LIVE NATION ENTERTAINMENT, INC. LOS ANGELES, Feb. 23, 2017 /PRNewswire/ --
Full Year 2016 - A Record Year for Live Nation
-- Revenue Up 15% to $8.4 Billion
-- Operating Income Up 48% to $195 Million
-- Free Cash Flow Up 5% to $352 Million
-- AOI Up 12% to $646 Million at Constant Currency
-- Live Nation Concerts Attendance of 71 Million, Up 12%
-- Sponsorship & Advertising Revenue Up 13%
-- Ticketmaster Fee-Bearing GTV Up 16% at Constant Currency
-- Secondary GTV Up 26% at Constant Currency
Live Nation Entertainment (NYSE: LYV) today released financial results for the three and twelve months ended December 31, 2016.
Live Nation delivered its sixth consecutive year of record results across revenue, adjusted operating income, or AOI, and free cash flow, and also delivered operating income growth in 2016. For the year, revenue was up 15%, operating income was up 48%, and free cash flow was up 5%, all as reported, and AOI was up 12% at constant currency. Our core divisions - concerts, ticketing and advertising - each delivered their strongest operating income and AOI results in the history of the company.
We continue to see the tremendous power of live events, with strong global consumer demand. Live is a truly unique entertainment form - it cannot be duplicated. It is elevated, not threatened, by technology and is borderless. Fans around the world can now discover, follow, share and embrace artists, creating greater demand for live shows. We believe the live business will continue to have strong growth for years to come as fans globally drive demand, artists are motivated to tour, and technology drives conversion.
Concerts Market Share Growth Accelerated in 2016
Live Nation continued to grow its global market share, adding over 7 million fans globally in 2016 for a total of over 71 million fans, driving revenue up 18%, operating income up 88%, and more than doubling concerts AOI. We built on our global leadership position in every part of our business, with double-digit fan growth in both North America and internationally, and across stadiums, amphitheaters, festivals, theaters and clubs.
We continued expanding our global footprint in 2016 as we added promoting offices in Germany, South Africa, and Israel, taking us to 40 countries worldwide. Across all our markets, we invested $4.4 billion to put on 26 thousand shows, with Live Nation now by far the largest financial supporter of artists in music.
Fans more than ever find the live experience, from club shows to arenas to festivals, a top entertainment choice and the best way to celebrate their favorite artists and share the experience with other fans. This, combined with an ongoing shift of consumer spending toward experiences, is helping drive a structural increase in demand for concerts globally. And in addition to fan growth, with this demand we are also seeing an increasing willingness by fans to spend more for tickets to the show and once they are there.
Average ticket prices for our shows increased by 5% in 2016, with high single- to double-digit growth at amphitheaters, arenas and stadiums. These increases were driven largely by higher pricing for the best tickets, as artists more effectively captured the true value from their shows.
Once at the show, average per fan spending grew as well. At our amphitheaters, spending grew by 9% to over $22 as we added more high-end products, improved the quality of our food and beverage offering and increased our points of sale.
Our growth is continuing into 2017, a further sign of the tremendous fan demand for our concerts and the success of our global growth strategy. Ticket sales are up double digits year-on-year through February 17(th), driven by sales for arena and stadium shows, and we are confident we will again see strong growth in fan demand across our business this year.
Advertising Continued Strong Growth in 2016
We grew our high-margin sponsorship & advertising revenue by 13%, operating income by 4%, both as reported, and AOI by 10% at constant currency in 2016, with our 71 million onsite fans providing a unique advertising platform for our sponsors, which we then extend through online advertising.
In 2016, our top strategic sponsors were a key driver of our growth as our 50 plus sponsors that spend over $1 million per year with us collectively spent $245 million to reach our fans, up 20% from last year.
Sponsorship at our festivals, connecting brands with those onsite millennial fans, continued to grow as we increased festival sponsorship contribution margin by 18% at constant currency and festival sponsorship contribution margin per fan by 12% at like-for-like festivals for the year.
