Entercom Communications Corp. 2001 Financial Guidance

Business Wire, Feb 5, 2001

Business Editors

BALA CYNYWD, Pa.--(BUSINESS WIRE)--Feb. 5, 2001

Entercom Communications Corp. is providing the following guidance to investors for 2001. In light of the adoption of Regulation FD by the Securities and Exchange Commission, the Company is providing this guidance in order to widely disseminate the Company's outlook for the upcoming year.

Entercom will hold a conference call regarding this release on Monday, February 5, 2001, at 5 P.M. Eastern Time. The public may access the conference call by dialing 712-257-0400. A replay of the conference call will be available through February 10, 2001, by dialing 402-220-9698. A webcast of the conference call will be available beginning the following day and available throughout the month of February at the Company's website: www.Entercom.com.

         Entercom Communications Corp. 2001 Financial Guidance

                                            (in millions)
                                Q1      Q2      Q3      Q4      2001

Net Revenue                    72.8   103.0   101.7    101.2    378.7
Operating Expense              48.2    58.5    57.0     54.8    218.5
                               ----    ----    ----     ----    -----
Broadcast Cash Flow            24.6    44.5    44.7     46.4    160.2
Corporate G & A                 3.2     3.3     3.4      3.5     13.4
                                ---     ---     ---      ---     ----
EBITDA                         21.4    41.2    41.3     42.9    146.8
Interest                       10.4    10.1     9.7      9.4     39.6
Depreciation
 & Amortization                11.6    11.7    11.8     11.9     47.0
Equity Loss from
 Unconsolidated
 Affiliates                     1.4     1.7     1.7      1.7      6.5
Implied Loss on
 Hedging Instruments            1.5                               1.5

Income before Taxes            (3.5)   17.7    18.1     19.9     52.2

Income Taxes (benefit)         (1.4)    7.1     7.2      8.0     20.9

Net Income     (loss)          (2.1)   10.6    10.9     11.9     31.3

Average Common Shares
  Outstanding - basic          45.3    45.4    45.4     45.5     45.4
Average Common Shares
  Outstanding - diluted        45.6    45.7    46.0     46.2     45.9

Per Share Amounts (Diluted):
     Net Income   (loss)     ($0.05)  $0.23   $0.24    $0.26    $0.68
     After-tax Cash Flow      $0.33   $0.59   $0.60    $0.62    $2.15

      Items included ATCF above:
     Non-Cash Compensation       .2      .2      .2       .2       .8
     Deferred Taxes             3.5     3.6     3.8      3.8     14.7

The company believes that Net Revenue, Broadcast Cash Flow and After Tax Cash Flow ("ATCF") are the most relevant metrics for the Company's performance. ATCF is defined as income (loss) before extraordinary items plus the following: depreciation, amortization, non-cash compensation expense, deferred tax provision, loss in unconsolidated affiliates (net of current tax) and elimination of any gains or losses on assets, investments or hedging instruments (net of current tax).

The Equity Loss From Unconsolidated Affiliates is the Company's anticipated share of equity losses from LMIV, a startup venture providing internet services to the Company and the radio industry. The Implied Loss on Hedging Instruments relates to the newly effective accounting standards (FASB 133). This new accounting standard calls for valuing collars, swaps or derivative instruments on the Company's variable rate senior debt at the end of each period as if they were to be undone. The estimate reflects this non-cash charge to the statement of operations in the first quarter based on recent declines in interest rates, with any future changes depending on further changes in interest rates.

These estimates are based on the Company's current holdings of 95 radio stations and are also based on current accounting standards, including amortization of goodwill and FCC licenses. Of the annual depreciation and amortization expense shown above, the Company anticipates recording $33 million in amortization of FCC licenses and goodwill in 2001. The Financial Accounting Standards Board ("FASB") is considering the elimination of these charges to financial statements, effectively increasing reported earnings per share. This change, if adopted by the FASB, could become effective in the second half of 2001.

Entercom owns 95 radio stations in 18 markets. As of December 31, 2000, the Company had 45.2 million shares of Common Stock outstanding. Shares of Entercom Communications Corp. are traded on the New York Stock Exchange under the symbol ETM.

This news announcement contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Additional information and key risks are described in the Company's filings on forms 8-K, 10-Q and 10-K with the U.S. Securities and Exchange Commission. Readers should note that these statements may be impacted by several factors including changes in the economic and regulatory climate and the business of radio broadcasting, in general. Accordingly, the Company's actual performance may differ materially from those stated or implied herein. Entercom assumes no obligation to publicly update or revise any forward-looking statements.