LOS ANGELES, Feb. 23, 2017 /PRNewswire/ --
Full Year 2016 - A Record Year for Live Nation
- Revenue Up 15% to $8.4
Billion
- Operating Income Up 48% to $195
Million
- Free Cash Flow Up 5% to $352
Million
- AOI Up 12% to $646 Million at
Constant Currency
- Live Nation Concerts Attendance of 71 Million, Up
12%
- Sponsorship & Advertising Revenue Up 13%
- Ticketmaster Fee-Bearing GTV Up 16% at Constant
Currency
- Secondary GTV Up 26% at Constant Currency
Live Nation Entertainment (NYSE: LYV) today released financial
results for the three and twelve months ended December 31,
2016.
Live Nation delivered its sixth consecutive year of record
results across revenue, adjusted operating income, or AOI, and free
cash flow, and also delivered operating income growth in
2016. For the year, revenue was up 15%, operating income was
up 48%, and free cash flow was up 5%, all as reported, and AOI was
up 12% at constant currency. Our core divisions - concerts,
ticketing and advertising - each delivered their strongest
operating income and AOI results in the history of the company.
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. We believe the live
business will continue to have strong growth for years to come as
fans globally drive demand, artists are motivated to tour, and
technology drives conversion.
Concerts Market Share Growth Accelerated in 2016
Live Nation continued to grow its global market share, adding
over 7 million fans globally in 2016 for a total of over 71 million
fans, driving revenue up 18%, operating income up 88%, and more
than doubling concerts AOI. We built on our global leadership
position in every part of our business, with double-digit fan
growth in both North America and
internationally, and across stadiums, amphitheaters, festivals,
theaters and clubs.
We continued expanding our global footprint in 2016 as we added
promoting offices in Germany,
South Africa, and Israel, taking us to 40 countries
worldwide. Across all our markets, we invested $4.4 billion to put on 26 thousand shows, with
Live Nation now by far the largest financial supporter of artists
in music.
Fans more than ever find the live experience, from club shows to
arenas to festivals, a top entertainment choice and the best way to
celebrate their favorite artists and share the experience with
other fans. This, combined with an ongoing shift of consumer
spending toward experiences, is helping drive a structural increase
in demand for concerts globally. And in addition to fan
growth, with this demand we are also seeing an increasing
willingness by fans to spend more for tickets to the show and once
they are there.
Average ticket prices for our shows increased by 5% in 2016,
with high single- to double-digit growth at amphitheaters, arenas
and stadiums. These increases were driven largely by higher
pricing for the best tickets, as artists more effectively captured
the true value from their shows.
Once at the show, average per fan spending grew as well.
At our amphitheaters, spending grew by 9% to over $22 as we added more high-end products, improved
the quality of our food and beverage offering and increased our
points of sale.
Our growth is continuing into 2017, a further sign of the
tremendous fan demand for our concerts and the success of our
global growth strategy. Ticket sales are up double digits
year-on-year through February
17th, driven by sales for arena and stadium
shows, and we are confident we will again see strong growth in fan
demand across our business this year.
Advertising Continued Strong Growth in 2016
We grew our high-margin sponsorship & advertising revenue by
13%, operating income by 4%, both as reported, and AOI by 10% at
constant currency in 2016, with our 71 million onsite fans
providing a unique advertising platform for our sponsors, which we
then extend through online advertising.
In 2016, our top strategic sponsors were a key driver of our
growth as our 50 plus sponsors that spend over $1 million per year with us collectively spent
$245 million to reach our fans, up
20% from last year.
Sponsorship at our festivals, connecting brands with those
onsite millennial fans, continued to grow as we increased festival
sponsorship contribution margin by 18% at constant currency and
festival sponsorship contribution margin per fan by 12% at
like-for-like festivals for the year.
At the same time, we continue to amplify our onsite advertising
with our online reach. In 2016, we generated over 4 billion
views across Live Nation sites and platform partners including
Snapchat, Facebook and YouTube, providing our brand partners with
further scale and reach.
We expect continued advertising growth at historical levels in
2017, with over 70% of our budgeted advertising revenue for the
year already contracted, and pacing double digits ahead of last
year at this time.
Ticketmaster Extends Global Leadership in Ticketing
In 2016, Ticketmaster continued growing its global leadership in
ticketing, with fee-bearing gross transaction value, or GTV, up 16%
and overall GTV up 11% to $28 billion
at constant currency while delivering 480 million tickets to fans
in 28 countries. This drove our 11% increase in ticketing
revenue, 10% increase in operating income, both as reported, and 6%
growth in AOI at constant currency.
