Live Nation Entertainment Reports Fourth Quarter And Full Year 2013 Results

Live Nation Entertainment Reports Fourth Quarter And Full Year 2013 Results

Full Year 2013 Results - Record Performance

-- Concert Attendance Up 19% - Total Ticketmaster 400 Million Fans Delivering Over $17 Billion GTV

-- 900 Million Fans Visit Ticketmaster, Creating User Database of 250 Million Fan Preferences

-- Revenue Up 11% to $6.5 Billion

-- AOI Increased 10% to $505 Million

-- Moved to Profitability in Operating Income of $140 Million

-- Adjusted Net Income Up $157 Million to ($7 Million)

-- Reported Net Income Improved by $120 Million

-- Free Cash Flow Up 9% to $300 Million

-- Full Year Adjusted EPS Up $0.84 to ($0.04); Reported EPS Up $0.65





















LOS ANGELES, Feb. 24, 2014 /PRNewswire/ -- Live Nation Entertainment (NYSE: LYV) today released financial results for the three and twelve months ended December 31, 2013.

http://photos.prnewswire.com/prnvar/20140224/LA70780

2013 Results

We had a record year in 2013 and are well positioned for continued growth in 2014. During 2013, we further grew our unmatched concerts global fan base by 10 million fans, attracting almost 60 million fans to our concerts. This tremendous growth fueled our sponsorship and ticketing businesses with Ticketmaster managing nearly 400 million total tickets in 2013. Combined, we delivered a record year for revenue, AOI and free cash flow. Our results demonstrate the effectiveness of our business model, establishing Live Nation as what we believe to be the number one player in each of our businesses, with concerts driving our flywheel, which is then monetized across our high margin on-site, sponsorship and ticketing businesses.

Strong Fan Demand for Live Events

We continue to see the tremendous power of live events, with strong global consumer demand. Research shows that live events are a high priority for discretionary spending, and over 80% of our fans surveyed indicate that they plan on attending the same or more events in 2014 as in 2013.

Another sign of the strength of our business is that 85% of Live Nation's fan growth came organically, from our promoting more shows in amphitheaters, arenas and stadiums; from launching new festivals; and from establishing operations in new markets. We believe the live business will continue to have strong global growth for years to come as fan demand, artist supply and new markets come together.

Technology Making Live Music Global

Another reason for the strength of live events is that technology has rapidly transformed the business in a positive fashion; live is not duplicable, and new social platforms have enabled fans around the globe to get close to their favorite artists. Fans in every corner of the globe can discover, follow, share and embrace artists, translating into greater demand for tours in all markets.

And as music has gone global, technology is enabling a similar transformation of ticketing. Today the vast majority of ticketing transactions are online or via mobile. Ticket sales are continuing their rapid shift to mobile, almost doubling again in 2013 to 14% of total ticket sales.

Today fans are hearing about concerts either from friends or by some digital means 70% of the time. As Ticketmaster continues to improve its products for fans to buy and manage tickets digitally, more fans will be able to find out about shows, coordinate with their friends, and go to more concerts or other live events. As a result, we believe that Ticketmaster will sell more tickets, Ticketmaster's clients will benefit from increased sales and Live Nation concerts will increase its attendance per show.

Concerts Division Delivers Record Setting Performance

We continue to build share across our businesses, starting by growing our concert business well above industry growth rates, as we were the lead or exclusive promoter on 21 of the top 25 grossing tours in North America. In addition, we built our festival portfolio, adding a million fans, and we expanded further into emerging markets with nearly one million more fans there as well, now reaching fans in 33 countries.

As we grew the business, we did so consistently across markets and venue types - we increased both attendance and attendance per show at every type of venue, from theaters and clubs to amphitheaters to arenas and stadiums, showing the consistent strength of our business.

We are also seeing this growth across all genres of music, with country music delivering the greatest fan growth, up 2.3 million fans to nearly 7 million, increasing 50% from last year. Newer artists and genres also contributed to our growth, with 7 of our top 10 tours led by young artists and EDM as our fastest growing genre.

