SOUTHLAKE, Texas, Feb 02, 2006 (BUSINESS WIRE) — Sabre Holdings Corporation (NYSE:TSG):
— Full-Year 2005 revenue of $2.5 billion, up 18 percent year-over-year
— Full-Year 2005 diluted EPS (Adjusted) of $1.50; Full-Year 2005 diluted EPS (GAAP) of $1.32
— 4Q 2005 revenue of $620 million, up 25 percent year-over-year
— 4Q 2005 diluted EPS (Adjusted) of $0.22; 4Q 2005 diluted EPS (GAAP) of $0.09
— Travelocity revenue up 86 percent for the fourth quarter, up 65 percent for the year
— Note: Analyst call today at 9:00 a.m. CST, at www.sabre-holdings.com/investor/index.html.
Sabre Holdings Corporation (NYSE:TSG) today announced financial results for the fourth quarter and full year of 2005.
Revenue for the fourth quarter was $620 million, up 25 percent, year-over-year.
The company reported fourth quarter 2005 diluted earnings per share of $0.22 on an adjusted basis, equal to the amount in the year-ago quarter. The results include the positive impact from the reversal of prior tax accruals which was partially offset by accelerated integration costs at lastminute.com and certain exceptional costs in the quarter. On a GAAP basis, diluted earnings per share were $0.09 compared to $0.16 per share in the year-ago quarter. In addition to the above, the GAAP results include the impact of intangible amortization related to the acquisition of lastminute.com.
Revenue for the full-year 2005 was $2.5 billion, an increase of 18 percent, year-over-year. The company reported 2005 diluted earnings per share of $1.50 on an adjusted basis, compared to $1.47 in 2004. On a GAAP basis, diluted earnings per share were $1.32 compared to $1.38 per share a year ago.
“We finished what was a very exciting investment year with healthy revenue growth in the fourth quarter and solid operational performances across our business units,” said Sam Gilliland, Chairman and CEO, Sabre Holdings. “We expect that the work we did in 2005 will fuel significant revenue and earnings growth in 2006 and beyond.”
SABRE HOLDINGS 4Q 2005
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 $620 million, an increase of 25 percent from $496 million in the year-ago quarter.
Operating income: Excluding adjusting items, operating income for the fourth quarter was $25 million, compared to $39 million in the year-ago quarter. Operating income on a GAAP basis was $7 million, compared to $24 million in 2004.
Net earnings: For the fourth quarter, net earnings, excluding adjusting items, were $28 million, or $0.22 per share, compared to $30 million, or $0.22 per share in the fourth quarter of 2004. On a GAAP basis, fourth quarter net earnings were $12 million, or $0.09 per share on a diluted basis, compared to $21 million, or $0.16 per share on a diluted basis in the year-ago quarter.
Adjusted EBITDA: For the fourth quarter, adjusted earnings before interest, taxes, depreciation, and amortization were $46 million.
SABRE HOLDINGS FULL-YEAR
2005 FINANCIAL HIGHLIGHTS
Revenue: For 2005, revenue was $2.5 billion, an increase of 18 percent from $2.1 billion year-over-year.
Operating income: Excluding adjusting items, operating income for the year was $306 million, compared to $316 million a year ago. Operating income on a GAAP basis was $261 million, a slight increase from the same period last year.
Net earnings: Net earnings, excluding adjusting items, were $196 million, or $1.50 per share, compared to $203 million, or $1.47 per share in 2004. On a GAAP basis, 2005 net earnings were $172 million, or $1.32 per share on a diluted basis, compared to $190 million, or $1.38 per share on a diluted basis a year ago.
Adjusted EBITDA: For 2005, adjusted earnings before interest, taxes, depreciation, and amortization were $392 million.
Cash/Debt: The company balance sheet as of Dec. 31, 2005 reflected cash and marketable securities of $558 million. Total debt at the end of the quarter was $1.4 billion, which included bridge financing for lastminute.com of $800 million, notes and bonds payable of $426 million, and a $159 million capital lease obligation.
SABRE HOLDINGS BUSINESS REVIEW
TRAVELOCITY
For the fourth quarter, Travelocity global gross travel booked was $2 billion, an increase of 67 percent year-over-year. Total global revenue for the quarter was $235 million, year-over-year growth of 86 percent.
