Live Nation Entertainment Reports Fourth Quarter and Full Year 2011 Financial Results

Full Year Revenue, Operating Income and Ticket Sales All Up

LOS ANGELES, Feb. 23, 2012 /PRNewswire/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three months and year ended December 31, 2011 today.  

"In 2011 the company grew revenue and profitability across all business segments, achieving our financial objectives while investing in innovation and growth," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment.  "Our adjusted operating income growth of 21% was achieved through improved execution, which also drove our free cash flow increase of 23% and an $82 million improvement in operating income for the year. This performance was delivered as we continued to strategically invest in our ticketing infrastructure, ecommerce and mobile platforms and the expansion of our concert portfolio globally. The past year has also reaffirmed the solid demand for live entertainment worldwide and the strength of our global platform serving artists, fans, teams, venues and advertisers."

"The concert business is off to a great start in 2012, driven by a solid early line-up of artists and healthy ticketing demand. We believe that the industry has stabilized and expect the overall market environment to be much the same in 2012, with the fan's passion for our products mitigating any ongoing economic uncertainty. This year we plan to continue our focus on growing profitability with more concerts in the most attractive markets with great artists, growing our advertising network and investing in our consumer ecommerce and mobile ticketing platforms to enhance the fan experience on Ticketmaster.com and LiveNation.com. As a result, we believe we are well-positioned to build on the success of this past year, extend our market leadership and continue growing profitability in the year ahead."

The company will host a teleconference today, February 23, 2012 at 5:00 p.m. Eastern Time, which can be accessed by dialing 888-466-4582 (U.S.) or 719-325-2378 (Int'l) ten minutes prior to the start time and referencing passcode 6784952. 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/or 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 1, 2012.

FINANCIAL HIGHLIGHTS – FOURTH QUARTER and FULL YEAR

(Unaudited; $ in millions



Q4 2011

Q4 2010

Growth


FY

2011

FY

2010 (1)

Growth

Revenue








Concerts

$     694.4

$    790.3

(12.1%)


$  3,506.2

$  3,438.4

2.0%

Ticketing

323.4

305.2

6.0%


1,190.6

1,039.9

14.5%

Artist Nation

99.2

93.0

6.7%


393.1

362.2

8.5%

eCommerce

41.0

25.1

63.3%


144.4

87.9

64.3%

Sponsorship

32.6

32.1

1.6%


179.7

161.7

11.1%

Other & Eliminations

(4.9)

(7.9)

38.0%


(30.0)

(26.4)

(13.6%)


$  1,185.7

$ 1,237.8

(4.2%)


$  5,384.0

$  5,063.7

6.3%









Adjusted Operating Income (Loss)








Concerts

$     (31.9)

$    (28.3)

(12.7%)


$       30.3

$       15.4

96.8%

Ticketing

67.8

56.3

20.4%


272.1

231.3

17.6%

Artist Nation

12.2

14.0

(12.9%)


47.2

46.5

1.5%

eCommerce

11.1

11.8

(5.9%)


51.1

36.2

41.2%

Sponsorship

22.9

20.0

14.5%


120.9

108.1

11.8%

Other & Eliminations

2.7

0.1

**


2.2

(0.3)

**

Corporate

(34.1)

(17.1)

(99.4%)


(85.9)

(74.4)

(15.5%)


$       50.7

$       56.8

(10.7%)


$     437.9

$     362.8

20.7%









Operating Income (Loss)








Concerts

$     (78.0)

$     (90.1)

13.4%


$   (107.3)

$   (130.5)

17.8%

Ticketing

22.1

4.2

**


119.4

82.6

44.6%

Artist Nation (2)

(1.3)

0.3

**


(32.6)

(5.2)

**

eCommerce

8.7

9.7

(10.3%)


40.3

28.4

41.9%

Sponsorship

22.4

19.9

12.6%


119.7

107.4

11.5%

Other & Eliminations

2.6

(1.0)

**


2.3

0.3

**

Corporate

(40.7)

(22.6)

(80.1%)


(108.6)

(103.8)

(4.6%)


$     (64.2)

$     (79.6)

19.3%


$       33.2

$     (20.8)

**









 Acquisition Expenses

$         2.5

$         6.5



$       14.9

$       42.9



$     (66.7)

$     (86.1)



$       18.3

$     (63.7)



** percentages are not meaningful



(1)

Reported results for the full year ended December 31, 2010, include the results of the legacy Ticketmaster operations following the date of the merger (January 25) through December 31. Results for the legacy Ticketmaster operations for the period January 1 through 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 the sale of a subsidiary prior to the merger.



