Entercom Communications Corp. (NYSE:ETM) today reported financial results for the quarter and year ended December 31, 2008.

Fourth Quarter 2008 Highlights

• Net revenues for the quarter decreased 14% to $104.1 million and station operating expenses decreased 5% to $64.8 million
• Station operating income decreased 25% to $39.3 million
• EBITDA decreased 25% to $35.3 million
• Same station net revenues decreased 14% and same station operating expenses decreased 7%
• Same station operating income decreased 25%
• For the quarter, the Company recorded a non-cash after-tax (before adjustment for the impact of a valuation allowance) intangible impairment charge of $395.2 million
• Adjusted net income per share decreased 20% from $0.41 to $0.33
• Free cash flow decreased 24% to $23.0 million

2008 Annual Highlights

• Net revenues for the year decreased 6% to $438.8 million and station operating expenses decreased 3% to $273.6 million
• Station operating income decreased 12% to $165.2 million
• EBITDA decreased 11% to $145.6 million
• Same station net revenues decreased 7% and same station operating expenses decreased 3%
• Same station operating income decreased 12%
• For the year, the Company recorded non-cash after-tax (before adjustment for the impact of a valuation allowance) intangible impairment charges of $507.3 million
• Adjusted net income per share increased 2% from $1.25 to $1.27
• Free cash flow increased 3% to $94.2 million

David J. Field, President and Chief Executive Officer stated: “In the face of difficult general economic conditions that are adversely impacting advertising revenues, Entercom has taken significant measures to improve our short-term performance and enhance our long term prospects. We have materially reduced expenses, while at the same time increased our investment in various digital and new revenue initiatives. We also are pleased to note that in 2008, Entercom posted a three percent increase in free cash flow and reduced long term debt by $140 million. Finally, as we look to the future, we note that the fundamentals of the radio business remain strong. At a time of unprecedented change in media usage that is severely impairing a number of other media, radio posted an all-time record number of listeners in 2008 and remains the most cost effective major advertising medium in the nation.”

Additional Fourth Quarter Information

During the quarter, the Company reduced its outstanding debt by $41.5 million, including the repurchase of $8.5 million of its Senior Subordinated Notes at a discount. Entercom’s leverage ratio, as defined in its credit agreement, was 5.2x at the end of the period.

During the quarter, the Company recorded a non-cash after-tax (before adjustment for the impact of a valuation allowance) intangible impairment charge of $395.2 million which was applied to nearly all of the Company’s markets. This impairment was taken as result of the Company’s periodic review of its intangible assets and goodwill and reflects an adjustment to the valuation of the Company’s intangible assets due to the continued difficult advertising environment and the depressed stock prices and valuations of public media companies.

During the quarter, the Company repurchased 0.8 million shares of common stock for $0.7 million.

The weighted average diluted shares for the quarter was 36.1 million. As of December 31, 2008, the Company had $4.3 million in cash and cash equivalents, $750.2 million of Senior Debt and $83.5 million of Senior Subordinated Notes.

Additional 2008 Information

During the year, the Company reduced its outstanding debt by $140.0 million, including the repurchase of $66.5 million of its Senior Subordinated Notes at a discount. The Company also completed transactions which hedged the interest rate on approximately 70% of the Company’s floating rate debt.

During the year, the Company recorded non-cash after-tax (before adjustment for the impact of a valuation allowance) intangible impairment charges of $507.3 million.

Free cash flow for the year benefitted from a significant reduction in financing expense (interest expense plus Time Brokerage Agreement (“TBA”) expense). Financing expense for 2008 reflected the full year impact of the Company’s new credit facility, a decrease in interest rates in 2008, as well as the Senior Subordinated Notes repurchases which were funded with lower cost bank debt. TBA expense also declined as the Company completed the acquisition of 14 radio stations from CBS Radio Inc. in the fourth quarter of 2007.

During the year, the Company repurchased 2.1 million shares of common stock for $13.9 million.

Earnings Conference Call and Company Information

Entercom will hold a conference call regarding the quarterly earnings release on February 24, 2009 at 11:00 AM Eastern Time. The public may access the conference call by dialing 888-889-0278 (passcode: Entercom). A replay of the conference call will be available and can be accessed either by dialing 800-229-6273 or by visiting the Company’s website: www.entercom.com.

Investors will have the opportunity to submit questions to the Company regarding the fourth quarter earnings release by emailing their inquiries to questions@Entercom.com. Questions should be sent by 10 minutes prior to the call. The Company will only discuss inquiries made by email during the conference call.

The Company will no longer be providing revenue or expense guidance. For purposes of same station comparisons, 2008 first quarter net revenues were $95.4 million and station operating expenses were $63.7 million. Additional information and a reconciliation of same station results are available on the Company’s website at www.entercom.com.

Entercom Communications Corp. is one of the five largest radio broadcasting companies in the United States, with a nationwide portfolio in excess of 100 stations in 23 markets, including San Francisco, Boston, Seattle, Denver, Portland, Sacramento and Kansas City. Known for developing unique and highly successful, locally programmed stations, Entercom is home to some of radio’s most distinguished brands and compelling personalities. The Company is also the radio broadcast partner of the Boston Red Sox, Boston Celtics, Kansas City Royals, New Orleans Saints and Buffalo Sabres.

