Live Nation Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

lyv-20200630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

Form 10-Q

____________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-32601

____________________________________

LIVE NATION ENTERTAINMENT, INC.

(Exact name of registrant as specified in its charter)

____________________________________


Delaware						20-3247759
(State of Incorporation)						(I.R.S. Employer Identification No.)

9348 Civic Center Drive

Beverly Hills, CA 90210

(Address of principal executive offices, including zip code)

(310) 867-7000

(Registrant’s telephone number, including area code)

______________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $.01 Par Value Per Share

LYV

New York Stock Exchange

(Includes Preferred Stock Purchase Rights)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

☐

Emerging Growth Company

☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes x No

On July 29, 2020, there were 217,254,777 outstanding shares of the registrant’s common stock, $0.01 par value per share, including 5,125,963 shares of unvested restricted and deferred stock awards and excluding 408,024 shares held in treasury.

LIVE NATION ENTERTAINMENT, INC.

INDEX TO FORM 10-Q


		Page
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements	2
	Consolidated Balance Sheets (Unaudited) as of June 30, 2020 and December 31, 2019	2
	Consolidated Statements of Operations (Unaudited) for the three and six months ended June 30 , 2020 and 2019	3
	Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the three and six months ended June 30, 2020 and 2019	4
	Consolidated Statements of Changes in Equity (Unaudited) for the three and six months ended June 30, 2020 and 2019	5
	Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2020 and 2019	9
	Notes to Consolidated Financial Statements (Unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	50
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3.	Defaults Upon Senior Securities	53
Item 5.	Other Information	53
Item 6.	Exhibits	54


GLOSSARY OF KEY TERMS
AOCI			Accumulated other comprehensive income (loss)
AOI			Adjusted operating income (loss)




FASB			Financial Accounting Standards Board
GAAP			United States Generally Accepted Accounting Principles

Live Nation			Live Nation Entertainment, Inc. and subsidiaries
LNE			Live Nation Entertainment, Inc.


SEC			United States Securities and Exchange Commission
Ticketmaster			Our ticketing business

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	June 30, 2020		December 31, 2019
	(in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	3,290,052	$	2,470,362
Accounts receivable, less allowance of $69,778 and $50,516, respectively	618,580		994,606
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 liabilities	119,473		121,950
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

See Notes to Consolidated Financial Statements

Table of Contents

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three Months Ended June 30,						Six Months Ended 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 Live Nation	$	(567,517)	$	103,355	$	(752,301)	$	50,911

Basic net income (loss) per common share available to common stockholders of Live Nation	$	(2.67)	$	0.43	$	(3.62)	$	0.12
Diluted net income (loss) per common share available to common stockholders of Live Nation	$	(2.67)	$	0.41	$	(3.62)	$	0.11

Weighted average common shares outstanding:
Basic	211,693,923		209,998,048		211,371,109		209,456,196
Diluted	211,693,923		219,977,612		211,371,109		219,107,351


Reconciliation to net income (loss) available to common stockholders of Live Nation:
Net income (loss) attributable to common stockholders of Live Nation	$	(567,517)	$	103,355	$	(752,301)	$	50,911
Accretion of redeemable noncontrolling interests	1,595		(13,515)		(12,945)		(25,827)
Net income (loss) available to common stockholders of Live Nation—basic	(565,922)		89,840		(765,246)		25,084
Convertible debt interest, net of tax	—		86		—		—
Net income (loss) available to common stockholders of Live Nation—diluted	$	(565,922)	$	89,926	$	(765,246)	$	25,084

