PR Newswire | Aug 5, 2020 04:03PM EDT

08/05 15:03 CDT

Live Nation Entertainment Reports Second Quarter 2020 Results LOS ANGELES, Aug. 5, 2020

Highlights

* 6% of Fans Opting to Keep Tickets for Rescheduled Shows * 19 Million Tickets Sold to More Than 4,000 Concerts and Festivals Scheduled for 2021 * $800 Million Cost Reduction Program Target in 2020 * $1.4 Billion Cash Management Program Target in 2020

LOS ANGELES, Aug. 5, 2020 /PRNewswire/ -- Live Nation Entertainment, Inc. (NYSE: LYV) today released financial results for the quarter ended June 30, 2020.

Over the past three months, our top priority has been strengthening our financial position to ensure that we have the liquidity and flexibility to get through an extended period with no live events. Our expectation is that live events will return at scale in the summer of 2021, with ticket sales ramping up in the quarters leading up to these shows.

Confidence in the Future of Live

Importantly, we remain confident that fans will return to live events when it is safe to do so. Our strongest indicator of demand is that fans are holding on to their tickets, even when given the option of a refund. Through the end of the second quarter, 86% of concert fans are keeping their tickets for rescheduled shows, demonstrating their continued desire to attend concerts in the future despite the current uncertainty.

Our expectations for a robust outdoor summer season in 2021 are also reinforced by the two-thirds of fans keeping their tickets for canceled festivals so they can go to next year's show, along with strong early ticket sales for festivals in the UK next summer - for example, Download and Isle of Wight are pacing well ahead of last year.

Between the tickets held by fans for rescheduled shows and these festival onsales, we have already sold 19 million tickets to more than four thousand concerts and festivals scheduled for 2021, creating a strong baseload of demand that is pacing well ahead of this point last year. At the same time, surveys continue to show that concerts remain fans' highest priority social event when it is safe to gather, with almost 90% of fans globally planning on attending concerts again.

Keeping Artists and Fans Connected

Understanding that it will be some time before we put on concerts at scale, we are innovating to find new and creative ways to help keep artists and fans connected in the meantime. Virtual concerts have proven to be in huge demand with fans, so we established the "Live From Home" platform to provide a convenient place for fans of all types to find performances from their favorite artists.

In the second quarter, we had 67 million fans view over 18 thousand concerts and festivals globally. Among our highlights, this past weekend we streamed 150 performances for our Virtual Lollapalooza Festival. Given the tremendous popularity of these shows, we are seeing the potential for live streaming to become an additional long-term component of our concert business, allowing fans in other cities, or those who can't attend, to enjoy the concert as well.

At the same time, recognizing fans want to get back to attending concerts in person as soon as possible, we've launched socially distanced shows when and where permitted, including New Zealand, France, Denmark, Spain, Germany and Finland, as well as several cities across the United States.

Return to Live

While this is a challenging time for everyone - the live events business in particular - there are a few things that I am confident about: we are well positioned to weather this crisis, and we will get through this; when it is safe to return, we will have an abundance of fans and artists ready to enjoy live music again; and Live Nation will do everything in its power to meet our responsibilities to artists, fans, our employees and everyone else affected by this shutdown by bringing back as much live music as fast as possible when it is responsible to do so.

Michael RapinoPresident and Chief Executive OfficerLive Nation Entertainment, Inc.

Additional Information on Liquidity

At the end of the second quarter, the company had total cash and cash equivalents of $3.3 billion, which includes $1.8 billion of free cash. This free cash along with $966 million of available debt capacity provide the company with over $2.7 billion in available liquidity. The company's operational cash burn rate estimate is $125 million per month and estimated gross burn rate is $185 million per month, both on average for the second quarter through the end of the year. In addition, subsequent to quarter-end, the company's credit agreement was amended to further suspend its maintenance covenant until December 31, 2021 if it chooses, replacing it with a minimum liquidity test of $500 million, which is measured against the company's free cash, available debt capacity, and up to $250 million of event-related deferred revenue. The company believes this level of liquidity and our associated burn rates, along with our credit actions, provide it with the ability to fund operations until the expected return of concerts at scale 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 Statements

