Live Nation Entertainment Reports Second Quarter 2010 Financial Results

-Results for the second quarter of 2010 in line with 2010 guidance-

-Cost reductions and integration efforts on track to achieve $40 million in synergies for 2010-

-Sponsorship revenue up slightly, driven by increased revenue per sponsor of 9% for year-to-date-

LOS ANGELES, Aug. 5 /PRNewswire-FirstCall/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three months ended June 30, 2010 today.  Live Nation completed its merger with Ticketmaster in January 2010; consequently, second quarter 2010 reported results include the legacy Ticketmaster operations for the full quarter.

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"Our second quarter results were in line with our plan and financial guidance for the full year," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment.  "Our performance to date reflects the impact of the uncertain economy on consumers, offset in part by our efforts to aggressively promote, price and expand access to concerts across our global platform.  We have now largely completed the integration of Live Nation and Ticketmaster and we are generating considerable progress in driving efficiencies across our combined business.  As we head into our biggest quarter, we are executing a range of revenue enhancement programs, while taking additional steps to reduce our operating expenses."

"Key artist tours anticipated during the summer and balance of the year for our artist management business include the Eagles, Jimmy Buffett, Kid Rock, Kings of Leon and the Scorpions, just to name a few, and it is their success that will help fuel our company's growth," said Irving Azoff, Executive Chairman of Live Nation Entertainment. "As we look to the future, we are more confident than ever in our belief that Live Nation Entertainment has a unique business model to service artists and fans."

Live Nation Combined Metrics

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


COMBINED METRICS

(Unaudited; $ in
millions except
as noted)

                                                 6 months   6 months
Key Drivers      Q2 2010    Q2 2009    Variance  2010       2009       Variance

CONCERTS

Talent Costs and
Other Event
Direct Operating
Expenses         $ 706.1    $ 773.5    (8.7%)    $ 1,033.9  $ 1,102.3  (6.2%)

Number of
Concerts (est.)  5,553      5,707      (2.7%)    10,164     10,158     0.1%

Total Attendance
(est.)           12,373,000 13,123,000 (5.7%)    19,339,000 20,177,000 (4.2%)

Total Revenue
per Attendee
(whole $)        $ 69.47    $ 70.47    (1.4%)    $ 65.55    $ 66.31    (1.1%)

eCOMMERCE

# of Tickets
Sold on TM.com &
LN.com (rounded,
est.)            23,898,000 26,476,000 (9.7%)    41,920,000 47,842,000 (12.4%)

# of Average
Monthly Unique
Visitors
(rounded, est.)  27,700,000 25,200,000 9.9%      26,900,000 25,300,000 6.3%

Online
Advertising &
Upsell Revenue   $ 9.3      $ 12.8     (27.3%)   $ 20.8     $ 21.2     (1.9%)

SPONSORSHIP

Number of
Sponsors - as of
date (est.)      556        597        (6.9%)    556        597        (6.9%)

Sponsorship
Revenue
Recognized       $ 38.8     $ 39.9     (2.8%)    $ 60.1     $ 59.4     1.2%

Average Revenue
per Sponsor
(rounded, whole
$)               $ 70,000   $ 67,000   4.5%      $ 108,000  $ 99,000   9.1%

TICKETING

Royalty & Other
Direct Ticketing
Expenses         $ 129.6    $ 161.4    (19.7%)   $ 232.7    $ 299.0    (22.2%)

# of Tickets
Sold (rounded,
est.)            29,611,000 33,880,000 (12.6%)   53,615,000 61,423,000 (12.7%)










(Unaudited; $ in
millions, tickets in
thousands)

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

                         Second Quarter – 2010     Six Months – 2010

Concerts                 $ 1,081  16,006 54%         $ 1,906  28,248 53%

Sports                   311      5,882  20%         539      10,687 20%

Arts & Theater           284      4,444  15%         529      8,048  15%

Family                   82       2,056  7%          185      4,840  9%

Other (1)                51       1,223  4%          66       1,792  3%

Total - 2010             $ 1,809  29,611 100%        $ 3,225  53,615 100%

                         Second Quarter – 2009     Six Months – 2009

Concerts                 $ 1,234  19,236 57%         $ 2,298  34,058 55%

Sports                   311      6,038  18%         524      11,144 18%

Arts & Theater           347      5,409  16%         635      9,582  16%

Family                   79       2,059  6%          172      4,767  8%

Other (1)                57       1,138  3%          80       1,872  3%

Total - 2009             $ 2,028  33,880 100%        $ 3,709  61,423 100%



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





Our results of operations include the results of the legacy Ticketmaster operations only in 2010.  2009 only includes the historical Live Nation results below.


