PANAMA CITY, Aug. 4, 2021 /PRNewswire/ -- Copa Holdings,
S.A. (NYSE: CPA), today announced financial results for the second
quarter of 2021 (2Q21). 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 second quarter of 2019 (2Q19)
(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$28.1 million for the quarter or US$0.66 per share. Excluding special items,
the Company would have reported a net loss of US$16.2 million or US$0.38 per share. Special items include a
US$33.9 million unrealized
mark-to-market gain related to the Company's convertible notes and
a passenger revenue adjustment of US$10.4
million related to 2019 and 2020 sales.
- Copa Holdings reported an operating profit of US$8.7 million for the quarter. Excluding the
US$10.4 million passenger revenue
adjustment, the company would have reported an operating loss of
US$1.7 million.
- Cash accretion, defined as cash proceeds minus disbursements,
excluding extraordinary financing activities and asset sales but
including capital expenditures and payment of financial
obligations, averaged approximately US$21
million per month during 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$1.6 billion.
- The Company's flight operations, measured in terms of available
seat miles (ASMs), represented approximately 48% of the capacity
flown in the same period in 2019.
- During the quarter, 3 Embraer 190 aircraft exited the fleet as
part of a previously agreed sale to a third party. As of
June 30, 2021, there was one
remaining Embraer 190 aircraft pending to be delivered to the
buyer.
- Excluding the aircraft classified as assets held for sale, and
including aircraft in temporary storage, Copa Holdings ended the
quarter with a consolidated fleet of 81 aircraft – 68 Boeing
737-800s and 13 Boeing 737 MAX 9s, compared to a total fleet of 102
aircraft at the end of the first quarter of 2020.
- During the quarter, Copa Airlines had an on-time performance of
92.1% and a flight completion factor of 99.5%, once again
positioning itself amongst the best in the industry.
Subsequent Events
- In July, Copa Airlines' last remaining Embraer 190 aircraft was
delivered to its new owner.
- The Company entered into an agreement for the sale of 6
737-700s and has now decided to keep the remaining 6 737-700s.
Consolidated
Financial
& Operating Highlights
|
2Q21
|
2Q19
(3)
|
Variance vs.
2Q19
|
1Q21
|
Variance vs.
1Q21
|
Revenue Passengers
Carried (000s)
|
1,175
|
2,550
|
-53.9%
|
924
|
27.2%
|
RPMs
(millions)
|
2,268
|
5,249
|
-56.8%
|
1,716
|
32.1%
|
ASMs
(millions)
|
2,949
|
6,166
|
-52.2%
|
2,481
|
18.9%
|
Load
Factor
|
76.9%
|
85.1%
|
-8.2 p.p.
|
69.2%
|
7.7 p.p.
|
Yield (US$
Cents)
|
12.4
|
11.8
|
4.9%
|
10.1
|
23.0%
|
PRASM (US$
Cents)
|
9.5
|
10.1
|
-5.2%
|
7.0
|
36.7%
|
RASM (US$
Cents)
|
10.3
|
10.5
|
-1.4%
|
7.5
|
37.8%
|
CASM (US$
Cents)
|
10.0
|
9.1
|
9.8%
|
10.6
|
-5.4%
|
CASM Excl. Fuel (US$
Cents)
|
7.6
|
6.2
|
22.3%
|
8.5
|
-10.4%
|
Fuel Gallons Consumed
(millions)
|
35.3
|
79.31
|
-55.5%
|
29.1
|
21.4%
|
Avg. Price Per Fuel
Gallon (US$)
|
1.98
|
2.22
|
-10.9%
|
1.75
|
13.0%
|
Average Length of
Haul (miles)
|
1,930
|
2,058
|
-6.2%
|
1,858
|
3.9%
|
Average Stage Length
(miles)
|
1,194
|
1,279
|
-6.7%
|
1,256
|
-5.0%
|
Departures
|
15,366
|
32,676
|
-53.0%
|
12,372
|
24.2%
|
Block
Hours
|
46,426
|
106,425
|
-56.4%
|
38,851
|
19.5%
|
Average Aircraft
Utilization (hours) (2)
|
8.0
|
11.2
|
-29.1%
|
6.6
|
21.3%
|
Operating Revenues
(US$ millions)
|
304.3
|
645.1
|
-52.8%
|
185.7
|
63.9%
|
Operating Profit
(Loss) (US$ millions)
|
8.7
|
82.6
|
-89.4%
|
(77.1)
|
-111.3%
|
Adjusted Operating
Profit (Loss) (US$ millions) (1)
|
(1.7)
|
82.6
|
-102.0%
|
(77.1)
|
-97.8%
|
Operating
Margin
|
2.9%
|
12.8%
|
-9.9 p.p.
