Free cash flow (4)

$          1,444

$        (1,550)

NM

Free cash flow per share (4)

$            0.02

$          (0.02)

NM

Net income (loss) applicable to common stockholders

$        (3,395)

$        (4,432)

(23)%

Net income (loss) per share applicable

   to common stockholders, basic and diluted

$          (0.04)

$          (0.05)

(20)%

Weighted average common shares outstanding, basic and diluted

85,806,080

85,039,298

(1)

Operating expenses include direct operating, selling, general and administrative expenses. Included in operating expenses are $0.1 million and $0.2 million of non-cash stock-based compensation for the three-month periods ended March 31, 2012 and 2011, respectively. Operating expenses do not include corporate expenses, depreciation and amortization, impairment charge, gain (loss) on sale of assets and gain (loss) on debt extinguishment.

(2)

Corporate expenses include $0.1 million and $0.2 million of non-cash stock-based compensation for the three-month periods ended March 31, 2012 and 2011, respectively.

(3)

Consolidated adjusted EBITDA means net income (loss) plus gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation included in operating and corporate expenses, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses and syndication programming amortization less syndication programming payments. We use the term consolidated adjusted EBITDA because that measure is defined in our revolving credit facility and does not include gain (loss) on sale of assets, depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses 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) on sale of assets, non-cash depreciation and amortization, non-cash impairment charge, non-cash stock-based compensation expense, net interest expense, other income (loss), gain (loss) on debt extinguishment, income tax (expense) benefit, equity in net income (loss) of nonconsolidated affiliate, non-cash losses 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.  Consolidated adjusted EBITDA is also used to make executive compensation decisions. 

(4)

Free cash flow is defined as consolidated adjusted EBITDA less cash paid for income taxes, net interest expense, capital expenditures and dividend payments. Net interest expense is defined as interest expense, less non-cash interest expense relating to amortization of debt finance costs, less non-cash interest expense relating to discount amortization on our $384 million aggregate principal amount of 8.750% senior secured first lien notes due 2017 (the "Notes"),  and less interest income. Free cash flow per share is defined as free cash flow divided by the basic or diluted weighted average common shares outstanding.

Three Months Ended March 31, 2012 Compared to Three Months Ended March 31, 2011

(Unaudited)

Three-Month Period

Ended March 31,

2012

2011

% Change

Net revenue

$      46,524

$      44,044

6%

Operating expenses (1)

31,006

30,064

3%

Corporate expenses (1)

3,881

3,745

4%

Depreciation and amortization

4,347

4,732

(8)%

Operating income (loss)

7,290

5,503

32%

Interest expense, net

(9,096)

(9,441)

(4)%

Other income (loss)

-

687

(100)%

Income (loss) before income taxes                                 

(1,806)

(3,251)

(44)%

Income tax (expense) benefit                                                                      

(1,589)

(1,181)

35%

Net income (loss)

$      (3,395)

$      (4,432)

(23)%

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

Three-Month Period

Ended March 31,

2012

2011

% Change

Net Revenue

Television

$        33,164

$        30,668

8%

Radio

$        13,360

$        13,376

(0)%

Total

$        46,524

$        44,044

6%

Operating Expenses (1)

Television

$        18,535

$        17,830

4%

Radio

12,471

12,234

2%

Total

$        31,006

$        30,064

3%

Corporate Expenses (1)

$          3,881

$          3,745

4%

Consolidated adjusted EBITDA (1)

$        11,624

$        10,408

12%

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

Entravision Communications Corporation

Consolidated Statements of Operations

(In thousands, except share and per share data)

(Unaudited)

Three-Month Period

Ended March 31,

2012

2011

Net revenue

$

46,524

$

44,044

Expenses:

Direct operating expenses

21,634

20,821

Selling, general and administrative expenses

9,372

9,243

Corporate expenses

3,881

3,745

Depreciation and amortization

4,347

4,732

39,234

38,541

                        Operating income (loss)

7,290

5,503

Interest expense

(9,100)

(9,443)

Interest income

4

2

Other income (loss)

-

687

                        Income (loss) before income taxes

(1,806)

(3,251)

Income tax (expense) benefit

(1,589)

(1,181)

Net income (loss) applicable to common stockholders

$

(3,395)

$

(4,432)

Basic and diluted earnings per share:

Net income (loss) per share applicable to common stockholders,

            basic and diluted

$

(0.04)

$

(0.05)

