CALCULATION OF REGISTRATION FEE
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Title of each class of securities to be registered
|
| |
Amount
to be registered |
| |
Maximum
offering price per share |
| |
Maximum
aggregate offering price |
| |
Amount of
registration fee |
| ||||||||||||
Common Shares, $0.0025 par value per share
|
| | | | 7,986,979 | | | | | $ | 13.925 | | | | | $ | 111,218,682 | | | | | $ | 11,199.73(1) | | |
|
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 14.00 | | | | | $ | 111,817,706.00 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 0.075 | | | | | $ | 599,023.425 | | |
Proceeds, before expenses, to the Selling Shareholders
|
| | | $ | 13.925 | | | | | $ | 111,218,682.575 | | |
| | | | | S-ii | | | |
| | | | | S-iii | | | |
| | | | | S-iv | | | |
| | | | | S-iv | | | |
| | | | | S-v | | | |
| | | | | S-vi | | | |
| | | | | S-1 | | | |
| | | | | S-20 | | | |
| | | | | S-23 | | | |
| | | | | S-24 | | | |
| | | | | S-25 | | | |
| | | | | S-26 | | | |
| | | | | S-27 | | | |
| | | | | S-33 | | | |
| | | | | S-39 | | | |
| | | | | S-39 | | | |
| | | | | S-39 | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | 4 | | | |
| | | | | 5 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 12 | | | |
| | | | | 15 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 18 | | | |
| | | | | 19 | | | |
| | | | | 19 | | |
(in $ millions, except share and per share data)
|
| |
Six Months Ended
June 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
|
2016
|
| |
2015
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||
Net revenue
|
| | | $ | 1,215 | | | | | $ | 1,126 | | | | | $ | 2,221 | | | | | $ | 2,148 | | | | | $ | 2,076 | | |
Costs and expenses: | | | | | | | |||||||||||||||||||||||||
Cost of revenue
|
| | | | 739 | | | | | | 684 | | | | | | 1,340 | | | | | | 1,324 | | | | | | 1,266 | | |
Selling, general and administrative
|
| | | | 254 | | | | | | 226 | | | | | | 456 | | | | | | 430 | | | | | | 396 | | |
Depreciation and amortization
|
| | | | 104 | | | | | | 119 | | | | | | 234 | | | | | | 233 | | | | | | 206 | | |
Total costs and expenses
|
| | | | 1,097 | | | | | | 1,029 | | | | | | 2,030 | | | | | | 1,987 | | | | | | 1,868 | | |
Operating income
|
| | | | 118 | | | | | | 97 | | | | | | 191 | | | | | | 161 | | | | | | 208 | | |
Interest expense, net
|
| | | | (100) | | | | | | (78) | | | | | | (149) | | | | | | (278) | | | | | | (356) | | |
Loss on early extinguishment of debt
|
| | | | (3) | | | | | | — | | | | | | — | | | | | | (108) | | | | | | (49) | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | 6 | | | | | | 6 | | | | | | 356 | | | | | | — | | |
Income (loss) from continuing operations before income
taxes and share of (losses) earnings in equity method investments |
| | | | 15 | | | | | | 25 | | | | | | 48 | | | | | | 131 | | | | | | (197) | | |
Provision for income taxes
|
| | | | (12) | | | | | | (16) | | | | | | (27) | | | | | | (39) | | | | | | (20) | | |
Share of (losses) earnings in equity method
investments |
| | | | — | | | | | | — | | | | | | (1) | | | | | | (1) | | | | | | 10 | | |
Net income (loss) from continuing operations
|
| | | | 3 | | | | | | 9 | | | | | | 20 | | | | | | 91 | | | | | | (207) | | |
Gain from disposal of discontinued operations, net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4 | | |
Net income (loss)
|
| | | | 3 | | | | | | 9 | | | | | | 20 | | | | | | 91 | | | | | | (203) | | |
Net income attributable to non-controlling interest in subsidiaries
|