REPORTED FINANCIAL HIGHLIGHTS - 2nd QUARTER

(Unaudited)

                                 Q2 2010   Q2 2009   Growth

                                 ($ in millions)

Revenue

Concerts                         $ 859.5   $ 924.8   (7.1%)

Artist Nation                    88.8      61.7      43.9%

Ticketing                        264.1     17.1      **

Sponsorship                      38.8      39.6      (2.0%)

eCommerce                        18.9      3.7       **

Other & Eliminations             (3.5)     0.3       **

                                 $ 1,266.6 $ 1,047.2 21.0%

                                                              Margins

Adjusted Operating Income (Loss)                              Q2 2010 Q2 2009

Concerts                         $ 24.3    $ 25.3    (4.0%)   2.8%    2.7%

Artist Nation                    9.9       2.4       **       11.1%   3.9%

Ticketing                        63.8      2.3       **       24.2%   13.5%

Sponsorship                      26.4      27.1      (2.6%)   68.0%   68.4%

eCommerce                        3.2       (1.6)     **       16.9%   **

Other & Eliminations             (0.6)     0.5       **

Corporate                        (14.7)    (11.0)    (33.6%)

                                 $ 112.3   $ 45.0    **       8.9%    4.3%



Operating Income (Loss)

Concerts                         $ (3.9)   $ (4.5)   13.3%    (0.5%)  (0.5%)

Artist Nation                    (1.4)     0.4       **       (1.6%)  0.6%

Ticketing                        34.8      (0.2)     **       13.2%   (1.2%)

Sponsorship                      26.2      27.1      (3.3%)   67.5%   68.4%

eCommerce                        2.6       (2.9)     **       13.8%   **

Other & Eliminations             0.4       0.4       —

Corporate                        (19.1)    (13.5)    (41.5%)

                                 $ 39.6    $ 6.8     **       3.1%    0.6%

Acquisition Expenses:

Concerts                         $ 0.6     $ —

Artist Nation                    5.7       —

Ticketing                        2.8       —

Sponsorship                      (0.2)     —

eCommerce                        0.4       —

Corporate                        3.7       14.9

                                 $ 26.6    $ (8.1)            2.1%    (0.8%)

** percentages are not meaningful





Our results of operations include the results of the legacy Ticketmaster operations only in 2010, beginning January 25.  2009 only includes the historical Live Nation results below.


REPORTED FINANCIAL HIGHLIGHTS - SIX MONTHS ENDED JUNE 30

(Unaudited)

              6 months 2010 6 months 2009 Growth

              $ in millions

Revenue

Concerts      $ 1,267.6     $ 1,338.0     (5.3%)

Artist Nation 158.3         103.4         53.1%

Ticketing     473.0         26.0          **

Sponsorship   60.1          58.8          2.2%

eCommerce     37.0          5.5           **

Other &
Eliminations  (6.4)         0.4           **

              $ 1,989.6     $ 1,532.1     29.9%

                                                   Margins

Adjusted
Operating
Income (Loss)                                      6 months 2010 6 months 2009

Concerts      $ (18.3)      $ (2.1)       **       (1.4%)        (0.2%)

Artist Nation 10.7          1.5           **       6.8%          1.5%

Ticketing     109.6         (0.9)         **       23.2%         (3.5%)

Sponsorship   35.0          32.9          6.4%     58.2%         56.0%

eCommerce     10.9          (4.4)         **       29.5%         **

Other &
Eliminations  (0.3)         0.6           **

Corporate     (33.8)        (22.1)        52.9%

              $ 113.8       $ 5.5         **       5.7%          0.4%

Operating
Income (Loss)

Concerts      $ (76.8)      $ (66.8)      (15.0%)  (6.1%)        (5.0%)

Artist Nation (9.9)         (3.8)         **       (6.3%)        (3.7%)

Ticketing     50.7          (6.2)         **       10.7%         (23.8%)

