American Express Global Business Travel, which is operated by
Global Business Travel Group, Inc. (NYSE: GBTG) (“Amex GBT” or the
“Company”), the world’s leading B2B travel platform, today
announced financial results for the second quarter ended June 30,
2023.
Second Quarter 2023 Highlights
Outstanding Q2 Results
- Financial results exceeded Q2 2023 guidance
- Revenue totaled $592 million, an increase of 22% versus Q2
2022.
- Adjusted EBITDA1 totaled $106 million, an increase of 126%
versus Q2 2022, with an Adjusted EBITDA Margin2 of 18%. Net loss
totaled $(55) million, with a net loss margin of (9)%.
- Net cash provided by operating activities totaled $46 million.
Free Cash Flow3 totaled $19 million.
Significant New Wins and Continued Share Gains
- Total transactions grew 12% versus Q2 2022.
- LTM Total New Wins Value4 totaled $3.4 billion per annum.
- 95% LTM customer retention rate.
Excellent SME Growth
- SME transactions grew 15% versus Q2 2022.
- LTM SME New Wins Value4 totaled $2.3 billion per annum, a
record for the Company.
- Approximately 30% of LTM SME New Wins Value came from the
unmanaged category.
Raised Full-Year 2023 Guidance
- Raised revenue guidance to a range of $2.25 billion – $2.28
billion, representing 22% – 23% year-over-year growth.
- Raised Adjusted EBITDA1 guidance to a range of $365 million –
$385 million.
Paul Abbott, Amex GBT’s Chief Executive Officer, stated: “We
reported strong second quarter 2023 results, including the highest
quarterly revenue in our company’s history and strong Adjusted
EBITDA growth, and reached a huge milestone returning to positive
Free Cash Flow ahead of projections. Specifically, we delivered
strong SME growth, including yet more traction in the unmanaged
segment, and record SME new wins. This positive momentum gives us
the confidence to raise our full-year 2023 guidance.”
Second Quarter 2023 Financial Summary
(in millions, except percentages;
unaudited)
Three Months Ended
%
B/(W)
June 30,
2023
2022
Total Transaction Value (TTV)
$7,349
$6,527
13%
Transaction Growth
12%
Revenue
$592
$486
22%
Travel Revenue
$479
$388
23%
Product and Professional Services
Revenue
$113
$98
16%
Total operating expenses
$590
$505
(17)%
Net loss
$(55)
$(2)
NM
Net loss margin
(9)%
0%
NM
Net cash provided by (used in) operating
activities
$46
$(155)
NM
EBITDA5
$27
$63
(55)%
Adjusted EBITDA1
$106
$47
126%
Adjusted EBITDA Margin2
18%
10%
8ppt
Adjusted Operating Expenses6
$486
$438
(11)%
Free Cash Flow3
$19
$(176)
NM
NM = Not Meaningful
Second Quarter 2023 Financial Highlights
Revenue increased $106 million, or 22%, versus the same period
in 2022. Within this, Travel Revenue increased $91 million, or 23%,
primarily due to growth in Total Transaction Value driven by
continued growth in business travel and an improvement in yield
driven by supplier performance incentives and strong growth in
international transactions. Product and Professional Services
Revenue increased $15 million, or 16%, primarily due to increased
management fees and meetings and events revenue driven by
strengthened demand.
Total operating expenses increased $85 million, or 17%, versus
the same period in 2022, primarily driven by strong transaction
growth that resulted in increased cost of revenue and technology
and content costs, as well as increased sales and marketing
expenses. Additionally, restructuring charges increased $12 million
year-over-year due to the reorganization announced in January
2023.
Net loss increased $53 million versus the same period in 2022,
primarily due to negative fair value movements on earnout
derivative liabilities and higher interest expense, partially
offset by increased operating income.
Adjusted EBITDA1 increased $59 million, or 126%, versus the same
period in 2022, resulting in an Adjusted EBITDA margin of 18%.
Strong revenue growth resulting from improved yield and transaction
growth was partially offset by increased Adjusted Operating
Expenses6.
