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Live Nation Entertainment — Feb 20, 2025 release

Fiscal 2024 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001335258-25-000027
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Exhibit 99.1 · the passage around this item
EX-99.2 CORRECTION OF ERRORS IN PREVIOUSLY REPORTED CONSOLIDATED FINANCIALS Document Exhibit 99.2 Correction of Errors in Previously Reported Consolidated Quarterly Financial Statements (Unaudited) As previously disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, in calculating our income taxes for the three and nine months ended September 30, 2024, we identified errors in our previously issued financial statements for the years ended December 31, 2023 and December 31, 2022 related to the measurement of income tax expense for certain foreign subsidiaries statutory earnings. These errors were non-cash items that had no impact to our cash paid for income taxes. We assessed the materiality of these errors, using both quantitative and qualitative factors, in accordance with the SEC Staff Accounting Bulletin (“SAB”) No. 99 “Materiality” and SAB 108 “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” codified in ASC 250 “Accounting Changes and Error Corrections” and concluded these errors (including when aggregated with other errors discussed below) were immaterial to all of the previously issued consolidated financial statements but, if corrected in the current year, would be material to the current year. Under ASC 250, such prior‑year misstatements which, if corrected in the current year would be material to the current year, must be corrected by adjusting the prior‑year financial statements. Correcting prior‑year financial statements for such immaterial errors does not require previously filed reports to be amended. In addition to the errors related to the income tax provision as noted above, we recorded other errors to correct prior periods as presented below. These errors were not previously recorded, as we concluded that they were immaterial individually and in aggregate to our previously issued consolidated financial statements. The effects of the error corrections on our unaudited consolidated statements of operations during the interim periods for the years ended December 31, 2024 and December 31, 2023 are presented in the tables below. The following table presents our consolidated statements of operations for the three months ended December 31, 2024, September 30, 2024 and June 30, 2024: Three Months Ended December 31, 2024 Three Months Ended September 30, 2024 Three Months Ended June 30, 2024 As Reported As Reported As Reported (unaudited, in thousands except per share data) Revenue $ 5,681,593  $ 7,651,087  $ 6,023,416  Operating income (loss) (239,444) 639,525  465,819  Net income 281,918  515,683  376,228  Net income attributable to noncontrolling interests 80,931  63,878  78,258  Net income attributable to common stockholders of Live Nation 200,987  451,805  297,970  Basic net income per common share available to common stockholders of Live Nation 0.56  1.72  1.05  Diluted net income per common share available to common stockholders of Live Nation 0.56  1.66  1.03  AOI 157,329  909,831  716,231  1 The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the three months ended March 31, 2024: Three Months Ended March 31, 2024 As Reported Adjustments As Revised (unaudited, in thousands except per share data) Direct operating expenses $ 2,646,457  $ 4,883  $ 2,651,340  Operating loss (36,507) (4,883) (41,390) Income (loss) before income taxes 3,197  (4,883) (1,686) Income tax expense 35,414  5,605  41,019  Net loss (32,217) (10,488) (42,705) Net income attributable to noncontrolling interests 14,516  (2,746) 11,770  Net loss attributable to common stockholders of Live Nation (46,733) (7,742) (54,475) Basic net loss per common share available to common stockholders of Live Nation (0.53) (0.03) (0.56) Diluted net loss per common share available to common stockholders of Live Nation (0.53) (0.03) (0.56) AOI 367,390  (4,883) 362,507  The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the three months ended December 31, 2023: Three Months Ended December 31, 2023 As Reported Adjustments As Revised (unaudited, in thousands except per share data) Revenue $ 5,838,941  $ (20,260) $ 5,818,681  Direct operating expenses 4,681,184  (20,260) 4,660,924  Income tax expense 38,865  43,541  82,406  Net loss (181,893) (43,541) (225,434) Net income attributable to noncontrolling interests 28,835  (21,335) 7,500  Net loss attributable to common stockholders of Live Nation (210,728) (22,206) (232,934) Basic net loss per common share available to common stockholders of Live Nation (1.25) (0.09) (1.34) Diluted net loss per common share available to common stockholders of Live Nation (1.25) (0.09) (1.34) AOI 116,919  —  116,919  2 The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the three months ended September 30, 2023: Three Months Ended September 30, 2023 As Reported Adjustments As Revised (unaudited, in thousands except per share data) Revenue $ 8,152,019  $ 2,544  $ 8,154,563  Direct operating expenses 6,330,465  (32,582) 6,297,883  Operating income 618,532  35,126  653,658  Income before income taxes 596,555  35,126  631,681  Income tax expense 55,874  (5,605) 50,269  Net income 540,681  40,731  581,412  Net income attributable to noncontrolling interests 57,186  2,746  59,932  Net income attributable to common stockholders of Live Nation 483,495  37,985  521,480  Basic net income per common share available to common stockholders of Live Nation 1.85  0.16  2.01  Diluted net income per common share available to common stockholders of Live Nation 1.78  0.15  1.93  AOI 836,063  35,126  871,189  The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the three months ended June 30, 2023: Three Months Ended June 30, 2023 As Reported Adjustments As Revised (unaudited, in thousands except per share data) Revenue $ 5,630,723  $ (2,209) $ 5,628,514  Direct operating expenses 4,164,778  2,563  4,167,341  Operating income 386,371  (4,772) 381,599  Income before income taxes 372,985  (4,772) 368,213  Income tax expense 41,648  11,313  52,961  Net income 331,337  (16,085) 315,252  Net income attributable to noncontrolling interests 37,655  7,577  45,232  Net income attributable to common stockholders of Live Nation 293,682  (23,662) 270,020  Basic net income per common share available to common stockholders of Live Nation 1.04  (0.11) 0.93  Diluted net income per common share available to common stockholders of Live Nation 1.02  (0.10) 0.92  AOI 589,697  (4,772) 584,925  3 The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the three months ended March 31, 2023: Three Months Ended March 31, 2023 As Reported Adjustments As Revised (unaudited, in thousands except per share data) Revenue $ 3,127,390  $ (2,831) $ 3,124,559  Direct operating expenses 2,115,589  8,793  2,124,382  Operating income 142,776  (11,624) 131,152  Income before income taxes 68,032  (11,624) 56,408  Net income 44,192  (11,624) 32,568  Net income attributable to noncontrolling interests 47,361  (13,120) 34,241  Net loss attributable to common stockholders of Live Nation (3,169) 1,496  (1,673) Basic net loss per common share available to common stockholders of Live Nation (0.25) —  (0.25) Diluted net loss per common share available to common stockholders of Live Nation (0.25) —  (0.25) AOI 319,710  (11,624) 308,086  The following table sets forth the reconciliation of consolidated operating income to consolidated AOI for the years ended December 31, 2024, 2023 and 2022: 2024 2023 2022 As Revised As Revised (in thousands) Operating income (1) $ 824,510  $ 1,084,933  $ 722,031  Acquisition expenses 128,513  93,664  68,078  Amortization of non-recoupable ticketing contract advance 88,717  83,693  79,043  Depreciation and