Travelport Limited Third Quarter 2012 Results

                Travelport Limited Third Quarter 2012 Results

Delivering Strategic Growth

PR Newswire

ATLANTA, Nov. 2, 2012

ATLANTA, Nov. 2, 2012 /PRNewswire/ --Travelport Limited, a leading provider
of critical transaction processing for the global travel industry, today
announces its financial results for the third quarter ended September 30,
2012.

Commenting on developments, Gordon Wilson, President and CEO of Travelport,
said:

"We continue to deliver on our strategy as we report a sixth consecutive
quarter of RevPas growth, underlying gross margin improvement and strong cash
generation. In another positive quarter for Travelport, we have further
expanded our content offering, increased our customer base, continued the
successful deployment of our products and realized significant benefits from
our investments in key adjacencies."

Highlights:

  oIncreased RevPas by 3% to $5.30 in Q3 2012
  oGrew Adjusted EBITDA by $5 million in Q3 2012 (excluding the impact of the
    United Airlines Master Services Agreement)
  oImproved YTD operating cash flow by $48 million to $134 million
  oTwo merchandising milestones achieved with Air Canada and KLM
  oNew Travelport mobile solutions deployed regionally
  oFirst Russian language corporate booking tool launched



Financial Highlights for Third Quarter 2012
(in $ millions)
                  Q3 2012  Q32011  Change   %Change
Net Revenue       489      509      (20)      (4)
Operating Income  27       51       (24)      (47)
EBITDA            88       107      (19)      (18)
Adjusted EBITDA   106      118      (12)      (10)

The loss of the Master Services Agreement with United Airlines contributed
approximately $23 million to the decline in net revenue and $17 million to the
decline in each of operating income, EBITDA and Adjusted EBITDA for the third
quarter of 2012 compared to 2011. Excluding the impact of this loss, net
revenue for the third quarter of 2012 increased $3 million from the third
quarter of 2011, operating income and EBITDA declined by $7 million and $2
million, respectively, compared to 2011, and Adjusted EBITDA increased by $5
million compared to 2011. RevPas increased by 3% to $5.30, and average rate of
agency commissions declined 1%.

Financial Highlights for YTD 2012
(in $ millions)
                  YTD 2012  YTD2011  Change   %Change
Net Revenue       1,545     1,570     (25)      (2)
Operating Income  155       196       (41)      (21)
EBITDA            330       365       (35)      (10)
Adjusted EBITDA   366       401       (35)      (9)

The loss of the Master Services Agreement with United Airlines contributed
approximately $43 million to the decline in net revenue and $31 million to the
decline in each of operating income, EBITDA and Adjusted EBITDA year to date
2012 compared to 2011. Excluding the impact of this loss, net revenue for
year to date 2012 increased $18 million from the same period in 2011,
operating income and EBITDA declined by $10 million and $4 million,
respectively, compared to 2011, and Adjusted EBITDA declined by $4 million
compared to 2011. RevPas increased by 2% to $5.23, and average rate of agency
commissions increased 1%.

Interest costs of $215 million year to date were $8 million lower for 2012 due
to a lower net debt balance and the favorable impact of interest rate hedges,
offset by a higher underlying effective interest rate.

Travelport generated $134 million in net cash from operating activities of
continuing operations, a $48 million increase from 2011, due to a $38 million
decrease in interest payments and improved operating working capital.

Travelport's net debt was $3,122 million as of September 30, 2012, which
comprised debt of $3,384 million less $125 million in cash and cash
equivalents and less $137 million of cash held as collateral.

We have omitted certain financial information from our Third Quarter 2012
Results Earnings Release, including our Consolidated Condensed Balance Sheets
and Consolidated Condensed Statements of Cash Flows. We have included an
abridged version of our Consolidated Condensed Statement of Operations. Our
financial statements include our 47% share of the earnings or losses in our
Investment in Orbitz Worldwide, which we account for under the equity method
of accounting. Orbitz Worldwide has not yet released its third quarter 2012
results. A complete set of financial statements will be included in our
Quarterly Report on Form 10-Q, which we expect to file on November 7, 2012,
after Orbitz Worldwide releases its quarterly earnings report.

Conference Calls

The Company's third quarter 2012 earnings conference call will be held on
November 2, 2012, beginning at 10:30a.m. (EDT). Details for this call and the
earnings presentation are available through the Investor Center section of the
Company's website (www.travelport.com/investors/Financial-Calendar), where
pre-registration for the call is required. A recording of the call will be
made available within 24 hours in the Financial/Operating Data section of the
Investor Center on our website.

