SOUTHLAKE, Texas–(BUSINESS WIRE)–Aug. 3, 2006–Sabre Holdings Corporation (NYSE:TSG):
-- 2Q 2006 revenue up 17 percent year-over-year
-- 2Q 2006 diluted EPS (adjusted) of $0.45; diluted EPS (GAAP) of
$0.26
-- 2Q 2006 free cash flow of $155 million, up 66 percent
year-over-year; cash flow from operations of $179 million
-- Travelocity revenue up 63 percent, gross travel booked up 58
percent year-over-year
-- Company reiterates full-year 2006 adjusted financial
projections
Note: Earnings call today at 4:00 p.m. CDT, at www.sabre-holdings.com/investor/index.html
Sabre Holdings Corporation (NYSE:TSG) today announced financial results for the second quarter of 2006.
The company reported revenue for the second quarter of $723 million, up 17 percent, year-over-year. Diluted earnings per share were $0.45 on an adjusted basis compared to $0.42 in the year-ago quarter. On a GAAP basis, diluted earnings per share were $0.26, which includes amortization of intangibles from lastminute.com, losses on the sale of non-core businesses in Europe, and expensing of stock options, compared to $0.34 in the same period last year.
“We had a strong second quarter both financially and operationally,” said Sam Gilliland, Chairman and CEO, Sabre Holdings. “We are pleased to see continued strength in cash generation from our businesses and we remain on track to meet our full-year free cash flow projection. We continue to benefit from our strategy of investment in higher growth opportunities while increasing efficiencies in our core business and across our portfolio.”
SABRE HOLDINGS 2Q 2006
FINANCIAL HIGHLIGHTS
(Note: See attached schedules for full financial details, reconciliations of non-GAAP financial measures, and a description of adjusting items.)
Revenue: Second quarter revenue was $723 million, an increase of 17 percent from $619 million in the year-ago quarter.
Operating income: On an adjusted basis, operating income for the second quarter was $105 million, compared to $90 million in the year-ago quarter. Operating income on a GAAP basis was $78 million, compared to $83 million in the second quarter of 2005.
Net earnings: For the second quarter, net earnings on an adjusted basis were $59 million, or $0.45 per share on a diluted basis, compared to $54 million, or $0.42 per share on a diluted basis in the second quarter of 2005. On a GAAP basis, second quarter net earnings were $34 million, or $0.26 per share on a diluted basis, compared to $44 million, or $0.34 per share on a diluted basis in the year-ago quarter. Net earnings include approximately $5 million from the reversal of a federal tax accrual.
Adjusted EBITDA: For the second quarter, adjusted earnings before interest, taxes, depreciation, and amortization were $132 million, growth of 20 percent year-over-year.
Cash/Debt: The company balance sheet as of June 30, 2006, reflected cash and marketable securities of $466 million. Total debt at the end of the quarter was $1.1 billion, which included notes and bonds payable of $969 million and a $155 million capital lease obligation.
SABRE HOLDINGS BUSINESS REVIEW
TRAVELOCITY
For the second quarter, Travelocity global gross travel booked was $2.7 billion, an increase of 58 percent year-over-year. Total global revenue for the quarter was $281 million, year-over-year growth of 63 percent. Travelocity had operating income on an adjusted basis of $23 million with an operating margin of 8 percent. On a GAAP basis, operating income was $6 million with an operating margin of 2 percent. Adjusted EBITDA nearly tripled to $31 million, which resulted in an 11 percent adjusted EBITDA margin.
For Travelocity results on a geographic basis, including gross travel booked, revenue, operating income and adjusted EBITDA, please see the attached schedules.
