Live Nation Entertainment Reports Fourth Quarter And Full Year 2012 Financial Results

Live Nation Entertainment Reports Fourth Quarter And Full Year 2012 Financial Results

- Full Year Revenue Improves on Higher Ticket Sales -

LOS ANGELES, Feb. 26, 2013 /PRNewswire-FirstCall/ -- Live Nation Entertainment (NYSE: LYV) released financial results for the three and twelve months ended December 31, 2012 today.

"During 2012, the company increased revenue by 8% and grew all our business segments while continuing to invest in our long-term ticketing platform," said Michael Rapino, President and Chief Executive Officer of Live Nation Entertainment. "Our ongoing growth in operating profitability was driven by the continued success of our core business of bringing more fans to more events, with ticket sales growth of 4% at our concerts and 5% for Ticketmaster."

"Looking forward to 2013, I am confident that we will continue the successful growth of the core business. As of the end of 2012, we have sold 9 million concert tickets for 2013 shows, a 58% increase from a year ago. Our ticketing replatforming project is in its last full year of investment and will deliver major product innovations for clients and fans throughout the year, highlighted by our integrated inventory product for fans to be rolled out mid-year. I expect another strong year for our Sponsorship & Advertising business as we accelerate our online advertising and continue leveraging our festival base. "

The company will webcast a teleconference today at 5:00 p.m. Eastern Time to discuss its financial performance. Interested parties should visit the Investor Relations section of the company's website at www.livenation.com/investors to register for the webcast. Supplemental statistical and financial information provided on the call, if any, will be available under the same link. A replay of the webcast will also be available on the Live Nation website.



FINANCIAL HIGHLIGHTS - 4th QUARTER and TWELVE MONTHS
($ in millions)
--------------

Q4 2012 Q4 2011 Growth 12 months 12 months Growth
2012 2011
---- ----
Revenue
Concerts $915.8 $694.4 31.9% $3,870.4 $3,506.2 10.4%
Ticketing 372.5 352.6 5.6% 1,374.0 1,319.3 4.1%
Artist Nation 101.3 99.2 2.1% 399.9 393.1 1.7%
Sponsorship & Advertising 54.7 48.3 13.3% 247.9 230.8 7.4%
Other & Eliminations (7.1) (8.8) 19.3% (73.2) (65.4) (11.9%)
---- ---- ---- ----- ----- ------
$1,437.2 $1,185.7 21.2% $5,819.0 $5,384.0 8.1%
======== ======== ==== ======== ======== ===

Adjusted Operating Income (Loss)
Concerts $(29.0) $(31.9) 9.1% $31.4 $30.3 3.6%
Ticketing 68.6 65.4 4.9% 294.6 279.0 5.6%
Artist Nation (1) 5.1 12.2 (58.2%) 38.1 47.2 (19.3%)
Sponsorship & Advertising 37.8 36.5 3.6% 175.6 165.1 6.4%
Other & Eliminations (0.5) 2.6 ** (1.6) 2.2 **
Corporate (19.5) (34.1) 42.8% (79.0) (85.9) 8.0%
----- ----- ---- ----- ----- ---
$62.5 $50.7 23.3% $459.1 $437.9 4.8%
===== ===== ==== ====== ====== ===

Operating Income (Loss)
Concerts $(77.1) $(80.7) 4.5% $(120.1) $(105.0) (14.4%)
Ticketing 22.4 16.0 40.0% 122.8 113.3 8.4%
Artist Nation (1) (75.9) 4.5 ** (80.6) (24.9) **
Sponsorship & Advertising 36.8 35.9 2.5% 173.8 163.8 6.1%
Other & Eliminations (0.1) 2.8 ** (0.1) 2.5 **
Corporate (32.4) (45.2) 28.3% (117.4) (131.4) 10.7%
----- ----- ---- ------ ------ ----
$(126.3) $(66.7) (89.4%) $(21.6) $18.3 **
======= ====== ====== ====== ===== ===



** percentages are not meaningful

(1) Artist Nation Adjusted Operating
Income for the three and twelve
months ended December 31, 2012
is impacted by incremental costs
of $5.5 million related to
Irving Azoff's departure in
December 2012. Artist Nation
Operating Loss for the three and
twelve months ended December 31,
2012 is further impacted by an
impairment charge of $62.7
million related to certain
client/vendor relationship
intangibles in the management
business based on current
expectations related to future
cash flows of this business.


