Live Nation Entertainment Reports Fourth Quarter & Full Year 2020 Results
Live Nation Entertainment (LYV) reported significant financial shifts for Q4 2020, highlighting a $950 million cost reduction and $1.65 billion in cash savings. Despite the challenges posed by Covid-19, 83% of fans retained their tickets for rescheduled shows, and a robust demand for concerts is anticipated with projected consumer savings of $2.4 trillion. The company aims to strengthen its business by exploring streaming and direct-to-consumer initiatives. With $2.5 billion in cash and liquidity support, the company is poised for a return to live events, coinciding with an accelerating vaccine rollout.
- Achieved $950 million cost reduction in 2020.
- $1.65 billion cash savings realized in 2020.
- 83% of fans retaining tickets showcases strong customer loyalty.
- Projected $2.4 trillion in consumer savings signals potential spending power.
- Significant pent-up demand for concerts expected post-Covid.
- None.
Highlights
83% of Fans Continuing To Hold Onto Their Tickets$950 Million Cost Reduction Achieved in 2020$1.65 Billion Cash Savings Achieved in 2020
LOS ANGELES, Feb. 25, 2021 /PRNewswire/ -- Live Nation Entertainment, Inc. (NYSE: LYV) today released financial results for the quarter ended December 31, 2020.
As we look back on 2020, it is clearly not the year anyone predicted, but I am very proud of how Live Nation has dug in and focused on turning this challenge into an opportunity to improve our business. I want to take a moment to thank our employees for their resilience and creativity, and acknowledge all of those affected by Covid and the shutdown of live events.
We Believe We Will Return to Live Even Stronger
Over the last year, leaders across all our business lines of Concerts, Ticketing and Sponsorship have been analyzing ways to improve their businesses. Some of our key initiatives include: Re-organizing to become more nimble while also reducing our cost structure by
So while this past year has been challenging for the company, our employees, fans, artists and so many others globally impacted by Covid, I have never been more excited about the opportunities in front of us.
Supply and Demand Pipeline is Very Strong
We continue to have a substantial tailwind in the live event industry, as consumers more than ever are looking to spend on experiences. The supply-demand fundamentals of the concerts business remain strong, with artists ready to get back on the road and fans eager to reconnect at events. All our data continues to show that there is substantial pent-up demand for concerts on the consumer demand side. The
On the artist side there is a broad desire to get back on stage – to connect with their fans and to provide economic support to their bands, crew, and the hundreds of others employed each night putting on the show. Given the limited touring activity in 2020 and 2021, the pipeline for 2022 is much stronger than usual, with almost twice as many major touring artists on cycle in 2022 than a typical year – about 45 artists versus the usual 25. And there remains plenty of scheduling availability at arenas, amphitheaters and stadiums to accommodate these additional tours, with over two-thirds of these venues' nights unused by sporting events or major concerts in a typical year.
Vaccine Rollout Encouraging
It appears that the timing to release the pent-up supply and demand is now approaching. Vaccine distribution is accelerating and declines in Covid cases throughout most of the world gives us even more confidence that a safe and meaningful return to shows will soon be possible. For both the U.S. and U.K., projections indicate that everyone who wants to get vaccinated will be able to do so by May or June, with Europe and most other markets following a few months later. Given the massive social and economic toll that the lockdown has had on the public, we believe there will be strong momentum to reopen society swiftly as soon as vaccines are readily available. And we believe outdoor activities will be the first to happen.
So while the timing of our return to live will continue to vary across global markets, every sign points to it beginning safely in many countries sometime this summer and scaling further from there.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
Additional Information on Liquidity
At the end of the fourth quarter of 2020, the company had total cash and cash equivalents of
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.
