01—Abstract
Summary
Summary of the 10-K/A filed June 30, 2015. Cited figures are marked; the original filing is the authoritative source.
This Amendment No. 1 on Form 10-K/A for Live Nation Entertainment, Inc. amends only Item 15(c) of the Annual Report for the year ended December 31, 2014.
It adds separate financial statements of Venta de Boletos por Computadora, S.A. de C.V. (VBC), a Mexican ticketing company that is a subsidiary of Ocesa Entretenimiento, S.A. de C.V. The amendment states that it does not change any other information in the original filing.
The VBC statements are provided in Exhibit 99.1 (years ended December 31, 2014 and 2013) and Exhibit 99.2 (years ended December 31, 2013 and 2012), and are presented in Mexican pesos under Mexican Financial Reporting Standards. For 2014, VBC reported service revenue of Ps 592.4 million (Ps 674,977,500 thousand in 2013 was Ps 675.0 million), operating income of Ps 262.1 million (Ps 351.2 million in 2013), and net income of Ps 197.4 million (Ps 267.4 million in 2013). Total assets were Ps 681.4 million at December 31, 2014, up from Ps 587.1 million a year earlier, and cash and cash equivalents were Ps 280.0 million.
Dividends paid were Ps 185.1 million in 2014 compared with Ps 347.0 million in 2013. The 2014 columns in Exhibit 99.1 are labeled unaudited. The filing also notes that VBC's license agreements with Ticketmaster Corporation for use of the Ticketmaster brand names and system expire on March 31, 2015, and that management expects them to be renewed on similar terms.
Exhibit 99.1 also reports contingencies, including PROFECO fines and trademark disputes, which VBC's advisors consider not material. Investors should treat this filing as supplemental financial information about VBC rather than a change to Live Nation's own results.
02—Key points
Key Highlights
- Amendment No. 1 on Form 10-K/A amends only Item 15(c) and adds separate financial statements of Venta de Boletos por Computadora, S.A. de C.V. (VBC), with all other content of the original 10-K unchanged
- VBC's 2014 service revenue was Ps 592,427,661 versus Ps 674,977,500 in 2013, and 2014 net income was Ps 197,424,944 versus Ps 267,370,561 in 2013
- VBC's 2014 operating income was Ps 262,100,669, compared with Ps 351,226,397 in 2013
- Total assets rose to Ps 681,404,967 at December 31, 2014, from Ps 587,063,991 at December 31, 2013, with cash and cash equivalents of Ps 279,971,575
- VBC paid dividends of Ps 185,077,077 in 2014, compared with Ps 347,000,000 in 2013
- The Ticketmaster brand and system license agreements with Ticketmaster Corporation expire on March 31, 2015, and management expects renewal on similar terms
- The financial statements are presented in Mexican pesos under Mexican Financial Reporting Standards, with a U.S. GAAP reconciliation note stating that the differences are not significant to net income or stockholders' equity
03—One dollar
04—Financials
Financial Highlights
Figures from 10-K/AFY2014filed June 30, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $6.87B$6.48B | +6.0% |
| SG&A Expenses | $1.34B$1.23B | +9.0% |
| Operating Income | $7.16M$139.66M | −94.9% |
| Interest Expense | $106.31M$111.66M | −4.8% |
| Net Income | -$90.81M-$43.38M | −109.3% |
| EPS (Basic) | $-0.49$-0.23 | −113.0% |
| Shares Outstanding (Basic) | 198.87M193.89M | +2.6% |
05—Questions
Frequently Asked Questions
What does this amendment change in Live Nation's 10-K?
It only supplements Item 15(c) by adding separate financial statements of VBC in Exhibits 99.1 and 99.2. The filing states that it does not change any other information in the original Annual Report on Form 10-K for the year ended December 31, 2014.
What is VBC and how is it related to Live Nation?
VBC is Venta de Boletos por Computadora, S.A. de C.V., a Mexican company engaged in automated ticket sales and telemarketing services, along with marketing of databases. The filing describes it as a subsidiary of Ocesa Entretenimiento, S.A. de C.V., which is in turn a subsidiary of Corporacion Interamericana de Entretenimiento, S.A.B. de C.V. The VBC financial statements are filed as separate statements under Item 15(c).
How did VBC's earnings change between 2013 and 2014?
Service revenue declined from Ps 674,977,500 in 2013 to Ps 592,427,661 in 2014. Net income fell from Ps 267,370,561 to Ps 197,424,944. Operating income was Ps 262,100,669 in 2014 compared with Ps 351,226,397 in 2013.
Does the VBC ticketing business depend on the Ticketmaster brand?
The filing says VBC entered into license agreements with Ticketmaster Corporation for use of the Ticketmaster brand names and system, paying a fixed royalty fee denominated in dollars. These agreements expire on March 31, 2015. The filing states there is no guarantee of renewal, but management believes they may be renewed on similar terms.
06—Continue