-- 4Q 2006 revenue of $655 million, up 6 percent year-over-year
-- 4Q 2006 diluted EPS (Adjusted) of $0.43, doubling year-over
year
-- 4Q 2006 diluted EPS (GAAP) of $0.28, tripling year-over-year
-- Full-Year 2006 revenue of $2.8 billion, up 12 percent
year-over-year
-- Full-Year adjusted EBITDA of $503 million; GAAP net income of
$156 million
-- Full-Year 2006 diluted EPS (Adjusted) of $1.77; diluted EPS
(GAAP) of $1.18
-- Travelocity revenue tops $1 billion, up 31 percent
year-over-year
Note: Analyst call today at 9:00 a.m. CST, at
www.sabre-holdings.com/investor/index.html
SOUTHLAKE, Texas–(BUSINESS WIRE)–Feb. 1, 2007–Sabre Holdings Corporation (NYSE: TSG) today reported strong financial results for the fourth quarter and full year of 2006.
Revenue for the fourth quarter was $655 million, up 6 percent year-over-year.
The company reported fourth quarter 2006 diluted earnings per share of $0.43 on an adjusted basis, compared to $0.22 per share in the year-ago quarter. On a GAAP basis, diluted earnings per share were $0.28 compared to $0.09 per share in the year-ago quarter.
Revenue for full-year 2006 was $2.8 billion, an increase of 12 percent year-over-year. The company reported 2006 diluted earnings per share of $1.77 on an adjusted basis, compared to $1.50 in 2005. On a GAAP basis, diluted earnings per share were $1.18 compared to $1.32 per share a year ago.
“We successfully executed on the financial and strategic plans we laid out at the beginning of 2006,” said Sam Gilliland, Chairman and CEO, Sabre Holdings. “We look forward to this next phase of Sabre’s future as we remain on track to become a privately-held company.”
SABRE HOLDINGS 4Q 2006 FINANCIAL HIGHLIGHTS
(Note: See attached schedules for full financial details, reconciliations of non-GAAP financial measures, and a description of adjusting items.)
Revenue: Fourth quarter revenue was $655 million, an increase of 6 percent from$ 620 million in the year-ago quarter.
Operating income: On an adjusted basis, operating income for the fourth quarter was $83 million, compared to $25 million in the year-ago quarter. Operating income on a GAAP basis was $49 million, compared to $7 million in the fourth quarter of 2005.
Net earnings: For the fourth quarter, net earnings, on an adjusted basis, were $58 million, or $0.43 per share, compared to $28 million, or $0.22 per share in the fourth quarter of 2005. On a GAAP basis, fourth quarter net earnings were $38 million, or $0.28 per share on a diluted basis, compared to $12 million, or $0.09 per share on a diluted basis in the year-ago quarter.
Adjusted EBITDA: For the fourth quarter, adjusted earnings before interest, taxes, depreciation, amortization and certain non-recurring items were $110 million, growth of 142 percent year-over-year. Adjusted EBITDA margin was 17 percent.
SABRE HOLDINGS FULL-YEAR 2006 FINANCIAL HIGHLIGHTS
Revenue: For 2006, revenue was $2.8 billion, a year-over-year increase of 12 percent from $2.5 billion.
Operating income: On an adjusted basis, operating income for the year was $398 million, an increase of 30 percent from $306 million a year ago. Operating income on a GAAP basis was $285 million, an increase of 9 percent from $261 million over the same period last year.
Net earnings: Net earnings, on an adjusted basis, were $233 million, or $1.77 per share, compared to $196 million, or $1.50 per share in 2005. On a GAAP basis, 2006 net earnings were $156 million, or $1.18 per share on a diluted basis, compared to $172 million, or $1.32 per share on a diluted basis a year ago.
Adjusted EBITDA: For 2006, adjusted earnings before interest, taxes, depreciation, amortization and certain non-recurring items were $503 million, growth of 28 percent year-over-year. Adjusted EBITDA margin was 18 percent.
