Highlights (year-over-year):
- Revenue Up 17% for the Quarter to $1.7 Billion
- Concerts Fan Attendance Up 22% in the Quarter
- Concert Tickets Sold for 2019 Shows Over 49 Million, Up 5%
through Mid-April
- Sponsorship & Advertising Committed Net Revenue for the
Full Year Up Double-Digits through Mid-April
LOS ANGELES, May 2, 2019 /PRNewswire/ -- Live Nation
Entertainment, Inc. (NYSE: LYV) today released financial results
for the three months ended March 31, 2019.
2019 is off to a strong start, with revenue up 17% to
$1.7 billion, an operating loss of
$24 million and our highest first
quarter adjusted operating income ("AOI") ever, at $115 million. Our concerts and sponsorship
segments drove this growth, as both delivered record first quarter
revenue and operating results.
More importantly, we have now booked enough concerts, sold
enough tickets, and secured enough sponsorship commitments to
expect that the company will deliver double-digit operating income
and AOI growth for the full year.
We continue to benefit from a global concerts industry that is
structurally growing, with strong tailwinds for both supply and
demand. Our performance is further accelerated by our concerts
flywheel driving additional profitable growth in our on-site,
sponsorship, and ticketing businesses.
Concerts Expanding Fanbase
Starting with the concerts business, we had almost 15 million
fans attend our concerts during the first quarter, up 22%
year-on-year, led by our arena and theater shows which were each up
over a million fans. As a result, revenue was up 27%, operating
loss improved by 7%, and we delivered our first positive AOI first
quarter in our concerts business. This sets up the year well and,
through mid-April, we have sold over 49 million tickets for our
concerts this year, up 5% year-on-year.
At the same time, we have continued shifting to market-based
pricing, including growing the use of platinum tickets. Looking at
our front of house tickets, amphitheater pricing is up
double-digits this year, and both amphitheaters and arenas have
seen an increase in pricing of over 30% across the past two years.
Even with this improved pricing, we're not seeing any pullback in
demand for concerts as sell-through rates continue to be strong
globally — across arenas, amphitheaters and stadiums, and from the
best seats in the front to the lawn seats at our amphitheaters.
As we add fans, we also continue to improve our on-site
experience, which then drives fan spending. While we are just
beginning the amphitheater season, we expect to once again grow
average per fan spending by $2 this
year in our amphitheaters.
With our global concerts business currently expected to deliver
strong operating income and AOI growth again this year, the
Concerts segment continues to be the engine that powers the overall
growth of Live Nation.
Sponsorship & Advertising Delivered Continued
Growth
In what is typically our lowest activity quarter for
sponsorship, revenue was up 1%, operating income up 3%, and AOI up
2%. Through mid-April, we are pacing double-digits ahead of last
year in committed net revenue, reaching over 80% of our target for
the full year.
We expect our growth to be driven again by our festivals and
large strategic sponsors, and we continued adding a number of these
new partners, including Verizon in the
United States, Rogers Communications in Canada and Diageo in Europe. As a result, we currently expect to
deliver double-digit operating income and AOI growth in sponsorship
again this year.
Ticketmaster's Leading Marketplace
In the first quarter, Ticketmaster delivered its fourth highest
transacted fee-bearing gross transaction value ("GTV") quarter
ever, trailing only first quarter 2018 and fourth quarter in both
2017 and 2018.
While Ticketmaster was impacted in the quarter by a pull forward
of onsales into the fourth quarter of 2018, by mid-March sales
trends had turned around, and through mid-April, Ticketmaster has
sold four million more concert tickets for shows this year than at
the same time last year.
Putting aside quarterly fluctuations, every key metric,
including global GTV, ticket sales, clients served, and leading
digital ticket functionality, demonstrates that Ticketmaster is the
most effective marketplace to sell tickets to fans. Our roadmap at
Ticketmaster remains very clear and focused — deploy digital
ticketing at scale and establish the foundation for a direct
relationship with our fans, which will improve the fan experience
and provide opportunities for content, venue operators and sponsors
to deliver greater ongoing value to the live event fan.
As part of this, we remain on track to have Presence installed
at over 500 venues with more than 135 million fans entering via the
system this year. And following our successful first year of
digital ticketing with the NFL, we are seeing more teams shift to a
purely digital model, with seven teams this year up from two last
year.
