LOS ANGELES, July 28, 2016
/PRNewswire/ -- Live Nation Entertainment (NYSE: LYV) today
released financial results for the three and six months ended
June 30, 2016.
Live Nation delivered accelerated growth in the second quarter,
with revenue up 23%, operating income up 76%, adjusted operating
income, or AOI, up 28%, and free cash flow up 22%. Each of
our core divisions - concerts, advertising and ticketing -
contributed to this strong performance, with revenue and AOI up
double digits in each business.
Our concerts business is our flywheel, attracting 19 million
fans to shows globally in the quarter, which in turn also drove AOI
growth in our ticketing, advertising and on-site businesses.
We have built the industry's most scalable and unparalleled live
platform, bringing over 500 million fans in 40 countries to live
events each year. With concert and ticketing sales running
well ahead of last year, we are confident that 2016 will be another
record year of results for Live Nation overall and for each of our
core divisions.
Concerts Global Platform Growth
Starting with the concerts business, through mid-July we have
sold over 50 million tickets for our concerts that take place this
year, pacing 17% ahead of this point last year. As a result,
in the second quarter we grew revenue by 26%, operating income by
$25 million and AOI by 61% in our
concerts business. We continue to be by far the leading
promoter in the world, having created a business model that is
effective at attracting artists from the club to the stadium level,
enabling us to then make money in our high margin on-site,
ticketing and advertising businesses.
This year we are growing our concerts business across all
dimensions, with an 18% increase in confirmed stadium, arena and
amphitheater show count for the year, while also adding more
festivals to our portfolio and continuing to expand our club and
theater business. This growth is being delivered both in
North America and internationally,
with each projecting mid- to high-single digit growth in fan
attendance for the full year.
We have continued to expand our global portfolio, and are now
promoting concerts in 40 countries globally. In the past
quarter we added The Governors Ball Music Festival in New York, Parklife Festival outside
London, and secured the long-term
management of the Palais Theatre in Melbourne, the city's most iconic concert
venue.
At the same time we are seeing the benefits from improving the
on-site fan experience. For the quarter, we delivered
double-digit growth in net revenue per fan at our amphitheaters,
increasing our contribution margin by over $2 per fan. Coming on top of last year's
growth of 80 cents per fan, we are
seeing the results from improving our food and beverage offering
and expanding our products to provide more options for high-end
customers.
And our artist managers continue to be strategic to our overall
business, providing a strong global pipeline of shows and
supporting our growth initiatives.
Sponsorship & Advertising Delivered Continued
Growth
In the sponsorship & advertising business, we continued
delivering strong growth for the quarter, with revenue up 17%,
operating income up 9% and AOI up 12%.
Live Nation's ongoing success in growing its high margin
sponsorship & advertising business is based on its unique scale
and breadth in the live experience space. No other
advertising platform can match our 60 million on-site engaged fans
along with 80 million monthly unique visitors to our websites, and
over 500 million direct connections with fans attending events each
year. From festivals to branded content to exclusive access
to tickets and events, the combined Live Nation concerts and
Ticketmaster platforms reach an audience at a level no other league
or online company can match.
As a result, through mid-July, contracted net revenue, our key
leading indicator for sponsorship & advertising, is up 16% and
we have sold over 85% of our planned sponsorship & advertising
for the year. And because of our platform's unique
positioning and demonstrated effectiveness, our major sponsors
continue to renew and expand their commitment to Live Nation and
its platform. As of the end of the second quarter, we had
roughly 50 sponsors projected to spend over $1 million with us this year, with a cumulative
spend growth of 18% to over $200
million for the year.
With both sponsorship and online advertising increasing
year-on-year, and a strong pipeline of committed business, at this
point we are confident that we will deliver AOI growth this year
consistent with the past several years.
Ticketmaster Marketplace Continues to Grow
Ticketmaster is the leading global ticketing marketplace, with
over $25 billion in total global
gross transaction value, or GTV, annually for all tickets
processed, and after adding five more countries this quarter we now
operate in 27 countries worldwide. This quarter we extended
our leadership with 14% growth in total global GTV to $5.7 billion. Our secondary product has
delivered GTV growth of over 20% for the ninth consecutive quarter,
and it is up 49% year-on-year in the second quarter, to over
$300 million. These then drove
Ticketmaster revenue growth of 23%, operating income growth of 28%
and AOI growth of 20% for the quarter.
