Q3 2018 Earnings - Travelport
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Q3 2018 Earnings
Disclaimers Related to Forward-Looking Statements Certain items in this presentation and in today’s discussion, including matters relating to revenue, net income (loss), and percentages or calculations using these measures, capital structure, future business opportunities, plans, prospects or growth rates and other financial measurements and non-financial statements relating to future periods, constitute forward-looking statements. These forward-looking statements are based on management’s current views with respect to future results and are subject to risks and uncertainties. These statements are not guarantees of future performance. Actual results may differ materially from those contemplated by forward-looking statements. Travelport Worldwide Limited (the ‘Company’ or ‘Travelport’) refers you to our periodic reports and filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 20, 2018, and our Quarterly Reports on Form 10-Q for the quarter ended March 31, 2018, filed with the SEC on May 3, 2018, for the quarter ended June 30, 2018, filed with the SEC on August 2, 2018, and for the quarter ended September 30, 2018, to be filed with the SEC on November 1, 2018 for additional discussion of these risks and uncertainties, as well as a cautionary statement regarding forward-looking statements. Forward-looking statements made during this presentation speak only as of today’s date. Travelport expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Related to Non-GAAP Financial Information Travelport analyzes its performance using Adjusted EBITDA, Adjusted Operating Income/(Loss), Adjusted Net Income/(Loss), Adjusted Income/(Loss) per Share – Diluted, Capital Expenditures, Net Debt and Free Cash Flow, which are non-GAAP financial measures. Such measures may not be comparable to similarly named measures used by other companies. We utilize these measures to provide useful supplemental information to assist investors in understanding and assessing our performance and financial results on the same basis that management uses internally. These adjusted financial measures provide investors greater transparency with respect to key metrics used by management to evaluate our core operations, forecast future results, determine future capital investment allocations and understand business trends within the industry. Management believes the adjusted financial measures assist investors in the comparison of financial results between periods as such measures exclude certain items that management believes are not reflective of our core operating performance consistent with how management reviews the business. Adjusted EBITDA is the primary metric used to evaluate and understand our underlying operations and business trends, forecasting and determining future capital investment allocations. Adjusted Operating Income/(Loss) and Adjusted Income/(Loss) per Share – Diluted are also used by the Board of Directors to determine incentive compensation for future periods. Capital Expenditures, which impact depreciation and amortization, interest expense and income tax expense, are reviewed separately by management. These non-GAAP measures are defined in the ‘Definitions’ appendix of this presentation and discussed and reconciled to GAAP measures in our quarterly and annual filings with the SEC. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the rounded figures. 2 This document supports the Company’s Q3 2018 Results Presentation, a recording of which will be available on Travelport’s investor relations website shortly after the live presentation on November 1, 2018.
Gordon Wilson President and Chief Executive Officer
Q3 2018 key point summary
Net revenue +2%, Adjusted EBITDA +2% and Adjusted Net Income +77%
Growth driven by Beyond Air; another excellent quarter for eNett
Beyond Air +14% (including eNett +58%), helping overcome market and customer
headwinds in 2H
Continue to deliver new business for future growth
Significant content additions and key new innovations driving new
business in fast-growing regions and business channels
Remain on track to deliver within our financial guidance ranges for FY 2018
4Q3 2018 highlights
Expanded content and merchandising leadership Data, agency effectiveness and innovation
• Developed IBM Travel Manager, an industry-first AI
platform to help businesses manage travel spend
• Expanded capabilities of award-winning point-of-sale
$1.34bn Smartpoint with the integration of our Hotel Retail
tool
2%
>270
airlines live with merchandising, Became first GDS operator to • eNett consistently delivering significant operational
including fares families, branded transact bookings using NDC
fares, ancillaries and tailored offers 44% and financial benefits to its customer base
Focusing on next-gen technology Continuing to win and onboard new business
OTAs
✓ Caching and AI/Machine Learning platforms continue to drive faster Growing 2x the
global average response times GDS market
rate in Asia
✓ Enhanced single API technology ecosystem now in production
Corporate
✓ Further momentum in mobile: renewed contracts for bespoke work Growing 2x the
with easyJet and Etihad, and accelerated sales of Trip Assist market rate
solution for agencies with OTAs
5Bernard Bot Chief Financial Officer
Q3 revenue performance by channel & geography
Key takeaways
$ millions Q3 2018 Q3 2017 Better / (Worse)
Air 405 417 (3)% • Steady progress in most regions
o Continued air share gains in Asia and
Beyond Air 193 169 14% Latin America
Travel Commerce Platform Revenue 598 586 2% o Stable in Europe aside from Greek-
based OTA contract termination
Technology Services 25 25 1%
o Benefit of US market growth in Q3 not
Net Revenue 623 611 2% realized due to customer footprint
• Continued to grow our OTA air
Travel Commerce Platform Revenue +2% Travel Commerce Platform Reported Segments (4)% market share in Q3
Q3 yoy growth Q3 yoy growth
• Hospitality attachment1 stable
Revenue Reported Segments (48) year over year
Impact of Pacific- Impact of Pacific-
Reported Reported
based travel agency based travel agency
growth
loss on growth
growth
loss on growth • eNett revenue +58% (included in
Beyond Air); YTD growth +72%.
