American Express Global Business Travel, which is operated by
Global Business Travel Group, Inc. (NYSE: GBTG) (“Amex GBT” or the
“Company”), a leading B2B software and services company for travel
and expense, today announced financial results for the fourth
quarter and full year ended December 31, 2023.
Fourth Quarter and Full-Year 2023 Highlights
- Outstanding financial performance. Strong full-year performance
above initial guidance with 24% revenue growth and 269% Adjusted
EBITDA growth to $380 million. In Q4 2023, delivered $549 million
of revenue and $80 million of Adjusted EBITDA, growing 83% or $37
million year-over-year.
- Continued share gains. Total New Wins Value of $3.5 billion,
including $2.2 billion in SME, and 96% customer retention rate for
the full year.
- Operating leverage. 24% revenue growth versus single-digit
Adjusted Operating Expense growth for the full year. Operating
leverage drove full-year Adjusted EBITDA margin expansion of 11ppt
year-over-year.
- Positive cash flow and rapid deleveraging. Positive full-year
Free Cash Flow of $49 million and significant decline in leverage
ratio to 2.3x[1], resulting in reduced interest expense and a
two-notch credit rating upgrade from S&P Global.
Full-Year 2024 Outlook
- Revenue outperformance. Guiding to 6-9% revenue growth driven
by expected stable growth in business travel and Amex GBT's
continued share gains.
- Operating leverage. Margin expansion, focus on productivity and
leveraging automation and artificial intelligence (AI) expected to
deliver 18%–32% Adjusted EBITDA growth to $450–$500 million.
- Accelerating cash flow. Strong operational performance,
reduction in interest, integration and restructuring costs and
prudent working capital management. Opportunity to refinance debt
and shift capital allocation to organic and inorganic
opportunities.
Paul Abbott, Amex GBT’s Chief Executive Officer, stated: “In
2023, we delivered outstanding financial results, with revenue and
Adjusted EBITDA finishing above the guidance issued at the start of
the year. We expect our scalable model to generate 18% to 32%
Adjusted EBITDA growth in 2024 as we settle into a more stable
level of industry growth. We expect 2024 will be another year of
share gains, strong growth in profits and cash flow and continued
margin expansion.”
*A reconciliation of non-GAAP financial measures to the most
comparable GAAP measures is provided at the end of this release.
1Leverage ratio is calculated as Net Debt / LTM Adjusted EBITDA and
is different than leverage ratio defined in our senior secured
credit agreement.
Fourth Quarter & Full-Year 2023 Financial Summary
(in millions, except percentages;
unaudited)
Three Months Ended
% Increase/
(Decrease)
Year Ended
% Increase/
(Decrease)
December 31,
December 31,
2023
2022
2023
2022
Total Transaction Value (TTV)
$
6,298
$
5,913
7 %
$
28,192
$
22,968
23 %
Transaction Growth
6 %
81 %
19 %
200 %
Revenue
$
549
$
527
4 %
$
2,290
$
1,851
24 %
Total operating expenses
$
546
$
565
(4) %
$
2,298
$
2,049
12 %
Adjusted Operating Expenses
$
469
$
484
(3) %
$
1,910
$
1,745
9 %
Net loss
$
(46)
$
(63)
27 %
$
(136)
$
(229)
41 %
Net loss margin
(8) %
(12) %
4ppt
(6) %
(12) %
6ppt
EBITDA
$
41
$
(8)
NM
$
189
$
(10)
NM
Adjusted EBITDA
$
80
$
43
83 %
$
380
$
103
269 %
Adjusted EBITDA Margin
15 %
8 %
6ppt
17 %
6 %
11ppt
Net cash provided by (used in) operating
activities
$
58
$
(4)
NM
$
162
$
(394)
NM
Free Cash Flow
$
32
$
(25)
NM
$
49
$
(488)
NM
Net Debt
$
886
$
919
Net Debt / LTM Adjusted EBITDA
2.3x
8.9x
NM = Not Meaningful
Fourth Quarter 2023 Financial Highlights (Changes
compared to prior year period unless otherwise noted)
Revenue totaled $549 million, an increase of $22 million, or 4%,
primarily due to growth in Total Transaction Value driven by
continued growth in business travel and growth in Product &
Professional Services revenue, partially offset by lower yield due
to different phasing of supplier revenue in the prior year.
