##### Table of Contents



UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
 Washington, D.C.
    20549
  Form 10-Q
  (Mark One)þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended
    June 30, 2007oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission file
    number 33-82114
  
  Spanish Broadcasting System,
    Inc.
 (Exact name of registrant as
    specified in its charter)
  Delaware

13-3827791(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)      2601 South Bayshore Drive, PH II
 Coconut Grove, Florida 33133
 (Address of principal executive
    offices) (Zip Code)
  (305) 441-6901
 (Registrants telephone
    number, including area code)
  (Former name, former address and
    former fiscal year,
 if changed since last
    report)
  þ o
  Rule 12b-2
 o þ o
  Rule 12b-2 o þ
  APPLICABLE
    ONLY TO CORPORATE ISSUERS:




---



##### 



SPANISH
    BROADCASTING SYSTEM, INC.
  INDEX
  PagePART I.
    FINANCIAL INFORMATIONITEM 1.


Financial
    Statements  Unaudited


2Unaudited Condensed
    Consolidated Balance Sheets as of June 30, 2007 and
    December 31, 2006


3Unaudited Condensed
    Consolidated Statements of Operations for the Three- and
    Six-Months Ended June 30, 2007 and 2006


4Unaudited Condensed
    Consolidated Statement of Changes in Stockholders Equity
    and Comprehensive Income for the Six-Months Ended June 30,
    2007


5Unaudited Condensed
    Consolidated Statements of Cash Flows for the Six-Months Ended
    June 30, 2007 and 2006


6Notes to Unaudited
    Condensed Consolidated Financial Statements


7ITEM 2.


Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations


16ITEM 3.


Quantitative and
    Qualitative Disclosures About Market Risk


24ITEM 4.


Controls and
    Procedures


24PART II. OTHER
    INFORMATIONITEM 1.


Legal
    Proceedings


25ITEM 1A.


Risk
    Factors


25ITEM 4.


Submission of
    Matters to a Vote of Security Holders


25ITEM 6.


Exhibits


26EX-31.1 Section 302 Certification of CEOEX-31.2 Section 302 Certification of CFOEX-32.1 Section 906 Certification of CEOEX-32.2 Section 906 Certification of CFO   1




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##### Table of Contents



Special
    Note Regarding Forward-Looking Statements
  Form 10-Q Form 10-K
 2




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##### Table of Contents



PART I.
    FINANCIAL INFORMATION  Item 1.
    Financial
    Statements  Unaudited  SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
 Unaudited
    Condensed Consolidated Balance Sheets  June 30,


December 31,2007


2006(In thousands, except share data)ASSETSCurrent assets:Cash and cash equivalents

$
62,922



66,815Receivables, net of allowance for
    doubtful accounts of $3,921 in 2007 and $4,383 in 2006


37,951



32,142Prepaid expenses and other current
    assets


3,253



3,460Total current assets


104,126



102,417Property and equipment, net of
    accumulated depreciation of $35,964 in 2007 and $33,751 in 2006


39,141



28,022FCC licenses


749,864



749,864Goodwill


32,806



32,806Other intangible assets, net of
    accumulated amortization of $124 in 2007 and $106 in 2006


1,310



1,328Deferred financing costs, net of
    accumulated amortization of $2,306 in 2007 and $1,749 in 2006


5,357



5,914Other assets


1,116



1,634Derivative instruments


9,424



7,755Total assets

$
943,144



929,740LIABILITIES AND
    STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable and accrued
    expenses

$
20,065



18,622Accrued interest


300



394Deferred commitment fee


337



375Unearned revenue


2,986



3,882Other current liabilities


22



22Current portion of the senior
    credit facilities term loan due 2012


3,250



3,250Current portion of other long-term
    debt


426



79Series B cumulative
    exchangeable redeemable preferred stock dividends payable


2,014



2,014Total current liabilities


29,400



28,638Unearned revenue, less current
    portion


1,190



2,064Other long-term liabilities, less
    current portion


154



166Senior credit facilities term loan
    due 2012, less current portion


314,437



316,063Other long-term debt, less current
    portion


7,706



413Non-interest bearing promissory
    note payable due 2009, net of unamortized discount of $2,074 in
    2007 and $2,713 in 2006


16,426



15,787Deferred income taxes


159,805



153,683Total liabilities


529,118



516,814Cumulative exchangeable redeemable
    preferred stock:103/4%
    Series B cumulative exchangeable redeemable preferred
    stock, $0.01 par value, liquidation value $1,000 per share.
    Authorized 280,000 shares; 89,932 shares issued and
    outstanding at June 30, 2007 and December 31, 2006,
    respectively


89,932



89,932Stockholders equity:Series C convertible preferred
    stock, $0.002 par value and liquidation value. Authorized
    600,000 shares; 380,000 shares issued and outstanding
    at June 30, 2007 and December 31, 2006, respectively


