RESULTS AND OUTLOOK REFLECT STRONG GLOBAL
DEMAND FOR LIVE EXPERIENCES
2022 FINANCIAL OVERVIEW (reported FX, vs 2019): Record
Results Reflect Incredible Fan Demand
- Revenue Up 44% to $16.7
Billion
- Operating Income Up 125% to $732
Million
- AOI Up 49% to Over $1.4
Billion
- Operating Free Cash Flow Up 3.9x to $1.8 Billion
- Adjusted Free Cash Flow Up 94% to $967 Million, Converting 69% of AOI
2022 OPERATIONAL HIGHLIGHTS (vs 2019): Record Attendance,
Gross Transaction Value, and Sponsorship Activity
- Investment in Artists Up 45% to Over $9.6 Billion as Live Nation Continues to Be The
Largest Financial Supporter of Musicians
- Highest Live Nation Concert Attendance - Up 24% With Over
121 Million Fans Attending 43,600 Events
- Ancillary Per Fan Spending Growth Continues, Up At Least 20%
Across All Major Venue Types - Amphitheaters, Festivals, Clubs and
Theaters
- Ticketing Fee-Bearing Gross Transaction Value Up 54% to
$27.5 Billion
- Sponsorship Revenue Reaches Roughly $1 Billion, Up 64%
2023 OUTLOOK (as of mid-February, vs 2022): Positioned For
Ongoing Growth, As Fans Continue To Prioritize Concerts
- Event-Related Deferred Revenue Starts Year at $2.7 Billion, Up $400
Million
- Concert Ticket Sales Are Over 50 Million, Up 20% With
International Up 25%
- Ticketing Fee-Bearing Gross Transaction Value Up 33% to
$9.8 Billion
- 2023 Committed Sponsorship Up Double-Digits, With Over 70%
of 2023 Revenue Committed
LOS
ANGELES, Feb. 23, 2023 /PRNewswire/ -- Live Nation
Entertainment, Inc. (NYSE: LYV) today released financial results
for the quarter and full year ended December 31, 2022.
In 2022, we saw fans around the world continue to prioritize
their spending on attending live events, particularly
concerts. Our research consistently tells us that concerts
are a top priority for discretionary spending, and one of the last
experiences fans will cut back on - and we are seeing this play out
in both our results for 2022 and early indicators for 2023.
With this strong demand, last year in the concert business we
had 121 million fans attend our shows across 45 countries, while in
ticketing, we helped connect 550 million fans with their favorite
artists, teams and other performers. In both cases, the
majority of our growth came from international markets, further
reinforcing the global nature of untapped fan demand and the
opportunities we have for growth, as we help artists reach more
fans with their live music.
Record Attendance at Concerts
In concerts, despite many markets still closed for part of last
year, we grew attendance by 24% vs 2019 to 121 million fans at 44
thousand events, which drove revenue up 43% vs 2019 to $13.5 billion. This growth came from all
markets and venue types - every venue type from clubs and theaters
to stadiums to festivals had double-digit attendance growth vs
2019.
We invested $9.6 billion in
putting on artists' shows in 2022, working with the largest
superstars to artists just getting started, and all those
in-between. This is up 45% from 2019 and further reinforces
our role as the largest contributor to artist income. As part
of this, we helped shift $700 million
to artists with more market value ticket pricing - even as the
entry price to a show stayed below $35 in the U.S. Typically 90% of ticket
sales for Live Nation shows go to artists - this is particularly
important as artists are increasingly reliant on touring as they
get much smaller revenue shares from other music revenue
streams.
Part of our fan growth continues to come from venues we operate
globally - hosting almost 50 million fans in 2022, with
international markets again delivering the majority of our
growth. At Venue Nation, we continued our focus on elevating
the fan experience and providing a range of options for enhanced
products and services. As a result, last year we grew our
average revenue per fan by over 20% vs 2019 at all venue types.