See Notes to Consolidated Financial Statements

Table of Contents

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(in thousands)
Net income (loss)	$	(610,584)	$	116,120	$	(821,506)	$	60,879
Other comprehensive income (loss), net of tax:
Unrealized loss on cash flow hedge	(5,765)		—		(36,596)		—
Realized loss on cash flow hedge	1,353		—		1,353		—
Foreign currency translation adjustments	19,933		(671)		(62,849)		(3,560)
Comprehensive income (loss)	(595,063)		115,449		(919,598)		57,319
Comprehensive income (loss) attributable to noncontrolling interests	(43,067)		12,765		(69,205)		9,968
Comprehensive income (loss) attributable to common stockholders of Live Nation	$	(551,996)	$	102,684	$	(850,393)	$	47,351

See Notes to Consolidated Financial Statements

Table of Contents

LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(UNAUDITED)


	Live Nation Stockholders’ Equity
	Common Shares Issued	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Cost of Shares Held in Treasury		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Equity		Redeemable Noncontrolling Interests
	(in thousands, except share data)																	(in thousands)
Balances at March 31, 2020	211,834,739	$	2,118	$	2,260,509	$	(1,137,082)	$	(6,865)	$	(259,326)	$	371,478	$	1,230,832	$	443,606

Non-cash and stock-based compensation	—	—		38,538		—		—		—		—		38,538		—
Common stock issued under stock plans, net of shares withheld for employee taxes	79,079	1		(217)		—		—		—		—		(216)		—
Exercise of stock options, net of shares withheld for option cost and employee taxes	609,329	6		(4,734)		—		—		—		—		(4,728)		—
Fair value of convertible debt conversion feature, net of issuance cost	—	—		17		—		—		—		—		17		—
Acquisitions	—	—		—		—		—		—		4,157		4,157		751
Divestitures	—	—		—		—		—		—		593		593		—
Purchases of noncontrolling interests	—	—		(454)		—		—		—		—		(454)		(89,779)

Redeemable noncontrolling interests fair value adjustments	—	—		1,595		—		—		—		—		1,595		(1,595)
Contributions received	—	—		—		—		—		—		1,391		1,391		—
Cash distributions	—	—		—		—		—		—		(7,915)		(7,915)		(3,287)
Other	—	—		(185)		—		—		—		(501)		(686)		1
Comprehensive loss:
Net loss	—	—		—		(567,517)		—		—		(27,598)		(595,115)		(15,469)
Unrealized loss on cash flow hedge	—	—		—		—		—		(5,765)		—		(5,765)		—
Realized loss on cash flow hedge	—	—		—		—		—		1,353		—		1,353		—
Foreign currency translation adjustments	—	—		—		—		—		19,933		—		19,933		—
Balances at June 30, 2020	212,523,147	$	2,125	$	2,295,069	$	(1,704,599)	$	(6,865)	$	(243,805)	$	341,605	$	683,530	$	334,228

See Notes to Consolidated Financial Statements

Table of Contents


	Live Nation Stockholders’ Equity
	Common Shares Issued	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Cost of Shares Held in Treasury		Accumulated Other Comprehensive Loss		Noncontrolling Interests		Total Equity		Redeemable Noncontrolling Interests
	(in thousands, except share data)																	(in thousands)
Balances at December 31, 2019	211,262,062	$	2,113	$	2,245,619	$	(949,334)	$	(6,865)	$	(145,713)	$	318,134	$	1,463,954	$	449,498
Cumulative effect of change in accounting principle	—	—		—		(2,964)		—		—		—		(2,964)		—
Non-cash and stock-based compensation	—	—		50,279		—		—		—		—		50,279		—
Common stock issued under stock plans, net of shares withheld for employee taxes	341,249	3		(7,665)		—		—		—		—		(7,662)		—
Exercise of stock options, net of shares withheld for option cost and employee taxes	919,836	9		1,719		—		—		—		—		1,728		—
Fair value of convertible debt conversion feature, net of issuance cost	—	—		33,347		—		—		—		—		33,347		—
Acquisitions	—	—		—		—		—		—		35,322		35,322		11,899
Divestitures	—	—		—		—		—		—		593		593		—
Purchases of noncontrolling interests	—	—		(6,939)		—		—		—		(1,032)		(7,971)		(96,190)
Sales of noncontrolling interests	—	—		(8,161)		—		—		—		39,161		31,000		—
Redeemable noncontrolling interests fair value adjustments	—	—		(12,945)		—		—		—		—		(12,945)		12,945
Contributions received	—	—		—		—		—		—		1,467		1,467		—
Cash distributions	—	—		—		—		—		—		(12,683)		(12,683)		(13,632)
Other	—	—		(185)		—		—		—		(445)		(630)		1
Comprehensive loss:
Net loss	—	—		—		(752,301)

