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Exhibit 99.1

 

 

For Immediate Release

 

SFX ENTERTAINMENT REPORTS SECOND QUARTER FINANCIAL RESULTS, INCLUDING 48.3% RISE IN REVENUE

 

Pro Forma Revenue Increases 31.1% And 45.4% Excluding FX Impact

 

NEW YORK — (August 10, 2015) — SFX Entertainment, Inc. (NASDAQ: SFXE) today reported financial results for the three and six months ended June 30, 2015.

 

Revenue for the three months ended June 30, 2015 grew 48.3% year over year to $121.1 million, while revenue for the first six months of 2015 increased 50.7% year over year to $173.2 million. Revenue for the three months ended June 30, 2015 included $106.7 million in Live revenue (88.1% of total revenue) related to festivals and live events that were produced, promoted, licensed or managed by SFX during the period. Live revenue for the the six months ended June 30, 2015 totaled $146.9 million (84.8% of total revenue).  Platform revenue, which represents SFX’s 365-day a year engagement with fans outside of live events and includes sales of digital music, certain marketing services and digital activities, totaled $14.4 million (11.9% of total revenue) for the three months ended June 30, 2015, and totaled $26.4 million (15.2% of total revenue) for the six months ended June 30, 2015.  The Company recognized $14.4 million of sponsorship and marketing services revenue during the three months ended June 30, 2015.

 

Direct costs for the three months ended June 30, 2015 totaled $99.1 million, with costs from Live representing $89.8 million, or 90.6% of total direct costs, and Platform costs representing $9.3 million, or 9.4% of total direct costs.  Direct costs for the six months ended June 30, 2015 totaled $133.2 million, with costs from Live representing $116.3 million, or 87.3% of total direct costs, and Platform costs representing $16.9 million, or 12.7% of total direct costs.

 

Net loss and diluted loss per share for the three-month period ended June 30, 2015 were $(48.0) million and $(0.52), respectively, while net loss and diluted loss per share for the six-month period ended June 30, 2015 were $(89.6) million and $(0.98), respectively.

 

The Company’s pro forma revenue (a non-GAAP financial measure, see definition and reconciliation below) for the three and six months ended June 30, 2015 rose 31.1% to $121.1 million and rose 24.6% to $171.8 million, respectively, as compared to the same periods in 2014.  On a constant currency basis, pro forma revenue during the 2015 second quarter grew 45.4% year over year. Pro forma adjusted EBITDA (a non-GAAP financial measure, see definition and reconciliation below) for the three and six months ended June 30, 2015, was a loss of $(6.0) million and $(15.3) million, respectively.

 

During the three months ended June 30, 2015 SFX held a total of 267 festivals and events, which attracted over 1,380,000 total attendees, including 29 festivals, which the Company defines as events with single-day capacities of over 10,000 attendees (excluding artist tours). Pro forma festival

 



 

attendance rose 37.7% to 1.1 million during the second quarter of 2015 from 780,000 for the same period in 2014.  During the second quarter, the Company held thirteen owned (not licensed) festivals that were also held in the second quarter of 2014. On a same festival basis, attendance for these festivals grew 3.4% and revenue grew 11.1% on a constant currency basis.

 

2015 Second Quarter Highlights and Recent Developments

 

·                  Beatport entered into a groundbreaking partnership with Spotify to create an electronic music destination within Spotify, which is expected to launch in the fourth quarter of 2015, featuring exclusive programming from SFX events and Beatport-curated playlists.

·                  The highly-anticipated third edition of TomorrowWorld, set to take place September 25-27, 2015, unveiled its artist lineup including Hardwell, Martin Garrix, and Kaskade, and announced its stage curators which include All Gone Pete Tong, Q-Dance, and Drumcode. The event will also feature a unique array of local dining concepts, coined “Tomorrow’s Table,” from Top Chef alum Kevin Gillespie, promising to make this year’s experience in Chattahoochee Hills, Georgia, the most magical yet.

·                  Beatport hosted live streams from Tomorrowland Belgium, Mysteryland USA, Nature One, Sensation Legacy, Defqon.1, as well as exclusive live shows from Beatport’s studios in Denver, Berlin, and Amsterdam.

·                  SFX’s Teamwork Management (TMWRK) client Major Lazer’s multi-platinum hit “Lean On” has occupied the #1 spot on Spotify’s Global Top 50 chart for 11 weeks, while the music video has garnered over 360 million views on YouTube.

