American Express Global Business Travel Reports Q1 2023 Financial Results
First Quarter 2023 Highlights
Strong Revenue and Adjusted EBITDA Growth
-
Revenue totaled
$578 million 65% versus Q1 2022. -
Adjusted EBITDA1 totaled
$99 million 17% . Net loss totaled$(27) million
Strong SME Growth
-
SME transactions grew
61% versus Q1 2022 to reach88% of 2019 pro forma3 levels. -
LTM (ended March 31, 2023) SME New Wins Value4 totaled
$2.2 billion -
Approximately
30% of LTM SME New Wins Value came from the unmanaged category.
Significant New Wins and Continued Share Gains
-
Total transactions grew
61% versus Q1 2022 to reach76% of 2019 pro forma3 levels. Workday adjusted5 total transaction recovery was74% of 2019 pro forma3 levels. -
LTM Total New Wins Value4 totaled
$3.4 billion -
95% LTM customer retention rate.
Paul Abbott, Amex GBT Chief Executive Officer, stated: “Nearly one year after going public, we are delivering on the commitments we made. We reported strong first quarter 2023 results driven by continued growth in business travel, share gains and ongoing momentum in the SME customer segment. Our strong growth, combined with our proven ability to deliver high operating leverage and margin expansion, lead us to expect continued strong results in Q2 and for the full year.”
First Quarter 2023 Financial Summary
(in millions, except percentages; unaudited) |
Three Months Ended |
%
|
|
March 31, |
|||
2023 |
2022 |
||
Total Transaction Value (TTV) |
|
|
|
Transaction Growth |
|
|
|
Revenue |
|
|
|
Travel Revenue |
|
|
|
Product and Professional Services Revenue |
|
|
|
Total operating expenses |
|
|
(32)% |
Net loss |
|
|
NM |
Net cash used in operating activities |
|
|
NM |
EBITDA6 |
|
|
NM |
Adjusted EBITDA1 |
|
|
NM |
Adjusted Operating Expenses7 |
|
|
(27)% |
Free Cash Flow8 |
|
|
NM |
NM = Not Meaningful |
|||
First Quarter 2023 Financial Highlights
Revenue increased
Total operating expenses increased
Net loss improved
Adjusted EBITDA1 improved
Adjusted Operating Expenses7 increased
Net cash used in operating activities decreased
Free Cash Flow8 improved by
Net Debt9: As of March 31, 2023, total debt was
2023 Guidance
|
Q2 2023 Guidance |
Full-Year 2023 Guidance |
Revenue |
|
|
Year-over-Year Growth |
|
|
Adjusted EBITDA1 |
|
|
Adjusted EBITDA Margin3 |
|
|
The Company’s Q2 2023 and full-year 2023 guidance considers various material assumptions. Because the guidance is forward-looking and reflects numerous estimates and assumptions with respect to future industry performance under various scenarios as well as assumptions for competition, general business, economic, market and financial conditions and matters specific to the business of Amex GBT, all of which are difficult to predict and many of which are beyond the control of Amex GBT, actual results may differ materially from the guidance due to a number of factors, including the ultimate inaccuracy of any of the assumptions described above and the risks and other factors discussed in the section entitled “Forward-Looking Statements” below and the risk factors in the Company’s SEC filings.
Adjusted EBITDA guidance for the three months ending June 30, 2023 consists of expected net loss for the three months ending June 30, 2023, adjusted for; (i) interest expense of approximately
Adjusted EBITDA guidance for the year ending December 31, 2023 consists of expected net loss for the year ending December 31, 2023, adjusted for; (i) interest expense of approximately
Webcast Information
Amex GBT will host its first quarter 2023 investor conference call today at 9:00 a.m. E.T. The live webcast and accompanying slide presentation can be accessed on the Amex GBT Investor Relations website at investors.amexglobalbusinesstravel.com. A replay of the event will be available on the website for at least 90 days following the event.