Adjusted Operating Expenses6 increased $48 million, or 11%,
versus the same period in 2022, primarily driven by strong
transaction growth that resulted in increased cost of revenue and
technology and content costs, as well as increased sales and
marketing expenses. For the full-year 2023, the Company expects
high-single digit growth in Adjusted Operating Expenses.
Net cash provided by (used in) operating activities totaled $46
million, an improvement of $201 million versus the same period in
2022, primarily due to a (i) decreased usage of working capital
associated with (a) the normalization in volume growth, (b)
benefits from the Company’s working capital optimization program
and (ii) reduced net losses before considering non-cash charges,
partially offset by (iii) higher cash interest and (iv) a reduction
in cash received on termination of a derivative contract in
2022.
Free Cash Flow3 totaled $19 million, an improvement of $195
million versus the same period in 2022, due to the increase in net
cash provided by operating activities, partially offset by
increased use of cash for the purchase of property and
equipment.
Net Debt7: As of June 30, 2023, total debt was $1,359 million,
compared to $1,222 million as of December 31, 2022. Net Debt was
$1,024 million as of June 30, 2023, compared to Net Debt of $919
million as of December 31, 2022.
Raised Full-Year 2023 Guidance
Q3 2023 Guidance
Full-Year 2023
Guidance
Transaction Growth
(Year-over-Year)
~9%
~20%
Revenue
$545M – $560M
$2.25B – $2.28B
Prior $2.17B - $2.22B
Revenue Growth
(Year-over-Year)
12% – 15%
22% – 23%
Prior 17% - 23%
Adjusted EBITDA1
$85M – $95M
$365M – $385M
Prior $330M - $370M
Adjusted EBITDA Margin3
16% – 17%
16% – 17%
Prior 15% - 17%
Karen Williams, Amex GBT’s Chief Financial Officer, stated:
“Based on our strong first half performance and what we are hearing
from our customers, we are confident in our 2023 trajectory and are
therefore raising our full-year guidance. We expect to deliver
strong revenue growth, significant year-over-year Adjusted EBITDA
margin expansion, and importantly, generate positive Free Cash Flow
in the back half of the year.”
The Company’s Q3 2023 and full-year 2023 guidance considers
various material assumptions. Because the guidance is
forward-looking and reflects numerous estimates and assumptions
with respect to future industry performance under various scenarios
as well as assumptions for competition, general business, economic,
market and financial conditions and matters specific to the
business of Amex GBT, all of which are difficult to predict and
many of which are beyond the control of Amex GBT, actual results
may differ materially from the guidance due to a number of factors,
including the ultimate inaccuracy of any of the assumptions
described above and the risks and other factors discussed in the
section entitled “Forward-Looking Statements” below and the risk
factors in the Company’s SEC filings.
Adjusted EBITDA guidance for the three months ending September
30, 2023 consists of expected net loss for the three months ending
September 30, 2023, adjusted for: (i) interest expense of
approximately $35-40 million; (ii) benefit for income taxes of
approximately $5-10 million; (iii) depreciation and amortization of
property and equipment of approximately $45-50 million; (iv)
restructuring costs and charges resulting from facilities
consolidation of approximately $5 million; (v) integration expenses
and costs related to mergers and acquisitions of approximately
$10-15 million; (vi) non-cash equity-based compensation of
approximately $20-25 million, and; (vii) other adjustments,
including long-term incentive plan costs, litigation and
professional services costs, non-service component of our net
periodic pension benefit related to our defined benefit pension
plans and foreign exchange gains and losses of approximately $5-10
million. We are unable to reconcile Adjusted EBITDA to net income
(loss) determined under U.S. GAAP due to the unavailability of
information required to reasonably predict certain reconciling
items such as impairment of long-lived assets and right-of-use
assets, fair value movement on earnout derivative liabilities
and/or loss on early extinguishment of debt and the related tax
impact of these adjustments. The exact amount of these adjustments
is not currently determinable but may be significant.
