LOS
ANGELES, July 27, 2023 /PRNewswire/ --
"Live music is bigger than ever, with global demand driving
the industry to record levels. There's a more diverse pipeline of
artists breaking from all corners of the world, and at the same
time tours are going to more markets - particularly in Latin America and Asia. This was our strongest second quarter
ever, with 2023 on pace to be a record year, and early indicators
for 2024 giving us confidence in continued
growth." – Michael
Rapino, President and CEO, Live Nation
Entertainment
2Q23 FINANCIAL OVERVIEW
(vs 2Q22, reported
FX)
- Revenue Up 27% to $5.6
Billion
- Operating Income Up 21% to $386
Million
- AOI Up 23% to $590 Million
- Operating Cash Flow of $491
Million
- Free Cash Flow - Adjusted of $407
Million, Converting 69% of AOI
- EPS Up 55% to $1.02
View how these results compare to past quarters in the 2Q23
Trended Results
Grid:
https://investors.livenationentertainment.com/financial-information/financial-results
OUTLOOK: Record 2023 Ahead and Continued Growth into
2024
(based on leading indicators through
mid-July)
- Record number of fans expected: Over 117 million tickets
sold year-to-date for Live Nation shows this year, up 20%
year-over-year
- Record Ticketmaster sales expected: 151 million reported
fee-bearing tickets sold year-to-date, up 22% year-over-year; on
track to manage 600 million tickets including selling 300 million
fee-bearing tickets this year
- Live creates unique advertising opportunity: Sponsorship
pacing to double-digit operating income and AOI growth
- Even more events ahead: $4.3
billion in event-related deferred revenue, up 37% vs 2Q22,
setting up double-digit attendance growth in Q3
- Growing global artist pipeline: International acts
doubled representation in top 50 tours over last five years, more
acts touring globally and visiting 42% more countries
- Early 2024 pipeline up for arena/amphitheater/stadium
shows confirmed and with offers in
LIVE NATION CONCERTS:
Record second quarter for Concerts (vs 2Q22):
- Revenue up 29% to $4.6
billion
- AOI up 37% to $168 million
- Full-year margin expansion expected relative to 2022
Attendance growth globally, led by international markets
(vs 2Q22):
- Stadiums: up 28% to 8.0 million fans, led by Europe and Asia
Pacific
- Arenas: up 19% to 10.7 million fans, largely from Canada, Asia
Pacific and Latin
America
- Festivals: up 14% to 4.5 million fans, driven by global demand
across all our markets
- YTD overall fan growth of 25% with International markets up 46%
and North America up 8%
- Number of tickets sold per show higher with on-sales and close
periods both performing well
- On track to invest over $12
billion in putting on artists' shows in 2023, up 30% from
2022
VENUE NATION:
Growing Venue Nation:
- Expect double-digit fan count growth at operated venues in 2023
relative to 50 million fans in 2022
- Per-fan profitability increases double-digits, fueled by growth
in sponsorship and on-site spending across our operated venues
including amphitheaters, festivals, and theaters & clubs
- Ancillary per fan revenue at amphitheaters up double-digits to
over $40
- With 400 venues and festivals globally, pipeline continues to
grow with key developments in Asia
including South Korea and
Singapore, Latin America, and Europe
TICKETMASTER:
Fan demand and client wins drive records results (vs
2Q22):
- Revenue up 23% to $709
million
- AOI up 27% to $293 million
- 14 million net new clients tickets added YTD, with half coming
from International markets
- Full-year margins expected to remain in the high 30s
Sale of concert tickets leading ticketing growth (vs
2Q22):
- Total fee-bearing GTV up 25% to $8.7 billion with North
America up 22% and International up 34%; over 80% of the
growth driven by global concert ticket sales
- Ticket volume YTD up double-digits for both primary and
secondary tickets
- Average secondary ticket price roughly 2x primary, showing the
extent to which tickets remain priced below market value
LIVE NATION SPONSORSHIP:
Growing sponsorships reflect attractiveness of fan base and
onsite connection (vs 2Q22):
- Revenue up 15% to $303 million,
with on-site up 16% and online up 9%
- AOI up 14% to $203 million
- Full-year margins expected to remain in the low 60s
Over 90% of 2023 planned sponsorship committed:
- Top clients with multi-million dollar, multi-year commitments,
made up of over 100 partners, accounted for ~85% of our
revenue
- New partners include Diageo and Chateau St. Michelle;
renewed multi-year deals with Salesforce and Gildan
ADDITIONAL FINANCIAL INFORMATION:
- Capital expenditures of $158
million YTD, driven by investments in on-site venue
enhancement, expansion of our venue portfolio, and continued
development of ticketing products for both enterprises and fans.
