Earnings Releases

The SABRE Group Reports Fourth Quarter 1996 Results

FORT WORTH, Texas -- The SABRE Group Holdings Inc. today reported fourth quarter net earnings on a pro forma basis of $24 million or $0.18 per share, an increase of 80.5 percent over 1995's pro forma fourth quarter results. Operating income, also on a pro forma basis, was $41 million for the quarter, an increase of 58.3 percent over the same period in 1995.

Actual fourth quarter net earnings were $23 million, or $0.17 per share, compared to $32 million, or $0.25 per share, for the same quarter in 1995. Actual operating income was $41 million for the quarter, a decrease of 22.6 percent over the same quarter the previous year. All pro forma amounts reflect the impact of new contracts with American Airlines, which were effective

Jan. 1, 1996, and the impact of certain other transactions resulting from the legal reorganization of the company. Revenue was $376 million for the quarter, an increase of 7.3 percent over 1995 pro forma fourth quarter and a 2.2 percent improvement when compared to actual fourth quarter 1995 results.

"Revenues and costs for the quarter were right in line with our expectations," said Michael J. Durham, The SABRE Group's president and chief executive officer. "Electronic travel distribution revenue growth was comparable to historical trends.

Information technology solutions was somewhat lower, primarily due to lower receipts from American Airlines and Canadian Airlines, offset by very strong growth in our external business. Earnings were also helped by lower unit costs and lower net interest expense."

For the year ended Dec. 31, net earnings were $188 million or $1.44 per share on a pro forma basis, an increase of 19.8 percent over 1995 on a pro forma basis. Actual net earnings were $187 million, or $1.43 per share, compared to 1995 actuals of $226 million, or $1.73 per share.

Revenue on a pro forma basis for the year ended was $1.616 billion, an increase of 10.4 percent over the same period the prior year. Actual revenue was $1.622 billion, an increase of 6.1 percent over 1995.

Operating income on a pro forma basis for the year ended 1996 was $326 million, an increase of 14.7 percent over the prior year. Actual operating income was $327 million, a decrease of 13.9 percent over 1995. "1996 was a year of tremendous change for The SABRE Group. We became a separate, publicly traded company and entered into a series of new service contracts with our biggest customer, American Airlines," Durham added. "During our initial public offering, we set forth the company's financial objectives: solid revenue growth, consistent margins and substantial free cash flow. We have met these objectives for 1996, and are now focused on achieving all of our goals for 1997."