Live Nation Entertainment (LYV) has reported a 2.40 times jump in profit for the quarter ended Sep. 30, 2014. The company has earned $105.16 million, or $0.49 a share in the quarter, compared with $43.77 million, or $0.22 a share for the same period last year.
Revenue during the quarter grew 10.60 percent to $2,502.01 million from $2,262.24 million in the previous year period. Gross margin for the quarter expanded 9 basis points over the previous year period to 25 percent. Total expenses were 93.98 percent of quarterly revenues, down from 94.43 percent for the same period last year. This has led to an improvement of 45 basis points in operating margin to 6.02 percent.
Operating income for the quarter was $150.60 million, compared with $126.04 million in the previous year period.
Cash Flow
Live Nation Entertainment. has spent $13.83 million cash to meet operating activities during the nine month period as against cash inflow of $264.54 million in the last year period.
The company has spent $159.69 million cash to meet investing activities during the nine month period as against cash outgo of $42.49 million in the last year period. It has incurred net capital expenditure of $100.92 million on net basis during the nine month period, down 2.58 percent or $2.67 million from year ago period.
Cash flow from financing activities was $251.25 million for the nine month period, up 200.18 percent or $167.55 million, when compared with the last year period. It has borrowed net of $270.24 million through debt. It has raised net of $14.14 million by selling common stocks.
Cash and cash equivalents stood at $1,358.30 million as on Sep. 30, 2014, up 4.28 percent or $55.72 million from $1,302.58 million on Sep. 30, 2013.
Working Capital
Live Nation Entertainment. has recorded an increase in the working capital over the last year. It stood at $506 million as at Sep. 30, 2014, up 286.85 percent or $375.20 million from $130.80 million on Sep. 30, 2013. Current ratio was at 1.25 as on Sep. 30, 2014, up from 1.06 on Sep. 30, 2013.
Days sales outstanding went down to 22 days for the quarter compared with 25 days for the same period last year. At the same time, days payable outstanding went down to 39 days for the quarter from 42 for the same period last year.
Debt Level
Live Nation Entertainment. has witnessed an increase in total debt over the last one year. It stood at $2,075.16 million as on Sep. 30, 2014, up 15 percent or $270.70 million from $1,804.45 million on Sep. 30, 2013.
Total debt was 34.31 percent of total assets as on Sep. 30, 2014, compared with 31.24 percent on Sep. 30, 2013. Debt to equity ratio was at 1.23 as on Sep. 30, 2014, up from 1.09 as on Sep. 30, 2013. Interest coverage ratio improved to 5.36 for the quarter from 4.29 for the same period last year.