Glossary of Terms
See the “Glossary of Terms” for the definitions of certain terms used within this press release.
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not recognized under GAAP in this press release, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses, Free Cash Flow and Net Debt. See “Non-GAAP Financial Measures” below for an explanation of these non-GAAP financial measures and “Tabular Reconciliations for Non-GAAP Financial Measures” below for reconciliations of the non-GAAP financial measures to the comparable GAAP measures.
About American Express Global Business Travel
American Express Global Business Travel is the world’s leading B2B travel platform, providing software and services to manage travel, expenses, and meetings & events for companies of all sizes. We have built the most valuable marketplace in B2B travel to deliver unrivalled choice, value and experiences. With travel professionals in more than 140 countries, our customers and travelers enjoy the powerful backing of American Express Global Business Travel.
Visit amexglobalbusinesstravel.com for more information about Amex GBT. Follow @amexgbt on Twitter, LinkedIn and Instagram.
GLOBAL BUSINESS TRAVEL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
|||||||||
|
|
Three months ended |
|
||||||
|
|
March 31, |
|
||||||
(in $ millions, except share and per share data) |
|
2023 |
|
2022 |
|
||||
Revenue |
|
$ |
578 |
|
|
$ |
350 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
||
Cost of revenue (excluding depreciation and amortization shown separately below) |
|
|
241 |
|
|
|
173 |
|
|
Sales and marketing |
|
|
103 |
|
|
|
74 |
|
|
Technology and content |
|
|
98 |
|
|
|
90 |
|
|
General and administrative |
|
|
76 |
|
|
|
63 |
|
|
Restructuring charges |
|
|
23 |
|
|
|
2 |
|
|
Depreciation and amortization |
|
|
46 |
|
|
|
44 |
|
|
Total operating expenses |
|
|
587 |
|
|
|
446 |
|
|
Operating loss |
|
|
(9 |
) |
|
|
(96 |
) |
|
Interest expense |
|
|
(34 |
) |
|
|
(19 |
) |
|
Fair value movement on earnouts derivative liabilities |
|
|
3 |
|
|
|
— |
|
|
Other income, net |
|
|
5 |
|
|
|
— |
|
|
Loss before income taxes and share of losses from equity method investments |
|
|
(35 |
) |
|
|
(115 |
) |
|
Benefit from income taxes |
|
|
8 |
|
|
|
25 |
|
|
Share of losses from equity method investments |
|
|
— |
|
|
|
(1 |
) |
|
Net loss |
|
|
(27 |
) |
|
|
(91 |
) |
|
Less: net loss attributable to non-controlling interests in subsidiaries |
|
|
(25 |
) |
|
|
(91 |
) |
|
Net loss attributable to the Company’s Class A common stockholders |
|
$ |
(2 |
) |
|
$ |
— |
|
|
Basic loss per share attributable to the Company’s Class A common stockholders |
|
$ |
(0.03 |
) |
|
|
|
|
|
Weighted average number of shares outstanding - Basic |
|
|
60,376,708 |
|
|
|
|
|
|
Diluted loss per share attributable to the Company’s Class A common stockholders |
|
$ |
(0.06 |
) |
|
|
|
|
|
Weighted average number of shares outstanding - Diluted |
|
|
454,825,189 |
|
|
|
|
|
|
GLOBAL BUSINESS TRAVEL GROUP, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
March 31, |
|
December 31, |
||||
(in $ millions, except share and per share data) |
|
2023 |
|
2022 |
||||
|
|
(Unaudited) |
|
|
|
|||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
320 |
|
|
$ |
303 |
|
Accounts receivable (net of allowance for credit losses of |
|
|
928 |
|
|
|
765 |
|
Due from affiliates |
|
|
28 |
|
|
|
36 |
|
Prepaid expenses and other current assets |
|
|
174 |
|
|
|
130 |
|
Total current assets |
|
|
1,450 |
|
|
|
1,234 |
|
Property and equipment, net |
