PANAMA
CITY, May 11, 2022 /PRNewswire/ -- Copa
Holdings, S.A. (NYSE: CPA), today announced financial results for
the first quarter of 2022 (1Q22). 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
2019 (1Q19) (which the Company believes are more relevant than
year-over-year comparisons due to the significant impacts in 2020
and 2021 of the COVID-19 pandemic).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported a net profit of US$19.8 million for the quarter or US$0.47 per share, as compared to a net profit of
US$89.4 million or earnings per share
of US$2.11 in 1Q19. Excluding special
items, the Company would have reported a net profit of US$29.5 million or US$0.70 per share. Special items for the quarter
amount to US$9.7 million, comprised
of unrealized mark-to-market losses related to the Company's
convertible notes as well as changes in the value of financial
investments.
- Copa Holdings reported an operating profit of US$44.8 million for the quarter and a 7.8%
operating margin, compared to an operating profit of US$112.9 million in 1Q19.
- Total revenues for 1Q22 came in at US$571.6 million, reaching 85.0% of 1Q19
revenues. Passenger revenue for 1Q22 was 83.4% of 1Q19 levels,
while cargo revenue was 40.6% higher than 1Q19. Revenue per
Available Seat Mile (RASM) came in at 10.2
cents, or 3.0% lower than 1Q19.
- Operating cost per available seat mile excluding fuel (Ex-fuel
CASM) decreased 1.6% in the quarter vs. 1Q19 to 6.0 cents.
- Capacity for 1Q22, measured in terms of available seat miles
(ASMs), was 87.6% of the capacity flown in 1Q19.
- The Company ended the quarter with approximately US$1.2 billion in cash, short-term and long-term
investments, which represents 65% of the last twelve months'
revenues.
- The Company closed the quarter with total debt, including lease
liabilities, of US$1.6 billion.
- During the quarter, the Company took delivery of 2 Boeing 737
MAX 9 aircraft.
- Including 3 Boeing 737-700 aircraft currently in temporary
storage and one Boeing 737-800 freighter, Copa Holdings ended the
quarter with a consolidated fleet of 93 aircraft – 68 Boeing
737-800s, 16 Boeing 737 MAX 9s, and 9 Boeing 737-700s, compared to
a fleet of 102 aircraft prior to the COVID-19 pandemic.
- Copa Airlines had an on-time performance for the quarter of
91.3% and a flight completion factor of 99.3%, once again
positioning the airline among the best in the industry.
- During the quarter, the Company announced two new destinations
starting in June 2022 — Santa Marta in Colombia and Barcelona in Venezuela.
Consolidated
Financial
& Operating Highlights
|
1Q22
|
1Q19 (3)
|
Variance vs.
1Q19
|
4Q21
|
Variance vs.
3Q21
|
Revenue Passengers
Carried (000s)
|
2,285
|
2,588
|
-11.7%
|
2,214
|
3.2%
|
Revenue Passengers
OnBoard (000s)
|
3,476
|
3,830
|
-9.2%
|
3,369
|
3.2%
|
RPMs
(millions)
|
4,585
|
5,345
|
-14.2%
|
4,265
|
7.5%
|
ASMs
(millions)
|
5,623
|
6,415
|
-12.4%
|
5,109
|
10.1%
|
Load
Factor
|
81.5%
|
83.3%
|
-1.8 p.p.
|
83.5%
|
-1.9 p.p.
|
Yield (US$
Cents)
|
11.8
|
12.1
|
-2.7%
|
12.7
|
-6.9%
|
PRASM (US$
Cents)
|
9.6
|
10.1
|
-4.8%
|
10.6
|
-9.0%
|
RASM (US$
Cents)
|
10.2
|
10.5
|
-3.0%
|
11.3
|
-9.7%
|
CASM (US$
Cents)
|
9.4
|
8.7
|
7.5%
|
8.1
|
15.7%
|
Adjusted CASM (US$
Cents) (1)
|
9.4
|
8.7
|
7.5%
|
9.0
|
4.2%
|
CASM Excl. Fuel (US$
Cents)
|
6.0
|
6.1
|
-1.6%
|
5.2
|
15.2%
|
Adjusted CASM Excl.
Fuel (US$ Cents) (1)
|
6.0
|
6.1
|
-1.6%
|
6.1
|
-1.7%
|
Fuel Gallons Consumed
(millions)
|
66.5
|
81.2
|
-18.1%
|
61.0
|
9.1%
|
Avg. Price Per Fuel
Gallon (US$)
|
2.87
|
2.09
|
37.4%
|
2.43
|
18.0%
|
Average Length of Haul
(miles)
|
2,007
|
2,065
|
-2.8%
|
1,926
|
4.2%
|
Average Stage Length
(miles)
|
1,298
|
1,299
|
0.0%
|
1,254
|
3.5%
|
Departures
|
27,190
|
33,329
|
-18.4%
|
25,458
|
6.8%
|
Block Hours
|
88,474
|
110,089
|
-19.6%
|
80,710
|
9.6%
|
Average Aircraft
Utilization (hours) (2)
|
11.1
|
11.6
|
-4.5%
|
11.3
|
-1.9%
|
Operating Revenues (US$
millions)
|
571.6
|
672.2
|
-15.0%
|
575.0
|
-0.6%
|
Operating Profit (Loss)
(US$ millions)
|
44.8
|
112.9
|
-60.3%
|
161.3
|
-72.2%
|
Adjusted Operating
Profit (Loss) (US$ millions) (1)
|
44.8
|
112.9
|
-60.3%
|
115.8
|
-61.3%
|
Operating
Margin
|
7.8%
|
16.8%
|
-9.0 p.p.
