01—Abstract
Summary
Summary of the 10-K/A filed June 29, 2018. Cited figures are marked; the original filing is the authoritative source.
This Form 10-K/A (Amendment No. 1) for Live Nation Entertainment, Inc. for the year ended December 31, 2017 is a narrow supplemental filing.
It amends only Item 15(c), adding the financial statements of Venta de Boletos por Computadora, S.A. de C.V. (VBC) as Exhibit 99.1, which the filing describes as an unconsolidated, 50%a-or-less-owned affiliate. The amendment states that it does not change any other information in the original Form 10-K filed on February 27, 2018, and it consists of the cover page, explanatory note, Item 15 exhibit listings, signature page, an accountants' consent for VBC, and certifications.
The attached VBC statements, prepared under Mexican Financial Reporting Standards and audited by PricewaterhouseCoopers, S.C. with an opinion dated June 28, 2018, show total assets of Ps1,931,657 thousand and total liabilities of Ps1,346,887 thousand at December 31, 2017. Net consolidated profit for 2017 was Ps474,234 thousand, compared with Ps329,600 thousand in 2016, and cash and cash equivalents rose to Ps1,779,768 thousand. The notes state that the company has no employees, that its administrative and operating services are provided by related parties, and that the company's main activity is the marketing of tickets, mainly through the Ticketmaster system.
For investors, the amendment adds no new information about Live Nation's own results, which are covered in the original 10-K. Its relevance is limited to disclosure of the separate financial condition of this affiliate, which the notes describe as operating under Mexican standards with a reconciliation to U.S. GAAP that the company did not consider significant.
02—Key points
Key Highlights
- Form 10-K/A Amendment No. 1 amends only Item 15(c); it does not change any other information in the original 10-K for the year ended December 31, 2017.
- Exhibit 99.1 adds audited financial statements of Venta de Boletos por Computadora, S.A. de C.V. (VBC) for 2017, 2016 and 2015, with an audit opinion dated June 28, 2018.
- VBC reported net consolidated profit of Ps474,234 thousand for 2017, up from Ps329,600 thousand in 2016, on revenue for services of Ps1,081,030 thousand.
- At December 31, 2017, VBC had total assets of Ps1,931,657 thousand, total liabilities of Ps1,346,887 thousand and cash and cash equivalents of Ps1,779,768 thousand.
- VBC paid dividends of Ps321,000 thousand in 2017 and Ps323,350 thousand in 2016, per the statements of changes in stockholders' equity.
- The VBC notes state that the company has no employees and relies on related parties (affiliates of OCESA) for administrative, accounting, legal, finance and operating services.
- The notes state that the U.S. GAAP differences were not significant to the balance sheet, net income or stockholders' equity, so no reconciliation was presented.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-K/AFY2017filed June 29, 2018Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Revenue | $9.69B$7.83B | +23.8% |
| SG&A Expenses | $1.91B$1.55B | +23.2% |
| Operating Income | $91.40M$194.94M | −53.1% |
| Interest Expense | $107.77M$106.51M | +1.2% |
| Net Income | -$6.01M$2.94M | −304.5% |
| EPS (Basic) | $-0.48$-0.23 | −108.7% |
| Shares Outstanding (Basic) | 204.92M202.08M | +1.4% |
05—Questions
Frequently Asked Questions
What does this 10-K/A change in Live Nation's original 2017 annual report?
The filing amends only Item 15(c) by adding the financial statements of Venta de Boletos por Computadora, S.A. de C.V. as Exhibit 99.1. It states that no other information in the original Form 10-K filed on February 27, 2018, is changed.
Who is Venta de Boletos por Computadora (VBC) and why are its financial statements included?
The filing presents VBC's statements under Item 15(c), which covers separate financial statements of subsidiaries not consolidated and of persons that are 50% or less owned. Per the VBC notes, the company 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. Its main activity is ticket marketing, mainly through the Ticketmaster system.
How did VBC's profitability and financial position change in 2017?
VBC's net consolidated profit was Ps474,234 thousand in 2017, compared with Ps329,600 thousand in 2016. Total assets rose to Ps1,931,657 thousand from Ps1,098,517 thousand, and cash and cash equivalents rose to Ps1,779,768 thousand from Ps815,697 thousand.
Does this amendment affect Live Nation's own reported financial results?
No. The filing states that it does not change any other information in the original Form 10-K. It adds only the separate financial statements of VBC, a company whose statements are presented under Mexican Financial Reporting Standards.
06—Continue