Entravision Communications Revises 1Q 2001 & Full Year Financial Expectations.

Entravision Communications Corporation announced that it has revised financial expectations for the 2001 first quarter and full-year. For the first quarter ended March 31, 2001, the company expects to report revenue of approximately $43 million, broadcast cash flow of approximately $10.7 million, EBITDA of approximately $7.0 million and after tax cash flow of approximately $2.7 million. For the full-year of 2001, the company expects to report revenue of approximately $219-$225 million, broadcast cash flow of approximately $79-$83 million, EBITDA of approximately $63-$67 million and after tax cash flow of approximately $48-$51 million. Entravision’s first quarter and full-year estimates continue to be impacted by the weak economic environment and subsequent reduction in advertising expenditures.

On a pro forma basis, which includes all 2000 acquisitions and dispositions as if consummated on January 1, 2000, the company expects to report first quarter 2001 revenue flat with the first quarter of 2000, a broadcast cash flow decrease of 7% and an EBITDA decrease of 15%. On a segment pro forma basis for the first quarter of 2001, the company expects revenue to increase 17% in its TV division, decrease 9% in its Radio division, decrease 19% in its Outdoor division and increase 2% in its Print division.

On a pro forma basis, the company expects to report full year 2001 revenue growth of 2%-5%, broadcast cash flow growth of 7%-13%, EBITDA growth of 8%-15% and after tax cash flow of $48-$51 million.

In addition, Entravision announced that it has reclassified certain corporate expenses as operating expenses relating to the Radio division. The company previously reported corporate overhead of $18.9 million and operating expenses of $138.2 million for the twelve-month period ended December 31, 2000. The company has reclassified $3.6 million of 2000 corporate overhead to operating expenses related to the Radio division. The reclassification includes radio programming and operating expenses that historically had been included in corporate overhead of the two radio companies purchased in 2000. These expenses include salaries and wages, insurance, supplies and rent. The reclassification is consistent with the methodology our peers are using and will result in a more accurate operating margin and corporate overhead comparison.

Entravision also announced that its Board of Directors has approved a stock repurchase program under which the company is authorized to repurchase up to $35 million of its outstanding common stock from time to time in open market transactions at prevailing market prices, block trades and private repurchases. The extent and timing of any repurchases will depend on market conditions and other factors.

Walter Ulloa, Chairman and CEO of Entravision, commented, “Our revised guidance reflects the impact of continued weakness in advertising expenditures across our markets concurrent with the slowdown in the economy. We remain cautiously optimistic that advertising spending will begin to improve slightly in the second half of 2001. In the meantime, we are focused on controlling our operating costs, improving efficiencies across our asset base, increasing our TV and radio station ratings and developing our stick broadcasting properties. The recent US census report validates the rapid growth of the Hispanic population and highlights the sizeable revenue gap that exists between Spanish media and the advertising community. As the only Spanish language media company with a portfolio spanning TV, radio, outdoor and publishing, we are uniquely positioned to benefit as the economy begins to recover. Our stock repurchase program is a reflection of our Board’s confidence in our strategy and our belief that our asset base is undervalued.”

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