Live Nation Entertainment Reports Fourth Quarter and Full Year 2011 Financial Results

Live Nation Entertainment Reports Fourth Quarter and Full Year 2011 Financial Results

Full Year Revenue, Operating Income and Ticket Sales All Up

LOS ANGELES, Feb. 23, 2012 /PRNewswire/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three months and year ended December 31, 2011 today.

"In 2011 the company grew revenue and profitability across all business segments, achieving our financial objectives while investing in innovation and growth," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. "Our adjusted operating income growth of 21% was achieved through improved execution, which also drove our free cash flow increase of 23% and an $82 million improvement in operating income for the year. This performance was delivered as we continued to strategically invest in our ticketing infrastructure, ecommerce and mobile platforms and the expansion of our concert portfolio globally. The past year has also reaffirmed the solid demand for live entertainment worldwide and the strength of our global platform serving artists, fans, teams, venues and advertisers."

"The concert business is off to a great start in 2012, driven by a solid early line-up of artists and healthy ticketing demand. We believe that the industry has stabilized and expect the overall market environment to be much the same in 2012, with the fan's passion for our products mitigating any ongoing economic uncertainty. This year we plan to continue our focus on growing profitability with more concerts in the most attractive markets with great artists, growing our advertising network and investing in our consumer ecommerce and mobile ticketing platforms to enhance the fan experience on Ticketmaster.com and LiveNation.com. As a result, we believe we are well-positioned to build on the success of this past year, extend our market leadership and continue growing profitability in the year ahead."

The company will host a teleconference today, February 23, 2012 at 5:00 p.m. Eastern Time, which can be accessed by dialing 888-466-4582 (U.S.) or 719-325-2378 (Int'l) ten minutes prior to the start time and referencing passcode 6784952. 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/or 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 1, 2012.

FINANCIAL HIGHLIGHTS - FOURTH QUARTER and FULL YEAR
---------------------------------------------------
(Unaudited; $ in millions
-------------------------

Q4 2011 Q4 2010 Growth FY FY Growth
------- ------- ------ --- --- ------
2011 2010 (1)
---- -------
Revenue
Concerts $694.4 $790.3 (12.1%) $3,506.2 $3,438.4 2.0%
Ticketing 323.4 305.2 6.0% 1,190.6 1,039.9 14.5%
Artist
Nation 99.2 93.0 6.7% 393.1 362.2 8.5%
eCommerce 41.0 25.1 63.3% 144.4 87.9 64.3%
Sponsorship 32.6 32.1 1.6% 179.7 161.7 11.1%
Other
&
Eliminations (4.9) (7.9) 38.0% (30.0) (26.4) (13.6%)
---- ---- ---- ----- ----- -------
$1,185.7 $1,237.8 (4.2%) $5,384.0 $5,063.7 6.3%
======== ======== ====== ======== ======== ===

Adjusted
Operating
Income
(Loss)
Concerts $(31.9) $(28.3) (12.7%) $30.3 $15.4 96.8%
Ticketing 67.8 56.3 20.4% 272.1 231.3 17.6%
Artist
Nation 12.2 14.0 (12.9%) 47.2 46.5 1.5%
eCommerce 11.1 11.8 (5.9%) 51.1 36.2 41.2%
Sponsorship 22.9 20.0 14.5% 120.9 108.1 11.8%
Other
&
Eliminations 2.7 0.1 ** 2.2 (0.3) **
Corporate (34.1) (17.1) (99.4%) (85.9) (74.4) (15.5%)
----- ----- ------- ----- ----- -------
$50.7 $56.8 (10.7%) $437.9 $362.8 20.7%
===== ===== ======= ====== ====== ====

Operating
Income
(Loss)
Concerts $(78.0) $(90.1) 13.4% $(107.3) $(130.5) 17.8%
Ticketing 22.1 4.2 ** 119.4 82.6 44.6%
Artist
Nation
(2) (1.3) 0.3 ** (32.6) (5.2) **
eCommerce 8.7 9.7 (10.3%) 40.3 28.4 41.9%
Sponsorship 22.4 19.9 12.6% 119.7 107.4 11.5%
Other
&
Eliminations 2.6 (1.0) ** 2.3 0.3 **
Corporate (40.7) (22.6) (80.1%) (108.6) (103.8) (4.6%)
----- ----- ------- ------ ------ ------
$(64.2) $(79.6) 19.3% $33.2 $(20.8) **
====== ====== ==== ===== ====== ===

