PANAMA CITY, May 8, 2019 /PRNewswire/ -- Copa Holdings, S.A. 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 $0.65 per share on June 14, to all Class A and Class B shareholders on record as of May 31, 2019.
Consolidated Financial 1Q19 1Q18* Variance vs. 1Q18* 4Q18* Variance vs. 4Q18* Revenue Passengers Carried ('000) 2,620 2,465 6.3% 2,554 2.6% RPMs (mm) 5,345 5,223 2.3% 5,335 0.2% ASMs (mm) 6,415 6,297 1.9% 6,445 -0.5% Load Factor 83.3% 83.0% 0.4 p.p. 82.8% 0.5 p.p. Yield 12.1 13.3 -8.8% 11.8 2.5% PRASM (US$ 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.
& Operating Highlights
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: | |
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 | ||||||
SOURCE Copa Holdings, S.A.
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