Highlights
- Operating Income Improved Over $450
Million, Adjusted Operating Income Returned to
Profitability
- Event-Related Deferred Revenue at $2.1 Billion, Up $650
Million
- Concerts Pipeline for 2022 Up Double Digits from 2019, With
Touring Plans Extending Into 2023 and 2024
- Ticketmaster North America had 4th Best Month in History for
Transacted Ticket Volume
- Ticketmaster Added Over 11 Million Net New Fee-Bearing
Tickets Year-To-Date
- Sponsorship Commitments for 2022 Up Double Digits from
2019
LOS ANGELES, Aug. 3, 2021 /PRNewswire/ -- Live Nation
Entertainment, Inc. (NYSE: LYV) today released financial results
for the quarter ended June 30, 2021.
Reopening Momentum Growing
As communities reopen,
we're seeing the pent-up demand for live events play out as artists
and fans are eager to re-connect in person. In the U.S. and the
U.K., we are seeing strong ticket sales and the restart of our
concerts and festivals, highlighted over the past weekends by
Lollapalooza and Rolling Loud in the U.S. and Latitude in the U.K.
hosting a combined three quarters of a million fans. With vaccine
rollouts increasing throughout Canada and Europe, we expect additional markets to open
more broadly in the coming months.
The momentum for the return to live events has been building
every month, with ticket sales and concert attendance pacing faster
than expected, underscoring the strength and resiliency of the
concert business and live events in general. This progress,
combined with our cost discipline, has enabled us to deliver
positive adjusted operating income for the second quarter, well
ahead of where we thought we would for this quarter. We expect to
see further ramp-up accelerate through the rest of the year, with
improving operating income and all segments returning to adjusted
operating income profitability for the second half of the year,
setting us up for a full-scale 2022.
Early Indicators Demonstrate Strong Recovery
As we put
more shows on-sale this year and next, ticket sales are the best
early indicator for concerts and our overall business. To that end,
June was Ticketmaster North America's 4th best month in
history for transacted ticket volume driven in part by our U.S.
concerts division putting the highest number of shows on sale ever
during a single month – 50% more than the next highest month back
in March 2019.
In concerts, our recovery this summer continues to be led by
outdoor events at our festivals and amphitheaters. We expect to
have over 6 million fans attend our festivals during the second
half of the year, with about two-thirds of our festivals increasing
their attendance compared to 2019. Most of our festivals sold out
in record time while average ticket prices have been 10% higher
than 2019. While still early, we have delivered a strong double
digit increase in average per fan revenue and in on-site spending
versus 2019 at our amphitheater shows over the past few weeks.
Looking forward to 2022 and now also 2023, all our leading
indicators continue to point to a roaring era for concerts and
other live events. Starting with our concerts division, every major
venue type – arenas, amphitheaters, and stadiums – have pipelines
indicating double digit growth in show count and ticket sales
relative to 2019 levels. In some cases our pipeline is so strong we
are extending our planning into 2023 and even beginning to discuss
tours that extend into 2024.
At the same time Ticketmaster's leading edge technology
continues to attract new clients, adding 11 million net new fee
bearing tickets so far this year – already surpassing any previous
full year growth. As a result, Ticketmaster is set up to
benefit in 2022 from both increased Live Nation concert ticket
sales as well as additional sales from new clients. In our
sponsorship business, our brand partners have maintained and grown
their interest in live events, with contracted sponsorship up
double digits for 2022 from where we were at this point in 2019 for
2020.
Building a Stronger Flywheel
As our revenue is
rebounding, we continue to evolve our business to maximize
opportunities from the global recovery and strengthen our flywheel.
We have structurally reduced our cost basis by $200 million, making us more nimble and
converting more of our revenue to operating income and adjusted
operating income. We have integrated our Ticketmaster team
globally, enabling us to work toward a global product roadmap that
will both reduce our costs and increase our flexibility and speed
to deploy new client tools and improve our marketplace experience.
Lastly, we continue to build our direct-to-consumer businesses,
with initiatives ranging from streaming concerts to NFTs to artist
merchandise, bringing more value to artists and deepening fan
relationships.
These enhancements, combined with the strongest supply and
demand dynamics our industry has ever seen, are fueling our core
flywheel strategy and setting us up for multiple years of growth in
attendance, revenue, operating income and adjusted operating
income.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
Additional Information on Liquidity
At the end of the
second quarter of 2021, the company had total cash and cash
equivalents of $4.0 billion, which
includes $1.1 billion of free cash.
This free cash, along with $971
million of available debt capacity, gives the company
$2.1 billion of available
liquidity. The company believes this level of liquidity will
provide it with the runway it needs as more shows return.
