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Bermuda
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98-0505105
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(State or other jurisdiction of
incorporation or organization) |
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(I.R.S. Employer
Identification Number) |
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Large accelerated filer ☒
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Accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company ☐
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Emerging growth company ☐
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(Do not check if a smaller reporting company)
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Page
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| | | | | | | 1 | | | |
PART I. FINANCIAL INFORMATION
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Item 1 | | | | | | | 3 | | | |
| | | | | | | 3 | | | |
| | | | | | | 4 | | | |
| | | | | | | 5 | | | |
| | | | | | | 6 | | | |
| | | | | | | 8 | | | |
| | | | | | | 9 | | | |
Item 2 | | | | | | | 27 | | | |
Item 3 | | | | | | | 48 | | | |
Item 4 | | | | | | | 49 | | | |
PART II. OTHER INFORMATION
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Item 1 | | | | | | | 50 | | | |
| | | | | | 50 | | | ||
Item 2 | | | | | | | 50 | | | |
Item 3 | | | | | | | 50 | | | |
Item 4 | | | | | | | 50 | | | |
Item 5 | | | | | | | 50 | | | |
Item 6 | | | Exhibits | | | | | 50 | | |
| | | Signatures | | | | | 51 | | |
(in $ thousands, except share data)
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Three Months
Ended June 30, 2017 |
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Three Months
Ended June 30, 2016 |
| |
Six Months
Ended June 30, 2017 |
| |
Six Months
Ended June 30, 2016 |
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Net revenue
|
| | | $ | 612,107 | | | | | $ | 605,905 | | | | | $ | 1,262,870 | | | | | $ | 1,215,168 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
|
| | | | 369,708 | | | | | | 376,605 | | | | | | 756,545 | | | | | | 739,282 | | |
Selling, general and administrative
|
| | | | 114,901 | | | | | | 139,294 | | | | | | 227,048 | | | | | | 253,771 | | |
Depreciation and amortization
|
| | | | 53,648 | | | | | | 52,246 | | | | | | 106,557 | | | | | | 104,487 | | |
Total costs and expenses
|
| | | | 538,257 | | | | | | 568,145 | | | | | | 1,090,150 | | | | | | 1,097,540 | | |
Operating income
|
| | | | 73,850 | | | | | | 37,760 | | | | | | 172,720 | | | | | | 117,628 | | |
Interest expense, net
|
| | | | (32,943) | | | | | | (45,113) | | | | | | (63,218) | | | | | | (100,008) | | |
Gain on sale of a subsidiary
|
| | | | 1,217 | | | | | | — | | | | | | 1,217 | | | | | | — | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | (2,671) | | | | | | — | | | | | | (2,671) | | |
Income (loss) before income taxes
|
| | | | 42,124 | | | | | | (10,024) | | | | | | 110,719 | | | | | | 14,949 | | |
Provision for income taxes
|
| | | | (7,758) | | | | | | (4,405) | | | | | | (20,490) | | | | | | (12,197) | | |
Net income (loss)
|
| | | | 34,366 | | | | | | (14,429) | | | | | | 90,229 | | | | | | 2,752 | | |
Net loss (income) attributable to non-controlling interest in subsidiaries
|
| | | | 561 | | | | | | (402) | | | | | | 804 | | | | | | (998) | | |
Net income (loss) attributable to the
Company |
| | | $ | 34,927 | | | | | $ | (14,831) | | | | | $ | 91,033 | | | | | $ | 1,754 | | |
Income (loss) per share – Basic: | | | | | | ||||||||||||||||||||
Income (loss) per share
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| | | $ | 0.28 | | | | | $ | (0.12) | | | | | $ | 0.73 | | | | | $ | 0.01 | | |
Weighted average common shares outstanding – Basic
|
| | | | 124,357,929 | | | | | | 123,825,030 | | | | | | 124,219,917 | | | | | | 123,771,642 | | |
Income (loss) per share – Diluted: | | | | | | ||||||||||||||||||||
Income (loss) per share
|
| | | $ | 0.28 | | | | | $ | (0.12) | | | | | $ | 0.72 | | | | | $ | 0.01 | | |
Weighted average common shares outstanding – Diluted
|
| | | | 125,756,484 | | | | | | 123,825,030 | | | | | | 125,634,628 | | | | | | 123,912,681 | | |
Cash dividends declared per common
share |
| | | $ | 0.075 | | | | | $ | 0.075 | | | | | $ | 0.15 | | | | | $ | 0.15 | | |
(in $ thousands)
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Three Months
Ended June 30, 2017 |
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Three Months
Ended June 30, 2016 |
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Six Months
Ended June 30, 2017 |
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Six Months
Ended June 30, 2016 |
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Net income (loss)
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| | | $ | 34,366 | | | | | $ | (14,429) | | | | | $ | 90,229 | | | | | $ | 2,752 | | |
Other comprehensive income (loss), net of tax:
|
| | | | | ||||||||||||||||||||
Currency translation adjustment, net of tax
|
| | | | 11,962 | | | | | | (4,799) | | | | | | 16,299 | | | | | | 2,660 | | |
Amortization of actuarial loss to net income, net of tax
|
| | | | 2,605 | | | | | | 2,251 | | | | | | 5,204 | | | | | | 4,502 | | |
Other comprehensive income (loss), net of tax
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| | | | 14,567 | | | | | | (2,548) | | | | | | 21,503 | | | | | | 7,162 | | |
Comprehensive income (loss)
|
| | | | 48,933 | | | | | | (16,977) | | | | | | 111,732 | | | | | | 9,914 | | |
Comprehensive loss (income) attributable to non-controlling interest in subsidiaries
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| | | | 561 | | | | | | (402) | | | | | | 804 | | | | | | (998) | | |
Comprehensive income (loss) attributable to
the Company |
| | | $ | 49,494 | | | | | $ | (17,379) | | | | | $ | 112,536 | | | | | $ | 8,916 | | |
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(in $ thousands, except share data)
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June 30,
2017 |
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December 31,
2016 |
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Assets | | | | ||||||||||
Current assets: | | | | ||||||||||
Cash and cash equivalents
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| | | $ | 216,513 | | | | | $ | 139,938 | | |
Accounts receivable (net of allowances for doubtful accounts of $14,653 and $13,430)
|
| | | | 254,247 | | | | | | 218,224 | | |
Other current assets
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| | | | 99,122 | | | | | | 84,089 | | |
Total current assets