|
-41.5%
|
44.4 p.p.
|
Adjusted Operating
Margin (1)
|
-0.6%
|
12.8%
|
-13.4 p.p.
|
-41.5%
|
40.9 p.p.
|
Net Profit (Loss)
(US$ millions)
|
28.1
|
50.9
|
-44.8%
|
(110.7)
|
-125.4%
|
Adjusted Net Profit
(Loss) (US$ millions) (1)
|
(16.2)
|
50.9
|
-131.9%
|
(95.1)
|
-82.9%
|
Basic EPS
(US$)
|
0.66
|
1.20
|
-45.0%
|
(2.60)
|
-125.3%
|
Adjusted Basic EPS
(US$) (1)
|
(0.38)
|
1.20
|
-131.8%
|
(2.23)
|
-83.0%
|
Shares for
calculation of Basic EPS (000s)
|
42,651
|
42,478
|
0.4%
|
42,571
|
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.
|
(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 2Q21 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
2Q21 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
|
August 5,
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
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
|
|
Audited
|
|
%
|
|
Audited
|
|
%
|
|
|
2Q21
|
|
2Q19
|
|
Change
|
|
1Q21
|
|
Change
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
281,258
|
|
620,538
|
|
-54.7%
|
|
173,095
|
|
62.5%
|
Cargo and mail
revenue
|
|
16,689
|
|
16,464
|
|
1.4%
|
|
7,956
|
|
109.8%
|
Other operating
revenue
|
|
6,311
|
|
8,100
|
|
-22.1%
|
|
4,626
|
|
36.4%
|
Total Operating
Revenue
|
|
304,259
|
|
645,102
|
|
-52.8%
|
|
185,677
|
|
63.9%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
70,156
|
|
177,169
|
|
-60.4%
|
|
51,308
|
|
36.7%
|
Wages, salaries,
benefits and other employees' expenses
|
|
55,071
|
|
108,342
|
|
-49.2%
|
|
54,575
|
|
0.9%
|
Passenger
servicing
|
|
7,502
|
|
25,530
|
|
-70.6%
|
|
5,586
|
|
34.3%
|
Airport facilities
and handling charges
|
|
27,021
|
|
44,698
|
|
-39.5%
|
|
22,044
|
|
22.6%
|
Sales and
distribution
|
|
28,441
|
|
51,289
|
|
-44.5%
|
|
21,652
|
|
31.4%
|
Maintenance,
materials and repairs
|
|
17,773
|
|
31,235
|
|
-43.1%
|
|
19,727
|
|
-9.9%
|
Depreciation and
amortization
|
|
59,526
|
|
70,549
|
|
-15.6%
|
|
59,450
|
|
0.1%
|
Flight
operations
|
|
10,891
|
|
25,450
|
|
-57.2%
|
|
9,410
|
|
15.7%
|
Other operating and
administrative expenses
|
|
19,140
|
|
28,240
|
|
-32.2%
|
|
19,006
|
|
0.7%
|
Total Operating
Expense
|
|
295,523
|
|
562,502
|
|
-47.5%
|
|
262,759
|
|
12.5%
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
(Loss)
|
|
8,736
|
|
82,601
|
|
-89.4%
|
|
(77,081)
|
|
-111.3%
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
Finance
cost
|
|
(18,625)
|
|
(13,573)
|
|
37.2%
|
|
(17,818)
|
|
4.5%
|
Finance
income
|
|
2,745
|
|
6,041
|
|
-54.6%
|
|
2,853
|
|
-3.8%
|
Gain (loss) on
foreign currency fluctuations
|
|
764
|
|
(2,213)
|
|
-134.5%
|
|
(1,809)
|
|
-142.2%
|
Net change in fair
value of derivatives
|
|
33,898
|
|
-
|
|
n/m
|
|
(15,663)
|
|
-316.4%
|
Other non-operating
income (expense)
|
|
417
|
|
(2,115)
|
|
-119.7%
|
|
(976)
|
|
-142.7%
|
Total
Non-Operating Income/(Expense)
|
|
19,198
|
|
(11,859)
|
|
-261.9%
|
|
(33,412)
|
|
-157.5%
|
|
|
|
|
|
|
|
|
|
|
|
Profit (Loss)
before taxes
|
|
27,935
|
|
70,742
|
|
-60.5%
|
|
(110,494)
|
|
-125.3%
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(138)
|
|
19,876
|
|
-100.7%
|
|
239
|
|
-157.7%
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit
(Loss)
|
|
28,073
|
|
50,866
|
|
-44.8%
|
|
(110,733)
|
|
-125.4%
|
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.66
|
|
1.20
|
|
-45.0%
|
|
-2.60
|
|
-125.3%
|
|
|
|
|
|
|
|
|
|
|
|
Shares used for
calculation:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
42,650,595
|
|
42,478,415
|
|
|
|
42,570,983
|
|
|
Copa Holdings, S.
