Live Nation Entertainment Reports Fourth Quarter and Full Year 2010 Financial Results

LOS ANGELES, Feb. 28, 2011 /PRNewswire/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three months and year ended December 31, 2010 today.  

(Logo:  https://photos.prnewswire.com/prnh/20100603/LA14899LOGO)

"During the past year, we completed the merger and integration of the world's leading live entertainment, ticketing and artist management businesses," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment.  "We have entered 2011 with the strategic benefit of our combined operations focused on executing our plan to maximize ticket sales and improve our operating performance.   Our investment priorities center on further building on the value proposition of Ticketmaster.com, one of the world's top five eCommerce sites.  We are focused on increasing online ticketing conversion, growing our online advertising business and building out our fan database and CRM resources.  While the macro-environment remains challenging given pressure on the consumer, we are encouraged with overall year-to-date ticket sales trends. In addition, the pipeline of artists planning to tour this year is strong and we are taking steps to better price and promote our shows, while carefully managing our costs." 

The company will host a teleconference today, February 28, 2011 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 40285197.  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 March 7, 2011.

Live Nation Entertainment 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 December 31 for each of 2010 and 2009.


COMBINED METRICS

(Unaudited)

                                       Variance                        Variance

Key Drivers      Q4 2010    Q4 2009    (Qtr.)    2010       2009       (YTD)

CONCERTS

Total Attendance
(rounded, est.)  11,497,000 12,439,000 (7.6%)    47,262,000 52,148,000 (9.4%)

Total NA Amps
Attendance
(rounded, est.)  384,000    412,000    (6.8%)    9,430,000  10,056,000 (6.2%)

Total Intl
Festival
Attendance
(rounded, est.)  36,000     36,000     -         1,286,000  1,130,000  13.8%

Ancillary Net
Revenue per
Attendee - NA
Amps             $ *        $ *        *         $ 17.57    $ 17.96    (2.2%)

Ancillary Net
Revenue per
Attendee - Intl
Festivals        $ *        $ *        *         $ 15.95    $ 14.81    7.7%

SPONSORSHIP/ONLINE

Online
Advertising
Revenue (in
millions)        $ 13.8     $ 12.8     7.8%      $ 40.5     $ 36.4     11.3%

Average Revenue
per Sponsor
(rounded, whole
$)               $ 40,000   $ 34,000   17.6%     $ 204,000  $ 188,000  8.5%



*not meaningful due to low activity during the period






TICKETING

(Unaudited; tickets in
thousands)

                            Q4 2010 Q4 2009           FY 2010 FY 2009

Primary Ticketing Volume by Ticket  Ticket            Ticket  Ticket
Category
                            Volume  Volume  Variance  Volume  Volume  Variance

                            Totals  Totals  (Qtr.)    Totals  Totals  (YTD)

Concerts                    17,106  17,749  (3.6%)    63,428  70,619  (10.2%)

Sports                      5,338   5,088   4.9%      22,094  22,378  (1.3%)

Arts & Theater              5,948   6,248   (4.8%)    18,559  21,023  (11.7%)

Family                      4,177   3,921   6.5%      11,409  11,378  0.3%

Other (1)                   1,314   1,369   (4.0%)    4,408   4,362   1.1%

Total                       33,883  34,375  (1.4%)    119,898 129,760 (7.6%)



(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 December 31 for each of 2010 and 2009. As reported 2009 includes only Live Nation operations as reported in 2009.


