PANAMA CITY, Nov. 8, 2017 /PRNewswire/ -- Copa Holdings,
S.A. (NYSE: CPA), today announced financial results for the third
quarter of 2017 (3Q17). 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 2016 (3Q16).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported net income of US$103.8 million for 3Q17 or earnings per share
(EPS) of US$2.45, compared to net
income of US$74.0 million or earnings
per share of US$1.75 in 3Q16.
- Excluding special items, the Company would have reported an
adjusted net income of US$100.8
million, or adjusted EPS of US$2.38, compared to an adjusted net income of
US$55.3 million or adjusted EPS of
US$1.30 in 3Q16. Special items
include a non-cash gain of US$2.9
million in 3Q17 and US$19.2
million in 3Q16 related to the mark-to-market of fuel hedge
contracts.
- Operating income for 3Q17 came in at US$119.1 million, representing a 56% increase
over operating income of US$76.4
million in 3Q16, as a result of 13% additional capacity, a
2.4% increase in unit revenue per available seat mile (RASM), and a
3.2% decrease in unit costs. Operating margin for 3Q17 came
in at 18.1%, compared to an operating margin of 13.4% in
3Q16.
- Total revenues for 3Q17 increased 15.6% to US$657.2 million. Yield per passenger mile
increased 1.3% to 12.0 cents and RASM
came in at 10.6 cents, 2.4% above
3Q16.
- For 3Q17, consolidated passenger traffic grew 14.9% while
consolidated capacity grew 13.0%. As a result, consolidated load
factor for the quarter increased 1.5 percentage points to
85.7%.
- Operating cost per available seat mile (CASM) decreased 3.2%,
from 8.9 cents in 3Q16 to
8.6 cents in 3Q17. CASM
excluding fuel costs decreased 1.2%, from 6.4 in 3Q16 to
6.3 cents 3Q17.
- Cash, short-term and long-term investments ended 3Q17 at
US$971.5 million, representing 40% of
the last twelve months' revenues.
- Copa Airlines faced several operational challenges during the
quarter, including severe weather, natural disasters and other
external factors that affected the company´s financial results for
the quarter and the operation of its hub in Panama City. These events caused many
flight cancelations and delays; as a result, the airline´s
Completion Factor and On-Time Performance came in lower than usual,
at 98.5% and 82.9%, respectively.
Subsequent Events
- Copa Holdings will pay its fourth quarter dividend of
US$0.75 per share, on December 15, 2017, on all outstanding Class A and
Class B shares, to stockholders of record as of November 30, 2017.
|
|
|
|
|
|
|
|
|
Consolidated
Financial
& Operating Highlights
|
3Q17
|
3Q16
|
Variance vs.
3Q16
|
2Q17
|
Variance vs.
2Q17
|
|
|
Revenue Passengers
Carried ('000)
|
2,518
|
2,231
|
12.9%
|
2,262
|
11.3%
|
|
|
RPMs
(mm)
|
5,330
|
4,637
|
14.9%
|
4,766
|
11.8%
|
|
|
ASMs
(mm)
|
6,221
|
5,506
|
13.0%
|
5,796
|
7.3%
|
|
|
Load
Factor
|
85.7%
|
84.2%
|
1.5 p.p.
|
82.2%
|
3.4 p.p.
|
|
|
Yield
|
12.0
|
11.9
|
1.3%
|
11.8
|
2.1%
|
|
|
PRASM (US$
Cents)
|
10.3
|
10.0
|
3.1%
|
9.7
|
6.4%
|
|
|
RASM (US$
Cents)
|
10.6
|
10.3
|
2.4%
|
10.0
|
5.9%
|
|
|
CASM (US$
Cents)
|
8.6
|
8.9
|
-3.2%
|
8.5
|
1.2%
|
|
|
CASM Excl. Fuel (US$
Cents)
|
6.3
|
6.4
|
-1.2%
|
6.3
|
0.3%
|
|
|
Fuel Gallons Consumed
(Millions)
|
80.0
|
70.9
|
12.8%
|
74.1
|
7.9%
|
|
|
Avg. Price Per Fuel
Gallon (US$ Dollars)
|
1.82
|
1.98
|
-8.0%
|
1.77
|
3.3%
|
|
|
Average Length of
Haul (Miles)
|
2,117
|
2,079
|
1.8%
|
2,107
|
0.5%
|
|
|
Average Stage Length
(Miles)
|
1,300
|
1,192
|
9.1%
|
1,259
|
3.2%
|
|
|
Departures
|
32,593
|
30,737
|
6.0%
|
31,092
|
4.8%
|
|
|
Block
Hours
|
108,930
|
97,077
|
12.2%
|
102,435
|
6.3%
|
|
|
Average Aircraft
Utilization (Hours)
|
11.7
|
10.5
|
11.7%
|
11.2
|
4.6%
|
|
|
Operating Revenues
(US$ mm)
|
657.2
|
568.3
|
15.6%
|
578.1
|
13.7%
|
|
|
Operating Income (US$
mm)
|
119.1
|
76.4
|
55.9%
|
83.0
|
43.6%
|
|
|
Operating
Margin
|
18.1%
|
13.4%
|
4.7 p.p.