On a geographic basis, gross travel booked and revenue for Travelocity included the following:
TRAVELOCITY 4Q05 4Q04 Y/Y Growth
------------------------------------- -------- --------- -----------
Gross Travel Booked (millions)
------------------------------------- -------- --------- -----------
North America (1) $1,505 $1,146 31%
------------------------------------- -------- --------- -----------
Europe (2) $491 $48 NM
------------------------------------- -------- --------- -----------
Total Gross Travel Booked $1,996 $1,194 67%
------------------------------------- -------- --------- -----------
------------------------------------- -------- --------- -----------
Revenue (millions)
------------------------------------- -------- --------- -----------
North America (1) $156 $122 28%
------------------------------------- -------- --------- -----------
Europe (2) $79 $4 NM
------------------------------------- -------- --------- -----------
Total Revenue $235 $126 86%
------------------------------------- -------- --------- -----------
(1) Includes ZUJI results in Asia
(2) Includes lastminute.com as of July 2005
Other Travelocity global metrics for the fourth quarter:
— Total air transaction revenue grew 45 percent
— Total non-air transaction revenue grew 126 percent
— Total packaging revenue grew 93 percent
— Packaging revenue as a percent of total transaction revenue was 24 percent
— Hotel room nights sold across the Travelocity network were 3.5 million, growth of 90 percent year-over-year
For full-year 2005, Travelocity gross travel bookings were $7.4 billion, an increase of 51 percent year-over-year. Travelocity revenue was $830 million, a year-over-year increase of 65 percent.
On a geographic basis, gross travel booked and revenue for Travelocity included the following:
TRAVELOCITY 2005 2004 Y/Y Growth
---------------------------------- --------- ---------- ------------
Gross Travel Booked (millions)
---------------------------------- --------- ---------- ------------
North America (1) $6,245 $4,893 28%
---------------------------------- --------- ---------- ------------
Europe (2) $1,202 $48 NM
---------------------------------- --------- ---------- ------------
Total Gross Travel Booked $7,446 $4,940 51%
---------------------------------- --------- ---------- ------------
---------------------------------- --------- ---------- ------------
Revenue (millions)
---------------------------------- --------- ---------- ------------
North America (1) $633 $514 23%
---------------------------------- --------- ---------- ------------
Europe (2) $197 ($12) (3) NM
---------------------------------- --------- ---------- ------------
Total Revenue $830 $503 65%
---------------------------------- --------- ---------- ------------
(1) Includes ZUJI results in Asia
(2) Includes lastminute.com as of July 2005
(3) Until October 2004, Travelocity Europe was a 50-percent joint
venture, and net equity losses were recorded as contra to
revenue
Other Travelocity global metrics for 2005:
— Total air transaction revenue grew 26 percent
— Total non-air transaction revenue grew 97 percent
— Total packaging revenue grew 98 percent
— Packaging revenue as a percent of total transaction revenue was 26 percent
— Hotel room nights sold across the Travelocity network were 12.9 million, growth of 67 percent year-over-year
SABRE TRAVEL NETWORK
Fourth quarter revenue from the Sabre Travel Network business was $364 million, an increase of 5 percent from $347 million in the year-ago quarter. Global transactions in the quarter were 75 million, growth of 3 percent year-over-year.
Full-year 2005 revenue was $1.6 billion, an increase of 4 percent compared to 2004. Total global transactions through the Sabre global distribution system were 343 million, an increase of 4 percent year-over-year.
SABRE AIRLINE SOLUTIONS
Fourth quarter revenue from Sabre Airline Solutions was $64 million, an increase of 2 percent from $63 million in the year-ago quarter.
For 2005, revenue for Airline Solutions was $261 million, an increase of 7 percent over 2004.
RECENT BUSINESS HIGHLIGHTS
— Announced today that US Airways signed a 5-year full content deal with Sabre Travel Network and Travelocity (See separate joint press release dated Feb. 2, 2006: Sabre Holdings and US Airways Announce Signing of New Long-Term Full Content Agreement).
— Signed a 5-year full content agreement with Northwest Airlines to distribute all of Northwest’s published fares and inventory, including Web fares, through the Sabre global distribution system (GDS).
— Announced that Travelocity acquired complete ownership of ZUJI, the leading online travel company in the Asia-Pacific region.
