| Bermuda | | | 98-0505105 | |
| (State or other jurisdiction of incorporation or organization) | | | (I.R.S. Employer Identification Number) | |
| Large accelerated filer ☒ | | | Accelerated filer ☐ | | | Non-accelerated filer ☐ | | | Smaller reporting company ☐ | |
| | | | (Do not check if a smaller reporting company) | | |
| | | Page | | |||
PART I. FINANCIAL INFORMATION | | | |||||
| | | | 1 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 8 | | | |
| | | | 9 | | | |
| | | | 21 | | | |
| | | | | | ||
| | | | | | ||
PART II. OTHER INFORMATION | | | |||||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | |
(in $ thousands, except share data) | | Three Months Ended March 31, 2016 | | Three Months Ended March 31, 2015 | | | Three Months Ended June 30, 2016 | | Three Months Ended June 30, 2015 | | Six Months Ended June 30, 2016 | | Six Months Ended June 30, 2015 | | ||||||||||||||||||||||||
Net revenue | | | $ | 609,263 | | | | $ | 572,128 | | | | | $ | 605,905 | | | | $ | 554,202 | | | | $ | 1,215,168 | | | | $ | 1,126,330 | | | ||||||
Costs and expenses | | | | | ||||||||||||||||||||||||||||||||||
Cost of revenue | | | | 362,677 | | | | | 349,231 | | | | | | 376,605 | | | | | 335,050 | | | | | 739,282 | | | | | 684,281 | | | ||||||
Selling, general and administrative | | | | 114,477 | | | | | 128,120 | | | | | | 139,294 | | | | | 98,159 | | | | | 253,771 | | | | | 226,279 | | | ||||||
Depreciation and amortization | | | | 52,241 | | | | | 61,028 | | | | | | 52,246 | | | | | 57,847 | | | | | 104,487 | | | | | 118,875 | | | ||||||
Total costs and expenses | | | | 529,395 | | | | | 538,379 | | | | | | 568,145 | | | | | 491,056 | | | | | 1,097,540 | | | | | 1,029,435 | | | ||||||
Operating income | | | | 79,868 | | | | | 33,749 | | | | | | 37,760 | | | | | 63,146 | | | | | 117,628 | | | | | 96,895 | | | ||||||
Interest expense, net | | | | (54,895) | | | | | (39,389) | | | | | | (45,113) | | | | | (38,751) | | | | | (100,008) | | | | | (78,140) | | | ||||||
Loss on early extinguishment of debt | | | | (2,671) | | | | | — | | | | | (2,671) | | | | | — | | | |||||||||||||||||
Gain on sale of shares of Orbitz Worldwide | | | | — | | | | | 6,271 | | | | | | — | | | | | — | | | | | — | | | | | 6,271 | | | ||||||
Income before income taxes and share of earnings in equity method investment | | | | 24,973 | | | | | 631 | | | |||||||||||||||||||||||||||
(Loss) income before income taxes and share of losses in equity method investment | | | | (10,024) | | | | | 24,395 | | | | | 14,949 | | | | | 25,026 | | | |||||||||||||||||
Provision for income taxes | | | | (7,792) | | | | | (7,758) | | | | | | (4,405) | | | | | (7,792) | | | | | (12,197) | | | | | (15,550) | | | ||||||
Share of earnings in equity method investment | | | | — | | | | | 19 | | | |||||||||||||||||||||||||||
Net income (loss) | | | | 17,181 | | | | | (7,108) | | | |||||||||||||||||||||||||||
Share of losses in equity method investment | | | | — | | | | | (194) | | | | | — | | | | | (175) | | | |||||||||||||||||
Net (loss) income | | | | (14,429) | | | | | 16,409 | | | | | 2,752 | | | | | 9,301 | | | |||||||||||||||||
Net income attributable to non-controlling interest in subsidiaries | | | | (596) | | | | | (1,033) | | | | | | (402) | | | | | (1,081) | | | | | (998) | | | | | (2,114) | | | ||||||
Net income (loss) attributable to the Company | | | $ | 16,585 | | | | $ | (8,141) | | | |||||||||||||||||||||||||||
Income (loss) per share – Basic: | | | ||||||||||||||||||||||||||||||||||||
Income (loss) per share | | | $ | 0.13 | | | | $ | (0.07) | | | |||||||||||||||||||||||||||
Net (loss) income attributable to the Company | | | $ | (14,831) | | | | $ | 15,328 | | | | $ | 1,754 | | | | $ | 7,187 | | | |||||||||||||||||
(Loss) income per share – Basic: | | | ||||||||||||||||||||||||||||||||||||
(Loss) income per share | | | $ | (0.12) | | | | $ | 0.13 | | | | $ | 0.01 | | | | $ | 0.06 | | | |||||||||||||||||
Weighted average common shares outstanding – Basic | | | | 123,718,311 | | | | | 121,411,360 | | | | | | 123,825,030 | | | | | 122,269,482 | | | | | 123,771,642 | | | | | 121,842,792 | | | ||||||
Income (loss) per share – Diluted: | | | ||||||||||||||||||||||||||||||||||||
Income (loss) per share | | | $ | 0.13 | | | | $ | (0.07) | | | |||||||||||||||||||||||||||
(Loss) income per share – Diluted: | | | ||||||||||||||||||||||||||||||||||||
(Loss) income per share | | | $ | (0.12) | | | | $ | 0.12 | | | | $ | 0.01 | | | | $ | 0.06 | | | |||||||||||||||||
Weighted average common shares outstanding – Diluted | | | | 123,778,407 | | | | | 121,411,360 | | | | | | 123,990,177 | | | | | 122,717,897 | | | | | 123,912,681 | | | | | 122,672,763 | | | ||||||
Cash dividends declared per common share | | | $ | 0.075 | | | | $ | 0.075 | | | | | $ | 0.075 | | | | $ | 0.075 | | | | $ | 0.15 | | | | $ | 0.15 | | |
(in $ thousands) | | | Three Months Ended March 31, 2016 | | | Three Months Ended March 31, 2015 | | ||||||
Net income (loss) | | | | $ | 17,181 | | | | | $ | (7,108) | | |
Other comprehensive income (loss), net of tax | | | | ||||||||||
Currency translation adjustment, net of tax | | | | | 7,459 | | | | | | (5,836) | | |
Changes in gain on available-for-sale securities, net of tax | | | | | — | | | | | | (6,376) | | |
Unrealized actuarial gain (loss) on defined benefit plans, net of tax | | | | | 2,251 | | | | | | (32) | | |
Other comprehensive income (loss), net of tax | | | | | 9,710 | | | | | | (12,244) | | |
Comprehensive income (loss) | | | | | 26,891 | | | | | | (19,352) | | |
Comprehensive income attributable to non-controlling interest in subsidiaries | | | | | (596) | | | | | | (1,033) | | |
Comprehensive income (loss) attributable to the Company | | | | $ | 26,295 | | | | | $ | (20,385) | | |
|
(in $ thousands) | | | Three Months Ended June 30, 2016 | | | Three Months Ended June 30, 2015 | | | Six Months Ended June 30, 2016 | | | Six Months Ended June 30, 2015 | | ||||||||||||
Net (loss) income | | | | $ | (14,429) | | | | | $ | 16,409 | | | | | $ | 2,752 | | | | | $ | 9,301 | | |
Other comprehensive (loss) income, net of tax: | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency translation adjustment, net of tax | | | | | (4,799) | | | | | | (83) | | | | | | 2,660 | | | | | | (5,919) | | |
Changes in gain on available-for-sale securities, net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | (6,376) | | |
Unrealized actuarial gain (loss) on defined benefit plans, net of tax | | | | | 2,251 | | | | | | (47) | | | | | | 4,502 | | | | | | (79) | | |
Other comprehensive (loss) income, net of tax | | | | | (2,548) | | | | | | (130) | | | | | | 7,162 | | | | | | (12,374) | | |
Comprehensive (loss) income | | | | | (16,977) | | | | | | 16,279 | | | | | | 9,914 | | | | | | (3,073) | | |
Comprehensive income attributable to non-controlling interest in subsidiaries | | | | | (402) | | | | | | (1,081) | | | | | | (998) | | | | | | (2,114) | | |
Comprehensive (loss) income attributable to the Company | | | | $ | (17,379) | | | | | $ | 15,198 | | | | | $ | 8,916 | | | | | $ | (5,187) | | |
|
(in $ thousands, except share data) | | March 31, 2016 | | December 31, 2015 | | | June 30, 2016 | | December 31, 2015 | | ||||||||||||||||
Assets | | | | | ||||||||||||||||||||||
Current assets: | | | | | ||||||||||||||||||||||
Cash and cash equivalents | | | $ | 127,993 | | | | $ | 154,841 | | | | | $ | 126,937 | | | | $ | 154,841 | | | ||||
Accounts receivable (net of allowances for doubtful accounts of $14,242 and $14,575) | | | | 253,728 | | | | | 205,686 | | | |||||||||||||||
Accounts receivable (net of allowances for doubtful accounts of $13,185 and $14,575) | | | | 241,526 | | | | | 205,686 | | | |||||||||||||||
Deferred income taxes | | | | 5,231 | | | | | 5,133 | | | | | | 5,118 | | | | | 5,133 | | | ||||
Other current assets | | | | 141,440 | | | | | 99,481 | | | | | | 116,893 | | | | | 99,481 | | | ||||
Total current assets | | | | 528,392 | | | | | 465,141 | | | | | | 490,474 | | | | | 465,141 | | | ||||
Property and equipment, net | | | | 447,777 | | | | | 459,848 | | | | | | 429,842 | | | | | 459,848 | | | ||||
Goodwill | | | | 1,072,075 | | | | | 1,067,415 | | | | | | 1,083,841 | | | | | 1,067,415 | | | ||||
Trademarks and tradenames | | | | 314,013 | | | | | 313,961 | | | | | | 314,015 | | | | | 313,961 | | | ||||
Other intangible assets, net | | | | 540,141 | | | | | 534,540 | | | | | | 524,680 | | | | | 534,540 | | | ||||
Deferred income taxes | | | | 10,485 | | | | | 10,348 | | | | | | 10,288 | | | | | 10,348 | | | ||||
Other non-current assets | | | | 52,905 | | | | | 54,176 | | | | | | 48,106 | | | | | 54,176 | | | ||||
Total assets | | | $ | 2,965,788 | | | | $ | 2,905,429 | | | | | $ | 2,901,246 | | | | $ | 2,905,429 | | | ||||
Liabilities and equity | | | | | | | | | | | | | | |||||||||||||
Current liabilities: | | | | | | | | | | | | | | |||||||||||||
Accounts payable | | | $ | 73,995 | | | | $ | 74,277 | | | | | $ | 68,033 | | | | $ | 74,277 | | | ||||
Accrued expenses and other current liabilities | | | | 476,269 | | | | | 430,650 | | | | | | 451,282 | | | | | 430,650 | | | ||||
Current portion of long-term debt | | | | 62,484 | | | | | 74,163 | | | | | | 64,086 | | | | | 74,163 | | | ||||
Total current liabilities | | | | 612,748 | | | | | 579,090 | | | | | | 583,401 | | | | | 579,090 | | | ||||
Long-term debt | | | | 2,362,205 | | | | | 2,363,035 | | | | | | 2,346,696 | | | | | 2,363,035 | | | ||||
