In the news release, Live Nation Entertainment Reports Second
Quarter 2020 Results, issued 05-Aug-2020 by Live Nation Entertainment over PR
Newswire, the first subheadline should read "86% of Fans Opting to
Keep Tickets for Rescheduled Shows" rather than "6% of Fans Opting
to Keep Tickets for Rescheduled Shows" as incorrectly transmitted
by PR Newswire. The complete, corrected release follows:
Live Nation Entertainment Reports Second Quarter 2020 Results
Highlights
- 86% of Fans Opting to Keep Tickets for Rescheduled
Shows
- 19 Million Tickets Sold to More Than 4,000 Concerts and
Festivals Scheduled for 2021
- $800 Million Cost Reduction
Program Target in 2020
- $1.4 Billion Cash Management
Program Target in 2020
LOS ANGELES, Aug. 5, 2020 /PRNewswire/ -- Live Nation
Entertainment, Inc. (NYSE: LYV) today released financial results
for the quarter ended June 30, 2020.
Over the past three months, our top priority has been
strengthening our financial position to ensure that we have the
liquidity and flexibility to get through an extended period with no
live events. Our expectation is that live events will return at
scale in the summer of 2021, with ticket sales ramping up in the
quarters leading up to these shows.
Confidence in the Future of Live
Importantly, we remain confident that fans will return to live
events when it is safe to do so. Our strongest indicator of demand
is that fans are holding on to their tickets, even when given the
option of a refund. Through the end of the second quarter, 86% of
concert fans are keeping their tickets for rescheduled shows,
demonstrating their continued desire to attend concerts in the
future despite the current uncertainty.
Our expectations for a robust outdoor summer season in 2021 are
also reinforced by the two-thirds of fans keeping their tickets for
canceled festivals so they can go to next year's show, along with
strong early ticket sales for festivals in the UK next summer – for
example, Download and Isle of Wight are pacing well ahead of last
year.
Between the tickets held by fans for rescheduled shows and these
festival onsales, we have already sold 19 million tickets to more
than four thousand concerts and festivals scheduled for 2021,
creating a strong baseload of demand that is pacing well ahead of
this point last year. At the same time, surveys continue to show
that concerts remain fans' highest priority social event when it is
safe to gather, with almost 90% of fans globally planning on
attending concerts again.
Keeping Artists and Fans Connected
Understanding that it will be some time before we put on
concerts at scale, we are innovating to find new and creative ways
to help keep artists and fans connected in the meantime. Virtual
concerts have proven to be in huge demand with fans, so we
established the "Live From Home" platform to provide a convenient
place for fans of all types to find performances from their
favorite artists.
In the second quarter, we had 67 million fans view over 18
thousand concerts and festivals globally. Among our highlights,
this past weekend we streamed 150 performances for our Virtual
Lollapalooza Festival. Given the tremendous popularity of
these shows, we are seeing the potential for live streaming to
become an additional long-term component of our concert business,
allowing fans in other cities, or those who can't attend, to enjoy
the concert as well.
At the same time, recognizing fans want to get back to attending
concerts in person as soon as possible, we've launched socially
distanced shows when and where permitted, including New Zealand, France, Denmark, Spain, Germany and Finland, as well as several cities across
the United States.
Return to Live
While this is a challenging time for everyone – the live events
business in particular – there are a few things that I am confident
about: we are well positioned to weather this crisis, and we will
get through this; when it is safe to return, we will have an
abundance of fans and artists ready to enjoy live music again; and
Live Nation will do everything in its power to meet our
responsibilities to artists, fans, our employees and everyone else
affected by this shutdown by bringing back as much live music as
fast as possible when it is responsible to do so.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
Additional Information on Liquidity
At the end of the second quarter, the company had total cash and
cash equivalents of $3.3 billion,
which includes $1.8 billion of free
cash. This free cash along with $966
million of available debt capacity provide the company with
over $2.7 billion in available
liquidity. The company's operational cash burn rate estimate is
$125 million per month and estimated
gross burn rate is $185 million per
month, both on average for the second quarter through the end of
the year. In addition, subsequent to quarter-end, the company's
credit agreement was amended to further suspend its maintenance
covenant until December 31, 2021 if
it chooses, replacing it with a minimum liquidity test of
$500 million, which is measured
against the company's free cash, available debt capacity, and up to
$250 million of event-related
deferred revenue. The company believes this level of liquidity and
our associated burn rates, along with our credit actions, provide
it with the ability to fund operations until the expected return of
concerts at scale in the summer of 2021, preceded by ticket sales
earlier in the year.
