Nov. 13, 2021
How to find the report?
Google -> Sabrs investor relationship -> Find Q3 earnings report
My notes | Highlights
Sabre highlights commercial momentum and focused strategy to capitalize on growth opportunities; reports third quarter 2021 results
Third quarter 2021 business overview:
- Entered into agreement to sell AirCentre, Sabre's airline operations portfolio, to narrow strategic focus and strengthen liquidity position
- Completed successful migration of GOL Linhas Aéreas, Brazil's largest domestic airline, onto the SabreSonic passenger service system
- Announced SabreSonic win with Biman Bangladesh Airlines and three Radixx low cost carrier wins
- Increased average booking fee sequentially versus the first and second quarters of 2021 due to more favorable bookings mix
- Progressed cloud migration and decommissioned almost 2,000 legacy servers
- Ended the quarter with cash balance of $1.0 billion
Third quarter 2021 summary:
- Earnings metrics significantly improved versus prior year
- Third quarter revenue totaled $441 million
- Net loss attributable to common stockholders of $241 million, or $0.75 per share
- Adjusted EPS totaled ($0.50)
SOUTHLAKE, Texas – November 2, 2021 – Sabre Corporation ("Sabre" or the "Company") (NASDAQ: SABR) today announced financial results for the quarter ended September 30, 2021.
"Over the course of this year, our executive leadership team has been taking a critical look at Sabre, challenging norms and re-examining the way we do business. Our review focused on industry trends and technology, current and future capabilities, desired growth and returns, ongoing investment requirements and financial health and flexibility," said Sean Menke, President and CEO. "With our strong belief in a broad global travel recovery, we will narrow our product offerings and intensify focus on our core - the customer revenue-generating retailing, distribution and fulfillment aspects of our business - with the goal to accelerate the unlocking of shareholder value. The sale of AirCentre is an illustration of steps we are taking to achieve our objectives. We are excited to move forward as a more focused technology company with meaningful growth opportunities."
Q3 2021 Financial Summary
2020 third quarter 278 million | 2021 third quarter 441 million third quarter | 58% improvement
Sabre consolidated third quarter revenue totaled $441 million, a 58% improvement versus revenue of $278 million in the third quarter of 2020. The increase in revenue was driven by an increase in global air, hotel and other travel bookings due to continued recovery from the COVID-19 pandemic.
Operating loss was $157 million, a significant improvement versus an operating loss of $233 million in the third quarter of 2020. The improvement in operating results was driven by increased revenue due to the continued recovery from the COVID-19 pandemic, lower depreciation and amortization and a decrease in the provision for expected credit losses. These impacts were partially offset by increased Travel Solutions incentive expenses, Hospitality Solutions transaction-related costs and technology hosting expenses due to volume recovery trends, increased labor and professional service expenses, including internal investments in risk and security, business systems and consulting to support our business strategy, a $14 million increase in recognized stock-based compensation expense primarily due to previously granted performance-based units and a $9 million increase in litigation costs.
Net loss attributable to common stockholders totaled $241 million, an improvement versus a net loss of $310 million in the third quarter of 2020. Diluted net loss attributable to common stockholders per share totaled $0.75, versus diluted net loss attributable to common stockholders per share of $1.06 in the third quarter of 2020. The improvement in net income attributable to common stockholders was driven by the items impacting operating loss described above and a $12 million reduction in pension-related expense, partially offset by lower benefit for income taxes and an additional $3 million loss on extinguishment of debt.
Adjusted EBITDA was negative $55 million, an improvement versus Adjusted EBITDA of negative $124 million in the third quarter of 2020. The improvement in Adjusted EBITDA was driven by increased revenue due to the continued recovery from the COVID-19 pandemic and a decrease in the provision for expected credit losses. These impacts were partially offset by increased Travel Solutions incentive expenses, Hospitality Solutions transaction-related costs and technology hosting expenses due to volume recovery trends, increased labor and professional service expenses, including internal investments in risk and security, business systems and consulting to support our business strategy and increased litigation costs.
Adjusted Operating Loss was $103 million, an improvement versus Adjusted Operating Loss of $197 million in the third quarter of 2020. The improvement in operating results was driven by the items impacting Adjusted EBITDA above and lower depreciation and amortization.
Sabre reported Adjusted EPS of ($0.50), an improvement versus ($0.81) in the third quarter of 2020.
With regards to Sabre's third quarter 2021 cash flows (versus prior year):
• Cash used in operating activities totaled $70 million (vs. $192 million)
• Cash used in investing activities totaled $13 million (vs. $9 million)
• Cash provided by financing activities totaled $8 million (vs. $566 million)
• Capitalized expenditures totaled $13 million (vs. $9 million)
Free Cash Flow was negative $83 million, an improvement versus Free Cash Flow of negative $201 million in the third quarter of 2020.
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