Live Nation Entertainment Reports Third Quarter 2011 Financial Results

Live Nation Entertainment Reports Third Quarter 2011 Financial Results

LOS ANGELES, Nov. 3, 2011 /PRNewswire/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three and nine months ended September 30, 2011 today.

"I am delighted that we continue to deliver improved financial results and are well on track to drive strong growth in profitability for the year," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. "Across our portfolio this year, we have delivered growth while also improving operating margins. This is reflected in the healthy gains in free cash flow from our operations while investing in new products including festivals, re-platforming of Ticketmaster, social media and mobile apps."

"We believe the stabilization of consumer demand for live events will continue into 2012 and, looking ahead, we are increasingly optimistic about our opportunities," Rapino continued. "Given the continued fan demand for concerts and a growing supply of artists hitting the road, we are optimistic about the future growth of the global concert industry. Based on this, we believe we are well positioned to generate improved returns from our business and deliver shareholder value."

The company will host a teleconference today, November 3, 2011 at 5:00 p.m. Eastern Daylight Time, which can be accessed by dialing 888-352-6793 (U.S.) or 719-457-2703 (Int'l) ten minutes prior to the start time and reference passcode 4625414. 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 November 10, 2011.

The financial results of operations for the first nine months of 2010 only include Ticketmaster results following the date of the merger (January 25) through September 30, 2010. (1)

FINANCIAL HIGHLIGHTS - 3rd QUARTER and NINE MONTHS
--------------------------------------------------
(Unaudited; $ in millions)
--------------------------

Q3 2011 Q3 2010 Growth 9 months 9 months Growth
------- ------- ------ -------- -------- ------
2011 2010
---- ----
Revenue
Concerts $1,280.3 $1,380.5 (7.3%) $2,811.8 $2,648.1 6.2%
Ticketing 287.1 261.2 9.9% 867.2 734.7 18.0%
Artist
Nation 121.4 111.0 9.4% 293.9 269.2 9.2%
eCommerce 36.6 25.8 41.9% 103.4 62.8 64.6%
Sponsorship 72.7 69.5 4.6% 147.1 129.6 13.5%
Other
&
Eliminations (8.1) (12.2) 33.6% (25.1) (18.5) (35.7%)
---- ----- ---- ----- ----- -------
$1,790.0 $1,835.8 (2.5%) $4,198.3 $3,825.9 9.7%
======== ======== ====== ======== ======== ===

Adjusted
Operating
Income
(Loss)
Concerts $83.7 $61.9 35.2% $62.2 $43.7 42.3%
Ticketing
(3) 51.8 63.9 (18.9%) 204.3 175.1 16.7%
Artist
Nation 20.0 21.8 (8.3%) 35.0 32.5 7.7%
eCommerce 14.1 13.5 4.4% 40.0 24.4 63.9%
Sponsorship 54.4 53.1 2.4% 98.0 88.1 11.2%
Other
&
Eliminations (0.6) - ** (0.5) (0.4) (25.0%)
Corporate (19.8) (23.5) 15.7% (51.8) (57.4) 9.8%
----- ----- ---- ----- ----- ---
$203.6 $190.7 6.8% $387.2 $306.0 26.5%
====== ====== === ====== ====== ====

Operating
Income
(Loss)
Concerts $49.2 $30.4 61.8% $(29.3) $(40.4) 27.5%
Ticketing
(3) 14.2 36.5 (61.1%) 97.3 78.4 24.1%
Artist
Nation
(2) 9.1 5.5 65.5% (31.3) (5.5) **
eCommerce 11.4 11.1 2.7% 31.6 18.7 69.0%
Sponsorship 54.1 52.9 2.3% 97.3 87.5 11.2%
Other
&
Eliminations (0.6) 0.6 ** (0.3) 1.3 **
Corporate (25.6) (29.1) 12.0% (67.9) (81.2) 16.4%
----- ----- ---- ----- ----- ----
$111.8 $107.9 3.6% $97.4 $58.8 65.6%
====== ====== === ===== ===== ====

Acquisition
Expenses $7.0 $4.8 $12.4 $36.4
-----
$104.8 $103.1 $85.0 $22.4
====== ====== ===== =====

