Atlanta, GA, November 9, 2011 — Travelport Limited, a leading provider of critical transaction processing for the global travel industry, today announces its financial results for the third quarter ended September 30, 2011.
Financial Summary for Third Quarter 2011:
($ in millions)
Net Revenue – Q3 2011: $509 (2010: $488)
Operating Income – Q3 2011: $51 (2010: $75)
Adjusted EBITDA – Q3 2011: $118 (2010: $135)
Financial Summary for YTD 2011:
($ in millions)
Net Revenue – YTD 2011: $1,570 (2010: $1,544)
Operating Income – YTD 2011: $196 (2010: $229)
Adjusted EBITDA – YTD 2011: $401 (2010: $430)
Net cash provided by operating activities of continuing operations – YTD 2011: $86 (2010: $103)
Further new product introduced - Travelport Smartpoint App™ and Travelport Rooms and More™
Expanded emerging markets geographic footprint
Continued to expand airline and hotel content including several merchandising agreements
Successfully completed debt restructuring with increased covenant headroom
Post Quarter End Highlights:
Signed unprecedented joint development agreement with TravelSky
Travelport Universal Desktop secured first customers in Asia and the USA
Commenting on developments, Gordon Wilson, President and CEO of Travelport, said:
―We continue to gain momentum on our commercial objectives of enhanced travel content aggregation, the deployment of new point of sale technologies for travel agencies and travel product suppliers, and expanding our geographic and customer segment footprints. I am pleased to report solid results for the quarter, with revenue up 4%, volume up 3% and Adjusted EBITDA in line with management expectations despite the uncertain economic climate in many key geographies.‖
Financial Highlights for Third Quarter 2011
Travelport’s main business is its global distribution system (GDS), which includes the Worldspan and Galileo brands and the Company’s Airline IT Solutions business.
Travelport’s Net Revenue of $1,570 million for YTD 2011 was $26 million (+2%) higher than last year due to $16 million (+1%) incremental transaction processing revenue and $10 million (+7%) incremental Airline IT Solutions revenue. Transaction processing revenue increased in Europe and Asia Pacific and was partially offset by a decrease in the Middle East and Africa. Operating Income and EBITDA were $196 million and $365 million, respectively, for YTD 2011, a decrease of 14% in Operating Income and a decrease of 5% in EBITDA compared to 2010. Adjusted EBITDA was $401 million for YTD 2011, a 7% decrease compared to 2010. Adjusted EBITDA declined $29 million (7%) primarily due to the re-introduction of the management incentive plan in 2011. Excluding the impact of the management incentive plan, Adjusted EBITDA would have been consistent with the prior year.
As previously announced, the restructuring of Travelport Holdings Limited’s, Travelport’s direct parent company, senior unsecured payment-in-kind term loans was successfully completed. In connection with the restructuring, on September 30, 2011, Travelport amended its existing credit facility pursuant to the fourth amended and restated credit agreement, which, among other things, allows for a new second lien term loan, of which $207.5 million was issued, and recorded as a non-cash distribution to Travelport Holdings Limited. Travelport also distributed $89.5 million in cash to Travelport Holdings Limited as part of the restructuring.
Interest costs of $223 million were $21 million higher for YTD 2011 due to higher interest rates arising from amendments made to the senior secured credit agreement in the fourth quarter of 2010 and certain fees and expenses incurred in September 2011 related to the fourth amended and restated credit agreement, partially offset by a reduction in interest costs as a result of the early repayment of $655 million in term loans following the sale of GTA in the second quarter of 2011.
During the nine months ended September 30, 2011, Travelport generated $86 million in net cash provided by operating activities of continuing operations, a $17 million decrease from 2010, primarily due to the decrease in earnings and higher cash interest payments net of operating working capital movements.
Travelport’s net debt was $3,157 million as of September 30, 2011, which comprised debt of $3,384 million less $90 million in cash and cash equivalents and less $137 million of restricted cash provided as collateral. 3