FINANCIAL HIGHLIGHTS – 4th QUARTER and FULL YEAR

(Unaudited; $ in millions)

             COMBINED                 COMBINED                 AS REPORTED 2009

                                      FY      FY                       FY

             Q4 2010 Q4 2009 Growth   2010    2009    Growth   Q4 2009 2009



Revenue

                                      $       $                        $
Concerts     $ 790.3 $ 752.7 5.0%     3,438.4 3,704.3 (7.2%)   $ 752.7 3,704.3

Ticketing    305.2   332.2   (8.1%)   1,039.9 1,188.6 (12.5%)  9.7     61.6

Artist
Nation       93.0    120.5   (22.8%)  362.2   452.8   (20.0%)  57.8    251.5

eCommerce    25.1    28.4    (11.6%)  87.9    89.6    (1.9%)   5.2     16.2

Sponsorship  32.1    29.1    10.3%    161.7   162.4   (0.4%)   28.7    161.0

Other &
Eliminations (7.9)   0.2     **       (26.4)  (13.6)  **       0.2     (13.6)

             $       $                $       $                        $
             1,237.8 1,263.1 (2.0%)   5,063.7 5,584.1 (9.3%)   $ 854.3 4,181.0



Adjusted
Operating
Income
(Loss)

             $
Concerts     (28.3)  $ (1.2) **       $ 15.4  $ 99.8  (84.1%)  $ (1.2) $ 99.8

Ticketing    56.3    57.8    (2.6%)   231.3   215.4   7.4%     (1.1)   9.5

Artist
Nation       14.0    22.2    (36.9%)  46.5    64.1    (27.5%)  4.7     12.9

eCommerce    11.8    13.5    (12.6%)  36.2    38.7    (6.5%)   (0.5)   (4.3)

Sponsorship  20.0    15.6    28.2%    108.1   97.0    11.4%    15.4    95.9

Other &
Eliminations 0.1     0.1     -        (0.3)   1.1     **       -       0.9

Corporate    (17.1)  (20.8)  17.8%    (74.4)  (87.7)  15.2%    (13.8)  (50.2)

             $ 56.8  $ 87.2  (34.9%)  $ 362.8 $ 428.4 (15.3%)  $ 3.5   $ 164.5



Operating
Income
(Loss)

             $       $                $       $                $
Concerts     (90.1)  (49.4)  (82.4%)  (130.5) (44.7)  **       (49.4)  $ (44.7)

Ticketing    4.2     35.8    **       82.6    122.5   (32.6%)  (3.7)   (1.1)

Artist
Nation       0.3     3.5     **       (5.2)   1.2     **       1.6     2.6

eCommerce    9.7     10.8    (10.2%)  28.4    29.4    (3.4%)   (1.9)   (9.7)

Sponsorship  19.9    15.5    28.4%    107.4   96.7    11.1%    15.2    95.6

Other &
Eliminations (1.0)   0.1     **       0.3     0.8     (62.5%)  -       0.6

Corporate    (22.6)  (25.5)  11.4%    (103.8) (102.7) (1.1%)   (16.7)  (59.7)

             $                        $                        $
             (79.6)  $ (9.2) **       (20.8)  $ 103.2 **       (54.9)  $ (16.4)



Acquisition
Expenses     $ 6.5   $ 20.5           $ 42.9  $ 63.5           $ 9.5   $ 36.0

             $       $                $                        $
             (86.1)  (29.7)           (63.7)  $ 39.7           (64.4)  $ (52.4)



** percentages are not meaningful





Free cash as of December 31, 2010 was $369.2 million.  Free cash flow was ($12.9) million for the fourth quarter of 2010 as compared to $22.7 million on a combined basis for the same period in 2009, and $164.8 million for the year ended December 31, 2010 as compared to $185.8 million on a combined basis for the same period of last year.

About Live Nation Entertainment:

Live Nation Entertainment is the world's leading live entertainment and eCommerce company, comprised of four market leaders: Ticketmaster.com, Live Nation Concerts, Front Line Management Group and Live Nation Network. Ticketmaster.com is the global event ticketing leader and one of the world's top five eCommerce sites, with over 26 million monthly unique visitors.  Live Nation Concerts produces over 20,000 shows annually for more than 2,000 artists globally.  Front Line is the world's top artist management company, representing over 250 artists.  These businesses power Live Nation Network, the leading provider of entertainment marketing solutions, enabling nearly 800 advertisers to tap into the 200 million consumers Live Nation delivers annually through its live event and digital platforms. For additional information, visit www.livenation.com/investors.


LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS



                                 Year Ended December 31,



                                 2010        2009        2008

                                 (in thousands except share and per share data)

Revenue                          $ 5,063,748 $ 4,181,021 $ 4,085,306

Operating expenses:

Direct operating expenses        3,658,310   3,357,245   3,299,444

Selling, general and
administrative expenses          1,014,491   617,709     618,577

Depreciation and amortization    321,666     158,118     140,039

Goodwill impairment              —         9,085       269,902

Loss (gain) on sale of operating
assets                           374         (2,983)     1,131

Corporate expenses               110,252     58,160      53,506

Acquisition transaction expenses 22,355      36,043      —



Operating loss                   (63,700)    (52,356)    (297,293)



Interest expense                 116,527     66,365      70,104

Loss on extinguishment of debt   21,315      —         —

Interest income                  (3,771)     (2,193)     (8,575)

Equity in earnings of
nonconsolidated affiliates       (4,928)     (1,851)     (842)

Other expense (income)—net     (4,189)     1           (245)



Loss from continuing operations
before income taxes              (188,654)   (114,678)   (357,735)

Income tax expense (benefit):

Current                          40,175      19,584      (28,355)

Deferred                         (25,021)    (8,251)     4,098



Loss from continuing operations  (203,808)   (126,011)   (333,478)

Income (loss) from discontinued
operations, net of tax           (4,228)     76,277      95,653



Net loss                         (208,036)   (49,734)    (237,825)

Net income attributable to
noncontrolling interests         20,354      10,445      1,587

Net loss attributable to Live
Nation Entertainment, Inc        $ (228,390) $ (60,179)  $ (239,412)



Basic and diluted net loss per
common share attributable to
common stockholders:

Loss from continuing operations
attributable to Live Nation
Entertainment, Inc               $ (1.36)    $ (1.65)    $ (4.39)

Income (loss) from discontinued
operations attributable to Live
Nation Entertainment, Inc        (0.03)      0.92        1.25



Net loss attributable to Live
Nation Entertainment, Inc        $ (1.39)    $ (0.73)    $ (3.14)





Weighted average common shares
outstanding:



Basic                            164,410,167 82,652,366  76,228,275

Diluted                          164,410,167 82,652,366  76,228,275








LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS



                                               December 31,

                                               2010        2009

                                               (in thousands except share data)

ASSETS

Current assets

Cash and cash equivalents                      $ 892,758   $ 236,955

Accounts receivable, less allowance of $10,898
in 2010 and $8,230 in 2009                     329,947     176,179

Prepaid expenses                               348,309     277,599

Other current assets                           32,483      27,133

Total current assets                           1,603,497   717,866

Property, plant and equipment

Land, buildings and improvements               850,124     875,958

Computer equipment and capitalized software    218,294     131,875

Furniture and other equipment                  168,508     156,756

Construction in progress                       24,528      17,398



                                               1,261,454   1,181,987

Less accumulated depreciation                  524,390     432,003



                                               737,064     749,984

Intangible assets

Definite-lived intangible assets—net         997,268     442,641

Indefinite-lived intangible assets             375,214     28,248

Goodwill                                       1,226,416   204,672

Investments in nonconsolidated affiliates      30,077      2,077

Other long-term assets                         226,024     196,271



Total assets                                   $ 5,195,560 $ 2,341,759



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable, client accounts              $ 462,301   $ —

Accounts payable                               76,876      50,844

Accrued expenses                               498,864     357,138

Deferred revenue                               335,539     284,536

Current portion of long-term debt              54,150      41,032

Other current liabilities                      46,491      18,684



Total current liabilities                      1,474,221   752,234



Long-term debt, net                            1,677,714   699,037

Long-term deferred income taxes                219,143     30,480

Other long-term liabilities                    215,273     94,567

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



Redeemable noncontrolling interests            107,541     —



Stockholders' equity

Preferred stock—Series A Junior
Participating, $.01 par value; 20,000,000
shares authorized; no shares issued and
outstanding                                    —         —