·                  Sensation will entertain fans in Japan for the first time this October with a “Wicked Wonderland” festival in Tokyo. Also in October, the brand will hold its first event in Quebec at the new Videotron Centre, making it the very first electronic music event to take place inside the venue. The brand celebrated its fifteenth anniversary on July 4, 2015, with an exclusive LEGACY edition in front of a sold-out crowd at the Amsterdam Arena.

·                  Taking place over Labor Day weekend on Randall’s Island in New York City, this year’s Electric Zoo will boast a record number of corporate partners and sponsors including T-Mobile, Mastercard, MillerCoors, Smirnoff, Vitamin Water, Red Bull, and Diff Eyewear, among others.

·                  Chicago-based React Presents partnered with T-Mobile to present the official live stream of Spring Awakening Music Festival, held June 12-14, 2015, which garnered over 2 million live views. React also announced its inaugural 3-day Halloween festival, Freaky Deaky, to take place at Toyota Park, which is expected to attract over 75,000 fans and will feature headliners like Armin van Buuren, 2 Chainz, Pretty Lights, and Big Gigantic.

·                  Q-dance, the Netherlands-based pioneer in the hard dance movement with a growing audience in the US and worldwide, presented its showpiece Defqon.1 on June 19-21, 2015, to an audience of over 130,000 attendees, making it the largest hard dance gathering in the world with almost 50% of its visitors coming from outside the Netherlands.

·                  Awakenings Festival hosted a sold out crowd of 75,000 techno fans outside of Amsterdam on June 27-28, 2015.

·                  Millions of fans around the globe experienced the madness of Tomorrowland Belgium by visiting the festival’s live stream on July 24-26, 2015.  Over 4 million unique visitors accessed the live stream, which was available through Tomorrowland’s website during the festival weekend, producing over 13 million streams.

·                  A sold out crowd of 107,000 attendees attended I-Motion’s iconic Nature One festival in Kastellaun, Germany on July 31-August 2, 2015.

 



 

Merger Agreement and Company Outlook:

 

The Company and an affiliate of Mr. Robert F.X. Sillerman, the Company’s Chairman and CEO, signed a merger agreement on May 26, 2015, pursuant to which the Company’s stockholders will receive $5.25 in cash for each share of common stock held. Unless an alternative transaction is reviewed and approved by the Company’s special committee of independent directors, the previously announced merger transaction is expected to close during the fourth quarter of 2015, subject to the approval of a majority of the Company’s stockholders, excluding Mr. Sillerman and his affiliates, as well as the satisfaction of certain customary closing conditions. Upon completion of the transaction, the Company will become a privately-held company. Given the execution of a definitive merger agreement, the Company is not providing an outlook for upcoming periods and is not hosting a quarterly conference call.

 

SFX Entertainment, Inc.

Live Event Metrics

 

2015 Festivals by On-Sale Status (1)

 

 

 

Total

 

Consolidated

 

Not
Consolidated (2)

 

 

 

 

 

Completed

 

56

 

46

 

10

 

 

 

 

 

On-Sale

 

30

 

25

 

5

 

 

 

 

 

Not Yet On-Sale

 

9

 

6

 

3

 

 

 

 

 

Total Festivals

 

95

 

77

 

18

 

 

 

 

 

 

2015 Festivals by Quarter and Location

 

 

 

Total

 

North America

 

International

 

Consolidated

 

Not
Consolidated (2)

 

Q1

 

12

 

3

 

9

 

7

 

5

 

Q2

 

29

 

11

 

18

 

25

 

4

 

Q3

 

29

 

11

 

18

 

25

 

4

 

Q4

 

25

 

5

 

20

 

20

 

5

 

Total Festivals

 

95

 

30

 

65

 

77

 

18

 

 


(1) Festivals defined as having attendance capacity of 10,000 or greater.

(2) Represents festivals promoted by entities under license from SFX as well as entities in which SFX has an equity investment.

 



 

SFX Entertainment, Inc.

Live Event Metrics

 

2015 Completed Festivals

 

Initial Show
Date

 

Festival Name

 

City

 

Country

 

 

 

 

 

 

 

1/16/2015

 

The Day After Festival

 

Panama City

 

Panama

2/7/2015

 

A State of Trance - Australia

 

Sydney

 

Australia

2/8/2015

 

Hard Bass

 

Arnhem

 

Netherlands

2/21/2015

 

A State of Trance - Netherlands

 

Utrecht

 

Netherlands

2/21/2015

 

WinterWorld 2015 - First Kiss Frankfurt

 

Frankfurt

 

Germany

2/28/2015

 

Top 100 DJ- World Tour - Bulgaria

 

Sofia

 

Bulgaria

2/28/2015

 

Reverze

 

Antwerp

 

Belgium

3/14/2015

 

Pussy Lounge Winter Circus

 

Eindhoven

 

Netherlands

3/18/2015

 

Ultimate Music Experience

 

S. Padre Island

 

USA

3/21/2015

 

Knock Out!

