1109116--3/15/2007--ENTRAVISION_COMMUNICATIONS

related topics

{capital, credit, financial}

{stock, price, share}

{debt, indebtedness, cash}

{acquisition, growth, future}

{stock, price, operating}

{tax, income, asset}

{provision, law, control}

We have a history of losses that, if continued, could adversely affect the market price of our securities and our ability to raise capital. If we cannot raise required capital, we may have to curtail existing operations and our future growth through acquisitions. Our substantial level of debt could limit our ability to grow and compete. The credit agreement governing our syndicated bank credit facility contains various covenants that limit management s discretion in the operation of our business and could limit our ability to grow and compete. Any failure to maintain our FCC broadcast licenses could cause a default under our syndicated bank credit facility and cause an acceleration of our indebtedness. Cancellations or reductions of advertising could adversely affect our results of operations. We have a significant amount of goodwill and other intangible assets and we may never realize the full value of our intangible assets. Univision s ownership of our Class U common stock may make some transactions difficult or impossible to complete without Univision s support. Univision s future divestiture of a portion of its equity interest in our company could adversely affect the market price of our securities. Our television ratings and revenue could decline significantly if our affiliation relationship with Univision or Univision s programming success changes in an adverse manner. Because three of our directors and officers, and stockholders affiliated with them, hold the majority of our voting power, they can ensure the outcome of most matters on which our stockholders vote. Stockholders who desire to change control of our company may be prevented from doing so by provisions of our second amended and restated certificate of incorporation and the credit agreement governing our syndicated bank credit facility. In addition, other agreements contain provisions that could discourage a takeover. Displacement of any of our low-power television stations could cause our ratings and revenue for any such station to decrease. The FCC requires us to convert to digital television; additionally, such conversion may not result in commercial benefit unless there is sufficient consumer demand. Because our full-service television stations rely on must carry rights to obtain cable carriage, new laws or regulations that eliminate or limit the scope of our cable carriage rights could have a material adverse impact on our television operations. The policies of direct broadcast satellite companies may make it more difficult for their customers to receive our local broadcast station signals. The FCC s new ownership rules could lead to increased market power for our competitors.

Full 10-K form ▸

1109116--3/15/2007--ENTRAVISION_COMMUNICATIONS_CORP