(2)

The Artist Nation segment's operating loss for the full year ended December 31, 2011 is driven primarily 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 December 31, 2011 was $334.5 million. Free cash flow was ($20.4) million for the fourth quarter of 2011 as compared to ($12.9) million for the same period in 2010, and $203.1 million for the year ended December 31, 2011 as compared to $164.8 million for 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 almost 27 million monthly unique visitors. Live Nation Concerts produces over 22,000 shows annually for more than 2,300 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

December 31,


Year Ended

December 31,






2011


2010


2011


2010













Concerts (1)












Estimated Events:











North America


4,199


3,608


15,531


14,119



International


2,472


2,365


6,720


6,971




    Total estimated events

6,671


5,973


22,251


21,090


Estimated Attendance (rounded):










North America


5,963,000


5,942,000


31,060,000


30,603,000



International


5,293,000


5,555,000


15,742,000


16,659,000




    Total estimated attendance

11,256,000


11,497,000


46,802,000


47,262,000














Ancillary net revenue per attendee:










North America amphitheaters

**


**


$18.08


$17.57



International festivals

**


**


$17.19


$15.95

Ticketing (2)












Number of tickets sold (in thousands):










Concerts


18,421


17,700


71,044


63,833



Sports


6,245


5,489


26,768


22,074



Arts and theater


6,929


5,935


21,513


18,462



Family


4,450


4,217


14,176


11,469



Other (3)


2,372


1,283


7,867


4,420






38,417


34,624


141,368


120,258














Gross value of tickets sold (in thousands):

$2,286,641


$2,193,541


$8,442,517


$7,466,957

Sponsorship












Online advertising revenue (in thousands)

$15,706


$11,785


$51,057


$38,493


Estimated number of sponsors (as of period end)

768


794


768


794


Sponsorship revenue recognized (in thousands)

$32,590


$32,146


$179,734


$161,742













eCommerce












Gross value of tickets sold online (in thousands)

$1,845,179


$1,693,514


$6,894,416


$ 5,896,518















(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 and excludes tickets sold for the 2012 London Olympics. These metrics include tickets sold during the period regardless of event timing except for our promoted concerts in 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 $406.4 million for the pre-Merger period. Tickets sold for the full year ended December 31, 2010, including the pre-Merger period, were as follows:




Concerts                  66,843

Sports                      23,733

Arts and theater       19,709

Family                      12,467

Other                          4,651

                               127,403


(3)

Other category includes tickets for comedy shows, facility tours, donations, lectures, seminars and cinemas.




** not meaningful



LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS







Year Ended December 31,


2011


2010


2009



(in thousands except share and per share data)


Revenue

$  5,383,998

$      5,063,748

$   4,181,021

Operating expenses:




Direct operating expenses

3,789,488

3,658,310

3,357,245

Selling, general and administrative expenses

1,111,969

1,014,491

617,709

Depreciation and amortization

343,018

321,666

158,118

Goodwill impairment

-

-

9,085

Loss (gain) on sale of operating assets

978

374

(2,983)

Corporate expenses

112,157

110,252

58,160

Acquisition transaction expenses

8,051

22,355

36,043

                  Operating income (loss)

18,337

(63,700)

(52,356)

Interest expense

120,414

116,527

66,365

Loss on extinguishment of debt

-

21,315

-

Interest income

(4,215)

(3,771)

(2,193)

Equity in earnings of nonconsolidated affiliates

(7,742)

(4,928)

(1,851)

Other expense (income) - net

6,507

(4,189)

1

Loss from continuing operations before income taxes

(96,627)

(188,654)

(114,678)

Income tax expense (benefit)

(26,224)

15,154

11,333

Loss from continuing operations

(70,403)

(203,808)

(126,011)

Income (loss) from discontinued operations, net of tax

-

(4,228)

76,277

Net loss

(70,403)

(208,036)

(49,734)

Net income attributable to noncontrolling interests

12,613

20,354

10,445

Net loss attributable to Live Nation Entertainment, Inc.

$         (83,016)

$       (228,390)

$           (60,179)

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




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

$  (0.46)

$           (1.36)

$         (1.65)

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

-

(0.03)

0.92

Net loss attributable to Live Nation Entertainment, Inc.

