American Express Global Business Travel, which is operated by
Global Business Travel Group, Inc. (NYSE: GBTG) (“Amex GBT” or the
“Company”), a leading software and services company for travel,
expense, and meetings & events, today announced financial
results for the third quarter ended September 30, 2024.
Third Quarter 2024 Highlights
Continued to Deliver Strong Financial Results
- TTV grew 9% year over year to $7.8 billion.
- Revenue grew 5% year over year to $597 million.
- Adjusted EBITDA grew 23% year over year to $118 million.
- Strong Free Cash Flow generation of $59 million, totaling $132
million year to date.
Significant Margin Expansion
- Revenue grew 5%, while Adjusted Operating Expenses only
increased 1%.
- Adjusted EBITDA margin expansion of 300bps year over year.
Continued Share Gains and Strong Customer Retention
- LTM Total New Wins Value of $3.0 billion, including $2.1
billion from SME.
- 97% LTM customer retention rate.
Free Cash Flow Acceleration
- Raised full-year 2024 Free Cash Flow Guidance to approximately
$160 million (up from >$130 million).
- Narrowed full-year 2024 revenue and Adjusted EBITDA guidance
ranges.
Returning Cash to Shareholders
- 8 million shares repurchased in a private share buyback
completed in Q3 2024 (approximately $55 million).
- Board of Directors authorized additional share buyback of up to
$300 million.
Paul Abbott, Amex GBT’s Chief Executive Officer, stated: "We
continue to execute on our strategy and deliver strong results with
a focus on share gains, margin expansion and investing for growth.
Our recent share buyback and larger scale authorization demonstrate
our confidence in our long term strategy."
Karen Williams, Amex GBT's Chief Financial Officer, stated: "Our
focus on productivity and margin expansion has enabled us to invest
significantly in our people, products and services. This has
resulted in accelerating Free Cash Flow generation and continued
deleverage. We are now in the strong position of being able to fund
the anticipated closing and integration of the CWT acquisition,
executed our first share buyback and have a new, larger
authorization in place to return cash to shareholders."
Third Quarter 2024 Financial Summary
(in millions, except percentages;
unaudited)
Three Months Ended
YOY
Inc / (Dec)
September 30,
2024
2023
Total Transaction Value (TTV)
$
7,752
$
7,123
9%
Transaction Growth
5%
8%
Revenue
$
597
$
571
5%
Travel Revenue
$
478
$
455
5%
Product and Professional Services
Revenue
$
119
$
116
2%
Total operating expenses
$
570
$
575
(1)%
Adjusted Operating Expenses
$
479
$
476
1%
Operating income (loss)
$
27
$
(4)
$
31
Net loss
$
(128)
$
(8)
$
(120)
Net loss margin
(21)%
(1)%
NM
EBITDA
$
33
$
76
(58)%
Adjusted EBITDA
$
118
$
95
23%
Adjusted EBITDA Margin
20%
17%
300bps
Net cash from operating activities
$
85
$
135
(37)%
Free Cash Flow
$
59
$
107
(45)%
Net Debt
$
860
$
927
Net Debt / LTM Adjusted EBITDA
1.9x
2.7x
NM = not meaningful
Third Quarter 2024 Financial Highlights (Changes compared
to prior year period unless otherwise noted)
Revenue of $597 million increased $26 million, or 5%. Within
this, Travel Revenue increased $23 million, or 5%, primarily due to
Transaction Growth. Product and Professional Services Revenue
increased $3 million, or 2%, primarily due to increased management
fees.
Total operating expenses of $570 million decreased $5 million,
or 1%, primarily due to lower restructuring costs and depreciation
and amortization. Cost savings initiatives and productivity
improvements also drove lower cost of revenue and general &
administrative costs. This was partially offset by the Company's
continued investments in technology and content along with sales
& marketing costs.
Adjusted Operating Expenses of $479 million increased $3
million, or 1%.
Operating income of $27 million increased $31 million versus
operating loss of $4 million in the same period in 2023, driven by
higher revenue and lower operating expenses discussed above.
