|
Bermuda
|
| |
98-0505105
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Large accelerated filer ☒
|
| |
Accelerated filer ☐
|
| |
Non-accelerated filer ☐
|
| |
Smaller reporting company ☐
|
|
| | | |
(Do not check if a smaller reporting company)
|
| |
| | |
Page
|
| |||
PART I. FINANCIAL INFORMATION
|
| | |||||
| | | | 1 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 8 | | | |
| | | | 9 | | | |
| | | | 21 | | | |
| | | | 36 | | | |
| | | | 37 | | | |
PART II. OTHER INFORMATION
|
| | |||||
| | | | 38 | | | |
| | | | 38 | | | |
| | | | 38 | | | |
| | | | 38 | | | |
| | | | 38 | | | |
| | | | 38 | | | |
| | | | 38 | | | |
| | | | 39 | | |
(in $ thousands, except share data)
|
| |
Three Months
Ended March 31, 2016 |
| |
Three Months
Ended March 31, 2015 |
| ||||||
Net revenue
|
| | | $ | 609,263 | | | | | $ | 572,128 | | |
Costs and expenses | | | | ||||||||||
Cost of revenue
|
| | | | 362,677 | | | | | | 349,231 | | |
Selling, general and administrative
|
| | | | 114,477 | | | | | | 128,120 | | |
Depreciation and amortization
|
| | | | 52,241 | | | | | | 61,028 | | |
Total costs and expenses
|
| | | | 529,395 | | | | | | 538,379 | | |
Operating income
|
| | | | 79,868 | | | | | | 33,749 | | |
Interest expense, net
|
| | | | (54,895) | | | | | | (39,389) | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | 6,271 | | |
Income before income taxes and share of earnings in equity method investment
|
| | | | 24,973 | | | | | | 631 | | |
Provision for income taxes
|
| | | | (7,792) | | | | | | (7,758) | | |
Share of earnings in equity method investment
|
| | | | — | | | | | | 19 | | |
Net income (loss)
|
| | | | 17,181 | | | | | | (7,108) | | |
Net income attributable to non-controlling interest in subsidiaries
|
| | | | (596) | | | | | | (1,033) | | |
Net income (loss) attributable to the Company
|
| | | $ | 16,585 | | | | | $ | (8,141) | | |
Income (loss) per share – Basic: | | | | ||||||||||
Income (loss) per share
|
| | | $ | 0.13 | | | | | $ | (0.07) | | |
Weighted average common shares outstanding – Basic
|
| | | | 123,718,311 | | | | | | 121,411,360 | | |
Income (loss) per share – Diluted: | | | | ||||||||||
Income (loss) per share
|
| | | $ | 0.13 | | | | | $ | (0.07) | | |
Weighted average common shares outstanding – Diluted
|
| | | | 123,778,407 | | | | | | 121,411,360 | | |
Cash dividends declared per common share
|
| | | $ | 0.075 | | | | | $ | 0.075 | | |
(in $ thousands)
|
| |
Three Months
Ended March 31, 2016 |
| |
Three Months
Ended March 31, 2015 |
| ||||||
Net income (loss)
|
| | | $ | 17,181 | | | | | $ | (7,108) | | |
Other comprehensive income (loss), net of tax | | | | ||||||||||
Currency translation adjustment, net of tax
|
| | | | 7,459 | | | | | | (5,836) | | |
Changes in gain on available-for-sale securities, net of tax
|
| | | | — | | | | | | (6,376) | | |
Unrealized actuarial gain (loss) on defined benefit plans, net of tax
|
| | | | 2,251 | | | | | | (32) | | |
Other comprehensive income (loss), net of tax
|
| | | | 9,710 | | | | | | (12,244) | | |
Comprehensive income (loss)
|
| | | | 26,891 | | | | | | (19,352) | | |
Comprehensive income attributable to non-controlling interest in subsidiaries
|
| | | | (596) | | | | | | (1,033) | | |
Comprehensive income (loss) attributable to the Company
|
| | | $ | 26,295 | | | | | $ | (20,385) | | |
|
(in $ thousands, except share data)
|
| |
March 31,
2016 |
| |
December 31,
2015 |
| ||||||
Assets | | | | ||||||||||
Current assets: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 127,993 | | | | | $ | 154,841 | | |
Accounts receivable (net of allowances for doubtful accounts of $14,242 and $14,575)
|
| | | | 253,728 | | | | | | 205,686 | | |
Deferred income taxes
|
| | | | 5,231 | | | | | | 5,133 | | |
Other current assets
|
| | | | 141,440 | | | | | | 99,481 | | |
Total current assets
|
| | | | 528,392 | | | | | | 465,141 | | |
Property and equipment, net
|
| | | | 447,777 | | | | | | 459,848 | | |
Goodwill
|
| | | | 1,072,075 | | | | | | 1,067,415 | | |
Trademarks and tradenames
|
| | | | 314,013 | | | | | | 313,961 | | |
Other intangible assets, net
|
| | | | 540,141 | | | | | | 534,540 | | |
Deferred income taxes
|
| | | | 10,485 | | | | | | 10,348 | | |
Other non-current assets
|
| | | | 52,905 | | | | | | 54,176 | | |
Total assets
|
| | | $ | 2,965,788 | | | | | $ | 2,905,429 | | |
Liabilities and equity | | | | ||||||||||
Current liabilities: | | | | ||||||||||
Accounts payable
|
| | | $ | 73,995 | | | | | $ | 74,277 | | |
Accrued expenses and other current liabilities
|
| | | | 476,269 | | | | | | 430,650 | | |
Current portion of long-term debt
|
| | | | 62,484 | | | | | | 74,163 | | |
Total current liabilities