For the three months ended December 31, 2012, revenue was $1,437 million, up 21% compared to prior year revenue of $1,186 million. Revenue for the full year 2012 was $5,819 million, up 8% compared to prior year revenue of $5,384 million. On a constant currency basis, revenue for the full year 2012 was up 10%, excluding the $100 million impact of changes in foreign exchange rates.

As of December 31, 2012, total cash and cash equivalents were $1,001 million, which includes $442 million in ticketing client cash and $340 million in free cash. Event-related deferred revenue was $364 million as of December 31, 2012, compared to $229 million as of the same date in 2011. Free cash flow was $1 million for the fourth quarter of 2012 as compared to ($20) million in the fourth quarter of last year, and $276 million for the full year 2012 versus $203 million for 2011.

About Live Nation Entertainment:
Live Nation Entertainment is the world's leading live entertainment and ecommerce company, comprised of four market leaders: Ticketmaster.com, Live Nation Concerts, Artist Nation and Live Nation Network. Ticketmaster.com is the global event ticketing leader and one of the world's top five ecommerce sites, with a database of over 119 million fans who visit our sites. Live Nation Concerts produces 22,000 shows annually for more than 2,300 artists globally. Artist Nation is the world's top artist management company, representing over 200 artists. These businesses power Live Nation Network, the leading provider of entertainment marketing solutions, enabling nearly 800 advertisers to tap into the 250 million consumers Live Nation delivers annually through its live event and digital platforms. For additional information, visit www.livenation.com/investors.

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LIVE NATION ENTERTAINMENT, INC.

KEY OPERATING METRICS

3 Months Ended Dec 31, 12 Months Ended Dec 31,
---------------------- -----------------------
2012 2011 2012 2011
---- ---- ---- ----

Concerts (1)
Estimated Events:
North America 3,816 4,199 14,962 15,531
International 2,464 2,472 7,000 6,720
Total estimated events 6,280 6,671 21,962 22,251
----- ----- ------ ------
Estimated Attendance (rounded):
North America 6,801,000 5,963,000 32,007,000 31,060,000
International 5,073,000 5,293,000 16,750,000 15,742,000
Total estimated attendance 11,874,000 11,256,000 48,757,000 46,802,000
---------- ---------- ---------- ----------

Ancillary net revenue per
attendee (2):
North America amphitheaters $18.56 $18.11
International festivals (3) $15.55 $16.62
Ticketing (4)(5)
Number of tickets sold (in
thousands):
Concerts 20,540 18,543 75,372 71,632
Sports 5,511 6,290 28,760 27,055
Arts and theater 6,278 6,953 19,961 21,891
Family 4,693 4,477 15,970 14,248
Other (6) 2,449 2,154 7,669 6,541
39,471 38,417 147,732 141,367
------ ------ ------- -------

Gross value of tickets sold (in
thousands) $2,642,802 $2,286,641 $9,146,254 $8,441,230

Sponsorship & Advertising
Sponsorship revenue (in
thousands) $36,634 $32,632 $191,773 $179,734
Online advertising revenue (in
thousands) $18,076 $15,706 $56,148 $51,057




(1) Events generally represent a
single performance by an
artist. Attendance generally
represents the number of fans
who were present at an event.
Festivals are counted as one
event in the quarter in which
the festival begins but
attendance is split over the
days of the festival and can be
split between quarters. Events
and attendance metrics are
estimated each quarter.

(2) Amounts are reported as of the
latest period shown.

(3) On a constant currency basis,
international festivals'
ancillary net revenue per
attendee is $17.04 for the 12
months ended December 31, 2012,
an increase of 3% over 2011.

(4) The number and gross value of
tickets sold includes primary
tickets only and excludes
tickets sold for the 2012
Olympics. These metrics
include tickets sold during the
period regardless of event
timing except for our promoted
concerts in our owned and/or
operated buildings and in
certain European territories
where these tickets are
recognized as the concerts
occur.

(5) The total number of tickets sold
for the years ended December
31, 2012 and 2011 do not
include 108 million and 135
million, respectively, of
tickets sold through our venue
clients' box offices for which
we do not receive a fee.