| | | | (1) | | | | | | (2) | | | | | | (4) | | | | | | (5) | | | | | | (3) | | |
Net income (loss) attributable to the Company
|
| | | $ | 2 | | | | | $ | 7 | | | | | $ | 16 | | | | | $ | 86 | | | | | $ | (206) | | |
Income (loss) per common share–Basic: | | | | | | | |||||||||||||||||||||||||
Income (loss) per share–continuing operations
|
| | | $ | 0.01 | | | | | $ | 0.06 | | | | | $ | 0.13 | | | | | $ | 1.01 | | | | | $ | (4.62) | | |
Income per share–discontinued operations
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.10 | | |
Basic income (loss) per share
|
| | | $ | 0.01 | | | | | $ | 0.06 | | | | | $ | 0.13 | | | | | $ | 1.01 | | | | | $ | (4.52) | | |
Weighted average common shares outstanding–Basic
|
| | | | 123,771,642 | | | | | | 121,842,792 | | | | | | 122,340,491 | | | | | | 85,771,655 | | | | | | 45,522,506 | | |
Income (loss) per common share–Diluted: | | | | | | | |||||||||||||||||||||||||
Income (loss) per share–continuing operations
|
| | | $ | 0.01 | | | | | $ | 0.06 | | | | | $ | 0.13 | | | | | $ | 0.98 | | | | | $ | (4.62) | | |
Income per share–discontinued operations
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 0.10 | | |
Diluted income (loss) per share
|
| | | $ | 0.01 | | | | | $ | 0.06 | | | | | $ | 0.13 | | | | | $ | 0.98 | | | | | $ | (4.52) | | |
Weighted average common shares
outstanding–Diluted |
| | | | 123,912,681 | | | | | | 122,672,763 | | | | | | 122,539,422 | | | | | | 87,864,090 | | | | | | 45,522,506 | | |
|
(in $ millions, except percentages, segment data or otherwise
specified) |
| |
Six Months Ended
June 30, |
| |
Year Ended December 31,
|
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|
2016
|
| |
2015
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||
Adjusted Net Income (Loss)(1)
|
| | | $ | 85 | | | | | $ | 65 | | | | | $ | 122 | | | | | $ | (11) | | | | | $ | (48) | | |
Adjusted Operating Income(1)
|
| | | | 179 | | | | | | 157 | | | | | | 306 | | | | | | 308 | | | | | | 328 | | |
Adjusted EBITDA(1)
|
| | | | 293 | | | | | | 274 | | | | | | 535 | | | | | | 540 | | | | | | 517 | | |
Adjusted Free Cash Flow(2)
|
| | | | 47 | | | | | | 33 | | | | | | 134 | | | | | | (39) | | | | | | 20 | | |
Capital Expenditures
|
| | | | 69 | | | | | | 68 | | | | | | 142 | | | | | | 144 | | | | | | 127 | | |
Adjusted Income (Loss) per Share-Diluted(3)
|
| | | | 0.69 | | | | | | 0.53 | | | | | | 1.00 | | | | | | (0.12) | | | | | | (1.06) | | |
Travel Commerce Platform revenue: | | | | | | | |||||||||||||||||||||||||
Air revenue
|
| | | $ | 870 | | | | | $ | 832 | | | | | $ | 1,603 | | | | | $ | 1,607 | | | | | $ | 1,588 | | |
Beyond Air revenue
|
| | | | 283 | | | | | | 232 | | | | | | 492 | | | | | | 424 | | | | | | 371 | | |
Total Travel Commerce Platform revenue
|
| | | $ | 1,153 | | | | | $ | 1,064 | | | | | $ | 2,095 | | | | | $ | 2,031 | | | | | $ | 1,959 | | |
% of net revenue
|
| | | | 95% | | | | | | 94% | | | | | | 94% | | | | | | 95% | | | | | | 94% | | |
% of Air segment revenue from away bookings
|
| | | | 67% | | | | | | 65% | | | | | | 65% | | | | | | 62% | | | | | | 62% | | |
Beyond Air revenue as % of net revenue
|
| | | | 23% | | | | | | 21% | | | | | | 22% | | | | | | 20% | | | | | | 18% | | |
Travel Commerce Platform revenue by region: | | | | | | | |||||||||||||||||||||||||
Asia Pacific
|
| | | $ | 259 | | | | | $ | 233 | | | | | $ | 460 | | | | | $ | 400 | | | | | $ | 369 | | |
Europe
|
| | | | 378 | | | | | | 316 | | | | | | 634 | | | | | | 615 | | | | | | 596 | | |
Latin America and Canada
|