Our secondary ticketing GTV growth of 26% in 2016, at constant
currency, was driven by the premise that we should safely and
transparently provide all options to fans at Ticketmaster, which
has been embraced by ticket buyers. Overall, the Ticketmaster
platform continues to demonstrate its effectiveness in selling
tickets to fans, with 6 of the top 10 sales months ever occurring
in 2016, and conversion rates up across both online and mobile
platforms.
Our recent investments in Ticketmaster's enterprise platform and
open API now allow clients to sell tickets on partner sites,
driving the sale of over 10 million tickets in 2016. This has
further deepened our relationship with teams and artists who are
looking for enhanced reach with sites such as Spotify, Bandsintown,
Facebook, Groupon and Costco, and more in progress.
With the combination of a stronger than ever ticketing destination
at Ticketmaster and increasingly broad distribution, Ticketmaster
is better positioned than ever to continue growing its global
leadership position in ticketing. This success is continuing
into 2017, as ticket sales are up 9% through February 17th, positioning us for
continued growth.
2017 Growth Drivers
As I have noted, the key leading indicators for each of our
businesses are up year-on-year into February, pointing to continued
strong growth in 2017. We plan on holding more concerts for
more fans in more countries than ever before. We expect to
sell more advertising, both onsite and online. And through
continued product innovation and expanded distribution at
Ticketmaster, we plan on selling more tickets and driving increased
conversion.
Our success in 2016 reaffirms that Live Nation has created an
unparalleled live platform, bringing 550 million fans in 40
countries to those unrivaled 2-hour events each year. The
live business continues to have a strong growth opportunity with
artists touring as their primary source of income and using
concerts as the best way to engage and connect with their fans.
For Live Nation, we believe this sets us up well as our scale
and breadth continue to grow and we drive increased value with our
business model of higher profits per show, more advertising and
increased ticket sales. All of this creates tremendous runway
for Live Nation to continue delivering the level of growth we have
demonstrated over the last several years.
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) 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 – 4th QUARTER
|
(unaudited; $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016
Reported
|
|
Q4 2015
Reported
|
|
Growth
|
|
Q4 2016
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
1,098.1
|
|
|
$
|
1,081.5
|
|
|
2
|
%
|
|
$
|
1,118.0
|
|
|
3
|
%
|
Sponsorship &
Advertising
|
88.7
|
|
|
74.0
|
|
|
20
|
%
|
|
90.3
|
|
|
22
|
%
|
Ticketing
|
522.4
|
|
|
477.6
|
|
|
9
|
%
|
|
531.8
|
|
|
11
|
%
|
Artist
Nation
|
109.1
|
|
|
131.7
|
|
|
(17%)
|
|
|
110.5
|
|
|
(16%)
|
|
Other &
Eliminations
|
(20.7)
|
|
|
(28.0)
|
|
|
26
|
%
|
|
(20.7)
|
|
|
26
|
%
|
|
$
|
1,797.6
|
|
|
$
|
1,736.8
|
|
|
4
|
%
|
|
$
|
1,829.9
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(68.2)