Deferred income taxes | | | | 59,027 | | | | | 59,663 | | | | | | 60,556 | | | | | 59,663 | | | ||||
Other non-current liabilities | | | | 228,482 | | | | | 226,499 | | | | | | 234,664 | | | | | 226,499 | | | ||||
Total liabilities | | | | 3,262,462 | | | | | 3,228,287 | | | | | | 3,225,317 | | | | | 3,228,287 | | | ||||
Commitments and contingencies (Note 10) | | | | | ||||||||||||||||||||||
Shareholders’ equity (deficit): | | | | | ||||||||||||||||||||||
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively) | | | | — | | | | | — | | | |||||||||||||||
Common shares ($0.0025 par value; 560,000,000 shares authorized; 124,587,794 shares and 124,476,382 shares issued; 123,719,469 shares and 123,631,474 shares outstanding as of March 31, 2016 and December 31, 2015, respectively) | | | | 311 | | | | | 311 | | | |||||||||||||||
Preference shares ($0.0025 par value; 225,000,000 shares authorized; no shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively) | | | | — | | | | | — | | | |||||||||||||||
Common shares ($0.0025 par value; 560,000,000 shares authorized; 124,736,389 shares and 124,476,382 shares issued and 123,872,088 shares and 123,631,474 shares outstanding as of June 30, 2016 and December 31, 2015, respectively) | | | | 312 | | | | | 311 | | | |||||||||||||||
Additional paid in capital | | | | 2,715,106 | | | | | 2,715,538 | | | | | | 2,714,321 | | | | | 2,715,538 | | | ||||
Treasury shares, at cost (868,325 shares and 844,908 shares as of March 31, 2016 and December 31, 2015, respectively) | | | | (13,606) | | | | | (13,331) | | | |||||||||||||||
Treasury shares, at cost (864,301 shares and 844,908 shares as of June 30, 2016 and December 31, 2015, respectively) | | | | (13,533) | | | | | (13,331) | | | |||||||||||||||
Accumulated deficit | | | | (2,865,073) | | | | | (2,881,658) | | | | | | (2,879,904) | | | | | (2,881,658) | | | ||||
Accumulated other comprehensive loss | | | | (167,797) | | | | | (177,507) | | | | | | (170,345) | | | | | (177,507) | | | ||||
Total shareholders’ equity (deficit) | | | | (331,059) | | | | | (356,647) | | | | | | (349,149) | | | | | (356,647) | | | ||||
Equity attributable to non-controlling interest in subsidiaries | | | | 34,385 | | | | | 33,789 | | | | | | 25,078 | | | | | 33,789 | | | ||||
Total equity (deficit) | | | | (296,674) | | | | | (322,858) | | | | | | (324,071) | | | | | (322,858) | | | ||||
Total liabilities and equity | | | $ | 2,965,788 | | | | $ | 2,905,429 | | | | | $ | 2,901,246 | | | | $ | 2,905,429 | | | |
(in $ thousands) | | Three Months Ended March 31, 2016 | | Three Months Ended March 31, 2015 | | | Six Months Ended June 30, 2016 | | Six Months Ended June 30, 2015 | ||||||||||||||||
Operating activities | | | | | | ||||||||||||||||||||
Net income (loss) | | | $ | 17,181 | | | | $ | (7,108) | | | ||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | |||||||||||||||||||||||
Net income | | | $ | 2,752 | | | | $ | 9,301 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | ||||||||||||||||
Depreciation and amortization | | | | 52,241 | | | | | 61,028 | | | | | | 104,487 | | | | | 118,875 | |||||
Amortization of customer loyalty payments | | | | 16,574 | | | | | 18,329 | | | | | | 34,261 | | | | | 36,267 | |||||
Allowance for prepaid incentives | | | | 10,684 | | | | | — | ||||||||||||||||
Gain on sale of shares of Orbitz Worldwide | | | | — | | | | | (6,271) | | | | | | — | | | | | (6,271) | |||||
Amortization of debt finance costs and debt discount | | | | 2,571 | | | | | 2,551 | | | | | | 5,126 | | | | | 5,144 | |||||
(Gain) loss on foreign exchange derivative instruments | | | | (11,074) | | | | | 10,586 | | | ||||||||||||||
Loss on early extinguishment of debt | | | | 2,671 | | | | | — | ||||||||||||||||
Loss (gain) on foreign exchange derivative instruments | | | | 2,451 | | | | | (8,186) | ||||||||||||||||
Loss on interest rate derivative instruments | | | | 16,456 | | | | | — | | | | | | 21,862 | | | | | — | |||||
Share of earnings in equity method investment | | | | — | | | | | (19) | | | ||||||||||||||
Share of losses in equity method investment | | | | — | | | | | 175 | ||||||||||||||||
Equity-based compensation | | | | 9,117 | | | | | 12,402 | | | | | | 16,222 | | | | | 18,980 | |||||
Deferred income taxes | | | | (887) | | | | | 1,724 | | | | | | 827 | | | | | 3,934 | |||||
Customer loyalty payments | | | | (25,307) | | | | | (23,400) | | | | | | (43,922) | | | | | (42,211) | |||||
Pension liability contribution | | | | (1,118) | | | | | (672) | | | | | | (1,837) | | | | | (1,550) | |||||
Changes in assets and liabilities: | | | | | | ||||||||||||||||||||
Accounts receivable | | | | (49,424) | | | | | (51,218) | | | | | | (37,454) | | | | | (47,661) | |||||
Other current assets | | | | (23,251) | | | | | (12,520) | | | | | | (19,072) | | | | | (5,331) | |||||
Accounts payable, accrued expenses and other current liabilities | | | | 27,232 | | | | | 8,104 | | | | | | 3,896 | | | | | (908) | |||||
Other | | | | (4,107) | | | | | (2,497) | | | | | | (22) | | | | | 11,608 | |||||
Net cash provided by operating activities | | | $ | 26,204 | | | | $ | 11,019 | | | | | $ | 102,932 | | | | $ | 92,166 | |||||
Investing activities | | | | | | | | | | | | ||||||||||||||
Property and equipment additions | | | $ | (22,521) | | | | $ | (27,084) | | | | | $ | (44,985) | | | | $ | (52,494) | |||||
Proceeds from sale of shares of Orbitz Worlwide | | | | — | | | | | 6,271 | | | ||||||||||||||
Business acquired, net of cash | | | | (15,009) | | | | | — | ||||||||||||||||
Proceeds from sale of shares of Orbitz Worldwide | | | | — | | | | | 6,271 | ||||||||||||||||
Net cash used in investing activities | | | $ | (22,521) | | | | $ | (20,813) | | | | | $ | (59,994) | | | | $ | (46,223) | |
(in $ thousands) | | Three Months Ended March 31, 2016 | | Three Months Ended March 31, 2015 | | | Six Months Ended June 30, 2016 | | Six Months Ended June 30, 2015 | |||||||||||||||
Financing activities | | | | | | | | | | | | |||||||||||||
Proceeds from term loans | | | $ | 143,291 | | | | $ | — | |||||||||||||||
Repayment of term loans | | | | (155,166) | | | | | (11,875) | |||||||||||||||
Proceeds from revolver borrowings | | | $ | 10,000 | | | | $ | — | | | | | | 10,000 | | | | | — | ||||
Repayment of revolver borrowings | | | | (10,000) | | | | | — | | | | | | (10,000) | | | | | — | ||||
Repayment of term loans | | | | (9,405) | | | | | (5,938) | | | |||||||||||||
Repayment of capital lease obligations and other indebtedness | | | | (12,079) | | | | | (8,056) | | | | | | (23,542) | | | | | (16,067) | ||||
Debt finance costs and lender fees | | | | (7,791) | | | | | — | |||||||||||||||
Release of cash provided as collateral | | | | — | | | | | 2,279 | | | | | | — | | | | | 4,336 | ||||
Dividend to shareholders | | | | (9,280) | | | | | (9,106) | | | | | | (18,565) | | | | | (18,555) | ||||
Purchase of non-controlling interest in a subsidiary | | | | (7,820) | | | | | — | |||||||||||||||
Treasury share purchase related to vesting of equity awards | | | | (275) | | | | | — | | | | | | (1,004) | | | | | (14,480) | ||||
Net cash used in financing activities | | | $ | (31,039) | | | | $ | (20,821) | | | | | $ | (70,597) | | | | $ | (56,641) | ||||
Effect of changes in exchange rates on cash and cash equivalents | | | | 508 | | | | | (973) | | | |||||||||||||
Effect of changes in exchange rate on cash and cash equivalents | | | | (245) | | | | | (1,252) | |||||||||||||||
Net decrease in cash and cash equivalents | | | | (26,848) | | | | | (31,588) | | | | | | (27,904) | | | | | (11,950) | ||||
Cash and cash equivalents at beginning of period | | | | 154,841 | | | | | 138,986 | | | | | | 154,841 | | | | | 138,986 | ||||
Cash and cash equivalents at end of period | | | $ | 127,993 | | | | $ | 107,398 | | | | | $ | 126,937 | | | | $ | 127,036 | ||||
Supplemental disclosure of cash flow information | | | | | | | | | | | | |||||||||||||
Interest payments, net of capitalized interest | | | $ | 37,480 | | | | $ | 37,901 | | | | | | 86,854 | | | | | 72,732 | ||||
Income tax payments, net of refunds | | | | 4,549 | | | | | 7,263 | | | | | | 8,573 | | | | | 13,272 | ||||
Non-cash capital lease additions | | | | 6,779 | | | | | 4,070 | | | |||||||||||||
Non-cash capital leases additions | | | | 7,969 | | | | | 25,151 | |||||||||||||||
Non-cash purchase of property and equipment. | | | | — | | | | | 27,000 |
| | Common Shares | | | Additional Paid in Capital | | | Treasury Shares | | | Accumulated Deficit | | Accumulated Other Comprehensive Loss | | Non- Controlling Interest in Subsidiaries | | Total Equity (Deficit) | | | Common Shares | | | Additional Paid in Capital | | | Treasury Shares | | | Accumulated Deficit | | Accumulated Other Comprehensive Loss | | Non- Controlling Interest in Subsidiaries | | Total Equity (Deficit) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in $ thousands, except share data) | | Number | | Amount | | Number | | Amount | | | Number | | Amount | | Number | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2015 | | | | 124,476,382 | | | | $ | 311 | | | | $ | 2,715,538 | | | | | 844,908 | | | | $ | (13,331) | | | | $ | (2,881,658) | | | | $ | (177,507) | | | | $ | 33,789 | | | | $ | (322,858) | | | | | | 124,476,382 | | | | $ | 311 | | | | $ | 2,715,538 | | | | | 844,908 | | | | $ | (13,331) | | | | $ | (2,881,658) | | | | $ | (177,507) | | | | $ | 33,789 | | | | $ | (322,858) | | | ||||||||||||||||||