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| | | | 569,882 | | | | | | 442,251 | | |
Property and equipment, net
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| | | | 404,724 | | | | | | 431,046 | | |
Goodwill
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| | | | 1,085,990 | | | | | | 1,079,951 | | |
Trademarks and tradenames
|
| | | | 313,097 | | | | | | 313,097 | | |
Other intangible assets, net
|
| | | | 493,956 | | | | | | 511,607 | | |
Deferred income taxes
|
| | | | 9,111 | | | | | | 9,213 | | |
Other non-current assets
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| | | | 51,914 | | | | | | 46,764 | | |
Total assets
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| | | $ | 2,928,674 | | | | | $ | 2,833,929 | | |
Liabilities and equity | | | | ||||||||||
Current liabilities: | | | | ||||||||||
Accounts payable
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| | | $ | 56,214 | | | | | $ | 59,219 | | |
Accrued expenses and other current liabilities
|
| | | | 502,528 | | | | | | 478,560 | | |
Current portion of long-term debt
|
| | | | 63,194 | | | | | | 63,558 | | |
Total current liabilities
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| | | | 621,936 | | | | | | 601,337 | | |
Long-term debt
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| | | | 2,267,019 | | | | | | 2,281,210 | | |
Deferred income taxes
|
| | | | 59,573 | | | | | | 59,381 | | |
Other non-current liabilities
|
| | | | 226,630 | | | | | | 227,783 | | |
Total liabilities
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| | | | 3,175,158 | | | | | | 3,169,711 | | |
Commitments and contingencies (Note 11)
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Shareholders’ equity (deficit): | | | | ||||||||||
Preference shares ($0.0025 par value; 225,000,000 shares
authorized; no shares issued and outstanding as of June 30, 2017 and December 31, 2016) |
| | | | — | | | | | | — | | |
Common shares ($0.0025 par value; 560,000,000 shares authorized;
125,462,152 shares and 124,941,233 shares issued; 124,404,978 shares and 124,032,361 shares outstanding as of June 30, 2017 and December 31, 2016, respectively) |
| | | | 313 | | | | | | 312 | | |
Additional paid in capital
|
| | | | 2,702,368 | | | | | | 2,708,836 | | |
Treasury shares, at cost (1,057,174 shares and 908,872 shares as of June 30, 2017 and December 31, 2016, respectively)
|
| | | | (15,910) | | | | | | (14,166) | | |
Accumulated deficit
|
| | | | (2,773,805) | | | | | | (2,864,838) | | |
Accumulated other comprehensive loss
|
| | | | (168,569) | | | | | | (190,072) | | |
Total shareholders’ equity (deficit)
|
| | | | (255,603) | | | | | | (359,928) | | |
Equity attributable to non-controlling interest in subsidiaries
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| | | | 9,119 | | | | | | 24,146 | | |
Total equity (deficit)
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| | | | (246,484) | | | | | | (335,782) | | |
Total liabilities and equity
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| | | $ | 2,928,674 | | | | | $ | 2,833,929 | | |
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(in $ thousands)
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Six Months
Ended June 30, 2017 |
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Six Months
Ended June 30, 2016 |
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Operating activities | | | | ||||||||||
Net income
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| | | $ | 90,229 | | | | | $ | 2,752 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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| | | | 106,557 | | | | | | 104,487 | | |
Amortization of customer loyalty payments
|
| | | | 37,452 | | | | | | 34,261 | | |
Allowance for prepaid incentives
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| | | | — | | | | | | 10,684 | | |
Impairment of long-lived assets
|
| | | | 685 | | | | | | 4,087 | | |
Amortization of debt finance costs and debt discount
|
| | | | 5,369 | | | | | | 5,126 | | |
Gain on sale of a subsidiary
|
| | | | (1,217) | | | | | | — | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | 2,671 | | |
(Gain) loss on foreign exchange derivative instruments
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| | | | (20,920) | | | | | | 2,451 | | |
Loss on interest rate derivative instruments
|
| | | | 3,001 | | | | | | 21,862 | | |
Equity-based compensation
|
| | | | 15,522 | | | | | | 16,222 | | |
Deferred income taxes
|
| | | | 203 | | | | | | 827 | | |
Customer loyalty payments
|
| | | | (35,385) | | | | | | (43,922) | | |
Pension liability contribution
|
| | | | (1,202) | | | | | | (1,837) | | |
Changes in assets and liabilities: | | | | ||||||||||
Accounts receivable
|
| | | | (41,349) | | | | | | (37,454) | | |
Other current assets
|
| | | | 3,346 | | | | | | (19,072) | | |
Accounts payable, accrued expenses and other current liabilities
|
| | | | 11,479 | | | | | | 3,896 | | |
Other
|
| | | | 4,837 | | | | | | (4,109) | | |
Net cash provided by operating activities
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| | | $ | 178,607 | | | | | $ | 102,932 | | |
Investing activities | | | | ||||||||||
Property and equipment additions
|
| | | $ | (46,829) | | | | | $ | (44,985) | | |
Sale of subsidiary, net of cash disposed
|
| | | | (3,433) | | | | | | — | | |
Business acquired, net of cash
|
| | | | — | | | | | | (15,009) | | |
Net cash used in investing activities
|
| | | $ | (50,262) | | | | | $ | (59,994) | | |
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(in $ thousands)
|
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Six Months
Ended June 30, 2017 |
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Six Months
Ended June 30, 2016 |
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Financing activities | | | | ||||||||||
Proceeds from term loans
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| | | $ | — | | | | | $ | 143,291 | | |
Repayment of term loans
|
| | | | (11,875) | | | | | | (155,166) | | |
Repayment of capital lease obligations and other indebtedness
|
| | | | (19,490) | | | | | | (23,542) | | |
Proceeds from revolver borrowings
|
| | | | — | | | | | | 10,000 | | |
Repayment of revolver borrowings
|
| | | | — | | | | | | (10,000) | | |
Debt finance cost and lender fees
|
| | | | — | | | | | | (7,791) | | |
Dividend to shareholders
|
| | | | (18,857) | | | | | | (18,565) | | |
Purchase of non-controlling interest in a subsidiary
|
| | | | (1,063) | | | | | | (7,820) | | |
Proceeds from share issuance under employee share purchase plan and stock options
|
| | | | 1,116 | | | | | | — | | |
Treasury share purchase related to vesting of equity awards