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 – 2nd QUARTER
|
(unaudited; $ in
millions)
|
|
|
Q2 2020
Reported
|
|
Q2 2019
Reported
|
|
Growth
|
|
Q2 2020
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
141.8
|
|
|
$
|
2,639.5
|
|
|
(95)
|
%
|
|
$
|
147.0
|
|
|
(94)
|
%
|
Ticketing
|
(87.0)
|
|
|
370.8
|
|
|
*
|
|
|
(87.4)
|
|
|
*
|
|
Sponsorship &
Advertising
|
18.4
|
|
|
151.5
|
|
|
(88)
|
%
|
|
19.0
|
|
|
(87)
|
%
|
Other and
Eliminations
|
0.9
|
|
|
(4.8)
|
|
|
*
|
|
|
0.9
|
|
|
*
|
|
|
$
|
74.1
|
|
|
$
|
3,157.0
|
|
|
(98)
|
%
|
|
$
|
79.5
|
|
|
(97)
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(279.9)
|
|
|
$
|
60.7
|
|
|
*
|
|
|
$
|
(283.0)
|
|
|
*
|
|
Ticketing
|
(267.2)
|
|
|
64.1
|
|
|
*
|
|
|
(269.5)
|
|
|
*
|
|
Sponsorship &
Advertising
|
(11.2)
|
|
|
91.4
|
|
|
*
|
|
|
(10.9)
|
|
|
*
|
|
Other and
Eliminations
|
(6.8)
|
|
|
(0.2)
|
|
|
*
|
|
|
(6.8)
|
|
|
*
|
|
Corporate
|
(23.0)
|
|
|
(44.4)
|
|
|
48
|
%
|
|
(23.0)
|
|
|
48
|
%
|
|
$
|
(588.1)
|
|
|
$
|
171.6
|
|
|
*
|
|
|
$
|
(593.2)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(210.7)
|
|
|
$
|
132.8
|
|
|
*
|
|
|
$
|
(213.2)
|
|
|
*
|
|
Ticketing
|
(203.9)
|
|
|
123.8
|
|
|
*
|
|
|
(205.6)
|
|
|
*
|
|
Sponsorship &
Advertising
|
(1.8)
|
|
|
98.5
|
|
|
*
|
|
|
(1.4)
|
|
|
*
|
|
Other and
Eliminations
|
(3.8)
|
|
|
(1.3)
|
|
|
*
|
|
|
(3.8)
|
|
|
*
|
|
Corporate
|
(11.7)
|
|
|
(34.5)
|
|
|
66
|
%
|
|
(11.7)
|
|
|
66
|
%
|
|
$
|
(431.9)
|
|
|
$
|
319.3
|
|
|
*
|
|
|
$
|
(435.7)
|
|
|
*
|
|
|
* percentages are
not meaningful
|
FINANCIAL
HIGHLIGHTS – 6 MONTHS
|
(unaudited; $ in
millions)
|
|
|
6 Months
2020
Reported
|
|
6 Months
2019
Reported
|
|
Growth
|
|
6 Months
2020
Constant
Currency
|
|
Growth at
Constant
Currency
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
1,135.2
|
|
|
$
|
3,957.6
|
|
|
(71)
|
%
|
|
$
|
1,153.0
|
|
|
(71)
|
%
|
|
Ticketing
|
197.3
|
|
|
708.4
|
|
|
(72)
|
%
|
|
198.2
|
|
|
(72)
|
%
|
|
Sponsorship &
Advertising
|
108.6
|
|
|
226.6
|
|
|
(52)
|
%
|
|
110.4
|
|
|
(51)
|
%
|
|
Other and
Eliminations
|
(1.3)
|
|
|
(7.8)
|
|
|
83
|
%
|
|
(1.3)
|
|
|
83
|
%
|
|
|
$
|
1,439.8
|
|
|
$
|
4,884.8
|
|
|
(71)
|
%
|
|
$
|
1,460.3
|
|
|
(70)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(441.0)
|
|
|
$
|
1.6
|
|
|
*
|
|
|
$
|
(445.7)
|
|
|
*
|
|
|
Ticketing
|
(283.1)
|
|
|
106.7
|
|
|
*
|
|
|
(286.1)
|
|
|
*
|
|
|
Sponsorship &
Advertising
|
27.0
|
|
|
123.5
|
|
|
(78)
|
%
|
|
28.2
|
|
|
(77)
|
%
|
|
Other and
Eliminations
|
(8.2)
|
|
|
(0.3)
|
|
|
*
|
|
|
(8.2)
|
|
|
*
|
|
|
Corporate
|
(55.4)
|
|
|
(83.8)
|
|
|
34
|
%
|
|
(55.4)
|
|
|
34
|
%
|
|
|
$
|
(760.7)
|
|
|
$
|
147.7
|
|
|
*
|
|
|
$
|
(767.2)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(298.9)
|
|
|
$
|
138.2
|
|
|
*
|
|
|
$
|
(302.4)
|
|
|
*
|
|
|
Ticketing
|
(158.9)
|
|
|
224.2
|
|
|
*
|
|
|
(161.0)
|
|
|
*
|
|
|
Sponsorship &
Advertising
|
44.8
|
|
|
138.3
|
|
|
(68)
|
%
|
|
46.0
|
|
|
(67)
|
%
|
|
Other and
Eliminations
|
(6.6)
|
|
|
(2.7)
|
|
|
*
|
|
|
(6.6)
|
|
|
*
|
|
|
Corporate
|
(32.8)
|
|
|
(63.4)
|
|
|
48
|
%
|