The 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 - 2nd QUARTER

(unaudited; $ in millions)



Q2 2020 Q2 2019 Q2 2020 Growth at Reported Reported GrowthConstant Constant Currency Currency

Revenue

Concerts $141.8 $2,639.5(95)%$147.0 (94) %

Ticketing (87.0) 370.8 * (87.4) *

Sponsorship & Advertising18.4 151.5 (88)%19.0 (87) %

Other and Eliminations 0.9 (4.8) * 0.9 *

$74.1 $3,157.0(98)%$79.5 (97) %



Operating Income (Loss)

Concerts $(279.9)$60.7 * $(283.0)*

Ticketing (267.2) 64.1 * (269.5) *

Sponsorship & Advertising(11.2) 91.4 * (10.9) *

Other and Eliminations (6.8) (0.2) * (6.8) *

Corporate (23.0) (44.4) 48 %(23.0) 48 %

$(588.1)$171.6 * $(593.2)*



Adjusted Operating Income (Loss)

Concerts $(210.7)$132.8 * $(213.2)*

Ticketing (203.9) 123.8 * (205.6) *

Sponsorship & Advertising(1.8) 98.5 * (1.4) *

Other and Eliminations (3.8) (1.3) * (3.8) *

Corporate (11.7) (34.5) 66 %(11.7) 66 %

$(431.9)$319.3 * $(435.7)*



* percentages are not meaningful

FINANCIAL HIGHLIGHTS - 6 MONTHS

(unaudited; $ in millions)



6 Months 6 Months 6 Months Growth at 2020 2019 Growth2020 Constant Reported Reported Constant Currency Currency

Revenue

Concerts $1,135.2$3,957.6(71)%$1,153.0(71) %

Ticketing 197.3 708.4 (72)%198.2 (72) %

Sponsorship & Advertising108.6 226.6 (52)%110.4 (51) %

Other and Eliminations (1.3) (7.8) 83 %(1.3) 83 %

$1,439.8$4,884.8(71)%$1,460.3(70) %



Operating Income (Loss)

Concerts $(441.0)$1.6 * $(445.7)*

Ticketing (283.1) 106.7 * (286.1) *

Sponsorship & Advertising27.0 123.5 (78)%28.2 (77) %

Other and Eliminations (8.2) (0.3) * (8.2) *

Corporate (55.4) (83.8) 34 %(55.4) 34 %

$(760.7)$147.7 * $(767.2)*



Adjusted Operating Income (Loss)

Concerts $(298.9)$138.2 * $(302.4)*

Ticketing (158.9) 224.2 * (161.0) *

Sponsorship & Advertising44.8 138.3 (68)%46.0 (67) %

Other and Eliminations (6.6) (2.7) * (6.6) *

Corporate (32.8) (63.4) 48 %(32.8) 48 %

$(452.4)$434.6 * $(456.8)*



* percentages are not meaningful

* As of June 30, 2020, total cash and cash equivalents were $3.3 billion, which includes $745 million in ticketing client cash and $1.8 billion in free cash. * Event-related deferred revenue was $0.9 billion as of June 30, 2020, compared to $1.6 billion as of June 30, 2019. In addition, we had long-term deferred revenue of $486 million for events that have been rescheduled more than one year out as of June 30, 2020. * For the six months ended June 30, 2020, net cash used in operating activities was $(390) million and free cash flow - adjusted was $(565) million. * We currently expect capital expenditures for the full year to be approximately $215 million.

KEY OPERATING METRICS



Q2 2020 Q2 2019 6 Months6 Months 2020 2019

(in thousands except estimated events)

Concerts ^(1)

Events:

North America 24 7,213 4,787 12,888

International 107 3,039 2,419 5,571

Total estimated events 131 10,252 7,206 18,459

Fans:

North America 8 15,844 5,727 24,810

International 41 11,178 4,714 17,136

Total estimated fans 49 27,022 10,441 41,946

Ticketing ^(2)

Fee-bearing tickets (8,765)53,185 27,444 103,211

Non-fee-bearing tickets 6,386 53,749 61,645 120,864

Total estimated tickets (2,379)106,93489,089 224,075



Events generally represent a single performance by an artist. Fans generally represent the number of people who attend an event. Festivals (1)are counted as one event in the quarter in which 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.

