PANAMA CITY, Nov. 14, 2018 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the third quarter of 2018 (3Q18). 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 2017 (3Q17).
OPERATING AND FINANCIAL HIGHLIGHTS
Subsequent Events
Consolidated Financial | 3Q18 | 3Q17* | Variance | 2Q18 | Variance |
Revenue Passengers Carried ('000) | 2,591 | 2,518 | 2.9% | 2,458 | 5.4% |
RPMs (mm) | 5,587 | 5,330 | 4.8% | 5,384 | 3.8% |
ASMs (mm) | 6,629 | 6,221 | 6.6% | 6,446 | 2.8% |
Load Factor | 84.3% | 85.7% | -1.4 p.p. | 83.5% | 0.7 p.p. |
Yield | 11.6 | 12.0 | -3.3% | 11.4 | 2.3% |
PRASM (US$ Cents) | 9.8 | 10.3 | -4.8% | 9.5 | 3.2% |
RASM (US$ Cents) | 10.1 | 10.6 | -4.2% | 9.8 | 3.1% |
CASM (US$ Cents) | 9.0 | 8.6 | 4.3% | 9.0 | 0.8% |
CASM Excl. Fuel (US$ Cents) | 6.0 | 6.3 | -5.5% | 6.0 | -0.1% |
Fuel Gallons Consumed (Millions) | 84.2 | 80.0 | 5.3% | 81.7 | 3.2% |
Avg. Price Per Fuel Gallon (US$ Dollars) | 2.40 | 1.82 | 31.6% | 2.35 | 2.3% |
Average Length of Haul (Miles) | 2,156 | 2,117 | 1.9% | 2,190 | -1.6% |
Average Stage Length (Miles) | 1,331 | 1,300 | 2.4% | 1,331 | -0.1% |
Departures | 33,775 | 32,593 | 3.6% | 32,843 | 2.8% |
Block Hours | 114,009 | 108,916 | 4.7% | 110,893 | 2.8% |
Average Aircraft Utilization (Hours) | 12.3 | 11.7 | 4.4% | 12.1 | 1.6% |
Operating Revenues (US$ mm) | 672.4 | 658.7 | 2.1% | 634.1 | 6.0% |
Operating Income (US$ mm) | 74.3 | 120.7 | -38.4% | 57.1 | 30.2% |
Operating Margin | 11.0% | 18.3% | -7.3 p.p. | 9.0% | 2.0 p.p. |
Net Income (US$ mm) | 57.7 | 105.3 | -45.2% | 49.9 | 15.7% |
Adjusted Net Income (US$ mm) (1) | 57.7 | 102.4 | -43.6% | 49.9 | 15.7% |
EPS - Basic and Diluted (US$) | 1.36 | 2.48 | -45.2% | 1.18 | 15.7% |
Adjusted EPS - Basic and Diluted (US$) (1) | 1.36 | 2.41 | -43.6% | 1.18 | 15.7% |
# of Shares - Basic and Diluted ('000) | 42,469 | 42,430 | 0.1% | 42,447 | 0.1% |
(1)Adjusted Net Income and Adjusted EPS for 3Q17 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges.
* Restated for retrospective adoption of IFRS 15.
