PR Newswire | Nov 4, 2021 04:06PM EDT

11/04 15:05 CDT

Live Nation Entertainment Reports Third Quarter 2021 Results LOS ANGELES, Nov. 4, 2021

LOS ANGELES, Nov. 4, 2021 /PRNewswire/ --

Highlights

* All Business Segments Returned to Positive Operating Income and AOI Resulting in Company-Wide Operating Income of $137 million and AOI of $306 million * Ticketmaster Delivered its Highest Operating Income and AOI Quarter Ever at $114 million and $172 million, respectively * Fan Demand Led to Double-Digit Growth in Pricing and On-Site Spending * The Return to Live is Accelerating with Show Count Up Double-Digits for 2022 Relative to This Time in 2019 * Sponsorship Commitments for 2022 Are Up Double-Digits Relative to This Time in 2019

Live Nation Entertainment, Inc. (NYSE: LYV) today released financial results for the quarter ended September 30, 2021.

Third quarter marked return to live at scaleLive music roared back over the past quarter, driving all our business segments to positive operating income and AOI for the first time in two years, with a company-wide operating income and AOI of $137 million and $306 million, respectively.

The 2021 summer concerts season rebounded quickly, with 17 million fans attending our shows in the quarter, as the return to live reflected tremendous pent-up demand. Festivals were a large part of our return to live this summer, with many of our festivals selling out in record time and overall ticket sales for major festivals were up 10% versus 2019. And we have had a number of tours already sell over 500 thousand tickets for shows this year, including sell-out tours by Harry Styles, Chris Stapleton and others.

In addition to increased attendance, strong demand also enabled improved pricing, with average amphitheater and major festival pricing up double-digits versus 2019. And at our shows, fans spent at record levels, with on-site spending per fan up over 20% in amphitheaters and festivals compared to 2019.

We delivered these results within an operating environment that required us to ramp up quickly, institute new health and safety protocols, and staff our front line in a tight labor market. On the health and safety front, we set the industry standard by requiring proof of vaccine or testing for our shows, with no change in fan purchasing behavior. More importantly, our protocols proved effective in mitigating major Covid disruptions to our business in the U.S. and the U.K. and allowed us to work in conjunction with local health officials to mitigate transmission risks from our events. On the labor front, we were able to meet staffing requirements for our peak outdoor season without any show disruption.

We also saw strong fan demand in our Ticketmaster results, which delivered its highest operating income and AOI quarter ever. Third quarter was Ticketmaster's fourth highest fee-bearing GTV quarter ever excluding refunds, led by sports leagues restarting and concert on-sales for 2022 ramping up. In addition, Ticketmaster's secondary business delivered its highest GTV month in September, showing continued growth in the segment even as artists and content owners continue shifting more of the value to primary sales.

As fans came back, so too did our brand partners who continue to seek to connect to the live music fans. As a result, our sponsorship and advertising business delivered over $100 million in operating income and AOI in the quarter, the first time at this level since third quarter of 2019. The return of sponsorship and advertising has been largely driven by our historical major partners, along with the addition of new brands including Truly Hard Seltzer, as well as Coinbase and Solana in the fintech space.

Leading indicators point to a record 2022

As we now look forward to 2022, we are encouraged by all our leading indicators across each business. Through October, our confirmed show count across amphitheaters, arenas and stadiums is up double-digits relative to the same time in 2019 for 2020 shows, and through mid-October, we have already sold 22 million tickets for our shows in 2022. Demand has been stronger than ever for many of these on-sales with one million tickets sold for each Coldplay and Red Hot Chili Peppers tours, and several other tours already selling over 500 thousand tickets.

Ticketmaster's on-sales for 2022 reinforce this demand, as we expect the 2021 fourth quarter transacted fee-bearing GTV to be at a record level, even after already selling 65 million fee-bearing tickets for events next year. Ticketmaster has also added clients representing 14 million net new fee-bearing tickets so far this year, further accelerating its growth on a global basis.

