PANAMA CITY, May 8, 2019 /PRNewswire/ -- Copa Holdings, S.A.
(NYSE: CPA), today announced financial results for the first
quarter of 2019 (1Q19). 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 2018 (1Q18).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported net profit of US$89.4 million for 1Q19 or earnings per share
(EPS) of US$2.11, as compared to
net profit of US$136.6 million
or earnings per share of US$3.22 in
1Q18.
- Operating profit for 1Q19 came in at US$112.9 million, representing a 23.6% decrease
from operating profit of US$147.6
million in 1Q18, as a result of a 7.7% decrease in unit
revenues (RASM), partly offset by a 3.2% improvement in unit costs
(CASM). Operating margin for 1Q19 came in at 16.8%, compared to an
operating margin of 20.6% in 1Q18.
- For 1Q19, consolidated passenger traffic grew 2.3% while
consolidated capacity grew 1.9%. As a result, consolidated load
factor for the quarter increased 0.4 percentage points to
83.3%.
- Total revenues for 1Q19 decreased 6.0% to US$672 million. Yield per passenger mile
decreased 8.8% to 12.1 cents and RASM
came in at 10.5 cents, or 7.7% lower
than 1Q18.
- Operating cost per available seat mile (CASM) decreased 3.2%,
from 9.0 cents in 1Q18 to
8.7 cents in 1Q19. CASM excluding
fuel costs decreased 2.9% from 6.2
cents in 1Q18 to 6.1 cents in
1Q19, mainly as a result of maintenance events related to aircraft
lease returns in 2018.
- Cash, short-term and long-term investments ended the quarter at
US$ 897.4 million, representing 34%
of the last twelve months' revenues.
- For 1Q19, Copa Airlines had an on-time performance of 93.0% and
a flight-completion factor of 99.8%, maintaining its position among
the best in the industry.
- Copa Holdings ended the quarter with a consolidated fleet of
105 aircraft – 6 Boeing 737MAX9s, 68 Boeing 737-800s, 14 Boeing
737-700s, and 17 Embraer-190s.
- The Company did not take delivery of the two B737-MAX9s that
were scheduled for the month of March due to the world-wide
grounding of the MAX fleet.
Subsequent Events
- Copa Holdings will pay its second quarterly dividend of
$0.65 per share on June 14, to all Class A and Class B shareholders
on record as of May 31, 2019.
Consolidated
Financial
& Operating Highlights
|
1Q19
|
1Q18*
|
Variance vs.
1Q18*
|
4Q18*
|
Variance vs.
4Q18*
|
Revenue Passengers
Carried ('000)
|
2,620
|
2,465
|
6.3%
|
2,554
|
2.6%
|
RPMs
(mm)
|
5,345
|
5,223
|
2.3%
|
5,335
|
0.2%
|
ASMs
(mm)
|
6,415
|
6,297
|
1.9%
|
6,445
|
-0.5%
|
Load
Factor
|
83.3%
|
83.0%
|
0.4 p.p.
|
82.8%
|
0.5 p.p.
|
Yield
|
12.1
|
13.3
|
-8.8%
|
11.8
|
2.5%
|
PRASM (US$
Cents)
|
10.1
|
11.0
|
-8.4%
|
9.8
|
3.2%
|
RASM (US$
Cents)
|
10.5
|
11.4
|
-7.7%
|
10.2
|
2.9%
|
CASM (US$
Cents)
|
8.7
|
9.0
|
-3.2%
|
12.1
|
-28.2%
|
Adjusted CASM (US$
Cents)
|
8.7
|
9.0
|
-3.2%
|
9.2
|
-5.4%
|
CASM Excl. Fuel (US$
Cents)
|
6.1
|
6.2
|
-2.9%
|
9.1
|
-33.3%
|
Adjusted CASM Excl.
Fuel (US$ cents) (1)
|
6.1
|
6.2
|
-2.9%
|
6.2
|
-1.7%
|
Fuel Gallons Consumed
(Millions)
|
81.2
|
80.1
|
1.4%
|
82.1
|
-1.1%
|
Avg. Price Per Fuel
Gallon (US$ Dollars)
|
2.09
|
2.16
|
-3.5%
|
2.38
|
-12.4%
|
Average Length of
Haul (Miles)
|
2,040
|
2,119
|
-3.7%
|
2,089
|
-2.3%
|
Average Stage Length
(Miles)
|
1,299
|
1,322
|
-1.7%
|
1,299
|
0.0%
|
Departures
|
33,329
|
32,339
|
3.1%
|
33,541
|
-0.6%
|
Block
Hours
|
110,089
|
108,635
|
1.3%
|
111,315
|
-1.1%
|
Average Aircraft
Utilization (Hours)
|
11.7
|
12.0
|
-2.2%
|
11.7
|
0.5%
|
Operating Revenues
(US$ mm)
|
672.2
|
715.0
|
-6.0%
|
656.1
|
2.5%
|
Operating Profit (US$
mm)
|
112.9
|
147.6
|
-23.6%
|
-126.4
|
n/m
|
Adjusted Operating
Profit (US$ mm) (1)
|
112.9
|
147.6
|
-23.6%
|
62.2
|
81.5%
|
Operating
Margin
|
16.8%
|
20.6%
|
-3.9 p.p.