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 to be filed with the Securities and Exchange Commission on Monday, March 1, 2021 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 – 4th QUARTER | |||||||||||||||||
(unaudited; $ in millions) | |||||||||||||||||
Q4 2020 | Q4 2019 | Growth | Q4 2020 | Growth at | |||||||||||||
Revenue | |||||||||||||||||
Concerts | $ | 178.4 | $ | 2,296.6 | (92) | % | $ | 176.8 | (92) | % | |||||||
Ticketing | 10.9 | 448.3 | (98) | % | 10.4 | (98) | % | ||||||||||
Sponsorship & Advertising | 47.1 | 148.4 | (68) | % | 46.0 | (69) | % | ||||||||||
Other and Eliminations | 0.9 | (3.9) | * | 0.9 | * | ||||||||||||
$ | 237.3 | $ | 2,889.4 | (92) | % | $ | 234.1 | (92) | % | ||||||||
Operating Income (Loss) | |||||||||||||||||
Concerts | $ | (236.4) | $ | (166.4) | (42) | % | $ | (233.6) | (40) | % | |||||||
Ticketing | (131.5) | 61.0 | * | (130.4) | * | ||||||||||||
Sponsorship & Advertising | 4.1 | 73.5 | (94) | % | 3.3 | (95) | % | ||||||||||
Other and Eliminations | (0.4) | (0.7) | 43 | % | (0.4) | 43 | % | ||||||||||
Corporate | (23.8) | (50.3) | 53 | % | (23.8) | 53 | % | ||||||||||
$ | (388.0) | $ | (82.9) | * | $ | (384.9) | * | ||||||||||
Adjusted Operating Income (Loss) | |||||||||||||||||
Concerts | $ | (166.7) | $ | (90.4) | (84) | % | $ | (165.1) | (83) | % | |||||||
Ticketing | (73.7) | 130.8 | * | (73.2) | * | ||||||||||||
Sponsorship & Advertising | 14.2 | 82.5 | (83) | % | 13.4 | (84) | % | ||||||||||
Other and Eliminations | (1.8) | (1.6) | (13) | % | (1.8) | (13) | % | ||||||||||
Corporate | (16.3) | (40.5) | 60 | % | (16.3) | 60 | % | ||||||||||
$ | (244.3) | $ | 80.8 | * | $ | (243.0) | * | ||||||||||
* percentages are not meaningful |
FINANCIAL HIGHLIGHTS – 12 MONTHS | ||||||||||||||||||
(unaudited; $ in millions) | ||||||||||||||||||
12 Months | 12 Months | Growth | 12 Months | Growth at | ||||||||||||||
Revenue | ||||||||||||||||||
Concerts | $ | 1,468.4 | $ | 9,428.1 | (84) | % | $ | 1,481.7 | (84) | % | ||||||||
Ticketing | 188.4 | 1,545.2 | (88) | % | 188.4 | (88) | % | |||||||||||
Sponsorship & Advertising | 203.7 | 590.3 | (65) | % | 202.6 | (66) | % | |||||||||||
Other and Eliminations | 0.7 | (15.6) | * | 0.7 | * | |||||||||||||
$ | 1,861.2 | $ | 11,548.0 | (84) | % | $ | 1,873.4 | (84) | % | |||||||||
Operating Income (Loss) | ||||||||||||||||||
Concerts | $ | (959.0) | $ | (53.5) | * | $ | (960.0) | * | ||||||||||
Ticketing | (612.0) | 232.0 | * | (612.4) | * | |||||||||||||
Sponsorship & Advertising | 44.9 | 330.3 | (86) | % | 43.8 | (87) | % | |||||||||||
Other and Eliminations | (13.5) | (1.2) | * | (13.5) | * | |||||||||||||
Corporate | (113.6) | (182.8) | 38 | % | (113.6) | 38 | % | |||||||||||
$ | (1,653.2) | $ | 324.8 | * | $ | (1,655.7) | * | |||||||||||
Adjusted Operating Income (Loss) | ||||||||||||||||||
Concerts | $ | (638.8) | $ | 242.3 | * | $ | (639.7) | * | ||||||||||
Ticketing | (374.6) | 482.4 | * | (375.3) | * | |||||||||||||
Sponsorship & Advertising | 81.9 | 366.1 | (78) | % | 80.8 | (78) | % | |||||||||||
Other and Eliminations | (13.5) | (6.3) | * | (13.5) | * | |||||||||||||
Corporate | (70.9) | (142.0) | 50 | % | (70.9) | 50 | % | |||||||||||
$ | (1,015.9) | $ | 942.5 | * | $ | (1,018.6) | * | |||||||||||
* percentages are not meaningful |
- As of December 31, 2020, total cash and cash equivalents were
$2.5 billion , which includes$674 million in ticketing client cash and$643 million in free cash. - Event-related deferred revenue was
$1.5 billion as of December 31, 2020, compared to$1.2 billion as of December 31, 2019. In addition, we had long-term deferred revenue of$35 million for events that have been rescheduled more than one year out as of December 31, 2020. - For the twelve months ended December 31, 2020, net cash used in operating activities was
$(1.1) billion and free cash flow — adjusted was$(1.3) billion . - We currently expect capital expenditures for the full year to be approximately
$150 million in 2021.
