Highlights
- 83% of Fans Continuing To Hold Onto Their Tickets
- $950 Million Cost Reduction
Achieved in 2020
- $1.65 Billion Cash Savings
Achieved in 2020
LOS ANGELES, Feb. 25, 2021 /PRNewswire/ -- Live Nation
Entertainment, Inc. (NYSE: LYV) today released financial results
for the quarter ended December 31, 2020.
As we look back on 2020, it is clearly not the year anyone
predicted, but I am very proud of how Live Nation has dug in and
focused on turning this challenge into an opportunity to improve
our business. I want to take a moment to thank our employees for
their resilience and creativity, and acknowledge all of those
affected by Covid and the shutdown of live events.
We Believe We Will Return to Live Even Stronger
Over the last year, leaders across all our business lines of
Concerts, Ticketing and Sponsorship have been analyzing ways to
improve their businesses. Some of our key initiatives include:
Re-organizing to become more nimble while also reducing our cost
structure by $200 million; Building
concert streaming and direct to consumer businesses to expand our
revenue streams; Advancing our technology initiatives globally
while accelerating the shift to digital tickets to meet changing
needs of fans, venues and artists; and reinforcing our balance
sheet to endure this period, while maintaining a strong position to
build our business for the future and act on opportunities as we
identify them, such as our recent acquisition of the streaming
platform Veeps and a continued pipeline of bolt-on acquisitions
throughout the globe.
So while this past year has been challenging for the company,
our employees, fans, artists and so many others globally impacted
by Covid, I have never been more excited about the opportunities in
front of us.
Supply and Demand Pipeline is Very Strong
We continue to have a substantial tailwind in the live event
industry, as consumers more than ever are looking to spend on
experiences. The supply-demand fundamentals of the concerts
business remain strong, with artists ready to get back on the road
and fans eager to reconnect at events. All our data continues to
show that there is substantial pent-up demand for concerts on the
consumer demand side. The $2.4
trillion projected surplus in savings in the U.S. alone by
June is a key indicator of consumer spending potential. At the same
time, surveys demonstrate the high demand for concerts globally,
with 95% of fans likely to attend a show when restrictions are
lifted. This is proving out in fan behavior as well, with 83% of
fans continuing to hold onto their tickets for rescheduled
shows.
On the artist side there is a broad desire to get back on stage
– to connect with their fans and to provide economic support to
their bands, crew, and the hundreds of others employed each night
putting on the show. Given the limited touring activity in 2020 and
2021, the pipeline for 2022 is much stronger than usual, with
almost twice as many major touring artists on cycle in 2022 than a
typical year – about 45 artists versus the usual 25. And there
remains plenty of scheduling availability at arenas, amphitheaters
and stadiums to accommodate these additional tours, with over
two-thirds of these venues' nights unused by sporting events or
major concerts in a typical year.
Vaccine Rollout Encouraging
It appears that the timing to release the pent-up supply and demand
is now approaching. Vaccine distribution is accelerating and
declines in Covid cases throughout most of the world gives us even
more confidence that a safe and meaningful return to shows will
soon be possible. For both the U.S. and U.K., projections indicate
that everyone who wants to get vaccinated will be able to do so by
May or June, with Europe and most
other markets following a few months later. Given the massive
social and economic toll that the lockdown has had on the public,
we believe there will be strong momentum to reopen society swiftly
as soon as vaccines are readily available. And we believe outdoor
activities will be the first to happen.
So while the timing of our return to live will continue to vary
across global markets, every sign points to it beginning safely in
many countries sometime this summer and scaling further from
there.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
Additional Information on Liquidity
At the end of the fourth quarter of 2020, the company had total
cash and cash equivalents of $2.5
billion, which includes $643
million of free cash. This free cash, along with
$962 million of available debt
capacity and taking into account the additional $417 million of net cash added to the balance
sheet with the debt raise in early January, gives the company
$2.0 billion of available liquidity.