Net loss was $128 million, versus a net loss of $8 million in
the same period in 2023. Increased operating income was offset by
unfavorable fair value movements on earnout derivative liabilities,
loss on early extinguishment of debt related to debt refinancing
and a higher provision for income taxes.
Adjusted EBITDA of $118 million increased $23 million, or 23%.
Revenue growth and operating leverage resulted in Adjusted EBITDA
margin expansion of 300bps to 20%.
Net cash from operating activities totaled $85 million, a
decrease of $50 million, or 37%, primarily due to unfavorable net
change in working capital, largely driven by lower benefit from the
Egencia working capital optimization actions as the program nears
completion.
Free Cash Flow totaled $59 million, a decrease of $48 million,
or 45%, primarily due to the decrease in net cash from operating
activities.
Net Debt: As of September 30, 2024, total debt, net of
unamortized debt discount and debt issuance cost was $1,384
million, compared to $1,362 million as of December 31, 2023. Net
Debt was $860 million as of September 30, 2024, compared to $886
million as of December 31, 2023. Leverage ratio was 1.9x as of
September 30, 2024, down from 2.3x as of December 31, 2023. The
cash balance was $524 million as of September 30, 2024, compared to
$476 million as of December 31, 2023.
Raising Full-Year 2024 Free Cash Flow Guidance
Full-Year 2024
Guidance
Year-over-Year Growth
Revenue
$2.415B – $2.435B
+ 5.5% – 6.5%
Adjusted EBITDA
$470M – $480M
+ 24% – 26%
Adjusted EBITDA Margin
19% – 20%
+ 290bps – 310bps
Free Cash Flow
Approx. $160M
(vs. prior guidance of >$130M
and original guidance of >$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 third 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 a leading
software and services company for travel, expense, and meetings
& events. We have built the most valuable marketplace in travel
with the most comprehensive and competitive content. A choice of
solutions brought to you through a strong combination of technology
and people, delivering the best experiences, proven at scale. 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
September 30,
(in $ millions, except share and per
share data)
2024
2023
Revenue
$
597
$
571
Costs and expenses:
Cost of revenue (excluding depreciation
and amortization shown separately below)
237
238
Sales and marketing
99
95
Technology and content
112
103
General and administrative
75
77
Restructuring and other exit charges
4
12
Depreciation and amortization
43
50
Total operating expenses
570
575
Operating income (loss)
27
(4
)
Interest income
2
—
Interest expense
(28
)
(36
)
Loss on early extinguishment of debt
(38
)
—
Fair value movement on earnout derivative
liabilities
(22
)
39
Other loss
(15
)
(9
)
Loss before income taxes
(74
)
(10
)
(Provision for) benefit from income
taxes
(54
)
2
Net loss
(128
)
(8
)
Less: net income (loss) attributable to
non-controlling interests in subsidiaries
1
(8
)
Net loss attributable to the Company’s
Class A common stockholders
$
(129
)
$
—
Basic loss per share attributable to the
Company’s Class A common stockholders
$
(0.28
)
$
—
Weighted average number of shares
outstanding - Basic
462,291,043
419,154,778
Diluted loss per share attributable to the
Company’s Class A common stockholders
$
(0.28
)
$
(0.02
)
Weighted average number of shares
outstanding - Diluted
462,291,043
457,742,129
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED BALANCE
SHEETS
(in $ millions, except share and per
share data)
September 30,
2024
December 31,
2023
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
524
$
476
Accounts receivable (net of allowance for
credit losses of $15 and $12 as of September 30, 2024 and December
31, 2023, respectively)
691
726
Due from affiliates
44
42
Prepaid expenses and other current
assets
135
116
Total current assets
1,394
1,360
Property and equipment, net
232
232
Equity method investments
14
14
Goodwill
1,236
1,212
Other intangible assets, net
500
552
Operating lease right-of-use assets
62
50
Deferred tax assets