Total operating expenses totaled $546 million, a decrease of $19
million, or 4%, primarily due to general and administrative cost
savings and lower employee incentive costs.
Adjusted Operating Expenses totaled $469 million, a decrease of
$15 million, or 3%.
Net loss totaled $46 million, an improvement of $17 million,
primarily due to the increase in operating income and favorable
change in fair value of earnout derivative liabilities, partially
offset by increased interest expense.
Adjusted EBITDA totaled $80 million, an increase of $37 million,
or 83%. Revenue growth and operating leverage resulted in Adjusted
EBITDA margin expansion to 15%, up 6ppt.
Net cash provided by operating activities totaled $58 million,
an improvement of $62 million versus $4 million in net cash used by
operating activities in the same period in 2022, primarily due to
(i) decreased usage of working capital associated with the
normalization in volume growth and the benefits from the Company’s
working capital optimization program, particularly in relation to
the integration of Egencia, and (ii) reduced net losses before
considering non-cash charges, partially offset by (iii) higher cash
interest.
Free Cash Flow totaled $32 million, an improvement of $57
million versus Free Cash Flow use of $25 million in 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.
Full-Year 2023 Financial Highlights (Changes compared to
prior year period unless otherwise noted)
Revenue totaled $2,290 million, an increase of $439 million, or
24%, primarily due to growth in Total Transaction Value and growth
in Product and Professional Services revenue. Revenue yield was
stable at 8.1%.
Total operating expenses totaled $2,298 million, an increase of
$249 million, or 12%, primarily due to higher cost of revenues to
support Transaction Growth, increased investments in sales and
marketing and technology and content, higher restructuring costs
and increased depreciation and amortization. This was partially
offset by cost savings driven by operational efficiencies and the
Company's recent internal reorganization.
Adjusted Operating Expenses totaled $1,910 million, an increase
of $165 million, or 9%.
Net loss totaled $136 million, an improvement of $93 million,
primarily due to the improvement in operating results, partially
offset by increased interest expense and reduced benefit from
income taxes.
Adjusted EBITDA totaled $380 million, an increase of $277
million, or 269%. Strong revenue growth and operating leverage
resulted in Adjusted EBITDA margin expansion to 17%, up 11ppt.
Net cash provided by operating activities totaled $162 million,
an improvement versus $394 million in net cash used by operating
activities in 2022, primarily due to (i) decreased usage of working
capital associated with the normalization in volume growth and the
benefits from the Company’s working capital optimization program,
particularly in relation to the integration of Egencia, and (ii)
reduced net losses before considering non-cash charges, partially
offset by (iii) higher cash interest and (iv) loss of benefit from
cash received on termination of a derivative contract in 2022.
Free Cash Flow totaled $49 million, an improvement versus Free
Cash Flow use of $488 million 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 Debt: As of December 31, 2023, total debt, net of
unamortized debt discount and debt issuance cost, was $1,362
million, compared to $1,222 million as of December 31, 2022. Net
Debt was $886 million as of December 31, 2023, compared to $919
million as of December 31, 2022. The leverage ratio was 2.3x as of
December 31, 2023. The cash balance at the end of 2023 was $476
million, compared to $303 million at the end of 2022.
Full-Year 2024 Guidance
Full-Year 2024
Guidance
Year-over-Year Growth
Revenue
$2.43B – $2.50B
+ 6% – 9%
Adjusted EBITDA
$450M – $500M
+ 18% – 32%
Adjusted EBITDA Margin
18% – 20%
+ ~ 150bps – 350bps
Free Cash Flow
> $100M
Karen Williams, Amex GBT’s Chief Financial Officer, stated: “Our
2024 guidance demonstrates the power of our financial model to
leverage stable travel demand growth to above-industry revenue
growth. It also leads to even stronger Adjusted EBITDA growth
thanks to our focus on operating leverage and continued margin
expansion. We anticipate a significant step-up in Free Cash Flow
this year, driven by Adjusted EBITDA growth, a reduction in
integration and restructuring costs and lower interest expense from
our declining leverage and expected refinancing of our debt. As
Free Cash Flow accelerates, we have a clear capital allocation
strategy that supports organic and inorganic investments for
long-term, sustained growth."