| | | | 56 | | | | | | 48 | | | | | | 99 | | | | | | 88 | | | | | | 86 | | |
Middle East and Africa
|
| | | | 151 | | | | | | 148 | | | | | | 289 | | | | | | 280 | | | | | | 277 | | |
International
|
| | | | 844 | | | | | | 745 | | | | | | 1,482 | | | | | | 1,383 | | | | | | 1,328 | | |
% of Travel Commerce Platform revenue
|
| | | | 73% | | | | | | 70% | | | | | | 71% | | | | | | 68% | | | | | | 68% | | |
United States
|
| | | | 309 | | | | | | 319 | | | | | | 613 | | | | | | 648 | | | | | | 631 | | |
Total Travel Commerce Platform revenue
|
| | | $ | 1,153 | | | | | $ | 1,064 | | | | | $ | 2,095 | | | | | $ | 2,031 | | | | | $ | 1,959 | | |
Reported Segments (in millions)
|
| | | | 177 | | | | | | 182 | | | | | | 342 | | | | | | 356 | | | | | | 350 | | |
Travel Commerce Platform RevPas: | | | | | | | |||||||||||||||||||||||||
International RevPas (in dollars)
|
| | | $ | 7.93 | | | | | $ | 7.15 | | | | | $ | 7.40 | | | | | $ | 6.98 | | | | | $ | 6.81 | | |
United States RevPas (in dollars)
|
| | | $ | 4.39 | | | | | $ | 4.12 | | | | | $ | 4.34 | | | | | $ | 4.10 | | | | | $ | 4.07 | | |
Travel Commerce Platform RevPas (in dollars)
|
| | | $ | 6.52 | | | | | $ | 5.86 | | | | | $ | 6.13 | | | | | $ | 5.70 | | | | | $ | 5.60 | | |
Transaction value processed on the Travel Commerce
Platform |
| | | $ | 40,921 | | | | | $ | 43,454 | | | | | $ | 82,430 | | | | | $ | 89,969 | | | | | $ | 87,666 | | |
Hotel room nights sold (in millions)
|
| | | | 33 | | | | | | 33 | | | | | | 65 | | | | | | 63 | | | | | | 61 | | |
Car rentals days sold (in millions)
|
| | | | 46 | | | | | | 45 | | | | | | 91 | | | | | | 85 | | | | | | 76 | | |
Hospitality segments per 100 airline tickets issued(a)
|
| | | | 46 | | | | | | 45 | | | | | | 47 | | | | | | 43 | | | | | | 41 | | |
(in $ millions)
|
| |
As of
June 30, |
| |
As of December 31,
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|
2016
|
| |
2015
|
| |
2014
|
| |
2013
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Cash and cash equivalents
|
| | | $ | 127 | | | | | $ | 155 | | | | | $ | 139 | | | | | $ | 154 | | |
Total current assets (excludes cash and cash equivalents)
|
| | | | 363 | | | | | | 310 | | | | | | 273 | | | | | | 312 | | |
Property and equipment, net
|
| | | | 430 | | | | | | 460 | | | | | | 414 | | | | | | 428 | | |
Goodwill and other intangible assets, net
|
| | | | 1,923 | | | | | | 1,916 | | | | | | 1,930 | | | | | | 1,971 | | |
All other non-current assets(a)
|
| | | | 58 | | | | | | 64 | | | | | | 136 | | | | | | 223 | | |
Total assets
|
| | | $ | 2,901 | | | | | $ | 2,905 | | | | | $ | 2,892 | | | | | $ | 3,088 | | |
Total current liabilities
|
| | | $ | 583 | | | | | $ | 579 | | | | | $ | 555 | | | | | $ | 681 | | |
Long-term debt(a)
|
| | | | 2,347 | | | | | | 2,363 | | | | | | 2,384 | | | | | | 3,528 | | |
All other non-current liabilities
|
| | | | 295 | | | | | | 286 | | | | | | 291 | | | | | | 190 | | |
Total liabilities
|
| | | | 3,225 | | | | | | 3,228 | | | | | | 3,230 | | | | | | 4,399 | | |
Total equity (deficit)
|
| | | | (324) | | | | | | (323) | | | | | | (338) | | | | | | (1,311) | | |
Total liabilities and equity
|
| | | $ | 2,901 | | | | | $ | 2,905 | | | | | $ | 2,892 | | | | | $ | 3,088 | | |
|
(in $ millions)
|
| |
Six Months Ended
June 30, |
| |
Year Ended December 31,
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|
2016
|
| |
2015
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||
Net income (loss) from continuing operations
|
