PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 1 of 14 Contact: Media Contact: Andrew W. Hobson Stephanie Pillersdorf / Brooke Gordon Univision Communications Inc. Sard Verbinnen & Co 201-287-4306 212-687-8080 UNIVISION ANNOUNCES 2009 THIRD QUARTER RESULTS NEW YORK, NY, November 3, 2009 Univision Communications Inc., the leading Spanish-language media company in the United States, today announced financial results for the third quarter and nine months ended September 30, 2009. For the third quarter of 2009, net revenue increased 1.4% to $526.8 million from $519.4 million in 2008 and adjusted operating income before depreciation and amortization 1 increased 8.4% to $232.5 million in the third quarter of 2009 from $214.4 million in 2008. For the nine months ended September 30, 2009, net revenue declined 4.6% to $1,456.6 million from $1,527.2 million in 2008 and adjusted operating income before depreciation and amortization 1 increased 4.8% to $612.9 million from $584.6 million in 2008. Joe Uva, chief executive officer, said, We're pleased with our results this quarter, which reflect early signs of recovery in the marketplace. Our results underscore the success of our strategy to focus on multiple revenue streams, including retransmission consent and traditional advertising as well as new areas such as e- commerce. During the quarter, we ranked as the third most-watched network during primetime among Adults 18-34, we debuted our most successful webnovela to date, launched our direct-to-consumer e- commerce website and unveiled our video on demand offering. As we look ahead, we continue to manage costs aggressively and enhance our business in ways that will further develop Univision s fundamentals and accelerate the growth trajectory for all of our divisions. 1 The Company uses the key indicator of operating income before depreciation and amortization ( OIBDA ) to evaluate the Company s operating performance, for planning and forecasting future business operations, and except as described below, for reporting under its bank credit agreement. This indicator is presented on an adjusted basis consistent with the definition in the Company's bank credit agreement governing its senior secured credit facilities as in effect during the relevant periods to exclude certain expenses. OIBDA as presented does not reflect the benefit for certain income taxes which were included in calculating OIBDA under the bank credit agreement, before its amendment on June 19, 2009, or the provision of a fixed amount reflecting a GAAP tax benefit included in calculating OIBDA under the bank credit agreement, as amended. The bank credit agreement also allows the Company to make certain pro forma adjustments for purposes of calculating certain financial covenants. None of these pro forma adjustments are made to OIBDA for purposes other than reporting under the bank credit agreement. See Pages 6 through 10 for a reconciliation of non-gaap (Generally Accepted Accounting Principles) terms and adjusted measures to net income (loss).
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 2 of 14 The following tables set forth the Company s unaudited financial performance for the three and nine months ended September 30, 2009 and September 30, 2008 by segment: Unaudited In millions Three Months Ended September 30, Adjusted Operating Income Before Depreciation Net Revenue and Amortization 1 2009 2008 2009 2008 Television $ 421.8 $ 400.2 $ 198.5 $ 170.0 Radio 93.4 107.7 32.2 41.4 Interactive Media 11.6 11.5 1.8 3.0 Consolidated $ 526.8 $ 519.4 $ 232.5 $ 214.4 Unaudited In millions Nine Months Ended September 30, Adjusted Operating Income Before Depreciation Net Revenue and Amortization 1 2009 2008 2009 2008 Television $ 1,172.5 $ 1,182.9 $ 535.1 $ 465.6 Radio 255.0 314.7 77.1 114.4 Interactive Media 29.1 29.6 0.7 4.6 Consolidated $ 1,456.6 $ 1,527.2 $ 612.9 $ 584.6 1 The Company uses the key indicator of operating income before depreciation and amortization ( OIBDA ) to evaluate the Company s operating performance, for planning and forecasting future business operations, and except as described below, for reporting under its bank credit agreement. This indicator is presented on an adjusted basis consistent with the definition in the Company's bank credit agreement governing its senior secured credit facilities as in effect during the relevant periods to exclude certain expenses. OIBDA as presented does not reflect the benefit for certain income taxes which were included in calculating OIBDA under the bank credit agreement, before its amendment on June 19, 2009, or the provision of a fixed amount reflecting a GAAP tax benefit included in calculating OIBDA under the bank credit agreement, as amended. The bank credit agreement also allows the Company to make certain pro forma adjustments for purposes of calculating certain financial covenants. None of these pro forma adjustments are made to OIBDA for purposes other than reporting under the bank credit agreement. See Pages 6 through 10 for a reconciliation of non-gaap (Generally Accepted Accounting Principles) terms and adjusted measures to net income (loss).