|
(32.8)
|
|
|
48
|
%
|
|
|
$
|
(452.4)
|
|
|
$
|
434.6
|
|
|
*
|
|
|
$
|
(456.8)
|
|
|
*
|
|
|
|
* percentages are
not meaningful
|
- As of June 30, 2020, total cash
and cash equivalents were $3.3
billion, which includes $745
million in ticketing client cash and $1.8 billion in free cash.
- Event-related deferred revenue was $0.9
billion as of June 30, 2020,
compared to $1.6 billion as of
June 30, 2019. In addition, we had
long-term deferred revenue of $486
million for events that have been rescheduled more than one
year out as of June 30, 2020.
- For the six months ended June 30,
2020, net cash used in operating activities was $(390) million and free cash flow — adjusted was
$(565) million.
- We currently expect capital expenditures for the full year to
be approximately $215 million.
KEY OPERATING
METRICS
|
|
|
Q2
2020
|
|
Q2
2019
|
|
6 Months
2020
|
|
6 Months
2019
|
|
(in thousands
except estimated events)
|
Concerts
(1)
|
|
|
|
|
|
|
|
Events:
|
|
|
|
|
|
|
|
North
America
|
24
|
|
|
7,213
|
|
|
4,787
|
|
|
12,888
|
|
International
|
107
|
|
|
3,039
|
|
|
2,419
|
|
|
5,571
|
|
Total estimated
events
|
131
|
|
|
10,252
|
|
|
7,206
|
|
|
18,459
|
|
Fans:
|
|
|
|
|
|
|
|
North
America
|
8
|
|
|
15,844
|
|
|
5,727
|
|
|
24,810
|
|
International
|
41
|
|
|
11,178
|
|
|
4,714
|
|
|
17,136
|
|
Total estimated
fans
|
49
|
|
|
27,022
|
|
|
10,441
|
|
|
41,946
|
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Fee-bearing
tickets
|
(8,765)
|
|
|
53,185
|
|
|
27,444
|
|
|
103,211
|
|
Non-fee-bearing
tickets
|
6,386
|
|
|
53,749
|
|
|
61,645
|
|
|
120,864
|
|
Total estimated
tickets
|
(2,379)
|
|
|
106,934
|
|
|
89,089
|
|
|
224,075
|
|
|
|
(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)
|
Events 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 our financial statements. Fee-bearing tickets include
refunds of 10.7 million and 17.2 million for the three
and six months ended June 30, 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
2020
|
|
Q2
2019
|
Net cash used in
operating activities
|
$
|
(1,022.1)
|
|
|
$
|
(175.8)
|
|
Less: Changes in
operating assets and liabilities (working capital)
|
598.4
|
|
|
444.0
|
|
Free cash flow from
earnings
|
$
|
(423.7)
|
|
|
$
|
268.2
|
|
Less: Maintenance
capital expenditures
|
(15.3)
|
|
|
(34.9)
|
|
Distributions to noncontrolling interests
|
(11.2)
|
|
|
(13.5)
|
|
Free cash flow —
adjusted
|
$
|
(450.2)
|
|
|
$
|
219.8
|
|
|
|
|
|
Net cash used in
investing activities
|
$
|
(68.2)
|
|
|
$
|
(196.8)
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
$
|
1,079.7
|
|
|
$
|
(26.4)
|
|
|
|
($ in
millions)
|
6 Months
2020
|
|
6 Months
2019
|
Net cash provided
by (used in) operating activities
|
$
|
(390.4)
|
|
|
$
|
293.3
|
|
Less: Changes in
operating assets and liabilities (working capital)
|
(103.0)
|
|
|
52.2
|
|
Free cash flow from
earnings
|
$
|
(493.4)
|
|
|
$
|
345.5
|
|
Less: Maintenance
capital expenditures
|
(45.7)
|
|
|
(59.4)
|
|
Distributions to noncontrolling interests
|
(26.3)
|
|
|
(63.4)
|
|
Free cash flow —
adjusted
|
$
|
(565.4)
|
|
|
$
