RENTA MENSUAL
2.2. Topologías de redes LAN inalámbricas
2.2.1. Modo infraestructura
We started our business on July 7, 2011, and we did not have any significant operations in the year ended December 31, 2011 or in the three and six months ended June 30, 2012, other than corporate related costs and 11 days of ownership of our first acquisition, Disco. As such, we have not provided a comparison of our results of operations for the year ended December 31, 2012 to 2011 and for the three and six months ended June 30, 2013 to 2012 because such a comparison would not be meaningful.
Management’s discussion and analysis of financial condition and results of operations
Consolidated results of operations
Three months Six months ended ended June 30, June 30, 2013 2012 2013 2012
(in thousands) (in thousands)
Revenue Service revenue . . . $ 15,094 $ 378 $ 22,884 $ 378 Sale of products . . . 12,306 — 14,669 — Total Revenue . . . 27,400 378 37,553 378 Direct costs: Cost of services . . . (10,985) (365) (16,980) (365) Cost of goods sold . . . (8,163) — (9,769) —
Total Direct Costs. . . (19,148) (365) (26,749) (365) Gross Profit . . . 8,252 13 10,804 13 Selling, general and administrative . . . (24,128) (1,768) (38,374) (3,134) Depreciation and amortization . . . (4,419) (27) (7,284) (27) Operating loss . . . $(20,295) $(1,782) $(34,854) $(3,148)
For the three and six months ended June 30, 2012
Revenue
Revenue for the three and six months ended June 30, 2012 totaled $0.4 million and $0.4 million, respectively. This revenue was entirely related to service revenue earned from Disco’s 16 live events which took place during June 20 through June 30, 2012.
Direct costs
Direct costs for the three and six months ended June 30, 2012 totaled $0.4 million and $0.4 million, respectively. These costs were associated with service revenue earned from Disco’s 16 live events which took place during June 20 through June 30, 2012.
Selling, general and administrative expenses
Selling, general and administrative expenses for the three and six months ended June 30, 2012 totaled $1.8 million and $3.1 million, respectively. These costs are primarily attributable to legal, accounting and professional fees incurred in association with our acquisitions.
For the three months ended June 30, 2013
Revenue
Revenue for the three months ended June 30, 2013 totaled $27.4 million. This included $15.1 million of service revenue (55.1% of total revenue) from festivals and live events that we produced, promoted or managed.
Sales of products revenue for the three months ended June 30, 2013 totaled $12.3 million,
predominantly earned from the sale of professional quality audio files via Beatport (44.9% of total revenue).
Management’s discussion and analysis of financial condition and results of operations
Direct costs
For the three months ended June 30, 2013 direct costs associated with service revenue totaled $11.0 million (57.4% of total direct costs).
For the three months ended June 30, 2013 production costs totaled $8.2 million (42.6% of total direct costs). Sales of product costs are primarily attributable to Beatport’s royalty and other digital music sales related expenses. In addition, sales or product costs include the cost of merchandise sold at our live events.
Depreciation and amortization
Depreciation and amortization was associated with property, plant and equipment additions with depreciable lives ranging from three to seven years. Amortization expense represents the amortization of intangible assets from the date of acquisition. For the three months ended June 30, 2013,
depreciation and amortization totaled $4.4 million primarily associated with the same drivers as for the fiscal year, but with an additional expenses of approximately $0.7 million related to the
amortization of management agreements and $2.8 million in amortization related to the intangible assets of our recent acquisitions of Beatport and the ID&T JV.
Selling, general, and administrative expenses
Selling, general, and administrative expenses for the three months ended June 30, 2013 totaled
$24.1 million, of which $6.6 million included legal, accounting, and professional fees and $9.0 million of non-cash stock based compensation expenses.
Provision for income taxes
Provision for income taxes for the three months ended June 30, 2013 totaled $0.0 million.
For the six months ended June 30, 2013
Revenue
Revenue for the six months ended June 30, 2013 totaled $37.6 million. This included $22.9 million of service revenue (60.9% of total revenue) from festivals and live events that we produced, promoted or managed.