— Increased the quarterly cash dividend by 11 percent to $0.10 per share payable on Feb. 28, 2006, to shareholders of record at the close of regular trading on the New York Stock Exchange on Feb. 10, 2006.
SABRE HOLDINGS OUTLOOK
1Q 2006
For the first quarter of 2006, the company projects revenue to be in the range of $680 million to $710 million. Diluted earnings per share are projected to be in the range of $0.21 to $0.25 on an adjusted basis, and $0.10 to $0.14 on a GAAP basis. These first quarter estimates include the dilutive impact from seasonality of the lastminute.com business and interest expense associated with its acquisition.
Full-Year 2006
— Year-over-year revenue growth of approximately 15 percent
— Diluted earnings per share on an adjusted basis in the range of $1.70 to $1.77
— Diluted earnings per share on a GAAP basis in the range of $1.23 to $1.30
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 2005 revenues totaled $2.5 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 10-Q with the Securities and Exchange Commission.
Sabre Holdings Corporation
Condensed Consolidated Statement of Income - Unadjusted
(Unaudited - In millions except per share amounts)
Three months ended Twelve months ended
Dec. 31, Dec. 31,
2005 2004 Percent 2005 2004 Percent
------- ------- ---------- --------- --------- -------
Revenues
Sabre Travel
Network $364.5 $346.7 5.1% $1,615.8 $1,552.8 4.1%
Travelocity 234.5 126.1 86.1% 829.9 502.5 65.1%
Sabre Airline
Solutions 64.1 62.8 2.0% 260.8 243.5 7.1%
Elimination
of
intersegment
revenues (42.6) (39.7) 7.6% (185.3) (167.9) 10.3%
------- ------- --------- ---------
Total
revenues 620.4 495.9 25.1% 2,521.3 2,131.0 18.3%
Operating
expenses 613.4 472.3 29.9% 2,260.4 1,872.2 20.7%
Operating
income 7.0 23.6 (70.4%) 260.9 258.7 0.8%
Other income
(expense)
Interest
income
(expense)
net (14.6) (2.8) 417.0% (30.7) (11.7) 161.9%
Other, net (6.4) 0.1 -- 7.0 8.4 (16.0%)
Minority
interest 4.2 1.4 210.4% 7.5 1.7 348.6%
------- ------- --------- ---------
Income before
provision for
income taxes (9.8) 22.2 (143.9%) 244.7 257.1 (4.8%)
Provision for
income taxes (21.8) 1.2 -- 72.6 66.6 8.9%
------- ------- --------- ---------
Net earnings $12.1 $21.0 (42.5%) $172.2 $190.4 (9.6%)
======= ======= ========= =========
Operating
Margin 1.1% 4.8% 10.3% 12.1%
Earnings per
share- basic $0.09 $0.16 $1.33 $1.40
Earnings per
share-
diluted $0.09 $0.16 $1.32 $1.38
Weighted
average
shares -basic 129.5 133.2 129.6 136.3
Weighted
average
shares
-diluted 130.5 134.1 130.3 137.9
Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Adjusted
(Unaudited - In millions except per share amounts)
Three months ended Twelve months ended
Dec. 31, Dec. 31,
2005 2004 Percent 2005 2004 Percent
------- ------- --------- --------- --------- --------
Revenues
Sabre Travel
Network $364.5 $346.7 5.1% $1,615.8 $1,552.8 4.1%
Travelocity 234.5 126.1 86.1% 829.9 502.5 65.1%
Sabre Airline
Solutions 64.1 62.8 2.0% 260.8 243.5 7.1%
Elimination
of
intersegment
revenues (42.6) (39.7) 7.6% (185.3) (167.9) 10.3%