KEY OPERATING METRICS | ||||||||
(unaudited) | ||||||||
2020 | 2019 | 2018 | ||||||
(in thousands except estimated events) | ||||||||
Concerts (1) | ||||||||
Estimated events: | ||||||||
North America | 5,270 | 28,407 | 24,186 | |||||
International | 2,847 | 11,830 | 10,810 | |||||
Total estimated events | 8,117 | 40,237 | 34,996 | |||||
Estimated fans: | ||||||||
North America | 6,075 | 62,687 | 61,159 | |||||
International | 5,067 | 34,967 | 31,607 | |||||
Total estimated fans | 11,142 | 97,654 | 92,766 | |||||
Ticketing (2) | ||||||||
Estimated number of fee-bearing tickets | 31,101 | 219,838 | 217,442 | |||||
Estimated number of non-fee-bearing tickets | 88,823 | 266,750 | 265,033 | |||||
Total estimated tickets sold | 119,924 | 486,588 | 482,475 | |||||
(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 metric includes primary tickets sold during the period 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 ticketing metrics are net of any refunds requested and any cancellations that occurred during the period and up to the time of reporting of our financial statements. Fee-bearing tickets sold above are net of refunds of 27.4 million tickets for the year ended December 31, 2020. | |||||
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 (Used in) Operating Activities | |||||||
($ in millions) | Q4 2020 | Q4 2019 | |||||
Net cash provided by (used in) operating activities | $ | (125.7) | $ | 436.9 | |||
Less: Changes in operating assets and liabilities (working capital) | (200.4) | (388.5) | |||||
Free cash flow from earnings | $ | (326.1) | $ | 48.4 | |||
Less: Maintenance capital expenditures | (9.1) | (45.5) | |||||
Distributions to noncontrolling interests | (10.1) | (34.3) | |||||
Free cash flow — adjusted | $ | (345.3) | $ | (31.4) | |||
Net cash provided by (used in) investing activities | $ | 0.4 | $ | (287.6) | |||
Net cash provided by (used in) financing activities | $ | (12.3) | $ | 468.5 | |||
($ in millions) | 12 Months 2020 | 12 Months 2019 | |||||
Net cash provided by (used in) operating activities | $ | (1,082.6) | $ | 469.8 | |||
Less: Changes in operating assets and liabilities (working capital) | (79.5) | 287.9 | |||||
Free cash flow from earnings | $ | (1,162.1) | $ | 757.7 | |||
Less: Maintenance capital expenditures | (65.1) | (150.9) | |||||
Distributions to noncontrolling interests | (41.6) | (107.5) | |||||
Free cash flow — adjusted | $ | (1,268.8) | $ | 499.3 | |||
Net cash used in investing activities | $ | (224.1) | $ | (691.0) | |||
Net cash provided by financing activities | $ | 1,349.3 | $ | 328.9 | |||
Reconciliation of Free Cash to Cash and Cash Equivalents | |||
($ in millions) | December 31, | ||
Cash and cash equivalents | $ | 2,537.8 | |
Client cash | (673.5) | ||
Deferred revenue — event-related | (1,532.5) | ||
Accrued artist fees | (13.1) | ||
Collections on behalf of others | (51.1) | ||
Prepaid expenses — event-related | 375.5 | ||
Free cash | $ | 643.1 | |
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 regarding consumer demand and the concerts pipeline for 2022; the timing for reopening society, vaccinations, holding outdoor activities and returning to live events; and the company's current expectations for capital expenditures in 2021. 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 operating income (loss) before certain stock-based compensation expense, loss (gain) on disposal of operating assets, depreciation and amortization (including goodwill impairment), amortization of non-recoupable ticketing contract advances and acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation). 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. 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.
