LOS
ANGELES, Feb. 22, 2024 /PRNewswire/ --
"The live music industry reached new heights in 2023, and
demand for live music continues to build. Our digital world
empowers artists to develop global followings, while inspiring fans
to crave in-person experiences more than ever. At the same time,
the industry is delivering a wider variety of concerts which draws
in new audiences, and developing more venues to support a larger
show pipeline. Against this backdrop, we expect all our businesses
to continue growing and adding value to artists and fans as we
deliver double-digit operating income and AOI growth again this
year, with our profitability compounding by double-digits over the
next several years."
–Michael Rapino, President and
CEO, Live Nation Entertainment
2023 Financial Overview (vs FY 2022): Global Demand for Live
Events Drives Ongoing Growth
(reported FX)
- Revenue up 36% to $22.7
billion
- Operating Income up 46% to $1.07
billion
- AOI up 32% to $1.86 billion,
doubling since 2019
- Operating Cash Flow of nearly $1.4
billion
- Free Cash Flow — Adjusted of over $1.1
billion, up 20% and converting 62% of AOI
- EPS more than doubled to $1.37
View how these results compare to past quarters in the 4Q23
Trended Results
Grid:
https://investors.livenationentertainment.com/financial-information/financial-results
2023 Highlights (vs FY 2022): All-Time Highs for Attendance,
Ticket Sales, and Sponsorship Activity
- More fans: Concert attendance up 20%, over 145
million fans attended over 50,000 events
- More global and longer: 50% more international acts
in top 50 tours and tours have 15% more shows on average (both
compared to five years ago)
- Higher spending on hospitality: Ancillary per fan
spending up double-digits across all major venue types –
amphitheaters, festivals, and clubs and theaters
- Greater ticket sales: Fee-bearing gross transaction
value (GTV) up 30% to nearly $36
billion
- Growing brand demand: Sponsorship revenue up 13% to over
$1 billion
- Live Nation remains the largest supporter of artists:
Investment in artists up over 40% to over $13 billion
- Promoting more artists at every level from clubs to stadiums,
with nearly 7,000 touring artists in 40+ countries
- Paid out $1,500 nightly bonuses
and 100% merchandise profits to over 3,000 developing artists
through our On The Road Again program, which has extended to
2024
2024 Strong Start (vs same period 2023): Leading Indicators
Point to Another Year of Growth
(based on leading
indicators through mid-February)
- Fans prioritize live: Social media fuels fan interest,
with approximately 90% of live music goers agreeing that seeing
live music content on social media makes them want to attend shows
- Live Nation concert ticket sales pacing up 6% with 57 million
tickets sold for shows this year, and arena and amphitheater sales
up double-digits
- Strong demand across all price points: Front of house continues
to see high demand and ticket sales up 25% for the 2024 Lawnie
Pass
- Show pipeline up: Confirmed shows for large venues
(stadiums, arenas, and amphitheaters) up double-digits with growth
led by arenas and amphitheaters
- 65% of full-year booked compared to approximately 50% booked
last year
- Venue Nation fan count expected to grow with more shows at
amphitheaters and other operated venues
- Event-related deferred revenue at year end up 8% to
$2.9 billion
- Strong momentum at Ticketmaster: GTV up
double-digits to $13 billion on
fee-bearing tickets for events playing off in 2024
- Approximately three million net new enterprise tickets signed
in January, with two-thirds from International markets
- All-in pricing winning fans: Move to all-in pricing last
fall receiving positive reception and driving higher conversion
rates across our operated venues
- Sponsorship momentum continues: Approximately 75%
of expected sponsorship commitments booked, up double-digits
- Long-term monetization driven by opportunities across
Latin America and Asia, expanding venue and festival footprint
including premium experiences, and Ticketmaster's global platform
including digital ticketing
2023 Concerts Demand on the Rise Globally (vs FY
2022)
- Revenue up 39% to $18.8
billion
- AOI approximately doubled to $325
million
- Full-year margins expanded by 50 basis points, despite most fan
growth coming in third-party venues
Demand Increasing Attendance Across All Markets, Venues, and
Price Points (vs FY 2022)
- Overall fan growth of 20% led by International markets up 25%
