LOS
ANGELES, Nov. 2, 2023 /PRNewswire/ --
"Today we delivered our strongest quarter ever and are on
pace for a record 2023, driven in good part by the acceleration of
structural growth in the live entertainment industry. While we have
benefitted from tailwinds for many years, it has accelerated due to
the globalization of our business along with a fundamental shift in
consumer spending habits toward experiences. With the majority of
opportunity still untapped from Milan to Bogotá to Tokyo and beyond, we expect the industry will
continue growing in 2024 and for years to
come." –Michael Rapino, President and CEO, Live
Nation Entertainment
3Q23 FINANCIAL OVERVIEW: Record quarter, on pace for record
year
(reported FX)
- Revenue Up 32% to $8.2 billion in
Q3; and Up 36% to $16.9 billion
year-to-date
- Operating Income Up 22% to $619
million in Q3; and Up 35% to $1.1
billion year-to-date
- AOI Up 35% to $836 million in Q3;
and Up 33% to $1.7 billion
year-to-date
- Year-to-date Operating Cash Flow of $762
million
- Year-to-date Free Cash Flow — Adjusted of $1.3 billion, converting 72% of AOI
- EPS Up 28% to $1.78 in Q3; Up 50%
to $2.59 year-to-date
View how these results compare to past quarters in the 3Q23
Trended Results
Grid:
https://investors.livenationentertainment.com/financial-information/financial-results
OUTLOOK: Continued momentum through 2023 and into
2024
(based on leading indicators through
mid-October)
2023
- Record number of fans: 140 million tickets sold
year-to-date for Live Nation shows this year, up 17% year-over-year
and already surpassing full year 2022 total of 121 million
- Record Ticketmaster volume expected: 257 million
fee-bearing tickets sold year-to-date, up 22% year-over-year; on
track to manage over 600 million tickets this year, including well
over 300 million fee-bearing tickets
- Record Sponsorship results expected: On pace for
double-digit AOI growth this year
- Strong Projected Free Cash Flow — Adjusted: Percentage
conversion for the full-year is now projected to be in the
mid-60s
2024
- Strong concert calendar: Event-related deferred revenue
up 39% to $2.6 billion (vs 3Q22),
reflecting continued momentum into 2024
- Growing touring pipeline: Roughly half of expected show
count booked for large venues, up double-digits
- Continued strong sponsorship growth: Two-thirds of
expected commitments already booked, up double-digits
LIVE NATION CONCERTS:
- Record quarter for Concerts (vs 3Q22):
- Revenue up 32% to $7 billion
- AOI up 21% to $341 million
- Margins up year-to-date with significant full-year margin
expansion expected relative to 2022
- Record attendance fueled by strength across all markets,
venues and price points (year-to-date vs same period 2022):
- Overall fan growth of 21% with International markets up 34% and
North America up 13%
VENUE NATION:
- Venue Nation continues expanding fan hospitality
(year-to-date vs same period 2022):
- Ancillary per fan revenue continues to grow at operated venues:
- Amphitheaters: up 10% to over $40
year-to-date
- Theaters and clubs: up double-digits globally
- Growth in on-site spending drove per-fan profitability at
operated venues up double-digits, well outpacing cost
inflation
- 55 million fans expected at our operated venues in 2023, up
double-digits from 49 million fans in 2022
TICKETMASTER:
- Global fan demand and client wins drive record ticketing
results (vs 3Q22):
- Revenue up 57% to $833
million
- AOI up 94% to $316 million
- 17 million net new client tickets added year-to-date, with half
coming from International markets
- Full-year margins expected to remain in the high 30s
- High demand for concert tickets drives record fee-bearing
global transaction value (vs 3Q22):
- Total fee-bearing GTV up 36% to $10
billion with North America
up 32% and International markets up 49%; 90% of the growth driven
by global concert ticket sales
LIVE NATION SPONSORSHIP:
- Sponsorship performance driven by global platforms (vs
3Q22)
- Revenue up 7% to $367
million
- AOI up 11% to $250 million
- Full-year margins expected to remain in the low 60s
- 2023 planned sponsorship fully committed, at over
$1 billion in revenue
- New large multi-year deal with Mastercard driven by our
international concerts platform
ADDITIONAL FINANCIAL INFORMATION:
-
- 2023 capital expenditures forecast is $450 million with two-thirds on
revenue-generating projects. Year-to-date capital expenditures of
$258 million is primarily in
concerts, driven by on-site venue enhancements and the expansion of
our venue portfolio
- Below-the-line impact to 2023 EPS: annual accretion is expected
to be approximately 60% higher than 2022, primarily driven by OCESA
performance
- Foreign exchange rates not expected to materially impact 2023
revenue, operating income or AOI
- For the first nine months of 2023, our fully diluted share
count was 235 million, down from 239 million in 2022 for the same
period
- Balance sheet and liquidity remain strong:
- Approximately 87% of debt is at a fixed rate, with an
weighted-average cost of debt of 4.8%
- Year-to-date interest income of $175
million is up $128 million
from the same period last year, rising significantly faster than
interest expense
The company will webcast a teleconference today at
2:00 p.m. Pacific Time to discuss its financial performance,
operational matters and potentially other material developments.