Cash Flow: Free Cash Flow for the year was $270 million compared to $134 million last year. Cash flow from operations was $379 million compared to $226 million in the prior year.
Cash/Debt: The company balance sheet as of Dec. 31, 2006 reflected cash and marketable securities of $512 million. Total debt at the end of the year was $1.1 billion, which included notes and bonds payable of $975 million and an $85 million capital lease obligation.
SABRE HOLDINGS BUSINESS REVIEW
TRAVELOCITY
For 2006, Travelocity global gross travel booked was $10.1 billion, an increase of 35 percent year-over-year. Total global revenue for the year was $1.1 billion, year-over-year growth of 31 percent. Travelocity had operating income on an adjusted basis of $73 million with an operating margin of 7 percent. On a GAAP basis, operating income was $5 million with operating margin less than 1 percent. Adjusted EBITDA for the year reached $109 million, resulting in a 10 percent adjusted EBITDA margin.
Travelocity global metrics for 2006 (year-over-year) include the following:
-- Total air transaction revenue grew 12 percent
-- Total non-air transaction revenue grew 39 percent
-- Total packaging revenue grew 16 percent
-- Packaging revenue as a percent of total transaction revenue
was 23 percent
-- Hotel room nights sold across the Travelocity network were
16.6 million, growth of 30 percent
SABRE TRAVEL NETWORK
For 2006, revenue from Sabre Travel Network was $1.63 billion, an increase of 1 percent from $1.61 billion a year ago. Global transactions were 357 million, growth of 4 percent year-over-year. Operating income for Sabre Travel Network on an adjusted basis was $283 million with an operating margin of 17 percent. On a GAAP basis, operating income was $249 million with an operating margin of 15 percent. Adjusted EBITDA was $331 million which resulted in a 20 percent adjusted EBITDA margin.
SABRE AIRLINE SOLUTIONS
For 2006, revenue from Sabre Airline Solutions was $283 million, an increase of 8 percent from $261 million a year ago. Operating income for the Sabre Airline Solutions unit on an adjusted basis was $44 million with an operating margin of 16 percent. On a GAAP basis, operating income was $38 million with an operating margin of 13 percent. Adjusted EBITDA was $64 million, which resulted in a 23 percent adjusted EBITDA margin.
About Sabre Holdings
Sabre Holdings connects people with the world’s greatest travel possibilities by retailing travel products and providing distribution and technology solutions for the travel industry. Sabre Holdings supports travelers, travel agents, corporations, government agencies and travel suppliers through its companies: Travelocity, Sabre Travel Network and Sabre Airline Solutions. Headquartered in Southlake, Texas, the company has approximately 9,000 employees in 45 countries. Full-Year 2006 revenues totaled $2.8 billion. Sabre Holdings, an S&P 500 company, is traded on the NYSE under the symbol TSG. More information is available at http://www.sabre-holdings.com.
About the Merger
In connection with the proposed merger of Sabre Holdings Corporation (“Sabre Holdings”) with affiliates of Texas Pacific Group and Silver Lake Partners, Sabre Holdings filed a preliminary proxy statement with the Securities and Exchange Commission on January 16, 2007. INVESTORS AND SECURITY HOLDERS ARE STRONGLY ADVISED TO READ THE PRELIMINARY PROXY STATEMENT, AND THE DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE, BECAUSE THE PRELIMINARY PROXY STATEMENT CONTAINS, AND THE DEFINITIVE PROXY STATEMENT WILL CONTAIN, IMPORTANT INFORMATION. Investors and security holders may obtain a free copy of the preliminary proxy statement and the definitive proxy statement (when available) and other documents filed by Sabre Holdings at the Securities and Exchange Commission’s Web site at http://www.sec.gov. The preliminary proxy statement and the definitive proxy statement (when available) and such other documents may also be obtained for free by directing such requests to the Sabre Holdings investor relations department at 866-722-7347, or on the company’s website at www.sabre-holdings.com/investor.
