LOS ANGELES, Feb. 26, 2015 /PRNewswire/ -- Live Nation
Entertainment (NYSE: LYV) today released financial results for the
three and twelve months ended December 31, 2014.
2014 Results
Live Nation continues to be the global leader in the live events
industry with another record year. In 2014 the company grew
adjusted operating income (AOI) by 10%, revenue by 6%, and free
cash flow by 9%.
We continue to see the tremendous power of live events, with
strong global consumer demand. Live is a truly unique
entertainment form, it cannot be duplicated. It is elevated,
not threatened, by technology and is borderless. Fans around
the world can now discover, follow, share and embrace artists,
creating greater demand for live shows.
Technology is similarly transforming ticketing. Ticket
sales are continuing their rapid shift to mobile, with 35% growth
in 2014 to 18% of total ticket sales, leading to higher fan
engagement, conversion and a better purchase flow.
We believe the live business will continue to have strong growth
for years to come as connected fans drive demand, artists are
motivated to tour, and mobile technology drives conversion.
Our Concerts Market Share Continues to Grow
In 2014 we built on a record 2013 by growing Concerts revenue
5%. We again grew our global market share, as we promoted the
majority of shows for 22 of the top 25 global tours. At the
same time, we expanded our global footprint in the Philippines, Thailand, Taiwan and Indonesia, while also building our portfolio
of marquee North America festival
assets with the acquisition of Austin City Limits and Lollapalooza
festivals and brands.
Artist Nation Business Delivered Strong Growth
Our artist management business grew AOI by 50% as we attracted
more managers and artists to Live Nation - including U2, Madonna,
Lady Gaga, Miley Cyrus, Britney Spears, Nicki Minaj, Lil Wayne and Alicia
Keys last year. And the benefit from aligning with our
concert business is proving successful as these artists chose to
tour with Live Nation for over 700 shows in 2014, more than double
the number in 2012.
Sponsorship and Advertising Continue Double Digit
Growth
From this expanded concert base we again grew our advertising
business at a double-digit pace, with a 10% increase in AOI for the
year in our highest margin business at over 70% of revenue.
As part of this, online advertising AOI grew even faster, at
15%.
This growth was driven by two initiatives. First, we have
remained focused on growing our fan network, increasing traffic by
17%, for a total of over one billion visitors throughout the
year. And second, we are now monetizing our content, notably
our deal with Yahoo! to distribute a streaming concert every day,
which has driven increased interest by advertisers to our online
platform, spurring the growing profitability of the business. Yahoo
and VICE are just the beginning of our entry into the media space,
driving advertising with high quality live music-related video
offerings that will continue to expand and drive advertising
growth.
Our unique ad platform has enabled us to attract new strategic
sponsors such as Pepsi, Hilton and SAP last year. With these
additions we now have approximately 60 companies that pay us over
$1 million each year for sponsorship
and advertising, accounting for over $200
million in spend with Live Nation, and an additional 700
companies that also advertise on our platform, generating a
collective $300 million in revenue.
We believe we can continue to upsell and convert these 700 sponsors
as we grow our average deal size.
Ticketmaster Platform Driving Growth Through New
Products
Ticketmaster continued to build on its global leadership with
the introduction of new products that instantly scale of
Ticketmaster's platform and drive revenue. In 2014 these new
products helped drive a 7% increase in the gross transaction value
of primary tickets to $23 billion,
and a 55% increase in secondary gross transaction value.
Our most successful new product launch has been integrated
secondary ticketing, with over $1
billion of secondary gross transaction value since its
launch in the fall of 2013. The number of events activated in
2014 increased 500% to 10,000 integrated events listed on
Ticketmaster. Secondary growth for concerts in particular has
been very strong, with a 350% year-on-year GTV increase,
demonstrating how Ticketmaster can leverage Live Nation Concerts as
its top customer to immediately establish scale with new
products. And despite this strong growth, only 6%
of Ticketmaster events in 2014 were activated with secondary
inventory, so we have substantial runway for growth ahead.
At the same time we have shifted our product focus for event
discovery, purchase, and ticket management to mobile. As a
result, in the fourth quarter of 2014 for the first time we had
more visitors to our mobile sites than desktop. There remain
tremendous growth opportunities for Ticketmaster traffic and
conversion. The shift to mobile will more effectively link
fans with shows and Ticketmaster's ability to drive mobile app
installations, as it continues to be the number one place to
discover and buy tickets.