Sales of products revenue for the six months ended June 30, 2013 totaled $14.7 million,
predominantly earned from the sale of professional quality audio files via Beatport (39.1% of total revenue).
Direct costs
For the six months ended June 30, 2013 direct costs associated with service revenue totaled $17.0 million (63.5% of total direct costs).
For the six months ended June 30, 2013 production costs totaled $9.8 million (36.5% of total direct costs). Sales of product costs are primarily attributable to Beatport’s royalty and other digital music sales related expenses. In addition, sales or product costs include the cost of merchandise sold at our live events.
Depreciation and amortization
Depreciation and amortization was associated with property, plant and equipment additions with depreciable lives ranging from three to seven years. Amortization expense represents the amortization of intangible assets from the date of acquisition. For the six months ended June 30, 2013, depreciation and amortization totaled $7.3 million primarily associated with the same drivers as for the fiscal year, but with an additional expenses of approximately $1.4 million related to the amortization of
Management’s discussion and analysis of financial condition and results of operations
management agreements and $4.4 million in amortization related to the intangible assets of our recent acquisitions of Beatport and the ID&T JV.
Selling, general, and administrative expenses
Selling, general, and administrative expenses for the six months ended June 30, 2013 totaled $38.4 million, of which $10.8 million included legal, accounting, and professional fees and $14.0 million of non-cash stock based compensation expenses.
Provision for income taxes
Provision for income taxes for the six months ended June 30, 2013 totaled $0.6 million.
Year ended December 31, 2012
Our consolidated financial statements for the year ended December 31, 2012 include costs associated with our formation and startup costs, costs associated with identifying and evaluating our initial target acquisitions, and the results of operations for DDP beginning on June 20, 2012 and for LIC beginning on August 1, 2012, the day after their respective dates of acquisition.
Revenue
Revenue for the year ended December 31, 2012 totaled $24.8 million. This revenue was generated primarily from service revenue related to the festivals and events that were produced and promoted by two of our acquired entities, DDP and LIC, after we acquired them. For the year ended December 31, 2012, we produced and promoted a total of 353 events, including eight festivals of greater than 10,000 attendees. For the year ended December 31, 2012, we generated $24.5 million in service revenue (98.8% of total revenue) and $0.3 million from sale of products revenue (1.2% of total revenue).
Direct costs
For the year ended December 31, 2012 direct costs associated with service revenue totaled $22.7 million (98.7% of total direct 2012 costs).
Sales of product costs for the year ended December 31, 2012 related to the cost of merchandise sold at our live events totaled $0.3 million (1.3% of total direct costs).
Depreciation and amortization
Depreciation and amortization for the year ended December 31, 2012 totaled $1.0 million and was associated with property, plant and equipment additions with depreciable lives ranging from three to seven years. Amortization expense represents the amortization of intangible assets from the date of acquisition through December 31, 2012.
Selling, general, and administrative expenses
Selling, general, and administrative expenses for the year ended December 31, 2012 totaled
$17.0 million, of which $8.2 million included legal, accounting, and advisory fees incurred primarily in connection with our formation and the evaluation and negotiation of acquisitions. In addition, selling general and administrative expenses included $2.2 million of non-cash stock based compensation expense and $2.3 million of salary expense.
Provision for income taxes
Provision for income taxes for the year ended December 31, 2012 of $0.1 million resulted primarily from deferred taxes related to timing differences offset by a valuation allowance.
Management’s discussion and analysis of financial condition and results of operations
For the period from July 7, 2011 (inception) through December 31, 2011
General and administrative expenses
We incurred expenses of $0.1 million for the period from July 7, 2011 (Inception) through
December 31, 2011. These expenses were primarily legal expenses incurred in connection with our formation. We incurred no expenses for the year ended December 31, 2010 as we did not begin operations until July 2011.
Segment overview
Operating segments include components of the enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer. We have determined that we have two operating and reportable segments, which are Live Events, consisting of the production of our live events and includes revenue from ticket sales, concessions of food, beverages and merchandise, promoter and management fees, event specific sponsorships and advertising, and Digital, which is our 365-day per year engagement with our fans outside of live events and currently includes sales of digital music. Our segment reporting became applicable with our acquisition of Beatport on March 15, 2013, and accordingly, we do not present segment reporting for periods prior to 2013.
