Live Nation Entertainment Reports Fourth Quarter and Full Year 2010 Financial Results

Live Nation Entertainment Reports Fourth Quarter and Full Year 2010 Financial Results

LOS ANGELES, Feb. 28, 2011 /PRNewswire/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three months and year ended December 31, 2010 today.

(Logo: http://photos.prnewswire.com/prnh/20100603/LA14899LOGO)

"During the past year, we completed the merger and integration of the world's leading live entertainment, ticketing and artist management businesses," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. "We have entered 2011 with the strategic benefit of our combined operations focused on executing our plan to maximize ticket sales and improve our operating performance. Our investment priorities center on further building on the value proposition of Ticketmaster.com, one of the world's top five eCommerce sites. We are focused on increasing online ticketing conversion, growing our online advertising business and building out our fan database and CRM resources. While the macro-environment remains challenging given pressure on the consumer, we are encouraged with overall year-to-date ticket sales trends. In addition, the pipeline of artists planning to tour this year is strong and we are taking steps to better price and promote our shows, while carefully managing our costs."

The company will host a teleconference today, February 28, 2011 at 5:00 p.m. Eastern Time, which can be accessed by dialing 888-603-6873 (U.S.) or 973-321-1019 (Int'l) and referencing passcode 40285197. To access the call via webcast, please visit the Investor Relations section of the company's website at www.livenation.com/investors. Please visit the website approximately ten minutes prior to the start time to ensure a connection. Additional statistical and financial information to be provided on the call, if any, will be posted supplementally under that same link. For those who are not available to listen to the live broadcast, a replay will be available shortly after the call on the Live Nation website through March 7, 2011.

Live Nation Entertainment Combined Metrics

In order to give comparable information, metrics below include the results of the legacy Ticketmaster operations, as applicable, for the three months and from the date of the merger (January 25) through December 31 for each of 2010 and 2009.

COMBINED METRICS

(Unaudited)
-----------
Key Drivers Q4 2010 Q4 2009 Variance
------- ------- --------
(Qtr.)
------
CONCERTS
--------
Total Attendance (rounded, est.) 11,497,000 12,439,000 (7.6%)
Total NA Amps Attendance (rounded,
est.) 384,000 412,000 (6.8%)
Total Intl Festival Attendance
(rounded, est.) 36,000 36,000 -
Ancillary Net Revenue per Attendee
-NA Amps $* $* *
Ancillary Net Revenue per Attendee
-Intl Festivals $* $* *
---------------------------------- --- --- ---
SPONSORSHIP/ONLINE
------------------
Online Advertising Revenue (in
millions) $13.8 $12.8 7.8%
Average Revenue per Sponsor
(rounded, whole $) $40,000 $34,000 17.6%
--------------------------- ------- ------- ----

(Unaudited)
-----------
Key Drivers 2010 2009 Variance
---- --- --------
(YTD)
-----
CONCERTS
--------
Total Attendance
(rounded, est.) 47,262,000 52,148,000 (9.4%)
Total NA Amps
Attendance (rounded,
est.) 9,430,000 10,056,000 (6.2%)
Total Intl Festival
Attendance (rounded,
est.) 1,286,000 1,130,000 13.8%
Ancillary Net Revenue
per Attendee -NA Amps $17.57 $17.96 (2.2%)
Ancillary Net Revenue
per Attendee -Intl
Festivals $15.95 $14.81 7.7%
--------------------- ------ ------ ---
SPONSORSHIP/ONLINE
------------------
Online Advertising
Revenue (in millions) $40.5 $36.4 11.3%
Average Revenue per
Sponsor (rounded,
whole $) $204,000 $188,000 8.5%
------------------- -------- -------- ---

