Live Nation Entertainment Reports Fourth Quarter And Full Year 2012 Financial Results - Full Year Revenue Improves on Higher Ticket Sales -

LOS ANGELES, Feb. 26, 2013 /PRNewswire-FirstCall/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three and twelve months ended December 31, 2012 today. 

"During 2012, the company increased revenue by 8% and grew all our business segments while continuing to invest in our long-term ticketing platform," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment.  "Our ongoing growth in operating profitability was driven by the continued success of our core business of bringing more fans to more events, with ticket sales growth of 4% at our concerts and 5% for Ticketmaster."

"Looking forward to 2013, I am confident that we will continue the successful growth of the core business.  As of the end of 2012, we have sold 9 million concert tickets for 2013 shows, a 58% increase from a year ago.  Our ticketing replatforming project is in its last full year of investment and will deliver major product innovations for clients and fans throughout the year, highlighted by our integrated inventory product for fans to be rolled out mid-year.  I expect another strong year for our Sponsorship & Advertising business as we accelerate our online advertising and continue leveraging our festival base. "

The company will webcast a teleconference today at 5:00 p.m. Eastern Time to discuss its financial performance.  Interested parties should visit the Investor Relations section of the company's website at www.livenation.com/investors to register for the webcast.  Supplemental statistical and financial information provided on the call, if any, will be available under the same link.  A replay of the webcast will also be available on the Live Nation website.

 

FINANCIAL HIGHLIGHTS – 4th QUARTER and TWELVE MONTHS

($ in millions)



Q4 2012

Q4 2011

Growth


12 months

2012

12 months
2011

Growth

Revenue








Concerts

$    915.8

$    694.4

31.9%


$    3,870.4

$  3,506.2

10.4%

Ticketing

372.5

352.6

5.6%


1,374.0

1,319.3

4.1%

Artist Nation

101.3

99.2

2.1%


399.9

393.1

1.7%

Sponsorship & Advertising

54.7

48.3

13.3%


247.9

230.8

7.4%

Other & Eliminations

(7.1)

(8.8)

19.3%


(73.2)

(65.4)

(11.9%)


$ 1,437.2

$ 1,185.7

21.2%


$   5,819.0

$   5,384.0

8.1%









Adjusted Operating Income (Loss)








Concerts

$       (29.0)

$      (31.9)

9.1%


$        31.4

$        30.3

3.6%

Ticketing

68.6

65.4

4.9%


294.6

279.0

5.6%

Artist Nation (1)

5.1

12.2

(58.2%)


38.1

47.2

(19.3%)

Sponsorship & Advertising

37.8

36.5

3.6%


175.6

165.1

6.4%

Other & Eliminations

(0.5)

2.6

**


(1.6)

2.2

     **

Corporate

(19.5)

(34.1)

42.8%


(79.0)

(85.9)

8.0%


$     62.5

$    50.7

23.3%


$      459.1

$      437.9

4.8%









Operating Income (Loss)








Concerts

$     (77.1)

$     (80.7)

4.5%


$   (120.1)

$    (105.0)

(14.4%)

Ticketing

22.4

16.0

40.0%


122.8

113.3

8.4%

Artist Nation (1)

(75.9)

4.5

**


(80.6)

(24.9)

**

Sponsorship & Advertising

36.8

35.9

2.5%


173.8

163.8

6.1%

Other & Eliminations

(0.1)

2.8

**


(0.1)

2.5

**

Corporate

(32.4)

(45.2)

28.3%


(117.4)

(131.4)

10.7%


$    (126.3)

$   (66.7)

(89.4%)


$     (21.6)

$      18.3

**









 

** percentages are not meaningful




(1)

Artist Nation Adjusted Operating Income for the three and twelve months ended December 31, 2012 is impacted by incremental costs of $5.5 million related to Irving Azoff's departure in December 2012.  Artist Nation Operating Loss for the three and twelve months ended December 31, 2012 is further impacted by an impairment charge of $62.7 million related to certain client/vendor relationship intangibles in the management business based on current expectations related to future cash flows of this business. 