|
|
|
$
|
(101.6)
|
|
|
33
|
%
|
|
$
|
(69.8)
|
|
|
31
|
%
|
Sponsorship &
Advertising
|
48.2
|
|
|
44.8
|
|
|
8
|
%
|
|
49.2
|
|
|
10
|
%
|
Ticketing
|
39.1
|
|
|
38.4
|
|
|
2
|
%
|
|
38.1
|
|
|
(1%)
|
|
Artist
Nation
|
(9.4)
|
|
|
6.2
|
|
|
*
|
|
(9.9)
|
|
|
*
|
Other &
Eliminations
|
(5.5)
|
|
|
0.3
|
|
|
*
|
|
(5.5)
|
|
|
*
|
Corporate
|
(41.4)
|
|
|
(28.6)
|
|
|
(45%)
|
|
|
(41.4)
|
|
|
(45%)
|
|
|
$
|
(37.2)
|
|
|
$
|
(40.5)
|
|
|
8
|
%
|
|
$
|
(39.3)
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
(27.5)
|
|
|
(49.9)
|
|
|
45
|
%
|
|
(27.4)
|
|
|
45
|
%
|
Sponsorship &
Advertising
|
52.9
|
|
|
48.4
|
|
|
9
|
%
|
|
53.9
|
|
|
11
|
%
|
Ticketing
|
94.0
|
|
|
97.8
|
|
|
(4%)
|
|
|
94.2
|
|
|
(4%)
|
|
Artist
Nation
|
4.3
|
|
|
28.3
|
|
|
(85%)
|
|
|
4.3
|
|
|
(85%)
|
|
Other &
Eliminations
|
(5.1)
|
|
|
(0.4)
|
|
|
*
|
|
(5.1)
|
|
|
*
|
Corporate
|
(35.7)
|
|
|
(23.1)
|
|
|
(55%)
|
|
|
(35.7)
|
|
|
(55%)
|
|
|
$
|
82.9
|
|
|
$
|
101.1
|
|
|
(18%)
|
|
|
$
|
84.2
|
|
|
(17%)
|
|
*
percentages are not meaningful
|
FINANCIAL
HIGHLIGHTS – 12 MONTHS
|
(unaudited; $ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
12 Months
2016
Reported
|
|
12 Months
2015
Reported
|
|
Growth
|
|
12 Months
2016
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
5,874.1
|
|
|
$
|
4,965.0
|
|
|
18
|
%
|
|
$
|
5,961.9
|
|
|
20
|
%
|
Sponsorship &
Advertising
|
377.6
|
|
|
333.7
|
|
|
13
|
%
|
|
384.4
|
|
|
15
|
%
|
Ticketing
|
1,827.9
|
|
|
1,639.6
|
|
|
11
|
%
|
|
1,851.5
|
|
|
13
|
%
|
Artist
Nation
|
421.7
|
|
|
434.2
|
|
|
(3%)
|
|
|
426.6
|
|
|
(2%)
|
|
Other &
Eliminations
|
(146.4)
|
|
|
(126.8)
|
|
|
(16%)
|
|
|
(146.4)
|
|
|
(16%)
|
|
|
$
|
8,354.9
|
|
|
$
|
7,245.7
|
|
|
15
|
%
|
|
$
|
8,478.0
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(12.1)
|
|
|
$
|
(105.3)
|
|
|
88
|
%
|
|
$
|
(16.2)
|
|
|
85
|
%
|
Sponsorship &
Advertising
|
228.1
|
|
|
218.4
|
|
|
4
|
%
|
|
233.6
|
|
|
7
|
%
|
Ticketing
|
174.5
|
|
|
158.2
|
|
|
10
|
%
|
|
171.9
|
|
|
9
|
%
|
Artist
Nation
|
(51.2)
|
|
|
(28.2)
|
|
|
(82%)
|
|
|
(52.0)
|
|
|
(84%)
|
|
Other &
Eliminations
|
(14.7)
|
|
|
(0.1)
|
|
|
*
|
|
(14.7)
|
|
|
*
|
Corporate
|
(129.7)
|
|
|
(111.6)
|
|
|
(16%)
|
|
|
(129.7)
|
|
|
(16%)
|
|
|
$
|
194.9
|
|
|
$
|
131.4
|
|
|
48
|
%
|
|
$
|
192.9
|
|
|
47
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
138.9
|
|
|
61.5
|
|
|
126
|
%
|
|
138.4
|
|
|
125
|
%
|
Sponsorship &
Advertising
|
247.6
|
|
|
229.9
|
|
|
8
|
%
|
|
253.0
|
|
|
10
|
%
|
Ticketing
|
365.3
|
|
|
346.5
|
|
|
5
|
%
|
|
365.9
|
|
|
6
|
%
|
Artist
Nation
|
10.3
|
|
|
33.2
|
|
|
(69%)
|
|
|
10.5
|
|
|
(68%)
|
|
Other &
Eliminations
|
(14.0)
|
|
|
(2.2)
|
|
|
*
|
|
(14.0)
|
|
|
*
|
Corporate
|
(108.0)
|
|
|
(90.9)
|
|
|
(19%)
|
|
|
(108.0)
|
|
|
(19%)
|
|
|
$
|
640.1
|
|
|
$
|
578.0
|
|
|
11
|
%
|
|
$
|
645.8
|
|
|
12
|
%
|
* percentages are
not meaningful
|
|
As of
December 31, 2016, total cash and cash equivalents were $1.5
billion, which includes $591 million in ticketing client cash and
$411 million in free cash. Event-related deferred revenue was
up 30% to $722 million as of December 31, 2016, compared to
$553 million as of the same date in 2015.