and North America up 17%
- Stadium shows led attendance growth with over 29 million fans
globally, up 60%
- Wide variety of price points with two-thirds of U.S. concert
tickets under $100 and one-third
under $50
- Average secondary ticket price roughly 2x primary, showing that
tickets remain priced below market value
Venue Nation Continues to Elevate On-Site Experiences (vs FY
2022)
- Over 55 million fans at our operated venues and festivals, up
13%
- Ancillary per fan revenue grew double-digits at operated venues
as fans prioritize spending on enhanced hospitality:
- Amphitheaters up 10% to over $40
- Arenas and theaters and clubs up double-digits globally
- Major festivals (over 100k
attendees) up double-digits globally
- Expanding global venue portfolio with a focus on large theaters
and international arenas
Global Fan Demand and Client Wins Drive 2023 Ticketing
Results (vs FY 2022)
- Revenue up 32% to nearly $3
billion
- AOI up 35% to over $1.1
billion
- Full-year margins remained in the high 30s
Live Experience Economy Fuels More Ticket Sales (vs FY
2022)
- Total fee-bearing GTV up 30% to $36
billion, with North America
up 26% and International markets up 42%; 85% of the growth driven
by global concert ticket sales
- Total tickets up 13% to over 620 million tickets, including
fee-bearing tickets up 17% to 329 million
- 21 million net new client tickets added, with approximately 80%
coming from International markets
Sponsorship Growth Reflects the Scale and Unique Nature of
Our Global Platforms (vs FY 2022)
- Revenue up 13% to over $1
billion
- AOI up 14% to $675 million
- Full-year margins remained in the low 60s
- Over 100 partners with multi-million dollar, multi-year
commitments accounted for approximately 80% of revenue
- Growth led by beverages, technology, and financial
services
- - - - - - - - -
Additional Financial Information
- 2024 growth expected to be more weighted toward 2Q and 3Q
compared to previous years
- 2024 capital expenditures estimated to be $540 million, in line with prior years as a
percentage of revenue
- Approximately two-thirds will support revenue-generating
projects, driven primarily by the expansion of and investment in
our global venue portfolio
- Four venues account for approximately one-third of this spend
with total expected returns over 20%
- Foreign exchange rates not currently expected to materially
impact 2024 revenue, operating income or AOI
- Below-the-line impact to 2024 EPS:
- Depreciation and amortization expense expected to be
$80 million higher than 2023
- Annual accretion expected to grow in line with AOI
- Non-controlling interest and tax expenses expected to grow in
line with AOI
- 2024 share count not expected to change materially from
2023
Balance Sheet and Liquidity Gives Us Financial
Flexibility
- 4Q23 ended with $6.2 billion in
cash and cash equivalents, including $1.5
billion in ticketing client cash and $2.2 billion in free cash
- Approximately 87% of debt is at a fixed rate, with an average
cost of debt of 4.7%
The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial
performance, operational matters and potentially other material
developments. Interested parties should visit the "News / Events"
section of the company's website at
investors.livenationentertainment.com to listen to the webcast.
Supplemental statistical and financial information to be provided
on the call, if any, will be posted to the "Financial Info" section
of the website. A replay of the webcast will also be available on
the Live Nation website. The link to the 4Q23 Trended Results Grid
is provided above for convenience and such grid is not a part of,
or incorporated into, this press release or any SEC filings that
include this press release.
Notice Regarding Financial Statements
The company has provided certain financial statements at the end
of this press release for reference. These financial
statements should be read in conjunction with the full financial
statements, and the notes thereto, set forth in the company's
Annual Report on Form 10-K filed with the Securities and Exchange
Commission today and available on the SEC's website at sec.gov.
About Live Nation Entertainment:
Live Nation Entertainment, Inc. (NYSE: LYV) is the world's
leading live entertainment company comprised of global market
leaders: Ticketmaster, Live Nation Concerts, and Live Nation Media
& Sponsorship. For additional information, visit
investors.livenationentertainment.com.
