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

 

 

 

LIVE NATION ENTERTAINMENT, INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS



Year Ended December 31,


2012


2011


2010


(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES






Net loss

$ (161,897)


$ (70,403)


$   (208,036)

Reconciling items:






Depreciation

124,593


129,177


135,573

Amortization

304,964


213,841


186,093

Impairment of operational assets



13,373

Deferred income tax benefit

(10,957)


(45,603)


(25,021)

Amortization of debt issuance costs and discount/premium, net

16,696


13,059


11,437

Provision for uncollectible accounts receivable and advances

8,787


9,272


6,606

Non-cash (gain) loss on extinguishment of debt

(460)



8,272

Non-cash compensation expense

37,063


50,045


52,395

Unrealized changes in fair value of contingent consideration

(894)


(11,691)


3,171

Loss (gain) on sale of operating assets

(514)


978


4,602

Equity in earnings of nonconsolidated affiliates

(9,921)


(7,742)


(4,928)

Other, net

1,642


2,481


      Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:






Increase in accounts receivable

(20,319)


(79,807)


(4,581)

Decrease (increase) in prepaid expenses

(69,175)


73,314


(22,570)

Increase in other assets

(41,707)


(83,928)


(41,686)

Increase in accounts payable, accrued expenses and other liabilities

64,437


6,817


386

Increase (decrease) in deferred revenue

124,760


(64,105)


43,432







Net cash provided by operating activities

367,098


135,705


158,518







CASH FLOWS FROM INVESTING ACTIVITIES






Distributions from nonconsolidated affiliates

9,241


9,273


5,863

Investments made in nonconsolidated affiliates

(3,788)


(15,770)


(3,458)

Purchases of property, plant and equipment

(123,811)


(107,500)


(75,578)

Proceeds from disposal of operating assets, net of cash divested

8,293


7,391


35,756

Cash paid for acquisitions, net of cash acquired

(75,641)


(39,465)


491,531

Purchases of intangible assets

(14,562)


(2,591)


(1,790)

Decrease (increase) in other, net

(3,523)


(3,355)


663







Net cash provided by (used in) investing activities

(203,791)


(152,017)


452,987







CASH FLOWS FROM FINANCING ACTIVITIES






Proceeds from long-term debt, net of debt issuance costs

538,124


(669)


1,352,856

Payments on long-term debt

(525,060)


(31,338)


(1,233,020)

Redemption of preferred stock



(40,000)

Contributions from noncontrolling interests

825


711


429

Distributions to noncontrolling interests

(20,079)


(20,863)


(14,955)

Purchases and sales of noncontrolling interests, net

(4,259)


(47,610)


(6,670)

Proceeds from exercise of stock options

1,143


2,705


8,640

Proceeds from sale of common stock


76,492


Equity issuance costs



(357)

Payments for purchases of common stock



(1,567)

Payments for deferred and contingent consideration

(10,585)


(23,807)


(16,270)







Net cash provided by (used in) financing activities

(19,891)


(44,379)


49,086

Effect of exchange rate changes on cash and cash equivalents

13,386


12,186


(4,788)







Net increase (decrease) in cash and cash equivalents

156,802


(48,505)


655,803

Cash and cash equivalents at beginning of period

844,253


892,758


236,955







Cash and cash equivalents at end of period

$1,001,055


$ 844,253


$    892,758

























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 continued growth of the company's core business; anticipated product innovations resulting from the company's ticketing replatforming project; the anticipated performance of the company's Sponsorship & Advertising business; and expected improved performance by the company's Artist Nation segment.  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 the 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 below.

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 arrangements, merger bonuses, payments under the Azoff Trust note and acquisition-related severance), depreciation and amortization (including goodwill impairments), loss (gain) on sale of operating assets and non-cash and certain stock-based compensation expense (including expense associated with grants of certain stock-based awards which are classified as liabilities).  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.

Free Cash Flow is a non-GAAP financial measure that the company defines as Adjusted Operating Income (Loss) 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 to investments in nonconsolidated affiliates.  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 for cash collected on behalf of others for ticket sales, 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 finance venue and other 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.

Constant currency is a non-GAAP financial measure.  For the purpose of determining our constant currency results, we calculate the effect of changes in currency exchange rates 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.

 


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)

Non-cash and stock-based compensation expense

Loss (gain) on sale of operating assets

 

Depreciation and

amortization

Acquisition expenses

Operating income (loss)






Three months ended December 31, 2012









Concerts


$         (29.0)

$                1.4

$                   -

$              45.5

$               1.2

$             (77.1)

Ticketing


68.6

1.6

-

44.6

-

22.4

Artist Nation


5.1

0.8

-

79.4

0.8

(75.9)

Sponsorship & Advertising


37.8

0.1

-

0.9

-

36.8

Other and Eliminations


(0.5)

(0.1)

(0.2)

(0.1)

-

(0.1)

    Corporate


(19.5)

5.6

-

0.6

6.7

(32.4)

Total Live Nation


$          62.5

$               9.4

$                (0.2)

$           170.9

$               8.7

$          (126.3)











    Three months ended December 31, 2011









Concerts


$         (31.9)

$                1.7

$                (0.2)