International +3% (5) ppts International (5)% (7) ppts Continued share of wallet
United States (1)% – United States (4)% – expansion with key OTA
customers in Europe and Asia
Travel Commerce Travel Commerce
+2% (4) ppts (4)% (4) ppts
Platform Platform
1Hospitality segments per 100 airline tickets issued. 7Q3 bridge for net revenue less commissions
Q3 net revenue less commissions
Key takeaways
• Good growth in the GDS business,
GDS profit growth
with pricing power more than
offsetting volume and mix
$304m
• Travel Distribution Cost (TDC) rate
flat year over year
$295m
• Strong contribution from eNett
$291m
• Migration away of Pacific-based
travel agency commenced in July
2017 (largely complete by 2017
year-end)
Q3 2017 FLCR Subtotal CLP impairment eNett Volume/Mix Yield TDC FX Other Q3 2018
Q3 2017 Loss of Pacific Q3 2017 CLP eNett Volume/ Pricing Travel FX Other1 Q3 2018
based travel sub-total impairment Mix Distribution
agency Costs (TDC)
rate inflation
1“Other” includes the movement in Technology Services revenue and various non-transactional elements of our business. 8Summarized income statement (1 of 2)
Key takeaways
$ millions Q3 2018 Q3 2017 Better / (Worse)
Net revenue 623 611 2%
• Commissions up 7%, driven by
Commissions (328) (307) (7)% eNett
Net revenue less commissions 295 304 (3)%
% of Net revenue 47.4% 49.7% (2.3)ppts • Technology costs and SG&A2 on a
Add back: Amortization of CLPs 20 20 1% combined basis down 4%
Add back: Impairment of CLPs and Other expense1 3 (1) n/m
Technology costs (73) (81) 10% • Adjusted EBITDA margin percentage
stable year over year, and up
SG&A2 (106) (105) – excluding eNett
Adjusted EBITDA 139 136 2%
% of Net revenue 22.4% 22.3% – • Adjusted Operating Income up 4%
Depreciation on property and equipment (40) (40) – year over year
Amortization of CLPs (20) (20) (1)%
Adjusted Operating Income 79 76 4%
% of Net revenue 12.7% 12.5% 0.2ppts
Adjustments (to U.S. GAAP Operating Income)3 (35) (15) 137%
U.S. GAAP Operating Income 44 62 (28)%
n/m = percentage calculated not meaningful.
1‘Other expense’ relates to the reclassification of certain components of pension and post-retirement benefit expense from SG&A resulting from adoption of the new pension guidance.
2SG&A excluding ‘Non-core corporate costs’. ‘Non-core corporate costs’ include corporate and restructuring costs, equity-based compensation and related taxes, impairment of property and equipment, and unrealized gains and losses on
foreign currency derivative contracts.