2023 capital expenditures forecast remains at $450 million, two-thirds on revenue-generating
projects
- Below-the-line impact to 2023 EPS - accretion expected to
be approximately 60% higher than 2022, largely driven by OCESA
performance
- Foreign exchange not expected to materially impact 2023
revenue, operating income or AOI
- For the first six months of 2023, our fully diluted share
count was 230.5m, flat compared to
the same period in 2022
Balance sheet and liquidity remains strong:
- 2Q23 ended with $7.1 billion in
cash and cash equivalents, including $1.4
billion in ticketing client cash and $2.3 billion in free cash
- Including $0.6 billion of
available debt capacity, there is $2.9
billion of liquidity for reinvestments and future growth
opportunities, including a robust global M&A pipeline
- 2Q23 net leverage is 2.6x
- Approximately 87% of debt is at a fixed rate, with an average
cost of debt of 4.7%
- Projected Free Cash Flow – Adjusted: Percentage conversion for
the full-year remains in the low 60s
The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial
performance, operational matters and potentially other material
developments. Interested parties should visit the "News / Events"
section of the company's website at
investors.livenationentertainment.com to listen to the webcast.
Supplemental statistical and financial information to be provided
on the call, if any, will be posted to the "Financial Info" section
of the website. A replay of the webcast will also be available on
the Live Nation website. The link to the 2Q23 Trended Results Grid
is provided above for convenience and such grid is not a part of,
or incorporated into, this press release or any SEC filings that
include this press release.
Notice Regarding Financial Statements
The company has
provided certain financial statements at the end of this press
release for reference. These financial statements should be
read in conjunction with the full financial statements, and the
notes thereto, set forth in the company's Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission today and
available on the SEC's website at sec.gov.
About Live Nation Entertainment:
Live Nation Entertainment, Inc. (NYSE: LYV) is the world's leading
live entertainment company comprised of global market leaders:
Ticketmaster, Live Nation Concerts, and Live Nation Media &
Sponsorship. For additional information, visit
investors.livenationentertainment.com.
FINANCIAL HIGHLIGHTS
– SECOND QUARTER
|
(unaudited; $ in
millions)
|
|
|
Q2 2023
Reported
|
|
Q2 2022
Reported
|
|
Growth
|
|
Q2 2023
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$ 4,633.3
|
|
3,597.8
|
|
29 %
|
|
$ 4,621.3
|
|
28 %
|
Ticketing
|
709.3
|
|
575.3
|
|
23 %
|
|
707.5
|
|
23 %
|
Sponsorship &
Advertising
|
302.9
|
|
263.8
|
|
15 %
|
|
299.4
|
|
13 %
|
Other and
Eliminations
|
(14.8)
|
|
(2.7)
|
|
*
|
|
(14.9)
|
|
*
|
|
$ 5,630.7
|
|
$ 4,434.2
|
|
27 %
|
|
$ 5,613.3
|
|
27 %
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Income
|
$
386.4
|
|
$
318.7
|
|
21 %
|
|
$
381.0
|
|
20 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
168.1
|
|
123.0
|
|
37 %
|
|
$
164.5
|
|
34 %
|
Ticketing
|
292.7
|
|
230.8
|
|
27 %
|
|
290.4
|
|
26 %
|
Sponsorship &
Advertising
