SOUTHLAKE, Texas–(BUSINESS WIRE)–Dec. 12, 2005–Sabre Holdings Corporation (NYSE:TSG):
-- 2006 revenue projected to approach $3 billion, approximately a
15 percent increase year-over-year
-- 2006 EPS (adjusted) projected to be greater than $1.70
-- 2006 EPS (GAAP) projected to be greater than $1.20
-- 2006 free cash flow projected to be greater than $300 million,
more than double over 2005, with cash flow from operations of
approximately $440 million
-- Note: Financial Outlook Call today at 3:30 p.m. CST at
www.sabreholdings.com/investor/index.html/
Sabre Holdings Corporation (NYSE:TSG) today provided guidance for the full year of 2006.
Sabre Holdings expects 2006 revenue to approach $3 billion, growth of approximately 15 percent year-over-year. The company projects its 2006 earnings per share on an adjusted basis to be greater than $1.70. On a GAAP basis, the company projects earnings per share to be greater than $1.20 which includes the impact of stock option expensing requirements under FAS 123R and intangible amortization from the acquisition of lastminute.com.
In other financial metrics for 2006, the company expects adjusted EBITDA of greater than $500 million, year-over-year growth of over 25 percent, and GAAP net income of about $170 million. Free cash flow is expected to be greater than $300 million, more than doubling 2005, with cash flow from operations of approximately $440 million.
“While 2005 was a significant investment year, we expect 2006 to be about growth,” said Sam Gilliland, Chairman and CEO, Sabre Holdings. “Our guidance for 2006 reflects our confidence in our team’s ability to build on the investments we made over the past several quarters and successfully execute on our strategy. This should fuel significant revenue and earnings growth in 2006 and beyond.”
2006 Outlook by Business
Travelocity: Revenue is expected to approach $1.2 billion, growth of more than 40 percent year-over-year. Adjusted EBITDA in 2006 is estimated to be more than $155 million. GAAP operating income is expected to be approximately $50 million.
Sabre Travel Network: Revenue is expected to be about $1.6 billion. Adjusted EBITDA is projected to be over $300 million with GAAP operating income of approximately $230 million.
Sabre Airline Solutions: Revenue is expected to be about $270 million, or growth in the low single digits. Adjusted EBITDA is estimated to be greater than $60 million with GAAP operating income of greater than $30 million.
About Sabre Holdings Corporation
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 2004 revenues totaled $2.1 billion. Sabre Holdings, an S&P 500 company, is traded on the NYSE under the symbol TSG. More information is available at http://www.sabre-holdings.com.
Statements in this release which are not purely historical facts or which necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward looking statements. All forward looking statements are based upon information available to Sabre Holdings Corporation on the date this report was submitted. Sabre Holdings Corporation undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Any forward looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward looking statements, including risks or uncertainties related to Sabre Holdings Corporation revenues being subject to adverse changes to our travel supplier relationships and potential substantial decreases in travel transaction volumes. Sabre Holdings Corporation may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Sabre Holdings Corporation’s most recent filing on Form 10Q with the Securities and Exchange Commission.
Financial Schedule to Follow
Sabre Holdings Corporation
Non-GAAP Financials Reconciliations
($ in millions, except per share data)
2006 Guidance
------------------------------------------
FY 2006 Guidance
----------------
Net Earnings Reconciliation Low High
------- -------
GAAP Net Earnings $161.0 $174.3
Adjustments, net of taxes:
Add: amortization of intangibles and stock
compensation 65.1 65.1
------- -------
Adjusted Net Earnings $226.1 $239.4
GAAP EPS $1.21 $1.31
Adjusted EPS $1.70 $1.80
Diluted share count 133.0 million
Adjusted EBITDA Reconciliations FY 2006 Guidance
----------------
Low High
------- -------
GAAP Net Earnings $161.0 $174.3
Add: taxes 81.1 87.8
Add: interest expense 80.0 80.0
Less: interest income (22.0) (22.0)
Add: other, net - -
Add: minority interest - -
Add: depreciation & amortization 195.0 195.0
Add: stock compensation 33.0 33.0
------- -------
Adjusted EBITDA $528.1 $548.1
Sabre Travel Network FY 2006 Guidance
----------------
Low High
------- -------
GAAP Operating Income $222.0 $237.0
Add: depreciation & amortization 70.0 70.0
Add: stock compensation 19.0 19.0
------- -------
Adjusted EBITDA $311.0 $326.0
Travelocity FY 2006 Guidance
----------------
Low High
------- -------
GAAP Operating Income $46.0 $56.0
Add: depreciation & amortization 100.0 100.0
Add: stock compensation 8.0 8.0
------- -------
Adjusted EBITDA $154.0 $164.0
Sabre Airline Solutions FY 2006 Guidance
----------------
Low High
------- -------
GAAP Operating Income $32.0 $37.0
Add: depreciation & amortization 25.0 25.0
Add: stock compensation 6.0 6.0
------- -------
Adjusted EBITDA $63.0 $68.0
FY 2006 Guidance
----------------
Free Cash Flow Reconciliation Low High
------- -------
Cash Provided by Operating Activities $435.0 $445.0
Capital Expenditures 130.0 120.0
Free Cash Flow $305.0 $325.0
CONTACT: Sabre Holdings Corporation, Southlake
Media
Michael Berman, 682-605-2397
or
Investor Relations
Karen Fugate, 682-605-2343
SOURCE: Sabre Holdings Corporation