RESULTS AND OUTLOOK REFLECT STRONG GLOBAL DEMAND FOR LIVE EXPERIENCES
2022 FINANCIAL OVERVIEW (reported FX, vs 2019): Record Results Reflect Incredible Fan Demand
• Revenue Up 44% to $16.7 Billion
• Operating Income Up 125% to $732 Million
• AOI Up 49% to Over $1.4 Billion
• Operating Free Cash Flow Up 3.9x to $1.8 Billion
• Adjusted Free Cash Flow Up 94% to $967 Million, Converting 69% of AOI
2022 OPERATIONAL HIGHLIGHTS (vs 2019): Record Attendance, Gross Transaction Value, and Sponsorship Activity
• Investment in Artists Up 45% to Over $9.6 Billion as Live Nation Continues to Be The Largest Financial Supporter of Musicians
• Highest Live Nation Concert Attendance – Up 24% With Over 121 Million Fans Attending 43,600 Events
• Ancillary Per Fan Spending Growth Continues, Up At Least 20% Across All Major Venue Types – Amphitheaters, Festivals, Clubs and Theaters
• Ticketing Fee-Bearing Gross Transaction Value Up 54% to $27.5 Billion
• Sponsorship Revenue Reaches Roughly $1 Billion, Up 64%
2023 OUTLOOK (as of mid-February, vs 2022): Positioned For Ongoing Growth, As Fans Continue To Prioritize Concerts
• Event-Related Deferred Revenue Starts Year at $2.7 Billion, Up $400 Million
• Concert Ticket Sales Are Over 50 Million, Up 20% With International Up 25%
• Ticketing Fee-Bearing Gross Transaction Value Up 33% to $9.8 Billion
• 2023 Committed Sponsorship Up Double-Digits, With Over 70% of 2023 Revenue Committed
Live Nation Entertainment, Inc. (NYSE: LYV) today released financial
results for the quarter and full year ended December 31,
2022.
In 2022, we saw fans around
the world continue to prioritize their spending on attending live events,
particularly concerts. Our research
consistently tells us that concerts are a top priority for discretionary
spending, and one of the last experiences fans will cut back on – and we are
seeing this play out in both our results for 2022 and early indicators for
2023.
With this strong demand, last
year in the concert business we had 121 million fans attend our shows across 45
countries, while in ticketing, we helped connect 550 million fans with their
favorite artists, teams and other performers.
In both cases, the majority of our growth came from international
markets, further reinforcing the global nature of untapped fan demand and the
opportunities we have for growth, as we help artists reach more fans with their
live music.
Record Attendance at Concerts
In concerts, despite many
markets still closed for part of last year, we grew attendance by 24% vs 2019
to 121 million fans at 44 thousand events, which drove revenue up 43% vs 2019
to $13.5 billion. This growth came from
all markets and venue types – every venue type from clubs and theaters to
stadiums to festivals had double-digit attendance growth vs 2019.
We invested $9.6 billion in
putting on artists’ shows in 2022, working with the largest superstars to
artists just getting started, and all those in-between. This is up 45% from 2019 and further
reinforces our role as the largest contributor to artist income. As part of this, we helped shift $700 million
to artists with more market value ticket pricing – even as the entry price to a
show stayed below $35 in the U.S. Typically
90% of ticket sales for Live Nation shows go to artists – this is particularly
important as artists are increasingly reliant on touring as they get much
smaller revenue shares from other music revenue streams.
Part of our fan growth
continues to come from venues we operate globally – hosting almost 50 million
fans in 2022, with international markets again delivering the majority of our
growth. At Venue Nation, we continued
our focus on elevating the fan experience and providing a range of options for
enhanced products and services. As a
result, last year we grew our average revenue per fan by over 20% vs 2019 at
all venue types.
Performance of Ticketing Reflects Tremendous Fan Demand
In ticketing, our strategy
for success is simple: We focus on developing the leading software for venues.
To ensure we deliver the best enterprise platform, we invest tens of millions
of dollars every year to continue innovating every aspect of ticketing
technology and products. Artists are the
venue’s largest clients, and we are regularly being asked to create new
products to help address their ticketing needs.
Amongst our innovations are
products such as Verified Fan, designed to help artists cut down resale, and we
have seen this used for our 400 tours including recent onsales for Beyonce,
Madonna and Morgan Wallen. Generally,
Verified Fan onsales have approximately 5% of inventory end up on resale sites
vs 20-30% that is typical for non-Verified Fan onsales. Venues and their artist clients see the
result in their ticket sales, which is a large part why so many venues choose
to work with us.