Sponsorship   34.6          32.8          5.5%     57.6%         55.8%

eCommerce     7.6           (7.4)         **       20.5%         **

Other &
Eliminations  0.6           0.5           20.0%

Corporate     (52.1)        (26.8)        (94.4%)

              $ (45.3)      $ (77.7)      41.7%    (2.3%)        (5.1%)

Acquisition
Expenses:

Concerts      $ 0.6         $ 0.1

Artist Nation 5.8           —

Ticketing     6.5           —

Sponsorship   0.1           —

eCommerce     0.7           —

Corporate     17.9          18.6

              $ (76.9)      $ (96.4)               (3.9%)        (6.3%)

** percentages are not meaningful





In order to give comparable information, the results of operations below include the results of the legacy Ticketmaster operations for each of 2010 and 2009.


COMBINED FINANCIAL HIGHLIGHTS – 2nd QUARTER

(Unaudited)

                                 Q2 2010   Q2 2009   Growth

                                 ($ in millions)

Revenue

Concerts                         $ 859.5   $ 924.8   (7.1%)

Artist Nation                    88.8      107.7     (17.5%)

Ticketing                        264.1     308.3     (14.3%)

Sponsorship                      38.8      39.9      (2.8%)

eCommerce                        18.9      21.1      (10.4%)

Other & Eliminations             (3.5)     0.4       **

                                 $ 1,266.6 $ 1,402.2 (9.7%)

                                                              Margins

Adjusted Operating Income (Loss)                              Q2 2010 Q2 2009

Concerts                         $ 24.3    $ 25.3    (4.0%)   2.8%    2.7%

Artist Nation                    9.9       14.2      (30.3%)  11.1%   13.2%

Ticketing                        63.8      54.8      16.4%    24.2%   17.8%

Sponsorship                      26.4      27.4      (3.6%)   68.0%   68.7%

eCommerce                        3.2       7.8       (59.0%)  16.9%   37.0%

Other & Eliminations             (0.6)     0.5       **

Corporate                        (14.7)    (20.2)    27.2%

                                 $ 112.3   $ 109.8   2.3%     8.9%    7.8%



Operating Income (Loss)

Concerts                         $ (3.9)   $ (4.5)   13.3%    (0.5%)  (0.5%)

Artist Nation                    (1.4)     (0.5)     **       (1.6%)  (0.5%)

Ticketing                        34.8      25.7      35.4%    13.2%   8.3%

Sponsorship                      26.2      27.3      (4.0%)   67.5%   68.4%

eCommerce                        2.6       5.6       (53.6%)  13.8%   26.5%

Other & Eliminations             0.4       0.4       —

Corporate                        (19.1)    (23.7)    19.4%

                                 $ 39.6    $ 30.3    30.7%    3.1%    2.2%

Acquisition Expenses:

Concerts                         $ 0.6     $ —

Artist Nation                    5.7       —

Ticketing                        2.8       —

Sponsorship                      (0.2)     —

eCommerce                        0.4       —

Corporate                        3.7       23.4

                                 $ 26.6    $ 6.9              2.1%    0.5%

** percentages are not meaningful





The highlights of our combined financial information for the three months ending June 30, 2010 compared to the same period of 2009 are as follows:

Revenue change – Total decrease of $135.6 million, primarily driven by:  

    --  ($65.3) million – Decrease in Concerts driven by reduced attendance
        and lower average revenue per ticket.
    --  ($44.2) million – Decrease in Ticketing driven by lower ticket sales,
        primarily in the concerts category.
    --  ($18.9) million – Decline in Artist Nation due to reduced activity
        based on the timing of artist tours in 2010 as compared to last year.


Adjusted Operating Income (Loss) change – Total increase of $2.5 million, primarily driven by:  

    --  $9.0 million – Increase in Ticketing relating to the synergies
        achieved in the Ticketmaster merger and benefits from reduced expenses
        due to purchase accounting valuations, partially offset by lower income
        from reduced ticket sales.
    --  $5.5 million – Reduction in Corporate costs driven by the achievement
        of synergies due to the merger.
    --  ($9.9) million – Decrease in Concerts, Artist Nation and eCommerce
        driven by lower ticket sales and the timing of artist tours.