Artist Nation Directly Supports Concert Business

Our concerts growth was supported by greater alignment with our artist management business, as we increased the number of shows we promoted with top Artist Nation acts by 50%. This delivered increased value of approximately $20 million to our concerts and ticketing businesses, while also providing additional opportunities for our sponsors. 2013 was a year of rebuilding for this business, and we now feel confident that with new leadership we will grow our artist management business in 2014 and it will continue to be a valuable pipeline into our concerts flywheel.

Sponsorship & Advertising Continue Double-Digit Growth

Our sponsorship & advertising business has now reached almost $300 million in revenue, connecting over 750 sponsors with 900 million visitors to our online and mobile sites globally and our 60 million concert-going fans. We now have the scale to attract a broad advertising base, which drove a 26% increase in ad units sold in 2013.

At the same time our traditional sponsorship business continues to show strength, growing 11% last year. This was led by a 29% increase in festival sponsorship, where we continue averaging almost $10 revenue per fan across our 4.5 million fans attending 62 festivals.

Ticketmaster Focus on Products Driving Growth

Ticketmaster also continues to build upon its strength, with nearly 400 million tickets issued and managed, generating over $17 billion in gross transaction value, making Ticketmaster one of the top ecommerce sites in the world. And with a 106% client net renewal rate in 2013, our platforms and products are demonstrating their value to clients.

With the first new product launch enabled by our new platform, Ticketmaster resale delivered a 26% growth in GTV of tickets sold through our secondary business. This innovative fan-oriented product gives all options - primary and secondary - together in one place for full transparency for the fans. We believe the $9 billion secondary market that has historically not benefitted content owners will start to be captured by teams and artists, and Ticketmaster resale will be at the forefront of empowering this. To date we have partnered with two-thirds of the NFL, NBA and NHL teams and over 1,000 concerts in launching this product.

Our team of over 500 engineers continues to work on new mobile products, improving the online experience, and building a new ticketing platform to enable Ticketmaster to substantially upgrade its commerce suite of features for both fans and its B2B clients over the next two years.

2014 Growth Drivers

As we head into 2014, we are more optimistic than ever on the growth potential of our business and our ability to deliver our 3-year plan as laid out for 2014 and 2015.

While we had tremendous success building our concert fan base in 2013, we believe there is more runway ahead that will allow us to continue to build share, add festivals to our global portfolio and enter more emerging markets. Early indicators show we are off to a strong start, with event-related deferred revenue up 19% year on year to $434 million as of December 31(st), 2013 and concert ticket sales for shows in 2014 up 12% as of February 15(th), 2014 as compared to this time last year.

We expect sponsorship & advertising to continue dependable growth at recent historical rates, further building our global sponsor base and expanding our online ad units as we grow and extend our online and mobile presence.

At Ticketmaster, we plan on delivering a client net renewal rate of over 100% as we further distinguish ourselves as the best ticketing partner to help clients market and sell their events, and see continued opportunity in 2014 to further build our Ticketmaster resale platform. We have had a strong start to the year, with overall ticket sales up 8% through February 15(th) this year as compared to last year.

Michael Rapino

The company will webcast a teleconference today at 5:00 p.m. Eastern Time to discuss its financial performance. Interested parties should visit the Events & Webcasts 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 available under the Quarterly & Financial Reports portion of the Reports section at the same link. A replay of the webcast will also be available on the Live Nation website.

About Live Nation Entertainment:

Live Nation Entertainment (NYSE: LYV) is the world's leading live entertainment company comprised of four market leaders: Ticketmaster, Live Nation Concerts, Artist Nation Management and Live Nation Media/Sponsorship. For additional information, visit investors.livenationentertainment.com.

Follow us @twitter.com/LiveNationInc




FINANCIAL HIGHLIGHTS - 4th QUARTER AND FULL YEAR
(Q4 unaudited; $ in millions)
----------------------------


Q4 2013 Q4 2012 Growth 12 12
months months
2013 2012 Growth
------- ------- ------ ------ ------- ------

Revenue

Concerts $1,083.7 $915.8 18% $4,517.2 $3,870.4 17%

Ticketing 388.0 372.5 4% 1,407.8 1,374.0 2%

Artist
Nation 91.8 101.3 (9%) 352.9 399.9 (12%)