(6) Other category includes tickets
for comedy shows, facility
tours, donations, lectures,
seminars and cinemas.






LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31,
-----------------------
2012 2011 2010
---- ---- ----
(in thousands except share and per share data)

Revenue $5,819,047 $5,383,998 $5,063,748
Operating expenses:
Direct operating expenses 4,151,277 3,789,488 3,658,310
Selling, general and
administrative expenses 1,143,632 1,111,969 1,014,491
Depreciation and amortization 429,557 343,018 321,666
Loss (gain) on sale of operating
assets (514) 978 374
Corporate expenses 113,364 112,157 110,252
Acquisition transaction expenses 3,370 8,051 22,355
Operating income (loss) (21,639) 18,337 (63,700)

Interest expense 123,740 120,414 116,527
Loss (gain) on extinguishment of
debt (460) - 21,315
Interest income (4,170) (4,215) (3,771)
Equity in earnings of
nonconsolidated affiliates (9,921) (7,742) (4,928)
Other expense (income), net 1,333 6,507 (4,189)
Loss from continuing operations
before income taxes (132,161) (96,627) (188,654)
Income tax expense (benefit) 29,736 (26,224) 15,154
Loss from continuing operations (161,897) (70,403) (203,808)
Loss from discontinued operations,
net of tax - - (4,228)
--- --- ------
Net loss (161,897) (70,403) (208,036)
Net income attributable to
noncontrolling interests 1,330 12,613 20,354
----- ------ ------
Net loss attributable to common
stockholders of Live Nation
Entertainment, Inc. $(163,227) $(83,016)
$(228,390)
=========

Basic and diluted net loss per
common share attributable to
common stockholders of Live
Nation Entertainment, Inc.
Loss from continuing operations $(0.87) $(0.46) $(1.36)
Loss from discontinued operations - - (0.03)
--- --- -----
Net loss attributable to common
stockholders of Live Nation
Entertainment, Inc. $(0.87)
$(0.46) $(1.39)
====== ======


Weighted average common shares
outstanding:
Basic and diluted 186,955,748 182,388,070 164,410,167









LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

December 31,
------------
2012 2011
---- ----
(in thousands except share data)
ASSETS
Current assets
Cash and cash equivalents $1,001,055 $844,253
Accounts receivable, less allowance of $19,794
in 2012 and $16,986 in 2011 415,790 389,346
Prepaid expenses 359,936 316,491
Other current assets 36,031 26,700
------ ------
Total current assets 1,812,812 1,576,790
Property, plant and equipment
Land, buildings and improvements 852,175 851,812
Computer equipment and capitalized software 338,919 261,475
Furniture and other equipment 200,743 172,250
Construction in progress 56,822 60,652
------ ------

1,448,659 1,346,189
Less accumulated depreciation 726,873 626,053
------- -------

721,786 720,136
Intangible assets
Definite-lived intangible assets, net 724,463 873,712
Indefinite-lived intangible assets 377,463 377,160
Goodwill 1,357,827 1,257,644
Investments in nonconsolidated affiliates 46,160 55,796
Other long-term assets 250,295 216,106
------- -------

Total assets $5,290,806 $5,077,344
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable, client accounts $557, 953 $473,956
Accounts payable 102,718 87,627
Accrued expenses 626,723 579,566
Deferred revenue 402,002 273,536
Current portion of long-term debt 62,050 52,632
Other current liabilities 16,726 25,236
------ ------

Total current liabilities 1,768,172 1,492,553

Long-term debt, net 1,677,955 1,652,629
Long-term deferred income taxes 199,596 186,298
Other long-term liabilities 94,409 120,693
Commitments and contingent liabilities

Redeemable noncontrolling interests 42,100 8,277

Stockholders' equity
Preferred stock-Series A Junior Participating,
$.01 par value; 20,000,000 shares authorized;
no shares issued and outstanding - -
Preferred stock, $.01 par value; 30,000,000
shares authorized; no shares issued and
outstanding - -
Common stock, $.01 par value; 450,000,000 shares
authorized; 190,853,380 and 189,536,279 shares
issued and outstanding in 2012 and 2011,
respectively 1,877 1,868
Additional paid-in capital 2,272,882 2,243,587
Accumulated deficit (908,418) (745,191)
Cost of shares held in treasury (578,570 shares
in 2011) - (2,787)
Accumulated other comprehensive loss (10,923) (36,374)
------- -------