| | | $ | 3 | | | | | $ | 9 | | | | | $ | 20 | | | | | $ | 91 | | | | | $ | (207) | | |
Adjustments: | | | | | | | |||||||||||||||||||||||||
Amortization of intangible assets(a)
|
| | | | 24 | | | | | | 38 | | | | | | 72 | | | | | | 77 | | | | | | 80 | | |
Loss on early extinguishment of debt
|
| | | | 3 | | | | | | — | | | | | | — | | | | | | 108 | | | | | | 49 | | |
Share of losses (earnings) in equity method investments
|
| | | | — | | | | | | — | | | | | | 1 | | | | | | 1 | | | | | | (10) | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | (6) | | | | | | (6) | | | | | | (356) | | | | | | — | | |
Equity-based compensation and related taxes
|
| | | | 16 | | | | | | 21 | | | | | | 29 | | | | | | 44 | | | | | | 6 | | |
Corporate and restructuring costs(b)
|
| | | | 15 | | | | | | 8 | | | | | | 19 | | | | | | 14 | | | | | | 7 | | |
Litigation and related costs(c)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12 | | |
Other–non cash(d)
|
| | | | 28 | | | | | | (7) | | | | | | (14) | | | | | | 12 | | | | | | 15 | | |
Tax impact of adjustments(e)
|
| | | | (4) | | | | | | 2 | | | | | | 1 | | | | | | (2) | | | | | | — | | |
Adjusted Net Income (Loss)
|
| | | | 85 | | | | | | 65 | | | | | | 122 | | | | | | (11) | | | | | | (48) | | |
Adjustments: | | | | | | | |||||||||||||||||||||||||
Interest expense, net(f)
|
| | | | 78 | | | | | | 78 | | | | | | 158 | | | | | | 278 | | | | | | 356 | | |
Remaining provision for income taxes
|
| | | | 16 | | | | | | 14 | | | | | | 26 | | | | | | 41 | | | | | | 20 | | |
Adjusted Operating Income
|
| | | | 179 | | | | | | 157 | | | | | | 306 | | | | | | 308 | | | | | | 328 | | |
Adjustments: | | | | | | | |||||||||||||||||||||||||
Depreciation and amortization of property and
equipment |
| | | | 80 | | | | | | 81 | | | | | | 162 | | | | | | 156 | | | | | | 126 | | |
Amortization of customer loyalty payments
|
| | | | 34 | | | | | | 36 | | | | | | 67 | | | | | | 76 | | | | | | 63 | | |
Adjusted EBITDA
|
| | | $ | 293 | | | | | $ | 274 | | | | | $ | 535 | | | | | $ | 540 | | | | | $ | 517 | | |
|
(in $ millions)
|
| |
Six Months Ended
June 30, |
| |
Year Ended December 31,
|
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|
2016
|
| |
2015
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||||
Adjusted EBITDA
|
| | | $ | 293 | | | | | $ | 274 | | | | | $ | 535 | | | | | $ | 540 | | | | | $ | 517 | | |
Interest payments
|
| | | | (87) | | | | | | (73) | | | | | | (146) | | | | | | (294) | | | | | | (273) | | |
Tax payments
|
| | | | (9) | | | | | | (13) | | | | | | (25) | | | | | | (26) | | | | | | (29) | | |
Customer loyalty payments
|
| | | | (44) | | | | | | (42) | | | | | | (75) | | | | | | (93) | | | | | | (78) | | |
Changes in working capital
|
| | | | (30) | | | | | | (53) | | | | | | (25) | | | | | | (18) | | | | | | 11 | | |
Pension liability contribution
|
| | | | (2) | | | | | | (2) | | | | | | (3) | | | | | | (7) | | | | | | (3) | | |
Changes in other assets and liabilities
|
| | | | (5) | | | | | | 10 | | | | | | 15 | | | | | | 3 | | | | | | 2 | | |
Other adjusting items(a)
|
| | | | (13) | | | | | | (9) | | | | | | (14) | | | | | | (47) | | | | | | (47) | | |
Net cash provided by operating activities
|
| | | | 103 | | | | | | 92 | | | | | | 262 | | | | | | 58 | | | | | | 100 | | |
Add: other adjusting items(a)
|
| | | | 13 | | | | | | 9 | | | | | | 14 | | | | | | 47 | | | | | | 47 | | |
Less: capital expenditures on property and
equipment additions |
| | | | (45) | | | | | | (52) | | | | | | (106) | | | | | | (112) | | | | | | (107) | | |
