Sabre Corporation Shakes Up Board

Sabre Corporation (NASDAQ: SABR), a leading technology company powering the global travel industry, has announced changes to its board of directors. Elaine Paul has been elected to Sabre's board of directors, effective February 16th, while Zane Rowe and Rachel Gonzalez will retire from the company's board on the same date.

Sean Menke, Sabre's Executive Chair of the Board, expressed enthusiasm about Paul's appointment, stating, "We look forward to having Elaine as a member of Sabre's board of directors. Having served as the chief financial officer (CFO) of Lyft, Amazon Studios, and Hulu, Elaine brings strong financial acumen and expertise to our board, as well as significant leadership experience in technology-driven enterprises."

Paul brings decades of finance and strategy experience to the company's board, having held various finance leadership roles at major global technology and media companies. Prior to her role as CFO of Lyft, Paul served in the same capacity at Amazon Studios, a division of Amazon, for several years, and as the CFO of digital streaming service Hulu from 2013-2019. She also spent over two decades in finance and strategy roles at The Walt Disney Company.

With the departure of Rowe and Gonzalez and Paul's appointment, the size of Sabre's board has been reduced to eleven members.

Sabre Corporation is a leading software and technology company that powers the global travel industry, serving a wide range of travel companies including airlines, hoteliers, travel agencies, and other suppliers. The company provides retailing, distribution, and fulfillment solutions to help its customers operate more efficiently, drive revenue, and offer personalized traveler experiences. Through its leading travel marketplace, Sabre connects travel suppliers with buyers from around the globe.

The full 8-K submission can be accessed here.

2018 2019 2020 2021 2022 2023
Revenue (MM) $3,867 $3,975 $1,334 $1,689 $2,537 $2,852
Revenue Growth n/a 2.79% -66.44% 26.59% 50.22% 12.41%
Operating Margins 15% 9% -74% -39% -10% -2%
Net Margins 9% 4% -96% -55% -17% -21%
Net Income (MM) $338 $159 -$1,282 -$928 -$435 -$591
Net Interest Expense (MM) $157 $156 $226 $258 $295 $415
Depreciation & Amort. (MM) $413 $415 $364 $262 $185 $156
Earnings Per Share $1.22 $0.57 -$4.45 -$2.96 -$1.4 -$1.82
EPS Growth n/a -53.28% -880.7% 33.48% 52.7% -30.0%
Diluted Shares (MM) 278 276 290 321 327 345
Free Cash Flow (MM) $441 $466 -$836 -$469 -$346 -$86
Capital Expenditures (MM) $284 $115 $65 $54 $69 $85
Current Ratio 1.17 1.09 3.04 1.96 1.67 1.32
Total Debt (MM) $3,474 $3,425 $4,770 $4,782 $4,764 $4,825
Net Debt / EBITDA 3.04 3.84 -5.24 -9.43 -51.94 38.11

Sabre's financial statements include several red flags such as declining revenues and decreasing reinvestment in the business, declining EPS growth, and negative cash flows. Additionally, the firm has a highly leveraged balance sheet. Sabre has just enough current assets to cover current liabilities, as shown by its current ratio of 1.32.

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