PANAMA CITY, Panama, Feb. 9, 2022 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the fourth quarter of 2021 (4Q21) and full year 2021. 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 fourth quarter of 2019 (4Q19) (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$114.4 million for the quarter or US$2.69 per share. Excluding special items, the Company would have reported a net profit of US$84.1 million or US$1.98 per share.  Special items include an US$8.9 million unrealized mark-to-market loss related to the Company's convertible notes and a reversal of US$39.2 million in the Company's provision related to the return of leased aircraft.
  • Copa Holdings reported an operating profit of US$155.0 million for the quarter. Excluding the US$39.2 million reversal, the Company would have reported an operating profit of US$115.8 million and a 20.1% operating margin.
  • For full-year 2021, the Company reported a net profit of US$39.9 million or US$0.94 per share. Excluding special items, which included a reversal of US$39.2 million in the Company's provision related to the return of leased aircraft, a US$22.8 million unrealized mark-to-market loss related to the Company's convertible notes, and a passenger revenue adjustment of US$20.8 million corresponding to unredeemed coupons from 2019 and 2020 sales, Copa Holdings would have reported an adjusted net profit of US$2.7 million or US$0.06 per share.
  • For full-year 2021, the Company reported an operating profit of US$145.7 million. Excluding special items, the Company would have reported an operating profit of US$85.6 million and a 5.8% operating margin.
  • Capacity for 4Q21, measured in terms of available seat miles (ASMs), was 83.1% of the capacity flown in 4Q19.
  • Total revenues for 4Q21 came in at US$575.0 million, reaching 84.3% of 4Q19 revenues. Passenger revenues for 4Q21 reached 82.2% of 4Q19 levels, while 4Q21 cargo revenues were 61.2% higher than 4Q19. Passenger yield increased 1.0% to 12.7 cents and load factors decreased 1.8 percentage points to 83.5%, compared to 4Q19. Revenue per Available Seat Mile (RASM) came in at 11.3 cents, or 1.5% higher than 4Q19.  
  • Operating cost per available seat mile (CASM) in 4Q21, excluding special items (adjusted CASM) decreased 3.8% vs. 4Q19 to 9.0 cents. While adjusted CASM, excluding fuel, decreased 7.5% to 6.1 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, was US$84 million for the quarter.
  • The Company ended the quarter with US$1.5 billion in available liquidity, consisting of approximately US$1.2 billion in cash, short-term and long-term investments, and US$295 million in committed and undrawn credit facilities.
  • The Company closed the quarter with total debt, including lease liabilities, of US$1.6 billion.
  • During the quarter, the Company took delivery of one Boeing 737 MAX 9, completed the conversion of one Boeing 737-800 into a freighter, and decided to retain three Boeing 737-700s previously classified as assets held for sale.
  • Including 3 Boeing 737-700 aircraft currently in temporary storage and one Boeing 737-800 freighter, Copa Holdings ended the year with a consolidated fleet of 91 aircraft – 68 Boeing 737-800s, 14 Boeing 737 MAX 9s, and 9 Boeing 737-700s, compared to a fleet of 102 aircraft prior to the COVID-19 pandemic.
  • Copa Airlines had an on-time performance for the quarter of 90.0% and a flight completion factor of 99.54%, once again positioning the airline among the best in the industry.

Subsequent Events

  • In January, Copa Airlines was recognized by Cirium – for the eighth consecutive year – as the most on-time airline in Latin America in 2021. Copa Airlines' on-time performance of 91.1% for the year was the highest of any carrier in the Americas.
  • In January, the Company took delivery of one Boeing 737 MAX 9 aircraft, originally scheduled for December 2021.
  • Due to the recent surge in COVID-19 cases in Panama and Latin America, mainly driven by the Omicron variant, which impacted its crew availability, the Company canceled over 1,000 flights, reducing the 1Q22 published schedule by approximately 4%.

 

Consolidated Financial
& Operating Highlights

4Q21

4Q19 (3)

Variance vs. 4Q19

3Q21

Variance vs. 3Q21

FY21

FY19 (3)

Variance vs. FY19

Revenue Passengers Carried (000s)

2,214

2,633

-15.9%

1,823

21.5%

6,136

10,474

-41.4%

Revenue Passengers OnBoard (000)

3,369

3,838

-12.2%

2,852

18.1%

9,452

15,424

-38.7%

RPMs (millions) 

4,265

5,244

-18.7%

3,485

22.4%

11,734

21,303

-44.9%

ASMs (millions) 

5,109

6,149

-16.9%

4,396

16.2%

14,934

25,113

-40.5%

Load Factor 

83.5%

85.3%

-1.8 p.p.

79.3%

4.2 p.p.

78.6%

84.8%

-6.3 p.p.