 

Rotterdam

 

Netherlands

3/21/2015

 

Life in Color San Jose

 

San Jose

 

Costa Rica

3/28/2015

 

Life in Color Santiago

 

Santiago

 

Chile

4/4/2015

 

Qapital

 

Amsterdam

 

Netherlands

4/11/2015

 

A State of Trance - Argentina

 

Buenos Aires

 

Argentina

4/11/2015

 

Life in Color Houston

 

Houston

 

USA

4/18/2015

 

Something Wonderful

 

Dallas

 

USA

4/25/2015

 

Life in Color Austin

 

Austin

 

USA

4/27/2015

 

Kingsland - Amsterdam

 

Amsterdam

 

Netherlands

4/27/2015

 

Kingsland - Den Bosch

 

Den Bosch

 

Netherlands

4/27/2015

 

Kingsday festival

 

Eindhoven

 

Netherlands

4/30/2015

 

Mayday

 

Dortmund

 

Germany

5/1/2015

 

Tomorrowland Brazil

 

Sao Paolo

 

Brazil

5/6/2015

 

Electric Zoo Tokyo

 

Tokyo

 

Japan

5/8/2015

 

Life In Color Tacoma

 

Tacoma

 

USA

5/8/2015

 

Rock in Rio Vegas

 

Las Vegas

 

USA

5/9/2015

 

Top 100 DJ- World Tour - Turkey

 

Istanbul

 

Turkey

5/22/2015

 

Mysteryland USA

 

Bethel Woods

 

USA

5/23/2015

 

Sunset Music Festival

 

Tampa

 

USA

5/30/2015

 

The Flying Dutch - Amsterdam

 

Amsterdam

 

Netherlands

5/30/2015

 

The Flying Dutch - Rotterdam

 

Rotterdam

 

Netherlands

5/30/2015

 

The Flying Dutch - Eindhoven

 

Eindhoven

 

Netherlands

5/30/2015

 

Life in Color Puerto Rico

 

Puerto Rico

 

USA

6/6/2015

 

Amsterdam Open Air

 

Amsterdam

 

Netherlands

6/6/2015

 

Pussy Lounge @ the Park

 

Breda

 

Netherlands

6/12/2015

 

Bestival

 

Toronto

 

Canada

6/12/2015

 

Sensation Russia

 

St. Petersburg

 

Russia

6/12/2015

 

Spring Awakening

 

Chicago

 

USA

6/19/2015

 

Defqon1 Weekend Festival

 

Biddinghuizen

 

Netherlands

6/27/2015

 

Ruhr-in-Love

 

Oberhausen

 

Germany

6/27/2015

 

Life In Color New Jersey

 

East Rutherford

 

USA

6/27/2015

 

Awakenings Festival

 

Halfweg

 

Netherlands

7/4/2015

 

Life in Color Hidalgo

 

Hidalgo

 

USA

 



 

7/5/2015

 

Sensation Amsterdam

 

Amsterdam

 

Netherlands

7/11/2015

 

A Day at the Park

 

Amsterdam

 

Netherlands

7/11/2015

 

Mamby on the Beach Festival

 

Chicago

 

USA

7/11/2015

 

Corona Sunsets UK

 

Somerset

 

UK

7/18/2015

 

Buitenwesten Festival

 

Amsterdam

 

Netherlands

7/18/2015

 

Electronic Family

 

Amsterdam

 

Netherlands

7/18/2015

 

Life in Color Buffalo

 

Buffalo

 

USA

7/18/2015

 

Dominator Festival

 

Eindhoven

 

Netherlands

7/19/2015

 

Milkshake Festival

 

Amsterdam

 

Netherlands

7/25/2015

 

Tiktak Events

 

Amsterdam

 

Netherlands

7/25/2015

 

Welcome to the Future

 

Oostzaan

 

Netherlands

7/25/2015

 

Corona Sunsets Italy

 

Rome

 

Italy

7/31/2015

 

Nature One

 

Kastellaun

 

Germany

8/7/2015

 

The Qontinet

 

Wachtebeke

 

Belgium

 



 

SFX Entertainment, Inc.