Please refer to the section below titled "Reconciliation of
Full-Year 2024 Adjusted EBITDA and Free Cash Flow Guidance" for a
description of certain assumptions and risks associated with this
guidance and reconciliation to GAAP measures.
Webcast Information
Amex GBT will host its fourth quarter and full-year 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 X (formerly known as Twitter),
LinkedIn and Instagram.
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Year ended
December 31,
(in $ millions, except share and per
share data)
2023
2022
Revenue
$
2,290
$
1,851
Costs and expenses:
Cost of revenue (excluding depreciation
and amortization shown separately below)
958
832
Sales and marketing
393
337
Technology and content
405
388
General and administrative
306
313
Restructuring and other exit charges
42
(3
)
Depreciation and amortization
194
182
Total operating expenses
2,298
2,049
Operating loss
(8
)
(198
)
Interest income
1
—
Interest expense
(141
)
(98
)
Fair value movement on earnout and warrant
derivative liabilities
13
8
Other (loss) income, net
(10
)
1
Loss before income taxes and share of
losses from equity method investments
(145
)
(287
)
Benefit from income taxes
9
61
Share of losses from equity method
investments
—
(3
)
Net loss
(136
)
(229
)
Less: net loss attributable to
non-controlling interests in subsidiaries
(73
)
(204
)
Net loss attributable to the Company’s
Class A common stockholders
$
(63
)
$
(25
)
Basic loss per share attributable to the
Company’s Class A common stockholders
$
(0.25
)
$
(0.50
)
Weighted average number of shares
outstanding – Basic
251,645,498
51,266,570
Diluted loss per share attributable to the
Company’s Class A common stockholders
$
(0.30
)
$
(0.51)
Weighted average number of shares
outstanding – Diluted
458,055,525
445,715,051
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
As of December 31,
(in $ millions except share and per
share data)
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
476
$
303
Accounts receivable (net of allowance for
credit losses of $12 and $23 as of December 31, 2023 and 2022,
respectively)
726
765
Due from affiliates
42
36
Prepaid expenses and other current
assets
116
130
Total current assets
1,360
1,234
Property and equipment, net
232
218
Equity method investments
14
14
Goodwill
1,212
1,188
Other intangible assets, net
552
636
Operating lease right-of-use assets
50
58
Deferred tax assets
281
333
Other non-current assets
50
47
Total assets
$
3,751
$
3,728
Liabilities and shareholders’
equity
Current liabilities:
Accounts payable
$
302
$
253
Due to affiliates
39
48
Accrued expenses and other current
liabilities
466
452
Current portion of operating lease
liabilities
17
17
Current portion of long-term debt
7
3
Total current liabilities
831
773
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,355
1,219
Deferred tax liabilities
5
24
Pension liabilities
183
147
Long-term operating lease liabilities
55
61
Earnout derivative liabilities
77
90
Other non-current liabilities
33
43
Total liabilities
2,539
2,357
Commitments and Contingencies
Shareholders’ equity:
Class A common stock (par value $0.0001;
3,000,000,000 shares authorized; 467,092,817 shares and 67,753,543
shares issued and outstanding as of December 31, 2023 and December
31, 2022, respectively)
—
—
Class B common stock (par value $0.0001;
3,000,000,000 shares authorized; nil shares and 394,448,481 shares
issued and outstanding as of December 31, 2023 and December 31,
2022, respectively)
—
—
Additional paid-in-capital
2,748
334
Accumulated deficit
(1,437
)
(175
)
Accumulated other comprehensive loss
(103
)
(7
)
Total equity of the Company’s
shareholders
1,208
152
Equity attributable to non-controlling
interest in subsidiaries
4
1,219
Total shareholders’ equity
1,212
1,371
Total liabilities and shareholders’
equity
$
3,751
$
3,728
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Year ended December
31,
(in $ millions)
2023
2022
Operating activities:
Net loss
$
(136
)
$
(229
)
Adjustments to reconcile net loss to net
cash from (used in) operating activities:
Depreciation and amortization
194
182
Deferred tax benefit
(30
)
(65
)
Equity-based compensation
75
39
Allowance for credit losses
9
19
Fair value movements on earnout and
warrants derivative liabilities
(13
)
(8
)
Other