|
|
228 |
|
|
|
218 |
|
Equity method investments |
|
|
14 |
|
|
|
14 |
|
Goodwill |
|
|
1,198 |
|
|
|
1,188 |
|
Other intangible assets, net |
|
|
616 |
|
|
|
636 |
|
Operating lease right-of-use assets |
|
|
60 |
|
|
|
58 |
|
Deferred tax assets |
|
|
339 |
|
|
|
333 |
|
Other non-current assets |
|
|
44 |
|
|
|
47 |
|
Total assets |
|
$ |
3,949 |
|
|
$ |
3,728 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
350 |
|
|
$ |
253 |
|
Due to affiliates |
|
|
85 |
|
|
|
48 |
|
Accrued expenses and other current liabilities |
|
|
426 |
|
|
|
452 |
|
Current portion of operating lease liabilities |
|
|
17 |
|
|
|
17 |
|
Current portion of long-term debt |
|
|
4 |
|
|
|
3 |
|
Total current liabilities |
|
|
882 |
|
|
|
773 |
|
Long-term debt, net of unamortized debt discount and debt issuance costs |
|
|
1,351 |
|
|
|
1,219 |
|
Deferred tax liabilities |
|
|
20 |
|
|
|
24 |
|
Pension liabilities |
|
|
145 |
|
|
|
147 |
|
Long-term operating lease liabilities |
|
|
62 |
|
|
|
61 |
|
Earnout derivative liabilities |
|
|
87 |
|
|
|
90 |
|
Other non-current liabilities |
|
|
50 |
|
|
|
43 |
|
Total liabilities |
|
|
2,597 |
|
|
|
2,357 |
|
Commitments and Contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Class A common stock (par value |
|
|
— |
|
|
|
— |
|
Class B common stock (par value |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
346 |
|
|
|
334 |
|
Accumulated deficit |
|
|
(177 |
) |
|
|
(175 |
) |
Accumulated other comprehensive loss... |
|
|
(7 |
) |
|
|
(7 |
) |
Total equity of the Company’s stockholders |
|
|
162 |
|
|
|
152 |
|
Equity attributable to noncontrolling interest in subsidiaries |
|
|
1,190 |
|
|
|
1,219 |
|
Total stockholders’ equity |
|
|
1,352 |
|
|
|
1,371 |
|
Total liabilities and stockholders’ equity |
|
$ |
3,949 |
|
|
$ |
3,728 |
|
GLOBAL BUSINESS TRAVEL GROUP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Three months ended |
|
||||||
|
|
March 31, |
|
||||||
(in $ millions) |
|
2023 |
|
2022 |
|
||||
Operating activities: |
|
|
|
|
|
|
|
||
Net loss |
|
$ |
(27 |
) |
|
$ |
(91 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
46 |
|
|
|
44 |
|
|
Deferred tax benefit |
|
|
(9 |
) |
|
|
(26 |
) |
|
Equity-based compensation |
|
|
19 |
|
|
|
3 |
|
|
Allowance for credit losses |
|
|
6 |
|
|
|
— |
|
|
Fair value movements on earnout derivative liabilities |
|
|
(3 |
) |
|
|
— |
|
|
Other |
|
|
— |
|
|
|
12 |
|
|
Defined benefit pension funding |
|
|
(7 |
) |
|
|
(6 |
) |
|
Changes in working capital |
|
|
|
|
|
|
|
||
Accounts receivables |
|
|
(163 |
) |
|
|
(189 |
) |
|
Prepaid expenses and other current assets |
|
|
(47 |
) |
|
|
(3 |
) |
|
Due from affiliates |
|
|
8 |
|
|
|
9 |
|
|
Due to affiliates |
|
|
37 |
|
|
|
— |
|
|
Accounts payable, accrued expenses and other current liabilities |
|
|
63 |
|
|
|
93 |
|
|
Net cash used in operating activities |
|
|
(77 |
) |
|
|
(154 |
) |
|
Investing activities: |
|
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(32 |
) |
|
|
(21 |
) |
|
Net cash used in investing activities |
|
|
(32 |
) |
|
|
(21 |
) |
|
Financing activities: |
|
|
|
|
|
|
|
||
Proceeds from senior secured term loans |
|
|
131 |
|
|
|
— |
|
|
Repayment of senior secured term loans |
|
|
(1 |
) |
|
|
(1 |
) |
|
Repayment of finance lease obligations |
|
|
(2 |
) |
|
|
(2 |
) |
|
Payment of debt financing costs |
|
|
(2 |
) |
|
|
— |
|
|
Payment of offering costs |
|
|
— |
|
|
|
(4 |
) |
|
Other |
|
|
(4 |
) |
|
|
— |
|
|
Net cash from (used in) financing activities |
|
|
122 |
|
|
|
(7 |
) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