*not meaningful due to low activity during the period

TICKETING

(Unaudited; tickets in thousands)
---------------------------------
Primary Ticketing Volume by Category Q4 2010 Q4 2009 Variance
------------------------------------ ------- ------- --------
Ticket Ticket (Qtr.)
------ ------ ------
Volume Volume
------ ------
Totals Totals
------ ------
Concerts 17,106 17,749 (3.6%)
Sports 5,338 5,088 4.9%
Arts & Theater 5,948 6,248 (4.8%)
Family 4,177 3,921 6.5%
Other (1) 1,314 1,369 (4.0%)
--------- ----- ----- ------
Total 33,883 34,375 (1.4%)
----- ------ ------ ------

(Unaudited; tickets in thousands)
---------------------------------
Primary Ticketing Volume by Category FY 2010 FY 2009 Variance
------------------------------------ ------- ------- --------
Ticket Ticket (YTD)
------ ------ -----
Volume Volume
------ ------
Totals Totals
------ ------
Concerts 63,428 70,619 (10.2%)
Sports 22,094 22,378 (1.3%)
Arts & Theater 18,559 21,023 (11.7%)
Family 11,409 11,378 0.3%
Other (1) 4,408 4,362 1.1%
--------- ----- ----- ---
Total 119,898 129,760 (7.6%)
----- ------- ------- ------

(1) Other category includes tickets for comedy shows, parking, audio
and facility tours, donations, lectures and seminars.

In order to give comparable information, the combined results of operations below include the results of the legacy Ticketmaster operations for the three months and from the date of the merger (January 25) through December 31 for each of 2010 and 2009. As reported 2009 includes only Live Nation operations as reported in 2009.

FINANCIAL HIGHLIGHTS - 4th QUARTER and FULL YEAR
------------------------------------------------
(Unaudited; $ in millions)
--------------------------

COMBINED
Q4 2010 Q4 2009 Growth
------- ------- ------

Revenue
Concerts $790.3 $752.7 5.0%
Ticketing 305.2 332.2 (8.1%)
Artist Nation 93.0 120.5 (22.8%)
eCommerce 25.1 28.4 (11.6%)
Sponsorship 32.1 29.1 10.3%
Other & Eliminations (7.9) 0.2 **
---- --- ---
$1,237.8 $1,263.1 (2.0%)
======== ======== ======

Adjusted Operating
Income (Loss)
Concerts $(28.3) $(1.2) **
Ticketing 56.3 57.8 (2.6%)
Artist Nation 14.0 22.2 (36.9%)
eCommerce 11.8 13.5 (12.6%)
Sponsorship 20.0 15.6 28.2%
Other & Eliminations 0.1 0.1 -
Corporate (17.1) (20.8) 17.8%
----- ----- ----
$56.8 $87.2 (34.9%)
===== ===== =======

Operating Income (Loss)
Concerts $(90.1) $(49.4) (82.4%)
Ticketing 4.2 35.8 **
Artist Nation 0.3 3.5 **
eCommerce 9.7 10.8 (10.2%)
Sponsorship 19.9 15.5 28.4%
Other & Eliminations (1.0) 0.1 **
Corporate (22.6) (25.5) 11.4%
----- ----- ----
$(79.6) $(9.2) **
====== ===== ===

Acquisition Expenses $6.5 $20.5
---- -----
$(86.1) $(29.7)
====== ======

COMBINED
FY FY Growth
--- --- ------
2010 2009
--- ---

Revenue
Concerts $3,438.4 $3,704.3 (7.2%)
Ticketing 1,039.9 1,188.6 (12.5%)
Artist Nation 362.2 452.8 (20.0%)
eCommerce 87.9 89.6 (1.9%)
Sponsorship 161.7 162.4 (0.4%)
Other & Eliminations (26.4) (13.6) **
----- ----- ---
$5,063.7 $5,584.1 (9.3%)
======== ======== ======