3‘Adjustments’ include amortization of acquired intangible assets, ‘Non-core corporate costs’, impairment of customer loyalty payments and, in the prior period only, ‘Other expense’. 9Summarized income statement (2 of 2)
Key takeaways
$ millions Q3 2018 Q3 2017 Better / (Worse)
Adjusted Operating Income 79 76 4%
• Interest expense down 12%,
Interest expense, net1 (27) (31) 12% principally due to favourable
Subtotal 52 46 15% impact of swaps, re-financing fees
in Q3 2017, and lower debt balance
Remaining provision for income taxes2 (12) (23) 47%
% of Subtotal 23.5% 50.4% (26.9)ppts
• Q3 2018 effective tax rate of 24%;
Adjusted Net Income 40 23 77% in line with full year expectation
Amortization of acquired intangible assets (10) (10) –
Other adjustments (to U.S. GAAP Net Income)3 (24) (8) n/m
U.S. GAAP Net Income 6 5 25%
Adjusted Income Per Share – diluted $0.31 $0.18 74%
U.S. GAAP Income Per Share – diluted $0.04 $0.04 4%
n/m = percentage calculated not meaningful.
1‘Interest expense, net’ excludes $(1)m and $2m of unrealized (losses)/gains on interest rate derivative contracts for Q3 2018 and Q3 2017, respectively; and also includes, in the current period only, ‘Other expense’ (see slide 9 for definition).
2‘Remaining provision for income taxes’ is stated without the tax adjustments on items excluded from Adjusted Net Income.
3‘Other adjustments’ include ‘Non-core corporate costs’, impairment of customer loyalty payments, unrealized losses and gains on interest rate derivative contracts, loss on early extinguishment of debt, other gains and losses and the tax
adjustments on items excluded from Adjusted Net Income. 10Summary cash flows and Net Debt
Key takeaways
$ millions Q3 2018 Q3 2017 Better / (Worse)
Net cash provided by operating activities 83 96 (13)%
• Net cash from operations down 13%
Capital expenditures on property and equipment additions (35) (32) (7)% primarily due to movements in
Free Cash Flow 48 63 (24)% working capital and phasing of
interest payments
Repayment of capital lease obligations and other indebtedness (12) (10) (13)%
Dividend to shareholders (9) (9) (1)% • Capital Expenditures equate to 7.5%
Repayment of term loans, and other (7) (56) 87% of net revenue (Q3 2017: 7.0%)
Net increase/(decrease) in cash, cash equivalents and restricted cash 20 (12) n/m
• Interest payments up 37% due to
Supplemental cash flow information ($ millions) Q3 2018 Q3 2017 Better / (Worse) timing of bond coupon (payable
Interest payments (37) (27) (37)% semi-annually in Q1 and Q3)
Tax payments (11) (9) (19)%
Customer loyalty payments (18) (19) 8%
$ millions September 30, 2018 June 30, 2018 September 30, 2017
Net Debt 2,061 2,089 2,070
LTM Adjusted EBITDA 588 586 583
Net leverage multiple 3.50x 3.57x 3.55x
n/m = percentage calculated not meaningful. 11Gordon Wilson President and Chief Executive Officer
Summary and outlook
Key point summary
(in $ millions, except per share FY 2018
Growth
amounts) Guidance* Continuing to deliver our strategy for long term growth
Net revenue 2,535 – 2,585 4 – 6% Strengthened content and technology proposition driving
signing and onboarding of new business at record levels
Adjusted EBITDA 585 – 605 (1) – 3%
Beyond Air continues to be a strong source of differentiation,
leveraging data, digital and payments
Adjusted Net Income 170 – 185 (6) – 2%
Strong business momentum tempered in short term by specific
Adjusted Income per Share – customer headwinds and relative exposure in certain travel
1.34 – 1.46 (7) – 1% markets
diluted**
International and OTA channel growth continues; attractive
Free Cash Flow 210 – 230 5 – 15% growth in key markets, including Europe, Latin America and Asia
* Guidance assumes spot foreign exchange rates as of October 25, 2018.
** Based on expected FY fully diluted shares outstanding of 127.0m.
The information presented here represent forward-looking statements and reflect our expectations as of November 1, 2018. We assume no obligation to update these statements. Actual results may be materially different and are affected by
many factors detailed in this presentation and in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 20, 2018, and our Quarterly Reports on Form 10-Q for the quarter ended March 31, 2018,
filed with the SEC on May 3, 2018, for the quarter ended June 30, 2018, filed with the SEC on August 2, 2018, and for the quarter ended September 30, 2018, to be filed with the SEC on November 1, 2018.
