Entertainment
NEW YORK (Map) -
Travelport CEO and President,
Net revenue and EBITDA from our GDS business were
Adjusted net revenue and adjusted EBITDA from Galileo were
Adjusted net revenue from Worldspan was
Net revenue and EBITDA for GTA were
Corporate and Other
Travelport incurred adjusted Corporate and Other expenses of
Prior Period Adjustments
Travelport also reported an error related to certain financial assistance
expenses effecting prior periods. Such error had an insignificant impact on
prior financial results and no impact to cash. However, Travelport decided to
restate prior periods in order to correct the presentation. As a result,
Travelport will be restating certain previously issued financial statements.
The impact of the corrections amount to approximately
Travelport Limited currently owns approximately 48% of the outstanding
equity of Orbitz Worldwide. Travelport deconsolidated the results of Orbitz
Worldwide with effect from
Conference Call/Webcast
The Company's second quarter 2008 earnings conference call will be
accessible to the media and general public via live Internet Webcast today
beginning at
About Travelport
Travelport is one of the world's largest travel conglomerates offering
broad based business services to companies operating in the global travel
industry. The company is comprised of Travelport GDS, a global distribution
system business that includes the Worldspan and Galileo brands; GTA, a group
travel and wholesale hotel business; Business Intelligence Services, a data
analysis business; and IT Services and Software, which hosts mission critical
applications and provides business solutions for major airlines. Travelport
also owns approximately 48% of Orbitz Worldwide (NYSE: OWW), a leading global
online travel company. With on-going annual revenues of approximately
Forward-Looking Statements
Certain statements in this press release constitute "forward-looking statements" that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded by, followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", "may increase", "may fluctuate" and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements.
Various risks that could cause future results to differ from those
expressed by the forward-looking statements included in this press release
include, but are not limited to: our ability to service our outstanding
indebtedness and the impact such indebtedness may have on the way we operate
our business; factors affecting the level of travel activity, particularly air
travel volume, including security concerns, natural disasters and other
disruptions; general economic and business conditions in the markets in which
we operate, including fluctuations in currencies; pricing, regulatory and
other trends in the travel industry; our ability to obtain travel supplier
inventory from travel suppliers, such as airlines, hotels, car rental
companies, cruise lines and other travel suppliers; risks associated with
doing business in multiple countries and in multiple currencies; maintenance
and protection of our information technology and intellectual property; our
ability to successfully integrate acquired businesses and realize anticipated
benefits of past and future acquisitions, including the Worldspan acquisition;
the impact on supplier capacity and inventory resulting from consolidation of
the airline industry; financing plans and access to adequate capital on
favorable terms; our ability to achieve expected cost savings and operational
synergies from our re-engineering efforts and the Worldspan acquisition; our
ability to successfully complete the consolidation of our system
infrastructure and web and database servers for our Galileo and Worldspan GDS
operations in
This release includes certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, important information regarding such measures is contained on pages 7 through 9 of this release.