Adjusted Operating
Income (Loss)
Concerts $15.4 $99.8 (84.1%)
Ticketing 231.3 215.4 7.4%
Artist Nation 46.5 64.1 (27.5%)
eCommerce 36.2 38.7 (6.5%)
Sponsorship 108.1 97.0 11.4%
Other & Eliminations (0.3) 1.1 **
Corporate (74.4) (87.7) 15.2%
----- ----- ----
$362.8 $428.4 (15.3%)
====== ====== =======

Operating Income (Loss)
Concerts $(130.5) $(44.7) **
Ticketing 82.6 122.5 (32.6%)
Artist Nation (5.2) 1.2 **
eCommerce 28.4 29.4 (3.4%)
Sponsorship 107.4 96.7 11.1%
Other & Eliminations 0.3 0.8 (62.5%)
Corporate (103.8) (102.7) (1.1%)
------ ------ ------
$(20.8) $103.2 **
====== ====== ===

Acquisition Expenses $42.9 $63.5
----- -----
$(63.7) $39.7
====== =====

AS REPORTED 2009
Q4 2009 FY
------- ---
2009
----

Revenue
Concerts $752.7 $3,704.3
Ticketing 9.7 61.6
Artist Nation 57.8 251.5
eCommerce 5.2 16.2
Sponsorship 28.7 161.0
Other & Eliminations 0.2 (13.6)
--- -----
$854.3 $4,181.0
====== ========

Adjusted Operating
Income (Loss)
Concerts $(1.2) $99.8
Ticketing (1.1) 9.5
Artist Nation 4.7 12.9
eCommerce (0.5) (4.3)
Sponsorship 15.4 95.9
Other & Eliminations - 0.9
Corporate (13.8) (50.2)
----- -----
$3.5 $164.5
==== ======

Operating Income (Loss)
Concerts $(49.4) $(44.7)
Ticketing (3.7) (1.1)
Artist Nation 1.6 2.6
eCommerce (1.9) (9.7)
Sponsorship 15.2 95.6
Other & Eliminations - 0.6
Corporate (16.7) (59.7)
----- -----
$(54.9) $(16.4)
====== ======

Acquisition Expenses $9.5 $36.0
---- -----
$(64.4) $(52.4)
====== ======

** percentages are not meaningful

Free cash as of December 31, 2010 was $369.2 million. Free cash flow was ($12.9) million for the fourth quarter of 2010 as compared to $22.7 million on a combined basis for the same period in 2009, and $164.8 million for the year ended December 31, 2010 as compared to $185.8 million on a combined basis for the same period of last year.

About Live Nation Entertainment:

Live Nation Entertainment is the world's leading live entertainment and eCommerce company, comprised of four market leaders: Ticketmaster.com, Live Nation Concerts, Front Line Management Group and Live Nation Network. Ticketmaster.com is the global event ticketing leader and one of the world's top five eCommerce sites, with over 26 million monthly unique visitors. Live Nation Concerts produces over 20,000 shows annually for more than 2,000 artists globally. Front Line is the world's top artist management company, representing over 250 artists. These businesses power Live Nation Network, the leading provider of entertainment marketing solutions, enabling nearly 800 advertisers to tap into the 200 million consumers Live Nation delivers annually through its live event and digital platforms. For additional information, visit www.livenation.com/investors.

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31,
-----------------------

2010 2009 2008
--- ---- ----
(in thousands except share and per
share data)
Revenue $5,063,748 $4,181,021 $4,085,306
Operating expenses:
Direct operating expenses 3,658,310 3,357,245 3,299,444
Selling, general and
administrative expenses 1,014,491 617,709 618,577
Depreciation and
amortization 321,666 158,118 140,039
Goodwill impairment - 9,085 269,902
Loss (gain) on sale of
operating assets 374 (2,983) 1,131
Corporate expenses 110,252 58,160 53,506
Acquisition transaction
expenses 22,355 36,043 -
------ ------ ---

Operating loss (63,700) (52,356) (297,293)