|
| | | | (2,383) | | | | | | (1,004) | | |
Net cash used in financing activities
|
| | | $ | (52,552) | | | | | $ | (70,597) | | |
Effect of changes in exchange rates on cash and cash equivalents
|
| | | | 782 | | | | | | (245) | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 76,575 | | | | | | (27,904) | | |
Cash and cash equivalents at beginning of period
|
| | | | 139,938 | | | | | | 154,841 | | |
Cash and cash equivalents at end of period
|
| | | $ | 216,513 | | | | | $ | 126,937 | | |
Supplemental disclosures of cash flow information | | | | ||||||||||
Interest payments, net of capitalized interest
|
| | | $ | 56,447 | | | | | $ | 86,854 | | |
Income tax payments, net of refunds
|
| | | | 14,457 | | | | | | 8,573 | | |
Non-cash capital lease additions
|
| | | | 12,174 | | | | | | 7,969 | | |
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Common Shares
|
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Additional
Paid in Capital |
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Treasury Shares
|
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Accumulated
Deficit |
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Accumulated
Other Comprehensive Loss |
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Non-
Controlling Interest in Subsidiaries |
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Total
Equity (Deficit) |
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(in $ thousands, except share data)
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Number
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Amount
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Number
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Amount
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Balance as of December 31, 2016
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| | | | 124,941,233 | | | | | $ | 312 | | | | | $ | 2,708,836 | | | | | | 908,872 | | | | | $ | (14,166) | | | | | $ | (2,864,838) | | | | | $ | (190,072) | | | | | $ | 24,146 | | | | | $ | (335,782) | | |
Dividend to shareholders ($0.15 per common share)
|
| | | | — | | | | | | — | | | | | | (19,816) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (19,816) | | |
Purchase of non-controlling interest
in a subsidiary |
| | | | — | | | | | | — | | | | | | (47) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,016) | | | | | | (1,063) | | |
Sale of shares in a subsidiary
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (15,539) | | | | | | (15,539) | | |
Equity-based compensation
|
| | | | 520,919 | | | | | | 1 | | | | | | 14,034 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,332 | | | | | | 16,367 | | |
Treasury shares purchased in relation
to vesting of equity awards |
| | | | — | | | | | | — | | | | | | — | | | | | | 189,311 | | | | | | (2,383) | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,383) | | |
Treasury shares issued in relation to vesting of equity awards
|
| | | | — | | | | | | — | | | | | | (639) | | | | | | (41,009) | | | | | | 639 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Comprehensive income (loss), net of
tax |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 91,033 | | | | | | 21,503 | | | | | | (804) | | | | | | 111,732 | | |
Balance as of June 30, 2017
|
| | | | 125,462,152 | | | | | $ | 313 | | | | | $ | 2,702,368 | | | | | | 1,057,174 | | | | | $ | (15,910) | | | | | $ | (2,773,805) | | | | | $ | (168,569) | | | | | $ | 9,119 | | | | | $ | (246,484) | | |
|
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Common Shares
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Additional
Paid in Capital |
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Treasury Shares
|
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Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Non-
Controlling Interest in Subsidiaries |
| |
Total
Equity (Deficit) |
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(in $ thousands, except share data)
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Number
|
| |
Amount
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Number
|
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Amount
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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) | | |
Dividend to shareholders ($0.15 per common share)
|
| | | | — | | | | | | — | | | | | | (18,996) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (18,996) | | |
Purchase of non-controlling interest in
a subsidiary |
| | | | — | | | | | | — | | | | | | 1,189 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,709) | | | | | | (8,520) | | |
Equity-based compensation
|
| | | | 260,007 | | | | | | 1 | | | | | | 17,392 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,393 | | |
Treasury shares purchased in relation to vesting of equity awards
|
| | | | — | | | | | | — | | | | | | — | | | | | | 70,362 | | | | | | (1,004) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,004) | | |
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)
|
| |
June 30,
2017 |
| |
December 31,
2016 |
| ||||||
Sales and use tax receivables
|
| | | $ | 26,645 | | | | | $ | 27,178 | | |
Prepaid expenses
|
| | | | 24,703 | | | | | | 26,289 | | |
Client funds
|
| | | | 18,632 | | | | | | 11,632 | | |
Prepaid incentives
|
| | | | 13,075 | | | | | | 9,492 | | |
Derivative assets
|
| | | | 5,996 | | | | | | 856 | | |
Other
|
| | | | 10,071 | | | | | | 8,642 | | |
| | | | $ | 99,122 | | | | | $ | 84,089 | | |
|
| | |
June 30, 2017
|
| |
December 31, 2016
|
| ||||||||||||||||||||||||||||||
(in $ thousands)
|
| |
Cost
|
| |
Accumulated
Depreciation |
| |
Net
|
| |
Cost
|
| |
Accumulated
Depreciation |
| |
Net
|
| ||||||||||||||||||
Capitalized software
|
| | | $ | 992,108 | | | | | $ | (783,353) | | | | | $ | 208,755 | | | | | $ | 925,998 | | | | | $ | (736,573) | | | | | $ | 189,425 | | |
Computer equipment
|
| | | | 337,479 | | | | | | (204,213) | | | | | | 133,266 | | | | | | 344,112 | | | | | | (205,222) | | | | | | 138,890 | | |
Building and leasehold improvements
|
| | | | 27,910 | | | | | | (9,838) | | | | | | 18,072 | | | | | | 27,187 | | | | | | (9,622) | | | | | | 17,565 | | |
Construction in progress
|
| | | | 44,631 | | | | | | — | | | | | | 44,631 | | | | | | 85,166 | | | | | | — | | | | | | 85,166 | | |
| | | | $ | 1,402,128 | | | | | $ | (997,404) | | | | | $ | 404,724 | | | | | $ | 1,382,463 | | | | | $ | (951,417) | | | | | $ | 431,046 | | |
|
(in $ thousands)
|
| |
January 1,
2017 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
June 30,
2017 |
| |||||||||||||||