One key component for continuing Ticketmaster's growth is
opening our marketplace to sell tickets on other distribution
platforms, driving increased conversion and tapping into additional
fan bases. Through the deployment of APIs with key partners
such as Facebook, BandsinTown and Broadway.com, along with
traditional distribution partners such as Groupon, we increased
sales by 30% in the first half to more than 5 million
tickets. Going forward, we see these and other distribution
partners, including teams and artists, as a key way to extend our
reach and continue selling more tickets powered by
Ticketmaster.
And another key part of our growth has been building out our
overall portfolio of ticketing products to super-serve specialized
vertical segments, notably with Front Gate ticketing serving
festivals and TicketWeb serving music clubs. Through these
leading platforms in their respective segments, we have been able
to deliver the tailored product of a specialist while leveraging
the overall power of the Ticketmaster marketplace, selling more
tickets and better serving our fans. With this strategy, so
far this year in North America we
have grown the GTV for our festival segment by 31% and club
business by 12%.
Underlying this success is the continued expansion of our venue
client base. During the quarter, we added nearly 400 new
clients globally, making us confident that for the seventh
consecutive year we will have a net renewal rate of over
100%. With the TM ONE software platform in full rollout, we
are delivering an improved workflow for the venues while at the
same time selling more tickets, pricing them better, and reducing
Ticketmaster's cost base. As a result of all this, in 2016 we
have already had five of the top ten GTV months globally in
Ticketmaster's history.
As well as Ticketmaster has done this year, I have even greater
expectations going forward. Every one of our ticketing
verticals has tremendous runway for global growth. We now
have a technology platform which enables us to deploy web and app
products faster and more flexibly, and opening our platform is
powering even more sales. This, combined with a strengthening
value proposition to our growing base of venue clients, positions
Ticketmaster for ongoing growth.
Summary
After our strong performance in the first half of the year, we
expect 2016 to be another year of growth and record results for the
company. Based on our leading indicators in concerts,
sponsorship & advertising, and ticketing, we expect revenue and
AOI growth in each of these businesses and overall for Live Nation
this year.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
Data above listed as "Mid-July" is as of July 18, 2016.
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 – 2ND QUARTER
|
(unaudited; $ in
millions)
|
|
|
Q2 2016
Reported
|
|
Q2 2015
Reported
|
|
Growth
at
Reported
|
|
Q2 2016
Constant
Currency
|
|
Growth
at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
1,597.8
|
|
|
$
|
1,268.4
|
|
|
26
|
%
|
|
$
|
1,614.2
|
|
|
27
|
%
|
Sponsorship &
Advertising
|
95.2
|
|
|
81.1
|
|
|
17
|
%
|
|
96.5
|
|
|
19
|
%
|
Ticketing
|
443.3
|
|
|
360.2
|
|
|
23
|
%
|
|
447.0
|
|
|
24
|
%
|
Artist
Nation
|
86.7
|
|
|
87.8
|
|
|
(1)
|
%
|