Interest expense 116,527 66,365 70,104
Loss on extinguishment of
debt 21,315 - -
Interest income (3,771) (2,193) (8,575)
Equity in earnings of
nonconsolidated affiliates (4,928) (1,851) (842)
Other expense (income)-net (4,189) 1 (245)
------ --- ----

Loss from continuing
operations before income
taxes (188,654) (114,678) (357,735)
Income tax expense
(benefit):
Current 40,175 19,584 (28,355)
Deferred (25,021) (8,251) 4,098

Loss from continuing
operations (203,808) (126,011) (333,478)
Income (loss) from
discontinued operations,
net of tax (4,228) 76,277 95,653

Net loss (208,036) (49,734) (237,825)
Net income attributable to
noncontrolling interests 20,354 10,445 1,587
------ -----
Net loss attributable to
Live Nation Entertainment,
Inc $(228,390) $(60,179) $(239,412)
========= ======== =========

Basic and diluted net loss
per common share
attributable to common
stockholders:
Loss from continuing
operations attributable to
Live Nation Entertainment,
Inc $(1.36) $(1.65) $(4.39)
Income (loss) from
discontinued operations
attributable to Live
Nation Entertainment, Inc (0.03) 0.92 1.25

Net loss attributable to
Live Nation Entertainment,
Inc $(1.39) $(0.73) $(3.14)
====== ====== ======

Weighted average common
shares outstanding:

Basic 164,410,167 82,652,366 76,228,275
Diluted 164,410,167 82,652,366 76,228,275

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS

December 31,
------------
2010 2009
---- ----
(in thousands except
share data)
ASSETS
Current assets
Cash and cash equivalents $892,758 $236,955
Accounts receivable, less allowance of
$10,898 in 2010 and $8,230 in 2009 329,947 176,179
Prepaid expenses 348,309 277,599
Other current assets 32,483 27,133
------ ------
Total current assets 1,603,497 717,866
Property, plant and equipment
Land, buildings and improvements 850,124 875,958
Computer equipment and capitalized
software 218,294 131,875
Furniture and other equipment 168,508 156,756
Construction in progress 24,528 17,398
------ ------

1,261,454 1,181,987
Less accumulated depreciation 524,390 432,003
------- -------

737,064 749,984
Intangible assets
Definite-lived intangible assets-net 997,268 442,641
Indefinite-lived intangible assets 375,214 28,248
Goodwill 1,226,416 204,672
Investments in nonconsolidated affiliates 30,077 2,077
Other long-term assets 226,024 196,271
------- -------

Total assets $5,195,560 $2,341,759
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable, client accounts $462,301 $-
Accounts payable 76,876 50,844
Accrued expenses 498,864 357,138
Deferred revenue 335,539 284,536
Current portion of long-term debt 54,150 41,032
Other current liabilities 46,491 18,684
------ ------

Total current liabilities 1,474,221 752,234

Long-term debt, net 1,677,714 699,037
Long-term deferred income taxes 219,143 30,480
Other long-term liabilities 215,273 94,567
Series A and Series B redeemable preferred
stock - 40,000

Redeemable noncontrolling interests 107,541 -

Stockholders' equity
Preferred stock-Series A Junior
Participating, $.01 par value; 20,000,000
shares authorized; no shares issued and
outstanding - -
Preferred stock, $.01 par value;
30,000,000 shares authorized; no shares
issued and outstanding - -
Common stock, $.01 par value; 450,000,000
shares authorized; 175,418,857 and
86,708,627 shares issued and outstanding
in 2010 and 2009, respectively 1,724 860
Additional paid-in capital 2,053,233 1,090,572
(433,785
Accumulated deficit (662,175) )
Cost of shares held in treasury (1,271,519
and 2,260,260 shares in 2010 and 2009,
respectively) (6,122) (9,529 )
Accumulated other comprehensive income
(loss) (22,244) 4,199
------- -----

