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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 December 31,
Twelve months ended
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 December 31,
Twelve months ended 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 December 31,
Twelve months ended 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
FY 06
FY 05
% Change
Gross Travel Booked
North America
$1,711
$1,519
13%
$7,433
$6,279
18%
Europe
$547
$491
11%
$2,644
$1,202
120%
Total Gross Travel Booked
$2,258
$2,010
12%
$10,077
$7,480
35%
Revenue
North America
$164
$156
5%
$693
$634
9%
Europe
$83
$79
5%
$393
$197
99%
Total Revenue
$247
$235
5%
$1,085
$831
31%
Operating Income (Adjusted)
North America
$19
$9
120%
$82
$53
54%
North America Operating Margin (Adjusted)
12%
6%
12%
8%
Europe
($6)
($21)
(73%)
($9)
($32)
(73%)
Europe Operating Margin (Adjusted)
(7%)
(27%)
(2%)
(16%)
Total Operating Income (Adjusted)
$13
($13)
NM
$73
$21
250%
Total Travelocity Operating Margin (Adjusted)
5%
(5%)
7%
3%
Operating Income (GAAP)
North America
$14
$7
120%
$64
$44
45%
North America Operating Margin (GAAP)
9%
4%
9%
7%
Europe
($19)
($33)
(44%)
($59)
($54)
9%
Europe Operating Margin (GAAP)
(22%)
(42%)
(15%)
(28%)
Total Operating Income (GAAP)
($4)
($27)
85%
$5
($10)
NM
Total Travelocity Operating Margin (GAAP)
(2%)
(11%)
0%
(1%)
Adjusted EBITDA
North America
$25
$13
91%
$103
$70
48%
North America EBITDA Margin
15%
8%
15%
11%
Europe
($2)
($19)
(90%)
$7
($27)
NM
Europe EBITDA Margin
(2%)
(24%)
2%
(13%)
Total Adjusted EBITDA
$23
($6)
NM
$109
$43
154%
Total Travelocity EBITDA Margin
9%
(3%)
10%
5%
Sabre Holdings Corporation
Sabre Travel Network
Transactions Summary
(millions)
4Q06
4Q05
% Change
YTD06
YTD05
% Change
Transactions
85.6
75.1
13.9%
357.3
342.7
4.3%
Geographic
US
55.4
46.6
18.9%
225.4
214.9
4.9%
International
30.2
28.5
5.7%
131.9
127.8
3.2%
85.6
75.1
13.9%
357.3
342.7
4.3%
Channel
Traditional Agency
66.5
64.6
2.9%
300.3
297.2
1.1%
Consumer on-line
19.1
10.5
81.3%
57.0
45.5
25.3%
85.6
75.1
13.9%
357.3
342.7
4.3%
Air/Non-Air
Air
73.5
63.5
15.7%
307.6
292.9
5.0%
Non-Air
12.1
11.7
3.9%
49.7
49.7
(0.1%)
85.6
75.1
13.9%
357.3
342.7
4.3%
Note: As of Q1 2005, we are counting as a transaction, any travel
reservation that generates a fee paid directly to us including, but
not limited to traditional booking fees paid by suppliers,
non-traditional transaction fees paid by suppliers, transaction fees
paid by travel agencies, and transaction fees paid by corporations
related to our online booking tool.
Updated historical quarterly transaction information available at
http://www.sabre-holdings.com/investor/highlights/statistics/
Sabre Holdings Corporation
Non-GAAP Financials Reconciliations
($ 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
134.1
130.5 million
131.9
130.3 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.