|
| | | | 612,748 | | | | | | 579,090 | | |
Long-term debt
|
| | | | 2,362,205 | | | | | | 2,363,035 | | |
Deferred income taxes
|
| | | | 59,027 | | | | | | 59,663 | | |
Other non-current liabilities
|
| | | | 228,482 | | | | | | 226,499 | | |
Total liabilities
|
| | | | 3,262,462 | | | | | | 3,228,287 | | |
Commitments and contingencies (Note 10) | | | | ||||||||||
Shareholders’ equity (deficit): | | | | ||||||||||
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively)
|
| | | | — | | | | | | — | | |
Common shares ($0.0025 par value; 560,000,000 shares authorized; 124,587,794 shares and 124,476,382 shares issued; 123,719,469 shares and 123,631,474 shares outstanding as of March 31, 2016 and December 31, 2015, respectively)
|
| | | | 311 | | | | | | 311 | | |
Additional paid in capital
|
| | | | 2,715,106 | | | | | | 2,715,538 | | |
Treasury shares, at cost (868,325 shares and 844,908 shares as of March 31, 2016 and December 31, 2015, respectively)
|
| | | | (13,606) | | | | | | (13,331) | | |
Accumulated deficit
|
| | | | (2,865,073) | | | | | | (2,881,658) | | |
Accumulated other comprehensive loss
|
| | | | (167,797) | | | | | | (177,507) | | |
Total shareholders’ equity (deficit)
|
| | | | (331,059) | | | | | | (356,647) | | |
Equity attributable to non-controlling interest in subsidiaries
|
| | | | 34,385 | | | | | | 33,789 | | |
Total equity (deficit)
|
| | | | (296,674) | | | | | | (322,858) | | |
Total liabilities and equity
|
| | | $ | 2,965,788 | | | | | $ | 2,905,429 | | |
|
(in $ thousands)
|
| |
Three Months
Ended March 31, 2016 |
| |
Three Months
Ended March 31, 2015 |
| ||||||
Operating activities | | | | ||||||||||
Net income (loss)
|
| | | $ | 17,181 | | | | | $ | (7,108) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
| | | ||||||||||
Depreciation and amortization
|
| | | | 52,241 | | | | | | 61,028 | | |
Amortization of customer loyalty payments
|
| | | | 16,574 | | | | | | 18,329 | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | (6,271) | | |
Amortization of debt finance costs and debt discount
|
| | | | 2,571 | | | | | | 2,551 | | |
(Gain) loss on foreign exchange derivative instruments
|
| | | | (11,074) | | | | | | 10,586 | | |
Loss on interest rate derivative instruments
|
| | | | 16,456 | | | | | | — | | |
Share of earnings in equity method investment
|
| | | | — | | | | | | (19) | | |
Equity-based compensation
|
| | | | 9,117 | | | | | | 12,402 | | |
Deferred income taxes
|
| | | | (887) | | | | | | 1,724 | | |
Customer loyalty payments
|
| | | | (25,307) | | | | | | (23,400) | | |
Pension liability contribution
|
| | | | (1,118) | | | | | | (672) | | |
Changes in assets and liabilities: | | | | ||||||||||
Accounts receivable
|
| | | | (49,424) | | | | | | (51,218) | | |
Other current assets
|
| | | | (23,251) | | | | | | (12,520) | | |
Accounts payable, accrued expenses and other current liabilities
|
| | | | 27,232 | | | | | | 8,104 | | |
Other
|
| | | | (4,107) | | | | | | (2,497) | | |
Net cash provided by operating activities
|
| | | $ | 26,204 | | | | | $ | 11,019 | | |
Investing activities | | | | ||||||||||
Property and equipment additions
|
| | | $ | (22,521) | | | | | $ | (27,084) | | |
Proceeds from sale of shares of Orbitz Worlwide
|
| | | | — | | | | | | 6,271 | | |
Net cash used in investing activities
|
| | | $ | (22,521) | | | | | $ | (20,813) | | |
|
(in $ thousands)
|
| |
Three Months
Ended March 31, 2016 |
| |
Three Months
Ended March 31, 2015 |
| ||||||
Financing activities | | | | ||||||||||
Proceeds from revolver borrowings
|
| | | $ | 10,000 | | | | | $ | — | | |
Repayment of revolver borrowings
|
| | | | (10,000) | | | | | | — | | |
Repayment of term loans
|
| | | | (9,405) | | | | | | (5,938) | | |
Repayment of capital lease obligations and other indebtedness
|
| | | | (12,079) | | | | | | (8,056) | | |
Release of cash provided as collateral
|
| | | | — | | | | | | 2,279 | | |
Dividend to shareholders
|
| | | | (9,280) | | | | | | (9,106) | | |
Treasury share purchase related to vesting of equity awards
|
| | | | (275) | | | | | | — | | |
Net cash used in financing activities
|
| | | $ | (31,039) | | | | | $ | (20,821) | | |
Effect of changes in exchange rates on cash and cash equivalents
|
| | | | 508 | | | | | | (973) | | |
Net decrease in cash and cash equivalents
|
| | | | (26,848) | | | | | | (31,588) | | |
Cash and cash equivalents at beginning of period
|
| | | | 154,841 | | | | | | 138,986 | | |
Cash and cash equivalents at end of period
|
| | | $ | 127,993 | | | | | $ | 107,398 | | |
Supplemental disclosure of cash flow information | | | | ||||||||||
Interest payments, net of capitalized interest
|
