Financial Overview (vs Q2 2019): Fan Demand and Spending on
Experiences Drove Record Results
- Operating Income Up 86% to $319
Million
- AOI Up 50% to $480
Million
- Operating Cash Flow Hit $349
Million
- Free Cash Flow-Adjusted Up 72% to $379 Million
Highlights (vs 2019): Live Events Back On a Global
Basis
- Highest Quarterly Attendance Ever with Over 33 Million Fans
Across 12,500 Events
- Ticketmaster Delivers Another Record Quarter - AOI Up 86%,
Transacted GTV Up 76%
- Sponsorship AOI Up 81% in Q2 with New Clients Including
Google, AWS, and Hulu
- Average Ticket Pricing Up Double-Digits through June, Entry
Level Ticket Prices Average Remains $33
- On-Site Fan Spending Growth Continues Up 20%+ through June
at All Venues
Outlook: On Pace for Record 2022 and Beyond
- 100 Million Tickets Sold for 2022 Concerts, Already
Exceeding Full Year 2019 Fan Count
- Concert Bookings Up Over 30% for All Venue Types (vs Q2
2019)
- $3.2 Billion in Event-Related
Deferred Revenue, Up 2x (vs Q2 2019)
- Fan Attendance at Operated Venues Grew 13% (vs Q2 2019) to
Over 14 Million, with Almost 30 New Venues in Pipeline
- Sponsorship Fully Committed For 2022, On Pace For a Record
Year
- 2023 Artist Pipeline Is Largest Ever Seen At
Mid-Year
LOS
ANGELES, Aug. 4, 2022 /PRNewswire/ -- Live Nation
Entertainment, Inc. (NYSE: LYV) today released financial results
for the quarter ended June 30, 2022.
The second quarter confirmed that the live entertainment
industry is back globally and bigger than ever. Live Nation led
this return, and continues to deliver the best global network to
support artists as they play shows for their fans around the
world. Every key operating metric is at an all-time high, as
we promoted more concerts, had more fans attend shows where they
spent more money, sold more tickets and enabled brands to connect
with fans at a scale we have never seen before.
As a result, relative to Q2 2019, we drove a 40% increase in
revenue to $4.4 billion, an 86%
increase in operating income to $319
million, and a 50% increase in AOI to $480 million. With most of the world fully
re-opened, it's clear that concerts remain a high priority for
fans. Consumers are seeking out and spending more on
experiences, and the growing demand we are seeing for live music
and events is driving our business to record levels, far outpacing
any macro issues or cost increases.
Momentum across our business has remained strong in recent
months and weeks, and demand combined with a substantial concert
pipeline gives us confidence in our ongoing growth this year and
into 2023.
Record 2Q Concert Attendance
During the second quarter, we promoted over 12,500 concerts for
33.5 million fans, each up over 20% relative to the second quarter
of 2019. Of the over 6 million additional fans this quarter,
5 million of the growth came from international markets, driven by
the addition of OCESA and the re-opening of most global markets
with particularly strong fan demand through Europe and Latin America. Growth was
broad-based with double-digit attendance increases at all venue
types, demonstrating strong demand for events of all sizes from
large scale stadium shows and festivals to intimate events in clubs
and theaters.
Even as show count and attendance grew, fans demonstrated their
willingness to pay more for the best seats, with the average price
of a ticket for our concerts this year up 10% globally, relative to
2019, which remains largely in line with the U.S. inflation level
over the period. At the same time, our average entry price
for concerts remained affordable at $33, up only 5% from 2019. With
market-based pricing being widely adopted by most tours, we expect
to shift over $500 million from the
secondary market to artists this year, continuing to support those
who created the concert and ensuring they are benefiting from
it.
On the venue side of our concert business, we continued to build
our portfolio of operated venues, with an active pipeline of almost
30 new venues across the globe. We are seeing the benefit of
operating more venues, as the number of fans who attended shows in
our owned or operated venues during the quarter was up 13% to over
14 million fans, and we expect that figure to reach over fifty
million fans for the full year.
