Sabre Reports Fourth-Quarter 2001,

Sabre Holdings Corporation (NYSE: TSG) have reported fourth quarter 2001 financial results that were in line with company projections.  The company reported fourth quarter 2001 earnings per share, excluding special items, of $0.03, and revenues of $423 million.


We continue to see global booking trends improving,” said William J. Hannigan, chairman and CEO, Sabre.  “In the fourth quarter, we took actions to better align our cost structure with the realities of a gradually recovering industry.”


FOURTH-QUARTER FINANCIAL RESULTS

Continuing Operations

 Total revenues from continuing operations for the fourth quarter of 2001 were $423 million, a decline of 9.0 percent from $465 million during the same period a year ago.

 Operating income from continuing operations for the fourth quarter, excluding special items, was $7 million, down 73.3 percent from $25 million in the year-ago quarter.

 Net earnings from continuing operations for the fourth quarter, excluding special items described below, were $4 million, a decline of 66.3 percent, compared to $11 million in the year-ago quarter.

 Travelocity.com (Nasdaq: TVLY) announced diluted earnings per share of $0.09 for the fourth quarter of 2001, excluding special items.  Revenues were $68 million, up 4.0 percent from the year-ago quarter.
Sabre’s fourth quarter results reflect the short-term realities of the travel market, along with the impact from the seasonally slower bookings quarter, and the company’s customer relief efforts undertaken in recent months. 


Total Company

 Fourth quarter net earnings, before special items, were $4 million, a decline of 88.2 percent compared to $32 million in the fourth quarter of 2000.  The prior year quarterly results include Sabre’s airline infrastructure outsourcing business sold to EDS on July 2, 2001.

 Total company earnings per share, before special items, on a diluted basis were $0.03, compared to $0.25 in the year-ago quarter.

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Special items in the fourth quarter of 2001 included:

 Amortization expense of $72.6 million related to goodwill, other intangibles, and stock compensation from the merger of Travelocity.com and Preview Travel, the acquisition of a 51 percent interest in Dillon Communication Systems, and the acquisition of Gradient Solutions, GetThere and the Sabre Pacific marketing company.

 A one-time charge of $28.2 million associated with workforce reductions.


Including the impact of those special items, as described in the accompanying schedules, net loss for the company in the fourth quarter was $70 million, or ($0.52) per share on a diluted basis, compared to a loss of $29 million, or ($0.23) per share on a diluted basis in the year-ago quarter.

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