Q1 Highlights: Company Delivers Best First Quarter
Ever
- Operating Income of $27
Million and AOI of $209
Million
- Ticketmaster Delivers Another Record Quarter - Operating
Income Up 3x, AOI Up 2x, Transacted GTV Up 39% (vs Q1
2019)
- Ticketmaster Growing Client Base - 7 Million Net New Tickets
Added
- Sponsorship Operating Income Up 83% and AOI Up 75% (vs Q1
2019)
- OCESA Financial Performance At 2019 Levels
2022 Outlook: Leading Indicators Point to Record Year
Ahead
- 70 Million Tickets Sold for 2022 Concerts, On Track for
Double-Digit Fan Growth This Year (vs 2019)
- Concert Bookings Up 44% Through Late April (vs
2019)
- $3.5 Billion in Event Related
Deferred Revenue, Up Nearly 2x (vs Q1 2019)
- Fan Demand for Best Seats Drives Concert Ticket Pricing Up
Double-Digits (vs 2019), While Entry Level Tickets Average Under
$35
- Fan Base at Operated Venues
Growing - 20 New Venues in 2022 Pipeline, 38 New Festivals
- Over 90% of Planned Sponsorship Net Revenue for 2022
Committed
LOS
ANGELES, May 5, 2022 /PRNewswire/ -- Live Nation
Entertainment, Inc. (NYSE: LYV) today released financial results
for the quarter ended March 31, 2022.
Momentum has picked up for all of our businesses over the course
of the first quarter, and as a result, we delivered financial
performance that greatly surpassed our previous expectations, with
operating income of $27 million and
AOI of $209 million.
Artists are back on the road and fan demand has never been
stronger, a reflection that live events remain a clear priority for
consumers as our social lives restart.
Ticketing Driving Momentum for
Record Year
Ticket buying serves as a leading indicator to our overall
business. Ticketmaster's strong first quarter performance drove the
company's overall profitability, and shows how well our concert and
sponsorship businesses are positioned to deliver record results
this year.
Despite some markets taking longer to re-open, the quarter was
our second highest ever for transacted GTV excluding refunds,
trailing only Q4 2021, with March being our highest month ever for
transacted GTV, excluding refunds.
In primary ticketing, we are now benefiting from the 17 million
net new fee bearing tickets we gained in 2021, which helped drive
transacted GTV for the quarter up 33% relative to Q1 2019.
This quarter we also added 7 million net new additional tickets
through new contracts with venues as well as content creators,
setting us up for ongoing growth this year and into 2023.
Our secondary ticketing GTV growth was even higher, up 106%
relative to Q1 2019, driven largely by: average resale ticket price
being up almost 20% relative to Q1 2019 as tremendous fan demand
pushed up the market pricing; Ticketmaster gaining additional
market share by effectively leveraging its team and league
partnerships across the NFL, NBA and other sporting events; and the
market growing at a double-digit pace, demonstrating high demand
for live events as well as how much runway there is to continue
pricing efficiently.
Fan demand and the signing of new contracts accelerated even
faster than expected this quarter, reinforcing that Ticketmaster is
the enterprise platform of choice for teams, artists and other
content creators, and continues to be the most effective fan
marketplace.
Sponsorship Delivering Record
Results
Sponsorship activity fully returned in Q1, delivering financial
results that well exceeded Q1 2019. We are seeing growth
along a number of dimensions – expansion of existing relationships,
new categories expanding our breadth of partners and new ad units
being created both on-site and online.
The number of strategic sponsors that generated over
$1 million of revenue per year has
risen by close to 30% since 2019, with their committed spend up 70%
and accounting for 80% of our total sponsorship revenue.
About 60% of this growth has come from three categories of
particular priority over the past two years – technology, telecom
and purchase path integration – which have collectively more than
doubled their sponsorship since 2019.
Much of our focus with brand partners is how we collectively
elevate the fan experience. We have had great success with
this in recent years and so far this year through our partnership
with Verizon, we started powering our venues with cutting edge 5G
connectivity and launched an initiative with Snap to give artists
Augmented Reality capabilities at shows and festivals.
