Sabre(US:SABR)2023-05-04 12:44Travel Solutions Performance - Travel Solutions reported Direct Billable Bookings for Air at 84,348, a 46.6% increase from 57,550 in the same period last year [151]. - Direct Billable Bookings for Lodging, Ground, and Sea (LGS) reached 12,295, reflecting a 65.5% increase from 7,428 year-over-year [151]. - Total Direct Billable Bookings for Travel Solutions increased to 96,643, up 48.7% from 64,978 in the prior year [151]. - IT Solutions recorded 165,032 Passengers Boarded, a 27.8% increase from 129,163 in the previous year [151]. - Hospitality Solutions processed 27,746 transactions through its Central Reservations System, marking a 20.5% increase from 23,028 in the same period last year [151]. Financial Performance - For the three months ended March 31, 2023, the net loss attributable to common stockholders was $104.28 million, compared to a net income of $42.06 million in the same period of 2022 [159]. - Adjusted Net Loss from continuing operations for Q1 2023 was $58.30 million, with an adjusted net loss per share of $0.18, compared to an adjusted net loss of $93.17 million and $0.29 per share in Q1 2022 [159]. - Adjusted Operating Income for Q1 2023 was $27.68 million, a significant improvement from an adjusted operating loss of $29.16 million in Q1 2022 [159]. - Adjusted EBITDA for Q1 2023 was $58.06 million, compared to $5.15 million in Q1 2022, indicating a substantial increase in operational performance [159]. - Total revenue for the three months ended March 31, 2023, was $742.7 million, a 27% increase from $584.9 million in the same period of 2022 [165]. Cost and Expenses - Total cost of revenue, excluding technology costs, increased by $84 million, or 38%, to $307.0 million, driven by higher transaction volumes and incentive considerations [168]. - Interest expense for Q1 2023 was $99.78 million, up from $61.06 million in Q1 2022, indicating increased borrowing costs [160]. - The company incurred $17.01 million in stock-based compensation expenses in Q1 2023, down from $27.61 million in Q1 2022, reflecting cost control measures [159]. - Technology costs decreased by $2.3 million, or 1%, to $271.4 million, with a notable decrease in corporate technology costs by $11.5 million, or 57% [170]. Cash Flow and Liquidity - Free Cash Flow for Q1 2023 was $(90.52) million, an improvement from $(156.49) million in Q1 2022, reflecting better cash management [161]. - The company reported cash used in operating activities of $(72.41) million for Q1 2023, compared to $(139.08) million in Q1 2022, showing a reduction in cash burn [161]. - Cash and cash equivalents as of March 31, 2023, were $817.1 million, up from $794.9 million as of December 31, 2022 [181]. - The company drew $115 million under the AR Facility on March 30, 2023, to supplement liquidity, which remained outstanding as of March 31, 2023 [181]. - Cash used in investing activities was $18 million for the three months ended March 31, 2023, primarily for capital expenditures related to software development [206]. Debt and Financing - As of March 31, 2023, the company's outstanding debt totaled $4,855 million, with approximately 28% being variable debt impacted by interest rate changes [189]. - The company anticipates further refinancing portions of its debt in 2023 and 2024, which may negatively impact interest expenses due to current interest rates [190]. - Total debt obligation as of March 31, 2023, was $6.4 billion, with $345 million due for the remainder of 2023 [208]. - The company entered into a three-year accounts receivable securitization facility of up to $200 million, borrowing $115 million under this facility on March 30, 2023 [198]. Strategic Actions - The acquisition of Conferma Limited for $62 million aims to enhance technology investments in the travel payments ecosystem [133]. - The sale of the AirCentre product portfolio generated $392 million, resulting in a pre-tax gain of approximately $192 million [135]. - The company has reinvested $245 million of proceeds from the disposition of AirCentre as of March 31, 2023, with additional reinvestments expected [193]. - Cash payments for restructuring and related costs are expected to be approximately $50 million for the full year 2023, which will affect free cash flow [185]. Tax and Regulatory - The effective tax rate for the three months ended March 31, 2023, was less than 1%, with a provision for income taxes of $2.2 million compared to a benefit of $0.6 million in the prior year [179]. - The company expects to be a U.S. federal cash taxpayer in 2023, benefiting from the usage of Net Operating Losses (NOLs) and certain tax credits [188].