Our commitment to our venue clients is to provide them with the
best service and products in the industry, and this continues to
bear out as we achieved a net renewal rate of over 100% for the
fifth straight year.
In addition to enabling better products, as a result of our
technology investments we are also lowering our operating costs,
and by the end of 2014 we reduced our cost per ticket in
North America by almost
25 cents per ticket, ahead of our
planned timetable.
Demonstrating Ticketmaster's robust business, it had the second
biggest day in its over 30-year history last Friday, selling over
one million tickets. The top day was 12 years ago, and we
expect we can still break that this year.
2015 Growth Drivers
We are confident that our business model, and its scale,
provides ongoing growth potential. There remain continued
opportunities to consolidate the global concerts business, and we
will use that scale to drive fan monetization, advertising and
ticketing.
Since 2012 we have grown revenue by 18%, AOI by 20% and cash
flow by 31%**. Looking forward, we see this growth as
sustainable and repeatable given the breadth of levers and trends
currently working for us.
/s/ Michael Rapino
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
Quarterly & Financial Reports portion of the Reports section at
the same link. A replay of the webcast will also be available on
the Live Nation website.
**After adjusting for $26M in tax
refunds received in 2012.
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.
Follow us @twitter.com/LiveNationInc
FINANCIAL
HIGHLIGHTS – 4th QUARTER AND FULL YEAR
(Q4 unaudited; $
in millions)
|
|
|
Q4
2014
|
|
Q4
2013
|
|
Growth
|
|
12 months
2014
|
|
12 months
2013
|
|
Growth
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
966.8
|
|
|
$
|
1,083.7
|
|
|
(11%)
|
|
|
$
|
4,726.9
|
|
|
$
|
4,517.2
|
|
|
5%
|
|
Ticketing
|
445.7
|
|
|
388.0
|
|
|
15%
|
|
|
1,557.3
|
|
|
1,407.8
|
|
|
11%
|
|
Artist
Nation
|
106.7
|
|
|
91.8
|
|
|
16%
|
|
|
389.4
|
|
|
352.9
|
|
|
10%
|
|
Sponsorship &
Advertising
|
69.4
|
|
|
63.1
|
|
|
10%
|
|
|
300.3
|
|
|
284.7
|
|
|
5%
|
|
Other &
Eliminations
|
(16.7)
|
|
|
(13.5)
|
|
|
(24%)
|
|
|
(106.9)
|
|
|
(84.1)
|
|
|
(27%)
|
|
|
$
|
1,571.9
|
|
|
$
|
1,613.1
|
|
|
(3%)
|
|
|
$
|
6,867.0
|
|
|
$
|
6,478.5
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(66.7)
|
|
|
$
|
(39.9)
|
|
|
(67%)
|
|
|
$
|
50.6
|
|
|
$
|
60.3
|
|
|
(16%)
|
|
Ticketing
|
93.7
|
|
|
80.7
|
|
|
16%
|
|
|
326.1
|
|
|
298.1
|
|
|
9%
|
|
Artist
Nation
|
17.9
|
|
|
12.0
|
|
|
49%
|
|
|
48.1
|
|
|
32.1
|
|
|
50%
|
|
Sponsorship &
Advertising
|
50.3
|
|
|
40.5
|
|
|
24%
|
|
|
213.4
|
|
|
194.8
|
|
|
10%
|
|
Other &
Eliminations
|
0.2
|
|
|
(0.6)
|
|
|
**
|
|
(0.1)
|
|
|
(1.8)
|
|
|
**
|
Corporate
|
(23.2)
|
|
|
(21.4)
|
|
|
(8%)
|
|
|
(83.2)
|
|
|
(78.3)
|
|
|
(6%)
|
|
|
$
|
72.2
|
|
|
$
|
71.3
|
|
|
1%
|
|
|
$
|
554.9
|
|
|
$
|
505.2
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(101.0)
|
|
|
$
|
(74.2)
|
|
|
(36%)
|
|
|
$
|
(70.9)
|
|
|
$
|
(31.0)
|
|
|
**
|
Ticketing
|
33.6
|
|
|
19.3
|
|
|
74%
|
|
|
126.9
|
|
|
101.8
|
|
|
25%
|
|
