Live Nation Entertainment Reports Third Quarter 2018 Financial Results

11/01/2018

Photo Credit: Jay-Z and Beyoncé

Highlights (year-over-year):

  • Revenue Up 11% for the Quarter to $3.8 Billion
  • Operating Income Up 16% for the Quarter to $234 Million
  • Adjusted Operating Income Up 16% for the Quarter to $386 Million
  • Concert Tickets Sold for 2018 Shows Over 85 Million, Up 5 Million through October
  • Sponsorship & Advertising Committed Net Revenue Up 13% through October
  • Ticketmaster Fee-Bearing Gross Transaction Value Up 15% through October

LOS ANGELES, Nov. 1, 2018 /PRNewswire/ -- Live Nation Entertainment, Inc. (NYSE: LYV) today released financial results for the three and nine months ended September 30, 2018.

Live Nation had its best quarter ever, and we are on track to deliver another year of record results across revenue, operating income and adjusted operating income ("AOI"). For the quarter, revenue was up 11%, operating income was up 16% and AOI was up 16%. For the nine months, revenue was up 11%, operating income was up 24% and AOI was up 17%.  All our divisions — concerts, sponsorship, and ticketing — each delivered their strongest third quarter AOI results ever.

Our concerts business is our flywheel, attracting over 33 million fans to shows globally in the quarter, up 12% year-over-year, which then drove record results in our on-site, ticketing and sponsorship businesses. Through October, we have sold 85 million tickets for concerts in 2018, up 6% year-on-year, and we are on track to sell over 90 million tickets this year.

With our strength in concert attendance growth, we are also seeing similar success in our on-site, sponsorship and ticketing businesses, giving us confidence that 2018 will be another year of record results(1) for Live Nation overall and for each of our divisions.

CONCERTS GLOBAL PLATFORM GROWTH

With continued strong global demand for concerts through the third quarter, we drove an 8% increase in attendance to 71 million fans attending our 24,000 shows across 40 countries, driving revenue up 11%, operating income more than doubling and AOI up 29% for the nine months.

We have grown our show count by 17% through the third quarter. At the same time, we have increased the revenue generated by each show through pricing optimization. Across our arenas and amphitheaters, our average ticket pricing is up 14%, driven by front-of-house pricing which is up 25%.  Collectively, these increases have grown artist earnings by over $300 million across roughly 6,000 shows.

This summer, we also saw growth from on-site hospitality initiatives at our amphitheaters, increasing our average revenue per fan by nearly $3 to almost $27. This is an increase of more than $6 per fan over the past three years, as we have driven substantial improvements across our food and beverage, VIP, and parking programs.

With the success of our concerts flywheel, we are promoting more shows for more fans, more effectively pricing and selling tickets, and delivering a better fan experience than ever before.  As a result, we will spend over $6 billion producing concerts this year, making Live Nation far and away the largest financial partner to musicians.

SPONSORSHIP DOUBLE-DIGIT GROWTH CONTINUES

In our high-margin sponsorship business, we have continued our double-digit growth this year, with revenue up 11%, operating income up 11%, and AOI up 12% year-to-date through September, as we also delivered our best quarterly results ever for our sponsorship business.

With 1,000 sponsors across our on-site and online platforms, Live Nation is the global leader in music sponsorship, providing brands with opportunities to reach our core millennial audience, as we again add new branded partnerships this quarter including T-Mobile, Sony, Sterling Wine, and Subway.

On-site sponsorship continues to be a key growth driver, and for the nine months our festival sponsorship net revenue is up 12% as we continue to find innovative ways at scale to connect brands with the nearly nine million fans attending over 100 festivals worldwide.

Our other key growth initiative is deepening and broadening our strategic brand relationships, with now over 70 sponsors investing on our platform across multiple fronts. Collectively, the committed spend by this group is up 13% to nearly $350 million through October, accounting for approximately 75% of our overall sponsorship & advertising revenue.

