PANAMA CITY, Panama, Nov. 17,
2021 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA),
today announced financial results for the third quarter of 2021
(3Q21). 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 third quarter of 2019 (3Q19) (which
the Company believes are more relevant than year-over-year
comparisons due to the significant impacts in 2020 of the COVID-19
pandemic).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported a net profit of US$8.2 million for the quarter or US$0.19 per share. Excluding special items, the
Company would have reported a net profit of US$29.9 million or US$0.70 per share. Special items include a
US$32.1 million unrealized
mark-to-market loss related to the Company's convertible notes and
a passenger revenue adjustment of (US$10.4)
million corresponding to unredeemed coupons from 2019 and
2020 sales.
- Copa Holdings reported an operating profit of US$59.0 million for the quarter and an operating
margin of 13.3%. Excluding the US$10.4
million passenger unredeemed coupon revenue adjustment, the
Company would have reported an operating profit of US$48.6 million and an 11.2% operating
margin.
- Operating cost per available seat mile (CASM) decreased 12.4%
vs. 2Q21 to 8.8 cents. While CASM,
excluding fuel costs, decreased 18.6% to 6.2
cents.
- Cash buildup, defined as cash proceeds minus disbursements,
excluding extraordinary financing activities and asset sales but
including capital expenditures and payment of financial
obligations, resulted in US$54
million for the quarter.
- The Company ended the quarter with US$1.6 billion of available liquidity, consisting
of approximately US$1.3 billion in
cash, short-term and long-term investments, and US$345 million of committed and undrawn credit
facilities.
- The Company closed the quarter with total debt, including lease
liabilities, of US$1.6 billion.
- Flight operations, measured in terms of available seat miles
(ASMs), represented 68.9% of the capacity flown over the same
period in 2019.
- During the quarter, the Company announced three new
destinations starting December 2021 —
Atlanta in the U.S. and
Armenia and Cucuta in Colombia.
- During the quarter, the Company exited the last Embraer 190 in
its fleet and delivered two Boeing 737-700s to their new
owner.
- Excluding the aircraft classified as assets held for sale, and
including aircraft in temporary storage, Copa Holdings ended the
quarter with a consolidated fleet of 87 aircraft – 68 Boeing
737-800s, 13 Boeing 737 MAX 9s, and 6 Boeing 737-700s, compared to
a fleet of 102 aircraft the Company operated prior to the COVID-19
pandemic.
- The Company agreed with Boeing to accelerate the delivery of 12
Boeing 737 MAX 9s from its current order, two in 2022 and the other
ten between 2023 and 2025.
- Copa Airlines had an on-time performance for the quarter of
89.4% and a flight completion factor of 99.84%, once again
positioning itself amongst the best in the industry.
Consolidated
Financial
& Operating Highlights
|
3Q21
|
3Q19
(3)
|
Variance
vs. 3Q19
|
2Q21
|
Variance
vs. 2Q21
|
Revenue Passengers
Carried (000s)
|
1,823
|
2,703
|
-32.6%
|
1,175
|
55.1%
|
RPMs
(millions)
|
3,485
|
5,466
|
-36.2%
|
2,268
|
53.7%
|
ASMs
(millions)
|
4,396
|
6,383
|
-31.1%
|
2,949
|
49.1%
|
Load
Factor
|
79.3%
|
85.6%
|
-6.4 p.p.
|
76.9%
|
2.4 p.p.
|
Yield (US$
Cents)
|
12.0
|
12.5
|
-4.5%
|
12.4
|
-3.4%
|
PRASM (US$
Cents)
|
9.5
|
10.7
|
-11.5%
|
9.5
|
-0.4%
|
RASM (US$
Cents)
|
10.1
|
11.1
|
-8.8%
|
10.3
|
-1.9%
|
CASM (US$
Cents)
|
8.8
|
9.0
|
-2.6%
|
10.0
|
-12.4%
|
CASM Excl. Fuel (US$
Cents)
|
6.2
|
6.2
|
-0.2%
|
7.6
|
-18.6%
|
Fuel Gallons Consumed
(millions)
|
52.0
|
82.0
|
-36.5%
|
35.3
|
47.4%
|
Avg. Price Per Fuel
Gallon (US$)
|
2.13
|
2.16
|
-1.0%
|
1.98
|
7.7%
|
Average Length of
Haul (miles)
|
1,912
|
2,022
|
-5.4%
|
1,930
|
-0.9%
|
Average Stage Length
(miles)
|
1,213
|
1,295
|
-6.3%
|
1,194
|
1.6%
|
Departures
|
22,559
|
33,373
|
-32.4%
|
15,366
|
46.8%
|
Block
Hours
|
69,308
|
109,614
|
-36.8%
|
46,426
|
49.3%
|
Average Aircraft
Utilization (Hours) (2)
|
10.7
|
11.5
|
-7.2%
|
8.0
|
33.7%
|
Operating Revenues
(US$ millions)
|
445.0
|
708.2
|
-37.2%
|
304.3
|
46.3%
|
Operating Profit
(Loss) (US$ millions)
|
59.0
|
132.9
|
-55.6%
|
8.7
|
575.5%
|
Adjusted Operating
Profit (Loss) (US$ millions) (1)
|
48.6
|
132.9
|
-63.4%
|
(1.7)
|
-3031.1%
|
Operating
Margin
|
13.3%
|
18.8%
|
-5.5 p.p.
