LOS ANGELES, May 3, 2016
/PRNewswire/ --Live Nation Entertainment (NYSE: LYV) today released
financial results for the three months ended March 31,
2016.
Live Nation has continued growing its business in 2016, with
first quarter revenue up 10% and AOI up 7% on a constant currency
basis, with strong operating performance across the three divisions
- concerts, advertising and ticketing. More
importantly, at four months into the year we have enough
information from leading indicators to be confident that we are on
track to deliver record top line and bottom line results in 2016 as
we continue building global market share in all our businesses.
We have built the industry's most scalable and unparalleled live
platform, connecting over 500 million fans to that magical two-hour
event each year. Concerts are the flywheel for our
high-margin on-site retail, sponsorship & advertising, and
ticketing businesses, and this year will be another step forward in
the company delivering strong long-term growth.
Concerts Global Platform Growth
Starting with the concerts business, ticket sales for shows this
year are pacing 10% ahead of last year through April 29th, with over 35 million
tickets already sold. We continue to be the world's leading
promoter with 21 of the top 25 global tours in 2016, including
Beyoncé, Coldplay, Guns N' Roses, Rihanna and Drake, driving a 13%
increase in confirmed stadium, arena and amphitheater shows for the
year, as of the end of April.
Along with attendance growth, we also expect to continue growing
our high-margin on-site revenue this year as we more effectively
target specific customer segments with new product offerings,
notably at the high end, and with our upgraded Live Nation app that
will enable ordering from the seat at many of our
amphitheaters.
Festivals continue to have strong appeal for fans and artists
and we are leveraging our leadership position with 78 festivals and
7 million fans to build our fan base while also creating a powerful
platform for monetizing fans across advertising, on-site sales, and
ticketing.
At the same time, we are expanding our global footprint, most
recently adding South Africa as
the 37th country we promote in, and our acquisition of
Founders Entertainment which builds our presence in New York and adds Governors Ball to our global
festival portfolio.
Our Artist Nation division continues to attract managers and
their artist clients organically and through targeted acquisitions,
feeding our concerts business.
Sponsorship & Advertising Delivered Continued
Growth
The sponsorship & advertising business continued its strong
growth in the first quarter, with revenue up 13% and AOI up 9% on a
constant currency basis. Through April, we have sold over 70%
of our expected sponsorship and advertising for the year,
positioning us for another year of double-digit growth.
As part of this, our contracted online advertising is up 14%
through April as we further leverage our ability to integrate
ticket-buying behavior with brands' customer data to create more
targeted profiling, leading to increased effectiveness of digital
buys in music. Our online advertising is also growing from our
increased content creation with our 25,000 concerts each year, as
we work with a range of distribution partners to extend the live
event and drive ad revenue.
And our contracted sponsorship is up 10% through April as more
brands see the value from our scale platform of over 60 million
fans as an effective way to directly connect with potential
customers.
Ticketmaster Marketplace Growing
Ticketmaster continued to build its global marketplace in the
first quarter, increasing gross transaction value (GTV) by 18% at
constant currency. This growth was led by continued
strength in our secondary ticketing GTV, which was up 43% at
constant currency, making this quarter the eighth consecutive
quarter with growth over 20% in secondary GTV.
Primary ticketing GTV grew by 16% for the quarter at constant
currency. The month of February was our largest ever at
Ticketmaster, selling over 17 million tickets globally, and during
the quarter we had five of the top 20 ticket volume days in the
history of Ticketmaster.
We have been able to continue growing our ticketing platform by
simultaneously serving our existing venue clients, attracting new
clients and developing fan products that increase conversion.
Over the past year, we have reinforced our position as the top
global ticketing partner for venues and content, adding over 150
new clients to our more than 12 thousand clients.
On the product side, one of our main areas of focus continues to
be delivering a great mobile experience for fans buying at
Ticketmaster. At this point, our websites are largely mobile
responsive ready, and we have continued to upgrade our iOS and
Android apps. As a result, we increased our mobile ticket
sales by 30% year-on-year, now accounting for 25% of all ticket
sales.