|
28.1%
|
-20.2 p.p.
|
Adjusted Operating
Margin (1)
|
7.8%
|
16.8%
|
-9.0 p.p.
|
20.1%
|
-12.3 p.p.
|
Net Profit (Loss) (US$
millions)
|
19.8
|
89.4
|
-77.9%
|
118.3
|
-83.3%
|
Adjusted Net Profit
(Loss) (US$ millions) (1)
|
29.5
|
89.4
|
-67.0%
|
81.7
|
-63.9%
|
Basic EPS
(US$)
|
0.47
|
2.11
|
-77.7%
|
2.78
|
-83.1%
|
Adjusted Basic EPS
(US$) (1)
|
0.70
|
2.11
|
-66.7%
|
1.92
|
-63.4%
|
Shares for
calculation of Basic EPS (000s)
|
42,006
|
42,478
|
-1.1%
|
42,533
|
-1.2%
|
(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.
(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 1Q22 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD
AT:
https://copa.gcs-web.com/financial-information/quarterly-results
1Q22 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
|
May 12, 2022
|
|
|
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.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
|
|
%
|
|
|
1Q22
|
|
1Q19
|
|
Change
|
4Q21
|
|
Change
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
541,255
|
|
648,790
|
|
-16.6%
|
540,571
|
|
0.1%
|
Cargo and mail
revenue
|
|
21,537
|
|
15,316
|
|
40.6%
|
25,849
|
|
-16.7%
|
Other operating
revenue
|
|
8,790
|
|
8,063
|
|
9.0%
|
8,575
|
|
2.5%
|
Total Operating
Revenue
|
|
571,582
|
|
672,169
|
|
-15.0%
|
574,995
|
|
-0.6%
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
191,256
|
|
170,163
|
|
12.4%
|
149,057
|
|
28.3%
|
Wages, salaries,
benefits and other employees' expenses
|
|
89,759
|
|
113,662
|
|
-21.0%
|
80,434
|
|
11.6%
|
Passenger
servicing
|
|
15,607
|
|
25,571
|
|
-39.0%
|
12,204
|
|
27.9%
|
Airport facilities and
handling charges
|
|
45,787
|
|
45,362
|
|
0.9%
|
42,863
|
|
6.8%
|
Sales and
distribution
|
|
46,033
|
|
53,133
|
|
-13.4%
|
43,706
|
|
5.3%
|
Maintenance, materials
and repairs
|
|
23,350
|
|
28,047
|
|
-16.7%
|
(19,620)
|
|
-219.0%
|
Depreciation and
amortization
|
|
63,303
|
|
68,187
|
|
-7.2%
|
59,828
|
|
5.8%
|
Flight
operations
|
|
22,039
|
|
25,875
|
|
-14.8%
|
19,173
|
|
14.9%
|
Other operating and
administrative expenses
|
|
29,674
|
|
29,285
|
|
1.3%
|
26,057
|
|
13.9%
|
Total Operating
Expense
|
|
526,809
|
|
559,284
|
|
-5.8%
|
413,703
|
|
27.3%
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit/(Loss)
|
|
44,774
|
|
112,885
|
|
-60.3%
|
161,292
|
|
-72.2%
|
|
|
|
|
|
|
|
|
|
|
Non-operating Income
(Expense):
|
|
|
|
|
|
|
|
|
|
Finance cost
|
|
(20,445)
|
|
(14,022)
|
|
45.8%
|
(21,177)
|
|
-3.5%
|
Finance
income
|
|
2,545
|
|
5,954
|
|
-57.3%
|
2,571
|
|
-1.0%
|
Gain (loss) on foreign
currency fluctuations
|
|
2,917
|
|
(5,960)
|
|
-149.0%
|
(2,508)
|
|
-216.3%
|
Net change in fair
value of derivatives
|
|
(6,752)
|
|
-
|
|
-100.0%
|
(8,922)
|
|
-24.3%
|
Other non-operating
income (expense)
|
|
(2,664)
|
|
(825)
|
|
223.0%
|
(1,158)
|
|
130.0%
|
Total Non-Operating
Income/(Expense)
|
|
(24,398)
|
|
(14,853)
|
|
64.3%
|
(31,194)
|
|
-21.8%
|
|
|
|
|
|
|
|
|
|
|
Profit before
taxes
|
|
20,376
|
|
98,032
|
|
-79.2%
|
130,098
|
|
-84.3%
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(617)
|
|
(8,600)
|
|
-92.8%
|
(11,837)
|
|
-94.8%
|
|
|
|
|
|
|
|
|
|
|
Net
Profit/(Loss)
|
|
19,759
|
|
89,431
|
|
-77.9%
|
118,261
|
|
-83.3%
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.47
|
|
2.11
|
|
-77.7%
|
2.78
|
|
-83.1%
|
|
|
|
|
|
|
|
|
|
|
Shares used for
calculation:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
42,006,022
|
|
42,477,761
|
|
|
42,533,036
|
|
|
Copa Holdings, S. A.