Yield (US$ Cents) 

12.7

12.5

1.0%

12.0

5.8%

12.0

12.3

-1.9%

PRASM (US$ Cents) 

10.6

10.7

-1.1%

9.5

11.4%

9.5

10.4

-9.1%

RASM (US$ Cents) 

11.3

11.1

1.5%

10.1

11.2%

10.1

10.8

-6.2%

CASM (US$ Cents) 

8.2

10.8

-23.9%

8.8

-6.4%

9.1

9.4

-2.8%

Adjusted CASM (US$ Cents) (1)

9.0

9.3

-3.8%

8.8

2.4%

9.4

9.0

3.9%

CASM Excl. Fuel (US$ Cents) 

5.3

8.0

-33.8%

6.2

-14.7%

6.6

6.6

-0.9%

Adjusted CASM Excl. Fuel (US$ Cents) (1)

6.1

6.6

-7.5%

6.2

-2.4%

6.8

6.3

8.9%

Fuel Gallons Consumed (millions) 

61.0

78.9

-22.8%

52.0

17.1%

177.4

321.4

-44.8%

Avg. Price Per Fuel Gallon (US$)

2.43

2.16

12.5%

2.13

13.8%

2.14

2.16

-0.6%

Average Length of Haul (miles)

1,926

1,992

-3.3%

1,912

0.7%

1,912

2,034

-6.0%

Average Stage Length (miles)

1,254

1,279

-2.0%

1,213

3.4%

1,230

1,288

-4.5%

Departures

25,458

32,441

-21.5%

22,559

12.9%

75,755

131,819

-42.5%

Block Hours

80,710

105,620

-23.6%

69,308

16.5%

235,295

431,749

-45.5%

Average Aircraft Utilization (Hours) (2)

11.3

11.3

0.8%

10.7

6.4%

9.2

11.4

-19.7%

Operating Revenues (US$ millions) 

575.0

681.9

-15.7%

445.0

29.2%

1509.9

2707.4

-44.2%

Operating Profit (Loss) (US$ millions)

155.0

17.8

770.5%

59.0

162.6%

145.7

346.2

-57.9%

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

115.8

107.1

8.0%

48.6

138.1%

85.6

435.5

-80.3%

Operating Margin 

27.0%

2.6%

24.3 p.p.

13.3%

13.7 p.p.

9.6%

12.8%

-3.1 p.p.

Adjusted Operating Margin (1)

20.1%

15.7%

4.4 p.p.

11.2%

8.9 p.p.

5.8%

16.1%

-10.3 p.p.

Net Profit (Loss) (US$ millions)

114.4

2.7

4092.8%

8.2

1287.5%

39.9

247.0

-83.8%

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

84.1

92.1

-8.7%

29.9

180.8%

2.7

336.3

-99.2%

Basic EPS (US$)

2.69

0.06

4088.2%

0.19

1291.3%

0.94

5.81

-83.8%

Adjusted Basic EPS (US$) (1)

1.98

2.17

-8.8%

0.70

181.6%

0.06

7.92

-99.2%

Shares  for calculation of Basic EPS (000s) 

42,533

42,487

0.1%

42,649

-0.3%

42,533

42,487

0.1%

 

(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 4Q21 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:

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

4Q21 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

 

Date:

February 10, 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 several 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


Audited


%



4Q21


4Q19


Change

3Q21


Change

FY21


FY19


Change

Operating Revenues















Passenger revenue


540,571


657,940


-17.8%

417,466


29.5%

1,412,390


2,612,605


-45.9%

Cargo and mail revenue


25,849


16,033


61.2%

21,082


22.6%

71,577


62,460


14.6%

Other operating revenue


8,575


7,955


7.8%

6,451


32.9%

25,964


32,343


-19.7%

Total Operating Revenue


574,995


681,927


-15.7%

444,999


29.2%

1,509,930


2,707,409


-44.2%
















Operating Expenses















Fuel


149,057


171,314


-13.0%

112,658


32.3%

383,179


696,249


-45.0%

Wages, salaries, benefits and other employees' expenses


80,434


115,036


-30.1%

68,049


18.2%

258,128


450,438


-42.7%

Passenger servicing


12,204


24,798


-50.8%

10,576


15.4%

35,869


102,103


-64.9%

Airport facilities and handling charges


42,863


44,877


-4.5%

39,407


8.8%

131,335


181,959


-27.8%

Sales and distribution


43,706


53,222


-17.9%

36,077


21.1%

129,877


210,623


-38.3%

Maintenance, materials and repairs


(13,317)