| | | $ | 37,480 | | | | | $ | 37,901 | | |
Income tax payments, net of refunds
|
| | | | 4,549 | | | | | | 7,263 | | |
Non-cash capital lease additions
|
| | | | 6,779 | | | | | | 4,070 | | |
| | |
Common Shares
|
| |
Additional
Paid in Capital |
| |
Treasury Shares
|
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Non-
Controlling Interest in Subsidiaries |
| |
Total
Equity (Deficit) |
| |||||||||||||||||||||||||||||||||
(in $ thousands, except share data)
|
| |
Number
|
| |
Amount
|
| |
Number
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2015
|
| | | | 124,476,382 | | | | | $ | 311 | | | | | $ | 2,715,538 | | | | | | 844,908 | | | | | $ | (13,331) | | | | | $ | (2,881,658) | | | | | $ | (177,507) | | | | | $ | 33,789 | | | | | $ | (322,858) | | |
Dividend to shareholders ($0.075 per share)
|
| | | | — | | | | | | — | | | | | | (9,458) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,458) | | |
Equity-based compensation
|
| | | | 111,412 | | | | | | — | | | | | | 9,026 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,026 | | |
Treasury shares purchased in relation to vesting of equity awards
|
| | | | — | | | | | | — | | | | | | — | | | | | | 23,417 | | | | | | (275) | | | | | | — | | | | | | — | | | | | | — | | | | | | (275) | | |
Comprehensive income (loss), net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,585 | | | | | | 9,710 | | | | | | 596 | | | | | | 26,891 | | |
Balance as of March 31, 2016
|
| | | | 124,587,794 | | | | | $ | 311 | | | | | $ | 2,715,106 | | | | | | 868,325 | | | | | $ | (13,606) | | | | | $ | (2,865,073) | | | | | $ | (167,797) | | | | | $ | 34,385 | | | | | $ | (296,674) | | |
|
(in $ thousands)
|
| |
March 31,
2016 |
| |
December 31,
2015 |
| ||||||
Prepaid expenses
|
| | | $ | 39,684 | | | | | $ | 26,395 | | |
Prepaid incentives
|
| | | | 31,219 | | | | | | 26,496 | | |
Sales and use tax receivables
|
| | | | 29,628 | | | | | | 27,233 | | |
Restricted cash
|
| | | | 20,714 | | | | | | 11,701 | | |
Derivative assets | | | | | 5,903 | | | | | | 657 | | |
Other
|
| | | | 14,292 | | | | | | 6,999 | | |
| | | | $ | 141,440 | | | | | $ | 99,481 | | |
|
| | |
March 31, 2016
|
| |
December 31, 2015
|
| ||||||||||||||||||||||||||||||
(in $ thousands)
|
| |
Cost
|
| |
Accumulated
depreciation |
| |
Net
|
| |
Cost
|
| |
Accumulated
depreciation |
| |
Net
|
| ||||||||||||||||||
Capitalized software
|
| | | $ | 881,751 | | | | | $ | (661,426) | | | | | $ | 220,325 | | | | | $ | 870,868 | | | | | $ | (635,135) | | | | | $ | 235,733 | | |
Computer equipment
|
| | | | 308,859 | | | | | | (178,986) | | | | | | 129,873 | | | | | | 303,902 | | | | | | (168,380) | | | | | | 135,522 | | |
Building and leasehold improvements
|
| | | | 25,334 | | | | | | (9,490) | | | | | | 15,844 | | | | | | 24,102 | | | | | | (8,735) | | | | | | 15,367 | | |
Construction in progress
|
| | | | 81,735 | | | | | | — | | | | | | 81,735 | | | | | | 73,226 | | | | | | — | | | | | | 73,226 | | |
| | | | $ | 1,297,679 | | | | | $ | (849,902) | | | | | $ | 447,777 | | | | | $ | 1,272,098 | | | | | $ | (812,250) | | | | | $ | 459,848 | | |
|
(in $ thousands)
|
| |
January 1,
2016 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
March 31,
2016 |
| |||||||||||||||
Non-Amortizable Assets: | | | | | | | |||||||||||||||||||||||||
Goodwill
|
| | | $ | 1,067,415 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,660 | | | | | $ | 1,072,075 | | |
Trademarks and tradenames
|
| | | | 313,961 | | | | | | — | | | | | | — | | | | | | 52 | | | | | | 314,013 | | |
Other Intangible Assets: | | | | | | | |||||||||||||||||||||||||
Acquired intangible assets
|
| | | | 1,127,360 | | | | | | — | | | | | | — | | | | | | (26) | | | | | | 1,127,334 | | |
Accumulated amortization
|
| | | | (756,489) | | | | | | (11,139) | | | | | | — | | | | | | (552) | | | | | | (768,180) | | |
Acquired intangible assets, net
|
| | | | 370,871 | | | | | | (11,139) | | | | | | — | | | | | | (578) | | | | | | 359,154 | | |
Customer loyalty payments
|
| | | | 300,142 | | | | | | 32,050 | | | | | | (19,880) | | | | | | 4,124 | | | | | | 316,436 | | |
Accumulated amortization
|
| | | | (136,473) | | | | | | (16,574) | | | | | | 19,154 | | | | | | (1,556) | | | | | | (135,449) | | |
Customer loyalty payments, net
|
| | | | 163,669 | | | | | | 15,476 | | | | | | (726) | | | | | | 2,568 | | | | | | 180,987 | | |
Other intangible assets, net
|
| | | $ | 534,540 | | | | | $ | 4,337 | | | | | $ | (726) | | | | | $ | 1,990 | | | | | $ | 540,141 | | |
|
(in $ thousands)
|
| |
January 1,
2015 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
March 31,
2015 |
| |||||||||||||||
Non-Amortizable Assets: | | | | | | | |||||||||||||||||||||||||
