0001597033false00015970332024-10-312024-10-31





UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
_____________________

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 31, 2024
_____________________
SABRE CORPORATION
(Exact name of registrant as specified in its charter)
 _____________________
Delaware 001-36422 20-8647322
(State or other jurisdiction of
incorporation or organization)		 (Commission
File Number)		 (IRS Employer
Identification No.)
3150 Sabre Drive76092
Southlake,TX
(Address of principal executive offices)(Zip Code)
(682) 605-1000
(Registrant’s telephone number, including area code)
____________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $.01 par valueSABRThe NASDAQ Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2






of this chapter).
Emerging growth company
☐
If emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐







Item 2.02Results of Operations and Financial Condition.
On October 31, 2024, Sabre Corporation (“Sabre”) issued a press release and will hold a conference call regarding its financial results for the quarter ended September 30, 2024. A copy of the press release is attached as Exhibit 99.1.
The information in this Item 2.02 of Form 8-K and the attached exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Sabre makes reference to non-GAAP financial measures in the press release. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.
 
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits
 
Exhibit
Number		  Description
 99.1
104
Cover Page Interactive Data File - formatted as Inline XBRL.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 Sabre Corporation
   
Dated:October 31, 2024By:/s/ Michael Randolfi
 Name:Michael Randolfi
 Title:Executive Vice President and Chief Financial Officer




sabrelogoa73a.jpg

Sabre reports continued financial improvement in third quarter 2024


Business highlights:
•Accelerated air distribution bookings in Q3 from solid corporate demand and recent commercial wins, driving 5% growth in Distribution revenue
•Generated cash from operations of $28 million and achieved our positive free cash flow objective for Q3
•Launched SabreMosaicTM, a next-generation offer-and-order platform, and announced key commercial partnerships with Virgin Australia and Riyadh Air
•Expanded and renewed partnerships with large customers, including Delta, WestJet, TAP Air Portugal, and AirSerbia
•Delivered operating income of $6 million from Hospitality Solutions in Q3; on track to achieve full year Adjusted EBITDA target

Third quarter 2024 financial results:
•Third quarter revenue of $765 million, up 3% from Q3'23
•Operating income of $70 million and operating margin of 9%, up 2 percentage points from Q3'23
•Net loss attributable to common stockholders of $63 million, and diluted net loss per share attributable to common stockholders of $0.16
•Adjusted EBITDA(1) of $131 million
•Ended quarter with cash balance of $690 million




SOUTHLAKE, Texas – [October 31, 2024] – Sabre Corporation ("Sabre" or the "Company") (NASDAQ: SABR) today announced financial results for the quarter ended September 30, 2024.






1


“In the third quarter, Sabre delivered solid financial results across both segments of our business. We reported continued revenue growth and margin expansion that drove double-digit improvements in Adjusted EBITDA when compared to last year, as well as positive free cash flow. These results reflect the progress we are making against our strategic and financial priorities. I commend our team members for their dedication to our customers, and for making impressive progress against our six growth strategies.

Ekert continued, “Sabre is a different company today. We are delivering innovative products such as SabreMosaic, designed to replace and modernize the traditional PSS, and Retail Studio, the next generation of hotel retailing. I am excited about the momentum we are building in our business and am confident in our ability to achieve long-term success.”


Q3 2024 Financial Summary

Consolidated third quarter revenue totaled $765 million, compared to $740 million in the third quarter of 2023. Revenue growth was driven by positive performance in both Travel Solutions and Hospitality Solutions, including an increase in global air, hotel, and other travel bookings, and favorable rate impacts from travel supplier mix.

Operating income totaled $70 million versus operating income of $52 million in the third quarter of 2023. The improvement in operating results was driven by the items impacting revenue described above, a decrease in technology expenses due to cost savings related to our cloud migrations, lower labor and professional services costs and a decrease in restructuring charges, and lower depreciation and amortization. These positive impacts were partially offset by increased Travel Solutions incentive expenses and higher indirect tax expense.

Net loss attributable to common stockholders totaled $63 million, versus net loss attributable to common stockholders of $212 million in the third quarter of 2023. Diluted net loss per share attributable to common stockholders totaled $0.16, versus diluted net loss per share attributable to common stockholders of $0.61 in the third quarter of 2023. The decrease in the net loss attributable to common stockholders in the third quarter of 2024 was driven primarily by a loss on the extinguishment of debt of $121 million as a result of refinancing activity that occurred in the third quarter of 2023, the items impacting operating income described above, and a $16 million improvement in realized and unrealized gains and losses from our investments in securities, partially offset by higher interest expense.


2


Adjusted EBITDA was $131 million, versus Adjusted EBITDA of $110 million in the third quarter of 2023. The improvement in Adjusted EBITDA was driven by revenue growth due to an increase in global air, hotel, and other travel bookings and favorable rate impacts from travel supplier mix, lower technology expenses due to cost savings related to our cloud migrations, and a decrease in labor and professional services expenses. These impacts were partially offset by increased Travel Solutions incentive expenses.

Adjusted Operating Income was $107 million, versus Adjusted Operating Income of $84 million in the third quarter of 2023. The improvement in operating results was driven by the items impacting Adjusted EBITDA described above and by lower depreciation and amortization.

