Live Nation Entertainment Reports Second Quarter 2011 Financial Results

LOS ANGELES, Aug. 8, 2011 /PRNewswire-FirstCall/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three and six months ended June 30, 2011 today.  

"2011 has shown solid performance for two quarters, with improved results across most of our key financial metrics, providing the basis for profit growth over the full year. The company is now delivering strong results, with growth driven through increased ticket sales, improved show profitability in Concerts and growth in our advertising businesses," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. "We are seeing the global ticketing business stabilize and concert business grow year-over-year, and we remain optimistic about continued growth opportunities in the industry long term. In addition to delivering this year's results, we remain focused on strategically expanding our global presence, innovating our ticketing platform and maximizing ticket sales, while carefully managing our costs."

The company will host a teleconference today, August 8, 2011 at 5:00 p.m. Eastern Daylight Time, which can be accessed by dialing 888-603-6873 (U.S.) or 973-321-1019 (Int'l) and referencing passcode 83007613. 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 15, 2011.

The financial results of operations for the first six months of 2010 only include Ticketmaster results following the date of the merger (January 25) through June 30, 2010. (1)

FINANCIAL HIGHLIGHTS – 2nd QUARTER and SIX MONTHS

(Unaudited; $ in millions)



Q2 2011

Q2 2010

Growth


6 months

2011

6 months

2010

Growth

Revenue








Concerts

$ 1,082.2

$ 859.5

25.9%


$  1,531.5

$    1,267.6

20.8%

Ticketing

283.8

264.4

7.3%


580.2

473.5

22.5%

Artist Nation

118.4

88.7

33.5%


172.6

158.3

9.0%

eCommerce

37.4

18.9

97.9%


66.8

37.0

80.5%

Sponsorship

49.6

38.8

27.8%


74.4

60.1

23.8%

Other & Eliminations

(12.5)

(3.6)

**


(17.2)

(6.4)

**


$ 1,558.9

$1,266.7

23.1%


$  2,408.3

$   1,990.1

21.0%









Adjusted Operating Income (Loss)








Concerts

$      19.8

$      24.3

(18.5%)


$     (21.5)

$     (18.2)

(18.1%)

Ticketing

71.9

64.8

11.0%


152.5

111.2

37.1%

Artist Nation

15.8

9.8

61.2%


15.0

10.7

40.2%

eCommerce

15.1

3.2

**


25.8

10.9

**

Sponsorship

32.6

26.4

23.5%


43.6

35.0

24.6%

Other & Eliminations

0.1

(0.6)

**


0.2

(0.4)

**

Corporate

(16.8)

(14.7)

(14.3)%


(32.0)

(33.8)

5.3%


$    138.5

$    113.2

22.3%


$     183.6

$     115.4

59.1%









Operating Income (Loss)








Concerts

$      (9.1)

$        2.1

**


$     (78.5)

$      (70.7)

(11.0%)

Ticketing

38.8

28.5

36.1%


83.0

41.0

**

Artist Nation (2)

2.3

(2.2)

**


(40.5)

(10.1)

**

eCommerce

11.9

2.6

**


20.3

7.6

**

Sponsorship

32.4

26.2

23.7%


43.2

34.6

24.9%

Other & Eliminations

0.2

0.5

(60.0%)


0.4

0.6

(33.3%)

Corporate

(21.8)

(19.1)

(14.1%)


(42.3)

(52.1)

18.8%


$       54.7

$      38.6

41.7%


$     (14.4)

$     (49.1)

70.7%









 Acquisition Expenses

$         2.3

$       13.0



$        5.4

$       31.6



$       52.4

$       25.6



$     (19.8)

$     (80.7)


** percentages are not meaningful


(1) Reported results for the six months ended June 30, 2010, include the results of the legacy Ticketmaster operations following the date of the merger through June 30. Results for the legacy Ticketmaster operations for the period January 1-January 25, 2010, or the stub period (which are not included in the reported results above), include $76.1 million in revenue, primarily in the Ticketing segment, and $5.0 million in adjusted operating income, of which $7.7 million was related to the Ticketing segment. Ticketmaster's operating income for the stub period was $14.8 million, including a $30.1 million gain on sale of IATS.