13Appendices Financial Statistics Operating Statistics Key Financials Definitions
Financial statistics
Net Revenue ($ thousands) Q3 2018 Q3 2017 Better / (Worse) 9M 2018 9M 2017 Better / (Worse)
Air 404,643 417,371 (3)% 1,321,525 1,315,500 –
Beyond Air 192,968 168,782 14% 566,740 476,474 19%
Travel Commerce Platform 597,611 586,153 2% 1,888,265 1,791,974 5%
Technology Services 24,974 24,689 1% 74,166 81,738 (9)%
Net Revenue 622,585 610,842 2% 1,962,431 1,873,712 5%
Travel Commerce Platform revenue as a % of Net revenue 96% 96% – 96% 96% 0.6ppts
Beyond Air revenue as a % of Travel Commerce Platform revenue 32% 29% 3.5ppts 30% 27% 3.4ppts
% of Air segment revenue from away bookings 67% 67% 0.5ppts 69% 67% 2.0ppts
Travel Commerce Platform Revenue by Region
Q3 2018 Q3 2017 Better / (Worse) 9M 2018 9M 2017 Better / (Worse)
($ thousands)
Asia Pacific 140,186 145,008 (3)% 426,728 437,748 (3)%
Europe 202,300 185,801 9% 670,082 568,811 18%
Latin America and Canada 28,202 27,563 2% 87,517 83,919 4%
Middle East and Africa 78,824 77,494 2% 239,593 238,959 –
International 449,512 435,866 3% 1,423,920 1,329,437 7%
% of Travel Commerce Platform revenue 75% 74% 0.9ppts 75% 74% 1.2ppts
United States 148,099 150,287 (1)% 464,345 462,537 –
Travel Commerce Platform revenue 597,611 586,153 2% 1,888,265 1,791,974 5%
15Operating statistics Reported Segments by Region (thousands) Q3 2018 Q3 2017 Better / (Worse) 9M 2018 9M 2017 Better / (Worse) Asia Pacific 16,764 17,807 (6)% 49,172 54,712 (10)% Europe 18,658 20,117 (7)% 65,537 63,478 3% Latin America and Canada 4,793 4,706 2% 14,231 13,862 3% Middle East and Africa 9,180 9,354 (2)% 28,300 28,271 – International 49,395 51,984 (5)% 157,240 160,323 (2)% United States 32,184 33,413 (4)% 103,591 104,652 (1)% Reported Segments 81,579 85,397 (4)% 260,831 264,975 (2)% Travel Commerce Platform RevPas ($) Q3 2018 Q3 2017 Better / (Worse) 9M 2018 9M 2017 Better / (Worse) International RevPas $9.10 $8.38 9% $9.06 $8.29 9% United States RevPas $4.60 $4.50 2% $4.48 $4.42 1% Travel Commerce Platform RevPas $7.33 $6.86 7% $7.24 $6.76 7% Selected Travel Commerce Platform metrics Q3 2018 Q3 2017 Better / (Worse) 9M 2018 9M 2017 Better / (Worse) Transaction value processed on the Travel Commerce Platform ($k) 22,217,208 21,432,958 4% 68,919,969 63,067,084 9% Hotel room nights sold (thousands) 16,965 17,615 (4)% 51,316 51,359 – Car rental days sold (thousands) 29,245 29,841 (2)% 82,563 80,804 2% Hospitality segments per 100 airline tickets issued1 48 48 – 45 46 (2)% 1A hospitality segment refers to one complete hospitality booking. For example, a five night hotel stay equals one hospitality segment. Hospitality includes hotel, car, rail and other non-air bookings. 16
Summarized income statement ($ thousands) Q3 2018 Q3 2017 Better / (Worse) 9M 2018 9M 2017 Better / (Worse) Net Revenue 622,585 610,842 2% 1,962,431 1,873,712 5% Adjusted EBITDA 139,313 136,437 2% 450,413 451,996 – Depreciation on property and equipment (40,032) (40,149) – (117,649) (126,183) 7% Amortization of customer loyalty payments (20,062) (19,896) (1)% (64,553) (57,348) (13)% Adjusted Operating Income 79,219 76,392 4% 268,211 268,465 – Interest expense, net1 (26,597) (30,673) 13% (77,963) (90,890) 14% Other expense (266) – n/m (730) – n/m Remaining provision for income taxes (12,316) (23,048) 47% (42,612) (40,541) (5)% Adjusted Net Income 40,040 22,671 77% 146,906 137,034 7% Amortization of acquired intangible assets (10,165) (10,165) – (30,497) (30,688) 1% Non-core corporate costs, and Other2 (24,939) (5,488) n/m (73,642) (3,101) n/m Unrealized (losses)/gains on interest rate derivative contracts (1,175) 1,880 n/m 11,651 (1,121) n/m Loss on early extinguishment of debt (38) (4,682) n/m (27,699) (4,682) n/m Income from discontinued operations – – n/m 27,747 – n/m Tax adjustments 2,147 465 n/m 17,640 (2,532) n/m Net Income 5,870 4,681 25% 72,106 94,910 (24)% n/m = percentage calculated not meaningful. 1‘Interest expense, net’ excludes unrealized gains or losses on interest rate derivative contracts. 2‘Other’ – relates to revenue deferred in previous years, recorded in Q1 2017, impairment of customer loyalty payments, and gain on sale of a subsidiary, recorded in Q2 2017. 17