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 3 of 14 TELEVISION HIGHLIGHTS 2 Univision Network The following table sets forth the total primetime audience and ranking of the country s leading broadcast and cable television networks for the third quarter 2009. Total U.S. Primetime Network Audience 3 rd Quarter 2009 Rank* Network Adult 18-34 Avg. Audience (000) Adult 18-49 Avg. Audience (000) 1 FOX 1,205 2,518 2 NBC 964 2,434 3 UNIVISION 956 1,705 4 ABC 759 1,879 5 CBS 758 2,233 6 USA 525 1,249 7 TBS 516 924 8 ESPN 503 1,080 9 MTV 387 519 10 TEL 380 622 Source: The Nielsen Company, NPM (06/29/2009-09/27/2009), Live+SD data. Primetime defined as M-Sat 8pm-11pm, Sun 7pm-11pm. *By Adults 18-34 For the third quarter 2009, Univision maintained its ranking as the #3 broadcast network in the country among Adults 18-34 in primetime, and once again ranked as the #5 broadcast network in the country among Adults 18-49 in primetime. The Univision Network beat one or more of the English-language broadcast networks, ABC, CBS, NBC, or FOX, 88% of the time among Adults 18-34. In addition, the Univision Network ranked as the #1 Network, broadcast or cable, on Friday nights in the third quarter among Adults 18-34 and Adults 18-49, regardless of language. During the 2008-2009 broadcast season, which ended on September 20, 2009, the Univision Network increased its audience by +4% in primetime and +5% in total day among Total Viewers 2+, compared to the previous broadcast season. Locally, during the 2009 third quarter, Univision stations were ranked as the #1 station in any language in primetime in Los Angeles, Miami, Houston, Dallas, San Antonio, Phoenix, Sacramento, Fresno, Austin and Bakersfield among Adults 18-34 and in Los Angeles, Miami, Houston, Dallas, San Antonio, Phoenix (tie), Fresno, Austin and Bakersfield among Adults 18-49. In total day, Univision stations were ranked as the #1 station in any language among Adults 18-34 in Los Angeles, Miami, Houston, Dallas, San Antonio, Phoenix, San Francisco (tie), Sacramento, Fresno and Austin and among Adults 18-49 in Los Angeles, Miami, Houston, Dallas, San Antonio, Phoenix, Sacramento (tie), Fresno, Austin and Bakersfield. TeleFutura Network For the third quarter 2009, TeleFutura ranked as the #2 Spanish-language network, behind only Univision, among Total Viewers 2+ and Adults 18-49 in M-F early morning, weekday daytime, late fringe and weekend daytime. The TeleFutura Network delivered its highest quarterly performance ever in primetime and reported audience growth of +61% among Total Viewers 2+ and +52% among Adults 18-49, compared to third quarter 2008. Among Adults 18-34, TeleFutura increased its primetime audience +61% compared 2 Univision, TeleFutura and Galavisión Networks audience and rankings as measured by Nielsen s National People Meter.