4 |
|
|
|
(3 |
) |
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
17 |
|
|
|
(185 |
) |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
|
316 |
|
|
|
525 |
|
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
333 |
|
|
$ |
340 |
|
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
||
Cash refund for income taxes (net of payments) |
|
$ |
2 |
|
|
$ |
1 |
|
|
Cash paid for interest (net of interest received) |
|
$ |
33 |
|
|
$ |
18 |
|
|
Dividend accrued on preferred shares |
|
$ |
— |
|
|
$ |
5 |
|
|
Non-cash additions for operating lease right-of-use assets |
|
$ |
5 |
|
|
$ |
— |
|
|
Deferred offering costs accrued during the period. |
|
$ |
— |
|
|
$ |
4 |
||
Glossary of Terms
B2B refers to business-to-business.
Customer retention rate is calculated based on Total Transaction Value (TTV).
LTM refers to the last twelve months.
SME refers to clients Amex GBT considers small-to-medium-sized enterprises, which Amex GBT generally defines as having an expected annual spend on air travel of less than
SME New Wins Value is calculated using expected annual average Total Transaction Value (TTV) over the contract term from new small-to-medium-sized enterprise (“SME”) client wins over the last twelve months, based on current recovery levels.
Total New Wins Value is calculated using expected annual average Total Transaction Value (TTV) over the contract term from all new client wins over the last twelve months, based on current recovery levels.
Total Transaction Value or TTV refers to the sum of the total price paid by travelers for air, hotel, rail, car rental and cruise bookings, including taxes and other charges applied by suppliers at point of sale, less cancellations and refunds.
Transaction recovery represents the total number of transactions, including air, hotel, car rental, rail or other travel-related transactions, recorded at the time of booking and calculated on a gross basis to include cancellations, refunds and exchanges, in the current period as a percentage of the comparative period in 2019.
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. Our non-GAAP financial measures are provided in addition to, and should not be considered as an alternative to, other performance or liquidity measure derived in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and you should not consider them either in isolation or as a substitute for analyzing our results as reported under GAAP. In addition, because not all companies use identical calculations, the presentations of our non-GAAP financial measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.
Management believes that these non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance or liquidity across periods. We use EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses as performance measures as they are important metrics used by management to evaluate and understand the underlying operations and business trends, forecast future results and determine future capital investment allocations. We use Free Cash Flow and Net Debt as liquidity measures and as indicators of our ability to generate cash to meet our liquidity needs and to assist our management in evaluating our financial flexibility, capital structure and leverage. These non-GAAP financial measures supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and/or to compare our performance and liquidity against that of other peer companies using similar measures.
We define EBITDA as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization.