Sabre Holdings and its directors, executive officers and certain other members of its management and employees may be deemed to be participants in the solicitation of proxies from its stockholders in connection with the proposed merger. Information regarding the interests of such directors and executive officers is included in the preliminary proxy statement, and information concerning all of Sabre Holdings participants in the solicitation will be included in the definitive proxy statement relating to the proposed merger when it becomes available. Each of these documents is, or will be, available free of charge at the Securities and Exchange Commission’s Web site at www.sec.gov and from the Sabre Holdings investor relations department at 866-722-7347, or on the company’s website at www.sabre-holdings.com/investor.
Statements in this release or in the preliminary proxy statement which are not purely historical facts or which necessarily depend upon future events, including statements about the completion or timing of the proposed merger or the operation of Sabre Holdings after the merger, or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Sabre Holdings on the date such report was submitted. Sabre Holdings undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to: the merger not being consummated because Sabre Holdings stockholders do not approve the merger or either party fails to meet closing conditions described in the merger agreement, or the merger being delayed or not being consummated because the parties are unable to meet specific conditions required to obtain regulatory approvals. Sabre Holdings may not succeed in addressing these and other risks. Further information regarding factors that could affect Sabre Holdings financial and other results can be found in the risk factors section of Sabre Holdings most recent filing on Form 10-K with the Securities and Exchange Commission.
Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Unadjusted
(Unaudited - In millions except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2006 2005 Change* 2006 2005 Change*
------- ------- ------- --------- --------- --------
Revenues
Sabre Travel
Network 371.2 364.1 2.0% 1,634.6 1,614.2 1.3%
Travelocity 247.3 234.9 5.3% 1,085.2 831.3 30.5%
Sabre Airline
Solutions 78.0 64.1 21.8% 282.5 260.8 8.3%
Elimination of
intersegment
revenues (41.6) (42.6) (2.5%) (178.5) (185.1) (3.5%)
------- ------- --------- ---------
Total revenues 654.9 620.4 5.6% 2,823.8 2,521.3 12.0%
Operating
expenses 605.6 613.4 (1.3%) 2,538.6 2,260.4 12.3%
------- ------- --------- ---------
Operating income 49.3 7.0 603.6% 285.1 260.9 9.3%
Other income
(expense)
Interest income
(expense) net (15.4) (14.6) 5.1% (62.7) (30.7) 104.6%
Other, net 1.8 (6.7) NM (5.9) 6.1 (196.2%)
Minority interest 0.8 4.6 (82.1%) 3.7 8.4 (55.3%)
------- ------- --------- ---------
Income before
provision for
income taxes 36.5 (9.8) NM 220.3 244.7 (10.0%)
Provision for
income taxes (1.0) (21.8) (95.5%) 64.6 72.6 (10.9%)
------- ------- --------- ---------
Net earnings 37.5 12.1 210.3% 155.6 172.2 (9.6%)
======= ======= ========= =========
Operating margin 7.5% 1.1% 10.1% 10.3%
Earnings per
share- basic $ 0.29 $ 0.09 $ 1.19 $ 1.33
Earnings per
share- diluted $ 0.28 $ 0.09 $ 1.18 $ 1.32
Weighted average
shares -basic 130.6 129.5 130.3 129.6
Weighted average
shares -diluted 134.1 130.5 131.9 130.3
* Percents shown reflect changes in unrounded figures and may not
agree to the percent changes in figures after rounding.
Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Adjusted
(Unaudited - In millions except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
2006 2005 Change* 2006 2005 Change*
------- ------- ------- --------- --------- -------
Revenues
Sabre Travel
Network 371.2 364.1 2.0% 1,634.6 1,614.2 1.3%
Travelocity 247.3 234.9 5.3% 1,085.2 831.3 30.5%
Sabre Airline
Solutions 78.0 64.1 21.8% 282.5 260.8 8.3%
Elimination of
intersegment
revenues (41.6) (42.6) (2.5%) (178.5) (185.1) (3.5%)
------- ------- --------- ---------
Total revenues 654.9 620.4 5.6% 2,823.8 2,521.3 12.0%
Operating expenses 571.8 595.8 (4.0%) 2,425.6 2,215.1 9.5%
------- ------- --------- ---------
Operating income 83.0 24.6 237.2% 398.2 306.2 30.1%
Other income
(expense)
Interest income
(expense) net (15.4) (14.6) 5.1% (62.7) (30.7) 104.6%
Other, net 0.5 1.7 (67.7%) 2.0 1.4 43.7%
Minority interest 0.1 3.9 (96.9%) 1.0 5.1 (81.3%)
------- ------- --------- ---------
Income before
provision for
income taxes 68.3 15.5 340.0% 338.5 282.0 20.0%
Provision for
income taxes 10.5 (12.7) NM 105.6 86.2 22.4%
------- ------- --------- ---------
Net earnings 57.8 28.2 104.6% 232.9 195.8 18.9%
======= ======= ========= =========
Operating margin 12.7% 4.0% 14.1% 12.1%
Earnings per
share- basic $ 0.44 $ 0.22 $ 1.79 $ 1.51
Earnings per
share- diluted $ 0.43 $ 0.22 $ 1.77 $ 1.50
Weighted average
shares -basic 130.6 129.5 130.3 129.6
Weighted average
shares -diluted 134.1 130.5 131.9 130.3
* Percents shown reflect changes in unrounded figures and may not
agree to the percent changes in figures after rounding.
Sabre Holdings Corporation
Reconciliation of Unadjusted Results to Adjusted Results
Three Months and Twelve Months ended December 31, 2006
(Unaudited, in millions)
Three months ended Twelve months ended
December 31, December 31,
2006 2005 Change* 2006 2005 Change*
-------- --------------- -------- -------- -------
Unadjusted
operating income $ 49.3 $ 7.0 603.6% $ 285.1 $ 260.9 9.3%
Adjusting items:
Travelocity
intangible
amortization and
stock
compensation 17.3 14.0 23.5% 68.4 31.2 119.6%
Travel Network
intangible
amortization and
stock
compensation 7.4 3.0 143.3% 30.3 15.3 97.5%
Airline Solutions
intangible
amortization and
stock
compensation 1.4 0.6 156.9% 6.7 2.2 199.1%
Impairment related
to Vistrio
business 3.9 - NM 3.9 - NM
Deal costs related
to proposed
acquisition of
Sabre Holdings 3.7 - NM 3.7 - NM
Reversal of
accrual related
to sale of IT
business in 2001 - - NM - (3.4) NM
-------- -------- -------- --------
Adjusted operating
income $ 83.0 $ 24.6 237.2% $ 398.2 $ 306.2 30.1%
Unadjusted other
income (loss) and
minority interest ($12.7) ($16.8)(24.0%) ($64.9) ($16.2) 301.6%
Adjusting items:
Travelocity
(gain)/loss on
sale of European
businesses (1.3) (6.6)(80.6%) 9.8 (6.6) NM
Forfeitures
related to
adoption of FAS
123R - - - (1.8) - NM
Currency hedge
associated with
lastminute.com
acquisition - - - - 8.2 NM
Realized gain on
sale of Karavel
investment - - - - (21.3) NM
Supplier
settlement - 15.0 NM - 15.0 NM
Impact of
adjusting items
on minority
interests (0.7) (0.7) 0.0% (2.8) (3.3) (15.0%)
Adjusted income
before provision
for income taxes $ 68.3 $ 15.5 340.0% $ 338.5 $ 282.0 20.0%
Unadjusted
provision for
income taxes ($1.0) ($21.8)(95.5%) $ 64.6 $ 72.6 (10.9%)
Adjustments to
taxes for
adjusting items 11.5 9.1 25.8% 41.0 13.7 199.6%
-------- -------- -------- --------
Adjusted provision
for income taxes $ 10.5 ($12.7) NM $ 105.6 $ 86.2 22.4%
Adjusted net
earnings $ 57.8 $ 28.2 104.6% $ 232.9 $ 195.8 18.9%
======== ======== ======== ========
* Percents shown reflect changes in unrounded figures and may not
agree to the percent changes in figures after rounding.