|
203.1
|
|
178.3
|
|
14 %
|
|
201.8
|
|
13 %
|
Other and
Eliminations
|
(18.2)
|
|
(2.1)
|
|
*
|
|
(18.2)
|
|
*
|
Corporate
|
(56.0)
|
|
(50.4)
|
|
(11) %
|
|
(56.0)
|
|
(11) %
|
|
$
589.7
|
|
$
479.6
|
|
23 %
|
|
$
582.5
|
|
21 %
|
|
* Percentages are not
meaningful
|
FINANCIAL HIGHLIGHTS
– SIX MONTHS
|
(unaudited; $ in
millions)
|
|
|
6 Months
2023
Reported
|
|
6 Months
2022
Reported
|
|
Growth
|
|
6 Months
2023
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$ 6,914.5
|
|
$ 4,805.6
|
|
44 %
|
|
$ 6,949.3
|
|
45 %
|
Ticketing
|
1,387.1
|
|
1,055.7
|
|
31 %
|
|
1,391.9
|
|
32 %
|
Sponsorship &
Advertising
|
473.0
|
|
379.5
|
|
25 %
|
|
469.2
|
|
24 %
|
Other and
Eliminations
|
(16.5)
|
|
(3.8)
|
|
*
|
|
(16.5)
|
|
*
|
|
$ 8,758.1
|
|
$ 6,237.0
|
|
40 %
|
|
$ 8,793.9
|
|
41 %
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Income (Loss)
|
$
529.1
|
|
$
345.8
|
|
53 %
|
|
$
529.1
|
|
53 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
168.9
|
|
$
73.8
|
|
*
|
|
$
167.1
|
|
*
|
Ticketing
|
563.7
|
|
437.0
|
|
29 %
|
|
561.8
|
|
29 %
|
Sponsorship &
Advertising
|
298.7
|
|
248.0
|
|
20 %
|
|
297.8
|
|
20 %
|
Other and
Eliminations
|
(26.1)
|
|
(6.5)
|
|
*
|
|
(26.1)
|
|
*
|
Corporate
|
(95.8)
|
|
(63.7)
|
|
(50) %
|
|
(95.8)
|
|
(50) %
|
|
$
909.4
|
|
$
688.6
|
|
32 %
|
|
$
904.8
|
|
31 %
|
|
* Percentages are not
meaningful
|
Reconciliation of
Adjusted Operating Income to Operating Income
(Unaudited)
|
|
|
Q2
2023
|
Q2
2022
|
|
6 Months
2023
|
6 Months
2022
|
|
(in
millions)
|
Adjusted Operating
Income
|
$
589.7
|
$
479.6
|
|
$
909.4
|
$
688.6
|
Acquisition
expenses
|
24.8
|
9.5
|
|
38.2
|
21.6
|
Amortization of
non-recoupable ticketing contract advances
|
21.2
|
21.9
|
|
41.6
|
40.4
|
Depreciation and
amortization
|
136.5
|
115.9
|
|
251.7
|
216.4
|
Loss on sale of
operating assets
|
(7.0)
|
1.1
|
|
(6.5)
|
2.7
|
Stock-based
compensation expense
|
27.8
|
12.5
|
|
55.3
|
61.7
|
Operating
income
|
$
386.4
|
$
318.7
|
|
$
529.1
|
$
345.8
|
KEY OPERATING
METRICS
|
(unaudited)
|
|
|
Q2
2023
|
|
Q2
2022
|
|
6 Months
2023
|
|
6 Months
2022
|
|
(in thousands except
estimated events)
|
Concerts
(1)
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
North
America
|
8,111
|
|
8,057
|
|
14,420
|
|
12,793
|
International
|
4,130
|
|
4,491
|
|
7,726
|
|
6,469
|
Total estimated
events
|
12,241
|
|
12,548
|
|
22,146
|
|
19,262
|
Estimated
fans:
|
|
|
|
|
|
|
|
North
America
|
18,474
|
|
17,427
|
|
26,131
|
|
24,255
|
International
|
18,599
|
|
16,415
|
|
29,842
|
|
20,484
|
Total estimated
fans
|
37,073
|
|
33,842
|
|
55,973
|
|
44,739
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
78,879
|
|
71,966
|
|
151,145
|
|
123,529
|
Estimated number of
non-fee-bearing tickets
|
71,236
|
|
67,847
|
|
144,436
|
|
127,730
|
Total estimated
tickets sold
|
150,115
|
|
139,813
|
|
295,581
|
|
251,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Events generally
represent a single performance by an artist. Fans generally
represent the number of people who attend an event. Festivals are
counted as one event in the quarter in which the festival begins,
but the number of fans is based on the days the fans were present
at the festival and thus can be reported across multiple quarters.
