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Bermuda
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98-0505105
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(State or other jurisdiction of
incorporation or organization) |
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(I.R.S. Employer
Identification Number) |
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Large accelerated filer ☒
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Accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company ☐
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(Do not check if a smaller reporting company)
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Page
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PART I. FINANCIAL INFORMATION
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| | | | | | | 1 | | | |
Item 1 | | | | | | | 3 | | | |
| | | | | | | 3 | | | |
| | | | | | | 4 | | | |
| | | | | | | 5 | | | |
| | | | | | | 6 | | | |
| | | | | | | 8 | | | |
| | | | | | | 9 | | | |
Item 2 | | | | | | | 22 | | | |
Item 3 | | | | | | | 42 | | | |
Item 4 | | | | | | | 43 | | | |
PART II. OTHER INFORMATION
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Item 1 | | | | | | | 44 | | | |
| | | | | | 44 | | | ||
Item 2 | | | | | | | 44 | | | |
Item 3 | | | | | | | 44 | | | |
Item 4 | | | | | | | 44 | | | |
Item 5 | | | | | | | 44 | | | |
Item 6 | | | | | | | 44 | | | |
| | | | | | | 45 | | |
(in $ thousands, except share data)
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Three Months
Ended September 30, 2016 |
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Three Months
Ended September 30, 2015 |
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Nine Months
Ended September 30, 2016 |
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Nine Months
Ended September 30, 2015 |
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Net revenue
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| | | $ | 590,756 | | | | | $ | 559,837 | | | | | $ | 1,805,924 | | | | | $ | 1,686,167 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
|
| | | | 351,534 | | | | | | 335,724 | | | | | | 1,090,816 | | | | | | 1,020,005 | | |
Selling, general and administrative
|
| | | | 123,406 | | | | | | 113,752 | | | | | | 377,177 | | | | | | 340,031 | | |
Depreciation and amortization
|
| | | | 53,581 | | | | | | 56,270 | | | | | | 158,068 | | | | | | 175,145 | | |
Total costs and expenses
|
| | | | 528,521 | | | | | | 505,746 | | | | | | 1,626,061 | | | | | | 1,535,181 | | |
Operating income
|
| | | | 62,235 | | | | | | 54,091 | | | | | | 179,863 | | | | | | 150,986 | | |
Interest expense, net
|
| | | | (29,813) | | | | | | (40,346) | | | | | | (129,821) | | | | | | (118,486) | | |
Loss on early extinguishment of debt
|
| | | | (955) | | | | | | — | | | | | | (3,626) | | | | | | — | | |
Gain on sale of shares of Orbitz
Worldwide |
| | | | — | | | | | | — | | | | | | — | | | | | | 6,271 | | |
Income before income taxes and share of losses in equity method investment
|
| | | | 31,467 | | | | | | 13,745 | | | | | | 46,416 | | | | | | 38,771 | | |
Provision for income taxes
|
| | | | (10,063) | | | | | | (8,453) | | | | | | (22,260) | | | | | | (24,003) | | |
Share of losses in equity method
investment |
| | | | — | | | | | | (342) | | | | | | — | | | | | | (517) | | |
Net income
|
| | | | 21,404 | | | | | | 4,950 | | | | | | 24,156 | | | | | | 14,251 | | |
Net income attributable to non-controlling
interest in subsidiaries |
| | | | (566) | | | | | | (1,270) | | | | | | (1,564) | | | | | | (3,384) | | |
Net income attributable to the Company
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| | | $ | 20,838 | | | | | $ | 3,680 | | | | | $ | 22,592 | | | | | $ | 10,867 | | |
Income per share – Basic: | | | | | | ||||||||||||||||||||
Income per share
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| | | $ | 0.17 | | | | | $ | 0.03 | | | | | $ | 0.18 | | | | | $ | 0.09 | | |
Weighted average common shares outstanding – Basic
|
| | | | 123,920,699 | | | | | | 122,495,392 | | | | | | 123,821,339 | | | | | | 122,062,715 | | |
Income per share – Diluted: | | | | | | ||||||||||||||||||||
Income per share
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| | | $ | 0.17 | | | | | $ | 0.03 | | | | | $ | 0.18 | | | | | $ | 0.09 | | |
Weighted average common shares outstanding – Diluted
|
| | | | 124,291,687 | | | | | | 122,724,141 | | | | | | 124,209,052 | | | | | | 122,563,359 | | |
Cash dividends declared per common
share |
| | | $ | 0.075 | | | | | $ | 0.075 | | | | | $ | 0.225 | | | | | $ | 0.225 | | |
(in $ thousands)
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Three Months
Ended September 30, 2016 |
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Three Months
Ended September 30, 2015 |
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Nine Months
Ended September 30, 2016 |
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Nine Months
Ended September 30, 2015 |
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Net income
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| | | $ | 21,404 | | | | | $ | 4,950 | | | | | $ | 24,156 | | | | | $ | 14,251 | | |
Other comprehensive income (loss), net of tax: | | | | | | ||||||||||||||||||||
Currency translation adjustment, net of tax
|
| | | | 2,475 | | | | | | (2,676) | | | | | | 5,135 | | | | | | (8,595) | | |
Changes in gain on available-for-sale securities, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | (6,376) | | |
Unrealized actuarial gain (loss) on defined benefit plans, net of tax
|
| | | | 2,472 | | | | | | (47) | | | | | | 6,974 | | | | | | (126) | | |
Other comprehensive income (loss), net of tax
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| | | | 4,947 | | | | | | (2,723) | | | | | | 12,109 | | | | | | (15,097) | | |
Comprehensive income (loss)
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| | | | 26,351 | | | | | | 2,227 | | | | | | 36,265 | | | | | | (846) | | |
Comprehensive income attributable to non-controlling interest in subsidiaries
|
| | | | (566) | | | | | | (1,270) | | | | | | (1,564) | | | | | | (3,384) | | |
Comprehensive income (loss) attributable to the Company
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| | | $ | 25,785 | | | | | $ | 957 | | | | | $ | 34,701 | | | | | $ | (4,230) | | |
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(in $ thousands, except share data)
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September 30,
2016 |
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December 31,
2015 |
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Assets | | | | ||||||||||
Current assets: | | | | ||||||||||
Cash and cash equivalents
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| | | $ | 138,400 | | | | | $ | 154,841 | | |
Accounts receivable (net of allowances for doubtful accounts of $13,172 and $14,575)
|
| | | | 245,257 | | | | | | 205,686 | | |
Deferred income taxes
|
| | | | 5,135 | | | | | | 5,133 | | |
Other current assets
