3Q Financial Overview (vs 2019): Results Demonstrate the
Power of Our Flywheel
- Reported Revenue Up 63% to $6.2
Billion
- Reported Operating Income Up 95% to $506 Million
- Reported AOI Up 45% to $621
Million and Up 51% to $645
Million On A Constant Currency Basis
- Year-To-Date Operating Cash Flow Is $928 Million
- Year-To-Date Free Cash Flow - Adjusted Is $996 Million, Up 88%
3Q Highlights (vs 2019): Fans Continue to Prioritize Their
Spending on Live Events
- Highest Quarterly Attendance Ever with Over 44 Million Fans
Across 11 Thousand Events
- 89 Million Fans Attended 31 Thousand Events
Year-To-Date
- Ancillary Per Fan Spending Growth Up 30% through September
at U.S. Amphitheaters
- Ticketmaster Delivers All-Time High Reported Fee-Bearing
Gross Transacted Value (GTV) of $7.3
Billion Up 62%
- 3Q Sponsorship Revenue Up 59% Driven By Festivals and
Ticketmaster Platform Integration
Outlook: Closing Out a Record Year and Positioned for
Continued Growth
- Over 115 Million Tickets Sold, Up 37% From This Point in
2019
- Double-Digit Increase in Tickets Sold for 2023 Concerts vs
This Point in 2021 for 2022, Excluding Rescheduled Shows
- Confirmed Sponsorship for 2023 Is Up 30% vs Year Ago for
2022
LOS
ANGELES, Nov. 3, 2022 /PRNewswire/ -- Live
Nation Entertainment, Inc. (NYSE: LYV) today released financial
results for the quarter ended September 30, 2022.
Live Nation delivered the biggest summer concert season in
history and drove a record quarter. These results demonstrate
the ongoing and increasing demand for live events globally, with
attendance up at events of all sizes from clubs to stadiums.
Fans around the world continue prioritizing their spend on live
events, particularly concerts. Despite varying economic
headwinds including inflation, we have not seen any pullback in
demand, as on-sales, on-site spending, advertising and all other
operating metrics continue showing strong year-on-year growth.
With this demand, revenue was up over 60% relative to Q3 of
2019, with each division up at least 30%. Operating Income
was up 95% to $506 million, with all
divisions up at least 60% and AOI was up 45% to $621 million, with all divisions up at least
25%.
Record Summer Concert Attendance
As we expected, our performance this quarter was led by our
concert business, which held 11 thousand concerts for 44 million
fans across nearly 50 countries. As a result, we generated
over $5 billion of revenue and
$281 million of AOI for the quarter,
up 67% and 44% respectively, relative to Q3 2019.
Shows of all types continue having strong demand, with
double-digit attendance growth across all venue types including
clubs, theaters, amphitheaters, arenas, stadiums and
festivals. Stadiums had a particularly strong quarter with
our fan count more than tripling to nearly nine million fans,
driven by the global demand to see top acts across a number of
genres and audiences such as Bad Bunny, The Weeknd and Red Hot
Chili Peppers.
We delivered double-digit attendance growth relative to Q3 2019
across established and emerging markets around the globe from
North America to Europe to South
America, showing our long runway of global growth.
At the same time, our operated venues successfully hosted more
fans, with attendance up 14% relative to Q3 2019 to 19 million fans
for the quarter, and 38 million fans year-to-date. Based on
current pacing, we expect to host more than 50 million fans at our
festivals and Venue Nation division this year.
As we have grown attendance, we have also continued driving
greater market pricing for our concerts, and now expect to transfer
over $550 million of additional
payments to artists this year, continuing our efforts to help
artists get the full value from their shows.
Over the course of the summer, we also continued to see strong
on-site per fan spend with no reduction in consumer buying
habits. Ancillary per fan spending was up 20 to 30%
year-to-date relative to 2019 in our operated venues across the
U.S. and Europe. The consistent theme is that fans are eager
to enhance their experience, as we continue elevating our
hospitality operations and provide more premium options. We
still have tremendous room to expand these higher quality
experiences throughout our venue portfolio, which includes over 400
venues and festivals globally with almost 40 new venues in our
pipeline.