At this point our sponsorship sales are up double digits
relative to this point in 2019, and we have sold 90% of our planned
sponsorship for the year, positioning us for continued strong
financial performance.
Concerts Trending to Record
Attendance in 2022
All leading indicators point to double-digit growth in fan
attendance at our concerts this year relative to 2019.
Approximately 11 million fans attended our shows in the first
quarter compared to 15 million in Q1 2019 – this was expected as we
planned for limited concert activity in the early months of the
year to allow for markets to open.
More importantly, we continued to build our flywheel, with over
70 million tickets now sold for shows in 2022, up 36% compared to
this point in 2019, and committed show count is up 44% through late
April relative to 2019, setting us up for continued ticket sales
over the year.
We continue to see that fans are showing up to the concerts they
have tickets for, with attendance rates in the U.S. across all
venue types at 2019 levels, and no-shows generally in the
mid-single digits.
The industry continues to embrace market-based pricing,
particularly on the best tickets, shifting $500 million to artists for shows this year,
resulting from a double-digit increase in ticket pricing, and
reducing the price arbitrage in the secondary market. At the
same time, in the U.S., the average entry level price to get in and
enjoy the show remains under $35,
approachable for almost all fans.
Early reads on consumer spending at our shows across the U.S.
and U.K. also indicate fans continue their spending when they get
to the show. We had two million fans attend shows at our
theaters and clubs in the first quarter, with average per fan
revenue up 30% relative to Q1 2019. We also had four
festivals over the past few months, totaling over 300 thousand
fans, with average per fan revenue up over 30% compared to their
2019 events.
Record Summer Season
Ahead
Looking ahead to the summer and the rest of the year, we remain
optimistic that we are just getting going as all leading indicators
reinforce record activity levels and financial results.
Ticketing sales were at a record level in Q1, with momentum
building over February and March. We have sold almost 20
million more tickets to our concerts this year than at this point
in 2019, with a large number of tours still to go on-sale.
Concert fans are showing no signs of slowing down – they are paying
more for the best tickets, attending the shows, and spending more
onsite as they create lifetime memories.
We are also continuing to build Venue Nation, our platform of
operated venues, with a pipeline of 20 venues, including the
recently opened Moody's Center
arena in Austin, in addition to
adding 38 more festivals this year.
Sponsors are looking to spend more than ever on live
entertainment and Live Nation's scale and global platform is making
us the partner of choice. While the U.S. and U.K. have driven
much of our activity over the past year, the rest of the world is
now rapidly opening up. OCESA's financial performance for the
quarter exceeded its 2019 Q1 results, and both Latin America and Western Europe are expected to have record
attendance for our concerts this year.
I continue to expect this to be the start of our run. The
global addressable market for concerts, ticketing and sponsorship
all provide a long runway for continued growth. We have over
60 tours already under discussion for 2023 – our earliest indicator
of next year, and great positioning for ongoing growth.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
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.
