Travelport Performance and Innovation

                    Travelport Performance and Innovation

-Fourth Quarter and Full Year 2013 Results-

PR Newswire

ATLANTA, Feb. 27, 2014

ATLANTA, Feb. 27, 2014 /PRNewswire/ --Travelport Limited, a leading
distribution services and e-commerce provider for the global travel industry,
today announces its financial results for the fourth quarter and full year
ended December 31, 2013.

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

"I am delighted to report a successful growth year for Travelport, with key
financial performance metrics up 5% with positive innovation and traction
across all aspects of the business. We maintain forward momentum in
transforming our core air business and growing our Beyond Air initiatives of
payments, hospitality and advertising. I am also pleased to note that this
momentum has continued into the early part of the current year."

Highlights

  o5% growth in Net Revenue and 5% growth in Adjusted EBITDA for the full
    year^*
  oNew airline merchandising platform attracting low cost airline
    participation and wider network carrier content
  oDouble digit growth in Beyond Air initiatives – including advertising,
    hospitality and payments
  oDeployed new Point of Sale upgrades to over 75% of our targeted customer
    base
  oFirst Quarter 2014 developments include:

       oNew long-term agreement with Orbitz Worldwide
       oRenewed and extended British Airways, Iberia, Iberia Express and
         easyJet contracts
       oDeleveraging debt-for-equity exchange of $135 million, further
         improving our capital structure

_____________
* Excluding the loss of the Master Services Agreement ("MSA") with United
Airlines



Financial Highlights
Fourth Quarter 2013
(in $ millions)         Q4 2013 Q42012 $Change %Change
Net Revenue             480     457     23       5
Operating Income (Loss) 26      (17)    43       *
EBITDA                  80      41      39       95
Adjusted EBITDA         109     103     6        4
*Not meaningful

Travelport's Net Revenue of $480 million for the fourth quarter of 2013 was
$23 million (5%) higher than the fourth quarter of 2012, and Adjusted EBITDA
of $109 million was $6 million (4%) higher than the fourth quarter of 2012.

Travelport RevPas increased 2% to $5.58.

Full Year 2013
                                                Excluding MSA
(in $ millions)  2013  2012  $ Change %Change $ Change % Change
Net Revenue      2,076 2,002 74        4        101      5
Operating Income 208   138   70        51       91       78
EBITDA           414   365   49        13       70       20
Adjusted EBITDA  517   517   —         —        23       5

Travelport's Net Revenue of $2,076 million for the full year 2013 was $74
million (4%) higher than 2012 and Adjusted EBITDA of $517 million was flat
compared to the full year 2012.

The MSA with United Airlines contributed approximately $27 million to Net
Revenue, $21 million to each of Operating Income and EBITDA and $23 million to
Adjusted EBITDA on a year to date basis for 2012.Excluding the impact of the
MSA, Net Revenue increased $101 million (5%), and Adjusted EBITDA increased
$23 million (5%) compared to 2012. The MSA only impacted the comparison of
the results of operations for six months of the year in 2013 compared to 2012.

Travelport RevPas increased 4% to $5.49.

Interest costs of $342 million for the full year 2013 were $52 million higher
than 2012 due to higher interest rates on our debt as a result of the debt
refinancings we completed in April and June 2013.

Travelport's net debt was $3,340 million as of December 31, 2013, which
comprised debt of $3,573 million less $154 million in cash and cash
equivalents and less $79 million of cash held as collateral.

Travelport generated $100 million in net cash from operating activities for
the full year 2013 compared to $181 million for 2012. The decrease is
primarily a result of increased interest payments, increased customer loyalty
payments and changes in operating working capital.

To further strengthen our capital structure, Travelport Worldwide Limited, our
ultimate parent company, entered into separate, individually negotiated
private exchange agreements with Morgan Stanley, certain funds and accounts
managed by AllianceBernstein L.P. and certain funds and accounts managed by P.
Schoenfeld Asset Management LP to exchange $135 million of our subordinated
debt at par into common stock, par value $0.0002 (the "Common Shares"), of
Travelport Worldwide at a value of $1.55 per Common Share. An aggregate of
approximately 87 million Common Shares will be issued in the exchanges, which
brings our fully diluted shares outstanding to approximately 928 million.