Fans are spending more on-site with average revenue per fan up
over 20% at our amphitheaters, festivals, and theaters and clubs
relative to this time in 2019 while the average revenue per fan at
our amphitheaters this year is $38.50, up 30% relative to this point in
2019.
Ticketing Volumes Continue at Record Levels
Our ticketing business also demonstrated strong growth in the
quarter. Transacted fee-bearing ticket volume was up 48% to
77 million tickets and transacted GTV was up 76% to $7.3 billion, both relative to Q2 2019.
This was our highest fee-bearing GTV quarter ever, with April, May
and June accounting for 3 of our 5 top all-time months for
fee-bearing GTV months. 75% of this growth came from
concerts, another indicator of the high demand for live music.
Along with the volume increase, transacted ticket pricing
globally was up approximately 15% for the first half of the year
relative to 2019, as both concerts and sporting events saw similar
low double-digit price increases during this period. Even
with strong primary ticketing sales and increased pricing, demand
for live events on our secondary ticketing marketplace remains
high, and as a result, our GTV more than doubled for the quarter
relative to Q2 2019.
We are continuing to see the benefits of our technology
investments at Ticketmaster, including our global leadership in
digital ticketing. Between new capabilities and the sales
effectiveness of our global ticketing marketplace, we consistently
deliver higher ticket sales for event organizers. As a
result, we continue to win business from new and existing clients,
and through the first half of the year, we added 12.8 million net
new fee-bearing tickets to our marketplace, led again this year by
our international markets, which accounted for 60% of this new
growth.
Sponsorship Continues Growth in Connecting Brands and
Fans
Sponsorship also benefited from the concerts flywheel this
quarter, driving 74% growth in revenue relative to Q2 2019, as we
further enabled more brands to connect with an increasing number of
fans on a global basis.
Festival sponsorship has performed particularly well during the
first half of the year, more than doubling from 2019, led by 9 new
festivals in our Mexico and Latin
American businesses that accounted for roughly half this increase,
along with broad growth in sponsorship levels across most of our
North America festivals. We
continue to add more clients in technology, telecom and purchase
path integration, including Google, AWS, and Hulu – with these
categories collectively more than doubling their sponsorship since
2019.
Record 2022 In Progress
As we look forward to the second half of 2022 and into 2023, we
have sold over 100 million tickets for our concerts this year, more
than we sold for the entire year in 2019. Fan demand remains
strong, with continued growth in ticket buying and on-site
spending. And given the long-term nature of most of our
sponsorship partnerships, our planned sponsorship for the year is
now fully committed.
As we prepare for 2023, everywhere globally is open for
concerts, and we are actively routing into all markets with the
largest artist pipeline we have ever seen at this point in the
year. For the 2023 tours we have put on sale so far, all
signs continue pointing to strong fan demand.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial
performance, operational matters and potentially other material
developments. Interested parties should visit the "News / Events"
section of the company's website at
investors.livenationentertainment.com to listen to the webcast.
Supplemental statistical and financial information to be provided
on the call, if any, will be posted to the "Financial Info" section
of the website. A replay of the webcast will also be available on
the Live Nation website.
