PANAMA CITY, Panama, May 5, 2021 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2021 (1Q21). The terms "Copa Holdings" and "the Company" refer to the consolidated entity.  The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the first quarter of 2021 (1Q21).

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported a net loss of US$110.7 million for the quarter, or US$2.60 per share.  Excluding special items, the Company would have reported a net loss of US$95.1 million, or US$2.23 per share.  Special items for the quarter include a US$15.7 million unrealized mark-to-market loss related to the Company's convertible notes.
  • Copa Holdings reported an operating loss of US$77.1 million for the quarter.
  • Cash consumption, defined as cash disbursements less proceeds, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, averaged approximately US$23 million per month during the quarter. 
  • The Company ended the quarter with US$1.5 billion of available liquidity, consisting of approximately US$1.2 billion in cash, short-term and long-term investments, and committed and undrawn credit facilities of US$345 million.
  • The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion.
  • The Company's flight operations, measured in terms of available seat miles (ASMs), represented approximately 39% of those in the same period in 2019.
  • During the quarter, 4 Embraer 190 aircraft exited the fleet as part of a previously agreed sale to a third party.  As of March 31, 2021, there were 4 remaining Embraer 190 aircraft sold that are expected to leave during the second quarter. 
  • During the quarter, the Company took delivery of 6 Boeing 737 MAX 9.  Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage, Copa Holdings ended the quarter with a consolidated fleet of 81 aircraft – 68 Boeing 737-800s and 13 Boeing 737 MAX 9s, compared to a total fleet of 102 aircraft at the end of the first quarter of 2020.
  • During the quarter, Copa Airlines had an on-time performance of 95.0% and a flight-completion factor of 99.3%, once again positioning itself among the best in the industry.

Subsequent Events

  • In April, the Company delivered 1 Embraer 190 aircraft, out of 14 that were sold to a third party.

 

Consolidated Financial
& Operating Highlights

1Q21

1Q20

Variance vs. 1Q20

4Q20

Variance vs. 4Q20

1Q19

Variance vs. 1Q19

Revenue Passengers Carried (000s)

924

2,118

-56.4%

681

35.6%

2,620

-64.7%

RPMs (millions) 

1,716

4,473

-61.6%

1,259

36.3%

5,345

-67.9%

ASMs (millions) 

2,481

5,491

-54.8%

1,684

47.3%

6,415

-61.3%

Load Factor 

69.2%

81.5%

-12.3 p.p.

74.8%

-5.6 p.p.

83.3%

-14.1 p.p.

Yield (US$ Cents) 

10.1

12.8

-21.5%

11.7

-13.9%

12.1

-16.9%

PRASM (US$ Cents) 

7.0

10.5

-33.3%

8.8

-20.4%

10.1

-31.0%

RASM (US$ Cents) 

7.5

10.8

-31.0%

9.4

-20.6%

10.5

-28.6%

CASM (US$ Cents) 

10.6

9.0

17.1%

15.1

-29.7%

8.7

21.5%

CASM Excl. Fuel (US$ Cents) 

8.5

6.6

30.1%

13.4

-36.3%

6.1

40.5%

Fuel Gallons Consumed (millions) 

29.08

70.02

-58.5%

20.75

40.1%

81.2

-64.2%

Avg. Price Per Fuel Gallon (US$)

1.75

1.95

-9.9%

1.41

24.2%

2.09

-15.9%

Average Length of Haul (miles)

1,858

2,112

-12.0%

1,849

0.5%

2,040

-8.9%

Average Stage Length (miles)

1,256

1,308

-3.9%

1,211

3.7%

1,299

-3.3%

Departures

12,372

28,286

-56.3%

8,795

40.7%

33,329

-62.9%

Block Hours

38,851

93,568

-58.5%

26,870

44.6%

110,089

-64.7%

Average Aircraft Utilization (hours) (2)

6.6

10.7

-38.6%

5.2

26.8%

12

-43.9%

Operating Revenues (US$ millions) 

185.7

595.5

-68.8%

158.6

17.0%

672.2

-72.4%

Operating Profit (Loss) (US$ millions)

-77.1

98.7

-178.1%

-95.1

-18.9%

112.9

-168.3%

Adjusted Operating Profit (Loss) (US$ millions) (1)

-77.1

98.7

-178.1%

-91.5

-15.8%

112.9

-168.3%

Operating Margin 

-41.5%

16.6%

-58.1 p.p.