** percentages are not meaningful

Reported results for the nine months ended September 30, 2010, include the
results of the legacy Ticketmaster operations following the date of the
merger through September 30. Results for the legacy Ticketmaster operations
for the period January 1-January 25, 2010, or the stub period (which are not
included in the reported results above), include $76.1 million in revenue,
primarily in the Ticketing segment, and $5.0 million in adjusted operating
income, of which $7.7 million was related to the Ticketing segment.
Ticketmaster's operating income for the stub period was $14.8 million,
including a $30.1 million gain on the sale of a subsidiary prior to the
(1) merger.
The Artist Nation segment's operating loss for the nine months ended September
30, 2011 is driven by $24.4 million of stock-related compensation expense
due to the acquisition of the remaining equity of Front Line Management in
(2) February 2011.
The Ticketing segment's adjusted operating income and operating income for the
three and nine months ended September 30, 2011 is impacted by $14.6 million
(3) of litigation-related expenses.

Free cash as of September 30, 2011 was $356.6 million. Free cash flow was $152.2 million for the third quarter of 2011 as compared to $145.2 million for the same period in 2010, and $223.5 million for the nine months of 2011 compared to $153.3 million for the same period in 2010.

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.
Key Operating Metrics

Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2011 2010 2011 2010
---- ---- ---- ----

Concerts
(1)
Total
Estimated
Events:
North
America 4,135 3,801 11,418 10,511
International 1,136 1,128 4,248 4,606
----- ----- ----- -----
Total
estimated
events 5,271 4,929 15,666 15,117
----- ----- ------ ------

Total
Estimated
Attendance
(rounded):
North
America 12,257,000 12,820,000 25,109,000 24,664,000
International 3,304,000 3,669,000 10,449,000 11,101,000
--------- --------- ---------- ----------
Total
estimated
attendance 15,561,000 16,489,000 35,558,000 35,765,000
---------- ---------- ---------- ----------

Ancillary
net
revenue
per
attendee:
North
America
amphitheaters $17.54 $16.44 $18.08 $16.99

Ticketing
(2)
Number
of
tickets
sold
(in
thousands):
Concerts 18,072 18,266 52,563 46,122
Sports 6,384 6,070 20,556 16,583
Arts
and
theater 5,190 4,539 14,608 12,532
Family 2,985 2,440 9,731 7,253
Other
(3) 2,264 1,239 5,492 3,145
----- ----- ----- -----
34,895 32,554 102,950 85,635
------ ------ ------- ------

Gross
value
of
tickets
sold
(in
thousands) $2,008,522 $1,913,053 $6,112,958 $5,075,524

Sponsorship/
Advertising

Online
advertising
revenue
(in
thousands) $13,709 $9,881 $35,351 $26,708
Estimated
average
sponsorship
dollars
per
sponsor
(rounded) $102,000 $98,000 $206,000 $182,000

eCommerce
Gross
value
of
tickets
sold
online
(in
thousands) $1,700,025 $1,524,429 $5,032,914 $4,076,512
Number
of
customers
in
database
(rounded) 107,298,000 94,809,000

Events generally represent a single performance by an artist. Attendance generally
represents the number of fans who were present at an event. Festivals are counted
as one event in the quarter in which the festival begins but attendance is split
over the days of the festival and can be split between quarters. Events and
(1) attendance metrics are estimated each quarter.
The number and gross value of tickets sold includes primary tickets only. These
metrics include tickets sold during the period regardless of event timing except
for our promoted concerts in our owned and/or operated buildings and certain
European territories where these tickets are recognized as the concerts occur. The
tickets sold listed above for 2010 do not include 7.1 million tickets with a gross
value of $405.0 million for the pre-Merger period. Tickets sold for the full nine
months ended September 30, 2010, including the pre-Merger period, were as
(2) follows:

Concerts 49,132
Sports 18,242
Arts and
theater 13,779
Family 8,251
Other 3,376
92,780
------

Other category includes tickets for comedy shows, facility tours, donations,
(3) lectures, seminars and cinema.