Operating Income (Loss) change – Total increase of $19.7 million, primarily driven by:

    --  $2.5 million – Overall increase in Adjusted Operating Income noted
        above.
    --  $10.4 million – Decrease in acquisition expenses, primarily in
        Corporate. These costs are for severance expenses and transaction costs
        related to the Ticketmaster merger.
    --  $7.4 million – Decline in depreciation and amortization expense due
        primarily to an impairment recorded in 2009.


In order to give comparable information, the results of operations below include the results of the legacy Ticketmaster operations from the date of the merger (January 25) through June 30 for each of 2010 and 2009.


COMBINED FINANCIAL HIGHLIGHTS – SIX MONTHS ENDED JUNE 30
(Unaudited)

                      6 months  6 months

                      2010      2009      Growth

                      ($ in millions)

Revenue

Concerts              $ 1,267.6 $ 1,338.0 (5.3%)

Artist Nation         158.3     180.7     (12.4%)

Ticketing             473.0     563.6     (16.1%)

Sponsorship           60.1      59.4      1.2%

eCommerce             37.0      35.8      3.4%

Other & Eliminations  (6.4)     0.4       **

                      $ 1,989.6 $ 2,177.9 (8.6%)

                                                   Margins

Adjusted Operating
Income (Loss)                                      6 months 2010 6 months 2009

Concerts              $ (18.3)  $ (2.1)   **       (1.4%)        (0.2%)

Artist Nation         10.7      16.4      (34.8%)  6.8%          9.1%

Ticketing             109.6     101.6     7.9%     23.2%         18.0%

Sponsorship           35.0      33.4      4.8%     58.2%         56.2%

eCommerce             10.9      12.2      (10.7%)  29.5%         34.1%

Other & Eliminations  (0.3)     0.6       **

Corporate             (33.8)    (43.1)    21.6%

                      $ 113.8   $ 119.0   (4.4%)   5.7%          5.5%



Operating Income
(Loss)

Concerts              $ (76.8)  $ (66.8)  (15.0%)  (6.1%)        (5.0%)

Artist Nation         (9.9)     (11.0)    10.0%    (6.3%)        (6.1%)

Ticketing             50.7      54.5      (7.0%)   10.7%         9.7%

Sponsorship           34.6      33.3      3.9%     57.6%         56.1%

eCommerce             7.6       7.8       (2.6%)   20.5%         21.8%

Other & Eliminations  0.6       0.5       20.0%

Corporate             (52.1)    (50.1)    (4.0%)

                      $ (45.3)  $ (31.8)  (42.1%)  (2.3%)        (1.5%)

Acquisition Expenses:

Concerts              $ 0.6     $ 0.1

Artist Nation         5.8       —

Ticketing             6.5       —

Sponsorship           0.1       —

eCommerce             0.7       —

Corporate             17.9      28.2

                      $ (76.9)  $ (60.1)           (3.9%)        (2.8%)

** percentages are not meaningful





The highlights of our combined financial information for the six months ended June 30, 2010 as compared to the same period of 2009 are as follows:

Revenue Change – Total decrease of $188.3 million, primarily driven by:

    --  ($90.6) million – Decline in Ticketing due to lower ticket sales,
        primarily in concerts.
    --  ($70.4) million – Decrease in Concerts driven by reduced attendance
        and lower average revenue per ticket.


Adjusted Operating Income (Loss) change – Total decrease of $5.2 million, primarily driven by:  

    --  ($16.2) million – Decline in Concerts primarily relating to a $13.4
        million allowance recorded in the first quarter of 2010 related to
        certain artist advances and a slight decline in show results.
    --  $8.0 million – Increase in Ticketing driven by the achievement of
        synergies from the Ticketmaster merger and benefits of reduced expenses
        from purchase accounting valuations, partially offset by lower income
        from reduced ticket sales.


Operating Income (Loss) change – Total decrease of $16.8 million, primarily driven by:

    --  ($5.2) million – Overall decrease in adjusted operating income noted
        above.
    --  ($14.0) million – Increase in non-cash compensation expense primarily
        driven by equity awards exchanged and accelerated due to the completion
        of the merger.
    --  ($4.9) million – Increased loss on sale primarily due to the $5.2
        million loss resulting from our sale of Paciolan in the first quarter of
        2010.
    --  $10.6 million – Decrease in depreciation and amortization primarily
        due to a 2009 impairment.