At the same time, we continue to amplify our onsite advertising with our online reach. In 2016, we generated over 4 billion views across Live Nation sites and platform partners including Snapchat, Facebook and YouTube, providing our brand partners with further scale and reach.
We expect continued advertising growth at historical levels in 2017, with over 70% of our budgeted advertising revenue for the year already contracted, and pacing double digits ahead of last year at this time.
Ticketmaster Extends Global Leadership in Ticketing
In 2016, Ticketmaster continued growing its global leadership in ticketing, with fee-bearing gross transaction value, or GTV, up 16% and overall GTV up 11% to $28 billion at constant currency while delivering 480 million tickets to fans in 28 countries. This drove our 11% increase in ticketing revenue, 10% increase in operating income, both as reported, and 6% growth in AOI at constant currency.
Our secondary ticketing GTV growth of 26% in 2016, at constant currency, was driven by the premise that we should safely and transparently provide all options to fans at Ticketmaster, which has been embraced by ticket buyers. Overall, the Ticketmaster platform continues to demonstrate its effectiveness in selling tickets to fans, with 6 of the top 10 sales months ever occurring in 2016, and conversion rates up across both online and mobile platforms.
Our recent investments in Ticketmaster's enterprise platform and open API now allow clients to sell tickets on partner sites, driving the sale of over 10 million tickets in 2016. This has further deepened our relationship with teams and artists who are looking for enhanced reach with sites such as Spotify, Bandsintown, Facebook, Groupon and Costco, and more in progress.
With the combination of a stronger than ever ticketing destination at Ticketmaster and increasingly broad distribution, Ticketmaster is better positioned than ever to continue growing its global leadership position in ticketing. This success is continuing into 2017, as ticket sales are up 9% through February 17(th), positioning us for continued growth.
2017 Growth Drivers
As I have noted, the key leading indicators for each of our businesses are up year-on-year into February, pointing to continued strong growth in 2017. We plan on holding more concerts for more fans in more countries than ever before. We expect to sell more advertising, both onsite and online. And through continued product innovation and expanded distribution at Ticketmaster, we plan on selling more tickets and driving increased conversion.
Our success in 2016 reaffirms that Live Nation has created an unparalleled live platform, bringing 550 million fans in 40 countries to those unrivaled 2-hour events each year. The live business continues to have a strong growth opportunity with artists touring as their primary source of income and using concerts as the best way to engage and connect with their fans.
For Live Nation, we believe this sets us up well as our scale and breadth continue to grow and we drive increased value with our business model of higher profits per show, more advertising and increased ticket sales. All of this creates tremendous runway for Live Nation to continue delivering the level of growth we have demonstrated over the last several years.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
The company will webcast a teleconference today at 5:00 p.m. Eastern Time to discuss its financial performance. Interested parties should visit the "Events & Webcasts" 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 available under the Reports section at the same link. A replay of the webcast will also be available on the Live Nation website.
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, Live Nation Media & Sponsorship and Artist Nation Management. For additional information, visit investors.livenationentertainment.com.
