Sabre(US:SABR)2025-05-07 12:12Financial Performance - Total revenue for Q1 2025 was $776,617 thousand, a decrease of 1% from $782,886 thousand in Q1 2024[150] - Adjusted Net Loss from continuing operations for Q1 2025 was $(682) thousand, an improvement from $(5,739) thousand in Q1 2024[147] - Adjusted EBITDA for Q1 2025 was $149,581 thousand, compared to $142,306 thousand in Q1 2024, reflecting a year-over-year increase of 5%[147] - Operating income for Q1 2025 was $103,398 thousand, up from $98,085 thousand in Q1 2024, indicating a growth of 5%[150] - The company reported a loss from continuing operations of $35,548 thousand in Q1 2025, a significant improvement from a loss of $71,105 thousand in Q1 2024[150] Revenue Breakdown - Revenue from Travel Solutions decreased by $11,507 thousand, or 2%, while Hospitality Solutions revenue increased by $6,390 thousand, or 8%[152] - Cash used in operating activities for Q1 2025 was $(80,603) thousand, compared to $(68,090) thousand in Q1 2024, indicating a decline in cash flow[149] - Free Cash Flow for Q1 2025 was $(98,494) thousand, slightly worse than $(95,766) thousand in Q1 2024[149] Debt and Financing - Approximately 48% of the company's debt is variable, which is subject to fluctuations in interest rates, impacting current and future interest expenses[126] - As of March 31, 2025, the company's outstanding debt totaled $5.1 billion, with approximately 48% being variable debt impacted by interest rate changes[178] - The company entered into a third and fourth amendment to the Amended and Restated Credit Agreement, exchanging $775 million of existing senior secured term loans for new loans maturing on November 15, 2029[183] - On November 25, 2024, the company exchanged approximately $800 million of new senior secured notes due November 2029, with an interest rate of 10.750% per annum[184] - The company is required to pay down term loans by 50% of annual excess cash flow, with no excess cash flow payment required in 2024 or 2025[182] Cash Flow and Liquidity - The company has resources to fund liquidity requirements over the next twelve months, including a principal payment of approximately $217 million due under current debt facilities[126] - Cash and cash equivalents as of March 31, 2025, were $651.1 million, down from $724.5 million as of December 31, 2024[170] - The company expects pro forma free cash flow for the full year 2025 to exceed $200 million, influenced by normal seasonality[175] - Cash used in investing activities was $8.25 million for the three months ended March 31, 2025, compared to $27.68 million in the same period in 2024[192] - Financing activities provided $13 million in cash for the three months ended March 31, 2025, significantly lower than the $78 million provided in the same period in 2024[195] Operational Highlights - Travel Solutions reported a 2.1% decrease in total direct billable bookings, from 98,459 in Q1 2024 to 96,356 in Q1 2025[140] - Direct billable bookings for Air decreased by 3.2%, from 85,170 in Q1 2024 to 82,438 in Q1 2025[140] - IT solutions passengers boarded decreased by 1.3%, from 167,926 in Q1 2024 to 165,826 in Q1 2025[140] - Hospitality Solutions saw a 5.9% increase in Central Reservations System transactions, rising from 29,051 in Q1 2024 to 30,769 in Q1 2025[140] - The travel ecosystem has shifted, leading to changing needs among airline, hotel, and agency customers, which the company is addressing through strategic priorities for sustainable growth[125] Strategic Initiatives - The company expects to close the Hospitality Solutions Sale for approximately $1.1 billion in cash by the end of Q3 2025, with net proceeds of about $960 million expected to be used to repay outstanding indebtedness[127] - The company plans to manage and report its business in one reportable segment following the closing of the Hospitality Solutions Sale[127] - The company has established strategic priorities to achieve sustainable long-term growth amid changing market conditions[172] - The company plans to continue monitoring liquidity levels and may take additional steps if necessary to manage through economic headwinds[174] Tax and Regulatory Matters - The company expects to be a U.S. federal cash taxpayer in 2025, benefiting from the utilization of net operating loss (NOL) carryforwards and tax credits[177] - The company recognized an income tax benefit of $57 million for the three months ended March 31, 2025, representing an effective tax rate of 265%, compared to an income tax expense of $3 million in the prior year[169] - The company monitors digital services taxes (DST) legislation in various jurisdictions, impacting its operations and financial reporting[177] Cost Management - Selling, general and administrative expenses increased by $1.9 million, or 1%, to $143.3 million for the three months ended March 31, 2025, compared to $141.4 million in the prior year[161] - The global capital markets experienced increased volatility throughout 2024, affecting the company's refinancing efforts and leading to higher interest expenses[179] - The company incurred third-party fees of approximately $10 million related to the Term Loan B Amendments, which were expensed in the consolidated statements of operations[183] - The company incurred a $10 million contribution to its defined benefit pension plan during the three months ended March 31, 2025[193] - Capital expenditures for the three months ended March 31, 2025, amounted to $18 million, primarily for software development[194] Market Conditions - The company has not experienced any material changes in market risk since December 31, 2024[201] - There were no off-balance sheet arrangements during the three months ended March 31, 2025[196]