Interested parties should visit the "News / Events" section of the
company's website at investors.livenationentertainment.com to
listen to the webcast. Supplemental statistical and financial
information to be provided on the call, if any, will be posted to
the "Financial Info" section of the website. A replay of the
webcast will also be available on the Live Nation website. The link
to the 3Q23 Trended Results Grid is provided above for convenience
and such grid is not a part of, or incorporated into, this press
release or any SEC filings that include this press release.
Notice Regarding Financial Statements
The company has provided certain financial statements at the end
of this press release for reference. These financial
statements should be read in conjunction with the full financial
statements, and the notes thereto, set forth in the company's
Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission today and available on the SEC's website at
sec.gov.
About Live Nation Entertainment:
Live Nation Entertainment, Inc. (NYSE: LYV) is the world's
leading live entertainment company comprised of global market
leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media
& Sponsorship. For additional information, visit
investors.livenationentertainment.com.
FINANCIAL HIGHLIGHTS
– THIRD QUARTER
|
(unaudited; $ in
millions)
|
|
|
Q3 2023
Reported
|
|
Q3 2022
Reported
|
|
Growth
|
|
Q3 2023
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$ 6,974.3
|
|
5,292.6
|
|
32 %
|
|
$ 6,849.7
|
|
29 %
|
Ticketing
|
832.6
|
|
531.6
|
|
57 %
|
|
824.1
|
|
55 %
|
Sponsorship &
Advertising
|
366.8
|
|
343.0
|
|
7 %
|
|
356.4
|
|
4 %
|
Other and
Eliminations
|
(21.7)
|
|
(13.7)
|
|
*
|
|
(21.8)
|
|
*
|
|
$ 8,152.0
|
|
$ 6,153.5
|
|
32 %
|
|
$ 8,008.4
|
|
30 %
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Income
|
$
618.5
|
|
$
506.2
|
|
22 %
|
|
$
602.6
|
|
19 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
340.9
|
|
280.8
|
|
21 %
|
|
$
330.2
|
|
18 %
|
Ticketing
|
316.4
|
|
163.2
|
|
94 %
|
|
313.3
|
|
92 %
|
Sponsorship &
Advertising
|
250.3
|
|
226.2
|
|
11 %
|
|
244.2
|
|
8 %
|
Other and
Eliminations
|
(6.8)
|
|
(3.4)
|
|
*
|
|
(6.8)
|
|
*
|
Corporate
|
(64.7)
|
|
(46.1)
|
|
(40) %
|
|
(64.7)
|
|
(40) %
|
|
$
836.1
|
|
$
620.7
|
|
35 %
|
|
$
816.2
|
|
31 %
|
|
* Percentages are not
meaningful
|
FINANCIAL HIGHLIGHTS
– NINE MONTHS
|
(unaudited; $ in
millions)
|
|
|
9 Months
2023
Reported
|
|
9 Months
2022
Reported
|
|
Growth
|
|
9 Months
2023
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
13,888.8
|
|
$
10,098.2
|
|
38 %
|
|
$
13,799.7
|
|
37 %
|
Ticketing
|
2,219.7
|
|
1,587.3
|
|
40 %
|
|
2,215.9