Events and fan attendance metrics are estimated each
quarter.
|
|
|
(2)
|
The fee-bearing tickets
estimated above include primary and secondary tickets that are sold
using our Ticketmaster systems or that we issue through affiliates.
This includes primary tickets sold during the year regardless of
event timing, except for our own events where our concert promoters
control ticketing which are reported when the events occur. The
non-fee-bearing tickets estimated above include primary tickets
sold using our Ticketmaster systems, through season seat packages
and our venue clients' box offices, along with tickets sold on our
"do it yourself" platform. These ticket metrics are net of any
refunds requested and any cancellations that occurred during the
period, which may result in a negative number.
|
Reconciliation of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation of
Free Cash Flow — Adjusted to Net
Cash Provided by Operating Activities
|
($ in
millions)
|
Q2
2023
|
|
Q2
2022
|
Net cash provided by
operating activities
|
$
491.0
|
|
$
349.1
|
Less: Changes in
operating assets and liabilities (working capital)
|
34.7
|
|
78.5
|
Free cash flow from
earnings
|
$
525.7
|
|
$
427.6
|
Less: Maintenance
capital expenditures
|
(36.1)
|
|
(21.3)
|
Distributions to noncontrolling interests
|
(82.7)
|
|
(27.1)
|
Free cash flow —
adjusted
|
$
406.9
|
|
$
379.2
|
|
|
|
|
Net cash used in
investing activities
|
$
(239.4)
|
|
$
(129.7)
|
|
|
|
|
Net cash used in
financing activities
|
$
(152.2)
|
|
$
(62.6)
|
Reconciliation of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation of
Free Cash Flow — Adjusted to Net Cash Provided by Operating
Activities
|
($ in
millions)
|
6 Months
2023
|
|
6 Months
2022
|
Net cash provided by
operating activities
|
$
1,646.8
|
|
$
1,547.4
|
Less: Changes in
operating assets and liabilities (working capital)
|
(867.6)
|
|
(977.9)
|
Free cash flow from
earnings
|
$
779.2
|
|
$
569.5
|
Less: Maintenance
capital expenditures
|
(44.7)
|
|
$
(35.1)
|
Distributions to noncontrolling interests
|
(137.6)
|
|
(66.1)
|
Free cash flow —
adjusted
|
$
596.9
|
|
$
468.3
|
|
|
|
|
Net cash used in
investing activities
|
$
(299.2)
|
|
$
(244.7)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
$
73.5
|
|
$
(137.6)
|
Reconciliation of
Free Cash to Cash and Cash Equivalents
|
($ in
millions)
|
June 30,
2023
|
Cash and cash
equivalents
|
$
7,128.9
|
Client cash
|
(1,381.1)
|
Deferred revenue —
event-related
|
(4,330.1)
|
Accrued artist
fees
|
(230.9)
|
Collections on behalf
of others
|
(66.2)
|
Prepaid expenses —
event-related
|
1,209.0
|
Free cash
|
$
2,329.6
|
Forward-Looking Statements, Non-GAAP Financial Measures and
Reconciliations:
Certain statements in this press release, including the
Supplemental Information that follows, 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 the regarding the company's
anticipated prospects for a record 2023 and continued growth into
2024, with record number of fans and Ticketmaster sales expected
for 2023; anticipated double-digit attendance growth for the third
quarter of 2023; early indications for growth in the company's
Concerts pipeline for 2024; the company's pacing to invest over
$12 billion in putting on artists'
shows in 2023; current expectations for fee-bearing ticket sales in
2023; the company's sponsorship and advertising segment's operating
income and adjusted operating income growth pace for 2023; current
full-year margin expectations for each of the company's operating
segments; expectations for double-digit fan count growth at the
company's operated venues in 2023; continued growth in the
company's venue and festival pipeline; the company's current
expectations for capital expenditures for 2023; the company's
global M&A pipeline; projected free cash flow—adjusted
conversion for 2023; anticipated accretion from OCESA; and the
company's current expectation that there will be no material
foreign exchange impacts on revenue, operating income or adjusted
operating income for 2023.