Artist
Nation
|
5.1
|
|
|
2.3
|
|
|
**
|
|
1.2
|
|
|
(9.7)
|
|
|
**
|
Sponsorship &
Advertising
|
48.9
|
|
|
38.6
|
|
|
27%
|
|
|
207.7
|
|
|
191.6
|
|
|
8%
|
|
Other &
Eliminations
|
0.8
|
|
|
(0.1)
|
|
|
**
|
|
2.0
|
|
|
—
|
|
|
**
|
Corporate
|
(28.8)
|
|
|
(27.7)
|
|
|
(4%)
|
|
|
(106.4)
|
|
|
(102.4)
|
|
|
(4%)
|
|
Normalized Operating Income
(Loss)
|
$
|
(41.4)
|
|
|
$
|
(41.8)
|
|
|
1%
|
|
|
$
|
160.5
|
|
|
$
|
150.3
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
Impairment
|
(135.0)
|
|
|
—
|
|
|
|
|
|
(135.0)
|
|
|
—
|
|
|
|
|
Other
Impairments
|
(10.5)
|
|
|
(9.2)
|
|
|
|
|
|
(18.3)
|
|
|
(10.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Operating Income
(Loss)
|
$
|
(186.9)
|
|
|
$
|
(51.0)
|
|
|
|
|
|
$
|
7.2
|
|
|
$
|
139.7
|
|
|
|
|
** percentages are
not meaningful
|
|
|
As of December 31, 2014, total cash and cash equivalents
were $1.4 billion, which includes
$534 million in ticketing client cash
and $494 million in free cash.
Event-related deferred revenue was up 7% to $464 million as of December 31, 2014,
compared to $434 million as of the
same date in 2013. Free cash flow was $19
million for the fourth quarter of 2014 as compared to
$17 million in the fourth quarter of
2013, and $327 million, up 9% for the
full year 2014 versus $300 million
for 2013.
LIVE NATION
ENTERTAINMENT, INC.
KEY OPERATING
METRICS
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
2014
|
|
2013
|
|
2012
|
|
Concerts
(1)
|
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
|
North
America
|
15,948
|
|
|
15,580
|
|
|
14,942
|
|
International
|
6,853
|
|
|
7,270
|
|
|
6,996
|
|
Total estimated
events
|
22,801
|
|
|
22,850
|
|
|
21,938
|
|
Estimated fans
(rounded):
|
|
|
|
|
|
|
|
|
North
America
|
40,092,000
|
|
|
37,954,000
|
|
|
32,079,000
|
|
International
|
18,486,000
|
|
|
21,527,000
|
|
|
17,915,000
|
|
Total estimated
fans
|
58,578,000
|
|
|
59,481,000
|
|
|
49,994,000
|
|
Ticketing
|
|
|
|
|
|
|
|
|
Number of tickets
sold (in thousands) (2)
|
153,744
|
|
|
148,852
|
|
|
147,732
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Events generally
represent a single performance by an artist. Fans generally
represent the number of people who attended an event. Festivals are
counted as one event in the quarter in which the festival begins,
but number of fans is based on the days the fans were present at
the festival and thus can be reported in multiple quarters. Events
and fan attendance metrics are estimated each quarter.
|
|
|
(2)
|
The number of tickets
sold includes primary tickets only and excludes tickets sold for
the 2012 Olympics. This metric includes tickets sold during the
period regardless of event timing except for our promoted events in
our owned or operated venues and in certain European territories
where these tickets are reported as the events occur. The total
number of tickets sold reported above for 2014, 2013 and 2012
excludes approximately 300 million, 301 million and 284 million,
respectively, of tickets sold using our Ticketmaster systems,
through season seat packages and our venue clients' box offices,
for which we do not receive a fee.