|
2.9%
|
10.4 p.p.
|
Adjusted Operating
Margin (1)
|
11.2%
|
18.8%
|
-7.6 p.p.
|
-0.6%
|
11.8 p.p.
|
Net Profit (Loss)
(US$ millions)
|
8.2
|
104.0
|
-92.1%
|
28.1
|
-70.6%
|
Adjusted Net Profit
(Loss) (US$ millions) (1)
|
29.9
|
104.0
|
-71.2%
|
(16.2)
|
-284.6%
|
Basic EPS
(US$)
|
0.19
|
2.45
|
-92.1%
|
0.66
|
-70.6%
|
Adjusted Basic EPS
(US$) (1)
|
0.70
|
2.45
|
-71.3%
|
(0.38)
|
-284.6%
|
Shares for
calculation of Basic EPS (000s)
|
42,649
|
42,487
|
0.4%
|
42,651
|
0.0%
|
|
|
|
|
|
|
(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.
(3) The Company believes that comparisons with 2019
are more relevant than year-over-year comparisons due to the
significant impacts in 2020 of the COVID-19
pandemic.
|
FULL 3Q21 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
3Q21 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
|
November 18,
2021
|
|
|
Time:
|
11:00 AM US ET (11:00
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
countries in North, Central and South
America and the Caribbean.
For more information visit:
www.copaair.com.
CONTACT: Copa Holdings S.A.
Investor Relations:
Ph: 011 507 304-2774
www.copaair.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
|
|
%
|
|
|
3Q21
|
|
3Q19
|
|
Change
|
|
2Q21
|
|
Change
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
417,466
|
|
685,337
|
|
-39.1%
|
|
281,258
|
|
48.4%
|
Cargo and mail
revenue
|
|
21,082
|
|
14,647
|
|
43.9%
|
|
16,689
|
|
26.3%
|
Other operating
revenue
|
|
6,451
|
|
8,226
|
|
-21.6%
|
|
6,311
|
|
2.2%
|
Total Operating
Revenue
|
|
444,999
|
|
708,210
|
|
-37.2%
|
|
304,259
|
|
46.3%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
112,658
|
|
177,603
|
|
-36.6%
|
|
70,156
|
|
60.6%
|
Wages, salaries,
benefits and other employees' expenses
|
|
68,049
|
|
113,398
|
|
-40.0%
|
|
55,071
|
|
23.6%
|
Passenger
servicing
|
|
10,576
|
|
26,204
|
|
-59.6%
|
|
7,502
|
|
41.0%
|
Airport facilities
and handling charges
|
|
39,407
|
|
47,022
|
|
-16.2%
|
|
27,021
|
|
45.8%
|
Sales and
distribution
|
|
36,077
|
|
52,980
|
|
-31.9%
|
|
28,441
|
|
26.8%
|
Maintenance,
materials and repairs
|
|
24,008
|
|
30,632
|
|
-21.6%
|
|
17,773
|
|
35.1%
|
Depreciation and
amortization
|
|
55,702
|
|
72,876
|
|
-23.6%
|
|
59,526
|
|
-6.4%
|
Flight
operations
|
|
16,291
|
|
26,572
|
|
-38.7%
|
|
10,891
|
|
49.6%
|
Other operating and
administrative expenses
|
|
23,222
|
|
28,047
|
|
-17.2%
|
|
19,140
|
|
21.3%
|
Total Operating
Expense
|
|
385,989
|
|
575,334
|
|
-32.9%
|
|
295,523
|
|
30.6%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss)
|
|
59,010
|
|
132,876
|
|
-55.6%
|
|
8,736
|
|
575.5%
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
Finance
cost
|
|
(18,615)
|
|
(12,696)
|
|
46.6%
|
|
(18,625)
|
|
-0.1%
|
Finance
income
|
|
2,679
|
|
6,121
|
|
-56.2%
|
|
2,745
|
|
-2.4%
|
Gain (loss) on
foreign currency fluctuations
|
|
(2,620)
|
|
(9,641)
|
|
-72.8%
|
|
764
|
|
-443.1%
|
Net change in fair
value of derivatives
|
|
(32,092)
|
|
-
|
|
n/m
|
|
33,898
|
|
-194.7%
|
Other non-operating
income (expense)
|
|
(1,573)
|
|
(350)
|
|
349.1%
|
|
417
|
|
-477.6%
|
Total
Non-Operating Income/(Expense)
|
|
(52,220)
|
|
(16,567)
|
|
215.2%
|
|
19,198
|
|
-372.0%
|
|
|
|
|
|
|
|
|
|
|
|
Profit (Loss)
before taxes
|
|
6,790
|
|
116,309
|
|
-94.2%
|
|
27,935
|
|
-75.7%
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
1,453
|
|
(12,332)
|
|
-111.8%
|
|
138
|
|
953.0%
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit
(Loss)
|
|
8,242
|
|
103,978
|
|
-92.1%
|
|
28,073
|
|
-70.6%
|
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.19
|
|
2.45
|
|
-92.1%
|
|
0.66
|
|
-70.6%
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
calculation:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
42,649,175
|
|
42,509,959
|
|
|
|
42,650,595
|
|
|
Copa Holdings, S.