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
– FIRST QUARTER
|
(unaudited; $ in
millions)
|
|
|
Q1 2022
Reported
|
|
Q1 2021
Reported
|
|
Growth
|
|
Q1 2022
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
1,207.8
|
|
$
239.4
|
|
*
|
|
$
1,216.9
|
|
*
|
Ticketing
|
480.4
|
|
28.3
|
|
*
|
|
484.0
|
|
*
|
Sponsorship & Advertising
|
115.7
|
|
22.6
|
|
*
|
|
117.0
|
|
*
|
Other and Eliminations
|
(1.1)
|
|
0.3
|
|
*
|
|
(1.1)
|
|
*
|
|
$
1,802.8
|
|
$
290.6
|
|
*
|
|
$
1,816.8
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$ (149.6)
|
|
$ (145.4)
|
|
(3) %
|
|
$ (152.3)
|
|
(5) %
|
Ticketing
|
154.8
|
|
(120.7)
|
|
*
|
|
154.5
|
|
*
|
Sponsorship & Advertising
|
59.0
|
|
(6.4)
|
|
*
|
|
60.0
|
|
*
|
Other and Eliminations
|
(1.7)
|
|
(0.4)
|
|
*
|
|
(1.8)
|
|
*
|
Corporate
|
(35.4)
|
|
(30.3)
|
|
(17) %
|
|
(35.4)
|
|
(17) %
|
|
$
27.1
|
|
$ (303.2)
|
|
*
|
|
$
25.0
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
(49.2)
|
|
$
(74.5)
|
|
34%
|
|
$
(50.3)
|
|
32%
|
Ticketing
|
206.2
|
|
(62.8)
|
|
*
|
|
206.5
|
|
*
|
Sponsorship & Advertising
|
69.7
|
|
3.5
|
|
*
|
|
70.7
|
|
*
|
Other and Eliminations
|
(4.4)
|
|
(2.2)
|
|
*
|
|
(4.5)
|
|
*
|
Corporate
|
(13.3)
|
|
(15.7)
|
|
15 %
|
|
(13.3)
|
|
15 %
|
|
$
209.0
|
|
$ (151.7)
|
|
*
|
|
$
209.1
|
|
*
|
|
* percentages are
not meaningful
|
KEY OPERATING
METRICS
|
(unaudited)
|
|
|
Q1 2022
|
|
Q1 2021
|
|
(in thousands except estimated
events)
|
Concerts (1)
|
|
|
|
Estimated events:
|
|
|
|
North America
|
4,716
|
|
304
|
International
|
1,891
|
|
364
|
Total estimated
events
|
6,607
|
|
668
|
Estimated fans:
|
|
|
|
North America
|
6,780
|
|
69
|
International
|
4,020
|
|
429
|
Total estimated
fans
|
10,800
|
|
498
|
Ticketing (2)
|
|
|
|
Estimated number of fee-bearing tickets
|
51,380
|
|
6,593
|
Estimated number of non-fee-bearing tickets
|
59,912
|
|
10,558
|
Total estimated tickets
sold
|
111,292
|
|
17,151
|
_________
|
|
|
|
(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. Fee-bearing tickets
sold above are net of refunds of 5.2 million and
3.0 million tickets for the three months ended March 31,
2022 and 2021, respectively.
|
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)
|
Q1 2022
|
|
Q1 2021
|
Net cash provided by operating
activities
|
$
1,198.3
|
|
$
74.6
|
Less: Changes in
operating assets and liabilities (working capital)
|
(1,056.4)
|
|
(289.0)
|
Free cash flow from
earnings
|
$
141.9
|
|
$
(214.4)
|
Less: Maintenance
capital expenditures
|
(13.8)
|
|
(5.7)
|
Distributions to noncontrolling interests
|
(39.0)
|
|
(5.6)
|
Free cash flow — adjusted
|
$
89.1
|
|
$
(225.7)
|
|
|
|
|
Net cash provided by (used in) investing
activities
|
$
(115.0)
|
|
$
10.1
|
|
|
|
|
Net cash provided by (used in) financing
activities
|
$
(75.0)
|
|
$
417.0
|
Reconciliation of Free Cash to Cash and Cash
Equivalents
|
($ in millions)
|
March 31,
2022
|
Cash and cash
equivalents
|
$
5,871.9
|
Client cash
|
(1,506.3)
|
Deferred revenue —
event-related
|
(3,456.9)
|
Accrued artist
fees
|
(59.3)
|
Collections on behalf
of others
|
(78.0)
|
Prepaid expenses —
event-related
|
609.1
|
Free cash
|
$
1,380.5
|
- As of March 31, 2022, total cash and cash equivalents were
$5.9 billion, which includes
$1.5 billion in ticketing client cash
and $1.4 billion in free cash. This
free cash, along with $563.1 million
of available debt capacity, gives the company $2.0 billion of available liquidity. The
company believes this level of liquidity will provide it with the
runway it needs as more shows return.