FINANCIAL HIGHLIGHTS
– FOURTH QUARTER
|
(unaudited; $ in
millions)
|
|
|
Q4 2023
Reported
|
|
Q4 2022
Reported
|
|
Growth
|
|
Q4 2023
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$ 4,874.8
|
|
$ 3,395.9
|
|
44 %
|
|
$ 4,924.7
|
|
45 %
|
Ticketing
|
739.8
|
|
651.3
|
|
14 %
|
|
737.3
|
|
13 %
|
Sponsorship &
Advertising
|
255.4
|
|
245.6
|
|
4 %
|
|
252.6
|
|
3 %
|
Other and
Eliminations
|
(31.1)
|
|
(2.2)
|
|
*
|
|
(31.1)
|
|
*
|
|
$ 5,838.9
|
|
$ 4,290.6
|
|
36 %
|
|
$ 5,883.5
|
|
37 %
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Loss
|
$
(81.5)
|
|
$
(119.9)
|
|
32 %
|
|
$
(95.1)
|
|
21 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
(184.4)
|
|
$
(184.8)
|
|
— %
|
|
$
(204.9)
|
|
(11 %)
|
Ticketing
|
236.0
|
|
227.7
|
|
4 %
|
|
237.0
|
|
4 %
|
Sponsorship &
Advertising
|
126.2
|
|
117.7
|
|
7 %
|
|
127.5
|
|
8 %
|
Other and
Eliminations
|
(6.6)
|
|
(4.7)
|
|
*
|
|
(6.6)
|
|
*
|
Corporate
|
(54.3)
|
|
(58.1)
|
|
7 %
|
|
(54.3)
|
|
7 %
|
|
$
116.9
|
|
$
97.8
|
|
20 %
|
|
$
98.7
|
|
1 %
|
* Percentages are not
meaningful
|
FINANCIAL HIGHLIGHTS
– 12 MONTHS
|
(unaudited; $ in
millions)
|
|
|
12 Months
2023
Reported
|
|
12 Months
2022
Reported
|
|
Growth
|
|
12 Months
2023
Constant
Currency
|
|
Growth at
Constant
Currency
|
Revenue
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
18,763.7
|
|
$
13,494.1
|
|
39 %
|
|
$
18,724.4
|
|
39 %
|
Ticketing
|
2,959.5
|
|
2,238.6
|
|
32 %
|
|
2,953.3
|
|
32 %
|
Sponsorship &
Advertising
|
1,095.2
|
|
968.1
|
|
13 %
|
|
1,077.6
|
|
11 %
|
Other and
Eliminations
|
(69.3)
|
|
(19.6)
|
|
*
|
|
(69.3)
|
|
*
|
|
$
22,749.1
|
|
$
16,681.2
|
|
36 %
|
|
$
22,686.0
|
|
36 %
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Income
|
$ 1,066.2
|
|
$
732.1
|
|
46 %
|
|
$ 1,036.6
|
|
42 %
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
|
|
|
|
|
|
|
|
Concerts
|
$
325.5
|
|
$
169.7
|
|
92 %
|
|
$
292.8
|
|
72 %
|
Ticketing
|
1,116.3
|
|
827.9
|
|
35 %
|
|
1,112.3
|
|
34 %
|
Sponsorship &
Advertising
|
675.1
|
|
592.0
|
|
14 %
|
|
669.0
|
|
13 %
|
Other and
Eliminations
|
(39.5)
|
|
(14.5)
|
|
*
|
|
(39.5)
|
|
*
|
Corporate
|
(215.0)
|
|
(167.9)
|
|
(28) %
|
|
(215.0)
|
|
(28) %
|
|
$ 1,862.4
|
|
$ 1,407.2
|
|
32 %
|
|
$ 1,819.6
|
|
29 %
|
* Percentages are not
meaningful
|
Reconciliation of
Operating Income (Loss) to Adjusted Operating Income
(Unaudited)
|
|
|
Q4
2023
|
Q4
2022
|
|
12 Months
2023
|
12 Months
2022
|
|
(in
millions)
|
Operating Income
(Loss)
|
$
(81.5)
|
$
(119.9)
|
|
$