|
KEY OPERATING
METRICS
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2014
|
|
(in thousands
except estimated events)
|
Concerts
(1)
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
North
America
|
17,554
|
|
|
16,846
|
|
|
15,941
|
|
International
|
8,708
|
|
|
8,665
|
|
|
6,853
|
|
Total estimated
events
|
26,262
|
|
|
25,511
|
|
|
22,794
|
|
Estimated
fans:
|
|
|
|
|
|
North
America
|
48,813
|
|
|
43,739
|
|
|
40,069
|
|
International
|
22,330
|
|
|
19,703
|
|
|
18,486
|
|
Total estimated
fans
|
71,143
|
|
|
63,442
|
|
|
58,555
|
|
Ticketing
(2)
|
|
|
|
|
|
Number of fee-bearing
tickets sold
|
185,543
|
|
|
173,871
|
|
|
163,184
|
|
Number of
non-fee-bearing tickets sold
|
298,157
|
|
|
298,549
|
|
|
300,030
|
|
Total tickets
sold
|
483,700
|
|
|
472,420
|
|
|
463,214
|
|
|
|
(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
fee-bearing tickets sold includes primary and secondary tickets
that are sold using our Ticketmaster systems or that we issue
through affiliates. This metric includes primary tickets sold
during the year regardless of event timing, except for our own
events where our concert promoters control ticketing which are
reported as the events occur. The non-fee-bearing tickets sold
includes primary tickets sold using our Ticketmaster systems,
through season seat packages and our venue clients' box offices,
along with tickets sold on our 'do it yourself'
platform.
|
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
2016
|
|
Q4
2015
|
Adjusted operating
income
|
$
|
82.9
|
|
|
$
|
101.1
|
|
Less: Cash
interest expense — net
|
(28.7)
|
|
|
(24.8)
|
|
Cash
taxes
|
(3.0)
|
|
|
(14.8)
|
|
Maintenance
capital expenditures
|
(33.7)
|
|
|
(34.6)
|
|
Distributions to
noncontrolling interests
|
(29.8)
|
|
|
(16.8)
|
|
Distributions from
(contributions to) investments in nonconsolidated
affiliates
|
(9.0)
|
|
|
0.0
|
|
Free cash
flow
|
$
|
(21.3)
|
|
|
$
|
10.1
|
|
Revenue
generating capital expenditures
|
(32.5)
|
|
|
(15.6)
|
|
Net
|
$
|
(53.8)
|
|
|
$
|
(5.5)
|
|
|
|
|
|
($ in
millions)
|
12 Months
2016
|
|
12 Months
2015
|
Adjusted operating
income
|
$
|
640.1
|
|
|
$
|
578.1
|
|
Less: Cash
interest expense — net
|
(96.7)
|
|
|
(92.6)
|
|
Cash
taxes
|
(30.3)
|
|
|
(44.3)
|
|
Maintenance
capital expenditures
|
(92.1)
|
|
|
(79.0)
|
|
Distributions to
noncontrolling interests
|
(55.1)
|
|
|
(30.6)
|
|
Distributions from
(contributions to) investments in nonconsolidated
affiliates
|
(14.0)
|
|
|
3.3
|
|
Free cash
flow
|
$
|
351.9
|
|
|
$
|
334.9
|
|
Revenue
generating capital expenditures
|
(94.7)
|
|
|
(65.7)
|
|
Net
|
$
|
257.2
|
|
|
$
|
269.2
|
|
Reconciliation
of Cash and Cash Equivalents to Free Cash
|
|
($ in
millions)
|
|
December 31,
2016
|
Cash and cash
equivalents
|
|
$
|
1,526.6
|
Client
cash
|
|
(591.0)
|
Deferred revenue —
event-related
|
|
(721.6)
|
Accrued artist
fees
|
|
(35.1)
|
Collections on behalf
of others
|
|
(31.2)
|
Prepaids related to
artist settlements/events
|
|
263.4
|
Free
cash
|
|
$
|
411.1
|
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
the growth prospects of live events and the related strength of
global consumer demand, artist touring frequencies and onsite
spending by fans, both in 2017 and beyond; expected advertising
growth at a historic level in 2017; Ticketmaster's global ticketing
leadership position and growth potential; the company's anticipated
growth in 2017 at levels consistent with recent years, and related
plans to hold more concerts, sell more advertising and sell more
tickets with increased conversion in 2017; and the expected growth
in the company's scale and breadth as it executes on its business
model. 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 the company defines as operating income
(loss) before acquisition expenses (including transaction costs,
changes in the fair value of accrued acquisition-related contingent
consideration obligations, and acquisition-related severance and
compensation), depreciation and amortization (including goodwill
impairment), loss (gain) on disposal of operating assets and
certain stock-based compensation expense. 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.
