EXHIBIT 99.1

LOGO

LIVE NATION ENTERTAINMENT REPORTS THIRD QUARTER

2011 FINANCIAL RESULTS

LOS ANGELES – (November 3, 2011) – Live Nation Entertainment (NYSE:LYV) released financial results for the three and nine months ended September 30, 2011 today.

“I am delighted that we continue to deliver improved financial results and are well on track to drive strong growth in profitability for the year,” said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. “Across our portfolio this year, we have delivered growth while also improving operating margins. This is reflected in the healthy gains in free cash flow from our operations while investing in new products including festivals, re-platforming of Ticketmaster, social media and mobile apps.”

“We believe the stabilization of consumer demand for live events will continue into 2012 and, looking ahead, we are increasingly optimistic about our opportunities,” Rapino continued. “Given the continued fan demand for concerts and a growing supply of artists hitting the road, we are optimistic about the future growth of the global concert industry. Based on this, we believe we are well positioned to generate improved returns from our business and deliver shareholder value.”

The company will host a teleconference today, November 3, 2011 at 5:00 p.m. Eastern Daylight Time, which can be accessed by dialing 888-352-6793 (U.S.) or 719-457-2703 (Int’l) ten minutes prior to the start time and reference passcode 4625414. 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 November 10, 2011.


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

FINANCIAL HIGHLIGHTS – 3rd QUARTER and NINE MONTHS

(Unaudited; $ in millions)

 

     Q3 2011     Q3 2010     Growth     9 months
2011
    9 months
2010
    Growth  

Revenue

            

Concerts

   $ 1,280.3      $ 1,380.5        (7.3 %)    $ 2,811.8      $ 2,648.1        6.2

Ticketing

     287.1        261.2        9.9     867.2        734.7        18.0

Artist Nation

     121.4        111.0        9.4     293.9        269.2        9.2

eCommerce

     36.6        25.8        41.9     103.4        62.8        64.6

Sponsorship

     72.7        69.5        4.6     147.1        129.6        13.5

Other & Eliminations

     (8.1     (12.2     33.6     (25.1     (18.5     (35.7 %) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 1,790.0      $ 1,835.8        (2.5 %)    $ 4,198.3      $ 3,825.9        9.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Operating Income (Loss)

            

Concerts

   $ 83.7      $ 61.9        35.2   $ 62.2      $ 43.7        42.3

Ticketing (3)

     51.8        63.9        (18.9 %)      204.3        175.1        16.7

Artist Nation

     20.0        21.8        (8.3 %)      35.0        32.5        7.7

eCommerce

     14.1        13.5        4.4     40.0        24.4        63.9

Sponsorship

     54.4        53.1        2.4     98.0        88.1        11.2

Other & Eliminations

     (0.6     —          **        (0.5     (0.4     (25.0 %) 

Corporate

     (19.8     (23.5     15.7     (51.8     (57.4     9.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 203.6      $ 190.7        6.8   $ 387.2      $ 306.0        26.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income (Loss)

            

Concerts

   $ 49.2      $ 30.4        61.8   $ (29.3   $ (40.4     27.5

Ticketing (3)

     14.2        36.5        (61.1 %)      97.3        78.4        24.1

Artist Nation (2)

     9.1        5.5        65.5     (31.3     (5.5     **   

eCommerce

     11.4        11.1        2.7     31.6        18.7        69.0

Sponsorship

     54.1        52.9        2.3     97.3        87.5        11.2

Other & Eliminations

     (0.6     0.6        **        (0.3     1.3        **   

Corporate

     (25.6     (29.1     12.0     (67.9     (81.2     16.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 111.8      $ 107.9        3.6   $ 97.4      $ 58.8        65.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Acquisition Expenses

   $ 7.0      $ 4.8        $ 12.4      $ 36.4     
  

 

 

   

 

 

     

 

 

   

 

 

   
   $ 104.8      $ 103.1        $ 85.0      $ 22.4     
  

 

 

   

 

 

     

 

 

   

 

 

   

 

** percentages are not meaningful
(1) Reported results for the nine months ended September 30, 2010, include the results of the legacy Ticketmaster operations following the date of the merger through September 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 the sale of a subsidiary prior to the merger.  