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| | | | 115,412 | | | | | | 99,481 | | |
Total current assets
|
| | | | 504,204 | | | | | | 465,141 | | |
Property and equipment, net
|
| | | | 421,065 | | | | | | 459,848 | | |
Goodwill
|
| | | | 1,085,155 | | | | | | 1,067,415 | | |
Trademarks and tradenames
|
| | | | 313,961 | | | | | | 313,961 | | |
Other intangible assets, net
|
| | | | 524,575 | | | | | | 534,540 | | |
Deferred income taxes
|
| | | | 10,525 | | | | | | 10,348 | | |
Other non-current assets
|
| | | | 44,544 | | | | | | 54,176 | | |
Total assets
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| | | $ | 2,904,029 | | | | | $ | 2,905,429 | | |
Liabilities and equity | | | | ||||||||||
Current liabilities: | | | | ||||||||||
Accounts payable
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| | | $ | 66,049 | | | | | $ | 74,277 | | |
Accrued expenses and other current liabilities
|
| | | | 494,338 | | | | | | 430,650 | | |
Current portion of long-term debt
|
| | | | 65,049 | | | | | | 74,163 | | |
Total current liabilities
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| | | | 625,436 | | | | | | 579,090 | | |
Long-term debt
|
| | | | 2,293,340 | | | | | | 2,363,035 | | |
Deferred income taxes
|
| | | | 60,900 | | | | | | 59,663 | | |
Other non-current liabilities
|
| | | | 225,641 | | | | | | 226,499 | | |
Total liabilities
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| | | | 3,205,317 | | | | | | 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 September 30, 2016 and December 31, 2015)
|
| | | | — | | | | | | — | | |
Common shares ($0.0025 par value; 560,000,000 shares authorized; 124,784,549 shares and 124,476,382 shares issued; 123,920,248 shares and 123,631,474 shares outstanding as of September 30, 2016 and December 31, 2015, respectively)
|
| | | | 312 | | | | | | 311 | | |
Additional paid in capital
|
| | | | 2,710,753 | | | | | | 2,715,538 | | |
Treasury shares, at cost (864,301 shares and 844,908 shares as of September 30, 2016 and December 31, 2015, respectively)
|
| | | | (13,533) | | | | | | (13,331) | | |
Accumulated deficit
|
| | | | (2,859,066) | | | | | | (2,881,658) | | |
Accumulated other comprehensive loss
|
| | | | (165,398) | | | | | | (177,507) | | |
Total shareholders’ equity (deficit)
|
| | | | (326,932) | | | | | | (356,647) | | |
Equity attributable to non-controlling interest in subsidiaries
|
| | | | 25,644 | | | | | | 33,789 | | |
Total equity (deficit)
|
| | | | (301,288) | | | | | | (322,858) | | |
Total liabilities and equity
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| | | $ | 2,904,029 | | | | | $ | 2,905,429 | | |
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(in $ thousands)
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Nine Months
Ended September 30, 2016 |
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Nine Months
Ended September 30, 2015 |
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Operating activities | | | | ||||||||||
Net income
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| | | $ | 24,156 | | | | | $ | 14,251 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
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Depreciation and amortization
|
| | | | 158,068 | | | | | | 175,145 | | |
Amortization of customer loyalty payments
|
| | | | 55,193 | | | | | | 50,797 | | |
Allowance for prepaid incentives
|
| | | | 10,684 | | | | | | — | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | (6,271) | | |
Amortization of debt finance costs and debt discount
|
| | | | 7,922 | | | | | | 7,752 | | |
Loss on early extinguishment of debt
|
| | | | 3,626 | | | | | | — | | |
Loss (gain) on foreign exchange derivative instruments
|
| | | | 3,159 | | | | | | (6,565) | | |
Loss on interest rate derivative instruments
|
| | | | 17,471 | | | | | | — | | |
Share of losses in equity method investment
|
| | | | — | | | | | | 517 | | |
Equity-based compensation
|
| | | | 21,760 | | | | | | 24,681 | | |
Deferred income taxes
|
| | | | 869 | | | | | | 4,271 | | |
Customer loyalty payments
|
| | | | (56,533) | | | | | | (55,679) | | |
Pension liability contribution
|
| | | | (2,440) | | | | | | (2,276) | | |
Changes in assets and liabilities: | | | | ||||||||||
Accounts receivable
|
| | | | (38,802) | | | | | | (49,091) | | |
Other current assets
|
| | | | (15,501) | | | | | | (39,233) | | |
Accounts payable, accrued expenses and other current liabilities
|
| | | | 19,315 | | | | | | 31,963 | | |
Other
|
| | | | 4,911 | | | | | | 3,473 | | |
Net cash provided by operating activities
|
| | | $ | 213,858 | | | | | $ | 153,735 | | |
Investing activities | | | | ||||||||||
Property and equipment additions
|
| | | $ | (70,130) | | | | | $ | (76,385) | | |
Business acquired, net of cash
|
| | | | (15,009) | | | | | | (60,533) | | |
Proceeds from sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | 6,271 | | |
Net cash used in investing activities
|
| | | $ | (85,139) | | | | | $ | (130,647) | | |
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(in $ thousands)
|
| |
Nine Months
Ended September 30, 2016 |
| |
Nine Months
Ended September 30, 2015 |
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Financing activities | | | | ||||||||||
Proceeds from term loans
|
| | | $ | 143,291 | | | | | $ | — | | |
Repayment of term loans
|
| | | | (211,103) | | | | | | (17,813) | | |
Proceeds from revolver borrowings
|
| | | | 10,000 | | | | | | 30,000 | | |
Repayment of revolver borrowings
|
| | | | (10,000) | | | | | | (30,000) | | |
Repayment of capital lease obligations and other indebtedness
|
| | | | (34,206) | | | | | | (25,589) | | |
Debt finance costs and lender fees
|
| | | | (7,791) | | | | | | — | | |
Release of cash provided as collateral
|
| | | | — | | | | | | 25,886 | | |
Dividend to shareholders
|
| | | | (27,859) | | | | | | (27,742) | | |
Purchase of non-controlling interest in a subsidiary
|
| | | | (7,820) | | | | | | — | | |
Tax withholding for equity awards
|
| | | | — | | | | | | (1,361) | | |
Proceeds from share issuance under employee share purchase plan
|
| | | | 1,580 | | | | | | — | | |
Treasury share purchase related to vesting of equity awards
|
| | | | (1,004) | | | | | | (13,119) | | |
Net cash used in financing activities
|
| | | $ | (144,912) | | | | | $ | (59,738) | | |
Effect of changes in exchange rate on cash and cash equivalents
|
| | | | (248) | | | | | | (1,010) | | |
Net decrease in cash and cash equivalents
|
| | | | (16,441) | | | | | | (37,660) | | |
Cash and cash equivalents at beginning of period
|
| | | | 154,841 | | | | | | 138,986 | | |
Cash and cash equivalents at end of period
|
| | | $ | 138,400 | | | | | $ | 101,326 | | |
Supplemental disclosures of cash flow information | | | | ||||||||||
Interest payments, net of capitalized interest
|
| | | $ | 110,988 | | | | | $ | 109,168 | | |
Income tax payments, net of refunds
|
| | | | 15,069 | | | | | | 18,045 | | |
Non-cash capital leases additions
|
| | | | 16,554 | | | | | | 85,620 | | |
Non-cash purchase of property and equipment.
