PR Newswire | Feb 25, 2021 04:25PM EST

02/25 16:05 CDT

Live Nation Entertainment Reports Fourth Quarter & Full Year 2020 Results LOS ANGELES, Feb. 25, 2021

Highlights

* 83% of Fans Continuing To Hold Onto Their Tickets * $950 Million Cost Reduction Achieved in 2020 * $1.65 Billion Cash Savings Achieved in 2020

LOS ANGELES, Feb. 25, 2021 /PRNewswire/ -- Live Nation Entertainment, Inc. (NYSE: LYV) today released financial results for the quarter ended December 31, 2020.

As we look back on 2020, it is clearly not the year anyone predicted, but I am very proud of how Live Nation has dug in and focused on turning this challenge into an opportunity to improve our business. I want to take a moment to thank our employees for their resilience and creativity, and acknowledge all of those affected by Covid and the shutdown of live events.

We Believe We Will Return to Live Even StrongerOver the last year, leaders across all our business lines of Concerts, Ticketing and Sponsorship have been analyzing ways to improve their businesses. Some of our key initiatives include: Re-organizing to become more nimble while also reducing our cost structure by $200 million; Building concert streaming and direct to consumer businesses to expand our revenue streams; Advancing our technology initiatives globally while accelerating the shift to digital tickets to meet changing needs of fans, venues and artists; and reinforcing our balance sheet to endure this period, while maintaining a strong position to build our business for the future and act on opportunities as we identify them, such as our recent acquisition of the streaming platform Veeps and a continued pipeline of bolt-on acquisitions throughout the globe.

So while this past year has been challenging for the company, our employees, fans, artists and so many others globally impacted by Covid, I have never been more excited about the opportunities in front of us.

Supply and Demand Pipeline is Very StrongWe continue to have a substantial tailwind in the live event industry, as consumers more than ever are looking to spend on experiences. The supply-demand fundamentals of the concerts business remain strong, with artists ready to get back on the road and fans eager to reconnect at events. All our data continues to show that there is substantial pent-up demand for concerts on the consumer demand side. The $2.4 trillion projected surplus in savings in the U.S. alone by June is a key indicator of consumer spending potential. At the same time, surveys demonstrate the high demand for concerts globally, with 95% of fans likely to attend a show when restrictions are lifted. This is proving out in fan behavior as well, with 83% of fans continuing to hold onto their tickets for rescheduled shows.

On the artist side there is a broad desire to get back on stage - to connect with their fans and to provide economic support to their bands, crew, and the hundreds of others employed each night putting on the show. Given the limited touring activity in 2020 and 2021, the pipeline for 2022 is much stronger than usual, with almost twice as many major touring artists on cycle in 2022 than a typical year - about 45 artists versus the usual 25. And there remains plenty of scheduling availability at arenas, amphitheaters and stadiums to accommodate these additional tours, with over two-thirds of these venues' nights unused by sporting events or major concerts in a typical year.

Vaccine Rollout EncouragingIt appears that the timing to release the pent-up supply and demand is now approaching. Vaccine distribution is accelerating and declines in Covid cases throughout most of the world gives us even more confidence that a safe and meaningful return to shows will soon be possible. For both the U.S. and U.K., projections indicate that everyone who wants to get vaccinated will be able to do so by May or June, with Europe and most other markets following a few months later. Given the massive social and economic toll that the lockdown has had on the public, we believe there will be strong momentum to reopen society swiftly as soon as vaccines are readily available. And we believe outdoor activities will be the first to happen.

So while the timing of our return to live will continue to vary across global markets, every sign points to it beginning safely in many countries sometime this summer and scaling further from there.

Michael RapinoPresident and Chief Executive OfficerLive Nation Entertainment, Inc.

Additional Information on LiquidityAt the end of the fourth quarter of 2020, the company had total cash and cash equivalents of $2.5 billion, which includes $643 million of free cash. This free cash, along with $962 million of available debt capacity and taking into account the additional $417 million of net cash added to the balance sheet with the debt raise in early January, gives the company $2.0 billion of available liquidity. The company believes this level of liquidity provides it with the ability to fund operations until the expected return of concerts in the summer of 2021, preceded by ticket sales earlier in the year.

The company will webcast a teleconference today at 2:00 p.m. Pacific Time to discuss its financial performance, operational matters and potentially other material developments. Interested parties should visit the "News / Events" 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 posted to the "Financial Info" section of the website. A replay of the webcast will also be available on the Live Nation website.