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 potential
impact of any 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 herein.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP
financial measure that we define as operating income (loss) before
certain stock-based compensation expense, loss (gain) on disposal
of operating assets, depreciation and amortization (including
goodwill impairment), amortization of non-recoupable ticketing
contract advances and acquisition expenses (including transaction
costs, changes in the fair value of accrued acquisition-related
contingent consideration obligations, and acquisition-related
severance and compensation). We use AOI to evaluate the performance
of our operating segments. We believe 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 (loss), 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.
Constant Currency is a non-GAAP financial measure when
applied to a GAAP financial measure. We calculate currency impacts
as the difference between current period activity translated using
the current period's currency exchange rates and the comparable
prior period's currency exchange rates. We present constant
currency information to provide a framework for assessing how our
underlying businesses performed excluding the effect of foreign
currency rate fluctuations.
Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial
measure that we define as net cash provided by (used in) operating
activities less changes in operating assets and liabilities, less
maintenance capital expenditures, less distributions to
noncontrolling interest partners. We use FCF among other measures,
to evaluate the ability of operations to generate cash that is
available for purposes other than maintenance capital expenditures.
We believe that information about FCF provides investors with an
important perspective on the cash available to service debt, make
acquisitions, and for revenue generating capital expenditures. FCF
is not calculated or presented in accordance with GAAP. A
limitation of the use of FCF 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, FCF should be considered in addition to, and not as a
substitute for, net cash provided by (used in) operating activities
and other measures of financial performance reported in accordance
with GAAP. Furthermore, this measure may vary among other
companies; thus, FCF as presented herein may not be comparable to
similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that we define as
cash and cash equivalents less ticketing-related client funds, less
event-related deferred revenue, less accrued expenses due to
artists and cash collected on behalf of others, plus event-related
prepaids. We use free cash as a proxy for how much cash we have
available to, among other things, optionally repay debt balances,
make acquisitions and fund 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.
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(unaudited)
|
|
|
June 30,
2023
|
|
December 31,
2022
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
7,128,873
|
|
$
5,606,457
|
Accounts receivable, less allowance of $66,669 and $63,294,
respectively
|
1,889,652
|
|
1,465,383
|
Prepaid expenses
|
1,628,578
|
|
949,826
|
Restricted cash
|
7,769
|
|
5,917
|
Other current assets
|
122,076
|
|
131,939
|
Total current
assets
|
10,776,948
|
|
8,159,522
|
Property, plant and
equipment, net
|
1,904,020
|
|
1,487,663
|
Operating lease
assets
|
1,582,873
|
|
1,571,395