Adjusted EBITDA guidance for the year ending December 31, 2023
consists of expected net loss for the year ending December 31,
2023, adjusted for: (i) interest expense of approximately $140-145
million; (ii) benefit for income taxes of approximately $25-30
million; (iii) depreciation and amortization of property and
equipment of approximately $185-190 million; (iv) restructuring
costs and charges resulting from facilities consolidation of
approximately $40-45 million; (v) integration expenses and costs
related to mergers and acquisitions of approximately $45-50
million; (vi) non-cash equity-based compensation of approximately
$80-85 million, and; (vii) other adjustments, including long-term
incentive plan costs, litigation and professional services costs,
non-service component of our net periodic pension benefit related
to our defined benefit pension plans and foreign exchange gains and
losses of approximately $30-35 million. We are unable to reconcile
Adjusted EBITDA to net income (loss) determined under U.S. GAAP due
to the unavailability of information required to reasonably predict
certain reconciling items such as impairment of long-lived assets
and right-of-use assets, fair value movement on earnout derivative
liabilities and/or loss on early extinguishment of debt and the
related tax impact of these adjustments. The exact amount of these
adjustments is not currently determinable but may be
significant.
Webcast Information
Amex GBT will host its second quarter 2023 investor conference
call today at 9:00 a.m. E.T. The live webcast and accompanying
slide presentation can be accessed on the Amex GBT Investor
Relations website at investors.amexglobalbusinesstravel.com. A
replay of the event will be available on the website for at least
90 days following the event.
Glossary of Terms
See the “Glossary of Terms” for the definitions of certain terms
used within this press release.
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not
recognized under GAAP in this press release, including EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating
Expenses, Free Cash Flow and Net Debt. See “Non-GAAP Financial
Measures” below for an explanation of these non-GAAP financial
measures and “Tabular Reconciliations for Non-GAAP Financial
Measures” below for reconciliations of the non-GAAP financial
measures to the comparable GAAP measures.
About American Express Global Business Travel
American Express Global Business Travel is the world’s leading
B2B travel platform, providing software and services to manage
travel, expenses, and meetings & events for companies of all
sizes. We have built the most valuable marketplace in B2B travel to
deliver unrivalled choice, value and experiences. With travel
professionals in more than 140 countries, our customers and
travelers enjoy the powerful backing of American Express Global
Business Travel.
Visit amexglobalbusinesstravel.com for more information about
Amex GBT. Follow @amexgbt on Twitter, LinkedIn and Instagram.
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three months ended
June 30,
Six months ended
June 30,
(in $ millions, except share and per
share data)
2023
2022
2023
2022
Revenue
$
592
$
486
$
1,170
$
836
Costs and expenses:
Cost of revenue (excluding depreciation
and amortization shown separately below)
242
199
483
372
Sales and marketing
102
85
205
159
Technology and content
102
97
200
187
General and administrative
88
84
164
147
Restructuring charges
7
(5
)
30
(3
)
Depreciation and amortization
49
45
95
89
Total operating expenses
590
505
1,177
951
Operating income (loss)
2
(19
)
(7
)
(115
)
Interest expense
(35
)
(24
)
(69
)
(43
)
Fair value movement on earnouts and
warrants derivative liabilities
(19
)
36
(16
)
36
Other (loss) income, net
(5
)
2
—
2
Loss before income taxes and share of
losses from equity method investments
(57
)
(5
)
(92
)
(120
)
Benefit from income taxes
2
4
10
29
Share of losses from equity method
investments
—
(1
)
—
(2
)
Net loss
(55
)
(2
)
(82
)
(93
)
Less: net loss attributable to
non-controlling interests in subsidiaries
(41
)
(23
)
(66
)
(114
)
Net (loss) income attributable to the
Company’s Class A common stockholders
$
(14
)
$
21
$
(16
)
$
21
Basic (loss) earnings per share
attributable to the Company’s Class A common stockholders
$
(0.23