In connection with the refinancing of our first lien credit agreement in June
2013, we amended our definition of Adjusted EBITDA to exclude the amortization
of customer loyalty payments. As a result, we have revised our reported
Adjusted EBITDA for all periods presented to exclude the amortization of
customer loyalty payments. Adjusted EBITDA now excludes the amortization of
customer loyalty payments of $18 million and $14 million for the quarters
ended December 31, 2013 and 2012, respectively, and $63 million and $62
million for the full year 2013 and 2012, respectively.

Conference Call

The Company's fourth quarter and full year 2013 earnings conference call will
be held on February 27, 2014 beginning at 2:00 p.m. (EST). Details for this
conference call as well as 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 Centre on the Company's
website.

About Travelport

Travelport Limited is a leading distribution services and e-commerce provider
for the global travel industry.

With a presence in over 170 countries, over 3,500 employees and 2013 net
revenue of more than $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 and a majority joint venture in
virtual payments business, eNett.

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 328 8720
kate.aldridge@travelport.com

Jill Brenner
Senior Director, Corporate Communications, Americas
+1 (973) 753 3110
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; 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 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 Securities and Exchange Commission ("SEC") rules. As required by SEC
rules, important information regarding such measures is contained below.



TRAVELPORT LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
                                        Three Months Year         Year
                           Three Months
                           Ended       Ended        Ended        Ended
(in $ millions)
                           December 31, December 31, December 31, December 31,
                           2013         2012
                                                     2013         2012
Net Revenue                480          457          2,076        2,002
Costs and expenses
Cost of revenue            294          272          1,266        1,191
Selling, general and       106          144          396          446
administrative
Depreciation and           54           58           206          227
amortization
Total costs and expenses   454          474          1,868        1,864
Operating income (loss)    26           (17)         208          138
Interest expense, net      (85)         (75)         (342)        (290)
(Loss) gain on early       —            —            (49)         6
extinguishment of debt
Loss from continuing
operations before income
taxes and equity in        (59)         (92)         (183)        (146)
earnings (losses) of
investment in Orbitz
Worldwide
Benefit from (provision    4            1            (20)         (23)
for) income taxes
Equity in earnings
(losses) of investment in  2            (80)         10           (74)
Orbitz Worldwide
Net loss from continuing   (53)         (171)        (193)        (243)
operations
Gain from disposal of
discontinued operations,   4            7            4            7
net of tax
Net loss                   (49)         (164)        (189)        (236)
Net income attributable to
non-controlling interest   (1)          —            (3)          —
in subsidiaries
Net loss attributable to   (50)         (164)        (192)        (236)
the Company



TRAVELPORT LIMITED
CONSOLIDATED BALANCE SHEETS
(in $millions)                                      December31, December31,
                                                     2013        2012 
Assets
Current assets:
Cash and cash equivalents                            154          110
Accounts receivable (net of allowances for doubtful  177          150
accounts of $13 and $16)
Deferred income taxes                                1            2
Other current assets                                 134          170
Total current assets                               466          432
Property and equipment, net                          428          416
Goodwill                                             986          986
Trademarks and tradenames                            314          314
Other intangible assets, net                         671          717
Cash held as collateral                              79           137
Investment in Orbitz Worldwide                       19           —
Non-current deferred income taxes                    5            6
Other non-current assets                             120          150
Total assets                                         3,088        3,158
Liabilities and equity
Current liabilities:
Accounts payable                                     72           74
Accrued expenses and other current liabilities       540          537
Deferred income taxes                                24           38
Current portion of long-term debt                    45           38
Total current liabilities                            681          687
Long-term debt                                       3,528        3,392
Deferred income taxes                                18           7
Other non-current liabilities                        172          274
Total liabilities                                    4,399        4,360
Commitments and contingencies
Shareholders' equity:
Common shares ($1.00par value; 12,000shares
authorized; 12,000shares issued and                 —            —
outstanding)
Additional paid in capital                           691          718
Accumulated deficit                                  (1,939)      (1,747)
Accumulated other comprehensive loss                 (82)         (189)
Total shareholders' equity (deficit)                 (1,330)      (1,218)
Equity attributable to non-controlling interest in   19           16
subsidiaries
Total equity (deficit)                               (1,311)      (1,202)
Total liabilities and equity                         3,088        3,158