Performance of Ticketing Reflects Tremendous Fan
Demand
In ticketing, our strategy for success is simple: We focus on
developing the leading software for venues. To ensure we deliver
the best enterprise platform, we invest tens of millions of dollars
every year to continue innovating every aspect of ticketing
technology and products. Artists are the venue's largest
clients, and we are regularly being asked to create new products to
help address their ticketing needs.
Amongst our innovations are products such as Verified Fan,
designed to help artists cut down resale, and we have seen this
used for our 400 tours including recent onsales for Beyonce,
Madonna and Morgan Wallen.
Generally, Verified Fan onsales have approximately 5% of inventory
end up on resale sites vs 20-30% that is typical for non-Verified
Fan onsales. Venues and their artist clients see the result
in their ticket sales, which is a large part why so many venues
choose to work with us.
Looking at our 2022 results: We grew our fee-bearing
ticket volume by 28% from 2019 to 280 million, which in turn drove
our fee-bearing GTV up by over 50% vs 2019 to $28 billion across 38 countries. As a
result, our ticketing revenue was $2.2
billion, up 45% vs 2019. Along with these results for
the year, we signed 23 million net new tickets in 2022, 70% of
which were with international clients, setting the stage for
continued global growth.
Sponsorship Reaches Approximately $1
Billion in Revenue
In our sponsorship business, we have seen that brands are as
eager as fans to re-engage with our platforms. In 2022, we
had 120 large strategic sponsors globally across our business, 32%
more than we had in 2019, including brands such as PayPal, GoPuff,
Hulu and Snap. These large partners drove over 80% of our
revenue growth, with overall revenue up 64% to $1 billion. As with concerts and ticketing,
our international markets led this growth, with international
sponsorship up over 70% vs 2019.
Looking Ahead to 2023
As we now have many of our 2023 shows on sale, we continue to
see very strong consumer demand globally, with no sign of any
slowdown. We have four key leading indicators at this time of
the year, all pointing toward another record year and even greater
success in 2023.
First, our deferred revenue at the end of 2022 was $2.7 billion, up 125% from 2019 and up 18% from
2021 which benefited from a high volume of rescheduled shows.
Next, as of mid-February, ticket sales for our shows this year
exceed 50 million fans, up 20% from this point last year, with
international growth at 25%. Then, our global ticketing
fee-bearing gross transaction value is up 33% to $9.8 billion through the same period.
Finally, over 70% of our planned sponsorship activity for the year
is confirmed, again up double-digits relative to this time last
year.
Regulatory Environment and Reforms
On the regulatory front: The ticketing industry is
more competitive than ever, and our market share has gone down, not
up, since the Ticketmaster merger. Because of the competitive
bidding process, venues regularly take more of the economics on
every renewal, as they set and keep a majority of the service
fees. Since signing the extended consent decree related to
the Ticketmaster merger, we remain in constant conversation with
the Department of Justice's monitors, and do not believe there have
been any violations.
On ticketing reforms: We believe that greater
transparency on the entire ticketing ecosystem will improve the
industry, and we have been engaging with policymakers to advocate
for reforms. The biggest challenge facing the industry is
chaos at the onsale, where fans cannot get the tickets at the price
the artist sets, yet they see pages of secondary sites with tickets
5 times face value because of scalpers. This has been a big
topic in the industry and conversations at the Pollstar Live
conference this week focused on how to protect the connection
between artists and their fans.
To help drive progress, we have launched the FAIR Ticketing Act,
which says:
- Artists should decide resale rules in order to protect
their ability to use face-value exchanges and limited transfer to
keep pricing lower for fans, and prevent scalpers from exploiting
fans.
- Selling speculative tickets should be illegal so
scalpers cannot use deceptive tactics to trick fans into spending
more or buying tickets the seller does not actually have.
- The scope of the BOTS Act needs to be expanded and
enforced to deter those who break the law, cheating artists and
fans in the process.