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
FULL 3Q18 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
http://investor.shareholder.com/copa/results.cfm
3Q18 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date: | November 15, 2018 |
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: | |
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 80 destinations in 32 countries in North, Central and South America and the Caribbean with one of the youngest and most modern fleets in the industry, consisting of 104 aircraft: 82 Boeing 737NGs, 3 Boeing 737 MAX 9s, and 19 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 | % | ||||||
3Q18 | 3Q17* | Change | 2Q18 | Change | ||||||
Operating Revenues | ||||||||||
Passenger revenue | 649,110 | 640,089 | 1.4% | 611,605 | 6.1% | |||||
Cargo and mail revenue | 15,919 | 13,600 | 17.1% | 16,003 | -0.5% | |||||
Other operating revenue | 7,375 | 4,979 | 48.1% | 6,528 | 13.0% | |||||
Total Operating Revenue | 672,405 | 658,668 | 2.1% | 634,136 | 6.0% | |||||
Operating Expenses | ||||||||||
Fuel | 203,121 | 145,968 | 39.2% | 192,474 | 5.5% | |||||
Wages, salaries, benefits and other employees' expenses | 109,814 | 103,775 | 5.8% | 108,449 | 1.3% | |||||
Passenger servicing | 26,487 | 27,008 | -1.9% | 26,113 | 1.4% | |||||
Airport facilities and handling charges | 47,415 | 45,222 | 4.8% | 45,945 | 3.2% | |||||
Sales and distribution | 51,832 | 50,126 | 3.4% | 52,760 | -1.8% | |||||
Maintenance, materials and repairs | 24,626 | 39,777 | -38.1% | 27,840 | -11.5% | |||||
Depreciation and amortization | 44,435 | 41,847 | 6.2% | 43,261 | 2.7% | |||||
Flight operations | 27,434 | 26,535 | 3.4% | 25,417 | 7.9% | |||||
Aircraft rentals and other rentals | 33,105 | 33,382 | -0.8% | 32,968 | 0.4% | |||||
Cargo and courier expenses | 2,139 | 1,801 | 18.8% | 2,046 | 4.6% | |||||
Other operating and administrative expenses | 27,705 | 22,569 | 22.8% | 19,787 | 40.0% | |||||
Total Operating Expense | 598,113 | 538,011 | 11.2% | 577,061 | 3.6% | |||||
Operating Profit | 74,292 | 120,657 | -38.4% | 57,076 | 30.2% | |||||
Non-operating Income (Expense): | ||||||||||
Finance cost | (8,954) | (8,639) | 3.6% | (9,181) | -2.5% | |||||
Finance income | 6,228 | 4,801 | 29.7% | 6,038 | 3.1% | |||||
Gain (loss) on foreign currency fluctuations | (2,571) | 593 | n/m | 3,583 | n/m | |||||
Net change in fair value of derivatives | - | 2,946 | n/m | - | n/m | |||||
Other non-operating income (expense) | 40 | (616) | n/m | (279) | n/m | |||||
Total Non-Operating Income/(Expense) | (5,257) | (916) | n/m | 162 | n/m | |||||
Profit before taxes | 69,035 | 119,741 | -42.3% | 57,237 | 20.6% | |||||
Income tax expense | 11,298 | 14,416 | -21.6% | 7,343 | 53.9% | |||||
Net Profit | 57,737 | 105,325 | -45.2% | 49,894 | 15.7% | |||||
EPS - Basic and Diluted | 1.36 | 2.48 | -45.2% | 1.18 | 15.7% | |||||
Shares - Basic and Diluted | 42,469,122 | 42,429,841 | 0.1% | 42,447,386 | 0.1% | |||||
* Restated for retrospective adoption of IFRS 15 |
Copa Holdings, S. A. and subsidiaries | ||
Balance Sheet - IFRS | ||
(US$ Thousands) | September 30 | December 31 |
2018 | 2017 | |
(Unaudited) | (Restated) * | |
ASSETS | ||
Current Assets | ||
Cash and cash equivalents | 170,731 | 238,792 |
Restricted cash and cash equivalents | - | - |
Short-term investments | 579,246 | 705,108 |
Total cash, cash equivalents and short-term investments | 749,977 | 943,900 |
Accounts receivable, net | 117,775 | 115,323 |
Accounts receivable from related parties | 1,510 | 318 |
Expendable parts and supplies, net | 93,294 | 81,825 |
Prepaid expenses | 77,032 | 45,421 |
Other current assets | 11,924 | 11,701 |
TOTAL CURRENT ASSETS | 1,051,512 | 1,198,488 |
Long-term investments | 165,856 | 65,953 |