Travelocity global metrics in the second quarter (year-over-year) include the following:
-- Total air transaction revenue grew 32 percent
-- Total non-air transaction revenue grew 86 percent
-- Total packaging revenue grew 25 percent
-- Packaging revenue as a percent of total transaction revenue
was 22 percent
-- Hotel room nights sold across the Travelocity network were 4.2
million, growth of 54 percent
SABRE TRAVEL NETWORK
Second quarter revenue from the Sabre Travel Network business was $420 million, a decrease of 2 percent from $429 million in the year-ago quarter. Global transactions in the quarter were 91 million, growth of 1 percent year-over-year. Operating income for the Sabre Travel Network business on an adjusted basis was $73 million with an operating margin of 17 percent. On a GAAP basis, operating income was $65 million with an operating margin of 15 percent. Adjusted EBITDA was $86 million which resulted in a 20 percent adjusted EBITDA margin.
SABRE AIRLINE SOLUTIONS
Second quarter revenue from Sabre Airline Solutions was $68 million, an increase of 1 percent from $67 million in the year-ago quarter. Operating income for the Sabre Airline Solutions unit on an adjusted basis was $10 million with an operating margin of 15 percent. On a GAAP basis, operating income was $8 million with an operating margin of 12 percent. Adjusted EBITDA was $15 million, which resulted in a 22 percent adjusted EBITDA margin.
RECENT BUSINESS HIGHLIGHTS
-- Launched the Efficient Access Solution, the foundation for the
company's new portfolio of customizable, end-to-end solutions
for travel agents serving the corporate and leisure travel
segments.
-- Signed five-year, full-content agreements with Continental and
Alaska Airlines to distribute fares through the Sabre GDS and
Travelocity. This is in addition to previous long-term deals
signed with Air Tran, Delta, Northwest, United and US Airways.
-- Began processing reservations for Expedia and Priceline, as
well as lastminute.com and Site59, through the Sabre GDS. Last
week, Sabre and Expedia also announced an extension of their
existing distribution agreement through 2012 and Expedia
announced its support of the Sabre Efficient Access Solution.
-- Announced that Japan Airlines selected Sabre Airline
Solutions' AirFlite suite of integrated decision support
products and consulting services.
-- Announced that Lockheed Martin Corporation signed a five-year
agreement to use Travelocity Business as its global corporate
travel management provider beginning in September. Travelocity
Business also launched in Europe by merging lastminute.com's
corporate businesses First Option and TravelStore.
-- Redesigned the Travelocity Activities offering and expanded on
the ground presence in Las Vegas with three new locations.
-- Launched lastminute.com's opaque car rental business, Holiday
Autos, in the U.S.
-- Announced that Travelocity plans to launch in India.
-- Declared a quarterly cash dividend of $0.10 per share payable
on August 28, 2006, to shareholders of record at the close of
regular trading on the New York Stock Exchange on August 11,
2006.
SABRE HOLDINGS OUTLOOK
3Q 2006
For the third quarter of 2006, the company projects revenue to be in the range of $745 million to $775 million. Diluted earnings per share are projected to be in the range of $0.58 to $0.62 on an adjusted basis, and $0.44 to $0.48 on a GAAP basis.
4Q 2006
For the fourth quarter of 2006, the company projects revenue to be in the range of $650 million to $680 million. Diluted earnings per share are projected to be in the range of $0.42 to $0.46 on an adjusted basis, and $0.29 to $0.33 on a GAAP basis.
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-K with the Securities and Exchange Commission.
Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Adjusted
(Unaudited - In millions except per share amounts)
Three months ended Six months ended
June 30, June 30,
2006 2005 Change(1) 2006 2005 Change(1)
------ ------ --------- -------- -------- ---------
Revenues
Sabre Travel
Network 420.2 428.9 (2.0%) 868.7 848.7 2.4%
Travelocity 281.0 172.1 63.3% 515.4 319.1 61.5%
Sabre Airline
Solutions 67.7 66.8 1.3% 132.5 129.6 2.2%
Elimination of
intersegment
revenues (46.3) (48.6) (4.7%) (93.9) (96.4) (2.6%)
------ ------ -------- --------
Total revenues 722.6 619.3 16.7% 1,422.8 1,201.1 18.5%
Operating expenses 617.1 529.2 16.6% 1,252.9 1,031.7 21.4%
------ ------ -------- --------
Operating income 105.5 90.1 17.1% 169.9 169.5 0.3%
Other income
(expense)
Interest income
(expense) net (16.8) (2.3) 632.6% (32.5) (5.5) 488.1%
Other, net (0.0) 0.4 (103.0%) 0.3 0.2 14.8%
Minority interest (0.7) (0.1) 740.8% 1.1 (0.5) --
------ ------ -------- --------
Income before
provision for
income taxes 88.0 88.1 (0.1%) 138.7 163.7 (15.3%)
Provision for
income taxes 28.7 33.9 (15.4%) 47.2 60.7 (22.3%)
------ ------ -------- --------
Net earnings 59.3 54.2 9.5% 91.5 102.9 (11.1%)
====== ====== ======== ========
Operating margin 14.6% 14.5% 11.9% 14.1%
Earnings per share-
basic $0.46 $0.42 $0.70 $0.79
Earnings per share-
diluted $0.45 $0.42 $0.69 $0.79
Weighted average
shares -basic 130.4 129.3 130.4 129.8
Weighted average
shares -diluted 130.7 130.0 131.7 130.4
(1) 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 - Unadjusted
(Unaudited - In millions except per share amounts)
Three months ended Six months ended
June 30, June 30,
2006 2005 Change(1) 2006 2005 Change(1)
------ ------ --------- -------- -------- ---------
Revenues
Sabre Travel
Network 420.2 428.9 (2.0%) 868.7 848.7 2.4%
Travelocity 281.0 172.1 63.3% 515.4 319.1 61.5%
Sabre Airline
Solutions 67.7 66.8 1.3% 132.5 129.6 2.2%
Elimination of
intersegment
revenues (46.3) (48.6) (4.7%) (93.9) (96.4) (2.6%)
------ ------ -------- --------
Total revenues 722.6 619.3 16.7% 1,422.8 1,201.1 18.5%
Operating expenses 644.2 536.1 20.2% 1,306.5 1,046.8 24.8%
------ ------ -------- --------
Operating income 78.4 83.1 (5.7%) 116.3 154.3 (24.6%)
Other income
(expense)
Interest income
(expense) net (16.8) (2.3) 632.6% (32.5) (5.5) 488.1%
Other, net (11.1) (9.6) 15.0% (9.0) 10.8 (182.8%)
Minority interest (0.0) 0.6 (103.4%) 2.5 1.4 79.4%
------ ------ -------- --------
Income before
provision for
income taxes 50.6 71.8 (29.6%) 77.3 161.0 (52.0%)
Provision for
income taxes 16.8 27.9 (39.9%) 26.7 59.4 (55.0%)
------ ------ -------- --------
Net earnings 33.8 43.9 (23.1%) 50.6 101.6 (50.2%)
====== ====== ======== ========
Operating margin 10.8% 13.4% 8.2% 12.8%
Earnings per share-
basic $0.26 $0.34 $0.39 $0.78
Earnings per share-
diluted $0.26 $0.34 $0.38 $0.78
Weighted average
shares -basic 130.4 129.3 130.4 129.8
