* 3Q 2003 Diluted EPS (GAAP) of $0.18 * 3Q 2003 Diluted EPS, excluding special items, of $0.24 * Travelocity Surpasses $1 Billion Mark in Gross Travel Sales * Board Authorizes $100 million stock repurchase program * Projects 2004 EPS (GAAP) greater than $1.00 * Projects 2004 EPS, excluding special items, greater than $1.20 Note: Analyst conference call at 9:00 a.m. CDT today, at www.sabre-holdings.com/investor/index.html .
SOUTHLAKE, Texas, Oct 23, 2003 /PRNewswire-FirstCall via COMTEX/ — Sabre Holdings
Corporation (NYSE: TSG) today reported third quarter revenue of $527 million
on a GAAP basis, and $519 million excluding a special item. The company also
reported third quarter diluted earnings per share of $0.18 on a GAAP basis,
and $0.24 per share on an adjusted basis.
“This was a strategic quarter for Sabre Holdings. Of particular note were
the important steps taken to position our Sabre Travel Network company for
continued leadership in a post-regulatory world, and the critical milestones
achieved by our Travelocity company in accelerating the growth of our merchant
offerings,” said William J. Hannigan, chairman and CEO, Sabre Holdings.
“Throughout the travel downturn, we have continued to invest in our
businesses to best position our companies for the long haul. At the same
time, the strong free cash flow generating characteristics of our portfolio
enables us to enhance shareholder returns through dividends and stock
repurchases.”
Sabre Holdings today also announced that its Board of Directors approved a
stock repurchase program, authorizing the company to buy back up to
$100 million of the company’s common stock.
SABRE HOLDINGS 3Q 2003
FINANCIAL HIGHLIGHTS
Revenue: Third quarter revenue on a GAAP basis was $527 million, an
increase of 1.8 percent from $517 million in the year-ago quarter. Excluding
a special item of $8 million, revenue was $519 million.
Operating income: Third quarter operating income on a GAAP basis was
$44 million, a decrease of 49.9 percent from the same period last year.
Excluding special items, operating income was $59 million, compared to
$104 million in the year-ago quarter.
Net earnings: On a GAAP basis, third quarter net earnings were
$25 million, or $0.18 per share on a diluted basis, compared to $58 million,
or $0.40 per share on a diluted basis, in the year-ago quarter. Net earnings,
excluding special items, were $34 million in the third quarter, compared to
$67 million in the year-ago quarter.
Adjusted EBITDA: For the third quarter, adjusted earnings before
interest, taxes, depreciation, and amortization was $87 million.
Special items: Special items in the third quarter included recognition of
approximately $8 million in revenue from Hotels.com warrants. Special items
also included $23 million of stock compensation, amortization of intangible
assets, a write-off of an intangible asset, and a reversal of a charge related
to previous merger and acquisition activity. The impact of these special
items on minority interests was $1.0 million and $5.0 million on income taxes.
Further details can be found on the attached financial schedules.
ADDITIONAL FINANCIAL INFORMATION
Dividend: The Sabre Holdings Board of Directors declared a quarterly cash
dividend of $0.07 per share for the third quarter. The dividend is payable on
Nov. 14, 2003 to shareholders of record at the close of regular trading on
Oct. 31, 2003.
Cash/Debt: The company balance sheet as of Sept. 30, 2003 reflected cash
and marketable securities of slightly more than $1 billion. Total debt as of
Sept. 30 was $598 million. This includes the carrying value of the company’s
public debt of $434 million and a $164 million capital lease obligation.
Capital Spending: Capital spending for the third quarter was $15 million,
compared to $14 million in the third quarter of 2002.
Depreciation and Amortization: Depreciation and amortization expense,
including intangible assets associated with acquisitions, was $43 million in
the third quarter, an increase of 49.8 percent compared to the same period a
year ago. Depreciation and amortization expense, excluding intangible assets
associated with acquisitions, was $23 million.
SABRE HOLDINGS BUSINESS REVIEW
TRAVELOCITY
Third quarter Travelocity gross travel sales surpassed the $1 billion mark
for the first time in a quarter, coming in at $1.036 billion, an increase of
13 percent compared to $915 million in the year-ago quarter. Third quarter
revenue from Travelocity was $106 million on a GAAP basis. Excluding a gain
from Hotels.com warrants, Travelocity revenue was $98 million, a 17.7 percent
increase compared to $83 million in the third quarter of 2002.