Other Information –

    --  As of June 30, 2010, our cash and cash equivalents were $1.0 billion and
        our current and long-term debt was $1.7 billion, with no balance
        outstanding on our revolving credit facility.
    --  In May 2010, we completed the refinancing of the company's two credit
        facilities into one credit facility, thereby reducing the operational
        and credit risk of the company.
    --  Free cash as of June 30, 2010 was $328.6 million. Free cash flow was
        $63.5 million for the second quarter of 2010 as compared to $16.4
        million for the same period in 2009, and $30.6 million for the six
        months ended June 30, 2010 as compared to ($41.1) million in the same
        period of last year.
    --  For the six months ended June 30, 2010, maintenance capital expenditures
        were $22.6 million and capital expenditures for revenue generating
        projects were $7.2 million, for a total of $29.8 million. This
        represents an increase of $5.2 million compared to last year primarily
        due to the merger with Ticketmaster.


About Live Nation Entertainment:

Live Nation Entertainment (NYSE-LYV) is the largest live entertainment company in the world, consisting of five businesses: concert promotion and venue operations, sponsorship, ticketing solutions, eCommerce and artist management.  Live Nation seeks to innovate and enhance the live entertainment experience for artists and fans: before, during and after the show.  In 2009, Live Nation sold 140 million tickets, promoted nearly 22,000 concerts, partnered with 850 sponsors and averaged 25 million unique monthly users of its eCommerce sites.  For additional information, visit www.livenation.com/investors.

Conference Call:

The company will host a teleconference today, August 5th, 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 89305432.  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 August 12, 2010.


LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)



                                Three Months Ended      Six Months Ended
                                June 30,                June 30,

                                2010        2009        2010        2009

                                (in thousands except share and per share data)

Revenue                         $ 1,266,598 $ 1,047,216 $ 1,989,551 $ 1,532,128

Operating expenses:

Direct operating expenses       897,004     838,731     1,382,157   1,211,791

Selling, general and
administrative expenses         252,372     154,606     483,643     295,508

Depreciation and amortization   62,957      35,503      122,276     77,586

Loss (gain) on sale of
operating assets                (637)       (718)       3,934       (982)

Corporate expenses              21,882      12,352      59,006      25,884

Acquisition transaction
expenses                        6,394       14,877      15,411      18,735



Operating income (loss)         26,626      (8,135)     (76,876)    (96,394)

Interest expense                29,854      15,864      56,359      33,119

Loss on extinguishment of debt  21,172      —         21,172      —

Interest income                 (769)       (576)       (1,443)     (1,566 )

Equity in earnings of
nonconsolidated affiliates      (1,708)     (633)       (2,255)     (816 )

Other expense (income) — net  (565)       (1,087)     (1,633)     607



Loss from continuing operations
before income taxes             (21,358)    (21,703)    (149,076)   (127,738)

Income tax expense (benefit):

Current                         5,682       9,177       3,840       10,876

Deferred                        5,633       (574)       (7,855)     (2,187)



Loss from continuing operations (32,673)    (30,306)    (145,061)   (136,427)

Income (loss) from discontinued
operations, net of tax          (377)       3,498       (680)       6,462



Net loss                        (33,050)    (26,808)    (145,741)   (129,965)

Net income (loss) attributable
to noncontrolling interests     1,568       390         830         (60)

Net loss attributable to Live
Nation Entertainment, Inc.      $ (34,618)  $ (27,198)  $ (146,571) $ (129,905)



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

Loss from continuing operations
attributable to Live Nation
Entertainment, Inc              $ (0.20)    $ (0.37)    $ (0.92)    $ (1.67)

Income (loss) from discontinued
operations attributable to
Live Nation Entertainment, Inc  —         0.04        (0.01)      0.08



Net loss attributable to Live
Nation Entertainment, Inc.      $ (0.20)    $ (0.33)    $ (0.93)    $ (1.59)



Weighted average common shares
outstanding:



Basic and diluted               170,007,727 83,612,409  158,219,805 81,618,066










LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS



                                                 June 30,
                                                 2010        December 31, 2009

                                                 (Unaudited) (Audited)

                                                 (in thousands)