With over 95% of our expected sponsorship revenue for the year now contracted, we are confident we will deliver double-digit operating income and AOI growth in Sponsorship for the full year.

TICKETMASTER MARKETPLACE CONTINUES TO GROW

Ticketmaster continues building its position as the global ticketing marketplace leader, with 15% growth year-to-date through September in global fee-bearing gross transaction value ("GTV"), driving revenue growth of 13%, operating income growth of 7% and AOI growth of 11%.

Ticketmaster will deliver almost 500 million tickets worth approximately $31 billion in GTV across 28 countries for the full year, making it the world's largest such marketplace. And the success of our marketplace is stronger than ever, as all three quarters in 2018 have been among our top five quarters ever for recognized GTV.

During the third quarter, we continued our Presence digital ticketing rollout to NFL stadiums and many of our Live Nation buildings, bringing the installed base to 177 venues. In the third quarter at these venues, we held over 1,500 events with more than three million fans using mobile tickets for entry.  We proved out the scalable capability of mobile ticketing in the quarter, with as many as 97% of the fans for some NFL games entering via mobile. For the fourth quarter, we expect digital ticketing growth to continue, with another ten million fans across 2,000 events, approximately five million of whom will enter using mobile tickets.

The move to digital ticketing has meant that sports teams, venues and artists have much greater control over the ticket, enabling them to better control distribution and ultimately the chain of custody for the tickets.

Overall, Ticketmaster's results are validating our dual strategy of delivering a great marketplace for fans to buy tickets while providing the greatest enterprise tools to venues, teams and artists looking to control their tickets and maximize the value of their events.  By continuing to do both effectively, I expect us to deliver high-single-digit growth in Ticketing operating income and AOI this year(1).

SUMMARY

As we approach the end of 2018, we are confident that our strong performance will deliver another record year of results. All of our businesses — concerts, sponsorship and ticketing — have delivered growth year-to-date through September, and based on their key operating metrics, we expect each to deliver record revenue, operating income, and AOI for the full year(1). As we look forward, we see tremendous opportunities to continue the global expansion of our concerts and ticketing businesses, and for further growth in sponsorship and ticketing from the concerts flywheel.

Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.

1) Growth numbers for Live Nation overall and for the Ticketing segment are based on a comparison to 2017 results after adjusting for $110 million of legal expenses recorded in the fourth quarter of 2017.

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.

Notice Regarding Financial Statements

The company has provided certain unaudited financial statements at the end of this press release for reference.  These unaudited financial statements should be read in conjunction with the full unaudited 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 www.livenationentertainment.com.

FINANCIAL HIGHLIGHTS – 3rd QUARTER

(unaudited; $ in millions)



Q3 2018
Reported


Q3 2017
Reported


Growth


Q3 2018
Constant
Currency


Growth at
Constant
Currency

Revenue










Concerts

$

3,297.3



$

2,939.4



12

%


$

3,319.8



13

%

Sponsorship & Advertising

171.2



158.0



8

%


172.4



9

%

Ticketing

368.3



340.3



8

%


372.1



9

%

Other and Eliminations

(1.6)



2.6



*


(1.6)



*


$

3,835.2



$

3,440.3



11

%


$

3,862.7



12

%











Operating Income (Loss)










Concerts

$

121.3



$

84.3



44

%


$

122.6



45

%

Sponsorship & Advertising

113.8



106.7



7

%


114.7



7

%

Ticketing

49.5



54.1



(8%)



50.5



(7%)


Other and Eliminations

(6.9)



(2.5)



*


(6.9)



*

Corporate

(43.5)



(41.3)



(5%)



(43.5)



(5%)



$

234.2



$

201.3



16

%


$

237.4



18

%











Adjusted Operating Income (Loss)










Concerts

$

200.3



$

154.3



30

%


$

202.0



31

%

Sponsorship & Advertising

123.1



113.6



8

%


124.0



9

%

Ticketing

106.5



105.8



1

%


107.9



2

%

Other and Eliminations

(7.9)