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 – SECOND QUARTER (unaudited; $ in
millions)
|
|
|
Q2 2021
Reported
|
|
Q2 2020
Reported
|
|
Growth
|
|
Q2 2021
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
287.0
|
|
|
$
|
141.8
|
|
|
*
|
|
$
|
277.1
|
|
|
*
|
Ticketing
|
244.0
|
|
|
(87.0)
|
|
|
*
|
|
240.0
|
|
|
*
|
Sponsorship &
Advertising
|
44.6
|
|
|
18.4
|
|
|
*
|
|
43.5
|
|
|
*
|
Other and
Eliminations
|
0.3
|
|
|
0.9
|
|
|
*
|
|
0.3
|
|
|
*
|
|
$
|
575.9
|
|
|
$
|
74.1
|
|
|
*
|
|
$
|
560.9
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(146.3)
|
|
|
$
|
(279.9)
|
|
|
48
|
%
|
|
$
|
(140.4)
|
|
|
50
|
%
|
Ticketing
|
43.8
|
|
|
(267.2)
|
|
|
*
|
|
46.8
|
|
|
*
|
Sponsorship &
Advertising
|
5.3
|
|
|
(11.2)
|
|
|
*
|
|
4.9
|
|
|
*
|
Other and
Eliminations
|
0.3
|
|
|
(6.8)
|
|
|
*
|
|
0.2
|
|
|
*
|
Corporate
|
(30.4)
|
|
|
(23.0)
|
|
|
(32)
|
%
|
|
(30.4)
|
|
|
(32)
|
%
|
|
$
|
(127.3)
|
|
|
$
|
(588.1)
|
|
|
78
|
%
|
|
$
|
(118.9)
|
|
|
80
|
%
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(84.0)
|
|
|
$
|
(210.7)
|
|
|
60
|
%
|
|
$
|
(81.5)
|
|
|
61
|
%
|
Ticketing
|
99.4
|
|
|
(203.9)
|
|
|
*
|
|
100.0
|
|
|
*
|
Sponsorship &
Advertising
|
13.0
|
|
|
(1.8)
|
|
|
*
|
|
12.6
|
|
|
*
|
Other and
Eliminations
|
(1.2)
|
|
|
(3.8)
|
|
|
*
|
|
(1.2)
|
|
|
*
|
Corporate
|
(17.5)
|
|
|
(11.7)
|
|
|
(50)
|
%
|
|
(17.5)
|
|
|
(50)
|
%
|
|
$
|
9.7
|
|
|
$
|
(431.9)
|
|
|
*
|
|
$
|
12.4
|
|
|
*
|
|
* percentages are
not meaningful
|
FINANCIAL
HIGHLIGHTS – SIX MONTHS (unaudited; $ in
millions)
|
|
|
6 Months
2021
Reported
|
|
6 Months
2020
Reported
|
|
Growth
|
|
6 Months
2021
Constant
Currency
|
|
Growth at
Constant
Currency
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
526.4
|
|
|
$
|
1,135.2
|
|
|
(54)
|
%
|
|
$
|
510.1
|
|
|
(55)
|
%
|
|
Ticketing
|
272.3
|
|
|
197.3
|
|
|
38
|
%
|
|
266.9
|
|
|
35
|
%
|
|
Sponsorship &
Advertising
|
67.2
|
|
|
108.6
|
|
|
(38)
|
%
|
|
65.2
|
|
|
(40)
|
%
|
|
Other and
Eliminations
|
0.7
|
|
|
(1.3)
|
|
|
*
|
|
0.7
|
|
|
*
|
|
|
$
|
866.6
|
|
|
$
|
1,439.8
|
|
|
(40)
|
%
|
|
$
|
842.9
|
|
|
(41)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(291.7)
|
|
|
$
|
(441.0)
|
|
|
34
|
%
|
|
$
|
(283.2)
|
|
|
36
|
%
|
|
Ticketing
|
(76.8)
|
|
|
(283.1)
|
|
|
73
|
%
|
|
(71.6)
|
|
|
75
|
%
|
|
Sponsorship &
Advertising
|
(1.1)
|
|
|
27.0
|
|
|
*
|
|
(1.9)
|
|
|
*
|
|
Other and
Eliminations
|
(0.2)
|
|
|
(8.2)
|
|
|
*
|
|
(0.2)
|
|
|
*
|
|
Corporate
|
(60.7)
|
|
|
(55.4)
|
|
|
(10)
|
%
|
|
(60.7)
|
|
|
(10)
|
%
|
|
|
$
|
(430.5)
|
|
|
$
|
(760.7)
|
|
|
43
|
%
|
|
$
|
(417.6)
|
|
|
45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(158.6)
|
|
|
$
|
(298.9)
|
|
|
47
|
%
|
|
$
|
(154.9)
|
|
|
48
|
%
|
|
Ticketing
|
36.7
|
|
|
(158.9)
|
|
|
*
|
|
38.3
|
|
|
*
|
|
Sponsorship &
Advertising
|
16.5
|
|
|
44.8
|
|
|
(63)
|
%
|
|
15.7
|
|
|
(65)
|
%
|
|
Other and
Eliminations
|
(3.4)
|
|
|
(6.6)
|
|
|
*
|
|
(3.4)
|
|
|
*
|
|
Corporate
|
(33.3)
|
|
|
(32.8)
|
|
|
(2)
|
%
|
|
(33.3)
|
|
|
(2)
|
%
|
|
|
$
|
(142.1)
|
|
|
$
|
(452.4)
|
|
|
69
|
%
|
|
$
|
(137.6)
|
|
|
70
|
%
|
|
|
* percentages are
not meaningful
|
- As of June 30, 2021, total cash
and cash equivalents were $4.0
billion, which includes $1.1
billion in ticketing client cash and $1.1 billion in free cash.
