Live Nation Entertainment Reports Third Quarter 2010 Financial Results

LOS ANGELES, Nov. 4, 2010 /PRNewswire-FirstCall/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three months ended September 30, 2010 today.  Live Nation completed its merger with Ticketmaster in January 2010; consequently, third quarter 2010 reported results include the legacy Ticketmaster operations for the full quarter.

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"During the third quarter we executed a number of revenue enhancement programs to drive attendance and reduce the impact of the economic slowdown on consumer spending," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. "We continued to drive results in our higher margin businesses, including our eCommerce and sponsorship assets. Given our direct access to over 200 million fans through our online storefront, we're focused on improving our digital offerings and participating in multiple revenue streams linked to the online ticket purchase. Looking ahead, the artist pipeline for 2011 appears solid and we are taking a more profit-driven and measured approach to securing and pricing our shows given the uncertain economy. We are also taking additional steps to reduce our operating costs and further improve efficiencies across our operations as we move toward 2011. As we execute our strategy, we remain confident in our ability to maximize the value of our end-to-end platform and improve the performance of our business."

"Clearly the adverse economic environment has negatively impacted our concert business during the 2010 year so far, and has had a similar impact on our ticketing and artist businesses as well," said Irving Azoff, Executive Chairman of Live Nation Entertainment. "We continue to grow our Artist Nation business with new signings and acquisitions. While our roster of superstar clients and tour schedules for 2011 remains strong, we need some improvement in the overall economic environment in order to optimize profits going forward."

The company will host a teleconference today, November 4th, 2010 at 5:00 p.m. Eastern Time, which can be accessed by dialing 888-603-6873 (U.S.) or 973-321-1019 (Int'l) and referencing passcode 16775958.  To access the call via webcast, please visit the Investor Relations section of the company's website at www.livenation.com/investors.  Please visit the website approximately ten minutes prior to the start time to ensure a connection.  Additional statistical and financial information to be provided on the call, if any, will be posted supplementally under that same link.  For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on the Live Nation website through November 11, 2010.

Live Nation Combined Metrics

In order to give comparable information, metrics below include the results of the legacy Ticketmaster operations, as applicable, for the three months and from the date of the merger (January 25) through the nine months ended September 30 for each of 2010 and 2009.


COMBINED METRICS

(Unaudited; $ in millions except as noted)

                                             9 months
Key Drivers  Q3 2010    Q3 2009    Variance  2010       9 months 2009 Variance

CONCERTS

Number of
Concerts
(est.)       4,907      4,775      2.8%      15,049     14,933        0.8%

Total
Attendance
(est.)       16,447,000 19,534,000 (15.8%)   35,667,000 39,711,000    (10.2%)

Ancillary
Net Revenue
per Attendee
- NA Amps    $ 17.53    $ 17.67    (0.8%)    $ 17.80    $ 17.89       (0.5%)

Ancillary
Net Revenue
per Attendee
- Intl
Festivals    $ 15.47    $ 14.81    4.5%      $ 15.50    $ 14.43       7.4%

eCOMMERCE

# of Average
Monthly
Unique
Visitors
(rounded,
est.)        27,000,000 24,800,000 8.9%      26,900,000 25,100,000    7.2%

Online
Advertising
Revenue      $ 10.7     $ 9.7      10.3%     $ 26.7     $ 23.6        13.1%

SPONSORSHIP

Number of
Sponsors -
as of end of
period
(est.)       722        808        (10.6%)   722        808           (10.6%)

Sponsorship
Revenue
Recognized   $ 69.5     $ 73.9     (6.0%)    $ 129.6    $ 133.3       (2.8%)

Average
Revenue per
Sponsor
(rounded,
whole $)     $ 96,000   $ 91,000   5.5%      $ 179,000  $ 165,000     8.5%

TICKETING

# of Tickets
Sold
(rounded,
est.)        32,271,000 33,711,000 (4.3%)    86,015,000 95,385,000    (9.8%)










(Unaudited;
$ in
millions,
tickets in
thousands)

Primary
Ticketing
Volume       Gross Value Ticket              Gross Value Ticket
Trends by    of Tickets  Volume Total Mix %  of Tickets  Volume Total Mix %
Category     Sold        Totals of Total     Sold        Totals of Total