Notice Regarding Financial Statements
The company has provided certain financial statements at the end
of this press release for reference. These financial
statements should be read in conjunction with the full financial
statements, and the notes thereto, set forth in the company's
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 2022
Reported *
|
|
Q2 2021
Reported
|
|
Q2 2022
Constant
Currency *
|
Revenue
|
|
|
|
|
|
Concerts
|
$ 3,597.8
|
|
$
287.0
|
|
$ 3,749.7
|
Ticketing
|
575.3
|
|
244.0
|
|
588.7
|
Sponsorship &
Advertising
|
263.8
|
|
44.6
|
|
272.8
|
Other and
Eliminations
|
(2.7)
|
|
0.3
|
|
(2.7)
|
|
$ 4,434.2
|
|
$
575.9
|
|
$ 4,608.5
|
|
|
|
|
|
|
Consolidated
Operating Income (Loss)
|
$
318.7
|
|
$
(127.3)
|
|
$
338.8
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
Concerts
|
$
123.0
|
|
$
(84.0)
|
|
$
134.4
|
Ticketing
|
230.8
|
|
99.4
|
|
235.3
|
Sponsorship &
Advertising
|
178.3
|
|
13.0
|
|
185.2
|
Other and
Eliminations
|
(2.1)
|
|
(1.2)
|
|
(1.9)
|
Corporate
|
(50.4)
|
|
(17.5)
|
|
(50.4)
|
|
$
479.6
|
|
$
9.7
|
|
$
502.6
|
* Growth and growth at constant currency percentages are not
meaningful
FINANCIAL HIGHLIGHTS
– SIX MONTHS
|
(unaudited; $ in
millions)
|
|
|
6 Months
2022
Reported
|
|
6 Months
2021
Reported
|
|
Growth
|
|
6 Months
2022
Constant
Currency
|
|
Growth at
Constant
Currency
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
4,805.6
|
|
$
526.4
|
|
*
|
|
$
4,966.6
|
|
*
|
|
Ticketing
|
1,055.7
|
|
272.3
|
|
*
|
|
1,072.7
|
|
*
|
|
Sponsorship &
Advertising
|
379.5
|
|
67.2
|
|
*
|
|
389.8
|
|
*
|
|
Other and
Eliminations
|
(3.8)
|
|
0.7
|
|
*
|
|
(3.8)
|
|
*
|
|
|
$
6,237.0
|
|
$
866.6
|
|
*
|
|
$
6,425.3
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Income (Loss)
|
$
345.8
|
|
$ (430.5)
|
|
*
|
|
$
363.8
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
73.8
|
|
$ (158.6)
|
|
*
|
|
$
84.1
|
|
*
|
|
Ticketing
|
437.0
|
|
36.7
|
|
*
|
|
441.8
|
|
*
|
|
Sponsorship &
Advertising
|
248.0
|
|
16.5
|
|
*
|
|
255.9
|
|
*
|
|
Other and
Eliminations
|
(6.5)
|
|
(3.4)
|
|
(91) %
|
|
(6.5)
|
|
(91) %
|
|
Corporate
|
(63.7)
|
|
(33.3)
|
|
(91) %
|
|
(63.7)
|
|
(91) %
|
|
|
$
688.6
|
|
$ (142.1)
|
|
*
|
|
$
711.6
|
|
*
|
|
* Percentages are not meaningful
Reconciliation of
Adjusted Operating Income (Loss) to Operating Income (Loss)
(Unaudited)
|
|
|
Q2
2022
|
Q2
2021
|
|
6 Months
2022
|
6 Months
2021
|
|
(in
millions)
|
Adjusted Operating
Income (Loss)
|
$
479.6
|
$
9.7
|
|
$
688.6
|
$
(142.1)
|
Acquisition
expenses
|
9.5
|
2.5
|
|
21.6
|
(5.7)
|
Amortization of
non-recoupable ticketing contract advance
|
21.9
|
18.1
|
|
40.4
|
28.7
|
Depreciation and
amortization
|
115.9
|
103.6
|
|
216.4
|
212.5
|
Loss (gain) on
sale of operating assets
|
1.1
|
—
|
|
2.7
|
0.1
|
Stock-based
compensation expense
|
12.5
|
12.8
|
|
61.7
|
52.8
|
Operating income
(loss)
|
$
318.7
|
$
(127.3)
|
|
$
345.8
|
$
(430.5)
|
KEY OPERATING
METRICS
|
(unaudited)
|
|
|
Q2
2022
|
|
Q2
2021
|
|
6 Months
2022
|
|
6 Months
2021
|
|
(in thousands except
estimated events)
|
Concerts
(1)
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
North
America
|
8,010
|
|
1,160
|
|
12,744
|
|
1,464
|
International
|
4,478
|
|
562
|
|
6,456
|
|
926
|
Total estimated
events
|
12,488
|
|
1,722
|
|
19,200
|
|
2,390
|
Estimated
fans:
|
|
|
|
|
|
|
|
North
America
|
17,020
|
|
658
|
|
23,822
|
|
726
|
International
|
16,343
|
|
742
|
|
20,411
|
|
1,172
|
Total estimated
fans
|
33,363
|
|
1,400
|
|
44,233
|
|
1,898
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
72,019
|
|
26,345
|
|
123,582
|
|
32,938
|
Estimated number of
non-fee-bearing tickets
|
67,847
|
|
22,216
|
|
127,730
|
|
32,774
|
Total estimated
tickets sold
|
139,866
|
|
48,561
|
|
251,312
|
|
65,712
|
_________
(1)
|
Events generally
represent a single performance by an artist. Fans generally
represent the number of people who attend an event. Festivals are
counted as one event in the quarter in which the festival begins,
but the number of fans is based on the days the fans were present
at the festival and thus can be reported across multiple quarters.