1



1Class A common stock,
    $0.0001 par value. Authorized 100,000,000 shares;
    40,277,805 shares issued and outstanding at June 30,
    2007 and December 31, 2006, respectively


4



4Class B common stock,
    $0.0001 par value. Authorized 50,000,000 shares;
    24,503,500 shares issued and outstanding at June 30,
    2007 and December 31, 2006, respectively


2



2Additional paid-in capital


523,261



522,400Accumulated other comprehensive
    income


9,424



7,755Accumulated deficit


(208,598
)


(207,168
)Total stockholders equity


324,094



322,994Total liabilities and
    stockholders equity

$
943,144



929,740    3




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
 Unaudited
    Condensed Consolidated Statements of Operations  Three-Months Ended


Six-Months EndedJune 30,


June 30,2007


2006


2007


2006(In thousands, except per share data)Net revenue

$
47,871



48,841


$
86,808



86,616Operating expenses:Engineering and programming


12,377



12,986



24,671



24,805Selling, general and administrative


20,197



19,727



36,104



36,426Corporate expenses


3,112



3,661



6,715



7,189Depreciation and amortization


1,105



905



2,242



1,832Total operating expenses


36,791



37,279



69,732



70,252(Gain) loss on the sale of assets,
    net of disposal costs


(1
)


8



(1
)


(50,793
)Operating income


11,081



11,554



17,077



67,157Other (expense) income:Interest expense, net


(4,735
)


(4,936
)


(9,424
)


(10,355
)Loss on early extinguishment of debt














(2,997
)Other, net






3



1,960



(23
)Income before income taxes


6,346



6,621



9,613



53,782Income tax expense (benefit)


3,956



4,190



6,209



(2,190
)Net income


2,390



2,431



3,404



55,972Dividends on Series B
    preferred stock


(2,417
)


(2,417
)


(4,834
)


(4,834
)Net (loss) income applicable to
    common stockholders

$
(27
)


14


$
(1,430
)


51,138Basic and diluted net (loss) income
    per common share

$







$
(0.02
)


0.71Weighted average common shares
    outstanding:Basic


72,381



72,381



72,381



72,381Diluted


72,381



72,390



72,381



72,392
    4




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
 Unaudited
    Condensed Consolidated Statement of Changes in
    Stockholders Equity

and Comprehensive Income (Loss) for the Six-Months Ended
    June 30, 2007  Class C


Class A


Class B





Accumulatedpreferred stock


common stock


common stock


Additional


other





TotalNumber of


Par


Number of


Par


Number of


Par


paid-in


comprehensive


Accumulated


stockholdersshares


value


shares


value


shares


value


capital


income


deficit


equity(In thousands, except share data)Balance at December 31, 2006


380,000


$
1



40,277,805


$
4



24,503,500


$
2


$
522,400


$
7,755


$
(207,168
)

$
322,994Stock-based compensation


























861











861Series B preferred stock
    dividends


































(4,834
)


(4,834
)Comprehensive income:Net income


































3,404



3,404Unrealized gain on derivative
    instruments






























1,669







1,669Comprehensive income






































5,073Balance at June 30, 2007


380,000


$
1



40,277,805


$
4



24,503,500


$
2


$
523,261


$
9,424


$
(208,598
)

$
324,094    5




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
 Unaudited
    Condensed Consolidated Statements of Cash Flows  Six-Months EndedJune 30,2007


2006(In thousands)Cash flows from operating
    activities:Net income

$
3,404



55,972Adjustments to reconcile net income
    to net cash provided by operating activities:Loss (gain) on the sale of assets


(1
)


(50,804
)Loss on early extinguishment of debt






2,997Stock-based compensation


861



1,080Depreciation and amortization


2,242



1,832Net barter (income) expense


(174
)


(3
)Provision for doubtful trade
    accounts receivables


553



657Amortization of deferred financing
    costs


557



626Amortization of discount on the
    non-interest bearing promissory note payable


639



396Deferred income taxes


6,122



(2,069
)Decrease (increase) in unearned
    revenue


(1,899
)


15Accretion of the time-value of
    money component related to unearned revenue


125



97Amortization of deferred commitment
    fee


(38
)


(37
)Amortization of other liabilities


(12
)


Changes in operating assets and
    liabilities:Increase in trade receivables


(6,184
)


(2,429
)Decrease (increase) in other
    current assets


165



(697
)Increase in other assets


(517
)


(130
)Increase (decrease) in accounts
    payable and accrued expenses


1,435



(5,261
)Decrease in accrued interest


(128
)


(1,373
)Net cash provided by operating
    activities


7,150



869Cash flows from investing
    activities:Proceeds from sale of radio
    stations, net of disposal costs






64,751Purchases of property and equipment


(2,428
)