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 4 of 14 to last year. TeleFutura also delivered record third quarter audience levels among key demographics that included Total Viewers 2+, Adults 18-49 and Adults 18-34 during total day, weekend day and late fringe for the third quarter 2009. Locally, during the 2009 third quarter, TeleFutura stations ranked as the #2 Spanish-language stations during primetime among Adults 18-34 in Los Angeles, Dallas (tie), Chicago (tie), Phoenix, San Francisco (tie), Sacramento and Fresno and among Adults 18-49 in Los Angeles, Dallas, Chicago (tie), Phoenix, San Francisco (tie), Sacramento, Fresno and Austin (tie). In total day, TeleFutura claimed the #2 Spanishlanguage stations ranking among Adults 18-34 in Los Angeles, Houston (tie), Dallas (tie), Chicago (tie), Phoenix, San Francisco, Sacramento and Fresno, and among Adults 18-49 in Los Angeles, Houston (tie), Dallas (tie), Chicago (tie), Phoenix, San Francisco, Sacramento, Fresno and Tucson (tie). Galavisión Network Galavisión maintained its ranking as the #1 Spanish-language cable network in ratings and distribution among U.S. Hispanics during the third quarter, outperforming all other measurable Spanish-language cable networks and delivering more than two times the audience of its nearest competitor during primetime among Hispanic Adults 18-49. In addition, Galavisión outdelivered the English-language cable networks TBS and ESPN to rank as the #5 cable network in the country in any language in primetime among Hispanic Adults 18-49. Compared to the third quarter 2008, Galavisión increased its early morning audience by 64%, its daytime audience by 15% and its late night audience by 13% among Adults 18-49. RADIO HIGHLIGHTS In the third quarter, Univision Radio s 16 U.S. markets outperformed the industry on average, according to revenue reports from Miller, Kaplan, Arase & Co. ( Miller Kaplan ). In early October, Univision Radio closed on an exchange transaction involving The New York Times Company and WNYC Radio, allowing Univision Radio to upgrade its heritage FM station (formerly WCAA) to a full-market signal with expanded coverage, now WXNY 96.3. INTERACTIVE MEDIA HIGHLIGHTS 3 Maintaining growth momentum in the third quarter, Univision.com s video streams grew to over 30 million, an increase over video streams in the third quarter of 2008. In addition, Univision.com s ad impressions and visits grew 6% and 31%, respectively. In the third quarter, Univision.com also debuted an original webnovela, Vidas Cruzadas (Crossed Lives), which generated over 2.5 million total video streams, and became one of the Company s top two most-watched online properties ever. Univision.com implemented a new video search powered by Truveo that for the first time ever allows users to search, view and comment on millions of Spanish-language videos from around the Web without leaving Univision.com. Since launch, video searches have increased by 43%. Another record-breaking event was the day after the Premios Juventud (Youth Awards) broadcast, where the Univision.com TV vertical saw its #1 day of the year in terms of page views, unique cookies and visits. Similarly, on the day of the live Premios Juventud broadcast, the Univision Móvil website generated impressive traffic with over 802,000 page views. Overall, Univision Móvil had a successful third quarter with record traffic to its mobile website, leading to a 145% increase in page views as compared to the same quarter last year. Also during the third quarter, visits grew from nearly 6 million to nearly 16 million, an increase of 164%. 3 Univision.com s statistics provided by Univision.com Worldwide Traffic Analytics, Media Rating Council accredited. Univision Móvil statistics provided by Quattro Wireless.