- Event-related deferred revenue was $2.1
billion as of June 30, 2021,
compared to $0.9 billion as of
June 30, 2020. In addition, the
company had long-term deferred revenue of $381 million for events that have been
rescheduled more than one year out as of June 30, 2021.
- For the six months ended June 30,
2021, net cash provided by operating activities was
$1.2 billion and free cash flow —
adjusted was $(307.4) million.
- The company currently expects capital expenditures for the full
year to be approximately $170 million
in 2021, with over 60% of this spend going into revenue generating
projects.
KEY OPERATING
METRICS (unaudited)
|
|
|
Q2
2021
|
|
Q2
2020
|
|
6 Months
2021
|
|
6 Months
2020
|
|
(in thousands
except estimated events)
|
Concerts
(1)
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
North
America
|
1,124
|
|
|
25
|
|
|
1,415
|
|
|
4,797
|
|
International
|
560
|
|
|
107
|
|
|
924
|
|
|
2,430
|
|
Total estimated
events
|
1,684
|
|
|
132
|
|
|
2,339
|
|
|
7,227
|
|
Estimated
fans:
|
|
|
|
|
|
|
|
North
America
|
629
|
|
|
10
|
|
|
695
|
|
|
5,739
|
|
International
|
706
|
|
|
41
|
|
|
1,135
|
|
|
4,718
|
|
Total estimated
fans
|
1,335
|
|
|
51
|
|
|
1,830
|
|
|
10,457
|
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
26,345
|
|
|
(8,870)
|
|
|
32,926
|
|
|
27,335
|
|
Estimated number of
non-fee-bearing tickets
|
22,216
|
|
|
6,385
|
|
|
38,376
|
|
|
61,639
|
|
Total estimated
tickets sold
|
48,561
|
|
|
(2,485)
|
|
|
71,302
|
|
|
88,974
|
|
|
_________
|
(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 metric includes primary tickets sold during the
period 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 ticketing
metrics are net of any refunds requested and any cancellations that
occurred during the period and up to the time of reporting of these
consolidated financial statements, which may result in a negative
number. Fee-bearing tickets sold above are net of refunds of
4.1 million and 10.7 million tickets for the three months
ended June 30, 2021 and 2020, respectively, and
7.1 million and 18.0 million tickets for the six months
ended June 30, 2021 and 2020, 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 (Used in) Operating Activities
|
|
($ in
millions)
|
Q2
2021
|
|
Q2
2020
|
Net cash provided
by (used in) operating activities
|
$
|
1,095.4
|
|
|
$
|
(1,022.1)
|
|
Less: Changes in
operating assets and liabilities (working capital)
|
(1,159.6)
|
|
|
598.4
|
|
Free cash flow from
earnings
|
$
|
(64.2)
|
|
|
$
|
(423.7)
|
|
Less: Maintenance
capital expenditures
|
(8.6)
|
|
|
(15.3)
|
|
Distributions to noncontrolling interests
|
(8.9)
|
|
|
(11.2)
|
|
Free cash flow —
adjusted
|
$
|
(81.7)
|
|
|
$
|
(450.2)
|
|
|
|
|
|
Net cash used in
investing activities
|
$
|
(60.4)
|
|
|
$
|
(68.2)
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
$
|
(15.5)
|
|
|
$
|
1,079.7
|
|
($ in
millions)
|
6 Months
2021
|
|
6 Months
2020
|
Net cash provided
by (used in) operating activities
|
$
|
1,170.0
|
|
|
$
|
(390.4)
|
|
Less: Changes in
operating assets and liabilities (working capital)
|
(1,448.6)
|
|
|
(103.0)
|
|
Free cash flow from
earnings
|
$
|
(278.6)
|
|
|
$
|
(493.4)
|
|
Less: Maintenance
capital expenditures
|
(14.3)
|
|
|
(45.7)
|
|
Distributions to noncontrolling interests
|
(14.5)
|
|
|
(26.3)
|
|
Free cash flow —
adjusted
|
$
|
(307.4)
|
|
|
$
|
(565.4)
|
|
|
|
|
|
Net cash used in
investing activities
|
$
|
(50.3)
|
|
|
$
|
(190.6)
|
|
|
|
|
|
Net cash provided
by financing activities
|
$
|
401.5
|
|
|
$
|
1,462.1
|
|
Reconciliation
of Free Cash to Cash and Cash Equivalents
|
|
($ in
millions)
|
June 30,
2021
|
Cash and cash
equivalents
|
$
|
4,042.6
|
|
Client
cash
|
(1,127.5)
|
|
Deferred revenue —
event-related
|
(2,125.3)
|
|
Accrued artist
fees
|
(15.4)
|
|
Collections on behalf
of others
|
(91.5)
|
|
Prepaid expenses —
event-related
|
419.8
|
|
Free cash
|
$
|
1,102.7
|
|
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 current
timing expectations for the broader opening of additional markets;
the company's anticipated ramp-up acceleration through the
remainder of 2021; anticipated improving operating income and
adjusted operating income segment profitability for the second half
of 2021, and an anticipated full–scale 2022; expected festival
attendance in the second half of 2021; the company's pipeline
indicating double digit growth in show count and ticket sales
relatives to 2019; Ticketmaster's positioning to benefit in 2022
from both increased Live Nation concert ticket sales and sales from
new clients; Ticketmaster's global product roadmap and the
prospects that it will both reduce costs and increase flexibility
and speed to deploy new clients tools and improve marketplace
experience; the company's prospects for multiple years of growth in