$  (0.46)

$             (1.39)

$             (0.73)

Weighted average common shares outstanding:




Basic and diluted

182,388,070

164,410,167

82,652,366




LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS






December 31,


2011


2010



(in thousands except share data)

ASSETS


Current assets



Cash and cash equivalents

$           844,253

$  892,758

Accounts receivable, less allowance of $16,986 in 2011 and $10,898 in 2010

389,346

329,947

Prepaid expenses

316,491

348,309

Other current assets

26,700

32,483

Total current assets

1,576,790

1,603,497

Property, plant and equipment



Land, buildings and improvements

851,812

850,124

Computer equipment and capitalized software

261,475

218,294

Furniture and other equipment

172,250

168,508

Construction in progress

60,652

24,528


1,346,189

1,261,454

Less accumulated depreciation

626,053

524,390


720,136

737,064

Intangible assets



Definite-lived intangible assets, net

873,712

997,268

Indefinite-lived intangible assets

377,160

375,214

Goodwill

1,257,644

1,226,416

Investments in nonconsolidated affiliates

55,796

30,077

Other long-term assets

226,533

226,024

Total assets

$    5,087,771

$   5,195,560

LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities



Accounts payable, client accounts

$    473,956

$   462,301

Accounts payable

87,627

76,876

Accrued expenses

579,566

498,864

Deferred revenue

273,536

335,539

Current portion of long-term debt

52,632

54,150

Other current liabilities

25,236

46,491

Total current liabilities

1,492,553

1,474,221




Long-term debt, net

1,663,056

1,677,714

Long-term deferred income taxes

186,298

219,143

Other long-term liabilities

120,693

215,273

Commitments and contingent liabilities






Redeemable noncontrolling interests

8,277

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; 189,536,279 and 175,418,857 shares issued and outstanding in 2011 and 2010, respectively

1,868

1,724

Additional paid-in capital

2,243,587

2,053,233

Accumulated deficit

(745,191)

(662,175)

Cost of shares held in treasury (578,570 and 1,271,519 shares in 2011 and 2010, respectively)

(2,787)

(6,122)

Accumulated other comprehensive loss

(36,374)

(22,244)

Total Live Nation Entertainment, Inc. stockholders' equity

1,461,103

1,364,416

Noncontrolling interests.

155,791

137,252

Total stockholders' equity

1,616,894

1,501,668

Total liabilities and stockholders' equity

$  5,087,771

$  5,195,560




LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS







Year Ended December 31,



2011

2010

2009


(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES




Net loss

$   (70,403)

$   (208,036)

$      (49,734)

Reconciling items:




Depreciation

129,177

135,573

98,108

Amortization

213,841

186,093

64,586

Goodwill impairment

-

-

9,085

Impairment of operational assets

-

13,373

-

Deferred income tax benefit

(45,603)

(25,021)

(8,698)

Amortization of debt issuance costs

5,816

4,682

4,224

Amortization of debt discount/premium, net

7,243

6,755

8,811

Provision for uncollectible accounts receivable and advances

9,272

6,606

7,044

Non-cash loss on extinguishment of debt.

-

8,272

-

Non-cash compensation expense

50,045

52,395

16,675

Unrealized changes in fair value of contingent consideration

(11,691)

3,171

-

Loss (gain) on sale of operating assets

978

4,602

(64,237)

Equity in earnings of nonconsolidated affiliates

(7,742)

(4,928)

(3,117)

Other, net

2,481

-

-

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




Decrease (increase) in accounts receivable

(79,807)

(4,581)

27,608

Decrease (increase) in prepaid expenses

73,314

(22,570)

(57,918)

Increase in other assets

(83,928)

(41,686)

(2,945)

Increase (decrease) in accounts payable, accrued expenses and other liabilities

6,817

386

(4,586)

Increase (decrease) in deferred revenue

(64,105)

43,432

12,369

Net cash provided by operating activities

135,705

158,518

57,275





CASH FLOWS FROM INVESTING ACTIVITIES




Collections and advances of notes receivable

(1,197)

475

140

Distributions from nonconsolidated affiliates

9,273

5,863

5,134

Investments made in nonconsolidated affiliates

(15,770)

(3,458)

(821)

Purchases of property, plant and equipment

(107,500)

(75,578)

(64,267)

Proceeds from disposal of operating assets, net of cash divested

7,391

35,756

174, 321

Cash paid for acquisitions, net of cash acquired

(39,465)

491,531

(9,707)

Purchases of intangible assets

(2,591)

(1,790)

(27,863)

Decrease (increase) in other, net

(2,158)

188

544

Net cash provided by (used in) investing activities

(152,017)

452,987

77,481





CASH FLOWS FROM FINANCING ACTIVITIES




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

(669)

1,352,856

602,741

Payments on long-term debt

(31,338)

(1,233,020)

(705,795)

Redemption of preferred stock

-

(40,000)

-

Contributions from noncontrolling interests

711

429

13

Distributions to and purchases/sales from noncontrolling interests

(68,473)

(21,625)

(7,006)

Proceeds from exercise of stock options

2,705

8,640

-

Proceeds from sale of common stock

76,492

-

-

Issuance of treasury stock

-

-

1,553

Equity issuance costs

-

(357)

(2,667)

Payments for purchases of common stock

-

(1,567)

(5,803)

Payments for deferred and contingent consideration.

