Earnings Releases

The SABRE Group Reports Third Quarter Results

FORT WORTH, Texas -- The SABRE Group Holdings, Inc., a world leader in the electronic distribution of travel and a leading provider of information technology solutions for the airline industry, today reported third quarter net earnings on a pro forma basis of $51 million, or $0.39 per share, an increase of 4.4 percent over 1995's pro forma results. Operating income, also on a pro forma basis, was $89 million for the quarter, an increase of 5.9 percent over 1995.

Actual third quarter net earnings were $45 million, or $0.35 per share, compared to $67 million, or $0.51 per share, in the same quarter last year. Actual operating income was $89 million for the quarter, a decrease of 17.6 percent over the same quarter last year. All pro forma amounts reflect the impact of new contracts with the American Airlines which were effective January 1, 1996 and the impact of certain other transactions resulting from the legal reorganization of the company.

Revenue was $408 million for the quarter, an increase of 8.4 percent over 1995 pro forma third quarter and an increase of 3.8 percent over actual third quarter 1995 results.

"Our operations continue to demonstrate solid revenue growth and consistent operating margins," said Michael J. Durham, President and Chief Executive Officer of The SABRE Group Holdings, Inc.

"The revenue growth is primarily driven by an increase in booking fee revenue, most of which was a result of increased volume."

For the nine months ended September 30, 1996, net earnings were $164 million or $1.26 per share on a pro forma basis, an increase of 14.3 percent over the same period last year on a pro forma basis. Net earnings (excluding pro forma adjustments) were $164 million , $1.26 per share, compared to $194 million, $1.49 per share for the same nine months last year.

Revenue on a pro forma basis for the nine months ended was $1,240 million, an increase of 11.4 percent over the same period last year. Revenue (excluding pro forma adjustments) was $1,246 million, an increase of 7.3 percent over the first nine months of last year.

Operating income on a pro forma basis for the nine months ended was $285 million, an increase of 10.3 percent over the prior year. Operating income (excluding pro forma adjustments) was $286 million, a decrease of 12.5 percent over the first nine months of last year.

"We are pleased with our performance during the first nine months of 1996." Durham added. "While there are a lot of adjustments as a result of our reorganization into a subsidiary of AMR and our subsequent initial public offering, our existing businesses continued to generate stable revenue and earnings growth. In the months and years ahead, we will focus our efforts on increasing the rate at which we grow the company."