Constant Currency is a non-GAAP financial measure. The
company calculates 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. The company presents constant currency information
to provide a framework for assessing how our underlying businesses
performed excluding the effect of foreign currency rate
fluctuations.
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. 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
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(27.4)
|
|
|
$
|
(0.1)
|
|
|
$
|
(27.5)
|
|
|
$
|
1.2
|
|
|
$
|
0.1
|
|
|
$
|
36.5
|
|
|
$
|
2.9
|
|
|
$
|
(68.2)
|
|
Sponsorship &
Advertising
|
53.9
|
|
|
(1.0)
|
|
|
52.9
|
|
|
0.3
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
|
48.2
|
|
Ticketing
|
94.2
|
|
|
(0.2)
|
|
|
94.0
|
|
|
1.3
|
|
|
—
|
|
|
53.2
|
|
|
0.4
|
|
|
39.1
|
|
Artist
Nation
|
4.3
|
|
|
—
|
|
|
4.3
|
|
|
0.7
|
|
|
—
|
|
|
12.2
|
|
|
0.8
|
|
|
(9.4)
|
|
Other and
Eliminations
|
(5.1)
|
|
|
—
|
|
|
(5.1)
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
(5.5)
|
|
Corporate
|
(35.7)
|
|
|
—
|
|
|
(35.7)
|
|
|
3.8
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
|
(41.4)
|
|
Total Live Nation
|
$
|
84.2
|
|
|
$
|
(1.3)
|
|
|
$
|
82.9
|
|
|
$
|
7.5
|
|
|
$
|
0.1
|
|
|
$
|
108.4
|
|
|
$
|
4.1
|
|
|
$
|
(37.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(49.9)
|
|
|
$
|
—
|
|
|
$
|
(49.9)
|
|
|
$
|
1.6
|
|
|
$
|
—
|
|
|
$
|
41.5
|
|
|
$
|
8.6
|
|
|
$
|
(101.6)
|
|
Sponsorship &
Advertising
|
48.4
|
|
|
—
|
|
|
48.4
|
|
|
0.3
|
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|
44.8
|
|
Ticketing
|
97.8
|
|
|
—
|
|
|
97.8
|
|
|
0.7
|
|
|
—
|
|
|
58.7
|
|
|
—
|
|
|
38.4
|
|
Artist
Nation
|
28.3
|
|
|
—
|
|
|
28.3
|
|
|
1.2
|
|
|
—
|
|
|
21.0
|
|
|
(0.1)
|
|
|
6.2
|
|
Other and
Eliminations
|
(0.4)
|
|
|
—
|
|
|
(0.4)
|
|
|
—
|
|
|
—
|
|
|
(0.6)
|
|
|
(0.1)
|
|
|
0.3
|
|
Corporate
|
(23.1)
|
|
|
—
|
|
|
(23.1)
|
|
|
4.0
|
|
|
0.3
|
|
|
1.2
|
|
|
—
|
|
|
(28.6)
|
|
Total Live Nation
|
$
|
101.1
|
|
|
$
|
—
|
|
|
$
|
101.1
|
|
|
$
|
7.8
|
|
|
$
|
0.3
|
|
|
$
|
125.1
|
|
|
$
|
8.4
|
|
|
$
|
(40.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
138.4
|
|
|
$
|
0.5
|
|
|
$
|
138.9
|
|
|
$
|
6.7
|
|
|
$
|
(0.1)
|
|
|
$
|
137.6
|
|
|
$
|
6.8
|
|
|
$
|
(12.1)
|
|
Sponsorship &
Advertising
|
253.0
|
|
|
(5.4)
|
|
|
247.6
|
|
|
1.3
|
|
|
—
|
|
|
18.2
|
|
|
—
|
|
|
228.1
|
|
Ticketing
|
365.9
|
|
|
(0.6)
|
|
|
365.3
|
|
|
3.7
|
|
|
0.1
|
|
|
185.9
|
|
|
1.1
|
|
|
174.5
|
|
Artist
Nation
|
10.5
|
|
|
(0.2)
|
|
|
10.3
|
|
|
3.8
|
|
|
—
|
|
|
57.1
|
|
|
0.6
|
|
|
(51.2)
|
|
Other and
Eliminations
|
(14.0)
|
|
|
—
|
|
|
(14.0)
|
|
|
0.2
|
|
|
—
|
|
|
0.4
|
|
|
0.1
|
|
|
(14.7)
|
|
Corporate
|
(108.0)
|
|
|
—
|
|
|
(108.0)
|
|
|
17.0
|
|
|
0.1
|
|
|
4.5
|
|
|
0.1
|
|
|
(129.7)
|
|
Total Live Nation
|
$
|
645.8
|
|
|
$
|
(5.7)
|
|
|
$
|
640.1
|
|
|
$
|
32.7
|
|
|
$
|
0.1
|
|
|
$
|
403.7
|
|
|
$
|
8.7
|
|
|
$
|
194.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
61.5
|
|
|
$
|
—
|
|
|
$
|
61.5
|
|
|
$
|
7.0
|
|
|
$
|
0.4
|
|
|
$
|
146.8
|
|
|
$
|
12.6
|
|
|
$
|
(105.3)
|
|
Sponsorship &
Advertising
|
229.9
|
|
|
—
|