Notice Regarding Financial StatementsThe company has provided certain financial statements at the end of this press release for reference. These financial statements should be read in conjunction with the full financial statements, and the notes thereto, set forth in the company's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on Monday, March 1, 2021 and available on the SEC's website at sec.gov.

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

FINANCIAL HIGHLIGHTS - 4th QUARTER

(unaudited; $ in millions)



Q4 2020 Q4 2019 Q4 2020 Growth at Reported Reported GrowthConstant Constant Currency Currency

Revenue

Concerts $178.4 $2,296.6(92)%$176.8 (92) %

Ticketing 10.9 448.3 (98)%10.4 (98) %

Sponsorship & Advertising47.1 148.4 (68)%46.0 (69) %

Other and Eliminations 0.9 (3.9) * 0.9 *

$237.3 $2,889.4(92)%$234.1 (92) %



Operating Income (Loss)

Concerts $(236.4)$(166.4)(42)%$(233.6)(40) %

Ticketing (131.5) 61.0 * (130.4) *

Sponsorship & Advertising4.1 73.5 (94)%3.3 (95) %

Other and Eliminations (0.4) (0.7) 43 %(0.4) 43 %

Corporate (23.8) (50.3) 53 %(23.8) 53 %

$(388.0)$(82.9) * $(384.9)*



Adjusted Operating Income (Loss)

Concerts $(166.7)$(90.4) (84)%$(165.1)(83) %

Ticketing (73.7) 130.8 * (73.2) *

Sponsorship & Advertising14.2 82.5 (83)%13.4 (84) %

Other and Eliminations (1.8) (1.6) (13)%(1.8) (13) %

Corporate (16.3) (40.5) 60 %(16.3) 60 %

$(244.3)$80.8 * $(243.0)*

* percentages are not meaningful

FINANCIAL HIGHLIGHTS - 12 MONTHS

(unaudited; $ in millions)



12 Months 12 Months 12 Months Growth at 2020 2019 Growth2020 Constant Reported Reported Constant Currency Currency

Revenue

Concerts $1,468.4 $9,428.1 (84)%$1,481.7 (84) %

Ticketing 188.4 1,545.2 (88)%188.4 (88) %

Sponsorship & 203.7 590.3 (65)%202.6 (66) %Advertising

Other and 0.7 (15.6) * 0.7 * Eliminations

$1,861.2 $11,548.0(84)%$1,873.4 (84) %



Operating Income (Loss)

Concerts $(959.0) $(53.5) * $(960.0) *

Ticketing (612.0) 232.0 * (612.4) *

Sponsorship & 44.9 330.3 (86)%43.8 (87) %Advertising

Other and (13.5) (1.2) * (13.5) * Eliminations

Corporate (113.6) (182.8) 38 %(113.6) 38 %

$(1,653.2)$324.8 * $(1,655.7)*



Adjusted Operating Income (Loss)

Concerts $(638.8) $242.3 * $(639.7) *

Ticketing (374.6) 482.4 * (375.3) *

Sponsorship & 81.9 366.1 (78)%80.8 (78) %Advertising

Other and (13.5) (6.3) * (13.5) * Eliminations

Corporate (70.9) (142.0) 50 %(70.9) 50 %

$(1,015.9)$942.5 * $(1,018.6)*

* percentages are not meaningful

* As of December 31, 2020, total cash and cash equivalents were $2.5 billion, which includes $674 million in ticketing client cash and $643 million in free cash. * Event-related deferred revenue was $1.5 billion as of December 31, 2020, compared to $1.2 billion as of December 31, 2019. In addition, we had long-term deferred revenue of $35 million for events that have been rescheduled more than one year out as of December 31, 2020. * For the twelve months ended December 31, 2020, net cash used in operating activities was $(1.1) billion and free cash flow - adjusted was $(1.3) billion. * We currently expect capital expenditures for the full year to be approximately $150 million in 2021.