amortization 549,923  516,797  449,976  Gain on sale of operating assets (11,015) (13,927) (32,082) Astroworld estimated loss contingencies 454,902  —  —  Stock-based compensation expense 110,348  115,959  110,049  Consolidated AOI (1) $ 2,145,898  $ 1,881,119  $ 1,397,095  ___________________ (1) For the years ended December 31, 2023 and December 31, 2022, the revision increased our operating income and consolidated AOI by $18.7 million for 2023 and decreased our operating income and consolidated AOI by $10.1 million for 2022, respectively. See further discussion in Part II — Financial Information—Item 8.—Financial Statements and Supplementary Data—Note 2 – Correction of Errors in Previously Reported Consolidated Financial Statements. 4 The following table presents the impact of correcting the errors for each operating segments’ revenue and AOI for each interim period for the year ended December 31, 2024: Concerts Ticketing Sponsorship & Advertising Other & Eliminations Corporate Consolidated   (unaudited, in thousands) Three Months Ended December 31, 2024 Revenue $ 4,577,293 $ 841,126 $ 281,163 $ (17,989) $ —  $ 5,681,593  AOI $ (213,188) $ 311,236 $ 135,851 $ (5,807) $ (70,763) $ 157,329  Three Months Ended September 30, 2024 Revenue $ 6,580,595 $ 693,704 $ 390,345 $ (13,557) $ — $ 7,651,087  AOI $ 474,053 $ 235,704 $ 275,329 $ (7,073) $ (68,182) $ 909,831  Three Months Ended June 30, 2024 Revenue $ 4,987,039 $ 730,677 $ 312,234 $ (6,534) $ — $ 6,023,416 AOI $ 270,694 $ 292,533 $ 222,622 $ (8,171) $ (61,447) $ 716,231 Three Months Ended March 31, 2024 Revenue $ 2,879,375 $ 723,178 $ 211,277 $ (14,301) $ — $ 3,799,529 AOI (As Reported) $ 3,072 $ 284,115 $ 129,975 $ (7,209) $ (42,563) $ 367,390 AOI (Adjustments) (4,883) — — — — (4,883) AOI (As Revised) $ (1,811) $ 284,115 $ 129,975 $ (7,209) $ (42,563) $ 362,507 5 The following table presents the impact of correcting the errors for each operating segments’ revenue and AOI for each interim period for the year ended December 31, 2023: Concerts Ticketing Sponsorship & Advertising Other & Eliminations Corporate Consolidated (unaudited, in thousands) Three Months Ended December 31, 2023 Revenue (As Reported) $ 4,874,840  $ 739,810  $ 255,418  $ (31,127) $ —  $ 5,838,941  Revenue (Adjustments) (20,260) —  —  —  —  —  (20,260) Revenue (As Revised) $ 4,854,580  $ 739,810  $ 255,418  $ (31,127) $ —  $ 5,818,681  AOI $ (184,297) $ 236,119  $ 126,202  $ (6,675) $ (54,430) $ 116,919  Three Months Ended September 30, 2023 Revenue (As Reported) $ 6,974,326  $ 832,584  $ 366,822  $ (21,713) $ —  $ 8,152,019  Revenue (Adjustments) (2,496) 5,040  —  —  —  2,544  Revenue (As Revised) $ 6,971,830  $ 837,624  $ 366,822  $ (21,713) $ —  $ 8,154,563  AOI (As Reported) $ 340,904  $ 316,448  $ 250,265  $ (6,818) $ (64,736) $ 836,063  AOI (Adjustments) —  35,126  —  —  —  35,126  AOI (As Revised) $ 340,904  $ 351,574  $ 250,265  $ (6,818) $ (64,736) $ 871,189  Three Months Ended June 30, 2023 Revenue (As Reported) $ 4,633,291  $ 709,342  $ 302,859  $ (14,769) $ —  $ 5,630,723  Revenue (Adjustments) —  (2,209) —  —  —  (2,209) Revenue (As Revised) $ 4,633,291  $ 707,133  $ 302,859  $ (14,769) $ —  $ 5,628,514  AOI (As Reported) $ 168,058  $ 292,685  $ 203,139  $ (18,142) $ (56,043) $ 589,697  AOI (Adjustments) —  (4,772) —  —  —  (4,772) AOI (As Revised) $ 168,058  $ 287,913  $ 203,139  $ (18,142) $ (56,043) $ 584,925  Three Months Ended March 31, 2023 Revenue (As Reported) $ 2,281,212  $ 677,741  $ 170,118  $ (1,681) $ —  $ 3,127,390  Revenue (Adjustments) —  (2,831) —  —  —  (2,831) Revenue (As Revised) $ 2,281,212  $ 674,910  $ 170,118  $ (1,681) $ —  $ 3,124,559  AOI (As Reported) $ 832  $ 271,051  $ 95,531  $ (7,939) $ (39,765) $ 319,710  AOI (Adjustments) (5,100) (6,524) —  —  —  (11,624) AOI (As Revised) $ (4,268) $ 264,527  $ 95,531  $ (7,939) $ (39,765) $ 308,086  6
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Text is the filed exhibit, verbatim.