Events and fan attendance metrics are estimated each
quarter.
|
|
|
(2)
|
The fee-bearing tickets
estimated above include primary and secondary tickets that are sold
using our Ticketmaster systems or that we issue through affiliates.
This includes primary tickets sold during the year regardless of
event timing, except for our own events where our concert promoters
control ticketing which are reported when the events occur. The
non-fee-bearing tickets estimated above include primary tickets
sold using our Ticketmaster systems, through season seat packages
and our venue clients' box offices, along with tickets sold on our
"do it yourself" platform. These ticket metrics are net of any
refunds requested and any cancellations that occurred during the
period, which may result in a negative number. Fee-bearing tickets
sold above are net of refunds of 5.2 million and
4.1 million tickets for the three months ended June 30,
2022 and 2021, respectively, and 10.4 million and
7.1 million for six months ended June 30, 2022 and 2021,
respectively.
|
Reconciliation of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation of
Free Cash Flow — Adjusted to Net Cash Provided
by Operating Activities
|
($ in
millions)
|
Q2
2022
|
|
Q2
2021
|
Net cash provided by
operating activities
|
$
349.1
|
|
$
1,095.4
|
Less: Changes in
operating assets and liabilities (working capital)
|
78.5
|
|
(1,159.6)
|
Free cash flow from
earnings
|
$
427.6
|
|
$
(64.2)
|
Less: Maintenance
capital expenditures
|
(21.3)
|
|
(8.6)
|
Distributions to noncontrolling interests
|
(27.1)
|
|
(8.9)
|
Free cash flow —
adjusted
|
$
379.2
|
|
$
(81.7)
|
|
|
|
|
Net cash used in
investing activities
|
$
(129.7)
|
|
$
(60.4)
|
|
|
|
|
Net cash used in
financing activities
|
$
(62.6)
|
|
$
(15.5)
|
|
($ in
millions)
|
6 Months
2022
|
|
6 Months
2021
|
Net cash provided by
operating activities
|
$
1,547.4
|
|
$
1,170.0
|
Less: Changes in
operating assets and liabilities (working capital)
|
(977.9)
|
|
(1,448.6)
|
Free cash flow from
earnings
|
$
569.5
|
|
$
(278.6)
|
Less: Maintenance
capital expenditures
|
(35.1)
|
|
(14.3)
|
Distributions to noncontrolling interests
|
(66.1)
|
|
(14.5)
|
Free cash flow —
adjusted
|
$
468.3
|
|
$
(307.4)
|
|
|
|
|
Net cash used in
investing activities
|
$
(244.7)
|
|
$
(50.3)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
$
(137.6)
|
|
$
401.5
|
Reconciliation of
Free Cash to Cash and Cash Equivalents
|
($ in
millions)
|
June 30,
2022
|
Cash and cash
equivalents
|
$
5,860.4
|
Client cash
|
(1,394.9)
|
Deferred revenue —
event-related
|
(3,154.1)
|
Accrued artist
fees
|
(133.7)
|
Collections on behalf
of others
|
(65.5)
|
Prepaid expenses —
event-related
|
812.5
|
Free cash
|
$
1,924.7
|
- As of June 30, 2022, total cash
and cash equivalents were $5.9
billion, which includes $1.4
billion in ticketing client cash and $1.9 billion in free cash. This free cash, along
with $563.8 million of available debt
capacity, gives the company $2.5
billion of available liquidity. The company believes this
level of liquidity will provide its needs to fund operations and
future investment opportunities.