About Travelport

Travelport is a broad-based business services company and a leading provider
of critical transaction processing solutions to companies operating in the
global travel industry.

With a presence in over 170 countries, approximately 3,500 employees and 2011
net revenue of $2.0 billion, Travelport is comprised of the global
distribution system (GDS) business, which includes the Galileo and Worldspan
brands and its Airline IT Solutions business.

Headquartered in Atlanta, Georgia, Travelport is a privately owned company.

Investor Contact

Julian Walker
Head of Corporate Communications and Investor Relations
+44 (0)1753 288 210
julian.walker@travelport.com

Media Contacts

Kate Aldridge
Senior Director, Corporate Communications, EMEA and APAC
+44 (0)1753 288 720
kate.aldridge@travelport.com 

Jill Brenner
Senior Director, Corporate Communications, Americas
+1 (973) 939 1325
jill.brenner@travelport.com 

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking
statements" that involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Statements preceded by, followed by or that otherwise include the words
"believes", "expects", "anticipates", "intends", "projects", "estimates",
"plans", "may increase", "may fluctuate" and similar expressions or future or
conditional verbs such as "will", "should", "would", "may" and "could" are
generally forward-looking in nature and not historical facts. Any statements
that refer to expectations or other characterizations of future events,
circumstances or results are forward-looking statements.

Various risks that could cause future results to differ from those expressed
by the forward-looking statements included in this press release include, but
are not limited to: the impact that our outstanding indebtedness may have on
the way we operate our business; factors affecting the level of travel
activity, particularly air travel volume, including security concerns, general
economic conditions, natural disasters and other disruptions; general economic
and business conditions in the markets in which we operate, including
fluctuations in currencies and the economic conditions in the eurozone;
pricing, regulatory and other trends in the travel industry; our ability to
obtain travel supplier inventory from travel suppliers, such as airlines,
hotels, car rental companies, cruise lines and other travel suppliers; our
ability to develop and deliver products and services that are valuable to
travel agencies and travel suppliers and generate new revenue streams,
including our universal desktop product; risks associated with doing business
in multiple countries and in multiple currencies; maintenance and protection
of our information technology and intellectual property; the impact on
supplier capacity and inventory resulting from consolidation of the airline
industry; financing plans and access to adequate capital on favorable terms;
our ability to achieve expected cost savings from our efforts to improve
operational efficiency; our ability to maintain existing relationships with
travel agencies and to enter into new relationships on acceptable financial
and other terms; and our ability to grow adjacencies, such as our acquisition
of Sprice and our controlling interest in eNett. Other unknown or
unpredictable factors could also have material adverse effects on our
performance or achievements. In light of these risks, uncertainties,
assumptions and factors, the forward-looking events discussed in this press
release may not occur. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated, or if no
date is stated, as of the date of this press release. Except to the extent
required by applicable securities laws, the Company undertakes no obligation
to release any revisions to any forward-looking statements, to report events
or to report the occurrence of unanticipated events unless required by law.

This press release includes certain non-GAAP financial measures as defined
under SEC rules. As required by SEC rules, important information regarding
such measures is contained below.



TRAVELPORT LIMITED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
                    Three Months   Three Months   Nine Months    Nine Months
(in $millions)     Ended          Ended          Ended          Ended
                    September30,  September30,  September30,  September30,
                    2012           2011           2012           2011
Net revenue         489            509            1,545          1,570
Costs and expenses
Cost of revenue     296            313            919            940
Selling, general    110            89             302            265
and administrative
Depreciation and    56             56             169            169
amortization
Total costs and     462            458            1,390          1,374
expenses
Operating           27             51             155            196
income
Interest expense,   (71)           (74)           (215)          (223)
net
Gain on early
extinguishment of   5              —              6              —
debt
Loss from
continuing
operations before
income taxes and    (39)           (23)           (54)           (27)
equity
ininvestment in
Orbitz Worldwide