In summary, for the full year we expect Ticketmaster to deliver
fee-bearing GTV, operating income, and AOI growth while
significantly expanding our digital ticketing footprint.
Summary
We are pleased with our first quarter results as a start to what
we expect to be another year of growth in 2019. All of our
key indicators speak to continued strong consumer demand for our
concerts — our attendance growth in the first quarter, acceptance
of market pricing, and solid sales for upcoming shows.
As a result, we expect an acceleration of our growth in the
second quarter, with overall operating income and AOI increasing in
the high teens and each segment to deliver double-digit operating
income and AOI growth for the quarter.
With the combination of this near-term view plus concert ticket
sales for the year, sponsorship commitments, and the continued
success of the Ticketmaster platform, we expect that Live Nation
will deliver double-digit operating income and AOI growth for the
full year.
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 "News /
Events" 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 posted to the
"Financial Info" section of the website. A replay of the webcast
will also be available on the Live Nation website.
Notice Regarding Financial Statements
The company has provided certain financial statements at the end
of this press release for reference. These financial
statements should be read in conjunction with the full financial
statements, and the notes thereto, set forth in the company's
Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission today and available on the SEC's website at
sec.gov.
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, and Live Nation Media
& Sponsorship. For additional information, visit
investors.livenationentertainment.com.
FINANCIAL
HIGHLIGHTS – 1st QUARTER
(unaudited; $ in
millions)
|
|
|
Q1
2019
Reported
|
|
Q1 2018
Reported
|
|
Growth
|
|
Q1 2019
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
1,318.1
|
|
|
$
|
1,038.9
|
|
|
27
|
%
|
|
$
|
1,356.1
|
|
|
31
|
%
|
Ticketing
|
337.6
|
|
|
372.4
|
|
|
(9)
|
%
|
|
344.5
|
|
|
(7)
|
%
|
Sponsorship &
Advertising
|
75.1
|
|
|
74.6
|
|
|
1
|
%
|
|
77.6
|
|
|
4
|
%
|
Other and
Eliminations
|
(3.0)
|
|
|
(3.5)
|
|
|
13
|
%
|
|
(3.0)
|
|
|
13
|
%
|
|
$
|
1,727.8
|
|
|
$
|
1,482.4
|
|
|
17
|
%
|
|
$
|
1,775.2
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(59.1)
|
|
|
$
|
(63.9)
|
|
|
7
|
%
|
|
$
|
(61.0)
|
|
|
4
|
%
|
Ticketing
|
42.6
|
|
|
64.9
|
|
|
(34)
|
%
|
|
42.8
|
|
|
(34)
|
%
|
Sponsorship &
Advertising
|
32.2
|
|
|
31.1
|
|
|
3
|
%
|
|
34.0
|
|
|
9
|
%
|
Other and
Eliminations
|
(0.1)
|
|
|
(3.4)
|
|
|
97
|
%
|
|
(0.1)
|
|
|
97
|
%
|
Corporate
|
(39.4)
|
|
|
(34.7)
|
|
|
(14)
|
%
|
|
(39.4)
|
|
|
(14)
|
%
|
|
$
|
(23.8)
|
|
|
$
|
(6.0)
|
|
|
*
|
|
|
$
|
(23.7)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
5.4
|
|
|
$
|
(15.6)
|
|
|
*
|
|
|
$
|
5.4
|
|
|
*
|
|
Ticketing
|
100.4
|
|
|
120.9
|
|
|
(17)
|
%
|
|
101.6
|
|
|
(16)
|
%
|
Sponsorship &
Advertising
|
39.9
|
|
|
39.0
|
|
|
2
|
%
|
|
41.7
|
|
|
7
|
%
|
Other and
Eliminations
|
(1.5)
|
|
|
(4.4)
|
|
|
66
|
%
|
|
(1.5)
|
|
|
66
|
%
|
Corporate
|
(28.8)
|
|
|
(26.2)
|
|
|
(10)
|
%
|
|
(28.8)
|
|
|
(10)
|
%
|
|
$
|
115.4
|
|
|
$
|
113.7
|
|
|
1
|
%
|
|
$
|
118.4
|
|
|
4
|
%
|
* percentages are
not meaningful
|
- As of March 31, 2019, total cash
and cash equivalents were $2.7
billion, which includes $848
million in ticketing client cash and $382 million in free cash.
