Live Nation Touts More Record-Breaking Revenue in Q2 Earnings Live Nation Touts More Record-Breaking Revenue in Q2 Earnings
Business is booming for Live Nation Entertainment, which reported another record quarter on Thursday with its Q2 2022 earnings report. The entertainment giant reported... Live Nation Touts More Record-Breaking Revenue in Q2 Earnings

Business is booming for Live Nation Entertainment, which reported another record quarter on Thursday with its Q2 2022 earnings report. The entertainment giant reported operating income to be up by 86 percent compared to the same quarter in 2019, reaching $319 million as live events continued to roll on in the reopening from the long COVID slowdown.

A key to it all, once again, was the continued inflation of ticket prices, which are up by double-digits through June, largely due to programs like Ticketmaster’s “platinum” and “dynamic” pricing engines, which have caused the company some significant controversy of late, even as they serve as an engine for its financial dominance.

“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,” reads the earnings report posted at the close of the markets on Thursday, August 4. “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.”

That continued “shift” towards pricing every ticket in the building to secondary market prices has been met with stiff resistance from fans, who have complained loudly over the pricing schemes put in place for popular tours in recent months, most notably the 2023 U.S. dates for Bruce Springsteen and the E Street Band. Complaints of ticket prices reaching as high as $5,000 for mid-tier floor seats at some venues using the “dynamic” and “platinum” pricing systems, despite the implementation of the “verified fan” system that purports to keep those interested in buying for the sole purpose of reselling tickets have generated headlines across the globe, and even spurred the New Jersey Assembly’s Speaker to announce plans for hearings on the ticket pricing systems in place that consumers are so critical of.

Live Nation’s earnings obviously aren’t solely built on the back of inflated ticket prices, however. The pent-up demand for live events has been enormously high, and as the dominant provider of both concert promotion and festivals across the globe and tickets for events of every type, Live Nation has benefitted enormously from that. In its report, it points out that fee-bearing ticket volume was up 48 percent compared to Q2 2019, and GTV was up 76 percent, with April, May and June accounting for three of the top five months for GTV in company history.

“We are continuing to see the benefits of our technology investments at Ticketmaster, including our global leadership in digital ticketing,” the release says. “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.”

The full earnings release is available below:

 

Live Nation Entertainment Reports Second Quarter 2022 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

 

Last Updated on August 4, 2022 by Dave Clark

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