Exhibit 99.1
[LOGO OF ENTRAVISION COMMUNICATIONS]
ENTRAVISION COMMUNICATIONS REVISES 2001 FIRST QUARTER AND FULL YEAR FINANCIAL
EXPECTATIONS
Announces $35 million Stock Repurchase Program
Santa Monica, CA, March 19, 2001 - Entravision Communications Corporation (NYSE:
EVC) announced today 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.
The following is the revised pro forma (includes all 2000 acquisitions and
dispositions as if consummated on January 1, 2000) guidance for the first
quarter of 2001:
Q1 2001 Q1 2001 Q1 2001 Q1 2001 Q1 2000
Initial Board Radio Revised 8K
Guidance Adjustment Reclass Guidance (2)(3) % Chg
--------- ------------ ------------- --------- ------- -------
Television $18.3 $18.3 $18.3 $18.9 $16.1 17.0%
Radio 14.0 14.0 14.0 12.9 14.2 -9.0
Outdoor 6.7 7.5 (1) 7.5 6.5 8.0 -19.0
Print 4.5 4.5 4.5 4.7 4.6 2.0
Total Revenue 43.5 44.3 44.3 43.0 42.9 0.0
Operating Expenses 29.2 30.3 (1) 31.3 (2) 32.3 31.4 3.0
Broadcast Cash Flow 14.3 14.0 13.0 10.7 11.5 -7.0
Corporate Overhead 5.9 5.9 4.9 (2) 3.7 3.3 12.0
EBITDA 8.5 8.1 8.1 7.0 8.2 -15.0
ATCF 3.9 3.7 3.7 2.7 -- --
(1) Reflects add back of operating results for sale of boards which has not
occurred (revenue of $831,000 and operating expenses of $1,139,000).
(2) Reflects reclassification of radio expenses from corporate overhead to
operating expenses.
(3) Reflects adjustments to operations as reported in the 8K filed on February
28, 2001.
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Page 2 of 3
The following is the revised pro forma (includes all 2000 acquisitions and
dispositions as if consummated on January 1, 2000) guidance for the full-year of
2001:
2001 2001 2001 2001 2000
Initial Board Radio Revised 8K
Guidance Adjustment Reclass Guidance (2)(3) % Chg
-------- ---------- ------- -------- ------- -------
Television $95.0 $95.0 $95.0 $93-95 $81.6 14-16%
Radio 78.0 78.0 78.0 70-72 70.6 (1)-2
Outdoor 41.0 47.0 (1) 47.0 36-37 41.8 (14)-(11)
Print 22.0 22.0 22.0 20-21 20.5 (2)-2
Total Revenue 236.0 242.0 242.0 219-225 214.5 2-5
Operating Expenses 145.0 150.0 (1) 154.0 (2) 140-142 140.9 (1)-1
Broadcast Cash Flow 91.0 92.0 88.0 79-83 73.6 7-13
Corporate Overhead 23.0 23.0 19.0 (2) 16.0 15.3 4
EBITDA 68.0 69.0 69.0 63-67 58.3 8-15
ATCF 51.0 52.0 52.0 48-51 -- --
(1) Reflects add backs of operating results for sale of boards which has not
occurred (revenue of $6 million and operating expenses of $5 million).
(2) Reflects reclassification of radio expenses from corporate overhead to
operating expenses.
(3) Reflects adjustments to operations as reported in the 8K filed on February
28, 2001.
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 today 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.
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Page 3 of 3
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."
Entravision Communications will hold a conference call to discuss today's
announcement at 5:15 p.m. EST today Monday March 19, 2001. The live call can be
accessed by dialing 212-231-6043 or via the Internet at www.entravision.com. A
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48 hour replay of the call will be available by dialing 800-633-8284,
reservation code 18334074, and will be archived on the corporate website
www.entravision.com for two weeks.
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Entravision Communications Corporation is a diversified Spanish-language
media company utilizing a combination of television, radio, outdoor and
publishing operations to reach approximately 80% of Hispanic consumers across
the United States, as well as the border markets of Mexico. Entravision is the
largest affiliate group of the top-ranked Univision television network, with
stations in 18 of the nation's top-50 Hispanic markets. The company also
operates the nation's largest centrally programmed Spanish-language radio
network which serves 23 markets via 57 owned and operated radio stations and 47
affiliates. The company's publishing operations include El Diario/La Prensa in
New York City, the nation's oldest major Spanish-language newspaper.
Entravision's outdoor displays target Hispanic consumers in New York and Los
Angeles, the country's two largest Hispanic markets, with collectively over 10
million Hispanic consumers. Entravision shares of Class A Common Stock are
traded in the New York Stock Exchange under the symbol: EVC.
Certain statements contained in this release are forward looking. Although
Entravision Communications Corporation believes that its expectations are based
on reasonable assumptions within the bounds of its knowledge of its business and
operations, there can be no assurance that actual results will not differ
materially from expectations. For important factors that may cause actual
results to differ materially from expectations and assumptions, see the
company's prospectus, dated August 2, 2000.
# # #
CONTACTS:
Mike Smargiassi/Kim Holt
Brainerd Communicators, Inc.
212-986-6667
smarg@braincomm.com / holt@braincomm.com.
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