Goodwill
|
| | | $ | 997,419 | | | | | $ | — | | | | | $ | — | | | | | $ | (1,455) | | | | | $ | 995,964 | | |
Trademarks and tradenames
|
| | | | 313,961 | | | | | | — | | | | | | — | | | | | | — | | | | | | 313,961 | | |
Other Intangible Assets: | | | | | | | |||||||||||||||||||||||||
Acquired intangible assets
|
| | | | 1,129,320 | | | | | | — | | | | | | (2,222) | | | | | | 111 | | | | | | 1,127,209 | | |
Accumulated amortization
|
| | | | (687,495) | | | | | | (18,623) | | | | | | 2,222 | | | | | | (200) | | | | | | (704,096) | | |
Acquired intangible assets, net
|
| | | | 441,825 | | | | | | (18,623) | | | | | | — | | | | | | (89) | | | | | | 423,113 | | |
Customer loyalty payments
|
| | | | 334,309 | | | | | | 19,836 | | | | | | (31,761) | | | | | | — | | | | | | 322,384 | | |
Accumulated amortization
|
| | | | (157,319) | | | | | | (18,329) | | | | | | 31,761 | | | | | | (510) | | | | | | (144,397) | | |
Customer loyalty payments, net
|
| | | | 176,990 | | | | | | 1,507 | | | | | | — | | | | | | (510) | | | | | | 177,987 | | |
Other intangible assets, net
|
| | | $ | 618,815 | | | | | $ | (17,116) | | | | | $ | — | | | | | $ | (599) | | | | | $ | 601,100 | | |
|
(in $ thousands)
|
| |
March 31,
2016 |
| |
December 31,
2015 |
| ||||||
Supplier prepayments
|
| | | $ | 19,828 | | | | | $ | 14,616 | | |
Prepaid incentives
|
| | | | 10,364 | | | | | | 9,282 | | |
Deferred financing costs
|
| | | | 6,096 | | | | | | 6,543 | | |
Pension assets
|
| | | | 5,969 | | | | | | 5,186 | | |
Derivative assets
|
| | | | — | | | | | | 8,655 | | |
Other
|
| | | | 10,648 | | | | | | 9,894 | | |
| | | | $ | 52,905 | | | | | $ | 54,176 | | |
|
(in $ thousands)
|
| |
March 31,
2016 |
| |
December 31,
2015 |
| ||||||
Accrued commissions and incentives
|
| | | $ | 276,979 | | | | | $ | 241,358 | | |
Accrued payroll and related
|
| | | | 63,879 | | | | | | 77,544 | | |
Deferred revenue
|
| | | | 49,391 | | | | | | 35,836 | | |
Customer prepayments
|
| | | | 20,714 | | | | | | 11,701 | | |
Income tax payable
|
| | | | 20,274 | | | | | | 15,516 | | |
Accrued interest expense
|
| | | | 17,221 | | | | | | 18,800 | | |
Derivative liabilities
|
| | | | 5,421 | | | | | | 10,341 | | |
Pension and post-retirement benefit liabilities
|
| | | | 1,748 | | | | | | 1,528 | | |
Other
|
| | | | 20,642 | | | | | | 18,026 | | |
| | | | $ | 476,269 | | | | | $ | 430,650 | | |
|
(in $ thousands)
|
| |
Interest
rate |
| |
Maturity
|
| |
March 31,
2016 |
| |
December 31,
2015 |
| ||||||
Senior Secured Credit Agreement | | | | | | ||||||||||||||
Term loans
|
| | | | | ||||||||||||||
Dollar denominated(1)(2)
|
| |
L+4.75%
|
| |
September 2021
|
| | | $ | 2,296,034 | | | | | $ | 2,303,315 | | |
Revolver borrowings
|
| | | | | ||||||||||||||
Dollar denominated
|
| |
L+5.00%
|
| |
September 2019
|
| | | | — | | | | | | — | | |
Capital leases and other indebtedness
|
| | | | | | | | | | 128,655 | | | | | | 133,883 | | |
Total debt
|
| | | | | | | | | $ | 2,424,689 | | | | | $ | 2,437,198 | | |
Less: current portion
|
| | | | | | | | | | 62,484 | | | | | | 74,163 | | |
Long-term debt
|
| | | | | | | | | $ | 2,362,205 | | | | | $ | 2,363,035 | | |
|
| | | | | |
Fair Value Asset
|
| | | | |
Fair Value (Liability)
|
| ||||||||||||||||||
(in $ thousands)
|
| |
Balance Sheet
Location |
| |
March 31,
2016 |
| |
December 31,
2015 |
| |
Balance Sheet
Location |
| |
March 31,
2016 |
| |
December 31,
2015 |
| ||||||||||||
Interest
rate swap contracts |
| | Other non-current assets |
| | | $ | — | | | | | $ | 8,655 | | | | Other non-current liabilities |
| | | $ | (7,801) | | | | | $ | — | | |
Foreign
currency contracts |
| | Other current assets |
| | | | 5,903 | | | | | | 657 | | | | Accrued Expenses and other current liabilities |
| | | | (5,421) | | | | | | (10,341) | | |
Foreign
currency contracts |
| | Other non-current assets |
| | | | — | | | | | | — | | | | Other non-current liabilities |
| | | | (136) | | | | | | (1,082) | | |
Total fair value of derivative assets (liabilities)
|
| | | | | | $ | 5,903 | | | | | $ | 9,312 | | | | | | | | $ | (13,358) | | | | | $ | (11,423) | | |
|
(in $ thousands)
|
| |
Three Months Ended
March 31, 2016 |
| |
Three Months Ended
March 31, 2015 |
| ||||||
Net derivative liability opening balance
|
| | | $ | (2,111) | | | | | $ | (15,548) | | |
Total loss for the period included in net income (loss)
|
| | | | (14,605) | | | | | | (16,457) | | |
Payments on settlement of foreign currency derivative contracts
|
| | | | 9,261 | | | | | | 5,933 | | |
Net derivative liability closing balance
|
| | | $ | (7,455) | | | | | $ | (26,072) | | |
|
| | | | | |
Amount of Income (Loss)
Recorded in Net Income (Loss) |