37,648


-135.4%

24,008


-155.5%

48,191


127,562


-62.2%

Depreciation and amortization


59,828


70,478


-15.1%

55,702


7.4%

234,505


282,080


-16.9%

Flight operations


19,173


24,908


-23.0%

16,291


17.7%

55,766


102,806


-45.8%

Other operating and administrative expenses


26,057


32,506


-19.8%

23,222


12.2%

87,426


118,090


-26.0%

Fleet Impairment


-


89,334


-100.0%

-


0.0%

-


89,344


-100.0%

Total Operating Expense


420,005


664,123


-36.8%

385,989


8.8%

1,364,276


2,361,255


-42.2%
















Operating Profit (Loss)


154,989


17,804


770.5%

59,010


162.6%

145,655


346,154


-57.9%
















Non-operating Income (Expense)















Finance cost


(18,994)


(17,154)


10.7%

(18,615)


2.0%

(74,051)


(57,432)


28.9%

Finance income


2,571


6,289


-59.1%

2,679


-4.0%

10,849


24,405


-55.5%

Gain (loss) on foreign currency fluctuations


(2,508)


2,406


-204.3%

(2,620)


-4.3%

(6,174)


(15,408)


-59.9%

Net change in fair value of derivatives


(8,922)


-


-100.0%

(32,092)


-72.2%

(22,778)


-



Other non-operating income (expense)


(1,158)


(989)


17.1%

(1,573)


-26.4%

(3,291)


(4,279)


-23.1%

Total Non-Operating Income/(Expense)


(29,011)


(9,448)


207.1%

(52,220)


-44.4%

(95,445)


(52,715)


81.1%
















Profit (Loss) before taxes


125,978


8,356


1407.6%

6,790


1755.4%

50,209


293,439


-82.9%
















Income tax expense


(11,616)


(5,629)


106.4%

1,453


-899.7%

10,265


46,437


-77.9%
















Net Profit (Loss)


114,363


2,728


4092.8%

8,242


1287.5%

39,945


247,002


-83.8%
















EPS















Basic


2.69


0.06


4088.2%

0.19


1291.3%

0.94


5.81


-83.8%
















Shares used for calculation:















Basic


42,533,036


42,486,717



42,649,175



42,533,036


42,486,717



 


Copa Holdings, S. A. and subsidiaries 



Consolidated statement of financial position 



(US$ Thousands)




 December 2021 

 December 2020  

 ASSETS 

 (Unaudited)  

 (Audited)  

 Current Assets 



Cash and cash equivalents

211,081

119,065

Short-term investments

806,340

770,816

Total cash, cash equivalents and short-term investments

1,017,421

889,881




Accounts receivable, net

90,618

63,206

Accounts receivable from related parties

1,832

1,429

Expendable parts and supplies, net

74,778

74,319

Prepaid expenses

31,148

30,473

Prepaid income tax

882

16,716

Other current assets

6,054

7,805


205,312

193,948

Asset held for sale

-

135,542

TOTAL CURRENT ASSETS

1,222,733

1,219,371




Long-term investments

199,670

119,617

Long-term accounts receivable

(0)

1,054

Long-term prepaid expenses

22,783

6,066

Property and equipment, net

2,512,704

2,147,486

Right of use assets

166,328

214,279

Intangible, net

81,749

95,568

Deferred tax assets

28,417

35,595

Other Non-Current Assets

14,098

14,348

TOTAL NON-CURRENT ASSETS

3,025,749

2,634,013




TOTAL ASSETS

4,248,482

3,853,385




LIABILITIES



Loans and borrowings

196,602

127,946

Current portion of lease liability

73,917

83,605

Accounts payable

112,596

63,461

Accounts payable to related parties

7,948

2,970

Air traffic liability

557,331

470,695

Frequent flyer deferred revenue

95,114

91,213

Taxes Payable

32,599

13,400

Employee benefits obligations

32,767

33,995

Income tax payable

3,835

1,023

Other Current Liabilities

785

252

TOTAL CURRENT LIABILITIES

1,113,493

888,560




Loans and borrowings long-term

1,229,031

1,035,954

Lease Liability

104,734

146,905

Net Defined Benefit Liability

7,670

14,332

Derivative financial instruments

268,338

245,560

Deferred tax Liabilities

18,782

22,190

Other long - term liabilities

210,933

216,325




TOTAL NON-CURRENT LIABILITIES

1,839,487

1,681,265

TOTAL LIABILITIES

2,952,981

2,569,824




EQUITY



Issued Capital



Class A - 33,998,654  issued and 30,995,120 outstanding

21,290

21,199

Class B - 10,938,125 

7,466

7,466

Additional Paid-In Capital

98,348

91,341

Treasury Stock

(176,902)

(136,388)

Retained Earnings

1,324,025

1,931,086

Net profit (loss)

39,945

(607,062)