|
-19.3%
|
36.1 p.p.
|
Adjusted Operating
Margin (1)
|
16.8%
|
20.6%
|
-3.9 p.p.
|
9.5%
|
7.3 p.p.
|
Net Profit (US$
mm)
|
89.4
|
136.6
|
-34.5%
|
-155.8
|
n/m
|
Adjusted Net Profit
(US$ mm) (1)
|
89.4
|
136.6
|
-34.5%
|
44.1
|
102.6%
|
EPS - Basic and
Diluted (US$)
|
2.11
|
3.22
|
-34.6%
|
-3.67
|
n/m
|
Adjusted EPS - Basic
and Diluted (US$) (1)
|
2.11
|
3.22
|
-34.6%
|
1.04
|
102.6%
|
# of Shares - Basic
and Diluted ('000)
|
42,478
|
42,439
|
0.1%
|
42,468
|
0.0%
|
|
|
|
|
|
|
(1)Adjusted CASM,
Adjusted CASM Excl. Fuel, Adjusted Operating Profit, Adjusted Net
Profit, Adjusted Operating Margin and Adjusted EPS for 4Q18,
exclude non-cash charges/gains associated with the Embraer 190
Fleet impairment and a currency translation
adjustment.
|
*Restated for the
retrospective adoption of IFRS16.
|
Note:
Attached to this press release is a reconciliation of non-IFRS
financial measures to the comparable IFRS measures.
|
FULL 1Q19 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
1Q19 EARNINGS
RESULTS CONFERENCE CALL AND WEBCAST
|
|
|
Date:
|
May 9,
2019
|
Time:
|
12:00 NOON 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 81
destinations in 33 countries in North, Central and South America and the Caribbean with one of the youngest and most
modern fleets in the industry, consisting of 105 aircraft: 82
Boeing 737NG aircraft, 6 Boeing 737 MAX9s and 17 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,
therefore, subject to change without prior notice.
CPA-G
Copa Holdings,
S.A.
|
Income Statement -
IFRS
|
(US$
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
%
|
|
Unaudited
|
|
%
|
|
|
1Q19
|
|
1Q18*
|
|
Change
|
|
4Q18*
|
|
Change
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
648,790
|
|
694,912
|
|
-6.6%
|
|
631,762
|
|
2.7%
|
Cargo and mail
revenue
|
|
15,316
|
|
14,337
|
|
6.8%
|
|
16,224
|
|
-5.6%
|
Other operating
revenue
|
|
8,063
|
|
5,775
|
|
39.6%
|
|
8,077
|
|
-0.2%
|
Total Operating
Revenue
|
|
672,169
|
|
715,024
|
|
-6.0%
|
|
656,063
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
170,163
|
|
173,957
|
|
-2.2%
|
|
196,230
|
|
-13.3%
|
Wages, salaries,
benefits and other employees' expenses
|
|
113,662
|
|
110,630
|
|
2.7%
|
|
114,394
|
|
-0.6%
|
Passenger
servicing
|
|
25,571
|
|
25,462
|
|
0.4%
|
|
26,284
|
|
-2.7%
|
Airport facilities
and handling charges
|
|
45,362
|
|
44,547
|
|
1.8%
|
|
48,514
|
|
-6.5%
|
Sales and
distribution
|
|
53,133
|
|
53,779
|
|
-1.2%
|
|
51,787
|
|
2.6%
|
Maintenance,
materials and repairs
|
|
28,047
|
|
30,757
|
|
-8.8%
|
|
27,486
|
|
2.0%
|
Depreciation and
amortization
|
|
68,187
|
|
68,934
|
|
-1.1%
|
|
66,478
|
|
2.6%
|
Flight
operations
|
|
25,875
|
|
27,664
|
|
-6.5%
|
|
27,922
|
|
-7.3%
|
Other operating and
administrative expenses
|
|
29,297
|
|
31,648
|
|
-7.4%
|
|
34,719
|
|
-15.6%
|
Fleet
Impairment
|
|
-
|
|
-
|
|
n/m
|
|
188,624
|
|
n/m
|
Total Operating
Expense
|
|
559,296
|
|
567,378
|
|
-1.4%
|
|
782,439
|
|
-28.5%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
112,873
|
|
147,646
|
|
-23.6%
|
|
(126,376)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
Finance
cost
|
|
(14,010)
|
|
(12,280)
|
|
14.1%
|
|
(12,791)
|
|
9.5%
|
Finance
income
|
|
5,954
|
|
5,248
|
|
13.5%
|
|
6,115
|
|
-2.6%
|
Gain (loss) on
foreign currency fluctuations
|
|
(5,960)
|
|
7,266
|
|
n/m
|
|
(18,210)
|
|
-67.3%
|