 

For the three months ended December 31, 2012, revenue was $1,437 million, up 21% compared to prior year revenue of $1,186 million. Revenue for the full year 2012 was $5,819 million, up 8% compared to prior year revenue of $5,384 million. On a constant currency basis, revenue for the full year 2012 was up 10%, excluding the $100 million impact of changes in foreign exchange rates.

As of December 31, 2012, total cash and cash equivalents were $1,001 million, which includes $442 million in ticketing client cash and $340 million in free cash. Event-related deferred revenue was $364 million as of December 31, 2012, compared to $229 million as of the same date in 2011. Free cash flow was $1 million for the fourth quarter of 2012 as compared to ($20) million in the fourth quarter of last year, and $276 million for the full year 2012 versus $203 million for 2011.

About Live Nation Entertainment:
Live Nation Entertainment is the world's leading live entertainment and ecommerce company, comprised of four market leaders: Ticketmaster.com, Live Nation Concerts, Artist Nation and Live Nation Network.  Ticketmaster.com is the global event ticketing leader and one of the world's top five ecommerce sites, with a database of over 119 million fans who visit our sites.  Live Nation Concerts produces 22,000 shows annually for more than 2,300 artists globally.  Artist Nation is the world's top artist management company, representing over 200 artists.  These businesses power Live Nation Network, the leading provider of entertainment marketing solutions, enabling nearly 800 advertisers to tap into the 250 million consumers Live Nation delivers annually through its live event and digital platforms.  For additional information, visit www.livenation.com/investors.

Follow us @twitter.com/LiveNationInc


 

 

LIVE NATION ENTERTAINMENT, INC.


KEY OPERATING METRICS







 3 Months Ended Dec 31, 


 12 Months Ended Dec 31, 






2012


2011


2012


2011













Concerts (1)










Estimated Events:











North America


3,816


4,199


14,962


15,531



International


2,464


2,472


7,000


6,720




Total estimated events


6,280


6,671


21,962


22,251


Estimated Attendance (rounded):











North America


6,801,000


5,963,000


32,007,000


31,060,000



International


5,073,000


5,293,000


16,750,000


15,742,000




Total estimated attendance


11,874,000


11,256,000


48,757,000


46,802,000














Ancillary net revenue per attendee (2):











North America amphitheaters






$18.56


$18.11



International festivals (3)






$15.55


$16.62

Ticketing (4)(5)










Number of tickets sold (in thousands):











Concerts


20,540


18,543


75,372


71,632



Sports



5,511


6,290


28,760


27,055



Arts and theater


6,278


6,953


19,961


21,891



Family



4,693


4,477


15,970


14,248



Other (6)


2,449


2,154


7,669


6,541






39,471


38,417


147,732


141,367














Gross value of tickets sold (in thousands)


$2,642,802


$2,286,641


$9,146,254


$8,441,230













Sponsorship & Advertising










Sponsorship revenue (in thousands)


$36,634


$32,632


$191,773


$179,734


Online advertising revenue (in thousands)


$18,076


$15,706


$56,148


$51,057














(1)

Events generally represent a single performance by an artist.  Attendance generally represents the number of fans who were present at an event.  Festivals are counted as one event in the quarter in which the festival begins but attendance is split over the days of the festival and can be split between quarters.  Events and attendance metrics are estimated each quarter.



(2)

Amounts are reported as of the latest period shown.



(3)

On a constant currency basis, international festivals' ancillary net revenue per attendee is $17.04 for the 12 months ended December 31, 2012, an increase of 3% over 2011.



(4)

The number and gross value of tickets sold includes primary tickets only and excludes tickets sold for the 2012 Olympics.  These metrics include tickets sold during the period regardless of event timing except for our promoted concerts in our owned and/or operated buildings and in certain European territories where these tickets are recognized as the concerts occur. 



(5)

The total number of tickets sold for the years ended December 31, 2012 and 2011 do not include 108 million and 135 million, respectively, of tickets sold through our venue clients' box offices for which we do not receive a fee.



(6)

Other category includes tickets for comedy shows, facility tours, donations, lectures, seminars and cinemas.

 

 

LIVE NATION ENTERTAINMENT, INC.








