01—Abstract
Summary
Summary of the 10-K/A filed June 23, 2017. Cited figures are marked; the original filing is the authoritative source.
This Form 10-K/A (Amendment No. 1) from Live Nation Entertainment, Inc. supplements only Item 15(c) of its annual report for the year ended December 31, 2016.
It adds separate financial statements of Venta de Boletos por Computadora, S. A. de C. V.
(VBC) as Exhibits 99.1 (years ended December 31, 2016 and 2015) and 99.2 (years ended December 31, 2015 and 2014). VBC is a subsidiary of OCESA Entretenimiento, S. A. de C.
V., which is in turn a subsidiary of Corporación Interamericana de Entretenimiento, S. A. B. de C.
V. VBC markets tickets through automated sales systems, mainly through the Ticketmaster system, and has no employees. Its administrative, accounting, legal, finance and operating services are provided by a related party.
The amendment does not change any other information in the original Form 10-K. VBC's audited statements are prepared under Mexican Financial Reporting Standards and are presented in thousands of Mexican pesos. For 2016, revenue for services was Ps905,903 thousand, up from Ps843,081 thousand in 2015.
Operating income was Ps440,139 thousand, compared with Ps403,555 thousand, and net consolidated profit was Ps329,600 thousand, compared with Ps300,840 thousand. At December 31, 2016, total assets were Ps1,098,517 thousand and cash and cash equivalents were Ps815,697 thousand. Dividends paid in 2016 totaled Ps323,350 thousand, versus Ps197,500 thousand in 2015.
Cash included deposits from third parties for ticket purchases of Ps549,289 thousand at year-end 2016. The 2016 statements are covered by an unqualified opinion from PricewaterhouseCoopers, S. C. dated June 16, 2017.
The notes also disclose a Ticketmaster brand and system license, renewed through March 31, 2018, and several consumer-protection, copyright and fraud-related proceedings. External advisors consider the PROFECO matters not to represent a material contingency. The notes include a reconciliation to U.S. GAAP, but the company states the differences were not significant to the balance sheet, net income or stockholders' equity.
02—Key points
Key Highlights
- Filing purpose: Amendment No. 1 adds Item 15(c) separate financial statements of VBC, an entity the filing describes as a 50% or less owned person, as Exhibits 99.1 and 99.2; no other 10-K information is changed.
- VBC 2016 revenue for services was Ps905,903 thousand, up from Ps843,081 thousand in 2015, and operating income was Ps440,139 thousand versus Ps403,555 thousand.
- VBC 2016 net consolidated profit was Ps329,600 thousand, compared with Ps300,840 thousand in 2015.
- Dividends paid rose to Ps323,350 thousand in 2016 from Ps197,500 thousand in 2015, and cash and cash equivalents were Ps815,697 thousand at December 31, 2016.
- VBC's cash includes Ps549,289 thousand of third-party deposits held for the future purchase of tickets to artistic events, which are returned if events do not take place.
- VBC has no employees; administrative, accounting, legal, finance and operating services are provided by a related party, and it is a subsidiary of OCESA Entretenimiento, S. A. de C. V.
- The Ticketmaster brand and system license with Ticketmaster Corporation was renewed for three years, ending March 31, 2018, and VBC pays an annual royalty fixed fee expressed in dollars.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-K/AFY2016filed June 23, 2017Financial Statements
FY2016 against FY2015
| Line item | FY2016FY2015 | Change |
|---|---|---|
| Revenue | $7.83B$7.25B | +8.0% |
| SG&A Expenses | $1.55B$1.41B | +9.7% |
| Operating Income | $194.94M$131.37M | +48.4% |
| Interest Expense | $106.51M$102.88M | +3.5% |
| Net Income | $2.94M-$32.51M | +109.1% |
| EPS (Basic) | $-0.23$-0.33 | +30.3% |
| Shares Outstanding (Basic) | 202.08M200.97M | +0.5% |
05—Questions
Frequently Asked Questions
Why was this 10-K/A filed?
The amendment supplements only Item 15(c) of the annual report by adding separate financial statements of Venta de Boletos por Computadora, S. A. de C. V. for 2016 and 2015 (Exhibit 99.1) and for 2015 and 2014 (Exhibit 99.2). It also includes a signature page, an accountants' consent for VBC, and certifications.
How did VBC perform in 2016?
According to its audited statements, VBC's revenue for services rose to Ps905,903 thousand in 2016 from Ps843,081 thousand in 2015. Operating income was Ps440,139 thousand, and net consolidated profit was Ps329,600 thousand, compared with Ps300,840 thousand the prior year.
What does VBC's business consist of?
VBC markets tickets through automated sales systems for sporting, musical, cultural, theater and other entertainment events, mainly through the electronic system called Ticketmaster. It also provides related services and the use, transmission or marketing of related goods, services and databases.
Did the auditors give a clean opinion on VBC's financial statements?
Yes. PricewaterhouseCoopers, S. C. stated that the 2016 consolidated financial statements present fairly, in all material respects, VBC's financial position in conformity with Mexican Financial Reporting Standards. The report is dated June 16, 2017, and the statements are presented under Mexican standards, which the auditor notes vary in certain significant respects from U.S. GAAP.
06—Continue