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
1,118,166
|
|
1,050,622
|
Indefinite-lived intangible assets, net
|
378,181
|
|
368,712
|
Goodwill
|
2,619,356
|
|
2,529,380
|
Long-term
advances
|
654,938
|
|
568,558
|
Other long-term
assets
|
890,608
|
|
724,989
|
Total
assets
|
$
19,925,090
|
|
$
16,460,841
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
1,670,651
|
|
$
1,791,025
|
Accounts payable
|
293,865
|
|
180,076
|
Accrued expenses
|
2,778,581
|
|
2,368,434
|
Deferred revenue
|
5,025,871
|
|
3,134,800
|
Current portion of long-term debt, net
|
51,489
|
|
620,032
|
Current portion of operating lease liabilities
|
146,931
|
|
140,232
|
Other current liabilities
|
56,143
|
|
68,716
|
Total current
liabilities
|
10,023,531
|
|
8,303,315
|
Long-term debt,
net
|
6,554,697
|
|
5,283,467
|
Long-term operating
lease liabilities
|
1,659,898
|
|
1,654,525
|
Other long-term
liabilities
|
562,016
|
|
455,971
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
753,519
|
|
669,766
|
Stockholders'
equity
|
|
|
|
Common stock
|
2,291
|
|
2,285
|
Additional paid-in capital
|
2,438,660
|
|
2,698,316
|
Accumulated deficit
|
(2,680,716)
|
|
(2,971,229)
|
Cost
of shares held in treasury
|
(6,865)
|
|
(6,865)
|
Accumulated other comprehensive income (loss)
|
59,253
|
|
(90,076)
|
Total Live Nation
stockholders' equity
|
(187,377)
|
|
(367,569)
|
Noncontrolling
interests
|
558,806
|
|
461,366
|
Total
equity
|
371,429
|
|
93,797
|
Total liabilities
and equity
|
$
19,925,090
|
|
$
16,460,841
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in thousands,
except share and per share data)
|
Revenue
|
$
5,630,723
|
|
$
4,434,174
|
|
$
8,758,113
|
|
$
6,236,982
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses
|
4,164,778
|
|
3,267,023
|
|
6,280,367
|
|
4,338,045
|
Selling, general and
administrative expenses
|
868,595
|
|
672,213
|
|
1,558,916
|
|
1,242,395
|
Depreciation and
amortization
|
136,514
|
|
115,927
|
|
251,699
|
|
216,396
|
Loss (gain) on
disposal of operating assets
|
(7,013)
|
|
1,065
|
|
(6,509)
|
|
2,730
|
Corporate
expenses
|
81,478
|
|
59,247
|
|
144,493
|
|
91,657
|
Operating
income
|
386,371
|
|
318,699
|
|
529,147
|
|
345,759
|
Interest
expense
|
81,995
|
|
68,435
|
|
171,210
|
|
135,208
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
18,366
|
|
—
|
Interest
income
|
(56,452)
|
|
(13,192)
|
|
(96,765)
|
|
(20,756)
|
Equity in earnings of
nonconsolidated affiliates
|
(5,558)
|
|
(1,955)
|
|
(9,665)
|
|
(6,243)
|
Other expense (income),
net
|
(6,599)
|
|
5,039
|
|
4,984
|
|
14,438
|
Income before income
taxes
|
372,985
|
|
260,372
|
|
441,017
|
|
223,112
|
Income tax
expense
|
41,648
|
|
31,995
|
|
65,488
|
|
43,691
|
Net income
|
331,337
|
|
228,377
|
|
375,529
|
|
179,421
|
Net income attributable
to noncontrolling interests
|
37,655
|
|
40,577
|
|
85,016
|
|
41,803
|
Net income attributable
to common stockholders of
Live Nation
|
$
293,682
|
|
$
187,800
|
|
$
290,513
|
|
$
137,618
|
|
|
|
|
|
|
|
|
Basic net income per
common share available to
common stockholders of Live Nation
|
$
1.04
|
|
$
0.69
|
|
$
0.78
|
|
$
0.31
|
Diluted net income per
common share available to
common stockholders of Live Nation
|
$
1.02
|
|
$
0.66
|
|
$
0.78
|
|
$
0.30
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
228,536,179
|
|
224,674,447
|
|
228,350,537
|
|
223,290,226
|
Diluted
|
243,660,186
|
|
243,634,764
|
|
230,490,937
|
|
231,367,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income available to common stockholders of Live Nation:
