Excluding special items, adjusted net income came in at $55.3 million, or adjusted EPS of $1.30 per share
PANAMA CITY, Nov. 8, 2016 /PRNewswire/ -- Copa Holdings, S.A. CPA, today announced financial results for the third quarter of 2016 (3Q16). The terms "Copa Holdings" or "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 financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the third quarter of 2015 (3Q15).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported net income of US$74.0 million for 3Q16, or diluted earnings per share (EPS) of US$1.75.
- Excluding special items, Copa Holdings would have reported an adjusted net income of $55.3 million, or $1.30 per share, a 47.8% increase from adjusted net income of US$37.4 million and US$0.85 per share for 3Q15.
- Operating income for 3Q16 came in at US$77.2 million, a 52.7% increase from operating income of US$50.6 million in 3Q15. Operating margin for the period came in at 13.6% or 4.3 percentage points higher than 3Q15, as a result of stronger unit revenues and lower unit costs.
- Operating results for the quarter were affected by realized fuel hedge losses of US$22.2 million, compared to US$24.1 million in 3Q15. Excluding these realized fuel hedge losses, operating margin for the quarter would have been 17.5% for 3Q16, and 13.6% for 3Q15.
- Total revenues increased 4.0% year over year to US$569 million, as higher load factors offset a 7.6% reduction in yield per passenger mile. As a result, operating revenue per available seat mile (RASM) increased 1.8% to 10.3 cents when compared to 3Q2015.
- For 3Q16, passenger traffic (RPMs) grew 12.7% year over year on a 2.0% capacity expansion. As a result, consolidated load factor came in at 84.2%, or 8.0 percentage points above 3Q15.
- Operating cost per available seat mile (CASM) declined 2.9% year over year to 8.9 cents. CASM, excluding fuel, decreased 0.9% year over year to 6.4 cents.
- Cash, short term and long term investments ended 3Q16 at US$773.4 million, representing 36% of the last twelve months' revenues.
- During the quarter, Copa Airlines returned two leased EMB-190s. Copa Holdings ended the quarter with a consolidated fleet of 99 aircraft.
- For 3Q16, Copa Holdings reported consolidated on-time performance of 90.1% and a flight-completion factor of 99.8%, maintaining its position among the best in the industry.
SUBSEQUENT EVENTS
- On Oct 20, 2016 Copa Holdings launched Wingo, a low cost/low price product offering designed for passengers looking for a simple, no-frills travel option within Central, South America and the Caribbean. Wingo will begin operations on December 1, 2016. For more information, please visit www.wingo.com
- Copa Holdings will pay its fourth quarter dividend of US$0.51 per share on December 15, 2016, on all outstanding Class A and Class B shares, to stockholders of record as of November 30, 2016.
|
Consolidated Financial & |
3Q16 |
3Q15 |
% Change |
2Q16 |
% Change |
|
Revenue Passengers Carried ('000) |
2,231 |
1,987 |
12.3% |
2,020 |
10.5% |
|
RPMs (mm) |
4,637 |
4,116 |
12.7% |
4,178 |
11.0% |
|
ASMs (mm) |
5,506 |
5,397 |
2.0% |
5,335 |
3.2% |
|
Load Factor |
84.2% |
76.3% |
8.0 p.p. |
78.3% |
5.9 p.p. |
|
Yield |
11.8 |
12.7 |
-7.6% |
11.3 |
3.8% |
|
PRASM (US$ Cents) |
9.9 |
9.7 |
2.1% |
8.9 |
11.7% |
|
RASM (US$ Cents) |
10.3 |
10.1 |
1.8% |
9.3 |
11.4% |
|
CASM (US$ Cents) |
8.9 |
9.2 |
-2.9% |
8.6 |
3.5% |
|
CASM Excl. Fuel (US$ Cents) |
6.4 |
6.4 |
-0.9% |
6.3 |
1.7% |
|
Breakeven Load Factor |
70.2% |
75.1% |