Live Event Metrics

2015 On-Sale Festivals

 

2015 On-Sale Festivals

 

Initial Show
Date

 

Festival Name

 

City

 

Country

8/15/2015

 

Decibel Outdoor

 

Tilburg

 

Netherlands

8/15/2015

 

Summer Set

 

Somerset

 

USA

8/22/2015

 

Life in Color Seoul

 

Seoul

 

South Korea

8/29/2015

 

Mysteryland Netherlands

 

Hoofddorp

 

Netherlands

8/30/2015

 

Sun City Music Festival

 

El Paso

 

USA

9/4/2015

 

Electric Zoo New York

 

New York City

 

USA

9/5/2015

 

Life in Color Mexico City

 

Mexico City

 

Mexico

9/12/2015

 

Q-Base

 

Weeze

 

Germany

9/12/2015

 

Life in Color Windsor

 

Windsor

 

Canada

9/12/2015

 

Life in Color Washington D.C

 

Washington

 

USA

9/19/2015

 

Rock in Rio (Rio)

 

Rio

 

Brazil

9/19/2015

 

DefQon1 AUS

 

Sydney

 

Australia

9/25/2015

 

TomorrowWorld

 

Atlanta

 

USA

9/26/2015

 

One Tribe Festival

 

Los Angeles

 

USA

10/3/2015

 

Syndicate

 

Dortmund

 

Germany

10/3/2015

 

Xqlusive Holland XX

 

Amsterdam

 

Netherlands

10/10/2015

 

Pussy Lounge XXL

 

Rotterdam

 

Netherlands

10/10/2015

 

Sensation Japan

 

Chiba

 

Japan

10/16/2015

 

Amsterdam Music Festival

 

Amsterdam

 

Netherlands

10/25/2015

 

Unlocked Indoor Festival

 

Utrecht

 

Netherlands

10/30/2015

 

Sensation Dubai

 

Dubai

 

UAE

10/30/2015

 

Freaky Deaky

 

Chicago

 

USA

11/7/2015

 

Bassleader

 

Antwerp

 

Belgium

11/15/2015

 

XXXPerience

 

Itu

 

Brazil

11/29/2015

 

Stereosonic - Sydney

 

Sydney

 

Australia

11/29/2015

 

Stereosonic - Perth

 

Perth

 

Australia

12/5/2015

 

Stereosonic - Adelaide

 

Adelaide

 

Australia

12/5/2015

 

TOXICATOR

 

Mannheim

 

Germany

12/6/2015

 

Stereosonic - Melbourne

 

Melbourne

 

Australia

12/6/2015

 

Stereosonic - Brisbane

 

Brisbane

 

Australia

 



 

Balance Sheet and Liquidity

At June 30, 2015, SFX had $295.2 million principal amount outstanding of its 9.625% second lien senior secured notes due 2019 and cash and cash equivalents of $52.2 million. Included in cash and cash equivalents is $13.6 million of cash proceeds held on behalf of third party ticketing clients.

 

Definitions

The following definitions apply to these terms as used throughout this press release and the exhibits:

 

EBITDA — represents net income (loss) before other income (loss), interest expense, income taxes, depreciation and amortization, non-cash equity­based compensation expense, and non-operating items, including financing and other transaction costs.

 

Pro forma adjusted EBITDA — includes the EBITDA of SFX, plus EBITDA from acquisitions as if owned from the beginning of the period, cost savings, non-recurring items including financing and other transaction costs and severance, and the other items set forth in footnotes 3 and 4 of the GAAP to non-GAAP reconciliation table below.

 

Pro forma revenue — represents revenue of SFX and all acquisitions as if they were owned by SFX from the beginning of the period.

 

Non-GAAP Financial Measures

We prepare our financial statements in accordance with generally accepted accounting principles (“GAAP”) in the United States of America. Within this press release, we make reference to EBITDA, pro forma adjusted EBITDA, and pro forma revenue, which are non-GAAP financial measures. The Company includes these non-GAAP financial measures because management believes they are useful to investors in that they provide for greater transparency with respect to supplemental information used by management in its financial and operational decision making.

 

Management uses EBITDA to convey supplemental information to investors regarding the Company’s performance excluding the impact of certain non-cash charges, costs associated with our borrowing and other special items that can affect the comparability of results from quarter to quarter. In particular, EBITDA is a key measure used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short­ and long­term operational plans. Of note, the elimination of certain expenses in calculating EBITDA can provide a useful measure for period­to­period comparisons of our core business. In addition, the Company believes that pro forma adjusted EBITDA and pro forma revenue present important information to investors regarding the current business, prospects and financial condition of the Company that would not otherwise be available.