(4,305
)Acquisition of a building and its
    related building improvements


(1,982
)


Proceeds from an insurance recovery


15



Acquisition of television stations
    and related equipment






(18,534
)Net cash (used in) provided by
    investing activities


(4,395
)


41,912Cash flows from financing
    activities:Payment of senior credit facility
    term loan 2012


(1,626
)


(1,625
)Payment of senior credit facility
    term loan due 2013 (including prepayment premium of
    $1.0 million)






(101,000
)Payment of Series B preferred
    stock cash dividends


(4,834
)


(4,834
)Payments of other long-term debt


(188
)


(318
)Payments of defered financing costs






(352
)Net cash used in financing
    activities


(6,648
)


(108,129
)Net decrease in cash and cash
    equivalents


(3,893
)


(65,348
)Cash and cash equivalents at
    beginning of year


66,815



125,156Cash and cash equivalents at end of
    year

$
62,922



59,808Supplemental cash flows information:Interest paid

$
9,934



12,403Income taxes paid, net






389Noncash investing and financing
    activities:Ten-year promissory note issued for
    the acquisition of a building

$
7,650



Unrealized gain on derivative
    instruments


1,669



7,707Unearned revenue (advertising given
    as consideration for acquisition of television stations)






5,338Non-interest bearing promissory
    note payable issued for the acquisition of television stations
    and related equipment






14,778    6




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES



NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  1.
    Basis of
    Presentation  Form 10-Q Rule 10-01 Regulation S-X. Form 10-K.
    2.
    Acquisition
    of a Facility and Related Financing         7




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      3.
    Stockholders
    Equity  (a)
    Series C
    Convertible Preferred Stock          (b)
    Class A
    and B Common Stock  3 4
 8




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  (c)
    Warrant    (d)
    Share-based
    Compensation Plans  2006
    Omnibus Equity Compensation Plan
    1999
    Stock Option Plans
    (e)
    Stock-Based
    Compensation Expense    Three-Months Ended


Six-Months EndedJune 30,


June 30,2007


2006


2007


2006Engineering and programming
    expenses

$
189



176


$
377



356Selling, general and
    administrative expenses


33



87



69



174Corporate expenses


197



250



415



550Total stock-based compensation
    expense

$
419



513


$
861



1,080
    9




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Stock
    Options
      WeightedWeighted





AverageAverage


Aggregate


RemainingExercise


Intrinsic


ContractualShares


Price


Value


Life (Years)Outstanding at December 31,
    2006


3,029


$
11.33Granted






Exercised






Forfeited


(141
)


10.55Outstanding at June 30, 2007


2,888


$
11.36


$




5.4Exercisable at June 30, 2007


2,494


$
11.72


$




5.1     WeightedAverageWeighted


Remaining





WeightedAverage


Contractual





AverageUnvested


Exercise


Life


Number


ExerciseRange of Exercise Prices

Vested Options


Options


Price


(Years)


Exercisable


Price$ 0  4.99


200






$
4.80



6.4



200


$
4.805  9.99


1,436



340



8.72



6.2



1,436



8.6910  14.99


148



54



10.77



7.2



148



10.8115  19.99






















20  24.99


710







20.00



2.3



710



20.002,494



394


$
11.36



5.4



2,494


$
11.72   Nonvested
    Shares
   10




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    WeightedAverage Grant-Date Fair ValueShares


(per Share)Nonvested at December 31, 2006






Awarded


72


$
4.30Vested






Forfeited






Nonvested at June 30, 2007


72


$
4.30   4.
    Basic and
    Diluted Net (Loss) Income Per Common Share      5.
    Operating
    Segments  Disclosures about Segments of an Enterprise and Related
    Information
  Three-Months Ended





Six-Months EndedJune 30,


Change


June 30,


Change2007


2006


$


%


2007


2006


$


%Net revenue:Radio

$
45,256



47,443



(2,187
)


(5
)%

$
82,088



84,787



(2,699
)


(3
)%Television


2,615



1,398



1,217



87
%


4,720



1,829



2,891



158
%Consolidated

$
47,871



48,841



(970
)


(2
)%

$
86,808



86,616



192



0
%Engineering and programming
    expenses:Radio

$
9,068



8,320



748



9
%

$
17,910



16,756



1,154



7
%Television


3,309



4,666



(1,357
)


(29
)%


6,761



8,049



(1,288
)


(16
)%Consolidated

$
12,377



12,986



(609
)


(5
)%

$
24,671



24,805



(134
)


(1
)%
 11




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##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Three-Months Ended





Six-Months EndedJune 30,


Change


June 30,


Change2007


2006


$


%


2007


2006


$


%Selling, general and
    administrative expenses:Radio

$
18,494



17,790



704



4
%

$
32,717



32,342



375



1
%Television


1,703



1,937



(234
)