Total Live Nation Entertainment, Inc.
stockholders' equity 1,364,416 652,317
Noncontrolling interests 137,252 73,124
------- ------
Total stockholders' equity 1,501,668 725,441
--------- -------
Total liabilities and stockholders' equity $5,195,560 $2,341,759
========== ==========

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,
-----------------------
2010 2009 2008
---- ---- ----
(in thousands)
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $(208,036) $(49,734) $(237,825)
Reconciling items:
Depreciation 135,573 98,108 86,059
Amortization of
intangibles 186,093 64,586 62,163
Goodwill impairment - 9,085 282,939
Impairment of operational
assets 13,373 - 16,035
Deferred income tax
expense (benefit) (25,021) (8,698) 3,601
Amortization of debt
issuance costs 4,682 4,224 3,616
Amortization of debt
discount/premium, net 6,755 8,811 7,995
Provision for
uncollectible accounts
receivable and advances 6,606 7,044 4,686
Non-cash loss on
extinguishment of debt
. 8,272 - -
Non-cash and stock-based
compensation expense 52,395 16,675 34,556
Unrealized changes in fair
value contingent
consideration 3,171 - -
Loss (gain) on sale of
operating assets 4,602 (64,237) (165,448)
Equity in earnings of
nonconsolidated
affiliates (4,928) (3,117) (720)
Changes in operating
assets and liabilities,
net of effects of
acquisitions and
dispositions:
Decrease (increase) in
accounts receivable (4,581) 27,608 (1,769)
Increase in prepaid
expenses (22,570) (57,918) (25,603)
Increase in other assets (41,686) (2,945) (108,163)
Increase (decrease) in
accounts payable, accrued
expenses and other
liabilities 386 (4,586) (53,739)
Increase in deferred
revenue 43,432 12,369 28,984
------ ------ ------
Net cash provided by (used
in) operating activities 158,518 57,275 (62,633)

CASH FLOWS FROM INVESTING
ACTIVITIES
Collections and advances
of notes receivable 475 140 334
Distributions from
nonconsolidated
affiliates 5,863 5,134 7,269
Investments made in
nonconsolidated
affiliates (884) (821) (250)
Purchases of property,
plant and equipment (75,578) (64,267) (186,217)
Proceeds from disposal of
operating assets, net of
cash divested 35,756 174,321 198,665
Cash paid for
acquisitions, net of cash
acquired 488,957 (9,707) (19,657)
Purchases of intangible
assets (1,790) (27,863) (65,460)
Decrease (increase) in
other-net 188 544 (1,577)
--- --- ------
Net cash provided by (used
in) investing activities 452,987 77,481 (66,893)

CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from long-term
debt, net of debt
issuance costs 1,352,856 602,741 420,327
Payments on long-term
debt (1,233,020) (705,795) (369,610)
Redemption of preferred
stock (40,000) - -
Contributions from
noncontrolling interest
partners 429 13 8,847
Distributions to and
purchases/sales from
noncontrolling interest
partners (21,625) (7,006) (3,042)
Proceeds from exercise of
stock options 8,640 - 636
Issuance of treasury stock - 1,553 5,454
Equity issuance costs (357) (2,667) -
Payments for purchases of
common stock (1,567) (5,803) (28,628)
Payments for deferred and
contingent consideration
. (16,270) (7,392) -
------- ------ ---

Net cash provided by (used
in) financing activities 49,086 (124,356) 33,984
Effect of exchange rate
changes on cash and cash
equivalents 4,788 26,895 (43,789)
----- ------ -------

Net increase (decrease) in
cash and cash equivalents 655,803 37,295 (139,331)
Cash and cash equivalents
at beginning of period 236,955 199,660 338,991
------- ------- -------
Cash and cash equivalents
at end of period $892,758 $236,955 $199,660
======== ======== ========

Forward-Looking Statements, Non-GAAP Financial Measures and Reconciliations:

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding plans to maximize ticket sales and improve operating performance; the company's current investment priorities; anticipated increases to online ticketing conversion; anticipated growth in the company's online advertising business and related resources; overall year-to-date ticket sales trends; the company's anticipated artist pipeline for 2011; and better pricing and promotion of events and cost management. 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, challenges related to the post-merger integration of Live Nation and Ticketmaster, the potential impact of the economic slowdown and operational challenges associated with selling tickets and staging events.