-59.9%

18.4 p.p.

16.8%

-58.3 p.p.

Adjusted Operating Margin (1)

-41.5%

16.6%

-58.1 p.p.

-57.7%

16.2 p.p.

16.8%

-58.3 p.p.

Net Profit (Loss) (US$ millions)

-110.7

74.3

-249.1%

-177.3

-37.5%

89.4

-223.8%

Adjusted Net Profit (Loss) (US$ millions) (1)

-95.1

74.3

-228.0%

-85.2

11.6%

89.4

-206.3%

Basic EPS (US$)

-2.60

1.75

-248.8%

-4.17

-37.6%

2.11

-223.5%

Adjusted Basic EPS (US$) (1)

-2.23

1.75

-227.8%

-2.00

11.4%

2.11

-206.1%

Shares for calculation of Basic EPS (000s) 

42,571

42,501

0.2%

42,511

0.1%

42,478

0.2%









(1) Excludes Special Items.  This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures.

(2) Average Aircraft Utilization is calculated based on the Company's active fleet, excluding aircraft in storage as well as those classified as assets held for sale.


FULL 1Q21 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:

https://copa.gcs-web.com/financial-information/quarterly-results

1Q21 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

 

Date:

May 6, 2021



Time:

11:00 AM US ET (10:00 AM Local Time)



Conference telephone number: 

877-293-5456 (US Domestic Callers)




707-287-9357 (International Callers)



Webcast:

https://copa.gcs-web.com/events-and-presentations



Speakers:

Pedro Heilbron, Chief Executive Officer




José Montero, Chief Financial Officer



 

About Copa Holdings
Copa Holdings is a leading Latin American provider of passenger and cargo services.  The Company, through its operating subsidiaries, provides service to 80 destinations in 33 countries in North, Central and South America and the Caribbean. For more information visit: www.copa.com. 

CONTACT: Copa Holdings S.A.
Investor Relations:
Ph: 011 507 304-2774
www.copa.com (IR section)

This release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations, and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings' filed disclosure documents and are, therefore, subject to change without prior notice.

CPA-G

Copa Holdings, S.A.















Income Statement - IFRS















(US$ Thousands)
































Unaudited


Unaudited


%


Unaudited


%


Unaudited


%



1Q21


1Q20


Change


4Q20


Change


1Q19


Change

Operating Revenues















Passenger revenue


173,095


574,650


-69.9%


147,535


17.3%


648,790


-73.3%

Cargo and mail revenue


7,956


13,017


-38.9%


7,243


9.9%


15,316


-48.1%

Other operating revenue


4,626


7,785


-40.6%


3,858


19.9%


8,063


-42.6%

Total Operating Revenue


185,677


595,453


-68.8%


158,636


17.0%


672,169


-72.4%
















Operating Expenses















Fuel


51,308


136,954


-62.5%


28,346


81.0%


170,163


-69.8%

Wages, salaries, benefits and other employees' expenses


54,575


110,289


-50.5%


63,599


-14.2%


113,662


-52.0%

Passenger servicing


5,586


21,890


-74.5%


4,180


33.6%


25,571


-78.2%

Airport facilities and handling charges


22,044


40,365


-45.4%


16,914


30.3%


45,362


-51.4%

Sales and distribution


21,652


42,011


-48.5%


18,646


16.1%


53,133


-59.2%

Maintenance, materials and repairs


19,727


27,144


-27.3%


33,221


-40.6%


28,047


-29.7%

Depreciation and amortization


59,450


66,375


-10.4%


67,850


-12.4%


68,187


-12.8%

Flight operations


9,410


23,731


-60.3%


5,925


58.8%


25,875


-63.6%

Other operating and administrative expenses


19,006


28,008


-32.1%


15,011


26.6%


29,297


-35.1%

Total Operating Expense


262,759


496,766


-47.1%


253,693


3.6%


559,296


-53.0%
















Operating Profit (Loss)


