* 1Q 2004 Diluted EPS (Adjusted) of $0.37
* 1Q 2004 Diluted EPS (GAAP) of $0.31
* 1Q 2004 Revenue of $540 million
* Travelocity gross bookings exceed $1.1 billion, increase of
27.6 percent year-over-year
* Board authorizes $100 million Stock Repurchase Program
Note: Analyst call today at 10 a.m. CDT, at
www.sabre-holdings.com/investor/
SOUTHLAKE, Texas, April 22 /PRNewswire-FirstCall/ — Sabre Holdings Corporation (NYSE: TSG) today announced financial results for the first quarter 2004.
The company reported first quarter diluted earnings per share of $0.37 on an adjusted basis, and earnings per share of $0.31 on a GAAP basis. Revenue for the first quarter was $540 million.
“Sabre Holdings had an excellent quarter,” said Sam Gilliland, president and CEO, Sabre Holdings. “Our results were primarily driven by better-than- expected travel demand combined with lower company expenses. Across our businesses, we continued to execute on our core strategies. More specifically, we were very pleased with the progress at Travelocity.”
Sabre Holdings also announced today that its Board of Directors approved another stock repurchase program, authorizing the company to buy back up to $100 million of the company’s common stock.
SABRE HOLDINGS 1Q 2004 FINANCIAL HIGHLIGHTS
(Note: See attached schedules for full financial details and reconciliations of non-GAAP financial measures to GAAP, including special items)
Revenue: First quarter revenue was $540 million, an increase of 6.4 percent on an adjusted basis from $507 million in the year-ago quarter.
Operating income: First quarter operating income, on an adjusted basis, was $83 million. On a GAAP basis, operating income was $69 million.
Net earnings: Net earnings, on an adjusted basis, were $51 million in the first quarter, compared to $52 million in the year-ago quarter. On a GAAP basis, first quarter net earnings were $43 million, or $0.31 per share on a diluted basis, compared to net earnings of $65 million, or $0.45 per share on a diluted basis, in the year-ago quarter. Note: In the year-ago quarter, net earnings of $65 million included approximately $22 million, net of tax, from a settlement.
EBITDA: For the first quarter, earnings before interest, taxes, depreciation, and amortization was $100 million.
Dividend: Sabre Holdings announced a quarterly cash dividend of $0.075 per share on April 20. The dividend is payable on May 14, 2004 to shareholders of record at the close of regular trading on April 30, 2004.
Cash/Debt: The company balance sheet as of March 31, 2004 reflected cash and marketable securities of approximately $875 million. Total debt at the end of the quarter was $599 million, which includes the carrying value of the company’s public debt of $435 million and a $164 million capital lease obligation.
SABRE HOLDINGS BUSINESS REVIEW
TRAVELOCITY
Travelocity gross travel bookings exceeded $1.1 billion for the quarter, an increase of 27.6 percent, year-over-year. Although Travelocity had an operating loss for the quarter on a GAAP basis, on an adjusted basis the loss was less than expected and the business was profitable for the month of March.
First quarter revenue from Travelocity was $111 million, a 28.7 percent increase compared to $87 million in the first quarter of 2003. Transaction revenue for the quarter was $94 million, an increase of 48.4 percent, year- over-year. Non-transaction revenue, which includes advertising, corporate, and international joint ventures, was $17 million, a decrease of 25.8 percent.
First quarter non-air transaction revenue grew 95 percent, year-over-year. Packaging revenue grew 138 percent, year-over-year. In addition, hotel room nights across the Travelocity network were up 66 percent, year-over-year.
SABRE TRAVEL NETWORK
First quarter revenue from the Sabre Travel Network business was $411 million, an increase of 3.2 percent on an adjusted basis from $398 million in the year-ago quarter. The increase was due to better than expected travel bookings. Global travel bookings were 105 million for the first quarter, an increase of 11.9 percent, compared with 94 million in the year-ago quarter.
SABRE AIRLINE SOLUTIONS
First quarter revenue from Sabre Airline Solutions was $60 million, an increase of 3.7 percent, compared to $58 million in the year-ago quarter. The revenue growth was primarily due to stronger bookings through the reservation system hosting (Passenger Solutions) business.