During the first quarter we also made major strides in realizing
our vision of an open marketplace. We launched our first
fully functional API with Bandsintown, enabling fans to directly
search Ticketmaster's inventory and buy tickets without leaving the
Bandsintown app. This week we are launching the same
functionality with Facebook, both with their app and online, and
expect to rapidly scale from there. While still early,
initial results show strong conversion uplift.
With Ticketmaster off to a great start over the first four
months, in 2016 we expect to continue the profit growth trend of
the past several years, with continued opportunity for years to
come.
Summary
2016 is on track to be another year of growth and record results
for the company. All of the leading indicators for our
concerts, sponsorship and ticketing businesses are performing ahead
of last year and we expect each of the businesses to deliver
revenue, AOI and free cash flow growth this year.
Our results are demonstrating the fundamental strength and
growth trajectory of live events and Live Nation's positioning to
deliver long-term profit and cash flow growth.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
The company will webcast a teleconference today at 5:00 p.m. Eastern Time to discuss its financial
performance. Interested parties should visit the Events &
Webcasts section of the company's website at
investors.livenationentertainment.com to listen to the
webcast. Supplemental statistical and financial information to be
provided on the call, if any, will be available under the Reports
section at the same link. A replay of the webcast will also be
available on the Live Nation website.
About Live Nation Entertainment:
Live Nation
Entertainment, Inc. (NYSE: LYV), or Live Nation, is the world's
leading live entertainment company comprised of global market
leaders: Ticketmaster, Live Nation Concerts, Live Nation Media
& Sponsorship and Artist Nation Management. For additional
information, visit
investors.livenationentertainment.com.
FINANCIAL
HIGHLIGHTS – 1st Quarter
|
(unaudited; $ in
millions)
|
|
|
Q1 2016 Constant
Currency
|
|
Q1
2015
|
|
Growth
|
|
Q1 2016 As
Reported
|
Revenue
|
|
|
|
|
|
|
|
Concerts
|
$
|
695.4
|
|
|
$
|
623.2
|
|
|
12%
|
|
$
|
681.1
|
|
Sponsorship &
Advertising
|
58.8
|
|
|
52.1
|
|
|
13%
|
|
57.6
|
|
Ticketing
|
412.5
|
|
|
375.6
|
|
|
10%
|
|
405.8
|
|
Artist
Nation
|
75.4
|
|
|
77.9
|
|
|
(3%)
|
|
75.1
|
|
Other &
Eliminations
|
(11.9)
|
|
|
(8.5)
|
|
|
*
|
|
(11.9)
|
|
|
$
|
1,230.2
|
|
|
$
|
1,120.3
|
|
|
10%
|
|
$
|
1,207.7
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
Concerts
|
$
|
(14.0)
|
|
|
$
|
(11.7)
|
|
|
(20%)
|
|
$
|
(13.3)
|
|
Sponsorship &
Advertising
|
31.4
|
|
|
28.9
|
|
|
9%
|
|
30.6
|
|
Ticketing
|
83.0
|
|
|
78.3
|
|
|
6%
|
|
82.1
|
|
Artist
Nation
|
(3.8)
|
|
|
(4.8)
|
|
|
21%
|
|
(3.7)
|
|
Other &
Eliminations
|
(2.3)
|
|
|
(1.6)
|
|
|
*
|
|
(2.3)
|
|
Corporate
|
(20.0)
|
|
|
(19.5)
|
|
|
(3%)
|
|
(20.0)
|
|
|
$
|
74.3
|
|
|
$
|
69.6
|
|
|
7%
|
|
$
|
73.4
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
Concerts
|
$
|
(50.4)
|
|
|
$
|
(42.6)
|
|
|
(18%)
|
|
$
|
(49.1)
|
|
Sponsorship &
Advertising
|
26.2
|
|
|
26.4
|
|
|
(1%)
|
|
25.3
|
|
Ticketing
|
35.4
|
|
|
34.2
|
|
|
4%
|
|
35.3
|
|
Artist
Nation
|
(17.7)
|
|
|
(16.1)
|
|
|
(10%)
|
|
(17.5)
|
|
Other &
Eliminations
|
(1.8)
|
|
|
(1.1)
|
|
|
*
|
|
(1.7)
|
|
Corporate
|
(25.6)
|
|
|
(24.7)
|
|
|
(4%)
|
|
(25.6)
|
|
|
$
|
(33.9)
|
|
|
$
|
(23.9)
|
|
|
(42%)
|
|
$
|
(33.3)
|
|
|
* percentages are
not meaningful
|
As of March 31, 2016, total cash and cash equivalents were
$1.7 billion, which includes
$663 million in ticketing client cash
and $278 million in free cash.