253
281
Other non-current assets
61
50
Total assets
$
3,752
$
3,751
Liabilities and shareholders’
equity
Current liabilities:
Accounts payable
$
330
$
302
Due to affiliates
28
39
Accrued expenses and other current
liabilities
504
466
Current portion of operating lease
liabilities
14
17
Current portion of long-term debt
16
7
Total current liabilities
892
831
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,368
1,355
Deferred tax liabilities
5
5
Pension liabilities
176
183
Long-term operating lease liabilities
67
55
Earnout derivative liabilities
91
77
Other non-current liabilities
47
33
Total liabilities
2,646
2,539
Commitments and Contingencies
Shareholders’ equity:
Class A common stock (par value $0.0001;
3,000,000,000 shares authorized; 477,996,198 and 467,092,817 shares
issued, 469,996,198 and 467,092,817 shares outstanding as of
September 30, 2024 and December 31, 2023, respectively)
—
—
Additional paid-in capital
2,809
2,748
Accumulated deficit
(1,559
)
(1,437
)
Accumulated other comprehensive loss
(94
)
(103
)
Treasury shares, at cost (8,000,000 shares
and nil shares as of September 30, 2024 and December 31, 2023,
respectively)
(55
)
—
Total equity of the Company’s
shareholders
1,101
1,208
Equity attributable to non-controlling
interest in subsidiaries
5
4
Total shareholders’ equity
1,106
1,212
Total liabilities and shareholders’
equity
$
3,752
$
3,751
GLOBAL BUSINESS TRAVEL GROUP,
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Nine months ended
September 30,
(in $ millions)
2024
2023
Operating activities:
Net loss
$
(120
)
$
(90
)
Adjustments to reconcile net loss to net
cash from operating activities:
Depreciation and amortization
138
145
Deferred tax charge (benefit)
29
(16
)
Equity-based compensation
58
60
Allowance for credit losses
7
11
Loss on early extinguishment of debt
38
—
Fair value movement on earnout derivative
liabilities
14
(23
)
Other
14
16
Changes in working capital:
Accounts receivable
24
(109
)
Prepaid expenses and other current
assets
(26
)
(26
)
Due from affiliates
(4
)
(2
)
Due to affiliates
(11
)
18
Accounts payable, accrued expenses and
other current liabilities
66
141
Defined benefit pension funding
(20
)
(21
)
Net cash from operating activities
207
104
Investing activities:
Purchase of property and equipment
(75
)
(87
)
Other
5
(6
)
Net cash used in investing activities
(70
)
(93
)
Financing activities:
Proceeds from senior secured term
loans
1,397
131
Repayment of senior secured term loans
(1,372
)
(2
)
Purchase of treasury shares
(55
)
—
Contributions for ESPP and proceeds from
exercise of stock options
27
7
Payment of taxes withheld on vesting of
equity awards
(22
)
(14
)
Repayment of other debt and finance lease
obligations
Payment of debt financing costs
(25
)
(2
)
Prepayment penalty and other costs related
to early extinguishment of debt
(26
)
—
Other
(3
)
1
Net cash (used in) from financing
activities
(79
)
121
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
3
(3
)
Net increase in cash, cash equivalents and
restricted cash
61
129
Cash, cash equivalents and restricted
cash, beginning of period
489
316
Cash, cash equivalents and restricted
cash, end of period
$
550
$
445
Supplemental cash flow information:
Cash paid for income taxes, net
$
13
$
1
Cash paid for interest (net of interest
received)
$
75
$
107
Non-cash additions for operating lease
right-of-use assets
$
26
$
10
Non-cash additions for finance lease
$
5
$
3
Issuance of shares to settle liability
$
—
$
4
Glossary of Terms
Customer retention rate is calculated based on Total
Transaction Value (TTV).
CWT refers to CWT Holdings, LLC.
GMN refers to Global & Multinational Enterprises and
SME refers to Small and Medium-sized Enterprises. For
organizational management purposes, Amex GBT divides the customer
base into these two general categories, generally on the basis of
annual TTV, although this measure can vary by country and by
customer preference. Amex GBT offers all products and services to
all sizes of customer, as customers of all sizes may prefer
different solutions.