TRAVELPORT LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                     Year ended   Year ended
(in $millions)                                      December 31, December 31,

                                                     2013        2012
Operating activities
Net loss                                             (189)        (236)
Income from discontinued operations (including       (4)          (7)
gain from disposal), net of tax
Net loss from continuing operations                  (193)        (243)
Adjustments to reconcile net loss from continuing
operations to net cash provided by operating
activities of continuing operations:
Depreciation and amortization                        206          227
Amortization of customer loyalty payments            63           62
Amortization of debt finance costs                   24           37
Non-cash accrual of repayment fee and amortization   7            —
of debt discount
Loss (gain) on early extinguishment of debt          49           (6)
Payment-in-kind interest                             22           14
Gain on interest rate derivative instruments         (3)          (1)
Loss on foreign exchange derivative instruments      1            —
Equity in (earnings) losses of investment in         (10)         74
Orbitz Worldwide
Equity-based compensation                            6            2
Deferred income taxes                                (1)          4
Customer loyalty payments                            (78)         (47)
Defined benefit pension plan funding                 (3)          (27)
FASA liability                                       —            (7)
Changes in assets and liabilities:
Accounts receivable                                  (27)         22
Other current assets                                 5            (3)
Accounts payable, accrued expenses and other         5            37
current liabilities
Other                                                27           36
Net cash provided by operating activities            100          181
Investing activities
Property and equipment additions                     (107)        (92)
Proceeds from sale of assets held for sale           17           —
Other                                                (6)          3
Net cash used in investing activities                (96)         (89)
Financing activities
Proceeds from new term loans                         2,169        170
Proceeds from revolver borrowings                    73           80
Repayment of term loans                              (1,667)      (165)
Repayment of revolver borrowings                     (93)         (95)
Repurchase of Senior Notes                           (413)        (20)
Repayment of capital lease obligations               (20)         (16)
Debt finance costs                                   (55)         (20)
Release of cash provided as collateral               137          —
Cash provided as collateral                          (79)         —
Payments on settlement of foreign exchange           (8)          (51)
derivative contracts
Proceeds from settlement of foreign exchange         4            9
derivative contracts
Distribution to a parent company                     (6)          —
Other                                                (2)          2
Net cash provided by (used in) financing             40           (106)
activities
Net increase (decrease) in cash and cash             44           (14)
equivalents
Cash and cash equivalents at beginning of year       110          124
Cash and cash equivalents at end of year             154          110
Supplemental disclosure of cash flow information
Interest payments                                    273          232
Income tax payments, net                             29           16
Non-cash capital lease additions                     32           63
Non-cash capital distribution to a parent company    25           —
Exchange of Second Priority Secured Notes for        229          —
Tranche 2 Loans
Exchange of Senior Notes due 2014 and 2016 for new   591          —
Senior Notes due 2016



TRAVELPORT LIMITED
NON-GAAP MEASURES
(in $ millions)
Reconciliation of Travelport Adjusted EBITDA   Three Months Ended December 31,
to Operating Income (Loss)
                                               2013            2012
Travelport Adjusted EBITDA                     109             103
Less adjustments:
Amortization of customer loyalty payments      (18)            (14)
Corporate costs                                (3)             (10)
Equity-based compensation                      (2)             —
Litigation and related costs                   —               (28)
Other – non cash                               (6)             (10)
Total Adjustments                              (29)            (62)
EBITDA                                         80              41
Less: Depreciation and amortization            (54)            (58)
Operating income (loss)                        26              (17)
Reconciliation of Travelport Adjusted EBITDA   Year Ended December 31,
to Operating Income
                                               2013            2012
Travelport Adjusted EBITDA                     517             517
Less adjustments:
Amortization of customer loyalty payments      (63)            (62)
Corporate costs                                (7)             (19)
Equity-based compensation                      (6)             (2)
Litigation and related costs                   (12)            (53)
Other – non cash                               (15)            (16)
Total Adjustments                              (103)           (152)
EBITDA                                         414             365
Less: Depreciation and amortization            (206)           (227)
Operating income                               208             138