Our sponsorship and advertising business has had similar success with its clients, with our confirmed pipeline for 2022 up double-digits relative to this time in 2019 for 2020.

At the same time, we are continuing our cost focus to deliver $200 million in structural savings from our pre-pandemic 2020 plan, making us more nimble and better positioned to invest for future growth.

As we get close to turning the page on 2021, I remain more convinced than ever on the power and potential of live entertainment, and the strength of our position. No industry was more impacted by the pandemic over the last two years, and no industry has so proven its durability of demand in the face of such disruption.

I fully expect we will continue to have bumps in the road in the coming months, and it will take some time for international artists to be touring on a truly global basis, but the fundamental strength of live entertainment and Live Nation has proven out, and I expect we will only continue to grow from here.

Michael RapinoPresident and Chief Executive OfficerLive Nation Entertainment, Inc.

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 Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission today 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 - THIRD QUARTER (unaudited; $ in millions)



Q3 2021 Q3 2020 Q3 2021 Growth at Reported Reported GrowthConstant Constant Currency Currency

Revenue

Concerts $2,151.6$154.8 * $2,132.5*

Ticketing 374.2 (19.8) * 372.3 *

Sponsorship & Advertising 174.4 47.9 * 172.6 *

Other and Eliminations (1.7) 1.1 * (1.6) *

$2,698.5$184.0 * $2,675.8*



Operating Income (Loss)

Concerts $(32.8) $(281.6)88 %$(33.4) 88 %

Ticketing 114.3 (197.4) * 114.9 *

Sponsorship & Advertising 102.8 13.8 * 101.3 *

Other and Eliminations (0.1) (4.8) 98 %0.1 *

Corporate (47.1) (34.4) (37)%(47.1) (37)%

$137.1 $(504.4)* $135.8 *



Adjusted Operating Income (Loss)

Concerts $59.6 $(173.4)* $58.2 *

Ticketing 171.8 (141.9) * 171.8 *

Sponsorship & Advertising 111.2 22.9 * 109.8 *

Other and Eliminations (1.2) (5.1) 76 %(1.2) 76 %

Corporate (35.7) (21.7) (65)%(35.7) (65)%

$305.7 $(319.2)* $302.9 *



* percentages are not meaningful

FINANCIAL HIGHLIGHTS - NINE MONTHS (unaudited; $ in millions)



9 Months 9 Months 9 Months Growth at 2021 2020 Growth2021 Constant Reported Reported Constant Currency Currency

Revenue

Concerts $2,678.0$1,290.0 * $2,642.6*

Ticketing 646.6 177.4 * 639.2 *

Sponsorship & Advertising 241.7 156.6 54 %237.8 52 %

Other and Eliminations (0.9) (0.2) * (0.9) *

$3,565.4$1,623.8 * $3,518.7*



Operating Income (Loss)

Concerts $(324.5)$(722.6) 55 %$(316.6)56 %

Ticketing 37.4 (480.5) * 43.3 *

Sponsorship & Advertising 101.6 40.8 * 99.4 *

Other and Eliminations (0.1) (13.0) 99 %(0.1) 99 %

Corporate (107.7) (89.9) 20 %(107.8) (20) %

$(293.3)$(1,265.2)77 %$(281.8)78 %



Adjusted Operating Income (Loss)

Concerts $(99.0) $(472.3) 79 %$(96.7) 80 %

Ticketing 208.4 (300.8) * 210.0 *

Sponsorship & Advertising 127.8 67.7 89 %125.6 85 %

Other and Eliminations (4.6) (11.7) 61 %(4.6) 61 %

Corporate (69.0) (54.5) (27)%(69.0) (27) %

$163.6 $(771.6) * $165.3 *



* percentages are not meaningful

* As of September 30, 2021, total cash and cash equivalents were $4.6 billion, which includes $1.3 billion in ticketing client cash and $1.7 billion in free cash. This free cash, along with $571 million of available debt capacity, gives the company $2.3 billion of available liquidity. The company believes this level of liquidity will provide it with the runway it needs as more shows returns. * Event-related deferred revenue was $1.9 billion as of September 30, 2021 compared to $1.4 billion as of September 30, 2020. In addition, the company had long-term deferred revenue of $101 million for events scheduled more than one year out as of September 30, 2021. * For the nine months ended September 30, 2021, net cash provided by operating activities was $1.0 billion and free cash flow - adjusted was $(129.9) million. * The company currently expects capital expenditures for the full year to be approximately $185 million in 2021, with over 60% of this spend going into revenue generating projects.