The company believes this level of liquidity provides it with the
ability to fund operations until the expected return of concerts 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 Annual Report on
Form 10-K to be filed with the Securities and Exchange Commission
on Monday, March 1, 2021 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 – 4th QUARTER
|
(unaudited; $ in
millions)
|
|
|
Q4 2020
Reported
|
|
Q4 2019
Reported
|
|
Growth
|
|
Q4 2020
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
178.4
|
|
|
$
|
2,296.6
|
|
|
(92)
|
%
|
|
$
|
176.8
|
|
|
(92)
|
%
|
Ticketing
|
10.9
|
|
|
448.3
|
|
|
(98)
|
%
|
|
10.4
|
|
|
(98)
|
%
|
Sponsorship &
Advertising
|
47.1
|
|
|
148.4
|
|
|
(68)
|
%
|
|
46.0
|
|
|
(69)
|
%
|
Other and
Eliminations
|
0.9
|
|
|
(3.9)
|
|
|
*
|
|
0.9
|
|
|
*
|
|
$
|
237.3
|
|
|
$
|
2,889.4
|
|
|
(92)
|
%
|
|
$
|
234.1
|
|
|
(92)
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(236.4)
|
|
|
$
|
(166.4)
|
|
|
(42)
|
%
|
|
$
|
(233.6)
|
|
|
(40)
|
%
|
Ticketing
|
(131.5)
|
|
|
61.0
|
|
|
*
|
|
(130.4)
|
|
|
*
|
Sponsorship &
Advertising
|
4.1
|
|
|
73.5
|
|
|
(94)
|
%
|
|
3.3
|
|
|
(95)
|
%
|
Other and
Eliminations
|
(0.4)
|
|
|
(0.7)
|
|
|
43
|
%
|
|
(0.4)
|
|
|
43
|
%
|
Corporate
|
(23.8)
|
|
|
(50.3)
|
|
|
53
|
%
|
|
(23.8)
|
|
|
53
|
%
|
|
$
|
(388.0)
|
|
|
$
|
(82.9)
|
|
|
*
|
|
$
|
(384.9)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(166.7)
|
|
|
$
|
(90.4)
|
|
|
(84)
|
%
|
|
$
|
(165.1)
|
|
|
(83)
|
%
|
Ticketing
|
(73.7)
|
|
|
130.8
|
|
|
*
|
|
(73.2)
|
|
|
*
|
Sponsorship &
Advertising
|
14.2
|
|
|
82.5
|
|
|
(83)
|
%
|
|
13.4
|
|
|
(84)
|
%
|
Other and
Eliminations
|
(1.8)
|
|
|
(1.6)
|
|
|
(13)
|
%
|
|
(1.8)
|
|
|
(13)
|
%
|
Corporate
|
(16.3)
|
|
|
(40.5)
|
|
|
60
|
%
|
|
(16.3)
|
|
|
60
|
%
|
|
$
|
(244.3)
|
|
|
$
|
80.8
|
|
|
*
|
|
$
|
(243.0)
|
|
|
*
|
|
* percentages are
not meaningful
|
FINANCIAL
HIGHLIGHTS – 12 MONTHS
|
(unaudited; $ in
millions)
|
|
|
12 Months
2020
Reported
|
|
12 Months
2019
Reported
|
|
Growth
|
|
12 Months
2020
Constant
Currency
|
|
Growth at
Constant
Currency
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
1,468.4
|
|
|
$
|
9,428.1
|
|
|
(84)
|
%
|
|
$
|
1,481.7
|
|
|
(84)
|
%
|
|
Ticketing
|
188.4
|
|
|
1,545.2
|
|
|
(88)
|
%
|
|
188.4
|
|
|
(88)
|
%
|
|
Sponsorship &
Advertising
|
203.7
|
|
|
590.3
|
|
|
(65)
|
%
|
|
202.6
|
|
|
(66)
|
%
|
|
Other and
Eliminations
|
0.7
|
|
|
(15.6)
|
|
|
*
|
|
0.7
|
|
|
*
|
|
|
$
|
1,861.2
|
|
|
$
|
11,548.0
|
|
|
(84)
|
%
|
|
$
|
1,873.4
|
|
|
(84)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(959.0)
|
|
|
$
|
(53.5)
|
|
|
*
|