17
22
Defined benefit pension funding
(29
)
(32
)
Proceeds from termination of interest rate
swap derivative contract
—
23
Changes in working capital
Accounts receivable
49
(427
)
Prepaid expenses and other current
assets
9
(29
)
Due from affiliates
(4
)
(18
)
Due to affiliates
(5
)
7
Accounts payable, accrued expenses and
other current liabilities
26
122
Net cash from (used in) operating
activities
162
(394
)
Investing activities:
Purchase of property and equipment
(113
)
(94
)
Other
(6
)
(1
)
Net cash used in investing activities
(119
)
(95
)
Financing activities:
Proceeds from reverse recapitalization,
net
—
269
Redemption of preference shares
—
(168
)
Proceeds from senior secured term loans,
net of debt discount
131
200
Repayment of senior secured term loans
(3
)
(3
)
Repayment of finance lease obligations
(2
)
(2
)
Payment of lender fees and issuance costs
for senior secured term loans facilities
(2
)
—
Payment of deferred consideration
—
(4
)
Contributions for ESPP and proceeds from
exercise of stock options
7
—
Payment of taxes withheld on vesting of
equity awards
(14
)
—
Other
3
—
Net cash from financing activities
120
292
Effect of exchange rates changes on cash,
cash equivalents and restricted cash
10
(12
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
173
(209
)
Cash, cash equivalents and restricted
cash, beginning of year
316
525
Cash, cash equivalents and restricted
cash, end of year
$
489
$
316
Supplemental cash flow information:
Cash refund for income taxes (net of
payments)
$
2
$
(1
)
Cash paid for interest (net of interest
received)
$
142
$
96
Non-cash additions for finance lease
$
4
$
—
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 TTV from new SME client wins over the last twelve
months.
Total New Wins Value is calculated using expected annual
average TTV 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 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, exit and related charges,
integration costs, costs related to mergers and acquisitions,
non-cash equity-based compensation, fair value movements on earnout
and warrant derivative liabilities, long-term incentive plan costs,
certain corporate costs, 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, exit and related charges,
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, 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
December 31,
Year Ended
December 31,
(in $ millions)
2023
2022
2023
2022
Net loss
$
(46
)
$
(63
)
$
(136
)
$
(229
)
Interest income
(1
)
—
(1
)
—
Interest expense
36
29
141
98
Benefit from income taxes
3
(22
)
(9
)
(61
)
Depreciation and amortization
49
48
194
182
EBITDA
41
(8
)
189
(10
)
Restructuring, exit and related
charges(a)
—
2
49
(3
)
Integration costs(b)
7
9
35
34
Mergers and acquisitions(c)
1
(3
)
2
18
Equity-based compensation(d)
15
16
75
39
Fair value movements on earnout and
warrant derivative liabilities(e)
10
22
(13
)
(8
)
Other adjustments, net(f)
6
5
43
33
Adjusted EBITDA
$
80
$
43
$
380
$
103
Net loss Margin
(8
(12
) %
(6
(12
) %
Adjusted EBITDA Margin
15
%
8
%
17
%
6
%
Reconciliation of total operating expenses to Adjusted Operating
Expenses:
Three Months Ended
December 31,
Year Ended
December 31,
(in $ millions)
2023
2022
2023
2022
Total operating expenses
$
546
$
565
$
2,298
$
2,049
Adjustments:
Depreciation and amortization
(49
)
(48
)
(194
)
(182
)
Restructuring, exit and related
charges(a)
—
(2
)
(49
)
3
Integration costs(b)
(7
)
(9
)
(35
)
(34
)
Mergers and acquisition(c)
(1
)
3
(2
)
(18
)
Equity-based compensation(d)
(15
)
(16
)
(75
)
(39
)
Other adjustments, net(f)
(5
)
(9
)
(33
)
(34
)
Adjusted Operating Expenses
$
469
$
484
$
1,910
$
1,745
a)
Includes (i) employee severance
costs/(reversals) of $(1) million and $2 million for the three
months ended December 31, 2023 and 2022, respectively, and $39
million and $(1) million for the years ended December 31, 2023 and
2022, respectively, (ii) accelerated amortization of operating
lease ROU assets of $7 million and $0 for the years ended December
31, 2023 and 2022, respectively, and (iii) contract costs related
to leased facilities abandonment of $1 million and $0 for three
months ended December 31, 2023 and 2022, respectively, and $3
million and $(2) million for the years ended December 31, 2023 and
2022, respectively.