(77,081)


98,687


-178.1%


(95,057)


-18.9%


112,873


-168.3%
















Non-operating Income (Expense):















Finance cost


(17,818)


(11,085)


60.7%


(18,360)


-3.0%


(14,010)


27.2%

Finance income


2,853


6,320


-54.9%


3,571


-20.1%


5,954


-52.1%

Net change in fair value of derivatives


(15,663)


-


n/m


(88,532)


-82.3%


-


n/m

Gain (loss) on foreign currency fluctuations


(1,809)


(10,950)


-83.5%


2,361


-176.6%


(5,960)


-69.6%

Other non-operating income (expense)


(976)


(11)


n/m


1,026


-195.2%


(825)


18.4%

Total Non-Operating Income/(Expense)


(33,412)


(15,726)


112.5%


(99,934)


-66.6%


(14,841)


125.1%
















Profit (Loss) before taxes


(110,494)


82,961


-233.2%


(194,991)


-43.3%


98,032


-212.7%
















Income tax expense


239


8,687


-97.2%


(17,731)


-101.3%


8,600


-97.2%
















Net Profit (Loss)


(110,733)


74,273


-249.1%


(177,261)


-37.5%


89,431


-223.8%
















EPS















Basic


-2.60


1.75


-248.8%


-4.17


-37.6%


2.11


-223.5%
















Shares used for calculation:















Basic


42,570,983


42,501,338




42,510,573




42,477,761



 


Copa Holdings, S. A. and subsidiaries 



Consolidated statement of financial position 



(US$ Thousands)

March

December


2021

2020


 (Unaudited) 


 ASSETS 



 Current Assets 



Cash and cash equivalents

193,801

119,065

Short-term investments

898,453

770,816

Total cash, cash equivalents and short-term investments

1,092,254

889,881




Accounts receivable, net

68,436

63,206

Accounts receivable from related parties

1,042

1,429

Expendable parts and supplies, net

72,992

74,319

Prepaid expenses

27,556

30,473

Prepaid income tax

16,189

16,716

Other current assets

6,908

7,805


193,123

193,948

Assets held for sale 

115,303

135,542




TOTAL CURRENT ASSETS

1,400,679

1,219,371




Long-term investments

111,001

119,617

Long-term accounts receivable

1,054

1,054

Long-term prepaid expenses

5,680

6,066

Property and equipment, net

2,215,264

2,147,486

Right of use assets

193,553

214,279

Intangible, net

91,316

95,568

Deferred tax assets

35,413

35,595

Other Non-Current Assets

13,917

14,348

TOTAL NON-CURRENT ASSETS

2,667,199

2,634,013




TOTAL ASSETS

4,067,878

3,853,385




 LIABILITIES 



Loans and borrowings

157,393

127,946

Current portion of lease liability

81,309

83,605

Accounts payable

75,917

63,461

Accounts payable to related parties

4,538

2,970

Air traffic liability

475,084

470,695

Frequent flyer deferred revenue

92,992

91,213

Taxes Payable

18,267

13,400

Employee benefits obligations

28,912

33,995

Income tax payable

1,422

1,023

Other Current Liabilities

197

252

TOTAL CURRENT LIABILITIES

936,033

888,561




Loans and borrowings long-term

1,308,987

1,035,954

Lease Liability

126,436

146,905

Net employee defined benefit liabilities

14,524

14,332

Derivative financial instruments

261,223

245,560

Deferred tax Liabilities

20,862

22,190

Other long - term liabilities

225,642

216,325

TOTAL NON-CURRENT LIABILITIES

1,957,673

1,681,265




TOTAL LIABILITIES

2,893,705

2,569,825




 EQUITY 



 Issued Capital 



Class A - 33,998,370 issued and 31,543,037 outstanding

21,282

21,199

Class B common stock - 10,938,125

7,466

7,466

Additional Paid-In Capital

92,608

91,341

Treasury Stock

(136,388)