|
|
229.9
|
|
|
1.6
|
|
|
—
|
|
|
9.9
|
|
|
—
|
|
|
218.4
|
|
Ticketing
|
346.5
|
|
|
—
|
|
|
346.5
|
|
|
2.9
|
|
|
—
|
|
|
184.1
|
|
|
1.3
|
|
|
158.2
|
|
Artist
Nation
|
33.2
|
|
|
—
|
|
|
33.2
|
|
|
4.9
|
|
|
0.2
|
|
|
55.0
|
|
|
1.3
|
|
|
(28.2)
|
|
Other and
Eliminations
|
(2.2)
|
|
|
—
|
|
|
(2.2)
|
|
|
—
|
|
|
—
|
|
|
(2.1)
|
|
|
—
|
|
|
(0.1)
|
|
Corporate
|
(90.9)
|
|
|
—
|
|
|
(90.9)
|
|
|
17.0
|
|
|
0.2
|
|
|
3.5
|
|
|
—
|
|
|
(111.6)
|
|
Total Live Nation
|
$
|
578.0
|
|
|
$
|
—
|
|
|
$
|
578.0
|
|
|
$
|
33.4
|
|
|
$
|
0.8
|
|
|
$
|
397.2
|
|
|
$
|
15.2
|
|
|
$
|
131.4
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
December
31,
|
|
2016
|
|
2015
|
|
(in thousands,
except share data)
|
ASSETS
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,526,591
|
|
|
$
|
1,303,125
|
|
Accounts receivable,
less allowance of $29,634 and $17,168 in 2016 and 2015,
respectively
|
568,936
|
|
|
452,600
|
|
Prepaid
expenses
|
528,250
|
|
|
496,226
|
|
Other current
assets
|
49,774
|
|
|
36,364
|
|
Total current
assets
|
2,673,551
|
|
|
2,288,315
|
|
Property, plant and
equipment
|
|
|
|
Land, buildings and
improvements
|
838,545
|
|
|
840,032
|
|
Computer equipment
and capitalized software
|
524,571
|
|
|
505,233
|
|
Furniture and other
equipment
|
256,765
|
|
|
233,271
|
|
Construction in
progress
|
125,430
|
|
|
47,684
|
|
|
1,745,311
|
|
|
1,626,220
|
|
Less accumulated
depreciation
|
993,775
|
|
|
894,938
|
|
|
751,536
|
|
|
731,282
|
|
Intangible
assets
|
|
|
|
Definite-lived
intangible assets, net
|
812,031
|
|
|
777,763
|
|
Indefinite-lived
intangible assets
|
368,766
|
|
|
369,317
|
|
Goodwill
|
1,747,088
|
|
|
1,604,315
|
|
Other long-term
assets
|
411,294
|
|
|
385,249
|
|
Total
assets
|
$
|
6,764,266
|
|
|
$
|
6,156,241
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable,
client accounts
|
$
|
726,475
|
|
|
$
|
662,941
|
|
Accounts
payable
|
55,030
|
|
|
58,607
|
|
Accrued
expenses
|
781,494
|
|
|
686,664
|
|
Deferred
revenue
|
804,973
|
|
|
618,640
|
|
Current portion of
long-term debt, net
|
53,317
|
|
|
42,352
|
|
Other current
liabilities
|
39,055
|
|
|
32,002
|
|
Total current
liabilities
|
2,460,344
|
|
|
2,101,206
|
|
Long-term debt,
net
|
2,259,736
|
|
|
2,002,662
|
|
Long-term deferred
income taxes
|
197,811
|
|
|
199,472
|
|
Other long-term
liabilities
|
149,791
|
|
|
142,267
|
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
347,068
|
|
|
263,715
|
|
Stockholders'
equity
|
|
|
|
Preferred
stock—Series A Junior Participating, $.01 par value; 20,000,000
shares authorized; no shares issued and outstanding
|
—
|
|
|
—
|
|
Preferred stock, $.01
par value; 30,000,000 shares authorized; no shares issued and
outstanding
|
—
|
|
|
—
|
|
Common stock, $.01
par value; 450,000,000 shares authorized; 204,475,849 and
202,891,231 shares issued and 204,067,825 and 202,483,207 shares
outstanding in 2016 and 2015, respectively
|
2,034
|
|
|
2,020
|
|
Additional paid-in
capital
|
2,381,011
|
|
|
2,428,566
|
|
Accumulated
deficit
|
(1,073,457)
|
|
|
(1,075,111)
|
|
Cost of shares held
in treasury (408,024 shares)
|
(6,865)
|
|
|
(6,865)
|
|
Accumulated other