Looking at our 2022
results: We grew our fee-bearing ticket
volume by 28% from 2019 to 280 million, which in turn drove our fee-bearing GTV
up by over 50% vs 2019 to $28 billion across 38 countries. As a result, our ticketing revenue was $2.2
billion, up 45% vs 2019. Along with
these results for the year, we signed 23 million net new tickets in 2022, 70%
of which were with international clients, setting the stage for continued
global growth.
Sponsorship Reaches Approximately $1 Billion in Revenue
In our sponsorship business,
we have seen that brands are as eager as fans to re-engage with our
platforms. In 2022, we had 120 large
strategic sponsors globally across our business, 32% more than we had in 2019,
including brands such as PayPal, GoPuff, Hulu and Snap. These large partners drove over 80% of our
revenue growth, with overall revenue up 64% to $1 billion. As with concerts and ticketing, our
international markets led this growth, with international sponsorship up over
70% vs 2019.
Looking Ahead to 2023
As we now have
many of our 2023 shows on sale, we continue to see very strong consumer demand
globally, with no sign of any slowdown.
We have four key leading indicators at this time of the year, all
pointing toward another record year and even greater success in 2023.
First, our
deferred revenue at the end of 2022 was $2.7 billion, up 125% from 2019 and up
18% from 2021 which benefited from a high volume of rescheduled shows. Next, as of mid-February, ticket sales for
our shows this year exceed 50 million fans, up 20% from this point last year,
with international growth at 25%. Then, our global ticketing fee-bearing gross
transaction value is up 33% to $9.8 billion through the same period. Finally, over 70% of our planned sponsorship
activity for the year is confirmed, again up double-digits relative to this
time last year.
Regulatory Environment and Reforms
On the regulatory front: The ticketing industry is
more competitive than ever, and our market share has gone down, not up, since
the Ticketmaster merger. Because of the
competitive bidding process, venues regularly take more of the economics on
every renewal, as they set and keep a majority of the service fees. Since signing the extended consent decree
related to the Ticketmaster merger, we remain in constant conversation with the
Department of Justice’s monitors, and do not believe there have been any
violations.
On ticketing reforms: We believe that greater
transparency on the entire ticketing ecosystem will improve the industry, and
we have been engaging with policymakers to advocate for reforms. The biggest challenge facing the industry is
chaos at the onsale, where fans cannot get the tickets at the price the artist
sets, yet they see pages of secondary sites with tickets 5 times face value because
of scalpers. This has been a big topic
in the industry and conversations at the Pollstar Live conference this week
focused on how to protect the connection between artists and their fans.
To help drive
progress, we have launched the FAIR Ticketing Act, which says:
Artists should decide resale rules in order to protect their ability to use face-value exchanges and limited transfer to keep pricing lower for fans, and prevent scalpers from exploiting fans.Selling speculative tickets should be illegal so scalpers cannot use deceptive tactics to trick fans into spending more or buying tickets the seller does not actually have.The scope of the BOTS Act needs to be expanded and enforced to deter those who break the law, cheating artists and fans in the process. And there needs to be industry-wide all-in pricing so fans see the full cost they are paying up front.
Artists create their music and their concerts. It’s only fair that they create their ticketing rules, too. We will always be on the side of the artist, who are the best advocates for their careers and their fan base.
Michael Rapino
President and Chief Executive Officer
Live Nation Entertainment, Inc.