Reconciliations of Certain Non-GAAP Measures to Their Most Directly Comparable GAAP Measures (Unaudited) | |||||||||||||||||||||||||||||||||||
Reconciliation of Adjusted Operating Income (Loss) to Operating Income (Loss) | |||||||||||||||||||||||||||||||||||
($ in millions) | Operating | Stock-based | Loss |
Depreciation amortization | Amortization of | Acquisition | Adjusted | Foreign | Adjusted | ||||||||||||||||||||||||||
Three Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Concerts | $ | (236.4) | $ | 2.4 | $ | (0.4) | $ | 63.9 | $ | — | $ | 3.8 | $ | (166.7) | $ | 1.6 | $ | (165.1) | |||||||||||||||||
Ticketing | (131.5) | 2.2 | — | 44.9 | 10.5 | 0.2 | (73.7) | 0.5 | (73.2) | ||||||||||||||||||||||||||
Sponsorship & Advertising | 4.1 | 1.2 | — | 8.9 | — | — | 14.2 | (0.8) | 13.4 | ||||||||||||||||||||||||||
Other & Eliminations | (0.4) | — | — | — | (1.4) | — | (1.8) | — | (1.8) | ||||||||||||||||||||||||||
Corporate | (23.8) | 4.1 | — | 2.6 | — | 0.8 | (16.3) | — | (16.3) | ||||||||||||||||||||||||||
Total Live Nation | $ | (388.0) | $ | 9.9 | $ | (0.4) | $ | 120.3 | $ | 9.1 | $ | 4.8 | $ | (244.3) | $ | 1.3 | $ | (243.0) | |||||||||||||||||
Three Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
Concerts | $ | (166.4) | $ | 3.1 | $ | (1.8) | $ | 62.9 | $ | — | $ | 11.8 | $ | (90.4) | $ | — | $ | (90.4) | |||||||||||||||||
Ticketing | 61.0 | 1.7 | — | 40.4 | 27.2 | 0.5 | 130.8 | — | 130.8 | ||||||||||||||||||||||||||
Sponsorship & Advertising | 73.5 | 0.7 | — | 8.2 | — | 0.1 | 82.5 | — | 82.5 | ||||||||||||||||||||||||||
Other & Eliminations | (0.7) | — | — | — | (1.0) | 0.1 | (1.6) | — | (1.6) | ||||||||||||||||||||||||||
Corporate | (50.3) | 6.4 | — | 3.4 | — | — | (40.5) | — | (40.5) | ||||||||||||||||||||||||||
Total Live Nation | $ | (82.9) | $ | 11.9 | $ | (1.8) | $ | 114.9 | $ | 26.2 | $ | 12.5 | $ | 80.8 | $ | — | $ | 80.8 | |||||||||||||||||
Twelve Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Concerts | $ | (959.0) | $ | 68.8 | $ | 0.5 | $ | 266.3 | $ | — | $ | (15.4) | $ | (638.8) | $ | (0.9) | $ | (639.7) | |||||||||||||||||
Ticketing | (612.0) | 13.4 | — | 169.9 | 54.7 | (0.6) | (374.6) | (0.7) | (375.3) | ||||||||||||||||||||||||||
Sponsorship & Advertising | 44.9 | 6.4 | — | 30.6 | — | — | 81.9 | (1.1) | 80.8 | ||||||||||||||||||||||||||
Other & Eliminations | (13.5) | — | — | 6.7 | (6.7) | — | (13.5) | — | (13.5) | ||||||||||||||||||||||||||
Corporate | (113.6) | 28.3 | — | 11.5 | — | 2.9 | (70.9) | — | (70.9) | ||||||||||||||||||||||||||
Total Live Nation | $ | (1,653.2) | $ | 116.9 | $ | 0.5 | $ | 485.0 | $ | 48.0 | $ | (13.1) | $ | (1,015.9) | $ | (2.7) | $ | (1,018.6) | |||||||||||||||||
Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
Concerts | $ | (53.5) | $ | 12.9 | $ | (2.5) | $ | 239.7 | $ | — | $ | 45.7 | $ | 242.3 | $ | — | $ | 242.3 | |||||||||||||||||
Ticketing | 232.0 | 6.3 | 0.1 | 156.9 | 85.8 | 1.3 | 482.4 | — | 482.4 | ||||||||||||||||||||||||||
Sponsorship & Advertising | 330.3 | 2.7 | — | 33.1 | — | — | 366.1 | — | 366.1 | ||||||||||||||||||||||||||
Other & Eliminations | (1.2) | 0.1 | — | 0.3 | (5.5) | — | (6.3) | — | (6.3) | ||||||||||||||||||||||||||
Corporate | (182.8) | 26.8 | — | 14.0 | — | — | (142.0) | — | (142.0) | ||||||||||||||||||||||||||
Total Live Nation | $ | 324.8 | $ | 48.8 | $ | (2.4) | $ | 444.0 | $ | 80.3 | $ | 47.0 | $ | 942.5 | $ | — | $ | 942.5 | |||||||||||||||||
LIVE NATION ENTERTAINMENT, INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(unaudited) | |||||||
