SOUTHLAKE, Texas, Mar 31, 2004 /PRNewswire-FirstCall via COMTEX/ — Sabre Holdings
Corporation (NYSE: TSG) today raised its earnings projection for the first
quarter due to strong travel bookings and lower than expected company
expenses. The company also raised its full year 2004 earnings projection.
For the first quarter, the company now projects diluted earnings per share
in the range of $0.32 to $0.35, on an adjusted basis, exceeding previous
guidance of $0.24 to $0.27. On a GAAP basis, the company now projects
earnings per share in the range of $0.26 to $0.29 versus previous projections
of $0.18 to $0.21. Special items in the first quarter, net of tax and
minority interests, are projected to be approximately $9 million, which
include stock compensation and amortization of intangible assets.
Although expenses for the first quarter are lower than plan, the company
expects spending to gradually return to plan levels throughout the year. In
addition, the company projects Travelocity’s operating loss in the first
quarter to be less than originally expected. Travelocity remains on track to
turn profitable in the second quarter.
Based on these revised expectations, the company projects diluted earnings
per share for 2004 in the range of $1.25 to $1.35, on an adjusted basis,
exceeding previous guidance of $1.15 to $1.25. On a GAAP basis, the company
projects full year earnings per share in the range of $1.04 to $1.14 versus
previous projections of $0.94 to $1.04.
Sabre Holdings plans to announce its first quarter, 2004 financial results
on Thursday, April 22.
About Sabre Holdings Corporation
Sabre Holdings, an S&P 500 company, is a world leader in travel commerce,
retailing travel products and providing distribution and technology solutions
for the travel industry. Sabre Holdings supports travelers, travel agents,
corporations and travel suppliers through its companies: Travelocity, Sabre
Travel Network, and Sabre Airline Solutions. Headquartered in Southlake,
Texas, in the Dallas-Fort Worth Metroplex, the company has approximately 6,000
employees in 45 countries. Full year 2003 revenues totaled $2.05 billion.
Sabre Holdings is traded on the New York Stock Exchange under the symbol TSG.
More information is available at http://www.sabre-holdings.com.
Statements in this news release or in the schedule hereto which are not
purely historical facts, including statements about forecasted financial
projections, travel bookings, or other statements about anticipations,
beliefs, expectations, hopes, intentions or strategies for the future, may be
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. Readers are cautioned not to place undue
reliance on forward-looking statements. All forward-looking statements are
based upon information available to Sabre Holdings Corporation on the date
this report was submitted. Sabre Holdings Corporation undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Any
forward-looking statements involve risks and uncertainties that could cause
actual events or results to differ materially from the events or results
described in the forward-looking statements, including risks or uncertainties
related to: competition from established and emerging travel distribution
channels, the financial instability of many air carriers and Sabre Holdings
Corporation’s revenues being highly dependent on the travel and transportation
industries. Sabre Holdings Corporation may not succeed in addressing these
and other risks. Further information regarding factors that could affect our
financial and other results can be found in the risk factors section of the
Sabre Holdings Corporation’s most recent filing on Form 10-K with the
Securities and Exchange Commission.
Sabre Holdings Corporation Non-GAAP Financials Reconciliations ($ in millions) 1st Quarter Full Year 1Q 2004 Guidance FY 2004 Guidance Net Earnings Reconciliation Low High Low High GAAP Net Earnings $36.4 $40.6 $146.6 $160.7 Adjustments, net of taxes: Add: Amortization of intangibles, stock compensation and transaction fees from merger & acquisition activity 8.6 8.6 29.9 29.9 Adjusted net earnings $45.0 $49.2 $176.5 $190.6 GAAP EPS $0.26 $0.29 $1.04 $1.14 Adjusted EPS $0.32 $0.35 $1.25 $1.35 Diluted share count 140.0 million 141.0 million Travelocity Revenue Reconciliation FY 2004 FY 2003 GAAP Revenue $501.0 $394.5 Growth % 27% Less: recognition of deferred revenue on warrants - (7.8) Adjusted Revenue $501.0 $386.7 Growth % 30% Travelocity Operating Income Reconciliations FY 2004 GAAP Operating Income (Loss) ($21.7) GAAP operating margin (4.3%) Add: amortization of intangibles and transaction fees from merger & acquisition activity 27.8 Add: stock compensation 8.9 Adjusted Operating Income (Loss) $15.0 Adjusted Operating margin 3.0%
SOURCE Sabre Holdings Corporation
Media Relations - Michael Berman, Sabre Holdings, +1-682-605-2397; or Investor Relations - Karen Fugate, Sabre Holdings, +1-682-605-2343