Acquisition
Expenses $2.5 $6.5 $14.9 $42.9
-----
$(66.7) $(86.1) $18.3 $(63.7)
====== ====== ===== ======

** percentages are not meaningful

Reported results for the full year ended December 31, 2010, include the
results of the legacy Ticketmaster operations following the date of the
merger (January 25) through December 31. Results for the legacy
Ticketmaster operations for the period January 1 through 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
(1) gain on the sale of a subsidiary prior to the merger.

The Artist Nation segment's operating loss for the full year ended
December 31, 2011 is driven primarily by $24.4 million of stock-related
compensation expense due to the acquisition of the remaining equity of
(2) Front Line Management in February 2011.

Free cash as of December 31, 2011 was $334.5 million. Free cash flow was ($20.4) million for the fourth quarter of 2011 as compared to ($12.9) million for the same period in 2010, and $203.1 million for the year ended December 31, 2011 as compared to $164.8 million for 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 almost 27 million monthly unique visitors. Live Nation Concerts produces over 22,000 shows annually for more than 2,300 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 Year Ended
------------------ ----------
December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----

Concerts
(1)
Estimated
Events:
North
America 4,199 3,608 15,531 14,119
International 2,472 2,365 6,720 6,971
Total estimated events 6,671 5,973 22,251 21,090
----- ----- ------ ------
Estimated Attendance
(rounded):
North
America 5,963,000 5,942,000 31,060,000 30,603,000
International 5,293,000 5,555,000 15,742,000 16,659,000
Total estimated
attendance 11,256,000 11,497,000 46,802,000 47,262,000
---------- ---------- ---------- ----------

Ancillary net revenue per
attendee:
North America amphitheaters ** ** $18.08 $17.57
International festivals ** ** $17.19 $15.95
Ticketing
(2)
Number of tickets sold (in
thousands):
Concerts 18,421 17,700 71,044 63,833
Sports 6,245 5,489 26,768 22,074
Arts and
theater 6,929 5,935 21,513 18,462
Family 4,450 4,217 14,176 11,469
Other (3) 2,372 1,283 7,867 4,420
----- ----- ----- -----
38,417 34,624 141,368 120,258
------ ------ ------- -------

Gross value of tickets sold
(in thousands): $2,286,641 $2,193,541 $8,442,517 $7,466,957
---------- ---------- ---------- ----------
Sponsorship
Online advertising revenue (in
thousands) $15,706 $11,785 $51,057 $38,493
Estimated number of sponsors
(as of period end) 768 794 768 794
Sponsorship revenue recognized
(in thousands) $32,590 $32,146 $179,734 $161,742

eCommerce
Gross value of tickets sold
online (in thousands) $1,845,179 $1,693,514 $6,894,416 $5,896,518

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 attendance metrics are estimated each
(1) quarter.

The number and gross value of tickets sold includes primary tickets only and
excludes tickets sold for the 2012 London Olympics. 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 $406.4 million for the pre-Merger period.
Tickets sold for the full year ended December 31, 2010, including the pre-
(2) Merger period, were as follows:

Concerts 66,843
Sports 23,733
Arts and theater 19,709
Family 12,467
Other 4,651
------------------------------------
127,403

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

** not meaningful

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31,
-----------------------
2011 2010 2009

(in thousands except share and per
share data)