|
222.7
|
|
|
|
|
|
Net cash used in
investing activities
|
$
|
(190.6)
|
|
|
$
|
(281.7)
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
$
|
1,462.1
|
|
|
$
|
(97.9)
|
|
Reconciliation
of Free Cash to Cash and Cash Equivalents
|
|
($ in
millions)
|
June 30,
2020
|
Cash and cash
equivalents
|
$
|
3,290.1
|
|
Client
cash
|
(744.7)
|
|
Deferred revenue —
event-related
|
(941.3)
|
|
Accrued artist
fees
|
(21.6)
|
|
Collections on behalf
of others
|
(35.2)
|
|
Prepaid expenses —
event-related
|
224.4
|
|
Free cash
|
$
|
1,771.7
|
|
Forward-Looking Statements, Non-GAAP Financial Measures and
Reconciliations:
Certain statements in this press release 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 expectation that live events will return at scale in
the summer of 2021, with ticket sales ramping up in the quarters
leading up to these shows; fan and artist willingness to return to
live events when it is safe to do so; the potential for live
streaming to become an additional long-term component of the
company's concert business; the company's positioning to weather
the current crisis; the company's ability to bring back as much
live music as fast as possible when it is responsible to do so; the
company's estimated average operational cash burn rate and gross
burn rate for the second quarter through the end of 2020; the
impact of the company's liquidity and associated burn rate
estimates and recent credit actions on the company's ability to
fund basic operations until the anticipated return of concerts at
scale in the summer of 2021, preceded by ticket sales earlier in
the year; and the company's anticipated capital expenditures for
the year. 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, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(279.9)
|
|
|
$
|
24.4
|
|
|
$
|
0.6
|
|
|
$
|
64.3
|
|
|
$
|
—
|
|
|
$
|
(20.1)
|
|
|
$
|
(210.7)
|
|
|
$
|
(2.5)
|
|
|
$
|
(213.2)
|
|
Ticketing
|
(267.2)
|
|
|
4.1
|
|
|
—
|
|
|
44.3
|
|
|
14.7
|
|
|
0.2
|
|
|
(203.9)
|
|
|
(1.7)
|
|
|
(205.6)
|
|
Sponsorship &
Advertising
|
(11.2)
|
|
|
1.7
|
|
|
—
|
|
|
7.7
|
|
|
—
|
|
|
—
|
|
|
(1.8)
|
|
|
0.4
|
|
|
(1.4)
|
|
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)
|
|
|
$
|
(3.8)
|
|
|
$
|
(435.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
60.7
|
|
|
$
|
3.1
|
|
|
$
|
(0.2)
|
|
|
$
|
54.2
|
|
|
$
|
—
|
|
|
$
|
15.0
|
|
|
$
|
132.8
|
|
|
$
|
—
|
|
|
$
|
132.8
|
|
Ticketing
|
64.1
|
|
|
1.6
|
|
|
0.1
|
|
|
39.5
|
|
|
18.2
|
|
|
0.3
|
|
|
123.8
|
|
|
—
|
|
|
123.8
|
|
Sponsorship &
Advertising
|
91.4
|
|
|
0.7
|
|
|
—
|
|
|
6.4
|
|
|
—
|
|
|
—
|
|
|
98.5
|
|
|
—
|
|
|
98.5
|
|
Other &
Eliminations
|
(0.2)
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(1.2)
|
|
|
—
|
|
|
(1.3)
|
|
|
—
|
|
|
(1.3)
|
|
Corporate
|
(44.4)
|
|
|
6.3
|
|
|
—
|
|
|
3.6
|
|
|
—
|
|
|
—
|
|
|
(34.5)
|
|
|
—
|
|
|
(34.5)
|
|
Total Live
Nation
|
$
|
171.6
|
|
|
$
|
11.7
|
|
|
$
|
(0.1)
|
|
|
$
|
103.8
|
|
|
$
|
17.0
|
|
|
$
|
15.3
|
|
|
$
|
319.3
|
|
|
$
|
—
|
|
|
$
|
319.3
|
|
|
|
|
Six Months Ended