 

(2) The Artist Nation segment’s operating loss for the nine months ended September 30, 2011 is 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.

 

(3) The Ticketing segment’s adjusted operating income and operating income for the three and nine months ended September 30, 2011 is impacted by $14.6 million of litigation-related expenses.

 

2


Free cash as of September 30, 2011 was $356.6 million. Free cash flow was $152.2 million for the third quarter of 2011 as compared to $145.2 million for the same period in 2010, and $223.5 million for the nine months of 2011 compared to $153.3 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.

 

Investor Contact:    Media Contact:
Maili Bergman    Linda Bandov Pazin
(310) 867-7000    (310) 867-7000
IR@livenation.com    lindabandov@livenation.com

 

3


Live Nation Entertainment, Inc.

Key Operating Metrics

 

     Three Months Ended September 30,      Nine Months Ended September 30,  
     2011      2010      2011      2010  

Concerts (1)

           

Total Estimated Events:

           

North America

     4,135         3,801         11,418         10,511   

International

     1,136         1,128         4,248         4,606   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total estimated events

     5,271         4,929         15,666         15,117   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Estimated Attendance (rounded) :

           

North America

     12,257,000         12,820,000         25,109,000         24,664,000   

International

     3,304,000         3,669,000         10,449,000         11,101,000   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total estimated attendance

     15,561,000         16,489,000         35,558,000         35,765,000   
  

 

 

    

 

 

    

 

 

    

 

 

 

Ancillary net revenue per attendee:

           

North America amphitheaters

   $ 17.54       $ 16.44       $ 18.08       $ 16.99   

Ticketing (2)

           

Number of tickets sold (in thousands) :

           

Concerts

     18,072         18,266         52,563         46,122   

Sports

     6,384         6,070         20,556         16,583   

Arts and theater

     5,190         4,539         14,608         12,532   

Family

     2,985         2,440         9,731         7,253   

Other (3)

     2,264         1,239         5,492         3,145   
  

 

 

    

 

 

    

 

 

    

 

 

 
     34,895         32,554         102,950         85,635   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross value of tickets sold (in thousands)

   $ 2,008,522       $ 1,913,053       $ 6,112,958       $ 5,075,524   

Sponsorship/Advertising

           

Online advertising revenue (in thousands)

   $ 13,709       $ 9,881       $ 35,351       $ 26,708   

Estimated average sponsorship dollars per sponsor (rounded)

   $ 102,000       $ 98,000       $ 206,000       $ 182,000   

eCommerce

           

Gross value of tickets sold online (in thousands)

   $ 1,700,025       $ 1,524,429       $ 5,032,914       $ 4,076,512   

Number of customers in database (rounded)

           107,298,000         94,809,000   

 

(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 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 $405.0 million for the pre-Merger period. Tickets sold for the full nine months ended September 30, 2010, including the pre-Merger period, were as follows:

 

Concerts

     49,132   

Sports

     18,242   

Arts and theater

     13,779   

Family

     8,251   

Other

     3,376   
  

 

 

 
     92,780   
  

 

 

 

 

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

 

4


LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

     Three Months Ended September 30,     Nine Months Ended September 30,  
     2011     2010     2011     2010  
     (in thousands except share and per share data)  

Revenue

   $ 1,790,025      $ 1,835,806      $ 4,198,316      $ 3,825,902   

Operating expenses:

        

Direct operating expenses

     1,286,304        1,388,295        2,971,579        2,769,334   

Selling, general and administrative expenses

     282,462        244,694        822,226        729,189   

Depreciation and amortization

     83,341        70,249        237,749        197,190   

Loss (gain) on sale of operating assets

     231        (779     866        3,155   

Corporate expenses

     27,385        27,660        73,011        86,666   

Acquisition transaction expenses

     5,493        2,581        7,864        17,992   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     104,809        103,106        85,021        22,376   