(23,807)

(16,270)

(7,392)

Net cash provided by (used in) financing activities

(44,379)

49,086

(124,356)

Effect of exchange rate changes on cash and cash equivalents

12,186

(4,788)

26,895

Net increase (decrease) in cash and cash equivalents

(48,505)

655,803

37,295

Cash and cash equivalents at beginning of period

892,758

236,955

199,660

Cash and cash equivalents at end of period

$ 844,253

$  892,758

$     236,955








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 global demand for live entertainment and the strength of the company's platform; the company's anticipated talent line-up and prospects for 2012; potential industry stabilization, general market conditions and related fan demand; the anticipated growth of the company's advertising network and investment in its technology platforms and websites; and the company's anticipated profitability growth and operational strategies for 2012 and future periods. 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 or artists do not tour as currently expected, the risk that consumer demand weakens and the potential impact of the economic slowdown in general 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 ticketing, 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 December 31, 2011









Concerts


$        (31.9)

$                1.7

$              (0.2)

$              44.6

$                2.7

$            (80.7)

Ticketing


67.8

1.5

-

44.2

1.2

20.9

Artist Nation


12.2

0.3

-

13.2

(5.8)

4.5

eCommerce


11.1

-

-

2.4

-

8.7

Sponsorship


22.9

0.2

-

0.3

-

22.4

Other & Eliminations


2.7

-

0.3

(0.2)

(0.1)

2.7

   Corporate


(34.1)

5.7

-

0.9

4.5

(45.2)

Total Live Nation


$          50.7

$               9.4

$                 0.1

$          105.4

$                2.5

$            (66.7)











   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)







Year Ended December 31, 2011









Concerts


$            30.3

$                 6.0

$                (0.9)

$           132.5

$               (2.3)

$          (105.0)

Ticketing


272.1

5.4

(0.1)

147.4

2.2

117.2

Artist Nation


47.2

28.1

1.3

50.4

(7.7)

(24.9)

eCommerce


51.1

0.2

-

10.6

-

40.3

Sponsorship


120.9

0.7

-

0.5

-

119.7

Other & Eliminations


2.2

-

0.7

(0.8)

(0.1)

2.4

   Corporate


(85.9)

20.2

-

2.5

22.8

(131.4)

Total Live Nation


$         437.9

$               60.6

$                  1.0

$           343.1

$              14.9

$             18.3











   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)




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


($ in millions)

Q4 2011

Q4 2010

Adjusted operating income

$       50.7

$      56.8

Less:  Cash interest expense — net

(29.4)

(14.7)

          Cash taxes

(3.4)

(32.8)

          Maintenance capital expenditures

(22.8)

(17.5)

          Distributions to noncontrolling interests

(6.6)

(4.5)

Distributions from/contributions to investments in nonconsolidated affiliates  

(8.9)

(0.2)

          Free cash flow

$    (20.4)

$    (12.9)

 Revenue generating capital expenditures

(20.1)

(7.8)

 Net

$    (40.5)

$     (20.7)






($ in millions)

Full Year

2011

Full Year

2010

Adjusted operating income

$     437.9

$      362.8

Less:  Cash interest expense — net

(107.3)

(89.9)

          Cash taxes

(37.7)

(50.6)

          Maintenance capital expenditures

(64.4)

(47.5)

          Distributions to noncontrolling interests

(18.9)

(15.0)

Distributions from/contributions to investments in nonconsolidated affiliates  

(6.5)

5.0

          Free cash flow

$     203.1

$      164.8

 Revenue generating capital expenditures

(47.7)

(26.4)

 Net

$       155.4

$      138.4




Reconciliation of Cash and Cash Equivalents to Free Cash


($ in millions)


December 31,

2011

Cash and cash equivalents


$            844.2

Client cash


(373.9)

Deferred revenueevent related


(229.2)

Accrued artist fees


(3.4)

Collections on behalf of others


(59.4)

Prepaids related to artist settlements/events


156.2

   Free cash


$             334.5




SOURCE Live Nation Entertainment