Events 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(2)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 include refunds of 10.7 million and 17.2 million for the three and six months ended June 30, 2020, respectively.

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



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



($ in millions) Q2 2020 Q2 2019

Net cash used in operating activities $ (1,022.1)$(175.8)

Less: Changes in operating assets and liabilities (working capital) 598.4 444.0

Free cash flow from earnings $ (423.7) $268.2

Less: Maintenance capital expenditures (15.3) (34.9)

Distributions to noncontrolling interests (11.2) (13.5)

Free cash flow - adjusted $ (450.2) $219.8



Net cash used in investing activities $ (68.2) $(196.8)



Net cash provided by (used in) financing activities $ 1,079.7 $(26.4)





($ in millions) 6 Months 20206 Months 2019

Net cash provided by (used in) operating activities $ (390.4) $293.3

Less: Changes in operating assets and liabilities (working capital) (103.0) 52.2

Free cash flow from earnings $ (493.4) $345.5

Less: Maintenance capital expenditures (45.7) (59.4)

Distributions to noncontrolling interests (26.3) (63.4)

Free cash flow - adjusted $ (565.4) $222.7



Net cash used in investing activities $ (190.6) $(281.7)



Net cash provided by (used in) financing activities $ 1,462.1 $(97.9)

Reconciliation of Free Cash to Cash and Cash Equivalents



($ in millions) June 30, 2020

Cash and cash equivalents $3,290.1

Client cash (744.7)

Deferred revenue - event-related (941.3)

Accrued artist fees (21.6)

Collections on behalf of others (35.2)

Prepaid expenses - event-related 224.4

Free cash $1,771.7

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 expectation that live events will return at scale in the summer of 2021, with ticket sales ramping up in the quarters leading up to these shows; fan and artist willingness to return to live events when it is safe to do so; the potential for live streaming to become an additional long-term component of the company's concert business; the company's positioning to weather the current crisis; the company's ability to bring back as much live music as fast as possible when it is responsible to do so; the company's estimated average operational cash burn rate and gross burn rate for the second quarter through the end of 2020; the impact of the company's liquidity and associated burn rate estimates and recent credit actions on the company's ability to fund basic operations until the anticipated return of concerts at scale in the summer of 2021, preceded by ticket sales earlier in the year; and the company's anticipated capital expenditures 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 of Adjusted Adjusted Operating Stock-based (gain) on non- operating Foreign operating ($ in millions) income compensationdisposal Depreciationrecoupable Acquisitionincome exchangeincome (loss) expense of and ticketing expenses (loss) impact (loss) operating contract reported constant assets amortizationadvances currency



Three Months Ended June 30, 2020



Concerts $(279.9)$24.4 $0.6 $ 64.3 $- $ (20.1) $(210.7)$(2.5)$(213.2)

Ticketing (267.2) 4.1 - 44.3 14.7 0.2 (203.9) (1.7) (205.6)

Sponsorship & (11.2) 1.7 - 7.7 - - (1.8) 0.4 (1.4) Advertising

Other & (6.8) - - 4.4 (1.4) - (3.8) - (3.8) Eliminations

Corporate (23.0) 8.3 - 2.1 - 0.9 (11.7) - (11.7)

Total Live Nation$(588.1)$38.5 $0.6 $ 122.8 $13.3 $ (19.0) $(431.9)$(3.8)$(435.7)



Three Months Ended June 30, 2019



Concerts $60.7 $3.1 $(0.2) $ 54.2 $- $ 15.0 $132.8 $- $132.8

Ticketing 64.1 1.6 0.1 39.5 18.2 0.3 123.8 - 123.8

Sponsorship & 91.4 0.7 - 6.4 - - 98.5 - 98.5 Advertising

Other & (0.2) - - 0.1 (1.2) - (1.3) - (1.3) Eliminations

Corporate (44.4) 6.3 - 3.6 - - (34.5) - (34.5)

