American Express Global Business Travel, which is operated by
Global Business Travel Group, Inc. (NYSE: GBTG) (“Amex GBT” or the
“Company”), a leading B2B software and services company for travel,
expense, and meetings & events, today announced financial
results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
Delivered Strong Financial Results
- Revenue grew 6% year over year to $625 million.
- Adjusted EBITDA grew 20% year over year to $127 million.
- Strong Free Cash Flow generation of $49 million, representing
growth of 148% year over year.
Controlled Costs & Drove Operating Leverage
- 2% Adjusted Operating Expense growth versus 6% revenue
growth.
- Operating leverage drove Adjusted EBITDA margin expansion of
240bps year over year.
Raised Free Cash Flow Guidance
- Raised full-year 2024 Free Cash Flow Guidance to >$130
million (up from >$100 million).
- Reiterated full-year 2024 revenue and Adjusted EBITDA
guidance.
Lowered Interest Costs and Extended Debt Maturities
- Lowered leverage ratio to 2.0x from 2.2x in the first quarter
and 3.5x a year ago1.
- July refinancing significantly lowers interest costs, extends
maturities on all debt until 2031 and increases liquidity.
Continued Share Gains on a Strong Foundation
- LTM Total New Wins Value of $3.3 billion, including $2.0
billion from SME.
- 97% LTM customer retention rate.
Paul Abbott, Amex GBT’s Chief Executive Officer, stated: “In the
second quarter, we delivered strong Adjusted EBITDA growth,
significant margin expansion and accelerated Free Cash Flow, and
with our recent debt refinancing, we significantly lowered interest
costs. We have a solid foundation with increasingly strong customer
retention, and we continue to gain share while controlling costs.
This puts us well on track to deliver against our full-year revenue
and Adjusted EBITDA guidance and raise our full-year Free Cash Flow
guidance."
Second Quarter 2024 Financial Summary
(in millions, except percentages;
unaudited)
Three Months Ended
YOY
June 30,
2024
2023
Total Transaction Value (TTV)
$
7,724
$
7,349
5%
Transaction Growth
4%
9%
Revenue
$
625
$
592
6%
Travel Revenue
$
506
$
479
6%
Product and Professional Services
Revenue
$
119
$
113
5%
Total operating expenses
$
583
$
590
(1)%
Adjusted Operating Expenses
$
498
$
486
2%
Net income (loss)
$
27
$
(55)
$
82
Net income (loss) margin
4%
(9)%
1370bps
EBITDA
$
79
$
27
188%
Adjusted EBITDA
$
127
$
106
20%
Adjusted EBITDA Margin
20%
18%
240bps
Net cash from operating activities
$
73
$
46
57%
Free Cash Flow
$
49
$
19
148%
Net Debt
$
850
$
1,024
Net Debt / LTM Adjusted EBITDA
2.0x
3.5x
Second Quarter 2024 Financial Highlights (Changes
compared to prior year period unless otherwise noted)
Revenue of $625 million increased $33 million, or 6%. Within
this, Travel Revenue increased $27 million, or 6%, primarily due to
4% Transaction Growth and 5% TTV growth. Product and Professional
Services Revenue increased $6 million, or 5%, primarily due to
increased management fees and increased consulting and other
professional services revenues. Revenue Yield of 8.1% was flat year
over year.
Total operating expenses of $583 million decreased $7 million,
or 1%. Continued investments in technology and content and
increased cost of revenue to support Transaction Growth were offset
by lower general & administrative and sales & marketing
costs due to cost savings initiatives, including productivity
improvements driven by artificial intelligence initiatives, in
addition to decreased restructuring charges.
Adjusted Operating Expenses of $498 million increased $12
million, or 2%.
Net income was $27 million, an improvement of $82 million versus
net loss of $55 million in the same period in 2023, primarily due
to improvement in operating leverage from higher revenue, favorable
fair value movements on earnout derivative liabilities, lower
interest expense and benefit from income taxes.
Adjusted EBITDA of $127 million increased $21 million, or 20%.
Revenue growth and operating leverage resulted in Adjusted EBITDA
margin expansion of 240bps to 20%.
Net cash from operating activities totaled $73 million, an
improvement of $27 million, or 57%, due to favorable net change in
working capital, including benefit from the Egencia working capital
optimization actions.