FINANCIAL HIGHLIGHTS - 4th QUARTER
(unaudited; $ in millions)
Q4 2016 Q4 2015 Growth Q4 2016 Growth at
Reported Reported Constant Constant
Currency Currency
-------- --------
Revenue
Concerts $1,098.1 $1,081.5 2% $1,118.0 3%
Sponsorship &
Advertising 88.7 74.0 20% 90.3 22%
Ticketing 522.4 477.6 9% 531.8 11%
Artist Nation 109.1 131.7 (17%) 110.5 (16%)
Other & Eliminations (20.7) (28.0) 26% (20.7) 26%
----- ----- --- ----- ---
$1,797.6 $1,736.8 4% $1,829.9 5%
======== ======== === ======== ===
Operating Income
(Loss)
Concerts $(68.2) $(101.6) 33% $(69.8) 31%
Sponsorship &
Advertising 48.2 44.8 8% 49.2 10%
Ticketing 39.1 38.4 2% 38.1 (1%)
Artist Nation (9.4) 6.2 * (9.9) *
Other & Eliminations (5.5) 0.3 * (5.5) *
Corporate (41.4) (28.6) (45%) (41.4) (45%)
----- -----
$(37.2) $(40.5) 8% $(39.3) 3%
====== ====== === ====== ===
Adjusted Operating
Income (Loss)
Concerts (27.5) (49.9) 45% (27.4) 45%
Sponsorship &
Advertising 52.9 48.4 9% 53.9 11%
Ticketing 94.0 97.8 (4%) 94.2 (4%)
Artist Nation 4.3 28.3 (85%) 4.3 (85%)
Other & Eliminations (5.1) (0.4) * (5.1) *
Corporate (35.7) (23.1) (55%) (35.7) (55%)
----- ----- -----
$82.9 $101.1 (18%) $84.2 (17%)
===== ====== ==== ===== ====
* percentages are not meaningful
FINANCIAL HIGHLIGHTS - 12 MONTHS
(unaudited; $ in millions)
12 Months 12 Months Growth 12 Months Growth at
2016 2015 2016 Constant
Reported Reported Currency
Constant
Currency
--------
Revenue
Concerts $5,874.1 $4,965.0 18% $5,961.9 20%
Sponsorship &
Advertising 377.6 333.7 13% 384.4 15%
Ticketing 1,827.9 1,639.6 11% 1,851.5 13%
Artist Nation 421.7 434.2 (3%) 426.6 (2%)
Other & Eliminations (146.4) (126.8) (16%) (146.4) (16%)
------ ------ ---- ------ ----
$8,354.9 $7,245.7 15% $8,478.0 17%
======== ======== === ======== ===
Operating Income
(Loss)
Concerts $(12.1) $(105.3) 88% $(16.2) 85%
Sponsorship &
Advertising 228.1 218.4 4% 233.6 7%
Ticketing 174.5 158.2 10% 171.9 9%
Artist Nation (51.2) (28.2) (82%) (52.0) (84%)
Other & Eliminations (14.7) (0.1) * (14.7) *
Corporate (129.7) (111.6) (16%) (129.7) (16%)
------ ------
$194.9 $131.4 48% $192.9 47%
====== ====== === ====== ===
Adjusted Operating
Income (Loss)
Concerts 138.9 61.5 126% 138.4 125%
Sponsorship &
Advertising 247.6 229.9 8% 253.0 10%
Ticketing 365.3 346.5 5% 365.9 6%
Artist Nation 10.3 33.2 (69%) 10.5 (68%)
Other & Eliminations (14.0) (2.2) * (14.0) *
Corporate (108.0) (90.9) (19%) (108.0) (19%)
------ ----- ------
$640.1 $578.0 11% $645.8 12%
====== ====== === ====== ===
* percentages are not meaningful
As of December 31, 2016, total
cash and cash equivalents were
$1.5 billion, which includes $591
million in ticketing client cash
and $411 million in free cash.
Event-related deferred revenue
was up 30% to $722 million as of
December 31, 2016, compared to
$553 million as of the same date
in 2015.
KEY OPERATING METRICS
Year Ended December 31,
2016 2015 2014
---- ---- ----
(in thousands except estimated events)
Concerts (1)
Estimated events:
North America 17,554 16,846 15,941
International 8,708 8,665 6,853
----- ----- -----
Total estimated events 26,262 25,511 22,794
------ ------ ------
Estimated fans:
North America 48,813 43,739 40,069
International 22,330 19,703 18,486
------ ------ ------
Total estimated fans 71,143 63,442 58,555
------ ------ ------
Ticketing (2)
Number of fee-bearing
tickets sold 185,543 173,871 163,184
Number of non-fee-
bearing tickets sold 298,157 298,549 300,030
Total tickets sold 483,700 472,420 463,214
------- ------- -------
(1) Events generally represent a single
performance by an artist. Fans
generally represent the number of
people who attended an event.