)
$
0.44
$
(0.27
)
$
0.44
Weighted average number of shares
outstanding – Basic
61,852,280
48,867,969
61,118,570
48,867,969
Diluted loss per share attributable to the
Company’s Class A common stockholders
$
(0.23
)
$
—
$
(0.27
)
$
(0.21
)
Weighted average number of shares
outstanding – Diluted
61,852,280
444,320,221
61,118,570
444,320,221
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED BALANCE
SHEETS
(in $ millions, except share and per
share data)
June 30,
2023
December 31,
2022
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
335
$
303
Accounts receivable (net of allowance for
credit losses of $26 and $23 as of June 30, 2023 and December 31,
2022, respectively)
953
765
Due from affiliates
38
36
Prepaid expenses and other current
assets
161
130
Total current assets
1,487
1,234
Property and equipment, net
228
218
Equity method investments
13
14
Goodwill
1,207
1,188
Other intangible assets, net
597
636
Operating lease right-of-use assets
51
58
Deferred tax assets
340
333
Other non-current assets
57
47
Total assets
$
3,980
$
3,728
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
386
$
253
Due to affiliates
52
48
Accrued expenses and other current
liabilities
447
452
Current portion of operating lease
liabilities
17
17
Current portion of long-term debt
6
3
Total current liabilities
908
773
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,353
1,219
Deferred tax liabilities
19
24
Pension liabilities
146
147
Long-term operating lease liabilities
58
61
Earnout derivative liabilities
106
90
Other non-current liabilities
51
43
Total liabilities
2,641
2,357
Commitments and Contingencies
Stockholders’ equity:
Class A common stock (par value $0.0001;
3,000,000,000 shares authorized; 70,429,526 shares and 67,753,543
shares issued and outstanding as of June 30, 2023 and December 31,
2022, respectively)
—
—
Class B common stock (par value $0.0001;
3,000,000,000 shares authorized; 394,448,481 shares issued and
outstanding as of both June 30, 2023 and December 31, 2022)
—
—
Additional paid-in capital
373
334
Accumulated deficit
(191
)
(175
)
Accumulated other comprehensive loss
(5
)
(7
)
Total equity of the Company’s
stockholders
177
152
Equity attributable to non-controlling
interest in subsidiaries
1,162
1,219
Total stockholders’ equity
1,339
1,371
Total liabilities and stockholders’
equity
$
3,980
$
3,728
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Six months ended
June 30,
(in $ millions)
2023
2022
Operating activities:
Net loss
$
(82
)
$
(93
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
95
89
Deferred tax benefit
(13
)
(31
)
Equity-based compensation
41
8
Allowance for credit losses
7
1
Fair value movements on earnouts and
warrants derivative liabilities
16
(36
)
Other
5
4
Defined benefit pension funding
(14
)
(19
)
Proceeds from termination of interest rate
swap
—
23
Changes in working capital
Accounts receivables
(193
)
(346
)
Prepaid expenses and other current
assets
(36
)
(8
)
Due from affiliates
—
(15
)
Due to affiliates
8
—
Accounts payable, accrued expenses and
other current liabilities
135
114
Net cash used in operating activities
(31
)
(309
)
Investing activities:
Purchase of property and equipment
(59
)
(42
)
Other
(5
)
—
Net cash used in investing activities
(64
)
(42
)
Financing activities:
Proceeds from reverse recapitalization,
net
—
269
Redemption of preference shares
—
(168
)
Proceeds from senior secured term
loans
131
200
Repayment of senior secured term loans
(1
)
(1
)
Repayment of finance lease obligations
(2
)
(2
)
Payment of debt financing costs
(2
)
—
Other
(3
)
—
Net cash from financing activities
123
298
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
4
(16
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
32
(69
)
Cash, cash equivalents and restricted
cash, beginning of period
316
525
Cash, cash equivalents and restricted
cash, end of period
$
348
$
456
Supplemental cash flow information:
Cash refund for income taxes (net of
payments)
$
—
$
1
Cash paid for interest (net of interest
received)
$
70
$
38
Dividend accrued on preferred shares
$
—
$
8
Non-cash additions for operating lease
right-of-use assets
$
5
$
—
Non-cash additions for finance lease
$
3
$
—
Issuance of shares to settle liability
$
4
$
—
Glossary of Terms
B2B refers to business-to-business.