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 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 2022 Reported
Q4 2021 Reported
Growth
Q4 2022 Constant Currency
Growth at Constant Currency
Revenue
Concerts
$ 3,395.9
$ 2,044.2
66%
$ 3,545.2
73%
Ticketing
651.3
487.7
34%
669.8
37%
Sponsorship
& Advertising
245.6
170.3
44%
251.5
48%
Other and
Eliminations
(2.2)
1.0
*
(2.2)
*
$ 4,290.6
$ 2,703.2
59%
$ 4,464.3
65%
Consolidated
Operating Income (Loss)
$ (119.9)
$ (124.5)
4%
$ (116.0)
7%
Adjusted
Operating Income (Loss)
Concerts
$ (184.8)
$ (122.3)
(51%)
$ (180.7)
(48%)
Ticketing
227.7
212.1
7%
228.9
8%
Sponsorship
& Advertising
117.7
114.5
3%
122.5
7%
Other and
Eliminations
(4.7)
(2.3)
*
(4.7)
*
Corporate
(58.1)
(41.7)
(39) %
(58.1)
(39) %
$ 97.8
$ 160.3
(39%)
$ 107.9
(33%)
* Percentages are not
meaningful
FINANCIAL HIGHLIGHTS – 12
MONTHS
(unaudited;
$ in millions)
12 Months 2022 Reported
12 Months 2021 Reported
Growth
12 Months 2022 Constant Currency
Growth at Constant Currency
Revenue
Concerts
$ 13,494.1
$ 4,722.2
*
$ 14,020.2
*
Ticketing
2,238.6
1,134.3
97%
2,291.9
*
Sponsorship
& Advertising
968.1
411.9
*
999.4
*
Other and
Eliminations
(19.6)
0.1
*
(19.6)
*
$ 16,681.2
$ 6,268.5
*
$ 17,291.9
*
Consolidated
Operating Income (Loss)
$ 732.1
$ (417.9)
*
$ 772.0
*
Adjusted
Operating Income (Loss)
Concerts
$ 169.7
$ (221.3)
*
$ 191.7
*
Ticketing
827.9
420.5
97%
839.0
100%
Sponsorship
& Advertising
592.0
242.2
*
616.1
*
Other and
Eliminations
(14.5)
(6.9)
*
(14.5)
*
Corporate
(167.9)
(110.6)
(52) %
(167.9)
(52) %
$ 1,407.2
$ 323.9
*
$ 1,464.4
*
* Percentages are not
meaningful
Reconciliation of Adjusted
Operating Income to Operating Income (Loss) (Unaudited)
Q4 2022
Q4 2021
12 Months 2022
12 Months 2021
(in millions)
Adjusted Operating Income
$ 97.8
$ 160.3
$ 1,407.2
$ 323.9
Acquisition expenses
38.9
28.1
68.2
43.0
Amortization of non-recoupable ticketing contract advance
22.9
25.2
79.0
74.4
Depreciation and amortization
131.5
102.5
450.0
416.3
Gain on sale of operating assets
0.5
(0.2)
(32.1)
(1.2)
Stock-based compensation expense
23.9
129.2
110.0
209.3
Operating
income (loss)
$ (119.9)
$ (124.5)
$ 732.1
$ (417.9)
KEY
OPERATING METRICS
(unaudited)
2022
2021
2020
(in thousands except estimated events)
Concerts (1)
Estimated events:
North America
29,169
12,004
5,270
International
14,475
5,408
2,847
Total estimated events
43,644
17,412
8,117
Estimated fans:
North America
69,693
26,330
6,075
International
51,459
8,935
5,067
Total estimated fans
121,152
35,265
11,142
Ticketing (2)
Estimated number of fee-bearing
tickets
280,861
131,685
31,101
Estimated number of
non-fee-bearing tickets
269,814
145,047
88,823
Total estimated tickets sold
550,675
276,732
119,924
_________
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.
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. Fee-bearing tickets sold above are net of refunds of 19.7 million and 21.0 million
for years ended December 31, 2022 and 2021, respectively.
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 2022
Q4 2021
Net cash
provided by operating activities
$ 903.7
$ 755.9
Less: Changes in operating assets and liabilities (working
capital)
(844.3)
(682.2)
Free cash flow from earnings
$ 59.4
$ 73.7
Less: Maintenance capital expenditures
(70.2)
(30.9)
Distributions to noncontrolling interests
(18.8)
(26.8)
Free cash flow
— adjusted
$ (29.6)
$ 16.0
Net cash used
in investing activities
$ (425.0)
$ (455.2)
Net cash provided by (used in) financing
activities
$ 31.9
$ (51.0)
($ in millions)
2022
2021
Net cash
provided by operating activities
$ 1,832.1
$ 1,780.6
Less: Changes in operating assets and liabilities (working
capital)
(637.9)
(1,774.0)
Free cash flow from earnings
$ 1,194.2
$ 6.6
Less: Maintenance capital expenditures
(127.0)
(68.1)
Distributions to noncontrolling interests
(100.7)
(52.4)
Free cash flow
— adjusted
$ 966.5
$ (113.9)
Net cash used
in investing activities
$ (784.7)
$ (567.0)
Net cash provided by (used in)
financing activities
$ (143.3)
$ 1,171.3
Reconciliation of Free Cash
to Cash and Cash Equivalents
($ in millions)
December 31,
2022
Cash and cash equivalents
$ 5,606.5
Client cash
(1,532.8)
Deferred revenue — event-related
(2,731.8)
Accrued artist fees
(129.7)
Collections on behalf of others
(53.9)
Prepaid expenses — event-related
606.2
Free cash
$ 1,764.5
As of December 31, 2022, total cash and cash equivalents were $5.6 billion, which includes $1.5 billion in ticketing client cash and $1.8 billion in free cash. This free cash, along with $565.9 million of available debt capacity, gives the
company $2.3 billion of available
liquidity. The company believes this level of liquidity will provide its needs
to fund operations and future investment opportunities.The company expects capital
expenditures to be approximately $450 million
in 2023 as we continue catching up on projects delayed due to supply chain
constraints and further expand our global platform.