|
88.2
|
|
|
*
|
Other &
Eliminations
|
(43.7)
|
|
|
(31.7)
|
|
|
(38)
|
%
|
|
(43.7)
|
|
|
(38)
|
%
|
|
$
|
2,179.3
|
|
|
$
|
1,765.8
|
|
|
23
|
%
|
|
$
|
2,202.2
|
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
18.8
|
|
|
$
|
(5.8)
|
|
|
*
|
|
$
|
19.3
|
|
|
*
|
Sponsorship &
Advertising
|
59.1
|
|
|
54.3
|
|
|
9
|
%
|
|
59.6
|
|
|
10
|
%
|
Ticketing
|
46.8
|
|
|
36.5
|
|
|
28
|
%
|
|
46.6
|
|
|
28
|
%
|
Artist
Nation
|
(16.0)
|
|
|
(16.3)
|
|
|
2
|
%
|
|
(15.8)
|
|
|
3
|
%
|
Other &
Eliminations
|
(4.2)
|
|
|
0.4
|
|
|
*
|
|
(4.2)
|
|
|
*
|
Corporate
|
(30.3)
|
|
|
(26.9)
|
|
|
(13)
|
%
|
|
(30.3)
|
|
|
(13)
|
%
|
|
$
|
74.2
|
|
|
$
|
42.2
|
|
|
76
|
%
|
|
$
|
75.2
|
|
|
78
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
60.2
|
|
|
$
|
37.3
|
|
|
61
|
%
|
|
$
|
61.2
|
|
|
64
|
%
|
Sponsorship &
Advertising
|
63.8
|
|
|
56.9
|
|
|
12
|
%
|
|
64.3
|
|
|
13
|
%
|
Ticketing
|
87.5
|
|
|
73.2
|
|
|
20
|
%
|
|
87.8
|
|
|
20
|
%
|
Artist
Nation
|
(1.8)
|
|
|
(3.2)
|
|
|
44
|
%
|
|
(1.5)
|
|
|
53
|
%
|
Other &
Eliminations
|
(3.6)
|
|
|
(0.1)
|
|
|
*
|
|
(3.6)
|
|
|
*
|
Corporate
|
(25.0)
|
|
|
(22.4)
|
|
|
(12)
|
%
|
|
(25.0)
|
|
|
(12)
|
%
|
|
$
|
181.1
|
|
|
$
|
141.7
|
|
|
28
|
%
|
|
$
|
183.2
|
|
|
29
|
%
|
|
* percentages are
not meaningful
|
FINANCIAL
HIGHLIGHTS – 6 MONTHS
|
(unaudited; $ in
millions)
|
|
|
6 Months
2016
Reported
|
|
6 Months
2015
Reported
|
|
Growth
at
Reported
|
|
6 Months
2016
Constant
Currency
|
|
Growth
at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
2,278.8
|
|
|
$
|
1,891.6
|
|
|
20
|
%
|
|
$
|
2,309.6
|
|
|
22
|
%
|
Sponsorship &
Advertising
|
152.8
|
|
|
133.2
|
|
|
15
|
%
|
|
155.3
|
|
|
17
|
%
|
Ticketing
|
849.1
|
|
|
735.8
|
|
|
15
|
%
|
|
859.5
|
|
|
17
|
%
|
Artist
Nation
|
161.8
|
|
|
165.8
|
|
|
(2)
|
%
|
|
163.6
|
|
|
(1)
|
%
|
Other &
Eliminations
|
(55.5)
|
|
|
(40.3)
|
|
|
(38)
|
%
|
|
(55.6)
|
|
|
(38)
|
%
|
|
$
|
3,387.0
|
|
|
$
|
2,886.1
|
|
|
17
|
%
|
|
$
|
3,432.4
|
|
|
19
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(30.4)
|
|
|
$
|
(48.4)
|
|
|
37
|
%
|
|
$
|
(31.1)
|
|
|
36
|
%
|
Sponsorship &
Advertising
|
84.4
|
|
|
80.7
|
|
|
5
|
%
|
|
85.7
|
|
|
6
|
%
|
Ticketing
|
82.1
|
|
|
70.8
|
|
|
16
|
%
|
|
82.0
|
|
|
16
|
%
|
Artist
Nation
|
(33.4)
|
|
|
(32.4)
|
|
|
(3)
|
%
|
|
(33.5)
|
|
|
(3)
|
%
|
Other &
Eliminations
|
(5.9)
|
|
|
(0.8)
|
|
|
*
|
|
(5.9)
|
|
|
*
|
Corporate
|
(55.9)
|
|
|
(51.6)
|
|
|
(8)
|
%
|
|
(55.9)
|
|
|
(8)
|
%
|
|
$
|
40.9
|
|
|
$
|
18.3
|
|
|
*
|
|
$
|
41.3
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
46.9
|
|
|
$
|
25.6
|
|
|
83
|
%
|
|
$
|
47.2
|
|
|
84
|
%
|
Sponsorship &
Advertising
|
94.4
|
|
|
85.7
|
|
|
10
|
%
|
|
95.7
|
|
|
12
|
%
|
Ticketing
|
169.6
|
|
|
151.6
|
|
|
12
|
%
|
|
170.8
|
|
|
13
|
%
|
Artist
Nation
|
(5.5)
|
|
|
(8.0)
|
|
|
31
|
%
|
|
(5.3)
|
|
|
34
|
%
|
Other &
Eliminations
|
(5.9)
|
|
|
(1.7)
|
|
|
*
|
|
(5.9)
|
|
|
*
|
Corporate
|
(45.1)
|
|
|
(41.9)
|
|
|
(8)
|
%
|
|
(45.1)
|
|
|
(8)
|
%
|
|
$
|
254.4
|
|
|
$
|
211.3
|
|
|
20
|
%
|
|
$
|
257.4
|
|
|
22
|
%
|
|
* percentages are
not meaningful
|
As of June 30, 2016, total cash and cash equivalents were
$1.5 billion, which includes
$606 million in ticketing client cash
and $148 million in free cash.