Preferred stock, $.01 par value; 30,000,000
shares authorized; no shares issued and
outstanding                                    —         —

Common stock, $.01 par value; 450,000,000
shares authorized; 175,418,857 and 86,708,627
shares issued and outstanding in 2010 and
2009, respectively                             1,724       860

Additional paid-in capital                     2,053,233   1,090,572

Accumulated deficit                            (662,175)   (433,785 )

Cost of shares held in treasury (1,271,519 and
2,260,260 shares in 2010 and 2009,
respectively)                                  (6,122)     (9,529 )

Accumulated other comprehensive income (loss)  (22,244)    4,199



Total Live Nation Entertainment, Inc.
stockholders' equity                           1,364,416   652,317

Noncontrolling interests                       137,252     73,124

Total stockholders' equity                     1,501,668   725,441

Total liabilities and stockholders' equity     $ 5,195,560 $ 2,341,759








LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS



                                             Year Ended December 31,

                                             2010        2009       2008

                                             (in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss                                     $ (208,036) $ (49,734) $ (237,825)

Reconciling items:

Depreciation                                 135,573     98,108     86,059

Amortization of intangibles                  186,093     64,586     62,163

Goodwill impairment                          —         9,085      282,939

Impairment of operational assets             13,373      —        16,035

Deferred income tax expense (benefit)        (25,021)    (8,698)    3,601

Amortization of debt issuance costs          4,682       4,224      3,616

Amortization of debt discount/premium, net   6,755       8,811      7,995

Provision for uncollectible accounts
receivable and advances                      6,606       7,044      4,686

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

Non-cash and stock-based compensation
expense                                      52,395      16,675     34,556

Unrealized changes in fair value contingent
consideration                                3,171       —        —

Loss (gain) on sale of operating assets      4,602       (64,237)   (165,448)

Equity in earnings of nonconsolidated
affiliates                                   (4,928)     (3,117)    (720)

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

Decrease (increase) in accounts receivable   (4,581)     27,608     (1,769)

Increase in prepaid expenses                 (22,570)    (57,918)   (25,603)

Increase in other assets                     (41,686)    (2,945)    (108,163)

Increase (decrease) in accounts payable,
accrued expenses and other liabilities       386         (4,586)    (53,739)

Increase in deferred revenue                 43,432      12,369     28,984

Net cash provided by (used in) operating
activities                                   158,518     57,275     (62,633)



CASH FLOWS FROM INVESTING ACTIVITIES

Collections and advances of notes receivable 475         140        334

Distributions from nonconsolidated
affiliates                                   5,863       5,134      7,269

Investments made in nonconsolidated
affiliates                                   (884)       (821)      (250)

Purchases of property, plant and equipment   (75,578)    (64,267)   (186,217)

Proceeds from disposal of operating assets,
net of cash divested                         35,756      174,321    198,665

Cash paid for acquisitions, net of cash
acquired                                     488,957     (9,707)    (19,657)

Purchases of intangible assets               (1,790)     (27,863)   (65,460)

Decrease (increase) in other—net           188         544        (1,577)

Net cash provided by (used in) investing
activities                                   452,987     77,481     (66,893)



CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt, net of debt
issuance costs                               1,352,856   602,741    420,327

Payments on long-term debt                   (1,233,020) (705,795)  (369,610)

Redemption of preferred stock                (40,000)    —        —

Contributions from noncontrolling interest
partners                                     429         13         8,847

Distributions to and purchases/sales from
noncontrolling interest partners             (21,625)    (7,006)    (3,042)