Entercom focuses on creating effective integrated marketing solutions for its customers that incorporate the Company’s audio, digital and experiential assets. Additionally, the Company has a long-standing commitment to responsible corporate citizenship and environmental stewardship. Entercom stations play a vital, hands-on role in improving their communities, providing over $100 million in annual support for local charitable organizations.

The Company’s radio stations have received numerous awards, including multiple Edward R. Murrow Awards for excellence in broadcast journalism and National Association of Broadcasters (NAB) Marconi Awards for excellence in radio broadcasting. In 2007, Forbes magazine named Entercom one of America’s “Most Trustworthy Companies.”

For more information, please visit www.entercom.com.

Certain Definitions

All references to per share data, unless stated otherwise, are presented as per diluted share. All references to station operating expenses and corporate general and administrative expenses are exclusive of non-cash compensation expense, unless stated otherwise. All references to shares outstanding, unless stated otherwise, are presented to exclude unvested restricted stock units.

Station operating income consists of operating income (loss) before depreciation and amortization, time brokerage agreement fees (income), corporate general and administrative expenses, non-cash compensation expense (which is otherwise included in station operating expenses), impairment loss and gain or loss on sale or disposition of assets.

EBITDA consists of income (loss) from continuing operations, adjusted to exclude: income taxes (benefit), total other expense, depreciation and amortization, time brokerage agreement fees (income), non-cash compensation expense (which is otherwise included in station operating expenses and corporate G&A expenses), impairment loss and gain or loss on sale or disposition of assets.

Free cash flow consists of operating income (loss): (i) plus depreciation and amortization, non-cash compensation expense (which is otherwise included in station operating expenses and corporate general and administrative expenses), impairment loss and income from discontinued operations before income taxes (benefit), depreciation and amortization expense and impairment loss; and (ii) less net interest expense (excluding amortization of deferred financing costs), gains (loss) on sale of assets, taxes paid and capital expenditures.

Adjusted Net Income consists of net income (loss) adjusted to exclude: (i) income (loss) from discontinued operations before income taxes (benefit); (ii) reported taxes; (iii) gain/loss on sale of assets, derivative instruments and investments; (iv) non-cash compensation expense; (v) other income; (vi) impairment loss; and (vii) gain/loss on early extinguishment of debt. For purposes of comparison, income taxes are reflected at the expected statutory federal and state tax rate of 42% without discrete items of tax.

Adjusted net income per share: includes any dilutive equivalent shares when not anti-dilutive.

Same station operating data is computed by comparing the performance of stations operated by the Company throughout the relevant period to the comparable performance in the prior year’s corresponding period.

Non-GAAP Financial Measures

It is important to note that station operating income, same station net revenues, same station operating expenses, same station operating income, EBITDA, adjusted net income, adjusted net income per share and free cash flow are not measures of performance or liquidity calculated in accordance with generally accepted accounting principles (“GAAP”). Management believes that these measures are useful as a way to evaluate the Company and the means for management to evaluate our radio stations’ performance and operations. Management believes that these measures are useful to an investor in evaluating our performance because they are widely used in the broadcast industry as a measure of a radio company’s operating performance.

Certain adjusted non-GAAP financial measures are presented in this release (e.g., adjusted net income and adjusted net income per share). The adjustments exclude gain/loss on sale of assets, derivative instruments, and investments; non-cash compensation expense, other income, impairment loss and gain/loss on early extinguishment of debt. Management believes these adjusted non-GAAP measures provide useful information to Management and investors by excluding certain income, expenses and gains and losses that may not be indicative of the Company’s core operating and financial results. Similarly, Management believes these adjusted measures are a useful performance measure because certain items included in the calculation of net income (loss) may either mask or exaggerate trends in the Company’s ongoing operating performance. Further, the reconciliations corresponding to these adjusted measures, by identifying the individual adjustments, provide a useful mechanism for investors to consider these adjusted measures with some or all of the identified adjustments.

Management uses these non-GAAP financial measures on an ongoing basis to help track and assess the Company's financial performance. You, however, should not consider non-GAAP measures in isolation or as substitutes for net income (loss), operating income, or any other measure for determining our operating performance that is calculated in accordance with generally accepted accounting principles. These non-GAAP measures are not necessarily comparable to similarly titled measures employed by other companies. The accompanying financial tables provide reconciliations to the nearest GAAP measure of all non-GAAP measures provided in this release.

Note Regarding Forward-Looking Statements

The information in this news release is being widely disseminated in accordance with the Securities and Exchange Commission's Regulation FD.

This news announcement contains certain forward-looking statements that are based upon current expectations and certain unaudited pro forma information that is presented for illustrative purposes only and involves 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 Securities and Exchange Commission. Readers should note that these statements might be impacted by several factors including changes in the economic and regulatory climate and the business of radio broadcasting, in general. The unaudited pro forma information and same station operating data reflect adjustments and are presented for comparative purposes only and do not purport to be indicative of what has occurred or indicative of future operating results or financial position. Accordingly, the Company’s actual performance may differ materially from those stated or implied herein. The Company assumes no obligation to publicly update or revise any unaudited pro forma or forward-looking statements.

Entercom Communications Corp.
Steve Fisher
Executive Vice President-Operations and Chief Financial Officer
610-660-5647