A. and subsidiaries
|
|
|
Consolidated
statement of financial position
|
|
|
(US$
Thousands)
|
|
|
|
September
2021
|
December
2020
|
ASSETS
|
(Unaudited)
|
(Audited)
|
Current
Assets
|
|
|
Cash and cash
equivalents
|
290,231
|
119,065
|
Short-term
investments
|
901,645
|
770,816
|
Total cash, cash
equivalents and short-term investments
|
1,191,876
|
889,881
|
|
|
|
Accounts receivable,
net
|
110,035
|
63,206
|
Accounts receivable
from related parties
|
1,562
|
1,429
|
Expendable parts and
supplies, net
|
71,419
|
74,319
|
Prepaid
expenses
|
25,650
|
30,473
|
Prepaid income
tax
|
632
|
16,716
|
Other current
assets
|
7,216
|
7,805
|
|
216,514
|
193,948
|
Asset held for
sale
|
22,243
|
135,542
|
TOTAL CURRENT
ASSETS
|
1,430,633
|
1,219,371
|
|
|
|
Long-term
investments
|
96,955
|
119,617
|
Long-term accounts
receivable
|
12
|
1,054
|
Long-term prepaid
expenses
|
22,688
|
6,066
|
Property and
equipment, net
|
2,306,626
|
2,147,486
|
Right of use
assets
|
183,354
|
214,279
|
Intangible,
net
|
84,530
|
95,568
|
Deferred tax
assets
|
36,432
|
35,595
|
Other Non-Current
Assets
|
14,788
|
14,348
|
TOTAL NON-CURRENT
ASSETS
|
2,745,385
|
2,634,013
|
|
|
|
TOTAL
ASSETS
|
4,176,018
|
3,853,385
|
|
|
|
LIABILITIES
|
|
|
Loans and
borrowings
|
154,140
|
127,946
|
Current portion of
lease liability
|
74,526
|
83,605
|
Accounts
payable
|
101,201
|
63,461
|
Accounts payable to
related parties
|
10,088
|
2,970
|
Air traffic
liability
|
553,252
|
470,695
|
Frequent flyer
deferred revenue
|
94,748
|
91,213
|
Taxes
Payable
|
34,200
|
13,400
|
Employee benefits
obligations
|
16,710
|
33,995
|
Income tax
payable
|
2,473
|
1,023
|
Other Current
Liabilities
|
2,606
|
252
|
TOTAL CURRENT
LIABILITIES
|
1,043,943
|
888,560
|
|
|
|
Loans and borrowings
long-term
|
1,253,536
|
1,035,954
|
Lease
Liability
|
122,692
|
146,905
|
Net Defined Benefit
Liability
|
12,343
|
14,332
|
Derivative financial
instruments
|
259,417
|
245,560
|
Deferred tax
Liabilities
|
18,104
|
22,190
|
Other long - term
liabilities
|
251,741
|
216,325
|
|
|
|
TOTAL NON-CURRENT
LIABILITIES
|
1,917,832
|
1,681,265
|
TOTAL
LIABILITIES
|
2,961,775
|
2,569,824
|
|
|
|
EQUITY
|
|
|
Issued
Capital
|
|
|
Class A - 33,998,654
issued and 31,552,671 outstanding
|
21,290
|
21,199
|
Class B -
10,938,125
|
7,466
|
7,466
|
Additional Paid-In
Capital
|
96,463
|
91,341
|
Treasury
Stock
|
(136,483)
|
(136,388)
|
Retained
Earnings
|
1,324,025
|
1,931,086
|
Net profit
(loss)
|
(74,418)
|
(607,062)
|
Other comprehensive
income (loss)
|
(24,099)
|
(24,082)
|
|
|
|
TOTAL
EQUITY
|
1,214,243
|
1,283,561
|
TOTAL EQUITY
LIABILITIES
|
4,176,018
|
3,853,385
|
|
|
|
Copa Holdings, S.