KEY OPERATING METRICS (unaudited)



Q3 2021Q3 20209 Months 20219 Months 2020

(in thousands except estimated events)

Concerts ^(1)

Estimated events:

North America 4,235 219 5,695 5,016

International 1,328 141 2,252 2,571

Total estimated events 5,563 360 7,947 7,587

Estimated fans:

North America 13,425204 14,151 5,943

International 3,427 61 4,562 4,779

Total estimated fans 16,852265 18,713 10,722

Ticketing ^(2)

Estimated number of fee-bearing tickets 43,2961,323 76,222 28,658

Estimated number of non-fee-bearing tickets39,7988,392 78,174 70,031

Total estimated tickets sold 83,0949,715 154,396 98,689

_________



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^(1) the festival begins, but the number of fans 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 non-fee-bearing tickets estimated above include primary tickets sold using our Ticketmaster systems, through season seat packages and our venue ^(2) 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 these consolidated financial statements, which may result in a negative number. Fee-bearing tickets sold above are net of refunds of 5.8 million and 5.2 million tickets for the three months ended September 30, 2021 and 2020, respectively, and 12.9 million and 23.2 million tickets for the nine months ended September 30, 2021 and 2020, respectively.

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) Q3 2021 Q3 2020

Net cash used in operating activities $ (145.3) $ (566.5)

Less: Changes in operating assets and liabilities (working capital) 356.8 223.9

Free cash flow from earnings $ 211.5 $ (342.6)

Less: Maintenance capital expenditures (22.9) (10.3)

Distributions to noncontrolling interests (11.1) (5.2)

Free cash flow - adjusted $ 177.5 $ (358.1)

Net cash used in investing activities $ (61.5) $ (33.9)

Net cash provided by (used in) financing activities $ 820.8 $ (100.5)

($ in millions) 9 Months 9 Months 2020 2021

Net cash provided by (used in) operating activities $ 1,024.7 $ (956.9)

Less: Changes in operating assets and liabilities (working capital) (1,091.8) 120.9

Free cash flow from earnings $ (67.1) $ (836.0)

Less: Maintenance capital expenditures (37.2) (56.0)

Distributions to noncontrolling interests (25.6) (31.5)

Free cash flow - adjusted $ (129.9) $ (923.5)

Net cash used in investing activities $ (111.8) $ (224.5)

Net cash provided by financing activities $ 1,222.3 $ 1,361.6

Reconciliation of Free Cash to Cash and Cash Equivalents

September($ in millions) 30, 2021

Cash and cash equivalents $ 4,628.9

Client cash (1,259.3)

Deferred revenue - event-related (1,869.2)

Accrued artist fees (69.1)

Collections on behalf of others (87.1)

Prepaid expenses - 402.6event-related

Free cash $ 1,746.8

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 leading indicators pointing to a record 2022; the company's current expectations for fourth quarter 2021 transacted gross transaction value (GTV) in its Ticketmaster business; the company's cost focus and anticipated $200 million in structural savings from its pre-pandemic 2020 plan; the strength of the company's positioning and prospects for future growth; the company's belief that its level of liquidity will provide it with the runway it needs as more shows return; the company's current expectations for capital expenditures for 2021; and estimated additional fan refunds for the year. 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 Adjusted Adjusted Operating Stock-based (gain) on of operating Foreign operating ($ in millions) income compensationdisposal Depreciation andnon-recoupableAcquisitionincome exchangeincome (loss) expense of ticketing expenses (loss) impact (loss) operatingamortization contract reported constant assets advances currency