1,066.2
|
$
732.1
|
Acquisition
expenses
|
14.5
|
38.9
|
|
93.6
|
68.2
|
Amortization of
non-recoupable ticketing contract advances
|
25.2
|
22.9
|
|
83.7
|
79.0
|
Depreciation and
amortization
|
134.4
|
131.5
|
|
516.8
|
450.0
|
Loss (gain) on sale of
operating assets
|
(5.8)
|
0.5
|
|
(13.9)
|
(32.1)
|
Stock-based
compensation expense
|
30.1
|
23.9
|
|
116.0
|
110.0
|
Adjusted Operating
Income
|
$
116.9
|
$
97.8
|
|
$
1,862.4
|
$
1,407.2
|
KEY OPERATING
METRICS
|
(unaudited)
|
|
|
Q4
2023
|
|
Q4
2022
|
|
12 Months
2023
|
|
12 Months
2022
|
|
(in thousands except
estimated events)
|
Concerts
(1)
|
|
|
|
|
|
|
|
Estimated
events:
|
|
|
|
|
|
|
|
North
America
|
10,129
|
|
8,110
|
|
33,629
|
|
29,170
|
International
|
5,694
|
|
5,046
|
|
16,430
|
|
14,475
|
Total estimated
events
|
15,823
|
|
13,156
|
|
50,059
|
|
43,645
|
Estimated
fans:
|
|
|
|
|
|
|
|
North
America
|
20,928
|
|
16,251
|
|
81,252
|
|
69,693
|
International
|
16,612
|
|
15,758
|
|
64,538
|
|
51,459
|
Total estimated
fans
|
37,540
|
|
32,009
|
|
145,790
|
|
121,152
|
Ticketing
(2)
|
|
|
|
|
|
|
|
Estimated number of
fee-bearing tickets
|
88,670
|
|
83,955
|
|
329,116
|
|
280,862
|
Estimated number of
non-fee-bearing tickets
|
80,777
|
|
80,151
|
|
291,295
|
|
269,814
|
Total estimated
tickets sold
|
169,447
|
|
164,106
|
|
620,411
|
|
550,676
|
_________
(1)
|
Events generally
represent a single performance by an artist. Fans generally
represent the number of people who attend an event. Festivals are
counted as one event in the quarter in which the festival begins,
but the number of fans is based on the days the fans were present
at the festival and thus can be reported across multiple quarters.
Events and fan attendance metrics are estimated each
quarter.
|
|
|
(2)
|
The fee-bearing tickets
estimated above include primary and secondary tickets that are sold
using our Ticketmaster systems or that we issue through
affiliates. This includes primary tickets sold during the year
regardless of event timing, except for our own events where our
concert promoters control ticketing which are reported when the
events occur. The non-fee-bearing tickets estimated above include
primary tickets sold using our Ticketmaster systems, through season
seat packages and our venue clients' box offices, along with
tickets sold on our "do it yourself" platform. These ticket metrics
are net of any refunds requested and any cancellations that
occurred during the period, which may result in a negative
number.