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(441.0)
|
|
|
$
|
26.7
|
|
|
$
|
0.7
|
|
|
$
|
136.6
|
|
|
$
|
—
|
|
|
$
|
(21.9)
|
|
|
$
|
(298.9)
|
|
|
$
|
(3.5)
|
|
|
$
|
(302.4)
|
|
Ticketing
|
(283.1)
|
|
|
5.8
|
|
|
—
|
|
|
82.5
|
|
|
34.9
|
|
|
1.0
|
|
|
(158.9)
|
|
|
(2.1)
|
|
|
(161.0)
|
|
Sponsorship &
Advertising
|
27.0
|
|
|
2.7
|
|
|
—
|
|
|
15.1
|
|
|
—
|
|
|
—
|
|
|
44.8
|
|
|
1.2
|
|
|
46.0
|
|
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)
|
|
|
$
|
(4.4)
|
|
|
$
|
(456.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
1.6
|
|
|
$
|
6.6
|
|
|
$
|
(0.3)
|
|
|
$
|
105.6
|
|
|
$
|
—
|
|
|
$
|
24.7
|
|
|
$
|
138.2
|
|
|
$
|
—
|
|
|
$
|
138.2
|
|
Ticketing
|
106.7
|
|
|
3.1
|
|
|
0.1
|
|
|
76.9
|
|
|
36.9
|
|
|
0.5
|
|
|
224.2
|
|
|
—
|
|
|
224.2
|
|
Sponsorship &
Advertising
|
123.5
|
|
|
1.4
|
|
|
—
|
|
|
13.4
|
|
|
—
|
|
|
—
|
|
|
138.3
|
|
|
—
|
|
|
138.3
|
|
Other &
Eliminations
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(2.7)
|
|
|
—
|
|
|
(2.7)
|
|
|
—
|
|
|
(2.7)
|
|
Corporate
|
(83.8)
|
|
|
13.9
|
|
|
—
|
|
|
6.5
|
|
|
—
|
|
|
—
|
|
|
(63.4)
|
|
|
—
|
|
|
(63.4)
|
|
Total Live
Nation
|
$
|
147.7
|
|
|
$
|
25.0
|
|
|
$
|
(0.2)
|
|
|
$
|
202.7
|
|
|
$
|
34.2
|
|
|
$
|
25.2
|
|
|
$
|
434.6
|
|
|
$
|
—
|
|
|
$
|
434.6
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
June 30,
2020
|
|
December
31,
2019
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
|
3,290,052
|
|
|
$
|
2,470,362
|
|
Accounts receivable, less allowance of $69,778 and $50,516,
respectively
|
618,580
|
|
|
994,606
|
|
Prepaid expenses
|
446,062
|
|
|
667,044
|
|
Restricted cash
|
10,313
|
|
|
3,880
|
|
Other current assets
|
68,187
|
|
|
57,007
|
|
Total current
assets
|
4,433,194
|
|
|
4,192,899
|
|
Property, plant and
equipment, net
|
1,121,665
|
|
|
1,117,932
|
|
Operating lease
assets
|
1,420,649
|
|
|
1,402,019
|
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
936,837
|
|
|
870,141
|
|
Indefinite-lived intangible assets
|
368,762
|
|
|
368,954
|
|
Goodwill
|
2,012,641
|
|
|
1,998,498
|
|
Long-term
advances
|
877,580
|
|
|
593,699
|
|
Other long-term
assets
|
450,972
|
|
|
431,473
|
|
Total
assets
|
$
|
11,622,300
|
|
|
$
|
10,975,615
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
|
835,981
|
|
|
$
|
1,005,888
|
|
Accounts payable
|
124,806
|
|
|
100,237
|
|
Accrued expenses
|
1,088,153
|
|
|
1,391,486
|
|
Deferred revenue
|
1,157,311
|
|
|
1,391,032
|
|
Current portion of long-term debt, net
|
63,885
|
|
|
37,795
|
|
Current portion of operating lease liabilities
|
119,473
|
|
|
121,950
|
|
Other current liabilities
|
102,687
|
|
|
59,211
|
|
Total current
liabilities
|
3,492,296
|
|
|
4,107,599
|
|
Long-term debt,
net
|
4,831,088
|
|
|
3,271,262
|
|
Long-term operating
lease liabilities
|
1,412,190
|
|
|
1,374,481
|
|
Long-term deferred
income taxes
|
177,749
|
|
|
178,173
|
|
Other long-term
liabilities
|
691,219
|
|
|
130,648
|
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
334,228
|
|
|
449,498
|
|
Stockholders'
equity
|
|
|
|
Common stock
|
2,125
|
|
|
2,113
|
|
Additional paid-in capital