Weighted average
shares -diluted 130.7 130.0 131.7 130.4
(1) 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 and Six Months ended June 30, 2006
(Unaudited, in millions)
Three months ended Six months ended
June 30, June 30,
2006 2005 Change(1) 2006 2005 Change(1)
------- ------- --------- ------- ------- ---------
Unadjusted
operating income $78.4 $83.1 (5.7%) $116.3 $154.3 (24.6%)
Adjusting items:
Travelocity
intangible
amortization and
stock
compensation $16.8 $2.0 744.5% $33.6 $4.4 656.2%
Travel Network
intangible
amortization and
stock
compensation $8.4 $4.4 91.4% $16.2 $9.6 68.5%
Airline Solutions
intangible
amortization and
stock
compensation $1.9 $0.6 230.5% $3.8 $1.1 232.8%
------- ------- ------- -------
Adjusted operating
income $105.5 $90.1 17.1% $169.9 $169.5 0.3%
Unadjusted other
income (loss) and
minority interest ($27.8) ($11.3) 146.5% ($39.0) $6.7 (685.8%)
Adjusting items:
Travelocity loss
on sale of
European
businesses $11.1 -- -- $11.1 -- --
Forfeitures
related to
adoption of FAS
123R -- -- -- ($1.8) -- --
Currency hedge
associated with
lastminute.com
acquisition -- $10.0 -- -- $10.0 --
Realized gain on
sale of Karavel
investment -- -- -- -- ($20.6) --
Impact of
adjusting items
on minority
interests ($0.7) ($0.7) 0.0% ($1.4) ($1.9) (26.1%)
Adjusted income
before provision
for income taxes $88.0 $88.1 (0.1%) $138.7 $163.7 (15.3%)
Unadjusted
provision for
income taxes $16.8 $27.9 (39.9%) $26.7 $59.4 (55.0%)
Adjustments to
taxes for
adjusting items $11.9 $6.0 98.5% $20.5 $1.3 1432.2%
------- ------- ------- -------
Adjusted provision
for income taxes $28.7 $33.9 (15.4%) $47.2 $60.7 (22.3%)
Adjusted net
earnings $59.3 $54.2 9.5% $91.5 $102.9 (11.1%)
======= ======= ======= =======
(1) Percents shown reflect changes in unrounded figures and may not
agree to the percent changes in figures after rounding.
Sabre Holdings Corporation
Sabre Travel Network
Transactions Summary
(millions)
2Q06 2Q05 % Change YTD06 YTD05 % Change
----- ----- --------- ----- ----- ---------
Transactions 90.8 90.2 0.7% 185.8 182.2 2.0%
Geographic
US 55.9 56.1 (0.3%) 116.0 114.9 1.0%
International 34.9 34.1 2.3% 69.8 67.3 3.7%
----- ----- ----- -----
90.8 90.2 0.7% 185.8 182.2 2.0%
Channel
Traditional
Agency 78.7 78.6 0.1% 161.7 159.3 1.5%
Consumer on-
line 12.1 11.6 4.4% 24.1 22.9 5.2%
----- ----- ----- -----
90.8 90.2 0.7% 185.8 182.2 2.0%
Air/Non-Air
Air 77.4 77.3 0.1% 159.7 157.0 1.7%
Non-Air 13.4 12.9 4.0% 26.1 25.2 3.6%
----- ----- ----- -----
90.8 90.2 0.7% 185.8 182.2 2.0%
Note: As of Q1 2005, we are counting as a transaction, any travel
reservation that generates a fee paid directly to us including, but
not limited to the following: traditional booking fees paid by
suppliers, non-traditional transaction fees paid by suppliers,
transaction fees paid by travel agencies, and transaction fees paid by
corporations related to our online booking tool.