Sabre reported Adjusted EPS(1) of ($0.04), versus ($0.06) in the third quarter of 2023.

With regards to Sabre's third quarter 2024 cash flows (versus prior year):
•Cash provided by operating activities totaled $28 million (vs. $59 million)
•Cash provided by investing activities totaled $35 million (vs. $19 million used in)
•Cash used in financing activities totaled $8 million (vs. $143 million)
•Capitalized expenditures totaled $20 million (vs. $20 million)

Free Cash Flow(1) was $8 million, versus Free Cash Flow of $39 million in the third quarter of 2023.

3


Financial Highlights
(in thousands, except for EPS; unaudited):		Three Months Ended September 30,Nine Months Ended September 30,
20242023% Change (B/W)20242023% Change (B/W)
Total Company:
Revenue$764,714$740,4613 $2,314,841$2,220,6854 
Operating Income$70,127$52,20134 $229,067$9,8052,236 
Operating Margin9.2%7.0%9.9%0.4%
Net loss attributable to common stockholders$(62,818)$(211,848)70 $(204,061)$(445,406)54 
Diluted net loss per share attributable to common stockholders (EPS)$(0.16)$(0.61)74 $(0.53)$(1.33)60 
Net Loss Margin(8.2)%(28.6)%(8.8)%(20.1)%
Adjusted EBITDA(1)
$130,619$110,16819 $401,619$241,27966 
Adjusted EBITDA Margin(1)
17.1%14.9%17.3%10.9%
Adjusted Operating Income(1)
$107,399$83,68128 $332,157$157,451111 
Adjusted Net Loss(1)
$(16,863)$(20,110)16 $(41,083)$(135,352)70 
Adjusted EPS(1)
$(0.04)$(0.06)33 $(0.11)$(0.40)73 
Cash provided by (used in) operating activities$27,809$59,407(53)$(12,150)$(39,781)69 
Cash provided by (used in) investing activities$34,576$(19,086)281 $(13,518)$(80,631)83 
Cash (used in) provided by financing activities$(8,075)$(142,878)94 $46,049$(72,518)164 
Capitalized expenditures$(20,258)$(20,420)1 $(68,052)$(68,610)1 
Free Cash Flow(1)
$7,551$38,987(81)$(80,202)$(108,391)26 
Net Debt (total debt, less cash and cash equivalents)$4,485,690$4,353,836
Travel Solutions:
Revenue$691,300$671,9293 $2,099,983$2,020,1314 
Operating Income$161,036$141,57714 $493,033$347,16642 
Adjusted EBITDA(1)
$179,746$162,13911 $548,371$413,48933 
Adjusted Operating Income(1)
$161,466$142,08914 $494,892$348,56042 
Distribution Revenue$550,996$524,8015 $1,673,848$1,581,0926 
Total Bookings92,79689,4604 282,235276,5322 
Air Bookings78,64876,0553 240,043237,3471 
Lodging, Ground and Sea Bookings14,14813,4056 42,19239,1858 
IT Solutions Revenue$140,304$147,128(5)$426,135$439,039(3)
Passengers Boarded177,272178,036— 514,104517,500(1)
Hospitality Solutions:
Revenue$83,997$78,5817 $246,054$229,0647 
Operating Income (Loss)$5,901$1075,415 $13,718$(10,424)232 
Adjusted EBITDA(1)
$10,636$6,36367 $29,077$7,861270 
Adjusted Operating Income (Loss)(1)
$5,901$1075,415 $13,718$(10,424)232 
Central Reservation System Transactions34,51733,7902 96,72493,4524 
(1)Indicates non-GAAP financial measure; see descriptions and reconciliations below.

4


Travel Solutions

Third quarter 2024 results (versus third quarter 2023):
•Travel Solutions revenue increased 3% to $691 million driven primarily by an increase in global air, hotel, and other travel bookings and favorable rate impacts from travel supplier mix.
•Distribution revenue increased by $26 million, or 5%, to $551 million driven by an increase in bookings and an increase in average booking fee due to a favorable shift in bookings mix.
◦Global bookings, net of cancellations, totaled 93 million, an increase of 4% from third quarter 2023 levels.
◦Average booking fee totaled $5.94, a 1% improvement versus $5.87 in the third quarter of 2023.
•IT Solutions revenue decreased by $7 million, or 5%, to $140 million driven by the impact of de-migrations, partially offset by the growth in passengers boarded from existing partners and other revenue.
•Operating income totaled $161 million, versus operating income of $142 million in the third quarter of 2023. The improvement in operating results was driven by increased revenue, lower technology expenses, lower labor and professional services expenses, and lower depreciation and amortization, partially offset by increased incentive expenses.

Hospitality Solutions

Third quarter 2024 results (versus third quarter 2023):
•Hospitality Solutions revenue increased by $5 million, or 7%, to $84 million. The higher revenue was due to favorable mix within our customer base and an increase in central reservation system transactions driven by new customer deployments.
◦Central reservation system transactions increased 2% to 35 million.
•Operating income totaled $6 million, versus an operating income that was essentially break-even in the third quarter of 2023. The improvement in operating results was primarily driven by increased revenue.
•Adjusted EBITDA in the third quarter was $11 million, the highest Adjusted EBITDA in five years, and represents a $4 million year-over-year improvement.