|
Reconciliation of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation of
Free Cash Flow — Adjusted to Net Cash Provided
by Operating Activities
|
|
($ in
millions)
|
Q4
2023
|
|
Q4
2022
|
Net cash provided by
operating activities
|
$
608.4
|
|
$
903.7
|
Less: Changes in
operating assets and liabilities (working capital)
|
(568.0)
|
|
(844.3)
|
Free cash flow from
earnings
|
$
40.4
|
|
$
59.4
|
Less: Maintenance
capital expenditures
|
(59.4)
|
|
(70.2)
|
Distributions to noncontrolling interests
|
(85.8)
|
|
(18.8)
|
Free cash flow —
adjusted
|
$
(104.8)
|
|
$
(29.6)
|
|
|
|
|
Net cash used in
investing activities
|
$
(231.8)
|
|
$
(425.0)
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
$
(132.2)
|
|
$
31.9
|
Reconciliation of
Certain Non-GAAP Measures to Their Most Directly Comparable GAAP
Measures (Unaudited)
|
|
Reconciliation of
Free Cash Flow — Adjusted to Net Cash Provided by Operating
Activities
|
|
($ in
millions)
|
12 Months
2023
|
|
12 Months
2022
|
Net cash provided by
operating activities
|
$
1,370.8
|
|
$
1,832.1
|
Less: Changes in
operating assets and liabilities (working capital)
|
160.0
|
|
(637.9)
|
Free cash flow from
earnings
|
$
1,530.8
|
|
$
1,194.2
|
Less: Maintenance
capital expenditures
|
(131.9)
|
|
(127.0)
|
Distributions to noncontrolling interests
|
(239.6)
|
|
(100.7)
|
Free cash flow —
adjusted
|
$
1,159.3
|
|
$
966.5
|
|
|
|
|
Net cash used in
investing activities
|
$
(695.8)
|
|
$
(784.7)
|
|
|
|
|
Net cash used in
financing activities
|
$
(87.3)
|
|
$
(143.3)
|
Reconciliation of
Free Cash to Cash and Cash Equivalents
|
|
($ in
millions)
|
December 31,
2023
|
Cash and cash
equivalents
|
$
6,231.9
|
Client cash
|
(1,483.7)
|
Deferred revenue —
event-related
|
(2,947.4)
|
Accrued artist
fees
|
(215.9)
|
Collections on behalf
of others
|
(82.3)
|
Prepaid expenses —
event-related
|
695.0
|
Free cash
|
$
2,197.6
|
Forward-Looking Statements, Non-GAAP Financial Measures and
Reconciliations:
Certain statements in this press release, including the
Supplemental Information that follows, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include, but
are not limited to statements the regarding leading indicators
pointing to another year of growth for the company in 2024; the
company's current expectation that all of its businesses will
continue to grow, with anticipated double-digit operating income
and adjusted operating income growth in 2024, with profitability
expected to compound by double-digits over the next several years;
expected growth in Venue Nation fan count; continued momentum for
the company's sponsorship business and the drivers for long-term
monetization in this business; the company's estimated capital
expenditures for 2024; the company's expectations for depreciation
and amortization expense, annual accretion, and non-controlling
interest and tax expenses in 2024; the company's expectation that
2024 growth will be more weighted toward the second and third
quarters compared to previous years; current expectations that
foreign exchange rates will not materially impact 2024 revenue,
operating income or adjusted operating income; and current
expectations that 2024 share count will not change materially from
2023.
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 we define as consolidated operating income
(loss) before certain acquisition expenses (including transaction
costs, changes in the fair value of accrued acquisition-related
contingent consideration obligations, and acquisition-related
severance and compensation), amortization of non-recoupable
ticketing contract advances, depreciation and amortization
(including goodwill impairment), loss (gain) on disposal of
operating assets, and stock-based compensation expense. We use AOI
to evaluate the performance of our operating segments. We believe
that information about AOI assists investors by allowing them to
evaluate changes in the operating results of our portfolio of
businesses separate from non-operational factors that affect net
income (loss), 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 our 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 when
applied to a GAAP financial measure. We calculate currency impacts
as the difference between current period activity translated using
the current period's currency exchange rates and the comparable
prior period's currency exchange rates. We present constant
currency information to provide a framework for assessing how our
underlying businesses performed excluding the effect of foreign
currency rate fluctuations.
Free Cash Flow — Adjusted, or FCF, is a non-GAAP financial
measure that we define as net cash provided by (used in) operating
activities less changes in operating assets and liabilities, less
maintenance capital expenditures, less distributions to
noncontrolling interest partners. We use FCF among other measures,
to evaluate the ability of operations to generate cash that is
available for purposes other than maintenance capital expenditures.
We believe that information about FCF provides investors with an
important perspective on the cash available to service debt, make
acquisitions, and for revenue generating capital expenditures. FCF
is not calculated or presented in accordance with GAAP. A
limitation of the use of FCF as a performance measure is that it
does not necessarily represent funds available for operations and
is not necessarily a measure of our ability to fund our cash needs.