Updated historical quarterly transaction information available on
http://www.sabre-holdings.com/investor/highlights/statistics/
historical.html
Travelocity 2Q 2006
Geographic Results
Note: North America includes Zuji results in Asia; Europe includes
lastminute.com as of 20 July 2005
($ millions) 2Q06 2Q05 % Change
-------------------------------------------- ------- ------- ---------
Gross Travel Booked
North America $2,010 $1,642 22%
Europe $689 $65 NM
Total Gross Travel Booked $2,699 $1,708 58%
Revenue
North America $178 $165 8%
Europe $103 $7 NM
Total Revenue $281 $172 63%
Operating Income (Adjusted)
North America $24 $18 33%
Europe ($2) ($12) NM
Total Operating Income (Adjusted) $23 $7 247%
Operating Income (GAAP)
North America $20 $16 20%
Europe ($14) ($12) NM
Total Operating Income (GAAP) $6 $5 30%
Adjusted EBITDA
North America $29 $22 34%
Europe $2 ($11) NM
Total Adjusted EBITDA $31 $11 199%
Sabre Holdings Corporation
Non-GAAP Financials Reconciliations(1)
($ in millions, except per share data)
Operating Income Reconciliations
Sabre Holdings
2Q 2006 2Q 2005
------- --------
GAAP Operating Income $78.4 $83.1
GAAP Operating Margin 10.8% 13.4%
Add: amortization of intangibles 18.2 6.6
Add: stock compensation - stock options 4.4 0.4
Add: stock compensation - restricted stock and
performance shares 4.4 --
------- --------
Adjusted Operating Income $105.5 $90.1
Adjusted Operating Margin 14.6% 14.5%
Sabre Travel Network
2Q 2006 2Q 2005
------- --------
GAAP Operating Income $64.7 $67.2
GAAP Operating Margin 15.4% 15.7%
Add: amortization of intangibles 3.9 4.4
Add: stock compensation 4.6 --
------- --------
Adjusted Operating Income $73.1 $71.6
Adjusted Operating Margin 17.4% 16.7%
Travelocity
2Q 2006 2Q 2005
------- --------
GAAP Operating Income $5.9 $4.6
GAAP Operating Margin 2.1% 2.6%
Add: amortization of intangibles 13.8 1.6
Add: stock compensation 3.0 0.4
------- --------
Adjusted Operating Income $22.7 $6.5
Adjusted Operating Margin 8.1% 3.8%
Travelocity Europe
2Q 2006 2Q 2005
------- --------
GAAP Operating Income ($13.8) ($11.9)
GAAP Operating Margin (13.5%) (177.2%)
Add: amortization of intangibles 12.3 0.2
Add: stock compensation -- --
------- --------
Adjusted Operating Income ($1.5) ($11.7)
Adjusted Operating Margin (1.5%) (173.7%)
Travelocity Non-Europe
2Q 2006 2Q 2005
------- --------
GAAP Operating Income $19.7 $16.5
GAAP Operating Margin 11.1% 10.0%
Add: amortization of intangibles 1.5 1.4
Add: stock compensation 3.0 0.4
------- --------
Adjusted Operating Income $24.2 $18.2
Adjusted Operating Margin 13.6% 11.0%
Sabre Airline Solutions
2Q 2006 2Q 2005
------- ---------------
GAAP Operating Income $8.1 $11.1
GAAP Operating Margin 12.0% 16.6%
Add: amortization of intangibles 0.6 0.6
Add: stock compensation 1.3 --
------- --------
Adjusted Operating Income $10.0 $11.7
Adjusted Operating Margin 14.7% 17.4%
(1) 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
2Q 2006 2Q 2005
------- ---------------
GAAP Net Earnings $33.8 $43.9
Adjustments, net of taxes:
Add: amortization of intangibles and stock
compensation 16.9 4.0
Add: Travelocity loss on sale of businesses 8.7 --
Add: currency hedge associated with
lastminute.com acquisition -- 6.3
------- --------
Adjusted Net Earnings $59.3 $54.2
GAAP EPS $0.26 $0.34
Adjusted EPS $0.45 $0.42
Diluted share count 130.7 130.0 million
Adjusted EBITDA Reconciliation
2Q 2006 2Q 2005
------- --------
GAAP Net Earnings $33.8 $43.9
Add: taxes 16.8 27.9
Add: interest expense 19.3 8.4
Less: interest income (2.5) (6.1)
Add: other, net 11.1 9.6