A. and subsidiaries
|
|
|
Consolidated
statement of financial position
|
|
|
(US$
Thousands)
|
June
|
December
|
|
2021
|
2020
|
|
(Unaudited)
|
|
ASSETS
|
|
|
Current
Assets
|
|
|
Cash and cash
equivalents
|
256,764
|
119,065
|
Short-term
investments
|
925,680
|
770,816
|
Total cash, cash
equivalents and short-term investments
|
1,182,444
|
889,881
|
|
|
|
Accounts receivable,
net
|
103,956
|
63,206
|
Accounts receivable
from related parties
|
1,383
|
1,429
|
Expendable parts and
supplies, net
|
70,867
|
74,319
|
Prepaid
expenses
|
25,444
|
30,473
|
Prepaid income
tax
|
14,264
|
16,716
|
Other current
assets
|
7,825
|
7,805
|
|
223,739
|
193,948
|
Assets held for
sale
|
34,157
|
135,542
|
|
|
|
TOTAL CURRENT
ASSETS
|
1,440,339
|
1,219,371
|
|
|
|
Long-term
investments
|
99,235
|
119,617
|
Long-term accounts
receivable
|
1,042
|
1,054
|
Long-term prepaid
expenses
|
6,554
|
6,066
|
Property and
equipment, net
|
2,255,792
|
2,147,486
|
Right of use
assets
|
178,103
|
214,279
|
Intangible,
net
|
88,031
|
95,568
|
Deferred tax
assets
|
37,854
|
35,595
|
Other Non-Current
Assets
|
15,136
|
14,348
|
TOTAL NON-CURRENT
ASSETS
|
2,681,748
|
2,634,013
|
|
|
|
TOTAL
ASSETS
|
4,122,088
|
3,853,385
|
|
|
|
LIABILITIES
|
|
|
Loans and
borrowings
|
153,515
|
127,946
|
Current portion of
lease liability
|
79,573
|
83,605
|
Accounts
payable
|
97,355
|
63,461
|
Accounts payable to
related parties
|
4,661
|
2,970
|
Air traffic
liability
|
538,768
|
470,695
|
Frequent flyer
deferred revenue
|
93,036
|
91,213
|
Taxes
Payable
|
29,587
|
13,400
|
Employee benefits
obligations
|
13,671
|
33,995
|
Income tax
payable
|
1,912
|
1,023
|
Other Current
Liabilities
|
3,801
|
252
|
TOTAL CURRENT
LIABILITIES
|
1,015,879
|
888,561
|
|
|
|
Loans and borrowings
long-term
|
1,283,447
|
1,035,954
|
Lease
Liability
|
112,003
|
146,905
|
Net employee defined
benefit liabilities
|
12,018
|
14,332
|
Derivative financial
instruments
|
227,325
|
245,560
|
Deferred tax
Liabilities
|
19,534
|
22,190
|
Other long - term
liabilities
|
247,668
|
216,325
|
TOTAL NON-CURRENT
LIABILITIES
|
1,901,994
|
1,681,265
|
|
|
|
TOTAL
LIABILITIES
|
2,917,874
|
2,569,825
|
|
|
|
EQUITY
|
|
|
Issued
Capital
|
|
|
Class A -
33,998,981 issued and 31,545,862 outstanding
|
21,284
|
21,199
|
Class B common stock
- 10,938,125
|
7,466
|
7,466
|
Additional Paid-In
Capital
|
94,588
|
91,341
|
Treasury
Stock
|
(136,388)
|
(136,388)
|
Retained
Earnings
|
1,324,025
|
1,931,086
|
Net loss
|
(82,660)
|
(607,062)
|
Other comprehensive
loss
|
(24,099)
|
(24,082)
|
|
|
|
TOTAL
EQUITY
|
1,204,214
|
1,283,560
|
|
|
|
TOTAL EQUITY &
LIABILITIES
|
4,122,088
|
3,853,385
|
|
|
|
Copa Holdings, S.