Total Live Nation Entertainment, Inc.
stockholders' equity 1,355,418 1,461,103
Noncontrolling interests 153,156 155,791
------- -------
Total stockholders' equity 1,508,574 1,616,894
--------- ---------
Total liabilities and stockholders' equity $5,290,806 $5,077,344
========== ==========






LIVE NATION ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Year Ended December 31,
-----------------------
2012 2011 2010
---- ---- ----
(in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(161,897) $(70,403) $(208,036)
Reconciling items:
Depreciation 124,593 129,177 135,573
Amortization 304,964 213,841 186,093
Impairment of operational assets - - 13,373
Deferred income tax benefit (10,957) (45,603) (25,021)
Amortization of debt issuance costs and discount/premium, net 16,696 13,059 11,437
Provision for uncollectible accounts receivable and advances 8,787 9,272 6,606
Non-cash (gain) loss on extinguishment of debt (460) - 8,272
Non-cash compensation expense 37,063 50,045 52,395
Unrealized changes in fair value of contingent consideration (894) (11,691) 3,171
Loss (gain) on sale of operating assets (514) 978 4,602
Equity in earnings of nonconsolidated affiliates (9,921) (7,742) (4,928)
Other, net 1,642 2,481 -
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Increase in accounts receivable (20,319) (79,807) (4,581)
Decrease (increase) in prepaid expenses (69,175) 73,314 (22,570)
Increase in other assets (41,707) (83,928) (41,686)
Increase in accounts payable, accrued expenses and other liabilities 64,437 6,817 386
Increase (decrease) in deferred revenue 124,760 (64,105) 43,432
------- ------- ------

Net cash provided by operating activities 367,098 135,705 158,518

CASH FLOWS FROM INVESTING ACTIVITIES
Distributions from nonconsolidated affiliates 9,241 9,273 5,863
Investments made in nonconsolidated affiliates (3,788) (15,770) (3,458)
Purchases of property, plant and equipment (123,811) (107,500) (75,578)
Proceeds from disposal of operating assets, net of cash divested 8,293 7,391 35,756
Cash paid for acquisitions, net of cash acquired (75,641) (39,465) 491,531
Purchases of intangible assets (14,562) (2,591) (1,790)
Decrease (increase) in other, net (3,523) (3,355) 663
------ ------ ---

Net cash provided by (used in) investing activities (203,791) (152,017) 452,987

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of debt issuance costs 538,124 (669) 1,352,856
Payments on long-term debt (525,060) (31,338) (1,233,020)
Redemption of preferred stock - - (40,000)
Contributions from noncontrolling interests 825 711 429
Distributions to noncontrolling interests (20,079) (20,863) (14,955)
Purchases and sales of noncontrolling interests, net (4,259) (47,610) (6,670)
Proceeds from exercise of stock options 1,143 2,705 8,640
Proceeds from sale of common stock - 76,492 -
Equity issuance costs - - (357)
Payments for purchases of common stock - - (1,567)
Payments for deferred and contingent consideration (10,585) (23,807) (16,270)
------- ------- -------

Net cash provided by (used in) financing activities (19,891) (44,379) 49,086
Effect of exchange rate changes on cash and cash equivalents 13,386 12,186 (4,788)
------ ------ ------

Net increase (decrease) in cash and cash equivalents 156,802 (48,505) 655,803
Cash and cash equivalents at beginning of period 844,253 892,758 236,955
------- ------- -------

Cash and cash equivalents at end of period $1,001,055 $844,253 $892,758
========== ======== ========








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 continued growth of the company's core business; anticipated product innovations resulting from the company's ticketing replatforming project; the anticipated performance of the company's Sponsorship & Advertising business; and expected improved performance by the company's Artist Nation segment. 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 the 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 below.

Adjusted Operating Income (Loss), or AOI, is a non-GAAP financial measure that the company defines as operating income (loss) before acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration arrangements, merger bonuses, payments under the Azoff Trust note and acquisition-related severance), depreciation and amortization (including goodwill impairments), loss (gain) on sale of operating assets and non-cash and certain stock-based compensation expense (including expense associated with grants of certain stock-based awards which are classified as liabilities). The company uses AOI to evaluate the performance of its operating segments. The company believes that information about AOI assists investors by allowing them to evaluate changes in the operating results of the portfolio of the businesses separate from non-operational factors that affect net income, 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 the company's 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.