Price	66.70	EPS	1
Shares	219	P/E	119
MCap	14,604	P/FCF	444
Net Debt	886	EBIT	292
TEV	15,491	TEV/EBIT	53
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-08-05
10-Q	2020-03-31	Filed 2020-05-07
10-K	2019-12-31	Filed 2020-02-27
10-Q	2019-09-30	Filed 2019-10-31
10-Q	2019-06-30	Filed 2019-07-25
10-Q	2019-03-31	Filed 2019-05-02
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-11-01
10-Q	2018-06-30	Filed 2018-07-26
10-Q	2018-03-31	Filed 2018-05-03
10-K	2017-12-31	Filed 2018-02-27
10-Q	2017-09-30	Filed 2017-11-02
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-04
10-K	2016-12-31	Filed 2017-02-23
10-Q	2016-09-30	Filed 2016-11-07
10-Q	2016-06-30	Filed 2016-07-28
10-Q	2016-03-31	Filed 2016-05-03
10-K	2015-12-31	Filed 2016-02-25
10-Q	2015-09-30	Filed 2015-10-29
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-04-30
10-K	2014-12-31	Filed 2015-02-26
10-Q	2014-09-30	Filed 2014-10-30
10-Q	2014-06-30	Filed 2014-07-31
10-Q	2014-03-31	Filed 2014-05-06
10-K	2013-12-31	Filed 2014-02-24
10-Q	2013-09-30	Filed 2013-11-05
10-Q	2013-06-30	Filed 2013-08-06
10-Q	2013-03-31	Filed 2013-05-07
10-K	2012-12-31	Filed 2013-02-26
10-Q	2012-09-30	Filed 2012-11-05
10-Q	2012-06-30	Filed 2012-08-07
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-02-24
10-Q	2011-09-30	Filed 2011-11-03
10-Q	2011-06-30	Filed 2011-08-08
10-Q	2011-03-31	Filed 2011-05-05
10-K	2010-12-31	Filed 2011-02-28
10-Q	2010-06-30	Filed 2010-08-05
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-02-25

8-K	2020-08-05	Earnings, Exhibits
8-K	2020-07-29	Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K	2020-06-03
8-K	2020-05-25
8-K	2020-05-20
8-K	2020-05-07
8-K	2020-04-09
8-K	2020-02-27
8-K	2020-02-03
8-K	2019-10-31
8-K	2019-10-17
8-K	2019-07-25
8-K	2019-07-24
8-K	2019-06-06
8-K	2019-05-02
8-K	2019-02-28
8-K	2018-12-18
8-K	2018-11-01
8-K	2018-07-26
8-K	2018-06-06
8-K	2018-05-04
8-K	2018-05-03
8-K	2018-03-15
8-K	2018-02-27
8-K	2018-01-12

EX-10.1	lyv-20200630xex101.htm
EX-10.2	lyv-20200630xex102.htm
EX-10.3	lyv-20200630xex103.htm
EX-10.4	lyv-20200630xex104.htm
EX-10.5	lyv-20200630xex105.htm
EX-31.1	lyv-20200630xex311.htm
EX-31.2	lyv-20200630xex312.htm
EX-32.1	lyv-20200630xex321.htm
EX-32.2	lyv-20200630xex322.htm

LYV 10Q Quarterly Report

Live Nation Earnings 2020-06-30