01—Abstract
Summary
Summary of the 10-K/A filed June 30, 2020. Cited figures are marked; the original filing is the authoritative source.
This Form 10-K/A (Amendment No. 1) from Live Nation Entertainment, Inc. amends only Item 15(c) of the Original Form 10-K filed on February 27, 2020.
The amendment consists of the cover page, an explanatory note, Exhibit 99.1 containing the financial statements of Venta de Boletos por Computadora, S.A. de C.V. (VBC), a Mexican ticketing company and affiliate, a signature page, an accountants' consent for VBC, certifications, and the cover page interactive data file. It does not change any other information in the Original Form 10-K and does not reflect events after the original filing.
The Exhibit 99.1 financial statements cover VBC and its subsidiaries for the years ended December 31, 2019, 2018 and 2017, prepared under Mexican Financial Reporting Standards and stated in thousands of Mexican pesos. For 2019, VBC reported revenue for services of Ps. 1,051,429 thousand, operating income of Ps.
594,886 thousand, and net consolidated profit of Ps. 466,624 thousand, compared with revenue of Ps. 1,095,513 thousand and net profit of Ps.
564,365 thousand in 2018. Cash and cash equivalents were Ps. 395,971 thousand at year-end 2019 versus Ps.
926,422 thousand at year-end 2018. Dividends paid were Ps. 865,580 thousand in 2019.
The auditor's report covers only the 2017 statements; the 2019 and 2018 statements are presented under SEC Rule 3-09 and are not covered by the audit report. The notes disclose that the reconciliation to U.S. GAAP was not significant for the statement of financial position, net income or stockholders' equity. Note 20 states that COVID-19 could materially affect results, that the company had no significant liquidity effects to date, and that events for Q3 and Q4 were postponed, mainly into early 2021.
02—Key points
Key Highlights
- Amendment No. 1 changes only Item 15(c); it adds the Rule 3-09 financial statements of affiliate Venta de Boletos por Computadora, S.A. de C.V. (VBC) as Exhibit 99.1.
- VBC 2019 revenue for services was Ps. 1,051,429 thousand, down from Ps. 1,095,513 thousand in 2018.
- VBC 2019 operating income was Ps. 594,886 thousand, compared with Ps. 673,764 thousand in 2018.
- VBC 2019 net consolidated profit was Ps. 466,624 thousand, compared with Ps. 564,365 thousand in 2018.
- VBC paid Ps. 865,580 thousand in dividends in 2019 and its cash and cash equivalents fell to Ps. 395,971 thousand from Ps. 926,422 thousand.
- The auditor's report covers only the 2017 VBC statements; the 2019 and 2018 statements are not covered by an audit report.
- VBC's note on COVID-19 states the company had no significant liquidity effects to date, with events for Q3 and Q4 postponed, mainly into early 2021.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-K/AFY2019filed June 30, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $11.55B$10.79B | +7.0% |
| SG&A Expenses | $2.15B$2.00B | +7.4% |
| Operating Income | $324.84M$272.54M | +19.2% |
| Interest Expense | $157.52M$140.98M | +11.7% |
| Net Income | $69.89M$60.25M | +16.0% |
| EPS (Basic) | $-0.02$-0.09 | +77.8% |
| Shares Outstanding (Basic) | 210.08M207.44M | +1.3% |
05—Questions
Frequently Asked Questions
What does this 10-K/A amendment change in Live Nation's annual report?
The amendment supplements only Item 15(c) of the Original Form 10-K. It adds Exhibit 99.1, the financial statements of Venta de Boletos por Computadora, S.A. de C.V. (VBC), along with an accountants' consent for VBC, certifications, a signature page and the cover page interactive data file. The filing states that it does not change any other information in the Original Form 10-K.
What is Venta de Boletos por Computadora (VBC)?
The filing describes VBC as a subsidiary of OCESA Entretenimiento, S.A. de C.V., which is itself a subsidiary of Corporación Interamericana de Entretenimiento, S.A.B. de C.V. VBC markets tickets through automated sales systems, mainly through the electronic system called Ticketmaster, and has no employees, with administrative and operating services provided by related parties.
How did VBC's financial results trend in 2019 compared with 2018?
In thousands of Mexican pesos, revenue for services declined to Ps. 1,051,429 from Ps. 1,095,513, operating income declined to Ps. 594,886 from Ps. 673,764, and net consolidated profit declined to Ps. 466,624 from Ps. 564,365. Cash and cash equivalents decreased to Ps. 395,971 from Ps. 926,422 at year-end.
Are the VBC financial statements audited for all years presented?
No. The auditor's report from PricewaterhouseCoopers, S.C. covers only the consolidated statements for 2017. The 2019 and 2018 statements are presented to comply with SEC Rule 3-09 and are not covered by the audit report.
How does VBC describe the potential impact of COVID-19?
In its subsequent events note, VBC states that the coronavirus outbreak could deter fans from attending events and reduce discretionary spending on entertainment, and that its results could be negatively and materially affected if quarantine periods are extended. To date, it reports no significant liquidity effects, as events for Q3 and Q4 and early 2021 have been postponed.
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