CONSOLIDATED STATEMENTS OF OPERATIONS










 Year Ended December 31, 



2012


2011


2010



 (in thousands except share and per share data) 








Revenue


$     5,819,047


$     5,383,998


$       5,063,748

Operating expenses:







   Direct operating expenses


4,151,277


3,789,488


3,658,310

   Selling, general and administrative expenses


1,143,632


1,111,969


1,014,491

   Depreciation and amortization


429,557


343,018


321,666

   Loss (gain) on sale of operating assets


(514)


978


374

   Corporate expenses


113,364


112,157


110,252

   Acquisition transaction expenses


3,370


8,051


22,355

       Operating income (loss)


(21,639)


18,337


(63,700)








Interest expense


123,740


120,414


116,527

Loss (gain) on extinguishment of debt


(460)


-


21,315

Interest income


(4,170)


(4,215)


(3,771)

Equity in earnings of nonconsolidated affiliates


(9,921)


(7,742)


(4,928)

Other expense (income), net


1,333


6,507


(4,189)

Loss from continuing operations before income taxes


(132,161)


(96,627)


(188,654)

Income tax expense (benefit)


29,736


(26,224)


15,154

Loss from continuing operations


(161,897)


(70,403)


(203,808)

Loss from discontinued operations, net of tax


-


-


(4,228)

Net loss


(161,897)


(70,403)


(208,036)

Net income attributable to noncontrolling interests 


1,330


12,613


20,354

Net loss attributable to common stockholders of Live Nation Entertainment, Inc.


$   (163,227)


$ (83,016)


$ (228,390)








Basic and diluted net loss per common share attributable to common stockholders of Live Nation Entertainment, Inc. 







    Loss from continuing operations 


$          (0.87)


$            (0.46)


$               (1.36)

    Loss from discontinued operations


-


-


(0.03)

    Net loss attributable to common stockholders of  Live Nation Entertainment, Inc.


$        (0.87)


 

$          (0.46)


 

$              (1.39)















Weighted average common shares outstanding:







   Basic and diluted


186,955,748


182,388,070


164,410,167

 

 


 LIVE NATION ENTERTAINMENT, INC.


CONSOLIDATED BALANCE SHEETS






December 31,


2012


2011


(in thousands except share data)

ASSETS



Current assets




Cash and cash equivalents

$     1,001,055


$       844,253

Accounts receivable, less allowance of $19,794 in 2012 and $16,986 in 2011

415,790


389,346

Prepaid expenses

359,936


316,491

Other current assets

36,031


26,700

Total current assets

1,812,812


1,576,790

Property, plant and equipment




Land, buildings and improvements

852,175


851,812

Computer equipment and capitalized software

338,919


261,475

Furniture and other equipment

200,743


172,250

Construction in progress

56,822


60,652






1,448,659


1,346,189

Less accumulated depreciation

726,873


626,053






721,786


720,136

Intangible assets




Definite-lived intangible assets, net

724,463


873,712

Indefinite-lived intangible assets

377,463


377,160

Goodwill

1,357,827


1,257,644

Investments in nonconsolidated affiliates

46,160


55,796

Other long-term assets

250,295


216,106





Total assets

$    5,290,806


$   5,077,344





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Accounts payable, client accounts

$      557, 953


$      473,956

Accounts payable

102,718


87,627

Accrued expenses

626,723


579,566

Deferred revenue

402,002


273,536

Current portion of long-term debt

62,050


52,632

Other current liabilities

16,726


25,236





Total current liabilities

1,768,172


1,492,553





Long-term debt, net

1,677,955


1,652,629

Long-term deferred income taxes

199,596


186,298

Other long-term liabilities

94,409


120,693

Commitments and contingent liabilities








Redeemable noncontrolling interests

42,100


8,277





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; 190,853,380 and 189,536,279 shares issued and outstanding  in 2012 and 2011, respectively

1,877


1,868

Additional paid-in capital

2,272,882


2,243,587

Accumulated deficit

(908,418)


(745,191)

Cost of shares held in treasury (578,570 shares in 2011)


(2,787)

Accumulated other comprehensive loss

(10,923)


(36,374)





Total Live Nation Entertainment, Inc. stockholders' equity

1,355,418


1,461,103

Noncontrolling interests

153,156


155,791

Total stockholders' equity

1,508,574


1,616,894

Total liabilities and stockholders' equity

$    5,290,806


$    5,077,344