December 31, | December 31, | ||||||
(in thousands, except share data) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 2,537,787 | $ | 2,470,362 | |||
Accounts receivable, less allowance of | 486,734 | 994,606 | |||||
Prepaid expenses | 577,130 | 667,044 | |||||
Restricted cash | 8,652 | 3,880 | |||||
Other current assets | 39,465 | 57,007 | |||||
Total current assets | 3,649,768 | 4,192,899 | |||||
Property, plant and equipment, net | 1,101,414 | 1,117,932 | |||||
Operating lease assets | 1,424,223 | 1,402,019 | |||||
Intangible assets | |||||||
Definite-lived intangible assets, net | 855,600 | 870,141 | |||||
Indefinite-lived intangible assets | 369,058 | 368,954 | |||||
Goodwill | 2,129,203 | 1,998,498 | |||||
Long-term advances | 668,756 | 593,699 | |||||
Other long-term assets | 391,281 | 431,473 | |||||
Total assets | $ | 10,589,303 | $ | 10,975,615 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable, client accounts | $ | 744,096 | $ | 1,005,888 | |||
Accounts payable | 86,356 | 100,237 | |||||
Accrued expenses | 894,149 | 1,391,486 | |||||
Deferred revenue | 1,839,323 | 1,391,032 | |||||
Current portion of long-term debt, net | 53,415 | 37,795 | |||||
Current portion of operating lease liabilities | 107,147 | 121,950 | |||||
Other current liabilities | 72,083 | 59,211 | |||||
Total current liabilities | 3,796,569 | 4,107,599 | |||||
Long-term debt, net | 4,855,096 | 3,271,262 | |||||
Long-term operating lease liabilities | 1,445,674 | 1,374,481 | |||||
Long-term deferred income taxes | 170,759 | 178,173 | |||||
Other long-term liabilities | 182,508 | 130,648 | |||||
Commitments and contingent liabilities | |||||||
Redeemable noncontrolling interests | 272,449 | 449,498 | |||||
Stockholders' equity | |||||||
Preferred stock—Series A Junior Participating, | — | — | |||||
Preferred stock, | — | — | |||||
Common stock, | 2,145 | 2,113 | |||||
Additional paid-in capital | 2,386,790 | 2,245,619 | |||||
Accumulated deficit | (2,676,833) | (949,334) | |||||
Cost of shares held in treasury (408,024 shares) | (6,865) | (6,865) | |||||
Accumulated other comprehensive loss | (177,009) | (145,713) | |||||
Total Live Nation stockholders' equity | (471,772) | 1,145,820 | |||||
Noncontrolling interests | 338,020 | 318,134 | |||||
Total equity | (133,752) | 1,463,954 | |||||
Total liabilities and equity | $ | 10,589,303 | $ | 10,975,615 | |||
LIVE NATION ENTERTAINMENT, INC. | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(unaudited) | |||||||||||
Year Ended December 31, | |||||||||||
2020 | 2019 | 2018 | |||||||||
(in thousands, except share and per share data) | |||||||||||
Revenue | $ | 1,861,178 | $ | 11,547,969 | $ | 10,787,800 | |||||
Operating expenses: | |||||||||||
Direct operating expenses | 1,402,400 | 8,467,182 | 7,967,932 | ||||||||
Selling, general and administrative expenses | 1,524,342 | 2,145,486 | 1,997,028 | ||||||||
Depreciation and amortization | 485,025 | 443,991 | 386,529 | ||||||||
Loss (gain) on disposal of operating assets | 503 | (2,373) | 10,369 | ||||||||
Corporate expenses | 102,100 | 168,839 | 153,406 | ||||||||
Operating income (loss) | (1,653,192) | 324,844 | 272,536 | ||||||||
Interest expense | 226,832 | 157,521 | 140,976 | ||||||||
Interest income | (11,737) | (14,406) | (8,961) | ||||||||
Equity in losses (earnings) of nonconsolidated affiliates | 5,458 | (5,457) | (2,747) | ||||||||
Other expense (income), net | (17,080) | 2,082 | 12,163 | ||||||||
Income (loss) before income taxes | (1,856,665) | 185,104 | 131,105 | ||||||||