Transaction revenue for the quarter was $80 million, an increase of
34.1 percent, year-over-year. Travelocity non-air transaction revenue, which
includes hotel, car, cruise, vacation, last minute and Total Trip businesses,
grew 62 percent year-over-year, and 33 percent sequentially. Total hotel
revenue grew 49 percent, year-over-year, driven by a 106 percent increase in
hotel merchant revenue. The number of Travelocity’s Merchant Hotel bookings
grew almost 100 percent sequentially and its mix of merchant hotel volume was
49 percent.
Operationalized hotels participating in the Travelocity merchant model
program now exceed 8,700. During the quarter, several major chains joined the
program including Carlson Hotels Worldwide(R), Homestead Studio Suites Hotels,
Best Western International Inc., the world’s largest hotel chain(R), and in an
exclusive agreement, Mandalay Resort Group, featuring five Las Vegas
properties.
Yesterday, in another move to broaden its merchant model hotel
distribution capabilities, Travelocity announced it reached a definitive
agreement to acquire the assets of World Choice Travel (WCT), the U.S.-based
hotel room consolidation and distribution business of MyTravel Group PLC. The
$50 million cash transaction, anticipated to close in the fourth quarter, is
expected to generate additional tax deductions that will effectively reduce
Sabre Holdings cost of the acquisition by approximately $13 million, to
approximately $37 million.
SABRE TRAVEL NETWORK
Third quarter revenue from the Sabre Travel Network business was
$383 million, a decrease of 3.5 percent from $397 million in the year-ago
quarter. The decrease was primarily due to lower year-over-year booking
volumes combined with lower rates for bookings through the DCA Three-Year
option. The decline was partially offset by the earlier than expected
recovery in global bookings that began at the end of last quarter and
continued in third quarter.
Global travel bookings were 95 million for the third quarter, compared
with 98 million in the year-ago quarter, a decline of three percent. This
included a slight increase in international bookings, primarily due to a
strong post-SARS recovery in the Asia Pacific region and numerous agency
conversions to the Sabre GDS in Latin America.
Highlights for the business included four major carriers joining the Sabre
DCA Three-Year Option, an industry-leading program that is redefining the GDS
business. More than 20 airlines have selected the option including American,
Continental, Delta, Northwest, United and US Airways.
In addition, the Sabre Travel Network business yesterday announced Jurni
Network, a new leisure travel consortium that enables travel agencies to sell
more products from preferred travel suppliers by using sophisticated market
intelligence.
GETTHERE
GetThere revenue for the third quarter was $14 million, an increase of
0.4 percent year-over-year, and about 14 percent sequentially. Total
transactions processed were 2.5 million, an increase of 26 percent, year-over-
year. GetThere corporate trip volume grew 33 percent, year-over-year.
During the third quarter, Sabre Holdings announced that it would enhance
its ability to serve the corporate market by further aligning the technology
and expertise of GetThere with its three other business units. The GetThere
integration, which remains on track, is scheduled for completion by end of the
year.
GetThere highlights during the quarter included a multi-year contract win
to support the U.S. Government’s initiative to streamline its travel
reservations. GetThere also continued upgrading customers to GetThere
DirectCorporate Release 6, with 125 large companies now using the enhanced
product. In addition, GetThere added several new Fortune 500 companies to
its roster, including Pfizer Inc.
SABRE AIRLINE SOLUTIONS
Third quarter revenue from Sabre Airline Solutions was $56 million, an
increase of 10.7 percent, compared to $50 million in the year-ago quarter.
The revenue growth was primarily due to solid performance from the product and
services group, including a major contract win with Mexicana Airlines for
airline catering and cabin services optimization technology.
The hosting business also won a key contract renewal for the Sabre
Passenger Reservations System from ATA Airlines. The contract includes
consulting services that exemplifies the continued willingness among customers
to expand their relationship to include broader sets of Sabre Airline
Solutions services.
Sabre Airline Solutions significantly enhanced its graphical user
interface to make it even easier for airline customers to use its reservations
and departure control system. The group also completed work with Southwest
Airlines for the implementation and roll out of the “Southwest Shortcut,” the
industry’s first online tool that allows travelers to search for the lowest
fare based on availability for a full month.
SABRE HOLDINGS OUTLOOK
4Q and Full Year 2003
For the fourth quarter, 2003, the company projects revenue to be in the
range of $463 million to $475 million, up 2 percent to 5 percent, year-over-
year. Diluted earnings per share on a GAAP basis is expected to be
approximately ($0.15).