Free Cash Flow totaled $49 million, an improvement of $30
million, or 148%, due to the increase in net cash from operating
activities and decreased use of cash for the purchase of property
and equipment.
Net Debt: As of June 30, 2024, total debt, net of unamortized
debt discount and debt issuance cost was $1,365 million, compared
to $1,362 million as of December 31, 2023. Net Debt was $850
million as of June 30, 2024, compared to $886 million as of
December 31, 2023. Leverage ratio was 2.0x as of June 30, 2024,
down from 2.3x as of December 31, 2023. The cash balance was $515
million as of June 30, 2024, compared to $476 million as of
December 31, 2023.
Raising Full-Year 2024 Free Cash Flow Guidance
Karen Williams, Amex GBT's Chief Financial Officer, stated: "In
the second quarter, we continued to deliver strong Adjusted EBITDA
growth with margin expansion and accelerated cash flow generation,
all while investing to drive long-term, sustained growth. Our
recent debt refinancing further strengthened our financial
position, lowered interest costs, extending debt maturities to 2031
and increased liquidity with an upsized revolver. We remain
confident that our focus on productivity and margin expansion will
drive full-year Adjusted EBITDA growth between 18% and 32%, and
expect Free Cash Flow generation in excess of $130 million in
2024."
The guidance below does not incorporate the impact of the
previously announced CWT acquisition, which is expected to close in
the first quarter of 2025.
Full-Year 2024
Guidance
Year-over-Year Growth
Revenue
$2.43B – $2.50B
+ 6% – 9%
Adjusted EBITDA
$450M – $500M
+ 18% – 32%
Adjusted EBITDA Margin
18% – 20%
+ ~150bps – 350bps
Free Cash Flow
>$130M (+$30M vs. prior
guidance for>$100M)
Please refer to the section below titled "Reconciliation of
Full-Year 2024 Adjusted EBITDA and Free Cash Flow Guidance" for a
description of certain assumptions and risks associated with this
guidance and reconciliation to GAAP.
Webcast Information
Amex GBT will host its second quarter 2024 investor conference
call today at 9:00 a.m. E.T. The live webcast and accompanying
slide presentation can be accessed on the Amex GBT Investor
Relations website at investors.amexglobalbusinesstravel.com. A
replay of the event will be available on the website for at least
90 days following the event.
Glossary of Terms
See the “Glossary of Terms” for the definitions of certain terms
used within this press release.
Non-GAAP Financial Measures
The Company refers to certain financial measures that are not
recognized under GAAP in this press release, including EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating
Expenses, Free Cash Flow and Net Debt. See “Non-GAAP Financial
Measures” below for an explanation of these non-GAAP financial
measures and “Tabular Reconciliations for Non-GAAP Financial
Measures” below for reconciliations of the non-GAAP financial
measures to the comparable GAAP measures.
About American Express Global Business Travel
American Express Global Business Travel (Amex GBT) is the
world’s leading B2B travel platform, providing software and
services to manage travel, expenses, and meetings & events for
companies of all sizes. We have built the most valuable marketplace
in B2B travel to deliver unrivalled choice, value and experiences.
With travel professionals and business partners in more than 140
countries, our solutions deliver savings, flexibility, and service
from a brand you can trust – Amex GBT.
Visit amexglobalbusinesstravel.com for more information about
Amex GBT. Follow @amexgbt on X (formerly known as Twitter),
LinkedIn and Instagram.