Highest Gross Transaction Value Quarter Ever at
Ticketmaster
Fan demand for live events was also clear in our ticketing
business, as we transacted $6.7
billion of fee-generating GTV on 71 million tickets, up 69%
and 42% respectively, relative to Q3 2019. This demand
remained strong throughout the quarter, as two of the three months
were amongst the top 10 transacted GTV (excluding refunds) months
ever. At this point, all top 10 months occurred within the
past year.
GTV growth was strong across both our primary and secondary
markets, up 61% and 132%, respectively. Concerts drove 80% of
the growth in primary GTV while concerts and sports together
accounted for over 90% of our secondary GTV growth.
Globally, new venue clients continue to seek out Ticketmaster's
services due to the effectiveness of our enterprise software
platform driving venue revenue, combined with our leading online
marketplace. As a result, we have contracted 19 million net
new tickets so far this year on a global basis.
Finally on Ticketmaster, a point on some recent press regarding
ticketing fees. We will continue to advocate for fee
transparency in live event ticketing. We advocated for the
all-in pricing mandate passed in New
York earlier this year, which requires face-value prices and
fees to be shown upfront – and we support the FTC mandating this
nationally. We operate ticketing marketplaces in more than 30
countries around the world and have seen all-in pricing adopted
successfully in many countries when mandated across the
board. This only works if all ticketing marketplaces adopt
together, so that consumers truly can accurately compare as they
shop for tickets.
Festivals and Global Footprint Fuel Sponsorship
Growth
Sponsorship had its biggest quarter ever following our previous
record last quarter, driven by the strength of our festivals and
online partnerships. Our strong performance drove AOI of
$226 million, 56% higher than Q3
2019. Our sponsorship revenue growth has been broad-based,
with North America up 48% and
International sponsorship up 93% year-to-date. And we see
strong demand both on-site and online, up 64% and 63%, respectively
this year, as our unique scaled live events platforms continue to
attract new brands and expand relationships with current
partners.
Festival sponsorship has been our largest growth driver on-site
to date, as we have effectively leveraged record festival
attendance this year and compounded this growth with double-digit
increases in per fan sponsorship. Platform integrations have
been our greatest growth driver with online partnerships, as we
continue to drive value and monetize opportunities via
Ticketmaster's purchase process, with non-service fee revenues up
double-digits relative to 2019.
Looking Ahead to 2023
Clearly 2022 has been an incredible year of returning to live
events, and we expect it to finish strong. Ticket sales for
concerts this year were up 34% for the quarter, and now stand at
over 115 million tickets sold for shows this year, up 37% from this
point in 2019.
More importantly, momentum is strong with early signs pointing
to continued growth in 2023 across our businesses. Ticket
sales for shows in 2023 are pacing even stronger than they were
heading into 2022, up double-digits year-over-year, excluding sales
from rescheduled shows. In our sponsorship business,
confirmed commitments are up 30% from this time last year, showing
the resiliency and long-term commitments that brands have for our
business.
Beyond these specific leading indicators, going into 2023, we
expect we will drive growth in our concert business by adding more
venues to our operated portfolio, continue increasing ancillary per
fan revenue and further our efforts to deliver market value for the
show to artists. And in ticketing, we expect to benefit from
these market pricing trends, while also continuing to globally add
new clients to our world-class platform.