(3.7)



*


(7.9)



*

Corporate

(35.5)



(35.5)





(35.5)





$

386.5



$

334.5



16

%


$

390.5



17

%

* percentages are not meaningful

 

FINANCIAL HIGHLIGHTS – 9 MONTHS

(unaudited; $ in millions)



9 Months
2018
Reported


9 Months

2017
Reported


Growth


9 Months
2018
Constant
Currency


Growth at
Constant
Currency

Revenue










Concerts

$

6,716.9



$

6,052.5



11

%


$

6,665.3



10

%

Sponsorship & Advertising

385.7



346.5



11

%


382.3



10

%

Ticketing

1,091.9



964.3



13

%


1,084.9



13

%

Other and Eliminations

(8.6)



3.5



*


(8.6)



*


$

8,185.9



$

7,366.8



11

%


$

8,123.9



10

%











Operating Income (Loss)










Concerts

$

99.3



$

46.1



*


$

101.5



*

Sponsorship & Advertising

225.4



203.5



11

%


222.9



10

%

Ticketing

163.5



152.3



7

%


166.0



9

%

Other and Eliminations

(14.0)



(7.5)



(87%)



(14.0)



(87%)


Corporate

(111.3)



(101.0)



(10%)



(111.3)



(10%)



$

362.9



$

293.4



24

%


$

365.1



24

%











Adjusted Operating Income (Loss)










Concerts

$

284.3



$

220.6



29

%


$

283.8



29

%

Sponsorship & Advertising

250.2



224.1



12

%


247.7



11

%

Ticketing

330.3



298.1



11

%


331.1



11

%

Other and Eliminations

(16.8)



(10.2)



(65%)



(16.8)



(65%)


Corporate

(87.4)



(84.6)



(3%)



(87.4)



(3%)



$

760.6



$

648.0



17

%


$

758.4



17

%

* percentages are not meaningful

 

  • As of September 30, 2018, total cash and cash equivalents were $1.9 billion, which includes $734 million in ticketing client cash and $613 million in free cash.
  • Event-related deferred revenue was $759 million as of September 30, 2018, compared to $774 million as of the same date in 2017.
  • For the quarter ended September 30, 2018, net cash used in operating activities was $264 million and free cash flow — adjusted was $307 million. For the nine months, net cash provided by operating activities was $256 million and free cash flow — adjusted was $529 million.
  • We currently expect capital expenditures for the full year to be approximately $250 million, with approximately 50% to be revenue generating capital expenditures.
  • We currently expect the amortization of non-recoupable ticketing contract advances for the full year 2018 to be approximately in line with the total amount in 2017.

 

K EY OPERATING METRICS



Q3 2018


Q3 2017


9 Months
2018


9 Months
2017


(in thousands except estimated events)

Concerts (1)








Events:








North America

5,922



5,267



17,041



14,197


International

1,808



1,491



6,950



6,242


Total estimated events

7,730



6,758



23,991



20,439


Fans:








North America

24,184



21,570



47,090



42,670


International

9,127



8,142



23,719



22,719


Total estimated fans

33,311



29,712



70,809



65,389


Ticketing (2)








Fee-bearing tickets

53,458



50,093



154,627



147,200


Non-fee-bearing tickets

59,112



60,814



174,132



179,565


Total estimated tickets

112,570



110,907



328,759



326,765




(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)

Q3 2018


Q3 2017

Net cash used in operating activities

$

(264.2)



$

(386.5)


Changes in operating assets and liabilities (working capital)

620.3



671.0


Free cash flow from earnings

$

356.1



$

284.5


Less: Maintenance capital expenditures

(38.9)



(26.9)


          Distributions to noncontrolling interests

(10.3)



(4.4)


Free cash flow — adjusted

$

306.9



$

253.2






Net cash used in investing activities

$

(64.5)



$

(63.6)






Net cash used in financing activities

$

(46.6)



$

(1.5)


 