|
$
|
(960.0)
|
|
|
*
|
|
Ticketing
|
(612.0)
|
|
|
232.0
|
|
|
*
|
|
(612.4)
|
|
|
*
|
|
Sponsorship &
Advertising
|
44.9
|
|
|
330.3
|
|
|
(86)
|
%
|
|
43.8
|
|
|
(87)
|
%
|
|
Other and
Eliminations
|
(13.5)
|
|
|
(1.2)
|
|
|
*
|
|
(13.5)
|
|
|
*
|
|
Corporate
|
(113.6)
|
|
|
(182.8)
|
|
|
38
|
%
|
|
(113.6)
|
|
|
38
|
%
|
|
|
$
|
(1,653.2)
|
|
|
$
|
324.8
|
|
|
*
|
|
$
|
(1,655.7)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(638.8)
|
|
|
$
|
242.3
|
|
|
*
|
|
$
|
(639.7)
|
|
|
*
|
|
Ticketing
|
(374.6)
|
|
|
482.4
|
|
|
*
|
|
(375.3)
|
|
|
*
|
|
Sponsorship &
Advertising
|
81.9
|
|
|
366.1
|
|
|
(78)
|
%
|
|
80.8
|
|
|
(78)
|
%
|
|
Other and
Eliminations
|
(13.5)
|
|
|
(6.3)
|
|
|
*
|
|
(13.5)
|
|
|
*
|
|
Corporate
|
(70.9)
|
|
|
(142.0)
|
|
|
50
|
%
|
|
(70.9)
|
|
|
50
|
%
|
|
|
$
|
(1,015.9)
|
|
|
$
|
942.5
|
|
|
*
|
|
$
|
(1,018.6)
|
|
|
*
|
|
|
* percentages are
not meaningful
|
- As of December 31, 2020, total
cash and cash equivalents were $2.5
billion, which includes $674
million in ticketing client cash and $643 million in free cash.
- Event-related deferred revenue was $1.5
billion as of December 31,
2020, compared to $1.2 billion
as of December 31, 2019. In addition,
we had long-term deferred revenue of $35
million for events that have been rescheduled more than one
year out as of December 31,
2020.
- For the twelve months ended December 31,
2020, net cash used in operating activities was $(1.1) billion and free cash flow — adjusted was
$(1.3) billion.
- We currently expect capital expenditures for the full year to
be approximately $150 million in
2021.
KEY OPERATING
METRICS
|
(unaudited)
|
|
|
2020
|
|
2019
|
|
2018
|
|
(in thousands
except estimated events)
|
Concerts
(1)
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
North
America
|
5,270
|
|
|
28,407
|
|
|
24,186
|
|
International
|
2,847
|
|
|
11,830
|
|
|
10,810
|
|
Total estimated
events
|
8,117
|
|
|
40,237
|
|
|
34,996
|
|
Estimated
fans:
|
|
|
|
|
|
North
America
|
6,075
|
|
|
62,687
|
|
|
61,159
|
|
International
|
5,067
|
|
|
34,967
|
|
|
31,607
|
|
Total estimated
fans
|
11,142
|
|
|
97,654
|
|
|
92,766
|
|
Ticketing
(2)
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
31,101
|
|
|
219,838
|
|
|
217,442
|
|
Estimated number of
non-fee-bearing tickets
|
88,823
|
|
|
266,750
|
|
|
265,033
|
|
Total estimated
tickets sold
|
119,924
|
|
|
486,588
|
|
|
482,475
|
|
|
|
|
|
|
|
|
(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 our
financial statements. Fee-bearing tickets sold above are net of
refunds of 27.4 million tickets for the year ended
December 31, 2020.