Income tax expense (benefit) | (28,875) | 66,892 | 40,765 | ||||||||
Net income (loss) | (1,827,790) | 118,212 | 90,340 | ||||||||
Net income (loss) attributable to noncontrolling interests | (103,255) | 48,323 | 30,091 | ||||||||
Net income (loss) attributable to common stockholders of Live Nation | $ | (1,724,535) | $ | 69,889 | $ | 60,249 | |||||
Basic and diluted net loss per common share available to common stockholders of Live Nation | $ | (8.12) | $ | (0.02) | $ | (0.09) | |||||
Weighted average common shares outstanding: | |||||||||||
Basic and diluted | 212,270,944 | 210,082,696 | 207,441,468 | ||||||||
Reconciliation to net loss available to common stockholders of Live Nation: | |||||||||||
Net income (loss) attributable to common stockholders of Live Nation | $ | (1,724,535) | $ | 69,889 | $ | 60,249 | |||||
Accretion of redeemable noncontrolling interests | 1,180 | (74,771) | (77,900) | ||||||||
Basic and diluted net loss available to common stockholders of Live Nation | $ | (1,723,355) | $ | (4,882) | $ | (17,651) | |||||
LIVE NATION ENTERTAINMENT, INC. | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(unaudited) | |||||||||||
Year Ended December 31, | |||||||||||
2020 | 2019 | 2018 | |||||||||
(in thousands) | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | (1,827,790) | $ | 118,212 | $ | 90,340 | |||||
Reconciling items: | |||||||||||
Depreciation | 245,713 | 220,459 | 185,376 | ||||||||
Amortization | 239,312 | 223,532 | 201,153 | ||||||||
Amortization of non-recoupable ticketing contract advances | 47,971 | 80,302 | 80,087 | ||||||||
Deferred income tax benefit | (37,877) | (465) | (6,247) | ||||||||
Amortization of debt issuance costs and discounts | 32,774 | 24,116 | 20,219 | ||||||||
Provision for uncollectible accounts receivable | 43,076 | 27,926 | 26,321 | ||||||||
Non-cash compensation expense | 116,889 | 48,785 | 45,582 | ||||||||
Unrealized changes in fair value of contingent consideration | (24,448) | 6,698 | 14,125 | ||||||||
Equity in losses (earnings) of nonconsolidated affiliates, net of distributions | 18,280 | 14,152 | 11,693 | ||||||||
Other, net | (15,995) | (6,027) | 6,609 | ||||||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||||||||||
Decrease (increase) in accounts receivable | 490,588 | (159,792) | (135,429) | ||||||||
Decrease (increase) in prepaid expenses and other assets | 141,631 | (170,486) | (266,241) | ||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | (1,379,461) | (45,920) | 323,459 | ||||||||
Increase in deferred revenue | 826,699 | 88,291 | 344,539 | ||||||||
Net cash provided by (used in) operating activities | (1,082,638) | 469,783 | 941,586 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Advances of notes receivable | (56,957) | (50,035) | (90,705) | ||||||||
Collections of notes receivable | 80,963 | 13,216 | 33,914 | ||||||||
Investments made in nonconsolidated affiliates | (11,242) | (57,280) | (46,497) | ||||||||
Purchases of property, plant and equipment | (213,746) | (323,566) | (239,833) | ||||||||
Cash paid for acquisitions, net of cash acquired | (41,083) | (235,071) | (120,228) | ||||||||
Purchases of intangible assets | (8,863) | (42,261) | (35,630) | ||||||||
Proceeds from sale of investments in nonconsolidated affiliates | 19,003 | 1,455 | — | ||||||||
Other, net | 7,863 | 2,542 | 2,070 | ||||||||
Net cash used in investing activities | (224,062) | (691,000) | (496,909) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from long-term debt, net of debt issuance costs | 1,607,365 | 937,400 | 858,667 | ||||||||