Interest expense

     30,388        29,280        90,462        85,773   

Loss on extinguishment of debt

     —          —          —          21,172   

Interest income

     (1,023     (709     (2,848     (2,143

Equity in earnings of nonconsolidated affiliates

     (2,777     (629     (5,549     (2,884

Other expense (income), net

     6,461        (212     7,207        (1,845
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     71,760        75,376        (4,251     (77,697

Income tax expense (benefit)

     8,739        10,338        (29,544     10,755   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     63,021        65,038        25,293        (88,452

Loss from discontinued operations, net of tax

     —          (3,213     —          (3,893
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     63,021        61,825        25,293        (92,345

Net income attributable to noncontrolling interests

     11,309        10,818        8,784        11,648   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 51,712      $ 51,007      $ 16,509      $ (103,993
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

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

   $ 0.28      $ 0.32      $ 0.09      $ (0.62

Loss from discontinued operations attributable to Live Nation Entertainment, Inc

     —          (0.02     —          (0.02
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 0.28      $ 0.30      $ 0.09      $ (0.64
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

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

   $ 0.27      $ 0.32      $ 0.09      $ (0.62

Loss from discontinued operations attributable to Live Nation Entertainment, Inc

     —          (0.02     —          (0.02
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 0.27      $ 0.30      $ 0.09      $ (0.64
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares outstanding:

        

Basic

     186,127,846        170,285,159        181,115,853        162,285,785   

Diluted

     188,531,130        172,302,273        183,306,799        162,285,785   

 

5


LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

 

     September 30,
2011
    December 31,
2010
 
     (unaudited)     (audited)  
     (in thousands)  
ASSETS   

Current assets

    

Cash and cash equivalents

   $ 782,573      $ 892,758   

Accounts receivable, less allowance of $12,480 as of September 30, 2011 and $10,898 as of December 31, 2010

     489,236        329,947   

Prepaid expenses

     324,256        348,309   

Other current assets

     40,736        32,483   
  

 

 

   

 

 

 

Total current assets

     1,636,801        1,603,497   

Property, plant and equipment

    

Land, buildings and improvements

     853,141        850,124   

Computer equipment and capitalized software

     240,279        218,294   

Furniture and other equipment

     170,280        168,508   

Construction in progress

     56,094        24,528   
  

 

 

   

 

 

 
     1,319,794        1,261,454   

Less accumulated depreciation

     604,038        524,390   
  

 

 

   

 

 

 
     715,756        737,064   

Intangible assets

    

Definite-lived intangible assets, net

     896,837        997,268   

Indefinite-lived intangible assets

     377,508        375,214   

Goodwill

     1,247,752        1,226,416   

Investments in nonconsolidated affiliates

     51,187        30,077   

Other long-term assets

     242,860        226,024   
  

 

 

   

 

 

 

Total assets

   $ 5,168,701      $ 5,195,560   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities

    

Accounts payable, client accounts

   $ 413,347      $ 462,301   

Accounts payable

     108,272        76,876   

Accrued expenses

     561,925        498,864   

Deferred revenue

     273,950        335,539   

Current portion of long-term debt

     56,563        54,150   

Other current liabilities

     24,007        46,491   
  

 

 

   

 

 

 

Total current liabilities

     1,438,064        1,474,221   

Long-term debt, net

     1,667,939        1,677,714   

Long-term deferred income taxes

     177,419        219,143   

Other long-term liabilities

     162,502        215,273   

Commitments and contingent liabilities

    

Redeemable noncontrolling interests

     —          107,541   

Stockholders’ equity

    

Common stock

     1,867        1,724   

Additional paid-in capital

     2,233,479        2,053,233   

Accumulated deficit

     (645,666     (662,175

Cost of shares held in treasury

     (5,313     (6,122

Accumulated other comprehensive loss

     (5,072     (22,244
  

 

 

   

 

 

 

Total Live Nation Entertainment, Inc. stockholders’ equity

     1,579,295        1,364,416   

Noncontrolling interests

     143,482        137,252   
  

 