Revenue $5,383,998 $5,063,748 $4,181,021
Operating expenses:
Direct operating
expenses 3,789,488 3,658,310 3,357,245
Selling, general
and administrative
expenses 1,111,969 1,014,491 617,709
Depreciation and
amortization 343,018 321,666 158,118
Goodwill impairment - - 9,085
Loss (gain) on sale
of operating
assets 978 374 (2,983)
Corporate expenses 112,157 110,252 58,160
Acquisition
transaction
expenses 8,051 22,355 36,043
Operating income
(loss) 18,337 (63,700) (52,356)
Interest expense 120,414 116,527 66,365
Loss on
extinguishment of
debt - 21,315 -
Interest income (4,215) (3,771) (2,193)
Equity in earnings
of nonconsolidated
affiliates (7,742) (4,928) (1,851)
Other expense
(income) -net 6,507 (4,189) 1
Loss from
continuing
operations before
income taxes (96,627) (188,654) (114,678)
Income tax expense
(benefit) (26,224) 15,154 11,333
Loss from
continuing
operations (70,403) (203,808) (126,011)
Income (loss) from
discontinued
operations, net of
tax - (4,228) 76,277
Net loss (70,403) (208,036) (49,734)
Net income
attributable to
noncontrolling
interests 12,613 20,354 10,445
------ ------ ------
Net loss
attributable to
Live Nation
Entertainment,
Inc. $(83,016) $(228,390) $(60,179)
Basic and diluted
net income (loss)
per common share
attributable to
common
stockholders:
Loss from
continuing
operations
attributable to
Live Nation
Entertainment,
Inc. $(0.46) $(1.36) $(1.65)
Income (loss) from
discontinued
operations
attributable to
Live Nation
Entertainment,
Inc. - (0.03) 0.92
Net loss
attributable to
Live Nation
Entertainment,
Inc. $(0.46) $(1.39) $(0.73)
Weighted average
common shares
outstanding:
Basic and diluted 182,388,070 164,410,167 82,652,366

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS

December 31,
------------
2011 2010
---- ----

(in thousands except
share data)
ASSETS
Current assets
Cash and cash equivalents $844,253 $892,758
Accounts receivable, less allowance of
$16,986 in 2011 and $10,898 in 2010 389,346 329,947
Prepaid expenses 316,491 348,309
Other current assets 26,700 32,483
------ ------
Total current assets 1,576,790 1,603,497
Property, plant and equipment
Land, buildings and improvements 851,812 850,124
Computer equipment and capitalized
software 261,475 218,294
Furniture and other equipment 172,250 168,508
Construction in progress 60,652 24,528
1,346,189 1,261,454
Less accumulated depreciation 626,053 524,390
720,136 737,064
Intangible assets
Definite-lived intangible assets, net 873,712 997,268
Indefinite-lived intangible assets 377,160 375,214
Goodwill 1,257,644 1,226,416
Investments in nonconsolidated affiliates 55,796 30,077
Other long-term assets 226,533 226,024
Total assets $5,087,771 $5,195,560
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable, client accounts $473,956 $462,301
Accounts payable 87,627 76,876
Accrued expenses 579,566 498,864
Deferred revenue 273,536 335,539
Current portion of long-term debt 52,632 54,150
Other current liabilities 25,236 46,491
Total current liabilities 1,492,553 1,474,221

Long-term debt, net 1,663,056 1,677,714
Long-term deferred income taxes 186,298 219,143
Other long-term liabilities 120,693 215,273
Commitments and contingent liabilities

Redeemable noncontrolling interests 8,277 107,541

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; 189,536,279 and
175,418,857 shares issued and
outstanding in 2011 and 2010,
respectively 1,868 1,724
Additional paid-in capital 2,243,587 2,053,233
Accumulated deficit (745,191) (662,175)
Cost of shares held in treasury (578,570
and 1,271,519 shares in 2011 and 2010,
respectively) (2,787) (6,122)
Accumulated other comprehensive loss (36,374) (22,244)
Total Live Nation Entertainment, Inc.
stockholders' equity 1,461,103 1,364,416
Noncontrolling interests. 155,791 137,252
------- -------
Total stockholders' equity 1,616,894 1,501,668
--------- ---------
Total liabilities and stockholders'
equity $5,087,771 $5,195,560
========== ==========