KEY OPERATING METRICS

(unaudited)



2020 2019 2018

(in thousands except estimated events)

Concerts ^(1)

Estimated events:

North America 5,270 28,407 24,186

International 2,847 11,830 10,810

Total estimated events 8,117 40,237 34,996

Estimated fans:

North America 6,075 62,687 61,159

International 5,067 34,967 31,607

Total estimated fans 11,142 97,654 92,766

Ticketing ^(2)

Estimated number of fee-bearing 31,101 219,838 217,442 tickets

Estimated number of non-fee-bearing 88,823 266,750 265,033 tickets

Total estimated tickets sold 119,924 486,588 482,475

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

The fee-bearing tickets estimated above include primary and secondary tickets that are sold using our Ticketmaster systems or that we issue through affiliates. This metric includes primary tickets sold during the period regardless of event timing, except for our own events where our concert^ promoters control ticketing which are reported when the events occur. The(2) non-fee-bearing tickets estimated above include primary tickets sold using our Ticketmaster systems, through season seat packages and our venue clients' box offices, along with tickets sold on our "do it yourself" platform. These ticketing metrics are net of any refunds requested and any cancellations that occurred during the period and up to the time of reporting of our financial statements. Fee-bearing tickets sold above are net of refunds of 27.4 million tickets for the year ended December 31, 2020.

Reconciliation of Certain Non-GAAP Measures to Their Most Directly ComparableGAAP Measures (Unaudited)

Reconciliation of Free Cash Flow - Adjusted to Net Cash Provided by (Used in)Operating Activities

($ in millions) Q4 2020 Q4 2019

Net cash provided by (used in) operating activities $ (125.7) $ 436.9

Less: Changes in operating assets and liabilities (working capital) (200.4) (388.5)

Free cash flow from earnings $ (326.1) $ 48.4

Less: Maintenance capital expenditures (9.1) (45.5)

Distributions to noncontrolling interests (10.1) (34.3)

Free cash flow - adjusted $ (345.3) $ (31.4)

Net cash provided by (used in) investing activities $ 0.4 $ (287.6)

Net cash provided by (used in) financing activities $ (12.3) $ 468.5

($ in millions) 12 Months 2020 12 Months 2019

Net cash provided by (used in) operating activities $ (1,082.6) $ 469.8

Less: Changes in operating assets and liabilities (working capital) (79.5) 287.9

Free cash flow from earnings $ (1,162.1) $ 757.7

Less: Maintenance capital expenditures (65.1) (150.9)

Distributions to noncontrolling interests (41.6) (107.5)

Free cash flow - adjusted $ (1,268.8) $ 499.3

Net cash used in investing activities $ (224.1) $ (691.0)

Net cash provided by financing activities $ 1,349.3 $ 328.9

Reconciliation of Free Cash to Cash and Cash Equivalents



($ in millions) December 31, 2020

Cash and cash equivalents $2,537.8

Client cash (673.5)

Deferred revenue - event-related (1,532.5)

Accrued artist fees (13.1)

Collections on behalf of others (51.1)

Prepaid expenses - event-related 375.5

Free cash $643.1

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

Certain statements in this press release, including the Supplemental Information that follows, 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 consumer demand and the concerts pipeline for 2022; the timing for reopening society, vaccinations, holding outdoor activities and returning to live events; and the company's current expectations for capital expenditures in 2021. 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 herein.

Adjusted Operating Income (Loss), or AOI, is a non-GAAP financial measure that we define as operating income (loss) before certain stock-based compensation expense, loss (gain) on disposal of operating assets, depreciation and amortization (including goodwill impairment), amortization of non-recoupable ticketing contract advances and acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation). We use AOI to evaluate the performance of our operating segments. We believe that information about AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), 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 our 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.

Constant Currency is a non-GAAP financial measure. We calculate currency impacts as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior period's currency exchange rates. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations.

Free Cash Flow - Adjusted, or FCF, is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities less changes in operating assets and liabilities, less maintenance capital expenditures, less distributions to noncontrolling interest partners. We use FCF among other measures, to evaluate the ability of operations to generate cash that is available for purposes other than maintenance capital expenditures. We believe that information about FCF provides investors with an important perspective on the cash available to service debt, make acquisitions, and for revenue generating capital expenditures. FCF is not calculated or presented in accordance with GAAP. A limitation of the use of FCF as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of our ability to fund our cash needs. Accordingly, FCF should be considered in addition to, and not as a substitute for, net cash provided by (used in) operating activities and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, FCF as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash is a non-GAAP financial measure that we define 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, plus event-related prepaids. We use free cash as a proxy for how much cash we have 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.