- And there needs to be industry-wide all-in pricing so
fans see the full cost they are paying up front.
Artists create their music and their concerts. It's only
fair that they create their ticketing rules, too. We will
always be on the side of the artist, who are the best advocates for
their careers and their fan base.
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 Annual Report on Form
10-K 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
– FOURTH QUARTER (unaudited; $ in
millions)
|
|
|
Q4 2022
Reported
|
|
Q4 2021
Reported
|
|
Growth
|
|
Q4 2022
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$ 3,395.9
|
|
$ 2,044.2
|
|
66 %
|
|
$ 3,545.2
|
|
73 %
|
Ticketing
|
651.3
|
|
487.7
|
|
34 %
|
|
669.8
|
|
37 %
|
Sponsorship &
Advertising
|
245.6
|
|
170.3
|
|
44 %
|
|
251.5
|
|
48 %
|
Other and
Eliminations
|
(2.2)
|
|
1.0
|
|
*
|
|
(2.2)
|
|
*
|
|
$ 4,290.6
|
|
$ 2,703.2
|
|
59 %
|
|
$ 4,464.3
|
|
65 %
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Income (Loss)
|
$
(119.9)
|
|
$
(124.5)
|
|
4 %
|
|
$
(116.0)
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
(184.8)
|
|
$
(122.3)
|
|
(51 %)
|
|
$
(180.7)
|
|
(48 %)
|
Ticketing
|
227.7
|
|
212.1
|
|
7 %
|
|
228.9
|
|
8 %
|
Sponsorship &
Advertising
|
117.7
|
|
114.5
|
|
3 %
|
|
122.5
|
|
7 %
|
Other and
Eliminations
|
(4.7)
|
|
(2.3)
|
|
*
|
|
(4.7)
|
|
*
|
Corporate
|
(58.1)
|
|
(41.7)
|
|
(39) %
|
|
(58.1)
|
|
(39) %
|
|
$
97.8
|
|
$
160.3
|
|
(39 %)
|
|
$
107.9
|
|
(33 %)
|
|
* Percentages are not
meaningful
|
FINANCIAL HIGHLIGHTS
– 12 MONTHS (unaudited; $ in millions)
|
|
|
12 Months
2022
Reported
|
|
12 Months
2021
Reported
|
|
Growth
|
|
12 Months
2022
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
13,494.1
|
|
$ 4,722.2
|
|
*
|
|
$
14,020.2
|
|
*
|
Ticketing
|
2,238.6
|
|
1,134.3
|
|
97 %
|
|
2,291.9
|
|
*
|
Sponsorship &
Advertising
|
968.1
|
|
411.9
|
|
*
|
|
999.4
|
|
*
|
Other and
Eliminations
|
(19.6)
|
|
0.1
|
|
*
|
|
(19.6)
|
|
*
|
|
$
16,681.2
|
|
$ 6,268.5
|
|
*
|
|
$
17,291.9
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Income (Loss)
|
$
732.1
|
|
$
(417.9)
|
|
*
|
|
$
772.0
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
169.7
|
|
$
(221.3)
|
|
*
|
|
$
191.7
|
|
*
|
Ticketing
|
827.9
|
|
420.5
|
|
97 %
|
|
839.0
|
|
100 %
|
Sponsorship &
Advertising
|
592.0
|
|
242.2
|
|
*
|
|
616.1
|
|
*
|
Other and
Eliminations
|
(14.5)
|
|
(6.9)
|
|
*
|
|
(14.5)
|
|
*
|
Corporate
|
(167.9)
|
|
(110.6)
|
|
(52) %
|
|
(167.9)
|
|
(52) %
|
|
$ 1,407.2
|
|
$
323.9
|
|
*
|
|
$ 1,464.4
|
|
*
|
|
* Percentages are not
meaningful
|
Reconciliation of
Adjusted Operating Income to Operating Income (Loss)
(Unaudited)
|
|
|
Q4
2022
|
Q4
2021
|
|
12 Months
2022
|
12 Months
2021
|
|
(in
millions)
|
Adjusted Operating
Income
|
$
97.8
|
$
160.3
|
|
$
1,407.2
|
$
323.9
|
Acquisition
expenses
|
38.9
|
28.1
|
|
68.2
|
43.0
|
Amortization of
non-recoupable ticketing contract advance
|
22.9
|
25.2
|
|
79.0
|
74.4
|
Depreciation and
amortization
|
131.5
|
102.5
|
|
450.0
|
416.3
|
Gain on sale of