|
| | | | — | | | | | | 33,570 | | |
| | |
Common Shares
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Additional
Paid in Capital |
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Treasury Shares
|
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Accumulated
Deficit |
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Accumulated
Other Comprehensive Loss |
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Non-
Controlling Interest in Subsidiaries |
| |
Total
Equity (Deficit) |
| |||||||||||||||||||||||||||||||||
(in $ thousands, except share data)
|
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Number
|
| |
Amount
|
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Number
|
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Amount
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| ||||||||||||||||||||||||||||||||||||||||||
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 ($0.225 per share)
|
| | | | — | | | | | | — | | | | | | (28,553) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (28,553) | | |
Purchase of non-controlling interest in
a subsidiary |
| | | | — | | | | | | — | | | | | | 1,189 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,709) | | | | | | (8,520) | | |
Equity-based compensation
|
| | | | 308,167 | | | | | | 1 | | | | | | 23,381 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,382 | | |
Treasury shares purchased in relation to vesting of equity awards
|
| | | | — | | | | | | — | | | | | | — | | | | | | 70,362 | | | | | | (1,004) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,004) | | |
Treasury shares issued in relation to vesting of equity awards
|
| | | | — | | | | | | — | | | | | | (802) | | | | | | (50,969) | | | | | | 802 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,592 | | | | | | 12,109 | | | | | | 1,564 | | | | | | 36,265 | | |
Balance as of September 30, 2016
|
| | | | 124,784,549 | | | | | $ | 312 | | | | | $ | 2,710,753 | | | | | | 864,301 | | | | | $ | (13,533) | | | | | $ | (2,859,066) | | | | | $ | (165,398) | | | | | $ | 25,644 | | | | | $ | (301,288) | | |
|
(in $ thousands)
|
| |
September 30,
2016 |
| |
December 31,
2015 |
| ||||||
Prepaid expenses
|
| | | $ | 31,109 | | | | | $ | 26,395 | | |
Sales and use tax receivables
|
| | | | 28,133 | | | | | | 27,233 | | |
Prepaid incentives
|
| | | | 23,903 | | | | | | 26,496 | | |
Restricted cash
|
| | | | 18,371 | | | | | | 11,701 | | |
Derivative assets
|
| | | | 2,602 | | | | | | 657 | | |
Other
|
| | | | 11,294 | | | | | | 6,999 | | |
| | | | $ | 115,412 | | | | | $ | 99,481 | | |
|
| | |
September 30, 2016
|
| |
December 31, 2015
|
| ||||||||||||||||||||||||||||||
(in $ thousands)
|
| |
Cost
|
| |
Accumulated
depreciation |
| |
Net
|
| |
Cost
|
| |
Accumulated
depreciation |
| |
Net
|
| ||||||||||||||||||
Capitalized software
|
| | | $ | 915,823 | | | | | $ | (710,633) | | | | | $ | 205,190 | | | | | $ | 870,868 | | | | | $ | (635,135) | | | | | $ | 235,733 | | |
Computer equipment
|
| | | | 314,396 | | | | | | (194,969) | | | | | | 119,427 | | | | | | 303,902 | | | | | | (168,380) | | | | | | 135,522 | | |
Building and leasehold improvements
|
| | | | 26,585 | | | | | | (10,635) | | | | | | 15,950 | | | | | | 24,102 | | | | | | (8,735) | | | | | | 15,367 | | |
Construction in progress
|
| | | | 80,498 | | | | | | — | | | | | | 80,498 | | | | | | 73,226 | | | | | | — | | | | | | 73,226 | | |
| | | | $ | 1,337,302 | | | | | $ | (916,237) | | | | | $ | 421,065 | | | | | $ | 1,272,098 | | | | | $ | (812,250) | | | | | $ | 459,848 | | |
|
(in $ thousands)
|
| |
January 1,
2016 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
September 30,
2016 |
| |||||||||||||||
Non-Amortizable Assets: | | | | | | | |||||||||||||||||||||||||
Goodwill
|
| | | $ | 1,067,415 | | | | | $ | 14,105 | | | | | $ | — | | | | | $ | 3,635 | | | | | $ | 1,085,155 | | |
Trademarks and tradenames
|
| | | | 313,961 | | | | | | — | | | | | | — | | | | | | — | | | | | | 313,961 | | |
Other Intangible Assets: | | | | | | | |||||||||||||||||||||||||
Acquired intangible assets
|
| | | | 1,127,360 | | | | | | — | | | | | | — | | | | | | (146) | | | | | | 1,127,214 | | |
Accumulated amortization
|
| | | | (756,489) | | | | | | (36,693) | | | | | | — | | | | | | (538) | | | | | | (793,720) | | |
Acquired intangible assets, net
|
| | | | 370,871 | | | | | | (36,693) | | | | | | — | | | | | | (684) | | | | | | 333,494 | | |
Customer loyalty payments
|
| | | | 300,142 | | | | | | 81,349 | | | | | | (32,606) | | | | | | 2,497 | | | | | | 351,382 | | |
Accumulated amortization
|
| | | | (136,473) | | | | | | (55,193) | | | | | | 32,606 | | | | | | (1,241) | | | | | | (160,301) | | |
Customer loyalty payments, net
|
| | | | 163,669 | | | | | | 26,156 | | | | | | — | | | | | | 1,256 | | | | | | 191,081 | | |
Other intangible assets, net
|
| | | $ | 534,540 | | | | | $ | (10,537) | | | | | $ | — | | | | | $ | 572 | | | | | $ | 524,575 | | |
|
(in $ thousands)
|
| |
January 1,
2015 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
September 30,
2015 |
| |||||||||||||||
Non-Amortizable Assets: | | | | | | | |||||||||||||||||||||||||
Goodwill
|
| | | $ | 997,419 | | | | | $ | 58,877 | | | | | $ | — | | | | | $ | (1,760) | | | | | $ | 1,054,536 | | |
Trademarks and tradenames
|
| | | | 313,961 | | | | | | — | | | | | | — | | | | | | — | | | | | | 313,961 | | |
Other Intangible Assets: | | | | | | | |||||||||||||||||||||||||
Acquired intangible assets
|
| | | | 1,129,320 | | | | | | — | | | | | | (2,541) | | | | | | 508 | | | | | | 1,127,287 | | |
Accumulated amortization
|
| | | | (687,495) | | | | | | (55,812) | | | | | | 2,541 | | | | | | (516) | | | | | | (741,282) | | |
Acquired intangible assets, net
|
| | | | 441,825 | | | | | | (55,812) | | | | | | — | | | | | | (8) | | | | | | 386,005 | | |
Customer loyalty payments
|
| | | | 334,309 | | | | | | 58,001 | | | | | | (75,008) | | | | | | (5,807) | | | | | | 311,495 | | |