Customer retention rate is calculated based on Total
Transaction Value (TTV).
LTM refers to the last twelve months.
SME refers to clients Amex GBT considers
small-to-medium-sized enterprises (“SME”), which Amex GBT generally
defines as having an expected annual spend on air travel of less
than $20 million. This criterion can vary by country and client
needs.
SME New Wins Value is calculated using expected annual
average Total Transaction Value (TTV) over the contract term from
new SME client wins over the last twelve months.
Total New Wins Value is calculated using expected annual
average Total Transaction Value (TTV) over the contract term from
all new client wins over the last twelve months.
Total Transaction Value or TTV refers to the sum of the
total price paid by travelers for air, hotel, rail, car rental and
cruise bookings, including taxes and other charges applied by
suppliers at point of sale, less cancellations and refunds.
Yield is calculated as total revenue divided by Total
Transaction Value (TTV) for the same period.
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. Our
non-GAAP financial measures are provided in addition to, and should
not be considered as an alternative to, other performance or
liquidity measures derived in accordance with GAAP. Non-GAAP
financial measures have limitations as analytical tools, and you
should not consider them either in isolation or as a substitute for
analyzing our results as reported under GAAP. In addition, because
not all companies use identical calculations, the presentations of
our non-GAAP financial measures may not be comparable to similarly
titled measures of other companies and can differ significantly
from company to company.
Management believes that these non-GAAP financial measures
provide users of our financial information with useful supplemental
information that enables a better comparison of our performance or
liquidity across periods. We use EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin and Adjusted Operating Expenses as performance
measures as they are important metrics used by management to
evaluate and understand the underlying operations and business
trends, forecast future results and determine future capital
investment allocations. We use Free Cash Flow and Net Debt as
liquidity measures and as indicators of our ability to generate
cash to meet our liquidity needs and to assist our management in
evaluating our financial flexibility, capital structure and
leverage. These non-GAAP financial measures supplement comparable
GAAP measures in the evaluation of the effectiveness of our
business strategies, to make budgeting decisions, and/or to compare
our performance and liquidity against that of other peer companies
using similar measures.
We define EBITDA as net income (loss) before interest income,
interest expense, gain (loss) on early extinguishment of debt,
benefit from (provision for) income taxes and depreciation and
amortization.
We define Adjusted EBITDA as net income (loss) before interest
income, interest expense, gain (loss) on early extinguishment of
debt, benefit from (provision for) income taxes and depreciation
and amortization and as further adjusted to exclude costs that
management believes are non-core to the underlying business of the
Company, consisting of restructuring costs (including charges
resulting from facilities consolidation), integration costs, costs
related to mergers and acquisitions, non-cash equity-based
compensation, long-term incentive plan costs, certain corporate
costs, fair value movements on earnouts derivative liabilities,
foreign currency gains (losses), non-service components of net
periodic pension benefit (costs) and gains (losses) on disposal of
businesses.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by
revenue.