$              44.6

$               2.7

$             (80.7)

Ticketing


65.4

1.5

-

46.7

1.2

16.0

Artist Nation


12.2

0.3

-

13.2

(5.8)

4.5

Sponsorship & Advertising


36.5

0.3

-

0.3

-

35.9

Other and Eliminations


2.6

-

0.3

(0.4)

(0.1)

2.8

    Corporate


(34.1)

5.6

-

1.0

4.5

(45.2)

Total Live Nation


$          50.7

$               9.4

$                 0.1

$          105.4

$               2.5

$             (66.7)






Twelve months ended December 31, 2012









Concerts


$            31.4

$                  5.6

$                (0.5)

$             145.6

$               0.8

$           (120.1)

Ticketing


294.6

6.3

(0.2)

165.9

(0.2)

122.8

Artist Nation


38.1

1.8

-

115.7

1.2

(80.6)

Sponsorship & Advertising


175.6

0.6

-

1.2

-

173.8

Other and Eliminations


(1.6)

(0.1)

0.2

(1.6)

-

(0.1)

    Corporate


(79.0)

22.8

-

2.8

12.8

(117.4)

Total Live Nation


$        459.1

$               37.0

$                (0.5)

$           429.6

$              14.6

$             (21.6)











Twelve months ended December 31, 2011









Concerts


$           30.3

$                 6.0

$                (0.9)

$             132.5

$               (2.3)

$           (105.0)

Ticketing


279.0

5.5

(0.1)

158.1

2.2

113.3

Artist Nation


47.2

28.1

1.3

50.4

(7.7)

(24.9)

Sponsorship & Advertising


165.1

0.8

-

0.5

-

163.8

Other and Eliminations


2.2

-

0.7

(0.9)

(0.1)

2.5

    Corporate


(85.9)

20.2

-

2.5

22.8

(131.4)

Total Live Nation


$        437.9

$               60.6

$                  1.0

$           343.1

$              14.9

$              18.3

 

 

 

Reconciliation of Adjusted Operating Income (Loss) to Free Cash Flow


in ($ in millions)

Q4 2012

Q4 2011

Adjusted operating income

$       62.5

$      50.7

Less:  Cash interest expense — net

(23.0)

(29.4)

          Cash taxes

(8.4)

(3.4)

          Maintenance capital expenditures

(20.8)

(22.8)

          Distributions to noncontrolling interests

(10.9)

(6.6)

Distributions from (contributions to) investments in nonconsolidated affiliates 

2.0

(8.9)

          Free cash flow

$        1.4

$    (20.4)

 Revenue generating capital expenditures

(14.3)

(20.1)

 Net

$    (12.9)

$    (40.5)


in ($ in millions)

12 months

2012

12 months

2011

Adjusted operating income

$     459.1

$     437.9

Less:  Cash interest expense — net

(108.0)

(107.3)

          Cash taxes

2.2

(37.7)

          Maintenance capital expenditures

(63.0)

(64.4)

          Distributions to noncontrolling interests

(20.1)

(18.9)

Distributions from (contributions to) investments in nonconsolidated affiliates 

5.5

(6.5)

          Free cash flow

$    275.7

$    203.1

 Revenue generating capital expenditures

(60.3)

(47.7)

 Net

$    215.4

$    155.4

 

 

Reconciliation of Cash and Cash Equivalents to Free Cash


($ in millions)


December 31,

2012

Cash and cash equivalents


$          1,001.1

Client cash


(441.6)

Deferred revenue — event related


(363.6)

Accrued artist fees


(8.5)

Collections on behalf of others


(52.8)

Prepaids related to artist settlements/events


205.3

   Free cash


$            339.9

 

 

 

Detail of Revenue as Reported and at Constant Currency








Reported

Constant Currency

Reported

Reported

Constant Currency


Q4 2012

Q4 2012

Q4 2011

Growth

Growth


($ in millions) 


Revenue






   Concerts

$       915.8

$       915.1

$       694.4

31.9%

31.8%

   Ticketing

372.5

372.1

352.6

5.6%

5.5%

   Artist Nation

101.3

101.0

99.2

2.1%

1.8%

   Sponsorship
   & Advertising

54.7

54.9

48.3

13.3%

13.7%

   Other and
   Eliminations

(7.1)

(7.1)

(8.8)

19.3%

19.3%


$    1,437.2

$    1,436.0

$    1,185.7

21.2%

21.1%








Reported

Constant Currency

Reported

Reported

Constant Currency


12 Months

12 Months

12 Months

Growth

Growth


2012

2012

2011




($ in millions) 


Revenue






   Concerts

$    3,870.4

$    3,950.6

$    3,506.2

10.4%

12.7%

   Ticketing

1,374.0

1,388.8

1,319.3

4.1%

5.3%

   Artist Nation

399.9

400.2

393.1

1.7%

1.8%

   Sponsorship
   & Advertising

247.9

253.0

230.8

7.4%

9.6%

   Other and
   Eliminations

(73.2)

(73.2)

(65.4)

(11.9%)

(11.9%)


$    5,819.0

$    5,919.4

$    5,384.0

8.1%

9.9%

 

SOURCE Live Nation Entertainment



RELATED LINKS
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