|
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)
|
Q4
2020
|
|
Q4
2019
|
Net cash provided
by (used in) operating activities
|
$
|
(125.7)
|
|
|
$
|
436.9
|
|
Less: Changes in
operating assets and liabilities (working capital)
|
(200.4)
|
|
|
(388.5)
|
|
Free cash flow from
earnings
|
$
|
(326.1)
|
|
|
$
|
48.4
|
|
Less: Maintenance
capital expenditures
|
(9.1)
|
|
|
(45.5)
|
|
Distributions to noncontrolling interests
|
(10.1)
|
|
|
(34.3)
|
|
Free cash flow —
adjusted
|
$
|
(345.3)
|
|
|
$
|
(31.4)
|
|
|
|
|
|
Net cash provided
by (used in) investing activities
|
$
|
0.4
|
|
|
$
|
(287.6)
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
$
|
(12.3)
|
|
|
$
|
468.5
|
|
|
|
($ in
millions)
|
12 Months
2020
|
|
12 Months
2019
|
Net cash provided
by (used in) operating activities
|
$
|
(1,082.6)
|
|
|
$
|
469.8
|
|
Less: Changes in
operating assets and liabilities (working capital)
|
(79.5)
|
|
|
287.9
|
|
Free cash flow from
earnings
|
$
|
(1,162.1)
|
|
|
$
|
757.7
|
|
Less: Maintenance
capital expenditures
|
(65.1)
|
|
|
(150.9)
|
|
Distributions to noncontrolling interests
|
(41.6)
|
|
|
(107.5)
|
|
Free cash flow —
adjusted
|
$
|
(1,268.8)
|
|
|
$
|
499.3
|
|
|
|
|
|
Net cash used in
investing activities
|
$
|
(224.1)
|
|
|
$
|
(691.0)
|
|
|
|
|
|
Net cash provided
by financing activities
|
$
|
1,349.3
|
|
|
$
|
328.9
|
|
Reconciliation
of Free Cash to Cash and Cash Equivalents
|
|
($ in
millions)
|
December
31,
2020
|
Cash and cash
equivalents
|
$
|
2,537.8
|
|
Client
cash
|
(673.5)
|
|
Deferred revenue —
event-related
|
(1,532.5)
|
|
Accrued artist
fees
|
(13.1)
|
|
Collections on behalf
of others
|
(51.1)
|
|
Prepaid expenses —
event-related
|
375.5
|
|
Free cash
|
$
|
643.1
|
|
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 consumer demand and the
concerts pipeline for 2022; the timing for reopening society,
vaccinations, holding outdoor activities and returning to live
events; 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
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(236.4)
|
|
|
$
|
2.4
|
|
|
$
|
(0.4)
|
|
|
$
|
63.9
|
|
|
$
|
—
|
|
|
$
|
3.8
|
|
|
$
|
(166.7)
|
|
|
$
|
1.6
|
|
|
$
|
(165.1)
|
|
Ticketing
|
(131.5)
|
|
|
2.2
|
|
|
—
|
|
|
44.9
|
|
|
10.5
|
|
|
0.2
|
|
|
(73.7)
|
|
|
0.5
|
|
|
(73.2)
|
|
Sponsorship &
Advertising
|
4.1
|
|
|
1.2
|
|
|
—
|
|
|
8.9
|
|
|
—
|
|
|
—
|
|
|
14.2
|
|
|
(0.8)
|
|
|
13.4
|
|
Other &
Eliminations
|
(0.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4)
|
|
|
—
|
|
|
(1.8)
|
|
|
—
|
|
|
(1.8)
|
|
Corporate
|
(23.8)
|
|
|
4.1
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
0.8
|
|
|
(16.3)
|
|
|
—
|
|
|
(16.3)
|
|
Total Live
Nation
|
$
|
(388.0)
|
|
|
$
|
9.9
|
|
|
$
|
(0.4)
|
|
|
$
|
120.3
|
|
|
$
|
9.1
|
|
|
$
|
4.8
|
|
|
$
|
(244.3)
|
|
|
$
|
1.3
|
|
|
$
|
(243.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(166.4)
|
|
|
$
|
3.1
|
|
|
$
|
(1.8)
|
|
|
$
|
62.9
|
|
|
$
|
—
|
|
|
$
|
11.8
|
|
|
$
|
(90.4)
|
|
|
$
|
—
|
|
|
$
|
(90.4)
|
|
Ticketing
|
61.0
|
|
|
1.7
|
|
|
—
|
|
|
40.4
|
|
|
27.2
|
|
|
0.5
|
|
|
130.8
|
|
|
—
|
|
|
130.8
|
|
Sponsorship &
Advertising
|
73.5
|
|
|
0.7
|
|
|
—
|
|
|
8.2
|
|
|
—
|
|
|
0.1
|
|
|
82.5
|
|
|
—
|
|
|
82.5
|
|
Other &
Eliminations
|
(0.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0)
|
|
|
0.1
|
|
|
(1.6)
|
|
|
—
|
|
|
(1.6)
|
|
Corporate
|
(50.3)
|
|
|
6.4