Total Live Nation$171.6 $11.7 $(0.1) $ 103.8 $17.0 $ 15.3 $319.3 $- $319.3





Six Months Ended June 30, 2020



Concerts $(441.0)$26.7 $0.7 $ 136.6 $- $ (21.9) $(298.9)$(3.5)$(302.4)

Ticketing (283.1) 5.8 - 82.5 34.9 1.0 (158.9) (2.1) (161.0)

Sponsorship & 27.0 2.7 - 15.1 - - 44.8 1.2 46.0 Advertising

Other & (8.2) - - 4.4 (2.8) - (6.6) - (6.6) Eliminations

Corporate (55.4) 15.1 - 6.2 - 1.3 (32.8) - (32.8)

Total Live Nation$(760.7)$50.3 $0.7 $ 244.8 $32.1 $ (19.6) $(452.4)$(4.4)$(456.8)



Six Months Ended June 30, 2019



Concerts $1.6 $6.6 $(0.3) $ 105.6 $- $ 24.7 $138.2 $- $138.2

Ticketing 106.7 3.1 0.1 76.9 36.9 0.5 224.2 - 224.2

Sponsorship & 123.5 1.4 - 13.4 - - 138.3 - 138.3 Advertising

Other & (0.3) - - 0.3 (2.7) - (2.7) - (2.7) Eliminations

Corporate (83.8) 13.9 - 6.5 - - (63.4) - (63.4)

Total Live Nation$147.7 $25.0 $(0.2) $ 202.7 $34.2 $ 25.2 $434.6 $- $434.6

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)



June 30, December 31, 2020 2019

(in thousands)

ASSETS

Current assets

Cash and cash equivalents $3,290,052 $2,470,362

Accounts receivable, less allowance of 618,580 994,606 $69,778 and $50,516, respectively

Prepaid expenses 446,062 667,044

Restricted cash 10,313 3,880

Other current assets 68,187 57,007

Total current assets 4,433,194 4,192,899

Property, plant and equipment, net 1,121,665 1,117,932

Operating lease assets 1,420,649 1,402,019

Intangible assets

Definite-lived intangible assets, net 936,837 870,141

Indefinite-lived intangible assets 368,762 368,954

Goodwill 2,012,641 1,998,498

Long-term advances 877,580 593,699

Other long-term assets 450,972 431,473

Total assets $11,622,300$10,975,615

LIABILITIES AND EQUITY

Current liabilities

Accounts payable, client accounts $835,981 $1,005,888

Accounts payable 124,806 100,237

Accrued expenses 1,088,153 1,391,486

Deferred revenue 1,157,311 1,391,032

Current portion of long-term debt, net 63,885 37,795

Current portion of operating lease 119,473 121,950 liabilities

Other current liabilities 102,687 59,211

Total current liabilities 3,492,296 4,107,599

Long-term debt, net 4,831,088 3,271,262

Long-term operating lease liabilities 1,412,190 1,374,481

Long-term deferred income taxes 177,749 178,173

Other long-term liabilities 691,219 130,648

Commitments and contingent liabilities

Redeemable noncontrolling interests 334,228 449,498

Stockholders' equity

Common stock 2,125 2,113

Additional paid-in capital 2,295,069 2,245,619

Accumulated deficit (1,704,599) (949,334)

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

Accumulated other comprehensive loss (243,805) (145,713)

Total Live Nation stockholders' equity 341,925 1,145,820

Noncontrolling interests 341,605 318,134

Total equity 683,530 1,463,954

Total liabilities and equity $11,622,300$10,975,615

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)



Three Months Ended Six Months Ended June 30, June 30,

2020 2019 2020 2019

(in thousands, except share and per share data)

Revenue $74,084 $3,157,009$1,439,777$4,884,837

Operating expenses:

Direct operating expenses 194,557 2,327,414 1,068,377 3,479,018

Selling, general and administrative expenses 323,352 513,497 837,373 978,363

Depreciation and amortization 122,767 103,826 244,847 202,738

Loss (gain) on disposal of operating assets 559 (101) 689 (248)