Proceeds from exercise of stock options      8,640       —        636

Issuance of treasury stock                   —         1,553      5,454

Equity issuance costs                        (357)       (2,667)    —

Payments for purchases of common stock       (1,567)     (5,803)    (28,628)

Payments for deferred and contingent
consideration .                              (16,270)    (7,392)    —



Net cash provided by (used in) financing
activities                                   49,086      (124,356)  33,984

Effect of exchange rate changes on cash and
cash equivalents                             4,788       26,895     (43,789)



Net increase (decrease) in cash and cash
equivalents                                  655,803     37,295     (139,331)

Cash and cash equivalents at beginning of
period                                       236,955     199,660    338,991

Cash and cash equivalents at end of period   $ 892,758   $ 236,955  $ 199,660

















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 plans to maximize ticket sales and improve operating performance; the company's current investment priorities; anticipated increases to online ticketing conversion; anticipated growth in the company's online advertising business and related resources; overall year-to-date ticket sales trends; the company's anticipated artist pipeline for 2011; and better pricing and promotion of events and cost management. 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 impairments), 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 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)



COMBINED RESULTS

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




                                     Loss
              Adjusted  Non-cash and (gain) on Depreciation
              operating stock-based  sale of   and                      Operating
($ in         income    compensation operating              Acquisition income
millions)     (loss)    expense      assets    amortization expenses    (loss)



              Three months ended December 31, 2010



Concerts      $ (28.3)  $ 5.4        $ (2.8)   $ 59.2       $ 0.3       $ (90.4)

Ticketing     56.3      1.3          -         50.8         0.9         3.3

Artist
Nation        14.0      3.0          -         10.7         0.4         (0.1)

eCommerce     11.8      (0.1)        -         2.2          (0.2)       9.9

Sponsorship   20.0      -            -         0.1          0.1         19.8

Other &
Eliminations  0.1       -            -         1.1          -           (1.0)

Corporate     (17.1)    5.1          -         0.4          5.0         (27.6)

Total Live
Nation        $ 56.8    $ 14.7       $ (2.8)   $ 124.5      $ 6.5       $ (86.1)



              Three months ended December 31, 2009



Concerts      $ (1.2)   $ 4.9        $ (1.9)   $ 45.2       $ 0.3       $ (49.7)

Ticketing     57.8      (1.0)        -         23.0         -           35.8

Artist
Nation        22.2      3.6          -         15.1         -           3.5

eCommerce     13.5      0.1          -         2.6          -           10.8

Sponsorship   15.6      -            -         0.1          -           15.5

Other &
Eliminations  0.1       -            (0.1)     0.1          0.1         -

Corporate     (20.8)    3.4          -         1.3          20.1        (45.6)

Total Live
Nation        $ 87.2    $ 11.0       $ (2.0)   $ 87.4       $ 20.5      $ (29.7)



              Year ended December 31, 2010

Concerts      $ 15.4    $ 11.6       $ (4.8)   $ 139.1      $ (2.0)     $ (128.5)

Ticketing     231.3     12.0         5.2       131.5        8.3         74.3

Artist
Nation        46.5      10.2         -         41.5         7.5         (12.7)

eCommerce     36.2      0.3          -         7.5          0.6         27.8

Sponsorship   108.1     0.4          -         0.3          0.2         107.2

Other &
Eliminations  (0.3)     -            -         (0.6)        -           0.3

Corporate     (74.4)    27.1         -         2.3          28.3        (132.1)

Total Live
Nation        $ 362.8   $ 61.6       $ 0.4     $ 321.6      $ 42.9      $ (63.7)



              Year ended December 31, 2009

Concerts      $ 99.8    $ 8.7        $ (3.0)   $ 138.8      $ 1.1       $ (45.8)

Ticketing     215.4     3.7          -         89.2         -           122.5

Artist
Nation        64.1      14.7         -         48.2         -           1.2

eCommerce     38.7      0.4          -         8.9          -           29.4

Sponsorship   97.0      -            -         0.3          -           96.7

Other &
Eliminations  1.1       -            -         0.3          0.1         0.7