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
(40.5)
|
|
|
—
|
|
|
(40.5)
|
|
Total Live
Nation
|
$
|
(82.9)
|
|
|
$
|
11.9
|
|
|
$
|
(1.8)
|
|
|
$
|
114.9
|
|
|
$
|
26.2
|
|
|
$
|
12.5
|
|
|
$
|
80.8
|
|
|
$
|
—
|
|
|
$
|
80.8
|
|
|
|
|
Twelve Months
Ended December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(959.0)
|
|
|
$
|
68.8
|
|
|
$
|
0.5
|
|
|
$
|
266.3
|
|
|
$
|
—
|
|
|
$
|
(15.4)
|
|
|
$
|
(638.8)
|
|
|
$
|
(0.9)
|
|
|
$
|
(639.7)
|
|
Ticketing
|
(612.0)
|
|
|
13.4
|
|
|
—
|
|
|
169.9
|
|
|
54.7
|
|
|
(0.6)
|
|
|
(374.6)
|
|
|
(0.7)
|
|
|
(375.3)
|
|
Sponsorship &
Advertising
|
44.9
|
|
|
6.4
|
|
|
—
|
|
|
30.6
|
|
|
—
|
|
|
—
|
|
|
81.9
|
|
|
(1.1)
|
|
|
80.8
|
|
Other &
Eliminations
|
(13.5)
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
|
(6.7)
|
|
|
—
|
|
|
(13.5)
|
|
|
—
|
|
|
(13.5)
|
|
Corporate
|
(113.6)
|
|
|
28.3
|
|
|
—
|
|
|
11.5
|
|
|
—
|
|
|
2.9
|
|
|
(70.9)
|
|
|
—
|
|
|
(70.9)
|
|
Total Live
Nation
|
$
|
(1,653.2)
|
|
|
$
|
116.9
|
|
|
$
|
0.5
|
|
|
$
|
485.0
|
|
|
$
|
48.0
|
|
|
$
|
(13.1)
|
|
|
$
|
(1,015.9)
|
|
|
$
|
(2.7)
|
|
|
$
|
(1,018.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
|
(53.5)
|
|
|
$
|
12.9
|
|
|
$
|
(2.5)
|
|
|
$
|
239.7
|
|
|
$
|
—
|
|
|
$
|
45.7
|
|
|
$
|
242.3
|
|
|
$
|
—
|
|
|
$
|
242.3
|
|
Ticketing
|
232.0
|
|
|
6.3
|
|
|
0.1
|
|
|
156.9
|
|
|
85.8
|
|
|
1.3
|
|
|
482.4
|
|
|
—
|
|
|
482.4
|
|
Sponsorship &
Advertising
|
330.3
|
|
|
2.7
|
|
|
—
|
|
|
33.1
|
|
|
—
|
|
|
—
|
|
|
366.1
|
|
|
—
|
|
|
366.1
|
|
Other &
Eliminations
|
(1.2)
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
(5.5)
|
|
|
—
|
|
|
(6.3)
|
|
|
—
|
|
|
(6.3)
|
|
Corporate
|
(182.8)
|
|
|
26.8
|
|
|
—
|
|
|
14.0
|
|
|
—
|
|
|
—
|
|
|
(142.0)
|
|
|
—
|
|
|
(142.0)
|
|
Total Live
Nation
|
$
|
324.8
|
|
|
$
|
48.8
|
|
|
$
|
(2.4)
|
|
|
$
|
444.0
|
|
|
$
|
80.3
|
|
|
$
|
47.0
|
|
|
$
|
942.5
|
|
|
$
|
—
|
|
|
$
|
942.5
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
December
31,
2020
|
|
December
31,
2019
|
|
(in thousands,
except share data)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
|
2,537,787
|
|
|
$
|
2,470,362
|
|
Accounts receivable, less allowance of $72,904 and $50,516,
respectively
|
486,734
|
|
|
994,606
|
|
Prepaid expenses
|
577,130
|
|
|
667,044
|
|
Restricted cash
|
8,652
|
|
|
3,880
|
|
Other current assets
|
39,465
|
|
|
57,007
|
|
Total current
assets
|
3,649,768
|
|
|
4,192,899
|
|
Property, plant and
equipment, net
|
1,101,414
|
|
|
1,117,932
|
|
Operating lease
assets
|
1,424,223
|
|
|
1,402,019
|
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
855,600
|
|
|
870,141
|
|
Indefinite-lived intangible assets
|
369,058
|
|
|
368,954
|
|
Goodwill
|
2,129,203
|
|
|
1,998,498
|
|
Long-term
advances
|
668,756
|
|
|
593,699
|
|
Other long-term
assets
|
391,281
|
|
|
431,473
|
|
Total
assets
|
$
|
10,589,303
|
|
|
$
|
10,975,615
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
|
744,096
|
|
|
$
|
1,005,888
|
|
Accounts payable
|
86,356
|
|
|
100,237
|
|
Accrued expenses
|
894,149
|
|
|
1,391,486
|
|
Deferred revenue
|
1,839,323
|
|
|
1,391,032
|
|
Current portion of long-term debt, net
|
53,415
|
|
|
37,795
|
|
Current portion of operating lease liabilities
|
107,147
|
|
|
121,950
|
|
Other current liabilities
|
72,083
|
|
|
59,211
|
|
Total current
liabilities
|
3,796,569
|
|
|
4,107,599
|
|
Long-term debt,
net
|
4,855,096
|
|
|
3,271,262
|
|