 

   

 

 

 

Total stockholders’ equity

     1,722,777        1,501,668   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 5,168,701      $ 5,195,560   
  

 

 

   

 

 

 

 

6


LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

     Nine Months Ended
September 30,
 
     2011     2010  
     (in thousands)  

CASH FLOWS FROM OPERATING ACTIVITIES

    

Net income (loss)

   $ 25,293      $ (92,345

Reconciling items:

    

Depreciation

     94,184        90,239   

Amortization

     143,565        106,951   

Deferred income tax benefit

     (40,679     (7,089

Amortization of debt issuance costs

     4,365        3,265   

Amortization of debt discount/premium, net

     5,342        5,109   

Provision for uncollectible accounts receivable and advances

     1,955        16,661   

Non-cash loss on extinguishment of debt

     —          8,272   

Non-cash compensation expense

     40,556        45,532   

Unrealized changes in fair value of contingent consideration

     (8,828     2,965   

Loss on sale of operating assets

     866        7,048   

Equity in earnings of nonconsolidated affiliates

     (5,549     (2,884

Other, net

     2,136        —     

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

    

Increase in accounts receivable

     (164,392     (153,403

Decrease (increase) in prepaid expenses

     25,704        (110,428

Increase in other assets

     (56,645     (27,083

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

     (27,682     86,200   

Increase (decrease) in deferred revenue

     (67,732     34,696   
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (27,541     13,706   
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

    

Collections and advances of notes receivable

     (1,091     485   

Distributions from nonconsolidated affiliates

     8,804        6,019   

Investments made in nonconsolidated affiliates

     (6,437     (775

Purchases of property, plant and equipment

     (69,573     (49,165

Proceeds from disposal of operating assets, net of cash divested

     7,361        22,119   

Cash paid for acquisitions, net of cash acquired

     (25,499     560,732   

Purchases of intangible assets

     (118     (1,371

Other, net

     (842     (246
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (87,395     537,798   
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

    

Proceeds from long-term debt, net of issuance costs

     (596     1,318,132   

Payments on long-term debt

     (22,699     (1,191,712

Redemption of preferred stock

     —          (40,000

Contributions from noncontrolling interests

     —          14   

Distributions to and purchases/sales of noncontrolling interests

     (61,808     (10,538

Proceeds from exercise of stock options

     3,210        4,526   

Proceeds from sale of common stock

     76,492        —     

Equity issuance costs

     —          (357

Payments for purchases of common stock

     —          (1,567

Payments for deferred and contingent consideration

     (13,807     (11,109
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (19,208     67,389   

Effect of exchange rate changes on cash and cash equivalents

     23,959        (232
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (110,185     618,661   

Cash and cash equivalents at beginning of period

     892,758        236,955   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 782,573      $ 855,616   
  

 

 

   

 

 

 

 

7


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 profitability growth over the full year; stabilization of consumer/fan demand for live events; the company’s future opportunities; growth in availability of artists touring in the long-term; future growth in the global concert industry; and the company’s ability to generate improved returns from the business in the future and to drive shareholder value. 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, 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.

 

8


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 September 30, 2011  

Concerts

   $ 83.7      $ 1.4       $ —        $ 33.1      $ 0.8      $ 48.4   

Ticketing

     51.8        1.4         —          36.2        0.2        14.0   

Artist Nation

     20.0        0.2         —          10.7        0.3        8.8   

eCommerce

     14.1        —           —          2.7        —          11.4   

Sponsorship

     54.4        0.2         —          0.1        —          54.1   

Other & Eliminations

     (0.6     —           0.2        (0.2     —          (0.6

Corporate

     (19.8     5.1         —          0.7        5.7        (31.3
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Live Nation

   $ 203.6      $ 8.3       $ 0.2      $ 83.3      $ 7.0      $ 104.8   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     Three months ended September 30, 2010  