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended Nine Months Ended
------------------ -----------------
September 30, September 30,
------------- -------------
2011 2010 2011 2010
---- ---- ---- ----
(in thousands except share and per share data)
Revenue $1,790,025 $1,835,806 $4,198,316 $3,825,902
Operating expenses:
Direct operating expenses 1,286,304 1,388,295 2,971,579 2,769,334
Selling, general and
administrative expenses 282,462 244,694 822,226 729,189
Depreciation and
amortization 83,341 70,249 237,749 197,190
Loss (gain) on sale of
operating assets 231 (779) 866 3,155
Corporate expenses 27,385 27,660 73,011 86,666
Acquisition transaction
expenses 5,493 2,581 7,864 17,992
----- ----- ----- ------

Operating income 104,809 103,106 85,021 22,376
Interest expense 30,388 29,280 90,462 85,773
Loss on extinguishment of
debt - - - 21,172
Interest income (1,023) (709) (2,848) (2,143)
Equity in earnings of
nonconsolidated affiliates (2,777) (629) (5,549) (2,884 )
Other expense (income), net 6,461 (212) 7,207 (1,845)
----- ---- ----- ------

Income (loss) from
continuing operations
before income taxes 71,760 75,376 (4,251) (77,697)
Income tax expense
(benefit) 8,739 10,338 (29,544) 10,755
----- ------ ------- ------

Income (loss) from
continuing operations 63,021 65,038 25,293 (88,452)
Loss from discontinued
operations, net of tax - (3,213) - (3,893)
--- ------ --- ------

Net income (loss) 63,021 61,825 25,293 (92,345)
Net income attributable to
noncontrolling interests 11,309 10,818 8,784 11,648
------ ------ ----- ------
Net income (loss)
attributable to Live
Nation Entertainment, Inc. $51,712 $51,007 $16,509 $(103,993)
======= ======= ======= =========

Basic net income (loss) per
common share attributable
to common stockholders:
Income (loss) from
continuing operations
attributable to Live
Nation Entertainment, Inc. $0.28 $0.32 $0.09 $(0.62)
Loss from discontinued
operations attributable to
Live Nation Entertainment,
Inc. - (0.02) - (0.02)
--- ----- --- -----

Net income (loss)
attributable to Live
Nation Entertainment, Inc. $0.28 $0.30 $0.09 $(0.64)
===== ===== ===== ======

Diluted net income (loss)
per common share
attributable to common
stockholders:
Income (loss) from
continuing operations
attributable to Live
Nation Entertainment, Inc. $0.27 $0.32 $0.09 $(0.62 )
Loss from discontinued
operations attributable to
Live Nation Entertainment,
Inc. - (0.02) - (0.02)
--- ----- --- -----

Net income (loss)
attributable to Live
Nation Entertainment, Inc. $0.27 $0.30 $0.09 $(0.64 )
===== ===== ===== ========

Weighted average common
shares outstanding:

Basic 186,127,846 170,285,159 181,115,853 162,285,785
Diluted 188,531,130 172,302,273 183,306,799 162,285,785

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS

September December
30, 31,
2011 2010
---- ----
(unaudited) (audited)

(in thousands)
ASSETS
Current assets
Cash and cash equivalents $782,573 $892,758
Accounts receivable, less allowance of
$12,480 as of September 30, 2011 and
$10,898 as of December 31, 2010 489,236 329,947
Prepaid expenses 324,256 348,309
Other current assets 40,736 32,483
Total current assets 1,636,801 1,603,497
--------- ---------
Property, plant and equipment
Land, buildings and improvements 853,141 850,124
Computer equipment and capitalized
software 240,279 218,294
Furniture and other equipment 170,280 168,508
Construction in progress 56,094 24,528
------ ------

1,319,794 1,261,454
Less accumulated depreciation 604,038 524,390
------- -------

715,756 737,064
Intangible assets
Definite-lived intangible assets, net 896,837 997,268
Indefinite-lived intangible assets 377,508 375,214
Goodwill 1,247,752 1,226,416
Investments in nonconsolidated affiliates 51,187 30,077
Other long-term assets 242,860 226,024
------- -------

Total assets $5,168,701 $5,195,560
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable, client accounts $413,347 $462,301
Accounts payable 108,272 76,876
Accrued expenses 561,925 498,864
Deferred revenue 273,950 335,539
Current portion of long-term debt 56,563 54,150
Other current liabilities 24,007 46,491
------ ------

Total current liabilities 1,438,064 1,474,221

Long-term debt, net 1,667,939 1,677,714
Long-term deferred income taxes 177,419 219,143
Other long-term liabilities 162,502 215,273
Commitments and contingent liabilities

Redeemable noncontrolling interests - 107,541

Stockholders' equity
Common stock 1,867 1,724
Additional paid-in capital 2,233,479 2,053,233
Accumulated deficit (645,666) (662,175)
Cost of shares held in treasury (5,313) (6,122)
Accumulated other comprehensive loss (5,072) (22,244)
------ -------