5


Business and Financial Outlook

With respect to the fourth quarter and full-year 2024 financial outlook below; see "Note on Non-GAAP Financial Measures" for additional information:

•Fourth quarter Adjusted EBITDA guidance consists of expected net loss attributable to common stockholders of approximately $64 million; less the expected impact of acquisition-related amortization of approximately $10 million; expected stock-based compensation expense of approximately $15 million; expected other costs including litigation, acquisition-related costs, and other foreign non-income tax matters and foreign exchange gains and losses of $4 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $17 million; expected interest expense, inclusive of amortization of issuance costs and debt discounts net of approximately $126 million; and expected provision for income taxes of approximately $8 million.
•Fourth quarter free cash flow guidance consists of the expected cash from operating activities of $96 million, less additions to property and equipment of approximately $15 million.
•Full-year Adjusted EBITDA guidance consists of full-year expected net loss attributable to common stockholders of approximately $269 million; less the expected impact of acquisition-related amortization of approximately $38 million; expected stock-based compensation expense of approximately $56 million; expected other costs including litigation, acquisition-related costs, and other foreign non-income tax matters and foreign exchange gains and losses of $26 million; expected depreciation and amortization of property and equipment and amortization of capitalized implementation costs of approximately $86 million; expected interest expense, inclusive of amortization of issuance costs and debt discounts net of approximately $507 million; loss on extinguishment of debt of $38 million; expected restructuring and other expenses of $10 million and expected provision for income taxes of approximately $23 million.










6


Fourth Quarter and Full Year 2024 Financial Outlook

Sabre's fourth quarter and full year 2024 outlook is set forth below:

Q4 2024FY 2024
Revenue~$715M
~$3.03B
Adjusted EBITDA~$115M
~$515M
Free Cash Flow>$80M
Positive


Conference Call

Sabre will conduct its third quarter 2024 investor conference call today at 9:00 a.m. ET. The live webcast and accompanying slide presentation can be accessed via the Investor Relations section of our website, investors.sabre.com. A replay of the event will be available on the website for at least 90 days following the event.

About Sabre

Sabre Corporation is a software and technology company that takes on the biggest opportunities and solves the most complex challenges in travel. The Company connects travel suppliers and buyers around the globe and across the ecosystem through innovative products and next-generation technology solutions. Sabre harnesses speed, scale and insights to build tomorrow’s technology today – empowering airlines, hoteliers, agencies and other partners to retail, distribute and fulfill travel worldwide. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world. For more information visit  www.sabre.com.




7


Website Information

Sabre routinely posts important information for investors on the Investor Relations section of its website, investors.sabre.com, on its LinkedIn account, and on its X account, @Sabre_Corp. The Company intends to use the Investor Relations section of its website, its LinkedIn account, and its X account as a means of disclosing material, non-public information and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of Sabre's website, its LinkedIn account and its X account, in addition to following its press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, Sabre's website, its LinkedIn account or its X account is not incorporated by reference into, and is not a part of, this document.

Supplemental Financial Information

In conjunction with today’s earnings report, a file of supplemental financial information will be available on the Investor Relations section of our website, investors.sabre.com.

Industry Data

This release contains industry data, forecasts and other information that Sabre obtained from industry publications and surveys, public filings and internal company sources, and there can be no assurance as to the accuracy or completeness of the included information. Statements as to Sabre's ranking, market position, bookings share and market estimates are based on independent industry publications, government publications, third-party forecasts and management’s estimates and assumptions about our markets and our internal research. The company has not independently verified this third-party information nor has it ascertained the underlying economic assumptions relied upon in those sources, and cannot assure you of the accuracy or completeness of this information.

Note on Non-GAAP Financial Measures

This press release includes unaudited non-GAAP financial measures, including Adjusted Operating Income, Adjusted Net Loss from continuing operations ("Adjusted Net Loss"), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Loss from continuing operations per share ("Adjusted EPS"), Free Cash Flow and the ratios based on these financial measures. In addition, we provide certain forward guidance with respect to Adjusted EBITDA and Free Cash Flow. We do not provide reconciliations of these forward-looking non-GAAP financial measures

8


to the respective GAAP metrics as we are unable to predict the components of the non-GAAP adjustments contained in the guidance with reasonable certainty and without unreasonable effort; however, see "Business and Financial Outlook" for additional information including estimates of certain components of the non-GAAP adjustments contained in the guidance.

We present non-GAAP measures when our management believes that the additional information provides useful information about our operating performance. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. See “Non-GAAP Financial Measures” below for an explanation of the non-GAAP measures and “Tabular Reconciliations for Non-GAAP Measures” below for a reconciliation of the non-GAAP financial measures to the comparable GAAP measures.