(2) Artist Nation's operating loss for the six months ended June 30, 2011 was driven by $24.4 million of stock-related compensation expense due to the acquisition of the remaining equity of Front Line Management in February 2011.




Free cash as of June 30, 2011 was $328.0 million. Free cash flow was $78.2 million for the second quarter of 2011 as compared to $64.4 million for the same period in 2010, and $71.3 million for the first six months of 2011 compared to $32.2 million for the same period in 2010.

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.

KEY OPERATING METRICS






Three Months Ended June 30,


Six Months Ended June 30,





2011


2010


2011


2010












Concerts (1)









Total Estimated Events:










North America

4,243


3,671


7,326


6,710



International

1,591


1,887


3,112


3,478




    Total estimated events

5,834


5,558


10,438


10,188













Total Estimated Attendance (rounded):










North America

8,858,000


7,830,000


12,859,000


11,844,000



International

4,193,000


4,471,000


7,146,000


7,432,000




    Total estimated attendance

13,051,000


12,301,000


20,005,000


19,276,000













Ancillary net revenue per attendee:











North America amphitheaters

$        19.21


$        18.57


$          19.34


$        18.53












Ticketing (2)









Number of tickets sold (in thousands):










Concerts

17,672


15,594


34,538


27,848



Sports

6,498


5,768


14,124


10,510



Arts and theater

4,266


4,418


8,829


7,994



Family

2,918


2,045


7,335


4,813



Other (3)

2,057


1,150


3,230


1,908





33,411


28,975


68,056


53,073













Gross value of tickets sold (in thousands)

$ 2,086,782


$ 1,803,420


$   4,104,436


$ 3,162,471












Sponsorship/Advertising




















Online advertising revenue (in thousands)

$      12,967


$        8,389


$        21,292


$      16,826













Estimated average sponsorship dollars









    per sponsor (rounded)

$      97,000


$      76,000


$      146,000


$    117,000












eCommerce









Gross value of tickets sold online (in thousands)

$ 1,642,194


$ 1,446,516


$   3,332,890


$ 2,860,302


Number of customers in database (rounded)





103,598,000


85,304,000



(1)  Events generally represent a single performance by an artist. Attendance generally represents the number of fans who were present at an event. Festivals are counted as one event in the quarter in which the festival begins but attendance is split over the days of the festival and can be split between quarters. Events and attendance metrics are estimated each quarter.


(2)  The number and gross value of tickets sold includes primary tickets only. These include tickets sold during the period regardless of event timing except for our promoted concerts and our owned and/or operated buildings and certain European territories where these tickets are recognized as the concerts occur. The tickets sold listed above for 2010 do not include 7.1 million tickets with a gross value of $405.0 million for the pre-merger period. Tickets sold for the full six months ended June 30, 2010, including the pre-merger period, were as follows:


Concerts

30,858




Sports

12,169




Arts and theater

9,241




Family

5,811




Other

2,139





60,218




(3)  Other category includes tickets for comedy shows, facility tours, donations, lectures, seminars and cinema.



LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)







Three Months Ended

June 30, 

Six Months Ended

June 30,


2011

2010 

2011 

2010 


(in thousands except share and per share data)

Revenue

$  1,558,882

$  1,266,735

$      2,408,291

$   1,990,096

Operating expenses:





Direct operating expenses

1,138,151

896,283

1,685,275

1,381,039

Selling, general and administrative expenses

266,795

252,899

539,764

484,495

Depreciation and amortization

76,927

64,308

154,408

126,941

Loss (gain) on sale of operating assets

(660)

(637)

635

3,934

Corporate expenses

24,590

21,882

45,626

59,006

Acquisition transaction expenses

706

6,394

2,371

15,411

Operating income (loss)

52,373

25,606

(19,788)

(80,730)