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

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

2011 2010 2009
---- ---- ----
(in thousands)
CASH FLOWS FROM
OPERATING ACTIVITIES
Net loss $(70,403) $(208,036) $(49,734)
Reconciling items:
Depreciation 129,177 135,573 98,108
Amortization 213,841 186,093 64,586
Goodwill impairment - - 9,085
Impairment of
operational assets - 13,373 -
Deferred income tax
benefit (45,603) (25,021) (8,698)
Amortization of debt
issuance costs 5,816 4,682 4,224
Amortization of debt
discount/premium,
net 7,243 6,755 8,811
Provision for
uncollectible
accounts receivable
and advances 9,272 6,606 7,044
Non-cash loss on
extinguishment of
debt. - 8,272 -
Non-cash compensation
expense 50,045 52,395 16,675
Unrealized changes in
fair value of
contingent
consideration (11,691) 3,171 -
Loss (gain) on sale of
operating assets 978 4,602 (64,237)
Equity in earnings of
nonconsolidated
affiliates (7,742) (4,928) (3,117)
Other, net 2,481 - -
Changes in operating
assets and
liabilities, net of
effects of
acquisitions and
dispositions:
Decrease (increase) in
accounts receivable (79,807) (4,581) 27,608
Decrease (increase) in
prepaid expenses 73,314 (22,570) (57,918)
Increase in other
assets (83,928) (41,686) (2,945)
Increase (decrease) in
accounts payable,
accrued expenses and
other liabilities 6,817 386 (4,586)
Increase (decrease) in
deferred revenue (64,105) 43,432 12,369
-------
Net cash provided by
operating activities 135,705 158,518 57,275

CASH FLOWS FROM
INVESTING ACTIVITIES
Collections and
advances of notes
receivable (1,197) 475 140
Distributions from
nonconsolidated
affiliates 9,273 5,863 5,134
Investments made in
nonconsolidated
affiliates (15,770) (3,458) (821)
Purchases of property,
plant and equipment (107,500) (75,578) (64,267)
Proceeds from disposal
of operating assets,
net of cash divested 7,391 35,756 174, 321
Cash paid for
acquisitions, net of
cash acquired (39,465) 491,531 (9,707)
Purchases of
intangible assets (2,591) (1,790) (27,863)
Decrease (increase) in
other, net (2,158) 188 544
Net cash provided by
(used in) investing
activities (152,017) 452,987 77,481

CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from long-
term debt, net of
debt issuance costs (669) 1,352,856 602,741
Payments on long-term
debt (31,338) (1,233,020) (705,795)
Redemption of
preferred stock - (40,000) -
Contributions from
noncontrolling
interests 711 429 13
Distributions to and
purchases/sales from
noncontrolling
interests (68,473) (21,625) (7,006)
Proceeds from exercise
of stock options 2,705 8,640 -
Proceeds from sale of
common stock 76,492 - -
Issuance of treasury
stock - - 1,553
Equity issuance costs - (357) (2,667)
Payments for purchases
of common stock - (1,567) (5,803)
Payments for deferred
and contingent
consideration. (23,807) (16,270) (7,392)
Net cash provided by
(used in) financing
activities (44,379) 49,086 (124,356)
Effect of exchange
rate changes on cash
and cash equivalents 12,186 (4,788) 26,895
Net increase
(decrease) in cash
and cash equivalents (48,505) 655,803 37,295
Cash and cash
equivalents at
beginning of period 892,758 236,955 199,660
Cash and cash
equivalents at end of
period $844,253 $892,758 $236,955
======== ======== ========

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 global demand for live entertainment and the strength of the company's platform; the company's anticipated talent line-up and prospects for 2012; potential industry stabilization, general market conditions and related fan demand; the anticipated growth of the company's advertising network and investment in its technology platforms and websites; and the company's anticipated profitability growth and operational strategies for 2012 and future periods. 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 or artists do not tour as currently expected, 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)
-----------------------------------------------------------------------------

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

Three months ended December 31, 2011
------------------------------------

Concerts $(31.9) $1.7 $(0.2) $44.6 $2.7 $(80.7)
Ticketing 67.8 1.5 - 44.2 1.2 20.9
Artist
Nation 12.2 0.3 - 13.2 (5.8) 4.5
eCommerce 11.1 - - 2.4 - 8.7
Sponsorship 22.9 0.2 - 0.3 - 22.4
Other &
Eliminations 2.7 - 0.3 (0.2) (0.1) 2.7
Corporate (34.1) 5.7 - 0.9 4.5 (45.2)
----- --- --- --- --- -----
Total
Live
Nation $50.7 $9.4 $0.1 $105.4 $2.5 $(66.7)
===== ==== ==== ====== ==== ======