Event-related deferred revenue was $1.2
billion as of March 31, 2016, compared to $919 million as of the same date in 2015. Free
cash flow was $9.9 million for the
first quarter of 2016 as compared to $25.0
million in the first quarter of last year. We
currently expect capital expenditures for the year to be between
approximately $170 million and $175
million, with approximately 60% to be revenue generating
capital expenditures. In addition, we expect the amortization
of nonrecoupable ticketing contract advances for 2016 full year to
be in line with the total expensed in 2015.
KEY OPERATING
METRICS
|
|
|
Q1
2016
|
|
Q1
2015
|
Concerts
(1)
|
|
|
|
Estimated
events:
|
|
|
|
North
America
|
3,455
|
|
3,437
|
International
|
2,419
|
|
1,707
|
Total estimated
events
|
5,874
|
|
5,144
|
Estimated fans
(rounded):
|
|
|
|
North
America
|
4,884,000
|
|
5,467,000
|
International
|
4,129,000
|
|
3,155,000
|
Total estimated
fans
|
9,013,000
|
|
8,622,000
|
Ticketing
(2)
|
|
|
|
Number of tickets
sold (in thousands)
|
41,216
|
|
37,920
|
|
(1)
|
Events generally
represent a single performance by an artist. Fans generally
represent the number of people who attend an event. Festivals
are counted as one event in the quarter in which the festival
begins, but the number of fans is based on the days the fans were
present at the festival and thus can be reported across multiple
quarters. Events and fan attendance metrics are estimated
each quarter.
|
(2)
|
The number of tickets
sold includes primary tickets only. This metric includes
tickets sold during the period regardless of event timing except
for our own events where our concert promoters control ticketing
which are reported as the events occur. The total number of tickets
sold reported for the three months ended March 31, 2016 and
2015 excludes approximately 76 million and 72 million,
respectively, of tickets sold using our Ticketmaster systems,
through season seat packages and our venue clients' box offices,
for which we do not receive a fee.
|
Reconciliation of
Non-GAAP Measures to Their Most Directly Comparable GAAP Measures
(Unaudited)
|
|
Reconciliation
of Adjusted Operating Income (Loss) to Free Cash
Flow
|
|
($ in
millions)
|
Q1
2016
|
|
Q1
2015
|
Adjusted operating
income
|
$
|
73.4
|
|
|
$
|
69.6
|
|
Less: Cash
interest expense — net
|
(24.8)
|
|
|
(23.4)
|
|
Cash taxes
|
(6.0)
|
|
|
(4.7)
|
|
Maintenance capital expenditures
|
(14.4)
|
|
|
(15.3)
|
|
Distributions to noncontrolling interests — net
|
(15.5)
|
|
|
(3.9)
|
|
Distributions from
(contributions to) investments in nonconsolidated
affiliates
|
(2.8)
|
|
|
2.7
|
|
Free cash
flow
|
$
|
9.9
|
|
|
$
|
25.0
|
|
Revenue generating
capital expenditures
|
(10.1)
|
|
|
(10.5)
|
|
Net
|
$
|
(0.2)
|
|
|
$
|
14.5
|
|
Reconciliation
of Cash and Cash Equivalents to Free Cash
|
|
($ in
millions)
|
|
March
31,
2016
|
Cash and cash
equivalents
|
|
$
|
1,699.3
|
Client
cash
|
|
(663.0)
|
Deferred revenue —
event-related
|
|
(1,181.1)
|
Accrued artist
fees
|
|
(27.1)
|
Collections on behalf
of others
|
|
(24.8)
|
Prepaid expenses —
event-related
|
|
474.8
|
Free
cash
|
|
$
|
278.1
|
Forward-Looking Statements, Non-GAAP Financial Measures and
Reconciliations:
Certain statements in this press release
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, but are not limited to,
statements regarding expected attendance and on-site revenue growth
for the company's concerts business in 2016; the anticipated launch
of integrated ticketing search and sales functionality with
Facebook and other websites and mobile apps and the expected impact
on conversion rates; anticipated growth in global market share
across the company's businesses; expected record top line and
bottom line results in 2016, with anticipated revenue, adjusted
operating income and free cash flow growth in the company's
concerts, sponsorship and ticketing businesses; and the company's
prospects for long-term growth, including profit and cash flow
growth. Live Nation wishes to caution you that there are some known
and unknown factors that could cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by such forward-looking statements, including
but not limited to operational challenges in achieving strategic
objectives and executing on the company's plans, the risk that the
company's markets do not evolve as anticipated, the potential
impact of any economic slowdown and operational challenges
associated with selling tickets and staging events.