------- ------- --------- ---------
Total revenues 620.4 495.9 25.1% 2,521.3 2,131.0 18.3%
Operating
expenses 595.8 457.1 30.3% 2,215.1 1,814.8 22.1%
Operating
income 24.6 38.8 (36.6%) 306.2 316.1 (3.1%)
Other income
(expense)
Interest
income
(expense)
net (14.6) (2.8) 417.0% (30.7) (11.7) 161.9%
Other, net 2.0 0.1 -- 2.3 2.1 11.5%
Minority
interest 3.5 0.5 569.5% 4.2 (1.7) (350.0%)
------- ------- --------- ---------
Income before
provision for
income taxes 15.5 36.6 (57.6%) 282.0 304.8 (7.5%)
Provision for
income taxes (12.7) 6.6 (293.7%) 86.2 102.2 (15.7%)
------- ------- --------- ---------
Net earnings $28.2 $30.0 (5.9%) $195.8 $202.6 (3.4%)
======= ======= ========= =========
Operating
margin 4.0% 7.8% 12.1% 14.8%
Earnings per
share- basic $0.22 $0.23 $1.51 $1.49
Earnings per
share-
diluted $0.22 $0.22 $1.50 $1.47
Weighted
average
shares -basic 129.5 133.2 129.6 136.3
Weighted
average
shares
-diluted 130.5 134.1 130.3 137.9
Sabre Holdings Corporation
Reconciliation of Unadjusted Results to Adjusted Results
(Unaudited, In millions)
Three months ended Twelve months ended
Dec 31, Dec 31,
2005 2004 Change(a) 2005 2004 Change(a)
------- ------ --------- ------- ------- ---------
Unadjusted
operating income $7.0 $23.6 (70.4%) $260.9 $258.7 0.8%
Adjusting items:
Travelocity
intangible
amortization
and stock
compensation 13.6 3.8 259.7% 29.5 30.7 (3.8%)
Travel Network
intangible
amortization 3.5 3.5 (1.3%) 17.0 18.5 (8.3%)
Airline
Solutions
intangible
amortization 0.6 0.6 (1.0%) 2.2 0.9 150.9%
Loss on sale of
midrange
server
equipment 0.0 7.3 (100.0%) 0.0 7.3 (100.0%)
Reversal of
accrual
related to
sale of IT
business in
2001 0.0 0.0 -- (3.4) 0.0 --
------- ------ ------- -------
Adjusted operating
income $24.6 $38.8 (36.6%) $306.2 $316.1 (3.1%)
Unadjusted other
income and
minority interest ($16.8) ($1.4) -- ($16.2) ($1.7) 867.9%
Adjusting items:
Realized gain
on sale of
Karavel
investment 0.0 0.0 -- (21.3) 0.0 --
Impact of
adjusting
items on
minority
interests (0.7) (0.8) (16.4%) (3.3) (3.3) (1.7%)
(Gain)/loss on
lastminute.com
hedging
activity 0.0 0.0 -- 8.2 0.0 --
True-up of
previous gain
on sale of
assets 0.0 0.0 -- 0.0 (1.4) (100.0%)
Realized gain
on sale of
European asset (6.6) 0.0 -- (6.6) 0.0 --
Arbitration
Settlement 0.0 0.0 -- 0.0 (6.0) (100.0%)
Supplier
Settlement 15.0 0.0 -- 15.0 0.0 --
Shareholder
Settlement 0.0 0.0 -- 0.0 1.1 (100.0%)
Adjusted income
before provision
for income taxes $15.5 $36.6 (57.6%) $282.0 $304.8 (7.5%)
Unadjusted
provision for
income taxes ($21.8) $1.2 -- $72.6 $66.6 8.9%
Adjustment to
taxes for
reversal of tax
accrual 0.0 0.0 -- 0.0 17.9 (100.0%)
Adjustments to
taxes for
adjusting items 9.1 5.4 70.5% 13.7 17.7 (22.6%)
------- ------ ------- -------
Adjusted provision
for income taxes ($12.7) $6.6 (293.7%) $86.2 $102.2 (15.7%)
Adjusted net
earnings $28.2 $30.0 (5.9%) $195.8 $202.6 (3.4%)
======= ====== ======= =======
(a) Percents shown reflect changes in unrounded figures and may not
agree to the percent changes in figures after rounding.