Festivals are counted as one event in
the quarter in which the festival
begins, but number of fans is based on
the days the fans were present at the
festival and thus can be reported in
multiple quarters. Events and fan
attendance metrics are estimated each
quarter.
(2) The number of fee-bearing tickets sold
includes primary and secondary tickets
that are sold using our Ticketmaster
systems or that we issue through
affiliates. This metric includes
primary tickets sold during the year
regardless of event timing, except for
our own events where our concert
promoters control ticketing which are
reported as the events occur. The non-
fee-bearing tickets sold includes
primary tickets sold using our
Ticketmaster systems, through season
seat packages and our venue clients'
box offices, along with tickets sold on
our 'do it yourself' platform.
Reconciliation of Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (Unaudited)
Reconciliation of Adjusted Operating Income (Loss) to Free Cash Flow
($ in millions) Q4 2016 Q4 2015
------- -------
Adjusted operating income $82.9 $101.1
Less: Cash interest expense - net (28.7) (24.8)
Cash taxes (3.0) (14.8)
Maintenance capital expenditures (33.7) (34.6)
Distributions to noncontrolling
interests (29.8) (16.8)
Distributions from (contributions
to) investments in nonconsolidated
affiliates (9.0) 0.0
---- ---
Free cash flow $(21.3) $10.1
Revenue generating capital
expenditures (32.5) (15.6)
----- -----
Net $(53.8) $(5.5)
--- ------ -----
($ in millions) 12 Months 12 Months
2016 2015
---- ----
Adjusted operating income $640.1 $578.1
Less: Cash interest expense - net (96.7) (92.6)
Cash taxes (30.3) (44.3)
Maintenance capital expenditures (92.1) (79.0)
Distributions to noncontrolling
interests (55.1) (30.6)
Distributions from (contributions
to) investments in nonconsolidated
affiliates (14.0) 3.3
----- ---
Free cash flow $351.9 $334.9
Revenue generating capital
expenditures (94.7) (65.7)
----- -----
Net $257.2 $269.2
--- ------ ------
Reconciliation of Cash and Cash Equivalents to Free Cash
($ in millions) December 31,
2016
----
Cash and cash equivalents $1,526.6
Client cash (591.0)
Deferred revenue - event-related (721.6)
Accrued artist fees (35.1)
Collections on behalf of others (31.2)
Prepaids related to artist
settlements/events 263.4
-----
Free cash $411.1
--------- ------
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 growth prospects of live events and the related strength of global consumer demand, artist touring frequencies and onsite spending by fans, both in 2017 and beyond; expected advertising growth at a historic level in 2017; Ticketmaster's global ticketing leadership position and growth potential; the company's anticipated growth in 2017 at levels consistent with recent years, and related plans to hold more concerts, sell more advertising and sell more tickets with increased conversion in 2017; and the expected growth in the company's scale and breadth as it executes on its business model. 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 the company defines as operating income (loss) before acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation), depreciation and amortization (including goodwill impairment), loss (gain) on disposal of operating assets and certain stock-based compensation expense. The company uses AOI to evaluate the performance of its operating segments. The company believes that information about AOI assists investors by allowing them to evaluate changes in the operating results of the portfolio of the businesses separate from non-operational factors that affect net income, 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 the company's 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. The company calculates 