|
2,295,069
|
|
|
2,245,619
|
|
Accumulated deficit
|
(1,704,599)
|
|
|
(949,334)
|
|
Cost
of shares held in treasury
|
(6,865)
|
|
|
(6,865)
|
|
Accumulated other comprehensive loss
|
(243,805)
|
|
|
(145,713)
|
|
Total Live Nation
stockholders' equity
|
341,925
|
|
|
1,145,820
|
|
Noncontrolling
interests
|
341,605
|
|
|
318,134
|
|
Total
equity
|
683,530
|
|
|
1,463,954
|
|
Total liabilities
and equity
|
$
|
11,622,300
|
|
|
$
|
10,975,615
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(in thousands,
except share and per share data)
|
Revenue
|
$
|
74,084
|
|
|
$
|
3,157,009
|
|
|
$
|
1,439,777
|
|
|
$
|
4,884,837
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses
|
194,557
|
|
|
2,327,414
|
|
|
1,068,377
|
|
|
3,479,018
|
|
Selling, general and
administrative expenses
|
323,352
|
|
|
513,497
|
|
|
837,373
|
|
|
978,363
|
|
Depreciation and
amortization
|
122,767
|
|
|
103,826
|
|
|
244,847
|
|
|
202,738
|
|
Loss (gain) on
disposal of operating assets
|
559
|
|
|
(101)
|
|
|
689
|
|
|
(248)
|
|
Corporate
expenses
|
20,916
|
|
|
40,787
|
|
|
49,228
|
|
|
77,243
|
|
Operating income
(loss)
|
(588,067)
|
|
|
171,586
|
|
|
(760,737)
|
|
|
147,723
|
|
Interest
expense
|
52,689
|
|
|
36,792
|
|
|
96,688
|
|
|
73,307
|
|
Interest
income
|
(2,429)
|
|
|
(3,818)
|
|
|
(6,902)
|
|
|
(6,366)
|
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
6,613
|
|
|
(5,828)
|
|
|
4,041
|
|
|
(8,972)
|
|
Other income,
net
|
(5,173)
|
|
|
(430)
|
|
|
(545)
|
|
|
(3,833)
|
|
Income (loss) before
income taxes
|
(639,767)
|
|
|
144,870
|
|
|
(854,019)
|
|
|
93,587
|
|
Income tax expense
(benefit)
|
(29,183)
|
|
|
28,750
|
|
|
(32,513)
|
|
|
32,708
|
|
Net income
(loss)
|
(610,584)
|
|
|
116,120
|
|
|
(821,506)
|
|
|
60,879
|
|
Net income (loss)
attributable to noncontrolling interests
|
(43,067)
|
|
|
12,765
|
|
|
(69,205)
|
|
|
9,968
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
|
(567,517)
|
|
|
$
|
103,355
|
|
|
$
|
(752,301)
|
|
|
$
|
50,911
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share available to common stockholders of Live
Nation
|
$
|
(2.67)
|
|
|
$
|
0.43
|
|
|
$
|
(3.62)
|
|
|
$
|
0.12
|
|
Diluted net income
(loss) per common share available to common stockholders of Live
Nation
|
$
|
(2.67)
|
|
|
$
|
0.41
|
|
|
$
|
(3.62)
|
|
|
$
|
0.11
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
211,693,923
|
|
|
209,998,048
|
|
|
211,371,109
|
|
|
209,456,196
|
|
Diluted
|
211,693,923
|
|
|
219,977,612
|
|
|
211,371,109
|
|
|
219,107,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income (loss) available to common stockholders of Live
Nation:
|
|
|
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
|
(567,517)
|
|
|
$
|
103,355
|
|
|
$
|
(752,301)
|
|
|
$
|
50,911
|
|
Accretion of redeemable
noncontrolling interests
|
1,595
|
|
|
(13,515)
|
|
|
(12,945)
|
|
|
(25,827)
|
|
Net income (loss)
available to common stockholders of Live Nation—basic
|
(565,922)
|
|
|
89,840
|
|
|
(765,246)
|
|
|
25,084
|
|
Convertible debt
interest, net of tax
|
—
|
|
|
86
|
|
|
—
|
|
|
—
|
|
