Sabre Corporation (SABR) has reported 27.79 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $75.94 million, or $0.27 a share in the quarter, compared with $105.17 million, or $0.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $118.10 million, or $0.42 a share compared with $114.65 million or $0.41 a share, a year ago. Revenue during the quarter grew 6.49 percent to $915.35 million from $859.54 million in the previous year period. Gross margin for the quarter contracted 189 basis points over the previous year period to 33.62 percent. Total expenses were 82.16 percent of quarterly revenues, up from 80.06 percent for the same period last year. That has resulted in a contraction of 210 basis points in operating margin to 17.84 percent.
Operating income for the quarter was $163.33 million, compared with $171.42 million in the previous year period.
However, the adjusted operating income for the quarter stood at $210.94 million compared to $212.99 million in the prior year period. At the same time, adjusted operating margin contracted 173 basis points in the quarter to 23.04 percent from 24.78 percent in the last year period.
"We are off to a solid start on the year with good revenue growth across the business. The macro global travel environment was supportive of growth in travel and helped drive strong bookings, passengers boarded and hotel transaction growth across our businesses in the quarter,” said Sean Menke, Sabre president and chief executive officer. “For the first quarter, Airline and Hospitality Solutions revenue grew 8.2%, supported by 7.1% growth in passengers boarded and a strong increase in hotel transactions. Travel Network revenue increased 6.1% supported by robust bookings in all major regions of the world."
Sabre Corporation expects revenue to be in the range of $3,540 million to $3,620 million for financial year 2017. For the fiscal year 2017, Sabre Corp projects adjusted net income to be in the range of $370 million to $410 million. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.31 to $1.45 on adjusted basis.
Operating cash flow declinesSabre Corporation has generated cash of $123.04 million from operating activities during the quarter, down 12.22 percent or $ 17.13 million, when compared with the last year period. The company has spent $88.32 million cash to meet investing activities during the quarter as against cash outgo of $234.14 million in the last year period.
The company has spent $107.79 million cash to carry out financing activities during the quarter as against cash outgo of $110.90 million in the last year period.
Cash and cash equivalents stood at $287.64 million as on Mar. 31, 2017, up 157.51 percent or $175.94 million from $111.70 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Sabre Corporation was negative $194.46 million on Mar. 31, 2017 compared with negative $506.25 million on Mar. 31, 2016. Current ratio was at 0.82 as on Mar. 31, 2017, up from 0.57 on Mar. 31, 2016.
Days sales outstanding were almost stable at 44 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went down to 23 days for the quarter from 24 for the same period last year.
Debt moves up
Sabre Corporation has witnessed an increase in total debt over the last one year. It stood at $3,499 million as on Mar. 31, 2017, up 6.34 percent or $208.69 million from $3,290.32 million on Mar. 31, 2016. Total debt was 60.43 percent of total assets as on Mar. 31, 2017, compared with 59.19 percent on Mar. 31, 2016. Debt to equity ratio was at 5.22 as on Mar. 31, 2017, up from 5.04 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 4.13 for the quarter from 4.16 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