Net revenue and Adjusted EBITDA
Better / Better /
Net Revenue ($ thousands) Q3 2018 Q3 2017 Net Revenue ($ thousands) 9M 2018 9M 2017
(Worse) (Worse)
Air 404,643 417,371 (3)% Air 1,321,525 1,315,500 –
Beyond Air 192,968 168,782 14% Beyond Air 566,740 476,474 19%
Travel Commerce Platform 597,611 586,153 2% Travel Commerce Platform 1,888,265 1,791,974 5%
Technology Services 24,974 24,689 1% Technology Services 74,166 81,738 (9)%
Net Revenue 622,585 610,842 2% Net Revenue 1,962,431 1,873,712 5%
Better / Better /
Adjusted EBITDA ($ thousands) Q3 2018 Q3 2017 Adjusted EBITDA ($ thousands) 9M 2018 9M 2017
(Worse) (Worse)
Net Revenue 622,585 610,842 2% Net Revenue 1,962,431 1,873,712 5%
Commissions (327,516) (306,971) (7)% Commissions (1,026,602) (899,224) (14)%
Add back: Amortization of CLPs 20,062 19,896 1% Add back: Amortization of CLPs 64,553 57,348 13%
Add back: Impairment of CLPs 3,257 – n/m Add back: Impairment of CLPs 13,622 – n/m
Other expense1 – (846) n/m Related to revenue deferred in previous
– (10,149) n/m
years, and Other expense1
Technology costs (73,163) (81,056) 10%
Technology costs (228,266) (245,348) 7%
SG&A2 (105,912) (105,428) –
SG&A2 (335,325) (324,343) (3)%
Adjusted EBITDA 139,313 136,437 2%
Adjusted EBITDA 450,413 451,996 –
Adjusted EBITDA Margin 22.4% 22.3% –
Adjusted EBITDA Margin 23.0% 24.1% (1.2)ppts
1‘Other expense’ relates to the reclassification of certain components of pension expense from SG&A resulting from adoption of the new pension guidance.
2SG&A excluding ‘Non-core corporate costs’. 18Summary cash flows, Capital Expenditures and Net Debt Free Cash Flow ($ thousands) Q3 2018 Q3 2017 9M 2018 9M 2017 Net cash provided by operating activities 83,149 95,735 285,435 274,342 Capital expenditures on property and equipment additions (34,770) (32,363) (109,236) (79,192) Free Cash Flow 48,379 63,372 176,199 195,150 Supplemental cash flow information ($ thousands) Q3 2018 Q3 2017 9M 2018 9M 2017 Interest payments 36,907 26,847 77,419 83,294 Tax payments 10,802 9,083 36,933 23,540 Customer loyalty payments 17,674 19,207 73,349 54,592 Capital Expenditures ($ thousands) Q3 2018 Q3 2017 9M 2018 9M 2017 Capital expenditures on property and equipment additions 34,770 32,363 109,236 79,192 Repayment of capital lease obligations and other indebtedness 11,654 10,321 30,632 29,811 Capital Expenditures 46,424 42,684 139,868 109,003 Total Capital Expenditures as % of Net revenue 7.5% 7.0% 7.1% 5.8% Net Debt ($ thousands) September 30, 2018 June 30, 2018 September 30, 2017 Term loans1 1,379,511 1,386,456 2,177,415 Senior secured notes2 737,881 737,640 – Capital leases and other indebtedness 147,156 148,762 97,148 Cash, cash equivalents and restricted cash (203,806) (183,510) (204,646) Net Debt 2,060,742 2,089,348 2,069,917 1Net of unamortized debt discount and unamortized debt finance costs. 2Net of unamortized debt finance costs. 19
Full year 2018 guidance
With respect to our full year 2018 guidance:
Adjusted EBITDA guidance consists of Adjusted Net Income guidance excluding expected depreciation and amortization of property and equipment and expected
amortization of customer loyalty payments of $240 million to $250 million, expected interest expense, net (excluding the impact of unrealized gain (loss) on
interest rate derivative instruments) of approximately $110 million and expected related income taxes of approximately $55 million. Adjusted Net Income guidance
excludes the expected impact of amortization of acquired intangible assets of approximately $40 million, loss on early extinguishment of debt of $28 million,
expected equity-based compensation and related taxes and corporate and restructuring costs of $60 million to $70 million, income from discontinued operations of
$28 million related to the release of an indemnity provision for liabilities accrued upon the sale of Gullivers Travel Associates in 2011 and an expected income tax