Accumulated amortization
|
| | | | (157,319) | | | | | | (50,797) | | | | | | 75,008 | | | | | | — | | | | | | (133,108) | | |
Customer loyalty payments, net
|
| | | | 176,990 | | | | | | 7,204 | | | | | | — | | | | | | (5,807) | | | | | | 178,387 | | |
Other intangible assets, net
|
| | | $ | 618,815 | | | | | $ | (48,608) | | | | | $ | — | | | | | $ | (5,815) | | | | | $ | 564,392 | | |
|
(in $ thousands)
|
| |
September 30,
2016 |
| |
December 31,
2015 |
| ||||||
Supplier prepayments
|
| | | $ | 12,430 | | | | | $ | 14,616 | | |
Prepaid incentives
|
| | | | 9,106 | | | | | | 9,282 | | |
Pension assets
|
| | | | 7,018 | | | | | | 5,186 | | |
Deferred financing costs
|
| | | | 5,203 | | | | | | 6,543 | | |
Derivative assets
|
| | | | 309 | | | | | | 8,655 | | |
Other
|
| | | | 10,478 | | | | | | 9,894 | | |
| | | | $ | 44,544 | | | | | $ | 54,176 | | |
|
(in $ thousands)
|
| |
September 30,
2016 |
| |
December 31,
2015 |
| ||||||
Accrued commissions and incentives
|
| | | $ | 293,220 | | | | | $ | 241,358 | | |
Accrued payroll and related
|
| | | | 71,560 | | | | | | 77,544 | | |
Deferred revenue
|
| | | | 40,972 | | | | | | 35,836 | | |
Income tax payable
|
| | | | 21,877 | | | | | | 15,516 | | |
Customer prepayments
|
| | | | 18,371 | | | | | | 11,701 | | |
Derivative liabilities
|
| | | | 17,341 | | | | | | 10,341 | | |
Accrued interest expense
|
| | | | 10,208 | | | | | | 18,800 | | |
Pension and post-retirement benefit liabilities
|
| | | | 1,701 | | | | | | 1,528 | | |
Other
|
| | | | 19,088 | | | | | | 18,026 | | |
| | | | $ | 494,338 | | | | | $ | 430,650 | | |
|
(in $ thousands)
|
| |
Interest
rate |
| |
Maturity
|
| |
September 30,
2016 |
| |
December 31,
2015 |
| |||||||||
Senior Secured Credit Agreement | | | | | | |||||||||||||||||
Term loans
|
| | | | | |||||||||||||||||
Dollar denominated(1)(2)(3)
|
| | | | L+4.00% | | | |
September 2021
|
| | | $ | 2,239,832 | | | | | $ | 2,303,315 | | |
Revolver borrowings
|
| | | | | |||||||||||||||||
Dollar denominated
|
| | | | L+5.00% | | | |
September 2019
|
| | | | — | | | | | | — | | |
Capital leases and other indebtedness
|
| | | | | | | | | | | | | 118,557 | | | | | | 133,883 | | |
Total debt
|
| | | | | | | | | | | | | 2,358,389 | | | | | | 2,437,198 | | |
Less: current portion
|
| | | | | | | | | | | | | 65,049 | | | | | | 74,163 | | |
Long-term debt
|
| | | | | | | | | | | | $ | 2,293,340 | | | | | $ | 2,363,035 | | |
|
(in $ thousands)
|
| |
Balance Sheet
Location |
| |
Fair Value Asset
|
| |
Balance Sheet
Location |
| |
Fair Value (Liability)
|
| ||||||||||||||||||
|
September 30,
2016 |
| |
December 31,
2015 |
| |
September 30,
2016 |
| |
December 31,
2015 |
| ||||||||||||||||||||
Interest
rate swap contracts |
| | Other current assets |
| | | $ | — | | | | | $ | — | | | | Accrued Expenses and other current liabilities |
| | | $ | (3,386) | | | | | $ | — | | |
Interest
rate swap contracts |
| | Other non-current assets |
| | | | — | | | | | | 8,655 | | | | Other non-current liabilities |
| | | | (5,430) | | | | | | — | | |
Foreign currency
contracts |
| | Other current assets |
| | | | 2,602 | | | | | | 657 | | | | Accrued Expenses and other current liabilities |
| | | | (13,955) | | | | | | (10,341) | | |
Foreign currency
contracts |
| | Other non-current assets |
| | | | 309 | | | | | | — | | | | Other non-current liabilities |
| | | | (2,846) | | | | | | (1,082) | | |
Total fair value of
derivative assets (liabilities) |
| | | | | | $ | 2,911 | | | | | $ | 9,312 | | | | | | | | $ | (25,617) | | | | | $ | (11,423) | | |
|
(in $ thousands)
|
| |
Nine Months Ended
September 30, 2016 |
| |
Nine Months Ended
September 30, 2015 |
| ||||||
Net derivative liability opening balance
|
| | | $ | (2,111) | | | | | $ | (15,548) | | |
Total loss for the period included in net income
|
| | | | (33,217) | | | | | | (14,870) | | |
Payment on settlement of foreign currency derivative contracts
|
| | | | 12,622 | | | | | | 21,571 | | |
Net derivative liability closing balance
|
| | | $ | (22,706) | | | | | $ | (8,847) | | |
|
| | | | | |
Amount of Income (Loss)
Recorded in Net Income |
| |||||||||||||||||||||
(in $ thousands)
|
| |
Statement of Operations Location
|
| |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | | | | |
2016
|
| |
2015
|
| |
2016
|
| |
2015
|
| ||||||||||||
Interest rate swap contracts
|
| | Interest expense, net | | | | $ | 4,391 | | | | | $ | — | | | | | $ | (17,471) | | | | | $ | — | | |
Foreign currency contracts
|
| |
Selling, general and administrative
|
| | | | (3,048) | | | | | | (9,444) | | | | | | (15,746) | | | | | | (14,870) | | |
| | | | | | | $ | 1,343 | | | | | $ | (9,444) | | | | | $ | (33,217) | | | | | $ | (14,870) | | |
|
| | | | | |
September 30, 2016
|
| |
December 31, 2015
|
| ||||||||||||||||||
(in $ thousands)
|
| |
Fair Value Hierarchy
|
| |
Carrying Amount
|
| |
Fair Value
|
| |
Carrying Amount
|
| |
Fair Value
|
| ||||||||||||
Asset (liability) | | | | | | | ||||||||||||||||||||||
Derivative assets
|
| |
Level 2
|
| | | | 2,911 | | | | | | 2,911 | | | | | | 9,312 | | | | | | 9,312 | | |
Derivative liabilities
|
| |
Level 2
|
| | | | (25,617) | | | | | | (25,617) | | | | | | (11,423) | | | | | | (11,423) | | |
Total debt
|
| |
Level 2
|
| | | | (2,358,389) | | | | | | (2,408,183) | | | | | | (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 | | |
May 3, 2016
|
| | | $ | 0.075 | | | |
June 2, 2016
|
| |
June 16, 2016
|
| | | $ | 9,286 | | |
August 3, 2016
|
| | | $ | 0.075 | | | |
September 1, 2016
|
| |
September 15, 2016
|
| | | $ | 9,294 | | |
| | |
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
|
| | | | 1,815,173 | | | | | $ | 13.26 | | |
Vested(1) | | | | | (207,756) | | | | | $ | 15.61 | | |
Forfeited
|
| | | | (295,484) | | | | | $ | 15.82 | | |
Balance as of September 30, 2016
|
| | | | 3,484,462 | | | | | $ | 14.44 | | |