Other comprehensive income (loss) 

(18,670)

(24,082)




TOTAL EQUITY

1,295,501

1,283,561

TOTAL EQUITY LIABILITIES

4,248,482

3,853,385







Copa Holdings, S. A. and subsidiaries 







Consolidated Statement of Cash Flows







For the twelve months ended December 31, 







(In US$ thousands)

















2021


2020


2019










(Unaudited)


(Audited)


(Audited)

Cash flow from (used in) operating activities 


462,612


(39,515)


740,776

Cash flow used in investing activities 


(373,040)


(93,761)


(192,868)

Cash flow from (used in) financing activities 


2,444


93,609


(545,334)

Net increase (decrease) in cash and cash equivalents 


92,016


(39,667)


2,574

Cash and cash equivalents at January 1


119,065


158,732


156,158

Cash and cash equivalents at December 31


$               211,081


$               119,065


$               158,732















Short-term investments 


806,340


770,816


692,403

Long-term investments 


199,670


119,617


134,347

Total cash and cash equivalents and investments at December 31


$            1,217,091


$            1,009,498


$               985,482
















 


 

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


4Q21


4Q20


3Q21


4Q19


FY21


FY19
















Operating Profit as Reported


$   154,989


$   (95,057)


$     59,010


$     17,804


$   145,655


$   346,171


   Subtract: Unredeemed Ticket Revenue provision reversal






$     10,395




$     20,790




   Subtract: Leased Aircraft Return provision


$     39,217








$     39,217




   Add: Fleet Impairment loss




$       4,400




$     89,344




$     89,344


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




$        (877)










Adjusted Operating Profit


$   115,773


$   (91,533)


$     48,615


$   107,148


$     85,648


$   435,515
















Net Profit as Reported


$   114,363


$ (168,805)


$       8,242


$       2,728


$     39,945


$   247,002


   Subtract: Unredeemed Ticket Revenue provision reversal






$     10,395




$     20,790




   Subtract: Leased Aircraft Return provision


$     39,217








$     39,217




   Add: Fleet Impairment loss




$       4,400




$     89,344




$     89,344


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




$        (877)










   Add: Net change in fair value of derivatives


$       8,922


$     80,076


$     32,092




$     22,779




Adjusted Net Profit


$     84,068


$   (85,205)


$     29,939


$     92,072


$       2,717


$   336,346
















Reconciliation of Adjusted Basic EPS


4Q21


4Q20


3Q21


4Q19


FY21


FY19
















Adjusted Net Profit


$     84,068


$   (85,205)


$     29,939


$     92,072


$       2,717


$   336,346


Shares used for calculation of Basic EPS


42,533


42,511


42,649


42,487


42,508


42,478


Adjusted Basic Earnings per share (Adjusted Basic EPS)


$         1.98


$       (2.00)


$         0.70


$         2.17


$         0.06


$         7.92
















Reconciliation of Adjusted Operating Costs per ASM














Excluding Fuel (Adjusted CASM Excl. Fuel)


4Q21




3Q21


4Q19


FY21


FY19
















Operating Costs per ASM as Reported (in US$ Cents)


8.2




8.8


10.8


9.1


9.4


Return of leased aircraft provision per ASM (in US$ Cents)


(0.8)




-


-


(0.3)


-


Fleet Impairment per ASM (in US$ Cents)


-




-


1.5


-


0.4


Adjusted Operating Costs per ASM (in US$ Cents)


9.0




8.8


9.3


9.4


9.0
















Aircraft Fuel Cost per ASM  (in US$ Cents)


2.9




2.6


2.8


2.6


2.8


Adjusted Operating Costs per ASM excluding fuel  (in US$ Cents)


6.1




6.2


6.6


6.8


6.3
















Reconciliation of Monthly Cash Buildup (Burn) for 2021


4Q21


3Q21


2Q21


1Q21






Beginning Cash balance


$       1,289


$       1,282


$       1,203


$       1,009






Ending Cash balance


$       1,217


$       1,289


$       1,282


$       1,203






Net cashflows in the quarter


$          (72)


$              7


$            79


$          194






   Subtract: Proceeds from Lines of Credit


$            50


$             -


$             -


$             -






   Subtract: Net Proceeds from new Aircraft Financing minus Pre Delivery Payments


$        (181)


$          (57)


$          (21)


$          241






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


$            14


$            11


$            36


$            20






   Add: Share repurchase


$            39


$             -


$             -


$             -






Cash Buildup (Burn) excluding extraordinary activities


$            84


$            54


$            64


$          (68)




















 

 

Cision View original content:https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-fourth-quarter-and-full-year-2021-301479053.html

SOURCE Copa Holdings, S.A.

Copyright 2022 PR Newswire

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