Long-term operating
lease liabilities
|
1,445,674
|
|
|
1,374,481
|
|
Long-term deferred
income taxes
|
170,759
|
|
|
178,173
|
|
Other long-term
liabilities
|
182,508
|
|
|
130,648
|
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
272,449
|
|
|
449,498
|
|
Stockholders'
equity
|
|
|
|
Preferred stock—Series
A Junior Participating, $0.01 par value; 20,000,000 shares
authorized; no shares issued and
outstanding
|
—
|
|
|
—
|
|
Preferred stock, $0.01
par value; 30,000,000 shares authorized; no shares issued and
outstanding
|
—
|
|
|
—
|
|
Common stock, $0.01
par value; 450,000,000 shares authorized; 218,423,061 and
214,117,644 shares issued and 218,015,037 and 213,709,620 shares
outstanding in 2020 and 2019, respectively
|
2,145
|
|
|
2,113
|
|
Additional paid-in capital
|
2,386,790
|
|
|
2,245,619
|
|
Accumulated deficit
|
(2,676,833)
|
|
|
(949,334)
|
|
Cost of shares held in
treasury (408,024 shares)
|
(6,865)
|
|
|
(6,865)
|
|
Accumulated other comprehensive loss
|
(177,009)
|
|
|
(145,713)
|
|
Total Live Nation
stockholders' equity
|
(471,772)
|
|
|
1,145,820
|
|
Noncontrolling
interests
|
338,020
|
|
|
318,134
|
|
Total
equity
|
(133,752)
|
|
|
1,463,954
|
|
Total liabilities
and equity
|
$
|
10,589,303
|
|
|
$
|
10,975,615
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2018
|
|
(in thousands,
except share and per share data)
|
Revenue
|
$
|
1,861,178
|
|
|
$
|
11,547,969
|
|
|
$
|
10,787,800
|
|
Operating
expenses:
|
|
|
|
|
|
Direct operating
expenses
|
1,402,400
|
|
|
8,467,182
|
|
|
7,967,932
|
|
Selling, general and
administrative expenses
|
1,524,342
|
|
|
2,145,486
|
|
|
1,997,028
|
|
Depreciation and
amortization
|
485,025
|
|
|
443,991
|
|
|
386,529
|
|
Loss (gain) on
disposal of operating assets
|
503
|
|
|
(2,373)
|
|
|
10,369
|
|
Corporate
expenses
|
102,100
|
|
|
168,839
|
|
|
153,406
|
|
Operating income
(loss)
|
(1,653,192)
|
|
|
324,844
|
|
|
272,536
|
|
Interest
expense
|
226,832
|
|
|
157,521
|
|
|
140,976
|
|
Interest
income
|
(11,737)
|
|
|
(14,406)
|
|
|
(8,961)
|
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
5,458
|
|
|
(5,457)
|
|
|
(2,747)
|
|
Other expense
(income), net
|
(17,080)
|
|
|
2,082
|
|
|
12,163
|
|
Income (loss) before
income taxes
|
(1,856,665)
|
|
|
185,104
|
|
|
131,105
|
|
Income tax expense
(benefit)
|
(28,875)
|
|
|
66,892
|
|
|
40,765
|
|
Net income
(loss)
|
(1,827,790)
|
|
|
118,212
|
|
|
90,340
|
|
Net income (loss)
attributable to noncontrolling interests
|
(103,255)
|
|
|
48,323
|
|
|
30,091
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
|
(1,724,535)
|
|
|
$
|
69,889
|
|
|
$
|
60,249
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share available to common stockholders of Live
Nation
|
$
|
(8.12)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.09)
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
Basic and
diluted
|
212,270,944
|
|
|
210,082,696
|
|
|
207,441,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
loss available to common stockholders of Live Nation:
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
|
(1,724,535)
|
|
|
$
|
69,889
|
|
|
$
|
60,249
|
|
Accretion of redeemable
noncontrolling interests
|
1,180
|
|
|
(74,771)
|
|
|
(77,900)
|
|
Basic and diluted net
loss available to common stockholders of Live Nation
|
$
|
(1,723,355)
|
|
|
$
|
(4,882)
|
|
|
$
|
(17,651)
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2018