|
| | |
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
|
| | | | 1,393,511 | | | | | $ | 4.04 | | |
Forfeited
|
| | | | (164,498) | | | | | $ | 6.05 | | |
Expired
|
| | | | (74,963) | | | | | $ | 6.43 | | |
Balance as of September 30, 2016
|
| | | | 2,608,688 | | | | | $ | 5.21 | | |
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
(in $ thousand, except share data)
|
| |
2016
|
| |
2015
|
| |
2016
|
| |
2015
|
| ||||||||||||
Numerator – Basic and Diluted Income per Share:
|
| | | | | ||||||||||||||||||||
Net income attributable to the Company
|
| | | $ | 20,838 | | | | | $ | 3,680 | | | | | $ | 22,592 | | | | | $ | 10,867 | | |
Denominator – Basic Income per Share: | | | | | | ||||||||||||||||||||
Weighted average common shares outstanding
|
| | | | 123,920,699 | | | | | | 122,495,392 | | | | | | 123,821,339 | | | | | | 122,062,715 | | |
Income per share – Basic
|
| | | $ | 0.17 | | | | | $ | 0.03 | | | | | $ | 0.18 | | | | | $ | 0.09 | | |
Denominator – Diluted Income per Share: | | | | | | ||||||||||||||||||||
Number of common shares used for basic income per share
|
| | | | 123,920,699 | | | | | | 122,495,392 | | | | | | 123,821,339 | | | | | | 122,062,715 | | |
Weighted average effect of dilutive securities | | | | | | ||||||||||||||||||||
RSUs
|
| | | | 269,311 | | | | | | 161,744 | | | | | | 304,870 | | | | | | 447,081 | | |
Stock Options
|
| | | | 101,677 | | | | | | 67,005 | | | | | | 82,843 | | | | | | 53,563 | | |
Weighted average common shares outstanding
|
| | | | 124,291,687 | | | | | | 122,724,141 | | | | | | 124,209,052 | | | | | | 122,563,359 | | |
Income per share – Diluted
|
| | | $ | 0.17 | | | | | $ | 0.03 | | | | | $ | 0.18 | | | | | $ | 0.09 | | |
|
(in $ thousands, except per share data,
Reported Segments and RevPas) |
| |
Three Months
Ended September 30, |
| |
Change
|
| |
Nine Months
Ended September 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
|
2016
|
| |
2015
|
| | | | | | | |
%
|
| |
2016
|
| |
2015
|
| | | | | | | |
%
|
| ||||||||||||||||||||
Net revenue
|
| | | $ | 590,756 | | | | | $ | 559,837 | | | | | $ | 30,919 | | | | | | 6 | | | | | $ | 1,805,924 | | | | | $ | 1,686,167 | | | | | $ | 119,757 | | | | | | 7 | | |
Operating income
|
| | | | 62,235 | | | | | | 54,091 | | | | | | 8,144 | | | | | | 15 | | | | | | 179,863 | | | | | | 150,986 | | | | | | 28,877 | | | | | | 19 | | |
Net income
|
| | | | 21,404 | | | | | | 4,950 | | | | | | 16,454 | | | | | | * | | | | | | 24,156 | | | | | | 14,251 | | | | | | 9,905 | | | | | | 70 | | |
Income per share – diluted (in $)
|
| | | | 0.17 | | | | | | 0.03 | | | | | | 0.14 | | | | | | * | | | | | | 0.18 | | | | | | 0.09 | | | | | | 0.09 | | | | | | 100 | | |
Adjusted EBITDA(1)
|
| | | | 150,432 | | | | | | 130,977 | | | | | | 19,455 | | | | | | 15 | | | | | | 443,585 | | | | | | 405,421 | | | | | | 38,164 | | | | | | 9 | | |
Adjusted Operating Income(2)
|
| | | | 87,757 | | | | | | 78,224 | | | | | | 9,533 | | | | | | 12 | | | | | | 267,017 | | | | | | 235,291 | | | | | | 31,726 | | | | | | 13 | | |
Adjusted Net Income(3)
|
| | | | 40,995 | | | | | | 30,087 | | | | | | 10,908 | | | | | | 36 | | | | | | 126,237 | | | | | | 95,151 | | | | | | 31,086 | | | | | | 33 | | |
Adjusted Income per Share – diluted(4) (in $)
|
| | | | 0.33 | | | | | | 0.25 | | | | | | 0.08 | | | | | | 32 | | | | | | 1.02 | | | | | | 0.78 | | | | | | 0.24 | | | | | | 31 | | |
Net cash provided by operating activities
|
| | | | 110,926 | | | | | | 61,569 | | | | | | 49,357 | | | | | | 80 | | | | | | 213,858 | | | | | | 153,735 | | | | | | 60,123 | | | | | | 39 | | |
Adjusted Free Cash Flow(5)
|
| | | | 83,170 | | | | | | 31,113 | | | | | | 52,057 | | | | | | 167 | | | | | | 130,443 | | | | | | 63,796 | | | | | | 66,647 | | | | | | 104 | | |
Reported Segments (in thousands)
|
| | | | 83,945 | | | | | | 83,979 | | | | | | (34) | | | | | | — | | | | | | 260,725 | | | | | | 265,649 | | | | | | (4,924) | | | | | | (2) | | |
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.67 | | | | | $ | 6.29 | | | | | $ | 0.38 | | | | | | 6 | | | | | $ | 6.57 | | | | | $ | 5.99 | | | | | $ | 0.58 | | | | | | 10 | | |
| | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
2016
|
| |
2015
|
| ||||||||||||
Net income
|
| | | $ | 21,404 | | | | | $ | 4,950 | | | | | $ | 24,156 | | | | | $ | 14,251 | | |
Adjustments: | | | | | | ||||||||||||||||||||
Amortization of intangible assets(1)
|
| | | | 11,838 | | | | | | 18,047 | | | | | | 36,693 | | | | | | 55,812 | | |
Loss on early extinguishment of debt
|
| | | | 955 | | | | | | — | | | | | | 3,626 | | | | | | — | | |
Share of losses in equity method investment
|
| | | | — | | | | | | 342 | | | | | | — | | | | | | 517 | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | — | | | | | | — | | | | | | (6,271) | | |
Equity-based compensation and related taxes
|
| | | | 5,383 | | | | | | 3,828 | | | | | | 21,307 | | | | | | 24,851 | | |
Corporate and restructuring costs(2)
|
| | | | 7,152 | | | | | | 3,092 | | | | | | 21,431 | | | | | | 11,160 | | |
Other – non cash(3)
|
| | | | (3,242) | | | | | | (834) | | | | | | 25,194 | | | | | | (7,518) | | |
Tax impact of adjustments(4)
|
| | | | (2,495) | | | | | | 662 | | | | | | (6,170) | | | | | | 2,349 | | |
Adjusted Net Income
|
| | | | 40,995 | | | | | | 30,087 | | | | | | 126,237 | | | | | | 95,151 | | |
Adjustments: | | | | | | ||||||||||||||||||||
Interest expense, net(5)
|
| | | | 34,204 | | | | | | 40,346 | | | | | | 112,350 | | | | | | 118,486 | | |
Remaining provision for income taxes
|
| | | | 12,558 | | | | | | 7,791 | | | | | | 28,430 | | | | | | 21,654 | | |
Adjusted Operating Income
|
| | | | 87,757 | | | | | | 78,224 | | | | | | 267,017 | | | | | | 235,291 | | |
Adjustments: | | | | | | ||||||||||||||||||||
Depreciation and amortization of property and equipment
|
| | | | 41,743 | | | | | | 38,223 | | | | | | 121,375 | | | | | | 119,333 | | |