Sabre Holdings Corporation
Sabre Travel Network
Transactions Summary
(millions)
----- ----- --------- ------ ------ ---------
4Q05 4Q04 % Change FY 05 FY 04 % Change
----- ----- --------- ------ ------ ---------
Transactions 75.1 73.1 2.8% 342.6 330.4 3.7%
Geographic
US 46.6 45.8 1.6% 214.6 209.9 2.2%
International 28.5 27.2 4.7% 128.0 120.5 6.3%
----- ----- ------ ------
75.1 73.1 2.8% 342.6 330.4 3.7%
Channel
Traditional Agency 64.8 63.9 1.4% 298.1 290.9 2.5%
Consumer on-line 10.3 9.2 12.5% 44.5 39.5 12.7%
----- ----- ------ ------
75.1 73.1 2.8% 342.6 330.4 3.7%
Air/Non-Air
Air 63.3 61.7 2.7% 292.8 282.9 3.5%
Non-Air 11.8 11.4 3.3% 49.8 47.5 4.8%
----- ----- ------ ------
75.1 73.1 2.8% 342.6 330.4 3.7%
Note: As of the Q1 2005, we are counting as a transaction, any travel
reservation that generates a fee paid directly to us including, but
not limited to the following: traditional booking fees paid by
suppliers, non-traditional transaction fees paid by suppliers,
transaction fees paid by travel agencies, and transaction fees paid by
corporations related to our online booking tool.
Sabre Holdings Corporation
Non-GAAP Financials Reconciliations
($ in millions, except per share data)
Operating Income
Reconciliations
Sabre Holdings Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- ------- ---------- -------
GAAP Operating Income $7.0 $23.6 $260.9 $258.7
GAAP Operating
Margin 1.1% 4.8% 10.3% 12.1%
Add: amortization of
intangibles 17.4 14.5 47.3 52.2
Add: stock compensation 0.2 0.7 1.4 5.2
Less: Reversal of accrual
related to sale of IT
business in 2001 - - (3.4) -
-------- ------- ---------- -------
Adjusted Operating Income $24.6 $38.8 $306.2 $316.1
Adjusted Operating
Margin 4.0% 7.8% 12.1% 14.8%
Sabre Travel Network Full Year
------------------
4Q 2005 4Q 2004 2005 2004
-------- -------- --------- -------
GAAP Operating Income $24.7 $33.5 $223.5 $270.2
GAAP Operating
Margin 6.8% 9.7% 13.8% 17.4%
Add: amortization of
intangibles 3.5 3.8 17.0 18.8
-------- ------- ---------- -------
Adjusted Operating Income $28.2 $37.3 $240.5 $289.0
Adjusted Operating
Margin 7.7% 10.8% 14.9% 18.6%
Travelocity Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- ------- ---------- -------
GAAP Operating Income ($24.5) ($11.4) ($2.8) ($20.5)
GAAP Operating
Margin (10.4%) (9.1%) (0.3%) (4.1%)
Add: amortization of
intangibles 13.3 5.5 28.1 27.9
Add: stock compensation 0.2 0.7 1.4 5.2
-------- ------- ---------- -------
Adjusted Operating Income ($10.9) ($5.2) $26.6 $12.6
Adjusted Operating
Margin (4.6%) (4.2%) 3.2% 2.5%
Travelocity Europe Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- -------- ---------- -------
GAAP Operating Income ($33.7) ($9.1) ($54.6) ($26.1)
GAAP Operating
Margin (42.9%) N/A (27.7%) N/A
Add: amortization of
intangibles 12.0 0.2 22.2 0.2
-------- ------- ---------- -------
Adjusted Operating Income ($21.7) ($8.8) ($32.5) ($25.9)
Adjusted Operating
Margin (27.6%) N/A (16.5%) N/A
Travelocity Non-Europe Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- -------- ---------- -------
GAAP Operating Income $9.3 ($2.4) $51.8 $5.6
GAAP Operating
Margin 5.9% (2.0%) 8.2% 1.1%
Add: amortization of
intangibles 1.3 5.3 5.9 27.7
Add: stock compensation 0.2 0.7 1.4 5.2
-------- ------- ---------- -------
Adjusted Operating Income $10.8 $3.6 $59.1 $38.5
Adjusted Operating
Margin 6.9% 2.9% 9.3% 7.5%
Sabre Airline Solutions Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- ------- ---------- -------
GAAP Operating Income $8.2 $6.2 $38.9 $13.7
GAAP Operating
Margin 12.8% 9.9% 14.9% 5.6%
Add: amortization of
intangibles 0.6 1.7 2.2 2.0
-------- ------- ---------- -------
Adjusted Operating Income $8.7 $7.9 $41.2 $15.7