A. and subsidiaries
|
|
|
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
For the six months
ended June 30,
|
|
|
|
|
|
|
(In US$
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flow from (used
in) operating activities
|
|
149,669
|
|
(56,632)
|
|
331,143
|
Cash flow used in
investing activities
|
|
(119,776)
|
|
(48,009)
|
|
(8,691)
|
Cash flow from (used
in) financing activities
|
|
107,806
|
|
253,205
|
|
(252,469)
|
Net increase in
cash and cash equivalents
|
|
137,699
|
|
148,564
|
|
69,982
|
Cash and cash
equivalents at January 1
|
|
119,065
|
|
158,733
|
|
156,158
|
Cash and cash
equivalents at June 30
|
|
$
256,764
|
|
$
307,297
|
|
$
226,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
|
|
925,680
|
|
740,887
|
|
523,134
|
Long-term
investments
|
|
|
99,235
|
|
94,540
|
|
144,072
|
Total cash and
cash equivalents and investments at June 30
|
|
$
1,281,679
|
|
$
1,142,724
|
|
$
893,346
|
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
|
|
|
2Q21
|
|
|
2Q20
|
|
|
1Q21
|
|
|
2Q19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit as
Reported
|
|
$
|
8,736
|
|
$
|
(357,875)
|
|
$
|
(77,081)
|
|
$
|
82,601
|
|
Add:
Unredeemed Ticket Revenue provision reversal
|
|
$
|
(10,395)
|
|
$
|
12,341
|
|
|
|
|
|
|
|
Add:
Fleet Impairment loss
|
|
|
|
|
$
|
186,807
|
|
|
|
|
|
|
|
Add:
Expected loss (gain) on Embraer assets held for sale
|
|
|
|
|
$
|
50,048
|
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
$
|
(1,659)
|
|
$
|
(108,679)
|
|
$
|
(77,081)
|
|
$
|
82,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit as
Reported
|
|
$
|
28,073
|
|
$
|
(386,018)
|
|
$
|
(110,733)
|
|
$
|
50,866
|
|
Add:
Unredeemed Ticket Revenue provision reversal
|
|
$
|
(10,395)
|
|
$
|
12,341
|
|
|
|
|
|
|
|
Add:
Fleet Impairment loss
|
|
|
|
|
$
|
186,807
|
|
|
|
|
|
|
|
Add:
Expected loss (gain) on Embraer assets held for sale
|
|
|
|
|
$
|
50,048
|
|
|
|
|
|
|
|
Add: Net change in
fair value of derivatives
|
|
$
|
(33,898)
|
|
$
|
22,198
|
|
$
|
15,663
|
|
|
|
|
Adjusted Net
Profit
|
|
$
|
(16,220)
|
|
$
|
(114,624)
|
|
$
|
(95,070)
|
|
$
|
50,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Basic EPS
|
|
|
2Q21
|
|
|
2Q20
|
|
|
1Q21
|
|
|
2Q19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Profit
|
|
$
|
(16,220)
|
|
$
|
(114,624)
|
|
$
|
(95,070)
|
|
$
|
50,866
|
|
Shares used for
calculation of Basic EPS
|
|
|
42,651
|
|
|
42,512
|
|
|
42,571
|
|
|
42,478
|
|
Adjusted Basic
Earnings per share (Adjusted Basic EPS)
|
|
$
|
(0.38)
|
|
$
|
(2.70)
|
|
$
|
(2.23)
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Monthly Cash Accretion (Consumption) for 2020 and
2021
|
|
|
2Q21
|
|
|
1Q21
|
|
|
4Q20
|
|
|
3Q20
|
|
Beginning Cash
balance
|
|
$
|
1,203
|
|
$
|
1,009
|
|
$
|
1,006
|
|
$
|
1,143
|
|
Ending Cash
balance
|
|
$
|
1,282
|
|
$
|
1,203
|
|
$
|
1,009
|
|
$
|
1,006
|
|
Net cashflows in the
quarter
|
|
$
|
79
|
|
$
|
194
|
|
$
|
4
|
|
$
|
(137)
|
|
Subtract: Net Proceeds from new Aircraft Financing & Pre
Delivery Payments
|
|
$
|
(21)
|
|
$
|
241
|
|
$
|
-
|
|
$
|
-
|
|
Subtract: Others proceeds (assets sold and other non-op
proceeds)
|
|
$
|
36
|
|
$
|
20
|
|
$
|
23
|
|
$
|
22
|
|
Add:
Repayment of short term credit lines
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
50
|
|
Cash Consumption
excluding extraordinary activities
|
|
$
|
64
|
|
$
|
(68)
|
|
$
|
(19)
|
|
$
|
(109)
|
|
Monthly Cash
Accretion (Consumption) excluding extraordinary
activities
|
|
$
|
21
|
|
$
|
(23)
|
|
$
|
(6)
|
|
$
|
(36)
|
|
View original
content:https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-second-quarter-of-2021-301348782.html
SOURCE Copa Holdings, S.A.