Corporate expenses, including stock based compensation, and all line items below operating income (loss) are managed on a consolidated basis. Additionally, we manage our assets and working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, our management to allocate resources or assess performance of the segments, and therefore, we have not disclosed total segment assets.
Live Events results of operations
Our Live Events segment operating results were as follows.
Three months Six months ended ended June 30, June 30, 2013 2012 2013 2012 (in thousands) (in thousands)
Revenue . . . $ 15,480 $ 378 $ 23,324 $ 378 Direct operating expenses . . . (11,134) (365) (17,138) (365) Gross Profit . . . 4,346 13 6,186 13 Selling, general and administrative . . . (2,299) (23) (3,964) (23) Depreciation and amortization . . . (2,569) (27) (5,111) (27) Operating loss . . . $ (522) $ (37) $ (2,889) $ (37)
Three months ended June 30, 2013
Revenue
Our Live Events segment generated revenue of $15.5 million for the three months ended June 30, 2013. This included $11.9 million, or 76.7%, from ticket sales and concessions fees of food and beverages, and $3.6 million, or 23.3%, from other sources, including promoter and management fees. For the three months ended June 30, 2013, we produced and promoted a total of 187 live events, including two festivals of greater than 10,000 attendees, attracting a total attendance of over 365,000 attendees. Our Live Events segment had a gross margin of 28.1% for the period.
Management’s discussion and analysis of financial condition and results of operations Direct costs
For the three months ended June 30. 2013, direct costs associated with live events that we produced, promoted or managed totaled $11.1 million (58.1% of total direct costs). These costs consisted primarily of $5.0 million in musician and DJ costs, $4.0 million in production costs, $1.1 million in event promotion costs and $1.0 million in other expenses associated with revenue earned from our live events.
Depreciation and amortization
Depreciation and amortization for the Live Events segment totaled $2.6 million for the three months ended June 30, 2013. Depreciation expense was associated with property, plant and equipment
additions with depreciable lives ranging from three to seven years. Amortization expense represents the amortization of intangible assets.
Selling, general and administrative expenses
Selling, general and administrative expenses for the three months ended June 30, 2013 totaled $2.3 million.
Six months ended June 30, 2013
Revenue
Our Live Events segment generated revenue of $23.3 million for the six months ended June 30, 2013. This included $18.0 million, or 77.0%, from ticket sales and concessions fees of food and beverages, and $5.3 million, or 23.0%, from other sources, including promoter and management fees.
For the six months ended June 30, 2013, we produced and promoted a total of 336 events, including four festivals of greater than 10,000 attendees, attracting a total attendance of over 600,000 attendees. Our Live Events segment had a gross margin of 26.5% for the period.
Direct costs
For the six months ended June 30, 2013, direct costs associated with live events that we produced, promoted or managed totaled $17.1 million (64.1% of total direct costs). These costs consisted primarily of $8.2 million in musician and DJ costs, $5.5 million in productions costs, $1.6 million in event promotion costs and $1.8 million in other expenses associated with revenue earned from our live events.
Depreciation and amortization
Depreciation and amortization for the Live Events segment totaled $5.1 million for the six months ended June 30, 2013. Depreciation expense was associated with property, plant and equipment
additions with depreciable lives ranging from three to seven years. Amortization expense represents the amortization of intangible assets.
Selling, general and administrative expenses
Selling, general and administrative expenses for the six months ended June 30, 2013 totaled $4.0 million.
Management’s discussion and analysis of financial condition and results of operations
Digital results of operations
Beatport is a principal online resource and destination for EMC DJs and enthusiasts, offering music for purchase in multiple downloadable formats (including uncompressed, high quality audio files) and providing unique music discovery tools for DJs and fans. We acquired Beatport on March 15, 2013 and therefore only 16 days of operations are represented in the financial results for the three months ended March 31, 2013.