1Q 2004 BUSINESS HIGHLIGHTS
Sabre Holdings
-- Repurchased approximately 3.34 million shares of common stock
($71.8 million) in the quarter, which completed the $100 million
stock repurchase program that began in the fourth quarter of 2003
-- Increased quarterly dividend by 7 percent to $0.075 per share in
January
Travelocity
-- Implemented complete rebranding of Web site design offering consumers
greater ease-of-use, while setting new standards for design in online
travel
-- Enhanced Travelocity TotalTrip to give shoppers the ability to
reserve attraction tickets, ski lift tickets and airport transfers
along with great flight and hotel options in one itinerary
-- Revamped the hotel shopping engine to enable customers to tailor
their searches for any hotel in any area by price, amenity, property
rating or other preferred category
-- Extended and revised a marketing agreement with long-time partner
America Online through March 2006, resulting in significant savings
over the final year of the previous agreement
-- Added Southwest Airlines to the Travelocity Partner Network private
label booking program
Sabre Travel Network
-- Reached, for the first time, more than 2 million hotel bookings
through the global distribution system in one month (March).
-- Introduced Assured Vantage, a new contract program for small- to
medium-sized travel agencies that offers more agency-friendly
contract terms and a new and simple incentive schedule
-- Announced 54 preferred suppliers for members of Jurni Network, the
unique offline leisure travel agency consortium
-- Processed more than 3 million transactions through GetThere products
in the quarter, up 35 percent, year-over-year
Sabre Airline Solutions
-- Launched SabreSonic, a new generation of airline passenger solutions
suite comprised of easy-to-use modules to help airlines increase
customer loyalty and reduce operational costs
-- Signed a multi-year, multi-product agreement with low-cost carrier
Frontier Airlines, which included the SabreSonic passenger solution
suite
-- Moved into Canada's low-fare carrier market by signing a five-year
agreement to support WestJet in their implementation of resource
management solutions
-- Renewed contract with ATA Airlines for the Sabre Passenger
Reservation System
SABRE HOLDINGS OUTLOOK
2Q 2004
For the second quarter 2004, the company projects revenue to be in the range of $540 million to $560 million. Diluted earnings per share are expected to be in the range of $0.35 to $0.40 on an adjusted basis, and in the range of $0.29 to $0.34 on a GAAP basis.
Special items in the second quarter, net of tax and minority interest, are projected to be approximately $8 million. This estimate includes stock compensation and amortization of intangible assets.
Full Year 2004
The company updated its revenue and earnings projections for 2004:
-- Total company revenue is expected to grow approximately 5 percent to
10 percent on an adjusted basis, year-over-over, versus previous
guidance of 4 percent to 9 percent
-- Revenue is expected to grow approximately 3 percent to 7 percent on
a GAAP basis, year-over-year, versus previous guidance of 2 percent
to 6 percent
-- 2004 earnings per share on an adjusted basis in the range of $1.30
to $1.35 versus previous guidance of $1.25 to $1.35
-- 2004 earnings per share on a GAAP basis in the range of $1.09 to
$1.14 versus previous guidance of $1.04 to $1.14
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 more than 6,000 employees in 43 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 www.sabre-holdings.com .
Statements in this news release and the schedules hereto which are not purely historical facts, including statements about forecasted financial projections and the benefits of Web site redesign and enhancement efforts, 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: geopolitical developments, such as the possibility of terrorist attacks; the ability of the Company to reduce and control costs, and the Company’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 our most recent filing on Form 10-K with the Securities and Exchange Commission.