Interest expense

30,845

29,932

60,074

56,493

Loss on extinguishment of debt

21,172

21,172

Interest income

(1,298)

(791)

(1,825)

(1,434)

Equity in earnings of nonconsolidated affiliates

(1,778)

(1,708)

(2,772)

(2,255)

Other expense (income), net

1,331

(565)

746

(1,633)

Income (loss) from continuing operations before income taxes

23,273

(22,434)

(76,011)

(153,073)

Income tax expense (benefit)

6,659

8,408

(38,283)

417

Income (loss) from continuing operations

16,614

(30,842)

(37,728)

(153,490)

Loss from discontinued operations, net of tax

(377)

(680)

Net income (loss)

16,614

(31,219)

(37,728)

(154,170)

Net income (loss) attributable to noncontrolling interests

3,357

1,568

(2,525)

830

Net income (loss) attributable to Live Nation Entertainment, Inc.

$          13,257

$         (32,787)

$        (35,203)

$        (155,000)

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





Income (loss) from continuing operations attributable to Live Nation Entertainment, Inc.

$              0.07

$  (0.19)

$  (0.20)

$         (0.98)

Loss from discontinued operations attributable to Live Nation Entertainment, Inc.

-

-

-

-

Net income (loss) attributable to Live Nation Entertainment, Inc.

$              0.07

$  (0.19)

$            (0.20)

$             (0.98)

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





Income (loss) from continuing operations attributable to Live Nation Entertainment, Inc.

$              0.07

$  (0.19)

$  (0.20)

$  (0.98)

Loss from discontinued operations attributable to Live Nation Entertainment, Inc.

-

-

-

-

Net income (loss) attributable to Live Nation Entertainment, Inc.

$  0.07

$  (0.19)

$             (0.20)

$  (0.98)

Weighted average common shares outstanding:










Basic

180,818,826

170,007,727

178,568,320

158,219,805

Diluted

182,790,095

170,007,727

178,568,320

158,219,805




LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS






June 30,

December 31,


2011  

2010 


(unaudited)

(audited)


(in thousands)

ASSETS


Current assets



Cash and cash equivalents

$  1,003,960

$  892,758

Accounts receivable, less allowance of $10,839 as of June 30, 2011 and $10,898 as of December 31, 2010

487,843

329,947

Prepaid expenses

494,099

348,309

Other current assets

49,589

32,483

Total current assets

2,035,491

1,603,497

Property, plant and equipment



Land, buildings and improvements

861,792

850,124

Computer equipment and capitalized software

237,494

218,294

Furniture and other equipment

169,041

168,508

Construction in progress

47,453

24,528


1,315,780

1,261,454

Less accumulated depreciation

580,901

524,390


734,879

737,064

Intangible assets



Definite-lived intangible assets, net

947,655

997,268

Indefinite-lived intangible assets

377,974

375,214

Goodwill

1,260,759

1,226,416

Investments in nonconsolidated affiliates

45,769

30,077

Other long-term assets

249,701

226,024

Total assets

$  5,652,228

$  5,195,560

LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities



Accounts payable, client accounts

$  491,369

$  462,301

Accounts payable

133,645

76,876

Accrued expenses

581,154

498,864

Deferred revenue

641,322

335,539

Current portion of long-term debt

57,648

54,150

Other current liabilities

32,481

46,491

Total current liabilities

1,937,619

1,474,221




Long-term debt, net

1,675,294

1,677,714

Long-term deferred income taxes

187,402

219,143

Other long-term liabilities

162,801

215,273

Commitments and contingent liabilities






Redeemable noncontrolling interests

-

107,541




Stockholders' equity  



Common stock

1,867

1,724

Additional paid-in capital

2,224,861

2,053,233

Accumulated deficit

(697,378)

(662,175)

Cost of shares held in treasury

(5,381)

(6,122)

Accumulated other comprehensive income (loss)

32,240

(22,244)