Net income (loss)
available to common stockholders of Live Nation—diluted
|
$
|
(565,922)
|
|
|
$
|
89,926
|
|
|
$
|
(765,246)
|
|
|
$
|
25,084
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
Six Months
Ended
June 30,
|
|
2020
|
|
2019
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
(loss)
|
$
|
(821,506)
|
|
|
$
|
60,879
|
|
Reconciling
items:
|
|
|
|
Depreciation
|
122,825
|
|
|
106,015
|
|
Amortization
|
122,022
|
|
|
96,723
|
|
Amortization of
non-recoupable ticketing contract advances
|
32,126
|
|
|
34,267
|
|
Deferred income tax
benefit
|
(12,316)
|
|
|
(456)
|
|
Amortization of debt
issuance costs and discounts
|
14,856
|
|
|
10,828
|
|
Non-cash compensation
expense
|
50,270
|
|
|
24,926
|
|
Unrealized changes in
fair value of contingent consideration
|
(24,789)
|
|
|
5,821
|
|
Provision for
uncollectible accounts receivable
|
25,764
|
|
|
5,615
|
|
Other, net
|
(2,609)
|
|
|
922
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
Decrease (increase) in
accounts receivable
|
363,079
|
|
|
(256,575)
|
|
Increase in prepaid
expenses and other assets
|
(50,493)
|
|
|
(380,285)
|
|
Increase (decrease) in
accounts payable, accrued expenses and other liabilities
|
(807,552)
|
|
|
5,880
|
|
Increase in deferred
revenue
|
597,963
|
|
|
578,763
|
|
Net cash provided by
(used in) operating activities
|
(390,360)
|
|
|
293,323
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Advances of notes
receivable
|
(11,457)
|
|
|
(13,931)
|
|
Collections of notes
receivable
|
12,782
|
|
|
5,337
|
|
Investments made in
nonconsolidated affiliates
|
(8,150)
|
|
|
(28,931)
|
|
Purchases of
property, plant and equipment
|
(142,509)
|
|
|
(135,940)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(37,471)
|
|
|
(87,595)
|
|
Purchases of
intangible assets
|
(5,594)
|
|
|
(20,614)
|
|
Other, net
|
1,758
|
|
|
20
|
|
Net cash used in
investing activities
|
(190,641)
|
|
|
(281,654)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from
long-term debt, net of debt issuance costs
|
1,602,097
|
|
|
558
|
|
Payments on long-term
debt
|
(11,087)
|
|
|
(21,933)
|
|
Distributions to
noncontrolling interests
|
(26,315)
|
|
|
(63,373)
|
|
Purchases and sales
of noncontrolling interests, net
|
(88,191)
|
|
|
(1,463)
|
|
Proceeds from
exercise of stock options
|
11,406
|
|
|
10,199
|
|
Taxes paid for net
share settlement of equity awards
|
(17,339)
|
|
|
(10,259)
|
|
Payments for deferred
and contingent consideration
|
(9,940)
|
|
|
(19,962)
|
|
Other, net
|
1,467
|
|
|
8,323
|
|
Net cash provided by
(used in) financing activities
|
1,462,098
|
|
|
(97,910)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(54,974)
|
|
|
(6,983)
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
826,123
|
|
|
(93,224)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
2,474,242
|
|
|
2,378,203
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
3,300,365
|
|
|
$
|
2,284,979
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/live-nation-entertainment-reports-second-quarter-2020-results-301107033.html
SOURCE Live Nation Entertainment