-4.9 p.p. |
66.7% |
3.5 p.p. |
|
Adjusted Breakeven Load Factor (1) |
73.7% |
69.4% |
4.3 p.p. |
73.7% |
0.0 p.p. |
|
Fuel Gallons Consumed (Millions) |
71.2 |
69.2 |
3.0% |
69.4 |
2.7% |
|
Avg. Price Per Fuel Gallon (US$ Dollars) |
1.97 |
2.16 |
-8.6% |
1.81 |
9.1% |
|
Average Length of Haul (Miles) |
2,079 |
2,071 |
0.4% |
2,068 |
0.5% |
|
Average Stage Length (Miles) |
1,237 |
1,233 |
0.3% |
1,194 |
3.6% |
|
Departures |
30,737 |
30,619 |
0.4% |
30,313 |
1.4% |
|
Block Hours |
97,077 |
97,053 |
0.0% |
95,171 |
2.0% |
|
Average Aircraft Utilization (Hours) |
10.5 |
10.8 |
-2.3% |
10.4 |
0.9% |
|
Operating Revenues (US$ mm) |
569.0 |
547.2 |
4.0% |
494.4 |
15.1% |
|
Operating Income (US$ mm) |
77.2 |
50.6 |
52.7% |
34.2 |
125.8% |
|
Operating Margin |
13.6% |
9.2% |
4.3 p.p. |
6.9% |
6.7 p.p. |
|
Net Income (US$ mm) |
74.0 |
6.2 |
n/m |
54.5 |
35.7% |
|
Adjusted Net Income (US$ mm) (1) |
55.3 |
37.4 |
47.8% |
21.5 |
157.2% |
|
EPS - Basic and Diluted (US$) |
1.75 |
0.14 |
n/m |
1.29 |
34.9% |
|
Adjusted EPS - Basic and Diluted (US$) (1) |
1.30 |
0.85 |
53.6% |
0.51 |
155.7% |
|
# of Shares - Basic and Diluted ('000) |
42,372 |
44,030 |
-3.8% |
42,117 |
0.6% |
(1)Adjusted Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 3Q16, 3Q15, and 2Q16 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges and charges/gains related to the Venezuelan currency. Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
FULL 3Q16 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: http://investor.shareholder.com/copa/results.cfm
3Q16 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
|
Date: |
Nov 9, 2016 |
||
|
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 74 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 99 aircraft: 78 Boeing 737NG aircraft and 21 EMBRAER-190s. For more information visit: www.copa.com.
CONTACT: Copa Holdings S.A.
Investor Relations:
Ph: + (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 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 |
% | |||||
|
3Q16 |
3Q15 |
Change |
2Q16 |
Change | |||||
|
Operating Revenues |
|||||||||
|
Passenger Revenue |
545,066 |
523,531 |
4.1% |
472,931 |
15.3% | ||||
|
Cargo, mail and other |
23,959 |
23,716 |
1.0% |
21,518 |
11.3% | ||||
|
Total Operating Revenue |
569,025 |
547,247 |
4.0% |
494,449 |
15.1% | ||||
|
Operating Expenses |
|||||||||
|
Aircraft fuel |
140,366 |
149,197 |
-5.9% |
125,260 |
12.1% | ||||
|
Salaries and benefits |
73,194 |
71,902 |
1.8% |
69,065 |
6.0% | ||||
|
Passenger servicing |
65,612 |
65,175 |
0.7% |
63,560 |
3.2% | ||||
|
Commissions |
20,862 |
22,632 |
-7.8% |
20,642 |
1.1% | ||||
|
Reservations and sales |
23,970 |
19,636 |
22.1% |
23,881 |
0.4% | ||||
|
Maintenance, material and repairs |
32,410 |
25,946 |
24.9% |
26,190 |
23.7% | ||||
|
Depreciation |
35,525 |
35,485 |
0.1% |
34,815 |
2.0% | ||||
|
Flight operations |
32,893 |
30,928 |
6.4% |
30,540 |
7.7% | ||||
|
Aircraft rentals |
30,282 |
30,409 |
-0.4% |
30,833 |
-1.8% | ||||
|
Landing fees and other rentals |
13,828 |
14,585 |
-5.2% |
14,046 |
-1.6% | ||||
|
Other |
22,893 |
30,796 |
-25.7% |
21,434 |
6.8% | ||||
|
Total Operating Expense |
491,835 |
496,691 |
-1.0% |
460,266 |
6.9% | ||||
|
Operating Income |
77,191 |
50,556 |
52.7% |
34,183 |
125.8% | ||||
|
Non-operating Income (Expense): |
|||||||||
|
Interest expense |
(9,683) |
(8,271) |
17.1% |
(9,147) |
5.9% | ||||
|
Interest income |
3,506 |
5,728 |
-38.8% |
3,238 |
8.3% | ||||
|
Other, net |
15,658 |
(37,600) |
n/m |
32,025 |
-51.1% | ||||
|