Travelocity Fourth Quarter and
Full Year 2006
Geographic Results
Note: North America includes Zuji results in Asia; Europe includes
lastminute.com as of 20 July 2005
------------------------------------------ ------- ------- --------
($ millions) 4Q06 4Q05 % Change
------------------------------------------ ------- ------- ----------
Gross Travel Booked
North America $1,711 $1,519 13%
Europe $547 $491 11%
Total Gross Travel Booked $2,258 $2,010 12%
Revenue
North America $164 $156 5%
Europe $83 $79 5%
Total Revenue $247 $235 5%
Operating Income (Adjusted)
North America $19 $9 120%
North America Operating Margin (Adjusted) 12% 6%
Europe ($6) ($21) (73%)
Europe Operating Margin (Adjusted) (7%) (27%)
Total Operating Income (Adjusted) $13 ($13) NM
Total Travelocity Operating Margin
(Adjusted) 5% (5%)
Operating Income (GAAP)
North America $14 $7 120%
North America Operating Margin (GAAP) 9% 4%
Europe ($19) ($33) (44%)
Europe Operating Margin (GAAP) (22%) (42%)
Total Operating Income (GAAP) ($4) ($27) 85%
Total Travelocity Operating Margin (GAAP) (2%) (11%)
Adjusted EBITDA
North America $25 $13 91%
North America EBITDA Margin 15% 8%
Europe ($2) ($19) (90%)
Europe EBITDA Margin (2%) (24%)
Total Adjusted EBITDA $23 ($6) NM
Total Travelocity EBITDA Margin 9% (3%)
Travelocity Fourth Quarter and
Full Year 2006
Geographic Results
Note: North America includes Zuji results in Asia; Europe includes
lastminute.com as of 20 July 2005
----------------------------------------- -------- ------- ---------
($ millions) FY 06 FY 05 % Change
----------------------------------------- -------- ------- ---------
Gross Travel Booked
North America $7,433 $6,279 18%
Europe $2,644 $1,202 120%
Total Gross Travel Booked $10,077 $7,480 35%
Revenue
North America $693 $634 9%
Europe $393 $197 99%
Total Revenue $1,085 $831 31%
Operating Income (Adjusted)
North America $82 $53 54%
North America Operating Margin (Adjusted) 12% 8%
Europe ($9) ($32) (73%)
Europe Operating Margin (Adjusted) (2%) (16%)
Total Operating Income (Adjusted) $73 $21 250%
Total Travelocity Operating Margin
(Adjusted) 7% 3%
Operating Income (GAAP)
North America $64 $44 45%
North America Operating Margin (GAAP) 9% 7%
Europe ($59) ($54) 9%
Europe Operating Margin (GAAP) (15%) (28%)
Total Operating Income (GAAP) $5 ($10) NM
Total Travelocity Operating Margin (GAAP) 0% (1%)
Adjusted EBITDA
North America $103 $70 48%
North America EBITDA Margin 15% 11%
Europe $7 ($27) NM
Europe EBITDA Margin 2% (13%)
Total Adjusted EBITDA $109 $43 154%
Total Travelocity EBITDA Margin 10% 5%
Sabre Holdings Corporation
Sabre Travel Network
Transactions Summary
(millions)
----------------------------- ----- ---------------- ------ ---------
4Q06 4Q05 % Change YTD06 YTD05 % Change
----------------------------- ----- ---------------- ------ ---------
Transactions 85.6 75.1 13.9% 357.3 342.7 4.3%
Geographic
US 55.4 46.6 18.9% 225.4 214.9 4.9%
International 30.2 28.5 5.7% 131.9 127.8 3.2%
----- ----- ------ ------
85.6 75.1 13.9% 357.3 342.7 4.3%