(12
)%


3,387



4,084



(697
)


(17
)%Consolidated

$
20,197



19,727



470



2
%

$
36,104



36,426



(322
)


(1
)%Operating income (loss) before
    depreciation and amortization and (gain) loss on sales of
    assets, net:Radio

$
17,694



21,333



(3,639
)


(17
)%

$
31,461



35,689



(4,228
)


(12
)%Television


(2,397
)


(5,205
)


2,808



(54
)%


(5,428
)


(10,304
)


4,876



(47
)%Corporate


(3,112
)


(3,661
)


549



(15
)%


(6,715
)


(7,189
)


474



(7
)%Consolidated

$
12,185


$
12,467



(282
)


(2
)%

$
19,318


$
18,196



1,122



6
%Depreciation and
    amortization:Radio

$
711



605



106



18
%

$
1,437



1,223



214



17
%Television


128



73



55



75
%


270



130



140



108
%Corporate


266



227



39



17
%


535



479



56



12
%Consolidated

$
1,105



905



200



22
%

$
2,242



1,832



410



22
%(Gain) loss on sale of assets,
    net:Radio

$
(1
)


8



(9
)


(113
)%

$
(1
)


(50,793
)


50,792



(100
)%Television














0
%














0
%Corporate














0
%














0
%Consolidated

$
(1
)


8



(9
)


(113
)%

$
(1
)


(50,793
)


50,792



(100
)%Operating income
    (loss):Radio

$
16,984



20,720



(3,736
)


(18
)%

$
30,025



85,259



(55,234
)


(65
)%Television


(2,525
)


(5,278
)


2,753



(52
)%


(5,698
)


(10,434
)


4,736



(45
)%Corporate


(3,378
)


(3,888
)


510



(13
)%


(7,250
)


(7,668
)


418



(5
)%Consolidated

$
11,081


$
11,554



(473
)


(4
)%

$
17,077


$
67,157



(50,080
)


(75
)%Capital expenditures:Radio

$
507



994



(487
)


(49
)%

$
1,016



1,523



(507
)


(33
)%Television


392



923



(531
)


(58
)%


2,025



2,441



(416
)


(17
)%Corporate


1,122



220



902



410
%


1,369



341



1,028



301
%Consolidated

$
2,021



2,137



(116
)


(5
)%

$
4,410



4,305



105



2
%   June 30,


December 31,2007


2006Total Assets:Radio

$
864,590



863,236Television


59,289



49,376Corporate


19,265



17,128Consolidated

$
943,144



929,740  12




---



##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  6.
    Comprehensive
    Income    Three-Months Ended


Six-Months EndedJune 30,


June 30,2007


2006


2007


2006Net income

$
2,390



2,431


$
3,404



55,972Other comprehensive income:Unrealized gain on derivative
    instruments


3,555



3,174



1,669



7,707Total comprehensive income

$
5,945



5,605


$
5,073



63,679
   7.
    New
    Accounting Pronouncements  Fair
    Value Measurements
  The Fair Value Option for Financial Assets and
    Liabilities  Including an Amendment of FASB Statement
    No. 115
  8.
    Income
    Taxes  Goodwill and Other Intangible Assets
  Accounting for Uncertainty
    in Income Taxes-an interpretation of FASB Statement
    No. 109 Accounting for
    Income Taxes,
     13




---



##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    9.
    Litigation    Amigo
    Broadcasting Litigation
        Wolf,
    et al., Litigation
  and/or successors-in-interest
   14




---



##### Table of Contents



SPANISH
    BROADCASTING SYSTEM, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Section 10b-5
     15




---



##### Table of Contents



Item 2.  Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  Overview
  LaMusica.com, Mega.tv,
  WSBS-TV WDLP-TV) Spanish-language Spanish-language
  Spanish-language English-language Spanish-language
   16




---



##### Table of Contents



Comparison
    Analysis of the Operating Results for the Three-Months Ended
    June 30, 2007 and 2006
    Three-Months EndedJune 30,


Change2007


2006


$


%Net revenue:Radio

$
45,256



47,443



(2,187
)


(5
)%Television


2,615



1,398



1,217



87
%Consolidated

$
47,871



48,841



(970
)


(2
)%Engineering and programming
    expenses:Radio

$
9,068



8,320



748



9
%Television


3,309



4,666



(1,357
)


(29
)%Consolidated

$
12,377



12,986



(609
)


(5
)%Selling, general and
    administrative expenses:Radio

$
18,494



17,790



704



4
%Television


1,703



1,937



(234
)


(12
)%Consolidated

$
20,197



19,727



470



2
%Operating income (loss) before
    depreciation and amortization and (gain) loss on sales of
    assets, net:Radio

$
17,694



21,333



(3,639
)


(17
)%Television


(2,397
)


(5,205
)


2,808



(54
)%Corporate


(3,112
)