|
14.4%
|
3.7 p.p.
|
|
|
Net Income (US$
mm)
|
103.8
|
74.0
|
40.2%
|
63.0
|
64.8%
|
|
|
Adjusted Net Income
(US$ mm) (1)
|
100.8
|
55.3
|
82.4%
|
62.8
|
60.6%
|
|
|
EPS - Basic and
Diluted (US$)
|
2.45
|
1.75
|
40.0%
|
1.49
|
64.7%
|
|
|
Adjusted EPS - Basic
and Diluted (US$) (1)
|
2.38
|
1.30
|
82.2%
|
1.48
|
60.5%
|
|
|
# of Shares - Basic
and Diluted ('000)
|
42,430
|
42,374
|
0.1%
|
42,419
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted
Net Income and Adjusted EPS for 3Q17, 3Q16 and 2Q17 exclude
non-cash charges/gains associated with the mark-to-market of fuel
hedges and 3Q16 also excludes the impact of the Venezuelan currency
devaluations.
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|
|
Note:
Attached to this press release is a reconciliation of non-IFRS
financial measures to the comparable IFRS measures.
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FULL 3Q17 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
http://investor.shareholder.com/copa/results.cfm
3Q17 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
|
Nov 9,
2017
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Time:
|
11:00 AM US ET (11:00
AM Local Time)
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Conference
telephone number:
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877-293-5456 (US
Domestic Callers)
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707-287-9357 (International Callers)
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Webcast:
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http://investor.shareholder.com/copa/events.cfm
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Speakers:
|
Pedro Heilbron, Chief
Executive Officer
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José Montero, Chief
Financial Officer
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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 75 destinations in 31
countries in North, Central and South
America and the Caribbean
with one of the youngest and most modern fleets in the industry,
consisting of 101 aircraft: 80 Boeing 737NG aircraft and 21
EMBRAER-190s. 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
subject to change without prior notice
CPA-G
|
Copa Holdings,
S.A.
|
|
|
Income Statement -
IFRS
|
|
(US$
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
%
|
|
Unaudited
|
|
%
|
|
|
|
3Q17
|
|
3Q16*
|
|
Change
|
|
2Q17
|
|
Change
|
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
641,244
|
|
550,524
|
|
16.5%
|
|
561,696
|
|
14.2%
|
|
Cargo and mail
revenue
|
|
13,600
|
|
13,390
|
|
1.6%
|
|
13,994
|
|
-2.8%
|
|
Other operating
revenue
|
|
2,325
|
|
4,372
|
|
-46.8%
|
|
2,398
|
|
-3.0%
|
|
Total Operating
Revenue
|
|
657,169
|
|
568,286
|
|
15.6%
|
|
578,087
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
145,968
|
|
140,567
|
|
3.8%
|
|
130,878
|
|
11.5%
|
|
Wages, salaries,
benefits and other employees' expenses
|
|
103,775
|
|
92,039
|
|
12.8%
|
|
99,603
|
|
4.2%
|
|
Passenger
servicing
|
|
27,008
|
|
21,998
|
|
22.8%
|
|
22,883
|
|
18.0%
|
|
Airport facilities
and handling charges
|
|
45,222
|
|
40,705
|
|
11.1%
|
|
42,614
|
|
6.1%
|
|
Sales and
distribution
|
|
50,157
|
|
47,813
|
|
4.9%
|
|
48,942
|
|
2.5%
|
|
Maintenance,
materials and repairs
|
|
39,777
|
|
32,514
|
|
22.3%
|
|
27,404
|
|
45.2%
|
|
Depreciation and
amortization
|
|
41,847
|
|
35,525
|
|
17.8%
|
|
40,572
|
|
3.1%
|
|
Flight
operations
|
|
26,535
|
|
23,190
|
|
14.4%
|
|
25,999
|
|
2.1%
|
|
Aircraft rentals and
other rentals
|
|
33,382
|
|
34,454
|
|
-3.1%
|
|
33,614
|
|
-0.7%
|
|
Cargo and courier
expenses
|
|
1,801
|
|
1,565
|
|
15.0%
|
|
1,892
|
|
-4.8%
|
|
Other operating and
administrative expenses
|
|
22,569
|
|
21,494
|
|
5.0%
|
|
20,727
|
|
8.9%
|
|
Total Operating
Expense
|
|
538,041
|
|
491,865
|
|
9.4%
|
|
495,127
|
|
8.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
119,128
|
|
76,421
|
|
55.9%
|
|
82,960
|
|
43.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
Finance
cost
|
|
(8,639)