operating assets
|
0.5
|
(0.2)
|
|
(32.1)
|
(1.2)
|
Stock-based
compensation expense
|
23.9
|
129.2
|
|
110.0
|
209.3
|
Operating income
(loss)
|
$
(119.9)
|
$
(124.5)
|
|
$
732.1
|
$
(417.9)
|
KEY OPERATING
METRICS (unaudited)
|
|
|
2022
|
|
2021
|
|
2020
|
|
(in thousands except
estimated events)
|
Concerts
(1)
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
North
America
|
29,169
|
|
12,004
|
|
5,270
|
International
|
14,475
|
|
5,408
|
|
2,847
|
Total estimated
events
|
43,644
|
|
17,412
|
|
8,117
|
Estimated
fans:
|
|
|
|
|
|
North
America
|
69,693
|
|
26,330
|
|
6,075
|
International
|
51,459
|
|
8,935
|
|
5,067
|
Total estimated
fans
|
121,152
|
|
35,265
|
|
11,142
|
Ticketing
(2)
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
280,861
|
|
131,685
|
|
31,101
|
Estimated number of
non-fee-bearing tickets
|
269,814
|
|
145,047
|
|
88,823
|
Total estimated
tickets sold
|
550,675
|
|
276,732
|
|
119,924
|
|
|
|
|
|
|
|
|
(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 19.7 million and
21.0 million for years ended December 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)
|
Q4
2022
|
|
Q4
2021
|
Net cash provided by
operating activities
|
$
903.7
|
|
$
755.9
|
Less: Changes in
operating assets and liabilities (working capital)
|
(844.3)
|
|
(682.2)
|
Free cash flow from
earnings
|
$
59.4
|
|
$
73.7
|
Less: Maintenance
capital expenditures
|
(70.2)
|
|
(30.9)
|
Distributions to noncontrolling interests
|
(18.8)
|
|
(26.8)
|
Free cash flow —
adjusted
|
$
(29.6)
|
|
$
16.0
|
|
|
|
|
Net cash used in
investing activities
|
$
(425.0)
|
|
$
(455.2)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
$
31.9
|
|
$
(51.0)
|
|
($ in
millions)
|
2022
|
|
2021
|
Net cash provided by
operating activities
|
$
1,832.1
|
|
$
1,780.6
|
Less: Changes in
operating assets and liabilities (working capital)
|
(637.9)
|
|
(1,774.0)
|
Free cash flow from
earnings
|
$
1,194.2
|
|
$
6.6
|
Less: Maintenance
capital expenditures
|
(127.0)
|
|
(68.1)
|
Distributions to noncontrolling interests
|
(100.7)
|
|
(52.4)
|
Free cash flow —
adjusted
|
$
966.5
|
|
$
(113.9)
|
|
|
|
|
Net cash used in
investing activities
|
$
(784.7)
|
|
$
(567.0)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
$
(143.3)
|
|
$
1,171.3
|
Reconciliation of
Free Cash to Cash and Cash Equivalents
|
($ in
millions)
|
December 31,
2022
|
Cash and cash
equivalents
|
$
5,606.5
|
Client cash
|
(1,532.8)
|
Deferred revenue —
event-related
|
(2,731.8)
|
Accrued artist
fees
|
(129.7)
|
Collections on behalf
of others
|
(53.9)
|
Prepaid expenses —
event-related
|
606.2
|
Free cash
|
$
1,764.5
|
- As of December 31, 2022, total
cash and cash equivalents were $5.6
billion, which includes $1.5
billion in ticketing client cash and $1.8 billion in free cash. This free cash, along
with $565.9 million of available debt
capacity, gives the company $2.3
billion of available liquidity. The company believes this
level of liquidity will provide its needs to fund operations and
future investment opportunities.
- The company expects capital expenditures to be approximately
$450 million in 2023 as we continue
catching up on projects delayed due to supply chain constraints and
further expand our global platform.
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 company's position for
ongoing growth, the global nature of untapped fan demand and the
opportunities the company has for growth; the strength of consumer
demand globally for concerts with no indications of any slowdown;
the company's belief that greater transparency on the entire
ticketing ecosystem will reinforce the positive roles Live Nation
and Ticketmaster play to support artists, venues, and other event
organizers; the company's four leading indicators pointing toward
another record year and even greater success in 2023; the company's
belief that its current level of liquidity will provide its needs
to fund operations and future investment opportunities; and the
company's current expectations for capital expenditures 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
|
|
|
December 31,
2022
|
|
December 31,
2021
|
|
(in thousands,
except share data)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
5,606,457
|
|
$
4,884,729
|
Accounts receivable, less allowance of $63,294 and $50,491,
respectively
|
1,465,383
|
|
1,066,573
|
Prepaid expenses
|
949,826
|
|
654,894
|
Restricted cash
|
5,917
|
|
3,063
|
Other current assets
|
131,939
|
|
74,834
|
Total current
assets
|
8,159,522
|
|
6,684,093
|
Property, plant and
equipment, net
|
1,487,663
|
|
1,091,929
|
Operating lease
assets
|
1,571,395
|
|
1,538,911
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
1,050,622
|
|
1,026,338
|
Indefinite-lived intangible assets, net
|
368,712
|
|
369,028
|
Goodwill
|
2,529,380
|
|
2,590,869
|
Long-term
advances
|
568,558
|
|
552,697
|
Other long-term
assets
|
724,989
|
|
548,453
|
Total
assets
|
$
16,460,841
|
|
$
14,402,318
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
1,791,025
|
|
$
1,532,345
|
Accounts payable
|
180,076
|
|
110,623
|
Accrued expenses
|
2,368,434
|
|
1,645,906
|
Deferred revenue
|
3,134,800
|
|
2,774,792
|
Current portion of long-term debt, net
|
620,032
|
|
585,254
|
Current portion of operating lease liabilities
|
140,232
|
|
123,715
|
Other current liabilities
|
68,716
|
|
83,087
|
Total current
liabilities
|
8,303,315
|
|
6,855,722
|
Long-term debt,
net
|
5,283,467
|
|
5,145,484
|
Long-term operating
lease liabilities
|
1,654,525
|
|
1,606,064
|
Other long-term
liabilities
|
455,971
|
|
431,581
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
669,766
|
|
551,921
|
Stockholders'
equity
|
|
|
|
Preferred stock—Series
A Junior Participating, $0.01 par value; 20,000,000 shares
authorized; no shares issued and
outstanding
|
—
|
|
—
|
Preferred stock, $0.01
par value; 30,000,000 shares authorized; no shares issued and
outstanding
|
—
|
|
—
|
Common stock, $0.01
par value; 450,000,000 shares authorized; 231,671,647 and
225,082,603 shares issued and 231,263,623 and 224,674,579 shares
outstanding in 2022 and 2021, respectively
|
2,285
|
|
2,220
|
Additional paid-in capital
|
2,698,316
|
|
2,897,695
|
Accumulated deficit
|
(2,971,229)
|
|
(3,327,737)