attendance, revenue, operating income, and adjusted operating
income; and the company's current expectations for capital
expenditures in 2021. Live Nation wishes to caution you that there
are some known and unknown factors that could cause actual results
to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking
statements, including but not limited to operational challenges in
achieving strategic objectives and executing on the company's
plans, the risk that the company's markets do not evolve as
anticipated, the potential impact of any economic slowdown and
operational challenges associated with selling tickets and staging
events.
Live Nation refers you to the documents it files from time to
time with the U.S. Securities and Exchange Commission, or SEC,
specifically the section titled "Item 1A. Risk Factors" of the
company's most recent Annual Report filed on Form 10-K, and
Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K,
which contain and identify other important factors that could cause
actual results to differ materially from those contained in the
company's projections or forward-looking statements. You are
cautioned not to place undue reliance on these forward-looking
statements which speak only as of the date on which they are made.
All subsequent written and oral forward-looking statements by or
concerning Live Nation are expressly qualified in their entirety by
the cautionary statements above. Live Nation does not undertake any
obligation to publicly update or revise any forward-looking
statements because of new information, future events or
otherwise.
This press release contains certain non-GAAP financial measures
as defined by SEC Regulation G. A reconciliation of each such
measure to its most directly comparable GAAP financial measure,
together with an explanation of why management believes that these
non-GAAP financial measures provide useful information to
investors, is provided herein.
Adjusted Operating Income (Loss), or AOI, is a non-GAAP
financial measure that we define as operating income (loss) before
certain stock-based compensation expense, loss (gain) on disposal
of operating assets, depreciation and amortization (including
goodwill impairment), amortization of non-recoupable ticketing
contract advances and acquisition expenses (including transaction
costs, changes in the fair value of accrued acquisition-related
contingent consideration obligations, and acquisition-related
severance and compensation). We use AOI to evaluate the performance
of our operating segments. We believe that information about AOI
assists investors by allowing them to evaluate changes in the
operating results of our portfolio of businesses separate from
non-operational factors that affect net income (loss), thus
providing insights into both operations and the other factors that
affect reported results. AOI is not calculated or presented in
accordance with GAAP. A limitation of the use of AOI as a
performance measure is that it does not reflect the periodic costs
of certain amortizing assets used in generating revenue in our
business. Accordingly, AOI should be considered in addition to, and
not as a substitute for, operating income (loss), net income
(loss), and other measures of financial performance reported in
accordance with GAAP. Furthermore, this measure may vary among
other companies; thus, AOI as presented herein may not be
comparable to similarly titled measures of other companies.
Constant Currency is a non-GAAP financial measure. We
calculate currency impacts as the difference between current period
activity translated using the current period's currency exchange
rates and the comparable prior period's currency exchange rates. We
present constant currency information to provide a framework for
assessing how our underlying businesses performed excluding the
effect of foreign currency rate fluctuations.
Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial
measure that we define as net cash provided by (used in) operating
activities less changes in operating assets and liabilities, less
maintenance capital expenditures, less distributions to
noncontrolling interest partners. We use FCF among other measures,
to evaluate the ability of operations to generate cash that is
available for purposes other than maintenance capital expenditures.
We believe that information about FCF provides investors with an
important perspective on the cash available to service debt, make
acquisitions, and for revenue generating capital expenditures. FCF
is not calculated or presented in accordance with GAAP. A
limitation of the use of FCF as a performance measure is that it
does not necessarily represent funds available for operations and
is not necessarily a measure of our ability to fund our cash needs.