Sponsorship
&
Advertising 63.1 54.7 15% 284.7 247.9 15%

Other &
Eliminations (13.5) (7.1) (90%) (84.1) (73.2) (15%)
----- ---- ----- ----- ----- -----

$1,613.1 $1,437.2 12% $6,478.5 $5,819.0 11%
====== ====== === ====== ====== ===


Adjusted
Operating
Income
(Loss)

Concerts $(39.9) $(29.0) (38%) $60.3 $31.4 92%

Ticketing 80.7 68.6 18% 298.1 294.6 1%

Artist
Nation 12.0 5.1 ** 32.1 38.1 (16%)

Sponsorship
&
Advertising 40.5 37.8 7% 194.8 175.6 11%

Other &
Eliminations (0.6) (0.5) (20%) (1.8) (1.6) (13%)

Corporate (21.4) (19.5) (10%) (78.3) (79.0) 1%
----- ----- ----- ----- ----- ---

$71.3 $62.5 14% $505.2 $459.1 10%
===== ===== === ====== ====== ===


Operating
Income
(Loss)

Concerts $(81.4) $(77.1) (6%) $(39.6) $(120.1) 67%

Ticketing 19.3 22.4 (14%) 101.8 122.8 (17%)

Artist
Nation 0.3 (75.9) ** (11.7) (80.6) 85%

Sponsorship
&
Advertising 38.6 36.8 5% 191.6 173.8 10%

Other &
Eliminations (0.1) (0.1) ** - (0.1) **

Corporate (27.7) (32.4) 15% (102.4) (117.4) 13%
----- ----- --- ------ ------ ---

$(51.0) $(126.3) 60% $139.7 $(21.6) **
====== ====== === ====== ====== ===

** percentages are not meaningfulAs of December 31, 2013, total cash and cash equivalents were $1.3 billion, which includes $538 million in ticketing client cash and $445 million in free cash. Event-related deferred revenue was $434 million as of December 31, 2013, compared to $364 million as of the same date in 2012. Free cash flow was $17 million for the fourth quarter of 2013 as compared to $1 million in the fourth quarter of 2012, and $300 million for the full year 2013 versus $276 million for 2012 (including $26 million of tax refunds received in 2012).






LIVE NATION ENTERTAINMENT, INC.
KEY OPERATING METRICS


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

2013 2012 2011
---- ---- ----

Concerts
(1)

Total
estimated
events:

North
America 15,582 14,942 15,526

International 7,270 6,996 6,718
----- ----- -----

Total
estimated
events 22,852 21,938 22,244
------ ------ ------

Total
estimated
fans
(rounded):

North
America 38,009,000 32,079,000 31,060,000

International
(2) 21,527,000 17,915,000 16,803,000
---------- -------- --------

Total
estimated
fans 59,536,000 49,994,000 47,863,000
---------- -------- --------

Ancillary
net
revenue
per
attendee:

North
America
amphitheaters $18.44 $18.56 $18.11

International
festivals $17.69 $15.55 $16.62

Ticketing
(3)

Number
of
tickets
sold
(in
thousands):

Concerts 76,524 75,372 71,632

Sports 30,059 28,760 27,055

Arts
and
theater 19,112 19,961 21,891

Family 16,628 15,970 14,248

Other
(4) 6,529 7,669 6,541
----- ----- -----

148,852 147,732 141,367
------- ------- -------


Gross
transaction
value
of
tickets
sold
(in
thousands) $9,352,673 $9,146,254 $8,441,230


Sponsorship
&
Advertising

Sponsorship
revenue
(in
thousands) $212,869 $191,773 $179,734

Online
advertising
revenue
(in
thousands) $71,823 $56,148 $51,057



(1) Events generally represent a
single performance by an
artist. Fans generally
represent the number of
people who attended an
event. Festivals are
counted as one event in the
quarter in which the
festival begins but number
of fans is based on the
days the person was present
at the festival and thus
can be reported in multiple
quarters. Events and fan
attendance metrics are
estimated each quarter.