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three months ended June
30,
(in $ millions, except share and per
share data)
2024
2023
Revenue
$
625
$
592
Costs and expenses:
Cost of revenue (excluding depreciation
and amortization shown separately below)
247
243
Sales and marketing
99
102
Technology and content
112
103
General and administrative
80
86
Restructuring and other exit (reversals)
charges
(3
)
7
Depreciation and amortization
48
49
Total operating expenses
583
590
Operating income
42
2
Interest income
2
—
Interest expense
(32
)
(35
)
Fair value movement on earnout derivative
liabilities
(10
)
(19
)
Other loss
(1
)
(5
)
Income (loss) before income taxes
1
(57
)
Benefit from income taxes
26
2
Net income (loss)
27
(55
)
Less: net income (loss) attributable to
non-controlling interests in subsidiaries
1
(41
)
Net income (loss) attributable to the
Company’s Class A common stockholders
$
26
$
(14
)
Basic income (loss) per share attributable
to the Company’s Class A common stockholders
$
0.06
$
(0.23
)
Weighted average number of shares
outstanding - Basic
464,602,244
61,852,280
Diluted income (loss) per share
attributable to the Company’s Class A common stockholders
$
0.06
$
(0.23
)
Weighted average number of shares
outstanding - Diluted
470,655,337
61,852,280
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED BALANCE
SHEETS
(in $ millions, except share and per
share data)
June 30, 2024
December 31,
2023
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
515
$
476
Accounts receivable (net of allowance for
credit losses of $13 and $12 as of June 30, 2024 and December 31,
2023, respectively)
712
726
Due from affiliates
50
42
Prepaid expenses and other current
assets
171
116
Total current assets
1,448
1,360
Property and equipment, net
231
232
Equity method investments
13
14
Goodwill
1,207
1,212
Other intangible assets, net
505
552
Operating lease right-of-use assets
49
50
Deferred tax assets
268
281
Other non-current assets
61
50
Total assets
$
3,782
$
3,751
Liabilities and shareholders’
equity
Current liabilities:
Accounts payable
$
333
$
302
Due to affiliates
46
39
Accrued expenses and other current
liabilities
479
466
Current portion of operating lease
liabilities
14
17
Current portion of long-term debt
7
7
Total current liabilities
879
831
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,358
1,355
Deferred tax liabilities
5
5
Pension liabilities
168
183
Long-term operating lease liabilities
52
55
Earnout derivative liabilities
69
77
Other non-current liabilities
33
33
Total liabilities
2,564
2,539
Commitments and Contingencies
Shareholders’ equity:
Class A common stock (par value $0.0001;
3,000,000,000 shares authorized; 472,863,167 shares and 467,092,817
shares issued and outstanding as of June 30, 2024 and December 31,
2023, respectively)
—
—
Additional paid-in capital
2,772
2,748
Accumulated deficit
(1,430
)
(1,437
)
Accumulated other comprehensive loss
(128
)
(103
)
Total equity of the Company’s
shareholders
1,214
1,208
Equity attributable to non-controlling
interest in subsidiaries
4
4
Total shareholders’ equity
1,218
1,212
Total liabilities and shareholders’
equity
$
3,782
$
3,751
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Six months ended June
30,
(in $ millions)
2024
2023
Operating activities:
Net income (loss)
$
8
$
(82
)
Adjustments to reconcile net income (loss)
to net cash from (used in) operating activities:
Depreciation and amortization
95
95
Deferred tax charge (benefit)
12
(13
)
Equity-based compensation
38
41
Allowance for credit losses
4
7
Fair value movement on earnout derivative
liabilities
(8
)
16
Other
(5
)
5
Changes in working capital:
Accounts receivable
(10
)
(193
)
Prepaid expenses and other current
assets
(66
)
(36
)
Due from affiliates
(10
)
—
Due to affiliates
7
8
Accounts payable, accrued expenses and
other current liabilities
71
135
Defined benefit pension funding
(14
)
(14
)
Net cash from (used in) operating
activities
122
(31
)
Investing activities:
Purchase of property and equipment
(49
)
(59
)
Other
5
(5
)
Net cash used in investing activities
(44
)
(64
)
Financing activities:
Proceeds from senior secured term
loans
—
131
Repayment of senior secured term loans
(1
)
(1
)
Contributions for ESPP and proceeds from
exercise of stock options
5
2
Payment of taxes withheld on vesting of
equity awards
(19
)
(8
)
Repayment of other debt and finance lease
obligations
(1
)
(2
)
Payment of debt financing costs
—
(2
)
Other
(1
)
3
Net cash (used in) from financing
activities
(17
)
123
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(9
)
4
Net increase in cash, cash equivalents and
restricted cash
52
32
Cash, cash equivalents and restricted
cash, beginning of period
489
316
Cash, cash equivalents and restricted
cash, end of period
$
541
$
348
Supplemental cash flow information:
Cash paid for income taxes, net
$
1
$
—
Cash paid for interest (net of interest
received)
$
65
$
70
Non-cash additions for operating lease
right-of-use assets
$
7
$
5
Non-cash additions for finance lease
$
2
$
3
Issuance of shares to settle liability
$
—
$
4
Glossary of Terms
B2B refers to business-to-business.