Accordingly, FCF should be considered in addition to, and not as a
substitute for, net cash provided by (used in) operating activities
and other measures of financial performance reported in accordance
with GAAP. Furthermore, this measure may vary among other
companies; thus, FCF as presented herein may not be comparable to
similarly titled measures of other companies.
Free Cash is a non-GAAP financial measure that we define as
cash and cash equivalents less ticketing-related client funds, less
event-related deferred revenue, less accrued expenses due to
artists and cash collected on behalf of others, plus event-related
prepaids. We use free cash as a proxy for how much cash we have
available to, among other things, optionally repay debt balances,
make acquisitions and fund revenue generating capital expenditures.
Free cash is not calculated or presented in accordance with GAAP. A
limitation of the use of free cash as a performance measure is that
it does not necessarily represent funds available from operations
and it is not necessarily a measure of our ability to fund our cash
needs. Accordingly, free cash should be considered in addition to,
and not as a substitute for, cash and cash equivalents and other
measures of financial performance reported in accordance with GAAP.
Furthermore, this measure may vary among other companies; thus,
free cash as presented herein may not be comparable to similarly
titled measures of other companies.
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
(in
thousands)
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
and cash equivalents
|
$
6,231,866
|
|
$
5,606,457
|
Accounts receivable, less allowance of $82,350 and $63,294,
respectively
|
2,069,054
|
|
1,465,383
|
Prepaid expenses
|
1,147,581
|
|
949,826
|
Restricted cash
|
7,090
|
|
5,917
|
Other current assets
|
122,163
|
|
131,939
|
Total current
assets
|
9,577,54
|
|
8,159,522
|
Property, plant and
equipment, net
|
2,101,463
|
|
1,487,663
|
Operating lease
assets
|
1,606,389
|
|
1,571,395
|
Intangible
assets
|
|
|
|
Definite-lived intangible assets, net
|
1,161,621
|
|
1,050,622
|
Indefinite-lived intangible assets, net
|
377,349
|
|
368,712
|
Goodwill
|
2,691,466
|
|
2,529,380
|
Long-term
advances
|
623,154
|
|
568,558
|
Other long-term
assets
|
934,849
|
|
724,989
|
Total
assets
|
$
19,074,045
|
|
$
16,460,841
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts payable, client accounts
|
$
1,866,864
|
|
$
1,791,025
|
Accounts payable
|
267,493
|
|
180,076
|
Accrued expenses
|
3,006,281
|
|
2,368,434
|
Deferred revenue
|
3,398,028
|
|
3,134,800
|
Current portion of long-term debt, net
|
1,134,386
|
|
620,032
|
Current portion of operating lease liabilities
|
158,421
|
|
140,232
|
Other current liabilities
|
128,430
|
|
68,716
|
Total current
liabilities
|
9,959,903
|
|
8,303,315
|
Long-term debt,
net
|
5,459,026
|
|
5,283,467
|
Long-term operating
lease liabilities
|
1,686,091
|
|
1,654,525
|
Other long-term
liabilities
|
488,159
|
|
455,971
|
Commitments and
contingent liabilities
|
|
|
|
Redeemable
noncontrolling interests
|
893,709
|
|
669,766
|
Stockholders'
equity
|
|
|
|
Preferred stock—Series
A Junior Participating, $0.01 par value; 20,000,000 shares
authorized; no shares issued and
outstanding
|
—
|
|
—
|
Preferred stock, $0.01
par value; 30,000,000 shares authorized; no shares issued and
outstanding
|
—
|
|
—
|
Common stock, $0.01
par value; 450,000,000 shares authorized; 233,711,176 and