comprehensive loss
|
(176,707)
|
|
|
(111,657)
|
|
Total Live Nation
stockholders' equity
|
1,126,016
|
|
|
1,236,953
|
|
Noncontrolling
interests
|
223,500
|
|
|
209,966
|
|
Total
equity
|
1,349,516
|
|
|
1,446,919
|
|
Total liabilities
and equity
|
$
|
6,764,266
|
|
|
$
|
6,156,241
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Year Ended
December 31,
|
|
|
2016
|
|
2015
|
|
2014
|
|
(in thousands
except share and per share data)
|
Revenue
|
|
$
|
8,354,934
|
|
|
$
|
7,245,731
|
|
|
$
|
6,866,964
|
|
Operating
expenses:
|
|
|
|
|
|
|
Direct operating
expenses
|
|
6,082,708
|
|
|
5,196,473
|
|
|
4,919,969
|
|
Selling, general and
administrative expenses
|
|
1,548,450
|
|
|
1,411,855
|
|
|
1,337,316
|
|
Depreciation and
amortization
|
|
403,651
|
|
|
397,241
|
|
|
368,143
|
|
Goodwill
impairment
|
|
—
|
|
|
—
|
|
|
134,961
|
|
Loss (gain) on
disposal of operating assets
|
|
124
|
|
|
845
|
|
|
(4,494)
|
|
Corporate
expenses
|
|
125,061
|
|
|
107,945
|
|
|
103,905
|
|
Operating
income
|
|
194,940
|
|
|
131,372
|
|
|
7,164
|
|
Interest
expense
|
|
106,506
|
|
|
102,881
|
|
|
106,312
|
|
Loss on
extinguishment of debt
|
|
14,049
|
|
|
—
|
|
|
188
|
|
Interest
income
|
|
(2,573)
|
|
|
(3,528)
|
|
|
(3,606)
|
|
Equity in earnings of
nonconsolidated affiliates
|
|
17,802
|
|
|
(1,502)
|
|
|
(4,166)
|
|
Other expense,
net
|
|
10,830
|
|
|
27,168
|
|
|
8,256
|
|
Income (loss) before
income taxes
|
|
48,326
|
|
|
6,353
|
|
|
(99,820)
|
|
Income tax
expense
|
|
28,029
|
|
|
22,122
|
|
|
4,630
|
|
Net income
(loss)
|
|
20,297
|
|
|
(15,769)
|
|
|
(104,450)
|
|
Net income (loss)
attributable to noncontrolling interests
|
|
17,355
|
|
|
16,739
|
|
|
(13,643)
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
|
$
|
2,942
|
|
|
$
|
(32,508)
|
|
|
$
|
(90,807)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share available to common stockholders of Live
Nation
|
|
$
|
(0.23)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.49)
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic and
diluted
|
|
202,076,243
|
|
|
200,973,485
|
|
|
198,874,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income (loss) available to common stockholders of Live
Nation:
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
|
$
|
2,942
|
|
|
$
|
(32,508)
|
|
|
$
|
(90,807)
|
|
Accretion of
redeemable noncontrolling interests
|
|
(49,952)
|
|
|
(33,179)
|
|
|
(5,660)
|
|
Basic and diluted net
loss available to common stockholders of Live Nation
|
|
$
|
(47,010)
|
|
|
$
|
(65,687)
|
|
|
$
|
(96,467)
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2014
|
|
|
|
(as
adjusted)
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
(loss)
|
$
|
20,297
|
|
|
$
|
(15,769)
|
|
|
$
|
(104,450)
|
|
Reconciling
items:
|
|
|
|
|
|
Depreciation
|
139,288
|
|
|
134,148
|
|
|
127,168
|
|
Amortization
|
264,363
|
|
|
263,093
|
|
|
240,975
|
|
Goodwill
impairment
|
—
|
|
|
—
|
|
|
134,961
|
|
Deferred income tax
benefit
|
(7,891)
|
|
|
(9,611)
|
|
|
(17,664)
|
|
Amortization of debt
issuance costs, discounts and premium, net
|
12,594
|
|
|
10,885
|
|
|
16,038
|
|
Provision for