- Event-related deferred revenue was $3.5
billion as of March 31, 2022 compared to $1.5 billion as of March 31, 2021.
- For the three months ended March 31, 2022, net cash
provided by operating activities was $1.2
billion and free cash flow — adjusted was $89.1 million.
- The company currently expects capital expenditures for the full
year to be approximately $375 million
in 2022.
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 regarding leading indicators pointing
to a record year for activity levels and financial results in 2022,
with the company on track to have double-digit fan growth versus
2019 including expected record attendance at the company's concerts
in both Latin America and
Western Europe, with the company's
sponsorship and advertising and concert businesses positioned to
deliver record results in 2022; expected ongoing growth in primary
ticketing in 2022 and into 2023; the runway to continue pricing
secondary ticketing efficiently; the company's positioning for
continued strong financial performance in its sponsorship and
advertising business; the current pipeline of venues for Venue
Nation; the company's belief that its global addressable market for
concerts, ticketing, and sponsorship and advertising provide long
runway for continued growth, as well as the company's positioning
for ongoing growth; the company's belief that its current level of
liquidity will provide it with the runway it needs as more shows
return; and the company's current expectations for capital
expenditures for 2022. 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. 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.
Reconciliations of Certain Non-GAAP Measures to Their Most
Directly Comparable GAAP Measures (Unaudited)
Reconciliation of Adjusted Operating Income (Loss) to
Operating Income (Loss)
|
|
($ in millions)
|
Operating income (loss)
|
|
Stock-based compensation
expense
|
|
Loss
(gain) on
disposal
of
operating
assets
|
|
Depreciation and
amortization
|
|
Amortization of non-recoupable ticketing contract
advances
|
|
Acquisition expenses
|
|
Adjusted operating income (loss)
reported
|
|
Foreign exchange impact
|
|
Adjusted operating income (loss) constant
currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$ (149.6)
|
|
$
25.7
|
|
$
1.9
|
|
$
61.2
|
|
$
—
|
|
$
11.6
|
|
$
(49.2)
|
|
$
(1.1)
|
|
$
(50.3)
|
Ticketing
|
154.8
|
|
2.4
|
|
(0.2)
|
|
28.1
|
|
21.2
|
|
(0.1)
|
|
206.2
|
|
0.3
|
|
206.5
|
Sponsorship &
Advertising
|
59.0
|
|
2.5
|
|
—
|
|
8.2
|
|
—
|
|
—
|
|
69.7
|
|
1.0
|
|
70.7
|
Other &
Eliminations
|
(1.7)
|
|
(0.1)
|
|
—
|
|
—
|
|
(2.7)
|
|
0.1
|
|
(4.4)
|
|
(0.1)
|
|
(4.5)
|
Corporate
|
(35.4)
|
|
18.7
|
|
—
|
|
3.0
|
|
—
|
|
0.4
|
|
(13.3)
|
|
—
|
|
(13.3)
|
Total Live
Nation
|
$
27.1
|
|
$
49.2
|
|
$
1.7
|
|
$
100.5
|
|
$
18.5
|
|
$
12.0
|
|
$ 209.0
|
|
$
0.1
|
|
$ 209.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$ (145.4)
|
|
$
17.5
|
|
$
0.1
|
|
$
62.9
|
|
$
—
|
|
$
(9.6)
|
|
$
(74.5)
|
|
$
—
|
|
$
(74.5)
|
Ticketing
|
(120.7)
|
|
7.8
|
|
—
|
|
36.5
|
|
12.4
|
|
1.2
|
|
(62.8)
|
|
—
|
|
(62.8)
|
Sponsorship &
Advertising
|
(6.4)
|
|
2.8
|
|
—
|
|
7.2
|
|
—
|
|
(0.1)
|
|
3.5
|
|
—
|
|
3.5
|
Other &
Eliminations
|
(0.4)
|
|
—
|
|
—
|
|
—
|
|
(1.8)
|
|
—
|
|
(2.2)
|
|
—
|
|
(2.2)
|
Corporate
|
(30.3)
|
|
11.9
|
|
—