LTM refers to the last twelve months ended September 30,
2024.
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 nine months ended September 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 loss to EBITDA and Adjusted EBITDA:
Three months ended September
30,
(in $ millions)
2024
2023
Net loss
$
(128
)
$
(8
)
Interest income
(2
)
—
Interest expense
28
36
Loss on early extinguishment of debt
38
—
Provision for (benefit from) income
taxes
54
(2
)
Depreciation and amortization
43
50
EBITDA
33
76
Restructuring, exit and related charges
(a)
8
13
Integration costs (b)
7
10
Mergers and acquisitions (c)
12
1
Equity-based compensation and related
employer taxes (d)
22
19
Fair value movement on earnout derivative
liabilities (e)
22
(39
)
Other adjustments, net (f)
14
15
Adjusted EBITDA
$
118
$
95
Net loss margin
(21
)%
(1
)%
Adjusted EBITDA Margin
20
%
17
%
Reconciliation of total operating expenses to Adjusted Operating
Expenses:
Three months ended September
30,
(in $ millions)
2024
2023
Total operating expenses
$
570
$
575
Adjustments:
Depreciation and amortization
(43
)
(50
)
Restructuring, exit and related charges
(a)
(8
)
(13
)
Integration costs (b)
(7
)
(10
)
Mergers and acquisitions (c)
(12
)
(1
)
Equity-based compensation and related
employer taxes (d)
(22
)
(19
)
Other adjustments, net (f)
1
(6
)
Adjusted Operating Expenses
$
479
$
476
(a)
Includes (i) employee severance
costs of $2 million and $12 million for the three months ended
September 30, 2024 and 2023, respectively, (ii) accelerated
amortization of operating lease ROU assets of $4 million and $1
million for the three months ended September 30, 2024 and 2023,
respectively and (iii) contract costs related to facility
abandonment of $2 million and $0 for the three months ended
September 30, 2024 and 2023, respectively.
(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 $0 and $4 million
for the three months ended September 30, 2024 and 2023,
respectively and (ii) legal and professional services costs of $(1)
million and $2 million for the three months ended September 30,
2024 and 2023, respectively. Adjusted EBITDA additionally excludes
(i) unrealized foreign exchange loss of $14 million and $8 million
for the three months ended September 30, 2024 and 2023,
respectively and (ii) non-service component of our net periodic
pension cost related to our defined benefit pension plans of $1
million and $1 million for the three months ended September 30,
2024 and 2023, respectively.
Reconciliation of net cash from operating activities to Free
Cash Flow:
Three months ended September
30,
($ in millions)
2024
2023
Net cash from operating
activities
$
85
$
135
Less: Purchase of property and
equipment
(26
)
(28
)
Free Cash Flow
$
59
$
107
Reconciliation of Net Debt:
As of
(in $ millions)
September 30, 2024
December 31, 2023
September 30, 2023
Current portion of long-term debt
$
16
$
7
$
6
Long-term debt, net of unamortized debt
discount and debt issuance costs
1,368
1,355
1,353
Total debt, net of unamortized debt
discount and debt issuance costs
1,384
1,362
1,359
Less: Cash and cash equivalents
(524
)
(476
)
(432
)
Net Debt
$
860
$
886
$
927
LTM Adjusted EBITDA
$
448
$
380
$
343
Net Debt / LTM Adjusted EBITDA
1.9
x
2.3
x
2.7
x
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 provided 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 $115
million; (ii) loss on extinguishment of debt of $38 million; (iii)
income taxes of approximately $60-75 million; (iv) depreciation and
amortization of property and equipment of approximately $180-185
million; (v) restructuring costs of approximately $15-20 million;
(vi) integration expenses and costs related to mergers and
acquisitions of approximately $65-70 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 $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 $260-280 million less purchase of property and equipment of
approximately $105-115 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 and 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105904134/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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