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



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



Loss Amortization of Adjusted Adjusted Operating Stock-based (gain) on non-recoupable operating Foreign operating ($ in income compensationdisposal Depreciationticketing Acquisitionincome exchangeincome millions) (loss) expense of and contract expenses (loss) impact (loss) operating advances reported constant assets amortization currency



Three Months Ended December 31, 2020



Concerts $(236.4) $ 2.4 $(0.4) $ 63.9 $- $ 3.8 $(166.7) $1.6 $(165.1)

Ticketing (131.5) 2.2 - 44.9 10.5 0.2 (73.7) 0.5 (73.2)

Sponsorship &4.1 1.2 - 8.9 - - 14.2 (0.8) 13.4 Advertising

Other & (0.4) - - - (1.4) - (1.8) - (1.8) Eliminations

Corporate (23.8) 4.1 - 2.6 - 0.8 (16.3) - (16.3)

Total Live $(388.0) $ 9.9 $(0.4) $ 120.3 $9.1 $ 4.8 $(244.3) $1.3 $(243.0) Nation



Three Months Ended December 31, 2019



Concerts $(166.4) $ 3.1 $(1.8) $ 62.9 $- $ 11.8 $(90.4) $- $(90.4)

Ticketing 61.0 1.7 - 40.4 27.2 0.5 130.8 - 130.8

Sponsorship &73.5 0.7 - 8.2 - 0.1 82.5 - 82.5 Advertising

Other & (0.7) - - - (1.0) 0.1 (1.6) - (1.6) Eliminations

Corporate (50.3) 6.4 - 3.4 - - (40.5) - (40.5)

Total Live $(82.9) $ 11.9 $(1.8) $ 114.9 $26.2 $ 12.5 $80.8 $- $80.8 Nation





Twelve Months Ended December 31, 2020



Concerts $(959.0) $ 68.8 $0.5 $ 266.3 $- $ (15.4) $(638.8) $(0.9)$(639.7)

Ticketing (612.0) 13.4 - 169.9 54.7 (0.6) (374.6) (0.7) (375.3)

Sponsorship &44.9 6.4 - 30.6 - - 81.9 (1.1) 80.8 Advertising

Other & (13.5) - - 6.7 (6.7) - (13.5) - (13.5) Eliminations

Corporate (113.6) 28.3 - 11.5 - 2.9 (70.9) - (70.9)

Total Live $(1,653.2)$ 116.9 $0.5 $ 485.0 $48.0 $ (13.1) $(1,015.9)$(2.7)$(1,018.6)Nation



Twelve Months Ended December 31, 2019



Concerts $(53.5) $ 12.9 $(2.5) $ 239.7 $- $ 45.7 $242.3 $- $242.3

Ticketing 232.0 6.3 0.1 156.9 85.8 1.3 482.4 - 482.4

Sponsorship &330.3 2.7 - 33.1 - - 366.1 - 366.1 Advertising

Other & (1.2) 0.1 - 0.3 (5.5) - (6.3) - (6.3) Eliminations

Corporate (182.8) 26.8 - 14.0 - - (142.0) - (142.0)

Total Live $324.8 $ 48.8 $(2.4) $ 444.0 $80.3 $ 47.0 $942.5 $- $942.5 Nation

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)



December 31, December 31, 2020 2019

(in thousands, except share data)

ASSETS

Current assets

Cash and cash equivalents $2,537,787 $2,470,362

Accounts receivable, less allowance of 486,734 994,606 $72,904 and $50,516, respectively

Prepaid expenses 577,130 667,044

Restricted cash 8,652 3,880

Other current assets 39,465 57,007

Total current assets 3,649,768 4,192,899

Property, plant and equipment, net 1,101,414 1,117,932

Operating lease assets 1,424,223 1,402,019

Intangible assets

Definite-lived intangible assets, net 855,600 870,141

Indefinite-lived intangible assets 369,058 368,954

Goodwill 2,129,203 1,998,498

Long-term advances 668,756 593,699

Other long-term assets 391,281 431,473

Total assets $10,589,303 $10,975,615

LIABILITIES AND EQUITY

Current liabilities

Accounts payable, client accounts $744,096 $1,005,888

Accounts payable 86,356 100,237

Accrued expenses 894,149 1,391,486

Deferred revenue 1,839,323 1,391,032

Current portion of long-term debt, net 53,415 37,795

Current portion of operating lease 107,147 121,950 liabilities

Other current liabilities 72,083 59,211

Total current liabilities 3,796,569 4,107,599

Long-term debt, net 4,855,096 3,271,262

Long-term operating lease liabilities 1,445,674 1,374,481

Long-term deferred income taxes 170,759 178,173

Other long-term liabilities 182,508 130,648

Commitments and contingent liabilities

Redeemable noncontrolling interests 272,449 449,498

Stockholders' equity

Preferred stock-Series A Junior Participating, $0.01 par value; 20,000,000 - - shares authorized; no shares issued and outstanding

Preferred stock, $0.01 par value; 30,000,000 shares authorized; no shares - - issued and outstanding

Common stock, $0.01 par value; 450,000,000 shares authorized; 218,423,061 and 214,117,644 shares issued and 218,015,037 2,145 2,113 and 213,709,620 shares outstanding in 2020 and 2019, respectively

Additional paid-in capital 2,386,790 2,245,619

Accumulated deficit (2,676,833) (949,334)

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

Accumulated other comprehensive loss (177,009) (145,713)

Total Live Nation stockholders' equity (471,772) 1,145,820

Noncontrolling interests 338,020 318,134

Total equity (133,752) 1,463,954

Total liabilities and equity $10,589,303 $10,975,615

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)



Year Ended December 31,

2020 2019 2018

(in thousands, except share and per share data)

Revenue $ 1,861,178 $ 11,547,969$ 10,787,800

Operating expenses:

Direct operating expenses 1,402,400 8,467,182 7,967,932

Selling, general and 1,524,342 2,145,486 1,997,028 administrative expenses

Depreciation and amortization485,025 443,991 386,529

Loss (gain) on disposal of 503 (2,373) 10,369 operating assets

Corporate expenses 102,100 168,839 153,406

Operating income (loss) (1,653,192) 324,844 272,536

Interest expense 226,832 157,521 140,976

Interest income (11,737) (14,406) (8,961)

Equity in losses (earnings) 5,458 (5,457) (2,747) of nonconsolidated affiliates

Other expense (income), net (17,080) 2,082 12,163

Income (loss) before income (1,856,665) 185,104 131,105 taxes

Income tax expense (benefit) (28,875) 66,892 40,765

Net income (loss) (1,827,790) 118,212 90,340

Net income (loss) attributable to (103,255) 48,323 30,091 noncontrolling interests

Net income (loss) attributable to common $ (1,724,535)$ 69,889 $ 60,249 stockholders of Live Nation



Basic and diluted net loss per common share available to$ (8.12) $ (0.02) $ (0.09) common stockholders of Live Nation



Weighted average common shares outstanding:

Basic and diluted 212,270,944 210,082,696 207,441,468





Reconciliation to net loss available to common stockholders of Live Nation:

Net income (loss) attributable to common $ (1,724,535)$ 69,889 $ 60,249 stockholders of Live Nation

Accretion of redeemable 1,180 (74,771) (77,900) noncontrolling interests

Basic and diluted net loss available to common $ (1,723,355)$ (4,882) $ (17,651) stockholders of Live Nation



LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)



Year Ended December 31,

2020 2019 2018

(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $(1,827,790)$118,212 $90,340

Reconciling items:

Depreciation 245,713 220,459 185,376

Amortization 239,312 223,532 201,153

Amortization of non-recoupable ticketing contract advances 47,971 80,302 80,087

Deferred income tax benefit (37,877) (465) (6,247)

Amortization of debt issuance costs and discounts 32,774 24,116 20,219

Provision for uncollectible accounts receivable 43,076 27,926 26,321

Non-cash compensation expense 116,889 48,785 45,582

Unrealized changes in fair value of contingent consideration (24,448) 6,698 14,125

Equity in losses (earnings) of nonconsolidated affiliates, net of 18,280 14,152 11,693 distributions

Other, net (15,995) (6,027) 6,609

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

Decrease (increase) in accounts receivable 490,588 (159,792) (135,429)

Decrease (increase) in prepaid expenses and other assets 141,631 (170,486) (266,241)

Increase (decrease) in accounts payable, accrued expenses and other (1,379,461) (45,920) 323,459 liabilities

Increase in deferred revenue 826,699 88,291 344,539

Net cash provided by (used in) operating activities (1,082,638) 469,783 941,586

CASH FLOWS FROM INVESTING ACTIVITIES

Advances of notes receivable (56,957) (50,035) (90,705)

