1109116--3/16/2009--ENTRAVISION_COMMUNICATIONS

related topics

{capital, credit, financial}

{debt, indebtedness, cash}

{stock, price, share}

{condition, economic, financial}

{stock, price, operating}

{cost, operation, labor}

{tax, income, asset}

{provision, law, control}

{acquisition, growth, future}

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 reduce or curtail certain existing operations. Our substantial level of debt could limit our ability to grow and compete. The amended credit facility agreement contains various covenants that limit management s discretion in the operation of our business and could limit our ability to grow and compete. We are continuing to experience declining net revenue and net losses, primarily as a result of the global financial crisis and recession. Were these factors to continue for an extended period of time, our ability to comply with our amended credit facility agreement, including financial covenants and ratio, and continue to operate our business as it is presently conducted could be jeopardized. The current global financial crisis and recession may have an adverse impact on our industry, business, results of operations or financial position. Our advertising revenue can vary substantially from period to period based on many factors beyond our control. This volatility affects our operating results and may reduce our ability to repay indebtedness or reduce the market value of our securities. Recent global economic turmoil may affect our financial performance or our ability to forecast our business with accuracy. Cost savings measures that we implemented in 2008 and additional cost saving measures that we intend to implement during 2009 may have an uncertain impact on our business. The terms of any additional equity or convertible debt financing could contain terms that are superior to the rights of our existing security holders. 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. We have recently recorded impairments of our television and radio assets. We have been notified that we do not currently comply with a certain NYSE continued listing requirement. 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 amended credit facility 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 requirement for us to convert to digital television may not result in commercial benefit unless there is sufficient consumer demand. Because our full-service television stations rely on retransmission consent 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. Carriage of our signals on direct broadcast satellite services is subject to direct broadcast satellite companies providing local broadcast signals in the television markets we serve and our decision as to the terms upon which our signals will be carried. The FCC s new ownership rules could lead to increased market power for our competitors.

Full 10-K form ▸

1109116--3/16/2009--ENTRAVISION_COMMUNICATIONS_CORP