|
|
40 %
|
Sponsorship &
Advertising
|
839.8
|
|
722.5
|
|
16 %
|
|
825.0
|
|
14 %
|
Other and
Eliminations
|
(38.2)
|
|
(17.5)
|
|
*
|
|
(38.2)
|
|
*
|
|
$
16,910.1
|
|
$
12,390.5
|
|
36 %
|
|
$
16,802.4
|
|
36 %
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Income
|
$ 1,147.7
|
|
$
852.0
|
|
35 %
|
|
$ 1,131.7
|
|
33 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
509.8
|
|
$
354.6
|
|
44 %
|
|
$
497.7
|
|
40 %
|
Ticketing
|
880.2
|
|
600.2
|
|
47 %
|
|
875.2
|
|
46 %
|
Sponsorship &
Advertising
|
548.9
|
|
474.2
|
|
16 %
|
|
541.5
|
|
14 %
|
Other and
Eliminations
|
(32.9)
|
|
(9.8)
|
|
*
|
|
(33.0)
|
|
*
|
Corporate
|
(160.5)
|
|
(109.8)
|
|
(46) %
|
|
(160.5)
|
|
(46) %
|
|
$ 1,745.5
|
|
$ 1,309.4
|
|
33 %
|
|
$ 1,720.9
|
|
31 %
|
|
* Percentages are not
meaningful
|
Reconciliation of
Adjusted Operating Income to Operating Income
(Unaudited)
|
|
|
Q3
2023
|
Q3
2022
|
|
9 Months
2023
|
9 Months
2022
|
|
(in
millions)
|
Adjusted Operating
Income
|
$
836.1
|
$
620.7
|
|
$
1,745.5
|
$
1,309.4
|
Acquisition
expenses
|
41.0
|
7.6
|
|
79.1
|
29.2
|
Amortization of
non-recoupable ticketing contract advances
|
16.9
|
15.7
|
|
58.5
|
56.1
|
Depreciation and
amortization
|
130.7
|
102.1
|
|
382.4
|
318.5
|
Gain on sale of
operating assets
|
(1.6)
|
(35.3)
|
|
(8.1)
|
(32.6)
|
Stock-based
compensation expense
|
30.6
|
24.4
|
|
85.9
|
86.2
|
Operating
income
|
$
618.5
|
$
506.2
|
|
$
1,147.7
|
$
852.0
|
KEY OPERATING
METRICS
|
(unaudited)
|
|
|
Q3
2023
|
|
Q3
2022
|
|
9 Months
2023
|
|
9 Months
2022
|
|
(in thousands except
estimated events)
|
Concerts
(1)
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
North
America
|
9,080
|
|
8,267
|
|
23,500
|
|
21,060
|
International
|
3,010
|
|
2,960
|
|
10,736
|
|
9,429
|
Total estimated
events
|
12,090
|
|
11,227
|
|
34,236
|
|
30,489
|
Estimated
fans:
|
|
|
|
|
|
|
|
North
America
|
34,192
|
|
29,187
|
|
60,323
|
|
53,442
|
International
|
18,085
|
|
15,217
|
|
47,927
|
|
35,702
|
Total estimated
fans
|
52,277
|
|
44,404
|
|
108,250
|
|
89,144
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
89,300
|
|
73,378
|
|
240,445
|
|
196,907
|
Estimated number of
non-fee-bearing tickets
|
66,083
|
|
61,933
|
|
210,519
|
|
189,663
|
Total estimated
tickets sold
|
155,383
|
|
135,311
|
|
450,964
|
|
386,570
|
_________
(1)
|
Events generally
represent a single performance by an artist. Fans generally
represent the number of people who attend an event. Festivals are
counted as one event in the quarter in which the festival begins,
but the number of fans is based on the days the fans were present
at the festival and thus can be reported across multiple quarters.