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 company’s position for
ongoing growth, the global nature of untapped fan demand and the opportunities
the company has for growth; the strength of consumer demand globally for
concerts with no indications of any slowdown; the company’s belief that greater
transparency on the entire ticketing ecosystem will reinforce the positive
roles Live Nation and Ticketmaster play to support artists, venues, and other
event organizers; the company’s four leading indicators pointing toward another
record year and even greater success in 2023; the company’s belief that its
current level of liquidity will provide its needs to fund operations and future
investment opportunities; and the company’s current expectations for capital
expenditures for 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 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 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,
2022
December 31,
2021
(in thousands, except share data)
ASSETS
Current assets
Cash and cash
equivalents
$ 5,606,457
$ 4,884,729
Accounts
receivable, less allowance of $63,294 and $50,491, respectively
1,465,383
1,066,573
Prepaid expenses
949,826
654,894
Restricted cash
5,917
3,063
Other current
assets
131,939
74,834
Total current
assets
8,159,522
6,684,093
Property, plant and equipment, net
1,487,663
1,091,929
Operating lease assets
1,571,395
1,538,911
Intangible assets
Definite-lived
intangible assets, net
1,050,622
1,026,338
Indefinite-lived
intangible assets, net
368,712
369,028
Goodwill
2,529,380
2,590,869
Long-term advances
568,558
552,697
Other long-term assets
724,989
548,453
Total assets
$ 16,460,841
$ 14,402,318
LIABILITIES AND EQUITY
Current liabilities
Accounts
payable, client accounts
$ 1,791,025
$ 1,532,345
Accounts payable
180,076
110,623
Accrued expenses
2,368,434
1,645,906
Deferred revenue
3,134,800
2,774,792
Current portion
of long-term debt, net
620,032
585,254
Current portion
of operating lease liabilities
140,232
123,715
Other current
liabilities
68,716
83,087
Total current
liabilities
8,303,315
6,855,722
Long-term debt, net
5,283,467
5,145,484
Long-term operating lease liabilities
1,654,525
1,606,064
Other long-term liabilities
455,971
431,581
Commitments and contingent liabilities
Redeemable noncontrolling interests
669,766
551,921
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; 231,671,647 and 225,082,603 shares issued and 231,263,623 and
224,674,579 shares outstanding in 2022 and 2021, respectively
2,285
2,220
Additional
paid-in capital
2,698,316
2,897,695
Accumulated
deficit
(2,971,229)
(3,327,737)
Cost of shares
held in treasury
(6,865)
(6,865)
Accumulated
other comprehensive loss
(90,076)
(147,964)
Total Live
Nation stockholders’ equity
(367,569)
(582,651)
Noncontrolling interests
461,366
394,197
Total equity
93,797
(188,454)
Total liabilities and equity
$ 16,460,841
$ 14,402,318
LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
2022
2021
2020
(in thousands, except share and per share data)
Revenue
$ 16,681,254
$ 6,268,447
$ 1,861,178
Operating expenses:
Direct operating expenses
12,337,524
4,355,989
1,402,400
Selling, general and administrative expenses
2,955,884
1,754,822
1,524,342
Depreciation and amortization
449,976
416,277
485,025
Loss (gain) on disposal of operating assets
(32,082)
(1,211)
503
Corporate expenses
237,834
160,428
102,100
Operating income (loss)
732,118
(417,858)
(1,653,192)
Interest expense
278,483
282,440
226,832
Interest income
(77,620)
(6,625)
(11,737)
Equity in losses (earnings) of nonconsolidated affiliates
(10,571)
(2,520)
5,458
Loss (gain) from sale of investments in nonconsolidated
affiliates
(448)
(83,578)
1,727
Other expense (income), net
36,827
3,692
(18,807)
Income (loss) before income taxes
505,447
(611,267)
(1,856,665)
Income tax expense (benefit)
96,254
(2,481)
(28,875)
Net income (loss)
409,193
(608,786)
(1,827,790)
Net income (loss) attributable to noncontrolling interests
113,207
42,118
(103,255)
Net income (loss) attributable to common stockholders of