Non-Amortizable Assets: | | | | | | | |||||||||||||||||||||||||
Goodwill
|
| | | $ | 1,079,951 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,039 | | | | | $ | 1,085,990 | | |
Trademarks and tradenames
|
| | | | 313,097 | | | | | | — | | | | | | — | | | | | | — | | | | | | 313,097 | | |
Other Intangible Assets: | | | | | | | |||||||||||||||||||||||||
Acquired intangible assets
|
| | | | 1,127,059 | | | | | | — | | | | | | (368,715) | | | | | | 171 | | | | | | 758,515 | | |
Accumulated amortization
|
| | | | (804,089) | | | | | | (20,523) | | | | | | 368,715 | | | | | | (237) | | | | | | (456,134) | | |
Acquired intangible assets, net
|
| | | | 322,970 | | | | | | (20,523) | | | | | | — | | | | | | (66) | | | | | | 302,381 | | |
Customer loyalty payments
|
| | | | 358,259 | | | | | | 42,512 | | | | | | (40,803) | | | | | | 4,874 | | | | | | 364,842 | | |
Accumulated amortization
|
| | | | (169,622) | | | | | | (37,452) | | | | | | 36,403 | | | | | | (2,596) | | | | | | (173,267) | | |
Customer loyalty payments, net
|
| | | | 188,637 | | | | | | 5,060 | | | | | | (4,400) | | | | | | 2,278 | | | | | | 191,575 | | |
Other intangible assets, net
|
| | | $ | 511,607 | | | | | $ | (15,463) | | | | | $ | (4,400) | | | | | $ | 2,212 | | | | | $ | 493,956 | | |
|
(in $ thousands)
|
| |
January 1,
2016 |
| |
Additions
|
| |
Retirements
|
| |
Foreign
Exchange |
| |
June 30,
2016 |
| |||||||||||||||
Non-Amortizable Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill
|
| | | $ | 1,067,415 | | | | | $ | 14,105 | | | | | $ | — | | | | | $ | 2,321 | | | | | $ | 1,083,841 | | |
Trademarks and tradenames
|
| | | | 313,961 | | | | | | — | | | | | | — | | | | | | 54 | | | | | | 314,015 | | |
Other Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired intangible assets
|
| | | | 1,127,360 | | | | | | — | | | | | | — | | | | | | (110) | | | | | | 1,127,250 | | |
Accumulated amortization
|
| | | | (756,489) | | | | | | (24,855) | | | | | | — | | | | | | (348) | | | | | | (781,692) | | |
Acquired intangible assets, net
|
| | | | 370,871 | | | | | | (24,855) | | | | | | — | | | | | | (458) | | | | | | 345,558 | | |
Customer loyalty payments
|
| | | | 300,142 | | | | | | 50,346 | | | | | | (29,359) | | | | | | 1,844 | | | | | | 322,973 | | |
Accumulated amortization
|
| | | | (136,473) | | | | | | (34,261) | | | | | | 27,479 | | | | | | (596) | | | | | | (143,851) | | |
Customer loyalty payments, net
|
| | | | 163,669 | | | | | | 16,085 | | | | | | (1,880) | | | | | | 1,248 | | | | | | 179,122 | | |
Other intangible assets, net
|
| | | $ | 534,540 | | | | | $ | (8,770) | | | | | $ | (1,880) | | | | | $ | 790 | | | | | $ | 524,680 | | |
|
(in $ thousands)
|
| |
June 30,
2017 |
| |
December 31,
2016 |
| ||||||
Prepaid incentives
|
| | | $ | 31,150 | | | | | $ | 25,538 | | |
Deferred financing costs
|
| | | | 3,870 | | | | | | 4,752 | | |
Supplier prepayments
|
| | | | 3,245 | | | | | | 3,454 | | |
Pension assets
|
| | | | 2,515 | | | | | | 989 | | |
Derivative assets
|
| | | | 1,785 | | | | | | 1,719 | | |
Other
|
| | | | 9,349 | | | | | | 10,312 | | |
| | | | $ | 51,914 | | | | | $ | 46,764 | | |
|
(in $ thousands)
|
| |
Severance and
Employee-Related Obligations |
| |
Implementation
Costs |
| |
Total
|
| |||||||||
Balance as of January 1, 2017
|
| | | $ | 11,082 | | | | | $ | 1,686 | | | | | $ | 12,768 | | |
Restructuring charges recognized
|
| | | | 3,090 | | | | | | 2,825 | | | | | | 5,915 | | |
Cash payments made
|
| | | | (4,558) | | | | | | (4,333) | | | | | | (8,891) | | |
Balance as of June 30, 2017
|
| | | $ | 9,614 | | | | | $ | 178 | | | | | $ | 9,792 | | |
|
(in $ thousands)
|
| |
June 30,
2017 |
| |
December 31,
2016 |
| ||||||
Accrued commissions and incentives
|
| | | $ | 308,704 | | | | | $ | 267,488 | | |
Accrued payroll and related
|
| | | | 68,884 | | | | | | 83,783 | | |
Deferred revenue
|
| | | | 43,985 | | | | | | 42,233 | | |
Income tax payable
|
| | | | 21,563 | | | | | | 17,560 | | |
Customer prepayments
|
| | | | 18,632 | | | | | | 11,632 | | |
Accrued interest expense
|
| | | | 13,824 | | | | | | 15,215 | | |
Derivative liabilities
|
| | | | 6,457 | | | | | | 21,771 | | |
Pension and post-retirement benefit liabilities
|
| | | | 1,605 | | | | | | 1,655 | | |
Other
|
| | | | 18,874 | | | | | | 17,223 | | |
| | | | $ | 502,528 | | | | | $ | 478,560 | | |
|
(in $ thousands)
|
| |
Interest
Rate |
| |
Maturity
|
| |
June 30,
2017 |
| |
December 31,
2016 |
| |||||||||
Senior Secured Credit Agreement | | | | | | | | | | | | | | | | | | | | | | |
Term loans
|
| | | | | | | | | | | | | | | | | | | | | |
Dollar denominated(1)(2)(3)
|
| |
L+3.25%
|
| | | | September 2021 | | | | | $ | 2,228,768 | | | | | $ | 2,236,157 | | |
Revolver borrowings
|
| | | | | | | | | | | | | | | | | | | | | |
Dollar denominated
|
| |
L+4.75%
|
| | | | September 2019 | | | | | | — | | | | | | — | | |
Capital leases and other indebtedness
|
| | | | | | | | | | | | | 101,445 | | | | | | 108,611 | | |
Total debt
|
| | | | | | | | | | | | $ | 2,330,213 | | | | | $ | 2,344,768 | | |
Less: current portion
|
| | | | | | | | | | | | | 63,194 | | | | | | 63,558 | | |
Long-term debt
|
| | | | | | | | | | | | $ | 2,267,019 | | | | | $ | 2,281,210 | | |
|
| | | | | |
Fair Value Asset
|
| | | | |
Fair Value (Liability)
|
| ||||||||||||||||||
(in $ thousands)
|
| |
Balance Sheet
Location |
| |
June 30,
2017 |
| |
December 31,
2016 |
| |
Balance Sheet
Location |
| |
June 30,
2017 |
| |
December 31,
2016 |
| ||||||||||||
Interest
rate swap contracts |
| | Other current assets |
| | | $ | 841 | | | | | $ | 768 | | | | Accrued expenses and other current liabilities |
| | | $ | — | | | | | $ | — | | |
Interest
rate swap contracts |
| | Other non-current assets |
| | | | 1,785 | | | | | | 1,719 | | | | Other non-current liabilities |
| | | | (3,140) | | | | | | — | | |
Foreign currency
contracts |
| | Other current assets |
| | | | 5,155 | | | | | | 88 | | | | Accrued expenses and other current liabilities |
| | | | (6,457) | | | | | | (21,771) | | |
Total fair value of
derivative assets (liabilities) |
| | | | | | $ | 7,781 | | | | | $ | 2,575 | | | | | | | | $ | (9,597) | | | | | $ | (21,771) | | |
|
(in $ thousands)
|
| |
Six Months Ended
June 30, 2017 |
| |
Six Months Ended
June 30, 2016 |
| ||||||
Net derivative liability opening balance
|
| | | $ | (19,196) | | | | | $ | (2,111) | | |
Total gain (loss) for the period included in net income
|
| | | | 6,529 | | | | | | (34,560) | | |
Payments on settlement of derivative contracts
|
| | | | 10,851 | | | | | | 10,277 | | |
Net derivative liability closing balance
|
| | | $ | (1,816) | | | | | $ | (26,394) | | |
|
| | | | | |