($ in millions)

9 Months 2018


9 Months 2017

Net cash provided by operating activities

$

255.6



$

418.2


Changes in operating assets and liabilities (working capital)

394.7



120.9


Free cash flow from earnings

$

650.3



$

539.1


Less: Maintenance capital expenditures

(80.0)



(82.6)


          Distributions to noncontrolling interests

(41.4)



(22.9)


Free cash flow — adjusted

$

528.9



$

433.6






Net cash used in investing activities

$

(378.9)



$

(235.5)






Net cash provided by (used in) financing activities

$

268.1



$

(25.7)


Reconciliation of Free Cash to Cash and Cash Equivalents

($ in millions)

September 30,
 2018

Cash and cash equivalents

$

1,900.3


Client cash

(733.7)


Deferred revenue — event-related

(758.7)


Accrued artist fees

(163.8)


Collections on behalf of others

(55.0)


Prepaid expenses — event-related

423.9


   Free cash

$

613.0


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 record results for the full-year 2018, including record revenue, operating income and adjusted operating income, ; anticipated strong divisional performance for the full year, including expected double-digit operating income and adjusted operating income for sponsorship and expected high-single-digit growth in ticketing operating income and adjusted operating income; the anticipation that the company's concerts business will sell over 90 million tickets, with a spend of over $6 billion producing concerts for the full year; the expectation that Ticketmaster will deliver almost 500 million tickets worth approximately $31 billion in GTV across 28 countries in 2018, as well as its anticipated growth of digital ticketing, currently expecting another 10 million fans across 2,000 events, approximately five million of whom are expected to enter using mobile tickets; and the company's opportunities to continue the global expansion of its concerts and ticketing businesses and for further growth in sponsorship and ticketing from its concerts flywheel. 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 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 acquisition-related contingent consideration obligations, and acquisition-related severance and compensation). 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 (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. 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 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 September 30, 2018



















Concerts

$

121.3



$

3.2



$

10.3



$

54.4



$



$

11.1



$

200.3



$

1.7



$

202.0


Sponsorship & Advertising

113.8



0.4





8.9







123.1



0.9



124.0


Ticketing

49.5



1.2





34.7



20.8



0.3



106.5



1.4



107.9


Other and Eliminations

(6.9)







0.2



(1.2)





(7.9)





(7.9)


Corporate

(43.5)



6.6





1.4







(35.5)





(35.5)


Total Live Nation

$

234.2



$

11.4



$

10.3



$

99.6



$

19.6



$

11.4



$

386.5



$

4.0



$

390.5





















Three Months Ended September 30, 2017



















Concerts

$

84.3



$

1.9



$



$

52.3



$



$

15.8



$

154.3



$



$

154.3


Sponsorship & Advertising

106.7



0.3





6.6







113.6





113.6


Ticketing

54.1



1.1





28.8



21.5



0.3



105.8





105.8


Other and Eliminations

(2.5)







0.1



(1.3)





(3.7)





(3.7)


Corporate

(41.3)



4.5





1.4





(0.1)



(35.5)





(35.5)


Total Live Nation

$

201.3



$

7.8



$



$

89.2



$

20.2



$

16.0



$

334.5



$



$

334.5





















Nine Months Ended September 30, 2018



















Concerts

$

99.3



$

9.0



$

10.5



$

146.5



$



$

19.0



$

284.3



$

(0.5)



$

283.8


Sponsorship & Advertising

225.4



1.2





23.6







250.2



(2.5)



247.7


Ticketing

163.5



3.5





103.3



59.3



0.7



330.3



0.8



331.1


Other and Eliminations

(14.0)







0.6



(3.4)





(16.8)





(16.8)


Corporate

(111.3)



20.6





3.3







(87.4)





(87.4)


Total Live Nation

$

362.9



$

34.3



$

10.5



$

277.3



$

55.9



$

19.7



$

760.6



$

(2.2)



