Sabre announces first quarter 2022 financial results; highlights volume and financial improvements.
First quarter 2022 business highlights:
* The global travel recovery accelerated each month since January and broadened
* Geographically Corporate and international travel rebounded sharply, driving improved mix and increased revenue per booking
* Closed the previously-announced agreement to sell AirCentre airline operations portfolio to CAE for $392 million, supporting the streamlining of the product portfolio and creating greater focus on maximizing new revenue opportunities
* The technology transformation, including mainframe offload and migration to Google Cloud, moved forward and remained solidly on track to reach stated goals by the end of 2024
* Ended the quarter with cash balance of $1.2 billion First quarter 2022 summary:
* First quarter revenue totaled $585 million
* Net income attributable to common stockholders of $42 million and diluted net
* income attributable to common stockholders per share of $0.12
* Adjusted EPS totaled ($0.29)
SOUTHLAKE, Texas - Sabre Corporation ('Sabre' or the 'Company') (NASDAQ: SABR) today announced financial results for the quarter ended March 31, 2022.
'We are encouraged by the strengthening trends in our business and have seen consistent sequential volume improvements in key metrics week over week since mid-January 2022. After a slow start in January due to the Omicron variant, the travel recovery accelerated sharply and bookings in April ended at the highest level of recovery versus 2019 since the start of the COVID-19 pandemic. The overall improvement in each global geographic region has been particularly positive, supported by a significant return of more profitable international and corporate travel,' said Sean Menke, Chair of the Board and CEO.
'In addition, we continue to make progress toward our technology transformation goals, which we expect to deliver significant savings and expand revenue opportunities.'
Q1 2022 Financial Summary
Sabre consolidated first quarter revenue totaled $585 million, compared to $327 million in the first quarter of 2021. 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 and $24 million in previously deferred IT Solutions revenue recognized in the first quarter due to a change in facts and circumstances associated with an IT Solutions customer located in Eastern Europe.
Operating loss was $80 million, versus operating loss of $203 million in the first quarter of 2021. The improvement in operating results was driven by the items impacting revenue described above and lower depreciation and amortization. These impacts were partially offset by increased Travel Solutions incentive expenses and Hospitality Solutions transaction-related costs, as well as total company technology hosting expenses due to volume recovery trends and expected temporary costs resulting from our cloud migration efforts, an increase in credit losses, and an increase in legal costs due to ongoing litigation.
Net income attributable to common stockholders totaled $42 million, versus a net loss of $266 million in the first quarter of 2021. Diluted net income attributable to common stockholders per share totaled $0.12, versus diluted net loss attributable to common stockholders per share of $0.84 in the first quarter of 2021. The improvement in net income attributable to common stockholders was driven by the items impacting operating loss described above, as well as a $121million after-tax gain on sale of AirCentre, lower interest expense due to the maturation of interest rate swaps in the fourth quarter of 2021, and lower tax expense, partially offset by a $4 million loss on extinguishment of debt.
Adjusted EBITDA was $5 million, versus Adjusted EBITDA of negative $110 million in the first quarter of 2021. The improvement in Adjusted EBITDA was driven by increased revenue due to the continued recovery from the COVID-19 pandemic and $24 million in previously deferred IT Solutions revenue recognized in the first quarter due to a change in facts and circumstances associated with an IT Solutions customer located in Eastern Europe. These impacts were partially offset by increased Travel Solutions incentive expenses and Hospitality Solutions transaction related costs, as well as total company technology hosting expenses due to volume recovery trends and expected temporary costs resulting from our cloud migration efforts, increased selling, general and administrative expenses, and an increase in credit losses.
Adjusted Operating Loss was $29 million, versus Adjusted Operating Loss of $167 million in the first quarter of 2021. The improvement in operating results was driven by the items impacting
Adjusted EBITDA above and by lower depreciation and amortization.
Sabre reported Adjusted EPS of ($0.29), versus ($0.72) in the first quarter of 2021.
With regards to Sabre's first quarter 2022 cash flows (versus prior year):
Cash used in operating activities totaled $139 million (vs. $197 million used in)
Cash provided by investing activities totaled $375 million (vs. $8 million provided by)
Cash used in financing activities totaled $26 million (vs. $24 million used in)
Capitalized expenditures totaled $17 million (vs. $6 million)
Free Cash Flow was negative $156 million, versus Free Cash Flow of negative $204 million in
the first quarter of 2021.
Financial Highlights: See full release at:
https://investors.sabre.com/static-files/982f7c70-54a4-4af1-864b-e65e49c4b500
SABRE CORPORATION 