Forward-Looking Statements

Certain statements herein are forward-looking statements about trends, future events, uncertainties and our plans and expectations of what may happen in the future. Any statements that are not historical or current facts are forward-looking statements. In many cases, you can identify forward-looking statements by terms such as "guidance," "outlook," "target," "expect," "anticipate," "on track," "continue," "believe," "momentum," "position," "continue," "progress," "confident,", "trend," "plan," "recurring," "trajectory," "pipeline," "opportunity," "potential," "positioned," "benefit," "goal," "confident," "indicate," "optimistic," “will,” "forecast," "strategy," "estimate," "project," “may,” “should,” “would,” “intend," or the negative of these terms, where applicable, or other comparable terminology. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Sabre’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. The potential risks and uncertainties include, among others, dependency on transaction volumes in the global travel industry, particularly air travel transaction volumes, the timing, implementation and effects of our growth strategies and technology transformation, the completion and effects of travel platforms, exposure to pricing pressure in the Travel Solutions business, changes affecting travel supplier customers, maintenance of the integrity of our systems and infrastructure and the effect of any security incidents, our ability to recruit, train and retain employees, competition in the travel distribution industry and solutions industry, failure to adapt to technological advancements, implementation of software solutions, implementation and effects of new, amended or renewed agreements and strategic partnerships, dependence on establishing, maintaining and renewing

9


contracts with customers and other counterparties and collecting amounts due to us under these agreements, dependence on relationships with travel buyers, the ability to achieve our cost savings and efficiency goals and the effects of these goals, our collection, processing, storage, use and transmission of personal data and risks associated with PCI compliance, the effects of cost savings initiatives, the effects of new legislation or regulations or the failure to comply with regulations or other legal requirements, use of third-party distributor partners, the financial and business results and effects of acquisitions and divestitures of businesses or business operations, reliance on the value of our brands, reliance on third parties to provide information technology services and the effects of these services, the effects of any litigation, regulatory reviews and investigations, adverse global and regional economic and political conditions, risks related to global conflicts, risks arising from global operations, risks related to our significant amount of indebtedness, including increases in interest rates and our ability to refinance our debt, and tax-related matters.

More information about potential risks and uncertainties that could affect our business and results of operations is included in the "Risk Factors" and “Forward-Looking Statements” sections in our Quarterly Report on Form 10-Q filed with the SEC on October 31, 2024, in our Annual Report on Form 10-K filed with the SEC on February 15, 2024 and in our other filings with the SEC. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, outlook, guidance, results, actions, levels of activity, performance or achievements. Readers are cautioned not to place undue reliance on these forward-looking statements. Unless required by law, Sabre undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.


___________________

(1)     Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow are non-GAAP measures. See the appendix to this release for a discussion of non-GAAP financial measures, including reconciliations to the most closely correlated GAAP measure.

Contacts:
MediaInvestors
Kristin HaysBrian Roberts
kristin.hays@sabre.combrian.roberts@sabre.com
sabrenews@sabre.comsabre.investorrelations@sabre.com


10


SABRE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Revenue $764,714 $740,461 $2,314,841 $2,220,685 
Cost of revenue, excluding technology costs322,257 294,120 964,832 917,532 
Technology costs211,284 243,404 652,843 799,121 
Selling, general and administrative161,046 150,736 468,099 494,227 
Operating income70,127 52,201 229,067 9,805 
Other expense:
Interest expense, net(127,669)(119,372)(381,710)(325,290)
Loss on extinguishment of debt, net— (121,120)(37,994)(108,577)
Equity method income430 512 1,859 1,394 
Other, net879 (11,548)(347)8,084 
Total other expense, net(126,360)(251,528)(418,192)(424,389)
Loss from continuing operations before income taxes(56,233)(199,327)(189,125)(414,584)
Provision for income taxes6,900 8,462 14,598 16,570 
Loss from continuing operations(63,133)(207,789)(203,723)(431,154)
Loss from discontinued operations, net of tax— (116)— (517)
Net loss(63,133)(207,905)(203,723)(431,671)
Net (loss) income attributable to noncontrolling interests(315)379 338 (522)
Net loss attributable to Sabre Corporation(62,818)(208,284)(204,061)(431,149)
Preferred stock dividends— 3,564 — 14,257 
Net loss attributable to common stockholders$(62,818)$(211,848)$(204,061)$(445,406)
Basic net loss per share attributable to common stockholders:  
Loss from continuing operations$(0.16)$(0.61)$(0.53)$(1.33)
Net loss per common share$(0.16)$(0.61)$(0.53)$(1.33)
Diluted net loss per share attributable to common stockholders:  
Loss from continuing operations$(0.16)$(0.61)$(0.53)$(1.33)
Net loss per common share$(0.16)$(0.61)$(0.53)$(1.33)
Weighted-average common shares outstanding:  
Basic385,729 345,128 383,013 335,460 
Diluted385,729 345,128 383,013 335,460 