- Event-related deferred revenue was $1.8
billion at each of March 31,
2019 and 2018.
- For the quarter ended March 31,
2019, net cash provided by operating activities was
$469 million and free cash flow —
adjusted was $3 million.
- We currently expect capital expenditures for the full year to
be approximately $310 million, with
more than half to be revenue generating capital expenditures.
- We currently expect the amortization of non-recoupable
ticketing contract advances for the full year 2019 to be in line
with the last few years of expense.
KEY OPERATING
METRICS
|
|
|
Q1
2019
|
|
Q1
2018
|
|
(in thousands
except estimated events)
|
Concerts
(1)
|
|
|
|
Events:
|
|
|
|
North
America
|
5,530
|
|
|
4,791
|
|
International
|
2,538
|
|
|
2,384
|
|
Total estimated
events
|
8,068
|
|
|
7,175
|
|
Fans:
|
|
|
|
North
America
|
8,915
|
|
|
6,790
|
|
International
|
5,955
|
|
|
5,444
|
|
Total estimated
fans
|
14,870
|
|
|
12,234
|
|
Ticketing
(2)
|
|
|
|
Fee-bearing
tickets
|
50,028
|
|
|
53,030
|
|
Non-fee-bearing
tickets
|
67,115
|
|
|
66,565
|
|
Total estimated
tickets
|
117,143
|
|
|
119,595
|
|
|
|
(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 fee-bearing
tickets estimated above include 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
period regardless of event timing, except for our own events where
our concert promoters control ticketing and which are reported as
the events occur. The non-fee-bearing tickets estimated above
include 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 Certain Non-GAAP Measures to Their Most
Directly Comparable GAAP Measures (Unaudited)
Reconciliation of Free Cash Flow
— Adjusted to Net Cash Provided by (Used in)
Operating Activities
($ in
millions)
|
Q1
2019
|
|
Q1
2018
|
Net cash provided
by operating activities
|
$
|
469.1
|
|
|
$
|
775.5
|
|
Changes in operating
assets and liabilities (working capital)
|
(391.8)
|
|
|
(691.7)
|
|
Free cash flow from
earnings
|
$
|
77.3
|
|
|
$
|
83.8
|
|
Less: Maintenance
capital expenditures
|
(24.5)
|
|
|
(17.9)
|
|
Distributions to noncontrolling interests
|
(49.9)
|
|
|
(19.5)
|
|
Free cash flow —
adjusted
|
$
|
2.9
|
|
|
$
|
46.4
|
|
|
|
|
|
Net cash used in
investing activities
|
$
|
(84.9)
|
|
|
$
|
(88.7)
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
$
|
(71.5)
|
|
|
$
|
404.2
|
|
Reconciliation of Free Cash to Cash and Cash
Equivalents
($ in
millions)
|
March 31,
2019
|
Cash and cash
equivalents
|
$
|
2,670.5
|
|
Client
cash
|
(847.6)
|
|
Deferred revenue —
event-related
|
(1,809.6)
|
|
Accrued artist
fees
|
(98.6)
|
|
Collections on behalf
of others
|
(38.6)
|
|
Prepaid expenses —
event-related
|
505.6
|
|
Free
cash
|
$
|
381.7
|
|
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
anticipated double-digit operating income and adjusted operating
income growth for the company in 2019, including strong operating
income and adjusted operating income growth in the company's global
concerts business, double-digit operating income and adjusted
operating income growth in sponsorship, and fee-bearing gross
transaction value, operating income, and adjusted operating income
growth for Ticketmaster; expected growth of $2.00 in average spending per fan at the
company's amphitheaters in 2019; the expectation that
growth in sponsorship in 2019 will be driven by festivals and large
strategic sponsors; the company's belief that it will have Presence
installed at over 500 venues by year end with more than 135 million
fans entering via the system in 2019; expected continued strong
demand for the company's concerts; anticipated significant
