Live Nation Entertainment Reports Second Quarter 2016 Financial Results

07/28/2016

Highlights (year-over-year):
- Revenue Up 23% for the Quarter to $2.2 Billion
- Operating Income Up 76% for the Quarter to $74 Million
- AOI Up 28% for the Quarter to $181 Million
- Free Cash Flow Up 22% for the Quarter to $113 Million
- Concert Ticket Sales for Shows in 2016 Up 17% through Mid-July
- Sponsorship & Advertising Contracted Net Revenue Up 16% through Mid-July
- Ticketmaster Global GTV Up 19% in the First Half

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

Investors, Maili Bergman, (310) 867-7143, IR@livenation.com , or Media, Carrie Davis, (310) 975-6941, CarrieDavis@livenation.com
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