Live Nation Entertainment Reports Fourth Quarter And Full Year 2012 Financial Results

- Full Year Revenue Improves on Higher Ticket Sales -

Feb 26, 2013, 16:13 ET from Live Nation Entertainment

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

http://www.livenation.com/investors