Sabre highlights improvement in volume metrics, better financial performance and reports second quarter 2022 results
Company raises 2022 financial guidance
Second quarter 2022 business highlights:
* Air bookings recovery accelerated in all four major global regions each month during the quarter
* Corporate and international travel continued to rebound, driving improved mix and higher than expected revenue per booking
* The technology transformation, including mainframe offload and cloud migration, moved forward and remained solidly on track to reach stated long-term cost savings goals
* Ended the quarter with cash balance of $1.0 billion Second quarter 2022 summary:
* Second quarter revenue totaled $658 million
* Net loss attributable to common stockholders of $193 million and diluted net loss per share attributable to common stockholders of $0.59
* Adjusted EPS totaled ($0.25)
SOUTHLAKE, Texas - Sabre Corporation ('Sabre' or the 'Company') (NASDAQ: SABR) today announced financial results for the quarter ended June 30, 2022.
'In the quarter we experienced solid improvements in each of our volume metrics. Specifically, we saw sequential volume improvements in air bookings each month during the second quarter, across all key global regions. The strong booking fee increase was driven in part by improvements in long-haul international and business travel. As global travel and testing restrictions lifted, a robust travel recovery ensued and we were ready for it. Unfortunately, some airlines and airports have struggled with the pace of the recovery, leading to capacity growth moderating as the carriers and airports sought to stabilize operations with a backdrop of strong consumer demand. Overall, we firmly believe the travel recovery remains on a long-term upward trajectory, and passengers both corporate and leisure continue to show a strong desire to fly,' said Sean Menke, Chair of the Board and CEO.
'In addition, we continue to achieve our interim technology transformation milestones, and we remain on track to deliver on our expectations for significant savings and expand revenue opportunities.'
Q2 2022 Financial Summary
Sabre consolidated second quarter revenue totaled $658 million, compared to $420 million in the second quarter of 2021. The increase in revenue was driven by an increase in global air, hotel and other travel bookings due to the continued recovery from the COVID-19 pandemic and favorable rate impacts in our Travel Solutions business as international and corporate bookings have improved.
Operating loss was $70 million, versus operating loss of $180 million in the second quarter of 2021. The improvement in operating results was driven by the items impacting revenue described above and lower depreciation and amortization. These impacts were partially offset by increased Travel Solutions incentive expenses and Hospitality Solutions transaction-related costs, as well as total company technology hosting expenses due to volume recovery trends and expected temporary costs resulting from our cloud migration efforts, and an increase in certain labor and compensation expenses.
Net loss attributable to common stockholders totaled $193 million, versus a net loss of $251 million in the second quarter of 2021. Diluted net loss per share attributable to common stockholders totaled $0.59, versus diluted net loss per share attributable to common stockholders of $0.79 in the second quarter of 2021. The improvement in net loss attributable to common stockholders was driven by the items impacting operating loss described above, offset by a $30 million fair value loss on our investment in shares of Global Business Travel Group, Inc. ('GBT'), a $12 million reduction on the gain on sale of AirCentre, and higher interest expense.
Adjusted EBITDA was $24 million, versus Adjusted EBITDA of negative $70 million in the second quarter of 2021. The improvement in Adjusted EBITDA was driven by increased revenue due to the continued recovery from the COVID-19 pandemic and favorable rate impacts in our Travel Solutions business as international and corporate bookings have improved. These impacts were partially offset by increased Travel Solutions incentive expenses and Hospitality Solutions transaction-related costs, as well as total company technology hosting expenses due to volume recovery trends and expected temporary costs resulting from our cloud migration efforts, and increased selling, general and administrative expenses due to our investments in business systems, cybersecurity, and increased compensation to attract and retain talent.
Adjusted Operating Loss was $9 million, versus Adjusted Operating Loss of $122 million in the second quarter of 2021. The improvement in operating results was driven by the items impacting Adjusted EBITDA above and by lower depreciation and amortization.
Sabre reported Adjusted EPS of ($0.25), versus ($0.52) in the second quarter of 2021.
With regards to Sabre's second quarter 2022 cash flows (versus prior year):
Cash used in operating activities totaled $73 million (vs. $141 million used in)
Cash used in investing activities totaled $103 million (vs. $1 million used in)
Cash used in financing activities totaled $15 million (vs. $20 million used in)
Capitalized expenditures totaled $16 million (vs. $11 million)
Free Cash Flow was negative $89 million, versus Free Cash Flow of negative $152 million in the second quarter of 2021.
Financial Highlights; see full release at:
https://investors.sabre.com/static-files/ef05c729-5749-4a74-b0be-ba96626570c5
SABRE CORPORATION 