Long-term accounts receivable | 2,141 | 2,444 |
Long-term prepaid expenses | 26,189 | 26,130 |
Property and equipment, net | 2,972,969 | 2,825,904 |
Intangible, net | 93,453 | 81,115 |
Net pension asset | 4,879 | 3,185 |
Deferred tax assets | 14,715 | 18,572 |
Other Non-Current Assets | 33,638 | 31,140 |
TOTAL NON-CURRENT ASSETS | 3,313,840 | 3,054,443 |
TOTAL ASSETS | 4,365,351 | 4,252,931 |
LIABILITIES AND EQUITY | ||
Current Liabilities: | ||
Current maturities of long-term debt | 268,994 | 298,462 |
Accounts payable | 125,834 | 116,554 |
Accounts payable to related parties | 10,551 | 12,880 |
Air traffic liability | 489,499 | 477,168 |
Frequent flyer deferred revenue | 64,175 | 50,312 |
Taxes and interest payable | 27,949 | 81,440 |
Accrued expenses payable | 44,263 | 60,321 |
Income tax payable | - | 3,700 |
Other Current Liabilities | 64 | 1,156 |
TOTAL CURRENT LIABILITIES | 1,031,328 | 1,101,993 |
Long-term debt | 918,688 | 876,119 |
Other long - term liabilities | 130,805 | 123,182 |
Deferred tax Liabilities | 46,586 | 50,628 |
TOTAL NON-CURRENT LIABILITIES | 1,096,079 | 1,049,929 |
TOTAL LIABILITIES | 2,127,407 | 2,151,922 |
EQUITY | ||
Issued Capital | ||
Class A - 33,817,684 issued and 31,257,214 outstanding | 21,087 | 21,038 |
Class B - 10,938,125 shares issued and outstanding | 7,466 | 7,466 |
Additional Paid-In Capital | 78,249 | 72,945 |
Treasury Stock | (136,388) | (136,388) |
Retained Earnings | 2,027,386 | 1,775,426 |
Net Income | 244,103 | 364,410 |
Other Comprehensive Income | (3,960) | (3,888) |
TOTAL EQUITY | 2,237,944 | 2,101,009 |
TOTAL LIABILITIES AND EQUITY | 4,365,351 | 4,252,931 |
* Restated for retrospective adoption of IFRS 15 |
Copa Holdings, S. A. and subsidiaries | |||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||
For the nine months ended September 30, | |||||||||||||
(In US$ thousands) | |||||||||||||
2018 | 2017 | 2016 | |||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
Cash flow from operating activities | 298,084 | 522,527 | 384,822 | ||||||||||
Cash flow used in investing activities | (129,541) | (344,088) | (170,057) | ||||||||||
Cash flow used in financing activities | (236,604) | (260,533) | (197,677) | ||||||||||
Net (decrease) increase in cash and cash equivalents | (68,061) | (82,094) | 17,088 | ||||||||||
Cash and cash equivalents at January 1 | 238,792 | 331,687 | 204,715 | ||||||||||
Cash and cash equivalents at September 30 | $ 170,731 | $ 249,593 | $ 221,803 | ||||||||||
Short-term investments | 579,246 | 565,994 | 540,502 | ||||||||||
Long-term investments | 165,856 | 155,953 | 954 | ||||||||||
Restricted cash and cash equivalents | - | - | 10,128 | ||||||||||
Total cash and cash equivalents and investments at September 30 | $ 915,833 | $ 971,540 | $ 773,387 | ||||||||||
* Restricted cash corresponds to 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 | 3Q18 | 3Q17* | 2Q18 | |||
Net profit as Reported | $ 57,737 | $ 105,325 | $ 49,894 | |||
Special Items (adjustments): | ||||||
Net change in fair value of derivatives | $ - | $ (2,946) | $ - | |||
Adjusted Net Income | $ 57,737 | $ 102,379 | $ 49,894 | |||
Shares used for Computation (in thousands) | ||||||
Basic and Diluted | $ 42,469 | $ 42,430 | $ 42,447 | |||
Adjusted earnings per share - Basic and Diluted | $ 1.36 | $ 2.41 | $ 1.18 | |||
Reconciliation of Operating Costs per ASM | ||||||
Excluding Fuel (CASM Excl. Fuel) | 3Q18 | 3Q17* | 2Q18 | |||
Operating Costs per ASM as Reported (in US$ Cents) | 9.0 | 8.6 | 9.0 | |||
Aircraft fuel per ASM (in US$ Cents) | (3.1) | (2.3) | (3.0) | |||
Operating Costs per ASM excluding fuel (in US$ Cents) | 6.0 | 6.3 | 6.0 | |||
* Restated for retrospective adoption of IFRS 15 |
SOURCE Copa Holdings, S.A.
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