| |||||||||
(in $ thousands)
|
| |
Location of Gain (Loss)
Recorded in Income (Loss) |
| |
Three Months Ended
March 31, |
| |||||||||
| | | | | |
2016
|
| |
2015
|
| ||||||
Interest rate swap contracts
|
| | Interest expense, net | | | | $ | (16,456) | | | | | $ | — | | |
Foreign currency contracts
|
| | Selling, general and administrative | | | | | 1,851 | | | | | | (16,457) | | |
| | | | | | | $ | (14,605) | | | | | $ | (16,457) | | |
|
| | | | | |
March 31, 2016
|
| |
December 31, 2015
|
| ||||||||||||||||||
(in $ thousands)
|
| |
Fair Value
Hierarchy |
| |
Carrying
Amount |
| |
Fair
Value |
| |
Carrying
Amount |
| |
Fair Value
|
| ||||||||||||
Asset (liability) | | | | | | | ||||||||||||||||||||||
Derivative assets
|
| |
Level 2
|
| | | | 5,903 | | | | | | 5,903 | | | | | | 9,312 | | | | | | 9,312 | | |
Derivative liabilities
|
| |
Level 2
|
| | | | (13,358) | | | | | | (13,358) | | | | | | (11,423) | | | | | | (11,423) | | |
Total debt
|
| |
Level 2
|
| | | | (2,424,689) | | | | | | (2,466,987) | | | | | | (2,437,198) | | | | | | (2,431,242) | | |
Declaration Date
|
| |
Dividend
Per Share |
| |
Record
Date |
| |
Payment
Date |
| |
Amount
(in $ thousands) |
| ||||||
February 17, 2016
|
| | | $ | 0.075 | | | |
March 3, 2016
|
| |
March 17, 2016
|
| | | $ | 9,279 | | |
| | |
Restricted Units
|
| |||||||||
(in dollars, except number of Restricted Units)
|
| |
Number
|
| |
Weighted
Average Grant Date Fair Value |
| ||||||
Balance as of January 1, 2016
|
| | | | 2,172,529 | | | | | $ | 15.73 | | |
Granted at fair market value
|
| | | | 1,634,829 | | | | | $ | 13.18 | | |
Vested(1) | | | | | (60,071) | | | | | $ | 18.64 | | |
Forfeited
|
| | | | (177,992) | | | | | $ | 16.75 | | |
Balance as of March 31, 2016
|
| | | | 3,569,295 | | | | | $ | 14.46 | | |
|
| | |
Stock Options
|
| |||||||||
(in dollars, except number of stock options)
|
| |
Number
|
| |
Weighted
Average Grant Date Fair Value |
| ||||||
Balance as of January 1, 2016
|
| | | | 1,454,638 | | | | | $ | 6.49 | | |
Granted at fair market value
|
| | | | 1,299,356 | | | | | $ | 4.04 | | |
Forfeited
|
| | | | (121,751) | | | | | $ | 6.35 | | |
Expired
|
| | | | (13,184) | | | | | $ | 6.43 | | |
Balance as of March 31, 2016
|
| | | | 2,619,059 | | | | | $ | 5.28 | | |
|
| | |
Three Months Ended
March 31, |
| |||||||||
(in $ thousands, except for share data)
|
| |
2016
|
| |
2015
|
| ||||||
Numerator – Basic and Diluted Income (Loss) per Share: | | | | ||||||||||
Net income (loss) attributable to the Company
|
| | | $ | 16,585 | | | | | $ | (8,141) | | |
Denominator – Basic Income (Loss) per Share: | | | | ||||||||||
Weighted average common shares outstanding
|
| | | | 123,718,311 | | | | | | 121,411,360 | | |
Income (loss) per share – Basic
|
| | | $ | 0.13 | | | | | $ | (0.07) | | |
Denominator – Diluted Income (Loss) per Share: | | | | ||||||||||
Number of common shares used for basic income (loss) per share
|
| | | | 123,718,311 | | | | | | 121,411,360 | | |
Weighted average effect of dilutive securities
Stock Options |
| | | | 60,096 | | | | | | — | | |
Weighted average common shares outstanding
|
| | | | 123,778,407 | | | | | | 121,411,360 | | |
Income (loss) per share – Diluted
|
| | | $ | 0.13 | | | | | $ | (0.07) | | |
|
| | |
Three Months
Ended March 31, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands, except share data, Reported Segments and RevPas)
|
| |
2016
|
| |
2015
|
| | | | | | | |
%
|
| |||||||||
Net revenue
|
| | | $ | 609,263 | | | | | $ | 572,128 | | | | | $ | 37,135 | | | | | | 6 | | |
Operating income
|
| | | | 79,868 | | | | | | 33,749 | | | | | | 46,119 | | | | | | 137 | | |
Net income (loss)
|
| | | | 17,181 | | | | | | (7,108) | | | | | | 24,289 | | | | | | * | | |
Income (loss) per share – diluted (in $)
|
| | | | 0.13 | | | | | | (0.07) | | | | | | 0.20 | | | | | | * | | |
Adjusted EBITDA(1)
|
| | | | 154,140 | | | | | | 137,458 | | | | | | 16,682 | | | | | | 12 | | |
Adjusted Operating Income(2)
|
| | | | 96,464 | | | | | | 76,724 | | | | | | 19,740 | | | | | | 26 | | |
Adjusted Net Income(3)
|
| | | | 50,955 | | | | | | 29,577 | | | | | | 21,378 | | | | | | 72 | | |
Adjusted Income per Share – diluted(4) (in $)
|
| | | | 0.41 | | | | | | 0.24 | | | | | | 0.17 | | | | | | 71 | | |
Net cash provided by operating activities
|
| | | | 26,204 | | | | | | 11,019 | | | | | | 15,185 | | | | | | 138 | | |
Adjusted Free Cash Flow(5)
|
| | | | (5,070) | | | | | | (21,018) | | | | | | 15,948 | | | | | | 76 | | |
Reported Segments (in thousands)
|
| | | | 89,973 | | | | | | 94,520 | | | | | | (4,547) | | | | | | (5) | | |
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.43 | | | | | $ | 5.73 | | | | | | 0.70 | | | | | | 12 | | |