             Third Quarter – 2010          Nine Months – 2010

Concerts     $ 1,068     17,948 56%          $ 2,979     46,325 54%

Sports       330         6,084  19%          861         16,771 19%

Arts &
Theater      319         4,563  14%          850         12,611 15%

Family       100         2,392  7%           287         7,232  8%

Other (1)    43          1,284  4%           113         3,076  4%

Total - 2010 $ 1,860     32,271 100%         $ 5,090     86,015 100%

             Third Quarter – 2009          Nine Months – 2009

Concerts     $ 1,083     18,564 55%          $ 3,388     52,795 55%

Sports       324         6,042  18%          848         17,187 18%

Arts &
Theater      341         5,171  15%          978         14,756 15%

Family       107         2,543  8%           279         7,310  8%

Other (1)    38          1,391  4%           111         3,337  4%

Total - 2009 $ 1,893     33,711 100%         $ 5,604     95,385 100%

(1) Other category includes tickets for: comedy shows; parking; audio and
facility tours; donations; lectures; and seminars.





In order to give comparable information, the combined results of operations below include the results of the legacy Ticketmaster operations for the three months and from the date of the merger (January 25) through the nine months ended September 30 for each of 2010 and 2009. As reported 2009 includes only Live Nation operations as reported in 2009.


FINANCIAL HIGHLIGHTS – 3rd QUARTER and NINE MONTHS

(Unaudited)

             COMBINED                 COMBINED                 AS REPORTED 2009

                                      9       9
                                      months  months                    9
                                                                        Months
             Q3 2010 Q3 2009 Growth   2010    2009    Growth   Q3 2009  2009

             ($ in millions)          ($ in millions)          ($ in millions)

Revenue

             $       $                $       $                         $
Concerts     1,380.5 1,613.7 (14.5%)  2,648.1 2,951.6 (10.3%)  $1,613.7 2,951.6

Ticketing    261.7   292.8   (10.6%)  734.7   856.4   (14.2%)  26.0     51.9

Artist
Nation       111.0   151.7   (26.8%)  269.2   332.3   (19.0%)  90.2     193.7

eCommerce    25.8    25.3    2.0%     62.8    61.2    2.6%     5.4      11.0

Sponsorship  69.5    73.9    (6.0%)   129.6   133.3   (2.8%)   73.5     132.3

Other &
Eliminations (12.1)  (14.3)  15.4%    (18.5)  (13.8)  (34.1%)  (14.2)   (13.8)

             $       $                $       $                $        $
             1,836.4 2,143.1 (14.3%)  3,825.9 4,321.0 (11.5%)  1,794.6  3,326.7



Adjusted
Operating
Income
(Loss)

Concerts     $ 61.9  $ 103.1 (40.0%)  $ 43.7  $ 101.0 (56.7%)  $ 103.1  $ 101.0

Ticketing    65.5    56.0    17.0%    175.1   157.6   11.1%    11.4     10.5

Artist
Nation       21.7    25.5    (14.9%)  32.4    41.9    (22.7%)  6.7      8.2

eCommerce    13.5    13.0    3.8%     24.4    25.2    (3.2%)   0.6      (3.8)

Sponsorship  53.1    48.0    10.6%    88.1    81.4    8.2%     47.7     80.5

Other &
Eliminations -       0.4     **       (0.4)   1.0     **       0.4      1.0

Corporate    (23.5)  (23.8)  (1.3%)   (57.3)  (66.9)  14.3%    (14.3)   (36.4)

             $ 192.2 $ 222.2 (13.5%)  $ 306.0 $ 341.2 (10.3%)  $ 155.6  $ 161.0



Operating
Income
(Loss)

                                      $
Concerts     $ 30.4  $ 71.5  (57.5%)  (40.4)  $ 4.7   **       $ 71.4   $ 4.7

Ticketing    43.4    32.2    34.8%    94.1    86.7    8.5%     8.7      2.6

Artist
Nation       5.7     8.7     (34.5%)  (4.2)   (2.3)   **       4.8      1.0

eCommerce    11.1    10.8    2.8%     18.7    18.6    0.5%     (0.4)    (7.8)

Sponsorship  52.9    47.9    10.4%    87.5    81.2    7.8%     47.6     80.4

Other &
Eliminations 0.6     0.2     **       1.3     0.7     **       0.2      0.6

Corporate    (29.1)  (27.1)  7.4%     (81.2)  (77.2)  5.2%     (16.2)   (43.0)