expansion in the company's digital ticketing footprint; and
anticipated acceleration of growth in the second quarter of 2019,
with operating income and adjusted operating income for the
company expected to increase in the high teens and each segment
expected to deliver double-digit operating income and
adjusted operating income growth for the quarter. 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.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP
financial measure that the company defines as operating income
(loss) before certain stock-based compensation expense, loss (gain)
on disposal of operating assets, depreciation and amortization
(including goodwill impairment), amortization of non-recoupable
ticketing contract advances and acquisition expenses (including
transaction costs, changes in the fair value of accrued
acquisition-related contingent consideration obligations, and
acquisition-related severance and compensation). The company uses
AOI to evaluate the performance of our operating segments. The
company believes 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 (loss), 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. 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 — Adjusted, or FCF, is a non-GAAP financial
measure that the company defines as net cash provided by (used in)
operating activities less changes in operating assets and
liabilities, less maintenance capital expenditures, less
distributions to noncontrolling interest partners. The company uses
FCF 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 FCF provides investors with an important
perspective on the cash available to service debt, make
acquisitions, and for revenue generating capital
expenditures. FCF is not calculated or presented in
accordance with GAAP. A limitation of the use of FCF 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, FCF
should be considered in addition to, and not as a substitute for,
net cash provided by (used in) operating activities and other
measures of financial performance reported in accordance with
GAAP. Furthermore, this measure may vary among other
companies; thus, FCF 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
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation
of Adjusted Operating Income (Loss) to Operating Income
(Loss)
|
|
($ in
millions)
|
Operating
income
(loss)
|
|
Stock-based
compensation
expense
|
|
Loss
(gain) on
disposal
of
operating assets
|
|
Depreciation
and amortization
|
|
Amortization
of
non-recoupable
ticketing
contract
advances
|
|
Acquisition
expenses
|
|
Adjusted
operating
income
(loss)
reported
|
|
Foreign
exchange
impact
|
|
Adjusted
operating
income
(loss)
constant
currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(59.1)
|
|
|
$
|
3.5
|
|
|
$
|
(0.1)
|
|
|
$
|
51.3
|
|
|
$
|
—
|
|
|
$
|
9.8
|
|
|
$
|
5.4
|
|
|
$
|
—
|
|
|
$
|
5.4
|
|
Ticketing
|
42.6
|
|
|
1.5
|
|
|
—
|
|
|
37.4
|
|
|
18.7
|
|
|
0.2
|
|
|
100.4
|
|
|
1.2
|
|
|
101.6
|
|
Sponsorship &
Advertising
|
32.2
|
|
|
0.6
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
39.9
|
|
|
1.8
|
|
|
41.7
|
|
Other and
Eliminations
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(1.5)
|
|
|
—
|
|
|
(1.5)
|
|
|
—
|
|
|
(1.5)
|
|
Corporate
|
(39.4)
|
|
|
7.6
|
|
|
—
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
(28.8)
|
|
|
—
|
|
|
(28.8)
|
|
Total Live
Nation
|
$
|
(23.8)
|
|
|
$
|
13.2
|
|
|
$
|
(0.1)
|
|
|
$
|
98.9
|
|
|
$
|
17.2
|
|
|
$
|
10.0
|
|
|
$
|
115.4
|
|
|
$
|
3.0
|
|
|
$
|
118.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(63.9)
|
|
|
$
|
1.9
|
|
|
$
|
—
|
|
|
$
|
45.6
|
|
|
$
|
—
|
|
|
$