uncollectible accounts receivable and advances
|
21,681
|
|
|
19,505
|
|
|
6,540
|
|
Loss on
extinguishment of debt
|
14,049
|
|
|
—
|
|
|
188
|
|
Non-cash compensation
expense
|
32,723
|
|
|
33,361
|
|
|
39,029
|
|
Equity in losses
(earnings) of nonconsolidated affiliates, net of
distributions
|
27,498
|
|
|
9,436
|
|
|
3,698
|
|
Gain on consolidation
of nonconsolidated affiliates
|
(501)
|
|
|
(8,685)
|
|
|
(16,356)
|
|
Other, net
|
(8,801)
|
|
|
5,170
|
|
|
(11,313)
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
|
|
Increase in accounts
receivable
|
(146,128)
|
|
|
(67,235)
|
|
|
(14,356)
|
|
Increase in prepaid
expenses and other assets
|
(129,748)
|
|
|
(122,872)
|
|
|
(231,560)
|
|
Increase in accounts
payable, accrued expenses and other liabilities
|
193,775
|
|
|
3,480
|
|
|
45,538
|
|
Increase in deferred
revenue
|
164,291
|
|
|
52,948
|
|
|
73,730
|
|
Net cash provided by
operating activities
|
597,490
|
|
|
307,854
|
|
|
292,166
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Advances of notes
receivable
|
(17,227)
|
|
|
(28,288)
|
|
|
(34,395)
|
|
Investments made in
nonconsolidated affiliates
|
(28,922)
|
|
|
(21,998)
|
|
|
(19,600)
|
|
Purchases of
property, plant and equipment
|
(173,827)
|
|
|
(142,491)
|
|
|
(139,587)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(211,624)
|
|
|
(89,780)
|
|
|
(210,243)
|
|
Purchases of
intangible assets
|
(6,234)
|
|
|
(12,267)
|
|
|
(3,350)
|
|
Other, net
|
11,357
|
|
|
3,839
|
|
|
15,017
|
|
Net cash used in
investing activities
|
(426,477)
|
|
|
(290,985)
|
|
|
(392,158)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from
long-term debt, net of debt issuance costs
|
844,451
|
|
|
57,276
|
|
|
515,385
|
|
Payments on long-term
debt including extinguishment costs
|
(606,831)
|
|
|
(63,569)
|
|
|
(253,773)
|
|
Distributions to
noncontrolling interests
|
(55,131)
|
|
|
(30,645)
|
|
|
(32,513)
|
|
Purchases and sales
of noncontrolling interests, net
|
(69,106)
|
|
|
(9,752)
|
|
|
(4,391)
|
|
Proceeds from
exercise of stock options
|
20,299
|
|
|
16,280
|
|
|
21,797
|
|
Payments for deferred
and contingent consideration
|
(20,451)
|
|
|
(6,770)
|
|
|
(5,722)
|
|
Other, net
|
(14,019)
|
|
|
(6,941)
|
|
|
(14,812)
|
|
Net cash provided by
(used in) financing activities
|
99,212
|
|
|
(44,121)
|
|
|
225,971
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(46,759)
|
|
|
(51,652)
|
|
|
(43,134)
|
|
Net increase
(decrease) in cash and cash equivalents
|
223,466
|
|
|
(78,904)
|
|
|
82,845
|
|
Cash and cash
equivalents at beginning of period
|
1,303,125
|
|
|
1,382,029
|
|
|
1,299,184
|
|
Cash and cash
equivalents at end of period
|
$
|
1,526,591
|
|
|
$
|
1,303,125
|
|
|
$
|
1,382,029
|
|
|
|
|
|
|
|
SUPPLEMENTAL
DISCLOSURE
|
|
|
|
|
|
Cash paid during the
year for:
|
|
|
|
|
|
Interest, net of
interest income
|
$
|
96,678
|
|
|
$
|
92,620
|
|
|
$
|
89,343
|
|
Income taxes, net of
refunds
|
$
|
30,312
|
|
|
$
|
44,287
|
|
|
$
|
41,471
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/live-nation-entertainment-reports-fourth-quarter-and-full-year-2016-results-300412876.html
SOURCE Live Nation Entertainment