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 5 of 14 ABOUT UNIVISION Univision Communications Inc. is the premier Spanish-language media company in the United States. Its operations include Univision Network, the most-watched Spanish-language broadcast television network in the U.S. reaching 95% of U.S. Hispanic Households; TeleFutura Network, a general-interest Spanishlanguage broadcast television network, which was launched in 2002 and now reaches 85% of U.S. Hispanic Households; Galavisión, the country s leading Spanish-language cable network; Univision Television Group, which owns and operates 64 television stations in major U.S. Hispanic markets and Puerto Rico; Univision Radio, the leading Spanish-language radio group which owns and/or operates 68 radio stations in 16 of the top 25 U.S. Hispanic markets and 5 stations in Puerto Rico; and Univision Interactive Media, which includes http://www.univision.com, the premier Spanish-language Internet destination in the U.S., and Univision Móvil, the industry s most comprehensive Spanish-language suite of mobile offerings. Univision Communications also has a 50% interest in TuTv, a joint venture formed to broadcast Televisa s pay television channels in the U.S. Univision Communications has television network operations in Miami and television and radio stations and sales offices in major cities throughout the United States. For more information, please visit www.univision.net Safe Harbor This document contains forward-looking statements that involve risks and uncertainties, including those relating to the Company s future success and growth. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include: any impact of the economic crisis on our business and financial condition, including reduced advertising revenue; failure to service our debt; inability to comply with our bank credit agreement governing our senior secured credit facilities, including financial covenants and ratios; cancellation, reductions or postponements of advertising; write downs of the carrying value of assets due to impairment; inability to realize the full value of our intangible assets; failure of our new or existing businesses to produce projected revenues or cash flows; our reliance on Televisa for a significant amount of our network programming; failure to obtain the benefits expected from cross-promotion of media; regional downturns in economic conditions in those areas where our stations are located; possible strikes or other union job actions; changes in the rules and regulations of the FCC; impact of a new rating system on ratings of our radio stations; a decrease in the supply or quality of programming; an increase in the cost of programming; changes in the size of the U.S. Hispanic population; an increase in the preference among Hispanics for English-language programming; the need for any unanticipated expenses; competitive pressures from other broadcasters and other entertainment and news media; potential impact of new technologies; Televisa prevailing on its appeal with respect to our trial on Internet issues; unanticipated interruption in our broadcasting for any reason, including acts of terrorism; our ability to access our remaining holdings in the Reserve Primary Fund and a failure to achieve profitability, growth or anticipated cash flows from acquisitions. Actual results may differ materially due to these risks and uncertainties as well as those described in the Company s historic filings with the Securities and Exchange Commission and in the offering material for its notes. The Company assumes no obligation to update forward-looking information contained in this press release.
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 6 of 14 RECONCILIATION OF ADJUSTED OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION TO NET LOSS The Company uses the key indicator of OIBDA to evaluate the Company s operating performance, for planning and forecasting future business operations, and except as described below, for reporting under its bank credit agreement. This indicator is presented on an adjusted basis consistent with the definition in the Company's bank credit agreement governing its senior secured credit facilities as in effect during the relevant periods to exclude certain expenses. OIBDA as presented does not reflect the benefit for certain income taxes which were included in calculating OIBDA under the bank credit agreement, before their amendment on June 19, 2009, or the provision of a fixed amount reflecting a GAAP tax benefit included in calculating OIBDA under the bank credit agreement, as amended. The bank credit agreement also allows the Company to make certain pro forma adjustments for purposes of calculating certain financial covenants. None of these pro forma adjustments are made to OIBDA for purposes other than reporting under the bank credit agreement. OIBDA is not, and should not be used as, an indicator of or alternative to operating income (loss) or net income (loss) as reflected in the consolidated financial statements. It is not a measure of financial performance under U.S. generally accepted accounting principles ( GAAP ) and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Since the definition of OIBDA may vary among companies and industries it should not be used as a measure of performance among companies.
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 7 of 14 The tables below set forth a reconciliation of OIBDA to operating income (loss) for each segment and consolidated net income (loss), which are the most directly comparable GAAP financial measures. Unaudited Three Months Ended September 30, 2009 In millions Consolidated Television Radio Internet OIBDA $ 232.5 $ 198.5 $ 32.2 $ 1.8 Depreciation and amortization 29.0 25.0 2.0 2.0 Televisa settlement and related charges 2.2 2.2 - - Restructuring, severance and related charges 10.4 8.6 1.8 - Share-based compensation 3.3 3.3 - - Business optimization expense 6.2 6.2 - - Asset write-offs 3.1 3.1 - - Management fee 4.5 4.5 - - Other 4 0.4 0.4 - - Operating income (loss) $ 173.4 $ 145.2 $ 28.4 $ (0.2) Unaudited In millions Three Months Ended September 30, 2009 Operating income $ 173.4 Other (income) expense: Interest expense 187.4 Interest income (13.5) Amortization of deferred financing costs 9.5 Loss on sale of receivables 18.0 Interest rate swap income, net (17.9) Loss on extinguishment of debt 0.6 Equity income in unconsolidated subsidiaries and other (0.8) Loss from continuing operations before income taxes (9.9) Benefit for income taxes (16.0) Income from continuing operations 6.1 Loss from discontinued operations, net of income taxes (0.7) Net income $ 5.4 4 Other includes sponsor expense and letter of credit fees.