11

SABRE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 September 30, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents$668,763 $648,207 
Restricted cash21,038 21,037 
Accounts receivable, net of allowance for credit losses of $28,425 and $34,343
408,724 343,436 
Prepaid expenses and other current assets97,491 145,911 
Total current assets1,196,016 1,158,591 
Property and equipment, net of accumulated depreciation of $1,881,284 and $1,851,191
249,577 233,677 
Equity method investments21,996 22,343 
Goodwill2,557,259 2,554,039 
Acquired customer relationships, net of accumulated amortization of $806,399 and $827,529
197,796 214,190 
Other intangible assets, net of accumulated amortization of $592,829 and $787,511
150,071 161,913 
Deferred income taxes11,468 10,201 
Other assets, net308,975 317,240 
Total assets$4,693,158 $4,672,194 
Liabilities and stockholders’ deficit
Current liabilities
Accounts payable$243,678 $231,767 
Accrued compensation and related benefits112,032 135,620 
Accrued subscriber incentives271,036 237,421 
Deferred revenues78,839 108,256 
Other accrued liabilities222,574 197,609 
Current portion of debt244,978 4,040 
Total current liabilities1,173,137 914,713 
Deferred income taxes30,552 30,745 
Other noncurrent liabilities229,206 258,719 
Long-term debt4,790,313 4,829,461 
Redeemable noncontrolling interests13,277 14,375 
Stockholders’ deficit
Common Stock: $0.01 par value; 1,000,000 authorized shares; 414,637 and 405,915 shares issued, 385,831 and 379,569 shares outstanding at September 30, 2024 and December 31, 2023, respectively
4,146 4,059 
Additional paid-in capital3,290,673 3,249,901 
Treasury Stock, at cost, 28,806 and 26,346 shares at September 30, 2024 and December 31, 2023, respectively
(526,725)(520,124)
Accumulated deficit(4,252,454)(4,048,393)
Accumulated other comprehensive loss(73,333)(73,922)
Noncontrolling interest14,366 12,660 
Total stockholders’ deficit(1,543,327)(1,375,819)
Total liabilities and stockholders’ deficit$4,693,158 $4,672,194 
12

SABRE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 Nine Months Ended September 30,
 20242023
Operating Activities  
Net loss$(203,723)$(431,671)
Adjustments to reconcile net loss to cash used in operating activities:  
Depreciation and amortization98,215 113,871 
Paid-in-kind interest89,877 26,386 
Stock-based compensation expense40,776 38,837 
Loss on extinguishment of debt, net37,994 108,577 
Amortization of upfront incentive consideration25,744 26,300 
Amortization of debt discount and issuance costs21,131 16,531 
Deferred income taxes(5,417)(2,402)
(Gain) loss on investment fair value adjustment(3,234)10,000 
Provision for expected credit losses2,801 7,421 
Dividends received from equity method investments1,833 1,514 
Other631 (4,714)
Loss from discontinued operations— 517 
Changes in operating assets and liabilities:  
Accounts and other receivables(67,964)(64,072)
Prepaid expenses and other current assets(3,490)20,480 
Capitalized implementation costs(13,813)(6,576)
Upfront incentive consideration(9,027)(13,313)
Other assets(13,401)(1,902)
Accrued compensation and related benefits(33,855)(12,950)
Accounts payable and other accrued liabilities54,696 93,728 
Deferred revenue including upfront solution fees(31,924)33,657 
Cash used in operating activities(12,150)(39,781)
Investing Activities  
Additions to property and equipment(68,052)(68,610)
Proceeds from sale of investment in securities54,834 — 
Other investing activities(300)— 
Acquisitions, net of cash acquired— (12,021)
Cash used in investing activities(13,518)(80,631)
Financing Activities  
Proceeds on borrowings from lenders200,090 1,530,473 
Payments on borrowings from lenders(194,716)(1,572,719)
Proceeds from borrowings under Securitization Facility155,600 208,600 
Payments on borrowings under Securitization Facility(58,300)(78,600)
Debt prepayment fees and issuance costs(50,020)(158,982)
Net payment on the settlement of equity-based awards(6,605)(5,451)
Proceeds from sale of redeemable shares in subsidiary— 16,000 
Dividends paid on preferred stock— (16,039)
Other financing activities— 4,200 
Cash provided by (used in) financing activities46,049 (72,518)
Cash Flows from Discontinued Operations  
Cash used in operating activities— (148)
Cash used in discontinued operations— (148)
Effect of exchange rate changes on cash, cash equivalents and restricted cash176 (205)
Increase (decrease) in cash, cash equivalents and restricted cash20,557 (193,283)
Cash, cash equivalents and restricted cash at beginning of period669,244 815,923 
Cash, cash equivalents and restricted cash at end of period$689,801 $622,640 
Non-cash additions to property and equipment$— $— 
13

Definitions of Non-GAAP Financial Measures

We have included both financial measures compiled in accordance with GAAP and certain non-GAAP financial measures, including Adjusted Operating Income, Adjusted Net Loss from continuing operations ("Adjusted Net Loss"), Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Free Cash Flow and ratios based on these financial measures.

We define Adjusted Operating Income as operating income (loss) adjusted for equity method income, acquisition-related amortization, restructuring and other costs, acquisition-related costs, litigation costs, net, indirect tax matters and stock-based compensation.

We define Adjusted Net Loss as net loss attributable to common stockholders adjusted for (income) loss from discontinued operations, net of tax, net income (loss) attributable to noncontrolling interests, preferred stock dividends, acquisition-related amortization, restructuring and other costs, loss on extinguishment of debt, net, other, net, acquisition-related costs, litigation costs, net, indirect tax matters, stock-based compensation, and the tax impact of adjustments.

We define Adjusted EBITDA as loss from continuing operations adjusted for depreciation and amortization of property and equipment, amortization of capitalized implementation costs, acquisition-related amortization, restructuring and other costs, interest expense, net, other, net, loss on extinguishment of debt, net, acquisition-related costs, litigation costs, net, indirect tax matters, stock-based compensation and the remaining provision for income taxes.

We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.

We define Adjusted EPS as Adjusted Net Loss divided by diluted weighted-average common shares outstanding.

We define Free Cash Flow as cash used in operating activities less cash used in additions to property and equipment.

We define Adjusted Net Loss from continuing operations per share as Adjusted Net Loss divided by diluted weighted-average common shares outstanding.

These non-GAAP financial measures are key metrics used by management and our board of directors to monitor our ongoing core operations because historical results have been significantly impacted by events that are unrelated to our core operations as a result of changes
14

to our business and the regulatory environment. We believe that these non-GAAP financial measures are used by investors, analysts and other interested parties as measures of financial performance and to evaluate our ability to service debt obligations, fund capital expenditures, fund our investments in technology transformation, and meet working capital requirements. We also believe that Adjusted Operating Income, Adjusted Net Loss, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted EPS assist investors in company-to-company and period-to-period comparisons by excluding differences caused by variations in capital structures (affecting interest expense), tax positions and the impact of depreciation and amortization expense. In addition, amounts derived from Adjusted EBITDA are a primary component of certain covenants under our senior secured credit facilities.

Adjusted Operating Income, Adjusted Net Loss, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS, Free Cash Flow and ratios based on these financial measures are not recognized terms under GAAP. These non-GAAP financial measures and ratios based on them are unaudited and have important limitations as analytical tools, and should not be viewed in isolation and do not purport to be alternatives to net income as indicators of operating performance or cash flows from operating activities as measures of liquidity. These non-GAAP financial measures and ratios based on them exclude some, but not all, items that affect net income or cash flows from operating activities and these measures may vary among companies. Our use of these measures has limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations are:

•these non-GAAP financial measures exclude certain recurring, non-cash charges such as stock-based compensation expense and amortization of acquired intangible assets;

•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash requirements for such replacements;

•Adjusted EBITDA does not reflect amortization of capitalized implementation costs associated with our revenue contracts, which may require future working capital or cash needs in the future;

•Adjusted Operating Income, Adjusted Net Loss and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;

15

•Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our indebtedness;

•Adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us;

•Free Cash Flow removes the impact of accrual-basis accounting on asset accounts and non-debt liability accounts, and does not reflect the cash requirements necessary to service the principal payments on our indebtedness; and

•other companies, including companies in our industry, may calculate Adjusted Operating Income, Adjusted Net Loss, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS or Free Cash Flow differently, which reduces their usefulness as comparative measures.

16

Tabular Reconciliations for Non-GAAP Measures
(In thousands, except per share amounts; unaudited)
Reconciliation of Net loss attributable to common stockholders to Adjusted Net Loss from continuing operations, Operating Income to Adjusted Operating Income, and Loss from continuing operations to Adjusted EBITDA.
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Net loss attributable to common stockholders$(62,818)$(211,848)$(204,061)$(445,406)
Loss from discontinued operations, net of tax— 116 — 517 
Net (loss) income attributable to noncontrolling interests(1)
(315)379 338 (522)
Preferred stock dividends— 3,564 — 14,257 
Loss from continuing operations(63,133)(207,789)(203,723)(431,154)
Adjustments:
Acquisition-related amortization(2a)
9,511 10,176 28,753 30,043 
Restructuring and other costs(4)
(648)3,909 9,791 62,962 
Loss on extinguishment of debt, net— 121,120 37,994 108,577 
Other, net(3)
(879)11,548 347 (8,084)
Acquisition-related costs(5)
1,713 270 2,576 1,658 
Litigation costs, net(6)
487 1,068 491 1,301 
Indirect tax matters(7)
11,138 2,451 18,844 11,451 
Stock-based compensation14,641 13,094 40,776 38,837 
Tax impact of adjustments(8)
10,307 24,043 23,068 49,057 
Adjusted Net Loss from continuing operations$(16,863)$(20,110)$(41,083)$(135,352)
Adjusted Net Loss from continuing operations per share$(0.04)$(0.06)$(0.11)$(0.40)
Diluted weighted-average common shares outstanding385,729 345,128 383,013 335,460 
Operating income$70,127 $52,201 $229,067 $9,805 
Add back:
Equity method income430 512 1,859 1,394 
Acquisition-related amortization(2a)
9,511 10,176 28,753 30,043 
Restructuring and other costs(4)
(648)3,909 9,791 62,962 
Acquisition-related costs(5)
1,713 270 2,576 1,658 
Litigation costs, net(6)
487 1,068 491 1,301 
Indirect tax matters(7)
11,138 2,451 18,844 11,451 
Stock-based compensation14,641 13,094 40,776 38,837 
Adjusted Operating Income$107,399 $83,681 $332,157 $157,451 
Loss from continuing operations$(63,133)$(207,789)$(203,723)$(431,154)
Adjustments:
Depreciation and amortization of property and equipment(2b)
18,698 21,999 55,539 65,376 
Amortization of capitalized implementation costs(2c)
4,522 4,488 13,923 18,452 
Acquisition-related amortization(2a)
9,511 10,176 28,753 30,043 
Restructuring and other costs(4)
(648)3,909 9,791 62,962 
Interest expense, net127,669 119,372 381,710 325,290 
Other, net(3)
(879)11,548 347 (8,084)
Loss on extinguishment of debt, net— 121,120 37,994 108,577 
Acquisition-related costs(5)
1,713 270 2,576 1,658 
Litigation costs, net(6)
487 1,068 491 1,301 
Indirect tax matters(7)
11,138 2,451 18,844 11,451 
Stock-based compensation14,641 13,094 40,776 38,837 
Provision for income taxes6,900 8,462 14,598 16,570 
Adjusted EBITDA$130,619 $110,168 $401,619 $241,279 
Net loss margin(8.2)%(28.6)%(8.8)%(20.1)%
Adjusted EBITDA margin17.1 %14.9 %17.3 %10.9 %
17