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. The company presents 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 is a non-GAAP financial measure that the company defines as AOI less maintenance capital expenditures, less net cash interest expense, less cash taxes, less net distributions to noncontrolling interest partners, plus distributions from investments in nonconsolidated affiliates net of contributions. The company uses free cash flow, among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than maintenance capital expenditures. The company believes that information about free cash flow provides investors with an important perspective on the cash available to service debt and make acquisitions. Free cash flow is not calculated or presented in accordance with GAAP. A limitation of the use of free cash flow as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of the company's ability to fund its cash needs. Accordingly, free cash flow should be considered in addition to, and not as a substitute for, operating income (loss) and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash flow as presented herein may not be comparable to similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that the company defines 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. The company uses free cash as a proxy for how much cash it has 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 Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (Unaudited)
Reconciliation of Adjusted Operating Income (Loss) to Operating Income (Loss)
----------------------------------------------------------------------------
($ in millions) Adjusted Foreign Adjusted Non-cash and Operating income
exchange operating stock-based (loss)
impact income (loss) compensation
reported expense Loss (gain) Acquisition
operating on disposal expenses
income of operating Depreciation
and
(loss) assets
constant amortization
currency
Three Months Ended December 31, 2016
Concerts $(27.4) $(0.1) $(27.5) $1.2 $0.1 $36.5 $2.9 $(68.2)
Sponsorship & Advertising 53.9 (1.0) 52.9 0.3 - 4.4 - 48.2
Ticketing 94.2 (0.2) 94.0 1.3 - 53.2 0.4 39.1
Artist Nation 4.3 - 4.3 0.7 - 12.2 0.8 (9.4)
Other and Eliminations (5.1) - (5.1) 0.2 - 0.2 - (5.5)
Corporate (35.7) - (35.7) 3.8 - 1.9 - (41.4)
Total Live Nation $84.2 $(1.3) $82.9 $7.5 $0.1 $108.4 $4.1 $(37.2)
===== ===== ===== ==== ==== ====== ==== ======
Three Months Ended December 31, 2015
Concerts $(49.9) $ - $(49.9) $1.6 $ - $41.5 $8.6 $(101.6)
Sponsorship & Advertising 48.4 - 48.4 0.3 - 3.3 - 44.8
Ticketing 97.8 - 97.8 0.7 - 58.7 - 38.4
Artist Nation 28.3 - 28.3 1.2 - 21.0 (0.1) 6.2
Other and Eliminations (0.4) - (0.4) - - (0.6) (0.1) 0.3
Corporate (23.1) - (23.1) 4.0 0.3 1.2 - (28.6)
Total Live Nation $101.1 $ - $101.1 $7.8 $0.3 $125.1 $8.4 $(40.5)
====== === === ====== ==== ==== ====== ==== ======
Twelve Months Ended December 31, 2016
Concerts $138.4 $0.5 $138.9 $6.7 $(0.1) $137.6 $6.8 $(12.1)
Sponsorship & Advertising 253.0 (5.4) 247.6 1.3 - 18.2 - 228.1
Ticketing 365.9 (0.6) 365.3 3.7 0.1 185.9 1.1 174.5
Artist Nation 10.5 (0.2) 10.3 3.8 - 57.1 0.6 (51.2)
Other and Eliminations (14.0) - (14.0) 0.2 - 0.4 0.1 (14.7)
Corporate (108.0) - (108.0) 17.0 0.1 4.5 0.1 (129.7)
Total Live Nation $645.8 $(5.7) $640.1 $32.7 $0.1 $403.7 $8.7 $194.9
====== ===== ====== ===== ==== ====== ==== ======
Twelve Months Ended December 31, 2015
Concerts $61.5 $ - $61.5 $7.0 $0.4 $146.8 $12.6 $(105.3)
Sponsorship & Advertising 229.9 - 229.9 1.6 - 9.9 - 218.4
Ticketing 346.5 - 346.5 2.9 - 184.1 1.3 158.2
Artist Nation 33.2 - 33.2 4.9 0.2 55.0 1.3 (28.2)
Other and Eliminations (2.2) - (2.2) - - (2.1) - (0.1)
Corporate (90.9) - (90.9) 17.0 0.2 3.5 - (111.6)
Total Live Nation $578.0 $ - $578.0 $33.4 $0.8 $397.2 $15.2 $131.4