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 8 of 14 Unaudited Three Months Ended September 30, 2008 In millions Consolidated Television Radio Internet OIBDA $ 214.4 $ 170.0 $ 41.4 $ 3.0 Depreciation and amortization 30.3 25.9 2.3 2.1 Televisa settlement and related charges 2.1 2.1 - - Impairment loss 3,685.0 1,501.4 2,073.6 110.0 Merger- related expenses 0.7 0.7 - - Restructuring, severance and related charges 3.2 2.8 0.4 - Share-based compensation 1.5 1.5 - - Business optimization expense 0.5 0.5 - - Asset write-offs 0.1 0.1 - - Management fee 4.4 4.4 - - Other 5 2.4 1.0 1.4 - Operating loss $ (3,515.8) $ (1,370.4) $ (2,036.3) $ (109.1) Unaudited In millions Three Months Ended September 30, 2008 Operating loss $ (3,515.8) Other (income) expense: Interest expense 197.1 Interest income (5.9) Loss on investments 46.9 Amortization of deferred financing costs 11.6 Equity income in unconsolidated subsidiaries and other (0.9) Loss from continuing operations before income taxes (3,764.6) Benefit for income taxes (892.3) Loss from continuing operations (2,872.3) Loss from discontinued operation, net of income taxes (0.4) Net loss $ (2,872.7) 5 Other includes legal fees, sponsor expense and letter of credit fees.
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 9 of 14 Unaudited Nine Months Ended September 30, 2009 In millions Consolidated Television Radio Internet OIBDA $ 612.9 $ 535.1 $ 77.1 $ 0.7 Depreciation and amortization 95.4 83.3 6.2 5.9 Impairment loss 29.1 2.1 27.0 - Televisa settlement and related charges 9.1 9.1 - - Merger-related expenses 0.1 0.1 - - Restructuring, severance and related charges 13.3 11.4 1.9 - Share-based compensation 5.5 5.5 - - Business optimization expense 10.3 10.3 - - Asset write-offs 10.5 10.5 - - Management fee 15.1 15.1 - - Other 6 0.7 0.9 (0.2) - Operating income (loss) $ 423.8 $ 386.8 $ 42.2 $ (5.2) Unaudited In millions Nine Months Ended September 30, 2009 Operating income $ 423.8 Other (income) expense: Interest expense 515.8 Interest income (23.7) Loss on investments 19.8 Amortization of deferred financing costs 30.3 Loss on sale of receivables 54.0 Interest rate swap income, net (14.8) Loss on extinguishment of debt 3.2 Equity income in unconsolidated subsidiaries and other (3.2) Loss from continuing operations before income taxes (157.6) Benefit for income taxes (82.3) Loss from continuing operations (75.3) Loss from discontinued operations, net of income taxes (2.1) Net loss $ (77.4) 6 Other includes legal fees, sponsor expense and letter o f credit fees.
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 10 of 14 Unaudited Nine Months Ended September 30, 2008 In millions Consolidated Television Radio Internet OIBDA $ 584.6 $ 465.6 $ 114.4 $ 4.6 Depreciation and amortization 89.1 75.7 7.2 6.2 Impairment loss 3,800.1 1,556.9 2,133.2 110.0 Televisa settlement and related charges 12.1 12.1 - - Merger-related expenses 2.2 2.2 - - Restructuring, severance and related charges 14.9 13.1 1.8 - Share-based compensation 4.4 4.4 - - Business optimization expense 5.7 5.7 - - Asset write-offs 1.3 1.3 - - Management fee 11.8 11.8 - - Other 7 4.7 2.8 1.9 - Operating loss $ (3,361.7) $ (1,220.4) $ (2,029.7) $ (111.6) Unaudited In millions Nine Months Ended September 30, 2008 Operating loss $ (3,361.7) Other (income) expense: Interest expense 578.7 Interest income (14.7) Loss on investments 142.6 Amortization of deferred financing costs 35.4 Equity income in unconsolidated subsidiaries and other (2.6) Loss from continuing operations before income taxes (4,101.1) Benefit for income taxes (966.1) Loss from continuing operations (3,135.0) Loss from discontinued operations, net of income taxes (4.6) Net loss $ (3,139.6) 7 Other includes legal fees, sponsor expense, letter of credit fees and a purchase accounting adjustment related to leases.