|
0.8
|
|
|
$
|
(15.6)
|
|
|
$
|
—
|
|
|
$
|
(15.6)
|
|
Ticketing
|
64.9
|
|
|
1.1
|
|
|
—
|
|
|
33.6
|
|
|
21.1
|
|
|
0.2
|
|
|
120.9
|
|
|
—
|
|
|
120.9
|
|
Sponsorship &
Advertising
|
31.1
|
|
|
0.3
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
—
|
|
|
39.0
|
|
|
—
|
|
|
39.0
|
|
Other and
Eliminations
|
(3.4)
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(1.2)
|
|
|
—
|
|
|
(4.4)
|
|
|
—
|
|
|
(4.4)
|
|
Corporate
|
(34.7)
|
|
|
7.6
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
(26.2)
|
|
|
—
|
|
|
(26.2)
|
|
Total Live
Nation
|
$
|
(6.0)
|
|
|
$
|
10.9
|
|
|
$
|
—
|
|
|
$
|
87.9
|
|
|
$
|
19.9
|
|
|
$
|
1.0
|
|
|
$
|
113.7
|
|
|
$
|
—
|
|
|
$
|
113.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
CONSOLIDATED
BALANCE SHEETS
(unaudited)
|
|
|
March 31,
2019
|
|
December 31,
2018
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
2,670,538
|
|
|
$
|
2,371,540
|
|
Accounts receivable,
less allowance of $32,548 and $34,225, respectively
|
920,035
|
|
|
829,320
|
|
Prepaid
expenses
|
772,296
|
|
|
597,866
|
|
Restricted
cash
|
13,654
|
|
|
6,663
|
|
Other current
assets
|
48,351
|
|
|
42,685
|
|
Total current
assets
|
4,424,874
|
|
|
3,848,074
|
|
Property, plant and
equipment
|
|
|
|
Land, buildings and
improvements
|
1,004,205
|
|
|
984,558
|
|
Computer equipment
and capitalized software
|
788,304
|
|
|
742,737
|
|
Furniture and other
equipment
|
345,936
|
|
|
329,607
|
|
Construction in
progress
|
120,282
|
|
|
160,028
|
|
|
2,258,727
|
|
|
2,216,930
|
|
Less accumulated
depreciation
|
1,315,697
|
|
|
1,270,337
|
|
|
943,030
|
|
|
946,593
|
|
Operating lease
assets
|
1,114,932
|
|
|
—
|
|
Intangible
assets
|
|
|
|
Definite-lived
intangible assets, net
|
654,812
|
|
|
661,451
|
|
Indefinite-lived
intangible assets
|
368,922
|
|
|
368,854
|
|
Goodwill
|
1,841,234
|
|
|
1,822,943
|
|
Long-term
advances
|
531,763
|
|
|
420,891
|
|
Other long-term
assets
|
422,966
|
|
|
428,080
|
|
Total
assets
|
$
|
10,302,533
|
|
|
$
|
8,496,886
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable,
client accounts
|
$
|
1,123,959
|
|
|
$
|
1,037,162
|
|
Accounts
payable
|
103,567
|
|
|
90,253
|
|
Accrued
expenses
|
1,140,215
|
|
|
1,245,465
|
|
Deferred
revenue
|
2,068,792
|
|
|
1,227,797
|
|
Current portion of
long-term debt, net
|
80,838
|
|
|
82,142
|
|
Current portion of
operating lease liabilities
|
112,880
|
|
|
—
|
|
Other current
liabilities
|
58,631
|
|
|
67,047
|
|
Total current
liabilities
|
4,688,882
|
|
|
3,749,866
|
|
Long-term debt,
net
|
2,715,966
|
|
|
2,732,878
|
|
Long-term operating
lease liabilities
|
1,071,375
|
|
|
—
|
|
Deferred income
taxes
|
142,710
|
|
|
137,067
|
|
Other long-term
liabilities
|
100,177
|
|
|
204,977
|
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
343,029
|
|
|
329,355
|
|
Stockholders'
equity
|
|
|
|
Common
stock
|
2,099
|
|
|
2,091
|
|
Additional paid-in
capital
|
2,267,761
|
|
|
2,268,209
|
|
Accumulated
deficit
|
(1,071,667)
|
|
|
(1,019,223)
|
|
Cost of shares held
in treasury
|
(6,865)
|
|
|
(6,865)
|
|
Accumulated other
comprehensive loss
|
(148,120)
|
|
|
(145,231)
|
|
Total Live Nation
stockholders' equity
|
1,043,208
|
|
|
1,098,981
|
|
Noncontrolling
interests
|
197,186
|
|
|
243,762
|
|
Total
equity
|
1,240,394
|
|
|
1,342,743
|
|
Total liabilities
and equity
|
$
|
10,302,533
|
|
|
$
|
8,496,886
|
|
LIVE NATION
ENTERTAINMENT, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
(in thousands
except share and per share data)
|
Revenue
|
$
|
1,727,828
|
|
|
$
|
1,482,384
|
|
Operating
expenses:
|
|
|
|
Direct operating
expenses
|
1,151,604
|
|
|
932,084
|
|