(2) In prior years, estimated
fans for international
festivals was based on the
number of fans who
purchased a ticket. In
2013, we are reporting
estimated fans for
international festivals
based on the number of fans
who attend the festival to
be consistent with all
other events. Prior period
amounts have been adjusted
to reflect the current
period presentation. This
adjustment resulted in
increases in estimated fans
of approximately 1.2
million and 1.1 million for
the years ended December
31, 2012 and 2011,
respectively.

(3) The number and gross
transaction value of
tickets sold includes
primary tickets only and
excludes tickets sold for
the 2012 Olympics. These
metrics include tickets
sold during the period
regardless of event timing
except for our promoted
events in our owned or
operated venues and in
certain European
territories where these
tickets are reported as the
events occur. The total
number of tickets sold
reported above for 2013,
2012 and 2011 excludes
approximately 250 million,
255 million and 256
million, respectively, of
tickets sold using our
Ticketmaster systems,
through season seat
packages and our venue
clients' box offices, for
which we do not receive a
fee.

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



LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


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

2013 2012 2011
---- ---- ----

(in thousands except share
and per share data)

Revenue $6,478,547 $5,819,047 $5,383,998

Operating
expenses:

Direct
operating
expenses 4,680,507 4,151,277 3,789,488

Selling,
general
and
administrative
expenses 1,226,892 1,143,632 1,111,969

Depreciation
and
amortization 368,923 429,557 343,018

(Gain)
loss
on
disposal
of
operating
assets (38,259) (514) 978

Corporate
expenses 94,385 113,364 112,157

Acquisition
transaction
expenses 6,439 3,370 8,051
----- ----- -----

Operating
income
(loss) 139,660 (21,639) 18,337

Interest
expense 111,659 123,740 120,414

Loss
(gain)
on
extinguishment
of
debt 36,269 (460) -

Interest
income (5,071) (4,170) (4,215)

Equity
in
earnings
of
nonconsolidated
affiliates (856) (9,921) (7,742)

Other
expense,
net 2,796 1,333 6,507
----- ----- -----

Loss
before
income
taxes (5,137) (132,161) (96,627)

Income
tax
expense
(benefit) 30,878 29,736 (26,224)
------ ------ -------

Net
loss (36,015) (161,897) (70,403)

Net
income
attributable
to
noncontrolling
interests 7,363 1,330 12,613
----- ----- ------

Net
loss
attributable
to
common
stockholders
of
Live
Nation
Entertainment,
Inc. $(43,378) $(163,227) $(83,016)
======== ======== ========


Basic
and stockholders
diluted of
net Live
loss Nation
per Entertainment,
common Inc.
share
attributable
to
common $(0.22) $(0.87) $(0.46)
====== ====== ======

Weighted
average
common
shares
outstanding:

Basic
and
diluted 193,885,066 186,955,748 182,388,070





LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS


December 31,
------------

2013 2012
---- ----

(in thousands)

ASSETS

Current assets

Cash and cash equivalents $1,299,184 $1,001,055

Accounts receivable, less
allowance of $19,850 and
$19,794 in 2013 and 2012,
respectively 439,151 415,790

Prepaid expenses 378,342 359,936

Other current assets 43,427 36,031
------ ------

Total current assets 2,160,104 1,812,812

Property, plant and equipment

Land, buildings and
improvements 816,931 852,175

Computer equipment and
capitalized software 421,846 338,919

Furniture and other
equipment 210,866 200,743

Construction in progress 52,883 56,822
------ ------

1,502,526 1,448,659

Less accumulated
depreciation 795,726 726,873
------- -------

706,800 721,786

Intangible assets

Definite-lived intangible
assets, net 676,564 724,463

Indefinite-lived
intangible assets 376,736 377,463

Goodwill 1,466,983 1,357,827

Other long-term assets 296,334 296,455
------- -------

Total assets $5,683,521 $5,290,806
======== =======

LIABILITIES AND EQUITY

Current liabilities

Accounts payable, client
accounts $656,253 $557,953

Accounts payable 111,320 102,718

Accrued expenses 668,799 626,723

Deferred revenue 486,433 402,002

Current portion of long-
term debt 278,403 62,050

Other current liabilities 54,310 16,726
------ ------

Total current liabilities 2,255,518 1,768,172

Long-term debt, net 1,530,484 1,677,955

Long-term deferred income
taxes 161,637 199,596

Other long-term liabilities 85,035 94,409

Commitments and contingent
liabilities

Redeemable noncontrolling
interests 61,041 42,100

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; 199,974,160
and 190,853,380 shares
issued and 199,566,136 and
190,853,380 shares
outstanding in 2013 and
2012, respectively 1,978 1,877