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
– THIRD QUARTER
(unaudited; $ in
millions)
|
|
|
Q3 2022
Reported
|
|
Q3 2021
Reported
|
|
Q3 2022
Constant
Currency
|
Revenue
|
|
|
|
|
|
Concerts
|
$ 5,292.6
|
|
$ 2,151.6
|
|
$ 5,508.4
|
Ticketing
|
531.6
|
|
374.2
|
|
549.4
|
Sponsorship &
Advertising
|
343.0
|
|
174.4
|
|
358.1
|
Other and
Eliminations
|
(13.7)
|
|
(1.5)
|
|
(13.7)
|
|
$ 6,153.5
|
|
$ 2,698.7
|
|
$ 6,402.2
|
|
|
|
|
|
|
Consolidated
Operating Income
|
$
506.2
|
|
$
137.1
|
|
$
524.5
|
|
|
|
|
|
|
Adjusted Operating
Income
|
|
|
|
|
|
Concerts
|
$
280.8
|
|
$
59.6
|
|
$
288.4
|
Ticketing
|
163.2
|
|
171.8
|
|
168.3
|
Sponsorship &
Advertising
|
226.2
|
|
111.2
|
|
237.6
|
Other and
Eliminations
|
(3.4)
|
|
(1.2)
|
|
(3.4)
|
Corporate
|
(46.1)
|
|
(35.7)
|
|
(46.1)
|
|
$
620.7
|
|
$
305.7
|
|
$
644.8
|
FINANCIAL HIGHLIGHTS
– NINE MONTHS
(unaudited; $ in
millions)
|
|
|
9 Months
2022
Reported
|
|
9 Months
2021
Reported
|
|
9 Months
2022
Constant
Currency
|
Revenue
|
|
|
|
|
|
Concerts
|
$
10,098.2
|
|
$ 2,678.0
|
|
$
10,475.0
|
Ticketing
|
1,587.3
|
|
646.6
|
|
1,622.1
|
Sponsorship &
Advertising
|
722.5
|
|
241.7
|
|
747.9
|
Other and
Eliminations
|
(17.5)
|
|
(1.1)
|
|
(17.5)
|
|
$
12,390.5
|
|
$ 3,565.2
|
|
$
12,827.5
|
|
|
|
|
|
|
Consolidated
Operating Income (Loss)
|
$
852.0
|
|
$
(293.3)
|
|
$
888.1
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
Concerts
|
$
354.6
|
|
$
(99.0)
|
|
$
372.5
|
Ticketing
|
600.2
|
|
208.4
|
|
610.1
|
Sponsorship &
Advertising
|
474.2
|
|
127.8
|
|
493.5
|
Other and
Eliminations
|
(9.8)
|
|
(4.6)
|
|
(9.8)
|
Corporate
|
(109.8)
|
|
(69.0)
|
|
(109.8)
|
|
$ 1,309.4
|
|
$
163.6
|
|
$ 1,356.5
|
Reconciliation of
Adjusted Operating Income (Loss) to Operating Income (Loss)
(Unaudited)
|
|
|
|
Q3
2022
|
Q3
2021
|
|
9 Months
2022
|
9 Months
2021
|
|
(in
millions)
|
Adjusted Operating
Income
|
$
620.7
|
$
305.7
|
|
$
1,309.4
|
$
163.6
|
Acquisition
expenses
|
7.6
|
20.7
|
|
29.2
|
14.7
|
Amortization of
non-recoupable ticketing contract
advance
|
15.7
|
20.5
|
|
56.1
|
49.2
|
Depreciation and
amortization
|
102.1
|
101.2
|
|
318.5
|
313.8
|
Gain on sale of
operating assets
|
(35.3)
|
(1.1)
|
|
(32.6)
|
(1.0)
|
Stock-based
compensation expense
|
24.4
|
27.3
|
|
86.2
|
80.2
|
Operating income
(loss)
|
$
506.2
|
$
137.1
|
|
$
852.0
|
$
(293.3)
|
KEY OPERATING
METRICS
|
(unaudited)
|
|
Q3
2022
|
|
Q3
2021
|
|
9 Months
2022
|
|
9 Months
2021
|
|
(in thousands except
estimated events)
|
Concerts
(1)
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
North
America
|
8,261
|
|
4,251
|
|
21,091
|
|
5,715
|
International
|
2,958
|
|
1,328
|
|
9,414
|
|
2,254
|
Total estimated
events
|
11,219
|
|
5,579
|
|
30,505
|
|
7,969
|
Estimated
fans:
|
|
|
|
|
|
|
|
North
America
|
29,089
|
|
13,490
|
|
53,373
|
|
14,217
|
International
|
15,202
|
|
3,427
|
|
35,614
|
|
4,598
|
Total estimated
fans
|
44,291
|
|
16,917
|
|
88,987
|
|
18,815
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
73,434
|
|
43,296
|
|
197,007
|
|
76,235
|
Estimated number of
non-fee-bearing tickets
|
61,933
|
|
39,798
|
|
189,664
|
|
72,571
|
Total estimated
tickets sold
|
135,367
|
|
83,094
|
|
386,671
|
|
148,806
|
_________
|
|
|
(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 4.6 million and
5.9 million tickets for the three months ended
September 30, 2022 and 2021, respectively, and
15.0 million and 13.0 million for nine months ended
September 30, 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)
|
Q3
2022
|
|
Q3
2021
|
Net cash used in
operating activities
|
$