             $ 115.0 $ 144.2 (20.2%)  $ 75.8  $ 112.4 (32.6%)  $ 116.1  $ 38.5



Acquisition
Expenses     $ 4.8   $ 14.7           $ 36.4  $ 43.0           $ 7.7    $ 26.5

             $ 110.2 $ 129.5          $ 39.4  $ 69.4           $ 108.4  $ 12.0

** percentages are not meaningful





Free cash as of September 30, 2010 was $425.0 million.  Free cash flow was $147.1 million for the third quarter of 2010 as compared to $153.4 million on a combined basis for the same period in 2009, and $177.7 million for the nine months ended September 30, 2010 as compared to $163.1 million on a combined basis for the same period of last year.

About Live Nation Entertainment:

Live Nation Entertainment (NYSE:LYV) is the largest live entertainment company in the world: connecting 200 million fans to 100,000 events in over 40 countries which has made Ticketmaster.com the #3 eCommerce website in the world. For additional information, visit www.livenation.com/investors.


LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)



                                Three Months Ended      Nine Months Ended

                                September 30,           September 30,

                                2010        2009        2010        2009



                                (in thousands except share and per share data)

Revenue                         $ 1,836,351 $ 1,794,588 $ 3,825,902 $ 3,326,716

Operating expenses:

Direct operating expenses       1,387,302   1,467,647   2,769,459   2,679,438

Selling, general and
administrative expenses         244,065     158,412     727,708     453,920

Depreciation and amortization   65,320      35,953      181,525     113,539

Loss (gain) on sale of
operating assets                (779)       (27)        3,155       (1,009)

Corporate expenses              27,660      16,424      86,666      42,308

Acquisition transaction
expenses                        2,581       7,780       17,992      26,515



Operating income                110,202     108,399     39,397      12,005

Interest expense                29,414      17,438      85,773      50,557

Loss on extinguishment of debt  —         —         21,172      —

Interest income                 (715)       (342)       (2,158)     (1,908)

Equity in earnings of
nonconsolidated affiliates      (629)       (163)       (2,884)     (979)

Other expense (income) — net  (212)       3,858       (1,845)     4,465



Income (loss) from continuing
operations before income taxes  82,344      87,608      (60,661)    (40,130)

Income tax expense (benefit):

Current                         14,004      17,344      17,844      28,220

Deferred                        2,905       (2,129)     (4,950)     (4,316)



Income (loss) from continuing
operations                      65,435      72,393      (73,555)    (64,034)

Income (loss) from discontinued
operations, net of tax          (3,213)     6,779       (3,893)     13,241



Net income (loss)               62,222      79,172      (77,448)    (50,793)

Net income attributable to
noncontrolling interests        10,818      9,925       11,648      9,865

Net income (loss) attributable
to Live Nation Entertainment,
Inc.                            $ 51,404    $ 69,247    $ (89,096)  $ (60,658)



Basic net income (loss) per
common share attributable to
common stockholders:

Income (loss) from continuing
operations attributable to Live
Nation Entertainment, Inc.      $ 0.32      $ 0.74      $ (0.53)    $ (0.90)

Income (loss) from discontinued
operations attributable to Live
Nation Entertainment, Inc.      (0.02)      0.08        (0.02)      0.16



Net income (loss) attributable
to Live Nation Entertainment,
Inc.                            $ 0.30      $ 0.82      $ (0.55)    $ (0.74)



Diluted net income (loss) per
common share attributable to
common stockholders:

Income (loss) from continuing
operations attributable to Live
Nation Entertainment, Inc.      $ 0.32      $ 0.71      $ (0.53)    $ (0.90)

Income (loss) from discontinued
operations attributable to Live
Nation Entertainment, Inc.      (0.02)      0.07        (0.02)      0.16



Net income (loss) attributable
to Live Nation Entertainment,
Inc.                            $ 0.30      $ 0.78      $ (0.55)    $ (0.74)



Weighted average common shares
outstanding:



Basic                           170,285,159 83,631,558  162,285,785 82,296,605

Diluted                         172,302,273 92,717,666  162,285,785 82,296,605








LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS



                                                     September 30, December 31,

                                                     2010          2009

                                                     (Unaudited)   (Audited)

                                                     (in thousands)