Additional paid-in capital 2,368,281 2,272,882

Accumulated deficit (951,796) (908,418)

Cost of shares held in
treasury (408,024 shares
in 2013) (6,865) -

Accumulated other
comprehensive loss (2,370) (10,923)
------ -------

Total Live Nation
Entertainment, Inc.
stockholders' equity 1,409,228 1,355,418

Noncontrolling interests 180,578 153,156
------- -------

Total equity 1,589,806 1,508,574
--------- ---------

Total liabilities and
equity $5,683,521 $5,290,806
======== =======





LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS


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

2013 2012 2011
---- ---- ----

(in thousands)

CASH FLOWS
FROM
OPERATING
ACTIVITIES

Net
loss $(36,015) $(161,897) $(70,403)

Reconciling
items:

Depreciation 122,164 124,593 129,177

Amortization 246,759 304,964 213,841

Deferred
income
tax
benefit (15,888) (10,957) (45,603)

Amortization
of
debt
issuance
costs
and
discount/
premium,
net 20,187 16,696 13,059

Provision
for
uncollectible
accounts
receivable
and
advances 6,098 8,787 9,272

Loss
(gain)
on
extinguishment
of
debt 36,269 (460) -

Non-
cash
compensation
expense 28,415 37,063 50,045

Unrealized
changes
in
fair
value
of
contingent
consideration (1,855) (894) (11,691)

(Gain)
loss
on
disposal
of
operating
assets (38,259) (514) 978

Equity
in
earnings
of
nonconsolidated
affiliates (856) (9,921) (7,742)

Other,
net (1,024) 1,642 2,481

Changes in
operating
assets and
liabilities,
net of
effects of
acquisitions
and
dispositions:

Decrease
(increase)
in
accounts
receivable 11,544 (20,319) (79,807)

Decrease
(increase)
in
prepaid
expenses 4,537 (69,175) 73,314

Increase
in
other
assets (115,645) (41,707) (83,928)

Increase
in
accounts
payable,
accrued
expenses
and
other
liabilities 114,253 64,437 6,817

Increase
(decrease)
in
deferred
revenue 36,788 124,760 (64,105)
------ ------- -------

Net
cash
provided
by
operating
activities 417,472 367,098 135,705
------- ------- -------

CASH FLOWS
FROM
INVESTING
ACTIVITIES

Distributions
from
nonconsolidated
affiliates 13,889 9,241 9,273

Investments
made
in
nonconsolidated
affiliates (9,628) (3,788) (15,770)

Purchases
of
property,
plant
and
equipment (134,868) (123,811) (107,500)

Proceeds
from
disposal
of
operating
assets,
net
of
cash
divested 82,618 8,293 7,391

Cash
paid
for
acquisitions,
net
of
cash
acquired (93,537) (75,641) (39,465)

Purchases
of
intangible
assets (522) (14,562) (2,591)

Other,
net (1,615) (3,523) (3,355)
------ ------ ------

Net
cash
used
in
investing
activities (143,663) (203,791) (152,017)
-------- -------- -------

CASH FLOWS
FROM
FINANCING
ACTIVITIES

Proceeds
from
long-
term
debt,
net
of
debt
issuance
costs 903,179 538,124 (669)

Payments
on
long-
term
debt (886,597) (525,060) (31,338)

Contributions
from
noncontrolling
interests 363 825 711

Distributions
to
noncontrolling
interests (17,384) (20,079) (20,863)

Purchases
and
sales
of
noncontrolling
interests,
net (50,876) (4,259) (47,610)

Proceeds
from
exercise
of
stock
options 85,110 1,143 2,705

Proceeds
from
sale
of
common
stock - - 76,492

Payments
for
deferred
and
contingent
consideration (811) (10,585) (23,807)

Net
cash
provided
by
(used
in)
financing
activities 32,984 (19,891) (44,379)
------ ------- -------