We define Adjusted Operating Expenses as total operating
expenses excluding depreciation and amortization and costs that
management believes are non-core to the underlying business of the
Company, consisting of restructuring costs (including charges
resulting from facilities consolidation), integration costs, costs
related to mergers and acquisitions, non-cash equity-based
compensation, long-term incentive plan costs and certain corporate
costs.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted
Operating Expenses are supplemental non-GAAP financial measures of
operating performance that do not represent and should not be
considered as alternatives to net income (loss) or total operating
expenses, as determined under GAAP. In addition, these measures may
not be comparable to similarly titled measures used by other
companies. These non-GAAP measures have limitations as analytical
tools, and these measures should not be considered in isolation or
as a substitute for analysis of the Company’s results or expenses
as reported under GAAP. Some of these limitations are that these
measures do not reflect:
- changes in, or cash requirements for, our working capital needs
or contractual commitments;
- our interest expense, or the cash requirements to service
interest or principal payments on our indebtedness;
- our tax expense, or the cash requirements to pay our
taxes;
- recurring, non-cash expenses of depreciation and amortization
of property and equipment and definite-lived intangible assets and,
although these are non-cash expenses, the assets being depreciated
and amortized may have to be replaced in the future;
- the non-cash expense of stock-based compensation, which has
been, and will continue to be for the foreseeable future, an
important part of how we attract and retain our employees and a
significant recurring expense in our business;
- restructuring, mergers and acquisition and integration costs,
all of which are intrinsic of our acquisitive business model;
and
- impact on earnings or changes resulting from matters that are
non-core to our underlying business, as we believe they are not
indicative of our underlying operations.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted
Operating Expenses should not be considered as measures of
liquidity or as measures determining discretionary cash available
to us to reinvest in the growth of our business or as measures of
cash that will be available to us to meet our obligations. We
believe that the adjustments applied in presenting EBITDA, Adjusted
EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are
appropriate to provide additional information to investors about
certain material non-cash and other items that management believes
are non-core to our underlying business.
We use these measures as performance measures as they are
important metrics used by management to evaluate and understand the
underlying operations and business trends, forecast future results
and determine future capital investment allocations. These non-GAAP
measures supplement comparable GAAP measures in the evaluation of
the effectiveness of our business strategies, to make budgeting
decisions, and to compare our performance against that of other
peer companies using similar measures. We also believe that EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating
Expenses are helpful supplemental measures to assist potential
investors and analysts in evaluating our operating results across
reporting periods on a consistent basis.
We define Free Cash Flow as net cash from (used in) operating
activities, less cash used for additions to property and
equipment.
We believe Free Cash Flow is an important measure of our
liquidity. This measure is a useful indicator of our ability to
generate cash to meet our liquidity demands. We use this measure to
conduct and evaluate our operating liquidity. We believe it
typically presents an alternate measure of cash flows since
purchases of property and equipment are a necessary component of
our ongoing operations and it provides useful information regarding
how cash provided by operating activities compares to the property
and equipment investments required to maintain and grow our
platform. We believe Free Cash Flow provides investors with an
understanding of how assets are performing and measures
management’s effectiveness in managing cash.
Free Cash Flow is a non-GAAP measure and may not be comparable
to similarly named measures used by other companies. This measure
has limitations in that it does not represent the total increase or
decrease in the cash balance for the period, nor does it represent
cash flow for discretionary expenditures. This measure should not
be considered as a measure of liquidity or cash flows from
operations as determined under GAAP. This measure is not a
measurement of our financial performance under GAAP and should not
be considered in isolation or as an alternative to net income
(loss) or any other performance measures derived in accordance with
GAAP or as an alternative to cash flows from operating activities
as a measure of liquidity.
We define Net Debt as total debt outstanding consisting of
current and non-current portion of long-term debt (defined as debt
(excluding operating lease liabilities) with original contractual
maturity dates of one year or greater), net of unamortized debt
discount and unamortized debt issuance costs, minus cash and cash
equivalents.
Net Debt is a non-GAAP measure and may not be comparable to
similarly named measures used by other companies. This measure is
not a measurement of our indebtedness as determined under GAAP and
should not be considered in isolation or as an alternative to
assess our total debt or any other measures derived in accordance
with GAAP or as an alternative to total debt. Management uses Net
Debt to review our overall liquidity, financial flexibility,
capital structure and leverage. Further, we believe that certain
debt rating agencies, creditors and credit analysts monitor our Net
Debt as part of their assessment of our business.