|
|
2.3
|
|
—
|
|
0.4
|
|
(15.7)
|
|
—
|
|
(15.7)
|
Total Live
Nation
|
$ (303.2)
|
|
$
40.0
|
|
$
0.1
|
|
$
108.9
|
|
$
10.6
|
|
$
(8.1)
|
|
$ (151.7)
|
|
$
—
|
|
$ (151.7)
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(unaudited)
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
(in thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$ 5,871,905
|
|
$ 4,884,729
|
Accounts receivable, less allowance of $50,225 and $50,491,
respectively
|
1,210,007
|
|
1,066,573
|
Prepaid expenses
|
963,227
|
|
654,894
|
Restricted cash
|
3,114
|
|
3,063
|
Other current assets
|
62,182
|
|
74,834
|
Total current
assets
|
8,110,435
|
|
6,684,093
|
Property, plant and
equipment, net
|
1,086,307
|
|
1,091,929
|
Operating lease
assets
|
1,649,982
|
|
1,538,911
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
1,004,446
|
|
1,026,338
|
Indefinite-lived intangible assets
|
368,943
|
|
369,028
|
Goodwill
|
2,604,811
|
|
2,590,869
|
Long-term
advances
|
576,601
|
|
552,697
|
Other long-term
assets
|
605,077
|
|
548,453
|
Total
assets
|
$
16,006,602
|
|
$
14,402,318
|
LIABILITIES AND EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$ 1,804,348
|
|
$ 1,532,345
|
Accounts payable
|
67,008
|
|
110,623
|
Accrued expenses
|
1,511,446
|
|
1,645,906
|
Deferred revenue
|
4,049,866
|
|
2,774,792
|
Current portion of long-term debt, net
|
611,319
|
|
585,254
|
Current portion of operating lease liabilities
|
139,050
|
|
123,715
|
Other current liabilities
|
95,450
|
|
83,087
|
Total current
liabilities
|
8,278,487
|
|
6,855,722
|
Long-term debt,
net
|
5,146,681
|
|
5,145,484
|
Long-term operating
lease liabilities
|
1,708,610
|
|
1,606,064
|
Other long-term
liabilities
|
436,789
|
|
431,581
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
581,652
|
|
551,921
|
Stockholders'
equity
|
|
|
|
Common stock
|
2,235
|
|
2,220
|
Additional paid-in capital
|
2,888,551
|
|
2,897,695
|
Accumulated deficit
|
(3,317,397)
|
|
(3,327,737)
|
Cost
of shares held in treasury
|
(6,865)
|
|
(6,865)
|
Accumulated other comprehensive loss
|
(84,341)
|
|
(147,964)
|
Total Live Nation stockholders'
equity
|
(517,817)
|
|
(582,651)
|
Noncontrolling
interests
|
372,200
|
|
394,197
|
Total
equity
|
(145,617)
|
|
(188,454)
|
Total liabilities and
equity
|
$
16,006,602
|
|
$
14,402,318
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
|
(in thousands, except share and per
share data)
|
Revenue
|
$
1,802,808
|
|
$
290,609
|
Operating
expenses:
|
|
|
|
Direct operating expenses
|
1,071,022
|
|
133,966
|
Selling, general and administrative expenses
|
570,182
|
|
322,853
|
Depreciation and amortization
|
100,469
|
|
108,876
|
Loss on disposal of operating assets
|
1,665
|
|
138
|
Corporate expenses
|
32,410
|
|
27,948
|
Operating income
(loss)
|
27,060
|
|
(303,172)
|
Interest
expense
|
66,773
|
|
70,830
|
Interest
income
|
(7,564)
|
|
(1,149)
|
Equity in earnings of
nonconsolidated affiliates
|
(4,288)
|
|
(581)
|
Loss (gain) from sale
of investments in nonconsolidated affiliates
|
132
|
|
(55,933)
|
Other expense (income),
net
|
9,267
|
|
(6)
|
Loss before income
taxes
|
(37,260)
|
|
(316,333)
|
Income tax
expense
|
11,696
|
|
6,389
|
Net loss
|
(48,956)
|
|
(322,722)
|
Net income (loss)
attributable to noncontrolling interests
|
1,226
|
|
(15,529)
|
Net loss attributable