Live Nation refers you to the documents it files from time to time with the U.S. Securities and Exchange Commission, or SEC, specifically the section titled "Item 1A. Risk Factors" of the company's most recent Annual Report filed on Form 10-K and Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K, which contain and identify other important factors that could cause actual results to differ materially from those contained in the company's projections or forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date on which they are made. All subsequent written and oral forward-looking statements by or concerning Live Nation are expressly qualified in their entirety by the cautionary statements above. Live Nation does not undertake any obligation to publicly update or revise any forward-looking statements because of new information, future events or otherwise.

This press release contains certain non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided below.

Adjusted Operating Income (Loss), or AOI, is a non-GAAP financial measure that the company defines as operating income (loss) before acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration arrangements, merger bonuses, payments under the Azoff Trust note and merger-related severance), depreciation and amortization (including goodwill impairments), loss (gain) on sale of operating assets and non-cash and certain stock-based compensation expense (including expense associated with grants of certain stock-based awards which are classified as liabilities). The company uses AOI to evaluate the performance of its operating segments. The company believes that information about AOI assists investors by allowing them to evaluate changes in the operating results of the portfolio of the businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in the company's business. Accordingly, AOI should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash Flow is a non-GAAP financial measure that the company defines as Adjusted Operating Income (Loss) less maintenance capital expenditures, less net cash interest expense, less cash taxes, less net distributions to minority interest partners, plus distributions from investments in nonconsolidated affiliates net of contributions to investments in nonconsolidated affiliates. The company uses free cash flow, among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than maintenance capital expenditures. The company believes that information about free cash flow provides investors with an important perspective on the cash available to service debt and make acquisitions. Free cash flow is not calculated or presented in accordance with GAAP. A limitation of the use of free cash flow as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of the company's ability to fund its cash needs. Accordingly, free cash flow should be considered in addition to, and not as a substitute for, operating income (loss) and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash flow as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash is a non-GAAP financial measure that the company defines as cash and cash equivalents less ticketing-related client funds, less event-related deferred revenue, less accrued expenses due to artists and for cash collected on behalf of others for ticket sales, plus event-related prepaids. The company uses free cash as a proxy for how much cash it has available to, among other things, optionally repay debt balances, make acquisitions and finance venue and other revenue generating capital expenditures. Free cash is not calculated or presented in accordance with GAAP. A limitation of the use of free cash as a performance measure is that it does not necessarily represent funds available from operations and it is not necessarily a measure of our ability to fund our cash needs. Accordingly, free cash should be considered in addition to, and not as a substitute for, cash and cash equivalents and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash as presented herein may not be comparable to similarly titled measures of other companies.

Reconciliations of Non-GAAP Measures to Their Most Directly
Comparable GAAP Measures (Unaudited)

COMBINED RESULTS
----------------
Reconciliation of Adjusted Operating Income (Loss) to Operating
Income (Loss)
---------------------------------------------------------------

Non-cash
Adjusted and stock- Loss (gain)
operating based on sale of
income compensation operating
(loss) expense assets

Three months ended December 31, 2010
------------------------------------

Concerts $(28.3) $5.4 $(2.8)
Ticketing 56.3 1.3 -
Artist Nation 14.0 3.0 -
eCommerce 11.8 (0.1) -
Sponsorship 20.0 - -
Other &
Eliminations 0.1 - -
Corporate (17.1) 5.1 -
----- --- ---
Total Live Nation $56.8 $14.7 $(2.8)
===== ===== =====

($ in millions)
Depreciation Operating
And Acquisition income
amortization expenses (loss)