Dividend to shareholders ($0.075 per share) | | | | — | | | | | — | | | | | (9,458) | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | (9,458) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend to shareholders ($0.15 per share) | | | | — | | | | | — | | | | | (18,996) | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | (18,996) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of non-controlling interest in a subsidiary | | | | — | | | | | — | | | | | 1,189 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | (9,709) | | | | | (8,520) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | | | | 111,412 | | | | | — | | | | | 9,026 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 9,026 | | | | | | 260,007 | | | | | 1 | | | | | 17,392 | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 17,393 | | | ||||||||||||||||||
Treasury shares purchased in relation to vesting of equity awards | | | | — | | | | | — | | | | | — | | | | | 23,417 | | | | | (275) | | | | | — | | | | | — | | | | | — | | | | | (275) | | | | | | — | | | | | — | | | | | — | | | | | 70,362 | | | | | (1,004) | | | | | — | | | | | — | | | | | — | | | | | (1,004) | | | ||||||||||||||||||
Comprehensive income (loss), net of tax | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 16,585 | | | | | 9,710 | | | | | 596 | | | | | 26,891 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2016 | | | | 124,587,794 | | | | $ | 311 | | | | $ | 2,715,106 | | | | | 868,325 | | | | $ | (13,606) | | | | $ | (2,865,073) | | | | $ | (167,797) | | | | $ | 34,385 | | | | $ | (296,674) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury shares issued in relation to vesting of equity awards | | | | — | | | | | — | | | | | (802) | | | | | (50,969) | | | | | 802 | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income, net of tax | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | 1,754 | | | | | 7,162 | | | | | 998 | | | | | 9,914 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2016 | | | | 124,736,389 | | | | $ | 312 | | | | $ | 2,714,321 | | | | | 864,301 | | | | $ | (13,533) | | | | $ | (2,879,904) | | | | $ | (170,345) | | | | $ | 25,078 | | | | $ | (324,071) | | | |
(in $ thousands) | | March 31, 2016 | | December 31, 2015 | | | June 30, 2016 | | December 31, 2015 | | ||||||||||||||||
Prepaid expenses | | | $ | 39,684 | | | | $ | 26,395 | | | | | $ | 33,739 | | | | $ | 26,395 | | | ||||
Sales and use tax receivables | | | | 32,722 | | | | | 27,233 | | | |||||||||||||||
Prepaid incentives | | | | 31,219 | | | | | 26,496 | | | | | | 21,636 | | | | | 26,496 | | | ||||
Sales and use tax receivables | | | | 29,628 | | | | | 27,233 | | | |||||||||||||||
Restricted cash | | | | 20,714 | | | | | 11,701 | | | | | | 17,457 | | | | | 11,701 | | | ||||
Derivative assets | | | | 5,903 | | | | | 657 | | | | | | 2,096 | | | | | 657 | | | ||||
Other | | | | 14,292 | | | | | 6,999 | | | | | | 9,243 | | | | | 6,999 | | | ||||
| | | $ | 141,440 | | | | $ | 99,481 | | | | | $ | 116,893 | | | | $ | 99,481 | | | |
| | March 31, 2016 | | December 31, 2015 | | | June 30, 2016 | | December 31, 2015 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | Cost | | Accumulated depreciation | | Net | | Cost | | Accumulated depreciation | | Net | | | Cost | | Accumulated depreciation | | Net | | Cost | | Accumulated depreciation | | Net | | ||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized software | | | $ | 881,751 | | | | $ | (661,426) | | | | $ | 220,325 | | | | $ | 870,868 | | | | $ | (635,135) | | | | $ | 235,733 | | | | | $ | 890,817 | | | | $ | (681,365) | | | | $ | 209,452 | | | | $ | 870,868 | | | | $ | (635,135) | | | | $ | 235,733 | | | ||||||||||||
Computer equipment | | | | 308,859 | | | | | (178,986) | | | | | 129,873 | | | | | 303,902 | | | | | (168,380) | | | | | 135,522 | | | | | | 308,878 | | | | | (187,501) | | | | | 121,377 | | | | | 303,902 | | | | | (168,380) | | | | | 135,522 | | | ||||||||||||
Building and leasehold improvements | | | | 25,334 | | | | | (9,490) | | | | | 15,844 | | | | | 24,102 | | | | | (8,735) | | | | | 15,367 | | | | | | 25,597 | | | | | (9,992) | | | | | 15,605 | | | | | 24,102 | | | | | (8,735) | | | | | 15,367 | | | ||||||||||||
Construction in progress | | | | 81,735 | | | | | — | | | | �� | 81,735 | | | | | 73,226 | | | | | — | | | | | 73,226 | | | | | | 83,408 | | | | | — | | | | | 83,408 | | | | | 73,226 | | | | | — | | | | | 73,226 | | | ||||||||||||
| | | $ | 1,297,679 | | | | $ | (849,902) | | | | $ | 447,777 | | | | $ | 1,272,098 | | | | $ | (812,250) | | | | $ | 459,848 | | | | | $ | 1,308,700 | | | | $ | (878,858) | | | | $ | 429,842 | | | | $ | 1,272,098 | | | | $ | (812,250) | | | | $ | 459,848 | | | |
(in $ thousands) | | January 1, 2016 | | Additions | | Retirements | | Foreign Exchange | | March 31, 2016 | | | January 1, 2016 | | Additions | | Retirements | | Foreign Exchange | | June 30, 2016 | | ||||||||||||||||||||||||||||||||||||||||
Non-Amortizable Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||
Goodwill | | | $ | 1,067,415 | | | | $ | — | | | | $ | — | | | | $ | 4,660 | | | | $ | 1,072,075 | | | | | $ | 1,067,415 | | | | $ | 14,105 | | | | $ | — | | | | $ | 2,321 | | | | $ | 1,083,841 | | | ||||||||||
Trademarks and tradenames | | | | 313,961 | | | | | — | | | | | — | | | | | 52 | | | | | 314,013 | | | | | | 313,961 | | | | | — | | | | | — | | | | | 54 | | | | | 314,015 | | | ||||||||||
Other Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||
Acquired intangible assets | | | | 1,127,360 | | | | | — | | | | | — | | | | | (26) | | | | | 1,127,334 | | | | | | 1,127,360 | | | | | — | | | | | — | | | | | (110) | | | | | 1,127,250 | | | ||||||||||
Accumulated amortization | | | | (756,489) | | | | | (11,139) | | | | | — | | | | | (552) | | | | | (768,180) | | | | | | (756,489) | | | | | (24,855) | | | | | — | | | | | (348) | | | | | (781,692) | | | ||||||||||
Acquired intangible assets, net | | | | 370,871 | | | | | (11,139) | | | | | — | | | | | (578) | | | | | 359,154 | | | | | | 370,871 | | | | | (24,855) | | | | | — | | | | | (458) | | | | | 345,558 | | | ||||||||||
Customer loyalty payments | | | | 300,142 | | | | | 32,050 | | | | | (19,880) | | | | | 4,124 | | | | | 316,436 | | | | | | 300,142 | | | | | 50,346 | | | | | (29,359) | | | | | 1,844 | | | | | 322,973 | | | ||||||||||
Accumulated amortization | | | | (136,473) | | | | | (16,574) | | | | | 19,154 | | | | | (1,556) | | | | | (135,449) | | | | | | (136,473) | | | | | (34,261) | | | | | 27,479 | | | | | (596) | | | | | (143,851) | | | ||||||||||
Customer loyalty payments, net | | | | 163,669 | | | | | 15,476 | | | | | (726) | | | | | 2,568 | | | | | 180,987 | | | | | | 163,669 | | | | | 16,085 | | | | | (1,880) | | | | | 1,248 | | | | | 179,122 | | | ||||||||||
Other intangible assets, net | | | $ | 534,540 | | | | $ | 4,337 | | | | $ | (726) | | | | $ | 1,990 | | | | $ | 540,141 | | | | | $ | 534,540 | | | | $ | (8,770) | | | | $ | (1,880) | | | | $ | 790 | | | | $ | 524,680 | | | |
(in $ thousands) | | January 1, 2015 | | Additions | | Retirements | | Foreign Exchange | | March 31, 2015 | | | January 1, 2015 | | Additions | | Retirements | | Foreign Exchange | | June 30, 2015 | | ||||||||||||||||||||||||||||||||||||||||
Non-Amortizable Assets: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | | | $ | 997,419 | | | | $ | — | | | | $ | — | | | | $ | (1,455) | | | | $ | 995,964 | | | | | $ | 997,419 | | | | $ | — | | | | $ | — | | | | $ | (1,092) | | | | $ | 996,327 | | | ||||||||||
Trademarks and tradenames | | | | 313,961 | | | | | — | | | | | — | | | | | — | | | | | 313,961 | | | | | | 313,961 | | | | | — | | | | | — | | | | | — | | | | | 313,961 | | | ||||||||||
Other Intangible Assets: | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired intangible assets | | | | 1,129,320 | | | | | — | | | | | (2,222) | | | | | 111 | | | | | 1,127,209 | | | | | | 1,129,320 | | | | | — | | | | | (2,535) | | | | | 507 | | | | | 1,127,292 | | | ||||||||||
Accumulated amortization | | | | (687,495) | | | | | (18,623) | | | | | 2,222 | | | | | (200) | | | | | (704,096) | | | | | | (687,495) | | | | | (37,765) | | | | | 2,535 | | | | | (513) | | | | | (723,238) | | | ||||||||||
Acquired intangible assets, net | | | | 441,825 | | | | | (18,623) | | | | | — | | | | | (89) | | | | | 423,113 | | | | | | 441,825 | | | | | (37,765) | | | | | — | | | | | (6) | | | | | 404,054 | | | ||||||||||
Customer loyalty payments | | | | 334,309 | | | | | 19,836 | | | | | (31,761) | | | | | — | | | | | 322,384 | | | | | | 334,309 | | | | | 42,840 | | | | | (43,215) | | | | | (2,677) | | | | | 331,257 | | | ||||||||||
Accumulated amortization | | | | (157,319) | | | | | (18,329) | | | | | 31,761 | | | | | (510) | | | | | (144,397) | | | | | | (157,319) | | | | | (36,267) | | | | | 43,215 | | | | | — | | | | | (150,371) | | | ||||||||||
Customer loyalty payments, net | | | | 176,990 | | | | | 1,507 | | | | | — | | | | | (510) | | | | | 177,987 | | | | | | 176,990 | | | | | 6,573 | | | | | — | | | | | (2,677) | | | | | 180,886 | | | ||||||||||
Other intangible assets, net | | | $ | 618,815 | | | | $ | (17,116) | | | | $ | — | | | | $ | (599) | | | | $ | 601,100 | | | | | $ | 618,815 | | | | $ | (31,192) | | | | $ | — | | | | $ | (2,683) | | | | $ | 584,940 | | | |
(in $ thousands) | | March 31, 2016 | | December 31, 2015 | | | June 30, 2016 | | December 31, 2015 | | ||||||||||||||||