- The company currently expects capital expenditures for the full
year to be approximately $375 million
in 2022.
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 prospects for
a record 2022 and beyond, including in the company's sponsorship
and advertising business, and the company's confidence in ongoing
growth in 2022 and into 2023 due to demand and the concert
pipeline; the company's belief that its current liquidity level
will provide it the runway it needs to fund operations and future
investment opportunities; and the company's current expectations
for capital expenditures for 2022.
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.
Constant Currency is a non-GAAP financial measure when
applied to a GAAP financial measure. We calculate currency impacts
as the difference between current period activity translated using
the current period's currency exchange rates and the comparable
prior period's currency exchange rates. We present constant
currency information to provide a framework for assessing how our
underlying businesses performed excluding the effect of foreign
currency rate fluctuations.
Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial
measure that we define as net cash provided by (used in) operating
activities less changes in operating assets and liabilities, less
maintenance capital expenditures, less distributions to
noncontrolling interest partners. We use FCF among other measures,
to evaluate the ability of operations to generate cash that is
available for purposes other than maintenance capital expenditures.
We believe that information about FCF provides investors with an
important perspective on the cash available to service debt, make
acquisitions, and for revenue generating capital expenditures. FCF
is not calculated or presented in accordance with GAAP. A
limitation of the use of FCF as a performance measure is that it
does not necessarily represent funds available for operations and
is not necessarily a measure of our ability to fund our cash needs.
Accordingly, FCF should be considered in addition to, and not as a
substitute for, net cash provided by (used in) operating activities
and other measures of financial performance reported in accordance
with GAAP. Furthermore, this measure may vary among other
companies; thus, FCF as presented herein may not be comparable to
similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that we define as cash
and cash equivalents less ticketing-related client funds, less
event-related deferred revenue, less accrued expenses due to
artists and cash collected on behalf of others, plus event-related
prepaids. We use free cash as a proxy for how much cash we have
available to, among other things, optionally repay debt balances,
make acquisitions and fund revenue generating capital expenditures.
Free cash is not calculated or presented in accordance with GAAP. A
limitation of the use of free cash as a performance measure is that
it does not necessarily represent funds available from operations
and it is not necessarily a measure of our ability to fund our cash
needs. Accordingly, free cash should be considered in addition to,
and not as a substitute for, cash and cash equivalents and other
measures of financial performance reported in accordance with GAAP.
Furthermore, this measure may vary among other companies; thus,
free cash as presented herein may not be comparable to similarly
titled measures of other companies.