Other non-operating
income (expense)
|
|
(825)
|
|
496
|
|
n/m
|
|
(496)
|
|
66.3%
|
Total
Non-Operating Income/(Expense)
|
|
(14,841)
|
|
730
|
|
n/m
|
|
(25,383)
|
|
-41.5%
|
|
|
|
|
|
|
|
|
|
|
|
Profit before
taxes
|
|
98,032
|
|
148,375
|
|
-33.9%
|
|
(151,759)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
8,600
|
|
11,825
|
|
-27.3%
|
|
4,087
|
|
110.4%
|
|
|
|
|
|
|
|
|
|
|
|
Net
Profit
|
|
89,431
|
|
136,550
|
|
-34.5%
|
|
(155,846)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPS - Basic and
Diluted
|
|
2.11
|
|
3.22
|
|
-34.6%
|
|
-3.67
|
|
-157.4%
|
Shares - Basic and
Diluted
|
|
42,477,761
|
|
42,438,749
|
|
0.1%
|
|
42,468,402
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
*
Restated for retrospective adoption of IFRS 16
|
Copa Holdings, S.
A. and subsidiaries
|
Consolidated
statement of financial position
|
(US$
Thousands)
|
March
31
|
December
31
|
|
2019
|
2018
|
|
(Unaudited)
|
(Restated)
*
|
ASSETS
|
|
|
|
|
|
Current
Assets
|
|
|
Cash and cash
equivalents
|
212,267
|
156,158
|
Short-term
investments
|
556,127
|
566,200
|
Total cash, cash
equivalents and short-term investments
|
768,394
|
722,359
|
|
|
|
Accounts receivable,
net
|
157,101
|
115,831
|
Accounts receivable
from related parties
|
2,329
|
223
|
Expendable parts and
supplies, net
|
91,082
|
86,530
|
Prepaid
expenses
|
98,420
|
74,384
|
Prepaid income
tax
|
6,014
|
10,357
|
Other current
assets
|
37,959
|
54,387
|
TOTAL CURRENT
ASSETS
|
1,161,300
|
1,064,071
|
|
|
|
Long-term
investments
|
128,992
|
138,846
|
Long-term accounts
receivable
|
1,177
|
1,177
|
Long-term prepaid
expenses
|
25,608
|
25,637
|
Property and
equipment, net
|
2,778,265
|
2,701,322
|
Right of use
assets
|
356,987
|
361,993
|
Intangible,
net
|
104,938
|
101,168
|
Net pension
asset
|
6,053
|
5,091
|
Deferred tax
assets
|
17,489
|
16,463
|
Other Non-Current
Assets
|
33,966
|
33,899
|
TOTAL NON-CURRENT
ASSETS
|
3,453,475
|
3,385,596
|
|
|
|
TOTAL
ASSETS
|
4,614,775
|
4,449,667
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
Current maturities of
long-term debt
|
319,098
|
311,965
|
Current portion of
lease liability
|
101,382
|
102,452
|
Accounts
payable
|
110,251
|
129,851
|
Accounts payable to
related parties
|
35,675
|
14,674
|
Air traffic
liability
|
490,826
|
471,676
|
Frequent flyer
deferred revenue
|
70,507
|
67,814
|
Taxes and interest
payable
|
56,575
|
44,749
|
Employee benefits
obligations
|
37,860
|
42,890
|
Other Current
Liabilities
|
476
|
604
|
TOTAL CURRENT
LIABILITIES
|
1,222,652
|
1,186,674
|
|
|
|
Long-term
debt
|
1,038,050
|
975,283
|
Lease
Liability
|
269,597
|
273,231
|
Other long - term
liabilities
|
170,498
|
161,571
|
Deferred tax
Liabilities
|
47,246
|
49,309
|
TOTAL NON-CURRENT
LIABILITIES
|
1,525,390
|
1,459,395
|
|
|
|
TOTAL
LIABILITIES
|
2,748,042
|
2,646,069
|
|
|
|
EQUITY
|
|
|
Issued
Capital
|
|
|
Class A
-33,830,638 issued and 31,325,505 outstanding
|
21,133
|
21,087
|
Class B common stock
- 10,938,125
|
7,466
|
7,466
|
Additional Paid-In
Capital
|
81,675
|
80,041
|
Treasury
Stock
|
(136,388)
|
(136,388)
|
Retained
Earnings
|
1,807,605
|
1,835,619
|
Net
profit
|
89,431
|
-
|
Other comprehensive
loss
|
(4,191)
|
(4,227)
|
|
|
|
TOTAL
EQUITY
|
1,866,732
|
1,803,598
|
|
|
|
TOTAL EQUITY
LIABILITIES
|
4,614,775
|
4,449,667
|
|
|
|
*Restated for the
retrospective adoption of IFRS 16.