Customer retention rate is calculated based on Total
Transaction Value (TTV).
CWT refers to CWT Holdings, LLC.
LTM refers to the last twelve months ended June 30,
2024.
Revenue Yield is calculated as total revenue divided by
Total Transaction Value (TTV) for the same period.
SME refers to clients Amex GBT considers
small-to-medium-sized enterprises, which Amex GBT generally defines
as having an expected annual TTV of less than $30 million. This
criterion can vary by country and customer needs and Amex GBT does
not have products or services that are offered solely to one size
customer or another.
Total New Wins Value is calculated using expected annual
average Total Transaction Value (TTV) over the contract term from
all new client wins over the last twelve months.
Total Transaction Value or TTV refers to the sum of the
total price paid by travelers for air, hotel, rail, car rental and
cruise bookings, including taxes and other charges applied by
suppliers at point of sale, less cancellations and refunds.
Transaction Growth represents year-over-year increase or
decrease as a percentage of the total transactions, including air,
hotel, car rental, rail or other travel-related transactions,
recorded at the time of booking, and is calculated on a net basis
to exclude cancellations, refunds and exchanges. To calculate
year-over-year growth or decline, we compare the total number of
transactions in the comparative previous period/ year to the total
number of transactions in the current period/year in percentage
terms. For the six months ended June 30, 2024, we have presented
Transaction Growth on a net basis to exclude cancellations, refunds
and exchanges as management believes this better aligns Transaction
Growth with the way we measure TTV and earn revenue. Prior period
Transaction Growth percentages have been recalculated and
represented to conform to current period presentation.
Non-GAAP Financial Measures
We report our financial results in accordance with GAAP. Our
non-GAAP financial measures are provided in addition, and should
not be considered as an alternative, to other performance or
liquidity measures derived in accordance with GAAP. Non-GAAP
financial measures have limitations as analytical tools, and you
should not consider them either in isolation or as a substitute for
analyzing our results as reported under GAAP. In addition, because
not all companies use identical calculations, the presentations of
our non-GAAP financial measures may not be comparable to other
similarly titled measures of other companies and can differ
significantly from company to company.
Management believes that these non-GAAP financial measures
provide users of our financial information with useful supplemental
information that enables a better comparison of our performance or
liquidity across periods. In addition, we use certain of these
non-GAAP financial measures as performance measures as they are
important metrics used by management to evaluate and understand the
underlying operations and business trends, forecast future results
and determine future capital investment allocations. We also use
certain of our non-GAAP financial measures as indicators of our
ability to generate cash to meet our liquidity needs and to assist
our management in evaluating our financial flexibility, capital
structure and leverage. These non-GAAP financial measures
supplement comparable GAAP measures in the evaluation of the
effectiveness of our business strategies, to make budgeting
decisions, and/or to compare our performance and liquidity against
that of other peer companies using similar measures.
We define EBITDA as net income (loss) before interest income,
interest expense, gain (loss) on early extinguishment of debt,
benefit from (provision for) income taxes and depreciation and
amortization.
We define Adjusted EBITDA as net income (loss) before interest
income, interest expense, gain (loss) on early extinguishment of
debt, benefit from (provision for) income taxes and depreciation
and amortization and as further adjusted to exclude costs that
management believes are non-core to the underlying business of the
Company, consisting of restructuring, exit and related charges,
integration costs, costs related to mergers and acquisitions,
non-cash equity-based compensation and related employer taxes,
long-term incentive plan costs, certain corporate costs, fair value
movements on earnout derivative liabilities, foreign currency gains
(losses), non-service components of net periodic pension benefit
(costs) and gains (losses) on disposal of businesses.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by
revenue.
We define Adjusted Operating Expenses as total operating
expenses excluding depreciation and amortization and costs that
management believes are non-core to the underlying business of the
Company, consisting of restructuring, exit and related charges,
integration costs, costs related to mergers and acquisitions,
non-cash equity-based compensation and related employer taxes,
long-term incentive plan costs and certain corporate costs.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted
Operating Expenses are supplemental non-GAAP financial measures of
operating performance that do not represent and should not be
considered as alternatives to net income (loss) or total operating
expenses, as determined under GAAP. In addition, these measures may
not be comparable to similarly titled measures used by other
companies.