====== === === ====== ===== ==== ====== ===== ======
LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
2016 2015
---- ----
(in thousands, except share data)
ASSETS
Current assets
Cash and cash equivalents $1,526,591 $1,303,125
Accounts receivable, less allowance of
$29,634 and $17,168 in 2016 and 2015,
respectively 568,936 452,600
Prepaid expenses 528,250 496,226
Other current assets 49,774 36,364
------ ------
Total current assets 2,673,551 2,288,315
Property, plant and equipment
Land, buildings and improvements 838,545 840,032
Computer equipment and capitalized
software 524,571 505,233
Furniture and other equipment 256,765 233,271
Construction in progress 125,430 47,684
------- ------
1,745,311 1,626,220
Less accumulated depreciation 993,775 894,938
------- -------
751,536 731,282
Intangible assets
Definite-lived intangible assets, net 812,031 777,763
Indefinite-lived intangible assets 368,766 369,317
Goodwill 1,747,088 1,604,315
Other long-term assets 411,294 385,249
------- -------
Total assets $6,764,266 $6,156,241
========== ==========
LIABILITIES AND EQUITY
Current liabilities
Accounts payable, client accounts $726,475 $662,941
Accounts payable 55,030 58,607
Accrued expenses 781,494 686,664
Deferred revenue 804,973 618,640
Current portion of long-term debt, net 53,317 42,352
Other current liabilities 39,055 32,002
------ ------
Total current liabilities 2,460,344 2,101,206
Long-term debt, net 2,259,736 2,002,662
Long-term deferred income taxes 197,811 199,472
Other long-term liabilities 149,791 142,267
Commitments and contingent liabilities
Redeemable noncontrolling interests 347,068 263,715
Stockholders' equity
Preferred stock-Series A Junior
Participating, $.01 par value; 20,000,000
shares authorized; no shares issued and
outstanding - -
Preferred stock, $.01 par value;
30,000,000 shares authorized; no shares
issued and outstanding - -
Common stock, $.01 par value; 450,000,000
shares authorized; 204,475,849 and
202,891,231 shares issued and 204,067,825
and 202,483,207 shares outstanding in
2016 and 2015, respectively 2,034 2,020
Additional paid-in capital 2,381,011 2,428,566
Accumulated deficit (1,073,457) (1,075,111)
Cost of shares held in treasury (408,024
shares) (6,865) (6,865)
Accumulated other comprehensive loss (176,707) (111,657)
-------- --------
Total Live Nation stockholders' equity 1,126,016 1,236,953
Noncontrolling interests 223,500 209,966
------- -------
Total equity 1,349,516 1,446,919
--------- ---------
Total liabilities and equity $6,764,266 $6,156,241
========== ==========
LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
2016 2015 2014
---- ---- ----
(in thousands except share and per share data)
Revenue $8,354,934 $7,245,731 $6,866,964
Operating expenses:
Direct operating expenses 6,082,708 5,196,473 4,919,969
Selling, general and administrative
expenses 1,548,450 1,411,855 1,337,316
Depreciation and amortization 403,651 397,241 368,143
Goodwill impairment - - 134,961
Loss (gain) on disposal of operating
assets 124 845 (4,494)
Corporate expenses 125,061 107,945 103,905
------- -------
Operating income 194,940 131,372 7,164
Interest expense 106,506 102,881 106,312
Loss on extinguishment of debt 14,049 - 188
Interest income (2,573) (3,528) (3,606)
Equity in earnings of nonconsolidated
affiliates 17,802 (1,502) (4,166)
Other expense, net 10,830 27,168 8,256
------ ------ -----
Income (loss) before income taxes 48,326 6,353 (99,820)
Income tax expense 28,029 22,122 4,630
------ ------ -----
Net income (loss) 20,297 (15,769) (104,450)
Net income (loss) attributable to
noncontrolling interests 17,355 16,739 (13,643)
------ ------ -------
Net income (loss) attributable to
common stockholders of Live Nation $2,942 $(32,508) $(90,807)
====== ======== ========
Basic and diluted net loss per common
share available to common