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. The full year 2022 includes a charge of $19 million for a
loss contingency in relation to a contingent event that existed as
of the Egencia acquisition date.
d)
Represents non-cash equity-based
compensation expense related to equity incentive awards to certain
employees.
e)
Represents fair value movements on earnout
and warrant derivative liabilities during the periods.
f)
Adjusted Operating Expenses excludes (i)
long-term incentive plan expense of $3 million and $8 million for
the three months ended December 31, 2023 and 2022, respectively,
and $19 million and $25 million for the years ended December 31,
2023 and 2022, respectively, and (ii) legal and professional
services costs of $2 million and $1 million for the three months
ended December 31, 2023 and 2022, respectively, and $14 million and
$9 million for the years ended December 31, 2023 and 2022,
respectively. Adjusted EBITDA additionally excludes (i) unrealized
foreign exchange (gains) losses of $(1) million for both of the
three months ended December 31, 2023 and 2022, and $5 million and
$8 million for the years ended December 31, 2023 and 2022,
respectively, and (ii) non-service component of our net periodic
pension cost (benefit) related to our defined benefit pension plans
of $2 million and $(3) million for the three months ended December
31, 2023 and 2022, respectively, and $5 million and $(9) million
for the years ended December 31, 2023 and 2022, respectively.
Reconciliation of net cash from (used in) operating activities
to Free Cash Flow:
Three Months Ended
December 31,
Year Ended
December 31,
(in $ millions)
2023
2022
2023
2022
Net cash from (used in) operating
activities
$
58
$
(4
)
$
162
$
(394
)
Less: Purchase of property and
equipment
(26
)
(21
)
(113
)
(94
)
Free Cash Flow
$
32
$
(25
)
$
49
$
(488
)
Reconciliation of Net Debt:
As of December 31,
(in $ millions)
2023
2022
Current portion of long-term debt
$
7
$
3
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,355
1,219
Total debt, net of unamortized debt
discount and debt issuance costs
1,362
1,222
Less: Cash and cash equivalents
(476
)
(303
)
Net Debt
$
886
$
919
LTM Adjusted EBITDA
$
380
$
103
Net Debt / LTM Adjusted EBITDA
2.3x
8.9x
Reconciliation of Full-Year 2024 Adjusted EBITDA and Free
Cash Flow Guidance
The Company’s full-year 2024 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 year ending December 31, 2024
consists of expected net income (loss) for the year ending December
31, 2024, adjusted for: (i) interest expense of approximately
$120-125 million; (ii) income taxes of approximately $(5) million -
$10 million; (iii) depreciation and amortization of property and
equipment of approximately $180-185 million; (iv) restructuring
costs and charges resulting from facilities consolidation of
approximately $30-35 million; (v) integration expenses and costs
related to mergers and acquisitions of approximately $20-25
million; (vi) non-cash equity-based compensation of approximately
$80-85 million, and; (vii) other adjustments, including long-term
incentive plan costs, legal and professional services costs,
non-service component of our net periodic pension cost (benefit)
related to our defined benefit pension plans and foreign exchange
gains and losses of approximately $20 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.
Free Cash Flow guidance for the year ending December 31, 2024
consists of expected net cash from operating activities of greater
than $230-250 million less capitalized expenditures of
approximately $130-150 million.
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, and the plans and objectives of management for future
operations 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 geopolitical conflicts, including the war in Ukraine
and the conflicts in the Middle East, as well as 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, (12) the impact of any future acquisitions including the
integration of any acquisition and (13) 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.
*A reconciliation of non-GAAP financial measures to the most
comparable GAAP measures is provided at the end of this
release.
[1]Leverage ratio is calculated as Net Debt / LTM Adjusted
EBITDA and is different than leverage ratio defined in our senior
secured credit agreement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240305543510/en/
Media: Martin Ferguson Vice President Global Communications and
Public Affairs martin.ferguson@amexgbt.com Investors: Jennifer
Thorington Director 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