These non-GAAP measures have limitations as analytical tools,
and these measures should not be considered in isolation or as a
substitute for analysis of the Company’s results or expenses as
reported under GAAP. Some of these limitations are that these
measures do not reflect:
- changes in, or cash requirements for, our working capital needs
or contractual commitments;
- our interest expense, or the cash requirements to service
interest or principal payments on our indebtedness;
- our tax expense, or the cash requirements to pay our
taxes;
- recurring, non-cash expenses of depreciation and amortization
of property and equipment and definite-lived intangible assets and,
although these are non-cash expenses, the assets being depreciated
and amortized may have to be replaced in the future;
- the non-cash expense of stock-based compensation, which has
been, and will continue to be for the foreseeable future, an
important part of how we attract and retain our employees and a
significant recurring expense in our business;
- restructuring, mergers and acquisition and integration costs,
all of which are intrinsic of our acquisitive business model;
and
- impact on earnings or changes resulting from matters that are
non-core to our underlying business, as we believe they are not
indicative of our underlying operations.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted
Operating Expenses should not be considered as a measure of
liquidity or as a measure determining discretionary cash available
to us to reinvest in the growth of our business or as measures of
cash that will be available to us to meet our obligations.
We believe that the adjustments applied in presenting EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating
Expenses are appropriate to provide additional information to
investors about certain material non-cash and other items that
management believes are non-core to our underlying business.
We use these measures as performance measures as they are
important metrics used by management to evaluate and understand the
underlying operations and business trends, forecast future results
and determine future capital investment allocations. These non-GAAP
measures supplement comparable GAAP measures in the evaluation of
the effectiveness of our business strategies, to make budgeting
decisions, and to compare our performance against that of other
peer companies using similar measures. We also believe that EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Operating
Expenses are helpful supplemental measures to assist potential
investors and analysts in evaluating our operating results across
reporting periods on a consistent basis.
We define Free Cash Flow as net cash from (used in) operating
activities, less cash used for additions to property and
equipment.
We believe Free Cash Flow is an important measure of our
liquidity. This measure is a useful indicator of our ability to
generate cash to meet our liquidity demands. We use this measure to
conduct and evaluate our operating liquidity. We believe it
typically presents an alternate measure of cash flow since
purchases of property and equipment are a necessary component of
our ongoing operations and it provides useful information regarding
how cash provided by operating activities compares to the property
and equipment investments required to maintain and grow our
platform. We believe Free Cash Flow provides investors with an
understanding of how assets are performing and measures
management’s effectiveness in managing cash.
Free Cash Flow is a non-GAAP measure and may not be comparable
to similarly named measures used by other companies. This measure
has limitations in that it does not represent the total increase or
decrease in the cash balance for the period, nor does it represent
cash flow for discretionary expenditures. This measure should not
be considered as a measure of liquidity or cash flow from
operations as determined under GAAP. This measure is not a
measurement of our financial performance under GAAP and should not
be considered in isolation or as an alternative to net income
(loss) or any other performance measures derived in accordance with
GAAP or as an alternative to cash flow from operating activities as
a measure of liquidity.
We define Net Debt as total debt outstanding consisting of the
current and non-current portion of long-term debt, net of
unamortized debt discount and unamortized debt issuance costs,
minus cash and cash equivalents. Net Debt is a non-GAAP measure and
may not be comparable to similarly named measures used by other
companies. This measure is not a measurement of our indebtedness as
determined under GAAP and should not be considered in isolation or
as an alternative to assess our total debt or any other measures
derived in accordance with GAAP or as an alternative to total debt.
Management uses Net Debt to review our overall liquidity, financial
flexibility, capital structure and leverage. Further, we believe
that certain debt rating agencies, creditors and credit analysts
monitor our Net Debt as part of their assessment of our
business.