(3,661
)


549



(15
)%Consolidated

$
12,185



12,467



(282
)


(2
)%Depreciation and
    amortization:Radio

$
711



605



106



18
%Television


128



73



55



75
%Corporate


266



227



39



17
%Consolidated

$
1,105



905



200



22
%(Gain) loss on sale of assets,
    net:Radio

$
(1
)


8



(9
)


(113
)%Television














0
%Corporate














0
%Consolidated

$
(1
)


8



(9
)


(113
)%Operating income
    (loss):Radio

$
16,984



20,720



(3,736
)


(18
)%Television


(2,525
)


(5,278
)


2,753



(52
)%Corporate


(3,378
)


(3,888
)


510



(13
)%Consolidated

$
11,081



11,554



(473
)


(4
)%  17




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##### Table of Contents



Three Months EndedJune 30,


Change2007


2006


$


%(In thousands)Net revenue

$
47,871



48,841



(970
)


(2
)%Engineering and programming
    expenses


12,377



12,986



(609
)


(5
)%Selling, general and
    administrative expenses


20,197



19,727



470



2
%Corporate expenses


3,112



3,661



(549
)


(15
)%Depreciation and amortization


1,105



905



200



22
%(Gain) loss on sale of assets, net
    of disposal costs


(1
)


8



(9
)


(113
)%Operating income

$
11,081



11,554



(473
)


(4
)%Interest expense, net


(4,735
)


(4,936
)


201



(4
)%Other income, net






3



(3
)


(100
)%Income tax expense


3,956



4,190



(234
)


(6
)%Net income

$
2,390



2,431



(41
)


(2
)%   Net Revenue.
  Engineering and Programming Expenses.
  Selling, General and Administrative
    Expenses.
  Corporate Expenses.
  Operating Income.
 18




---



##### Table of Contents



Interest Expense, net.
  Income Taxes.
  Net Income.
 19




---



##### Table of Contents



Comparison
    Analysis of the Operating Results for the Six-Months Ended
    June 30, 2007 and 2006
    Six-Months EndedJune 30,


Change2007


2006


$


%Net revenue:Radio

$
82,088



84,787



(2,699
)


(3
)%Television


4,720



1,829



2,891



158
%Consolidated

$
86,808



86,616



192



0
%Engineering and programming
    expenses:Radio

$
17,910



16,756



1,154



7
%Television


6,761



8,049



(1,288
)


(16
)%Consolidated

$
24,671



24,805



(134
)


(1
)%Selling, general and
    administrative expenses:Radio

$
32,717



32,342



375



1
%Television


3,387



4,084



(697
)


(17
)%Consolidated

$
36,104



36,426



(322
)


(1
)%Operating income (loss) before
    depreciation and amortization and gain on sales of assets,
    net:Radio

$
31,461



35,689



(4,228
)


(12
)%Television


(5,428
)


(10,304
)


4,876



(47
)%Corporate


(6,715
)


(7,189
)


474



(7
)%Consolidated

$
19,318



18,196



1,122



6
%Depreciation and
    amortization:Radio

$
1,437



1,223



214



17
%Television


270



130



140



108
%Corporate


535



479



56



12
%Consolidated

$
2,242



1,832



410



22
%Gain on sale of assets,
    net:Radio

$
(1
)


(50,793
)


50,792



(100
)%Television














0
%Corporate














0
%Consolidated

$
(1
)


(50,793
)


50,792



(100
)%Operating income
    (loss):Radio

$
30,025



85,259



(55,234
)


(65
)%Television


(5,698
)


(10,434
)


4,736



(45
)%Corporate


(7,250
)


(7,668
)


418



(5
%)Consolidated

$
17,077



67,157



(50,080
)


(75
%)  20




---



##### Table of Contents



Six Months EndedJune 30,


Change2007


2006


$


%(In thousands)Net revenue

$
86,808



86,616



192



0
%Engineering and programming
    expenses


24,671



24,805



(134
)


(1
)%Selling, general and
    administrative expenses


36,104



36,426



(322
)


(1
)%Corporate expenses


6,715



7,189



(474
)


(7
)%Depreciation and amortization


2,242



1,832



410



22
%Gain on sale of assets, net of
    disposal costs


(1
)


(50,793
)


50,792



(100
)%Operating income

$
17,077



67,157



(50,080
)


(75
)%Interest expense, net


(9,424
)


(10,355
)


931



(9
)%Loss on early extinguishment of
    debt






(2,997
)


2,997



(100
)%Other income (expense), net


1,960



(23
)


1,983



(8622
)%Income tax expense (benefit)


6,209



(2,190
)


8,399



(384
)%Net income

$
3,404



55,972



(52,568
)


(94
)%   Net Revenue.
  Engineering and Programming Expenses.
  Selling, General and Administrative
    Expenses.
  Gain on Sale of Assets, net. KZAB-FM KZBA-FM,
  Operating Income.
 21