Supplier prepayments | | | $ | 19,828 | | | | $ | 14,616 | | | | | $ | 16,278 | | | | $ | 14,616 | | | ||||
Prepaid incentives | | | | 10,364 | | | | | 9,282 | | | | | | 9,666 | | | | | 9,282 | | | ||||
Pension assets | | | | 5,752 | | | | | 5,186 | | | |||||||||||||||
Deferred financing costs | | | | 6,096 | | | | | 6,543 | | | | | | 5,652 | | | | | 6,543 | | | ||||
Pension assets | | | | 5,969 | | | | | 5,186 | | | |||||||||||||||
Derivative assets | | | | — | | | | | 8,655 | | | | | | — | | | | | 8,655 | | | ||||
Other | | | | 10,648 | | | | | 9,894 | | | | | | 10,758 | | | | | 9,894 | | | ||||
| | | $ | 52,905 | | | | $ | 54,176 | | | | | $ | 48,106 | | | | $ | 54,176 | | | |
(in $ thousands) | | March 31, 2016 | | December 31, 2015 | | | June 30, 2016 | | December 31, 2015 | | ||||||||||||||||
Accrued commissions and incentives | | | $ | 276,979 | | | | $ | 241,358 | | | | | $ | 273,927 | | | | $ | 241,358 | | | ||||
Accrued payroll and related | | | | 63,879 | | | | | 77,544 | | | | | | 62,352 | | | | | 77,544 | | | ||||
Deferred revenue | | | | 49,391 | | | | | 35,836 | | | | | | 42,116 | | | | | 35,836 | | | ||||
Income tax payable | | | | 18,227 | | | | | 15,516 | | | |||||||||||||||
Customer prepayments | | | | 20,714 | | | | | 11,701 | | | | | | 17,457 | | | | | 11,701 | | | ||||
Income tax payable | | | | 20,274 | | | | | 15,516 | | | |||||||||||||||
Derivative liabilities | | | | 13,618 | | | | | 10,341 | | | |||||||||||||||
Accrued interest expense | | | | 17,221 | | | | | 18,800 | | | | | | 2,997 | | | | | 18,800 | | | ||||
Derivative liabilities | | | | 5,421 | | | | | 10,341 | | | |||||||||||||||
Pension and post-retirement benefit liabilities | | | | 1,748 | | | | | 1,528 | | | | | | 1,448 | | | | | 1,528 | | | ||||
Other | | | | 20,642 | | | | | 18,026 | | | | | | 19,140 | | | | | 18,026 | | | ||||
| | | $ | 476,269 | | | | $ | 430,650 | | | | | $ | 451,282 | | | | $ | 430,650 | | | |
(in $ thousands) | | Interest rate | | Maturity | | March 31, 2016 | | December 31, 2015 | | | Interest rate | | Maturity | | June 30, 2016 | | December 31, 2015 | | |||||||||||||||||||||||
Senior Secured Credit Agreement | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Term loans | | | | | | | | ||||||||||||||||||||||||||||||||||
Dollar denominated | | L+4.75% | | September 2021 | | | $ | 2,296,034 | | | | $ | 2,303,315 | | | | | | L+4.00% | | | September 2021 | | | $ | 2,292,472 | | | | $ | 2,303,315 | | | ||||||||
Revolver borrowings | | | | | | | | ||||||||||||||||||||||||||||||||||
Dollar denominated | | L+5.00% | | September 2019 | | | | — | | | | | — | | | | | | L+5.00% | | | September 2019 | | | | — | | | | | — | | | ||||||||
Capital leases and other indebtedness | | | | | | | | 128,655 | | | | | 133,883 | | | | | | | | | | | | | 118,310 | | | | | 133,883 | | | ||||||||
Total debt | | | | | | | $ | 2,424,689 | | | | $ | 2,437,198 | | | | | | | | | | | | | 2,410,782 | | | | | 2,437,198 | | | ||||||||
Less: current portion | | | | | | | | 62,484 | | | | | 74,163 | | | | | | | | | | | | | 64,086 | | | | | 74,163 | | | ||||||||
Long-term debt | | | | | | | $ | 2,362,205 | | | | $ | 2,363,035 | | | | | | | | | | | | $ | 2,346,696 | | | | $ | 2,363,035 | | | |
| | | | Fair Value Asset | | | | Fair Value (Liability) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | Balance Sheet Location | | March 31, 2016 | | December 31, 2015 | | Balance Sheet Location | | March 31, 2016 | | December 31, 2015 | | | Balance Sheet Location | | | Fair Value Asset | | | Balance Sheet Location | | | Fair Value (Liability) | | |||||||||||||||||||||||||||||||||||||
(in $ thousands) | | June 30, 2016 | | December 31, 2015 | | June 30, 2016 | | December 31, 2015 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other current assets | | | $ | — | | | | $ | — | | | Accrued Expenses and other current liabilities | | | $ | (2,401) | | | | $ | — | | | ||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | | Other non-current assets | | | $ | — | | | | $ | 8,655 | | | Other non-current liabilities | | | $ | (7,801) | | | | $ | — | | | | Other non-current assets | | | | — | | | | | 8,655 | | | Other non-current liabilities | | | | (10,806) | | | | | — | | | ||||||||||||
Foreign currency contracts | | Other current assets | | | | 5,903 | | | | | 657 | | | Accrued Expenses and other current liabilities | | | | (5,421) | | | | | (10,341) | | | | Other current assets | | | | 2,096 | | | | | 657 | | | Accrued Expenses and other current liabilities | | | | (11,217) | | | | | (10,341) | | | ||||||||||||
Foreign currency contracts | | Other non-current assets | | | | — | | | | | — | | | Other non-current liabilities | | | | (136) | | | | | (1,082) | | | | Other non-current assets | | | | — | | | | | — | | | Other non-current liabilities | | | | (4,066) | | | | | (1,082) | | | ||||||||||||
Total fair value of derivative assets (liabilities) | | | | | $ | 5,903 | | | | $ | 9,312 | | | | | | $ | (13,358) | | | | $ | (11,423) | | | | | | | $ | 2,096 | | | | $ | 9,312 | | | | | | $ | (28,490) | | | | $ | (11,423) | | | |
(in $ thousands) | | Three Months Ended March 31, 2016 | | Three Months Ended March 31, 2015 | | | Six Months Ended June 30, 2016 | | Six Months Ended June 30, 2015 | |||||||||||||||
Net derivative liability opening balance | | | $ | (2,111) | | | | $ | (15,548) | | | | | $ | (2,111) | | | | $ | (15,548) | ||||
Total loss for the period included in net income (loss) | | | | (14,605) | | | | | (16,457) | | | |||||||||||||
Payments on settlement of foreign currency derivative contracts | | | | 9,261 | | | | | 5,933 | | | |||||||||||||
Total loss for the period included in net income | | | | (34,560) | | | | | (5,426) | |||||||||||||||
Payment on settlement of foreign currency derivative contracts | | | | 10,277 | | | | | 13,501 | |||||||||||||||
Net derivative liability closing balance | | | $ | (7,455) | | | | $ | (26,072) | | | | | $ | (26,394) | | | | $ | (7,473) | |
| | | | | | Amount of Income (Loss) Recorded in Net (Loss) Income | | |||||||||||||||||||||
(in $ thousands) | | | Statement of Operations Location | | | Three Months Ended June 30, | | | Six Months Ended June 30, | | ||||||||||||||||||
| | | | | | 2016 | | | 2015 | | | 2016 | | | 2015 | | ||||||||||||
Interest rate swap contracts | | | Interest expense, net | | | | $ | (5,406) | | | | | $ | — | | | | | $ | (21,862) | | | | | $ | — | | |
Foreign currency contracts | | | Selling, general and administrative | | | | | (14,549) | | | | | | 11,031 | | | | | | (12,698) | | | | | | (5,426) | | |
| | | | | | | $ | (19,955) | | | | | $ | 11,031 | | | | | $ | (34,560) | | | | | $ | (5,426) | | |
|
| | | | | | Amount of Income (Loss) Recorded in Net Income (Loss) | | |||||||||
(in $ thousands) | | | Location of Gain (Loss) Recorded in Income (Loss) | | | Three Months Ended March 31, | | |||||||||
| | | | | | 2016 | | | 2015 | | ||||||
Interest rate swap contracts | | | Interest expense, net | | | | $ | (16,456) | | | | | $ | — | | |
Foreign currency contracts | | | Selling, general and administrative | | | | | 1,851 | | | | | | (16,457) | | |
| | | | | | | $ | (14,605) | | | | | $ | (16,457) | | |
|
| | | | March 31, 2016 | | December 31, 2015 | | | | | June 30, 2016 | | December 31, 2015 | | ||||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | Fair Value Hierarchy | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | | Fair Value Hierarchy | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | ||||||||||||||||||||||||||||||||||
Asset (liability) | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets | | Level 2 | | | | 5,903 | | | | | 5,903 | | | | | 9,312 | | | | | 9,312 | | | | Level 3 | | | | 2,096 | | | | | 2,096 | | | | | 9,312 | | | | | 9,312 | | | ||||||||||
Derivative liabilities | | Level 2 | | | | (13,358) | | | | | (13,358) | | | | | (11,423) | | | | | (11,423) | | | | Level 3 | | | | (28,490) | | | | | (28,490) | | | | | (11,423) | | | | | (11,423) | | | ||||||||||
Total debt | | Level 2 | | | | (2,424,689) | | | | | (2,466,987) | | | | | (2,437,198) | | | | | (2,431,242) | | | | Level 2 | | | | (2,410,782) | | | | | (2,451,346) | | | | | (2,437,198) | | | | | (2,431,242) | | |
Declaration Date | | Dividend Per Share | | Record Date | | Payment Date | | Amount (in $ thousands) | | | Dividend Per Share | | Record Date | | Payment Date | | Amount (in $ thousands) | | ||||||||||||||||||||
February 17, 2016 | | | $ | 0.075 | | | March 3, 2016 | | March 17, 2016 | | | $ | 9,279 | | | | | $ | 0.075 | | | March 3, 2016 | | March 17, 2016 | | | $ | 9,279 | | | ||||||||
May 3, 2016 | | | $ | 0.075 | | | June 2, 2016 | | June 16, 2016 | | | $ | 9,286 | | |
| | Restricted Units | | | Restricted Units | | ||||||||||||||||||||
(in dollars, except number of Restricted Units) | | Number | | Weighted Average Grant Date Fair Value | | |||||||||||||||||||||
(in dollars, except number of Restricted Units) | | Number | | Weighted Average Grant Date Fair Value | | |||||||||||||||||||||
Balance as of January 1, 2016 | | | | 2,172,529 | | | | $ | 15.73 | | | | | | 2,172,529 | | | | $ | 15.73 | | | ||||
Granted at fair market value | | | | 1,634,829 | | | | $ | 13.18 | | | | | | 1,746,421 | | | | $ | 13.23 | | | ||||
Vested(1) | | | | (60,071) | | | | $ | 18.64 | | | | | | (206,216) | | | | $ | 15.62 | | | ||||
Forfeited | | | | (177,992) | | | | $ | 16.75 | | | | | | (218,025) | | | | $ | 16.33 | | | ||||