Accordingly, FCF should be considered in addition to, and not as a
substitute for, net cash provided by (used in) operating activities
and other measures of financial performance reported in accordance
with GAAP. Furthermore, this measure may vary among other
companies; thus, FCF as presented herein may not be comparable to
similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that we define as
cash and cash equivalents less ticketing-related client funds, less
event-related deferred revenue, less accrued expenses due to
artists and cash collected on behalf of others, plus event-related
prepaids. We use free cash as a proxy for how much cash we have
available to, among other things, optionally repay debt balances,
make acquisitions and fund revenue generating capital expenditures.
Free cash is not calculated or presented in accordance with GAAP. A
limitation of the use of free cash as a performance measure is that
it does not necessarily represent funds available from operations
and it is not necessarily a measure of our ability to fund our cash
needs. Accordingly, free cash should be considered in addition to,
and not as a substitute for, cash and cash equivalents and other
measures of financial performance reported in accordance with GAAP.
Furthermore, this measure may vary among other companies; thus,
free cash as presented herein may not be comparable to similarly
titled measures of other companies.
Reconciliations of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation
of Adjusted Operating Income (Loss) to Operating Income
(Loss)
|
|
($ in
millions)
|
Operating income
(loss)
|
|
Stock-based
compensation expense
|
|
Loss (gain) on
disposal of operating assets
|
|
Depreciation
and
amortization
|
|
Amortization
of
non-recoupable
ticketing
contract
advances
|
|
Acquisition
expenses
|
|
Adjusted operating
income (loss) reported
|
|
Foreign exchange
impact
|
|
Adjusted operating
income (loss) constant currency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(146.3)
|
|
|
$
|
2.5
|
|
|
$
|
—
|
|
|
$
|
58.4
|
|
|
$
|
—
|
|
|
$
|
1.4
|
|
|
$
|
(84.0)
|
|
|
$
|
2.5
|
|
|
$
|
(81.5)
|
|
Ticketing
|
43.8
|
|
|
1.1
|
|
|
—
|
|
|
34.9
|
|
|
19.6
|
|
|
—
|
|
|
99.4
|
|
|
0.6
|
|
|
100.0
|
|
Sponsorship &
Advertising
|
5.3
|
|
|
0.2
|
|
|
—
|
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
13.0
|
|
|
(0.4)
|
|
|
12.6
|
|
Other &
Eliminations
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.5)
|
|
|
—
|
|
|
(1.2)
|
|
|
—
|
|
|
(1.2)
|
|
Corporate
|
(30.4)
|
|
|
9.0
|
|
|
—
|
|
|
2.8
|
|
|
—
|
|
|
1.1
|
|
|
(17.5)
|
|
|
—
|
|
|
(17.5)
|
|
Total Live
Nation
|
$
|
(127.3)
|
|
|
$
|
12.8
|
|
|
$
|
—
|
|
|
$
|
103.6
|
|
|
$
|
18.1
|
|
|
$
|
2.5
|
|
|
$
|
9.7
|
|
|
$
|
2.7
|
|
|
$
|
12.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(279.9)
|
|
|
$
|
24.4
|
|
|
$
|
0.6
|
|
|
$
|
64.3
|
|
|
$
|
—
|
|
|
$
|
(20.1)
|
|
|
$
|
(210.7)
|
|
|
$
|
—
|
|
|
$
|
(210.7)
|
|
Ticketing
|
(267.2)
|
|
|
4.1
|
|
|
—
|
|
|
44.3
|
|
|
14.7
|
|
|
0.2
|
|
|
(203.9)
|
|
|
—
|
|
|
(203.9)
|
|
Sponsorship &
Advertising
|
(11.2)
|
|
|
1.7
|
|
|
—
|
|
|
7.7
|
|
|
—
|
|
|
—
|
|
|
(1.8)
|
|
|
—
|
|
|
(1.8)
|
|
Other &
Eliminations
|
(6.8)
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
(1.4)
|
|
|
—
|
|
|
(3.8)
|
|
|
—
|
|
|
(3.8)
|
|
Corporate
|
(23.0)
|
|
|
8.3
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
0.9
|
|
|
(11.7)
|
|
|
—
|
|
|
(11.7)
|
|
Total Live
Nation
|
$
|
(588.1)
|
|
|
$
|
38.5
|
|
|
$
|
0.6
|
|
|
$
|
122.8
|
|
|
$
|
13.3
|
|
|
$
|
(19.0)
|
|
|
$
|
(431.9)
|
|
|
$
|
—
|
|
|
$
|
(431.9)
|
|
|
|
|
Six Months Ended
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(291.7)
|
|
|
$
|
19.9
|
|
|
$
|
0.1
|
|
|
$
|
121.3
|
|
|
$
|
—
|
|
|
$
|
(8.2)
|
|
|
$
|
(158.6)
|
|
|
$
|
3.7
|
|
|
$
|
(154.9)
|
|
Ticketing
|
(76.8)
|
|
|
8.9
|
|
|
—
|
|
|
71.4
|
|
|
32.1
|
|
|
1.1
|
|
|
36.7
|
|
|
1.6
|
|
|
38.3
|
|
Sponsorship &
Advertising