ASSETS

Current assets

Cash and cash equivalents                        $ 999,928   $ 236,955

Accounts receivable, less allowance of $9,429 as
of June 30, 2010 and
$8,230 as of December 31, 2009                   365,034     176,179

Prepaid expenses                                 549,508     277,599

Other current assets                             62,882      27,133

Total current assets                             1,977,352   717,866

Property, plant and equipment

Land, buildings and improvements                 873,019     875,958

Computer equipment and capitalized software      176,638     131,875

Furniture and other equipment                    161,538     156,756

Construction in progress                         27,991      17,398

                                                 1,239,186   1,181,987

Less accumulated depreciation                    474,189     432,003

                                                 764,997     749,984

Intangible assets

Definite-lived intangible assets — net         967,152     442,641

Indefinite-lived intangible assets               381,983     28,248

Goodwill                                         1,164,555   204,672



Investments in nonconsolidated affiliates        29,027      2,077

Other long-term assets                           224,833     196,271



Total assets                                     $ 5,509,899 $ 2,341,759



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable, client accounts                $ 370,634   $ —

Accounts payable                                 133,953     50,844

Accrued expenses                                 436,885     357,138

Deferred revenue                                 742,518     284,536

Current portion of long-term debt                46,522      41,032

Other current liabilities                        81,809      18,684



Total current liabilities                        1,812,321   752,234



Long-term debt, net                              1,692,129   699,037

Long-term deferred income taxes                  200,805     30,480

Other long-term liabilities                      195,632     94,567

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

Commitments and contingent liabilities



Redeemable noncontrolling interests              120,207     —



Stockholders' equity

Common stock                                     1,722       860

Additional paid-in capital                       2,037,653   1,090,572

Accumulated deficit                              (580,356)   (433,785)

Cost of shares held in treasury                  (9,629)     (9,529)

Accumulated other comprehensive income (loss)    (60,878)    4,199

Total Live Nation Entertainment, Inc.
stockholders' equity                             1,388,512   652,317

Noncontrolling interests                         100,293     73,124

Total stockholders' equity                       1,488,805   725,441

Total liabilities and stockholders' equity       $ 5,509,899 $ 2,341,759








LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)



                                                        Six Months Ended
                                                        June 30,

                                                        2010        2009

                                                        (in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss                                                $ (145,741) $ (129,965)

Reconciling items:

Depreciation                                            60,696      54,539

Amortization                                            61,580      25,759

Deferred income tax benefit                             (7,855)     (1,292)

Amortization of debt issuance costs                     1,826       1,712

Amortization of debt discount/premium, net              3,524       4,298

Provision for uncollectible accounts receivable and
advances                                                15,189      1,224

Loss on extinguishment of debt — non-cash portion.    8,272       —

Non-cash compensation expense                           32,798      6,525

Unrealized changes in fair value contingent
consideration                                           4,555       —

Loss (gain) on sale of operating assets                 4,614       (986)

Equity in earnings of nonconsolidated affiliates        (2,255)     (1,483)

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

Increase in accounts receivable                         (63,659)    (42,416)

Increase in prepaid expenses                            (238,446)   (315,746)

Increase in other assets                                (47,098)    (45,023)

Increase in accounts payable, accrued expenses and
other liabilities                                       18,312      154,006

Increase in deferred revenue                            461,967     627,574



Net cash provided by operating activities               168,279     338,726



CASH FLOWS FROM INVESTING ACTIVITIES

Collection of notes receivable                          638         316

Advances to notes receivable                            —         (132)

Distributions from nonconsolidated affiliates           964         2,119

Investments made to nonconsolidated affiliates          —         (654)

Purchases of property, plant and equipment              (30,082)    (39,089)

Proceeds from disposal of operating assets, net of cash
divested                                                20,753      16,478

Cash paid for acquisitions, net of cash acquired        566,144     (5,638)

Purchases of intangible assets                          (1,363)     (7,763)

Decrease in other — net                               297         165



Net cash provided by (used in) investing activities     557,351     (34,198)



CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt, net of debt issuance
costs                                                   1,318,637   235,200

Payments on long-term debt                              (1,182,507) (283,808)

Redemption of preferred stock                           (40,000)    —

Contributions from noncontrolling interest partners     13          —

Distributions to noncontrolling interest partners       (8,198)     (301)