Amortization of customer loyalty payments
|
| | | | 20,932 | | | | | | 14,530 | | | | | | 55,193 | | | | | | 50,797 | | |
Adjusted EBITDA
|
| | | $ | 150,432 | | | | | $ | 130,977 | | | | | $ | 443,585 | | | | | $ | 405,421 | | |
|
| | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| ||||||||||||||||||
(in $)
|
| |
2016
|
| |
2015
|
| |
2016
|
| |
2015
|
| ||||||||||||
Income per share – diluted
|
| | | $ | 0.17 | | | | | $ | 0.03 | | | | | $ | 0.18 | | | | | $ | 0.09 | | |
Per share adjustments to net income to determine Adjusted Income per Share – diluted
|
| | | | 0.16 | | | | | | 0.22 | | | | | | 0.84 | | | | | | 0.69 | | |
Adjusted Income per Share – diluted
|
| | | $ | 0.33 | | | | | $ | 0.25 | | | | | $ | 1.02 | | | | | $ | 0.78 | | |
|
| | |
Nine Months Ended
September 30, |
| |||||||||
(in percentages)
|
| |
2016
|
| |
2015
|
| ||||||
Asia Pacific
|
| | | | 23 | | | | | | 22 | | |
Europe
|
| | | | 32 | | | | | | 29 | | |
Latin America and Canada
|
| | | | 5 | | | | | | 5 | | |
Middle East and Africa
|
| | | | 13 | | | | | | 14 | | |
International
|
| | | | 73 | | | | | | 70 | | |
United States
|
| | | | 27 | | | | | | 30 | | |
Travel Commerce Platform
|
| | | | 100 | | | | | | 100 | | |
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Net revenue
|
| | | $ | 590,756 | | | | | $ | 559,837 | | | | | $ | 30,919 | | | | | | 6 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
|
| | | | 351,534 | | | | | | 335,724 | | | | | | 15,810 | | | | | | 5 | | |
Selling, general and administrative
|
| | | | 123,406 | | | | | | 113,752 | | | | | | 9,654 | | | | | | 8 | | |
Depreciation and amortization
|
| | | | 53,581 | | | | | | 56,270 | | | | | | (2,689) | | | | | | (5) | | |
Total costs and expenses
|
| | | | 528,521 | | | | | | 505,746 | | | | | | 22,775 | | | | | | 5 | | |
Operating income
|
| | | | 62,235 | | | | | | 54,091 | | | | | | 8,144 | | | | | | 15 | | |
Interest expense, net
|
| | | | (29,813) | | | | | | (40,346) | | | | | | 10,533 | | | | | | 26 | | |
Loss on early extinguishment of debt
|
| | | | (955) | | | | | | — | | | | | | (955) | | | | | | * | | |
Income before income taxes and share of losses in equity method investment
|
| | | | 31,467 | | | | | | 13,745 | | | | | | 17,722 | | | | | | 129 | | |
Provision for income taxes
|
| | | | (10,063) | | | | | | (8,453) | | | | | | (1,610) | | | | | | (19) | | |
Share of losses in equity method investment
|
| | | | — | | | | | | (342) | | | | | | 342 | | | | | | 100 | | |
Net income
|
| | | $ | 21,404 | | | | | $ | 4,950 | | | | | $ | 16,454 | | | | | | * | | |
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Air
|
| | | $ | 407,926 | | | | | $ | 398,781 | | | | | $ | 9,145 | | | | | | 2 | | |
Beyond Air
|
| | | | 151,857 | | | | | | 129,183 | | | | | | 22,674 | | | | | | 18 | | |
Travel Commerce Platform
|
| | | | 559,783 | | | | | | 527,964 | | | | | | 31,819 | | | | | | 6 | | |
Technology Services
|
| | | | 30,973 | | | | | | 31,873 | | | | | | (900) | | | | | | (3) | | |
Net revenue
|
| | | $ | 590,756 | | | | | $ | 559,837 | | | | | $ | 30,919 | | | | | | 6 | | |
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
| | |
2016
|
| |
2015
|
| | | | | | | |
%
|
| |||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.67 | | | | | $ | 6.29 | | | | | $ | 0.38 | | | | | | 6 | | |
Reported Segments (in thousands)
|
| | | | 83,945 | | | | | | 83,979 | | | | | | (34) | | | | | | — | | |
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Asia Pacific
|
| | | $ | 129,309 | | | | | $ | 117,145 | | | | | $ | 12,164 | | | | | | 10 | | |
Europe
|
| | | | 180,746 | | | | | | 159,193 | | | | | | 21,553 | | | | | | 14 | | |
Latin America and Canada
|
| | | | 26,336 | | | | | | 27,022 | | | | | | (686) | | | | | | (3) | | |
Middle East and Africa
|
| | | | 72,833 | | | | | | 71,581 | | | | | | 1,252 | | | | | | 2 | | |
International
|
| | | | 409,224 | | | | | | 374,941 | | | | | | 34,283 | | | | | | 9 | | |
United States
|
| | | | 150,559 | | | | | | 153,023 | | | | | | (2,464) | | | | | | (2) | | |
Travel Commerce Platform
|
| | | $ | 559,783 | | | | | $ | 527,964 | | | | | $ | 31,819 | | | | | | 6 | | |
|
| | |
Segments (in thousands)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Three Months Ended
September 30, |
| |
Change
|
| |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| | | | | | | |
%
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| |||||||||||||||||||||
Asia Pacific
|
| | | | 16,735 | | | | | | 16,002 | | | | | | 733 | | | | | | 5 | | | | | $ | 7.73 | | | | | $ | 7.32 | | | | | $ | 0.41 | | | | | | 6 | | |
Europe
|
| | | | 19,588 | | | | | | 19,407 | | | | | | 181 | | | | | | 1 | | | | | $ | 9.23 | | | | | $ | 8.20 | | | | | $ | 1.03 | | | | | | 13 | | |
Latin America and Canada
|
| | | | 4,279 | | | | | | 4,269 | | | | | | 10 | | | | | | — | | | | | $ | 6.16 | | | | | $ | 6.33 | | | | | $ | (0.17) | | | | | | (3) | | |
Middle East and Africa
|
| | | | 9,243 | | | | | | 9,601 | | | | | | (358) | | | | | | (4) | | | | | $ | 7.88 | | | | | $ | 7.47 | | | | | $ | 0.41 | | | | | | 5 | | |
International
|
| | | | 49,845 | | | | | | 49,279 | | | | | | 566 | | | | | | 1 | | | | | $ | 8.21 | | | | | $ | 7.61 | | | | | $ | 0.60 | | | | | | 8 | | |
United States
|
| | | | 34,100 | | | | | | 34,700 | | | | | | (600) | | | | | | (2) | | | | | $ | 4.41 | | | | | $ | 4.41 | | | | | $ | — | | | | | | — | | |
Travel Commerce Platform
|
| | | | 83,945 | | | | | | 83,979 | | | | | | (34) | | | | | | — | | | | | $ | 6.67 | | | | | $ | 6.29 | | | | | $ | 0.38 | | | | | | 6 | | |
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Commissions
|
| | | $ | 273,702 | | | | | $ | 260,806 | | | | | $ | 12,896 | | | | | | 5 | | |
Technology costs
|
| | | | 77,832 | | | | | | 74,918 | | | | | | 2,914 | | | | | | 4 | | |
Cost of revenue
|
| | | $ | 351,534 | | | | | $ | 335,724 | | | | | $ | 15,810 | | | | | | 5 | | |