|
|
|
|
|
Reconciliation of
Non-GAAP Measures to Their Most Directly Comparable GAAP Measures
(Unaudited)
Reconciliation
of Adjusted Operating Income (Loss) to Free Cash
Flow
|
($ in
millions)
|
Q4
2014
|
|
Q4
2013
|
Adjusted operating
income
|
$
|
72.2
|
|
|
$
|
71.3
|
|
Less: Cash
interest expense — net
|
(23.2)
|
|
|
(13.9)
|
|
Cash taxes
|
(3.2)
|
|
|
(12.8)
|
|
Maintenance capital
expenditures
|
(13.8)
|
|
|
(21.1)
|
|
Distributions to
noncontrolling interests
|
(8.5)
|
|
|
(5.1)
|
|
Distributions from
(contributions to) investments in nonconsolidated
affiliates
|
(4.2)
|
|
|
(1.3)
|
|
Free cash
flow
|
$
|
19.3
|
|
|
$
|
17.1
|
|
Revenue generating
capital expenditures
|
(30.9)
|
|
|
(15.1)
|
|
Net
|
$
|
(11.6)
|
|
|
$
|
2.0
|
|
|
|
|
|
|
|
($ in
millions)
|
12 months
2014
|
|
12 months
2013
|
Adjusted operating
income
|
$
|
554.9
|
|
|
$
|
505.2
|
|
Less: Cash
interest expense — net
|
(89.3)
|
|
|
(86.7)
|
|
Cash taxes
|
(41.5)
|
|
|
(45.6)
|
|
Maintenance capital
expenditures
|
(60.3)
|
|
|
(59.6)
|
|
Distributions to
noncontrolling interests
|
(32.4)
|
|
|
(17.4)
|
|
Distributions from
(contributions to) investments in nonconsolidated
affiliates
|
(4.4)
|
|
|
4.3
|
|
Free cash
flow
|
$
|
327.0
|
|
|
$
|
300.2
|
|
Revenue generating
capital expenditures
|
(73.5)
|
|
|
(56.7)
|
|
Net
|
$
|
253.5
|
|
|
$
|
243.5
|
|
|
|
Reconciliation
of Cash and Cash Equivalents to Free Cash
|
($ in
millions)
|
|
December
31,
2014
|
Cash and cash
equivalents
|
|
$
|
1,382.0
|
|
Client
cash
|
|
(533.8)
|
|
Deferred revenue —
event-related
|
|
(463.5)
|
|
Accrued artist
fees
|
|
(60.6)
|
|
Collections on behalf
of others
|
|
(51.2)
|
|
Prepaids related to
artist settlements/events
|
|
221.4
|
|
Free
cash
|
|
$
|
494.3
|
|
|
|
Reconciliation
of Net Income (Loss) Attributable to Common Stockholders of Live
Nation to
Normalized Net
Income (Loss) and Normalized EPS
|
($ in millions
except share and per share data)
|
Q4
2014
|
|
Q4
2013
|
|
12
months
2014
|
|
12
months
2013
|
Net Loss attributable
to common stockholders of Live Nation
|
$
|
(186.5)
|
|
|
$
|
(82.0)
|
|
|
$
|
(90.8)
|
|
|
$
|
(43.4)
|
|
Add: Goodwill
impairment
|
135.0
|
|
|
—
|
|
|
135.0
|
|
|
—
|
|
Add: Other
impairments
|
11.6
|
|
|
14.2
|
|
|
19.6
|
|
|
19.8
|
|
Less: Noncontrolling
interest share of impairments
|
(40.6)
|
|
|
$
|
(3.7)
|
|
|
(41.6)
|
|
|
$
|
(3.7)
|
|
Normalized net income
(loss)
|
$
|
(80.5)
|
|
|
$
|
(71.5)
|
|
|
$
|
22.2
|
|
|
$
|
(27.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share attributable to common stockholders of Live
Nation
|
(0.94)
|
|
|
(0.42)
|
|
|
(0.49)
|
|
|
(0.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized
EPS
|
(0.41)
|
|
|
(0.36)
|
|
|
0.09
|
|
|
(0.14)
|
|
|
|
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
the company's prospects for growth, increased tickets sales and
higher per show concerts attendance; its potential for continued
growth in the company's secondary ticketing business; its
expectations for growth of its global market share in its core
concerts business; its expected online advertising growth rate;
and its anticipated profit growth rate for its sponsorship and
advertising business. 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 below.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP
financial measure that the company defines as operating income
(loss) before acquisition expenses (including transaction costs,
changes in the fair value of accrued acquisition-related contingent
consideration arrangements, payments under the Trust Note and
acquisition-related severance), depreciation and amortization
(including goodwill impairment), loss (gain) on disposal of
operating assets and non-cash and certain stock-based compensation
expense (including expense associated with grants of certain
stock-based awards which were classified as liabilities). The
company uses AOI to evaluate the performance of its operating
segments. The company believes that information about AOI assists
investors by allowing them to evaluate changes in the operating
results of the portfolio of the 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 the company's
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.
