Sabre(SABR) - 2024 Q2 - Quarterly Report

Travel Solutions Performance - Travel Solutions reported direct billable bookings for Air at 76,225, a decrease of 0.9% from 76,944 in the previous year[94]. - Direct billable bookings for LGS increased by 9.4% to 14,755 from 13,485 year-over-year[94]. - Total direct billable bookings for Travel Solutions reached 90,980, reflecting a 0.6% increase compared to 90,429 in the same period last year[94]. - IT solutions passengers boarded decreased by 2.0% to 168,906 from 172,337 year-over-year[94]. - Central Reservations System transactions for Hospitality Solutions increased by 3.9% to 33,156 from 31,916 year-over-year[94]. Financial Performance - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $(69,760) million, compared to$(129,278) million for the same period in 2023, representing a 46% improvement[98]. - Adjusted Net Loss from continuing operations for the six months ended June 30, 2024, was $(24,220) million, a decrease of 79$(115,241) million in the same period of 2023[98]. - Adjusted EBITDA for the three months ended June 30, 2024, was $128,694 million, up 76$73,049 million in the same period of 2023[98]. - Operating income for the three months ended June 30, 2024, was $60,855 million, compared to a loss of$(42,183) million in the same period of 2023[98]. - Adjusted Operating Income for the three months ended June 30, 2024, was $106,989 million, significantly higher than$46,095 million in the same period of 2023[100]. - Adjusted Operating Income for the six months ended June 30, 2024, was $224,758, compared to a loss of$116,486 in the same period of 2023, reflecting a significant improvement[104]. - Adjusted EBITDA for the six months ended June 30, 2024, reached $271,000, up from a loss of$116,067 in the prior year[104]. - Operating income for the six months ended June 30, 2024, was $158,940, compared to a loss of$180,875 in the same period of 2023[104]. Cost Management - The company expects to achieve annual operating expense reductions of approximately $200 million due to a cost reduction plan initiated in Q2 2023[82]. - The company incurred restructuring costs of$82 million related to the cost reduction plan since Q2 2023[82]. - Selling, general and administrative expenses decreased by $13,426,000, or 7$165,637,000, mainly due to reduced restructuring costs[115]. - Technology costs decreased by $65,011,000, or 23$219,268,000, primarily due to cost reduction initiatives and cloud migrations[113]. - Technology costs decreased by $114,158 or 21$441,559 for the six months ended June 30, 2024, primarily due to cost reduction initiatives[122]. Debt and Interest Expenses - Approximately 42% of the company's debt is variable, which is sensitive to interest rate fluctuations[84]. - Interest expense, net for the three months ended June 30, 2024, was $129,294 million, compared to$106,134 million in the same period of 2023, indicating rising debt servicing costs[98]. - Interest expense for the six months ended June 30, 2024, was $(254,041), indicating a substantial financial burden[104]. - Interest expense increased by$23,160,000, or 22%, to $129,294,000, attributed to additional interest from financing activities[116]. - Interest expense increased by$48 million, or 23%, totaling $254,041 for the six months ended June 30, 2024, due to additional interest from financing activities[126]. Revenue Growth - Total revenue for the three months ended June 30, 2024, was$767,241,000, representing a 4% increase from $737,529,000 in the same period of 2023[109]. - Travel Solutions revenue increased by$24 million, or 4%, to $695,050,000, driven by a 4$7 million, or 9%, to $83,238,000, primarily due to a 4$1,550,127, an increase of $69,903 or 5$1,480,224 for the same period in 2023[120]. - Travel Solutions revenue increased by $60 million, or 4$67 million increase in transaction-based distribution revenue[120]. - Hospitality Solutions revenue rose by $12 million, or 8$13 million increase in SynXis Software and Services revenue[120]. Cash Flow and Liquidity - Cash used in operating activities for the six months ended June 30, 2024, was $(39,959), an improvement from$(99,188) in the same period of 2023[107]. - Free Cash Flow for the six months ended June 30, 2024, was $(87,753), compared to$(147,378) in the prior year, indicating better cash management[107]. - Cash used in operating activities was $40 million for the six months ended June 30, 2024, an improvement of$59 million compared to the same period in 2023[144]. - Cash provided by financing activities was $54 million for the six months ended June 30, 2024, including proceeds of$150 million from the issuance of 2026 Exchangeable Notes[146]. - Cash and cash equivalents as of June 30, 2024, were $612,614, a decrease from$648,207 as of December 31, 2023[130]. Restructuring and Future Outlook - The company has experienced material headwinds in financial results for 2023 and into Q2 2024, with air distribution volume growth leveling off[82]. - The company anticipates being substantially complete with restructuring activities associated with the cost reduction plan by the end of 2024[82]. - The company expects to generate positive free cash flow for the full year 2024, although its ability to generate cash is subject to various external factors[132]. - The company expects to be a U.S. federal cash taxpayer in 2024, benefiting from the usage of net operating losses (NOLs) and certain tax credits[132]. Miscellaneous - The company recorded $8 million in digital services tax (DST) during Q2 2024, with$6 million being retroactive to prior periods[132]. - The company had no off-balance sheet arrangements during the six months ended June 30, 2024[149]. - There were no material changes to market risk exposure since December 31, 2023, as previously disclosed[153].