Total Live Nation Entertainment, Inc. stockholders' equity

1,556,209

1,364,416

Noncontrolling interests

132,903

137,252

Total stockholders' equity

1,689,112

1,501,668

Total liabilities and stockholders' equity

$  5,652,228

$  5,195,560




LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)






Six Months Ended

June 30,


2011  

2010  


(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES



Net loss

$       (37,728)

$  (154,170)

Adjustments to reconcile net loss to net cash provided by operating activities:



Depreciation

58,935

60,696

Amortization

95,473

66,245

Deferred income tax benefit

(35,444)

(3,423)

Amortization of debt issuance costs

2,906

1,826

Amortization of debt discount/premium, net

3,507

3,524

Provision for uncollectible accounts receivable and advances

1,653

15,189

Non-cash loss on extinguishment of debt

-

8,272

Non-cash compensation expense

32,192

32,798

Unrealized changes in fair value of contingent consideration

(8,908)

4,555

Loss on sale of operating assets

635

4,614

Equity in earnings of nonconsolidated affiliates

(2,772)

(2,255)

Other, net

1,251

-

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



Increase in accounts receivable

(148,233)

(63,659)

Increase in prepaid expenses

(138,161)

(238,446)

Increase in other assets

(55,756)

(47,098)

Increase in accounts payable, accrued expenses and other liabilities

69,903

17,644

Increase in deferred revenue

293,212

461,967

Net cash provided by operating activities

132,665

168,279




CASH FLOWS FROM INVESTING ACTIVITIES



Collections (advances) of notes receivable

(626)

638

Distributions from nonconsolidated affiliates

7,481

964

Investments made in nonconsolidated affiliates

(5,926)

-

Purchases of property, plant and equipment

(44,651)

(30,082)

Proceeds from disposal of operating assets, net of cash divested

7,163

20,753

Cash paid for acquisitions, net of cash acquired

(19,904)

566,144

Purchases of intangible assets

(103)

(1,363)

Other, net

(525)

297

Net cash provided by (used in) investing activities

(57,091)

557,351




CASH FLOWS FROM FINANCING ACTIVITIES



Proceeds from long-term debt, net of issuance costs

(756)

1,318,637

Payments on long-term debt

(15,081)

(1,182,507)

Redemption of preferred stock

-

(40,000)

Contributions from noncontrolling interests

-

13

Distributions to and purchases/sales of noncontrolling interests

(59,999)

(8,198)

Proceeds from exercise of stock options

3,082

4,254

Proceeds from sale of common stock

76,492

-

Equity issuance costs

-

(357)

Purchases of common stock

-

(1,567)

Payments for deferred and contingent consideration

(13,807)

(11,109)

Net cash provided by (used in) financing activities

(10,069)

79,166

Effect of exchange rate changes on cash and cash equivalents

45,697

(41,823)

Net increase in cash and cash equivalents

111,202

762,973

Cash and cash equivalents at beginning of period

892,758

236,955

Cash and cash equivalents at end of period

$     1,003,960

$    999,928




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 company's potential profit growth over the full year and for the industry in the long term; stabilization of the global ticketing business; year-over-year growth in the concert business; and the company's focus on strategically expanding its global presence, innovating its ticketing platform and maximizing ticket sales, while carefully managing its costs. 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 acquisition-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 noncontrolling 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)


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


 ($ in millions)


Adjusted

operating

income

(loss)

Non-cash

and

stock-based

compensation

expense

Loss

(gain) on

sale of

operating

assets

Depreciation

and

amortization

Acquisition

expenses

Operating

income

(loss)



Three months ended June 30, 2011









Concerts


$          19.8

$                1.3

$                (0.7)

$              28.3

$               (1.2)

$              (7.9)

Ticketing


71.9

1.2

(0.1)

32.0

0.7

38.1

Artist Nation


15.8

0.4

-

13.1

(2.8)

5.1

eCommerce


15.1

-

-

3.2

-

11.9

Sponsorship


32.6

0.1

-

0.1

-

32.4

Other & Eliminations


0.1

-

0.1

(0.2)

-

0.2

Corporate


(16.8)

