Hispanic Broadcasting Corp. 4Q 2000 Results.

Hispanic Broadcasting Corporation announced operating performance for the fourth quarter ended December 31, 2000. For the three months ended December 31, 2000, net revenues increased 9.7% to $61.4 million, broadcast cash flow decreased 9.6% to $25.6 million, and EBITDA decreased 10.1% to $23.7 million compared to the same period of 1999. Net income totaled $11.1 million or $0.10 per share for the three months ended December 31, 2000, compared to net income of $11.0 million or $0.10 per share in the same period of 1999. After-tax cash flow, an important measure of the Company’s performance, increased 5.5% to $24.0 million, or $0.22 per share for the three months ended December 31, 2000, compared to $22.7 million or $0.21 per share in the same period of 1999.

For the year ended December 31, 2000, net revenues increased 20.0% to $237.6 million, broadcast cash flow increased 11.9% to $102.6 million, and EBITDA increased 11.3% to $94.2 million compared to the same period of 1999. Net income totaled $41.5 million or $0.38 per share for the year ended December 31, 2000 compared to $34.2 million or $0.33 per share (diluted) for the same period of 1999. For the year ended December 31, 2000, after-tax cash flow increased 18.8% to $84.2 million, or $0.76 per share compared to $70.8 million or $0.69 per share for the comparable period in 1999.

For the three months ended December 31, 2000, same station net revenue increased and broadcast cash flow decreased 8.4% and 11.9%, respectively. The Company’s news/talk stations posted decreases of approximately 8.3% in net revenues and 56.2% in broadcast cash flow for the three months ended December 31, 2000 over the comparable period last year. For the three months ended December 31, 2000, the Company’s FM same stations posted a net revenue increase and broadcast cash flow decrease of approximately 13.1% and 4.1%, respectively, over the comparable period last year.

During the quarter, the Company operated start-up stations in four markets. As a group, the Company’s start-up stations were profitable during the fourth quarter. HBCi, the Company’s Internet subsidiary, incurred an operating loss of $1.2 million on revenues of $0.3 million during the three months ended December 31, 2000.

Fourth quarter operating results were affected by weaker revenue growth than originally anticipated. At the same time, the Company continued its investment in sales and promotion that began during the first quarter of 2000 and elected to increase promotional and marketing spending during the fourth quarter to address promotion campaigns attributable primarily in Los Angeles, New York, Miami, and Chicago. The additional promotional and marketing expense primarily affected same station operating results. The Company also increased its bad debt provision in the fourth quarter by approximately $0.6 million or 68.0% over the comparable quarter last year. Fourth quarter 1999 operating results included income related to a short-term time brokerage agreement to program one of the Company’s start-up stations. This income had the effect of increasing revenues and operating profit by approximately $1.4 and $1.3 million, respectively.

Fourth quarter 2000 results were positively affected by an approximate $1.5 million net pre-tax gain from an arbitration award and a lower annual effective income tax rate than originally anticipated. The Company estimates that these items increased after-tax cash flow per share by approximately $0.02 per share during the fourth quarter.

Commenting on the Company’s results, Mac Tichenor, President and Chief Executive Officer said, “Although we are disappointed with our fourth quarter operating performance, we are pleased with the progress we made in 2000 to strengthen our station line-up across the country. During the year, we added sales, marketing and programming management in many of our markets, attracting a number of talented individuals with experience in Spanish-language and general market radio. In addition, we increased our commitment to the launch of a nontraditional revenue effort, affecting overall profitability this year. During the year, we successfully launched radio stations in Los Angeles, Dallas, and San Antonio. The Fall Arbitron ratings books showed that our Dallas start-up station, KLNO(FM), is now a top-ten rated station overall, and in San Antonio, KBBT(FM) debuted as the second ranked station in the market.”

First Quarter 2001 Outlook and Comments on 2001 Guidance:

The Company anticipates that first quarter revenue growth will be in the range of 4% to 7%. Broadcast cash flow is anticipated to be in the range of $15.0 to $16.5 million, EBITDA to range from $13.0 to $14.5 million, and after-tax cash flow per share to range from $0.11 to $0.12 per share. First quarter operating results will be affected by soft demand for advertising and increased operating costs associated with the continuation of the Company’s efforts to strengthen its sales staffs and station ratings as well as higher operating losses at HBCi, and the two new start-up stations operating in San Antonio when compared to the first quarter of 2000.

The Company’s 2001 guidance assumes that the economy will be stronger in the second half of the year. The Company’s estimates may prove to be optimistic if this economic recovery does not materialize. The Company’s strong financial condition will allow management to continue its efforts to build staff, promote the radio stations, develop HBCi and acquire and operate start-up stations during this period of weak demand.