$

758.4





















Nine Months Ended September 30, 2017



















Concerts

$

46.1



$

6.6



$

(0.6)



$

144.9



$



$

23.6



$

220.6



$



$

220.6


Sponsorship & Advertising

203.5



1.0





19.6







224.1





224.1


Ticketing

152.3



3.1



0.1



82.8



58.0



1.8



298.1





298.1


Other and Eliminations

(7.5)







0.4



(3.1)





(10.2)





(10.2)


Corporate

(101.0)



13.2





3.2







(84.6)





(84.6)


Total Live Nation

$

293.4



$

23.9



$

(0.5)



$

250.9



$

54.9



$

25.4



$

648.0



$



$

648.0


 

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)



September 30,
 2018


December 31,
 2017


(in thousands)

ASSETS




Current assets




Cash and cash equivalents

$

1,900,305



$

1,825,322


Accounts receivable, less allowance of $39,996 and $32,755, respectively

1,252,585



725,304


Prepaid expenses

668,900



546,713


Restricted cash

9,493



3,500


Other current assets

49,764



51,903


Total current assets

3,881,047



3,152,742


Property, plant and equipment




Land, buildings and improvements

969,840



955,937


Computer equipment and capitalized software

725,842



610,924


Furniture and other equipment

319,248



312,962


Construction in progress

128,943



133,906



2,143,873



2,013,729


Less accumulated depreciation

1,230,516



1,127,793



913,357



885,936


Intangible assets




Definite-lived intangible assets, net

669,568



729,265


Indefinite-lived intangible assets

368,920



369,023


Goodwill

1,835,353



1,754,589


Other long-term assets

843,454



612,708


Total assets

$

8,511,699



$

7,504,263


LIABILITIES AND EQUITY




Current liabilities




Accounts payable, client accounts

$

1,048,647



$

948,637


Accounts payable

112,036



85,666


Accrued expenses

1,409,170



1,109,246


Deferred revenue

890,783



925,220


Current portion of long-term debt, net

81,832



347,593


Other current liabilities

66,330



160,638


Total current liabilities

3,608,798



3,577,000


Long-term debt, net

2,731,985



1,952,366


Deferred income taxes

130,911



137,635


Other long-term liabilities

180,626



174,391


Commitments and contingent liabilities




Redeemable noncontrolling interests

308,450



244,727


Stockholders' equity




Common stock

2,083



2,069


Additional paid-in capital

2,328,425



2,374,006


Accumulated deficit

(871,336)



(1,079,472)


Cost of shares held in treasury

(6,865)



(6,865)


Accumulated other comprehensive loss

(134,918)



(108,542)


Total Live Nation stockholders' equity

1,317,389



1,181,196


Noncontrolling interests

233,540



236,948


Total equity

1,550,929



1,418,144


Total liabilities and equity

$

8,511,699



$

7,504,263


 

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)



Three Months Ended
     September 30,


Nine Months Ended
     September 30,


2018


2017


2018


2017




(as adjusted)




(as adjusted)


(in thousands except share and per share data)

Revenue

$

3,835,246



$

3,440,308



$

8,185,945



$

7,366,772


Operating expenses:








Direct operating expenses

2,924,356



2,633,940



5,991,547



5,431,672


Selling, general and administrative expenses

524,654



475,864



1,435,703



1,293,557


Depreciation and amortization

99,606



89,228



277,262



250,925


Loss (gain) on disposal of operating assets

10,318



37



10,464



(507)


Corporate expenses

42,093



39,892



108,055



97,711


Operating income

234,219



201,347



362,914



293,414


Interest expense

35,993



26,627



101,726



79,515


Loss on extinguishment of debt





2,470



1,049


Interest income

(2,260)



(1,471)



(6,148)



(3,447)


Equity in losses (earnings) of nonconsolidated affiliates

(4)



816



(3,406)



(2,060)


Other expense (income), net

262



920



7,033



(5,388)