Collections of notes receivable 80,963 13,216 33,914

Investments made in nonconsolidated affiliates (11,242) (57,280) (46,497)

Purchases of property, plant and equipment (213,746) (323,566) (239,833)

Cash paid for acquisitions, net of cash acquired (41,083) (235,071) (120,228)

Purchases of intangible assets (8,863) (42,261) (35,630)

Proceeds from sale of investments in nonconsolidated affiliates 19,003 1,455 -

Other, net 7,863 2,542 2,070

Net cash used in investing activities (224,062) (691,000) (496,909)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt, net of debt issuance costs 1,607,365 937,400 858,667

Payments on long-term debt including extinguishment costs (30,987) (437,267) (400,396)

Contributions from noncontrolling interests 4,668 14,285 4,900

Distributions to noncontrolling interests (41,625) (107,476) (59,187)

Purchases and sales of noncontrolling interests, net (106,242) (50,267) (159,634)

Proceeds from exercise of stock options 30,647 14,104 22,568

Taxes paid for net share settlement of equity awards (47,539) (15,353) (55,005)

Payments for deferred and contingent consideration (66,992) (26,537) (18,784)

Other, net 37 - (4,345)

Net cash provided by financing activities 1,349,332 328,889 188,784

Effect of exchange rate changes on cash, cash equivalents and restricted cash 29,565 (11,633) (84,080)

Net increase in cash, cash equivalents, and restricted cash 72,197 96,039 549,381

Cash, cash equivalents and restricted cash at beginning of period 2,474,242 2,378,203 1,828,822

Cash, cash equivalents and restricted cash at end of period $2,546,439 $2,474,242$2,378,203

SUPPLEMENTAL DISCLOSURE

Cash paid during the year for:

Interest, net of interest income $166,405 $103,915 $100,278

Income taxes, net of refunds $26,151 $66,937 $60,016

FOURTH QUARTER 2020Supplemental Information(unaudited)

Free Cash & Cash Used in the QuarterChanges to the company's free cash balance from the end of the third quarter of 2020 to the end of the fourth quarter were as follows:

(in millions)

Free cash balance at 9/30/2020 $951

Operational fixed costs (290)

Non-operational cash uses, including capital expenditures, (132) acquisition activity, net advances and interest payments

Operational contribution margin* 116

Inflows / (outflows) from cash management programs (2)

Free cash balance at 12/31/2020 $643

*Operational Contribution Margin is our contribution margin less one-time items(Ticketing refunds, insurance recoveries, and artist advance reserves) andexcluding the call center costs we have included in operational fixed costsabove.

Ticket Refunds - Q4 2020The global refund rate for the company's concerts that are rescheduled and are in or have gone through a refund window is 17% through the end of the fourth quarter of 2020. Festivals have generally canceled this year's event, but for festivals where fans can retain their tickets for next year's show, approximately 63% of fans are keeping their tickets.

Across both concerts and festivals, since March the company has refunded $282 million for rescheduled Live Nation shows and $842 million for canceled Live Nation shows. Of this $1.1 billion total, $460 million was from funds held by third-party venues and $663 million was from Live Nation-held funds.

The company still has some shows in the process of rescheduling, or that are rescheduled but not yet offering refunds. In addition, refunds may occur in the future for additional cancellations or rescheduled events resulting from the global shutdown of our live events. Based on current and estimated future impacted events and fan behavior, we have recorded $102 million in additional fan refunds from Live Nation-held funds. As a result, the company has reclassified these funds from deferred revenue to accrued ticket refunds as of the fourth quarter of 2020.

Event-Related Deferred RevenueThe company's deferred revenue for events over the next 12 months was $1.5 billion as of December 31, 2020 as compared to $1.4 billion as of September 30, 2020. This increase was due to ticket sales for future events, sales for events scheduled for Q4 2021 shifting from long-term to current deferred revenue as well as currency impacts on our international deferred revenue balances.

(in millions)

Current Deferred Revenue as of 9/30/2020 $1,362

Shift from long-term deferred revenue to current deferred 67 revenue

Adjustment to estimated additional future refunds from Live (30) Nation-held cash

Currency impacts 44

Ticket sales in the fourth quarter of 2020 98

Other / Net (9)

Current Deferred Revenue as of 12/31/2020 $1,532

In addition, the company had approximately $35 million of long-term event-related deferred revenue at the end of the fourth quarter of 2020.

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SOURCE Live Nation Entertainment