Total Non-Operating Income/(Expense) |
9,481 |
(40,143) |
n/m |
26,117 |
-63.7% | ||||
|
Income before Income Taxes |
86,672 |
10,413 |
732.4% |
60,299 |
43.7% | ||||
|
Provision for Income Taxes |
12,654 |
4,200 |
201.3% |
5,772 |
119.2% | ||||
|
Net Income |
74,018 |
6,213 |
1091.3% |
54,527 |
35.7% | ||||
|
EPS - Basic and Diluted |
1.75 |
0.14 |
1137.9% |
1.29 |
34.9% | ||||
|
Shares - Basic and Diluted |
42,371,617 |
44,030,111 |
-3.8% |
42,117,261 |
0.6% |
|
Copa Holdings, S. A. |
||||
|
Balance Sheet - IFRS |
||||
|
(US$ Thousands) |
September 30 |
December 31 | ||
|
2016 |
2015 | |||
|
(Unaudited) |
(Audited) | |||
|
ASSETS |
||||
|
Current Assets: |
||||
|
Cash and cash equivalents |
$ 221,803 |
$ 204,715 | ||
|
Restricted cash and cash equivalents |
10,128 |
64,228 | ||
|
Short-term investments |
540,502 |
416,005 | ||
|
Total cash, cash equivalents and short-term investments |
772,433 |
684,948 | ||
|
Accounts receivable, net of allowance for doubtful accounts |
110,278 |
105,135 | ||
|
Accounts receivable from related parties |
297 |
642 | ||
|
Expendable parts and supplies, net of allowance for obsolescence |
70,379 |
62,247 | ||
|
Prepaid expenses |
62,299 |
48,667 | ||
|
Other current assets |
15,726 |
5,946 | ||
|
Total Current Assets |
1,031,412 |
907,585 | ||
|
Long-term investments |
954 |
861 | ||
|
Property and Equipment: |
||||
|
Owned property and equipment: |
||||
|
Flight equipment |
3,102,322 |
3,030,361 | ||
|
Other equipment |
125,802 |
121,205 | ||
|
3,228,124 |
3,151,565 | |||
|
Less: Accumulated depreciation |
(830,920) |
(743,982) | ||
|
2,397,204 |
2,407,583 | |||
|
Purchase deposits for flight equipment |
233,749 |
243,070 | ||
|
Total Property and Equipment |
2,630,953 |
2,650,653 | ||
|
Other Assets: |
||||
|
Long term account receivable |
605 |
- | ||
|
Net pension asset |
9,067 |
6,050 | ||
|
Goodwill |
20,380 |
20,380 | ||
|
Intangible asset |
53,125 |
49,046 | ||
|
Deferred tax Assets |
14,595 |
12,708 | ||
|
Other assets |
51,252 |
68,193 | ||
|
Total Other Assets |
149,024 |
156,377 | ||
|
Total Assets |
$ 3,812,343 |
$ 3,715,476 | ||
|
LIABILITIES AND SHAREHOLDER'S EQUITY |
||||
|
Current Liabilities: |
||||
|
Current maturities of long-term debt |
$ 214,014 |
$ 245,514 | ||
|
Accounts payable |
100,396 |
94,741 | ||
|
Accounts payable to related parties |
7,196 |
5,605 | ||
|
Air traffic liability |
392,937 |
352,110 | ||
|
Frequent flyer deferred revenue |
31,151 |
18,884 | ||
|
Taxes and interest payable |
85,211 |
67,242 | ||
|
Accrued expenses payable |
72,561 |
82,948 | ||
|
Other current liabilities |
31,784 |
118,623 | ||
|
Total Current Liabilities |
935,250 |
985,667 | ||
|
Non-Current Liabilities: |
||||
|
Long-term debt |
999,537 |
1,055,183 | ||
|
Other long-term liabilities |
64,660 |
54,339 | ||
|
Deferred tax liabilities |
40,774 |
32,865 | ||
|
Total Non-Current Liabilities |
1,104,971 |
1,142,387 | ||
|
Total Liabilities |
2,040,221 |
2,128,054 | ||
|
Shareholders' Equity: |
||||
|
Class A - 33,731,823 issued and 31,111,310 outstanding |
20,988 |
20,924 | ||
|
Class B - 10,938,125 shares issued and outstanding |
7,466 |
7,466 | ||
|
Additional paid in capital |
62,699 |
57,455 | ||
|
Treasury Stock |
(136,388) |
(136,388) | ||
|
Retained earnings |
1,818,133 |
1,638,733 | ||
|
Accumulated other comprehensive income (loss) |
(776) |
(768) | ||
|
Total Shareholders' Equity |
1,772,122 |
1,587,422 | ||
|
Total Liabilities and Shareholders' Equity |
$ 3,812,343 |
$ 3,715,476 | ||
|
Copa Holdings, S. A. and subsidiaries |