Amount of Income (Loss)
Recorded in Net Income (Loss) |
| |||||||||||||||||||||
| | | | | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
(in $ thousands)
|
| |
Statement of Operations Location
|
| |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Interest rate swap contracts
|
| | Interest expense, net | | | | $ | (4,880) | | | | | $ | (5,406) | | | | | $ | (4,654) | | | | | $ | (21,862) | | |
Foreign currency
contracts |
| |
Selling, general and administrative
|
| | | | 9,125 | | | | | | (14,549) | | | | | | 11,183 | | | | | | (12,698) | | |
| | | | | | | $ | 4,245 | | | | | $ | (19,955) | | | | | $ | 6,529 | | | | | $ | (34,560) | | |
|
| | | | | |
June 30, 2017
|
| |
December 31, 2016
|
| ||||||||||||||||||
(in $ thousands)
|
| |
Fair Value Hierarchy
|
| |
Carrying Amount
|
| |
Fair Value
|
| |
Carrying Amount
|
| |
Fair Value
|
| ||||||||||||
Asset (liability) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative assets
|
| |
Level 2
|
| | | $ | 7,781 | | | | | $ | 7,781 | | | | | $ | 2,575 | | | | | $ | 2,575 | | |
Derivative liabilities
|
| |
Level 2
|
| | | | (9,597) | | | | | | (9,597) | | | | | | (21,771) | | | | | | (21,771) | | |
Total debt
|
| |
Level 2
|
| | | | (2,330,213) | | | | | | (2,371,511) | | | | | | (2,344,768) | | | | | | (2,402,783) | | |
Declaration Date
|
| |
Dividend Per
Share |
| |
Record
Date |
| |
Payment
Date |
| |
Amount
(in $ thousands) |
| ||||||
February 13, 2017
|
| | | $ | 0.075 | | | |
March 2, 2017
|
| |
March 16, 2017
|
| | | $ | 9,306 | | |
May 5, 2017
|
| | | $ | 0.075 | | | |
June 1, 2017
|
| |
June 15, 2017
|
| | | $ | 9,330 | | |
(in dollars, except number of RSUs)
|
| |
Number
|
| |
Weighted
Average Grant Date Fair Value |
| ||||||
Balance as of January 1, 2017
|
| | | | 1,395,307 | | | | | $ | 13.84 | | |
Granted at fair market value
|
| | | | 778,667 | | | | | $ | 12.39 | | |
Vested(1) | | | | | (416,211) | | | | | $ | 13.80 | | |
Forfeited
|
| | | | (82,320) | | | | | $ | 13.51 | | |
Balance as of June 30, 2017
|
| | | | 1,675,443 | | | | | $ | 13.19 | | |
|
(in dollars, except number of PSUs)
|
| |
Number
|
| |
Weighted
Average Grant Date Fair Value |
| ||||||
Balance as of January 1, 2017
|
| | | | 2,641,227 | | | | | $ | 15.52 | | |
Granted at fair market value
|
| | | | 1,714,407 | | | | | $ | 12.97 | | |
Vested(1) | | | | | (80,000) | | | | | $ | 13.96 | | |
Forfeited
|
| | | | (318,323) | | | | | $ | 13.83 | | |
Balance as of June 30, 2017(2)
|
| | | | 3,957,311 | | | | | $ | 14.58 | | |
|
| | |
Number of Options
|
| |
Weighted Average
Exercise Price (in dollars) |
| |
Weighted Average
Remaining Contractual Terms (in years) |
| |
Aggregate
Intrinsic Value (in $ thousands) |
| ||||||||||||
Balance as of January 1, 2017
|
| | | | 2,720,514 | | | | | $ | 13.58 | | | | | | | | | | | | | | |
Exercised
|
| | | | (3,498) | | | | | $ | 13.23 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (74,770) | | | | | $ | 13.95 | | | | | | | | | | | | | | |
Expired
|
| | | | (1,953) | | | | | $ | 16.00 | | | | | | | | | | | | | | |
Balance as of June 30, 2017
|
| | | | 2,640,293 | | | | | $ | 13.57 | | | | | | 7.39 | | | | | $ | 2,210 | | |
Exercisable as of June 30, 2017
|
| | | | 1,047,812 | | | | | $ | 13.06 | | | | | | 5.57 | | | | | | 1,597 | | |
Expected to vest as of June 30, 2017
|
| | | | 1,592,481 | | | | | $ | 13.90 | | | | | | 8.43 | | | | | | 613 | | |
|
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
(in $ thousands, except share data)
|
| |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Numerator – Basic and Diluted Income (Loss) per Share:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to the Company
|
| | | $ | 34,927 | | | | | $ | (14,831) | | | | | $ | 91,033 | | | | | $ | 1,754 | | |
Denominator – Basic Income (Loss) per Share:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding
|
| | | | 124,357,929 | | | | | | 123,825,030 | | | | | | 124,219,917 | | | | | | 123,771,642 | | |
Income (loss) per share – Basic
|
| | | $ | 0.28 | | | | | $ | (0.12) | | | | | $ | 0.73 | | | | | $ | 0.01 | | |
Denominator – Diluted Income (Loss) per Share:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Number of common shares used for basic income (loss) per share
|
| | | | 124,357,929 | | | | | | 123,825,030 | | | | | | 124,219,917 | | | | | | 123,771,642 | | |
Weighted average effect of dilutive securities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
RSUs/ PSUs
|
| | | | 1,305,282 | | | | | | —(1) | | | | | | 1,321,912 | | | | | | 64,467 | | |
Stock Options
|
| | | | 93,273 | | | | | | —(1) | | | | | | 92,799 | | | | | | 76,572 | | |
Weighted average common shares outstanding
|
| | | | 125,756,484 | | | | | | 123,825,030 | | | | | | 125,634,628 | | | | | | 123,912,681 | | |
Income (loss) per share – Diluted
|
| | | $ | 0.28 | | | | | $ | (0.12) | | | | | $ | 0.72 | | | | | $ | 0.01 | | |
|
(in $ thousands, except share data,
Reported Segments and RevPas) |
| |
Three Months
Ended June 30, |
| |
Change
|
| |
Six Months
Ended June 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
|
2017
|
| |
2016
|
| | | | | | | |
%
|
| |
2017
|
| |
2016
|
| | | | | | | |
%
|
| ||||||||||||||||||||
Net revenue
|
| | | $ | 612,107 | | | | | $ | 605,905 | | | | | $ | 6,202 | | | | | | 1 | | | | | $ | 1,262,870 | | | | | $ | 1,215,168 | | | | | $ | 47,702 | | | | | | 4 | | |
Operating income
|
| | | | 73,850 | | | | | | 37,760 | | | | | | 36,090 | | | | | | 96 | | | | | | 172,720 | | | | | | 117,628 | | | | | | 55,092 | | | | | | 47 | | |
Net income (loss)
|
| | | | 34,366 | | | | | | (14,429) | | | | | | 48,795 | | | | | | * | | | | | | 90,229 | | | | | | 2,752 | | | | | | 87,477 | | | | | | * | | |
Income (loss) per share – diluted (in $)
|
| | | | 0.28 | | | | | | (0.12) | | | | | | 0.40 | | | | | | * | | | | | | 0.72 | | | | | | 0.01 | | | | | | 0.71 | | | | | | * | | |
Adjusted EBITDA(1)
|
| | | | 147,006 | | | | | | 139,013 | | | | | | 7,993 | | | | | | 6 | | | | | | 315,559 | | | | | | 293,153 | | | | | | 22,406 | | | | | | 8 | | |
Adjusted Operating Income(2)
|
| | | | 84,832 | | | | | | 82,796 | | | | | | 2,036 | | | | | | 2 | | | | | | 192,073 | | | | | | 179,260 | | | | | | 12,813 | | | | | | 7 | | |
Adjusted Net Income(3)
|
| | | | 50,006 | | | | | | 34,287 | | | | | | 15,719 | | | | | | 46 | | | | | | 114,363 | | | | | | 85,242 | | | | | | 29,121 | | | | | | 34 | | |
Adjusted Income per Share – diluted(4) (in $)
|
| | | | 0.40 | | | | | | 0.28 | | | | | | 0.12 | | | | | | 43 | | | | | | 0.91 | | | | | | 0.69 | | | | | | 0.22 | | | | | | 32 | | |
Net cash provided by operating activities
|