| | |
Three Months
Ended March 31, |
| |||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| ||||||
Net income (loss)
|
| | | $ | 17,181 | | | | | $ | (7,108) | | |
Adjustments: | | | | ||||||||||
Amortization of intangible assets(1)
|
| | | | 11,139 | | | | | | 18,623 | | |
Share of earnings in equity method investment
|
| | | | — | | | | | | (19) | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | (6,271) | | |
Equity-based compensation and related taxes
|
| | | | 9,101 | | | | | | 12,402 | | |
Corporate and restructuring costs(2)
|
| | | | 7,409 | | | | | | 1,614 | | |
Other – non cash(3)
|
| | | | 5,403 | | | | | | 10,336 | | |
Tax impact of adjustments
|
| | | | 722 | | | | | | — | | |
Adjusted Net Income
|
| | | | 50,955 | | | | | | 29,577 | | |
Adjustments: | | | | ||||||||||
Interest expense, net(4)
|
| | | | 38,439 | | | | | | 39,389 | | |
Remaining provision for income taxes
|
| | | | 7,070 | | | | | | 7,758 | | |
Adjusted Operating Income
|
| | | | 96,464 | | | | | | 76,724 | | |
Adjustments: | | | | ||||||||||
Depreciation and amortization of property and equipment
|
| | | | 41,102 | | | | | | 42,405 | | |
Amortization of customer loyalty payments
|
| | | | 16,574 | | | | | | 18,329 | | |
Adjusted EBITDA
|
| | | $ | 154,140 | | | | | $ | 137,458 | | |
|
| | |
Three Months Ended
March 31, |
| |||||||||
(in percentages)
|
| |
2016
|
| |
2015
|
| ||||||
Asia Pacific
|
| | | | 22 | | | | | | 22 | | |
Europe
|
| | | | 33 | | | | | | 31 | | |
Latin America and Canada
|
| | | | 5 | | | | | | 4 | | |
Middle East and Africa
|
| | | | 13 | | | | | | 13 | | |
International
|
| | | | 73 | | | | | | 70 | | |
United States
|
| | | | 27 | | | | | | 30 | | |
Travel Commerce Platform
|
| | | | 100 | | | | | | 100 | | |
|
| | |
Three Months Ended
March 31, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Net revenue
|
| | | $ | 609,263 | | | | | $ | 572,128 | | | | | $ | 37,135 | | | | | | 6 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
|
| | | | 362,677 | | | | | | 349,231 | | | | | | 13,446 | | | | | | 4 | | |
Selling, general and administrative
|
| | | | 114,477 | | | | | | 128,120 | | | | | | (13,643) | | | | | | (11) | | |
Depreciation and amortization
|
| | | | 52,241 | | | | | | 61,028 | | | | | | (8,787) | | | | | | (14) | | |
Total costs and expenses
|
| | | | 529,395 | | | | | | 538,379 | | | | | | (8,984) | | | | | | (2) | | |
Operating income
|
| | | | 79,868 | | | | | | 33,749 | | | | | | 46,119 | | | | | | 137 | | |
Interest expense, net
|
| | | | (54,895) | | | | | | (39,389) | | | | | | (15,506) | | | | | | (39) | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | 6,271 | | | | | | (6,271) | | | | | | (100) | | |
Income before income taxes and share of earnings in equity method
investment |
| | | | 24,973 | | | | | | 631 | | | | | | 24,342 | | | | | | * | | |
Provision for income taxes
|
| | | | (7,792) | | | | | | (7,758) | | | | | | (34) | | | | | | * | | |
Share of earnings in equity method investment
|
| | | | — | | | | | | 19 | | | | | | (19) | | | | | | (100) | | |
Net income (loss)
|
| | | $ | 17,181 | | | | | $ | (7,108) | | | | | $ | 24,289 | | | | | | * | | |
|
| | |
Three Months Ended
March 31, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands )
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Air
|
| | | $ | 443,884 | | | | | $ | 431,521 | | | | | $ | 12,363 | | | | | | 3 | | |
Beyond Air
|
| | | | 135,002 | | | | | | 110,120 | | | | | | 24,882 | | | | | | 23 | | |
Travel Commerce Platform
|
| | | | 578,886 | | | | | | 541,641 | | | | | | 37,245 | | | | | | 7 | | |
Technology Services
|
| | | | 30,377 | | | | | | 30,487 | | | | | | (110) | | | | | | — | | |
Net revenue
|
| | | $ | 609,263 | | | | | $ | 572,128 | | | | | $ | 37,135 | | | | | | 6 | | |
|
| | |
Three Months Ended
March 31, |
| |
Change
|
| ||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.43 | | | | | $ | 5.73 | | | | | $ | 0.70 | | | | | | 12 | | |
Reported Segments (in thousands)
|
| | | | 89,973 | | | | | | 94,520 | | | | | | (4,547) | | | | | | (5) | | |
| | |
Three Months Ended
March 31, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Asia Pacific
|
| | | $ | 128,495 | | | | | $ | 117,773 | | | | | $ | 10,722 | | | | | | 9 | | |
Europe
|
| | | | 194,847 | | | | | | 165,727 | | | | | | 29,120 | | | | | | 18 | | |
Latin America and Canada
|
| | | | 28,036 | | | | | | 23,761 | | | | | | 4,275 | | | | | | 18 | | |
Middle East and Africa
|
| | | | 73,450 | | | | | | 73,323 | | | | | | 127 | | | | | | — | | |
International
|
| | | | 424,828 | | | | | | 380,584 | | | | | | 44,244 | | | | | | 12 | | |
United States
|