Reconciliation of Free Cash Flow:
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Cash provided by (used in) operating activities$27,809 59,407 $(12,150)(39,781)
Cash provided by (used in) investing activities34,576 (19,086)(13,518)(80,631)
Cash (used in) provided by financing activities(8,075)(142,878)46,049 (72,518)

 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Cash provided by (used in) operating activities$27,809 $59,407 $(12,150)$(39,781)
 Additions to property and equipment (20,258)(20,420)(68,052)(68,610)
 Free Cash Flow $7,551 $38,987 $(80,202)$(108,391)

18

Reconciliation of Adjusted Operating Income (Loss) to Operating income (loss) in our statement of operations and Adjusted EBITDA to Loss from continuing operations in our statement of operations by business segment:
Three Months Ended September 30, 2024
Travel SolutionsHospitality SolutionsCorporate Total
Adjusted Operating Income (Loss)$161,466 $5,901 $(59,968)$107,399 
Less:
Equity method income430 — — 430 
Acquisition-related amortization(2a)
— — 9,511 9,511 
Restructuring and other costs(4)
— — (648)(648)
Acquisition-related costs(5)
— — 1,713 1,713 
Litigation costs, net(6)
— — 487 487 
Indirect tax matters(7)
— — 11,138 11,138 
Stock-based compensation— — 14,641 14,641 
Operating income (loss)$161,036 $5,901 $(96,810)$70,127 
Adjusted EBITDA$179,746 $10,636 $(59,763)$130,619 
Less:
Depreciation and amortization of property and equipment(2b)
15,251 3,242 205 18,698 
Amortization of capitalized implementation costs(2c)
3,029 1,493 — 4,522 
Acquisition-related amortization(2a)
— — 9,511 9,511 
Restructuring and other costs(4)
— — (648)(648)
Acquisition-related costs(5)
— — 1,713 1,713 
Litigation costs, net(6)
— — 487 487 
Indirect tax matters(7)
— — 11,138 11,138 
Stock-based compensation— — 14,641 14,641 
Equity method income430 — — 430 
Operating income (loss)$161,036 $5,901 $(96,810)$70,127 
Interest expense, net(127,669)
Other, net(3)
879 
Equity method income430 
Provision for income taxes(6,900)
Loss from continuing operations$(63,133)

19

Three Months Ended September 30, 2023
Travel SolutionsHospitality SolutionsCorporateTotal
Adjusted Operating Income (Loss)$142,089 $107 $(58,515)$83,681 
Less:
Equity method income512 — — 512 
Acquisition-related amortization(2a)
— — 10,176 10,176 
Restructuring and other costs(4)
— — 3,909 3,909 
Acquisition-related costs(5)
— — 270 270 
Litigation costs, net(6)
— — 1,068 1,068 
Indirect tax matters(7)
— — 2,451 2,451 
Stock-based compensation— — 13,094 13,094 
Operating income (loss)$141,577 $107 $(89,483)$52,201 
Adjusted EBITDA$162,139 $6,363 $(58,334)$110,168 
Less:
Depreciation and amortization of property and equipment(2b)
16,978 4,840 181 21,999 
Amortization of capitalized implementation costs(2c)
3,072 1,416 — 4,488 
Acquisition-related amortization(2a)
— — 10,176 10,176 
Restructuring and other costs(4)
— — 3,909 3,909 
Acquisition-related costs(5)
— — 270 270 
Litigation costs, net(6)
— — 1,068 1,068 
Indirect tax matters(7)
— — 2,451 2,451 
Stock-based compensation— — 13,094 13,094 
Equity method income512 — — 512 
Operating income (loss)$141,577 $107 $(89,483)$52,201 
Interest expense, net(119,372)
Other, net(3)
(11,548)
Loss on extinguishment of debt(121,120)
Equity method income512 
Provision for income taxes(8,462)
Loss from continuing operations$(207,789)