Proceeds from exercise of stock options                 4,254       —

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 (used in) financing activities     79,166      (60,551)

Effect of exchange rate changes on cash and cash
equivalents                                             (41,823)    26,193



Net increase in cash and cash equivalents               762,973     270,170

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



Cash and cash equivalents at end of period              $ 999,928   $ 469,830











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, including with respect to anticipated achievement of projected financial results for the full year and anticipated artist tours for the remainder of the year; the company's ability to achieve its targeted synergies and realize other anticipated benefits associated with its merger with Ticketmaster; the company's planned capital expenditures; and the expected reduction of operational and credit risks as a result of the recent refinancing of the company's credit facilities. 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 compensation expense. The company uses AOI to evaluate the performance of our operating segments. The company believes that information about AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income, 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.

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 our ability to fund our 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)

AS REPORTED RESULTS

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

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

              Three months ended June 30, 2010



Concerts      $ 24.3    $ 1.6        $ (1.2)   $ 0.6       $ 27.8       $ (4.5)

Artist
Nation        9.9       1.1          -         5.7         10.2         (7.1)

Ticketing     63.8      3.5          0.6       2.8         24.9         32.0

Sponsorship   26.4      0.1          -         (0.2)       0.1          26.4

eCommerce     3.2       0.2          -         0.4         0.4          2.2

Other &
Eliminations  (0.6)     -            -         -           (1.0)        0.4

Corporate     (14.7)    3.9          -         3.7         0.5          (22.8)

Total Live
Nation        $ 112.3   $ 10.4       $ (0.6)   $ 13.0      $ 62.9       $ 26.6



              Three months ended June 30, 2009



Concerts      $ 25.3    $ 1.4        $ (0.7)   $ -         $ 29.1       $ (4.5)

Artist
Nation        2.4       -            -         -           2.0          0.4

Ticketing     2.3       0.1          -         -           2.4          (0.2)

Sponsorship   27.1      -            -         -           -            27.1

eCommerce     (1.6)     -            -         -           1.3          (2.9)

Other &
Eliminations  0.5       -            -         -           0.1          0.4

Corporate     (11.0)    1.9          -         14.9        0.6          (28.4)

Total Live
Nation        $ 45.0    $ 3.4        $ (0.7)   $ 14.9      $ 35.5       $ (8.1)



              Six months ended June 30, 2010



Concerts      $ (18.3)  $ 3.6        $ (1.3)   $ 0.6       $ 56.2       $ (77.4)

Artist
Nation        10.7      2.4          -         5.8         18.2         (15.7)

Ticketing     109.6     9.3          5.2       6.5         44.4         44.2

Sponsorship   35.0      0.2          -         0.1         0.2          34.5

eCommerce     10.9      0.2          -         0.7         3.1          6.9

Other &
Eliminations  (0.3)     0.1          -         -           (1.0)        0.6

Corporate     (33.8)    17.0         -         17.9        1.3          (70.0)

Total Live
Nation        $ 113.8   $ 32.8       $ 3.9     $ 31.6      $ 122.4      $ (76.9)



              Six months ended June 30, 2009



Concerts      $ (2.1)   $ 2.1        $ (1.0)   $ 0.1       $ 63.6       $ (66.9)

Artist
Nation        1.5       0.3          -         -           5.0          (3.8)

Ticketing     (0.9)     0.1          -         -           5.2          (6.2)

Sponsorship   32.9      -            -         -           0.1          32.8

eCommerce     (4.4)     0.2          -         -           2.8          (7.4)

Other &
Eliminations  0.6       -            -         -           0.1          0.5

Corporate     (22.1)    3.8          -         18.6        0.9          (45.4)

Total Live
Nation        $ 5.5     $ 6.5        $ (1.0)   $ 18.7      $ 77.7       $ (96.4)











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)

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

              Three months ended June 30, 2010



Concerts      $ 24.3    $ 1.6        $ (1.2)   $ 0.6       $ 27.8       $ (4.5)

Artist        9.9       1.1          -         5.7         10.2         (7.1)
Nation

Ticketing     63.8      3.5          0.6       2.8         24.9         32.0

Sponsorship   26.4      0.1          -         (0.2)       0.1          26.4

eCommerce     3.2       0.2          -         0.4         0.4          2.2

Other &       (0.6)     -            -         -           (1.0)        0.4
Eliminations