Adjusted Operating
Margin 13.6% 12.5% 15.8% 6.5%
Net Earnings
Reconciliation Full Year
------------------
4Q 2005 4Q 2004 2005 2004
-------- -------- -------- -------
GAAP Net Earnings $12.1 $21.0 $172.2 $190.4
Adjustments, net of
taxes:
Add: amortization of
intangibles and stock
compensation 10.9 4.5 29.3 27.4
Add: supplier settlement 9.4 - 9.4 -
Less: currency hedge
associated with
acquisition - - 5.2 -
Less: realized gain on
sale of investment in
Karavel - - (13.9) -
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) -
Add: loss on sale of
midrange server equipment - 4.5 - 4.5
Add: impairment of
intangible asset - - - 2.1
Add: Travelocity
shareholder settlement - - - 0.7
Less: tax reserve
reversal - - - (17.9)
Less: true-up of previous
gain on sale of assets - - - (0.8)
Less: arbitration
settlement - - - (3.7)
-------- ------- ---------- -------
Adjusted Net Earnings $28.2 $30.0 $195.8 $202.6
GAAP EPS $0.09 $0.16 $1.32 $1.38
Adjusted EPS $0.22 $0.22 $1.50 $1.47
Diluted share count 130.5 134.1 million 130.3 137.9
Adjusted EBITDA
Reconciliations Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- -------- ---------- -------
GAAP Net Earnings $12.1 $21.0 $172.2 $190.4
Add: taxes (21.8) 1.2 72.6 66.6
Add: interest expense
(income) net 14.6 2.8 30.7 11.7
Less: other, net 6.4 (0.1) (7.0) (8.4)
Less: minority interest (4.2) (1.4) (7.5) (1.7)
Add: depreciation &
amortization 38.5 32.7 130.6 127.2
-------- ------- ---------- -------
Adjusted EBITDA $45.5 $56.4 $391.5 $385.9
Sabre Travel Network Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- ------- ---------- -------
GAAP Operating Income $24.7 $33.5 $223.5 $270.2
Add: depreciation &
amortization 13.2 14.0 58.3 59.1
-------- ------- ---------- -------
Adjusted EBITDA $37.9 $47.5 $281.8 $329.4
Travelocity Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- -------- ---------- -------
GAAP Operating Income ($24.5) ($11.4) ($2.8) ($20.5)
Add: depreciation &
amortization 20.2 9.5 50.9 45.5
-------- ------- ---------- -------
Adjusted EBITDA ($4.2) ($2.0) $48.1 $25.0
Travelocity Europe Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- ------- ---------- -------
GAAP Operating Income ($33.7) ($9.1) ($54.6) ($26.1)
Add: depreciation &
amortization 14.3 0.3 27.9 0.3
-------- ------- ---------- -------
Adjusted EBITDA ($19.5) ($8.7) ($26.7) ($25.8)
Travelocity Non-Europe Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- ------- ---------- -------
GAAP Operating Income $9.3 ($2.4) $51.8 $5.6
Add: depreciation &
amortization 6.0 9.1 23.0 45.2
-------- ------- ---------- -------
Adjusted EBITDA $15.2 $6.8 $74.8 $50.8
Sabre Airline Solutions Full Year
-------------------
4Q 2005 4Q 2004 2005 2004
-------- -------- ---------- -------
GAAP Operating Income $8.2 $6.2 $38.9 $13.7
Add: depreciation &
amortization 5.1 5.8 21.4 19.1
-------- ------- ---------- -------
Adjusted EBITDA $13.3 $12.0 $60.4 $32.8
2006 Guidance
--------------------------
Net Earnings
Reconciliation 1Q 2006 Guidance FY 2006 Guidance
----------------- ----------------
Low High Low High
------- ------- ------- -------
GAAP Net Earnings $12.6 $17.9 $164.1 $173.4
Adjustments, net of taxes:
Add: amortization of
intangibles and stock
compensation 15.2 15.2 63.1 63.1
------- ------- ------- -------
Adjusted Net Earnings $27.8 $33.1 $227.2 $236.6
GAAP EPS $0.10 $0.14 $1.23 $1.30
Adjusted EPS $0.21 $0.25 $1.70 $1.77
Diluted share count 132.6 million 133.6 million
SOURCE: Sabre Holdings
Sabre Holdings, Southlake Media Contact Michael Berman, 682-605-2397 michael.berman@sabre-holdings.com or Sabre Holdings Investor Relations Contact Karen Fugate, 682-605-2343 karen.fugate@sabre-holdings.com
