Live Nation Entertainment, Inc 8-K, filed Jul 27, 2023

Live Nation Entertainment, Inc. (LYV)

8-K 2023-07-27 For: 2023-07-27

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Added on April 08, 2026

About this 8-K

Live Nation Entertainment, Inc filed this 8-K on July 27, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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9348 Civic Center Drive
Beverly Hills, California						90210
(Address of principal executive offices)						(Zip Code)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit No.						Exhibit Description
99.1						Press release issued by Live Nation Entertainment, Inc. on July 27, 2023.






104						Cover Page Interactive Data File (embedded within the Inline XBRL document).


Investor Contact:			Media Contact:
Amy Yong			Kaitlyn Henrich
IR@livenation.com			Media@livenation.com
(310) 867-7143


	Q2 2023 Reported		Q2 2022 Reported		Growth		Q2 2023 Constant Currency		Growth at Constant Currency
Revenue
Concerts	$	4,633.3	3,597.8		29	%	$	4,621.3	28	%
Ticketing	709.3		575.3		23	%	707.5		23	%
Sponsorship & Advertising	302.9		263.8		15	%	299.4		13	%
Other and Eliminations	(14.8)		(2.7)		*		(14.9)		*
	$	5,630.7	$	4,434.2	27	%	$	5,613.3	27	%






Consolidated Operating Income	$	386.4	$	318.7	21	%	$	381.0	20	%

Adjusted Operating Income (Loss)
Concerts	$	168.1	123.0		37	%	$	164.5	34	%
Ticketing	292.7		230.8		27	%	290.4		26	%
Sponsorship & Advertising	203.1		178.3		14	%	201.8		13	%
Other and Eliminations	(18.2)		(2.1)		*		(18.2)		*
Corporate	(56.0)		(50.4)		(11)	%	(56.0)		(11)	%
	$	589.7	$	479.6	23	%	$	582.5	21	%


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company			☐


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			¨


	6 Months 2023 Reported		6 Months 2022 Reported		Growth		6 Months 2023 Constant Currency		Growth at Constant Currency
Revenue
Concerts	$	6,914.5	$	4,805.6	44	%	$	6,949.3	45	%
Ticketing	1,387.1		1,055.7		31	%	1,391.9		32	%
Sponsorship & Advertising	473.0		379.5		25	%	469.2		24	%
Other and Eliminations	(16.5)		(3.8)		*		(16.5)		*
	$	8,758.1	$	6,237.0	40	%	$	8,793.9	41	%






Consolidated Operating Income (Loss)	$	529.1	$	345.8	53	%	$	529.1	53	%

Adjusted Operating Income (Loss)
Concerts	$	168.9	$	73.8	*		$	167.1	*
Ticketing	563.7		437.0		29	%	561.8		29	%
Sponsorship & Advertising	298.7		248.0		20	%	297.8		20	%
Other and Eliminations	(26.1)		(6.5)		*		(26.1)		*
Corporate	(95.8)		(63.7)		(50)	%	(95.8)		(50)	%
	$	909.4	$	688.6	32	%	$	904.8	31	%


	Q2 2023		Q2 2022		6 Months 2023		6 Months 2022
	(in millions)
Adjusted Operating Income	$	589.7	$	479.6	$	909.4	$	688.6

Acquisition expenses	24.8		9.5		38.2		21.6
Amortization of non-recoupable ticketing contract advances	21.2		21.9		41.6		40.4
Depreciation and amortization	136.5		115.9		251.7		216.4
Loss on sale of operating assets	(7.0)		1.1		(6.5)		2.7
Stock-based compensation expense	27.8		12.5		55.3		61.7
Operating income	$	386.4	$	318.7	$	529.1	$	345.8


($ in millions)	Q2 2023		Q2 2022
Net cash provided by operating activities	$	491.0	$	349.1
Less: Changes in operating assets and liabilities (working capital)	34.7		78.5
Free cash flow from earnings	$	525.7	$	427.6
Less: Maintenance capital expenditures	(36.1)		(21.3)
Distributions to noncontrolling interests	(82.7)		(27.1)
Free cash flow — adjusted	$	406.9	$	379.2

Net cash used in investing activities	$	(239.4)	$	(129.7)

Net cash used in financing activities	$	(152.2)	$	(62.6)


($ in millions)	June 30, 2023
Cash and cash equivalents	$	7,128.9
Client cash	(1,381.1)
Deferred revenue — event-related	(4,330.1)
Accrued artist fees	(230.9)
Collections on behalf of others	(66.2)
Prepaid expenses — event-related	1,209.0
Free cash	$	2,329.6


	June 30, 2023		December 31, 2022
	(in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	7,128,873	$	5,606,457
Accounts receivable, less allowance of $66,669 and $63,294, respectively	1,889,652		1,465,383
Prepaid expenses	1,628,578		949,826
Restricted cash	7,769		5,917
Other current assets	122,076		131,939
Total current assets	10,776,948		8,159,522
Property, plant and equipment, net	1,904,020		1,487,663
Operating lease assets	1,582,873		1,571,395
Intangible assets
Definite-lived intangible assets, net	1,118,166		1,050,622
Indefinite-lived intangible assets, net	378,181		368,712
Goodwill	2,619,356		2,529,380
Long-term advances	654,938		568,558
Other long-term assets	890,608		724,989
Total assets	$	19,925,090	$	16,460,841
LIABILITIES AND EQUITY
Current liabilities
Accounts payable, client accounts	$	1,670,651	$	1,791,025
Accounts payable	293,865		180,076
Accrued expenses	2,778,581		2,368,434
Deferred revenue	5,025,871		3,134,800
Current portion of long-term debt, net	51,489		620,032
Current portion of operating lease liabilities	146,931		140,232
Other current liabilities	56,143		68,716
Total current liabilities	10,023,531		8,303,315
Long-term debt, net	6,554,697		5,283,467
Long-term operating lease liabilities	1,659,898		1,654,525