Income before income taxes

200,228



174,455



261,239



223,745


Income tax expense

17,031



25,685



35,714



42,190


Net income

183,197



148,770



225,525



181,555


Net income (loss) attributable to noncontrolling interests

10,514



12,377



17,389



(3,323)


Net income attributable to common stockholders of Live Nation

$

172,683



$

136,393



$

208,136



$

184,878










Basic net income per common share available to common stockholders of Live Nation

$

0.73



$

0.56



$

0.74



$

0.65


Diluted net income per common share available to common stockholders of Live Nation

$

0.70



$

0.53



$

0.71



$

0.62










Weighted average common shares outstanding:








Basic

207,614,413



205,287,843



207,228,034



204,574,742


Diluted

216,788,983



223,132,186



215,406,201



213,886,452


















Reconciliation to net income available to common stockholders of Live Nation:

Net income attributable to common stockholders of Live Nation

$

172,683



$

136,393



$

208,136



$

184,878


Accretion of redeemable noncontrolling interests

(20,789)



(21,397)



(54,347)



(52,811)


Net income available to common stockholders of Live Nation—basic

151,894



114,996



153,789



132,067


Convertible debt interest, net of tax

319



3,336






Net income available to common stockholders of Live Nation—diluted

$

152,213



$

118,332



$

153,789



$

132,067










 

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)



Nine Months Ended
     September 30,


2018


2017




(as adjusted)


(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES




Net income

$

225,525



$

181,555


Reconciling items:




Depreciation

133,718



107,530


Amortization

143,544



143,395


Amortization of non-recoupable ticketing contract advances

55,893



54,892


Amortization of debt issuance costs and discounts, net

14,765



9,836


Non-cash compensation expense

34,315



23,921


Unrealized changes in fair value of contingent consideration

11,609



12,198


Loss (gain) on disposal of operating assets

10,464



(507)


Equity in earnings of nonconsolidated affiliates, net of distributions

10,024



5,333


Provision for uncollectible receivables and advances

16,898



7,226


Other, net

(6,525)



(6,236)


Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:




Increase in accounts receivable

(545,872)



(394,753)


Increase in prepaid expenses and other assets

(332,254)



(279,269)


Increase in accounts payable, accrued expenses and other liabilities

484,432



536,944


Increase (decrease) in deferred revenue

(960)



16,169


Net cash provided by operating activities

255,576



418,234


CASH FLOWS FROM INVESTING ACTIVITIES




Advances of notes receivable

(71,578)



(10,943)


Collection of notes receivable

29,104



5,106


Investments made in nonconsolidated affiliates

(42,580)



(22,157)


Purchases of property, plant and equipment

(163,714)



(184,499)


Cash paid for acquisitions, net of cash acquired

(98,288)



(18,809)


Purchases of intangible assets

(33,175)



(4,895)


Other, net

1,375



698


Net cash used in investing activities

(378,856)



(235,499)


CASH FLOWS FROM FINANCING ACTIVITIES




Proceeds from long-term debt, net of debt issuance costs

857,121



59,313


Payments on long-term debt

(391,096)



(84,608)


Distributions to noncontrolling interests

(41,351)



(22,877)


Purchases and sales of noncontrolling interests, net

(152,971)



(10,730)


Proceeds from exercise of stock options

16,447



44,746


Payments for deferred and contingent consideration

(16,239)



(14,149)


Other, net

(3,785)



2,642


Net cash provided by (used in) financing activities

268,126



(25,663)


Effect of exchange rate changes on cash, cash equivalents and restricted cash

(63,870)



118,322


Net increase in cash, cash equivalents and restricted cash

80,976



275,394


Cash, cash equivalents and restricted cash at beginning of period

1,828,822



1,529,575


Cash, cash equivalents and restricted cash at end of period

$

1,909,798



$

1,804,969


 

(PRNewsfoto/Live Nation Entertainment)

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/live-nation-entertainment-reports-third-quarter-2018-financial-results-300742712.html

SOURCE Live Nation Entertainment

logo