(619.0)
|
|
$
(145.3)
|
Less: Changes in
operating assets and liabilities (working capital)
|
1,184.3
|
|
356.8
|
Free cash flow from
earnings
|
$
565.3
|
|
$
211.5
|
Less: Maintenance
capital expenditures
|
(21.7)
|
|
(22.9)
|
Distributions to noncontrolling interests
|
(15.8)
|
|
(11.1)
|
Free cash flow —
adjusted
|
$
527.8
|
|
$
177.5
|
|
|
|
|
Net cash used in
investing activities
|
$
(115.0)
|
|
$
(61.5)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
$
(37.6)
|
|
$
820.8
|
|
($ in
millions)
|
9 Months
2022
|
|
9 Months
2021
|
Net cash provided by
operating activities
|
$
928.4
|
|
$
1,024.7
|
Less: Changes in
operating assets and liabilities (working capital)
|
206.4
|
|
(1,091.8)
|
Free cash flow from
earnings
|
$
1,134.8
|
|
$
(67.1)
|
Less: Maintenance
capital expenditures
|
(56.8)
|
|
(37.2)
|
Distributions to noncontrolling interests
|
(81.9)
|
|
(25.6)
|
Free cash flow —
adjusted
|
$
996.1
|
|
$
(129.9)
|
|
|
|
|
Net cash used in
investing activities
|
$
(359.7)
|
|
$
(111.8)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
$
(175.2)
|
|
$
1,222.3
|
Reconciliation of
Free Cash to Cash and Cash Equivalents
|
($ in
millions)
|
September
30,
2022
|
Cash and cash
equivalents
|
$
4,951.2
|
Client cash
|
(1,285.7)
|
Deferred revenue —
event-related
|
(1,850.4)
|
Accrued artist
fees
|
(309.6)
|
Collections on behalf
of others
|
(59.8)
|
Prepaid expenses —
event-related
|
572.6
|
Free cash
|
$
2,018.3
|
- As of September 30, 2022, total
cash and cash equivalents were $5.0
billion, which includes $1.3
billion in ticketing client cash and $2.0 billion in free cash. This free cash, along
with $565.9 million of available debt
capacity, gives the company $2.6
billion of available liquidity. The company believes this
level of liquidity will provide its needs to fund operations and
future investment opportunities.
- The company currently expects capital expenditures for the full
year to be approximately $300 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 the company's prospects for
a record 2022 with a strong finish to the year, and its positioning
for continued growth across its businesses; current expectations
for total fan attendance at the company's festivals, amphitheaters,
and theaters and clubs in 2022; the company's room to expand its
hospitality operations and premium options throughout its operated
venue portfolio; expectations going into 2023 that the company will
continue to drive growth in its concert business by adding more
venues to its operated portfolio, continuing to increase ancillary
per fan revenue, and furthering its efforts to deliver market value
for the show to the artists, with these market pricing trends
expected to also benefit the company's ticketing business, which is
also expected to continue to globally add new clients to its
world-class platform 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 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)
|
|
|
September
30,
2022
|
|
December 31,
2021
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
4,951,161
|
|
$
4,884,729
|
Accounts receivable, less allowance of $63,761 and $50,491,
respectively
|
1,989,508
|
|
1,066,573
|
Prepaid expenses
|
908,895
|
|
654,894
|
Restricted cash
|
5,030
|
|
3,063
|
Other current assets
|
72,795
|
|
74,834
|
Total current
assets
|
7,927,389
|
|
6,684,093
|
Property, plant and
equipment, net
|
1,097,931
|
|
1,091,929
|
Operating lease
assets
|
1,615,997
|
|
1,538,911
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
917,441
|
|
1,026,338
|
Indefinite-lived intangible assets, net