TRAVELPORT LIMITED
NON-GAAP MEASURES
(in $ millions and unaudited)
Reconciliation of Travelport Adjusted EBITDA  Three Months Ended September 30,
to Operating Income
                                              2012                 2011
Travelport Adjusted EBITDA                    106                  118
Less adjustments:
 Corporate transaction costs                (3)                  (2)
 Litigation and related costs               (12)                 (3)
 Gain on extinguishment of debt             5                    ―
 Other                                      (8)                  (6)
 Total                                      (18)                 (11)
EBITDA                                        88                   107
Less: Depreciation and amortization           (56)                 (56)
Less: Gain on extinguishment of debt          (5)                  ―
Operating income                           27                   51
Reconciliation of Travelport Adjusted EBITDA  Nine Months Ended September 30,
to Operating Income
                                              2012                 2011
Travelport Adjusted EBITDA                    366                  401
Less adjustments:
 Corporate transaction costs                (9)                  (11)
 Restructuring charges                      ―                    (4)
 Equity-based compensation                  (2)                  ―
 Litigation and related costs               (25)                 (13)
 Gain on extinguishment of debt             6                    ―
 Impairment of property and equipment       ―                    (4)
 Other                                      (6)                  (4)
 Total                                      (36)                 (36)
EBITDA                                        330                  365
Less: Depreciation and amortization           (169)                (169)
Less: Gain on extinguishment of debt          (6)                  ―
Operating income                              155                  196





TRAVELPORT LIMITED
NON-GAAP MEASURES
(in $ millions and unaudited)
Reconciliation of Travelport Adjusted EBITDA   Nine Months Ended September 30,
to Net Cash Provided by Operating Activities
of Continuing Operations and Unlevered Free    2012                2011
Cash Flow
Travelport Adjusted EBITDA                     366                 401
Less:
 Interest payments                           (202)               (240)
 Tax payments                                (9)                 (13)
 Changes in operating working capital        44                  (9)
 FASA liability payments                     (7)                 (12)
Defined benefit pension plan funding           (15)                (13)
 Other adjusting items                       (43)                (28)
Net cash provided by operating activities of   134                 86
continuing operations
Add back interest paid                         202                 240
Less: Capital expenditures on property and     (61)                (50)
equipment additions of continuing operations
Less: Repayment of capital lease obligations   (13)                (11)
Unlevered free cash flow                       262                 265



Travelport Adjusted EBITDA is a non-GAAP measure and may not be comparable to
similarly named measures used by other companies. We believe this measure
provides management with a more complete understanding of the underlying
results and trends and an enhanced overall understanding of our financial
liquidity and prospects for the future. Adjusted EBITDA is the primary metric
for measuring our business results, forecasting and determining future capital
investment allocations and is used by the Board of Directors to determine
incentive compensation. Capital expenditures, which impact depreciation and
amortization, interest expense and income tax expense, are reviewed separately
by management. Travelport Adjusted EBITDA is disclosed so investors have the
same tools available to management when evaluating the results of Travelport.
Travelport Adjusted EBITDA is defined as EBITDA adjusted to exclude the impact
of purchase accounting, impairment of goodwill and intangibles assets,
expenses incurred to acquire and integrate Travelport's portfolio of
businesses, costs associated with Travelport's restructuring efforts, non-cash
equity-based compensation, and other adjustments made to exclude expenses
management views as outside the normal course of operations. Travelport
Adjusted EBITDA is a critical measure as it is required to calculate our key
financial ratios under our credit agreement covenants. These ratios use the
Travelport Adjusted EBITDA for the last twelve months and the consolidated net
debt and the first lien debt as at the balance sheet date and are known as the
Total Leverage Ratio and the First Lien Leverage Ratio. Travelport is
currently in compliance with its Total Leverage Ratio and its First Lien
Leverage Ratio. A breach of these covenants could result in a default under
the senior secured credit agreement and the indentures governing the notes.

Unlevered free cash flow is a non-GAAP measure and may not be comparable to
similarly named measures used by other companies. Unlevered free cash flow is
defined as net cash provided by operating activities of continuing operations
adjusted to exclude cash interest payments and include capital expenditures
and capital lease repayments. We believe unlevered free cash flow provides
management and investors with a more complete understanding of the underlying
liquidity of the core operating businesses and its ability to meet current and
future financing and investing needs.



TRAVELPORT LIMITED
Operating Statistics
(unaudited)
                         Three Months Ended
                         September 30,
                         2012        2011    Change  % Change
Segments (in millions)
 Americas               41          45      (4)      (6.2)%
 Europe                 21          21      ―        0.7%
 Asia Pacific           13          14      (1)      (9.2)%
 Middle East and Africa 10          9       1        0.9%
Total Segments           85          89      (4)      (4.4)%
                         Nine Months Ended
                         September 30,
                         2012        2011    Change  % Change
Segments (in millions)
 Americas               133         137     (4)      (2.7)%
 Europe                 65          66      (1)      (1.5)%
 Asia Pacific           42          43      (1)      (3.4)%
 Middle East and Africa 30          29      1        3.1%
Total Segments           270         275     (5)      (1.9)%

SOURCE Travelport Limited

Website: http://www.travelport.com
 
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