|
Cost
of shares held in treasury
|
(6,865)
|
|
(6,865)
|
Accumulated other comprehensive loss
|
(90,076)
|
|
(147,964)
|
Total Live Nation
stockholders' equity
|
(367,569)
|
|
(582,651)
|
Noncontrolling
interests
|
461,366
|
|
394,197
|
Total
equity
|
93,797
|
|
(188,454)
|
Total liabilities
and equity
|
$
16,460,841
|
|
$
14,402,318
|
LIVE NATION
ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
Year Ended December
31,
|
|
2022
|
|
2021
|
|
2020
|
|
(in thousands,
except share and per share data)
|
Revenue
|
$
16,681,254
|
|
$
6,268,447
|
|
$
1,861,178
|
Operating
expenses:
|
|
|
|
|
|
Direct operating
expenses
|
12,337,524
|
|
4,355,989
|
|
1,402,400
|
Selling, general and
administrative expenses
|
2,955,884
|
|
1,754,822
|
|
1,524,342
|
Depreciation and
amortization
|
449,976
|
|
416,277
|
|
485,025
|
Loss (gain) on
disposal of operating assets
|
(32,082)
|
|
(1,211)
|
|
503
|
Corporate
expenses
|
237,834
|
|
160,428
|
|
102,100
|
Operating income
(loss)
|
732,118
|
|
(417,858)
|
|
(1,653,192)
|
Interest
expense
|
278,483
|
|
282,440
|
|
226,832
|
Interest
income
|
(77,620)
|
|
(6,625)
|
|
(11,737)
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
(10,571)
|
|
(2,520)
|
|
5,458
|
Loss (gain) from sale
of investments in nonconsolidated affiliates
|
(448)
|
|
(83,578)
|
|
1,727
|
Other expense (income),
net
|
36,827
|
|
3,692
|
|
(18,807)
|
Income (loss) before
income taxes
|
505,447
|
|
(611,267)
|
|
(1,856,665)
|
Income tax expense
(benefit)
|
96,254
|
|
(2,481)
|
|
(28,875)
|
Net income
(loss)
|
409,193
|
|
(608,786)
|
|
(1,827,790)
|
Net income (loss)
attributable to noncontrolling interests
|
113,207
|
|
42,118
|
|
(103,255)
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
295,986
|
|
$
(650,904)
|
|
$
(1,724,535)
|
|
|
|
|
|
|
Basic net income (loss)
per common share available to common stockholders of Live
Nation
|
$
0.66
|
|
$
(3.09)
|
|
$
(8.12)
|
Diluted net income
(loss) per common share available to common stockholders of Live
Nation
|
$
0.64
|
|
$
(3.09)
|
|
$
(8.12)
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
Basic
|
224,809,558
|
|
217,190,862
|
|
212,270,944
|
Diluted
|
231,556,866
|
|
217,190,862
|
|
212,270,944
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income (loss) available to common stockholders of Live
Nation:
|
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
295,986
|
|
$
(650,904)
|
|
$
(1,724,535)
|
Accretion of redeemable
noncontrolling interests
|
(146,770)
|
|
(19,771)
|
|
1,180
|
Net income (loss)
available to common stockholders of Live Nation—basic and
diluted
|
$
149,216
|
|
$
(670,675)
|
|
$
(1,723,355)
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
Year Ended December
31,
|
|
2022
|
|
2021
|
|
2020
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
(loss)
|
$
409,193
|
|
$
(608,786)
|
|
$
(1,827,790)
|
Reconciling
items:
|
|
|
|
|
|
Depreciation
|
225,770
|
|
222,840
|
|
245,713
|
Amortization
|
224,206
|
|
193,437
|
|
239,312
|
Amortization of
non-recoupable ticketing contract advances
|
79,043
|
|
74,406
|
|
47,971
|
Deferred income tax
benefit
|
7,199
|
|
(9,639)
|
|
(37,877)
|
Amortization of debt
issuance costs and discounts
|