Other long-term liabilities	562,016		455,971
Commitments and contingent liabilities
Redeemable noncontrolling interests	753,519		669,766
Stockholders' equity


Common stock	2,291		2,285
Additional paid-in capital	2,438,660		2,698,316
Accumulated deficit	(2,680,716)		(2,971,229)
Cost of shares held in treasury	(6,865)		(6,865)
Accumulated other comprehensive income (loss)	59,253		(90,076)
Total Live Nation stockholders' equity	(187,377)		(367,569)
Noncontrolling interests	558,806		461,366
Total equity	371,429		93,797
Total liabilities and equity	$	19,925,090	$	16,460,841


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in thousands, except share and per share data)
Revenue	$	5,630,723	$	4,434,174	$	8,758,113	$	6,236,982
Operating expenses:
Direct operating expenses	4,164,778		3,267,023		6,280,367		4,338,045
Selling, general and administrative expenses	868,595		672,213		1,558,916		1,242,395
Depreciation and amortization	136,514		115,927		251,699		216,396
Loss (gain) on disposal of operating assets	(7,013)		1,065		(6,509)		2,730
Corporate expenses	81,478		59,247		144,493		91,657
Operating income	386,371		318,699		529,147		345,759
Interest expense	81,995		68,435		171,210		135,208
Loss on extinguishment of debt	—		—		18,366		—
Interest income	(56,452)		(13,192)		(96,765)		(20,756)
Equity in earnings of nonconsolidated affiliates	(5,558)		(1,955)		(9,665)		(6,243)

Other expense (income), net	(6,599)		5,039		4,984		14,438
Income before income taxes	372,985		260,372		441,017		223,112
Income tax expense	41,648		31,995		65,488		43,691
Net income	331,337		228,377		375,529		179,421
Net income attributable to noncontrolling interests	37,655		40,577		85,016		41,803
Net income attributable to common stockholders of Live Nation	$	293,682	$	187,800	$	290,513	$	137,618

Basic net income per common share available to common stockholders of Live Nation	$	1.04	$	0.69	$	0.78	$	0.31
Diluted net income per common share available to common stockholders of Live Nation	$	1.02	$	0.66	$	0.78	$	0.30

Weighted average common shares outstanding:
Basic	228,536,179		224,674,447		228,350,537		223,290,226
Diluted	243,660,186		243,634,764		230,490,937		231,367,674


Reconciliation to net income available to common stockholders of Live Nation:
Net income attributable to common stockholders of Live Nation	$	293,682	$	187,800	$	290,513	$	137,618
Accretion of redeemable noncontrolling interests	(56,621)		(32,560)		(111,554)		(68,274)
Net income available to common stockholders of Live Nation—basic	$	237,061	$	155,240	$	178,959	$	69,344
Convertible debt interest, net of tax	10,804		6,365		—		—
Net income available to common stockholders of Live Nation—diluted	$	247,865	$	161,605	$	178,959	$	69,344


Item 2.02			Results of Operations and Financial Condition.


Item 9.01			Financial Statements and Exhibits.


	Q2 2023	Q2 2022	6 Months 2023	6 Months 2022
	(in thousands except estimated events)
Concerts (1)
Estimated events:
North America	8,111	8,057	14,420	12,793
International	4,130	4,491	7,726	6,469
Total estimated events	12,241	12,548	22,146	19,262
Estimated fans:
North America	18,474	17,427	26,131	24,255
International	18,599	16,415	29,842	20,484
Total estimated fans	37,073	33,842	55,973	44,739
Ticketing (2)
Estimated number of fee-bearing tickets	78,879	71,966	151,145	123,529
Estimated number of non-fee-bearing tickets	71,236	67,847	144,436	127,730
Total estimated tickets sold	150,115	139,813	295,581	251,259


	Six Months Ended June 30,
	2023		2022
	(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	375,529	$	179,421
Reconciling items:
Depreciation	127,670		114,119
Amortization	124,029		102,277
Amortization of non-recoupable ticketing contract advances	41,597		40,392

Amortization of debt issuance costs and discounts	8,949		8,224
Loss on extinguishment of debt	18,366		—
Stock-based compensation expense	55,333		61,741
Unrealized changes in fair value of contingent consideration	20,100		18,010

Equity in losses of nonconsolidated affiliates, net of distributions	9,019		10,112
Provision for uncollectible accounts receivable	20,120		25,702
Loss (gain) on mark-to-market of equity investments	(26,408)		5,657
Other, net	4,918		3,928
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Increase in accounts receivable	(395,516)		(440,290)
Increase in prepaid expenses and other assets	(836,672)		(607,939)
Increase in accounts payable, accrued expenses and other liabilities	298,718		972,906
Increase in deferred revenue	1,801,097		1,053,178
Net cash provided by operating activities	1,646,849		1,547,438
CASH FLOWS FROM INVESTING ACTIVITIES
Advances of notes receivable	(118,973)		(30,558)
Collections of notes receivable	8,286		11,074
Investments made in nonconsolidated affiliates	(26,336)		(46,699)
Purchases of property, plant and equipment	(202,531)		(130,278)
Cash acquired from (paid for) acquisitions, net of cash paid (acquired)	69,359		(39,854)
Purchases of intangible assets	(35,088)		(6,129)

Other, net	6,077		(2,292)
Net cash used in investing activities	(299,206)		(244,736)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of debt issuance costs	986,766		4,009
Payments on long-term debt	(614,030)		(22,638)
Contributions from noncontrolling interests	14,716		13,448