Reconciliation of Travelport Adjusted EBITDA to Net Cash Provided by Operating
Activities and Unlevered Free Cash Flow
                                         Year Ended December 31,
                                         2013               2012
Travelport Adjusted EBITDA               517                517
Less:
Interest payments                        (273)              (232)
Tax payments                             (29)               (16)
Changes in operating working capital     13                 57
Customer loyalty payments                (78)               (47)
Defined benefit pension plan funding     (3)                (27)
Other adjusting items^(*)                (47)               (71)
Net cash provided by operating           100                181
activities
Add back interest paid                   273                232
Less: Capital expenditures on property   (107)              (92)
and equipment additions
Less: Repayment of capital lease         (20)               (16)
obligations
Unlevered free cash flow                 246                305
(*) Other adjusting items relate to payments for costs included within
operating income, but excluded from Travelport Adjusted EBITDA. These include
(i) $24 million and $20 million of corporate costs payments during the years
ended December 31, 2013 and 2012, respectively, (ii) $23 million and $28
million of litigation and related costs payments for the years ended December
31, 2013 and 2012, respectively, (iii) a $15 million payment related to a
historical dispute related to a now terminated arrangement with a former
distributor in the Middle East during the year ended December 31, 2012, and
(iv) $1 million of restructuring related payments made during the year ended
December 31, 2012.



TRAVELPORT LIMITED
OPERATING STATISTICS AND DEFINITIONS
(unaudited)
                       Three Months Ended

                       December 31,
                       2013      2012     Change % Change
Segments (in millions)
Americas               38        37       1       3
Europe                 20        19       1       5
Asia Pacific           13        12       1       8
Middle East and Africa 9         9        —       —
Total Segments         80        77       3       4
RevPas                 $5.58     $5.47    $0.11   2.0%

                       Year Ended
                                                     Excluding MSA
                       December 31,
                       2013   2012  Change % Change Change % Change
Segments (in millions)
Americas               170    172   (2)     (1)      —      —
Europe                 85     82    3       4        3      4
Asia Pacific           56     54    2       4        2      4
Middle East and Africa 39     39    —       —        —      —
Total Segments         350    347   3       1        5      2
RevPas                 $5.49  $5.28 $0.21   4.0%

______________________

Definitions:

RevPas: Revenue per Segment is transaction processing revenue divided by the
number of reported segments.

Customer Loyalty Payments: development advance payments that are made with the
objective of increasing the number of clients or improving customer loyalty
with travel agents or travel providers. The amortization of such payments is
excluded from Adjusted EBITDA under the terms of our senior secured credit
agreement and our second lien credit agreement.

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 (used in) operating activities 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 EBITDA: is a non-GAAP financial measure and may not be comparable
to similarly named measures used by other companies. Travelport EBITDA is
defined as operating income (loss) plus depreciation and amortization expense.

Travelport Adjusted EBITDA: is a non-GAAP financial 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 for future periods. Capital expenditures,
which impact depreciation and amortization, customer loyalty payments,
interest expense and income tax expense, are reviewed separately by
management. Travelport Adjusted EBITDA is disclosed so investors have the same
tools as available to management when evaluating the results of Travelport.
Travelport Adjusted EBITDA is defined as EBITDA adjusted to exclude items we
believe potentially restrict our ability to assess the results of our
underlying business. Travelport Adjusted EBITDA is a critical measure as it is
required to calculate our key financial ratios under the covenants contained
in our credit agreements. These ratios use a number which is broadly computed
from Travelport Adjusted EBITDA for the last twelve months and consolidated
net debt, as at the balance sheet date and are known as the Total Leverage
Ratio and Senior Secured Leverage Ratio. Travelport is currently in compliance
with all of its financial covenants. A breach of these covenants could result
in a default under the senior secured credit agreement, second lien credit
agreement and the indentures governing the notes.



SOURCE Travelport

Website: http://www.travelport.com
 
Press spacebar to pause and continue. Press esc to stop.