Live Nation refers you to the documents it files from time to
time with the U.S. Securities and Exchange Commission, or SEC,
specifically the section titled "Item 1A. Risk Factors" of the
company's most recent Annual Report filed on Form 10-K, and
Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K,
which contain and identify other important factors that could cause
actual results to differ materially from those contained in the
company's projections or forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking
statements which speak only as of the date on which they are made.
All subsequent written and oral forward-looking statements by or
concerning Live Nation are expressly qualified in their entirety by
the cautionary statements above. Live Nation does not undertake any
obligation to publicly update or revise any forward-looking
statements because of new information, future events or
otherwise.
This press release contains certain non-GAAP financial measures
as defined by SEC Regulation G. A reconciliation of each such
measure to its most directly comparable GAAP financial measure,
together with an explanation of why management believes that these
non-GAAP financial measures provide useful information to
investors, is provided herein.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP
financial measure that we define as operating income (loss) before
acquisition expenses (including transaction costs, changes in the
fair value of accrued acquisition-related contingent consideration
arrangements, acquisition-related severance and compensation),
depreciation and amortization (including goodwill impairment), loss
(gain) on disposal of operating assets and certain stock-based
compensation expense. We use AOI to evaluate the performance of our
operating segments. We believe that information about AOI assists
investors by allowing them to evaluate changes in the operating
results of our portfolio of businesses separate from
non-operational factors that affect net income, thus providing
insights into both operations and the other factors that affect
reported results. AOI is not calculated or presented in accordance
with GAAP. A limitation of the use of AOI as a performance measure
is that it does not reflect the periodic costs of certain
amortizing assets used in generating revenue in our business.
Accordingly, AOI should be considered in addition to, and not as a
substitute for, operating income (loss), net income (loss), and
other measures of financial performance reported in accordance with
GAAP. Furthermore, this measure may vary among other companies;
thus, AOI as presented herein may not be comparable to similarly
titled measures of other companies.
Constant Currency is a non-GAAP financial measure. We
calculate currency impacts as the difference between current period
activity translated using the current period's currency exchange
rates and the comparable prior period's currency exchange
rates. We present constant currency information to provide a
framework for assessing how our underlying businesses performed
excluding the effect of foreign currency rate fluctuation.
Free Cash Flow is a non-GAAP financial measure that the company
defines as AOI less maintenance capital expenditures, less net cash
interest expense, less cash taxes, less net distributions to
noncontrolling interest partners, plus distributions from
investments in nonconsolidated affiliates net of contributions to
investments in nonconsolidated affiliates. The company uses free
cash flow, among other measures, to evaluate the ability of its
operations to generate cash that is available for purposes other
than maintenance capital expenditures. The company believes that
information about free cash flow provides investors with an
important perspective on the cash available to service debt and
make acquisitions. Free cash flow is not calculated or presented in
accordance with GAAP. A limitation of the use of free cash flow as
a performance measure is that it does not necessarily represent
funds available for operations and is not necessarily a measure of
the company's ability to fund its cash needs. Accordingly, free
cash flow should be considered in addition to, and not as a
substitute for, operating income (loss) and other measures of
financial performance reported in accordance with GAAP.