benefit related to the adjustments above of approximately $15 million. We are unable to reconcile Adjusted EBITDA and Adjusted Net Income to net income (loss)
determined under U.S. GAAP due to the unavailability of information required to reasonably predict certain reconciling items such as loss on early extinguishment
of debt, impairment of long-lived assets, unrealized gains or losses on foreign currency and interest rate derivative instruments, and the related tax impact of such
adjustments along with other tax adjustments.
Adjusted Income per Share – diluted guidance consists of Adjusted Net Income divided by our expected weighted average number of dilutive common shares for
2018 of approximately 127 million.
Free Cash Flow guidance reflects expected net cash provided by operating activities for 2018 of $345 million to $365 million less expected cash additions to
property and equipment of approximately $140 million.
20Definitions
Adjusted EBITDA is defined as Adjusted Net Income (Loss) excluding depreciation Capital Expenditures is defined as cash paid for property and equipment plus
and amortization of property and equipment, amortization of customer loyalty repayments in relation to capital leases and other indebtedness.
payments, interest expense, net (excluding unrealized gains (losses) on interest rate
Customer Loyalty Payments are payments made to travel agencies or travel
derivative instruments), components of net periodic pension and post-retirement
providers with an objective of increasing the number of travel bookings using
benefit costs other than service cost and related income taxes.
the Company’s Travel Commerce Platform and to improve the travel agencies
Adjusted Income (Loss) per Share – Diluted is defined as Adjusted Net Income or travel providers’ loyalty, which are instrumented through agreements with
(Loss) for the period divided by the weighted average number of dilutive common a term over a year. Under the contractual terms, the travel agency or travel
shares. provider commits to achieve certain economic objectives for the Company.
Adjusted Net Income (Loss) is defined as net income (loss) excluding amortization Such costs are specifically identifiable to individual contracts with travel
of acquired intangible assets, gain (loss) on early extinguishment of debt, and items agencies or travel providers, which have determinable contractual lives. Due
that are excluded under our debt covenants, such as income (loss) from to the contractual nature of the payments, the Company believes that such
discontinued operations, gain (loss) on sale of subsidiary, non-cash equity-based assets are appropriately classified as intangible assets.
compensation, certain corporate and restructuring costs, non-cash impairment of Free Cash Flow is defined as net cash provided by (used in) operating
long-lived assets, certain litigation and related costs, and other non-cash items such activities, less cash used for additions to property and equipment.
as unrealized foreign currency gains (losses) on earnings hedges, and unrealized
Net Debt is defined as total debt comprising of current and non-current
gains (losses) on interest rate derivative instruments, along with any income tax
portion of long-term debt minus cash, cash equivalents and restricted cash.
related to these exclusions. Tax impacts not related to the core business operations
have also been excluded. Reported Segments means travel provider revenue generating units (net of
cancellations) sold by the Company’s travel agency network, geographically
Adjusted Operating Income (Loss) is defined as Adjusted EBITDA less depreciation
presented by region based upon the point of sale location.
and amortization of property and equipment and amortization of customer loyalty
payments. Travel Commerce Platform RevPas (“RevPas”) represents Travel Commerce
Platform revenue per segment and is computed by dividing Travel Commerce
Platform revenue by the total number of Reported Segments.
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