|
Copa Holdings, S.
A. and subsidiaries
|
Consolidated
Statement of Cash Flows
|
For the three
months ended March 31,
|
(In US$
thousands)
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flow from
operating activities
|
|
144,061
|
|
171,810
|
|
160,022
|
Cash flow used in
investing activities
|
|
(3,591)
|
|
(74,198)
|
|
(74,800)
|
Cash flow used in
financing activities
|
|
(84,361)
|
|
(139,820)
|
|
(147,013)
|
Net increase
(decrease) in cash and cash equivalents
|
|
56,109
|
|
(42,208)
|
|
(61,791)
|
Cash and cash
equivalents at January 1
|
|
156,158
|
|
238,792
|
|
331,687
|
Cash and cash
equivalents at March 31
|
|
$
212,267
|
|
$
196,584
|
|
$
269,896
|
|
|
|
|
|
|
|
Short-term
investments
|
|
556,127
|
|
650,110
|
|
570,497
|
Long-term
investments
|
|
128,992
|
|
155,313
|
|
954
|
Total cash and
cash equivalents and investments at March 31
|
|
$
897,386
|
|
$
1,002,007
|
|
$
841,347
|
Copa Holdings, S.A.
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non IFRS financial
measures: Adjusted Operating CASM Excluding Fuel, Adjusted
Operating Profit, Adjusted Net Profit, 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 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
|
Adjusted Net
Profit and Adjusted EPS
|
|
1Q19
|
|
1Q18*
|
|
4Q18*
|
|
|
|
|
|
|
|
Operating Profit as
Reported
|
|
$ 112,873
|
|
$ 147,646
|
|
$
(126,376)
|
Special Items
(adjustments):
|
|
|
|
|
|
|
Fleet
Impairment
|
|
|
|
|
|
$
188,624
|
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$ 112,873
|
|
$ 147,646
|
|
$
62,248
|
|
|
|
|
|
|
|
Net profit as
Reported
|
|
$
89,431
|
|
$ 136,550
|
|
$
(155,846)
|
Special Items
(adjustments):
|
|
|
|
|
|
|
Fleet
Impairment
|
|
|
|
|
|
$
188,624
|
Loss on foreign
currency fluctuations
|
|
|
|
|
|
$
11,364
|
Net change in fair
value of derivatives
|
|
$
-
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
Adjusted Net
Profit
|
|
$
89,431
|
|
$ 136,550
|
|
$
44,143
|
|
|
|
|
|
|
|
Shares used for
Computation (in thousands)
|
|
|
|
|
|
|
Basic and Diluted
|
|
42,478
|
|
42,439
|
|
42,468
|
|
|
|
|
|
|
|
Adjusted earnings per
share - Basic and Diluted
|
|
$
2.11
|
|
$
3.22
|
|
$
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Operating Costs per ASM
|
|
|
|
|
|
|
Excluding Fuel
(Adjusted CASM Excl. Fuel)
|
|
1Q19
|
|
1Q18*
|
|
4Q18*
|
|
|
|
|
|
|
|
Operating Costs per
ASM as Reported (in US$ Cents)
|
|
8.7
|
|
9.0
|
|
12.1
|
Fleet Impairment per
ASM (in US$ Cents)
|
|
|
|
|
|
(2.9)
|
Aircraft fuel per
ASM (in US$ Cents)
|
|
(2.7)
|
|
(2.8)
|
|
(3.0)
|
Adjusted Operating
Costs per ASM excluding fuel (in US$ Cents)
|
|
6.1
|
|
6.2
|
|
6.2
|
|
|
|
|
|
|
|
*
Restated for retrospective adoption of IFRS 16
|
View original
content:http://www.prnewswire.com/news-releases/copa-holdings-reports-net-profit-of-89-4-million-and-eps-of-2-11-for-the-first-quarter-of-2019--300846614.html
SOURCE Copa Holdings, S.A.