We define Adjusted EBITDA as net income (loss) before interest income, interest expense, gain (loss) on early extinguishment of debt, benefit from (provision for) income taxes and depreciation and amortization and as further adjusted to exclude costs that management believes are non-core to the underlying business of the Company, consisting of restructuring costs, integration costs, costs related to mergers and acquisitions, non-cash equity-based compensation, long-term incentive plan costs, certain corporate costs, fair value movements on earnouts derivative liabilities, foreign currency gains (losses), non-service components of net periodic pension benefit (costs) and gains (losses) on disposal of businesses.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.
We define Adjusted Operating Expenses as total operating expenses excluding depreciation and amortization and costs that management believes are non-core to the underlying business of the Company, consisting of restructuring costs, integration costs, costs related to mergers and acquisitions, non-cash equity-based compensation, long-term incentive plan costs and certain corporate costs.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are supplemental non-GAAP financial measures of operating performance that do not represent and should not be considered as alternatives to net income (loss) or total operating expenses, as determined under GAAP. In addition, these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP measures have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of the Company’s results or expenses as reported under GAAP. Some of these limitations are that these measures do not reflect:
- changes in, or cash requirements for, our working capital needs or contractual commitments;
- our interest expense, or the cash requirements to service interest or principal payments on our indebtedness;
- our tax expense, or the cash requirements to pay our taxes;
- recurring, non-cash expenses of depreciation and amortization of property and equipment and definite-lived intangible assets and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future;
- the non-cash expense of stock-based compensation, which has been, and will continue to be for the foreseeable future, an important part of how we attract and retain our employees and a significant recurring expense in our business;
- restructuring, mergers and acquisition and integration costs, all of which are intrinsic of our acquisitive business model; and
- impact on earnings or changes resulting from matters that are non-core to our underlying business, as we believe they are not indicative of our underlying operations.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses should not be considered as a measure of liquidity or as a measure determining discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We believe that the adjustments applied in presenting EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are appropriate to provide additional information to investors about certain material non-cash and other items that management believes are non-core to our underlying business.
We use these measures as performance measures as they are important metrics used by management to evaluate and understand the underlying operations and business trends, forecast future results and determine future capital investment allocations. These non-GAAP measures supplement comparable GAAP measures in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. We also believe that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating Expenses are helpful supplemental measures to assist potential investors and analysts in evaluating our operating results across reporting periods on a consistent basis.
We define Free Cash Flow as net cash from (used in) operating activities, less cash used for additions to property and equipment.
We believe Free Cash Flow is an important measure of our liquidity. This measure is a useful indicator of our ability to generate cash to meet our liquidity demands. We use this measure to conduct and evaluate our operating liquidity. We believe it typically presents an alternate measure of cash flows since purchases of property and equipment are a necessary component of our ongoing operations and it provides useful information regarding how cash provided by operating activities compares to the property and equipment investments required to maintain and grow our platform. We believe Free Cash Flow provides investors with an understanding of how assets are performing and measures management’s effectiveness in managing cash.
Free Cash Flow is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure has limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent cash flow for discretionary expenditures. This measure should not be considered as a measure of liquidity or cash flows from operations as determined under GAAP. This measure is not a measurement of our financial performance under GAAP and should not be considered in isolation or as an alternative to net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of liquidity.
We define Net Debt as total debt outstanding consisting of current and non-current portion of long-term debt (defined as debt (excluding operating lease liabilities) with original contractual maturity dates of one year or greater), net of unamortized debt discount and unamortized debt issuance costs, minus cash and cash equivalents.
Net Debt is a non-GAAP measure and may not be comparable to similarly named measures used by other companies. This measure is not a measurement of our indebtedness as determined under GAAP and should not be considered in isolation or as an alternative to assess our total debt or any other measures derived in accordance with GAAP or as an alternative to total debt. Management uses Net Debt to review our overall liquidity, financial flexibility, capital structure and leverage. Further, we believe that certain debt rating agencies, creditors and credit analysts monitor our Net Debt as part of their assessment of our business.