|
Net income
attributable to common
stockholders of Live Nation
|
$
293,682
|
|
$
187,800
|
|
$
290,513
|
|
$
137,618
|
Accretion of
redeemable noncontrolling
interests
|
(56,621)
|
|
(32,560)
|
|
(111,554)
|
|
(68,274)
|
Net income available to
common stockholders of
Live Nation—basic
|
$
237,061
|
|
$
155,240
|
|
$
178,959
|
|
$
69,344
|
Convertible debt
interest, net of tax
|
10,804
|
|
6,365
|
|
—
|
|
—
|
Net income available to
common stockholders of
Live Nation—diluted
|
$
247,865
|
|
$
161,605
|
|
$
178,959
|
|
$
69,344
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
375,529
|
|
$
179,421
|
Reconciling
items:
|
|
|
|
Depreciation
|
127,670
|
|
114,119
|
Amortization
|
124,029
|
|
102,277
|
Amortization of
non-recoupable ticketing contract advances
|
41,597
|
|
40,392
|
Amortization of debt
issuance costs and discounts
|
8,949
|
|
8,224
|
Loss on extinguishment
of debt
|
18,366
|
|
—
|
Stock-based
compensation expense
|
55,333
|
|
61,741
|
Unrealized changes in
fair value of contingent consideration
|
20,100
|
|
18,010
|
Equity in losses of
nonconsolidated affiliates, net of distributions
|
9,019
|
|
10,112
|
Provision for
uncollectible accounts receivable
|
20,120
|
|
25,702
|
Loss (gain) on
mark-to-market of equity investments
|
(26,408)
|
|
5,657
|
Other, net
|
4,918
|
|
3,928
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
Increase in accounts
receivable
|
(395,516)
|
|
(440,290)
|
Increase in prepaid
expenses and other assets
|
(836,672)
|
|
(607,939)
|
Increase in accounts
payable, accrued expenses and other liabilities
|
298,718
|
|
972,906
|
Increase in deferred
revenue
|
1,801,097
|
|
1,053,178
|
Net cash provided by
operating activities
|
1,646,849
|
|
1,547,438
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Advances of notes
receivable
|
(118,973)
|
|
(30,558)
|
Collections of notes
receivable
|
8,286
|
|
11,074
|
Investments made in
nonconsolidated affiliates
|
(26,336)
|
|
(46,699)
|
Purchases of property,
plant and equipment
|
(202,531)
|
|
(130,278)
|
Cash acquired from
(paid for) acquisitions, net of cash paid (acquired)
|
69,359
|
|
(39,854)
|
Purchases of intangible
assets
|
(35,088)
|
|
(6,129)
|
Other, net
|
6,077
|
|
(2,292)
|
Net cash used in
investing activities
|
(299,206)
|
|
(244,736)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from long-term
debt, net of debt issuance costs
|
986,766
|
|
4,009
|
Payments on long-term
debt
|
(614,030)
|
|
(22,638)
|
Contributions from
noncontrolling interests
|
14,716
|
|
13,448
|
Distributions to
noncontrolling interests
|
(137,609)
|
|
(66,114)
|
Purchases and sales of
noncontrolling interests, net
|
(88,239)
|
|
(27,138)
|
Payments for capped
call transactions
|
(75,500)
|
|
—
|
Proceeds from exercise
of stock options
|
4,999
|
|
26,051
|
Taxes paid for net
share settlement of equity awards
|
(8,464)
|
|
(41,731)
|
Payments for deferred
and contingent consideration
|
(9,440)
|
|
(22,508)
|
Other, net
|
315
|
|
(1,014)
|
Net cash provided by
(used in) financing activities
|
73,514
|
|
(137,635)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
103,111
|
|
(186,703)
|
Net increase in cash,
cash equivalents, and restricted cash
|
1,524,268
|
|
978,364
|
Cash, cash equivalents
and restricted cash at beginning of period
|
5,612,374
|
|
4,887,792
|
Cash, cash equivalents
and restricted cash at end of period
|
$
7,136,642
|
|
$
5,866,156
|
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SOURCE Live Nation Entertainment