---



##### Table of Contents



Interest Expense, net.
  Loss on Early Extinguishment of Debt.
  Other Income (Expense).
  Income Taxes. KZAB-FM KZBA-FM.
  Net Income.
  Liquidity
    and Capital Resources
      
    the demand for advertising within the broadcasting industry and
    economic conditions in general will not deteriorate in any
    material respect;
    we will continue to successfully implement our business
    strategy; and
    we will not incur any material unforeseen liabilities, including
    environmental liabilities and legal judgments.       22




---



##### Table of Contents



Six Months EndedJune 30,


Change2007


2006


$(In thousands)Capital expenditures:Radio

$
1,016



1,523



(507
)Television


2,025



2,441



(416
)Corporate


1,369



341



1,028Consolidated

$
4,410



4,305



105Net cash flows provided by
    operating activities

$
7,150



869



6,281Net cash flows (used in) provided
    by investing activities


(4,395
)


41,912



(46,307
)Net cash flows used in financing
    activities


(6,648
)


(108,129
)


101,481Net decrease in cash and cash
    equivalents

$
(3,893
)


(65,348
)   Net Cash Flows Provided by Operating
    Activities.
  Net Cash Flows (Used in) Provided by Investing
    Activities. KZAB-FM KZBA-FM,
  Net Cash Flows Used In Financing
    Activities.
  Recent
    Developments
  Acquisition
    of a Facility and Related Financing
     23




---



##### Table of Contents



Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk  Form 10-K
  Item 4.
    Controls
    and Procedures  Evaluation Of Disclosure Controls And
    Procedures. Rule 13a-15(e)
  Changes In Internal Control Over Financial
    Reporting.
 24




---



##### Table of Contents



PART II 
    OTHER INFORMATION  Item 1.
    Legal
    Proceedings  Form 10-Q
 Item 1A.  Risk
    Factors  Form 10-Q, Form 10-K Form 10-K and/or
  Item 4.
    Submission
    of Matters to a Vote of Security Holders      Votes Against/Directors

Votes For


WithheldRaúl Alarcón, Jr.


259,554,854



6,875,090Pablo Raúl Alarcón,
    Sr.


255,079,839



11,350,105Antonio S. Fernandez


264,516,431



1,913,513Jose A. Villamil


264,974,707



1,455,237Jason L. Shrinsky


261,190,415



5,239,529    25




---



##### Table of Contents



Item 6.
    Exhibits  (a)
    Exhibits  Regulation S-K,
  ExhibitNumber



Exhibit Description3
.1



Third Amended and Restated
    Certificate of Incorporation of Spanish Broadcasting System,
    Inc. (the Company), dated September 29, 1999
    (incorporated by reference to the Companys 1999
    Registration Statement on
    Form S-1
    (Commission File
    No. 333-85499)
    (the 1999 Registration Statement)) (Exhibit A
    to this exhibit is incorporated by reference to the
    Companys Current Report on
    Form 8-K,
    dated March 25, 1996 (the 1996 Current Report).3
.2



Certificate of Amendment to the
    Third Amended and Restated Certificate of Incorporation of the
    Company, dated September 29, 1999 (incorporated by
    reference to Exhibit 3.2 of the Companys 1999
    Registration Statement).3
.3



Amended and Restated By-Laws of
    the Company (incorporated by reference to Exhibit 3.3 of
    the Companys 1999 Registration Statement).3
.4



Certificate of Elimination of
    141/4% Senior
    Exchangeable Preferred Stock, Series A of the Company,
    dated October 28, 2003 (incorporated by reference to
    Exhibit 3.3 of the Companys Quarterly Report on
    Form 10-Q,
    dated November 14, 2003 (the 11/14/03 Quarterly
    Report)).4
.1



Article V of the Third
    Amended and Restated Certificate of Incorporation of the
    Company, dated September 29, 1999 (incorporated by
    reference to Exhibit 3.1 of the Companys 1999
    Registration Statement).4
.2



Certificate of Designations dated
    October 29, 2003 Setting Forth the Voting Power,
    Preferences and Relative, Participating, Optional and Other
    Special Rights and Qualifications, Limitations and Restrictions
    of the 10 3/4% Series A Cumulative Exchangeable Redeemable
    Preferred Stock of Spanish Broadcasting System, Inc.
    (incorporated by reference to Exhibit 4.1 of the
    Companys 11/14/03 Quarterly Report).4
.3



Certificate of Designations dated
    October 29, 2003 Setting Forth the Voting Power,
    Preferences and Relative, Participating, Optional and Other
    Special Rights and Qualifications, Limitations and Restrictions
    of the 10 3/4% Series B Cumulative Exchangeable Redeemable
    Preferred Stock of Spanish Broadcasting System, Inc.
    (incorporated by reference to Exhibit 4.2 of the
    Companys 11/14/03 Quarterly Report).4
.4