|
(1.1)
|
|
|
3.0
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
|
—
|
|
|
16.5
|
|
|
(0.8)
|
|
|
15.7
|
|
Other &
Eliminations
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.4)
|
|
|
0.2
|
|
|
(3.4)
|
|
|
—
|
|
|
(3.4)
|
|
Corporate
|
(60.7)
|
|
|
21.0
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
1.3
|
|
|
(33.3)
|
|
|
—
|
|
|
(33.3)
|
|
Total Live
Nation
|
$
|
(430.5)
|
|
|
$
|
52.8
|
|
|
$
|
0.1
|
|
|
$
|
212.5
|
|
|
$
|
28.7
|
|
|
$
|
(5.6)
|
|
|
$
|
(142.1)
|
|
|
$
|
4.5
|
|
|
$
|
(137.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(441.0)
|
|
|
$
|
26.7
|
|
|
$
|
0.7
|
|
|
$
|
136.6
|
|
|
$
|
—
|
|
|
$
|
(21.9)
|
|
|
$
|
(298.9)
|
|
|
$
|
—
|
|
|
$
|
(298.9)
|
|
Ticketing
|
(283.1)
|
|
|
5.8
|
|
|
—
|
|
|
82.5
|
|
|
34.9
|
|
|
1.0
|
|
|
(158.9)
|
|
|
—
|
|
|
(158.9)
|
|
Sponsorship &
Advertising
|
27.0
|
|
|
2.7
|
|
|
—
|
|
|
15.1
|
|
|
—
|
|
|
—
|
|
|
44.8
|
|
|
—
|
|
|
44.8
|
|
Other &
Eliminations
|
(8.2)
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
(2.8)
|
|
|
—
|
|
|
(6.6)
|
|
|
—
|
|
|
(6.6)
|
|
Corporate
|
(55.4)
|
|
|
15.1
|
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|
1.3
|
|
|
(32.8)
|
|
|
—
|
|
|
(32.8)
|
|
Total Live
Nation
|
$
|
(760.7)
|
|
|
$
|
50.3
|
|
|
$
|
0.7
|
|
|
$
|
244.8
|
|
|
$
|
32.1
|
|
|
$
|
(19.6)
|
|
|
$
|
(452.4)
|
|
|
$
|
—
|
|
|
$
|
(452.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC. CONSOLIDATED BALANCE
SHEETS (unaudited)
|
|
|
June 30,
2021
|
|
December
31,
2020
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
|
4,042,619
|
|
|
$
|
2,537,787
|
|
Accounts receivable, less allowance of $52,767 and $72,904,
respectively
|
646,705
|
|
|
486,734
|
|
Prepaid expenses
|
678,375
|
|
|
577,130
|
|
Restricted cash
|
5,018
|
|
|
8,652
|
|
Other current assets
|
50,534
|
|
|
39,465
|
|
Total current
assets
|
5,423,251
|
|
|
3,649,768
|
|
Property, plant and
equipment, net
|
1,046,478
|
|
|
1,101,414
|
|
Operating lease
assets
|
1,385,184
|
|
|
1,424,223
|
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
777,502
|
|
|
855,600
|
|
Indefinite-lived intangible assets
|
369,100
|
|
|
369,058
|
|
Goodwill
|
2,122,704
|
|
|
2,129,203
|
|
Long-term
advances
|
657,907
|
|
|
668,756
|
|
Other long-term
assets
|
463,530
|
|
|
391,281
|
|
Total
assets
|
$
|
12,245,656
|
|
|
$
|
10,589,303
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
|
1,304,805
|
|
|
$
|
744,096
|
|
Accounts payable
|
90,360
|
|
|
86,356
|
|
Accrued expenses
|
916,161
|
|
|
894,149
|
|
Deferred revenue
|
2,648,540
|
|
|
1,839,323
|
|
Current portion of long-term debt, net
|
46,481
|
|
|
53,415
|
|
Current portion of operating lease liabilities
|
113,576
|
|
|
107,147
|
|
Other current liabilities
|
45,377
|
|
|
72,083
|
|
Total current
liabilities
|
5,165,300
|
|
|
3,796,569
|
|
Long-term debt,
net
|
5,295,207
|
|
|
4,855,096
|
|
Long-term operating
lease liabilities
|
1,429,303
|
|
|
1,445,674
|
|
Long-term deferred
income taxes
|
173,971
|
|
|
170,759
|
|
Other long-term
liabilities
|
510,711
|
|
|
182,508
|
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
250,767
|
|
|
272,449
|
|
Stockholders'
equity
|
|
|
|
Common stock
|
2,164
|
|
|
2,145
|
|
Additional paid-in capital
|
2,433,462
|
|
|
2,386,790
|
|
Accumulated deficit
|
(3,179,691)
|
|
|
(2,676,833)
|
|
Cost
of shares held in treasury
|
(6,865)
|
|
|
(6,865)
|
|
Accumulated other comprehensive loss
|
(161,832)
|
|
|
(177,009)
|
|
Total Live Nation
stockholders' equity
|
(912,762)
|
|
|
(471,772)
|
|
Noncontrolling
interests
|
333,159
|
|
|
338,020
|
|
Total
equity
|
(579,603)
|
|
|
(133,752)
|
|
Total liabilities
and equity
|
$
|
12,245,656
|
|
|
$
|
10,589,303
|
|
LIVE NATION
ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(in thousands,
except share and per share data)
|
Revenue
|
$
|
575,946
|
|
|
$
|
74,084
|
|
|
$
|
866,555
|
|
|
$
|
1,439,777
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses
|