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
(loss)
|
$
|
(1,827,790)
|
|
|
$
|
118,212
|
|
|
$
|
90,340
|
|
Reconciling
items:
|
|
|
|
|
|
Depreciation
|
245,713
|
|
|
220,459
|
|
|
185,376
|
|
Amortization
|
239,312
|
|
|
223,532
|
|
|
201,153
|
|
Amortization of
non-recoupable ticketing contract advances
|
47,971
|
|
|
80,302
|
|
|
80,087
|
|
Deferred income tax
benefit
|
(37,877)
|
|
|
(465)
|
|
|
(6,247)
|
|
Amortization of debt
issuance costs and discounts
|
32,774
|
|
|
24,116
|
|
|
20,219
|
|
Provision for
uncollectible accounts receivable
|
43,076
|
|
|
27,926
|
|
|
26,321
|
|
Non-cash compensation
expense
|
116,889
|
|
|
48,785
|
|
|
45,582
|
|
Unrealized changes in
fair value of contingent consideration
|
(24,448)
|
|
|
6,698
|
|
|
14,125
|
|
Equity in losses
(earnings) of nonconsolidated affiliates, net of
distributions
|
18,280
|
|
|
14,152
|
|
|
11,693
|
|
Other, net
|
(15,995)
|
|
|
(6,027)
|
|
|
6,609
|
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
|
Decrease (increase) in
accounts receivable
|
490,588
|
|
|
(159,792)
|
|
|
(135,429)
|
|
Decrease (increase) in
prepaid expenses and other assets
|
141,631
|
|
|
(170,486)
|
|
|
(266,241)
|
|
Increase (decrease) in
accounts payable, accrued expenses and other liabilities
|
(1,379,461)
|
|
|
(45,920)
|
|
|
323,459
|
|
Increase in deferred
revenue
|
826,699
|
|
|
88,291
|
|
|
344,539
|
|
Net cash provided by
(used in) operating activities
|
(1,082,638)
|
|
|
469,783
|
|
|
941,586
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Advances of notes
receivable
|
(56,957)
|
|
|
(50,035)
|
|
|
(90,705)
|
|
Collections of notes
receivable
|
80,963
|
|
|
13,216
|
|
|
33,914
|
|
Investments made in
nonconsolidated affiliates
|
(11,242)
|
|
|
(57,280)
|
|
|
(46,497)
|
|
Purchases of
property, plant and equipment
|
(213,746)
|
|
|
(323,566)
|
|
|
(239,833)
|
|
Cash paid for
acquisitions, net of cash acquired
|
(41,083)
|
|
|
(235,071)
|
|
|
(120,228)
|
|
Purchases of
intangible assets
|
(8,863)
|
|
|
(42,261)
|
|
|
(35,630)
|
|
Proceeds from sale of
investments in nonconsolidated affiliates
|
19,003
|
|
|
1,455
|
|
|
—
|
|
Other, net
|
7,863
|
|
|
2,542
|
|
|
2,070
|
|
Net cash used in
investing activities
|
(224,062)
|
|
|
(691,000)
|
|
|
(496,909)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from
long-term debt, net of debt issuance costs
|
1,607,365
|
|
|
937,400
|
|
|
858,667
|
|
Payments on long-term
debt including extinguishment costs
|
(30,987)
|
|
|
(437,267)
|
|
|
(400,396)
|
|
Contributions from
noncontrolling interests
|
4,668
|
|
|
14,285
|
|
|
4,900
|
|
Distributions to
noncontrolling interests
|
(41,625)
|
|
|
(107,476)
|
|
|
(59,187)
|
|
Purchases and sales
of noncontrolling interests, net
|
(106,242)
|
|
|
(50,267)
|
|
|
(159,634)
|
|
Proceeds from
exercise of stock options
|
30,647
|
|
|
14,104
|
|
|
22,568
|
|
Taxes paid for net
share settlement of equity awards
|
(47,539)
|
|
|
(15,353)
|
|
|
(55,005)
|
|
Payments for deferred
and contingent consideration
|
(66,992)
|
|
|
(26,537)
|
|
|
(18,784)
|
|
Other, net
|
37
|
|
|
—
|
|
|
(4,345)
|
|
Net cash provided by
financing activities
|
1,349,332
|
|
|
328,889
|
|
|
188,784
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
29,565
|
|
|
(11,633)
|
|
|
(84,080)
|
|
Net increase in cash,
cash equivalents, and restricted cash
|
72,197
|
|
|
96,039
|
|
|
549,381