Events and fan attendance metrics are estimated each
quarter.
|
|
|
(2)
|
The fee-bearing tickets
estimated above include primary and secondary tickets that are sold
using our Ticketmaster systems or that we issue through
affiliates. This includes primary tickets sold during the year
regardless of event timing, except for our own events where our
concert promoters control ticketing which are reported when the
events occur. The non-fee-bearing tickets estimated above include
primary tickets sold using our Ticketmaster systems, through season
seat packages and our venue clients' box offices, along with
tickets sold on our "do it yourself" platform. These ticket metrics
are net of any refunds requested and any cancellations that
occurred during the period, which may result in a negative
number.
|
Reconciliation of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation of
Free Cash Flow — Adjusted to Net
Cash Provided by Operating Activities
|
($ in
millions)
|
Q3
2023
|
|
Q3
2022
|
Net cash used in
operating activities
|
$
(884.4)
|
|
$
(619.0)
|
Less: Changes in
operating assets and liabilities (working capital)
|
1,595.6
|
|
1,184.3
|
Free cash flow from
earnings
|
$
711.2
|
|
$
565.3
|
Less: Maintenance
capital expenditures
|
(27.8)
|
|
(21.7)
|
Distributions to noncontrolling interests
|
(16.2)
|
|
(15.8)
|
Free cash flow —
adjusted
|
$
667.2
|
|
$
527.8
|
|
|
|
|
Net cash used in
investing activities
|
$
(164.8)
|
|
$
(115.0)
|
|
|
|
|
Net cash used in
financing activities
|
$
(28.6)
|
|
$
(37.6)
|
Reconciliation of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation of
Free Cash Flow — Adjusted to Net Cash Provided by Operating
Activities
|
($ in
millions)
|
9 Months
2023
|
|
9 Months
2022
|
Net cash provided by
operating activities
|
$
762.4
|
|
$
928.4
|
Less: Changes in
operating assets and liabilities (working capital)
|
728.0
|
|
206.4
|
Free cash flow from
earnings
|
$
1,490.4
|
|
$
1,134.8
|
Less: Maintenance
capital expenditures
|
(72.5)
|
|
$
(56.8)
|
Distributions to noncontrolling interests
|
(153.8)
|
|
(81.9)
|
Free cash flow —
adjusted
|
$
1,264.1
|
|
$
996.1
|
|
|
|
|
Net cash used in
investing activities
|
$
(464.0)
|
|
$
(359.7)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
$
44.9
|
|
$
(175.2)
|
Reconciliation of
Free Cash to Cash and Cash Equivalents
|
($ in
millions)
|
September
30,
2023
|
Cash and cash
equivalents
|
$
5,948.5
|
Client cash
|
(1,278.3)
|
Deferred revenue —
event-related
|
(2,580.8)
|
Accrued artist
fees
|
(405.0)
|
Collections on behalf
of others
|
(88.1)
|
Prepaid expenses —
event-related
|
998.5
|
Free cash
|
$
2,594.8
|
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 pacing for a
record 2023, with expectations that the industry will continue
growing in 2024 and for years to come; expectations for record
Ticketmaster volume in 2023; the company's momentum for 2024,
including the strength of the company's concert calendar based on
event-related deferred revenue, growth in the touring pipeline with
roughly half of expected show count booked for large venues, and
continued strong sponsorship growth with two-third of expected
commitments already booked; current pacing and expectations for
double-digit adjusted operating income growth in 2023 for the
company's sponsorship and advertising segment; current full-year
2023 margin expectations for the company's concerts, ticketing, and
sponsorship and advertising businesses; current expectations for
fan attendance at the company's operated venues in 2023; current
expectations for 2023 capital expenditures, including
revenue-generating projects; anticipated increase to earnings per
share accretion for 2023, driven primarily by OCESA performance;
expectations that foreign exchange rates will not materially impact
2023 revenue, operating income, or adjusted operating income; and
strong projected free cash flow—adjusted conversion for the full
year in 2023.
Live Nation wishes to caution you that there are some known and
unknown factors that could cause actual results to differ
materially from any future results, performance or achievements
expressed or implied by such forward-looking statements, including
but not limited to operational challenges in achieving strategic
objectives and executing on the company's plans, the risk that the
company's markets do not evolve as anticipated, the potential
impact of any economic slowdown and operational challenges
associated with selling tickets and staging events.
Live Nation refers you to the documents it files from time to
time with the U.S. Securities and Exchange Commission, or SEC,
specifically the section titled "Item 1A. Risk Factors" of the
company's most recent Annual Report filed on Form 10-K, and
Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K,
which contain and identify other important factors that could cause
actual results to differ materially from those contained in the
company's projections or forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking
statements which speak only as of the date on which they are made.
All subsequent written and oral forward-looking statements by or
concerning Live Nation are expressly qualified in their entirety by
the cautionary statements above. Live Nation does not undertake any
obligation to publicly update or revise any forward-looking
statements because of new information, future events or
otherwise.