Financial Schedules to Follow
Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Unadjusted
(unaudited, in millions except per share amounts)
Three months ended March 31,
2004 2003 Percent
Revenues
Sabre Travel Network $410.8 $434.7 (5.5%)
Travelocity 111.5 86.6 28.7%
Sabre Airline Solutions 59.7 57.6 3.7%
Elimination of intersegment revenues (42.3) (35.1) 20.6%
Total revenues 539.8 543.8 (0.8%)
Operating expenses 470.3 439.9 6.9%
Operating income 69.5 103.9 (33.1%)
Other income (expense)
Interest income (expense) net (3.2) (1.1) (199.5%)
Other, net 0.3 0.4 (22.8%)
Minority interest 0.1 (0.6) (114.9%)
Income before provision for income taxes 66.7 102.6 (35.0%)
Provision for income taxes 23.7 37.8 (37.3%)
Net earnings $43.0 $64.9 (33.7%)
Operating Margin 12.9% 19.1%
Earnings per share - basic $0.31 $0.46
Earnings per share - diluted $0.31 $0.45
Weighted average shares - basic 139.2 142.4
Weighted average shares - diluted 139.6 142.6
Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Adjusted
(unaudited, in millions except per share amounts)
Three months ended March 31,
2004 2003 Percent
Revenues
Sabre Travel Network $410.8 $398.2 3.2%
Travelocity 111.5 86.6 28.7%
Sabre Airline Solutions 59.7 57.6 3.7%
Elimination of intersegment revenues (42.3) (35.1) 20.6%
Total revenues 539.8 507.4 6.4%
Operating expenses 456.7 424.7 7.5%
Operating income 83.1 82.6 0.5%
Other income (expense)
Interest income (expense) net (3.2) (1.1) (199.5%)
Other, net 0.3 0.7 (49.2%)
Minority interest (0.7) (1.4) (48.4%)
Income before provision for income taxes 79.5 80.8 (1.6%)
Provision for income taxes 28.4 29.3 (2.9%)
Net earnings $51.1 $51.5 (0.9%)
Operating margin 15.4% 16.3%
Earnings per share - basic $0.37 $0.36
Earnings per share - diluted $0.37 $0.36
Weighted average shares - basic 139.2 142.4
Weighted average shares - diluted 139.6 142.6
Sabre Holdings Corporation
Reconciliation of Unadjusted Results to Adjusted Net Earnings
Three Months ended March 31, 2004 and 2003
(unaudited, in millions, except percents)
Three months ended March 31,
2004 2003 Change*
Unadjusted operating income $69.5 $103.9 (33.1%)
Adjustments for special items:
Travelocity intangible amortization
and stock compensation $9.4 $11.9 (21.1%)
Sabre Pacific, DCS, Nexion
intang. amort. and stk. comp. $3.2 $2.3 39.0%
Gradient intangible amortization
and stock compensation $1.0 $1.0 (0.2%)
Subscriber settlement agreement $0.0 ($36.5) (100.0%)
Adjusted operating income $83.1 $82.6 0.5%
Unadjusted other income and minority
interest ($2.8) ($1.3) 119.7%
Adjustments for special items:
Realized loss on disposal of
Hotels.com warrants $0.0 $0.2 (100.0%)
Impact of special items on
minority interests ($0.8) ($0.8) 3.0%
Adjusted income before provision for
income taxes $79.5 $80.8 (1.6%)
Unadjusted provision for income taxes $23.7 $37.8 (37.3%)
Adjustments to taxes for special
items $4.7 ($8.5) (155.6%)
Adjusted provision for income taxes $28.4 $29.3 (2.9%)
Adjusted net earnings $51.1 $51.5 (0.9%)
* Percents shown reflect changes in unrounded figures and may not agree
to the percent changes in figures after rounding.