Three Months Ended September 30, 2021



Concerts $(32.8) $14.2 $(1.1) $ 59.5 $- $19.8 $59.6 $(1.4)$58.2

Ticketing 114.3 3.3 (0.1) 32.0 21.7 0.6 171.8 - 171.8

Sponsorship & 102.8 1.3 - 7.2 - (0.1) 111.2 (1.4) 109.8 Advertising

Other & (0.1) - - - (1.2) 0.1 (1.2) - (1.2) Eliminations

Corporate (47.1) 8.5 0.1 2.5 - 0.3 (35.7) - (35.7)

Total Live Nation$137.1 $27.3 $(1.1) $ 101.2 $20.5 $20.7 $305.7 $(2.8)$302.9



Three Months Ended September 30, 2020



Concerts $(281.6) $39.6 $0.2 $ 65.8 $- $2.6 $(173.4)$- $(173.4)

Ticketing (197.4) 5.4 - 42.6 9.2 (1.7) (141.9) - (141.9)

Sponsorship & 13.8 2.5 - 6.6 - - 22.9 - 22.9 Advertising

Other & (4.8) - - 2.2 (2.5) - (5.1) - (5.1) Eliminations

Corporate (34.4) 9.2 - 2.7 - 0.8 (21.7) - (21.7)

Total Live Nation$(504.4) $56.7 $0.2 $ 119.9 $6.7 $1.7 $(319.2)$- $(319.2)



Nine Months Ended September 30, 2021



Concerts $(324.5) $34.2 $(1.0) $ 180.9 $- $11.4 $(99.0) $2.3 $(96.7)

Ticketing 37.4 12.2 (0.1) 103.4 53.8 1.7 208.4 1.6 210.0

Sponsorship & 101.6 4.3 - 21.8 - - 127.8 (2.2) 125.6 Advertising

Other & (0.1) - - 0.1 (4.6) - (4.6) - (4.6) Eliminations

Corporate (107.7) 29.5 0.1 7.6 - 1.5 (69.0) - (69.0)

Total Live Nation$(293.3) $80.2 $(1.0) $ 313.8 $49.2 $14.6 $163.6 $1.7 $165.3



Nine Months Ended September 30, 2020



Concerts $(722.6) $66.4 $0.9 $ 202.3 $- $(19.3) $(472.3)$- $(472.3)

Ticketing (480.5) 11.2 - 125.1 44.1 (0.7) (300.8) - (300.8)

Sponsorship & 40.8 5.2 - 21.8 - (0.1) 67.7 - 67.7 Advertising

Other & (13.0) - - 6.6 (5.3) - (11.7) - (11.7) Eliminations

Corporate (89.9) 24.2 - 9.0 - 2.2 (54.5) - (54.5)

Total Live Nation$(1,265.2)$107.0 $0.9 $ 364.8 $38.8 $(17.9) $(771.6)$- $(771.6)



LIVE NATION ENTERTAINMENT, INC. CONSOLIDATED BALANCE SHEETS (unaudited)



September 30,December 31, 2021 2020

(in thousands)

ASSETS

Current assets

Cash and cash equivalents $4,628,880 $2,537,787

Accounts receivable, less allowance of $53,116 and $72,904, respectively1,182,242 486,734