ASSETS

Current assets

Cash and cash equivalents                            $ 855,616     $ 236,955

Accounts receivable, less allowance of $13,042 as of
September 30, 2010 and $8,230 as of December 31,
2009                                                 470,503       176,179

Prepaid expenses                                     433,434       277,599

Other current assets                                 46,596        27,133

Total current assets                                 1,806,149     717,866

Property, plant and equipment

Land, buildings and improvements                     888,838       875,958

Computer equipment and capitalized software          186,251       131,875

Furniture and other equipment                        165,245       156,756

Construction in progress                             32,183        17,398



                                                     1,272,517     1,181,987

Less accumulated depreciation                        503,390       432,003



                                                     769,127       749,984

Intangible assets

Definite-lived intangible assets — net             967,101       442,641

Indefinite-lived intangible assets                   381,157       28,248

Goodwill                                             1,232,693     204,672



Investments in nonconsolidated affiliates            27,719        2,077

Other long-term assets                               208,603       196,271



Total assets                                         $ 5,392,549   $ 2,341,759



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable, client accounts                    $ 428,688     $ —

Accounts payable                                     99,799        50,844

Accrued expenses                                     558,826       357,138

Deferred revenue                                     326,219       284,536

Current portion of long-term debt                    65,324        41,032

Other current liabilities                            52,613        18,684



Total current liabilities                            1,531,469     752,234



Long-term debt, net                                  1,671,789     699,037

Long-term deferred income taxes                      227,337       30,480

Other long-term liabilities                          198,957       94,567

Series A and Series B redeemable preferred stock     —           40,000

Commitments and contingent liabilities



Redeemable noncontrolling interests                  132,121       —



Stockholders' equity

Common stock                                         1,723         860

Additional paid-in capital                           2,044,110     1,090,572

Accumulated deficit                                  (522,881)     (433,785)

Cost of shares held in treasury                      (9,592)       (9,529)

Accumulated other comprehensive income (loss)        (3,211)       4,199



Total Live Nation Entertainment, Inc. stockholders'
equity                                               1,510,149     652,317

Noncontrolling interests                             120,727       73,124

Total stockholders' equity                           1,630,876     725,441

Total liabilities and stockholders' equity           $ 5,392,549   $ 2,341,759








LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)



                                                         Nine Months Ended

                                                         September 30,

                                                         2010        2009

                                                         (in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss                                                 $ (77,448)  $ (50,793)

Reconciling items:

Depreciation                                             90,239      76,033

Amortization                                             91,286      41,666

Deferred income tax benefit                              (4,950)     (4,651)

Amortization of debt issuance costs                      3,265       2,763

Amortization of debt discount/premium, net               5,109       6,528

Provision for uncollectible accounts receivable and
advances                                                 16,661      2,704

Non-cash loss on extinguishment of debt                  8,272       —

Non-cash compensation expense                            45,532      10,011

Unrealized changes in fair value contingent
consideration                                            2,965       —

Loss (gain) on sale of operating assets                  7,048       (3,658)

Equity in earnings of nonconsolidated affiliates         (2,884)     (1,982)

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

Increase in accounts receivable                          (153,403)   (110,707)

Increase in prepaid expenses                             (110,428)   (73,228)

Increase in other assets                                 (27,083)    (22,522)

Increase in accounts payable, accrued expenses and other
liabilities                                              84,829      203,412

Increase (decrease) in deferred revenue                  34,696      (995)



Net cash provided by operating activities                13,706      74,581



CASH FLOWS FROM INVESTING ACTIVITIES

Collection and advances of notes receivable              485         61

Distributions from nonconsolidated affiliates            6,019       2,223

Investments made to nonconsolidated affiliates           (775)       (821)

Purchases of property, plant and equipment               (49,165)    (53,854)

Proceeds from disposal of operating assets, net of cash
divested                                                 22,119      38,516

Cash paid for acquisitions, net of cash acquired         560,732     (5,146)

Purchases of intangible assets                           (1,371)     (27,863)

Decrease (increase) in other — net                     (246)       187



Net cash provided by (used in) investing activities      537,798     (46,697)



CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt, net of debt issuance costs 1,318,132   430,511

Payments on long-term debt                               (1,191,712) (416,143)

Redemption of preferred stock                            (40,000)    —

Contributions from noncontrolling interest partners      14          —

Distributions to noncontrolling interest partners        (10,538)    (816)