4.6

-

0.4

5.6

(27.4)

Total Live Nation


$         138.5

$               7.6

$               (0.7)

$             76.9

$                2.3

$              52.4











Three months ended June 30, 2010









Concerts


$          24.3

$                  1.6

$                (1.2)

$              21.8

$               0.6

$                1.5

Ticketing


64.8

3.6

0.6

32.1

2.8

25.7

Artist Nation


9.8

1.6

-

10.4

5.7

(7.9)

eCommerce


3.2

0.2

-

0.4

0.4

2.2

Sponsorship


26.4

0.1

-

0.1

(0.2)

26.4

Other & Eliminations


(0.6)

(0.1)

-

(1.0)

-

0.5

Corporate


(14.7)

3.9

-

0.5

3.7

(22.8)

Total Live Nation


$         113.2

$              10.9

$               (0.6)

$            64.3

$              13.0

$             25.6




Six months ended June 30, 2011









Concerts


$         (21.5)

$                 3.0

$                (0.7)

$              54.7

$               (5.8)

$            (72.7)

Ticketing


152.5

2.7

(0.1)

66.9

0.8

82.2

Artist Nation


15.0

27.6

1.2

26.7

(2.2)

(38.3)

eCommerce


25.8

0.1

-

5.4

-

20.3

Sponsorship


43.6

0.2

-

0.2

-

43.2

Other & Eliminations


0.2

-

0.2

(0.4)

-

0.4

Corporate


(32.0)

9.4

-

0.9

12.6

(54.9)

Total Live Nation


$        183.6

$               43.0

$                  0.6

$             154.4

$                5.4

$            (19.8)











Six months ended June 30, 2010









Concerts


$          (18.2)

$                  3.6

$                (1.3)

$               50.2

$                0.6

$            (71.3)

Ticketing


111.2

9.3

5.2

55.7

6.5

34.5

Artist Nation


10.7

3.1

-

17.7

5.8

(15.9)

eCommerce


10.9

0.2

-

3.1

0.7

6.9

Sponsorship


35.0

0.2

-

0.2

0.1

34.5

Other & Eliminations


(0.4)

0.1

-

(1.1)

-

0.6

Corporate


(33.8)

17.0

-

1.3

17.9

(70.0)

Total Live Nation


$         115.4

$              33.5

$                 3.9

$           127.1

$              31.6

$            (80.7)




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

($ in millions)

Q2 2011

Q2 2010

Adjusted operating income

$     138.5

$      113.2

Less:  Cash interest expense — net

(26.2)

(26.6)

          Cash taxes

(13.8)

(5.6)

          Maintenance capital expenditures

(17.9)

(15.3)

          Distributions to noncontrolling interests

(4.1)

(1.5)

Distributions from (contributions to) investments in nonconsolidated affiliates  

1.7

0.2

          Free cash flow

$       78.2

$      64.4

          Revenue generating capital expenditures

(8.6)

(2.5)

          Net

$      69.6

$       61.9





($ in millions)

6 months

2011

6 months

2010

Adjusted operating income

$     183.6

$      115.4

Less:  Cash interest expense — net

(51.8)

(49.6)

          Cash taxes

(23.2)

(3.8)

          Maintenance capital expenditures

(28.9)

(22.6)

          Distributions to noncontrolling interests

(10.0)

(8.2)

Distributions from (contributions to) investments in nonconsolidated affiliates  

1.6

1.0

          Free cash flow

$      71.3

$       32.2

          Revenue generating capital expenditures

(15.8)

(7.2)

          Net

$       55.5

$      25.0




Reconciliation of Cash and Cash Equivalents to Free Cash

($ in millions)


June 30,

2011

Cash and cash equivalents


$          1,004.0

Client cash


(397.2)

Deferred revenue event related


(546.7)

Accrued artist fees


(47.1)

Collections on behalf of others


(40.8)

Prepaids related to artist settlements/events


355.8

   Free cash


$             328.0




SOURCE Live Nation Entertainment