231,671,647 shares issued and 233,303,152 and 231,263,623 shares
outstanding in 2023 and 2022, respectively
|
2,298
|
|
2,285
|
Additional paid-in capital
|
2,367,918
|
|
2,698,316
|
Accumulated deficit
|
(2,407,949)
|
|
(2,971,229)
|
Cost
of shares held in treasury
|
(6,865)
|
|
(6,865)
|
Accumulated other comprehensive income (loss)
|
27,450
|
|
(90,076)
|
Total Live Nation
stockholders' equity
|
(17,148)
|
|
(367,569)
|
Noncontrolling
interests
|
604,305
|
|
461,366
|
Total
equity
|
587,157
|
|
93,797
|
Total liabilities
and equity
|
$
19,074,045
|
|
$
16,460,841
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2021
|
|
(in thousands,
except share and per share data)
|
Revenue
|
$
22,749,073
|
|
$
16,681,254
|
|
$
6,268,447
|
Operating
expenses:
|
|
|
|
|
|
Direct operating
expenses
|
17,292,016
|
|
12,337,524
|
|
4,355,989
|
Selling, general and
administrative expenses
|
3,557,167
|
|
2,955,884
|
|
1,754,822
|
Depreciation and
amortization
|
516,797
|
|
449,976
|
|
416,277
|
Gain on disposal of
operating assets
|
(13,927)
|
|
(32,082)
|
|
(1,211)
|
Corporate
expenses
|
330,817
|
|
237,834
|
|
160,428
|
Operating income
(loss)
|
1,066,203
|
|
732,118
|
|
(417,858)
|
Interest
expense
|
350,244
|
|
278,483
|
|
282,440
|
Loss on extinguishment
of debt
|
18,504
|
|
—
|
|
—
|
Interest
income
|
(237,818)
|
|
(77,620)
|
|
(6,625)
|
Equity in losses
(earnings) of nonconsolidated affiliates
|
5,455
|
|
(10,571)
|
|
(2,520)
|
Loss (gain) from sale
of investments in nonconsolidated affiliates
|
341
|
|
(448)
|
|
(83,578)
|
Other expense,
net
|
34,933
|
|
36,827
|
|
3,692
|
Income (loss) before
income taxes
|
894,544
|
|
505,447
|
|
(611,267)
|
Income tax expense
(benefit)
|
160,227
|
|
96,254
|
|
(2,481)
|
Net income
(loss)
|
734,317
|
|
409,193
|
|
(608,786)
|
Net income attributable
to noncontrolling interests
|
171,037
|
|
113,207
|
|
42,118
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
563,280
|
|
$
295,986
|
|
$
(650,904)
|
|
|
|
|
|
|
Basic net income (loss)
per common share available to common stockholders of Live
Nation
|
$
1.38
|
|
$
0.66
|
|
$
(3.09)
|
Diluted net income
(loss) per common share available to common stockholders of Live
Nation
|
$
1.37
|
|
$
0.64
|
|
$
(3.09)
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
Basic
|
228,628,390
|
|
224,809,558
|
|
217,190,862
|
Diluted
|
230,977,326
|
|
231,556,866
|
|
217,190,862
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net
income (loss) available to common stockholders of Live
Nation:
|
|
|
|
|
|
Net income (loss)
attributable to common stockholders of Live Nation
|
$
563,280
|
|
$
295,986
|
|
$
(650,904)
|
Accretion of
redeemable noncontrolling interests
|
(247,438)
|
|
(146,770)
|
|
(19,771)
|
Net income (loss)
available to common stockholders of Live Nation—basic and
diluted
|
$
315,842
|
|
$
149,216
|
|
$
(670,675)
|
|
|
|
|
|
|
LIVE NATION
ENTERTAINMENT, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2021
|
|
(in
thousands)
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
734,317
|
|
$
409,193
|
|
$
(608,786)
|
Reconciling
items:
|
|
|
|
|
|
Depreciation
|
266,590
|
|
225,770
|
|
222,840
|
Amortization of
definite-lived intangibles and indefinite-lived intangibles
impairment loss
|
250,207
|
|
224,206
|
|
193,437
|
Amortization of
non-recoupable ticketing contract advances
|
83,693
|
|
79,043
|
|
74,406
|
Deferred income tax
expense (benefit)
|
(44,018)
|
|
7,199
|
|
(9,639)
|
Amortization of debt