Furthermore, this measure may vary among other companies; thus,
free cash flow as presented herein may not be comparable to
similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that the company
defines as cash and cash equivalents less ticketing-related client
funds, less event-related deferred revenue, less accrued expenses
due to artists and cash collected on behalf of others, plus
event-related prepaids. The company uses free cash as a proxy for
how much cash it has available to, among other things, optionally
repay debt balances, make acquisitions and fund revenue generating
capital expenditures. Free cash is not calculated or presented in
accordance with GAAP. A limitation of the use of free cash as a
performance measure is that it does not necessarily represent funds
available from operations and it is not necessarily a measure of
our ability to fund our cash needs. Accordingly, free cash should
be considered in addition to, and not as a substitute for, cash and
cash equivalents and other measures of financial performance
reported in accordance with GAAP. Furthermore, this measure may
vary among other companies; thus, free cash as presented herein may
not be comparable to similarly titled measures of other
companies.
Reconciliations of
Non-GAAP Measures to Their Most Directly Comparable GAAP Measures
(Unaudited)
|
|
Reconciliation
of Adjusted Operating Income (Loss) to Operating Income
(Loss)
|
|
($ in
millions)
|
Adjusted operating
income (loss) constant currency
|
|
Foreign exchange
impact
|
|
Adjusted operating
income (loss) reported
|
|
Non-cash and
stock-based compensation expense
|
|
Loss (gain) on
disposal of operating assets
|
|
Depreciation
and
amortization
|
|
Acquisition
expenses
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(14.0)
|
|
|
$
|
(0.7)
|
|
|
$
|
(13.3)
|
|
|
$
|
1.9
|
|
|
$
|
—
|
|
|
$
|
31.3
|
|
|
$
|
2.6
|
|
|
$
|
(49.1)
|
|
Sponsorship &
Advertising
|
31.4
|
|
|
0.8
|
|
|
30.6
|
|
|
0.3
|
|
|
—
|
|
|
5.0
|
|
|
—
|
|
|
25.3
|
|
Ticketing
|
83.0
|
|
|
0.9
|
|
|
82.1
|
|
|
1.0
|
|
|
—
|
|
|
45.8
|
|
|
—
|
|
|
35.3
|
|
Artist
Nation
|
(3.8)
|
|
|
(0.1)
|
|
|
(3.7)
|
|
|
1.2
|
|
|
—
|
|
|
12.5
|
|
|
0.1
|
|
|
(17.5)
|
|
Other and
Eliminations
|
(2.3)
|
|
|
—
|
|
|
(2.3)
|
|
|
—
|
|
|
(0.1)
|
|
|
(0.5)
|
|
|
—
|
|
|
(1.7)
|
|
Corporate
|
(20.0)
|
|
|
—
|
|
|
(20.0)
|
|
|
4.5
|
|
|
0.1
|
|
|
0.9
|
|
|
0.1
|
|
|
(25.6)
|
|
Total Live
Nation
|
$
|
74.3
|
|
|
$
|
0.9
|
|
|
$
|
73.4
|
|
|
$
|
8.9
|
|
|
$
|
—
|
|
|
$
|
95.0
|
|
|
$
|
2.8
|
|
|
$
|
(33.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(11.7)
|
|
|
$
|
—
|
|
|
$
|
(11.7)
|
|
|
$
|
2.1
|
|
|
$
|
0.2
|
|
|
$
|
29.2
|
|
|
$
|
(0.6)
|
|
|
$
|
(42.6)
|
|
Sponsorship &
Advertising
|
28.9
|
|
|
—
|
|
|
28.9
|
|
|
0.5
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
26.4
|
|
Ticketing
|
78.3
|
|
|
—
|
|
|
78.3
|
|
|
0.9
|
|
|
(0.2)
|
|
|
43.3
|
|
|
0.1
|
|
|
34.2
|
|
Artist
Nation
|
(4.8)
|
|
|
—
|
|
|
(4.8)
|
|
|
1.3
|
|
|
—
|
|
|
10.0
|
|
|
—
|
|
|
(16.1)
|
|
Other and
Eliminations
|
(1.6)
|
|
|
—
|
|
|
(1.6)
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
|
(1.1)
|
|
Corporate
|
(19.5)
|
|
|
—
|
|
|
(19.5)
|
|
|
4.8
|
|
|
—
|
|
|
0.5
|
|
|
(0.1)
|
|
|
(24.7)
|
|
Total Live
Nation
|
$
|