Normalized Operating Income (Loss) is a non-GAAP financial
measure that the company defines as operating income (loss) before
goodwill impairments and other impairments. The company uses
normalized operating income (loss) to evaluate the performance of
its operations separate from specific impacts from certain
impairments affecting the comparability of results from period to
period. The company believes that information about normalized
operating income (loss) assists investors by allowing them to
evaluate changes in the operating results separate from specific
impacts from goodwill impairments and other impairments that are
considered non-operational. Accordingly, normalized operating
income (loss) 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, normalized operating income (loss) as presented herein may
not be comparable to similarly titled measures of other
companies.
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 for ticket
sales, 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.
Normalized Net Income (Loss) and Normalized EPS are non-GAAP
financial measures that the company defines as net income
(loss) attributable to common stockholders of Live Nation
Entertainment, Inc. before goodwill impairments and other
impairments, net of the noncontrolling interests' share of those
impairments, on both a total and per share basis. The company uses
normalized net income (loss) and normalized EPS to evaluate the
performance of its operations separate from specific impacts from
certain impairments on a net basis. The company believes that
information about normalized net income (loss) and normalized EPS
assists investors by allowing them to evaluate changes in the
results of the business separate from certain non-operational items
that affect net income. Normalized net income (loss) and normalized
EPS are not calculated or presented in accordance with GAAP. A
limitation of the use of normalized net income (loss) and
normalized EPS as performance measures is that they do not reflect
those impairments. Accordingly, normalized net income (loss) and
normalized EPS should be considered in addition to, and not as a
substitute for, net income (loss) and net income (loss) per common
share attributable to common stockholders of Live Nation
Entertainment, Inc. and other measures of financial performance
reported in accordance with GAAP. Furthermore, these measures
may vary among other companies; thus, normalized net income (loss)
and normalized EPS 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)
|
|
Non-cash
and
stock-based
compensation
expense
|
|
Loss (gain)
on
disposal
of
operating
assets
|
|
Depreciation
and
amortization
|
|
Goodwill
impairment
|
|
Acquisition
expenses
|
|
Operating
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(66.7)
|
|
|
$
|
1.2
|
|
|
$
|
0.4
|
|
|
$
|
30.2
|
|
|
$
|
117.0
|
|
|
$
|
3.3
|
|
|
$
|
(218.8)
|
|
Ticketing
|
93.7
|
|
|
0.6
|
|
|
0.1
|
|
|
62.4
|
|
|
—
|
|
|
0.6
|
|
|
30.0
|
|
Artist
Nation
|
17.9
|
|
|
1.2
|
|
|
—
|
|
|
17.4
|
|
|
18.0
|
|
|
0.2
|
|
|
(18.9)
|
|
Sponsorship &
Advertising
|
50.3
|
|
|
0.3
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
48.9
|
|
Other and
Eliminations
|
0.2
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
Corporate
|
(23.2)
|
|
|
4.3
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.5
|
|
|
(28.8)
|
|
Total Live Nation
|
$
|
72.2
|
|
|
$
|
7.5
|
|
|
$
|
0.5
|
|
|
$
|
111.4
|
|
|
$
|
135.0
|
|
|
$
|
4.6
|
|
|
$
|
(186.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(39.9)