20

Nine Months Ended September 30, 2024
Travel SolutionsHospitality SolutionsCorporate Total
Adjusted Operating Income (Loss)$494,892 $13,718 $(176,453)$332,157 
Less:
Equity method income1,859 — — 1,859 
Acquisition-related amortization(2a)
— — 28,753 28,753 
Restructuring and other costs(4)
— — 9,791 9,791 
Acquisition-related costs(5)
— — 2,576 2,576 
Litigation costs, net(6)
— — 491 491 
Indirect tax matters(7)
— — 18,844 18,844 
Stock-based compensation— — 40,776 40,776 
Operating income (loss)$493,033 $13,718 $(277,684)$229,067 
Adjusted EBITDA$548,371 $29,077 $(175,829)$401,619 
Less:
Depreciation and amortization of property and equipment(2b)
44,010 10,905 624 55,539 
Amortization of capitalized implementation costs(2c)
9,469 4,454 — 13,923 
Acquisition-related amortization(2a)
— — 28,753 28,753 
Restructuring and other costs(4)
— — 9,791 9,791 
Acquisition-related costs(5)
— — 2,576 2,576 
Litigation costs, net(6)
— — 491 491 
Indirect tax matters(7)
— — 18,844 18,844 
Stock-based compensation— — 40,776 40,776 
Equity method income1,859 — — 1,859 
Operating income (loss)$493,033 $13,718 $(277,684)$229,067 
Interest expense, net(381,710)
Other, net(3)
(347)
Loss on extinguishment of debt(37,994)
Equity method income1,859 
Provision for income taxes(14,598)
Loss from continuing operations$(203,723)

21

Nine Months Ended September 30, 2023
Travel SolutionsHospitality SolutionsCorporateTotal
Adjusted Operating Income (Loss)$348,560 $(10,424)$(180,685)$157,451 
Less:
Equity method income1,394 — — 1,394 
Acquisition-related amortization(2a)
— — 30,043 30,043 
Restructuring and other costs(4)
— — 62,962 62,962 
Acquisition-related costs(5)
— — 1,658 1,658 
Litigation costs, net(6)
— — 1,301 1,301 
Indirect tax matters(7)
— — 11,451 11,451 
Stock-based compensation— — 38,837 38,837 
Operating income (loss)$347,166 $(10,424)$(326,937)$9,805 
Adjusted EBITDA$413,489 $7,861 $(180,071)$241,279 
Less:
Depreciation and amortization of property and equipment(2b)
50,677 14,085 614 65,376 
Amortization of capitalized implementation costs(2c)
14,252 4,200 — 18,452 
Acquisition-related amortization(2a)
— — 30,043 30,043 
Restructuring and other costs(4)
— — 62,962 62,962 
Acquisition-related costs(5)
— — 1,658 1,658 
Litigation costs, net(6)
— — 1,301 1,301 
Indirect tax matters(7)
— — 11,451 11,451 
Stock-based compensation— — 38,837 38,837 
Equity method income1,394 — — 1,394 
Operating income (loss)$347,166 $(10,424)$(326,937)$9,805 
Interest expense, net(325,290)
Other, net(3)
8,084 
Loss on extinguishment of debt, net(108,577)
Equity method income1,394 
Provision for income taxes(16,570)
Loss from continuing operations$(431,154)
22

Non-GAAP Footnotes

(1)Net income attributable to noncontrolling interests represents an adjustment to include earnings allocated to noncontrolling interests held in (i) Sabre Travel Network Middle East of 40%, (ii) Sabre Seyahat Dagitim Sistemleri A.S. of 40%, (iii) Sabre Travel Network Lanka (Pte) Ltd of 40%, (iv) Sabre Bulgaria of 40%, and (v) FERMR Holdings Limited (the direct parent of Conferma Limited) of 19%

(2)Depreciation and amortization expenses:
(a) Acquisition-related amortization represents amortization of intangible assets from the take-private transaction in 2007 as well as intangibles associated with acquisitions since that date.
(b) Depreciation and amortization of property and equipment includes software developed for internal use as well as amortization of contract acquisition costs.
(c) Amortization of capitalized implementation costs represents amortization of upfront costs to implement new customer contracts under our SaaS and hosted revenue model.

(3)Other, net includes non-operating gains recognized in 2023 and the impacts of realized and unrealized gains and losses from our investments in securities in all periods presented. In addition, all periods presented include foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency.

(4)Restructuring and other costs in 2024 primarily represents charges and adjustments to charges associated with our cost reduction plan we began implementing in the second quarter of 2023.

(5)Acquisition-related costs represent fees and expenses incurred associated with acquisition and disposition-related activities.

(6)Litigation costs, net represent charges associated with antitrust litigation. Non-income tax litigation matters have been reclassified to the Indirect tax matters line for all periods presented.

(7)Indirect tax matters represents charges associated with certain DST related to historical periods and certain foreign non-income tax litigation matters.

23

(8)The tax impact of adjustments includes the tax effect of each separate adjustment based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible, and the tax effect of items that relate to tax specific financial transactions, tax law changes, uncertain tax positions, valuation allowances and other items.
24
v3.24.3
Cover Page
Oct. 31, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 31, 2024
Entity Registrant Name SABRE CORP
Entity Incorporation, State or Country Code DE
Entity File Number 001-36422
Entity Tax Identification Number 20-8647322
Entity Address, Address Line One 3150 Sabre Drive
Entity Address, Postal Zip Code 76092
Entity Address, City or Town Southlake,
Entity Address, State or Province TX
City Area Code 682
Local Phone Number 605-1000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $.01 par value
Trading Symbol SABR
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001597033
Amendment Flag false
Grafico Azioni Sabre (NASDAQ:SABR)
Storico
Da Nov 2024 a Dic 2024 Clicca qui per i Grafici di Sabre
Grafico Azioni Sabre (NASDAQ:SABR)
Storico
Da Dic 2023 a Dic 2024 Clicca qui per i Grafici di Sabre