A. and subsidiaries
|
|
|
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
For the nine
months ended September 30,
|
|
|
|
|
|
|
(In US$
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flow from (used
in) operating activities
|
|
263,252
|
|
(75,298)
|
|
548,947
|
Cash flow used in
investing activities
|
|
(140,844)
|
|
(2,333)
|
|
(32,863)
|
Cash flow from (used
in) financing activities
|
|
48,758
|
|
141,162
|
|
(446,953)
|
Net increase in
cash and cash equivalents
|
|
171,166
|
|
63,531
|
|
69,131
|
Cash and cash
equivalents at January 1
|
|
119,065
|
|
158,732
|
|
156,158
|
Cash and cash
equivalents at September 30
|
|
$
290,231
|
|
$
222,263
|
|
$
225,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
|
901,645
|
|
644,137
|
|
536,084
|
Long-term
investments
|
|
96,956
|
|
139,503
|
|
124,169
|
Total cash and
cash equivalents and investments at September 30
|
$
1,288,832
|
|
$
1,005,903
|
|
$
885,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, Operating CASM Excluding Fuel, and Cash Buildup. 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
|
|
3Q21
|
|
3Q20
|
|
2Q21
|
|
3Q19
|
|
|
|
|
|
|
|
|
|
Operating Profit as
Reported
|
|
$
59,010
|
|
$
(106,966)
|
|
$
8,736
|
|
$
132,876
|
Subtract: Unredeemed Ticket Revenue provision reversal
|
|
$
10,395
|
|
|
|
$
10,395
|
|
|
Adjusted Operating
Profit
|
|
$
48,615
|
|
$
(106,966)
|
|
$
(1,659)
|
|
$
132,876
|
|
|
|
|
|
|
|
|
|
Net Profit as
Reported
|
|
$
8,242
|
|
$
(118,057)
|
|
$
28,073
|
|
$
103,978
|
Subtract: Unredeemed Ticket Revenue provision reversal
|
|
$
10,395
|
|
|
|
$
10,395
|
|
|
Add: Net
change in fair value of derivatives
|
|
$
32,092
|
|
$
(3,591)
|
|
$
(33,898)
|
|
|
Adjusted Net
Profit
|
|
$
29,939
|
|
$
(121,648)
|
|
$
(16,220)
|
|
$
103,978
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Basic EPS
|
|
3Q21
|
|
3Q20
|
|
2Q21
|
|
3Q19
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Profit
|
|
$
29,939
|
|
$
(121,648)
|
|
$
(16,220)
|
|
$
103,978
|
Shares used for
calculation of Basic EPS
|
|
42,649
|
|
42,510
|
|
42,651
|
|
42,487
|
Adjusted Basic
Earnings per share (Adjusted Basic EPS)
|
|
$
0.70
|
|
$
(2.86)
|
|
$
(0.38)
|
|
$
2.45
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Operating Costs per ASM
|
|
|
|
|
|
|
|
|
Excluding Fuel
(Adjusted CASM Excl. Fuel)
|
|
3Q21
|
|
|
|
2Q21
|
|
3Q19
|
|
|
|
|
|
|
|
|
|
Operating Costs per
ASM as Reported (in US$ Cents)
|
|
8.8
|
|
|
|
10.1
|
|
9.0
|
Aircraft fuel per
ASM (in US$ Cents)
|
|
(2.6)
|
|
|
|
(2.5)
|
|
(2.8)
|
Adjusted Operating
Costs per ASM excluding fuel (in US$ Cents)
|
|
6.2
|
|
|
|
7.6
|
|
6.2
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Monthly Cash Buildup (Burn) for 2020 and 2021
|
|
3Q21
|
|
2Q21
|
|
1Q21
|
|
4Q20
|
Beginning Cash
balance
|
|
$
1,282
|
|
$
1,203
|
|
$
1,009
|
|
$
1,006
|
Ending Cash
balance
|
|
$
1,289
|
|
$
1,282
|
|
$
1,203
|
|
$
1,009
|
Net cashflows in the
quarter
|
|
$
7
|
|
$
79
|
|
$
194
|
|
$
4
|
Subtract: Net Proceeds from new Aircraft Financing minus Pre
Delivery Payments
|
|
$
(57)
|
|
$
(21)
|
|
$
241
|
|
$
-
|
Subtract: Others proceeds (assets sold and other non-op
proceeds)
|
|
$
11
|
|
$
36
|
|
$
20
|
|
$
23
|
Cash Buildup
(Burn) excluding extraordinary activities
|
|
$
54
|
|
$
64
|
|
$
(68)
|
|
$
(19)
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-third-quarter-of-2021-301427178.html
SOURCE Copa Holdings, S.A.