Free Cash Flow is a non-GAAP financial measure that the company defines as Adjusted Operating Income (Loss) less maintenance capital expenditures, less net cash interest expense, less cash taxes, less net distributions to noncontrolling interest partners, plus distributions from investments in nonconsolidated affiliates net of contributions to investments in nonconsolidated affiliates. The company uses free cash flow, among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than maintenance capital expenditures. The company believes that information about free cash flow provides investors with an important perspective on the cash available to service debt and make acquisitions. Free cash flow is not calculated or presented in accordance with GAAP. A limitation of the use of free cash flow as a performance measure is that it does not necessarily represent funds available for operations and is not necessarily a measure of the company's ability to fund its cash needs. Accordingly, free cash flow should be considered in addition to, and not as a substitute for, operating income (loss) and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, free cash flow as presented herein may not be comparable to similarly titled measures of other companies.

Free Cash is a non-GAAP financial measure that the company defines as cash and cash equivalents less ticketing-related client funds, less event-related deferred revenue, less accrued expenses due to artists and for cash collected on behalf of others for ticket sales, plus event-related prepaids. The company uses free cash as a proxy for how much cash it has available to, among other things, optionally repay debt balances, make acquisitions and finance venue and other 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.

Constant currency is a non-GAAP financial measure. For the purpose of determining our constant currency results, we calculate the effect of changes in currency exchange rates 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.








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

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

($ in millions) Adjusted operating income Non-cash and stock-based Loss (gain) on sale of operating
(loss) compensation expense assets Acquisition expenses Operating income (loss)
Depreciation and
amortization

Three months endedDecember 31, 2012
-----------------------------------

Concerts $(29.0) $1.4 $ - $45.5 $1.2 $(77.1)
Ticketing 68.6 1.6 - 44.6 - 22.4
Artist Nation 5.1 0.8 - 79.4 0.8 (75.9)
Sponsorship & Advertising 37.8 0.1 - 0.9 - 36.8
Other and Eliminations (0.5) (0.1) (0.2) (0.1) - (0.1)
Corporate (19.5) 5.6 - 0.6 6.7 (32.4)
----- --- --- --- --- -----
Total Live Nation $62.5 $9.4 $(0.2) $170.9 $8.7 $(126.3)
===== ==== ===== ====== ==== =======

Three months ended December 31, 2011
------------------------------------

Concerts $(31.9) $1.7 $(0.2) $44.6 $2.7 $(80.7)
Ticketing 65.4 1.5 - 46.7 1.2 16.0
Artist Nation 12.2 0.3 - 13.2 (5.8) 4.5
Sponsorship & Advertising 36.5 0.3 - 0.3 - 35.9
Other and Eliminations 2.6 - 0.3 (0.4) (0.1) 2.8
Corporate (34.1) 5.6 - 1.0 4.5 (45.2)
----- --- --- --- --- -----
Total Live Nation $50.7 $9.4 $0.1 $105.4 $2.5 $(66.7)
===== ==== ==== ====== ==== ======

Twelve months ended December 31, 2012
-------------------------------------

Concerts $31.4 $5.6 $(0.5) $145.6 $0.8 $(120.1)
Ticketing 294.6 6.3 (0.2) 165.9 (0.2) 122.8
Artist Nation 38.1 1.8 - 115.7 1.2 (80.6)
Sponsorship & Advertising 175.6 0.6 - 1.2 - 173.8
Other and Eliminations (1.6) (0.1) 0.2 (1.6) - (0.1)
Corporate (79.0) 22.8 - 2.8 12.8 (117.4)
----- ---- --- --- ---- ------
Total Live Nation $459.1 $37.0 $(0.5) $429.6 $14.6 $(21.6)
====== ===== ===== ====== ===== ======