TRAVELPORT LIMITED STATEMENTS OF OPERATIONS (in millions) (UNAUDITED) As Restated As Restated Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2007 2008 2007 2008 Net revenue $715 $703 $1,381 $1,369 Costs and expenses Cost of revenue 285 362 565 702 Selling, general and administrative 301 158 562 341 Separation and restructuring charges 6 5 29 14 Depreciation and amortization 51 62 105 129 Other expense, net 2 - 2 - Total costs and expenses 645 587 1,263 1,186 Operating income 70 116 118 183 Interest expense, net (83) (52) (168) (138) Gain on early extinguishment of debt - 9 - 18 Income (loss) from continuing operations before income taxes and equity in losses of investments, net (13) 73 (50) 63 Provision for income taxes (8) (11) (5) (23) Equity in losses of investments, net - (3) - (10) Income (loss) from continuing operations, net of tax (21) 59 (55) 30 Loss from discontinued operations (1) - (1) - Net income (loss) $(22) $59 $(56) $30 TRAVELPORT LIMITED SEGMENT EBITDA AND RECONCILIATION OF EBITDA (in millions) (UNAUDITED) Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2007 2008 2007 2008 GDS Net revenue $408 $592 $822 $1,184 Segment EBITDA 120 164 235 330 GTA Net revenue 88 111 145 185 Segment EBITDA 26 36 25 45 Orbitz Worldwide Net revenue 235 - 447 - Segment EBITDA 26 - 49 - Corporate and other EBITDA(a) (51) (13) (86) (45) Intersegment eliminations(b) Net revenue (16) - (33) - Consolidated Totals Net revenue $715 $703 $1,381 $1,369 EBITDA $121 $187 $223 $330 - Not meaningful. (a) Other includes corporate general and administrative costs not allocated to the segments. (b) Consists primarily of eliminations related to the inducements paid by Galileo to Orbitz Worldwide. Provided below is a reconciliation of EBITDA to income/(loss) from continuing operations before income taxes and equity in losses of investments, net: Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2007 2008 2007 2008 EBITDA $121 $187 $223 $330 Interest expense, net (83) (52) (168) (138) Depreciation and amortization (51) (62) (105) (129) Income (loss) from continuing operations before income taxes and equity in losses of investments, net $(13) $73 $(50) $63Adjusted Revenue, EBITDA, and Adjusted EBITDA are non-GAAP measures and may not be comparable to similarly named measures used by other companies. We believe that these measures provide management with a more complete understanding of the underlying operating results and trends and an enhanced overall understanding of the Company's financial performance and prospects for the future. Adjusted Revenue, EBITDA and Adjusted EBITDA are not intended to be measures of liquidity or cash flows from operations nor measures comparable to net income as they do not take into account certain requirements such as capital expenditures and related depreciation, principal and interest payments and tax payments. However, they are management's primary metric for measuring business performance and are used by the Board of Directors to determine incentive compensation. Capital expenditures, which impact depreciation and amortization, interest expense and income tax expense, are reviewed separately by management. Adjusted Revenue, EBITDA and Adjusted EBITDA are disclosed so that investors may have the same tools available to management when evaluating the results of Travelport. Adjusted Revenue is defined as Revenue adjusted to exclude the impact of deferred revenue written off due to purchase accounting on the acquisition of Travelport by an affiliate of The Blackstone Group. EBITDA is defined as net income (loss) before interest, income taxes, depreciation and amortization, each of which is presented on Travelport's Statement of Operations. Adjusted EBITDA is defined as EBITDA adjusted to exclude the aforementioned impact of purchase accounting, impairment of intangibles assets, expenses incurred in conjunction with Travelport's separation from Cendant, expenses incurred to acquire and integrate Travelport's portfolio of businesses, costs associated with Travelport's restructuring efforts and development of a global on-line travel platform, non-cash equity-based compensation, and other adjustments made to exclude expenses management views as outside the normal course of operations.