Tabular Reconciliations for Non-GAAP Measures
Reconciliation of net loss to EBITDA and Adjusted EBITDA:
Three Months Ended June
30,
($ in millions)
2023
2022
Net loss
$
(55
)
$
(2
)
Interest expense
35
24
Benefit from income taxes
(2
)
(4
)
Depreciation and amortization
49
45
EBITDA
27
63
Restructuring and related charges(a)
13
(5
)
Integration costs(b)
10
8
Mergers and acquisitions(c)
‒
1
Equity-based compensation(d)
22
5
Fair value movements on earnouts and
warrant derivative liabilities(e)
19
(36
)
Other adjustments, net(f)
15
11
Adjusted EBITDA
$
106
$
47
Net loss margin
(9
%)
‒
Adjusted EBITDA Margin
18
%
10
%
Reconciliation of total operating expenses to Adjusted Operating
Expenses:
Three Months Ended June
30,
($ in millions)
2023
2022
Total operating expenses
$
590
$
505
Adjustments:
Depreciation and amortization
(49
)
(45
)
Restructuring and related charges(a)
(13
)
5
Integration costs(b)
(10
)
(8
)
Mergers and acquisitions(c)
‒
(1
)
Equity-based compensation(d)
(22
)
(5
)
Other adjustments, net(f)
(10
)
(13
)
Adjusted Operating Expenses
$
486
$
438
a)
Includes (i) employee severance
costs/(reversals) of $5 million and $(5) million for the three
months ended June 30, 2023 and 2022, respectively, (ii) accelerated
amortization of operating lease ROU assets of $6 million for the
three months ended June 30, 2023 and (iii) contract costs related
to facility abandonment of $2 million for the three months ended
June 30, 2023.
b)
Represents expenses related to the
integration of businesses acquired.
c)
Represents expenses related to business
acquisitions, including potential business acquisitions, and
includes pre-acquisition due diligence and related activities
costs.
d)
Represents non-cash equity-based
compensation expense related to equity incentive awards to certain
employees.
e)
Represents fair value movements on
earnouts and warrants derivative liabilities during the
periods.
f)
Adjusted Operating Expenses excludes (i)
long-term incentive plan expense of $5 million and $11 million for
the three months ended June 30, 2023 and 2022, respectively, and
(ii) litigation and professional services costs of $5 million and $
2 million for the three months ended June 30, 2023 and 2022,
respectively. Adjusted EBITDA additionally excludes (i) unrealized
foreign exchange loss (gains) of $4 million and $0 for the three
months ended June 30, 2023 and 2022, respectively, and (ii)
non-service component of our net periodic pension cost (benefit)
related to our defined benefit pension plans of $1 million and $(2)
million for the three months ended June 30, 2023 and 2022,
respectively.
Reconciliation of net cash provided by (used in) operating
activities to Free Cash Flow:
Three Months Ended June
30,
($ in millions)
2023
2022
Net cash provided by (used in)
operating activities
$
46
$
(155
)
Less: Purchase of property and
equipment
(27
)
(21
)
Free Cash Flow
$
19
$
(176
)
Reconciliation of Net Debt:
As of
($ in millions)
June 30, 2023
December 31, 2022
Senior Secured Credit Agreement
Principal amount of senior secured initial
term loans (Maturity – August 2025)(1)
$
238
$
239
Principal amount of senior secured tranche
B-3 term loans (Maturity – December 2026)(2)
1,000
1,000
Principal amount of senior secured tranche
B-4 term loans (Maturity – December 2026)(3)
135
—
Principal amount of senior secured
revolving credit facility (Maturity – September 2026)(4)
—
—
Other borrowings(5)
5
—
1,378
1,239
Less: Unamortized debt discount and debt
issuance costs
(19
)
(17
)
Total debt, net of unamortized debt
discount and debt issuance costs
1,359
1,222
Less: Cash and cash equivalents
(335
)
(303
)
Net Debt
$
1,024
$
919
1)
Stated interest rate of LIBOR + 2.50% as
of June 30, 2023 and December 31, 2022.
2)
Stated interest rate of SOFR + 0.1% +
6.75% (with a SOFR floor of 1%) as of June 30, 2023 and LIBOR +
6.50% (with a LIBOR floor of 1.00%) as of December 31, 2022.
3)
Stated interest rate of SOFR +0.1% + 6.75%
(with a SOFR floor of 1%) as of June 30, 2023.