Twelve months ended December 31, 2011
-------------------------------------

Concerts $30.3 $6.0 $(0.9) $132.5 $(2.3) $(105.0)
Ticketing 279.0 5.5 (0.1) 158.1 2.2 113.3
Artist Nation 47.2 28.1 1.3 50.4 (7.7) (24.9)
Sponsorship & Advertising 165.1 0.8 - 0.5 - 163.8
Other and Eliminations 2.2 - 0.7 (0.9) (0.1) 2.5
Corporate (85.9) 20.2 - 2.5 22.8 (131.4)
----- ---- --- --- ---- ------
Total Live Nation $437.9 $60.6 $1.0 $343.1 $14.9 $18.3
====== ===== ==== ====== ===== =====






Reconciliation of Adjusted Operating Income (Loss) to Free Cash
Flow
---------------------------------------------------------------

in ($ in millions) Q4 2012 Q4 2011
----------------- ------- -------
Adjusted operating
income $62.5 $50.7
Less: Cash interest
expense -net (23.0) (29.4)
Cash taxes (8.4) (3.4)
Maintenance capital
expenditures (20.8) (22.8)
Distributions to
noncontrolling
interests (10.9) (6.6)
Distributions from
(contributions to)
investments in
nonconsolidated
affiliates 2.0 (8.9)
--- ----
Free cash flow $1.4 $(20.4)
Revenue generating
capital expenditures (14.3) (20.1)
----- -----
Net $(12.9) $(40.5)
--- ------ ------

in ($ in millions) 12 months 12 months
2012 2011
--- ---- ----
Adjusted operating
income $459.1 $437.9
Less: Cash interest
expense -net (108.0) (107.3)
Cash taxes 2.2 (37.7)
Maintenance capital
expenditures (63.0) (64.4)
Distributions to
noncontrolling
interests (20.1) (18.9)
Distributions from
(contributions to)
investments in
nonconsolidated
affiliates 5.5 (6.5)
--- ----
Free cash flow $275.7 $203.1
Revenue generating
capital expenditures (60.3) (47.7)
----- -----
Net $215.4 $155.4
--- ------ ------




Reconciliation of Cash and Cash Equivalents to Free Cash
--------------------------------------------------------

($ in millions) December 31,
2012
--- ----
Cash and cash equivalents $1,001.1
Client cash (441.6)
Deferred revenue - event related (363.6)
Accrued artist fees (8.5)
Collections on behalf of others (52.8)
Prepaids related to artist settlements/events 205.3
-----
Free cash $339.9
--------- ------






Detail of Revenue as Reported and at Constant Currency
------------------------------------------------------

Reported Constant Currency Reported Reported Constant Currency
Q4 2012 Q4 2012 Q4 2011 Growth Growth
------- ------- ------- ------ ------
($ in millions)
Revenue
Concerts $915.8 $915.1 $694.4 31.9% 31.8%
Ticketing 372.5 372.1 352.6 5.6% 5.5%
Artist Nation 101.3 101.0 99.2 2.1% 1.8%
Sponsorship 54.7 54.9 48.3 13.3% 13.7%
& Advertising
Other and (7.1) (7.1) (8.8) 19.3% 19.3%
Eliminations

$1,437.2 $1,436.0 $1,185.7 21.2% 21.1%
======== ======== ======== ==== ====

Reported Constant Currency Reported Reported Constant Currency
12 Months 12 Months 12 Months Growth Growth
2012 2012 2011
---- ---- ----
($ in millions)
Revenue
Concerts $3,870.4 $3,950.6 $3,506.2 10.4% 12.7%
Ticketing 1,374.0 1,388.8 1,319.3 4.1% 5.3%
Artist Nation 399.9 400.2 393.1 1.7% 1.8%
Sponsorship 247.9 253.0 230.8 7.4% 9.6%
& Advertising
Other and (73.2) (73.2) (65.4) (11.9%) (11.9%)
Eliminations

$5,819.0 $5,919.4 $5,384.0 8.1% 9.9%
======== ======== ======== === ===


SOURCE Live Nation Entertainment

Photo:http://photos.prnewswire.com/prnh/20100603/LA14899LOGO
http://photoarchive.ap.org/
Live Nation Entertainment

CONTACT: Investors, Maili Bergman, +1-310-867-7000, IR@livenation.com, or Media, Jacqueline Peterson, +1-310-360-3051, jacquelinepeterson@livenation.com

Web Site: http://www.livenation.com/investors


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