Event-related deferred revenue was $1.15
billion as of June 30, 2016, compared to $1.03 billion as of the same date in 2015. We
currently expect capital expenditures for the year to be between
approximately $175 million and $180
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 amount in 2015.
KEY OPERATING
METRICS
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Concerts
(1)
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
North
America
|
4,441
|
|
|
4,382
|
|
|
7,896
|
|
|
7,819
|
|
International
|
2,236
|
|
|
1,961
|
|
|
4,655
|
|
|
3,668
|
|
Total estimated
events
|
6,677
|
|
|
6,343
|
|
|
12,551
|
|
|
11,487
|
|
Estimated fans
(rounded):
|
|
|
|
|
|
|
|
North
America
|
12,101,000
|
|
|
10,754,000
|
|
|
16,962,000
|
|
|
16,221,000
|
|
International
|
6,878,000
|
|
|
4,740,000
|
|
|
11,013,000
|
|
|
7,893,000
|
|
Total estimated
fans
|
18,979,000
|
|
|
15,494,000
|
|
|
27,975,000
|
|
|
24,114,000
|
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Number of tickets
sold (in thousands)
|
40,220
|
|
|
36,788
|
|
|
80,911
|
|
|
74,733
|
|
|
|
(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 above for the three months ended June 30, 2016
and 2015 excludes approximately 61 million and 61 million,
respectively, and for the six months ended June 30, 2016 and
2015 excludes approximately 136 million and 133 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)
|
Q2
2016
|
|
Q2
2015
|
Adjusted operating
income
|
$
|
181.1
|
|
|
$
|
141.7
|
|
Less: Cash
interest expense — net
|
(19.1)
|
|
|
(19.0)
|
|
Cash taxes
|
(14.2)
|
|
|
(13.1)
|
|
Maintenance capital expenditures
|
(23.2)
|
|
|
(14.9)
|
|
Distributions to noncontrolling interests — net
|
(6.7)
|
|
|
(5.5)
|
|
Distributions from
(contributions to) investments in nonconsolidated
affiliates
|
(5.1)
|
|
|
3.2
|
|
Free cash
flow
|
$
|
112.8
|
|
|
$
|
92.4
|
|
Revenue generating
capital expenditures
|
(29.5)
|
|
|
(22.9)
|
|
Net
|
$
|
83.3
|
|
|
$
|
69.5
|
|
|
($ in
millions)
|
6 Months
2016
|
|
6 Months
2015
|
Adjusted operating
income
|
$
|
254.4
|
|
|
$
|
211.3
|
|
Less: Cash
interest expense — net
|
(43.9)
|
|
|
(42.5)
|
|
Cash taxes
|
(20.2)
|
|
|
(17.8)
|
|
Maintenance capital expenditures
|
(37.6)
|
|
|
(30.2)
|
|
Distributions to noncontrolling interests — net
|
(22.2)
|
|
|
(9.4)
|
|
Distributions from
(contributions to) investments in nonconsolidated
affiliates
|
(7.9)
|
|
|
5.9
|
|
Free cash
flow
|
$
|
122.6
|
|
|
$
|
117.3
|
|
Revenue generating
capital expenditures
|
(39.6)
|
|
|
(33.3)
|
|
Net
|
$
|
83.0
|
|
|
$
|
84.0
|
|
Reconciliation
of Cash and Cash Equivalents to Free Cash
|
($ in
millions)
|
|
June 30,
2016
|
Cash and cash
equivalents
|
|
$
|
1,512.1
|
|
Client
cash
|
|
(605.7)
|
|
Deferred revenue —
event-related
|
|
(1,152.0)
|
|