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 11 of 14 UNIVISION COMMUNICATIONS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share and per-share data) ASSETS September 30, 2009 (Unaudited) December 31, 2008 Current assets: Cash and cash equivalents... $ 343.1 $ 692.8 Short-term investment fund... 26.3 67.6 Accounts receivable, net... 229.4 402.3 Program rights and prepayments... 66.3 19.9 Deferred tax assets... 44.9 43.7 Prepaid expenses and other... 45.2 45.6 Total current assets... 755.2 1,271.9 Property and equipment, net... 610.6 631.7 Intangible assets, net... 4,036.0 4,096.4 Goodwill... 4,885.9 4,886.5 Deferred financing costs... 187.1 207.6 Program rights and prepayments... 8.5 61.3 Investments... 35.2 54.6 Other assets... 30.9 37.6 Total assets... $ 10,549.4 $ 11,247.6 LIABILITIES AND STOCKHOLDER S DEFICIT Current liabilities: Accounts payable and accrued liabilities... $ 169.4 $ 167.3 Deferred advertising revenue... 103.5 94.3 Income taxes payable... 1.2 3.8 Accrued interest... 69.9 78.9 Accrued license fees... 23.4 26.8 Program rights obligations... 9.3 12.9 Interest rate swap liability... 135.2 49.1 Current portion of long-term debt and capital lease obligations... 99.3 391.1 Total current liabilities... 611.2 824.2 Long-term debt... 10,016.4 10,181.3 Capital lease obligations... 34.0 38.5 Program rights obligations... 9.1 10.2 Deferred tax liabilities... 786.7 824.6 Interest rate swap liability... - 193.1 Deferred advertising revenue... 498.1 554.6 Other long-term liabilities... 109.9 120.9 Total liabilities... 12,065.4 12,747.4 Stockholder s deficit: Common stock, $0.01 par value; 100,000 shares authorized in 2009 and 2008; 1,000 shares issued and outstanding at September 30, 2009 and December 31, 2008... - - Additional paid-in-capital... 3,986.5 3,981.0 Accumulated deficit... (5,452.6) (5,375.2) Accumulated other comprehensive loss... (49.9) (105.6) Total stockholder s deficit... (1,516.0) (1,499.8) Total liabilities and stockholder s deficit... $ 10,549.4 $ 11,247.6
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 12 of 14 UNIVISION COMMUNICATIONS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in millions) Three Months Ended September 30, 2009 Three Months Ended September 30, 2008 Net revenue $ 526.8 $ 519.4 Direct operating expenses 167.5 180.7 Selling, general and administrative expenses 144.3 133.2 Impairment loss - 3,685.0 Merger-related expenses - 0.7 Restructuring and related charges 10.4 3.2 Televisa settlement and related charges 2.2 2.1 Depreciation and amortization 29.0 30.3 Operating income (loss) 173.4 (3,515.8) Other expense (income): Interest expense 187.4 197.1 Interest income (13.5) (5.9) Loss on investments - 46.9 Amortization of deferred financing costs 9.5 11.6 Loss on sale of receivables 18.0 - Interest rate swap income, net (17.9) - Loss on extinguishment of debt 0.6 - Equity income in unconsolidated subsidiaries and other (0.8) (0.9) Loss from continuing operations before income taxes (9.9) (3,764.6) Benefit for income taxes (16.0) (892.3) Income (loss) from continuing operations 6.1 (2,872.3) Loss from discontinued operations, net of income taxes (0.7) (0.4) Net income (loss) $ 5.4 $ (2,872.7)