243,120
|
|
|
194,557
|
|
|
377,086
|
|
|
1,068,377
|
|
Selling, general and
administrative expenses
|
328,894
|
|
|
323,352
|
|
|
651,747
|
|
|
837,373
|
|
Depreciation and
amortization
|
103,647
|
|
|
122,767
|
|
|
212,523
|
|
|
244,847
|
|
Loss (gain) on
disposal of operating assets
|
(28)
|
|
|
559
|
|
|
110
|
|
|
689
|
|
Corporate
expenses
|
27,598
|
|
|
20,916
|
|
|
55,546
|
|
|
49,228
|
|
Operating
loss
|
(127,285)
|
|
|
(588,067)
|
|
|
(430,457)
|
|
|
(760,737)
|
|
Interest
expense
|
68,909
|
|
|
52,689
|
|
|
139,739
|
|
|
96,688
|
|
Interest
income
|
(1,471)
|
|
|
(2,429)
|
|
|
(2,620)
|
|
|
(6,902)
|
|
Equity in losses of
nonconsolidated affiliates
|
2,998
|
|
|
6,613
|
|
|
2,417
|
|
|
4,041
|
|
Loss (gain) from sale
of investments in nonconsolidated
affiliates
|
993
|
|
|
35
|
|
|
(52,947)
|
|
|
35
|
|
Other expense
(income), net
|
9,461
|
|
|
(5,208)
|
|
|
7,462
|
|
|
(580)
|
|
Loss before income
taxes
|
(208,175)
|
|
|
(639,767)
|
|
|
(524,508)
|
|
|
(854,019)
|
|
Income tax expense
(benefit)
|
2,285
|
|
|
(29,183)
|
|
|
8,674
|
|
|
(32,513)
|
|
Net loss
|
(210,460)
|
|
|
(610,584)
|
|
|
(533,182)
|
|
|
(821,506)
|
|
Net loss attributable
to noncontrolling interests
|
(14,795)
|
|
|
(43,067)
|
|
|
(30,324)
|
|
|
(69,205)
|
|
Net loss attributable
to common stockholders of Live Nation
|
$
|
(195,665)
|
|
|
$
|
(567,517)
|
|
|
$
|
(502,858)
|
|
|
$
|
(752,301)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share available to
common stockholders of Live Nation
|
$
|
(0.90)
|
|
|
$
|
(2.67)
|
|
|
$
|
(2.34)
|
|
|
$
|
(3.62)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
215,702,508
|
|
|
211,693,923
|
|
|
215,120,467
|
|
|
211,371,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
loss available to common stockholders
of Live Nation:
|
|
|
|
|
|
|
|
Net loss attributable
to common stockholders of Live Nation
|
$
|
(195,665)
|
|
|
$
|
(567,517)
|
|
|
$
|
(502,858)
|
|
|
$
|
(752,301)
|
|
Accretion of redeemable
noncontrolling interests
|
951
|
|
|
1,595
|
|
|
35
|
|
|
(12,945)
|
|
Basic and diluted net
loss available to common stockholders
of Live Nation
|
$
|
(194,714)
|
|
|
$
|
(565,922)
|
|
|
$
|
(502,823)
|
|
|
$
|
(765,246)
|
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS (unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net loss
|
$
|
(533,182)
|
|
|
$
|
(821,506)
|
|
Reconciling
items:
|
|
|
|
Depreciation
|
111,864
|
|
|
122,825
|
|
Amortization
|
100,457
|
|
|
122,022
|
|
Amortization of
non-recoupable ticketing contract advances
|
28,728
|
|
|
32,126
|
|
Deferred income tax
expense (benefit)
|
6,149
|
|
|
(12,316)
|
|
Amortization of debt
issuance costs and discounts
|
18,373
|
|
|
14,856
|
|
Non-cash compensation
expense
|
52,847
|
|
|
50,270
|
|
Unrealized changes in
fair value of contingent consideration
|
(8,040)
|
|
|
(24,789)
|
|
Provision for
uncollectible accounts receivable
|
(16,563)
|
|
|
25,764
|
|
Loss (gain) on sale of
investments in nonconsolidated affiliates
|
(52,947)
|
|
|
35
|
|
Other, net
|
13,700
|
|
|
(2,644)
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
Decrease (increase) in
accounts receivable
|
(143,343)
|
|
|
363,079
|
|
Increase in prepaid
expenses and other assets
|
(102,554)
|
|
|
(50,493)
|
|
Increase (decrease) in
accounts payable, accrued expenses and other liabilities
|
518,810
|
|
|
(807,552)
|
|
Increase in deferred
revenue
|
1,175,690
|
|
|
597,963
|
|
Net cash provided by
(used in) operating activities
|
1,169,989
|
|
|
(390,360)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Advances of notes
receivable
|
(12,830)
|
|
|
(11,457)
|
|
Collections of notes
receivable
|
10,618
|
|
|
12,782
|
|
Investments made in
nonconsolidated affiliates
|
(33,729)
|
|
|
(8,150)
|
|
Purchases of
property, plant and equipment
|
(58,066)
|
|
|
(142,509)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(7,627)
|
|
|
(37,471)
|
|
Purchases of
intangible assets
|