Three months ended December 31, 2010
------------------------------------

Concerts $59.2 $0.3 $(90.4)
Ticketing 50.8 0.9 3.3
Artist Nation 10.7 0.4 (0.1)
eCommerce 2.2 (0.2) 9.9
Sponsorship 0.1 0.1 19.8
Other &
Eliminations 1.1 - (1.0)
Corporate 0.4 5.0 (27.6)
--- --- -----
Total Live Nation $124.5 $6.5 $(86.1)
====== ==== ======

Non-cash
Adjusted and stock- Loss (gain)
operating based on sale of
income compensation operating
(loss) expense assets

Three months ended December 31, 2009
------------------------------------

Concerts $(1.2) $4.9 $(1.9)
Ticketing 57.8 (1.0) -
Artist Nation 22.2 3.6 -
eCommerce 13.5 0.1 -
Sponsorship 15.6 - -
Other &
Eliminations 0.1 - (0.1)
Corporate (20.8) 3.4 -
----- --- ---
Total Live Nation $87.2 $11.0 $(2.0)
===== ===== =====

($ in millions)
Depreciation Operating
And Acquisition income
amortization expenses (loss)

Three months ended December 31, 2009
------------------------------------

Concerts $45.2 $0.3 $(49.7)
Ticketing 23.0 - 35.8
Artist Nation 15.1 - 3.5
eCommerce 2.6 - 10.8
Sponsorship 0.1 - 15.5
Other &
Eliminations 0.1 0.1 -
Corporate 1.3 20.1 (45.6)
--- ---- -----
Total Live Nation $87.4 $20.5 $(29.7)
===== ===== ======

Non-cash
Adjusted and stock- Loss (gain)
operating based on sale of
income compensation operating
(loss) expense assets

Year ended December 31, 2010
Concerts $15.4 $11.6 $(4.8)
Ticketing 231.3 12.0 5.2
Artist Nation 46.5 10.2 -
eCommerce 36.2 0.3 -
Sponsorship 108.1 0.4 -
Other &
Eliminations (0.3) - -
Corporate (74.4) 27.1 -
----- ---- ---
Total Live Nation $362.8 $61.6 $0.4
====== ===== ====

($ in millions)
Depreciation Operating
And Acquisition income
amortization expenses (loss)

Year ended December 31, 2010
Concerts $139.1 $(2.0) $(128.5)
Ticketing 131.5 8.3 74.3
Artist Nation 41.5 7.5 (12.7)
eCommerce 7.5 0.6 27.8
Sponsorship 0.3 0.2 107.2
Other &
Eliminations (0.6) - 0.3
Corporate 2.3 28.3 (132.1)
--- ---- ------
Total Live Nation $321.6 $42.9 $(63.7)
====== ===== ======

Non-cash
Adjusted and stock- Loss (gain)
operating based on sale of
income compensation operating
(loss) expense assets

Year ended December 31, 2009
Concerts $99.8 $8.7 $(3.0)
Ticketing 215.4 3.7 -
Artist Nation 64.1 14.7 -
eCommerce 38.7 0.4 -
Sponsorship 97.0 - -
Other &
Eliminations 1.1 - -
Corporate (87.7) 12.6 -
----- ---- ---
Total Live Nation $428.4 $40.1 $(3.0)
====== ===== =====

($ in millions)
Depreciation Operating
And Acquisition income
amortization expenses (loss)

Year ended December 31, 2009
Concerts $138.8 $1.1 $(45.8)
Ticketing 89.2 - 122.5
Artist Nation 48.2 - 1.2
eCommerce 8.9 - 29.4
Sponsorship 0.3 - 96.7
Other &
Eliminations 0.3 0.1 0.7
Corporate 2.4 62.3 (165.0)
--- ---- ------
Total Live Nation $288.1 $63.5 $39.7
====== ===== =====