Corporate     (14.7)    3.9          -         3.7         0.5          (22.8)

Total Live    $ 112.3   $ 10.4       $ (0.6)   $ 13.0      $ 62.9       $ 26.6
Nation



              Three months ended June 30, 2009



Concerts      $ 25.3    $ 1.4        $ (0.7)   $ -         $ 29.1       $ (4.5)

Artist        14.2      3.9          -         -           10.8         (0.5)
Nation

Ticketing     54.8      1.5          -         -           27.6         25.7

Sponsorship   27.4      -            -         -           0.1          27.3

eCommerce     7.8       -            -         -           2.2          5.6

Other &       0.5       -            -         -           0.1          0.4
Eliminations

Corporate     (20.2)    3.0          -         23.4        0.5          (47.1)

Total Live    $ 109.8   $ 9.8        $ (0.7)   $ 23.4      $ 70.4       $ 6.9
Nation



              Six months ended June 30, 2010



Concerts      $ (18.3)  $ 3.6        $ (1.3)   $ 0.6       $ 56.2       $ (77.4)

Artist        10.7      2.4          -         5.8         18.2         (15.7)
Nation

Ticketing     109.6     9.3          5.2       6.5         44.4         44.2

Sponsorship   35.0      0.2          -         0.1         0.2          34.5

eCommerce     10.9      0.2          -         0.7         3.1          6.9

Other &       (0.3)     0.1          -         -           (1.0)        0.6
Eliminations

Corporate     (33.8)    17.0         -         17.9        1.3          (70.0)

Total Live    $ 113.8   $ 32.8       $ 3.9     $ 31.6      $ 122.4      $ (76.9)
Nation



              Six months ended June 30, 2009



Concerts      $ (2.1)   $ 2.1        $ (1.0)   $ 0.1       $ 63.6       $ (66.9)

Artist        16.4      7.3          -         -           20.1         (11.0)
Nation

Ticketing     101.6     3.1          -         -           44.0         54.5

Sponsorship   33.4      -            -         -           0.1          33.3

eCommerce     12.2      0.3          -         -           4.1          7.8

Other &       0.6       -            -         -           0.1          0.5
Eliminations

Corporate     (43.1)    6.0          -         28.2        1.0          (78.3)

Total Live    $ 119.0   $ 18.8       $ (1.0)   $ 28.3      $ 133.0      $ (60.1)
Nation












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

                                                     Reported Reported Combined
($ in millions)                                      Q2 2010  Q2 2009  Q2 2009

Adjusted operating income                            $ 112.3  $ 45.0   $ 109.8

Less: Cash interest expense — net                  (26.6)   (12.3)   (25.7)

Cash taxes                                           (5.6)    (10.6)   (19.9)

Maintenance capital expenditures                     (15.3)   (5.7)    (13.5)

Distributions to noncontrolling interest partners    (1.5)    (0.3)    (5.7)

Distributions from (contributions to) investments in
nonconsolidated affiliates                           0.2      0.3      3.2

Free cash flow                                       $ 63.5   $ 16.4   $ 48.2










                                                     Reported Reported Combined
                                                     6 months 6 months 6 months
($ in millions)                                      2010     2009     2009

Adjusted operating income                            $ 113.8  $ 5.5    $ 119.0

Less: Cash interest expense — net                  (49.6)   (25.5)   (55.5)

Cash taxes                                           (3.8)    (13.6)   (30.1)

Maintenance capital expenditures                     (22.6)   (8.7)    (23.0)

Distributions to noncontrolling interest partners    (8.2)    (0.3)    (6.0)

Distributions from (contributions to) investments in
nonconsolidated affiliates                           1.0      1.5      4.3

Free cash flow                                       $ 30.6   $ (41.1) $ 8.7








Reconciliation of Cash and Cash Equivalents to Free Cash

($ in millions)                                June 30, 2010

Cash and cash equivalents                      $ 999.9

Client Cash                                    $ (308.7)

Deferred revenue – event related             $ (697.3)

Accrued artist fees                            $ (8.9)

Collections on behalf of others                $ (27.6)

Prepaids related to artist settlements/events  $ 371.2

Free cash                                      $ 328.6







SOURCE Live Nation Entertainment