|
|
(9,682)
|
|
-10.8%
|
|
(8,938)
|
|
-3.3%
|
|
Finance
income
|
|
4,801
|
|
3,505
|
|
36.9%
|
|
4,249
|
|
13.0%
|
|
Gain (loss) on
foreign currency fluctuations
|
|
593
|
|
(352)
|
|
n/m
|
|
(2,858)
|
|
-120.7%
|
|
Net change in fair
value of derivatives
|
|
2,946
|
|
19,225
|
|
-84.7%
|
|
175
|
|
n/m
|
|
Other non-operating
(income) expense
|
|
(616)
|
|
(2,445)
|
|
-74.8%
|
|
(190)
|
|
224.7%
|
|
Total
Non-Operating Income/(Expense)
|
|
(916)
|
|
10,251
|
|
-108.9%
|
|
(7,561)
|
|
-87.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before
taxes
|
|
118,212
|
|
86,672
|
|
36.4%
|
|
75,399
|
|
56.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
14,416
|
|
12,654
|
|
13.9%
|
|
12,401
|
|
16.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Profit
|
|
103,796
|
|
74,018
|
|
40.2%
|
|
62,997
|
|
64.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS - Basic and
Diluted
|
|
2.45
|
|
1.75
|
|
40.0%
|
|
1.49
|
|
64.7%
|
|
Shares - Basic and
Diluted
|
|
42,429,841
|
|
42,374,430
|
|
0.1%
|
|
42,419,150
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* During 2017, the
Company implemented a business, planning and financial
consolidation system, which resulted in a new classification of the
chart of accounts. Prior periods have been reclassified for
ease of comparison.
|
|
|
|
Copa Holdings, S.
A. and subsidiaries
|
|
|
Balance Sheet -
IFRS
|
|
|
(US$
Thousands)
|
September
30
|
December
31
|
|
2017
|
2016
|
|
(Unaudited)
|
Audited
|
|
|
|
ASSETS
|
|
|
|
|
|
Current Assets
|
|
|
Cash and cash
equivalents
|
249,593
|
331,687
|
Restricted cash and
cash equivalents
|
-
|
-
|
Short-term
investments
|
565,994
|
483,002
|
Total cash, cash
equivalents and short-term investments
|
815,587
|
814,689
|
|
|
|
Accounts receivable,
net
|
141,173
|
113,408
|
Accounts receivable
from related parties
|
391
|
499
|
Expendable parts and
supplies, net
|
78,952
|
74,502
|
Prepaid
expenses
|
40,540
|
58,370
|
Other current
assets
|
8,487
|
7,650
|
TOTAL CURRENT
ASSETS
|
1,085,130
|
1,069,118
|
|
|
|
Long-term
investments
|
155,953
|
953
|
Long-term accounts
receivable
|
2,267
|
1,957
|
Long-term prepaid
expenses
|
29,102
|
26,398
|
Property and
equipment, net
|
2,780,271
|
2,623,682
|
Intangible,
net
|
77,275
|
69,502
|
Net pension
asset
|
4,495
|
8,826
|
Deferred tax
assets
|
17,225
|
18,339
|
Other Non-Current
Assets
|
31,592
|
27,064
|
TOTAL NON-CURRENT
ASSETS
|
3,098,180
|
2,776,721
|
|
|
|
TOTAL
ASSETS
|
4,183,310
|
3,845,839
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current Liabilities:
|
|
|
Current maturities of
long-term debt
|
261,167
|
222,718
|
Accounts
payable
|
109,732
|
104,590
|
Accounts payable to
related parties
|
11,432
|
8,680
|
Air traffic
liability
|
469,478
|
395,580
|
Frequent flyer
deferred revenue
|
42,977
|
35,368
|
Taxes and interest
payable
|
93,337
|
68,483
|
Employee benefits
obligations
|
42,991
|
41,707
|
Income tax
payable
|
2,845
|
1,401
|
Other Current
Liabilities
|
2,045
|
4,385
|
TOTAL CURRENT
LIABILITIES
|
1,036,004
|
882,912
|
|
|
|
Long-term
debt
|
918,642
|
961,414
|
Other long - term
liabilities
|
132,529
|
114,268
|
Deferred tax
Liabilities
|
53,493
|
44,974
|
TOTAL NON-CURRENT
LIABILITIES
|
1,104,664
|
1,120,656
|
|
|
|
TOTAL
LIABILITIES
|
2,140,668
|
2,003,568
|
|
|
|
EQUITY
|
|
|
Issued
Capital
|
|
|
Class A - 33,778,404
issued and 31,185,641 outstanding
|
21,030
|
20,988
|
Class B - 10,938,125
shares issued and outstanding
|
7,466
|
7,466
|
Additional Paid-In
Capital
|
71,123
|
64,986
|
Treasury
Stock
|
(136,388)
|
(136,388)
|
Retained
Earnings
|
1,812,092
|
1,552,547
|
Net Income
|
269,178
|
334,544
|
Other Comprehensive
Income
|
(1,859)
|
(1,872)
|
TOTAL
EQUITY
|
2,042,642
|
1,842,271
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
4,183,310
|
3,845,839
|
|
|
|
* During 2017, the
Company implemented a business, planning and financial
consolidation system, which resulted in a new classification of the
chart of accounts. Prior periods have been reclassified for
ease of comparison.