4)
Stated interest rate of SOFR + 0.1% +
6.25% (with a SOFR floor of 1%) as of June 30, 2023 and LIBOR +
2.25% as of December 31, 2022. The senior secured revolving credit
facility will automatically terminate on May 14, 2025 if the senior
secured initial term loans have not been refinanced, replaced or
extended (with a resulting maturity date that is December 16, 2026
or later) or repaid in full prior to May 14, 2025.
5)
Other borrowings primarily relate to
finance leases and equipment sale and lease back transaction.
Forward-Looking Statements
This communication contains statements that are forward-looking
and as such are not historical facts. This includes, without
limitation, statements regarding our financial position, business
strategy, the plans and objectives of management for future
operations and third quarter and full-year guidance. These
statements constitute projections, forecasts and forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The words “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,”
“possible,” “potential,” “predict,” “project,” “should,” “will,”
“would” and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a
statement is not forward-looking.
The forward-looking statements contained in this communication
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. There can be no
assurance that future developments affecting us will be those that
we have anticipated. These forward-looking statements involve a
number of risks, uncertainties (some of which are beyond our
control) or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to, the following risks,
uncertainties and other factors: (1) changes to projected financial
information or our ability to achieve our anticipated growth rate
and execute on industry opportunities; (2) our ability to maintain
our existing relationships with customers and suppliers and to
compete with existing and new competitors; (3) various conflicts of
interest that could arise among us, affiliates and investors; (4)
our success in retaining or recruiting, or changes required in, our
officers, key employees or directors; (5) factors relating to our
business, operations and financial performance, including market
conditions and global and economic factors beyond our control; (6)
the impact of the COVID-19 pandemic, geopolitical conflicts and
related changes in base interest rates, inflation and significant
market volatility on our business, the travel industry, travel
trends and the global economy generally; (7) the sufficiency of our
cash, cash equivalents and investments to meet our liquidity needs;
(8) the effect of a prolonged or substantial decrease in global
travel on the global travel industry; (9) political, social and
macroeconomic conditions (including the widespread adoption of
teleconference and virtual meeting technologies which could reduce
the number of in-person business meetings and demand for travel and
our services); (10) the effect of legal, tax and regulatory
changes; (11) the decisions of market data providers, indices and
individual investors and (12) other risks and uncertainties
described in the Company’s Form 10-K, filed with the SEC on March
21, 2023, and in the Company’s other SEC filings. Should one or
more of these risks or uncertainties materialize, or should any of
our assumptions prove incorrect, actual results may vary in
material respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
Disclaimer
An investment in Global Business Travel Group, Inc. is not an
investment in American Express. American Express shall not be
responsible in any manner whatsoever for, and in respect of, the
statements herein, all of which are made solely by Global Business
Travel Group, Inc.
________________________________________________ 1Adjusted
EBITDA is a non-GAAP financial measure. Please refer to the section
below titled “Non-GAAP Financial Measures” for more information.
2Adjusted EBITDA Margin is a non-GAAP financial measure. Please
refer to the section below titled “Non-GAAP Financial Measures” for
more information. 3Free Cash Flow is a non-GAAP financial measure.
Please refer to the section below titled “Non-GAAP Financial
Measures” for more information. 4LTM New Wins Value represents the
estimated annual value of wins over the twelve months ended July
31, 2023, based on Total Transaction Value (TTV). 5EBITDA is a
non-GAAP financial measure. Please refer to the section below
titled “Non-GAAP Financial Measures” for more information.
6Adjusted Operating Expenses is a non-GAAP financial measure.
Please refer to the section below titled “Non-GAAP Financial
Measures” for more information. 7Net Debt is a non-GAAP financial
measure. Please refer to the section below titled “Non-GAAP
Financial Measures” for more information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230810636544/en/
Media: Martin Ferguson Vice President Global Communications and
Public Affairs martin.ferguson@amexgbt.com
Investors: Barry Sievert Vice President Investor Relations
investor@amexgbt.com
Grafico Azioni Global Business Travel (NYSE:GBTG)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Global Business Travel (NYSE:GBTG)
Storico
Da Dic 2023 a Dic 2024
