SOUTHLAKE, Texas – November 2, 2016 – Sabre Corporation ("Sabre" or the "Company") (NASDAQ: SABR) today announced financial results for the quarter ended September 30, 2016.
“In the third quarter, we continued to build on our track record of delivering innovation. That said, consolidated revenue and earnings growth rates did not meet the standards we have set for the business, even as most aspects of underlying business performance remained strong,” said Tom Klein, Sabre president and chief executive officer. “For the third quarter, Airline and Hospitality Solutions revenue grew 20%, while Travel Network increased global share and grew bookings in all regions, despite modestly slower market growth than anticipated. With new agency conversions and some improvement in the macro-environment at Travel Network and continued momentum in Airline and Hospitality Solutions, we have the pieces in place to expect strong consolidated revenue and earnings growth in the fourth quarter, setting us up well as we look toward 2017."
Q3 2016 Financial Summary
Sabre consolidated third quarter revenue increased 6.9% to $839.0 million, compared to $785.0 million in the year ago period.
Net income attributable to common stockholders totaled $40.8 million, compared to $176.3 million in the third quarter of 2015, a decrease of 76.9%.
Third quarter consolidated Adjusted EBITDA was $237.9 million, a 1.6% decrease from $241.7 million in the third quarter of 2015.
For the quarter, Sabre reported diluted net income attributable to common stockholders per share of $0.14 per share compared to $0.63 in the third quarter of 2015, a decrease of 77.8%.
Adjusted net income from continuing operations per share (Adjusted EPS) decreased 6.9% to $0.27 from $0.29 per share in the third quarter of 2015.
Cash provided by operating activities totaled $168.8 million, compared to $121.7 million in the third quarter of 2015. Third quarter Free Cash Flow was $79.1 million, compared to $46.6 million in the year ago period. Capital expenditures totaled $89.6 million, compared to $75.1 million in the year ago period.
Sabre Airline and Hospitality Solutions
Third quarter Airline and Hospitality Solutions revenue increased 19.8% to $262.4 million compared to $219.0 million for the same period in 2015.
Third quarter Airline and Hospitality Solutions Adjusted EBITDA increased 11.5% to $95.1 million from $85.3 million in the prior year period.
Sabre Travel Network
Third quarter Travel Network revenue increased 2.3% to $582.4 million, compared to $569.2 million for the same period in 2015. Third quarter Travel Network Adjusted EBITDA decreased 4.9% to $219.9 million from $231.2 million in the prior year period. Travel Network global bookings increased 2.4% in the quarter, driven by growth of 6.8% in the Asia-Pacific region and modest growth in all other regions. Bookings growth was 1.6% in North America, 1.0% in EMEA and 0.6% in Latin America.
Full-Year 2016 Guidance