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Workforce
|
| | | $ | 88,276 | | | | | $ | 77,878 | | | | | $ | 10,398 | | | | | | 13 | | |
Non-workforce
|
| | | | 21,446 | | | | | | 29,788 | | | | | | (8,342) | | | | | | (28) | | |
Sub-total
|
| | | | 109,722 | | | | | | 107,666 | | | | | | 2,056 | | | | | | 2 | | |
Non-core corporate costs
|
| | | | 13,684 | | | | | | 6,086 | | | | | | 7,598 | | | | | | 125 | | |
SG&A
|
| | | $ | 123,406 | | | | | $ | 113,752 | | | | | $ | 9,654 | | | | | | 8 | | |
|
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Depreciation on property and equipment
|
| | | $ | 41,743 | | | | | $ | 38,223 | | | | | $ | 3,520 | | | | | | 9 | | |
Amortization of acquired intangible assets
|
| | | | 11,838 | | | | | | 18,047 | | | | | | (6,209) | | | | | | (34) | | |
Total depreciation and amortization
|
| | | $ | 53,581 | | | | | $ | 56,270 | | | | | $ | (2,689) | | | | | | (5) | | |
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Net revenue
|
| | | $ | 1,805,924 | | | | | $ | 1,686,167 | | | | | $ | 119,757 | | | | | | 7 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
|
| | | | 1,090,816 | | | | | | 1,020,005 | | | | | | 70,811 | | | | | | 7 | | |
Selling, general and administrative
|
| | | | 377,177 | | | | | | 340,031 | | | | | | 37,146 | | | | | | 11 | | |
Depreciation and amortization
|
| | | | 158,068 | | | | | | 175,145 | | | | | | (17,077) | | | | | | (10) | | |
Total costs and expenses
|
| | | | 1,626,061 | | | | | | 1,535,181 | | | | | | 90,880 | | | | | | 6 | | |
Operating income
|
| | | | 179,863 | | | | | | 150,986 | | | | | | 28,877 | | | | | | 19 | | |
Interest expense, net
|
| | | | (129,821) | | | | | | (118,486) | | | | | | (11,335) | | | | | | (10) | | |
Loss on early extinguishment of debt
|
| | | | (3,626) | | | | | | — | | | | | | (3,626) | | | | | | * | | |
Gain on sale of shares of Orbitz Worldwide
|
| | | | — | | | | | | 6,271 | | | | | | (6,271) | | | | | | (100) | | |
Income before income taxes and share of losses in equity method investment
|
| | | | 46,416 | | | | | | 38,771 | | | | | | 7,645 | | | | | | 20 | | |
Provision for income taxes
|
| | | | (22,260) | | | | | | (24,003) | | | | | | 1,743 | | | | | | 7 | | |
Share of losses in equity method investment
|
| | | | — | | | | | | (517) | | | | | | 517 | | | | | | 100 | | |
Net income
|
| | | $ | 24,156 | | | | | $ | 14,251 | | | | | $ | 9,905 | | | | | | 70 | | |
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Air
|
| | | $ | 1,277,671 | | | | | $ | 1,231,276 | | | | | $ | 46,395 | | | | | | 4 | | |
Beyond Air
|
| | | | 435,056 | | | | | | 361,003 | | | | | | 74,053 | | | | | | 21 | | |
Travel Commerce Platform
|
| | | | 1,712,727 | | | | | | 1,592,279 | | | | | | 120,448 | | | | | | 8 | | |
Technology Services
|
| | | | 93,197 | | | | | | 93,888 | | | | | | (691) | | | | | | (1) | | |
Net revenue
|
| | | $ | 1,805,924 | | | | | $ | 1,686,167 | | | | | $ | 119,757 | | | | | | 7 | | |
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
| | |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.57 | | | | | $ | 5.99 | | | | | $ | 0.58 | | | | | | 10 | | |
Reported Segments (in thousands)
|
| | | | 260,725 | | | | | | 265,649 | | | | | | (4,924) | | | | | | (2) | | |
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Asia Pacific
|
| | | $ | 388,330 | | | | | $ | 350,315 | | | | | $ | 38,015 | | | | | | 11 | | |
Europe
|
| | | | 558,303 | | | | | | 474,833 | | | | | | 83,470 | | | | | | 18 | | |
Latin America and Canada
|
| | | | 82,617 | | | | | | 75,082 | | | | | | 7,535 | | | | | | 10 | | |
Middle East and Africa
|
| | | | 223,629 | | | | | | 219,529 | | | | | | 4,100 | | | | | | 2 | | |
International
|
| | | | 1,252,879 | | | | | | 1,119,759 | | | | | | 133,120 | | | | | | 12 | | |
United States
|
| | | | 459,848 | | | | | | 472,520 | | | | | | (12,672) | | | | | | (3) | | |
Travel Commerce Platform
|
| | | $ | 1,712,727 | | | | | $ | 1,592,279 | | | | | $ | 120,448 | | | | | | 8 | | |
|
| | |
Segments (in thousands)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Nine Months Ended
September 30, |
| |
Change
|
| |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
| | |
2016
|
| |
2015
|
| | | | | | | |
%
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| |||||||||||||||||||||
Asia Pacific
|
| | | | 50,733 | | | | | | 48,763 | | | | | | 1,970 | | | | | | 4 | | | | | $ | 7.65 | | | | | $ | 7.18 | | | | | $ | 0.47 | | | | | | 7 | | |
Europe
|
| | | | 63,282 | | | | | | 62,476 | | | | | | 806 | | | | | | 1 | | | | | $ | 8.82 | | | | | $ | 7.60 | | | | | $ | 1.22 | | | | | | 16 | | |
Latin America and Canada
|
| | | | 13,353 | | | | | | 12,750 | | | | | | 603 | | | | | | 5 | | | | | $ | 6.19 | | | | | $ | 5.89 | | | | | $ | 0.30 | | | | | | 5 | | |
Middle East and Africa
|
| | | | 28,876 | | | | | | 29,451 | | | | | | (575) | | | | | | (2) | | | | | $ | 7.74 | | | | | $ | 7.45 | | | | | $ | 0.29 | | | | | | 4 | | |
International
|
| | | | 156,244 | | | | | | 153,440 | | | | | | 2,804 | | | | | | 2 | | | | | $ | 8.02 | | | | | $ | 7.30 | | | | | $ | 0.72 | | | | | | 10 | | |
United States
|
| | | | 104,481 | | | | | | 112,209 | | | | | | (7,728) | | | | | | (7) | | | | | $ | 4.40 | | | | | $ | 4.21 | | | | | $ | 0.19 | | | | | | 5 | | |
Travel Commerce Platform
|
| | | | 260,725 | | | | | | 265,649 | | | | | | (4,924) | | | | | | (2) | | | | | $ | 6.57 | | | | | $ | 5.99 | | | | | $ | 0.58 | | | | | | 10 | | |
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Commissions
|
| | | $ | 848,458 | | | | | $ | 789,705 | | | | | $ | 58,753 | | | | | | 7 | | |
Technology costs
|
| | | | 242,358 | | | | | | 230,300 | | | | | | 12,058 | | | | | | 5 | | |
Cost of revenue
|
| | | $ | 1,090,816 | | | | | $ | 1,020,005 | | | | | $ | 70,811 | | | | | | 7 | | |
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Workforce
|