Prepaid expenses 691,086 577,130

Restricted cash 4,317 8,652

Other current assets 48,766 39,465

Total current assets 6,555,291 3,649,768

Property, plant and equipment, net 1,041,854 1,101,414

Operating lease assets 1,390,650 1,424,223

Intangible assets

Definite-lived intangible assets, net 732,276 855,600

Indefinite-lived intangible assets 369,016 369,058

Goodwill 2,109,719 2,129,203

Long-term advances 651,794 668,756

Other long-term assets 480,144 391,281

Total assets $13,330,744$10,589,303

LIABILITIES AND EQUITY

Current liabilities

Accounts payable, client accounts $1,499,131 $744,096

Accounts payable 111,142 86,356

Accrued expenses 1,445,840 894,149

Deferred revenue 2,303,373 1,839,323

Current portion of long-term debt, net 46,214 53,415

Current portion of operating lease liabilities 111,090 107,147

Other current liabilities 41,314 72,083

Total current liabilities 5,558,104 3,796,569

Long-term debt, net 5,686,905 4,855,096

Long-term operating lease liabilities 1,448,270 1,445,674

Long-term deferred income taxes 174,083 170,759

Other long-term liabilities 242,811 182,508

Commitments and contingent liabilities

Redeemable noncontrolling interests 262,347 272,449

Stockholders' equity

Common stock 2,218 2,145

Additional paid-in capital 2,903,613 2,386,790

Accumulated deficit (3,132,813) (2,676,833)

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

Accumulated other comprehensive loss (170,997) (177,009)

Total Live Nation stockholders' equity (404,844) (471,772)

Noncontrolling interests 363,068 338,020

Total equity (41,776) (133,752)

Total liabilities and equity $13,330,744$10,589,303

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



Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

(in thousands, except share and per share data)

Revenue $2,698,722$184,018 $3,565,277$1,623,795

Operating expenses:

Direct operating expenses 1,969,912 130,749 2,346,998 1,199,126

Selling, general and administrative expenses 446,929 405,934 1,098,676 1,243,307

Depreciation and amortization 101,235 119,938 313,758 364,785

Loss (gain) on disposal of operating assets (1,148) 208 (1,038) 897

Corporate expenses 44,649 31,630 100,195 80,858

Operating income (loss) 137,145 (504,441) (293,312) (1,265,178)

Interest expense 70,407 66,093 210,146 162,781

Interest income (1,333) (2,810) (3,953) (9,712)

Equity in losses (earnings) of nonconsolidated affiliates (7,025) 2,615 (4,608) 6,656

Gain from sale of investments in nonconsolidated affiliates (30,633) (2,514) (83,580) (2,479)

Other expense (income), net 12,441 (8,463) 19,903 (9,043)

Income (loss) before income taxes 93,288 (559,362) (431,220) (1,413,381)

Income tax expense (benefit) 6,421 (16,904) 15,095 (49,417)

Net income (loss) 86,867 (542,458) (446,315) (1,363,964)

Net income (loss) attributable to noncontrolling interests 39,989 (13,556) 9,665 (82,761)

Net income (loss) attributable to common stockholders of Live$46,878 $(528,902)$(455,980)$(1,281,203)Nation



Basic net income (loss) per common share available to common $0.20 $(2.45) $(2.13) $(6.08) stockholders of Live Nation

Diluted net income (loss) per common share available to $0.19 $(2.45) $(2.13) $(6.08) common stockholders of Live Nation



Weighted average common shares outstanding:

Basic and diluted 216,888,355212,593,719215,716,239211,781,620

Diluted 223,800,400212,593,719215,716,239211,781,620





Reconciliation to net income (loss) available to common stockholders of Live Nation:

Net income (loss) attributable to common stockholders of Live$46,878 $(528,902)$(455,980)$(1,281,203)Nation

Accretion of redeemable noncontrolling interests (4,245) 6,990 (4,210) (5,955)

Basic and diluted net income (loss) available to common $42,633 $(521,912)$(460,190)$(1,287,158)stockholders of Live Nation



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



Nine Months Ended September 30,

2021 2020

(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss $(446,315)$(1,363,964)

Reconciling items:

Depreciation 167,170 184,391

Amortization 146,588 180,394

Amortization of non-recoupable ticketing contract advances 49,214 38,833

Deferred income tax expense (benefit) 4,365 (22,615)

Amortization of debt issuance costs and discounts 27,916 24,201

Non-cash compensation expense 80,165 106,965

Unrealized changes in fair value of contingent consideration (6,998) (25,745)