Excluding the impact of special items, the company projects fourth quarter
diluted earnings per share to be approximately $0.00. This projection
includes a $20 million restructuring charge, pre-tax, that in the past would
have been considered an adjusting special item.
Special items in the fourth quarter, net of tax and minority interest are
projected to approximately $20 million. This estimate includes stock
compensation and amortization of intangible assets, and facility and real
estate charges as a result of facility consolidation.
For full year 2003, the company expects the following:
-- 2003 revenue, on a GAAP basis, to be approximately flat year-over-
year
-- 2003 revenue, excluding special items, in the range of down 3 percent
to down 2 percent, year-over-year
-- 2003 earnings per share of approximately $0.52 on a GAAP basis
-- 2003 earnings per share, excluding special items, of $0.82, which
includes a $20 million restructuring charge, pre tax, as referenced
above
-- 2003 Adjusted EBITDA to be approximately $290 million - GAAP net
earnings of approximately $75 million
-- 2003 free cash flow to be approximately $175 million - Cash flow from
operations to be approximately $225 million
Full Year 2004
The following 2004 guidance does not include any financial impact from the
announcement yesterday regarding Travelocity’s planned acquisition of the
assets of WCT:
-- 2004 revenue growth of approximately 6 percent on a GAAP basis, and
approximately 8 percent excluding special items, year-over year
-- 2004 earnings per share greater than $1.00, on a GAAP basis
-- 2004 earnings per share greater than $1.20, excluding special items
Business unit revenue growth projections for 2004 are listed below. The
revenue projections, year-over-year, do not include the impact from the final
asset placement decisions for GetThere or the planned acquisition of WCT
assets by Travelocity:
-- Travelocity: revenue growth of greater than 22 percent on a GAAP
basis, and revenue growth greater than 25 percent, excluding special
items
-- Sabre Travel Network: slightly negative revenue growth on a GAAP
basis, and flat revenue growth, excluding special items
-- Sabre Airline Solutions: revenue growth in the low teens
-- GetThere: corporate and supplier revenue growth greater than 35
percent
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
6,500 employees in 45 countries. Full year 2002 revenues totaled
$2.06 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 and the schedules hereto which are not
purely historical facts, including statements about forecasted financial
projections, the expected benefits to Travelocity or Sabre Holdings
Corporation of the acquisitions referenced herein, 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: the computer reservation system rules proposed by the Department
of Transportation; the integration of any acquired assets, such as acquired
technology, into Sabre Holdings Corporation, 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-Q 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 Nine months ended
Sept. 30, Sept. 30,
2003 2002 Percent 2003 2002 Percent
Revenues
Sabre Travel
Network $382.6 $396.6 (3.5%) $1,186.5 $1,250.7 (5.1%)
Travelocity 105.5 83.0 27.1% 276.7 233.0 18.8%
GetThere 14.0 14.0 0.4% 38.6 38.9 (0.7%)
Sabre Airline
Solutions 55.8 50.4 10.7% 165.7 154.5 7.2%
Elimination of
intersegment
revenues (31.2) (26.6) 17.4% (89.7) (73.7) 21.8%
Total revenues 526.8 517.4 1.8% 1,577.8 1,603.5 (1.6%)
Operating expenses 482.9 429.9 12.3% 1,389.7 1,291.7 7.6%
Operating income 43.9 87.5 (49.9%) 188.2 311.8 (39.7%)
Other income (expense)
Interest income
(expense) net (2.6) 1.5 (272.6%) (5.0) 4.8 (204.1%)
Other, net (0.8) 1.9 (143.7%) (30.4) 23.0 (232.1%)
Minority interest (0.7) (0.3) 103.5% (1.3) (0.4) 233.5%
Income before
provision for
income taxes 39.7 90.6 (56.2%) 151.5 339.2 (55.3%)
Provision for
