Sabre Reports Fourth Quarter and Full-year 2017 Results

  • Sabre Hospitality Solutions (CRS and other solutions)
  • 02.14.18
Sabre Corporation announced financial results for the quarter and year ended Dec. 31, 2017, showing revenue increased for both the quarter and the year and cash provided by operating activities totaled $678.0 million for the full year. "2017 was a transformational year for Sabre," said Sean Menke, Sabre president and CEO.

"We infused our leadership with fresh ideas, evolved our technology, enhanced our customer engagement strategies and found efficiencies in our SG&A and total technology investments. In the face of these significant undertakings, we delivered financial results consistent with our original guidance. Our successful close to the year reflects the hard work and commitment of the entire Sabre organization. Together, we have built a strong foundation that will help to carry our momentum forward. 
 
"Our success in 2018 will be driven by executing against the strategies we've established, underpinned by a detailed set of prioritized initiatives that are measured, tracked, and maintained by our organizational leaders. I'm seeing great focus and collaboration across our business, which gives me confidence in our ability to deliver against our objectives and drive strong results for our customers and shareholders." 
 
Q4 2017 Financial Summary 
Sabre consolidated fourth quarter revenue increased 6.3 percent to $881.9 million, compared to $829.6 million in the year-ago period. 
 
Net income attributable to common stockholders totaled $82.1 million, an increase of 234.2 percent from net income of $24.6 million in the fourth quarter of 2016. Diluted net income attributable to common stockholders per share (EPS) increased 233.3 percent to $0.30 from $0.09 in the fourth quarter of 2016. The increase in net income attributable to common stockholders is partially driven by a favorable comparison due to $31.8 million of litigation costs accrued in the year-ago period related to the U.S. Airways litigation. 
 
Fourth quarter consolidated Adjusted EBITDA was $256.7 million, a 2.7 percent increase from $249.8 million in the fourth quarter of 2016. The increase in consolidated Adjusted EBITDA is the result of Adjusted EBITDA increases at Airline and Hospitality Solutions and Travel Network, partially offset by higher Corporate product and technology costs. 
 
For the quarter, Sabre reported Adjusted Net Income from continuing operations per share (Adjusted EPS) of $0.32, an increase of 18.5 percent from $0.27 per share in the fourth quarter of 2016, partially driven by a lower effective tax rate. 
 
With regards to Sabre's fourth quarter 2017 cash flows (versus prior year): 
• Cash provided by operating activities totaled $222.1 million (vs. $266.9 million) 
• Cash used in investing activities totaled $74.6 million (vs. $27.1 million) 
• Cash used in financing activities totaled $55.8 million (vs. $143.4 million) 
• Fourth quarter Free Cash Flow was $148.5 million (vs. $193.5 million) 
 
With regard to Sabre's fourth quarter 2017 capital expenditures (versus prior year): 
• Capital expenditures totaled $73.6 million (vs. $73.4 million)
• Adjusted Capital Expenditures, which include capitalized implementation costs, totaled $86.4 million (vs. $92.2 million) 
 
During the fourth quarter of 2017, Sabre returned $49.8 million to shareholders, including $38.4 million through its regular quarterly dividend and the repurchase of 626,528 shares for approximately $11.4 million in aggregate under its share repurchase authorization. 
 
Full-Year 2017 Financial Summary 
For the full-year 2017, Sabre total consolidated revenue increased 6.7 percent to $3.598 billion, compared to $3.373 billion for the prior year. 
 
Consolidated net income attributable to common stockholders totaled $242.5 million, consistent with $242.6 million in 2016. Diluted net income attributable to common shareholders per share totaled $0.87 compared to $0.86 in 2016, an increase of 1.2 percent. 
 
Consolidated Adjusted EBITDA totaled $1,078.6 million, a 3.1 percent increase from $1,046.6 million in 2016. The increase in consolidated Adjusted EBITDA is the result of Adjusted EBITDA increases in Airline and Hospitality Solutions and Travel Network, partially offset by higher Corporate product and technology costs. 
 
For the full-year 2017, Adjusted EPS increased 6.9 percent to $1.40 from $1.31 per share in 2016. 
 
With regards to Sabre's full year 2017 cash flows (versus prior year): 
• Cash provided by operating activities totaled $678.0 million (vs. $699.4 million) 
• Cash used in investing activities totaled $317.5 million (vs. $445.8 million) 
• Cash used in financing activities totaled $356.8 million (vs. $190.0 million) 
• Full-year 2017 Free Cash Flow totaled $361.6 million (vs. $371.8 million) 
 
With regards to Sabre's full year 2017 capital expenditures (versus prior year): 
• Capital expenditures totaled $316.4 million (vs. $327.6 million) 
• Adjusted Capital Expenditures, which include capitalized implementation costs, totaled $377.2 million (vs. $411.1 million)



Related Articles
want to read more articles like this?

want to read more articles like this?

Sign up to receive our twice-a-month Watercooler and Siegel Sez Newsletters and never miss another article or news story.