Accrued artist
fees
|
|
(65.0)
|
|
Collections on behalf
of others
|
|
(19.9)
|
|
Prepaid expenses —
event-related
|
|
478.4
|
|
Free
cash
|
|
$
|
147.9
|
|
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 revenue and adjusted operating income growth in 2016 for
the company overall and for each of its businesses, including
anticipated adjusted operating income growth in the company's
sponsorship and advertising business consistent with the past
several years; projected mid- to high-single digit growth in
concert fan attendance for the full year in North America and internationally; and the
company's future expectations for its Ticketmaster business,
including the potential for global growth in all ticketing
verticals. 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. 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
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
61.2
|
|
|
$
|
1.0
|
|
|
$
|
60.2
|
|
|
$
|
1.9
|
|
|
$
|
(0.3)
|
|
|
$
|
35.6
|
|
|
$
|
4.2
|
|
|
$
|
18.8
|
|
Sponsorship &
Advertising
|
64.3
|
|
|
0.5
|
|
|
63.8
|
|
|
0.3
|
|
|
—
|
|
|
4.4
|
|
|
—
|
|
|
59.1
|
|
Ticketing
|
87.8
|
|
|
0.3
|
|
|
87.5
|
|
|
0.6
|
|
|
—
|
|
|
39.9
|
|
|
0.2
|
|
|
46.8
|
|
Artist
Nation
|
(1.5)
|
|
|
0.3
|
|
|
(1.8)
|
|
|
1.0
|
|
|
—
|
|
|
14.2
|
|
|
(1.0)
|
|
|
(16.0)
|
|
Other and
Eliminations
|
(3.6)
|
|
|
—
|
|
|
(3.6)
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.2
|
|
|
(4.2)
|
|
Corporate
|
(25.0)
|
|
|
—
|
|
|
(25.0)
|
|
|
4.4
|
|
|
—
|
|
|
1.0
|
|
|
(0.1)
|
|
|
(30.3)
|
|
Total Live Nation
|
$
|
183.2
|
|
|
$
|
2.1
|
|
|
$
|
181.1
|
|
|
$
|
8.2
|
|
|
$
|
(0.3)
|
|
|
$
|
95.5
|
|
|
$
|
3.5
|
|
|
$
|
74.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
37.3
|
|
|
$
|
—
|
|
|
$
|
37.3
|
|
|
$
|
1.9
|
|
|
$
|
(0.1)
|
|
|
$
|
40.0
|
|
|
$
|
1.3
|
|
|
$
|
(5.8)
|
|
Sponsorship &
Advertising
|
56.9
|
|
|
—
|
|
|
56.9
|
|
|
0.4
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
54.3
|
|
Ticketing
|
73.2
|
|
|
—
|
|
|
73.2
|
|
|
0.6
|
|
|
—
|
|
|
35.6
|
|
|
0.5
|
|
|
36.5
|
|
Artist
Nation
|
(3.2)
|
|
|
—
|
|
|
(3.2)
|
|
|
1.2
|
|
|
—
|
|
|
10.8
|
|
|
1.1
|
|
|
(16.3)
|
|
Other and
Eliminations
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
|
0.4
|
|
Corporate
|
(22.4)
|
|
|
—
|
|
|
(22.4)
|
|
|
4.0
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
(26.9)
|
|
Total Live Nation
|
$
|
141.7
|
|
|
$
|
—
|
|
|
$
|
141.7
|
|
|
$
|
8.1
|
|
|
$
|
(0.1)
|
|
|
$
|
88.6
|
|
|
$
|
2.9
|
|
|
$
|
42.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
47.2
|
|
|
$
|
0.3
|
|
|
$
|
46.9
|
|
|
$
|
3.7
|
|
|
$
|
(0.4)
|
|
|
$
|
67.2
|
|
|
$
|
6.8
|
|
|
$
|
(30.4)
|
|
Sponsorship &
Advertising
|
95.7
|
|
|
1.3
|
|
|
94.4
|
|
|
0.6
|
|
|
—
|
|
|
9.4
|
|
|
—
|
|
|
84.4
|
|
Ticketing
|
170.8
|
|
|
1.2
|
|
|