Effect
of
exchange
rate
changes
on
cash
and
cash
equivalents (8,664) 13,386 12,186
------ ------ ------

Net
increase
(decrease)
in
cash
and
cash
equivalents 298,129 156,802 (48,505)

Cash
and
cash
equivalents
at
beginning
of
period 1,001,055 844,253 892,758
--------- ------- -------

Cash
and
cash
equivalents
at
end
of
period $1,299,184 $1,001,055 $844,253
======= ======== ======
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 positioning for growth in 2014 and beyond, as well as its ability to deliver its 3-year plan as laid out for 2014 and 2015; its anticipated addition of festivals and entry into new emerging markets; its expectation that its sponsorship & advertising business will continue to grow in 2014 at recent historical rates; its expectations regarding strong client net renewal rates for Ticketmaster, as well as regarding increased ticket sales and related attendance, and the anticipated impacts of the company's new resale platform and other technological upgrades; and anticipated growth in the company's artist management business in 2014. 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 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, payments under the Trust Note and acquisition-related severance), depreciation and amortization (including goodwill impairment), loss (gain) on disposal of operating assets and non-cash and certain stock-based compensation expense (including expense associated with grants of certain stock-based awards which were 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 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 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.

Adjusted Net Income and Adjusted EPS are non-GAAP financial measures that the company defines as net income (loss)attributable to common stockholders of Live Nation Entertainment, Inc. less loss on extinguishment of debt on both a total and per share basis. The company uses adjusted net income and adjusted EPS to evaluate the performance of its operations without the impact of debt financing costs. The company believes that information about adjusted net income and adjusted EPS assists investors by allowing them to evaluate changes in the results of the business separate from financing transaction costs that affect net income. Adjusted net income and adjusted EPS are not calculated or presented in accordance with GAAP. A limitation of the use of adjusted net income and adjusted EPS as performance measures is that they do not reflect the costs of financing transactions. Accordingly, adjusted net income and adjusted EPS should be considered in addition to, and not as a substitute for, net income (loss) and net income (loss) per common share attributable to common stockholders of Live Nation Entertainment, Inc. and other measures of financial performance reported in accordance with GAAP. Furthermore, these measures may vary among other companies; thus, adjusted net income and adjusted EPS 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 Adjusted Non-cash Loss Depreciation Operating
millions) operating and stock- (gain) and income
income based on (loss)
(loss) compensation disposal
expense of
operating
assets Acquisition

amortization expenses


Three Months Ended December 31, 2013
------------------------------------


Concerts $(39.9) $1.6 $4.7 $35.8 $(0.6) $(81.4)

Ticketing 80.7 (0.8) - 62.2 - 19.3

Artist
Nation 12.0 0.2 (0.1) 11.7 (0.1) 0.3

Sponsorship
&
Advertising 40.5 0.2 - 1.6 0.1 38.6

Other and
Eliminations (0.6) - - (0.5) - (0.1)

Corporate (21.4) 4.1 - 0.5 1.7 (27.7)
----- --- --- --- --- -----

Total
Live
Nation $71.3 $5.3 $4.6 $111.3 $1.1 $(51.0)
===== ==== ==== ====== ==== ======


Three Months Ended December 31, 2012
------------------------------------


Concerts $(29.0) $1.4 $ - $45.5 $1.2 $(77.1)

Ticketing 68.6 1.6 - 44.6 - 22.4

Artist
Nation 5.1 0.8 - 79.4 0.8 (75.9)

Sponsorship
&
Advertising 37.8 0.1 - 0.9 - 36.8

Other and
Eliminations (0.5) (0.1) (0.2) (0.1) - (0.1)

Corporate (19.5) 5.6 - 0.6 6.7 (32.4)
----- --- --- --- --- -----

Total
Live
Nation $62.5 $9.4 $(0.2) $170.9 $8.7 $(126.3)
===== ==== ===== ====== ==== =======


Twelve Months Ended December 31, 2013
-------------------------------------


Concerts $60.3 $5.7 $(38.9) $132.4 $0.7 $(39.6)

Ticketing 298.1 5.3 - 190.8 0.2 101.8

Artist
Nation 32.1 0.6 0.6 42.6 - (11.7)