issuance costs and discounts
|
16,884
|
|
16,448
|
|
37,260
|
Provision for
uncollectible accounts receivable
|
78,336
|
|
68,612
|
|
(17,826)
|
Loss on extinguishment
of debt
|
18,504
|
|
—
|
|
—
|
Stock-based
compensation expense
|
115,959
|
|
110,049
|
|
209,337
|
Unrealized changes in
fair value of contingent consideration
|
40,151
|
|
56,704
|
|
(6,732)
|
Gain on mark-to-market
of equity investments
|
(47,878)
|
|
(22,638)
|
|
(15,447)
|
Equity in losses of
nonconsolidated affiliates, net of distributions
|
30,522
|
|
14,912
|
|
11,189
|
Loss (gain) on sale of
investments in nonconsolidated affiliates
|
(979)
|
|
1,357
|
|
(83,578)
|
Other, net
|
(11,509)
|
|
3,355
|
|
114
|
Changes in operating
assets and liabilities, net of effects of acquisitions and
dispositions:
|
|
|
|
|
|
Increase in accounts
receivable
|
(550,670)
|
|
(463,977)
|
|
(485,211)
|
Decrease (increase) in
prepaid expenses and other assets
|
(202,834)
|
|
(267,945)
|
|
95,533
|
Increase in accounts
payable, accrued expenses and other liabilities
|
460,496
|
|
1,002,158
|
|
1,315,722
|
Increase in deferred
revenue
|
133,023
|
|
367,617
|
|
847,949
|
Net cash provided by
operating activities
|
1,370,794
|
|
1,832,063
|
|
1,780,568
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Advances of notes
receivable
|
(181,801)
|
|
(115,992)
|
|
(28,899)
|
Collections of notes
receivable
|
17,057
|
|
20,527
|
|
23,835
|
Investments made in
nonconsolidated affiliates
|
(54,922)
|
|
(91,186)
|
|
(110,589)
|
Purchases of property,
plant and equipment
|
(438,604)
|
|
(347,206)
|
|
(152,734)
|
Cash paid for
acquisitions, net of cash acquired
|
(17,534)
|
|
(257,191)
|
|
(384,251)
|
Purchases of intangible
assets
|
(36,653)
|
|
(6,080)
|
|
(7,100)
|
Proceeds from sale of
investments in nonconsolidated affiliates
|
1,524
|
|
3,863
|
|
90,432
|
Other, net
|
15,128
|
|
8,574
|
|
2,344
|
Net cash used in
investing activities
|
(695,805)
|
|
(784,691)
|
|
(566,962)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from long-term
debt, net of debt issuance costs
|
1,061,026
|
|
122,251
|
|
903,827
|
Payments on long-term
debt including extinguishment costs
|
(730,643)
|
|
(45,792)
|
|
(109,705)
|
Contributions from
noncontrolling interests
|
19,602
|
|
15,021
|
|
22,026
|
Distributions to
noncontrolling interests
|
(239,619)
|
|
(100,660)
|
|
(52,368)
|
Purchases and sales of
noncontrolling interests, net
|
(113,768)
|
|
(48,306)
|
|
(9,638)
|
Proceeds from sale of
common stock, net of issuance costs
|
—
|
|
—
|
|
449,630
|
Payments for capped
call transactions
|
(75,500)
|
|
—
|
|
—
|
Proceeds from exercise
of stock options
|
19,264
|
|
35,775
|
|
30,618
|
Taxes paid for net
share settlement of equity awards
|
(9,484)
|
|
(76,925)
|
|
(45,845)
|
Payments for deferred
and contingent consideration
|
(17,757)
|
|
(44,220)
|
|
(17,319)
|
Other, net
|
(402)
|
|
(484)
|
|
106
|
Net cash provided by
(used in) financing activities
|
(87,281)
|
|
(143,340)
|
|
1,171,332
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
38,874
|
|
(179,450)
|
|
(43,585)
|
Net increase in cash,
cash equivalents, and restricted cash
|
626,582
|
|
724,582
|
|
2,341,353
|
Cash, cash equivalents
and restricted cash at beginning of period
|
5,612,374
|
|
4,887,792
|
|
2,546,439
|
Cash, cash equivalents
and restricted cash at end of period
|
$
6,238,956
|
|
$
5,612,374
|
|
$
4,887,792
|
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SOURCE Live Nation Entertainment