Tabular Reconciliations for Non-GAAP Measures
Reconciliation of net loss to EBITDA and Adjusted EBITDA: |
|||||||||
Three Months Ended March 31, |
|||||||||
($ in millions) |
|
2023 |
|
|
2022 |
|
|||
Net loss |
$ |
(27 |
) |
$ |
(91 |
) |
|||
Interest expense |
|
34 |
|
|
19 |
|
|||
Benefit from income taxes |
|
(8 |
) |
|
(25 |
) |
|||
Depreciation and amortization |
|
46 |
|
|
44 |
|
|||
EBITDA |
|
45 |
|
|
(53 |
) |
|||
Restructuring charges(a) |
|
23 |
|
|
2 |
|
|||
Integration costs(b) |
|
8 |
|
|
9 |
|
|||
Mergers and acquisitions(c) |
|
— |
|
|
1 |
|
|||
Equity-based compensation(d) |
|
19 |
|
|
3 |
|
|||
Fair value movements on earnouts derivative liabilities(e) |
|
(3 |
) |
|
— |
|
|||
Other adjustments, net(f) |
|
7 |
|
|
10 |
|
|||
Adjusted EBITDA |
$ |
99 |
|
$ |
(28 |
) |
|||
Net loss margin |
|
(5 |
%) |
|
(26 |
%) |
|||
Adjusted EBITDA Margin |
|
17 |
% |
|
(8 |
%) |
|||
Reconciliation of total operating expenses to Adjusted Operating Expenses: |
|||||||||
Three Months Ended March 31, |
|||||||||
($ in millions) |
|
2023 |
|
|
2022 |
|
|||
Total operating expenses |
$ |
587 |
|
$ |
446 |
|
|||
Adjustments: |
|||||||||
Depreciation and amortization |
|
(46 |
) |
|
(44 |
) |
|||
Restructuring charges(a) |
|
(23 |
) |
|
(2 |
) |
|||
Integration costs(b) |
|
(8 |
) |
|
(9 |
) |
|||
Mergers and acquisitions(c) |
|
— |
|
|
(1 |
) |
|||
Equity-based compensation(d) |
|
(19 |
) |
|
(3 |
) |
|||
Other adjustments, net(f) |
|
(12 |
) |
|
(10 |
) |
|||
Adjusted Operating Expenses |
$ |
479 |
|
$ |
377 |
|
|||
a) |
Represents severance and related expenses due to restructuring activities. |
|
b) |
Represents expenses related to the integration of businesses acquired. | |
c) |
Represents expenses related to business acquisitions, including potential business acquisitions, and includes pre-acquisition due diligence and related activities costs. |
|
d) |
Represents non-cash equity-based compensation expense related to equity incentive awards to certain employees. | |
e) |
Represents fair value movements on earnouts derivative liabilities during the periods. | |
f) |
Adjusted Operating Expenses excludes (i) long-term incentive plan expense of |
Reconciliation of net cash used in operating activities to Free Cash Flow: |
|||||||||
Three Months Ended March 31, |
|||||||||
($ in millions) |
|
2023 |
|
|
2022 |
|
|||
Net cash used in operating activities |
$ |
(77 |
) |
$ |
(154 |
) |
|||
Less: Purchase of property and equipment |
|
(32 |
) |
|
(21 |
) |
|||
Free Cash Flow |
$ |
(109 |
) |
$ |
(175 |
) |
|||
Reconciliation of Net Debt: |
||||||||
As of |
||||||||
($ in millions) |
March 31, 2023 |
December 31, 2022 |
||||||
Senior Secured Credit Agreement |
||||||||
Principal amount of senior secured initial term loans
|
$ |
239 |
$ |
239 |
||||
Principal amount of senior secured tranche B-3 term loans
|
|
1,000 |
|
|
1,000 |
|
||
Principal amount of senior secured tranche B-4 term loans
|
|
135 |
|
|
— |
|
||
Principal amount of senior secured revolving credit facility
|
|
— |
|
|
— |
|
||
Other borrowings |
|
2 |
|
|
— |
|
||
|
1,376 |
|
|
1,239 |
|
|||
Less: Unamortized debt discount and debt issuance costs |
|
(21 |
) |
|
(17 |
) |
||
Total debt, net of unamortized debt discount and debt issuance costs |
|
1,355 |
|
|
1,222 |
|
||
Less: Cash and cash equivalents |
|
(320 |
) |
|
(303 |
) |
||
Net Debt |
$ |
1,035 |
|
$ |
919 |
|
||
1) |
Stated interest rate of LIBOR + |
|
2) |
Stated interest rate of SOFR + |
|
3) |
Stated interest rate of SOFR + |
|
4) |
Stated interest rate of SOFR + |
Forward-Looking Statements