169.6
|
|
|
1.6
|
|
|
—
|
|
|
85.7
|
|
|
0.2
|
|
|
82.1
|
|
Artist
Nation
|
(5.3)
|
|
|
0.2
|
|
|
(5.5)
|
|
|
2.2
|
|
|
—
|
|
|
26.6
|
|
|
(0.9)
|
|
|
(33.4)
|
|
Other and
Eliminations
|
(5.9)
|
|
|
—
|
|
|
(5.9)
|
|
|
0.1
|
|
|
—
|
|
|
(0.3)
|
|
|
0.2
|
|
|
(5.9)
|
|
Corporate
|
(45.1)
|
|
|
—
|
|
|
(45.1)
|
|
|
8.9
|
|
|
0.1
|
|
|
1.8
|
|
|
—
|
|
|
(55.9)
|
|
Total Live
Nation
|
$
|
257.4
|
|
|
$
|
3.0
|
|
|
$
|
254.4
|
|
|
$
|
17.1
|
|
|
$
|
(0.3)
|
|
|
$
|
190.4
|
|
|
$
|
6.3
|
|
|
$
|
40.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
25.6
|
|
|
$
|
—
|
|
|
$
|
25.6
|
|
|
$
|
3.8
|
|
|
$
|
0.2
|
|
|
$
|
69.2
|
|
|
$
|
0.8
|
|
|
$
|
(48.4)
|
|
Sponsorship &
Advertising
|
85.7
|
|
|
—
|
|
|
85.7
|
|
|
0.9
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
|
80.7
|
|
Ticketing
|
151.6
|
|
|
—
|
|
|
151.6
|
|
|
1.5
|
|
|
(0.2)
|
|
|
78.9
|
|
|
0.6
|
|
|
70.8
|
|
Artist
Nation
|
(8.0)
|
|
|
—
|
|
|
(8.0)
|
|
|
2.6
|
|
|
—
|
|
|
20.8
|
|
|
1.0
|
|
|
(32.4)
|
|
Other and
Eliminations
|
(1.7)
|
|
|
—
|
|
|
(1.7)
|
|
|
—
|
|
|
—
|
|
|
(0.9)
|
|
|
—
|
|
|
(0.8)
|
|
Corporate
|
(41.9)
|
|
|
—
|
|
|
(41.9)
|
|
|
8.8
|
|
|
—
|
|
|
1.0
|
|
|
(0.1)
|
|
|
(51.6)
|
|
Total Live
Nation
|
$
|
211.3
|
|
|
$
|
—
|
|
|
$
|
211.3
|
|
|
$
|
17.6
|
|
|
$
|
—
|
|
|
$
|
173.1
|
|
|
$
|
2.3
|
|
|
$
|
18.3
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,512,099
|
|
|
$
|
1,303,125
|
|
Accounts receivable,
less allowance of $18,216 and $17,168, respectively
|
634,562
|
|
|
452,600
|
|
Prepaid
expenses
|
779,743
|
|
|
496,226
|
|
Other current
assets
|
43,548
|
|
|
36,364
|
|
Total current
assets
|
2,969,952
|
|
|
2,288,315
|
|
Property, plant and
equipment
|
|
|
|
Land, buildings and
improvements
|
822,761
|
|
|
840,032
|
|
Computer equipment
and capitalized software
|
511,693
|
|
|
505,233
|
|
Furniture and other
equipment
|
242,079
|
|
|
233,271
|
|
Construction in
progress
|
85,720
|
|
|
47,684
|
|
|
1,662,253
|
|
|
1,626,220
|
|
Less accumulated
depreciation
|
949,441
|
|
|
894,938
|
|
|
712,812
|
|
|
731,282
|
|
Intangible
assets
|
|
|
|
Definite-lived
intangible assets, net
|
810,418
|
|
|
777,763
|
|
Indefinite-lived
intangible assets
|
369,001
|
|
|
369,317
|
|
Goodwill
|
1,670,676
|
|
|
1,604,315
|
|
Other long-term
assets
|
510,567
|
|
|
385,249
|
|
Total
assets
|
$
|
7,043,426
|
|
|
$
|
6,156,241
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable,
client accounts
|
$
|
710,087
|
|
|
$
|
662,941
|
|
Accounts
payable
|
103,722
|
|
|
58,607
|
|
Accrued
expenses
|
778,101
|
|
|
686,664
|
|
Deferred
revenue
|
1,347,953
|
|
|
618,640
|
|
Current portion of
long-term debt, net
|
44,918
|
|
|
42,352
|
|
Other current
liabilities
|
38,653
|
|
|
32,002
|
|
Total current
liabilities
|
3,023,434
|
|
|
2,101,206
|
|
Long-term debt,