Proceeds from exercise of stock options                  4,526       —

Issuance of treasury stock                               —         1,553

Equity issuance costs                                    (357)       —

Payments for purchases of common stock                   (1,567)     (5,803)

Payments for deferred and contingent consideration.      (11,109)    (7,392)



Net cash provided by financing activities                67,389      1,910

Effect of exchange rate changes on cash and cash
equivalents                                              (232)       28,635



Net increase in cash and cash equivalents                618,661     58,429

Cash and cash equivalents at beginning of period         236,955     199,660



Cash and cash equivalents at end of period               $ 855,616   $ 258,089











Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations:

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements include, but are not limited to, statements regarding the potential health and growth of Live Nation's business; the company's anticipated artist pipeline for 2011; potential improvements in the company's digital offerings and the benefits expected to be derived therefrom; anticipated reduced operating costs and increased efficiencies; and the potential growth of the company's Artist Nation business. 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, challenges related to the post-merger integration of Live Nation and Ticketmaster, the potential impact of the 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 below.

Adjusted Operating Income (Loss), or AOI, is a non-GAAP financial measure that the company defines as operating income (loss) before acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration arrangements, merger bonuses, payments under the Azoff Trust note and merger-related severance), depreciation and amortization (including goodwill impairment), loss (gain) on sale of operating assets and non-cash and certain stock-based compensation expense (including expense associated with grants of certain stock-based awards which are classified as liabilities). The company uses AOI to evaluate the performance of its operating segments. The company believes that information about AOI assists investors by allowing them to evaluate changes in the operating results of the portfolio of the businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in the company's business. Accordingly, AOI should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash Flow is a non-GAAP financial measure that the company defines as Adjusted Operating Income (Loss) less maintenance capital expenditures, less net cash interest expense, less cash taxes, less net distributions to minority interest partners, plus distributions from investments in nonconsolidated affiliates net of contributions to investments in nonconsolidated affiliates.  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 for cash collected on behalf of others for ticket sales, 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 finance venue and other revenue generating 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)

COMBINED RESULTS

Reconciliation of Adjusted Operating Income (Loss) to Operating Income (Loss)

                                     Loss
              Adjusted  Non-cash and (gain) on

              Operating stock-based  sale of
                                               Depreciation             Operating
              income    compensation operating              Acquisition
($ in                                          and                      income
millions)     (loss)    expense      assets    amortization expenses    (loss)

              Three months ended September 30, 2010



Concerts      $ 61.9    $ 2.6        $ (0.8)   $ 29.7       $ (2.9)     $ 33.3

Ticketing     65.5      1.4          -         20.7         0.9         42.5

Artist
Nation        21.7      3.4          -         12.6         1.3         4.4

eCommerce     13.5      0.2          -         2.2          0.1         11.0

Sponsorship   53.1      0.1          -         0.1          -           52.9

Other &
Eliminations  -         -            -         (0.6)        -           0.6

Corporate     (23.5)    5.0          -         0.6          5.4         (34.5)

Total Live
Nation        $ 192.2   $ 12.7       $ (0.8)   $ 65.3       $ 4.8       $ 110.2



              Three months ended September 30, 2009



Concerts      $ 103.1   $ 1.8        $ (0.2)   $ 30.0       $ 0.7       $ 70.8

Ticketing     56.0      1.6          -         22.2         -           32.2

Artist
Nation        25.5      3.8          -         13.0         -           8.7

eCommerce     13.0      -            -         2.2          -           10.8

Sponsorship   48.0      -            -         0.1          -           47.9

Other &
Eliminations  0.4       -            0.1       0.1          -           0.2

Corporate     (23.8)    3.1          -         0.2          14.0        (41.1)

Total Live
Nation        $ 222.2   $ 10.3       $ (0.1)   $ 67.8       $ 14.7      $ 129.5



              Nine months ended September 30, 2010



Concerts      $ 43.7    $ 6.2        $ (2.0)   $ 79.9       $ (2.3)     $ (38.1)

Ticketing     175.1     10.7         5.2       65.1         7.4         86.7

Artist
Nation        32.4      5.8          -         30.8         7.1         (11.3)

eCommerce     24.4      0.4          -         5.3          0.8         17.9

Sponsorship   88.1      0.4          -         0.2          0.1         87.4

Other &
Eliminations  (0.4)     -            -         (1.7)        -           1.3