Total Live Nation Entertainment, Inc.
stockholders' equity 1,579,295 1,364,416
Noncontrolling interests 143,482 137,252
------- -------
Total stockholders' equity 1,722,777 1,501,668
--------- ---------
Total liabilities and stockholders'
equity $5,168,701 $5,195,560
========== ==========

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended
September 30,
2011 2010
---- ----
(in thousands)

CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (loss) $25,293 $(92,345)
Reconciling items:
Depreciation 94,184 90,239
Amortization 143,565 106,951
Deferred income tax benefit (40,679) (7,089)
Amortization of debt issuance costs 4,365 3,265
Amortization of debt discount/
premium, net 5,342 5,109
Provision for uncollectible
accounts receivable and advances 1,955 16,661
Non-cash loss on extinguishment of
debt - 8,272
Non-cash compensation expense 40,556 45,532
Unrealized changes in fair value of
contingent consideration (8,828) 2,965
Loss on sale of operating assets 866 7,048
Equity in earnings of
nonconsolidated affiliates (5,549) (2,884)
Other, net 2,136 -
Changes in operating assets and
liabilities, net of effects of
acquisitions and dispositions:
Increase in accounts receivable (164,392) (153,403)
Decrease (increase) in prepaid
expenses 25,704 (110,428)
Increase in other assets (56,645) (27,083)
Increase (decrease) in accounts
payable, accrued expenses and
other liabilities (27,682) 86,200
Increase (decrease) in deferred
revenue (67,732) 34,696
------- ------

Net cash provided by (used in)
operating activities (27,541) 13,706
------- ------

CASH FLOWS FROM INVESTING
ACTIVITIES
Collections and advances of notes
receivable (1,091) 485
Distributions from nonconsolidated
affiliates 8,804 6,019
Investments made in nonconsolidated
affiliates (6,437) (775)
Purchases of property, plant and
equipment (69,573) (49,165)
Proceeds from disposal of operating
assets, net of cash divested 7,361 22,119
Cash paid for acquisitions, net of
cash acquired (25,499) 560,732
Purchases of intangible assets (118) (1,371)
Other, net (842) (246)
---- ----

Net cash provided by (used in)
investing activities (87,395) 537,798
------- -------

CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from long-term debt, net
of issuance costs (596) 1,318,132
Payments on long-term debt (22,699) (1,191,712)
Redemption of preferred stock - (40,000)
Contributions from noncontrolling
interests - 14
Distributions to and purchases/
sales of noncontrolling interests (61,808) (10,538)
Proceeds from exercise of stock
options 3,210 4,526
Proceeds from sale of common stock 76,492 -
Equity issuance costs - (357)
Payments for purchases of common
stock - (1,567)
Payments for deferred and
contingent consideration (13,807) (11,109)
------- -------

Net cash provided by (used in)
financing activities (19,208) 67,389
Effect of exchange rate changes on
cash and cash equivalents 23,959 (232)
------ ----

Net increase (decrease) in cash and
cash equivalents (110,185) 618,661
Cash and cash equivalents at
beginning of period 892,758 236,955
------- -------

Cash and cash equivalents at end of
period $782,573 $855,616
======== ========

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

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements regarding the company's potential profitability growth over the full year; stabilization of consumer/fan demand for live events; the company's future opportunities; growth in availability of artists touring in the long-term; future growth in the global concert industry; and the company's ability to generate improved returns from the business in the future and to drive shareholder value. 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 risk that consumer demand weakens and the potential impact of the economic slowdown in general and operational challenges associated with selling tickets and staging events.

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

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

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

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

Free Cash is a non-GAAP financial measure that the company defines as cash and cash equivalents less ticketing-related client funds, less event-related deferred revenue, less accrued expenses due to artists and for cash collected on behalf of others for ticket sales, plus event-related prepaids. The company uses free cash as a proxy for how much cash it has available to, among other things, optionally repay debt balances, make acquisitions and finance ticketing, 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)

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

($ in Loss (gain)
millions) Adjusted Non-cash and on sale of Acquisition Operating
income
operating stock-based operating Depreciation expenses (loss)
income
(loss) compensation assets and
expense amortization