Equity in losses of nonconsolidated affiliates, net of distributions 6,396 8,266

Provision for uncollectible accounts receivable (14,006) 48,413

Gain on sale of investments in nonconsolidated affiliates (83,580) (2,479)

Other, net 2,015 (12,681)

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

Decrease (increase) in accounts receivable (690,105) 406,202

Decrease (increase) in prepaid expenses and other assets (92,635) 1,793

Increase (decrease) in accounts payable, accrued expenses and other liabilities 1,323,448 (1,213,409)

Increase in deferred revenue 551,059 684,532

Net cash provided by (used in) operating activities 1,024,697 (956,903)

CASH FLOWS FROM INVESTING ACTIVITIES

Advances of notes receivable (24,476) (12,232)

Collections of notes receivable 16,500 13,838

Investments made in nonconsolidated affiliates (55,246) (9,728)

Purchases of property, plant and equipment (103,914) (187,036)

Cash paid for acquisitions, net of cash acquired (19,594) (37,283)

Proceeds from sale of investments in nonconsolidated affiliates 80,593 3,753

Other, net (5,622) 4,156

Net cash used in investing activities (111,759) (224,532)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt, net of debt issuance costs 904,164 1,608,462

Payments on long-term debt (93,168) (24,202)

Contributions from noncontrolling interests 15,985 2,568

Distributions to noncontrolling interests (25,632) (31,473)

Purchases and sales of noncontrolling interests, net (3,273) (106,971)

Proceeds from exercise of stock options 30,322 18,092

Proceeds from sale of common stock, net of issuance costs 449,415 -

Taxes paid for net share settlement of equity awards (42,731) (42,818)

Payments for deferred and contingent consideration (12,845) (62,035)

Other, net 84 13

Net cash provided by financing activities 1,222,321 1,361,636

Effect of exchange rate changes on cash, cash equivalents and restricted cash (48,501) (20,952)

Net increase in cash, cash equivalents, and restricted cash 2,086,758 159,249

Cash, cash equivalents and restricted cash at beginning of period 2,546,439 2,474,242

Cash, cash equivalents and restricted cash at end of period $4,633,197$2,633,491

THIRD QUARTER 2021 Supplemental Earnings Tables (unaudited)



Free Cash & Cash Used in the Quarter



Changes to the company's free cash balance from the end of second quarter of 2021 to the end of the third quarter of 2021 were as follows:



(in millions)

Free cash balance at 6/30/2021 $ 1,103

Operational burn * (384)

Non-operational cash uses, including capital expenditures, acquisition (197) activity, net advances and interest payments

Operational contribution margin ** 747

Draw down on Term Loan A 400

Equity raise for OCESA acquisition 449

Inflows / (outflows) from timing classification changes between short-term and (371) long-term

Free cash balance at 9/30/2021 $ 1,747



* Operational burn is our SG&A and Corporate costs less bonus, severance and bad debt.



** Operational contribution margin is our contribution margin less one-time items (Ticketing refunds, insurance recoveries, and artist advance reserves).

Event-Related Deferred Revenue



The company's deferred revenue for events over the next 12 months was $1,869 million as of September 30, 2021, compared to $2,125 million as of June 30, 2021. The decrease was due to shows that played off and estimated refunds from Live Nation cash were partially offset by ticket sales in the third quarter and the shift from long-term deferred revenue.



(in millions)

Current Deferred Revenue as of 6/30/2021 $ 2,125

Shift from long-term deferred revenue to current deferred revenue 280

Adjustment to estimated additional future refunds from Live Nation-held cash20

Currency impacts (25)

Ticket sales in the third quarter of 2021 474

Cash from shows that played off (841)

Estimated refunds from Live Nation cash (174)

Other / Net 10

Current Deferred Revenue as of 9/30/2021 $ 1,869



In addition, the company had approximately $101 million of long-term event-related deferred revenue at the end of the third quarter of 2021.

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SOURCE Live Nation Entertainment