AS REPORTED RESULTS
-------------------
Reconciliation of Adjusted Operating Income (Loss) to Operating
Income (Loss)
---------------------------------------------------------------

Three months ended December 31, 2009
------------------------------------

Concerts $(1.2) $4.9 $(1.9) $45.2 $0.3 $(49.7)
Ticketing (1.1) 0.1 - 2.5 - (3.7)
Artist Nation 4.7 - - 3.1 - 1.6
eCommerce (0.5) - - 1.4 - (1.9)
Sponsorship 15.4 - - 0.2 - 15.2
Other &
Eliminations - - (0.1) 0.1 - -
Corporate (13.8) 1.7 - 1.2 9.2 (25.9)
----- --- --- --- --- -----
Total Live Nation $3.5 $6.7 $(2.0) $53.7 $9.5 $(64.4)
==== ==== ===== ===== ==== ======

Year ended December 31, 2009
----------------------------

Concerts $99.8 $8.7 $(3.0) $138.8 $1.1 $(45.8)
Ticketing 9.5 0.3 - 10.3 - (1.1)
Artist Nation 12.9 0.3 - 10.0 - 2.6
eCommerce (4.3) 0.2 - 5.2 - (9.7)
Sponsorship 95.9 - - 0.3 - 95.6
Other &
Eliminations 0.9 - - 0.3 - 0.6
Corporate (50.2) 7.2 - 2.3 34.9 (94.6)
----- --- --- --- ---- -----
Total Live Nation $164.5 $16.7 $(3.0) $167.2 $36.0 $(52.4)
====== ===== ===== ====== ===== ======

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

Reported Combined Reported
-------- -------- --------
Q4 2010 Q4 2009 Q4 2009
------- ------- -------
Adjusted operating income $56.8 $87.2 $3.5
Less: Cash interest expense-net (14.7) (24.9) (11.8)
Cash taxes (32.8) (24.5) (2.2)
Maintenance capital expenditures (17.5) (9.2) (3.0)
Distributions to noncontrolling
interest partners (4.5) (9.8) (6.2)
Distributions from
(contributions to) investments
in nonconsolidated affiliates (0.2) 3.9 2.9
---- --- ---
Free cash flow $(12.9) $22.7 $(16.8)
Revenue generating capital
expenditures (7.8) (12.9) (8.8)
---- ----- ----
Net $(20.7) $9.8 $(25.6)
--- ------ ---- ------

($ in millions) Reported Combined Reported
FY 2010 FY 2009 FY 2009
Adjusted operating income $362.8 $428.4 $164.5
Less: Cash interest expense-net (89.9) (107.8) (51.2)
Cash taxes (50.6) (81.3) (34.8)
Maintenance capital expenditures (47.5) (44.7) (16.9)
Distributions to noncontrolling
interest partners (15.0) (16.9) (7.0)
Distributions from
(contributions to) investments
in nonconsolidated affiliates 5.0 8.1 4.3
--- --- ---
Free cash flow $164.8 $185.8 $58.9
Revenue generating capital
expenditures (26.4) (52.8) (34.3)
----- ----- -----
Net $138.4 $133.0 $24.6
--- ------ ------ -----

Reconciliation of Cash and Cash Equivalents to Free Cash
--------------------------------------------------------

($ in millions) December 31,
2010
Cash and cash equivalents $892.8
Client cash (384.5)
Deferred revenue-event related (309.0)
Accrued artist fees (7.2)
Collections on behalf of others (44.4)
Prepaids related to artist
settlements/events 221.5
-----
Free cash $369.2
--------- ------

SOURCE Live Nation Entertainment

Photo:http://photos.prnewswire.com/prnh/20100603/LA14899LOGO
http://photoarchive.ap.org/
Live Nation Entertainment

CONTACT: Linda Bandov Pazin of Live Nation, +1-310-867-7000, lindabandov@livenation.com

Web Site: http://www.livenation.com

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Profile: intent