| | | $ | 261,371 | | | | | $ | 229,772 | | | | | $ | 31,599 | | | | | | 14 | | |
Non-workforce
|
| | | | 65,345 | | | | | | 81,766 | | | | | | (16,421) | | | | | | (20) | | |
Sub-total
|
| | | | 326,716 | | | | | | 311,538 | | | | | | 15,178 | | | | | | 5 | | |
Non-core corporate costs
|
| | | | 50,461 | | | | | | 28,493 | | | | | | 21,968 | | | | | | 77 | | |
SG&A
|
| | | $ | 377,177 | | | | | $ | 340,031 | | | | | $ | 37,146 | | | | | | 11 | | |
|
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |
%
|
| ||||||||||||
Depreciation on property and equipment
|
| | | $ | 121,375 | | | | | $ | 119,333 | | | | | $ | 2,042 | | | | | | 2 | | |
Amortization of acquired intangible assets
|
| | | | 36,693 | | | | | | 55,812 | | | | | | (19,119) | | | | | | (34) | | |
Total depreciation and amortization
|
| | | $ | 158,068 | | | | | $ | 175,145 | | | | | $ | (17,077) | | | | | | (10) | | |
|
(in $ thousands)
|
| |
September 30,
2016 |
| |||
Cash and cash equivalents
|
| | | $ | 138,400 | | |
Revolving credit facility availability
|
| | | | 103,741 | | |
| | |
Asset (Liability)
|
| | ||||||||||||||
(in $ thousands)
|
| |
September 30,
2016 |
| |
December 31,
2015 |
| |
Change
|
| |||||||||
Accounts Receivable, net
|
| | | $ | 245,257 | | | | | $ | 205,686 | | | | | $ | 39,571 | | |
Accrued commissions and incentives
|
| | | | (293,220) | | | | | | (241,358) | | | | | | (51,862) | | |
Deferred revenue and prepaid incentives, net
|
| | | | (17,069) | | | | | | (9,340) | | | | | | (7,729) | | |
Cash and cash equivalents
|
| | | | 138,400 | | | | | | 154,841 | | | | | | (16,441) | | |
Accounts payable and employee related
|
| | | | (139,310) | | | | | | (153,349) | | | | | | 14,039 | | |
Accrued interest
|
| | | | (10,208) | | | | | | (18,800) | | | | | | 8,592 | | |
Current portion of long-term debt
|
| | | | (65,049) | | | | | | (74,163) | | | | | | 9,114 | | |
Taxes
|
| | | | 11,391 | | | | | | 16,850 | | | | | | (5,459) | | |
Other assets (liabilities), net
|
| | | | 8,576 | | | | | | 5,684 | | | | | | 2,892 | | |
Working Capital
|
| | | $ | (121,232) | | | | | $ | (113,949) | | | | | $ | (7,283) | | |
Consolidated Condensed Balance Sheets: | | | | | |||||||||||||||
Total current assets
|
| | | $ | 504,204 | | | | | $ | 465,141 | | | | | $ | 39,063 | | |
Total current liabilities
|
| | | | (625,436) | | | | | | (579,090) | | | | | | (46,346) | | |
Working Capital
|
| | | $ | (121,232) | | | | | $ | (113,949) | | | | | $ | (7,283) | | |
|
| | |
September 30,
2016 |
| |
December 31,
2015 |
| |
Change
|
| |||||||||
Accounts receivable, net (in $ thousands)
|
| | | $ | 245,257 | | | | | $ | 205,686 | | | | | $ | 39,571 | | |
Accounts receivable, net – Days Sales Outstanding (“DSO”)
|
| | | | 38 | | | | | | 38 | | | | | | — | | |
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| |
$
|
| |||||||||
Cash provided by (used in): | | | | | |||||||||||||||
Operating activities
|
| | | $ | 213,858 | | | | | $ | 153,735 | | | | | $ | 60,123 | | |
Investing activities
|
| | | | (85,139) | | | | | | (130,647) | | | | | | 45,508 | | |
Financing activities
|
| | | | (144,912) | | | | | | (59,738) | | | | | | (85,174) | | |
Effect of exchange rate changes
|
| | | | (248) | | | | | | (1,010) | | | | | | 762 | | |
Net decrease in cash and cash equivalents
|
| | | $ | (16,441) | | | | | $ | (37,660) | | | | | $ | 21,219 | | |
|
| | |
Nine Months Ended,
September 30, |
| |||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| ||||||
Adjusted EBITDA
|
| | | $ | 443,585 | | | | | $ | 405,421 | | |
Interest payments
|
| | | | (110,988) | | | | | | (109,168) | | |
Tax payments
|
| | | | (15,069) | | | | | | (18,045) | | |
Customer loyalty payments
|
| | | | (56,533) | | | | | | (55,679) | | |
Changes in working capital
|
| | | | (19,350) | | | | | | (61,285) | | |
Pensions liability contribution
|
| | | | (2,440) | | | | | | (2,276) | | |
Changes in other assets and liabilities
|
| | | | (4,426) | | | | | | 6,802 | | |
Other adjusting items(1)
|
| | | | (20,921) | | | | | | (12,035) | | |
Net cash provided by operating activities
|
| | | | 213,858 | | | | | | 153,735 | | |
Add: other adjusting items(1)
|
| | | | 20,921 | | | | | | 12,035 | | |
Less: capital expenditures on property and equipment additions
|
| | | | (70,130) | | | | | | (76,385) | | |
Less: repayment of capital lease obligations and other indebtedness
|
| | | | (34,206) | | | | | | (25,589) | | |
Adjusted Free Cash Flow
|
| | | $ | 130,443 | | | | | $ | 63,796 | | |
|
| | |
Nine Months Ended
September 30, |
| |||||||||
(in $ thousands)
|
| |
2016
|
| |
2015
|
| ||||||
Cash additions to software developed for internal use
|
| | | $ | 56,297 | | | | | $ | 57,111 | | |
Cash additions to computer equipment
|
| | | | 13,833 | | | | | | 19,274 | | |
Total
|
| | | $ | 70,130 | | | | | $ | 76,385 | | |
|
(in $ thousands)
|
| |
Interest
rate |
| |
Maturity
|
| |
September 30,
2016 |
| |
December 31,
2015 |
| ||||||
Senior Secured Credit Agreement | | | | | | ||||||||||||||
Term loans
|
| | | | | ||||||||||||||
Dollar denominated(1)(2)(3)
|
| |
L+4.00%
|
| |
September 2021
|
| | | $ | 2,239,832 | | | | | $ | 2,303,315 | | |
Revolver borrowings
|
| | | | | ||||||||||||||
Dollar denominated
|
| |
L+5.00%
|
| |
September 2019
|
| | | | — | | | | | | — | | |
Capital leases and other indebtedness
|
| | | | | | | | | | 118,557 | | | | | | 133,883 | | |
Total debt
|
| | | | | | | | | | 2,358,389 | | | | | | 2,437,198 | | |
Less: cash and cash equivalents
|
| | | | | | | | | | (138,400) | | | | | | (154,841) | | |
Net Debt(4)
|
| | | | | | | | | $ | 2,219,989 | | | | | $ | 2,282,357 | | |
|
| | | | TRAVELPORT WORLDWIDE LIMITED | |
| Date: November 3, 2016 | | |
By:
/s/ Bernard Bot
Bernard Bot
Executive Vice President and Chief Financial Officer |
|
| Date: November 3, 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). | |
| 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 | |