This press release contains certain non-GAAP financial measures
as defined by SEC Regulation G. A reconciliation of each such
measure to its most directly comparable GAAP financial measure,
together with an explanation of why management believes that these
non-GAAP financial measures provide useful information to
investors, is provided herein.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP
financial measure that we define as operating income (loss) before
certain stock-based compensation expense, loss (gain) on disposal
of operating assets, depreciation and amortization (including
goodwill impairment), amortization of non-recoupable ticketing
contract advances and acquisition expenses (including transaction
costs, changes in the fair value of accrued acquisition-related
contingent consideration obligations, and acquisition-related
severance and compensation). We use AOI to evaluate the performance
of our operating segments. We believe that information about AOI
assists investors by allowing them to evaluate changes in the
operating results of our portfolio of businesses separate from
non-operational factors that affect net income (loss), thus
providing insights into both operations and the other factors that
affect reported results. AOI is not calculated or presented in
accordance with GAAP. A limitation of the use of AOI as a
performance measure is that it does not reflect the periodic costs
of certain amortizing assets used in generating revenue in our
business. Accordingly, AOI should be considered in addition to, and
not as a substitute for, operating income (loss), net income
(loss), and other measures of financial performance reported in
accordance with GAAP. Furthermore, this measure may vary among
other companies; thus, AOI as presented herein may not be
comparable to similarly titled measures of other companies.
Constant Currency is a non-GAAP financial measure when
applied to a GAAP financial measure. We calculate currency impacts
as the difference between current period activity translated using
the current period's currency exchange rates and the comparable
prior period's currency exchange rates. We present constant
currency information to provide a framework for assessing how our
underlying businesses performed excluding the effect of foreign
currency rate fluctuations.
Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial
measure that we define as net cash provided by (used in) operating
activities less changes in operating assets and liabilities, less
maintenance capital expenditures, less distributions to
noncontrolling interest partners. We use FCF among other measures,
to evaluate the ability of operations to generate cash that is
available for purposes other than maintenance capital expenditures.
We believe that information about FCF provides investors with an
important perspective on the cash available to service debt, make
acquisitions, and for revenue generating capital expenditures. FCF
is not calculated or presented in accordance with GAAP. A
limitation of the use of FCF as a performance measure is that it
does not necessarily represent funds available for operations and
is not necessarily a measure of our ability to fund our cash needs.
Accordingly, FCF should be considered in addition to, and not as a
substitute for, net cash provided by (used in) operating activities
and other measures of financial performance reported in accordance
with GAAP. Furthermore, this measure may vary among other
companies; thus, FCF as presented herein may not be comparable to
similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that we define as
cash and cash equivalents less ticketing-related client funds, less
event-related deferred revenue, less accrued expenses due to
artists and cash collected on behalf of others, plus event-related
prepaids. We use free cash as a proxy for how much cash we have
available to, among other things, optionally repay debt balances,
make acquisitions and fund revenue generating capital expenditures.
Free cash is not calculated or presented in accordance with GAAP. A
limitation of the use of free cash as a performance measure is that
it does not necessarily represent funds available from operations
and it is not necessarily a measure of our ability to fund our cash
needs. Accordingly, free cash should be considered in addition to,
and not as a substitute for, cash and cash equivalents and other
measures of financial performance reported in accordance with GAAP.
Furthermore, this measure may vary among other companies; thus,
free cash as presented herein may not be comparable to similarly
titled measures of other companies.
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(unaudited)
|
|
|
September
30,
2023
|
|
December 31,
2022
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
5,948,511
|
|
$
5,606,457
|
Accounts receivable, less allowance of $71,553 and $63,294,
respectively
|
2,503,135
|
|
1,465,383
|
Prepaid expenses
|
1,424,561
|
|
949,826
|
Restricted cash
|
6,851
|
|
5,917
|
Other current assets
|
123,620
|
|
131,939
|
Total current
assets
|
10,006,678
|
|
8,159,522
|
Property, plant and
equipment, net
|
1,955,906
|
|
1,487,663
|
Operating lease
assets
|
1,594,093
|
|
1,571,395
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
1,123,151
|
|
1,050,622
|
Indefinite-lived intangible assets, net
|
376,964
|
|
368,712
|
Goodwill
|
2,653,526
|
|
2,529,380
|
Long-term
advances
|
510,633
|
|
568,558
|
Other long-term
assets
|
919,622
|
|
724,989
|
Total
assets
|
$
19,140,573
|
|
$
16,460,841
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
1,742,004
|
|
$
1,791,025
|
Accounts payable
|
276,982
|
|
180,076
|
Accrued expenses
|
3,315,483
|
|
2,368,434
|
Deferred revenue
|
3,083,668
|
|
3,134,800
|
Current portion of long-term debt, net
|
50,609
|
|
620,032
|
Current portion of operating lease liabilities
|
150,304
|
|
140,232
|
Other current liabilities
|
132,471
|
|
68,716
|
Total current
liabilities
|
8,751,521
|
|
8,303,315
|
Long-term debt,
net
|
6,546,061
|
|
5,283,467
|
Long-term operating
lease liabilities
|
1,673,750
|
|
1,654,525
|
Other long-term
liabilities
|
468,504
|
|
455,971
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
835,768
|
|
669,766
|
Stockholders'
equity
|
|
|
|
Common stock
|
2,293
|
|
2,285
|
Additional paid-in capital
|
2,411,302
|
|
2,698,316
|
Accumulated deficit
|
(2,197,221)
|
|
(2,971,229)
|
Cost
of shares held in treasury
|
(6,865)
|
|
(6,865)
|
Accumulated other comprehensive income (loss)
|
12,242
|
|
(90,076)
|
Total Live Nation
stockholders' equity
|
221,751
|
|
(367,569)
|
Noncontrolling
interests
|
643,218
|
|
461,366
|
Total
equity
|
864,969
|
|
93,797
|
Total liabilities
and equity
|
$
19,140,573
|
|
$
16,460,841
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in thousands,
except share and per share data)
|
Revenue
|
$
8,152,019
|
|
$
6,153,535
|
|
$
16,910,132
|
|
$
12,390,517
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses
|
6,330,465
|
|
4,707,848
|
|
12,610,832
|
|
9,045,893
|
Selling, general and
administrative expenses
|
974,150
|
|
805,910
|
|
2,533,066
|
|
2,048,305
|
Depreciation and
amortization
|
130,653
|
|
102,093
|
|
382,352
|
|
318,489
|
Gain on disposal of
operating assets
|
(1,583)
|
|
(35,285)
|
|
(8,092)
|
|
(32,555)
|
Corporate
expenses
|
99,802
|
|
66,720
|
|
244,295
|
|
158,377
|
Operating
income
|
618,532
|
|
506,249
|
|
1,147,679
|
|
852,008
|
Interest
expense
|
86,215
|
|
70,514
|
|
257,425
|
|
205,722
|
Loss on extinguishment
of debt
|
—
|
|
—
|
|
18,366
|
|
—
|
Interest
income
|
(78,107)
|
|
(25,809)
|
|
(174,872)
|
|
(46,565)
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
(5,382)
|
|
14,283
|
|
(15,047)
|
|
8,040
|
Other expense,
net
|
19,251
|
|
7,960
|
|
24,235
|
|
22,398
|
Income before income
taxes
|
596,555
|
|
439,301
|
|
1,037,572
|
|
662,413
|
Income tax
expense
|
55,874
|
|
41,898
|
|
121,362
|
|
85,589
|
Net income
|
540,681
|
|
397,403
|
|
916,210
|
|
576,824
|
Net income attributable
to noncontrolling interests
|
57,186
|
|
36,001
|
|
142,202
|
|
77,804
|
Net income attributable
to common stockholders of Live Nation
|
$
483,495
|
|
$
361,402
|
|
$
774,008
|
|
$
499,020
|
|
|
|
|
|
|
|
|
Basic net income per
common share available to common stockholders of Live
Nation
|
$
1.85
|
|
$
1.47
|
|
$
2.63
|
|
$
1.79
|
Diluted net income per
common share available to common stockholders of Live
Nation
|
$
1.78
|
|
$
1.39
|
|
$
2.59
|
|
$
1.73