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

Concerts $(28.3) $5.4 $(2.8) $59.2 $0.3 $(90.4)
Ticketing 56.3 1.3 - 50.8 0.9 3.3
Artist
Nation 14.0 3.0 - 10.7 0.4 (0.1)
eCommerce 11.8 (0.1) - 2.2 (0.2) 9.9
Sponsorship 20.0 - - 0.1 0.1 19.8
Other &
Eliminations 0.1 - - 1.1 - (1.0)
Corporate (17.1) 5.1 - 0.4 5.0 (27.6)
----- --- --- --- --- -----
Total
Live
Nation $56.8 $14.7 $(2.8) $124.5 $6.5 $(86.1)
===== ===== ===== ====== ==== ======

Year Ended December 31, 2011
----------------------------

Concerts $30.3 $6.0 $(0.9) $132.5 $(2.3) $(105.0)
Ticketing 272.1 5.4 (0.1) 147.4 2.2 117.2
Artist
Nation 47.2 28.1 1.3 50.4 (7.7) (24.9)
eCommerce 51.1 0.2 - 10.6 - 40.3
Sponsorship 120.9 0.7 - 0.5 - 119.7
Other &
Eliminations 2.2 - 0.7 (0.8) (0.1) 2.4
Corporate (85.9) 20.2 - 2.5 22.8 (131.4)
----- ---- --- --- ---- ------
Total
Live
Nation $437.9 $60.6 $1.0 $343.1 $14.9 $18.3
====== ===== ==== ====== ===== =====

Year Ended December 31, 2010
----------------------------

Concerts $15.4 $11.6 $(4.8) $139.1 $(2.0) $(128.5)
Ticketing 231.3 12.0 5.2 131.5 8.3 74.3
Artist
Nation 46.5 10.2 - 41.5 7.5 (12.7)
eCommerce 36.2 0.3 - 7.5 0.6 27.8
Sponsorship 108.1 0.4 - 0.3 0.2 107.2
Other &
Eliminations (0.3) - - (0.6) - 0.3
Corporate (74.4) 27.1 - 2.3 28.3 (132.1)
----- ---- --- --- ---- ------
Total
Live
Nation $362.8 $61.6 $0.4 $321.6 $42.9 $(63.7)
====== ===== ==== ====== ===== ======

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

($ in millions) Q4 2011 Q4 2010
--------------- ------- -------
Adjusted operating income $50.7 $56.8
Less: Cash interest expense - net (29.4) (14.7)
Cash taxes (3.4) (32.8)
Maintenance capital expenditures (22.8) (17.5)
Distributions to noncontrolling
interests (6.6) (4.5)
Distributions from/contributions to
investments in nonconsolidated
affiliates (8.9) (0.2)
---- ----
Free cash flow $(20.4) $(12.9)
Revenue generating capital
expenditures (20.1) (7.8)
----- ----
Net $(40.5) $(20.7)
--- ------ ------

Full Year Full Year
--------- ---------
($ in millions) 2011 2010
--------------- ---- ----
Adjusted operating income $437.9 $362.8
Less: Cash interest expense - net (107.3) (89.9)
Cash taxes (37.7) (50.6)
Maintenance capital expenditures (64.4) (47.5)
Distributions to noncontrolling interests (18.9) (15.0)
Distributions from/contributions to
investments in nonconsolidated affiliates (6.5) 5.0
---- ---
Free cash flow $203.1 $164.8
Revenue generating capital expenditures (47.7) (26.4)
----- -----
Net $155.4 $138.4
--- ------ ------

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

($ in millions) December 31,
2011
Cash and cash equivalents $844.2
Client cash (373.9)
Deferred revenue-event related (229.2)
Accrued artist fees (3.4)
Collections on behalf of
others (59.4)
Prepaids related to artist
settlements/events 156.2
-----
Free cash $334.5
--------- ------

SOURCE Live Nation Entertainment

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

CONTACT: Maili Bergman of Live Nation Entertainment, +1-310-867-7000, IR@livenation.com

Web Site: http://www.livenation.com/investors (http://www.livenation.com/investors)

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