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
2,474,242
|
|
|
2,378,203
|
|
|
1,828,822
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
2,546,439
|
|
|
$
|
2,474,242
|
|
|
$
|
2,378,203
|
|
SUPPLEMENTAL
DISCLOSURE
|
|
|
|
|
|
Cash paid during the
year for:
|
|
|
|
|
|
Interest, net of
interest income
|
$
|
166,405
|
|
|
$
|
103,915
|
|
|
$
|
100,278
|
|
Income taxes, net of
refunds
|
$
|
26,151
|
|
|
$
|
66,937
|
|
|
$
|
60,016
|
|
FOURTH QUARTER 2020
Supplemental Information
(unaudited)
Free Cash & Cash Used in the Quarter
Changes to the company's free cash balance from the end of the
third quarter of 2020 to the end of the fourth quarter were as
follows:
|
(in
millions)
|
Free cash balance
at 9/30/2020
|
$
|
951
|
|
Operational fixed
costs
|
(290)
|
|
Non-operational cash
uses, including capital expenditures, acquisition activity, net
advances and interest payments
|
(132)
|
|
Operational
contribution margin*
|
116
|
|
Inflows / (outflows)
from cash management programs
|
(2)
|
|
Free cash balance
at 12/31/2020
|
$
|
643
|
|
|
*Operational
Contribution Margin is our contribution margin less one-time items
(Ticketing refunds, insurance recoveries, and artist advance
reserves) and excluding the call center costs we have included in
operational fixed costs above.
|
Ticket Refunds - Q4 2020
The global refund rate for the company's concerts that are
rescheduled and are in or have gone through a refund window is 17%
through the end of the fourth quarter of 2020. Festivals have
generally canceled this year's event, but for festivals where fans
can retain their tickets for next year's show, approximately 63% of
fans are keeping their tickets.
Across both concerts and festivals, since March the company has
refunded $282 million for rescheduled Live Nation shows and
$842 million for canceled Live Nation shows. Of this
$1.1 billion total,
$460 million was from funds held by third-party venues and
$663 million was from Live Nation-held funds.
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, we have recorded $102 million in additional
fan refunds from Live Nation-held funds. As a result, the company
has reclassified these funds from deferred revenue to accrued
ticket refunds as of the fourth quarter of 2020.
Event-Related Deferred Revenue
The company's deferred revenue for events over the next 12 months
was $1.5 billion as of
December 31, 2020 as compared to
$1.4 billion as of September 30, 2020. This increase was due to
ticket sales for future events, sales for events scheduled for Q4
2021 shifting from long-term to current deferred revenue as well as
currency impacts on our international deferred revenue
balances.
|
(in
millions)
|
Current Deferred
Revenue as of 9/30/2020
|
$
|
1,362
|
|
Shift from long-term
deferred revenue to current deferred revenue
|
67
|
|
Adjustment to
estimated additional future refunds from Live Nation-held
cash
|
(30)
|
|
Currency
impacts
|
44
|
|
Ticket sales in the
fourth quarter of 2020
|
98
|
|
Other /
Net
|
(9)
|
|
Current Deferred
Revenue as of 12/31/2020
|
$
|
1,532
|
|
In addition, the company had approximately $35 million of
long-term event-related deferred revenue at the end of the fourth
quarter of 2020.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/live-nation-entertainment-reports-fourth-quarter--full-year-2020-results-301236011.html
SOURCE Live Nation Entertainment