| | | | 83,585 | | | | | | 76,728 | | | | | | 6,857 | | | | | | 9 | | | | | | 178,607 | | | | | | 102,932 | | | | | | 75,675 | | | | | | 74 | | |
Free Cash Flow(5)
|
| | | | 60,365 | | | | | | 54,264 | | | | | | 6,101 | | | | | | 11 | | | | | | 131,778 | | | | | | 57,947 | | | | | | 73,831 | | | | | | 127 | | |
Reported Segments (in thousands)
|
| | | | 86,381 | | | | | | 86,807 | | | | | | (426) | | | | | | * | | | | | | 179,578 | | | | | | 176,780 | | | | | | 2,798 | | | | | | 2 | | |
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.76 | | | | | $ | 6.61 | | | | | $ | 0.15 | | | | | | 2 | | | | | $ | 6.71 | | | | | $ | 6.52 | | | | | $ | 0.19 | | | | | | 3 | | |
| | |
Three Months
Ended June 30, |
| |
Six Months
Ended June 30, |
| ||||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Net income (loss)
|
| | | $ | 34,366 | | | | | $ | (14,429) | | | | | $ | 90,229 | | | | | $ | 2,752 | | |
Adjustments: | | | | | | ||||||||||||||||||||
Amortization of intangible assets(1)
|
| | | | 10,131 | | | | | | 13,716 | | | | | | 20,523 | | | | | | 24,855 | | |
Gain on sale of a subsidiary
|
| | | | (1,217) | | | | | | — | | | | | | (1,217) | | | | | | — | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | 2,671 | | | | | | — | | | | | | 2,671 | | |
Equity-based compensation and related taxes
|
| | | | 7,893 | | | | | | 6,823 | | | | | | 15,679 | | | | | | 15,924 | | |
Corporate and restructuring costs(2)
|
| | | | 5,024 | | | | | | 6,870 | | | | | | 10,680 | | | | | | 14,279 | | |
Impairment of long-lived assets(3)
|
| | | | — | | | | | | 3,626 | | | | | | 685 | | | | | | 4,087 | | |
Other – non cash(4)
|
| | | | (8,839) | | | | | | 19,407 | | | | | | (25,213) | | | | | | 24,349 | | |
Tax impact of adjustments(5)
|
| | | | 2,648 | | | | | | (4,397) | | | | | | 2,997 | | | | | | (3,675) | | |
Adjusted Net Income
|
| | | | 50,006 | | | | | | 34,287 | | | | | | 114,363 | | | | | | 85,242 | | |
Adjustments: | | | | | | ||||||||||||||||||||
Interest expense, net(6)
|
| | | | 29,716 | | | | | | 39,707 | | | | | | 60,217 | | | | | | 78,146 | | |
Remaining provision for income taxes
|
| | | | 5,110 | | | | | | 8,802 | | | | | | 17,493 | | | | | | 15,872 | | |
Adjusted Operating Income
|
| | | | 84,832 | | | | | | 82,796 | | | | | | 192,073 | | | | | | 179,260 | | |
Adjustments: | | | | | | ||||||||||||||||||||
Depreciation and amortization of property and equipment
|
| | | | 43,517 | | | | | | 38,530 | | | | | | 86,034 | | | | | | 79,632 | | |
Amortization of customer loyalty payments
|
| | | | 18,657 | | | | | | 17,687 | | | | | | 37,452 | | | | | | 34,261 | | |
Adjusted EBITDA
|
| | | $ | 147,006 | | | | | $ | 139,013 | | | | | $ | 315,559 | | | | | $ | 293,153 | | |
|
| | |
Three Months
Ended June 30, |
| |
Six Months
Ended June 30, |
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
2017
|
| |
2016
|
| ||||||||||||
Income (loss) per share – diluted
|
| | | $ | 0.28 | | | | | $ | (0.12) | | | | | $ | 0.72 | | | | | $ | 0.01 | | |
Per share adjustments to net income (loss) to determine Adjusted Income per Share – diluted
|
| | | | 0.12 | | | | | | 0.40 | | | | | | 0.19 | | | | | | 0.68 | | |
Adjusted Income per Share – diluted
|
| | | $ | 0.40 | | | | | $ | 0.28 | | | | | $ | 0.91 | | | | | $ | 0.69 | | |
|
| | |
Six Months Ended
June 30, |
| |||||||||
(in percentages)
|
| |
2017
|
| |
2016
|
| ||||||
Asia Pacific
|
| | | | 24 | | | | | | 22 | | |
Europe
|
| | | | 32 | | | | | | 33 | | |
Latin America and Canada
|
| | | | 5 | | | | | | 5 | | |
Middle East and Africa
|
| | | | 13 | | | | | | 13 | | |
International
|
| | | | 74 | | | | | | 73 | | |
United States
|
| | | | 26 | | | | | | 27 | | |
Travel Commerce Platform
|
| | | | 100 | | | | | | 100 | | |
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Net revenue
|
| | | $ | 612,107 | | | | | $ | 605,905 | | | | | $ | 6,202 | | | | | | 1 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
|
| | | | 369,708 | | | | | | 376,605 | | | | | | (6,897) | | | | | | (2) | | |
Selling, general and administrative
|
| | | | 114,901 | | | | | | 139,294 | | | | | | (24,393) | | | | | | (18) | | |
Depreciation and amortization
|
| | | | 53,648 | | | | | | 52,246 | | | | | | 1,402 | | | | | | 3 | | |
Total costs and expenses
|
| | | | 538,257 | | | | | | 568,145 | | | | | | (29,888) | | | | | | (5) | | |
Operating income
|
| | | | 73,850 | | | | | | 37,760 | | | | | | 36,090 | | | | | | 96 | | |
Interest expense, net
|
| | | | (32,943) | | | | | | (45,113) | | | | | | 12,170 | | | | | | 27 | | |
Gain on sale of a subsidiary
|
| | | | 1,217 | | | | | | — | | | | | | 1,217 | | | | | | * | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | (2,671) | | | | | | 2,671 | | | | | | 100 | | |
Income (loss) before income taxes
|
| | | | 42,124 | | | | | | (10,024) | | | | | | 52,148 | | | | | | * | | |
Provision for income taxes
|
| | | | (7,758) | | | | | | (4,405) | | | | | | (3,353) | | | | | | (76) | | |
Net income (loss)
|
| | | $ | 34,366 | | | | | $ | (14,429) | | | | | $ | 48,795 | | | | | | * | | |
|
| | |
Three Months Ended
June 30, |
| |
Change
|
|||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
|||||||||||
Air
|
| | | $ | 423,654 | | | | | $ | 425,861 | | | | | $ | (2,207) | | | | | | (1) |
Beyond Air
|
| | | | 160,107 | | | | | | 148,197 | | | | | | 11,910 | | | | | | 8 |
Travel Commerce Platform
|
| | | | 583,761 | | | | | | 574,058 | | | | | | 9,703 | | | | | | 2 |
Technology Services
|
| | | | 28,346 | | | | | | 31,847 | | | | | | (3,501) | | | | | | (11) |
Net revenue
|
| | | $ | 612,107 | | | | | $ | 605,905 | | | | | $ | 6,202 | | | | | | 1 |
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.76 | | | | | $ | 6.61 | | | | | $ | 0.15 | | | | | | 2 | | |
Reported Segments (in thousands)
|
| | | | 86,381 | | | | | | 86,807 | | | | | | (426) | | | | | | — | | |
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Asia Pacific
|
| | | $ | 141,725 | | | | | $ | 130,526 | | | | | $ | 11,199 | | | | | | 9 | | |
Europe
|
| | | | 180,594 | | | | | | 182,710 | | | | | | (2,116) | | | | | | (1) | | |
Latin America and Canada
|
| | | | 27,574 | | | | | | 28,245 | | | | | | (671) | | | | | | (2) | | |
Middle East and Africa
|
| | | | 77,912 | | | | | | 77,346 | | | | | | 566 | | | | | | 1 | | |
International
|
| | | | 427,805 | | | | | | 418,827 | | | | | | 8,978 | | | | | | 2 | | |
United States
|
| | | | 155,956 | | | | | | 155,231 | | | | | | 725 | | | | | | — | | |
Travel Commerce Platform
|
| | | $ | 583,761 | | | | | $ | 574,058 | | | | | $ | 9,703 | | | | | | 2 | | |
|
| | |
Segments (in thousands)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Three Months Ended
June 30, |
| |
Change
|