Sabre Holdings Corporation
Sabre Travel Network
Bookings Summary - 1Q 2004
(millions)
1Q04 1Q03 % Change
Total Bookings 104.9 93.7 11.9%
Geographic
US 55.9 50.8 9.9%
International 49.0 42.9 14.3%
104.9 93.7 11.9%
Channel
Traditional agency 91.0 81.9 11.1%
Consumer online 9.8 9.0 9.5%
Corporate online 4.0 2.9 41.0%
104.9 93.7 11.9%
Air/Non-Air
Air 93.0 83.4 11.5%
Non-air 11.9 10.3 14.8%
104.9 93.7 11.9%
Direct/Non-Direct
Direct 88.2 81.0 8.9%
Non-direct 16.7 12.7 31.3%
104.9 93.7 11.9%
Sabre Holdings Corporation
Non-GAAP Financials Reconciliations
($ in millions)
Sabre Holdings
Revenue
Reconciliation FY 2004 Guidance
1Q 2004 1Q 2003 Low High FY 2003
GAAP Revenue $539.8 $543.8 $2,100.9 $2,197.0 $2,045.2
Growth % (0.8%) 2.7% 7.4%
Less: subscriber
settlement --- (36.5) --- --- (44.3)
Adjusted Revenue $539.8 $507.4 $2,100.9 $2,197.0 $2,000.9
Growth % 6.4% 5.0% 9.8%
TN Revenue
Reconciliation FY 2004 Guidance
1Q 2004 1Q 2003 FY 2003
GAAP Revenue $410.8 $434.7 $1,554.2 $1,560.2
Growth % (5.5%) (0.4%)
Less: subscriber
settlement --- (36.5) --- (36.5)
Adjusted Revenue $410.8 $398.2 $1,554.2 $1,523.8
Growth % 3.2% 2.0%
Operating Income
Reconciliations
Sabre Holdings
1Q 2004 1Q 2003
GAAP Operating
Income $69.5 $103.9
GAAP operating
margin 12.9% 19.1%
Add: Amortization
of intangibles,
stock
compensation
and transaction
fees from merger &
acquisition
activity 13.6 $15.2
Less: subscriber
settlement --- ($36.5)
Adjusted Operating
Income $83.1 $82.6
Adjusted Operating
margin 15.4% 16.3%
Sabre Travel Network
1Q 2004
GAAP Operating
Income $81.3
GAAP operating
margin 19.8%
Add: amortization
of intangibles and
transaction fees
from merger &
acquisition
activity 3.2
Adjusted Operating
Income $84.5
Adjusted Operating
margin 20.6%
Travelocity
1Q 2004
GAAP Operating
Income (Loss) ($10.9)
GAAP operating
margin (9.7%)
Add: amortization
of intangibles and
transaction fees
from merger &
acquisition
activity $7.5
Add: stock
compensation $1.9
Adjusted Operating
Income (Loss) ($1.5)
Adjusted Operating
margin (1.3%)
Net Earnings 2Q 2004 FY 2004
Reconciliation Guidance Guidance
1Q 2004 1Q 2003 Low High Low High
GAAP Net Earnings $43.0 $64.9 $40.9 $47.9 $153.5 $160.6
Adjustments, net
of taxes:
Add: Amortization
of intangibles,
stock compensation
and transaction
fees from merger &
acquisition
activity 8.0 9.2 8.3 8.3 29.4 29.4
Less: subscriber
settlement --- (22.5) --- ---
Adjusted net
earnings $51.1 $51.5 $49.2 $56.2 $182.9 $189.9
GAAP EPS $0.31 $0.45 $0.29 $0.34 $1.09 $1.14
Adjusted EPS $0.37 $0.36 $0.35 $0.40 $1.30 $1.35
Diluted share
count (in
millions) 139.6 142.6 140.5 140.7
Adjusted EBITDA
Reconciliation FY 2004 Guidance
1Q 2004 Low High
GAAP Net Earnings $43.0 $153.5 $160.6
Add: Taxes 23.7 84.5 88.4
Add: Interest
Expense 6.4 25.6 25.6
Less: Interest
Income (3.2) (14.3) (14.3)
Less: Other, net (0.3) (0.3) (0.3)
Less: Minority
Interest (0.1) (0.1) (0.1)
Add: Depreciation &
Amortization 30.8 125.3 125.3
Adjusted EBITDA $100.3 $374.2 $385.1
SOURCE Sabre Holdings Corporation
-0- 04/22/2004
/CONTACT: media, Michael Berman, +1-682-605-2397, or
michael.berman@sabre-holdings.com , or investor relations, Karen Fugate,
+1-682-605-2343, or karen.fugate@sabre-holdings.com , both of Sabre Holdings
Corporation/
/Web site: http://www.sabre-holdings.com
http://www.sabre-holdings.com/investor/
(TSG)
CO: Sabre Holdings Corporation
ST: Texas
IN: CPR TRA LEI AIR
SU: ERN ERP CCA MAV
GN-CD
-- DATH024 --
1464 04/22/2004 08:00 EDT http://www.prnewswire.com