Channel
Traditional Agency 66.5 64.6 2.9% 300.3 297.2 1.1%
Consumer on-line 19.1 10.5 81.3% 57.0 45.5 25.3%
----- ----- ------ ------
85.6 75.1 13.9% 357.3 342.7 4.3%
Air/Non-Air
Air 73.5 63.5 15.7% 307.6 292.9 5.0%
Non-Air 12.1 11.7 3.9% 49.7 49.7 (0.1%)
----- ----- ------ ------
85.6 75.1 13.9% 357.3 342.7 4.3%
Note: As of Q1 2005, we are counting as a transaction, any travel
reservation that generates a fee paid directly to us including, but
not limited to traditional booking fees paid by suppliers, non-
traditional transaction fees paid by suppliers, transaction fees
paid by travel agencies, and transaction fees paid by corporations
related to our online booking tool.
Updated historical quarterly transaction information available at
http://www.sabre-holdings.com/investor/highlights/statistics/
Sabre Holdings Corporation
Non-GAAP Financials Reconciliations
($ in millions, except per share data)
Operating Income Reconciliations
Sabre Holdings
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income $ 49.3 $ 7.0 $ 285.1 $ 260.9
GAAP Operating Margin 7.5% 1.1% 10.1% 10.3%
Add: amortization of
intangibles 17.2 17.4 71.5 47.3
Add: stock compensation - stock
options 3.7 0.2 16.4 1.4
Add: stock compensation -
restricted stock and
performance shares 5.3 - 17.6 -
Add: impairment related to
Vistrio business 3.9 - 3.9 -
Add: deal costs related to
proposed acquisition of Sabre
Holdings 3.7 - 3.7 -
Less: reversal of accrual
related to sale of IT business
in 2001 - (3.4)
-------- -------- -------- --------
Adjusted Operating Income $ 83.0 $ 24.6 $ 398.2 $ 306.2
Adjusted Operating Margin 12.7% 4.0% 14.1% 12.1%
Sabre Travel Network
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income $ 45.0 $ 26.6 $ 248.7 $ 230.5
GAAP Operating Margin 12.1% 7.3% 15.2% 14.3%
Add: amortization of
intangibles 3.3 3.0 13.3 15.3
Add: stock compensation 4.1 - 17.0 -
Add: impairment related to
Vistrio business 3.9 - 3.9 -
-------- -------- -------- --------
Adjusted Operating Income $ 56.3 $ 29.6 $ 282.9 $ 245.8
Adjusted Operating Margin 15.2% 8.1% 17.3% 15.2%
Travelocity
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income ($4.1) ($26.8) $ 4.8 ($10.3)
GAAP Operating Margin (1.7%) (11.4%) 0.4% (1.2%)
Add: amortization of
intangibles 13.7 13.8 56.5 29.7
Add: stock compensation 3.7 0.2 12.0 1.4
-------- -------- -------- --------
Adjusted Operating Income $ 13.2 ($12.8) $ 73.2 $ 20.9
Adjusted Operating Margin 5.4% (5.4%) 6.7% 2.5%
Travelocity Europe
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income ($18.6) ($33.4) ($59.3) ($54.4)
GAAP Operating Margin (22.4%) (42.5%) (15.1%) (27.6%)
Add: amortization of
intangibles 11.8 12.0 48.9 22.2
Add: stock compensation 1.0 - 1.9 -
-------- -------- -------- --------
Adjusted Operating Income ($5.7) ($21.4) ($8.6) ($32.3)
Adjusted Operating Margin (6.9%) (27.2%) (2.2%) (16.4%)
Travelocity Non-Europe
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income $ 14.5 $ 6.6 $ 64.1 $ 44.2
GAAP Operating Margin 8.8% 4.2% 9.3% 7.0%