 

Accordingly, the Company believes the presentation of these non-GAAP financial measures, when used in conjunction with GAAP financial measures, is a useful financial analysis tool that can assist investors in assessing the Company’s operating performance and underlying prospects. This analysis should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. This analysis, as well as the other information in this press release, should be read in conjunction with the Company’s financial statements and footnotes contained in the documents that the Company files with the U.S. Securities and Exchange Commission. The non-GAAP financial measures used by the Company in this press release may be different from the methods used by other companies. For more information on the Non-GAAP financial measures, please see the Reconciliation of GAAP financial measures to Non-GAAP financial measures table in the press release.

 



 

About SFX Entertainment

SFX Entertainment, Inc. (NASDAQ: SFXE) is the largest global producer of live events and digital entertainment content focused exclusively on electronic music culture (EMC) and other world-class festivals. SFX’s mission is to provide electronic music fans with the best possible live experiences, music discovery, media and digital connectivity. SFX was borne out of the technology revolution and produces and promotes a growing portfolio of live events that includes leading brands such as Tomorrowland, TomorrowWorld, Mysteryland, Sensation, Stereosonic, Electric Zoo, Disco Donnie Presents, Life in Color, Rock in Rio, Nature One, Mayday, Decibel, Q-Dance, Awakenings, and React Presents, as well as the innovative ticketing services Flavorus and Paylogic.

 

SFX owns and operates Beatport, the trusted global home of electronic music where fans, DJs, and creators connect, discover, and participate in the evolution of dance music culture. Beatport offers a complete music experience for everyone, everywhere including streaming music, mobile apps and a host of ways for the EMC community to enjoy or download files, attend transformational festivals and events both in person and online, connect with like-minded fans and inspirational artists, and receive news, reviews, and unique insider access.

 

Additional Information and Where to Find It

The Company plans to file a proxy statement for the solicitation of votes of SFX stockholders to approve the merger. THE PROXY STATEMENT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE TRANSACTION.  STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY DECISION REGARDING VOTING ON THE TRANSACTION.  These documents will be made available to stockholders at no expense to them and will also be available for free at the SEC’s website at www.sec.gov.  Additional copies may be obtained for free by contacting SFX at 646 561 6400.

 

The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from stockholders in connection with the proposed transaction.  Information regarding the Company’s directors and executive officers is available in its Annual Report on Form 10-K, as amended, filed with the SEC.  Other information regarding potential participants in the proxy solicitation will be contained in the Company’s proxy statement filed in connection with the transaction.

 

Forward Looking Statements

This press release contains forward-looking statements regarding our business strategy, expected operational and financial results and plans, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: our ability to integrate the companies we have acquired; our belief that the EMC community will grow; our ability to increase the number of festivals and events we produce and their attendance and profitability; our ability to pay our debts and meet our liquidity needs; competition; our ability to manage growth and geographically-dispersed operations; and our ability to grow our online properties. We refer you to the documents we file from time to time with the U.S. Securities and Exchange Commission, specifically the section titled “Item 1A. Risk Factors” of our most recent Annual Report filed on Form 10-K and Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K, which contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements.   Factors or risks that could cause our actual results to differ materially from the results we anticipate also include: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (2) the inability to complete the proposed merger due to the failure to obtain stockholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger; (3) the failure to obtain the necessary financing

 



 

arrangements to be delivered pursuant to the merger agreement; (4) risks related to disruption of management’s attention from the Company’s ongoing business operations due to the transaction; and (5) the effect of the announcement of the proposed merger on the Company’s relationships with its customers, operating results and business generally. In addition, any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events, except as required by law.

 

Investor Relations Contacts:

Richard Rosenstein

Chief Financial Officer & Chief Administrative Officer

646 561 6400

 

Joseph Jaffoni

JCIR
212 835 8500

sfxe@jcir.com

 

Media Contact:

DKC Public Relations

Ed Tagliaferri 212 981 5182

edmund_tagliaferri@dkcnews.com

 



 

SFX Entertainment, Inc.