Sponsorship
&
Advertising 194.8 0.8 - 2.3 0.1 191.6

Other and
Eliminations (1.8) - - (1.8) - -

Corporate (78.3) 16.1 - 2.6 5.4 (102.4)
----- ---- --- --- --- ------

Total
Live
Nation $505.2 $28.5 $(38.3) $368.9 $6.4 $139.7
====== ===== ====== ====== ==== ======


Twelve Months Ended December 31, 2012
-------------------------------------


Concerts $31.4 $5.6 $(0.5) $145.6 $0.8 $(120.1)

Ticketing 294.6 6.3 (0.2) 165.9 (0.2) 122.8

Artist
Nation 38.1 1.8 - 115.7 1.2 (80.6)

Sponsorship
&
Advertising 175.6 0.6 - 1.2 - 173.8

Other and
Eliminations (1.6) (0.1) 0.2 (1.6) - (0.1)

Corporate (79.0) 22.8 - 2.8 12.8 (117.4)
----- ---- --- --- ---- ------

Total
Live
Nation $459.1 $37.0 $(0.5) $429.6 $14.6 $(21.6)
====== ===== ===== ====== ===== ======



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


($ in millions) Q4 Q4
2013 2012
----- -----

Adjusted operating income $71.3 $62.5

Less: Cash interest expense -
net (13.9) (23.0)

Cash taxes (12.8) (8.4)

Maintenance capital
expenditures (21.1) (20.8)

Distributions to noncontrolling
interests (5.1) (10.9)

Distributions from
(contributions to) investments
in nonconsolidated affiliates (1.3) 2.0
---- ---

Free cash flow $17.1 $1.4

Revenue generating capital
expenditures (15.1) (14.3)
----- -----

Net $2.0 $(12.9)
--- ---- -----


($ in millions) 12 12
months months
2013 2012
------ ------

Adjusted operating income $505.2 $459.1

Less: Cash interest expense -
net (86.7) (108.0)

Cash taxes (45.6) 2.2

Maintenance capital
expenditures (59.6) (63.0)

Distributions to noncontrolling
interests (17.4) (20.1)

Distributions from
(contributions to) investments
in nonconsolidated affiliates 4.3 5.5
--- ---

Free cash flow $300.2 $275.7

Revenue generating capital
expenditures (56.7) (60.3)
----- -----

Net $243.5 $215.4
--- ------ ------



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


($ in millions) December 31,

2013
----

Cash and cash equivalents $1,299.2

Client cash (538.4)

Deferred revenue - event-related (433.8)

Accrued artist fees (29.3)

Collections on behalf of others (37.0)

Prepaids related to artist
settlements/events 184.0
-----

Free cash $444.7
--------- ------





Reconciliation of Net Loss Attributable to Common Stockholders of Live
Nation Entertainment, Inc. to

Adjusted Net Income and Adjusted EPS
------------------------------------


($ in millions except share 12 months 12
and per share data) 2013 months
2012
---------- ------

Net Loss attributable to
common stockholders of Live
Nation Entertainment, Inc. $(43.4) $(163.2)

Add: Loss (gain) on
extinguishment of debt $36.3 $(0.5)
----- -----

Adjusted net loss
attributable to common
stockholders of Live Nation
Entertainment, Inc. $(7.1) $(163.7)
----- -----


Basic and diluted adjusted
net loss attributable to
common stockholders of Live
Nation Entertainment, Inc.
(Adjusted EPS) $(0.04) $(0.88)
---------------------------- ------ -----
Photo: http://photos.prnewswire.com/prnh/20140224/LA70780





SOURCE Live Nation Entertainment

Photo:http://photos.prnewswire.com/prnh/20100603/LA14899LOGO
http://photoarchive.ap.org/
Photo:http://photos.prnewswire.com/prnh/20140224/LA70780
http://photoarchive.ap.org/
Live Nation Entertainment

CONTACT: Investors, Maili Bergman, +1-310-867-7000, IR@livenation.com, or Media, Jacqueline Peterson, +1-310-360-3051, jacquelinepeterson@livenation.com

Web Site: http://investors.livenationentertainment.com


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Profile: intent