stockholders of Live Nation $(0.23) $(0.33) $(0.49)
====== ====== ======
Weighted average common shares
outstanding:
Basic and diluted 202,076,243 200,973,485 198,874,019
Reconciliation to net income (loss)
available to common stockholders of
Live Nation:
Net income (loss) attributable to
common stockholders of Live Nation $2,942 $(32,508) $(90,807)
Accretion of redeemable noncontrolling
interests (49,952) (33,179) (5,660)
------- ------- ------
Basic and diluted net loss available
to common stockholders of Live Nation $(47,010) $(65,687) $(96,467)
======== ======== ========
LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2016 2015 2014
---- ---- ----
(as adjusted)
------------
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $20,297 $(15,769) $(104,450)
Reconciling items:
Depreciation 139,288 134,148 127,168
Amortization 264,363 263,093 240,975
Goodwill impairment - - 134,961
Deferred income tax benefit (7,891) (9,611) (17,664)
Amortization of debt issuance
costs, discounts and premium,
net 12,594 10,885 16,038
Provision for uncollectible
accounts receivable and
advances 21,681 19,505 6,540
Loss on extinguishment of debt 14,049 - 188
Non-cash compensation expense 32,723 33,361 39,029
Equity in losses (earnings) of
nonconsolidated affiliates, net
of distributions 27,498 9,436 3,698
Gain on consolidation of
nonconsolidated affiliates (501) (8,685) (16,356)
Other, net (8,801) 5,170 (11,313)
Changes in operating assets and liabilities, net of
effects of acquisitions and dispositions:
Increase in accounts receivable (146,128) (67,235) (14,356)
Increase in prepaid expenses and
other assets (129,748) (122,872) (231,560)
Increase in accounts payable,
accrued expenses and other
liabilities 193,775 3,480 45,538
Increase in deferred revenue 164,291 52,948 73,730
------- ------ ------
Net cash provided by operating
activities 597,490 307,854 292,166
------- ------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Advances of notes receivable (17,227) (28,288) (34,395)
Investments made in
nonconsolidated affiliates (28,922) (21,998) (19,600)
Purchases of property, plant and
equipment (173,827) (142,491) (139,587)
Cash paid for acquisitions, net
of cash acquired (211,624) (89,780) (210,243)
Purchases of intangible assets (6,234) (12,267) (3,350)
Other, net 11,357 3,839 15,017
------ ----- ------
Net cash used in investing
activities (426,477) (290,985) (392,158)
-------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt,
net of debt issuance costs 844,451 57,276 515,385
Payments on long-term debt
including extinguishment costs (606,831) (63,569) (253,773)
Distributions to noncontrolling
interests (55,131) (30,645) (32,513)
Purchases and sales of
noncontrolling interests, net (69,106) (9,752) (4,391)
Proceeds from exercise of stock
options 20,299 16,280 21,797
Payments for deferred and
contingent consideration (20,451) (6,770) (5,722)
Other, net (14,019) (6,941) (14,812)
Net cash provided by (used in)
financing activities 99,212 (44,121) 225,971
------ ------- -------
Effect of exchange rate changes
on cash and cash equivalents (46,759) (51,652) (43,134)
------- ------- -------
Net increase (decrease) in cash
and cash equivalents 223,466 (78,904) 82,845
Cash and cash equivalents at
beginning of period 1,303,125 1,382,029 1,299,184
--------- --------- ---------
Cash and cash equivalents at end
of period $1,526,591 $1,303,125 $1,382,029
========== ========== ==========
SUPPLEMENTAL DISCLOSURE
Cash paid during the year for:
Interest, net of interest income $96,678 $92,620 $89,343
Income taxes, net of refunds $30,312 $44,287 $41,471
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/live-nation-entertainment-reports-fourth-quarter-and-full-year-2016-results-300412876.html
SOURCE Live Nation Entertainment