Selling, general and
administrative expenses
|
464,866
|
|
|
434,611
|
|
Depreciation and
amortization
|
98,912
|
|
|
87,871
|
|
Loss (gain) on
disposal of operating assets
|
(147)
|
|
|
38
|
|
Corporate
expenses
|
36,456
|
|
|
33,810
|
|
Operating
loss
|
(23,863)
|
|
|
(6,030)
|
|
Interest
expense
|
36,515
|
|
|
32,684
|
|
Interest
income
|
(2,548)
|
|
|
(1,183)
|
|
Equity in earnings of
nonconsolidated affiliates
|
(3,144)
|
|
|
(3,715)
|
|
Other expense
(income), net
|
(3,403)
|
|
|
328
|
|
Loss before income
taxes
|
(51,283)
|
|
|
(34,144)
|
|
Income tax
expense
|
3,958
|
|
|
6,884
|
|
Net loss
|
(55,241)
|
|
|
(41,028)
|
|
Net loss attributable
to noncontrolling interests
|
(2,797)
|
|
|
(7,122)
|
|
Net loss attributable
to common stockholders of Live Nation
|
$
|
(52,444)
|
|
|
$
|
(33,906)
|
|
|
|
|
|
Basic and diluted net
loss per common share available to common stockholders of Live
Nation
|
$
|
(0.31)
|
|
|
$
|
(0.24)
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic and
diluted
|
208,908,323
|
|
|
206,728,167
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
loss available to common stockholders of Live Nation:
|
Net loss attributable
to common stockholders of Live Nation
|
$
|
(52,444)
|
|
|
$
|
(33,906)
|
|
Accretion of
redeemable noncontrolling interests
|
(12,312)
|
|
|
(16,385)
|
|
Net loss available to
common stockholders of Live Nation—basic and diluted
|
$
|
(64,756)
|
|
|
$
|
(50,291)
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2019
|
|
2018
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net loss
|
$
|
(55,241)
|
|
|
$
|
(41,028)
|
|
Reconciling
items:
|
|
|
|
Depreciation
|
51,672
|
|
|
42,137
|
|
Amortization
|
47,240
|
|
|
45,734
|
|
Amortization of
non-recoupable ticketing contract advances
|
17,237
|
|
|
19,945
|
|
Non-cash compensation
expense
|
13,205
|
|
|
10,870
|
|
Other, net
|
3,150
|
|
|
6,166
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
Increase in accounts
receivable
|
(90,637)
|
|
|
(53,080)
|
|
Increase in prepaid
expenses and other assets
|
(312,032)
|
|
|
(405,036)
|
|
Increase (decrease)
in accounts payable, accrued expenses and other
liabilities
|
(44,915)
|
|
|
52,318
|
|
Increase in deferred
revenue
|
839,371
|
|
|
1,097,472
|
|
Net cash provided by
operating activities
|
469,050
|
|
|
775,498
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Purchases of
property, plant and equipment
|
(57,136)
|
|
|
(45,125)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(9,882)
|
|
|
(20,222)
|
|
Purchases of
intangible assets
|
(9,000)
|
|
|
(25,914)
|
|
Other, net
|
(8,852)
|
|
|
2,535
|
|
Net cash used in
investing activities
|
(84,870)
|
|
|
(88,726)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from
long-term debt, net of debt issuance costs
|
557
|
|
|
856,660
|
|
Payments on long-term
debt
|
(13,573)
|
|
|
(321,850)
|
|
Distributions to
noncontrolling interests
|
(49,884)
|
|
|
(19,523)
|
|
Purchases and sales
of noncontrolling interests, net
|
(1,463)
|
|
|
(104,233)
|
|
Payments for deferred
and contingent consideration
|
(5,500)
|
|
|
(11,780)
|
|
Other, net
|
(1,628)
|
|
|
4,876
|
|
Net cash provided by
(used in) financing activities
|
(71,491)
|
|
|
404,150
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(6,700)
|
|
|
29,039
|
|
Net increase in cash,
cash equivalents and restricted cash
|
305,989
|
|
|
1,119,961
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
2,378,203
|
|
|
1,828,822
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
2,684,192
|
|
|
$
|
2,948,783
|
|
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SOURCE Live Nation Entertainment