16,448
|
|
37,260
|
|
32,774
|
Provision for
uncollectible accounts receivable
|
68,612
|
|
(17,826)
|
|
43,076
|
Stock-based
compensation expense
|
110,049
|
|
209,337
|
|
116,889
|
Unrealized changes in
fair value of contingent consideration
|
56,704
|
|
(6,732)
|
|
(24,448)
|
Equity in losses of
nonconsolidated affiliates, net of distributions
|
14,912
|
|
11,189
|
|
18,280
|
Loss (gain) on sale of
investments in nonconsolidated affiliates
|
1,357
|
|
(83,578)
|
|
1,727
|
Other, net
|
(19,283)
|
|
(15,333)
|
|
(18,472)
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
|
|
Decrease (increase) in
accounts receivable
|
(463,977)
|
|
(485,211)
|
|
490,588
|
Decrease (increase) in
prepaid expenses and other assets
|
(267,945)
|
|
95,533
|
|
141,631
|
Increase (decrease) in
accounts payable, accrued expenses and other liabilities
|
1,002,158
|
|
1,315,722
|
|
(1,379,461)
|
Increase in deferred
revenue
|
367,617
|
|
847,949
|
|
826,699
|
Net cash provided by
(used in) operating activities
|
1,832,063
|
|
1,780,568
|
|
(1,083,388)
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Advances of notes
receivable
|
(115,992)
|
|
(28,899)
|
|
(56,957)
|
Collections of notes
receivable
|
20,527
|
|
23,835
|
|
80,963
|
Investments made in
nonconsolidated affiliates
|
(91,186)
|
|
(110,589)
|
|
(11,242)
|
Purchases of property,
plant and equipment
|
(347,206)
|
|
(152,734)
|
|
(213,746)
|
Cash paid for
acquisitions, net of cash acquired
|
(257,191)
|
|
(384,251)
|
|
(41,083)
|
Purchases of intangible
assets
|
(6,080)
|
|
(7,100)
|
|
(8,863)
|
Proceeds from sale of
investments in nonconsolidated affiliates
|
3,863
|
|
90,432
|
|
19,003
|
Other, net
|
8,574
|
|
2,344
|
|
7,863
|
Net cash used in
investing activities
|
(784,691)
|
|
(566,962)
|
|
(224,062)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from long-term
debt, net of debt issuance costs
|
122,251
|
|
903,827
|
|
1,607,365
|
Payments on long-term
debt
|
(45,792)
|
|
(109,705)
|
|
(30,987)
|
Contributions from
noncontrolling interests
|
15,021
|
|
22,026
|
|
5,418
|
Distributions to
noncontrolling interests
|
(100,660)
|
|
(52,368)
|
|
(41,624)
|
Purchases and sales of
noncontrolling interests, net
|
(48,306)
|
|
(9,638)
|
|
(106,242)
|
Proceeds from sale of
common stock, net of issuance costs
|
—
|
|
449,630
|
|
—
|
Proceeds from exercise
of stock options
|
35,775
|
|
30,618
|
|
30,647
|
Taxes paid for net
share settlement of equity awards
|
(76,925)
|
|
(45,845)
|
|
(47,539)
|
Payments for deferred
and contingent consideration
|
(44,220)
|
|
(17,319)
|
|
(66,992)
|
Other, net
|
(484)
|
|
106
|
|
36
|
Net cash provided by
(used in) financing activities
|
(143,340)
|
|
1,171,332
|
|
1,350,082
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(179,450)
|
|
(43,585)
|
|
29,565
|
Net increase in cash,
cash equivalents, and restricted cash
|
724,582
|
|
2,341,353
|
|
72,197
|
Cash, cash equivalents
and restricted cash at beginning of period
|
4,887,792
|
|
2,546,439
|
|
2,474,242
|
Cash, cash equivalents
and restricted cash at end of period
|
$
5,612,374
|
|
$
4,887,792
|
|
$
2,546,439
|
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SOURCE Live Nation Entertainment