Indenture dated June 29, 1994
    among the Company, IBJ Schroder Bank &
    Trust Company, as Trustee, the Guarantors named therein and
    the Purchasers named therein (incorporated by reference to
    Exhibit 4.1 of the Companys 1994 Registration
    Statement on
    Form S-4
    (the 1994 Registration Statement).4
.5



First Supplemental Indenture dated
    as of March 25, 1996 to the Indenture dated as of
    June 29, 1994 among the Company, the Guarantors named
    therein and IBJ Schroder Bank & Trust Company, as
    Trustee (incorporated by reference to the 1996 Current Report).4
.6



Second Supplemental Indenture
    dated as of March 1, 1997 to the Indenture dated as of
    June 29, 1994 among the Company, the Guarantors named
    therein and IBJ Schroder Bank & Trust Company, as
    Trustee (incorporated by reference to the 1996 Current Report).4
.7



Supplemental Indenture dated as of
    October 21, 1999 to the Indenture dated as of June 29,
    1994 among the Company, the Guarantors named therein and IBJ
    Schroder Bank & Trust Company, as Trustee
    (incorporated by reference to the Companys 1999
    Registration Statement).4
.8



Indenture with respect to
    95/8% Senior
    Subordinated Notes due 2009 with The Bank of New York as
    Trustee, dated November 2, 1999 (incorporated by reference
    to the Current Report on
    Form 8-K
    dated November 2, 1999 (the 1999 Current
    Report)).4
.9



Indenture with respect to
    95/8% Senior
    Subordinated Notes due 2009 with the Bank of New York as
    Trustee, dated June 8, 2001 (incorporated by reference to
    the Companys Registration Statement on
    Form S-3,
    filed on June 25, 2001 (the 2001
    Form S-3).4
.10



Form of stock certificate for the
    Class A common stock of the Company (incorporated by
    reference to the Companys 1999 Registration Statement). 26




---



##### Table of Contents



ExhibitNumber



Exhibit Description4
.11



Certificate of Elimination of
    141/4%
    of Senior Exchangeable Preferred Stock, Series A of the
    Company, dated October 28, 2003 (incorporated by reference
    to Exhibit 3.3 of the Companys Quarterly Report on
    Form 10-Q
    filed November 14, 2003).4
.12



Certificate of Designation Setting
    Forth the Voting Power, Preferences and Relative, Participating,
    Optional and Other Special Rights and Qualifications,
    Limitations and Restrictions of the Series C Convertible
    Preferred Stock of the Company (Certificate of Designation
    of Series C Preferred Stock) (incorporated by
    reference to Exhibit 4.1 of the Companys Current
    Report on
    Form 8-K
    filed on December 27, 2004).4
.13



Certificate of Correction to
    Certificate of Designation of Series C Preferred Stock of
    the Company dated January 7, 2005 (incorporated by
    reference to Exhibit 4.13 of the Companys Annual
    Report filed on
    Form 10-K
    for the fiscal year 2004).14
.1



Code of Business Conduct and
    Ethics (incorporated by reference to Exhibit 14.1 of the
    Companys 2004
    Form 10-K).31
.1



Chief Executive Officers
    Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002.31
.2



Chief Financial Officers
    Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002.32
.1



Chief Executive Officers
    Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.32
.2



Chief Financial Officers
    Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.  27




---



##### Table of Contents



SIGNATURES
      By:
    /s/  JOSEPH
    A. GARCÍA   Executive Vice President, Chief
 Financial Officer and Secretary (principal
 financial and accounting officer and duly
 authorized officer of the registrant)
  Date:
    August 8, 2007
 28




---



##### Table of Contents



EXHIBIT INDEX
  ExhibitNumber



Exhibit Description3
.1



Third Amended and Restated
    Certificate of Incorporation of Spanish Broadcasting System,
    Inc. (the Company), dated September 29, 1999
    (incorporated by reference to the Companys 1999
    Registration Statement on
    Form S-1
    (Commission File
    No. 333-85499)
    (the 1999 Registration Statement)) (Exhibit A
    to this exhibit is incorporated by reference to the
    Companys Current Report on
    Form 8-K,
    dated March 25, 1996 (the 1996 Current Report).3
.2



Certificate of Amendment to the
    Third Amended and Restated Certificate of Incorporation of the
    Company, dated September 29, 1999 (incorporated by
    reference to Exhibit 3.2 of the Companys 1999
    Registration Statement).3
.3



Amended and Restated By-Laws of
    the Company (incorporated by reference to Exhibit 3.3 of
    the Companys 1999 Registration Statement).3
.4