Tabular Reconciliations for Non-GAAP Measures
Reconciliation of net income (loss) to EBITDA and Adjusted
EBITDA:
Three months ended June
30,
(in $ millions)
2024
2023
Net income (loss)
$
27
$
(55
)
Interest income
(2
)
—
Interest expense
32
35
(Benefit from) provision for income
taxes
(26
)
(2
)
Depreciation and amortization
48
49
EBITDA
79
27
Restructuring, exit and related
(reversals) charges (a)
(3
)
13
Integration costs (b)
7
10
Mergers and acquisitions (c)
6
—
Equity-based compensation and related
employer taxes (d)
20
22
Fair value movement on earnout derivative
liabilities (e)
10
19
Other adjustments, net (f)
8
15
Adjusted EBITDA
$
127
$
106
Net income (loss) margin
4
%
(9
)%
Adjusted EBITDA Margin
20
%
18
%
Reconciliation of total operating expenses to Adjusted Operating
Expenses:
Three months ended June
30,
(in $ millions)
2024
2023
Total operating expenses
$
583
$
590
Adjustments:
Depreciation and amortization
(48
)
(49
)
Restructuring, exit and related reversals
(charges) (a)
3
(13
)
Integration costs (b)
(7
)
(10
)
Mergers and acquisitions (c)
(6
)
—
Equity-based compensation and related
employer taxes (d)
(20
)
(22
)
Other adjustments, net (f)
(7
)
(10
)
Adjusted Operating Expenses
$
498
$
486
a)
Includes (i) employee severance
(reversals)/costs of $(3) million and $5 million for the three
months ended June 30, 2024 and 2023, respectively, (ii) accelerated
amortization of operating lease ROU assets of $6 million for the
three months ended June 30, 2023 and (iii) contract costs related
to facility abandonment of $2 million for the three months ended
June 30, 2023.
b)
Represents expenses related to the
integration of businesses acquired.
c)
Represents expenses related to business
acquisitions, including potential business acquisitions, and
includes pre-acquisition due diligence and related activities
costs.
d)
Represents non-cash equity-based
compensation expense and employer taxes paid related to equity
incentive awards to certain employees.
e)
Represents fair value movements on earnout
derivative liabilities during the periods.
f)
Adjusted Operating Expenses excludes (i)
long-term incentive plan expense of $3 million and $5 million for
the three months ended June 30, 2024 and 2023, respectively, and
(ii) legal and professional services costs of $4 million and $5
million for the three months ended June 30, 2024 and 2023,
respectively. Adjusted EBITDA additionally excludes (i) unrealized
foreign exchange (gains) loss of $(1) million and $4 million for
the three months ended June 30, 2024 and 2023, respectively, and
(ii) non-service component of our net periodic pension cost related
to our defined benefit pension plans of $2 million and $1 million
for the three months ended June 30, 2024 and 2023,
respectively.
Reconciliation of net cash from operating activities to Free
Cash Flow:
Three months ended June
30,
($ in millions)
2024
2023
Net cash from operating
activities
$
73
$
46
Less: Purchase of property and
equipment
(24
)
(27
)
Free Cash Flow
$
49
$
19
Reconciliation of Net Debt:
As of
(in $ millions)
June 30, 2024
December 31, 2023
June 30, 2023
Current portion of long-term debt
$
7
$
7
$
6
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,358
1,355
1,353
Total debt, net of unamortized debt
discount and debt issuance costs
1,365
1,362
1,359
Less: Cash and cash equivalents
(515
)
(476
)
(335
)
Net Debt
$
850
$
886
$
1,024
LTM Adjusted EBITDA
$
425
$
380
$
289
Net Debt / LTM Adjusted EBITDA
2.0x
2.3x
3.5x
Reconciliation of Full-Year 2024 Adjusted EBITDA and Free
Cash Flow Guidance
The Company’s full-year 2024 guidance considers various material
assumptions. Because the guidance is forward-looking and reflects
numerous estimates and assumptions with respect to future industry
performance under various scenarios as well as assumptions for
competition, general business, economic, market and financial
conditions and matters specific to the business of Amex GBT, all of
which are difficult to predict and many of which are beyond the
control of Amex GBT, actual results may differ materially from the
guidance due to a number of factors, including the ultimate
inaccuracy of any of the assumptions described above and the risks
and other factors discussed in the section entitled
“Forward-Looking Statements” below and the risk factors in the
Company’s SEC filings.
The guidance below does not incorporate the impact of the CWT
acquisition, which is expected to close in the first quarter of
2025.
