Sabre projects positive outlook for 2006

Sabre Holdings Corporation expects 2006 revenue to approach $3 billion, growth of approximately 15 percent year-over-year.

“While 2005 was a significant investment year, we expect 2006 to be about growth,” said Sam Gilliland, chairman and chief executive officer, Sabre Holdings. 

“Our guidance for 2006 reflects our confidence in our team’s ability to build on the investments we made over the past several quarters and successfully execute on our strategy. This should fuel significant revenue and earnings growth in 2006 and beyond,” said Gilliland. 

As per Sabre’s guidance for the full year of 2006, the company projects its 2006 earnings per share on an adjusted basis to be greater than $1.70.

The company stated: On a GAAP basis, the company projects earnings per share to be greater than $1.20 which includes the impact of stock option expensing requirements under FAS 123R and intangible amortization from the acquisition of lastminute.com. In other financial metrics for 2006, the company expects adjusted EBITDA of greater than $500 million, year-over-year growth of over 25 percent, and GAAP net income of about $170 million. Free cash flow is expected to be greater than $300 million, more than doubling 2005, with cash flow from operations of approximately $440 million.

Providing 2006 Outlook by Business, the company stated: 

Travelocity: Revenue is expected to approach $1.2 billion, growth of more than 40 percent year-over-year. Adjusted EBITDA in 2006 is estimated to be more than $155 million. GAAP operating income is expected to be approximately $50 million.

Sabre Travel Network: Revenue is expected to be about $1.6 billion. Adjusted EBITDA is projected to be over $300 million with GAAP operating income of approximately $230 million.

Sabre Airline Solutions: Revenue is expected to be about $270 million, or growth in the low single digits. Adjusted EBITDA is estimated to be greater than $60 million with GAAP operating income of greater than $30 million.