Three months ended September 30, 2011
-------------------------------------

Concerts $83.7 $1.4 $- $33.1 $0.8 $48.4
Ticketing 51.8 1.4 - 36.2 0.2 14.0
Artist
Nation 20.0 0.2 - 10.7 0.3 8.8
eCommerce 14.1 - - 2.7 - 11.4
Sponsorship 54.4 0.2 - 0.1 - 54.1
Other &
Eliminations (0.6) - 0.2 (0.2) - (0.6)
Corporate (19.8) 5.1 - 0.7 5.7 (31.3)
----- --- --- --- --- -----
Total
Live
Nation $203.6 $8.3 $0.2 $83.3 $7.0 $104.8
====== ==== ==== ===== ==== ======

Three months ended September 30, 2010
-------------------------------------

Concerts $61.9 $2.6 $(0.8) $29.7 $(2.9) $33.3
Ticketing 63.9 1.5 - 25.9 0.9 35.6
Artist
Nation 21.8 4.0 - 12.3 1.3 4.2
eCommerce 13.5 0.2 - 2.2 0.1 11.0
Sponsorship 53.1 0.1 - 0.1 - 52.9
Other &
Eliminations - - - (0.6) - 0.6
Corporate (23.5) 5.0 - 0.6 5.4 (34.5)
----- --- --- --- --- -----
Total
Live
Nation $190.7 $13.4 $(0.8) $70.2 $4.8 $103.1
====== ===== ===== ===== ==== ======

Nine months ended September 30, 2011
------------------------------------

Concerts $62.2 $4.3 $(0.7) $87.9 $(5.0) $(24.3)
Ticketing 204.3 3.9 (0.1) 103.2 1.0 96.3
Artist Nation 35.0 27.8 1.3 37.2 (1.9) (29.4)
eCommerce 40.0 0.2 - 8.2 - 31.6
Sponsorship 98.0 0.5 - 0.2 - 97.3
Other &
Eliminations (0.5) - 0.4 (0.6) - (0.3)
Corporate (51.8) 14.5 - 1.6 18.3 (86.2)
----- ---- --- --- ---- -----
Total Live Nation $387.2 $51.2 $0.9 $237.7 $12.4 $85.0
====== ===== ==== ====== ===== =====

Nine months ended September 30, 2010
------------------------------------

Concerts $43.7 $6.2 $(2.0) $79.9 $(2.3) $(38.1)
Ticketing 175.1 10.7 5.2 80.8 7.4 71.0
Artist Nation 32.5 7.2 - 30.8 7.1 (12.6)
eCommerce 24.4 0.4 - 5.3 0.8 17.9
Sponsorship 88.1 0.4 - 0.2 0.1 87.4
Other &
Eliminations (0.4) - - (1.7) - 1.3
Corporate (57.4) 21.9 - 1.9 23.3 (104.5)
----- ---- --- --- ---- ------
Total Live Nation $306.0 $46.8 $3.2 $197.2 $36.4 $22.4
====== ===== ==== ====== ===== =====

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

($ in millions) Q3 2011 Q3 2010
--------------- ------- -------
Adjusted operating income $203.6 $190.7
Less: Cash interest expense - net (26.1) (25.6)
Cash taxes (11.1) (14.4)
Maintenance capital expenditures (12.7) (7.4)
Distributions to noncontrolling
interests (2.3) (2.3)
Distributions from investments in
nonconsolidated affiliates 0.8 4.2
--- ---
Free cash flow $152.2 $145.2
Revenue generating capital
expenditures (11.8) (11.4)
----- -----
Net $140.4 $133.8
--- ------ ------

($ in millions) 9 months 9 months
--------------- -------- --------
2011 2010
---- ----
Adjusted operating income $387.2 $306.0
Less: Cash interest expense - net (77.9) (75.2)
Cash taxes (34.3) (42.2)
Maintenance capital expenditures (41.6) (30.0)
Distributions to noncontrolling interests (12.3) (10.5)
Distributions from investments in
nonconsolidated affiliates 2.4 5.2
--- ---
Free cash flow $223.5 $153.3
Revenue generating capital expenditures (27.6) (18.6)
----- -----
Net $195.9 $134.7
--- ------ ------

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

September
($ in millions) 30,
2011
Cash and cash equivalents $782.6
Client cash (333.9)
Deferred revenue-event related (212.6)
Accrued artist fees (11.2)
Collections on behalf of others (35.6)
Prepaids related to artist
settlements/events 167.3
-----
Free cash $356.6
--------- ------

SOURCE Live Nation Entertainment

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

CONTACT: Investors, Maili Bergman, +1-310-867-7000, IR@livenation.com, or Media, Linda Bandov Pazin, +1-310-867-7000, lindabandov@livenation.com

-------
Profile: intent