1109116--3/31/2010--ENTRAVISION_COMMUNICATIONS

related topics

{capital, credit, financial}

{condition, economic, financial}

{debt, indebtedness, cash}

{tax, income, asset}

{stock, price, share}

{stock, price, operating}

{provision, law, control}

{regulation, change, law}

{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 require but cannot raise additional 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 have recently experienced declining net revenue and net losses, primarily as a result of the current economic conditions. Were these conditions to continue for an extended period of time or worsen, 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 economic conditions may have an adverse impact on our industry, business, results of operations or financial position. The current economic conditions and difficulties in the global capital and credit markets have affected and may continue to adversely affect our business, as well as the industries of many of our customers, which are cyclical in nature. The current economic conditions and their impact on consumer and general business confidence could negatively affect the Company. Current uncertain and volatile economic conditions may affect our financial performance or our ability to forecast our business with accuracy. Changes in our accounting estimates and assumptions could negatively affect our financial position and operating results. 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. 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. Retransmission consent revenue may not continue to grow at recent rates over the long term. 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. In the fourth quarter of 2009, we determined that the carrying values of certain radio FCC licenses exceeded their fair values and we recognized an impairment charge of $48 million. Univision s ownership of our Class U common stock may make some transactions difficult or impossible to complete without Univision s support. Our television ratings, revenue, results of operations, financial condition and business prospects 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. 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. Changes in the FCC s ownership rules could lead to increased market power for our competitors. We rely on over-the-air spectrum which might be taken away.

Full 10-K form ▸

1109116--3/31/2010--ENTRAVISION_COMMUNICATIONS_CORP