Add/(Less): minority interest 0.0 (0.6)
Add: depreciation & amortization 44.4 26.2
Add: stock compensation 8.9 --
------- --------
Adjusted EBITDA $131.6 $109.3
Adjusted EBITDA Margin 18.2% 17.7%
Sabre Travel Network
2Q 2006 2Q 2005
------- --------
GAAP Operating Income $64.7 $67.2
GAAP Operating Margin 15.4% 15.7%
Add: depreciation & amortization 16.4 14.7
Add: stock compensation 4.6 --
------- --------
Adjusted EBITDA $85.6 $81.9
Adjusted EBITDA Margin 20.4% 19.1%
Travelocity
2Q 2006 2Q 2005
------- --------
GAAP Operating Income $5.9 $4.6
GAAP Operating Margin 2.1% 2.6%
Add: depreciation & amortization 22.5 6.0
Add: stock compensation 3.0 --
------- --------
Adjusted EBITDA $31.4 $10.5
Adjusted EBITDA Margin 11.2% 6.1%
Travelocity Europe
2Q 2006 2Q 2005
------- --------
GAAP Operating Income ($13.8) ($11.9)
GAAP Operating Margin (13.5%) (177.2%)
Add: depreciation & amortization 15.9 0.5
Add: stock compensation -- --
------- --------
Adjusted EBITDA $2.1 ($11.5)
Adjusted EBITDA Margin 2.0% (170.3%)
Travelocity Non-Europe
2Q 2006 2Q 2005
------- --------
GAAP Operating Income $19.7 $16.5
GAAP Operating Margin 11.1% 10.0%
Add: depreciation & amortization $6.6 $5.5
Add: stock compensation $3.0 $0.0
------- --------
Adjusted EBITDA $29.3 $22.0
Adjusted EBITDA Margin 16.5% 13.3%
(1) 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
Sabre Airline Solutions
2Q 2006 2Q 2005
------- --------
GAAP Operating Income $8.1 $11.1
GAAP Operating Margin 12.0% 16.6%
Add: depreciation & amortization 5.5 5.5
Add: stock compensation 1.3 --
------- --------
Adjusted EBITDA $14.9 $16.6
Adjusted EBITDA Margin 22.0% 24.9%
Free Cash Flow Reconciliation 2Q 2006 2Q 2005
------- --------
Cash Provided by Operating Activities $178.9 $116.6
Less: capital expenditures (24.3) (23.4)
------- --------
Free Cash Flow $154.6 $93.2
2006 Guidance
-------------------------
Net Earnings 3Q 2006 4Q 2006 FY 2006
Reconciliation Guidance Guidance Guidance
-------------- -------------- ---------------
Low High Low High Low High
------ ------- ------ ------- ------- -------
GAAP Net Earnings $57.9 $63.1 $38.4 $43.7 $147.2 $156.4
Adjustments, net of
taxes:
Add: amortization of
intangibles and stock
compensation 17.6 17.6 17.4 17.4 68.5 68.5
Add: Travelocity loss on
sale of businesses -- -- -- -- 8.7 8.7
Less: forfeiture on
adoption of FAS 123R -- -- -- -- (1.2) (1.2)
------ ------- ------ ------- ------- -------
Adjusted Net Earnings $75.6 $80.8 $55.8 $61.1 $223.2 $232.4
GAAP EPS $0.44 $0.48 $0.29 $0.33 $1.12 $1.19
Adjusted EPS $0.58 $0.62 $0.42 $0.46 $1.70 $1.77
Diluted share count
(millions) 130.5 131.5 131.3
Adjusted EBITDA Reconciliation FY 2006
Guidance
---------------
Low High
------- -------
GAAP Net Earnings $147.2 $156.4
Add: taxes 66.5 70.6
Add: interest expense 77.0 77.0
Less: interest income (15.3) (15.3)
Add: other, net 9.0 9.0
Less: minority interest (1.6) (1.6)
Add: depreciation & amortization 178.6 178.6
Add: stock compensation 38.7 38.7
------- -------
Adjusted EBITDA $500.1 $513.4
Free Cash Flow Reconciliation FY 2006
Guidance
---------------
Low High
------- -------
Cash Provided by Operating Activities $425.0 $450.0
Less: capital expenditures (125.0) (115.0)
------- -------
Free Cash Flow $300.0 $335.0
(1) 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
CONTACT: Sabre Holdings, Southlake
Media Contact:
Michael Berman, 682-605-2397
michael.berman@sabre-holdings.com
or
Investor Relations Contact:
Karen Fugate, 682-605-2343
karen.fugate@sabre-holdings.com
SOURCE: Sabre Holdings Corporation