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED BALANCE
SHEETS
|
(unaudited)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
5,860,435
|
|
$
4,884,729
|
Accounts receivable, less allowance of $55,150 and $50,491,
respectively
|
1,456,198
|
|
1,066,573
|
Prepaid expenses
|
1,153,522
|
|
654,894
|
Restricted cash
|
5,721
|
|
3,063
|
Other current assets
|
74,906
|
|
74,834
|
Total current
assets
|
8,550,782
|
|
6,684,093
|
Property, plant and
equipment, net
|
1,089,421
|
|
1,091,929
|
Operating lease
assets
|
1,596,511
|
|
1,538,911
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
964,406
|
|
1,026,338
|
Indefinite-lived intangible assets, net
|
414,700
|
|
369,028
|
Goodwill
|
2,563,119
|
|
2,590,869
|
Long-term
advances
|
611,899
|
|
552,697
|
Other long-term
assets
|
630,190
|
|
548,453
|
Total
assets
|
$ 16,421,028
|
|
$ 14,402,318
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
1,615,787
|
|
$
1,532,345
|
Accounts payable
|
219,744
|
|
110,623
|
Accrued expenses
|
2,192,883
|
|
1,645,906
|
Deferred revenue
|
3,766,387
|
|
2,774,792
|
Current portion of long-term debt, net
|
607,190
|
|
585,254
|
Current portion of operating lease liabilities
|
153,023
|
|
123,715
|
Other current liabilities
|
77,029
|
|
83,087
|
Total current
liabilities
|
8,632,043
|
|
6,855,722
|
Long-term debt,
net
|
5,140,155
|
|
5,145,484
|
Long-term operating
lease liabilities
|
1,650,052
|
|
1,606,064
|
Other long-term
liabilities
|
398,756
|
|
431,581
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
565,024
|
|
551,921
|
Stockholders'
equity
|
|
|
|
Common stock
|
2,256
|
|
2,220
|
Additional paid-in capital
|
2,853,613
|
|
2,897,695
|
Accumulated deficit
|
(3,129,597)
|
|
(3,327,737)
|
Cost
of shares held in treasury
|
(6,865)
|
|
(6,865)
|
Accumulated other comprehensive loss
|
(129,571)
|
|
(147,964)
|
Total Live Nation
stockholders' equity
|
(410,164)
|
|
(582,651)
|
Noncontrolling
interests
|
445,162
|
|
394,197
|
Total
equity
|
34,998
|
|
(188,454)
|
Total liabilities
and equity
|
$ 16,421,028
|
|
$ 14,402,318
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
(in thousands except
share and per share data)
|
Revenue
|
$
4,434,174
|
|
$
575,946
|
|
$
6,236,982
|
|
$
866,555
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating
expenses
|
3,267,023
|
|
243,120
|
|
4,338,045
|
|
377,086
|
Selling, general and
administrative expenses
|
672,213
|
|
328,894
|
|
1,242,395
|
|
651,747
|
Depreciation and
amortization
|
115,927
|
|
103,647
|
|
216,396
|
|
212,523
|
Loss (gain) on
disposal of operating assets
|
1,065
|
|
(28)
|
|
2,730
|
|
110
|
Corporate
expenses
|
59,247
|
|
27,598
|
|
91,657
|
|
55,546
|
Operating income
(loss)
|
318,699
|
|
(127,285)
|
|
345,759
|
|
(430,457)
|
Interest
expense
|
68,435
|
|
68,909
|
|
135,208
|
|
139,739
|
Interest
income
|
(13,192)
|
|
(1,471)
|
|
(20,756)
|
|
(2,620)
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
(1,955)
|
|
2,998
|
|
(6,243)
|
|
2,417
|
Loss (gain) from sale
of investments in nonconsolidated affiliates
|
(580)
|
|
993
|
|
(448)
|
|
(52,947)
|
Other expense,
net
|
5,619
|
|
9,461
|
|
14,886
|
|
7,462
|
Income (loss) before
income taxes
|
260,372
|
|
(208,175)
|
|
223,112
|
|
(524,508)
|
Income tax
expense
|
31,995
|
|
2,285
|
|
43,691
|
|
8,674
|
Net income
(loss)
|
228,377
|
|
(210,460)
|
|
179,421
|
|
(533,182)
|
Net income (loss)
attributable to noncontrolling interests
|
40,577
|
|
(14,795)
|
|
41,803
|
|
(30,324)
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
187,800
|
|
$
(195,665)
|
|
$
137,618
|
|
$
(502,858)
|
|
|
|
|
|
|
|
|
Basic net income (loss)
per common share available to common stockholders of Live
Nation
|
$
0.69
|
|
$
(0.90)
|
|
$
0.31
|
|
$
(2.34)
|
Diluted net income
(loss) per common share available to common stockholders of Live
Nation
|
$