(11,191)
|
|
|
(5,594)
|
|
Proceeds from sale of
investments in nonconsolidated affiliates
|
61,618
|
|
|
105
|
|
Other, net
|
912
|
|
|
1,653
|
|
Net cash used in
investing activities
|
(50,295)
|
|
|
(190,641)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from
long-term debt, net of debt issuance costs
|
511,068
|
|
|
1,602,097
|
|
Payments on long-term
debt
|
(85,125)
|
|
|
(11,087)
|
|
Contributions from
noncontrolling interests
|
15,288
|
|
|
1,467
|
|
Distributions to
noncontrolling interests
|
(14,542)
|
|
|
(26,315)
|
|
Purchases and sales
of noncontrolling interests, net
|
(3,273)
|
|
|
(88,191)
|
|
Proceeds from
exercise of stock options
|
28,083
|
|
|
11,406
|
|
Taxes paid for net
share settlement of equity awards
|
(38,209)
|
|
|
(17,339)
|
|
Payments for deferred
and contingent consideration
|
(11,926)
|
|
|
(9,940)
|
|
Other, net
|
105
|
|
|
—
|
|
Net cash provided by
financing activities
|
401,469
|
|
|
1,462,098
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(19,965)
|
|
|
(54,974)
|
|
Net increase in cash,
cash equivalents, and restricted cash
|
1,501,198
|
|
|
826,123
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
2,546,439
|
|
|
2,474,242
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
4,047,637
|
|
|
$
|
3,300,365
|
|
SECOND QUARTER 2021
Supplemental
Earnings Tables
(unaudited)
Free Cash & Cash Used in the Quarter
Changes to
the company's free cash balance from the end of first quarter of
2021 to the end of the second quarter of 2021 were as follows:
|
(in
millions)
|
Free cash balance
at 3/31/2021
|
$
|
1,105
|
|
Operational burn
*
|
(347)
|
|
Non-operational cash
uses, including capital expenditures, acquisition activity, net
advances and interest
payments
|
(174)
|
|
Operational
contribution margin **
|
358
|
|
Inflows / (outflows)
from timing classification changes between short-term and
long-term
|
161
|
|
Free cash balance
at 6/30/2021
|
$
|
1,103
|
|
|
* Operational burn is
our SG&A and Corporate costs less bonus, severance and bad
debt.
|
** Operational
contribution margin is our contribution margin less one-time items
(Ticketing refunds, insurance recoveries, and artist advance
reserves).
|
Ticket Refunds - Q2 2021
The company still has some
shows in the process of rescheduling, or that are rescheduled but
not yet offering refunds. In addition, refunds may occur in the
future for additional cancellations or rescheduled events resulting
from the global shutdown of our live events. Based on current and
estimated future impacted events and fan behavior, the company has
recorded $40 million in estimated additional fan refunds from
Live Nation-held funds as of June 30, 2021. As a result, the
company has reclassified these funds from deferred revenue to
accrued ticket refunds as of the second quarter of 2021.
Event-Related Deferred Revenue
The company's deferred
revenue for events over the next 12 months was $2,125 million as of June 30, 2021, compared
to $1,456 million as of
March 31, 2021. The $877 million
increase due to ticket sales for future events was partially offset
by sales of events that have shifted into the second half of 2022
and refunds paid out of Live Nation funds for Q2.
|
(in
millions)
|
Current Deferred
Revenue as of 3/31/2021
|
$
|
1,456
|
|
Shift from current
deferred revenue to long-term deferred revenue
|
(151)
|
|
Adjustment to
estimated additional future refunds from Live Nation-held
cash
|
49
|
|
Currency
impacts
|
10
|
|
Ticket sales in the
second quarter of 2021
|
877
|
|
Cash from shows that
played off
|
(14)
|
|
Estimated refunds
from Live Nation cash
|
(103)
|
|
Other /
Net
|
1
|
|
Current Deferred
Revenue as of 6/30/2021
|
$
|
2,125
|
|
In addition, the company had approximately $381 million of long-term event-related deferred
revenue at the end of the second quarter of 2021.
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SOURCE Live Nation Entertainment