69.6
|
|
|
$
|
—
|
|
|
$
|
69.6
|
|
|
$
|
9.6
|
|
|
$
|
—
|
|
|
$
|
84.5
|
|
|
$
|
(0.6)
|
|
|
$
|
(23.9)
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
March
31, 2016
|
|
December
31, 2015
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,699,281
|
|
|
$
|
1,303,125
|
|
Accounts receivable,
less allowance of $18,411 and $17,168, respectively
|
480,681
|
|
|
452,600
|
|
Prepaid
expenses
|
747,661
|
|
|
496,226
|
|
Other current
assets
|
38,631
|
|
|
36,364
|
|
Total current
assets
|
2,966,254
|
|
|
2,288,315
|
|
Property, plant and
equipment
|
|
|
|
Land, buildings and
improvements
|
841,717
|
|
|
840,032
|
|
Computer equipment
and capitalized software
|
502,217
|
|
|
505,233
|
|
Furniture and other
equipment
|
241,081
|
|
|
233,271
|
|
Construction in
progress
|
65,197
|
|
|
47,684
|
|
|
1,650,212
|
|
|
1,626,220
|
|
Less accumulated
depreciation
|
927,422
|
|
|
894,938
|
|
|
722,790
|
|
|
731,282
|
|
Intangible
assets
|
|
|
|
Definite-lived
intangible assets, net
|
785,301
|
|
|
777,763
|
|
Indefinite-lived
intangible assets
|
369,219
|
|
|
369,317
|
|
Goodwill
|
1,619,552
|
|
|
1,604,315
|
|
Other long-term
assets
|
464,058
|
|
|
385,249
|
|
Total
assets
|
$
|
6,927,174
|
|
|
$
|
6,156,241
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable,
client accounts
|
$
|
802,718
|
|
|
$
|
662,941
|
|
Accounts
payable
|
76,204
|
|
|
58,607
|
|
Accrued
expenses
|
620,142
|
|
|
686,664
|
|
Deferred
revenue
|
1,354,101
|
|
|
618,640
|
|
Current portion of
long-term debt, net
|
43,990
|
|
|
42,352
|
|
Other current
liabilities
|
29,082
|
|
|
32,002
|
|
Total current
liabilities
|
2,926,237
|
|
|
2,101,206
|
|
Long-term debt,
net
|
1,992,851
|
|
|
2,002,662
|
|
Long-term deferred
income taxes
|
204,032
|
|
|
199,472
|
|
Other long-term
liabilities
|
135,308
|
|
|
142,267
|
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
264,088
|
|
|
263,715
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
2,023
|
|
|
2,020
|
|
Additional paid-in
capital
|
2,423,054
|
|
|
2,428,566
|
|
Accumulated
deficit
|
(1,120,919)
|
|
|
(1,075,111)
|
|
Cost of shares held
in treasury
|
(6,865)
|
|
|
(6,865)
|
|
Accumulated other
comprehensive loss
|
(112,905)
|
|
|
(111,657)
|
|
Total Live Nation
stockholders' equity
|
1,184,388
|
|
|
1,236,953
|
|
Noncontrolling
interests
|
220,270
|
|
|
209,966
|
|
Total
equity
|
1,404,658
|
|
|
1,446,919
|
|
Total liabilities
and equity
|
$
|
6,927,174
|
|
|
$
|
6,156,241
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
Three Months
Ended March
31,
|
|
2016
|
|
2015
|
|
(in thousands
except share and per share data)
|
Revenue
|
$
|
1,207,716
|
|
|
$
|
1,120,312
|
|
Operating
expenses:
|
|
|
|
Direct operating
expenses
|
784,203
|
|
|
721,289
|
|
Selling, general and
administrative expenses
|
336,181
|
|
|
314,545
|
|
Depreciation and
amortization
|
94,955
|
|
|
84,541
|
|
Loss on disposal of
operating assets
|
25
|
|
|
39
|
|
Corporate
expenses
|
24,506
|
|
|
24,360
|
|
Acquisition
transaction expenses
|
1,136
|
|
|
(527)
|
|
Operating
loss
|
(33,290)
|
|
|
(23,935)
|
|
Interest
expense
|
25,432
|
|
|
25,363
|
|
Interest
income
|
(556)
|
|
|
(1,565)
|
|
Equity in earnings of
nonconsolidated affiliates
|
(592)
|
|
|
(2,980)
|
|
Other expense
(income), net
|
(8,547)