| | | | 154,058 | | | | | | 161,057 | | | | | | (6,999) | | | | | | (4) | | |
Travel Commerce Platform
|
| | | $ | 578,886 | | | | | $ | 541,641 | | | | | $ | 37,245 | | | | | | 7 | | |
|
| | |
Segments (in thousands)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Three Months Ended
March 31, |
| |
Change
|
| |
Three Months
Ended March 31, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| | | | | | | |
%
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| |||||||||||||||||||||
Asia Pacific
|
| | | | 16,989 | | | | | | 16,719 | | | | | | 270 | | | | | | 2 | | | | | $ | 7.56 | | | | | $ | 7.04 | | | | | $ | 0.52 | | | | | | 7 | | |
Europe
|
| | | | 23,133 | | | | | | 22,989 | | | | | | 144 | | | | | | 1 | | | | | $ | 8.42 | | | | | $ | 7.21 | | | | | $ | 1.21 | | | | | | 17 | | |
Latin America and Canada
|
| | | | 4,550 | | | | | | 4,271 | | | | | | 279 | | | | | | 7 | | | | | $ | 6.16 | | | | | $ | 5.56 | | | | | $ | 0.60 | | | | | | 11 | | |
Middle East and Africa
|
| | | | 9,721 | | | | | | 9,929 | | | | | | (208) | | | | | | (2) | | | | | $ | 7.56 | | | | | $ | 7.38 | | | | | $ | 0.18 | | | | | | 2 | | |
International
|
| | | | 54,393 | | | | | | 53,908 | | | | | | 485 | | | | | | 1 | | | | | $ | 7.81 | | | | | $ | 7.06 | | | | | $ | 0.75 | | | | | | 11 | | |
United States
|
| | | | 35,580 | | | | | | 40,612 | | | | | | (5,032) | | | | | | (12) | | | | | $ | 4.33 | | | | | $ | 3.97 | | | | | $ | 0.36 | | | | | | 9 | | |
Travel Commerce Platform
|
| | | | 89,973 | | | | | | 94,520 | | | | | | (4,547) | | | | | | (5) | | | | | $ | 6.43 | | | | | $ | 5.73 | | | | | $ | 0.70 | | | | | | 12 | | |
|
| | |
Three Months Ended
March 31, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Commissions
|
| | | $ | 282,042 | | | | | $ | 270,069 | | | | | $ | 11,973 | | | | | | 4 | | |
Technology costs
|
| | | | 80,635 | | | | | | 79,162 | | | | | | 1,473 | | | | | | 2 | | |
Cost of revenue
|
| | | $ | 362,677 | | | | | $ | 349,231 | | | | | $ | 13,446 | | | | | | 4 | | |
|
| | |
Three Months Ended
March 31, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Workforce
|
| | | $ | 84,571 | | | | | $ | 80,239 | | | | | $ | 4,332 | | | | | | 5 | | |
Non-workforce
|
| | | | 24,449 | | | | | | 23,529 | | | | | | 920 | | | | | | 4 | | |
Sub-total
|
| | | | 109,020 | | | | | | 103,768 | | | | | | 5,252 | | | | | | 5 | | |
Non-core corporate costs
|
| | | | 5,457 | | | | | | 24,352 | | | | | | (18,895) | | | | | | (78) | | |
SG&A | | | | $ | 114,477 | | | | | $ | 128,120 | | | | | $ | (13,643) | | | | | | (11) | | |
|
| | |
Three Months Ended
March 31, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Depreciation on property and equipment
|
| | | $ | 41,102 | | | | | $ | 42,405 | | | | | $ | (1,303) | | | | | | (3) | | |
Amortization of acquired intangible assets
|
| | | | 11,139 | | | | | | 18,623 | | | | | | (7,484) | | | | | | (40) | | |
Total depreciation and amortization
|
| | | $ | 52,241 | | | | | $ | 61,028 | | | | | $ | (8,787) | | | | | | (14) | | |
|
(in $ thousands)
|
| |
March 31,
2016 |
| |||
Cash and cash equivalents
|
| | | $ | 127,993 | | |
Revolving credit facility availability
|
| | | | 101,314 | | |
| | |
Asset (Liability)
|
| | ||||||||||||||
(in $ thousands)
|
| |
March 31,
2016 |
| |
December 31,
2015 |
| |
Change
|
| |||||||||
Accounts receivable, net
|
| | | $ | 253,728 | | | | | $ | 205,686 | | | | | $ | 48,042 | | |
Accrued commissions and incentives
|
| | | | (276,979) | | | | | | (241,358) | | | | | | (35,621) | | |
Deferred revenue and prepaid incentives, net
|
| | | | (18,172) | | | | | | (9,340) | | | | | | (8,832) | | |
Cash and cash equivalents
|
| | | | 127,993 | | | | | | 154,841 | | | | | | (26,848) | | |
Accounts payable and employee related
|
| | | | (139,622) | | | | | | (153,349) | | | | | | 13,727 | | |
Accrued interest
|
| | | | (17,221) | | | | | | (18,800) | | | | | | 1,579 | | |
Current portion of long-term debt
|
| | | | (62,484) | | | | | | (74,163) | | | | | | 11,679 | | |
Taxes
|
| | | | 14,585 | | | | | | 16,850 | | | | | | (2,265) | | |
Other assets (liabilities), net
|
| | | | 33,816 | | | | | | 5,684 | | | | | | 28,132 | | |
Working Capital
|
| | | $ | (84,356) | | | | | $ | (113,949) | | | | | $ | 29,593 | | |
Consolidated Balance Sheets: | | | | | |||||||||||||||
Total current assets
|
| | | $ | 528,392 | | | | | $ | 465,141 | | | | | $ | 63,251 | | |
Total current liabilities
|
| | | | (612,748) | | | | | | (579,090) | | | | | | (33,658) | | |
Working Capital
|
| | | $ | (84,356) | | | | | $ | (113,949) | | | | | $ | 29,593 | | |
|
| | |
March 31, 2016
|
| |
December 31, 2015
|
| |
Change
|
| |||||||||
Accounts receivable, net (in $ thousands)
|