income taxes 14.2 32.7 (56.4%) 54.3 125.9 (56.9%)
Net earnings $25.5 $57.9 (56.1%) $97.1 $213.3 (54.5%)
Operating Margin 8.3% 16.9% 11.9% 19.4%
Earnings per
share - basic $0.18 $0.40 $0.68 $1.53
Earnings per
share - diluted $0.18 $0.40 $0.68 $1.50
Weighted average
shares - basic 142.7 143.1 142.5 139.8
Weighted average
shares - diluted 145.2 144.9 143.6 142.3
Sabre Holdings Corporation
Condensed Consolidated Statements of Income - Adjusted
(Unaudited, in millions except per share amounts)
Three months ended Nine months ended
Sept. 30, Sept. 30,
2003 2002 Percent 2003 2002 Percent
Revenues
Sabre Travel
Network $382.6 $396.6 (3.5%) $1,150.0 $1,250.7 (8.1%)
Travelocity 97.7 83.0 17.7% 268.9 233.0 15.4%
GetThere 14.0 14.0 0.4% 38.6 38.9 (0.7%)
Sabre Airline
Solutions 55.8 50.4 10.7% 165.7 154.5 7.2%
Elimination of
intersegment
revenues (31.2) (26.6) 17.4% (89.7) (73.7) 21.8%
Total revenues 519.0 517.4 0.3% 1,533.5 1,603.5 (4.4%)
Operating expenses 459.7 413.7 11.1% 1,337.4 1,225.7 9.1%
Operating income 59.2 103.7 (42.9%) 196.1 377.8 (48.1%)
Other income (expense)
Interest income
(expense) net (2.6) 1.5 (272.6%) (5.0) 4.8 (204.1%)
Other, net (1.1) 1.4 (178.4%) (2.3) (3.1) (24.9%)
Minority interest (1.5) (1.1) 35.5% (3.8) (6.3) (40.5%)
Income before
provision for
income taxes 53.9 105.5 (48.9%) 185.0 373.2 (50.4%)
Provision for income
taxes 19.5 38.2 (48.9%) 66.7 139.2 (52.1%)
Net earnings $34.4 $67.3 (48.9%) $118.3 $234.1 (49.5%)
Operating margin -
from continuing
operations 11.4% 20.0% 12.8% 23.6%
Earnings per
share - basic $0.24 $0.47 $0.83 $1.67
Earnings per
share - diluted $0.24 $0.46 $0.82 $1.64
Weighted average
shares - basic 142.7 143.1 142.5 139.8
Weighted average
shares - diluted 145.2 144.9 143.6 142.3
Sabre Holdings Corporation
Reconciliation of Unadjusted Results to Adjusted Net Earnings
Three and Nine Months ended Sept. 30, 2003 and 2002
(Unaudited, in millions, except percents)
Three months ended Nine Months Ended
Sept. 30, Sept. 30,
2003 2002 Change* 2003 2002 Change*
Unadjusted operating
income $43.9 $87.5 (49.9%) $188.2 $311.8 (39.7%)
Adjustments for special
items:
Travelocity intangible
amortization and stock
compensation $4.7 $5.3 (10.7%) $14.6 $27.6 (47.1%)
Recognition of deferred
revenue on Hotels.com
warrants ($7.8) $0.0 ** ($7.8) $0.0 **
Write-off of intangible
asset related to
Hotels.com agreement $8.8 $0.0 ** $8.8 $0.0 **
Gradient, DCS and Sabre
Pacific intangibles
amortization and
deferred compensation $3.1 $3.4 (9.5%) $9.4 $13.3 (29.2%)
Restructuring charges $0.0 $0.0 ** ($0.9) ($3.5) (73.6%)
Travelocity Tender
Offer Expenses ($0.5) $0.0 ** ($0.5) $7.1 (106.3%)
Get There intangibles
amortization, stock
comp, severance $6.9 $7.5 (7.1%) $20.8 $21.7 (3.8%)
Subscriber settlement
agreement $0.0 $0.0 ** ($36.5) $0.0 **
Adjusted operating income $59.2 $103.7 (42.9%) $196.1 $377.9 (48.1%)
Unadjusted other income
and minority interest ($4.2) $3.1 (235.8%) ($36.7) $27.4 (233.9%)
Adjustments for special
items:
Eliminate realized
(gain)/loss on
disposal of Hotels.com
warrants ($0.3) ($0.5) (37.6%) $0.1 ($0.7) (108.7%)
Eliminate France
Telecom Gains $0.0 $0.0 ** $0.0 ($7.1) (100.0%)
Loss on refinancing of
headquarters facility $0.0 $0.0 ** $27.9 $0.0 **
Impact of special items
on minority interests ($0.8) ($0.8) 5.3% ($2.5) ($5.9) (58.7%)
Gain on sale of
corporate office
facility $0.0 $0.0 ** $0.0 ($18.3) (100.0%)
Adjusted income before
provision for income
taxes $53.9 $105.5 (48.9%) $185.0 $373.3 (50.4%)
Unadjusted provision for
income taxes $14.2 $32.7 (56.4%) $54.3 $125.9 (56.9%)
Adjustments to taxes for
special items $5.3 $5.6 (5.4%) $12.4 $13.3 (6.6%)
Adjusted provision for
income taxes $19.5 $38.2 (48.9%) $66.7 $139.2 (52.1%)
Adjusted net earnings $34.4 $67.3 (48.9%) $118.3 $234.1 (49.5%)
* Percents shown reflect changes in unrounded figures and may not agree
to the percent changes in figures after rounding.
** Greater than 100 percent.
Sabre Holdings Corporation
Sabre Travel Network
Booking Summary - 3Q 2003
(millions)
3Q03 3Q02 % Change YTD03 YTD02 % Change
Total Bookings 95.4 98.2 (2.9%) 278.2 312.9 (11.1%)
Geographic
US 49.9 52.9 (5.7%) 150.3 172.1 (12.7%)
International 45.5 45.3 0.4% 127.9 140.7 (9.1%)
95.4 98.2 (2.9%) 278.2 312.9 (11.1%)
Channel
Traditional Agency 82.9 85.1 (2.5%) 242.2 276.1 (12.3%)
Consumer on-line 9.3 10.8 (14.0%) 27.0 30.4 (11.3%)
Corporate on-line
(GetThere) 3.2 2.4 34.6% 8.9 6.3 40.7%
95.4 98.2 (2.9%) 278.2 312.9 (11.1%)
Air/Non-Air
Air 84.0 87.3 (3.8%) 245.7 279.9 (12.2%)
Non-Air 11.4 10.9 4.6% 32.5 32.9 (1.4%)
95.4 98.2 (2.9%) 278.2 312.9 (11.1%)
Direct/Non-Direct
Direct 79.8 83.2 (4.1%) 239.3 268.6 (10.9%)
Non-Direct 15.6 15.0 4.0% 38.9 44.3 (12.2%)
95.4 98.2 (2.9%) 278.2 312.9 (11.1%)
Sabre Holdings Corporation
Non-GAAP Financials Reconciliations
($ in millions)
3rd Quarter 4th Quarter Full Year
3Q 2003 FY 2003
Free Cash Flow
Reconciliation*
Cash Provided
(Used) by
Operating
Activities $66.3 $227.0
Adjustments to
reconcile
Cash Flow
from
Operations
to Free
Cash Flow
Stock
compensation 4.6 13.9
Deferred
income taxes 5.9 0.6
Tax benefit
from
exercise of
stock options 0.3 0.6
Minority
interests 0.7 1.3
Add back
synthetic
lease
refinancing --- 27.9
Add back
non-cash
portion of
restructuring
charges 10.0
Other (1.1) 7.3
Working
capital (13.1) (47.8)
Cash outflows
and inflows
included in
free cash flow
but not
reflected in
Net Cash
provided by
(Used In)
Operating
Activities
Capital
Expenditures 14.6 68.3
Other, net (0.8) (30.3)
Reported Free
Cash Flow $55.2 $175.2
* Based on 3Q
balance sheet
and cash flows
Sabre Holdings
Revenue
Reconciliation
FY 2003 Guidance
3Q 2003 Low High FY 2002
GAAP Revenue $526.8 $2,035.9 $2,056.5 2056.5
Growth % (1%) 0%
Less: subscriber
settlement --- (36.5) (36.5)
Less: warrants (7.8) (7.8) (7.8) ---
Adjusted
Revenue $519.0 $1,991.6 $2,012.2 2056.5
Growth % (3%) (2%)
Travelocity
Revenue
Reconciliation
3Q 2003 3Q 2002
GAAP Revenue 105.5 83.0
Growth % 27.1%
Less: warrants (7.8) ---
Adjusted Revenue 97.7 83.0
Growth % 17.7%
Sabre Holdings
Operating
Expenses
Reconciliation
3Q 2003 3Q 2002
GAAP Operating
Expenses $482.9 $429.9
Growth % 12.3%
Less:
Amortization
of intangibles,
stock
compensation
and transaction
fees from
merger &
acquisition
activity (14.4) (16.2)
Less:
Write-off of
intangibles (8.8) ---
Adjusted
Operating
Expenses $459.7 $413.7
Growth % 11.1%
Operating
Income
Reconciliations
Sabre Holdings
3Q 2003 3Q 2002
GAAP Operating
Income $43.9 $87.5
Add:
Amortization
of intangibles,
stock
compensation
and transaction
fees from
merger &
acquisition
activity 14.4 16.2
Add: Write-off
of intangibles 8.8 ---
Less: warrants (7.8) ---
Adjusted Operating
Income $59.2 $103.7
Sabre Travel
Network
3Q 2003
GAAP Operating
Income $62.9
Add: Goodwill
and other
intangibles
amortization 3.11
Add: Stock
compensation 0.02
Adjusted
Operating
Income 66.0
Travelocity
3Q 2003
GAAP Operating
Income ($11.7)
Add: Goodwill
and other
intangibles
amortization 2.4
Add: Write-off
of intangibles 8.8
Add: Stock
compensation 2.4
Less: warrants (7.8)
Adjusted
Operating
Income (6.0)
Get There
3Q 2003
GAAP Operating
Income ($10.4)
Add: Goodwill
and other
intangibles
amortization 6.1
Add: Stock
compensation 0.8
Adjusted
Operating
Income (3.4)
Net Earnings
Reconciliation
3Q 2003 4Q 2003 FY 2003
EPS EPS EPS
GAAP Net
Earnings $25.5 $0.18 ($21.5) ($0.15) $75.6 $0.52
Adjustments, net
of taxes:
Add:
Amortization of
intangibles,
stock
compensation
and transaction
fees from merger
& acquisition
activity 9.4 9.3 38.1
Add: Write-off of
intangibles 5.5 --- 5.5
Add: facility,
real estate, and
other --- 12.4 11.8
Add: Other, net (0.3) --- 17.3
Less: subscriber
settlement --- (22.5)
Less: warrants (4.9) --- (4.9)
Less: minority
interests (0.8) (0.8) (3.2)
Adjusted net
earnings $34.4 $0.24 ($0.6) $0.00 $117.7 $0.82
Diluted share
count 145.2 million 145.4 million 144.1 million
Adjusted EBITDA
Reconciliation
3Q 2003 FY 2003
GAAP Net
Earnings $25.5 $75.6
Add: Taxes 14.2 39.7
Add: Depreciation
& Amortization 43.4 137.5
Add: Interest
Expense 6.8 24.1
Less: Interest
Income (4.2) (16.7)
Add: Other, net 0.8 30.3
Adjusted EBITDA $86.6 $290.6
2002
Net Earnings
Reconciliation
3Q 2002
EPS
GAAP Net
Earnings $57.9 $0.40
Adjustments,
net of taxes:
Add:
Amortization of
intangibles,
stock
compensation
and transaction
fees from merger
& acquisition
activity 10.7
Add: Other, net (0.5)
Less: minority
interests (0.8)
Adjusted net
earnings $67.3 $0.46
Diluted share
count 144.9 million
2004
Net Earnings
Reconciliation
FY 2004
EPS
GAAP Net
Earnings $147.0 $1.01
Adjustments,
net of taxes:
Add:
Amortization of
intangibles,
stock
compensation
and transaction
fees from
merger &
acquisition
activity 30.6
Add: facility,
real estate,
and other ---
Add: Other, net ---
Less: subscriber
settlement ---
Less: warrants ---
Less: minority
interests (3.1)
Adjusted net
earnings $174.5 $1.20
Diluted share
count 146.0 million
Sabre Holdings
Revenue
Reconciliation
FY 2004 Guidance
Low High
GAAP Revenue $2,158.1 $2,179.9
Growth % 6.0% 6.0%
Add: special
items --- ---
Adjusted
Revenue $2,158.1 $2,179.9
Growth % 8.4% 8.3%
TN Revenue
Reconciliation
FY 2004 Guidance 2Q FY 2003 Guidance
Low High Low High
GAAP Revenue 1468.5 1523.1 $1,505.0 $1,559.6
Growth % (2.4%) (2.3%)
Less: subscriber
settlement --- --- (36.5) (36.5)
Adjusted
Revenue 1,468.5 1,523.1 $1,468.5 $1,523.1
Growth % 0.0% 0.0%
Travelocity
Revenue
Reconciliation
FY 2004 Guidance FY 2003 Guidance
Low High Low High
GAAP Revenue 456.5 460.4 $373.1 $376.2
Growth % 22.4% 22.4%
Less: warrants --- --- (7.8) (7.8)
Adjusted
Revenue 456.5 460.4 $365.2 $368.3
Growth % 25.0% 25.0%
SOURCE Sabre Holdings Corporation
media relations, Michael Berman, +1-682-605-2397, or investor relations, Karen Fugate, +1-682-605-2343, both of Sabre Holdings Corporation
http://www.sabre-holdings.com