Balance as of March 31, 2016 | | | | 3,569,295 | | | | $ | 14.46 | | | |||||||||||||||
Balance as of June 30, 2016 | | | | 3,494,709 | | | | $ | 14.45 | | | |
| | Stock Options | | | Stock Options | | ||||||||||||||||||||
(in dollars, except number of stock options) | | Number | | Weighted Average Grant Date Fair Value | | | Number | | Weighted Average Grant Date Fair Value | | ||||||||||||||||
Balance as of January 1, 2016 | | | | 1,454,638 | | | | $ | 6.49 | | | | | | 1,454,638 | | | | $ | 6.49 | | | ||||
Granted at fair market value | | | | 1,299,356 | | | | $ | 4.04 | | | | | | 1,347,066 | | | | $ | 4.04 | | | ||||
Forfeited | | | | (121,751) | | | | $ | 6.35 | | | | | | (127,611) | | | | $ | 6.35 | | | ||||
Expired | | | | (13,184) | | | | $ | 6.43 | | | | | | (73,010) | | | | $ | 6.43 | | | ||||
Balance as of March 31, 2016 | | | | 2,619,059 | | | | $ | 5.28 | | | |||||||||||||||
Balance as of June 30, 2016 | | | | 2,601,083 | | | | $ | 5.23 | | | |
| | | Three Months Ended March 31, | | |||||||||
(in $ thousands, except for share data) | | | 2016 | | | 2015 | | ||||||
Numerator – Basic and Diluted Income (Loss) per Share: | | | | ||||||||||
Net income (loss) attributable to the Company | | | | $ | 16,585 | | | | | $ | (8,141) | | |
Denominator – Basic Income (Loss) per Share: | | | | ||||||||||
Weighted average common shares outstanding | | | | | 123,718,311 | | | | | | 121,411,360 | | |
Income (loss) per share – Basic | | | | $ | 0.13 | | | | | $ | (0.07) | | |
Denominator – Diluted Income (Loss) per Share: | | | | ||||||||||
Number of common shares used for basic income (loss) per share | | | | | 123,718,311 | | | | | | 121,411,360 | | |
Weighted average effect of dilutive securities Stock Options | | | | | 60,096 | | | | | | — | | |
Weighted average common shares outstanding | | | | | 123,778,407 | | | | | | 121,411,360 | | |
Income (loss) per share – Diluted | | | | $ | 0.13 | | | | | $ | (0.07) | | |
|
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | | ||||||||||||||||||
(in $ thousand, except share data) | | | 2016 | | | 2015 | | | 2016 | | | 2015 | | ||||||||||||
Numerator – Basic and Diluted (Loss) Income per Share: | | | | | | ||||||||||||||||||||
Net (loss) income attributable to the Company | | | | $ | (14,831) | | | | | $ | 15,328 | | | | | $ | 1,754 | | | | | $ | 7,187 | | |
Denominator – Basic (Loss) Income per Share: | | | | | | ||||||||||||||||||||
Weighted average common shares outstanding | | | | | 123,825,030 | | | | | | 122,269,482 | | | | | | 123,771,642 | | | | | | 121,842,792 | | |
(Loss) income per share – Basic | | | | $ | (0.12) | | | | | $ | 0.13 | | | | | $ | 0.01 | | | | | $ | 0.06 | | |
Denominator – Diluted (Loss) Income per Share: | | | | | | ||||||||||||||||||||
Number of common shares used for basic (loss) income per share | | | | | 123,825,030 | | | | | | 122,269,482 | | | | | | 123,771,642 | | | | | | 121,842,792 | | |
Weighted average effect of dilutive securities | | | | | | ||||||||||||||||||||
RSUs | | | | | 70,030 | | | | | | 365,951 | | | | | | 64,467 | | | | | | 770,326 | | |
Stock Options | | | | | 95,117 | | | | | | 82,464 | | | | | | 76,572 | | | | | | 59,645 | | |
Weighted average common shares outstanding | | | | | 123,990,177 | | | | | | 122,717,897 | | | | | | 123,912,681 | | | | | | 122,672,763 | | |
(Loss) income per share – Diluted | | | | $ | (0.12) | | | | | $ | 0.12 | | | | | $ | 0.01 | | | | | $ | 0.06 | | |
|
| | | Three Months Ended March 31, | | | Change | | ||||||||||||||||||
(in $ thousands, except share data, Reported Segments and RevPas) | | | 2016 | | | 2015 | | | | | | | | | % | | |||||||||
Net revenue | | | | $ | 609,263 | | | | | $ | 572,128 | | | | | $ | 37,135 | | | | | | 6 | | |
Operating income | | | | | 79,868 | | | | | | 33,749 | | | | | | 46,119 | | | | | | 137 | | |
Net income (loss) | | | | | 17,181 | | | | | | (7,108) | | | | | | 24,289 | | | | | | * | | |
Income (loss) per share – diluted (in $) | | | | | 0.13 | | | | | | (0.07) | | | | | | 0.20 | | | | | | * | | |
Adjusted EBITDA(1) | | | | | 154,140 | | | | | | 137,458 | | | | | | 16,682 | | | | | | 12 | | |
Adjusted Operating Income(2) | | | | | 96,464 | | | | | | 76,724 | | | | | | 19,740 | | | | | | 26 | | |
Adjusted Net Income(3) | | | | | 50,955 | | | | | | 29,577 | | | | | | 21,378 | | | | | | 72 | | |
Adjusted Income per Share – diluted(4) (in $) | | | | | 0.41 | | | | | | 0.24 | | | | | | 0.17 | | | | | | 71 | | |
Net cash provided by operating activities | | | | | 26,204 | | | | | | 11,019 | | | | | | 15,185 | | | | | | 138 | | |
Adjusted Free Cash Flow(5) | | | | | (5,070) | | | | | | (21,018) | | | | | | 15,948 | | | | | | 76 | | |
Reported Segments (in thousands) | | | | | 89,973 | | | | | | 94,520 | | | | | | (4,547) | | | | | | (5) | | |
Travel Commerce Platform RevPas (in $) | | | | $ | 6.43 | | | | | $ | 5.73 | | | | | | 0.70 | | | | | | 12 | | |
(in $ thousands, except per share data, Reported Segments and RevPas) | | | Three Months Ended June 30, | | | Change | | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||||||||||||||||||||
| 2016 | | | 2015 | | | | | | | | | % | | | 2016 | | | 2015 | | | | | | | | | % | | ||||||||||||||||||||
Net revenue | | | | $ | 605,905 | | | | | $ | 554,202 | | | | | $ | 51,703 | | | | | | 9 | | | | | $ | 1,215,168 | | | | | $ | 1,126,330 | | | | | $ | 88,838 | | | | | | 8 | | |
Operating income | | | | | 37,760 | | | | | | 63,146 | | | | | | (25,386) | | | | | | (40) | | | | | | 117,628 | | | | | | 96,895 | | | | | | 20,733 | | | | | | 21 | | |
Net (loss) income | | | | | (14,429) | | | | | | 16,409 | | | | | | (30,838) | | | | | | (188) | | | | | | 2,752 | | | | | | 9,301 | | | | | | (6,549) | | | | | | (70) | | |
(Loss) income per share – diluted (in $) | | | | | (0.12) | | | | | | 0.12 | | | | | | (0.24) | | | | | | (200) | | | | | | 0.01 | | | | | | 0.06 | | | | | | (0.05) | | | | | | (83) | | |
Adjusted EBITDA(1) | | | | | 139,013 | | | | | | 136,986 | | | | | | 2,027 | | | | | | 1 | | | | | | 293,153 | | | | | | 274,444 | | | | | | 18,709 | | | | | | 7 | | |
Adjusted Operating Income(2) | | | | | 82,796 | | | | | | 80,343 | | | | | | 2,453 | | | | | | 3 | | | | | | 179,260 | | | | | | 157,067 | | | | | | 22,193 | | | | | | 14 | | |
Adjusted Net Income(3) | | | | | 34,287 | | | | | | 35,487 | | | | | | (1,200) | | | | | | (3) | | | | | | 85,242 | | | | | | 65,064 | | | | | | 20,178 | | | | | | 31 | | |
Adjusted Income per Share – diluted(4) (in $) | | | | | 0.28 | | | | | | 0.29 | | | | | | (0.01) | | | | | | (3) | | | | | | 0.69 | | | | | | 0.53 | | | | | | 0.16 | | | | | | 30 | | |
Net cash provided by operating activities | | | | | 76,728 | | | | | | 81,147 | | | | | | (4,419) | | | | | | (5) | | | | | | 102,932 | | | | | | 92,166 | | | | | | 10,766 | | | | | | 12 | | |
Adjusted Free Cash Flow(5) | | | | | 52,343 | | | | | | 53,701 | | | | | | (1,358) | | | | | | (3) | | | | | | 47,273 | | | | | | 32,683 | | | | | | 14,590 | | | | | | 45 | | |
Reported Segments (in thousands) | | | | | 86,807 | | | | | | 87,150 | | | | | | (343) | | | | | | — | | | | | | 176,780 | | | | | | 181,670 | | | | | | (4,890) | | | | | | (3) | | |
Travel Commerce Platform RevPas (in $) | | | | $ | 6.61 | | | | | $ | 6.00 | | | | | $ | 0.61 | | | | | | 10 | | | | | $ | 6.52 | | | | | $ | 5.86 | | | | | $ | 0.66 | | | | | | 11 | | |
| | Three Months Ended March 31, | | | Three Months Ended June 30, | | Six Months Ended June 30, | | ||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | | 2016 | | 2015 | | 2016 | | 2015 | | ||||||||||||||||||||||||
Net income (loss) | | | $ | 17,181 | | | | $ | (7,108) | | | |||||||||||||||||||||||||||
Net (loss) income | | | $ | (14,429) | | | | $ | 16,409 | | | | $ | 2,752 | | | | $ | 9,301 | | | |||||||||||||||||
Adjustments: | | | | | ||||||||||||||||||||||||||||||||||
Amortization of intangible assets(1) | | | | 11,139 | | | | | 18,623 | | | | | | 13,716 | | | | | 19,142 | | | | | 24,855 | | | | | 37,765 | | | ||||||
Share of earnings in equity method investment | | | | — | | | | | (19) | | | |||||||||||||||||||||||||||
Loss on early extinguishment of debt | | | | 2,671 | | | | | — | | | | | 2,671 | | | | | — | | | |||||||||||||||||
Share of losses in equity method investment | | | | — | | | | | 194 | | | | | — | | | | | 175 | | | |||||||||||||||||
Gain on sale of shares of Orbitz Worldwide | | | | — | | | | | (6,271) | | | | | | — | | | | | — | | | | | — | | | | | (6,271) | | | ||||||
Equity-based compensation and related taxes | | | | 9,101 | | | | | 12,402 | | | | | | 6,823 | | | | | 8,621 | | | | | 15,924 | | | | | 21,023 | | | ||||||
Corporate and restructuring costs(2) | | | | 7,409 | | | | | 1,614 | | | | | | 6,870 | | | | | 6,454 | | | | | 14,279 | | | | | 8,068 | | | ||||||
Other – non cash(3) | | | | 5,403 | | | | | 10,336 | | | | | | 23,033 | | | | | (17,020) | | | | | 28,436 | | | | | (6,684) | | | ||||||
Tax impact of adjustments | | | | 722 | | | | | — | | | |||||||||||||||||||||||||||
Tax impact of adjustments(4) | | | | (4,397) | | | | | 1,687 | | | | | (3,675) | | | | | 1,687 | | | |||||||||||||||||
Adjusted Net Income | | | | 50,955 | | | | | 29,577 | | | | | | 34,287 | | | | | 35,487 | | | | | 85,242 | | | | | 65,064 | | | ||||||
Adjustments: | | | | | ||||||||||||||||||||||||||||||||||
Interest expense, net(4) | | | | 38,439 | | | | | 39,389 | | | |||||||||||||||||||||||||||