This communication contains statements that are forward-looking and as such are not historical facts. This includes, without limitation, statements regarding our financial position, business strategy, the plans and objectives of management for future operations and second quarter and full-year guidance. These statements constitute projections, forecasts and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this communication are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following risks, uncertainties and other factors: (1) changes to projected financial information or our ability to achieve our anticipated growth rate and execute on industry opportunities; (2) our ability to maintain our existing relationships with customers and suppliers and to compete with existing and new competitors; (3) various conflicts of interest that could arise among us, affiliates and investors; (4) our success in retaining or recruiting, or changes required in, our officers, key employees or directors; (5) factors relating to our business, operations and financial performance, including market conditions and global and economic factors beyond our control; (6) the impact of the COVID-19 pandemic, geopolitical conflicts and related changes in base interest rates, inflation and significant market volatility on our business, the travel industry, travel trends and the global economy generally; (7) the sufficiency of our cash, cash equivalents and investments to meet our liquidity needs; (8) the effect of a prolonged or substantial decrease in global travel on the global travel industry; (9) political, social and macroeconomic conditions (including the widespread adoption of teleconference and virtual meeting technologies which could reduce the number of in-person business meetings and demand for travel and our services); (10) the effect of legal, tax and regulatory changes; and (11) other risks and uncertainties described in the Company’s Form 10-K, filed with the SEC on March 21, 2023, and in the Company’s other SEC filings. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Disclaimer
An investment in Global Business Travel Group, Inc. is not an investment in American Express. American Express shall not be responsible in any manner whatsoever for, and in respect of, the statements herein, all of which are made solely by Global Business Travel Group, Inc.
____________________________________
1Adjusted EBITDA is a non-GAAP financial measure. Please refer to the section below titled “Non-GAAP Financial Measures” for more information.
2Adjusted EBITDA Margin is a non-GAAP financial measure. Please refer to the section below titled “Non-GAAP Financial Measures” for more information.
3Pro forma assumes Egencia, Ovation and DER acquisitions completed on January 1, 2019.
4LTM New Wins Value represents the estimated annual value of wins over the twelve months ended March 31, 2023, based on current Total Transaction Value (TTV) recovery levels.
51.5 extra workdays in Q1 2023 vs. Q1 2019.
6EBITDA is a non-GAAP financial measure. Please refer to the section below titled “Non-GAAP Financial Measures” for more information.
7Adjusted Operating Expenses is a non-GAAP financial measure. Please refer to the section below titled “Non-GAAP Financial Measures” for more information.
8Free Cash Flow is a non-GAAP financial measure. Please refer to the section below titled “Non-GAAP Financial Measures” for more information.
9Net Debt is a non-GAAP financial measure. Please refer to the section below titled “Non-GAAP Financial Measures” for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230509005239/en/
Media:
Martin Ferguson
Vice President Global Communications and Public Affairs, American Express Global Business Travel
martin.ferguson@amexgbt.com
Investors:
Barry Sievert
Vice President Investor Relations
investor@amexgbt.com
Source: Global Business Travel Group, Inc.