Add: amortization of
intangibles 1.8 1.8 7.6 7.6
Add: stock compensation 2.6 0.2 10.1 1.4
-------- -------- -------- --------
Adjusted Operating Income $ 18.9 $ 8.6 $ 81.8 $ 53.2
Adjusted Operating Margin 11.5% 5.5% 11.8% 8.4%
Sabre Airline Solutions
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income $ 12.8 $ 8.2 $ 37.6 $ 38.9
GAAP Operating Margin 16.4% 12.8% 13.3% 14.9%
Add: amortization of
intangibles 0.3 0.6 1.7 2.2
Add: stock compensation 1.2 - 5.0 -
-------- -------- -------- --------
Adjusted Operating Income $ 14.2 $ 8.7 $ 44.3 $ 41.2
Adjusted Operating Margin 18.2% 13.6% 15.7% 15.8%
Note: Beginning in 2006, definitions of certain non-GAAP financial
measures including Adjusted Operating Income, Adjusted Net Earnings
and Adjusted EBITDA have been revised to adjust for all stock
compensation expenses recognized in accordance with FAS 123R. As a
result, 2006 non-GAAP financial measures may not be directly
comparable to similarly titled financial measures for prior years.
Definitions of 2006 and 2005 non-GAAP financial measures are
available at http://www.sabreholdings.com/investor
Net Earnings Reconciliation
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Net Earnings $ 37.5 $ 12.1 $ 155.6 $ 172.2
Adjustments, net of taxes:
Add: amortization of intangibles
and stock compensation 16.3 10.9 65.8 29.3
Add: Travelocity (gain)/loss on
sale of businesses (0.8) - 7.9 -
Add: impairment related to
Vistrio business 2.5 - 2.5 -
Add: deal costs related to
proposed acquisition of Sabre
Holdings 2.3 - 2.3 -
Less: forfeiture on adoption of
FAS 123R - - (1.2) -
Less: realized gain on sale of
investment in Karavel - - - (13.9)
Add: supplier settlement - 9.4 - 9.4
Add: currency hedge associated
with lastminute.com acquisition - - - 5.2
Less: realized gain on sale of
European asset - (4.2) - (4.2)
Less: Reversal of accrual
related to sale of IT business
in 2001 - - - (2.2)
-------- -------- -------- --------
Adjusted Net Earnings $ 57.8 $ 28.2 $ 232.9 $ 195.8
GAAP EPS $ 0.28 $ 0.09 $ 1.18 $ 1.32
Adjusted EPS $ 0.43 $ 0.22 $ 1.77 $ 1.50
Diluted share count 130.5 130.3
134.1 million 131.9 million
Adjusted EBITDA* Reconciliation
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Net Earnings $ 37.5 $ 12.1 $ 155.6 $ 172.2
Add: taxes (1.0) (21.8) 64.6 72.6
Add: interest expense (income)
net 15.4 14.6 62.7 30.7
Add: other, net (1.8) 6.7 5.9 (6.1)
Less: minority interest (0.8) (4.6) (3.7) (8.4)
Add: depreciation &
amortization 44.4 38.5 175.9 130.6
Add: stock compensation 8.9 - 33.9 -
Add: impairment related to
Vistrio business 3.9 - 3.9 -
Add: deal costs related to
proposed acquisition of Sabre
Holdings 3.7 - 3.7 -
-------- -------- -------- --------
Adjusted EBITDA* $ 110.3 $ 45.5 $ 502.6 $ 391.5
Adjusted EBITDA Margin 16.8% 7.3% 17.8% 15.5%
Sabre Travel Network
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income $ 45.0 $ 26.6 $ 248.7 $ 230.5
GAAP Operating Margin 12.1% 7.3% 15.2% 14.3%
Add: depreciation &
amortization 15.6 12.7 61.8 55.9