Adjusted EBITDA guidance for the year ending December 31, 2024
consists of expected net loss for the year ending December 31,
2024, adjusted for: (i) interest expense of approximately $120
million; (ii) loss on extinguishment of debt of approximately $40
million; (iii) income taxes of approximately $60-70 million; (iv)
depreciation and amortization of property and equipment of
approximately $180-185 million; (v) restructuring costs of
approximately $25-30 million; (vi) integration expenses and costs
related to mergers and acquisitions of approximately $60-65
million; (vii) non-cash equity-based compensation of approximately
$80-85 million, and; (viii) other adjustments, including long-term
incentive plan costs, legal and professional services costs,
non-service component of our net periodic pension benefit (cost)
related to our defined benefit pension plans and foreign exchange
gains and losses of approximately $10-20 million. We are unable to
reconcile Adjusted EBITDA to net income (loss) determined under
U.S. GAAP due to the unavailability of information required to
reasonably predict certain reconciling items such as impairment of
long-lived assets and right-of-use assets and fair value movement
on earnout derivative liabilities and the related tax impact of
these adjustments. The exact amount of these adjustments is not
currently determinable but may be significant.
Free Cash Flow guidance for the year ending December 31, 2024
consists of expected net cash from operating activities of greater
than $250-280 million less purchase of property and equipment of
approximately $120-130 million.
Forward-Looking Statements
This release contains statements that are forward-looking and as
such are not historical facts. This includes, without limitation,
statements regarding our financial position, business strategy, the
plans and objectives of management for future operations and
full-year guidance. These statements constitute projections,
forecasts and forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intend,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “will,” “would” and similar
expressions may identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking.
The forward-looking statements contained in this release are
based on our current expectations and beliefs concerning future
developments and their potential effects on us. There can be no
assurance that future developments affecting us will be those that
we have anticipated. These forward-looking statements involve a
number of risks, uncertainties (some of which are beyond our
control) or other assumptions that may cause actual results or
performance to be materially different from those expressed or
implied by these forward-looking statements. These risks and
uncertainties include, but are not limited to, the following risks,
uncertainties and other factors: (1) changes to projected financial
information or our ability to achieve our anticipated growth rate
and execute on industry opportunities; (2) our ability to maintain
our existing relationships with customers and suppliers and to
compete with existing and new competitors; (3) various conflicts of
interest that could arise among us, affiliates and investors; (4)
our success in retaining or recruiting, or changes required in, our
officers, key employees or directors; (5) factors relating to our
business, operations and financial performance, including market
conditions and global and economic factors beyond our control; (6)
the impact of geopolitical conflicts, including the war in Ukraine
and the conflicts in the Middle East, as well as related changes in
base interest rates, inflation and significant market volatility on
our business, the travel industry, travel trends and the global
economy generally; (7) the sufficiency of our cash, cash
equivalents and investments to meet our liquidity needs; (8) the
effect of a prolonged or substantial decrease in global travel on
the global travel industry; (9) political, social and macroeconomic
conditions (including the widespread adoption of teleconference and
virtual meeting technologies which could reduce the number of
in-person business meetings and demand for travel and our
services); (10) the effect of legal, tax and regulatory changes;
(11) our ability to complete any potential acquisition in a timely
manner or at all; (12) our ability to recognize the anticipated
benefits of any future acquisition, which may be affected by, among
other things, competition, the ability of the combined company to
grow and manage growth profitably, maintain relationships with
customers and suppliers and retain key employees; (13) risks
related to, or unexpected liabilities that arise in connection
with, any future acquisition or the integration of any acquisition;
and (14) other risks and uncertainties described in the Company’s
Form 10-K, filed with the SEC on March 13, 2024, and in the
Company’s other SEC filings. Should one or more of these risks or
uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those
projected in these forward-looking statements. We undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws.
Disclaimer
An investment in Global Business Travel Group, Inc. is not an
investment in American Express. American Express shall not be
responsible in any manner whatsoever for, and in respect of, the
statements herein, all of which are made solely by Global Business
Travel Group, Inc.
_________________ 1Leverage ratio is calculated as Net Debt /
LTM Adjusted EBITDA and is different than leverage ratio defined in
our amended and restated senior secured credit agreement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806574977/en/
Media: Martin Ferguson Vice President Global Communications and
Public Affairs martin.ferguson@amexgbt.com
Investors: Jennifer Thorington Vice President Investor Relations
investor@amexgbt.com
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