0.66
|
|
$
(0.90)
|
|
$
0.30
|
|
$
(2.34)
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
224,674,447
|
|
215,702,508
|
|
223,290,226
|
|
215,120,467
|
Diluted
|
243,634,764
|
|
215,702,508
|
|
231,367,674
|
|
215,120,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income (loss) available to common stockholders of Live
Nation:
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
187,800
|
|
$
(195,665)
|
|
$
137,618
|
|
$
(502,858)
|
Accretion of redeemable
noncontrolling interests
|
(32,560)
|
|
951
|
|
(68,274)
|
|
35
|
Net income (loss)
available to common stockholders of Live Nation—basic
|
$
155,240
|
|
$
(194,714)
|
|
$
69,344
|
|
$
(502,823)
|
Convertible debt
interest, net of tax
|
6,365
|
|
—
|
|
—
|
|
—
|
Net income (loss)
available to common stockholders of Live Nation—diluted
|
$
161,605
|
|
$
(194,714)
|
|
$
69,344
|
|
$
(502,823)
|
|
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
(loss)
|
$
179,421
|
|
$
(533,182)
|
Reconciling
items:
|
|
|
|
Depreciation
|
114,119
|
|
111,864
|
Amortization
|
102,277
|
|
100,457
|
Amortization of
non-recoupable ticketing contract advances
|
40,392
|
|
28,728
|
Amortization of debt
issuance costs and discounts
|
8,224
|
|
18,373
|
Stock-based
compensation expense
|
61,741
|
|
52,847
|
Unrealized changes in
fair value of contingent consideration
|
18,010
|
|
(8,040)
|
Equity in losses
(earnings) of nonconsolidated affiliates, net of
distributions
|
10,112
|
|
10,002
|
Provision for
uncollectible accounts receivable
|
25,702
|
|
(16,563)
|
Gain on sale of
investments in nonconsolidated affiliates
|
(448)
|
|
(52,947)
|
Other, net
|
10,033
|
|
9,847
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
Increase in accounts
receivable
|
(440,290)
|
|
(143,343)
|
Increase in prepaid
expenses and other assets
|
(607,939)
|
|
(102,554)
|
Increase in accounts
payable, accrued expenses and other liabilities
|
972,906
|
|
518,810
|
Increase in deferred
revenue
|
1,053,178
|
|
1,175,690
|
Net cash provided by
operating activities
|
1,547,438
|
|
1,169,989
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Advances of notes
receivable
|
(30,558)
|
|
(12,830)
|
Collections of notes
receivable
|
11,074
|
|
10,618
|
Investments made in
nonconsolidated affiliates
|
(46,699)
|
|
(33,729)
|
Purchases of property,
plant and equipment
|
(130,278)
|
|
(58,066)
|
Cash paid for
acquisitions, net of cash acquired
|
(39,854)
|
|
(7,627)
|
Purchases of intangible
assets
|
(6,129)
|
|
(11,191)
|
Proceeds from sale of
investments in nonconsolidated affiliates
|
1,204
|
|
61,618
|
Other, net
|
(3,496)
|
|
912
|
Net cash used in
investing activities
|
(244,736)
|
|
(50,295)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Proceeds from long-term
debt, net of debt issuance costs
|
4,009
|
|
511,068
|
Payments on long-term
debt
|
(22,638)
|
|
(85,125)
|
Contributions from
noncontrolling interests
|
13,448
|
|
15,288
|
Distributions to
noncontrolling interests
|
(66,114)
|
|
(14,542)
|
Purchases and sales of
noncontrolling interests, net
|
(27,138)
|
|
(3,273)
|
Proceeds from exercise
of stock options
|
26,051
|
|
28,083
|
Taxes paid for net
share settlement of equity awards
|
(41,731)
|
|
(38,209)
|
Payments for deferred
and contingent consideration
|
(22,508)
|
|
(11,926)
|
Other, net
|
(1,014)
|
|
105
|
Net cash provided by
(used in) financing activities
|
(137,635)
|
|
401,469
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(186,703)
|
|
(19,965)
|
Net increase in cash,
cash equivalents, and restricted cash
|
978,364
|
|
1,501,198
|
Cash, cash equivalents
and restricted cash at beginning of period
|
4,887,792
|
|
2,546,439
|
Cash, cash equivalents
and restricted cash at end of period
|
$
5,866,156
|
|
$
4,047,637
|
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SOURCE Live Nation Entertainment