|
|
Copa Holdings, S.
A. and subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In US$
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash flow from
operating activities
|
|
|
|
|
|
|
|
|
522,527
|
|
384,822
|
|
236,743
|
|
Cash flow used in
investing activities
|
|
|
|
|
|
|
|
|
(344,088)
|
|
(170,057)
|
|
(39,658)
|
|
Cash flow used in
financing activities
|
|
|
|
|
|
|
|
|
(260,533)
|
|
(197,677)
|
|
(282,982)
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
|
|
|
|
|
|
(82,094)
|
|
17,088
|
|
(85,897)
|
|
Cash and cash
equivalents at January 1
|
|
|
|
|
|
|
|
|
331,687
|
|
204,715
|
|
207,437
|
|
Cash and cash
equivalents at September 30
|
|
|
|
|
|
|
|
|
$
249,593
|
|
$
221,803
|
|
$
121,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
|
|
|
|
|
|
|
|
565,994
|
|
540,502
|
|
484,242
|
|
Long-term investments
*
|
|
|
|
|
|
|
|
|
155,953
|
|
954
|
|
428,259
|
|
Restricted cash and
cash equivalents **
|
|
|
|
|
|
|
|
|
-
|
|
10,128
|
|
48,702
|
|
Total cash and
cash equivalents and investments at September 30
|
|
|
|
|
|
|
|
|
$
971,540
|
|
$
773,387
|
|
$
1,082,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Long-term
investments include $427 million at September 2015 of cash in
Venezuela.
|
|
** Restricted cash
corresponds to a margin calls to secure derivative financial
instruments transactions.
|
Copa Holdings, S.A.
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non IFRS financial
measures: CASM Excluding Fuel, Adjusted Net Income and Adjusted
EPS. 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 income and net income. The following is a
reconciliation of these non-IFRS financial measures to the
comparable IFRS measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Net Income
|
|
|
|
|
|
|
|
and Adjusted
EPS
|
|
3Q17
|
|
3Q16
|
|
2Q17
|
|
|
|
|
|
|
|
|
|
Net profit as
Reported
|
|
$103,796
|
|
$74,018
|
|
$62,997
|
|
|
|
|
|
|
|
|
|
Special Items
(adjustments):
|
|
|
|
|
|
|
|
Gain (loss) due to
devaluation of Venezuelan Bolivar
|
|
|
|
(484)
|
|
|
|
Net change in fair
value of derivatives
|
|
2,946
|
|
19,225
|
|
175
|
|
Adjusted Net
Income
|
|
$100,850
|
|
$55,278
|
|
$62,822
|
|
|
|
|
|
|
|
|
|
Shares used for
Computation (in thousands)
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
42,430
|
|
42,374
|
|
42,419
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share - Basic and Diluted
|
|
2.38
|
|
1.30
|
|
1.48
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Costs per ASM
|
|
|
|
|
|
|
|
Excluding Fuel
(CASM Excl. Fuel)
|
|
3Q17
|
|
3Q16
|
|
2Q17
|
|
|
|
|
|
|
|
|
|
Operating Costs per
ASM as Reported
|
|
8.6
|
|
8.9
|
|
8.5
|
|
Aircraft fuel per
ASM
|
|
(2.3)
|
|
(2.6)
|
|
(2.3)
|
|
Operating Costs per
ASM excluding fuel
|
|
6.3
|
|
6.4
|
|
6.3
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/copa-holdings-reports-net-income-of-1038-million-and-eps-of-245-for-the-third-quarter-of-2017-300552270.html
SOURCE Copa Holdings, S.A.