Corporate     (87.7)    12.6         -         2.4          62.3        (165.0)

Total Live
Nation        $ 428.4   $ 40.1       $ (3.0)   $ 288.1      $ 63.5      $ 39.7










AS REPORTED RESULTS

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



                      Three months ended December 31, 2009



Concerts              $ (1.2) $ 4.9  $ (1.9) $ 45.2  $ 0.3  $ (49.7)

Ticketing             (1.1)   0.1    -       2.5     -      (3.7)

Artist Nation         4.7     -      -       3.1     -      1.6

eCommerce             (0.5)   -      -       1.4     -      (1.9)

Sponsorship           15.4    -      -       0.2     -      15.2

Other & Eliminations  -       -      (0.1)   0.1     -      -

Corporate             (13.8)  1.7    -       1.2     9.2    (25.9)

Total Live Nation     $ 3.5   $ 6.7  $ (2.0) $ 53.7  $ 9.5  $ (64.4)



                      Year ended December 31, 2009



Concerts              $ 99.8  $ 8.7  $ (3.0) $ 138.8 $ 1.1  $ (45.8)

Ticketing             9.5     0.3    -       10.3    -      (1.1)

Artist Nation         12.9    0.3    -       10.0    -      2.6

eCommerce             (4.3)   0.2    -       5.2     -      (9.7)

Sponsorship           95.9    -      -       0.3     -      95.6

Other & Eliminations  0.9     -      -       0.3     -      0.6

Corporate             (50.2)  7.2    -       2.3     34.9   (94.6)

Total Live Nation     $ 164.5 $ 16.7 $ (3.0) $ 167.2 $ 36.0 $ (52.4)








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

in                                                   Reported Combined Reported

($ in millions)                                      Q4 2010  Q4 2009  Q4 2009

Adjusted operating income                            $ 56.8   $ 87.2   $ 3.5

Less: Cash interest expense—net                    (14.7)   (24.9)   (11.8)

Cash taxes                                           (32.8)   (24.5)   (2.2)

Maintenance capital expenditures                     (17.5)   (9.2)    (3.0)

Distributions to noncontrolling interest partners    (4.5)    (9.8)    (6.2)

Distributions from (contributions to) investments in
nonconsolidated affiliates                           (0.2)    3.9      2.9

Free cash flow                                       $ (12.9) $ 22.7   $ (16.8)

Revenue generating capital expenditures              (7.8)    (12.9)   (8.8)

Net                                                  $ (20.7) $ 9.8    $ (25.6)



                                                     Reported Combined Reported

($ in millions)                                      FY 2010  FY 2009  FY 2009

Adjusted operating income                            $ 362.8  $ 428.4  $ 164.5

Less: Cash interest expense—net                    (89.9)   (107.8)  (51.2)

Cash taxes                                           (50.6)   (81.3)   (34.8)

Maintenance capital expenditures                     (47.5)   (44.7)   (16.9)

Distributions to noncontrolling interest partners    (15.0)   (16.9)   (7.0)

Distributions from (contributions to) investments in
nonconsolidated affiliates                           5.0      8.1      4.3

Free cash flow                                       $ 164.8  $ 185.8  $ 58.9

Revenue generating capital expenditures              (26.4)   (52.8)   (34.3)

Net                                                  $ 138.4  $ 133.0  $ 24.6








Reconciliation of Cash and Cash Equivalents to Free Cash

                                               December 31,

($ in millions)                                2010

Cash and cash equivalents                      $ 892.8

Client cash                                    (384.5)

Deferred revenue—event related               (309.0)

Accrued artist fees                            (7.2)

Collections on behalf of others                (44.4)

Prepaids related to artist settlements/events  221.5

Free cash                                      $ 369.2







SOURCE Live Nation Entertainment