| |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| | | | | | | |
%
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| |||||||||||||||||||||
Asia Pacific
|
| | | | 17,697 | | | | | | 17,009 | | | | | | 688 | | | | | | 4 | | | | | $ | 8.01 | | | | | $ | 7.67 | | | | | $ | 0.34 | | | | | | 4 | | |
Europe
|
| | | | 19,864 | | | | | | 20,561 | | | | | | (697) | | | | | | (3) | | | | | $ | 9.09 | | | | | $ | 8.89 | | | | | $ | 0.20 | | | | | | 2 | | |
Latin America and Canada
|
| | | | 4,530 | | | | | | 4,524 | | | | | | 6 | | | | | | — | | | | | $ | 6.09 | | | | | $ | 6.24 | | | | | $ | (0.15) | | | | | | (2) | | |
Middle East and Africa
|
| | | | 9,441 | | | | | | 9,912 | | | | | | (471) | | | | | | (5) | | | | | $ | 8.25 | | | | | $ | 7.80 | | | | | $ | 0.45 | | | | | | 6 | | |
International
|
| | | | 51,532 | | | | | | 52,006 | | | | | | (474) | | | | | | (1) | | | | | $ | 8.30 | | | | | $ | 8.05 | | | | | $ | 0.25 | | | | | | 3 | | |
United States
|
| | | | 34,849 | | | | | | 34,801 | | | | | | 48 | | | | | | — | | | | | $ | 4.48 | | | | | $ | 4.46 | | | | | $ | 0.02 | | | | | | — | | |
Travel Commerce Platform
|
| | | | 86,381 | | | | | | 86,807 | | | | | | (426) | | | | | | — | | | | | $ | 6.76 | | | | | $ | 6.61 | | | | | $ | 0.15 | | | | | | 2 | | |
|
| | |
Three Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Commissions
|
| | | $ | 289,464 | | | | | $ | 292,714 | | | | | $ | (3,250) | | | | | | (1) | | |
Technology costs
|
| | | | 80,244 | | | | | | 83,891 | | | | | | (3,647) | | | | | | (4) | | |
Cost of revenue
|
| | | $ | 369,708 | | | | | $ | 376,605 | | | | | $ | (6,897) | | | | | | (2) | | |
|
| | |
Three Months Ended
June 30, |
| |
Change
|
|||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
|||||||||||
Workforce
|
| | | $ | 93,457 | | | | | $ | 88,536 | | | | | $ | 4,921 | | | | | | 6 |
Non-workforce
|
| | | | 20,593 | | | | | | 19,438 | | | | | | 1,155 | | | | | | 6 |
Sub-total
|
| | | | 114,050 | | | | | | 107,974 | | | | | | 6,076 | | | | | | 6 |
Non-core corporate costs
|
| | | | 851 | | | | | | 31,320 | | | | | | (30,469) | | | | | | (97) |
SG&A | | | | $ | 114,901 | | | | | $ | 139,294 | | | | | $ | (24,393) | | | | | | (18) |
|
| | |
Three Months Ended
June 30, |
| |
Change
|
|||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
|||||||||||
Depreciation on property and equipment
|
| | | $ | 43,517 | | | | | $ | 38,530 | | | | | $ | 4,987 | | | | | | 13 |
Amortization of acquired intangible assets
|
| | | | 10,131 | | | | | | 13,716 | | | | | | (3,585) | | | | | | (26) |
Total depreciation and amortization
|
| | | $ | 53,648 | | | | | $ | 52,246 | | | | | $ | 1,402 | | | | | | 3 |
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Net revenue
|
| | | $ | 1,262,870 | | | | | $ | 1,215,168 | | | | | $ | 47,702 | | | | | | 4 | | |
Costs and expenses | | | | | | ||||||||||||||||||||
Cost of revenue
|
| | | | 756,545 | | | | | | 739,282 | | | | | | 17,263 | | | | | | 2 | | |
Selling, general and administrative
|
| | | | 227,048 | | | | | | 253,771 | | | | | | (26,723) | | | | | | (11) | | |
Depreciation and amortization
|
| | | | 106,557 | | | | | | 104,487 | | | | | | 2,070 | | | | | | 2 | | |
Total costs and expenses
|
| | | | 1,090,150 | | | | | | 1,097,540 | | | | | | (7,390) | | | | | | (1) | | |
Operating income
|
| | | | 172,720 | | | | | | 117,628 | | | | | | 55,092 | | | | | | 47 | | |
Interest expense, net
|
| | | | (63,218) | | | | | | (100,008) | | | | | | 36,790 | | | | | | 37 | | |
Gain on sale of a subsidiary
|
| | | | 1,217 | | | | | | — | | | | | | 1,217 | | | | | | * | | |
Loss on early extinguishment of debt
|
| | | | — | | | | | | (2,671) | | | | | | 2,671 | | | | | | 100 | | |
Income before income taxes
|
| | | | 110,719 | | | | | | 14,949 | | | | | | 95,770 | | | | | | * | | |
Provision for income taxes
|
| | | | (20,490) | | | | | | (12,197) | | | | | | (8,293) | | | | | | (68) | | |
Net income
|
| | | $ | 90,229 | | | | | $ | 2,752 | | | | | $ | 87,477 | | | | | | * | | |
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Air
|
| | | $ | 898,129 | | | | | $ | 869,745 | | | | | $ | 28,384 | | | | | | 3 | | |
Beyond Air
|
| | | | 307,692 | | | | | | 283,199 | | | | | | 24,493 | | | | | | 9 | | |
Travel Commerce Platform
|
| | | | 1,205,821 | | | | | | 1,152,944 | | | | | | 52,877 | | | | | | 5 | | |
Technology Services
|
| | | | 57,049 | | | | | | 62,224 | | | | | | (5,175) | | | | | | (8) | | |
Net revenue
|
| | | $ | 1,262,870 | | | | | $ | 1,215,168 | | | | | $ | 47,702 | | | | | | 4 | | |
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
| | |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Travel Commerce Platform RevPas (in $)
|
| | | $ | 6.71 | | | | | $ | 6.52 | | | | | $ | 0.19 | | | | | | 3 | | |
Reported Segments (in thousands)
|
| | | | 179,578 | | | | | | 176,780 | | | | | | 2,798 | | | | | | 2 | | |
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Asia Pacific
|
| | | $ | 292,740 | | | | | $ | 259,021 | | | | | $ | 33,719 | | | | | | 13 | | |
Europe
|
| | | | 383,010 | | | | | | 377,557 | | | | | | 5,453 | | | | | | 1 | | |
Latin America and Canada
|
| | | | 56,356 | | | | | | 56,281 | | | | | | 75 | | | | | | — | | |
Middle East and Africa
|
| | | | 161,465 | | | | | | 150,796 | | | | | | 10,669 | | | | | | 7 | | |
International
|
| | | | 893,571 | | | | | | 843,655 | | | | | | 49,916 | | | | | | 6 | | |
United States
|
| | | | 312,250 | | | | | | 309,289 | | | | | | 2,961 | | | | | | 1 | | |
Travel Commerce Platform
|
| | | $ | 1,205,821 | | | | | $ | 1,152,944 | | | | | $ | 52,877 | | | | | | 5 | | |
|
| | |
Segments (in thousands)
|
| |
RevPas (in $)
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Six Months Ended
June 30, |
| |
Change
|
| |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||||||||||||||||||||
| | |
2017
|
| |
2016
|
| | | | | | | |
%
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| |||||||||||||||||||||
Asia Pacific
|
| | | | 36,905 | | | | | | 33,998 | | | | | | 2,907 | | | | | | 9 | | | | | $ | 7.93 | | | | | $ | 7.62 | | | | | $ | 0.31 | | | | | | 4 | | |
Europe
|
| | | | 43,361 | | | | | | 43,694 | | | | | | (333) | | | | | | (1) | | | | | $ | 8.83 | | | | | $ | 8.64 | | | | | $ | 0.19 | | | | | | 2 | | |
Latin America and Canada
|
| | | | 9,156 | | | | | | 9,074 | | | | | | 82 | | | | | | 1 | | | | | $ | 6.16 | | | | | $ | 6.20 | | | | | $ | (0.04) | | | | | | (1) | | |
Middle East and Africa
|
| | | | 18,917 | | | | | | 19,633 | | | | | | (716) | | | | | | (4) | | | | | $ | 8.54 | | | | | $ | 7.68 | | | | | $ | 0.86 | | | | | | 11 | | |
International
|