Corporate expenses 20,916 40,787 49,228 77,243

Operating income (loss) (588,067) 171,586 (760,737) 147,723

Interest expense 52,689 36,792 96,688 73,307

Interest income (2,429) (3,818) (6,902) (6,366)

Equity in losses (earnings) of nonconsolidated affiliates 6,613 (5,828) 4,041 (8,972)

Other income, net (5,173) (430) (545) (3,833)

Income (loss) before income taxes (639,767) 144,870 (854,019) 93,587

Income tax expense (benefit) (29,183) 28,750 (32,513) 32,708

Net income (loss) (610,584) 116,120 (821,506) 60,879

Net income (loss) attributable to noncontrolling interests (43,067) 12,765 (69,205) 9,968

Net income (loss) attributable to common stockholders of $(567,517)$103,355 $(752,301)$50,911 Live Nation



Basic net income (loss) per common share available to $(2.67) $0.43 $(3.62) $0.12 common stockholders of Live Nation

Diluted net income (loss) per common share available to $(2.67) $0.41 $(3.62) $0.11 common stockholders of Live Nation



Weighted average common shares outstanding:

Basic 211,693,923209,998,048211,371,109209,456,196

Diluted 211,693,923219,977,612211,371,109219,107,351





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

Net income (loss) attributable to common stockholders of $(567,517)$103,355 $(752,301)$50,911 Live Nation

Accretion of redeemable noncontrolling interests 1,595 (13,515) (12,945) (25,827)

Net income (loss) available to common stockholders of Live (565,922) 89,840 (765,246) 25,084 Nation-basic

Convertible debt interest, net of tax - 86 - -

Net income (loss) available to common stockholders of Live $(565,922)$89,926 $(765,246)$25,084 Nation-diluted

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)



Six Months Ended June 30,

2020 2019

(in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $(821,506)$60,879

Reconciling items:

Depreciation 122,825 106,015

Amortization 122,022 96,723

Amortization of non-recoupable ticketing contract 32,126 34,267 advances

Deferred income tax benefit (12,316) (456)

Amortization of debt issuance costs and discounts 14,856 10,828

Non-cash compensation expense 50,270 24,926

Unrealized changes in fair value of contingent (24,789) 5,821 consideration

Provision for uncollectible accounts receivable 25,764 5,615

Other, net (2,609) 922

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

Decrease (increase) in accounts receivable 363,079 (256,575)

Increase in prepaid expenses and other assets (50,493) (380,285)

Increase (decrease) in accounts payable, accrued (807,552) 5,880 expenses and other liabilities

Increase in deferred revenue 597,963 578,763

Net cash provided by (used in) operating (390,360) 293,323 activities

CASH FLOWS FROM INVESTING ACTIVITIES

Advances of notes receivable (11,457) (13,931)

Collections of notes receivable 12,782 5,337

Investments made in nonconsolidated affiliates (8,150) (28,931)

Purchases of property, plant and equipment (142,509) (135,940)

Cash paid for acquisitions, net of cash acquired (37,471) (87,595)

Purchases of intangible assets (5,594) (20,614)

Other, net 1,758 20

Net cash used in investing activities (190,641) (281,654)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long-term debt, net of debt issuance1,602,097 558 costs

Payments on long-term debt (11,087) (21,933)

Distributions to noncontrolling interests (26,315) (63,373)

Purchases and sales of noncontrolling interests, (88,191) (1,463) net

Proceeds from exercise of stock options 11,406 10,199

Taxes paid for net share settlement of equity (17,339) (10,259) awards

Payments for deferred and contingent consideration(9,940) (19,962)

Other, net 1,467 8,323

Net cash provided by (used in) financing 1,462,098 (97,910) activities

Effect of exchange rate changes on cash, cash (54,974) (6,983) equivalents and restricted cash

Net increase (decrease) in cash, cash equivalents,826,123 (93,224) and restricted cash

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

Cash, cash equivalents and restricted cash at end $3,300,365$2,284,979of period

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SOURCE Live Nation Entertainment