Live Nation
$ 295,986
$ (650,904)
$ (1,724,535)
Basic net income (loss) per common share available to
common stockholders of Live Nation
$ 0.66
$ (3.09)
$ (8.12)
Diluted net income (loss) per common share available to
common stockholders of Live Nation
$ 0.64
$ (3.09)
$ (8.12)
Weighted average common shares outstanding:
Basic
224,809,558
217,190,862
212,270,944
Diluted
231,556,866
217,190,862
212,270,944
Reconciliation to net income (loss) available to common
stockholders of Live Nation:
Net income (loss) attributable to common stockholders of
Live Nation
$ 295,986
$ (650,904)
$ (1,724,535)
Accretion of redeemable noncontrolling interests
(146,770)
(19,771)
1,180
Net income (loss) available to common stockholders of Live
Nation—basic and diluted
$ 149,216
$ (670,675)
$ (1,723,355)
LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2022
2021
2020
(in thousands)
CASH FLOWS FROM
OPERATING ACTIVITIES
Net income (loss)
$ 409,193
$ (608,786)
$ (1,827,790)
Reconciling items:
Depreciation
225,770
222,840
245,713
Amortization
224,206
193,437
239,312
Amortization of non-recoupable ticketing contract advances
79,043
74,406
47,971
Deferred income tax benefit
7,199
(9,639)
(37,877)
Amortization of debt issuance costs and discounts
16,448
37,260
32,774
Provision for uncollectible accounts receivable
68,612
(17,826)
43,076
Stock-based compensation expense
110,049
209,337
116,889
Unrealized changes in fair value of contingent
consideration
56,704
(6,732)
(24,448)
Equity in losses of nonconsolidated affiliates, net of
distributions
14,912
11,189
18,280
Loss (gain) on sale of investments in nonconsolidated
affiliates
1,357
(83,578)
1,727
Other, net
(19,283)
(15,333)
(18,472)
Changes in operating assets and liabilities, net of
effects of acquisitions and dispositions:
Decrease (increase) in accounts receivable
(463,977)
(485,211)
490,588
Decrease (increase) in prepaid expenses and other assets
(267,945)
95,533
141,631
Increase (decrease) in accounts payable, accrued expenses
and other liabilities
1,002,158
1,315,722
(1,379,461)
Increase in deferred revenue
367,617
847,949
826,699
Net cash provided by (used in) operating activities
1,832,063
1,780,568
(1,083,388)
CASH FLOWS FROM
INVESTING ACTIVITIES
Advances of notes receivable
(115,992)
(28,899)
(56,957)
Collections of notes receivable
20,527
23,835
80,963
Investments made in nonconsolidated affiliates
(91,186)
(110,589)
(11,242)
Purchases of property, plant and equipment
(347,206)
(152,734)
(213,746)
Cash paid for acquisitions, net of cash acquired
(257,191)
(384,251)
(41,083)
Purchases of intangible assets
(6,080)
(7,100)
(8,863)
Proceeds from sale of investments in nonconsolidated
affiliates
3,863
90,432
19,003
Other, net
8,574
2,344
7,863
Net cash used in investing activities
(784,691)
(566,962)
(224,062)
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from long-term debt, net of debt issuance costs
122,251
903,827
1,607,365
Payments on long-term debt
(45,792)
(109,705)
(30,987)
Contributions from noncontrolling interests
15,021
22,026
5,418
Distributions to noncontrolling interests
(100,660)
(52,368)
(41,624)
Purchases and sales of noncontrolling interests, net
(48,306)
(9,638)
(106,242)
Proceeds from sale of common stock, net of issuance costs
—
449,630
—
Proceeds from exercise of stock options
35,775
30,618
30,647
Taxes paid for net share settlement of equity awards
(76,925)
(45,845)
(47,539)
Payments for deferred and contingent consideration
(44,220)
(17,319)
(66,992)
Other, net
(484)
106
36
Net cash provided by (used in) financing activities
(143,340)
1,171,332
1,350,082
Effect of exchange rate changes on cash, cash equivalents
and restricted cash
(179,450)
(43,585)
29,565
Net increase in cash, cash equivalents, and restricted
cash
724,582
2,341,353
72,197
Cash, cash equivalents and restricted cash at beginning of
period
4,887,792
2,546,439
2,474,242
Cash,
cash equivalents and restricted cash at end of period
$ 5,612,374
$ 4,887,792
$ 2,546,439
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