Corporate     (57.3)    22.0         -         1.9          23.3        (104.5)

Total Live
Nation        $ 306.0   $ 45.5       $ 3.2     $ 181.5      $ 36.4      $ 39.4



              Nine months ended September 30, 2009



Concerts      $ 101.0   $ 3.8        $ (1.1)   $ 93.6       $ 0.8       $ 3.9

Ticketing     157.6     4.7          -         66.2         -           86.7

Artist
Nation        41.9      11.1         -         33.1         -           (2.3)

eCommerce     25.2      0.3          -         6.3          -           18.6

Sponsorship   81.4      -            -         0.2          -           81.2

Other &
Eliminations  1.0       -            0.1       0.2          -           0.7

Corporate     (66.9)    9.2          -         1.1          42.2        (119.4)

Total Live
Nation        $ 341.2   $ 29.1       $ (1.0)   $ 200.7      $ 43.0      $ 69.4








AS REPORTED RESULTS

Reconciliation of Adjusted Operating Income (Loss) to Operating Income
(Loss)

                      Three months ended September 30, 2009



Concerts              $ 103.1 $ 1.8 $ (0.1) $ 30.0  $ 0.6  $ 70.8

Ticketing             11.4    0.1   -       2.6     -      8.7

Artist Nation         6.7     -     -       1.9     -      4.8

eCommerce             0.6     -     -       1.0     -      (0.4)

Sponsorship           47.7    -     -       0.1     -      47.6

Other & Eliminations  0.4     -     0.1     0.1     -      0.2

Corporate             (14.3)  1.7   -       0.2     7.1    (23.3)

Total Live Nation     $ 155.6 $ 3.6 $ -     $ 35.9  $ 7.7  $ 108.4



                      Nine months ended September 30, 2009



Concerts              $ 101.0 $ 3.8 $ (1.1) $ 93.6  $ 0.8  $ 3.9

Ticketing             10.5    0.1   -       7.8     -      2.6

Artist Nation         8.2     0.3   -       6.9     -      1.0

eCommerce             (3.8)   0.2   -       3.8     -      (7.8)

Sponsorship           80.5    -     -       0.1     -      80.4

Other & Eliminations  1.0     -     0.1     0.3     -      0.6

Corporate             (36.4)  5.5   -       1.1     25.7   (68.7)

Total Live Nation     $ 161.0 $ 9.9 $ (1.0) $ 113.6 $ 26.5 $ 12.0








Reconciliation of Adjusted Operating Income (Loss) to Free Cash Flow

                                                     Reported Reported Combined

($ in millions)                                      Q3 2010  Q3 2009  Q3 2009

Adjusted operating income                            $ 192.2  $ 155.6  $ 222.2

Less: Cash interest expense—net                    (25.6)   (13.9)   (27.4)

Cash taxes                                           (14.0)   (18.9)   (26.7)

Maintenance capital expenditures                     (7.4)    (5.2)    (12.5)

Distributions to noncontrolling interest partners    (2.3)    (0.5)    (1.1)

Distributions from (contributions to) investments in
nonconsolidated affiliates                           4.2      (0.1)    (1.1)

Free cash flow                                       $ 147.1  $ 117.0  $ 153.4










                                                     Reported Reported Combined

                                                     9 months 9 months 9 months

($ in millions)                                      2010     2009     2009

Adjusted operating income                            $ 306.0  $ 161.0  $ 341.2

Less: Cash interest expense — net                  (75.2)   (39.4)   (82.9)

Cash taxes                                           (17.8)   (32.5)   (56.8)

Maintenance capital expenditures                     (30.0)   (13.9)   (35.5)

Distributions to noncontrolling interest partners    (10.5)   (0.8)    (7.1)

Distributions from (contributions to) investments in
nonconsolidated affiliates                           5.2      1.4      4.2

Free cash flow                                       $ 177.7  $ 75.8   $ 163.1








Reconciliation of Cash and Cash Equivalents to Free Cash

($ in millions)                                Sept 30, 2010

Cash and cash equivalents                      $ 855.6

Client Cash                                    $ (350.2)

Deferred revenue — event related             $ (283.0)

Accrued artist fees                            $ (39.0)

Collections on behalf of others                $ (39.9)

Prepaids related to artist settlements/events  $ 281.5

Free cash                                      $ 425.0







SOURCE Live Nation Entertainment