Summarized Statements of Operations

(unaudited, $ in thousands)

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

121,055

 

$

81,622

 

$

173,241

 

$

114,948

 

Direct costs

 

99,068

 

61,533

 

133,229

 

84,357

 

Gross Profit

 

21,987

 

20,089

 

40,012

 

30,591

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

40,264

 

41,931

 

80,009

 

78,547

 

Depreciation and amortization

 

9,608

 

8,359

 

17,692

 

15,800

 

Operating loss

 

(27,885

)

(30,201

)

(57,689

)

(63,756

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(8,827

)

(5,688

)

(16,297

)

(12,287

)

Other income/(expense), net

 

(5,566

)

10,684

 

(10,062

)

(7,864

)

Equity in loss of non-consolidated affiliates

 

(5,247

)

(1,463

)

(5,397

)

(998

)

Loss before income taxes

 

(47,525

)

(26,668

)

(89,445

)

(84,905

)

Income tax expense

 

(329

)

(8,552

)

(37

)

(6,290

)

Net loss

 

(47,854

)

(35,220

)

(89,482

)

(91,195

)

Less: Net income attributable to non-controlling interest

 

177

 

47

 

87

 

112

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to SFX Entertainment, Inc.

 

$

(48,031

)

$

(35,267

)

$

(89,569

)

$

(91,307

)

 

SFX Entertainment, Inc.

Summary Balance Sheet Data

(unaudited, $ in thousands)

 

 

 

June 30, 2015

 

December 31, 2014

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

52,224

 

$

63,270

 

Total assets

 

$

689,255

 

$

714,636

 

 

 

 

 

 

 

Long-term debt

 

295,190

 

295,320

 

Total liabilities

 

$

505,293

 

$

448,494

 

 

 

 

 

 

 

Redeemable common stock

 

27,247

 

27,247

 

Redeemable non-controlling interest

 

 

4,322

 

 

 

 

 

 

 

Stockholders’ equity

 

$

155,883

 

$

233,772

 

 



 

SFX Entertainment, Inc.

Reconciliation of GAAP financial measures to

Non-GAAP financial measures

(unaudited, $ in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue, as reported by the Company

 

$

121,055

 

$

81,622

 

$

173,241

 

$

114,948

 

 

 

 

 

 

 

 

 

 

 

Revenue of Acquisitions (1)

 

 

10,743

 

(1,477

)

22,950

 

 

 

 

 

 

 

 

 

 

 

Total - Pro Forma Revenue

 

$

121,055

 

$

92,365

 

$

171,764

 

$

137,898

 

 

 

 

 

 

 

 

 

 

 

Pro Forma Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(47,854

)

$

(35,220

)

$

(89,482

)

$

(91,195

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

8,827

 

5,688

 

16,297

 

12,287

 

Income tax expense

 

329

 

8,552

 

37

 

6,290

 

Depreciation and amortization

 

9,608

 

8,359

 

17,692

 

15,800

 

Other (income)/expense, net (2)

 

5,566

 

(10,684

)

10,062

 

7,864

 

Equity based compensation expense

 

7,206

 

9,627

 

15,839

 

19,712

 

 

 

 

 

 

 

 

 

 

 

EBITDA of the Company

 

(16,318

)

(13,678

)

(29,555

)

(29,242

)

 

 

 

 

 

 

 

 

 

 

EBITDA of Acquisitions (1)

 

 

2,919

 

 

4,617

 

 

 

 

 

 

 

 

 

 

 

Adj. to reflect proportionate EBITDA of equity investments

 

1,153

 

623

 

318

 

561

 

 

 

 

 

 

 

 

 

 

 

Transaction Costs, One-Time Fees and Disc. Ops. (3)

 

9,018

 

4,178

 

12,686

 

8,176

 

Cost Savings (4)

 

156

 

1,788

 

1,223

 

3,540

 

 

 

 

 

 

 

 

 

 

 

Total - Pro Forma Adjusted EBITDA

 

$

(5,991

)

$

(4,170

)

$

(15,328

)

$

(12,348

)

 


(1) Includes all companies acquired by SFX for the periods prior to SFX ownership. The figures are based on financial information provided by such companies acquired by SFX. Such companies were not under SFX control for 100% of the time periods presented.  Excludes revenue from divested operations.

 

(2) Other (income)/expense represents the extinguishment of debt, gain on a sale of assets, foreign currency gains and losses, and other miscellaneous non-recurring items.

 

(3) Includes non-recurring expenses and adjustments related to (i) transaction costs for the period, (ii) divested operations and (iii) SFX’s intention to terminate certain minority owned festivals in future periods.

 

(4) Reflects the impact of identified and implemented cost savings including head count reduction and duplicate audit fees.