Weighted average common shares outstanding, basic and diluted

85,806,080

85,039,298

Entravision Communications Corporation

Consolidated Statements of Cash Flows

(In thousands; unaudited)

Three-Month Period

Ended March 31,

2012

2011

Cash flows from operating activities:

      Net income (loss)

$              (3,395)

$              (4,432)

      Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

            Depreciation and amortization

4,347

4,732

            Deferred income taxes

1,106

638

            Amortization of debt issue costs

563

539

            Amortization of syndication contracts

193

290

            Payments on syndication contracts

(467)

(480)

            Non-cash stock-based compensation

261

363

            (Gain) loss on equity investment

-

(687)

            Changes in assets and liabilities, net of effect of acquisitions and dispositions:

                        (Increase) decrease in accounts receivable

3,269

6,807

                        (Increase) decrease in prepaid expenses and other assets

(644)

(598)

                        Increase (decrease) in accounts payable, accrued expenses and other liabilities

(11,539)

(10,627)

                                    Net cash provided by (used in) operating activities

(6,306)

(3,455)

Cash flows from investing activities:

      Purchases of property and equipment and intangibles

(1,164)

(2,513)

      Purchase of a business

-

(348)

                                    Net cash provided by (used in) investing activities

(1,164)

(2,861)

Cash flows from financing activities:

      Proceeds from issuance of common stock

-

27

      Payments of deferred debt and offering costs

(80)

(29)

                                    Net cash provided by (used in) financing activities

(80)

(2)

                                    Net increase (decrease) in cash and cash equivalents

(7,550)

(6,318)

Cash and cash equivalents:

      Beginning

58,719

72,390

      Ending

$              51,169

$              66,072

Entravision Communications Corporation

Reconciliation of Consolidated Adjusted EBITDA to Cash Flows From Operating Activities

 (In thousands; unaudited)

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

Ended March 31,

2012

2011

Consolidated adjusted EBITDA (1)

$               11,624

$               10,408

Interest expense

(9,100)

(9,443)

Interest income

4

2

Income tax (expense) benefit

(1,589)

(1,181)

Amortization of syndication contracts

(193)

(290)

Payments on syndication contracts

467

480

Non-cash stock-based compensation included in direct operating

 expenses

(13)

(51)

Non-cash stock-based compensation included in selling, general 

and administrative expenses

(109)

(156)

Non-cash stock-based compensation included in corporate expenses

(139)

(156)

Depreciation and amortization

(4,347)

(4,732)

Gain (loss) on equity investment

-

687

Net income (loss)

(3,395)

(4,432)

Depreciation and amortization

4,347

4,732

Deferred income taxes

1,106

638

Amortization of debt issue costs

563

539

Amortization of syndication contracts

193

290

Payments on syndication contracts

(467)

(480)

Non-cash stock-based compensation

261

363

(Gain) loss on equity investment

-

(687)

Changes in assets and liabilities, net of effect of acquisitions and dispositions:

(Increase) decrease in accounts receivable

3,269

6,807

(Increase) decrease in prepaid expenses and other assets

(644)

(598)

Increase (decrease) in accounts payable, accrued expenses and other liabilities

(11,539)

(10,627)

Cash flows from operating activities

$               (6,306)

$               (3,455)

(1)   Consolidated adjusted EBITDA is defined on page 1.

Entravision Communications Corporation

Reconciliation of Free Cash Flow to Net Income (Loss)

(In thousands; unaudited)

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

Ended March 31,

2012

2011

            Consolidated adjusted EBITDA (1)

$      11,624

$      10,408

            Net interest expense (1)

8,533

8,902

            Cash paid (refunded) for income taxes

483

543

            Capital expenditures (2)

1,164

2,513

            Free cash flow (1)

1,444

(1,550)

            Capital expenditures (2)

1,164

2,513

            Amortization of debt issue costs

(563)

(539)

            Non-cash income tax expense

(1,106)

(638)

            Amortization of syndication contracts

(193)

(290)

            Payments on syndication contracts

467

480

            Non-cash stock-based compensation included in direct operating

 expenses

(13)

(51)

            Non-cash stock-based compensation included in selling, general 

and administrative expenses

(109)

(156)

            Non-cash stock-based compensation included in corporate expenses

(139)

(156)

            Depreciation and amortization

(4,347)

(4,732)

            Gain (loss) on equity investment

-

687

            Net income (loss)

$      (3,395)

$      (4,432)

(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.