| | | $ | 253,728 | | | | | $ | 205,686 | | | | | $ | 48,042 | | |
Accounts receivable, net – Days Sales Outstanding (“DSO”)
|
| | | | 38 | | | | | | 38 | | | | | | — | | |
| | |
Three Months Ended
March 31, |
| |
Change
|
| ||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |||||||||
Cash provided by (used in): | | | | | |||||||||||||||
Operating activities
|
| | | $ | 26,204 | | | | | $ | 11,019 | | | | | $ | 15,185 | | |
Investing activities
|
| | | | (22,521) | | | | | | (20,813) | | | | | | (1,708) | | |
Financing activities
|
| | | | (31,039) | | | | | | (20,821) | | | | | | (10,218) | | |
Effect of exchange rate changes
|
| | | | 508 | | | | | | (973) | | | | | | 1,481 | | |
Net decrease in cash and cash equivalents
|
| | | $ | (26,848) | | | | | $ | (31,588) | | | | | $ | 4,740 | | |
|
| | |
Three Months Ended
March 31, |
| |||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| ||||||
Adjusted EBITDA
|
| | | $ | 154,140 | | | | | $ | 137,458 | | |
Interest payments
|
| | | | (37,480) | | | | | | (37,901) | | |
Tax payments
|
| | | | (4,549) | | | | | | (7,263) | | |
Customer loyalty payments
|
| | | | (25,307) | | | | | | (23,400) | | |
Changes in working capital
|
| | | | (49,048) | | | | | | (50,588) | | |
Pensions liability contribution
|
| | | | (1,118) | | | | | | (672) | | |
Changes in other assets and liabilities
|
| | | | (7,108) | | | | | | (3,512) | | |
Other adjusting items(1)
|
| | | | (3,326) | | | | | | (3,103) | | |
Net cash provided by operating activities
|
| | | | 26,204 | | | | | | 11,019 | | |
Add: other adjusting items(1)
|
| | | | 3,326 | | | | | | 3,103 | | |
Less: capital expenditures on property and equipment additions
|
| | | | (22,521) | | | | | | (27,084) | | |
Less: repayment of capital lease obligations and other indebtedness
|
| | | | (12,079) | | | | | | (8,056) | | |
Adjusted Free Cash Flow
|
| | | $ | (5,070) | | | | | $ | (21,018) | | |
|
| | |
Three Months Ended
March 31, |
| |||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| ||||||
Cash additions to software developed for internal use
|
| | | $ | 18,558 | | | | | $ | 17,742 | | |
Cash additions to computer equipment
|
| | | | 3,963 | | | | | | 9,342 | | |
Total | | | | $ | 22,521 | | | | | $ | 27,084 | | |
|
(in $ thousands)
|
| |
Interest
rate |
| |
Maturity
|
| |
March 31,
2016 |
| |
December 31,
2015 |
| ||||||
Senior Secured Credit Agreement | | | | | | ||||||||||||||
Term loans
|
| | | | | ||||||||||||||
Dollar denominated(1)(2)
|
| |
L+4.75%
|
| |
September 2021
|
| | | $ | 2,296,034 | | | | | $ | 2,303,315 | | |
Revolver borrowings
|
| | | | | ||||||||||||||
Dollar denominated
|
| |
L+5.00%
|
| |
September 2019
|
| | | | — | | | | | | — | | |
Capital leases and other indebtedness
|
| | | | | | | | | | 128,655 | | | | | | 133,883 | | |
Total debt
|
| | | | | | | | | $ | 2,424,689 | | | | | $ | 2,437,198 | | |
Less: cash and cash equivalents
|
| | | | | | | | | | (127,993) | | | | | | (154,841) | | |
Net Debt(3)
|
| | | | | | | | | $ | 2,296,696 | | | | | $ | 2,282,357 | | |
|
| | | | TRAVELPORT WORLDWIDE LIMITED | |
| Date: May 5, 2016 | | |
By:
/s/ Bernard Bot
Bernard Bot
Executive Vice President and Chief Financial Officer |
|
| Date: May 5, 2016 | | |
By:
/s/ Antonios Basoukeas
Antonios Basoukeas
Chief Accounting Officer |
|
|
Exhibit
No. |
| |
Description
|
|
| 3.1 | | | Amended and Restated Memorandum of Association of Travelport Worldwide Limited (Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Travelport Worldwide Limited on September 30, 2014). | |
| 3.2 | | | Amended and Restated Bye-laws of Travelport Worldwide Limited (Incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed by Travelport Worldwide Limited on September 30, 2014). | |
| 10.1 | | | Form of 2016 Travelport Worldwide Limited Management Equity Award Agreement (US Named Executive Officers) | |
| 10.2 | | | Form of 2016 Travelport Worldwide Limited Management Equity Award Agreement (UK Named Executive Officers) | |
| 31.1 | | | Certification of Chief Executive Officer Pursuant to Rules 13(a)-14(a) and 15(d)-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2 | | | Certification of Chief Financial Officer Pursuant to Rules 13(a)-14(a) and 15(d)-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32 | | | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.INS | | | XBRL Instance Document | |
| 101.SCH | | | XBRL Taxonomy Extension Schema Document | |
| 101.CAL | | | XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.LAB | | | XBRL Taxonomy Extension Labels Linkbase Document | |
| 101.PRE | | | XBRL Taxonomy Extension Presentation Linkbase Document | |
| 101.DEF | | | XBRL Taxonomy Extension Definition Linkbase Document | |