Add: stock compensation 4.1 - 17.0 -
Add: impairment related to
Vistrio business 3.9 3.9 -
-------- -------- -------- --------
Adjusted EBITDA* $ 68.6 $ 39.3 $ 331.4 $ 286.3
Adjusted EBITDA Margin 18.5% 10.8% 20.3% 17.7%
Travelocity
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income ($4.1) ($26.8) $ 4.8 ($10.3)
GAAP Operating Margin (1.7%) (11.4%) 0.4% (1.2%)
Add: depreciation &
amortization 23.5 20.7 92.7 53.3
Add: stock compensation 3.7 - 12.0 -
-------- -------- -------- --------
Adjusted EBITDA* $ 23.1 ($6.1) $ 109.5 $ 43.1
Adjusted EBITDA Margin 9.3% (2.6%) 10.1% 5.2%
Travelocity Europe
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income ($18.6) ($33.4) ($59.3) ($54.4)
GAAP Operating Margin (22.4%) (42.5%) (15.1%) (27.6%)
Add: depreciation &
amortization 15.7 14.3 64.1 27.9
Add: stock compensation 1.0 - 1.9 -
-------- -------- -------- --------
Adjusted EBITDA* ($1.9) ($19.2) $ 6.6 ($26.5)
Adjusted EBITDA Margin (2.2%) (24.4%) 1.7% (13.5%)
Travelocity Non-Europe
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income $ 14.5 $ 6.6 $ 64.1 $ 44.2
GAAP Operating Margin 8.8% 4.2% 9.3% 7.0%
Add: depreciation &
amortization $ 7.9 $ 6.5 $ 28.7 $ 25.4
Add: stock compensation $ 2.6 - $ 10.1 -
-------- -------- -------- --------
Adjusted EBITDA* $ 25.0 $ 13.1 $ 102.9 $ 69.6
Adjusted EBITDA Margin 15.2% 8.4% 14.8% 11.0%
* Definitions for two Non-GAAP financial measures, Adjusted EBITDA
and segment adjusted EBITDA, have been updated this quarter to
include non-recurring items detailed in the related reconciliation.
We believe that these updated definitions better reflect the on-
going financial performance of the company. This update does not
result in any changes to these financial measures as reported for
prior quarters in 2006.
Sabre Airline Solutions
4Q 2006 4Q 2005 FY 2006 FY 2005
-------- -------- ------------------
GAAP Operating Income $ 12.8 $ 8.2 $ 37.6 $ 38.9
GAAP Operating Margin 16.4% 12.8% 13.3% 14.9%
Add: depreciation &
amortization 5.3 5.1 21.4 21.4
Add: stock compensation 1.2 - 5.0 -
-------- -------- -------- --------
Adjusted EBITDA* $ 19.2 $ 13.3 $ 63.9 $ 60.4
Adjusted EBITDA Margin 24.6% 20.8% 22.6% 23.1%
Free Cash Flow Reconciliation
FY 2006 FY 2005
-----------------
Cash Provided by Operating
Activities $ 378.6 $ 225.5
Less: capital expenditures (108.9) (91.7)
Free Cash Flow $ 269.7 $ 133.8
* Definitions for two Non-GAAP financial measures, Adjusted EBITDA
and segment adjusted EBITDA, have been updated this quarter to
include non-recurring items detailed in the related reconciliation.
We believe that these updated definitions better reflect the on-
going financial performance of the company. This update does not
result in any changes to these financial measures as reported for
prior quarters in 2006.
CONTACT: Sabre Holdings
Media Contact:
Michael Berman, 682-605-2397
michael.berman@sabre-holdings.com
or
Investor Relations Contact:
Karen Fugate, 682-605-2343
karen.fugate@sabre-holdings.com
SOURCE: Sabre Holdings