|
408,988
|
|
369,028
|
Goodwill
|
2,548,452
|
|
2,590,869
|
Long-term
advances
|
595,642
|
|
552,697
|
Other long-term
assets
|
675,174
|
|
548,453
|
Total
assets
|
$
15,787,014
|
|
$
14,402,318
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
1,580,498
|
|
$
1,532,345
|
Accounts payable
|
195,327
|
|
110,623
|
Accrued expenses
|
2,763,630
|
|
1,645,906
|
Deferred revenue
|
2,269,216
|
|
2,774,792
|
Current portion of long-term debt, net
|
619,500
|
|
585,254
|
Current portion of operating lease liabilities
|
141,544
|
|
123,715
|
Other current liabilities
|
64,772
|
|
83,087
|
Total current
liabilities
|
7,634,487
|
|
6,855,722
|
Long-term debt,
net
|
5,120,197
|
|
5,145,484
|
Long-term operating
lease liabilities
|
1,689,464
|
|
1,606,064
|
Other long-term
liabilities
|
345,329
|
|
431,581
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
598,981
|
|
551,921
|
Stockholders'
equity
|
|
|
|
Common stock
|
2,271
|
|
2,220
|
Additional paid-in capital
|
2,852,112
|
|
2,897,695
|
Accumulated deficit
|
(2,768,195)
|
|
(3,327,737)
|
Cost
of shares held in treasury
|
(6,865)
|
|
(6,865)
|
Accumulated other comprehensive loss
|
(153,883)
|
|
(147,964)
|
Total Live Nation
stockholders' equity
|
(74,560)
|
|
(582,651)
|
Noncontrolling
interests
|
473,116
|
|
394,197
|
Total
equity
|
398,556
|
|
(188,454)
|
Total liabilities
and equity
|
$
15,787,014
|
|
$
14,402,318
|
LIVE NATION
ENTERTAINMENT, INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in thousands except
share and per share data)
|
Revenue
|
$
6,153,535
|
|
$
2,698,722
|
|
$
12,390,517
|
|
$ 3,565,277
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses
|
4,707,848
|
|
1,969,912
|
|
9,045,893
|
|
2,346,998
|
Selling, general and
administrative expenses
|
805,910
|
|
446,929
|
|
2,048,305
|
|
1,098,676
|
Depreciation and
amortization
|
102,093
|
|
101,235
|
|
318,489
|
|
313,758
|
Gain on disposal of
operating assets
|
(35,285)
|
|
(1,148)
|
|
(32,555)
|
|
(1,038)
|
Corporate
expenses
|
66,720
|
|
44,649
|
|
158,377
|
|
100,195
|
Operating income
(loss)
|
506,249
|
|
137,145
|
|
852,008
|
|
(293,312)
|
Interest
expense
|
70,514
|
|
70,407
|
|
205,722
|
|
210,146
|
Interest
income
|
(25,809)
|
|
(1,333)
|
|
(46,565)
|
|
(3,953)
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
14,283
|
|
(7,025)
|
|
8,040
|
|
(4,608)
|
Gain from sale of
investments in nonconsolidated affiliates
|
—
|
|
(30,633)
|
|
(448)
|
|
(83,580)
|
Other expense,
net
|
7,960
|
|
12,441
|
|
22,846
|
|
19,903
|
Income (loss) before
income taxes
|
439,301
|
|
93,288
|
|
662,413
|
|
(431,220)
|
Income tax
expense
|
41,898
|
|
6,421
|
|
85,589
|
|
15,095
|
Net income
(loss)
|
397,403
|
|
86,867
|
|
576,824
|
|
(446,315)
|
Net income attributable
to noncontrolling interests
|
36,001
|
|
39,989
|
|
77,804
|
|
9,665
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
361,402
|
|
$
46,878
|
|
$
499,020
|
|
$
(455,980)
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per common share available to common stockholders of Live
Nation
|
$
1.47
|
|
$
0.20
|
|
$
1.79
|
|
$
(2.13)
|
Diluted net income
(loss) per common share available to common stockholders of Live
Nation
|
$
1.39
|
|
$
0.19
|
|
$
1.73
|
|
$
(2.13)
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
225,761,777
|
|
216,888,355
|
|
224,123,130
|
|
215,716,239
|
Diluted
|
243,686,803
|
|
223,800,400
|
|
239,617,920
|
|
215,716,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income (loss) available to common stockholders of Live
Nation:
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