Interest expense, net(5) | | | | 39,707 | | | | | 38,751 | | | | | 78,146 | | | | | 78,140 | | | |||||||||||||||||
Remaining provision for income taxes | | | | 7,070 | | | | | 7,758 | | | | | | 8,802 | | | | | 6,105 | ��� | | | | 15,872 | | | | | 13,863 | | | ||||||
Adjusted Operating Income | | | | 96,464 | | | | | 76,724 | | | | | | 82,796 | | | | | 80,343 | | | | | 179,260 | | | | | 157,067 | | | ||||||
Adjustments: | | | | | ||||||||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment | | | | 41,102 | | | | | 42,405 | | | | | | 38,530 | | | | | 38,705 | | | | | 79,632 | | | | | 81,110 | | | ||||||
Amortization of customer loyalty payments | | | | 16,574 | | | | | 18,329 | | | | | | 17,687 | | | | | 17,938 | | | | | 34,261 | | | | | 36,267 | | | ||||||
Adjusted EBITDA | | | $ | 154,140 | | | | $ | 137,458 | | | | | $ | 139,013 | | | | $ | 136,986 | | | | $ | 293,153 | | | | $ | 274,444 | | | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | | ||||||||||||||||||
| | | 2016 | | | 2015 | | | 2016 | | | 2015 | | ||||||||||||
(Loss) income per share – diluted | | | | $ | (0.12) | | | | | $ | 0.12 | | | | | $ | 0.01 | | | | | $ | 0.06 | | |
Per share adjustments to net (loss) income to determine Adjusted Income per Share – diluted | | | | | 0.40 | | | | | | 0.17 | | | | | | 0.68 | | | | | | 0.47 | | |
Adjusted Income per Share – diluted | | | | $ | 0.28 | | | | | $ | 0.29 | | | | | $ | 0.69 | | | | | $ | 0.53 | | |
|
| | Three Months Ended March 31, | | | Six Months Ended June 30, | | ||||||||||||||||||||
(in percentages) | | 2016 | | 2015 | | | 2016 | | 2015 | | ||||||||||||||||
Asia Pacific | | | | 22 | | | | | 22 | | | | | | 22 | | | | | 22 | | | ||||
Europe | | | | 33 | | | | | 31 | | | | | | 33 | | | | | 30 | | | ||||
Latin America and Canada | | | | 5 | | | | | 4 | | | | | | 5 | | | | | 4 | | | ||||
Middle East and Africa | | | | 13 | | | | | 13 | | | | | | 13 | | | | | 14 | | | ||||
International | | | | 73 | | | | | 70 | | | | | | 73 | | | | | 70 | | | ||||
United States | | | | 27 | | | | | 30 | | | | | | 27 | | | | | 30 | | | ||||
Travel Commerce Platform | | | | 100 | | | | | 100 | | | | | | 100 | | | | | 100 | | | |
| | Three Months Ended March 31, | | Change | | | Three Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | % | | | 2016 | | 2015 | | $ | | % | | ||||||||||||||||||||||||||||||||
Net revenue | | | $ | 609,263 | | | | $ | 572,128 | | | | $ | 37,135 | | | | | 6 | | | | | $ | 605,905 | | | | $ | 554,202 | | | | $ | 51,703 | | | | | 9 | | | ||||||||
Costs and expenses | | | | | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | | | | 362,677 | | | | | 349,231 | | | | | 13,446 | | | | | 4 | | | | | | 376,605 | | | | | 335,050 | | | | | 41,555 | | | | | 12 | | | ||||||||
Selling, general and administrative | | | | 114,477 | | | | | 128,120 | | | | | (13,643) | | | | | (11) | | | | | | 139,294 | | | | | 98,159 | | | | | 41,135 | | | | | 42 | | | ||||||||
Depreciation and amortization | | | | 52,241 | | | | | 61,028 | | | | | (8,787) | | | | | (14) | | | | | | 52,246 | | | | | 57,847 | | | | | (5,601) | | | | | (10) | | | ||||||||
Total costs and expenses | | | | 529,395 | | | | | 538,379 | | | | | (8,984) | | | | | (2) | | | | | | 568,145 | | | | | 491,056 | | | | | 77,089 | | | | | 16 | | | ||||||||
Operating income | | | | 79,868 | | | | | 33,749 | | | | | 46,119 | | | | | 137 | | | | | | 37,760 | | | | | 63,146 | | | | | (25,386) | | | | | (40) | | | ||||||||
Interest expense, net | | | | (54,895) | | | | | (39,389) | | | | | (15,506) | | | | | (39) | | | | | | (45,113) | | | | | (38,751) | | | | | (6,362) | | | | | (16) | | | ||||||||
Gain on sale of shares of Orbitz Worldwide | | | | — | | | | | 6,271 | | | | | (6,271) | | | | | (100) | | | |||||||||||||||||||||||||||||
Income before income taxes and share of earnings in equity method investment | | | | 24,973 | | | | | 631 | | | | | 24,342 | | | | | * | | | |||||||||||||||||||||||||||||
Loss on early extinguishment of debt | | | | (2,671) | | | | | — | | | | | (2,671) | | | | | * | | | |||||||||||||||||||||||||||||
(Loss) income before income taxes and share of losses in equity method investment | | | | (10,024) | | | | | 24,395 | | | | | (34,419) | | | | | (141) | | | |||||||||||||||||||||||||||||
Provision for income taxes | | | | (7,792) | | | | | (7,758) | | | | | (34) | | | | | * | | | | | | (4,405) | | | | | (7,792) | | | | | 3,387 | | | | | 43 | | | ||||||||
Share of earnings in equity method investment | | | | — | | | | | 19 | | | | | (19) | | | | | (100) | | | |||||||||||||||||||||||||||||
Net income (loss) | | | $ | 17,181 | | | | $ | (7,108) | | | | $ | 24,289 | | | | | * | | | |||||||||||||||||||||||||||||
Share of losses in equity method investment | | | | — | | | | | (194) | | | | | 194 | | | | | 100 | | | |||||||||||||||||||||||||||||
Net (loss) income | | | $ | (14,429) | | | | $ | 16,409 | | | | $ | (30,838) | | | | | (188) | | | |
| | Three Months Ended March 31, | | Change | | | Three Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ thousands ) | | 2016 | | 2015 | | $ | | % | | | 2016 | | 2015 | | $ | | % | | ||||||||||||||||||||||||||||||||
Air | | | $ | 443,884 | | | | $ | 431,521 | | | | $ | 12,363 | | | | | 3 | | | | | $ | 425,861 | | | | $ | 400,974 | | | | $ | 24,887 | | | | | 6 | | | ||||||||
Beyond Air | | | | 135,002 | | | | | 110,120 | | | | | 24,882 | | | | | 23 | | | | | | 148,197 | | | | | 121,700 | | | | | 26,497 | | | | | 22 | | | ||||||||
Travel Commerce Platform | | | | 578,886 | | | | | 541,641 | | | | | 37,245 | | | | | 7 | | | | | | 574,058 | | | | | 522,674 | | | | | 51,384 | | | | | 10 | | | ||||||||
Technology Services | | | | 30,377 | | | | | 30,487 | | | | | (110) | | | | | — | | | | | | 31,847 | | | | | 31,528 | | | | | 319 | | | | | 1 | | | ||||||||
Net revenue | | | $ | 609,263 | | | | $ | 572,128 | | | | $ | 37,135 | | | | | 6 | | | | | $ | 605,905 | | | | $ | 554,202 | | | | $ | 51,703 | | | | | 9 | | | |
| | Three Months Ended March 31, | | Change | | | Three Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||||||||||||||
| | 2016 | | 2015 | | $ | | % | | | 2016 | | 2015 | | | | | | | % | | |||||||||||||||||||||||||||||
Travel Commerce Platform RevPas (in $) | | | $ | 6.43 | | | | $ | 5.73 | | | | $ | 0.70 | | | | | 12 | | | | | $ | 6.61 | | | | $ | 6.00 | | | | $ | 0.61 | | | | | 10 | | | ||||||||
Reported Segments (in thousands) | | | | 89,973 | | | | | 94,520 | | | | | (4,547) | | | | | (5) | | | | | | 86,807 | | | | | 87,150 | | | | | (343) | | | | | — | | |
| | Three Months Ended March 31, | | Change | | | Three Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | % | | | 2016 | | 2015 | | $ | | % | | ||||||||||||||||||||||||||||||||
Asia Pacific | | | $ | 128,495 | | | | $ | 117,773 | | | | $ | 10,722 | | | | | 9 | | | | | $ | 130,526 | | | | $ | 115,397 | | | | $ | 15,129 | | | | | 13 | | | ||||||||
Europe | | | | 194,847 | | | | | 165,727 | | | | | 29,120 | | | | | 18 | | | | | | 182,710 | | | | | 149,913 | | | | | 32,797 | | | | | 22 | | | ||||||||
Latin America and Canada | | | | 28,036 | | | | | 23,761 | | | | | 4,275 | | | | | 18 | | | | | | 28,245 | | | | | 24,299 | | | | | 3,946 | | | | | 16 | | | ||||||||
Middle East and Africa | | | | 73,450 | | | | | 73,323 | | | | | 127 | | | | | — | | | | | | 77,346 | | | | | 74,625 | | | | | 2,721 | | | | | 4 | | | ||||||||
International | | | | 424,828 | | | | | 380,584 | | | | | 44,244 | | | | | 12 | | | | | | 418,827 | | | | | 364,234 | | | | | 54,593 | | | | | 15 | | | ||||||||
United States | | | | 154,058 | | | | | 161,057 | | | | | (6,999) | | | | | (4) | | | | | | 155,231 | | | | | 158,440 | | | | | (3,209) | | | | | (2) | | | ||||||||
Travel Commerce Platform | | | $ | 578,886 | | | | $ | 541,641 | | | | $ | 37,245 | | | | | 7 | | | | | $ | 574,058 | | | | $ | 522,674 | | | | $ | 51,384 | | | | | 10 | | | |
| | Segments (in thousands) | | RevPas (in $) | | | Segments (in thousands) | | RevPas (in $) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Three Months Ended March 31, | | Change | | Three Months Ended March 31, | | Change | | | Three Months Ended June 30, | | Change | | Three Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2016 | | 2015 | | | | | | | % | | 2016 | | 2015 | | $ | | % | | | 2016 | | 2015 | | | | | | | % | | 2016 | | 2015 | | $ | | % | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Pacific | | | | 16,989 | | | | | 16,719 | | | | | 270 | | | | | 2 | | | | $ | 7.56 | | | | $ | 7.04 | | | | $ | 0.52 | | | | | 7 | | | | | | 17,009 | | | | | 16,042 | | | | | 967 | | | | | 6 | | | | $ | 7.67 | | | | $ | 7.19 | | | | $ | 0.48 | | | | | 7 | | | ||||||||||||||||
Europe | | | | 23,133 | | | | | 22,989 | | | | | 144 | | | | | 1 | | | | $ | 8.42 | | | | $ | 7.21 | | | | $ | 1.21 | | | | | 17 | | | | | | 20,561 | | | | | 20,080 | | | | | 481 | | | | | 2 | | | | $ | 8.89 | | | | $ | 7.47 | | | | $ | 1.42 | | | | | 19 | | | ||||||||||||||||
Latin America and Canada | | | | 4,550 | | | | | 4,271 | | | | | 279 | | | | | 7 | | | | $ | 6.16 | | | | $ | 5.56 | | | | $ | 0.60 | | | | | 11 | | | | | | 4,524 | | | | | 4,210 | | | | | 314 | | | | | 7 | | | | $ | 6.24 | | | | $ | 5.77 | | | | $ | 0.47 | | | | | 8 | | | ||||||||||||||||
Middle East and Africa | | | | 9,721 | | | | | 9,929 | | | | | (208) | | | | | (2) | | | | $ | 7.56 | | | | $ | 7.38 | | | | $ | 0.18 | | | | | 2 | | | | | | 9,912 | | | | | 9,921 | | | | | (9) | | | | | — | | | | $ | 7.80 | | | | $ | 7.51 | | | | $ | 0.29 | | | | | 4 | | | ||||||||||||||||