| | | | 108,339 | | | | | | 106,399 | | | | | | 1,940 | | | | | | 2 | | | | | $ | 8.25 | | | | | $ | 7.93 | | | | | $ | 0.32 | | | | | | 4 | | |
United States
|
| | | | 71,239 | | | | | | 70,381 | | | | | | 858 | | | | | | 1 | | | | | $ | 4.38 | | | | | $ | 4.39 | | | | | $ | (0.01) | | | | | | — | | |
Travel Commerce Platform
|
| | | | 179,578 | | | | | | 176,780 | | | | | | 2,798 | | | | | | 2 | | | | | $ | 6.71 | | | | | $ | 6.52 | | | | | $ | 0.19 | | | | | | 3 | | |
|
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
| ||||||||||||
Commissions
|
| | | $ | 592,253 | | | | | $ | 574,756 | | | | | $ | 17,497 | | | | | | 3 | | |
Technology costs
|
| | | | 164,292 | | | | | | 164,526 | | | | | | (234) | | | | | | — | | |
Cost of revenue
|
| | | $ | 756,545 | | | | | $ | 739,282 | | | | | $ | 17,263 | | | | | | 2 | | |
|
| | |
Six Months Ended
June 30, |
| |
Change
|
|||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
|||||||||||
Workforce
|
| | | $ | 178,832 | | | | | $ | 173,095 | | | | | $ | 5,737 | | | | | | 3 |
Non-workforce
|
| | | | 41,775 | | | | | | 43,899 | | | | | | (2,124) | | | | | | (5) |
Sub-total
|
| | | | 220,607 | | | | | | 216,994 | | | | | | 3,613 | | | | | | 2 |
Non-core corporate costs
|
| | | | 6,441 | | | | | | 36,777 | | | | | | (30,336) | | | | | | (82) |
SG&A | | | | $ | 227,048 | | | | | $ | 253,771 | | | | | $ | (26,723) | | | | | | (11) |
|
| | |
Six Months Ended
June 30, |
| |
Change
|
|||||||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |
%
|
|||||||||||
Depreciation on property and equipment
|
| | | $ | 86,034 | | | | | $ | 79,632 | | | | | $ | 6,402 | | | | | | 8 |
Amortization of acquired intangible assets
|
| | | | 20,523 | | | | | | 24,855 | | | | | | (4,332) | | | | | | (17) |
Total depreciation and amortization
|
| | | $ | 106,557 | | | | | $ | 104,487 | | | | | $ | 2,070 | | | | | | 2 |
|
(in $ thousands)
|
| |
June 30,
2017 |
| |||
Cash and cash equivalents
|
| | | $ | 216,513 | | |
Revolving credit facility availability
|
| | | | 116,818 | | |
| | |
Asset (Liability)
|
| | ||||||||||||||
(in $ thousands)
|
| |
June 30,
2017 |
| |
December 31,
2016 |
| |
Change
|
| |||||||||
Accounts receivable, net
|
| | | $ | 254,247 | | | | | $ | 218,224 | | | | | $ | 36,023 | | |
Accrued commissions and incentives
|
| | | | (308,704) | | | | | | (267,488) | | | | | | (41,216) | | |
Deferred revenue and prepaid incentives, net
|
| | | | (30,910) | | | | | | (32,741) | | | | | | 1,831 | | |
Cash and cash equivalents
|
| | | | 216,513 | | | | | | 139,938 | | | | | | 76,575 | | |
Accounts payable and employee related
|
| | | | (126,703) | | | | | | (144,657) | | | | | | 17,954 | | |
Accrued interest
|
| | | | (13,824) | | | | | | (15,215) | | | | | | 1,391 | | |
Current portion of long-term debt
|
| | | | (63,194) | | | | | | (63,558) | | | | | | 364 | | |
Taxes
|
| | | | 5,081 | | | | | | 9,618 | | | | | | (4,537) | | |
Other assets (liabilities), net
|
| | | | 15,440 | | | | | | (3,207) | | | | | | 18,647 | | |
Working Capital
|
| | | $ | (52,054) | | | | | $ | (159,086) | | | | | $ | 107,032 | | |
Consolidated Condensed Balance Sheets: | | | | | |||||||||||||||
Total current assets
|
| | | $ | 569,882 | | | | | $ | 442,251 | | | | | $ | 127,631 | | |
Total current liabilities
|
| | | | (621,936) | | | | | | (601,337) | | | | | | (20,599) | | |
Working Capital
|
| | | $ | (52,054) | | | | | $ | (159,086) | | | | | $ | 107,032 | | |
|
| | |
June 30,
2017 |
| |
December 31,
2016 |
| |
Change
|
| |||||||||
Accounts receivable, net (in $ thousands)
|
| | | $ | 254,247 | | | | | $ | 218,224 | | | | | $ | 36,023 | | |
Accounts receivable, net – Days Sales Outstanding (“DSO”)
|
| | | | 38 | | | | | | 39 | | | | | | (1) | | |
| | |
Six Months Ended
June 30, |
| |
Change
|
| ||||||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| |
$
|
| |||||||||
Cash provided by (used in): | | | | | |||||||||||||||
Operating activities
|
| | | $ | 178,607 | | | | | $ | 102,932 | | | | | $ | 75,675 | | |
Investing activities
|
| | | | (50,262) | | | | | | (59,994) | | | | | | 9,732 | | |
Financing activities
|
| | | | (52,552) | | | | | | (70,597) | | | | | | 18,045 | | |
Effect of exchange rate changes
|
| | | | 782 | | | | | | (245) | | | | | | 1,027 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | $ | 76,575 | | | | | $ | (27,904) | | | | | $ | 104,479 | | |
|
| | |
Six Months Ended
June 30, |
| |||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| ||||||
Cash additions to software developed for internal use
|
| | | $ | 35,214 | | | | | $ | 36,452 | | |
Cash additions to computer equipment and other
|
| | | | 11,615 | | | | | | 8,533 | | |
Total | | | | $ | 46,829 | | | | | $ | 44,985 | | |
|
| | |
Six Months Ended
June 30, |
| |||||||||
(in $ thousands)
|
| |
2017
|
| |
2016
|
| ||||||
Net cash provided by operating activities
|
| | | $ | 178,607 | | | | | $ | 102,932 | | |
Less: capital expenditures on property and equipment additions
|
| | | | (46,829) | | | | | | (44,985) | | |
Free Cash Flow
|
| | | $ | 131,778 | | | | | $ | 57,947 | | |
|
(in $ thousands)
|
| |
Interest
Rate |
| |
Maturity
|
| |
June 30,
2017 |
| |
December 31,
2016 |
| ||||||
Senior Secured Credit Agreement | | | | | | ||||||||||||||
Term loans
|
| | | | | ||||||||||||||
Dollar denominated(1)(2)(3)
|
| |
L+3.25%
|
| |
September 2021
|
| | | $ | 2,228,768 | | | | | $ | 2,236,157 | | |
Revolver borrowings
|
| | | | | ||||||||||||||
Dollar denominated
|
| |
L+4.75%
|
| |
September 2019
|
| | | | — | | | | | | — | | |
Capital leases and other indebtedness
|
| | | | | | | | | | 101,445 | | | | | | 108,611 | | |
Total debt
|
| | | | | | | | | | 2,330,213 | | | | | | 2,344,768 | | |
Less: cash and cash equivalents
|
| | | | | | | | | | (216,513) | | | | | | (139,938) | | |
Net Debt(4)
|
| | | | | | | | | $ | 2,113,700 | | | | | $ | 2,204,830 | | |
|
| | | | TRAVELPORT WORLDWIDE LIMITED | |
| Date: August 3, 2017 | | |
By:
/s/ Bernard Bot
Bernard Bot
Executive Vice President and Chief Financial Officer |
|
| Date: August 3, 2017 | | |
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 | | | Amendment No. 4 to Credit Agreement, dated as of July 31, 2017, among Travelport Finance (Luxembourg) S.a.r.l., as borrower, Travelport Limited, each Guarantor, the Revolving Credit Lenders and Goldman Sachs Bank USA, as Administrative Agent and Collateral Agent. | |
| 10.2 | | | Amendment No. 5 to Credit Agreement, dated as of August 2, 2017, among Travelport Finance (Luxembourg) S.a.r.l., as borrower, Travelport Limited, each Guarantor, the Term D Lenders and Goldman Sachs Bank USA, as Administrative Agent and Collateral Agent. | |
| 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 | |