Certificate of Elimination of
    141/4% Senior
    Exchangeable Preferred Stock, Series A of the Company,
    dated October 28, 2003 (incorporated by reference to
    Exhibit 3.3 of the Companys Quarterly Report on
    Form 10-Q,
    dated November 14, 2003 (the 11/14/03 Quarterly
    Report)).4
.1



Article V of the Third
    Amended and Restated Certificate of Incorporation of the
    Company, dated September 29, 1999 (incorporated by
    reference to Exhibit 3.1 of the Companys 1999
    Registration Statement).4
.2



Certificate of Designations dated
    October 29, 2003 Setting Forth the Voting Power,
    Preferences and Relative, Participating, Optional and Other
    Special Rights and Qualifications, Limitations and Restrictions
    of the 10 3/4% Series A Cumulative Exchangeable Redeemable
    Preferred Stock of Spanish Broadcasting System, Inc.
    (incorporated by reference to Exhibit 4.1 of the
    Companys 11/14/03 Quarterly Report).4
.3



Certificate of Designations dated
    October 29, 2003 Setting Forth the Voting Power,
    Preferences and Relative, Participating, Optional and Other
    Special Rights and Qualifications, Limitations and Restrictions
    of the 10 3/4% Series B Cumulative Exchangeable Redeemable
    Preferred Stock of Spanish Broadcasting System, Inc.
    (incorporated by reference to Exhibit 4.2 of the
    Companys 11/14/03 Quarterly Report).4
.4



Indenture dated June 29, 1994
    among the Company, IBJ Schroder Bank &
    Trust Company, as Trustee, the Guarantors named therein and
    the Purchasers named therein (incorporated by reference to
    Exhibit 4.1 of the Companys 1994 Registration
    Statement on
    Form S-4
    (the 1994 Registration Statement).4
.5



First Supplemental Indenture dated
    as of March 25, 1996 to the Indenture dated as of
    June 29, 1994 among the Company, the Guarantors named
    therein and IBJ Schroder Bank & Trust Company, as
    Trustee (incorporated by reference to the 1996 Current Report).4
.6



Second Supplemental Indenture
    dated as of March 1, 1997 to the Indenture dated as of
    June 29, 1994 among the Company, the Guarantors named
    therein and IBJ Schroder Bank & Trust Company, as
    Trustee (incorporated by reference to the 1996 Current Report).4
.7



Supplemental Indenture dated as of
    October 21, 1999 to the Indenture dated as of June 29,
    1994 among the Company, the Guarantors named therein and IBJ
    Schroder Bank & Trust Company, as Trustee
    (incorporated by reference to the Companys 1999
    Registration Statement).4
.8



Indenture with respect to
    95/8% Senior
    Subordinated Notes due 2009 with The Bank of New York as
    Trustee, dated November 2, 1999 (incorporated by reference
    to the Current Report on
    Form 8-K
    dated November 2, 1999 (the 1999 Current
    Report)).4
.9



Indenture with respect to
    95/8% Senior
    Subordinated Notes due 2009 with the Bank of New York as
    Trustee, dated June 8, 2001 (incorporated by reference to
    the Companys Registration Statement on
    Form S-3,
    filed on June 25, 2001 (the 2001
    Form S-3).4
.10



Form of stock certificate for the
    Class A common stock of the Company (incorporated by
    reference to the Companys 1999 Registration Statement).4
.11



Certificate of Elimination of
    141/4%
    of Senior Exchangeable Preferred Stock, Series A of the
    Company, dated October 28, 2003 (incorporated by reference
    to Exhibit 3.3 of the Companys Quarterly Report on
    Form 10-Q
    filed November 14, 2003).




---



##### Table of Contents



ExhibitNumber



Exhibit Description4
.12



Certificate of Designation Setting
    Forth the Voting Power, Preferences and Relative, Participating,
    Optional and Other Special Rights and Qualifications,
    Limitations and Restrictions of the Series C Convertible
    Preferred Stock of the Company (Certificate of Designation
    of Series C Preferred Stock) (incorporated by
    reference to Exhibit 4.1 of the Companys Current
    Report on
    Form 8-K
    filed on December 27, 2004).4
.13



Certificate of Correction to
    Certificate of Designation of Series C Preferred Stock of
    the Company dated January 7, 2005 (incorporated by
    reference to Exhibit 4.13 of the Companys Annual
    Report filed on
    Form 10-K
    for the fiscal year 2004).14
.1



Code of Business Conduct and
    Ethics (incorporated by reference to Exhibit 14.1 of the
    Companys 2004
    Form 10-K).31
.1



Chief Executive Officers
    Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002.31
.2



Chief Financial Officers
    Certification pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002.32
.1



Chief Executive Officers
    Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.32
.2



Chief Financial Officers
    Certification pursuant to 18 U.S.C. Section 1350, as
    adopted pursuant to Section 906 of the Sarbanes-Oxley Act
    of 2002.