TRAVELPORT LIMITED RECONCILIATION OF NET REVENUE AND EBITDA TO ADJUSTED NET REVENUE AND ADJUSTED EBITDA (in millions) (UNAUDITED) Three Months Ended June 30, 2008 Orbitz Corporate Galileo Worldspan Worldwide GTA & Other Total* Net Revenue $407 $185 $- $111 $- $703 Adjustments Total (0) - - - - (0) Adjusted Net Revenue* $407 $185 $- $111 $- $703 EBITDA $123 $41 $- $36 $(13) $187 Adjustments Impairment - - - - 0 0 Acquired / Disposed EBITDA 5 - - - - 5 Separation from Cendant and Related 0 - - - 2 2 Non-recurring Items Associated with Travelport Acquisitions 7 8 - (1) 3 16 Restructure and Related 3 1 - 1 1 5 Other - - - - (12) (12) Total 14 9 - (1) (6) 16 Adjusted EBITDA* $137 $50 $- $36 $(20) $203 Three Months Ended June 30, 2007 Orbitz Corporate Galileo Worldspan Worldwide GTA & Other Total* Net Revenue $408 $- $235 $88 $(16) $715 Adjustments Acquired / Disposed Revenue (0) 197 (235) (1) 16 (22) Separation from Cendant and Related 1 - - 0 - 1 Other - - - - - - Total 1 197 (235) (0) 16 (21) Adjusted Net Revenue* $409 $197 $- $88 $- $694 EBITDA $120 $- $26 $26 $(51) $121 Adjustments Impairment 0 - - - 0 0 Acquired / Disposed EBITDA 4 61 (26) (0) - 38 Separation from Cendant and Related 1 - - 0 3 5 Non-recurring Items Associated with Travelport Acquisitions 3 - - 3 11 17 Restructure and Related 4 - - 1 0 4 Equity based compensation - - - 0 9 9 Other - (5) - - (3) (8) Total 12 56 (26) 4 21 67 Adjusted EBITDA* $132 $56 $- $30 $(30) $188 * Totals may not calculate due to rounding. - Not meaningful. TRAVELPORT LIMITED RECONCILIATION OF NET REVENUE AND EBITDA TO ADJUSTED NET REVENUE AND ADJUSTED EBITDA (in millions) (UNAUDITED) Six Months Ended June 30, 2008 Orbitz Corporate Galileo Worldspan Worldwide GTA & Other Total* Net Revenue $819 $365 $- $185 $- $1,369 Adjustments Acquired / Disposed Revenue (0) - - - - (0) Separation from Cendant and Related 1 - - - - 1 Total 1 - - - - 1 Adjusted Net Revenue* $820 $365 $- $185 $- $1,370 EBITDA $257 $72 $- $45 $(45) $330 Adjustments Impairment - - - - 0 0 Acquired / Disposed EBITDA 7 - - - - 7 Separation from Cendant and Related 1 - - (0) 3 4 Non-recurring Items Associated with Travelport Acquisitions 11 18 - (2) 15 41 Restructure and Related 6 3 - 2 3 14 Other - - - - (20) (20) Total 25 21 - (1) 1 46 Adjusted EBITDA* $282 $93 $- $45 $(44) $376 Six Months Ended June 30, 2007 Orbitz Corporate Galileo Worldspan Worldwide GTA & Other Total* Net Revenue $822 $- $447 $145 $(34) $1,381 Adjustments Acquired / Disposed Revenue (0) 407 (447) (2) 34 (9) Separation from Cendant and Related 3 - - 2 - 5 Total 2 407 (447) 0 34 (4) Adjusted Net Revenue* $825 $407 $- $145 $- $1,377 EBITDA $235 $- $49 $25 $(86) $223 Adjustments Impairment 0 - - - 0 0 Acquired / Disposed EBITDA 6 124 (49) (1) - 80 Separation from Cendant and Related 3 - - 2 7 12 Non-recurring Items Associated with Travelport Acquisitions 3 - - 6 18 27 Restructure and Related 22 - - 2 1 24 Equity based compensation - - - 1 12 12 Other - (2) - - (3) (5) Total 34 122 (49) 9 35 151 Adjusted EBITDA* $269 $122 $- $34 $(51) $374 * Totals may not calculate due to rounding. - Not meaningful. TRAVELPORT LIMITED BALANCE SHEETS (in millions, except per share data) (UNAUDITED) As Restated December 31, 2007 June 30, 2008 Assets Current assets: Cash and cash equivalents $309 $309 Accounts receivable, net 417 504 Deferred income taxes 9 10 Other current assets 252 340 Assets of discontinued operations 36 - Total current assets 1,023 1,163 Property and equipment, net 532 518 Goodwill 1,757 1,832 Trademarks and tradenames 510 524 Other intangible assets, net 1,717 1,702 Investment in Orbitz Worldwide 366 365 Non-current deferred income taxes 3 3 Other non-current assets 242 235 