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
228,787,263
|
|
225,761,777
|
|
228,497,712
|
|
224,123,130
|
Diluted
|
244,163,678
|
|
243,686,803
|
|
235,146,395
|
|
239,617,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income available to common stockholders of Live Nation:
|
Net income
attributable to common stockholders of Live Nation
|
$
483,495
|
|
$
361,402
|
|
$
774,008
|
|
$
499,020
|
Accretion of
redeemable noncontrolling interests
|
(60,882)
|
|
(29,915)
|
|
(172,436)
|
|
(97,723)
|
Net income available to
common stockholders of Live Nation—basic
|
$
422,613
|
|
$
331,487
|
|
$
601,572
|
|
$
401,297
|
Convertible debt
interest, net of tax
|
10,877
|
|
6,365
|
|
7,835
|
|
12,124
|
Net income available to
common stockholders of Live Nation—diluted
|
$
433,490
|
|
$
337,852
|
|
$
609,407
|
|
$
413,421
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
916,210
|
|
$
576,824
|
Reconciling
items:
|
|
|
|
Depreciation
|
193,654
|
|
162,943
|
Amortization
|
188,698
|
|
155,546
|
Amortization of
non-recoupable ticketing contract advances
|
58,518
|
|
56,121
|
Deferred income tax
benefit
|
(10,419)
|
|
(155)
|
Amortization of debt
issuance costs and discounts
|
13,707
|
|
12,333
|
Loss on extinguishment
of debt
|
18,366
|
|
—
|
Stock-based
compensation expense
|
85,905
|
|
86,178
|
Unrealized changes in
fair value of contingent consideration
|
42,092
|
|
23,601
|
Equity in losses of
nonconsolidated affiliates, net of distributions
|
7,013
|
|
31,420
|
Provision for
uncollectible accounts receivable
|
35,707
|
|
40,736
|
Gain on mark-to-market
of equity investments
|
(46,720)
|
|
(6,757)
|
Other, net
|
(12,249)
|
|
(4,077)
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
Increase in accounts
receivable
|
(1,014,739)
|
|
(1,009,472)
|
Increase in prepaid
expenses and other assets
|
(479,434)
|
|
(297,379)
|
Increase in accounts
payable, accrued expenses and other liabilities
|
916,619
|
|
1,536,196
|
Decrease in deferred
revenue
|
(150,487)
|
|
(435,701)
|
Net cash provided by
operating activities
|
762,441
|
|
928,357
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Advances of notes
receivable
|
(129,532)
|
|
(58,307)
|
Collections of notes
receivable
|
9,550
|
|
16,473
|
Investments made in
nonconsolidated affiliates
|
(45,439)
|
|
(73,335)
|
Purchases of property,
plant and equipment
|
(304,882)
|
|
(205,987)
|
Cash acquired from
(paid for) acquisitions, net of cash paid (acquired)
|
29,151
|
|
(38,770)
|
Purchases of intangible
assets
|
(36,653)
|
|
(6,764)
|
Other, net
|
13,841
|
|
6,962
|
Net cash used in
investing activities
|
(463,964)
|
|
(359,728)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from long-term
debt, net of debt issuance costs
|
988,310
|
|
5,750
|
Payments on long-term
debt
|
(625,659)
|
|
(29,462)
|
Contributions from
noncontrolling interests
|
15,488
|
|
14,340
|
Distributions to
noncontrolling interests
|
(153,789)
|
|
(81,852)
|
Purchases and sales of
noncontrolling interests, net
|
(89,819)
|
|
(27,104)
|
Payments for capped
call transactions
|
(75,500)
|
|
—
|
Proceeds from exercise
of stock options
|
8,343
|
|
35,698
|
Taxes paid for net
share settlement of equity awards
|
(9,001)
|
|
(46,953)
|
Payments for deferred
and contingent consideration
|
(13,690)
|
|
(45,164)
|
Other, net
|
249
|
|
(472)
|
Net cash provided by
(used in) financing activities
|
44,932
|
|
(175,219)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(421)
|
|
(325,011)
|
Net increase in cash,
cash equivalents, and restricted cash
|
342,988
|
|
68,399
|
Cash, cash equivalents
and restricted cash at beginning of period
|
5,612,374
|
|
4,887,792
|
Cash, cash equivalents
and restricted cash at end of period
|
$
5,955,362
|
|
$
4,956,191
|
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SOURCE Live Nation Entertainment