Exhibit 99.1

LOGO

FOR IMMEDIATE RELEASE

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 – August 5, 2010 – 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.

“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)

 

Key Drivers    Q2 2010    Q2 2009    Variance          

6 months

2010

  

6 months

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)                     
Primary Ticketing Volume Trends by Category   

Gross

Value of

Tickets

Sold

  

Ticket

Volume

Totals

   Total
Mix %
of Total
        

Gross

Value of

Tickets

Sold

  

Ticket

Volume

Totals

   Total
Mix %
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.

 

2


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

 

3


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

 

4


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

 

5


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.

 

6


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
2010
    6 months
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

 

7


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.

Media & Investor Contact:

Linda Bandov

Live Nation Entertainment, Inc.

(310) 867-7000

lindabandov@livenation.com

 

8


LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

     Three Months Ended
June 30,
    Six Months Ended
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   
                                

 

9


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   
                

 

10


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   
                

 

11


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.

 

12


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)

 

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

amortization
    Operating
income (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
                                               

 

13


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

amortization
    Operating
income (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

     14.2        3.9      —          —          10.8        (0.5

Ticketing

     54.8        1.5      —          —          27.6        25.7   

Sponsorship

     27.4        —        —          —          0.1        27.3   

eCommerce

     7.8        —        —          —          2.2        5.6   

Other & Eliminations

     0.5        —        —          —          0.1        0.4   

Corporate

     (20.2     3.0      —          23.4        0.5        (47.1
                                               

Total Live Nation

   $ 109.8      $ 9.8    $ (0.7   $ 23.4      $ 70.4      $ 6.9   
                                               
     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

     16.4        7.3      —          —          20.1        (11.0

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 & Eliminations

     0.6        —        —          —          0.1        0.5   

Corporate

     (43.1     6.0      —          28.2        1.0        (78.3
                                               

Total Live Nation

   $ 119.0      $ 18.8    $ (1.0   $ 28.3      $ 133.0      $ (60.1
                                               

 

14


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

 

($ in millions)   

Reported

Q2 2010

   

Reported

Q2 2009

   

Combined

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   

 

($ in millions)   

Reported

6 months

2010

   

Reported

6 months

2009

   

Combined

6 months

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   

 

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