Payments on long-term debt including extinguishment costs | (30,987) | (437,267) | (400,396) | ||||||||
Contributions from noncontrolling interests | 4,668 | 14,285 | 4,900 | ||||||||
Distributions to noncontrolling interests | (41,625) | (107,476) | (59,187) | ||||||||
Purchases and sales of noncontrolling interests, net | (106,242) | (50,267) | (159,634) | ||||||||
Proceeds from exercise of stock options | 30,647 | 14,104 | 22,568 | ||||||||
Taxes paid for net share settlement of equity awards | (47,539) | (15,353) | (55,005) | ||||||||
Payments for deferred and contingent consideration | (66,992) | (26,537) | (18,784) | ||||||||
Other, net | 37 | — | (4,345) | ||||||||
Net cash provided by financing activities | 1,349,332 | 328,889 | 188,784 | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 29,565 | (11,633) | (84,080) | ||||||||
Net increase in cash, cash equivalents, and restricted cash | 72,197 | 96,039 | 549,381 | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,474,242 | 2,378,203 | 1,828,822 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 2,546,439 | $ | 2,474,242 | $ | 2,378,203 | |||||
SUPPLEMENTAL DISCLOSURE | |||||||||||
Cash paid during the year for: | |||||||||||
Interest, net of interest income | $ | 166,405 | $ | 103,915 | $ | 100,278 | |||||
Income taxes, net of refunds | $ | 26,151 | $ | 66,937 | $ | 60,016 | |||||
FOURTH QUARTER 2020
Supplemental Information
(unaudited)
Free Cash & Cash Used in the Quarter
Changes to the company's free cash balance from the end of the third quarter of 2020 to the end of the fourth quarter were as follows:
(in millions) | |||
Free cash balance at 9/30/2020 | $ | 951 | |
Operational fixed costs | (290) | ||
Non-operational cash uses, including capital expenditures, acquisition activity, net advances and interest payments | (132) | ||
Operational contribution margin* | 116 | ||
Inflows / (outflows) from cash management programs | (2) | ||
Free cash balance at 12/31/2020 | $ | 643 | |
*Operational Contribution Margin is our contribution margin less one-time items (Ticketing refunds, insurance recoveries, and artist advance reserves) and excluding the call center costs we have included in operational fixed costs above. |
Ticket Refunds - Q4 2020
The global refund rate for the company's concerts that are rescheduled and are in or have gone through a refund window is
Across both concerts and festivals, since March the company has refunded
The company still has some shows in the process of rescheduling, or that are rescheduled but not yet offering refunds. In addition, refunds may occur in the future for additional cancellations or rescheduled events resulting from the global shutdown of our live events. Based on current and estimated future impacted events and fan behavior, we have recorded
Event-Related Deferred Revenue
The company's deferred revenue for events over the next 12 months was
(in millions) | |||
Current Deferred Revenue as of 9/30/2020 | $ | 1,362 | |
Shift from long-term deferred revenue to current deferred revenue | 67 | ||
Adjustment to estimated additional future refunds from Live Nation-held cash | (30) | ||
Currency impacts | 44 | ||
Ticket sales in the fourth quarter of 2020 | 98 | ||
Other / Net | (9) | ||
Current Deferred Revenue as of 12/31/2020 | $ | 1,532 | |
In addition, the company had approximately
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SOURCE Live Nation Entertainment
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