Less: repayment of capital lease obligations and other indebtedness
|
| | | | (24) | | | | | | (16) | | | | | | (36) | | | | | | (32) | | | | | | (20) | | |
Adjusted Free Cash Flow
|
| | | $ | 47 | | | | | $ | 33 | | | | | $ | 134 | | | | | $ | (39) | | | | | $ | 20 | | |
|
| | |
Six Months Ended
June 30, |
| |
Year Ended December 31,
|
| ||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
2015
|
| |
2014
|
| |
2013
|
| |||||||||||||||
Income (loss) per share–diluted
|
| | | $ | 0.01 | | | | | $ | 0.06 | | | | | $ | 0.13 | | | | | $ | 0.98 | | | | | $ | (4.52) | | |
Per share adjustments to net (loss) income to determine Adjusted Income (Loss) per Share–diluted
|
| | | | 0.68 | | | | | | 0.47 | | | | | | 0.87 | | | | | | (1.10) | | | | | | 3.46 | | |
Adjusted Income (Loss) per Share–diluted
|
| | | $ | 0.69 | | | | | $ | 0.53 | | | | | $ | 1.00 | | | | | $ | (0.12) | | | | | $ | (1.06) | | |
|
2016
|
| |
High
|
| |
Low
|
| ||||||
First Quarter (ending March 31, 2016)
|
| | | $ | 14.26 | | | | | $ | 8.50 | | |
Second Quarter (ending June 30, 2016)
|
| | | $ | 14.82 | | | | | $ | 11.28 | | |
Third Quarter (through September 14, 2016)
|
| | | $ | 14.31 | | | | | $ | 12.77 | | |
2015
|
| |
High
|
| |
Low
|
| ||||||
First Quarter (ending March 31, 2015)
|
| | | $ | 18.30 | | | | | $ | 14.76 | | |
Second Quarter (ending June 30, 2015)
|
| | | $ | 17.18 | | | | | $ | 13.51 | | |
Third Quarter (ending September 30, 2015)
|
| | | $ | 15.34 | | | | | $ | 11.91 | | |
Fourth Quarter (ending December 31, 2015)
|
| | | $ | 15.22 | | | | | $ | 12.68 | | |
2014
|
| |
High
|
| |
Low
|
| ||||||
Third Quarter (starting September 25, 2014 and ending September 30, 2014)
|
| | | $ | 16.46 | | | | | $ | 16.25 | | |
Fourth Quarter (ending December 31, 2014)
|
| | | $ | 18.07 | | | | | $ | 12.06 | | |
Name and Address of Beneficial Owner(1)
|
| |
Common shares owned
before the offering |
| |
Common
shares to be sold in this offering |
| |
Common shares owned
after the offering |
| |||||||||||||||||||||
|
Number
|
| |
Percentage
|
| |
Number
|
| |
Number
|
| |
Percentage
|
| |||||||||||||||||
Angelo, Gordon Funds(2)
|
| | | | 7,986,979 | | | | | | 6.44% | | | | | | 7,986,979 | | | | | | — | | | | | | — | | |
Name
|
| |
Number of Shares
|
| |||
Morgan Stanley & Co. LLC
|
| | | | 7,986,979 | | |
| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 14.00 | | | | | $ | 111,817,706.00 | | |
Underwriting discounts and commissions
|
| | | $ | 0.075 | | | | | $ | 599,023.425 | | |
Proceeds, before expenses, to the Selling Shareholders
|
| | | $ | 13.925 | | | | | $ | 111,218,682.575 | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | 4 | | | |
| | | | | 5 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 12 | | | |
| | | | | 15 | | | |
| | | | | 16 | | | |
| | | | | 17 | | | |
| | | | | 18 | | | |
| | | | | 19 | | | |
| | | | | 19 | | |
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Nine months
ended September 30, 2015 |
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Year ended December 31,
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2014
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2013
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2012
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2011
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2010
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Ratio of earnings to fixed charges and preferred dividends
|
| | | | 1.32x | | | | | | 1.44x | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |