Sabre Reports First Quarter 2016 Results
Sabre consolidated first quarter revenue increased 21.0% to $859.5 million with Airline and Hospitality Solutions revenue increased 16.3% to $238.4 million and Travel Network revenue increased 23.1% to $625.5 million.
SOUTHLAKE, Texas – April 28, 2016 – Sabre Corporation (NASDAQ: SABR) today announced financial results for the quarter ended March 31, 2016.
“Our solid start to the year sets us on a course to meet our full-year operational and financial objectives,” said Tom Klein, Sabre president and CEO. “Our focus on creating platforms for innovation and enabling our customers' success continues to drive our growth. The breadth of our software solutions and depth of our customer relationships uniquely positions us to continue to define and lead the travel technology industry."
Q1 2016 Financial Summary
Sabre consolidated first quarter revenue increased 21.0% to $859.5 million, compared to $710.3 million for the same period last year.
Consolidated income from continuing operations totaled $92.9 million, compared to $49.3 million in the first quarter of 2015. Consolidated Adjusted EBITDA was $287.5 million, an 18.0% increase from $243.6 million in the first quarter of 2015. The increase in consolidated Adjusted EBITDA is the result of Adjusted EBITDA increases of 17.7% in Travel Network and 16.0% in Airline and Hospitality Solutions, respectively.
For the quarter, Sabre reported income from continuing operations of $0.33 per share compared to $0.18 in the first quarter of 2015. Adjusted net income from continuing operations per share (Adjusted EPS) increased 51.9% to $0.41 from $0.27 per share in the first quarter of 2015.
Cash flow from operations totaled $140.2 million, an increase of 6.4% compared to $131.8 million in the first quarter of 2015. First quarter Free Cash Flow was $64.7 million, compared to $69.9 million in the year ago period. Adjusted Capital Expenditures totaled $95.4 million, compared to $76.2 million in the first quarter of 2015.
Sabre Airline and Hospitality Solutions
First quarter 2016 Airline and Hospitality Solutions revenue increased 16.3% to $238.4 million compared to $204.9 million for the same period in 2015. Contributing to the rise in revenue was a 45.3% increase in airline passengers boarded through the SabreSonic reservation solution.
First quarter Sabre Airline and Hospitality Solutions Adjusted EBITDA increased 16.0% to $82.9 million from $71.5 million in the prior year period.
Sabre Travel Network
First quarter Travel Network revenue increased 23.1% to $625.5 million, compared to $507.9 million for the same period in 2015. First quarter 2016 Travel Network Adjusted EBITDA increased 17.7% to $273.2 million from $232.1 million in the first quarter of 2015. Total bookings increased 27.9%, driven by the acquisition of Abacus in July 2015 and growth in all regions except Latin America. Excluding the Abacus acquisition, Travel Network global bookings increased 4.6% in the quarter, with 3.8% growth in North America, 11.7% growth in EMEA, and a decline of 2.5% in Latin America.
Business Outlook and Financial Guidance
Sabre reiterated full year 2016 guidance. Sabre continues to expect full-year revenue and Adjusted EBITDA growth to be in the mid-teens with Adjusted Net Income and Adjusted EPS growth of approximately 30%. Sabre continues to expect Free Cash Flow to approach $400 million for the full year 2016.