|
|
|
$
|
1.6
|
|
|
$
|
4.7
|
|
|
$
|
35.8
|
|
|
$
|
—
|
|
|
$
|
(0.6)
|
|
|
$
|
(81.4)
|
|
Ticketing
|
80.7
|
|
|
(0.8)
|
|
|
—
|
|
|
62.2
|
|
|
—
|
|
|
—
|
|
|
19.3
|
|
Artist
Nation
|
12.0
|
|
|
0.2
|
|
|
(0.1)
|
|
|
11.7
|
|
|
—
|
|
|
(0.1)
|
|
|
0.3
|
|
Sponsorship &
Advertising
|
40.5
|
|
|
0.2
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
0.1
|
|
|
38.6
|
|
Other and
Eliminations
|
(0.6)
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
|
—
|
|
|
(0.1)
|
|
Corporate
|
(21.4)
|
|
|
4.1
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
1.7
|
|
|
(27.7)
|
|
Total Live Nation
|
$
|
71.3
|
|
|
$
|
5.3
|
|
|
$
|
4.6
|
|
|
$
|
111.3
|
|
|
$
|
—
|
|
|
$
|
1.1
|
|
|
$
|
(51.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
50.6
|
|
|
$
|
6.7
|
|
|
$
|
(2.9)
|
|
|
$
|
115.1
|
|
|
$
|
117.0
|
|
|
$
|
5.2
|
|
|
$
|
(190.5)
|
|
Ticketing
|
326.1
|
|
|
4.1
|
|
|
(1.6)
|
|
|
204.9
|
|
|
—
|
|
|
1.4
|
|
|
117.3
|
|
Artist
Nation
|
48.1
|
|
|
9.0
|
|
|
—
|
|
|
43.3
|
|
|
18.0
|
|
|
0.6
|
|
|
(22.8)
|
|
Sponsorship &
Advertising
|
213.4
|
|
|
1.4
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
—
|
|
|
207.7
|
|
Other and
Eliminations
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(2.1)
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
Corporate
|
(83.2)
|
|
|
17.8
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
2.9
|
|
|
(106.5)
|
|
Total Live Nation
|
$
|
554.9
|
|
|
$
|
39.0
|
|
|
$
|
(4.5)
|
|
|
$
|
368.1
|
|
|
$
|
135.0
|
|
|
$
|
10.1
|
|
|
$
|
7.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
60.3
|
|
|
$
|
5.7
|
|
|
$
|
(38.9)
|
|
|
$
|
132.4
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
(39.6)
|
|
Ticketing
|
298.1
|
|
|
5.3
|
|
|
—
|
|
|
190.8
|
|
|
—
|
|
|
0.2
|
|
|
101.8
|
|
Artist
Nation
|
32.1
|
|
|
0.6
|
|
|
0.6
|
|
|
42.6
|
|
|
—
|
|
|
—
|
|
|
(11.7)
|
|
Sponsorship &
Advertising
|
194.8
|
|
|
0.8
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
|
0.1
|
|
|
191.6
|
|
Other and
Eliminations
|
(1.8)
|
|
|
—
|
|
|
—
|
|
|
(1.8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Corporate
|
(78.3)
|
|
|
16.1
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
5.4
|
|
|
(102.4)
|
|
Total Live Nation
|
$
|
505.2
|
|
|
$
|
28.5
|
|
|
$
|
(38.3)
|
|
|
$
|
368.9
|
|
|
$
|
—
|
|
|
$
|
6.4
|
|
|
$
|
139.7
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
SELECTED CASH FLOW
INFORMATION
|
|
Year Ended
December 31,
|
|
2014
|
|
2013
|
|
2012
|
|
|
(in
thousands)
|
Net cash provided by
operating activities
|
$
|
269,409
|
|
|
$
|
417,472
|
|
|
$
|
367,098
|
|
Net cash used in
investing activities
|
(384,294)
|
|
|
(143,663)
|
|
|
(203,791)
|
|
Net cash provided by
(used in) financing activities
|
240,864
|
|
|
32,984
|
|
|
(19,891)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(43,134)
|
|
|
(8,664)
|
|
|
13,386
|
|
Net increase in cash
and cash equivalents
|
82,845
|
|
|
298,129
|
|
|
156,802
|
|
Cash and cash
equivalents at beginning of period
|
1,299,184
|
|
|
1,001,055
|
|
|
844,253
|
|
Cash and cash
equivalents at end of period
|
$
|
1,382,029
|
|
|
$
|
1,299,184
|
|
|
$
|
1,001,055
|
|
|
|
Photo -
http://photos.prnewswire.com/prnh/20150226/178181
Photo - http://photos.prnewswire.com/prnh/20150226/178178
Photo - http://photos.prnewswire.com/prnh/20150226/178179
Photo - http://photos.prnewswire.com/prnh/20150226/178180
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/live-nation-entertainment-reports-fourth-quarter-and-full-year-2014-results-300042420.html
SOURCE Live Nation Entertainment