|||||||||||||
|
Consolidated Statement of Cash Flows |
|||||||||||||
|
For the nine months ended September 30, |
|||||||||||||
|
(In US$ thousands) |
|||||||||||||
|
2016 |
2015 |
2014 | |||||||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) | |||||||||||
|
Cash flow from operating activities |
384,822 |
236,743 |
148,334 | ||||||||||
|
Cash flow (used in) from investing activities |
(170,057) |
(39,658) |
8,672 | ||||||||||
|
Cash flow used in financing activities |
(197,677) |
(282,982) |
(109,378) | ||||||||||
|
Net increase (decrease) in cash and cash equivalents |
17,088 |
(85,897) |
47,628 | ||||||||||
|
Cash and cash equivalents at January 1 |
204,715 |
207,437 |
139,110 | ||||||||||
|
Cash and cash equivalents at September 30 |
$ 221,803 |
$ 121,540 |
$ 186,738 | ||||||||||
|
Short-term investments * |
540,502 |
484,242 |
698,945 | ||||||||||
|
Long-term investments ** |
954 |
428,259 |
240,097 | ||||||||||
|
Restricted cash and cash equivalents *** |
10,128 |
48,702 |
- | ||||||||||
|
Total cash and cash equivalents and investments at September 30 |
$ 773,387 |
$ 1,082,743 |
$ 1,125,780 | ||||||||||
|
* Short-term investments include $265 million of cash in Venezuela at September 2014. |
|||||||||||||
|
** Long-term investments include $427 million and $239 million at September 2015 and 2014 of cash in Venezuela, respectively |
|||||||||||||
|
*** Restricted cash correspond to a margin calls to secure derivative financial instruments transactions. |
|||||||||||||
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non IFRS financial measures: Adjusted Breakeven Load Factor, 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 Net Income |
||||||
|
Excluding Special Items |
3Q16 |
3Q15 |
2Q16 | |||
|
Net income as Reported |
$74,018 |
$6,213 |
$54,527 | |||
|
Special Items (adjustments): |
||||||
|
Unrealized gain (loss) on fuel hedging instruments |
19,225 |
(26,800) |
40,644 | |||
|
(Loss) gain due to devaluation of Venezuelan Bolivar |
(484) |
(2,100) |
(7,607) | |||
|
Unrealized gain (loss) on Shares Repurchased |
0 |
(2,296) |
0 | |||
|
Adjusted Net Income |
$55,278 |
$37,408 |
$21,490 | |||
|
Shares used for Computation (in thousands) |
||||||
|
Basic and Diluted |
42,372 |
44,030 |
42,117 | |||
|
Adjusted earnings per share - Basic and Diluted |
1.30 |
0.85 |
0.51 | |||
|
Reconciliation of Operating Costs per ASM |
||||||
|
Excluding Fuel and Special Items |
3Q16 |
3Q15 |
2Q16 | |||
|
Operating Costs per ASM as Reported |
8.9 |
9.2 |
8.6 | |||
|
Aircraft fuel per ASM |
(2.5) |
(2.8) |
(2.3) | |||
|
Operating Costs per ASM excluding fuel |
6.4 |
6.4 |
6.3 | |||
|
Reconciliation of Breakeven Load Factor |
||||||
|
Excluding Special Items |
3Q16 |
3Q15 |
2Q16 | |||
|
Total Operating Expenses, Non-Operating Results |
495,007 |
541,034 |
439,922 | |||
|
Breakeven Load Factor |
70.2% |
75.1% |
66.7% | |||
|
Special Items (adjustments): |
||||||
|
Unrealized gain (loss) on fuel hedging instruments |
19,225 |
(26,800) |
40,644 | |||
|
(Loss) gain due to devaluation of Venezuelan Bolivar |
(484) |
(2,100) |
(7,607) | |||
|
Unrealized (gain) loss on Shares Repurchased |
0 |
(2,296) |
0 | |||
|
Total Operating Expenses, Non-Operating Results |
$513,748 |
$509,838 |
$472,959 | |||
|
Adjusted Breakeven Load Factor (Excluding Special items) |
73.7% |
69.4% |
73.7% | |||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-third-quarter-of-2016-300359228.html
SOURCE Copa Holdings, S.A.
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