361,402
|
|
$
46,878
|
|
$
499,020
|
|
$
(455,980)
|
Accretion of redeemable
noncontrolling interests
|
(29,915)
|
|
(4,245)
|
|
(97,723)
|
|
(4,210)
|
Net income (loss)
available to common stockholders of Live Nation—basic
|
$
331,487
|
|
$
42,633
|
|
$
401,297
|
|
$
(460,190)
|
Convertible debt
interest, net of tax
|
6,365
|
|
—
|
|
12,124
|
|
—
|
Net income (loss)
available to common stockholders of Live Nation—diluted
|
$
337,852
|
|
$
42,633
|
|
$
413,421
|
|
$
(460,190)
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2022
|
|
2021
|
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net income
(loss)
|
|
$
576,824
|
|
$
(446,315)
|
Reconciling
items:
|
|
|
|
|
Depreciation
|
|
162,943
|
|
167,170
|
Amortization
|
|
155,546
|
|
146,588
|
Amortization of
non-recoupable ticketing contract advances
|
|
56,121
|
|
49,214
|
Amortization of debt
issuance costs and discounts
|
|
12,333
|
|
27,916
|
Stock-based
compensation expense
|
|
86,178
|
|
80,165
|
Unrealized changes in
fair value of contingent consideration
|
|
23,601
|
|
(6,998)
|
Equity in losses of
nonconsolidated affiliates, net of distributions
|
|
31,420
|
|
6,396
|
Provision for
uncollectible accounts receivable
|
|
40,736
|
|
(14,006)
|
Gain on sale of
investments in nonconsolidated affiliates
|
|
(393)
|
|
(83,580)
|
Other, net
|
|
(10,596)
|
|
6,380
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
|
Increase in accounts
receivable
|
|
(1,009,472)
|
|
(690,105)
|
Increase in prepaid
expenses and other assets
|
|
(297,379)
|
|
(92,635)
|
Increase in accounts
payable, accrued expenses and other liabilities
|
|
1,536,196
|
|
1,323,448
|
Increase (decrease) in
deferred revenue
|
|
(435,701)
|
|
551,059
|
Net cash provided by
operating activities
|
|
928,357
|
|
1,024,697
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Advances of notes
receivable
|
|
(58,307)
|
|
(24,476)
|
Collections of notes
receivable
|
|
16,473
|
|
16,500
|
Investments made in
nonconsolidated affiliates
|
|
(73,335)
|
|
(55,246)
|
Purchases of property,
plant and equipment
|
|
(205,987)
|
|
(103,914)
|
Cash paid for
acquisitions, net of cash acquired
|
|
(38,770)
|
|
(19,594)
|
Purchases of intangible
assets
|
|
(6,764)
|
|
(6,681)
|
Proceeds from sale of
investments in nonconsolidated affiliates
|
|
3,863
|
|
80,593
|
Other, net
|
|
3,099
|
|
1,059
|
Net cash used in
investing activities
|
|
(359,728)
|
|
(111,759)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from long-term
debt, net of debt issuance costs
|
|
5,750
|
|
904,164
|
Payments on long-term
debt
|
|
(29,462)
|
|
(93,168)
|
Contributions from
noncontrolling interests
|
|
14,340
|
|
15,985
|
Distributions to
noncontrolling interests
|
|
(81,852)
|
|
(25,632)
|
Purchases and sales of
noncontrolling interests, net
|
|
(27,104)
|
|
(3,273)
|
Proceeds from sale of
common stock, net of issuance costs
|
|
—
|
|
449,415
|
Proceeds from exercise
of stock options
|
|
35,698
|
|
30,322
|
Taxes paid for net
share settlement of equity awards
|
|
(46,953)
|
|
(42,731)
|
Payments for deferred
and contingent consideration
|
|
(45,164)
|
|
(12,845)
|
Other, net
|
|
(472)
|
|
84
|
Net cash provided by
(used in) financing activities
|
|
(175,219)
|
|
1,222,321
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
(325,011)
|
|
(48,501)
|
Net increase in cash,
cash equivalents, and restricted cash
|
|
68,399
|
|
2,086,758
|
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
|
|
$
4,956,191
|
|
$
4,633,197
|
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SOURCE Live Nation Entertainment