Concerts

   $ 61.9      $ 2.6       $ (0.8   $ 29.7      $ (2.9   $ 33.3   

Ticketing

     63.9        1.5         —          25.9        0.9        35.6   

Artist Nation

     21.8        4.0         —          12.3        1.3        4.2   

eCommerce

     13.5        0.2         —          2.2        0.1        11.0   

Sponsorship

     53.1        0.1         —          0.1        —          52.9   

Other & Eliminations

     —          —           —          (0.6     —          0.6   

Corporate

     (23.5     5.0         —          0.6        5.4        (34.5
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Live Nation

   $ 190.7      $ 13.4       $ (0.8   $ 70.2      $ 4.8      $ 103.1   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     Nine months ended September 30, 2011  

Concerts

   $ 62.2      $ 4.3       $ (0.7   $ 87.9      $ (5.0   $ (24.3

Ticketing

     204.3        3.9         (0.1     103.2        1.0        96.3   

Artist Nation

     35.0        27.8         1.3        37.2        (1.9     (29.4

eCommerce

     40.0        0.2         —          8.2        —          31.6   

Sponsorship

     98.0        0.5         —          0.2        —          97.3   

Other & Eliminations

     (0.5     —           0.4        (0.6     —          (0.3

Corporate

     (51.8     14.5         —          1.6        18.3        (86.2
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Live Nation

   $ 387.2      $ 51.2       $ 0.9      $ 237.7      $ 12.4      $ 85.0   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 
     Nine months ended September 30, 2010  

Concerts

   $ 43.7      $ 6.2       $ (2.0   $ 79.9      $ (2.3   $ (38.1

Ticketing

     175.1        10.7         5.2        80.8        7.4        71.0   

Artist Nation

     32.5        7.2         —          30.8        7.1        (12.6

eCommerce

     24.4        0.4         —          5.3        0.8        17.9   

Sponsorship

     88.1        0.4         —          0.2        0.1        87.4   

Other & Eliminations

     (0.4     —           —          (1.7     —          1.3   

Corporate

     (57.4     21.9         —          1.9        23.3        (104.5
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Total Live Nation

   $ 306.0      $ 46.8       $ 3.2      $ 197.2      $ 36.4      $ 22.4   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

9


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

 

in ($ in millions)    Q3 2011     Q3 2010  

Adjusted operating income

   $ 203.6      $ 190.7   

Less: Cash interest expense—net

     (26.1     (25.6

Cash taxes

     (11.1     (14.4

Maintenance capital expenditures

     (12.7     (7.4

Distributions to noncontrolling interests

     (2.3     (2.3

Distributions from investments in nonconsolidated affiliates

     0.8        4.2   
  

 

 

   

 

 

 

Free cash flow

   $ 152.2      $ 145.2   

Revenue generating capital expenditures

     (11.8     (11.4
  

 

 

   

 

 

 

Net

   $ 140.4      $ 133.8   
  

 

 

   

 

 

 

 

in ($ in millions)    9 months
2011
    9 months
2010
 

Adjusted operating income

   $ 387.2      $ 306.0   

Less: Cash interest expense—net

     (77.9     (75.2

Cash taxes

     (34.3     (42.2

Maintenance capital expenditures

     (41.6     (30.0

Distributions to noncontrolling interests

     (12.3     (10.5

Distributions from investments in nonconsolidated affiliates

     2.4        5.2   
  

 

 

   

 

 

 

Free cash flow

   $ 223.5      $ 153.3   

Revenue generating capital expenditures

     (27.6     (18.6
  

 

 

   

 

 

 

Net

   $ 195.9      $ 134.7   
  

 

 

   

 

 

 

Reconciliation of Cash and Cash Equivalents to Free Cash

 

($ in millions)    September 30,
2011
 

Cash and cash equivalents

   $ 782.6   

Client cash

     (333.9

Deferred revenue—event related

     (212.6

Accrued artist fees

     (11.2

Collections on behalf of others

     (35.6

Prepaids related to artist settlements/events

     167.3   
  

 

 

 

Free cash

   $ 356.6   
  

 

 

 

 

10