Total assets $6,150 $6,342 Liabilities and shareholders' equity Current liabilities: Accounts payable $191 $228 Accrued expenses and other current liabilities 827 936 Current portion of long-term debt 17 19 Deferred income taxes - 1 Liabilities of discontinued operations 8 - Total current liabilities 1,043 1,184 Long-term debt 3,751 3,708 Deferred income taxes 261 275 Other non-current liabilities 209 171 Total liabilities 5,264 5,338 Commitments and contingencies Shareholders' equity: Common stock $1.00 par value; 12,000 shares authorized, 12,000 shares issued and outstanding - - Additional paid in capital 1,317 1,317 Accumulated deficit (594) (564) Accumulated other comprehensive income 163 251 Total shareholders' equity 886 1,004 Total liabilities and shareholders' equity $6,150 $6,342 TRAVELPORT LIMITED STATEMENTS OF CASH FLOWS (in millions) (UNAUDITED) As Restated Six Months Six Months Ended Ended June 30, 2007 June 30, 2008 Operating activities of continuing operations Net income (loss) $(56) $30 Loss from discontinued operations 1 - Loss from continuing operations (55) 30 Adjustments to reconcile net loss to net cash provided by operating activities from continuing operations Depreciation and amortization 105 129 Deferred income taxes (12) (6) Provision for bad debts 4 7 Payment of FASA liability - (17) Amortization of debt issuance costs 10 11 Non-cash charges related to tax sharing liability 6 - Gain on early extinguishment of debt - (18) Unrealized gains on interest rate derivatives - (25) Equity based compensation 13 - Equity in losses of investments, net - 10 Changes in assets and liabilities, net of effects from acquisitions and disposals Accounts receivable (3) (78) Other current assets - (6) Accounts payable, accrued expenses and other current liabilities 267 129 Other (19) (13) Net cash provided by operating activities of continuing operations 316 153 Investing activities of continuing operations Property and equipment additions (64) (46) Businesses acquired, net of cash and acquisition related payments (7) (3) Proceeds from asset sales 75 - Other 1 1 Net cash provided by (used in) investing activities of continuing operations 5 (48) Financing activities of continuing operations Principal payments on borrowings (111) (109) Issuance of common stock 2 - Net cash used in financing activities of continuing operations (109) (109) Effect of changes in exchange rates on cash and cash equivalents 4 4 Net increase in cash and cash equivalents from continuing operations 216 - Cash and cash equivalents at beginning of period 87 309 Cash and cash equivalents at end of period 303 309 Less cash of discontinued operations (1) - Cash and cash equivalents of continuing operations $302 $309 Supplemental disclosure of cash flow information Interest payments $161 $131 Income tax payments, net $16 $8 TRAVELPORT LIMITED Operating Statistics (UNAUDITED) Three Months Ended June 30, 2008 2007 Change % Change Galileo (segments in millions) Americas Segments 24.6 26.7 (2.1) (8)% International Segments 43.3 45.0 (1.7) (4)% Total Segments 67.9 71.7 (3.8) (5)% Worldspan (segments in millions) Total Segments 33.5 40.0 (6.5) (16)% Total GDS Segments (segments in millions) 101.4 111.7 (10.3) (9)% GTA (TTV in millions) Total Transaction Value $551 $486 $65 13% Six Months Ended June 30, 2008 2007 Change % Change Galileo (segments in millions) Americas Segments 51.3 55.2 (3.9) (7)% International Segments 89.1 91.3 (2.2) (2)% Total Segments 140.4 146.5 (6.1) (4)% Worldspan (segments in millions) Total Segments 69.2 84.1 (14.9) (18)% Total GDS Segments (segments in millions) 209.6 230.6 (21.0) (9)% GTA (TTV in millions) Total Transaction Value $941 $812 $129 16%
|
|