(136,388)

Retained Earnings

1,324,025

1,931,086

Net (loss) profit 

(110,733)

-                 607,062

Other comprehensive loss

(24,086)

(24,082)




TOTAL EQUITY

1,174,173

1,283,560




TOTAL EQUITY & LIABILITIES

4,067,878

3,853,385





Copa Holdings, S. A. and subsidiaries 







Consolidated Statement of Cash Flows







For the three months ended March 31, 







(In US$ thousands)



















2021


2020


2019











(Unaudited)


(Unaudited)


(Unaudited)

Cash flow (used in) from operating activities 


(892)


106,340


144,061

Cash flow (used in) from  investing activities 


(86,697)


19,795


(3,591)

Cash flow from (used in) financing activities 


162,325


55,058


(84,361)

Net increase in cash and cash equivalents 


74,736


181,193


56,109

Cash and cash equivalents at January 1


119,065


158,732


156,158

Cash and cash equivalents at March 31


$               193,801


$               339,925


$               212,267
















Short-term investments 



898,453


672,721


556,127

Long-term investments 



111,001


114,277


128,992

Total cash and cash equivalents and investments at March 31


$            1,203,255


$            1,126,923


$               897,386

















 

Copa Holdings, S.A.

NON-IFRS FINANCIAL MEASURE RECONCILIATION

This press release includes the following non-IFRS financial measures: Adjusted Operating Profit, Adjusted Net Profit, Adjusted Basic EPS and Monthly Cash Consumption. This supplemental information is presented because we believe it is a useful indicator of our operating performance and is useful in comparing our performance with other companies in the airline industry. These measures should not be considered in isolation, and should be considered together with comparable IFRS measures, in particular operating profit and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:

Reconciliation of Adjusted Operating Profit









and Adjusted Net Profit


1Q21


1Q20


4Q20


1Q19










Operating Profit as Reported


$        (77,081)


$          98,687


$        (95,057)


$        112,873

   Add: Fleet Impairment charges






$            4,400



   Add: Expected loss (gain) on Embraer assets held for sale






$             (877)



Adjusted Operating Profit


$        (77,081)


$          98,687


$        (91,533)


$        112,873










Net Profit as Reported


$      (110,733)


$          74,273


$      (177,261)


$          89,431

   Add: Fleet Impairment charges






$            4,400



   Add: Expected loss (gain) on Embraer assets held for sale






$             (877)



Add: Net change in fair value of derivatives


$          15,663




$          88,532



Adjusted Net Profit


$        (95,070)


$          74,273


$        (85,204)


$          89,431










Reconciliation of Adjusted Basic EPS


1Q21


1Q20


4Q20


1Q19










Adjusted Net Profit


$        (95,070)


$          74,273


$        (85,204)


$          89,431

Shares used for calculation of Basic EPS


42,571


42,501


42,511


42,478

Adjusted Basic Earnings per share (Adjusted Basic EPS)


$            (2.23)


$              1.75


$            (2.00)


$              2.11










Reconciliation of Monthly Cash Consumption for 2020 and 2021


1Q21


4Q20


3Q20


2Q20

Beginning Cash balance


$            1,009


$            1,006


$            1,143


$            1,127

Ending Cash balance


$            1,203


$            1,009


$            1,006


$            1,143

Net cashflows in the quarter


$               194


$                   4


$             (137)


$                 16

   Subtract: Proceeds from Convertible Notes Offering


$                 -


$                 -


$                 -


$               343

   Subtract: Net Proceeds from new Aircraft Financing


$               241


$                 -


$                 -


$                 -

   Subtract: Others proceeds (assets sold and other non-op proceeds)


$                 20


$                 23


$                 22


$                 -

   Add: Repayment of short term credit lines


$                 -


$                 -


$                 50


$                 95

Cash Consumption excluding extraordinary activities


$               (68)


$               (19)


$             (109)


$             (232)

Monthly Cash Consumption excluding extraordinary  activities


$               (23)


$                 (6)


$               (36)


$               (77)










 

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SOURCE Copa Holdings, S.A.

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