International | | | | 54,393 | | | | | 53,908 | | | | | 485 | | | | | 1 | | | | $ | 7.81 | | | | $ | 7.06 | | | | $ | 0.75 | | | | | 11 | | | | | | 52,006 | | | | | 50,253 | | | | | 1,753 | | | | | 3 | | | | $ | 8.05 | | | | $ | 7.25 | | | | $ | 0.80 | | | | | 11 | | | ||||||||||||||||
United States | | | | 35,580 | | | | | 40,612 | | | | | (5,032) | | | | | (12) | | | | $ | 4.33 | | | | $ | 3.97 | | | | $ | 0.36 | | | | | 9 | | | | | | 34,801 | | | | | 36,897 | | | | | (2,096) | | | | | (6) | | | | $ | 4.46 | | | | $ | 4.30 | | | | $ | 0.16 | | | | | 4 | | | ||||||||||||||||
Travel Commerce Platform | | | | 89,973 | | | | | 94,520 | | | | | (4,547) | | | | | (5) | | | | $ | 6.43 | | | | $ | 5.73 | | | | $ | 0.70 | | | | | 12 | | | | | | 86,807 | | | | | 87,150 | | | | | (343) | | | | | — | | | | $ | 6.61 | | | | $ | 6.00 | | | | $ | 0.61 | | | | | 10 | | | |
| | Three Months Ended March 31, | | Change | | | Three Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | % | | | 2016 | | 2015 | | $ | | % | | ||||||||||||||||||||||||||||||||
Commissions | | | $ | 282,042 | | | | $ | 270,069 | | | | $ | 11,973 | | | | | 4 | | | | | $ | 292,714 | | | | $ | 258,830 | | | | $ | 33,884 | | | | | 13 | | | ||||||||
Technology costs | | | | 80,635 | | | | | 79,162 | | | | | 1,473 | | | | | 2 | | | | | | 83,891 | | | | | 76,220 | | | | | 7,671 | | | | | 10 | | | ||||||||
Cost of revenue | | | $ | 362,677 | | | | $ | 349,231 | | | | $ | 13,446 | | | | | 4 | | | | | $ | 376,605 | | | | $ | 335,050 | | | | $ | 41,555 | | | | | 12 | | | |
| | Three Months Ended March 31, | | Change | | | Three Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | % | | | 2016 | | 2015 | | $ | | % | | ||||||||||||||||||||||||||||||||
Workforce | | | $ | 84,571 | | | | $ | 80,239 | | | | $ | 4,332 | | | | | 5 | | | | | $ | 88,536 | | | | $ | 71,655 | | | | $ | 16,881 | | | | | 24 | | | ||||||||
Non-workforce | | | | 24,449 | | | | | 23,529 | | | | | 920 | | | | | 4 | | | | | | 19,438 | | | | | 28,449 | | | | | (9,011) | | | | | (32) | | | ||||||||
Sub-total | | | | 109,020 | | | | | 103,768 | | | | | 5,252 | | | | | 5 | | | | | | 107,974 | | | | | 100,104 | | | | | 7,870 | | | | | 8 | | | ||||||||
Non-core corporate costs | | | | 5,457 | | | | | 24,352 | | | | | (18,895) | | | | | (78) | | | | | | 31,320 | | | | | (1,945) | | | | | 33,265 | | | | | * | | | ||||||||
SG&A | | | $ | 114,477 | | | | $ | 128,120 | | | | $ | (13,643) | | | | | (11) | | | | | $ | 139,294 | | | | $ | 98,159 | | | | $ | 41,135 | | | | | 42 | | | |
| | Three Months Ended March 31, | | Change | | | Three Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | % | | | 2016 | | 2015 | | $ | | % | | ||||||||||||||||||||||||||||||||
Depreciation on property and equipment | | | $ | 41,102 | | | | $ | 42,405 | | | | $ | (1,303) | | | | | (3) | | | | | $ | 38,530 | | | | $ | 38,705 | | | | $ | (175) | | | | | — | | | ||||||||
Amortization of acquired intangible assets | | | | 11,139 | | | | | 18,623 | | | | | (7,484) | | | | | (40) | | | | | | 13,716 | | | | | 19,142 | | | | | (5,426) | | | | | (28) | | | ||||||||
Total depreciation and amortization | | | $ | 52,241 | | | | $ | 61,028 | | | | $ | (8,787) | | | | | (14) | | | | | $ | 52,246 | | | | $ | 57,847 | | | | $ | (5,601) | | | | | (10) | | | |
| | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Net revenue | | | | $ | 1,215,168 | | | | | $ | 1,126,330 | | | | | $ | 88,838 | | | | | | 8 | | |
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 739,282 | | | | | | 684,281 | | | | | | 55,001 | | | | | | 8 | | |
Selling, general and administrative | | | | | 253,771 | | | | | | 226,279 | | | | | | 27,492 | | | | | | 12 | | |
Depreciation and amortization | | | | | 104,487 | | | | | | 118,875 | | | | | | (14,388) | | | | | | (12) | | |
Total costs and expenses | | | | | 1,097,540 | | | | | | 1,029,435 | | | | | | 68,105 | | | | | | 7 | | |
Operating income | | | | | 117,628 | | | | | | 96,895 | | | | | | 20,733 | | | | | | 21 | | |
Interest expense, net | | | | | (100,008) | | | | | | (78,140) | | | | | | (21,868) | | | | | | (28) | | |
Loss on early extinguishment of debt | | | | | (2,671) | | | | | | — | | | | | | (2,671) | | | | | | * | | |
Gain on sale of shares of Orbitz Worldwide | | | | | — | | | | | | 6,271 | | | | | | (6,271) | | | | | | (100) | | |
Income before income taxes and share of losses in equity method investment | | | | | 14,949 | | | | | | 25,026 | | | | | | (10,077) | | | | | | (40) | | |
Provision for income taxes | | | | | (12,197) | | | | | | (15,550) | | | | | | 3,353 | | | | | | 22 | | |
Share of losses in equity method investment | | | | | — | | | | | | (175) | | | | | | 175 | | | | | | 100 | | |
Net income | | | | $ | 2,752 | | | | | $ | 9,301 | | | | | $ | (6,549) | | | | | | (70) | | |
|
| | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Air | | | | $ | 869,745 | | | | | $ | 832,495 | | | | | $ | 37,250 | | | | | | 4 | | |
Beyond Air | | | | | 283,199 | | | | | | 231,820 | | | | | | 51,379 | | | | | | 22 | | |
Travel Commerce Platform | | | | | 1,152,944 | | | | | | 1,064,315 | | | | | | 88,629 | | | | | | 8 | | |
Technology Services | | | | | 62,224 | | | | | | 62,015 | | | | | | 209 | | | | | | — | | |
Net revenue | | | | $ | 1,215,168 | | | | | $ | 1,126,330 | | | | | $ | 88,838 | | | | | | 8 | | |
|
| | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||
| | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Travel Commerce Platform RevPas (in $) | | | | $ | 6.52 | | | | | $ | 5.86 | | | | | $ | 0.66 | | | | | | 11 | | |
Reported Segments (in thousands) | | | | | 176,780 | | | | | | 181,670 | | | | | | (4,890) | | | | | | (3) | | |
| | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Asia Pacific | | | | $ | 259,021 | | | | | $ | 233,170 | | | | | $ | 25,851 | | | | | | 11 | | |
Europe | | | | | 377,557 | | | | | | 315,640 | | | | | | 61,917 | | | | | | 20 | | |
Latin America and Canada | | | | | 56,281 | | | | | | 48,060 | | | | | | 8,221 | | | | | | 17 | | |
Middle East and Africa | | | | | 150,796 | | | | | | 147,948 | | | | | | 2,848 | | | | | | 2 | | |
International | | | | | 843,655 | | | | | | 744,818 | | | | | | 98,837 | | | | | | 13 | | |
United States | | | | | 309,289 | | | | | | 319,497 | | | | | | (10,208) | | | | | | (3) | | |
Travel Commerce Platform | | | | $ | 1,152,944 | | | | | $ | 1,064,315 | | | | | $ | 88,629 | | | | | | 8 | | |
|
| | | Segments (in thousands) | | | RevPas (in $) | | ||||||||||||||||||||||||||||||||||||||||||
| | | Six Months Ended June 30, | | | Change | | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||||||||||||||||||||
| | | 2016 | | | 2015 | | | | | | | | | % | | | 2016 | | | 2015 | | | $ | | | % | | |||||||||||||||||||||
Asia Pacific | | | | | 33,998 | | | | | | 32,761 | | | | | | 1,237 | | | | | | 4 | | | | | $ | 7.62 | | | | | $ | 7.12 | | | | | $ | 0.50 | | | | | | 7 | | |
Europe | | | | | 43,694 | | | | | | 43,069 | | | | | | 625 | | | | | | 1 | | | | | $ | 8.64 | | | | | $ | 7.33 | | | | | $ | 1.31 | | | | | | 18 | | |
Latin America and Canada | | | | | 9,074 | | | | | | 8,481 | | | | | | 593 | | | | | | 7 | | | | | $ | 6.20 | | | | | $ | 5.67 | | | | | $ | 0.53 | | | | | | 9 | | |
Middle East and Africa | | | | | 19,633 | | | | | | 19,850 | | | | | | (217) | | | | | | (1) | | | | | $ | 7.68 | | | | | $ | 7.45 | | | | | $ | 0.23 | | | | | | 3 | | |
International | | | | | 106,399 | | | | | | 104,161 | | | | | | 2,238 | | | | | | 2 | | | | | $ | 7.93 | | | | | $ | 7.15 | | | | | $ | 0.78 | | | | | | 11 | | |
United States | | | | | 70,381 | | | | | | 77,509 | | | | | | (7,128) | | | | | | (9) | | | | | $ | 4.39 | | | | | $ | 4.12 | | | | | $ | 0.27 | | | | | | 7 | | |
Travel Commerce Platform | | | | | 176,780 | | | | | | 181,670 | | | | | | (4,890) | | | | | | (3) | | | | | $ | 6.52 | | | | | $ | 5.86 | | | | | $ | 0.66 | | | | | | 11 | | |
|
| | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Commissions | | | | $ | 574,756 | | | | | $ | 528,899 | | | | | $ | 45,857 | | | | | | 9 | | |
Technology costs | | | | | 164,526 | | | | | | 155,382 | | | | | | 9,144 | | | | | | 6 | | |
Cost of revenue | | | | $ | 739,282 | | | | | $ | 684,281 | | | | | $ | 55,001 | | | | | | 8 | | |
|
| | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Workforce | | | | $ | 173,095 | | | | | $ | 151,894 | | | | | $ | 21,201 | | | | | | 14 | | |
Non-workforce | | | | | 43,899 | | | | | | 51,978 | | | | | | (8,079) | | | | | | (16) | | |
Sub-total | | | | | 216,994 | | | | | | 203,872 | | | | | | 13,122 | | | | | | 6 | | |
Non-core corporate costs | | | | | 36,777 | | | | | | 22,407 | | | | | | 14,370 | | | | | | 64 | | |
SG&A | | | | $ | 253,771 | | | | | $ | 226,279 | | | | | $ | 27,492 | | | | | | 12 | | |
|
| | | Six Months Ended June 30, | | | Change | | ||||||||||||||||||
(in $ thousands) | | | 2016 | | | 2015 | | | $ | | | % | | ||||||||||||
Depreciation on property and equipment | | | | $ | 79,632 | | | | | $ | 81,110 | | | | | $ | (1,478) | | | | | | (2) | | |
Amortization of acquired intangible assets | | | | | 24,855 | | | | | | 37,765 | | | | | | (12,910) | | | | | | (34) | | |
Total depreciation and amortization | | | | $ | 104,487 | | | | | $ | 118,875 | | | | | $ | (14,388) | | | | | | (12) | | |
|
(in $ thousands) | | March 31, 2016 | | | June 30, 2016 | | ||||||||