to common stockholders of Live Nation
|
$
(50,182)
|
|
$
(307,193)
|
|
|
|
|
Basic and diluted net
loss per common share available to common stockholders of
Live Nation
|
$
(0.39)
|
|
$
(1.44)
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
Basic and diluted
|
221,890,625
|
|
214,531,958
|
|
|
|
|
|
|
|
|
Reconciliation to net
loss available to common stockholders of Live Nation:
|
Net
loss attributable to common stockholders of Live Nation
|
$
(50,182)
|
|
$
(307,193)
|
Accretion of redeemable noncontrolling interests
|
(35,714)
|
|
(916)
|
Basic and diluted net
loss available to common stockholders of Live Nation
|
$
(85,896)
|
|
$
(308,109)
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
|
(in thousands)
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
Net loss
|
$
(48,956)
|
|
$
(322,722)
|
Reconciling
items:
|
|
|
|
Depreciation
|
50,760
|
|
56,975
|
Amortization
|
49,709
|
|
51,901
|
Amortization of non-recoupable ticketing contract
advances
|
18,527
|
|
10,621
|
Amortization of debt issuance costs and discounts
|
4,114
|
|
9,196
|
Non-cash compensation expense
|
49,241
|
|
40,017
|
Unrealized changes in fair value of contingent
consideration
|
10,904
|
|
(9,440)
|
Loss (gain) on sale of investments in nonconsolidated
affiliates
|
132
|
|
(53,899)
|
Other, net
|
7,500
|
|
2,921
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
Decrease (increase) in accounts receivable
|
(152,725)
|
|
21,861
|
Decrease (increase) in prepaid expenses and other
assets
|
(338,017)
|
|
4,704
|
Increase (decrease) in accounts payable, accrued expenses and
other liabilities
|
236,584
|
|
(39,044)
|
Increase in deferred revenue
|
1,310,527
|
|
301,483
|
Net cash provided by operating
activities
|
1,198,300
|
|
74,574
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
|
|
|
Advances of notes
receivable
|
(18,399)
|
|
(10,784)
|
Collections of notes
receivable
|
6,709
|
|
884
|
Investments made in
nonconsolidated affiliates
|
(26,243)
|
|
(5,506)
|
Purchases of property,
plant and equipment
|
(62,525)
|
|
(23,763)
|
Cash paid for
acquisitions, net of cash acquired
|
(13,962)
|
|
(6,132)
|
Proceeds from sale of
investments in nonconsolidated affiliates
|
332
|
|
60,308
|
Other, net
|
(865)
|
|
(4,899)
|
Net cash provided by (used in)
investing activities
|
(114,953)
|
|
10,108
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
|
|
|
Proceeds from long-term
debt, net of debt issuance costs
|
700
|
|
501,366
|
Payments on long-term
debt
|
(12,784)
|
|
(80,316)
|
Contributions from
noncontrolling interests
|
5,712
|
|
1,722
|
Distributions to
noncontrolling interests
|
(38,966)
|
|
(5,616)
|
Proceeds from exercise
of stock options
|
10,907
|
|
25,794
|
Taxes paid for net
share settlement of equity awards
|
(36,568)
|
|
(19,944)
|
Other, net
|
(4,042)
|
|
(5,989)
|
Net cash provided by (used in) financing
activities
|
(75,041)
|
|
417,017
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(21,079)
|
|
(30,681)
|
Net increase in cash, cash
equivalents, and restricted cash
|
987,227
|
|
471,018
|
Cash, cash equivalents
and restricted cash at beginning of period
|
4,887,792
|
|
2,546,439
|
Cash, cash equivalents
and restricted cash at end of period
|
$ 5,875,019
|
|
$ 3,017,457
|
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SOURCE Live Nation Entertainment