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 13 of 14 UNIVISION COMMUNICATIONS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in millions) Nine Months Ended September 30, 2009 Nine Months Ended September 30, 2008 Net revenue $ 1,456.6 $ 1,527.2 Direct operating expenses 470.5 532.2 Selling, general and administrative expenses 415.3 438.3 Impairment loss 29.1 3,800.1 Merger-related expenses 0.1 2.2 Restructuring and related charges 13.3 14.9 Televisa settlement and related charges 9.1 12.1 Depreciation and amortization 95.4 89.1 Operating income (loss) 423.8 (3,361.7) Other expense (income): Interest expense 515.8 578.7 Interest income (23.7) (14.7) Loss on investments 19.8 142.6 Amortization of deferred financing costs 30.3 35.4 Loss on sale of receivables 54.0 - Interest rate swap income, net (14.8) - Loss on extinguishment of debt 3.2 - Equity income in unconsolidated subsidiaries and other (3.2) (2.6) Loss from continuing operations before income taxes (157.6) (4,101.1) Benefit for income taxes (82.3) (966.1) Loss from continuing operations (75.3) (3,135.0) Loss from discontinued operations, net of income taxes (2.1) (4.6) Net loss $ (77.4) $ (3,139.6)
PRESS RELEASE UNIVISION COMMUNICATIONS INC. Page 14 of 14 UNIVISION COMMUNICATIONS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited and in millions) Nine Months Ended September 30, 2009 Nine Months Ended September 30, 2008 Cash flows from operating activities: Net loss... $ (77.4) $ (3,139.6) Loss from discontinued operation... (2.1) (4.6) Loss from continuing operations... (75.3) (3,135.0) Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities: Depreciation... 57.8 51.1 Amortization of intangible assets... 37.6 38.0 Amortization of deferred financing costs... 30.3 35.4 Deferred income taxes... (81.2) (967.6) Loss on investments... 19.8 142.6 Non-cash advertising revenue... (43.7) - Interest rate swap income, net... (14.8) - Impairment losses... 29.1 3,800.1 Loss on extinguishment of debt... 3.2 - Share-based compensation... 5.5 4.4 Earnings distribution from an equity investment... - 4.0 Other non-cash items... (1.2) (1.0) Changes in assets and liabilities: Accounts receivable, net... 172.9 38.0 Program rights and prepayments... 6.4 (24.4) Prepaid expenses and other... (0.7) 7.4 Accounts payable and accrued liabilities... 7.0 (35.6) Income taxes payable... (4.7) (5.4) Accrued interest... 50.1 (45.1) Accrued license fees... (3.4) (3.5) Program rights obligations... (4.7) 1.5 Deferred advertising revenue... (17.6) 74.1 Other long-term liabilities... 17.7 4.0 Other... (6.7) 4.7 Net cash provided by (used in) operating activities from continuing operations... 183.4 (12.3) Net cash (used) in operating activities from discontinued operation... - (13.1) Net cash provided by (used in) operating activities... 183.4 (25.4) Cash flows from investing activities: Short-term investment fund... 41.3 (371.4) Acquisition of radio station... - (19.1) Proceeds from sale of music business... 10.5 11.9 Proceeds from sale of investments... 2.2 10.4 Capital expenditures... (37.1) (38.2) Other, net... 0.7 1.4 Net cash provided by (used in) investing activities from continuing operations... 17.6 (405.0) Net cash provided by (used in) investing activities from discontinued operation... - - Net cash provided by (used in) investing activities... 17.6 (405.0) Cash flows from financing activities: Proceeds from issuance of long-term debt... 506.9 1,273.4 Deferred financing costs and other debt-related costs... (39.6) - Payments of long-term debt... (1,018.0) (431.9) Net cash (used in) provided by financing activities from continuing operations... (550.7) 841.5 Net cash (used in) provided by financing activities from discontinued operation... - - Net cash (used in) provided by financing activities... (550.7) 841.5 Net (decrease) increase in cash and cash equivalents... (349.7) 411.1 Cash and cash equivalents, beginning of period... 692.8 226.2 Cash and cash equivalents, end of period... $ 343.1 $ 637.3 Supplemental disclosure of cash flow information: Interest paid... $ 437.6 $ 623.6 Income taxes paid... $ 11.3 $ 3.9