Cash and cash equivalents | | | $ | 127,993 | | | | | $ | 126,937 | | | ||
Revolving credit facility availability | | | | 101,314 | | | | | | 101,194 | | |
| | Asset (Liability) | | | | Asset (Liability) | | | ||||||||||||||||||||||||||||||
(in $ thousands) | | March 31, 2016 | | December 31, 2015 | | Change | | |||||||||||||||||||||||||||||||
Accounts receivable, net | | | $ | 253,728 | | | | $ | 205,686 | | | | $ | 48,042 | | | ||||||||||||||||||||||
(in $ thousands) | | June 30, 2016 | | December 31, 2015 | | Change | | |||||||||||||||||||||||||||||||
Accounts Receivable, net | | | $ | 241,526 | | | | $ | 205,686 | | | | $ | 35,840 | | | ||||||||||||||||||||||
Accrued commissions and incentives | | | | (276,979) | | | | | (241,358) | | | | | (35,621) | | | | | | (273,927) | | | | | (241,358) | | | | | (32,569) | | | ||||||
Deferred revenue and prepaid incentives, net | | | | (18,172) | | | | | (9,340) | | | | | (8,832) | | | | | | (20,480) | | | | | (9,340) | | | | | (11,140) | | | ||||||
Cash and cash equivalents | | | | 127,993 | | | | | 154,841 | | | | | (26,848) | | | | | | 126,937 | | | | | 154,841 | | | | | (27,904) | | | ||||||
Accounts payable and employee related | | | | (139,622) | | | | | (153,349) | | | | | 13,727 | | | | | | (131,833) | | | | | (153,349) | | | | | 21,516 | | | ||||||
Accrued interest | | | | (17,221) | | | | | (18,800) | | | | | 1,579 | | | | | | (2,997) | | | | | (18,800) | | | | | 15,803 | | | ||||||
Current portion of long-term debt | | | | (62,484) | | | | | (74,163) | | | | | 11,679 | | | | | | (64,086) | | | | | (74,163) | | | | | 10,077 | | | ||||||
Taxes | | | | 14,585 | | | | | 16,850 | | | | | (2,265) | | | | | | 19,613 | | | | | 16,850 | | | | | 2,763 | | | ||||||
Other assets (liabilities), net | | | | 33,816 | | | | | 5,684 | | | | | 28,132 | | | | | | 12,320 | | | | | 5,684 | | | | | 6,636 | | | ||||||
Working Capital | | | $ | (84,356) | | | | $ | (113,949) | | | | $ | 29,593 | | | | | $ | (92,927) | | | | $ | (113,949) | | | | $ | 21,022 | | | ||||||
Consolidated Balance Sheets: | | | ||||||||||||||||||||||||||||||||||||
Consolidated Condensed Balance Sheets: | | | ||||||||||||||||||||||||||||||||||||
Total current assets | | | $ | 528,392 | | | | $ | 465,141 | | | | $ | 63,251 | | | | | $ | 490,474 | | | | $ | 465,141 | | | | $ | 25,333 | | | ||||||
Total current liabilities | | | | (612,748) | | | | | (579,090) | | | | | (33,658) | | | | | | (583,401) | | | | | (579,090) | | | | | (4,311) | | | ||||||
Working Capital | | | $ | (84,356) | | | | $ | (113,949) | | | | $ | 29,593 | | | | | $ | (92,927) | | | | $ | (113,949) | | | | $ | 21,022 | | | |
| | March 31, 2016 | | December 31, 2015 | | Change | | | June 30, 2016 | | December 31, 2015 | | Change | | ||||||||||||||||||||||||
Accounts receivable, net (in $ thousands) | | | $ | 253,728 | | | | $ | 205,686 | | | | $ | 48,042 | | | | | $ | 241,526 | | | | $ | 205,686 | | | | $ | 35,840 | | | ||||||
Accounts receivable, net – Days Sales Outstanding (“DSO”) | | | | 38 | | | | | 38 | | | | | — | | | | | | 36 | | | | | 38 | | | | | (2) | | |
| | Three Months Ended March 31, | | Change | | | Six Months Ended June 30, | | Change | | ||||||||||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | $ | | | 2016 | | 2015 | | $ | | ||||||||||||||||||||||||
Cash provided by (used in): | | | | | ||||||||||||||||||||||||||||||||||
Operating activities | | | $ | 26,204 | | | | $ | 11,019 | | | | $ | 15,185 | | | | | $ | 102,932 | | | | $ | 92,166 | | | | $ | 10,766 | | | ||||||
Investing activities | | | | (22,521) | | | | | (20,813) | | | | | (1,708) | | | | | | (59,994) | | | | | (46,223) | | | | | (13,771) | | | ||||||
Financing activities | | | | (31,039) | | | | | (20,821) | | | | | (10,218) | | | | | | (70,597) | | | | | (56,641) | | | | | (13,956) | | | ||||||
Effect of exchange rate changes | | | | 508 | | | | | (973) | | | | | 1,481 | | | | | | (245) | | | | | (1,252) | | | | | 1,007 | | | ||||||
Net decrease in cash and cash equivalents | | | $ | (26,848) | | | | $ | (31,588) | | | | $ | 4,740 | | | | | $ | (27,904) | | | | $ | (11,950) | | | | $ | (15,954) | | | |
| | Three Months Ended March 31, | | | Six Months Ended, June 30, | | ||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | |||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | |||||||||||||||||||||
Adjusted EBITDA | | | $ | 154,140 | | | | $ | 137,458 | | | | | $ | 293,153 | | | | $ | 274,444 | | | ||||
Interest payments | | | | (37,480) | | | | | (37,901) | | | | | | (86,854) | | | | | (72,732) | | | ||||
Tax payments | | | | (4,549) | | | | | (7,263) | | | | | | (8,573) | | | | | (13,272) | | | ||||
Customer loyalty payments | | | | (25,307) | | | | | (23,400) | | | | | | (43,922) | | | | | (42,211) | | | ||||
Changes in working capital | | | | (49,048) | | | | | (50,588) | | | | | | (30,525) | | | | | (53,392) | | | ||||
Pensions liability contribution | | | | (1,118) | | | | | (672) | | | | | | (1,837) | | | | | (1,550) | | | ||||
Changes in other assets and liabilities | | | | (7,108) | | | | | (3,512) | | | | | | (5,642) | | | | | 9,957 | | | ||||
Other adjusting items(1) | | | | (3,326) | | | | | (3,103) | | | | | | (12,868) | | | | | (9,078) | | | ||||
Net cash provided by operating activities | | | | 26,204 | | | | | 11,019 | | | | | | 102,932 | | | | | 92,166 | | | ||||
Add: other adjusting items(1) | | | | 3,326 | | | | | 3,103 | | | | | | 12,868 | | | | | 9,078 | | | ||||
Less: capital expenditures on property and equipment additions | | | | (22,521) | | | | | (27,084) | | | | | | (44,985) | | | | | (52,494) | | | ||||
Less: repayment of capital lease obligations and other indebtedness | | | | (12,079) | | | | | (8,056) | | | | | | (23,542) | | | | | (16,067) | | | ||||
Adjusted Free Cash Flow | | | $ | (5,070) | | | | $ | (21,018) | | | | | $ | 47,273 | | | | $ | 32,683 | | | |
| | Three Months Ended March 31, | | | Six Months Ended June 30, | | ||||||||||||||||||||
(in $ thousands) | | 2016 | | 2015 | | | 2016 | | 2015 | | ||||||||||||||||
Cash additions to software developed for internal use | | | $ | 18,558 | | | | $ | 17,742 | | | | | $ | 36,452 | | | | $ | 37,452 | | | ||||
Cash additions to computer equipment | | | | 3,963 | | | | | 9,342 | | | | | | 8,533 | | | | | 15,042 | | | ||||
Total | | | $ | 22,521 | | | | $ | 27,084 | | | | | $ | 44,985 | | | | $ | 52,494 | | | |
(in $ thousands) | | Interest rate | | Maturity | | March 31, 2016 | | December 31, 2015 | | | Interest rate | | Maturity | | June 30, 2016 | | December 31, 2015 | | ||||||||||||||||||||
Senior Secured Credit Agreement | | | | | | | ||||||||||||||||||||||||||||||||
Term loans | | | | | | | ||||||||||||||||||||||||||||||||
Dollar denominated | | L+4.75% | | September 2021 | | | $ | 2,296,034 | | | | $ | 2,303,315 | | | | L+4.00% | | September 2021 | | | $ | 2,292,472 | | | | $ | 2,303,315 | | | ||||||||
Revolver borrowings | | | | | | | ||||||||||||||||||||||||||||||||
Dollar denominated | | L+5.00% | | September 2019 | | | | — | | | | | — | | | | L+5.00% | | September 2019 | | | | — | | | | | — | | | ||||||||
Capital leases and other indebtedness | | | | | | | | 128,655 | | | | | 133,883 | | | | | | | | | | 118,310 | | | | | 133,883 | | | ||||||||
Total debt | | | | | | | $ | 2,424,689 | | | | $ | 2,437,198 | | | | | | | | | | 2,410,782 | | | | | 2,437,198 | | | ||||||||
Less: cash and cash equivalents | | | | | | | | (127,993) | | | | | (154,841) | | | | | | | | | | (126,937) | | | | | (154,841) | | | ||||||||
Net Debt(3) | | | | | | | $ | 2,296,696 | | | | $ | 2,282,357 | | | | | | | | | $ | 2,283,845 | | | | $ | 2,282,357 | | | |
| | | | TRAVELPORT WORLDWIDE LIMITED | |
| Date: | | | By: /s/ Bernard Bot Bernard Bot Executive Vice President and Chief Financial Officer | |
| Date: | | | By: /s/ Antonios Basoukeas Antonios Basoukeas Chief Accounting Officer | |
| Exhibit No. | | | Description | |
| 3.1 | | | Amended and Restated Memorandum of Association of Travelport Worldwide Limited (Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Travelport Worldwide Limited on September 30, 2014). | |
| 3.2 | | | Amended and Restated Bye-laws of Travelport Worldwide Limited (Incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed by Travelport Worldwide Limited on September 30, 2014). | |
| 10.1 | | | | |
| 10.2 | | | Amendment No. 2 to Credit Agreement, dated as of June 23, 2016, among Travelport Finance (Luxembourg) S.a.r.l., as borrower, Travelport Limited, the Term B Lenders and Deutsche Bank AG New York Branch (Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of | |
| 10.3 | | | Consulting Agreement between Travelport Worldwide Limited and Philip Emery, dated May 5, 2016. | |
| 10.4 | | | Form of Director Award | |
| 31.1 | | | Certification of Chief Executive Officer Pursuant to Rules 13(a)-14(a) and 15(d)-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2 | | | Certification of Chief Financial Officer Pursuant to Rules 13(a)-14(a) and 15(d)-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32 | | | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.INS | | | XBRL Instance Document | |
| 101.SCH | | | XBRL Taxonomy Extension Schema Document | |
| 101.CAL | | | XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.LAB | | | XBRL Taxonomy Extension Labels Linkbase Document | |
| 101.PRE | | | XBRL Taxonomy Extension Presentation Linkbase Document | |
| 101.DEF | | | XBRL Taxonomy Extension Definition Linkbase Document | |