|
|
|
21,028
|
|
Loss before income
taxes
|
(49,027)
|
|
|
(65,781)
|
|
Income tax
expense
|
6,927
|
|
|
745
|
|
Net loss
|
(55,954)
|
|
|
(66,526)
|
|
Net loss attributable
to noncontrolling interests
|
(11,436)
|
|
|
(8,247)
|
|
Net loss attributable
to common stockholders of Live Nation
|
$
|
(44,518)
|
|
|
$
|
(58,279)
|
|
|
|
|
|
Basic and diluted net
loss per common share available to common stockholders of Live
Nation
|
$
|
(0.29)
|
|
|
$
|
(0.31)
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic and
diluted
|
201,696,142
|
|
|
200,155,435
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
loss available to common stockholders of Live Nation:
|
|
|
|
Net loss attributable
to common stockholders of Live Nation
|
$
|
(44,518)
|
|
|
$
|
(58,279)
|
|
Accretion of
redeemable noncontrolling interests
|
(13,336)
|
|
|
(3,889)
|
|
Basic and diluted net
loss available to common stockholders of Live Nation
|
$
|
(57,854)
|
|
|
$
|
(62,168)
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
2015
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net loss
|
$
|
(55,954)
|
|
|
$
|
(66,526)
|
|
Reconciling
items:
|
|
|
|
Depreciation
|
33,069
|
|
|
32,134
|
|
Amortization
|
61,886
|
|
|
52,407
|
|
Deferred income tax
expense (benefit)
|
(1,698)
|
|
|
4,371
|
|
Amortization of debt
issuance costs, discounts and premium, net
|
2,591
|
|
|
2,644
|
|
Non-cash compensation
expense
|
8,923
|
|
|
9,497
|
|
Other, net
|
4,621
|
|
|
(3,574)
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
Increase in accounts
receivable
|
(16,878)
|
|
|
(47,700)
|
|
Increase in prepaid
expenses and other assets
|
(305,294)
|
|
|
(210,388)
|
|
Increase in accounts
payable, accrued expenses and other liabilities
|
79,094
|
|
|
11,536
|
|
Increase in deferred
revenue
|
707,038
|
|
|
563,260
|
|
Net cash provided by
operating activities
|
517,398
|
|
|
347,661
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Advances and
collections of notes receivable, net
|
(4,827)
|
|
|
(664)
|
|
Investments made in
nonconsolidated affiliates
|
(5,165)
|
|
|
(3,913)
|
|
Purchases of
property, plant and equipment
|
(30,681)
|
|
|
(29,365)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(43,378)
|
|
|
(15,879)
|
|
Other, net
|
(1,693)
|
|
|
(762)
|
|
Net cash used in
investing activities
|
(85,744)
|
|
|
(50,583)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Payments on long-term
debt
|
(9,764)
|
|
|
(8,682)
|
|
Distributions to
noncontrolling interests
|
(15,462)
|
|
|
(3,858)
|
|
Purchases and sales
of noncontrolling interests, net
|
—
|
|
|
(8,302)
|
|
Payments for deferred
and contingent consideration
|
(15,678)
|
|
|
(2,000)
|
|
Other, net
|
(12,385)
|
|
|
(1,473)
|
|
Net cash used in
financing activities
|
(53,289)
|
|
|
(24,315)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
17,791
|
|
|
(48,134)
|
|
Net increase in cash
and cash equivalents
|
396,156
|
|
|
224,629
|
|
Cash and cash
equivalents at beginning of period
|
1,303,125
|
|
|
1,382,029
|
|
Cash and cash
equivalents at end of period
|
$
|
1,699,281
|
|
|
$
|
1,606,658
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/live-nation-entertainment-reports-first-quarter-2016-financial-results-300262053.html
SOURCE Live Nation Entertainment