Our Digital segment operating results were as follows.
Three months Six months ended ended June 30, June 30, 2013 2012 2013 2012 (in thousands) (in thousands)
Revenue . . . $11,920 $— $14,229 $— Direct operating expenses . . . (8,014) — (9,611) — Gross Profit . . . 3,906 — 4,618 — Selling, general and administrative . . . (3,401) — (3,890) — Depreciation and amortization . . . (1,839) — (2,155) — Operating loss . . . $ (1,334) $— $ (1,427) $—
Three months ended June 30, 2013
Revenue
Our Digital segment generated revenue of $11.9 million for the three months ended June 30, 2013 from the sale of digital music files. Our Digital segment had a gross margin of 32.8% for the period. Direct costs
For the three months ended June 30, 2013, direct costs associated with the Digital segment totaled $8.0 million (41.9% of total direct costs). These costs consisted of Beatport’s royalty and other digital music sales related expenses.
Depreciation and amortization
Depreciation and amortization for the Digital segment totaled $1.8 million for the three months ended June 30, 2013. Depreciation expense was associated with property, plant and equipment additions with depreciable lives ranging from three to seven years. Amortization expense represents the amortization of intangible assets.
Selling, general and administrative expenses
Selling, general and administrative expenses for the three months ended June 30, 2013 totaled $3.4 million.
Six months ended June 30, 2013
Revenue
Our Digital segment generated revenue of $14.2 million for the six months ended June 30, 2013 from the sale of digital music files. Our Digital segment had a gross margin of 32.5% for the period.
Management’s discussion and analysis of financial condition and results of operations
Direct costs
For the six months ended June 30, 2013, direct costs associated with the Digital segment totaled $9.6 million (35.9% of total direct costs). These costs consisted of Beatport’s royalty and other digital music sales related expenses.
Depreciation and amortization
Depreciation and amortization for the Digital segment totaled $2.2 million for the six months ended June 30, 2013. Depreciation expense was associated with property, plant and equipment additions with depreciable lives ranging from three to seven years. Amortization expense represents the amortization of intangible assets.
Selling, general and administrative expenses
Selling, general and administrative expenses for the six months ended June 30, 2013 totaled $3.9 million.
Management’s discussion and analysis of financial condition and results of operations
Reconciliation of segment results
Live Events Digital Corporate Consolidated (in thousands)
Three months ended June 30, 2013
Revenue . . . $ 15,480 $11,920 $ — $ 27,400 Direct costs . . . (11,134) (8,014) — (19,148) Gross profit . . . 4,346 3,906 — 8,252 Selling, general and administrative . . . (2,299) (3,401) (18,428) (24,128)
Depreciation and amortization . . . (2,569) (1,839) (11) (4,419)
Operating loss . . . $ (522) $ (1,334) $(18,439) $(20,295)
Three months ended June 30, 2012
Revenue . . . $ 378 $ — $ — $ 378
Direct costs . . . (365) — — (365)
Gross profit . . . 13 — — 13
Selling, general and administrative . . . (23) — (1,745) (1,768)
Depreciation and amortization . . . (27) — — (27)
Operating loss . . . $ (37) $ — $ (1,745) $ (1,782)
Six months ended June 30, 2013
Revenue . . . $ 23,324 $14,229 $ — $ 37,553 Direct costs . . . (17,138) (9,611) — (26,749) Gross profit . . . 6,186 4,618 — 10,804 Selling, general and administrative . . . (3,964) (3,890) (30,520) (38,374)
Depreciation and amortization . . . (5,111) (2,155) (18) (7,284)
Operating loss . . . $ (2,889) $ (1,427) $(30,538) $(34,854)
Six months ended June 30, 2012
Revenue . . . $ 378 $ — $ — $ 378
Direct costs . . . (365) — — (365)
Gross profit . . . 13 — — 13
Selling, general and administrative . . . (23) — (3,111) (3,134)
Depreciation and amortization . . . (27) — — (27)
Operating loss . . . $ (37) $ — $ (3,111) $ (3,148)
FINANCIAL CONDITION—SUCCESSOR