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Live Nation Entertainment Reports Fourth Quarter And Full Year 2016 Results

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 (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 17th, 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 17th, 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. (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
Reported


Q4 2015
Reported


Growth


Q4 2016
Constant
Currency


Growth at
Constant
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
2016
Reported


12 Months
2015
Reported


Growth


12 Months
2016

Constant
Currency


Growth at
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
2016


12 Months
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
operating
income
(loss)
constant
currency


Foreign exchange impact


Adjusted operating income (loss) reported


Non-cash and stock-based compensation expense


Loss (gain)
on disposal
of operating
assets


 

Depreciation and

amortization


Acquisition
expenses


Operating income (loss)


















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