net
|
1,985,190
|
|
|
2,002,662
|
|
Long-term deferred
income taxes
|
198,617
|
|
|
199,472
|
|
Other long-term
liabilities
|
127,887
|
|
|
142,267
|
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
292,516
|
|
|
263,715
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
2,024
|
|
|
2,020
|
|
Additional paid-in
capital
|
2,412,928
|
|
|
2,428,566
|
|
Accumulated
deficit
|
(1,083,176)
|
|
|
(1,075,111)
|
|
Cost of shares held
in treasury
|
(6,865)
|
|
|
(6,865)
|
|
Accumulated other
comprehensive loss
|
(136,404)
|
|
|
(111,657)
|
|
Total Live Nation
stockholders' equity
|
1,188,507
|
|
|
1,236,953
|
|
Noncontrolling
interests
|
227,275
|
|
|
209,966
|
|
Total
equity
|
1,415,782
|
|
|
1,446,919
|
|
Total liabilities
and equity
|
$
|
7,043,426
|
|
|
$
|
6,156,241
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in thousands
except share and per share data)
|
Revenue
|
$
|
2,179,258
|
|
|
$
|
1,765,777
|
|
|
$
|
3,386,974
|
|
|
$
|
2,886,089
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses
|
1,605,688
|
|
|
1,279,099
|
|
|
2,389,891
|
|
|
2,000,388
|
|
Selling, general and
administrative expenses
|
374,826
|
|
|
329,570
|
|
|
712,040
|
|
|
643,702
|
|
Depreciation and
amortization
|
95,424
|
|
|
88,571
|
|
|
190,379
|
|
|
173,112
|
|
Gain on disposal of
operating assets
|
(279)
|
|
|
(76)
|
|
|
(254)
|
|
|
(37)
|
|
Corporate
expenses
|
29,440
|
|
|
26,368
|
|
|
54,049
|
|
|
50,614
|
|
Operating
income
|
74,159
|
|
|
42,245
|
|
|
40,869
|
|
|
18,310
|
|
Interest
expense
|
25,284
|
|
|
25,650
|
|
|
50,716
|
|
|
51,013
|
|
Interest
income
|
(650)
|
|
|
(394)
|
|
|
(1,206)
|
|
|
(1,959)
|
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
305
|
|
|
367
|
|
|
(287)
|
|
|
(2,613)
|
|
Other expense
(income), net
|
7,353
|
|
|
(8,500)
|
|
|
(1,194)
|
|
|
12,528
|
|
Income (loss) before
income taxes
|
41,867
|
|
|
25,122
|
|
|
(7,160)
|
|
|
(40,659)
|
|
Income tax
expense
|
5,406
|
|
|
4,910
|
|
|
12,333
|
|
|
5,655
|
|
Net income
(loss)
|
36,461
|
|
|
20,212
|
|
|
(19,493)
|
|
|
(46,314)
|
|
Net income (loss)
attributable to noncontrolling interests
|
(1,280)
|
|
|
5,156
|
|
|
(12,716)
|
|
|
(3,091)
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
|
37,741
|
|
|
$
|
15,056
|
|
|
$
|
(6,777)
|
|
|
$
|
(43,223)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per common share available to common stockholders of
Live Nation
|
$
|
0.13
|
|
|
$
|
0.06
|
|
|
$
|
(0.16)
|
|
|
$
|
(0.25)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
201,896,009
|
|
|
200,767,811
|
|
|
201,796,075
|
|
|
200,463,314
|
|
Diluted
|
208,601,733
|
|
|
208,778,589
|
|
|
201,796,075
|
|
|
200,463,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income (loss) available to common stockholders of Live
Nation:
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
|
37,741
|
|
|
$
|
15,056
|
|
|
$
|
(6,777)
|
|
|
$
|
(43,223)
|
|
Accretion of
redeemable noncontrolling interests
|
(11,292)
|
|
|
(3,105)
|
|
|
(24,628)
|
|
|
(6,993)
|
|
Basic and diluted net
income (loss) available to common stockholders of Live
Nation
|
$
|
26,449
|
|
|
$
|
11,951
|
|
|
$
|
(31,405)
|
|
|
$
|
(50,216)
|
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
Six Months
Ended
June 30,
|
|
2016
|
|
2015
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net loss
|
$
|
(19,493)
|
|
|
$
|
(46,314)
|
|
Reconciling
items:
|
|
|
|
Depreciation
|
67,482
|
|
|
63,705
|
|
Amortization
|
122,897
|
|
|
109,407
|
|
Deferred income tax
benefit
|
(2,708)
|
|
|
(1,415)
|
|
Amortization of debt
issuance costs, discounts and premium, net
|
5,199
|
|
|
5,301
|
|
Non-cash compensation
expense
|
17,144
|
|
|
17,562
|
|
Other, net
|
1,845
|
|
|
(494)
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
Increase in accounts
receivable
|
(171,670)
|
|
|
(122,058)
|
|
Increase in prepaid
expenses and other assets
|
(407,450)
|
|
|
(317,566)
|
|
Increase in accounts
payable, accrued expenses and other liabilities
|
186,888
|
|
|
33,936
|
|
Increase in deferred
revenue
|
710,841
|
|
|
620,412
|
|
Net cash provided by
operating activities
|
510,975
|
|
|
362,476
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Advances and
collections of notes receivable, net
|
(4,513)
|
|
|
(14,136)
|
|
Investments made in
nonconsolidated affiliates
|
(13,508)
|
|
|
(11,023)
|
|
Purchases of
property, plant and equipment
|
(78,880)
|
|
|
(67,344)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(122,318)
|
|
|
(69,244)
|
|
Other, net
|
(191)
|
|
|
(2,194)
|
|
Net cash used in
investing activities
|
(219,410)
|
|
|
(163,941)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Payments on long-term
debt
|
(18,640)
|
|
|
(17,170)
|
|
Distributions to
noncontrolling interests
|
(22,211)
|
|
|
(9,370)
|
|
Purchases and sales
of noncontrolling interests, net
|
(16,559)
|
|
|
(9,491)
|
|
Proceeds from
exercise of stock options
|
743
|
|
|
13,015
|
|
Payments for deferred
and contingent consideration
|
(3,732)
|
|
|
(4,125)
|
|
Other, net
|
(8,695)
|
|
|
(5,221)
|
|
Net cash used in
financing activities
|
(69,094)
|
|
|
(32,362)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(13,497)
|
|
|
(22,383)
|
|
Net increase in cash
and cash equivalents
|
208,974
|
|
|
143,790
|
|
Cash and cash
equivalents at beginning of period
|
1,303,125
|
|
|
1,382,029
|
|
Cash and cash
equivalents at end of period
|
$
|
1,512,099
|
|
|
$
|
1,525,819
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/live-nation-entertainment-reports-second-quarter-2016-financial-results-300305912.html
SOURCE Live Nation Entertainment