and subsidiaries
|
|
|
Consolidated
statement of financial position
|
|
|
(US$
Thousands)
|
|
|
|
March
2022
|
December
2021
|
ASSETS
|
(Unaudited)
|
|
Current
Assets
|
|
|
Cash and cash
equivalents
|
249,014
|
211,081
|
Short-term
investments
|
771,074
|
806,340
|
Total cash, cash
equivalents and short-term investments
|
1,020,088
|
1,017,421
|
|
-
|
-
|
Accounts receivable,
net
|
125,989
|
90,618
|
Accounts receivable
from related parties
|
1,598
|
1,832
|
Expendable parts and
supplies, net
|
80,690
|
74,778
|
Prepaid
expenses
|
34,268
|
31,148
|
Prepaid income
tax
|
16,095
|
16,938
|
Other current
assets
|
6,497
|
6,054
|
|
265,137
|
221,368
|
TOTAL CURRENT
ASSETS
|
1,285,225
|
1,238,789
|
|
|
|
Long-term
investments
|
204,810
|
199,670
|
Long-term accounts
receivable
|
-
|
-
|
Long-term prepaid
expenses
|
6,195
|
6,727
|
Property and equipment,
net
|
2,625,393
|
2,512,704
|
Right of use
assets
|
149,230
|
166,328
|
Intangible,
net
|
78,381
|
81,749
|
Deferred tax
assets
|
30,911
|
28,196
|
Other Non-Current
Assets
|
15,497
|
14,098
|
TOTAL NON-CURRENT
ASSETS
|
3,110,417
|
3,009,472
|
|
|
|
TOTAL
ASSETS
|
4,395,642
|
4,248,261
|
|
|
|
LIABILITIES
|
|
|
Loans and
borrowings
|
151,234
|
196,602
|
Current portion of
lease liability
|
74,571
|
73,917
|
Accounts
payable
|
126,899
|
112,596
|
Accounts payable to
related parties
|
19,113
|
7,948
|
Air traffic
liability
|
625,309
|
557,331
|
Frequent flyer deferred
revenue
|
97,040
|
95,114
|
Taxes
Payable
|
40,557
|
32,600
|
Employee benefits
obligations
|
28,487
|
32,767
|
Income tax
payable
|
4,293
|
3,835
|
Other Current
Liabilities
|
1,206
|
786
|
TOTAL CURRENT
LIABILITIES
|
1,168,709
|
1,113,496
|
|
|
|
Loans and borrowings
long-term
|
1,329,125
|
1,229,031
|
Lease
Liability
|
86,787
|
104,734
|
Net Defined Benefit
Liability
|
7,547
|
7,670
|
Derivative financial
instruments
|
275,090
|
268,338
|
Deferred tax
Liabilities
|
18,885
|
18,782
|
Other long - term
liabilities
|
216,979
|
206,813
|
|
|
|
TOTAL NON-CURRENT
LIABILITIES
|
1,934,413
|
1,835,368
|
TOTAL
LIABILITIES
|
3,103,122
|
2,948,864
|
|
|
|
EQUITY
|
-
|
-
|
|
|
|
Class A - 34,012,597
issued and 30,643,923 outstanding
|
21,324
|
21,289
|
Class B -
10,938,125
|
7,466
|
7,466
|
Additional Paid-In
Capital
|
99,849
|
98,348
|
Treasury
Stock
|
(205,074)
|
(176,902)
|
Retained
Earnings
|
1,367,866
|
1,324,022
|
Net profit
|
19,759
|
43,844
|
Other comprehensive
loss
|
(18,670)
|
(18,670)
|
|
|
|
TOTAL
EQUITY
|
1,292,520
|
1,299,397
|
TOTAL EQUITY
LIABILITIES
|
4,395,642
|
4,248,261
|
Copa Holdings, S. A.
and subsidiaries
|
|
|
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
For the three months
ended March 31,
|
|
|
|
|
|
|
(In US$
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flow from (used
in) operating activities
|
|
169,336
|
|
(892)
|
|
106,340
|
Cash flow (used in)
from investing activities
|
|
(120,515)
|
|
(86,697)
|
|
19,795
|
Cash flow (used in)
from financing activities
|
|
(10,888)
|
|
162,325
|
|
55,058
|
Net increase in cash
and cash equivalents
|
|
37,933
|
|
74,736
|
|
181,193
|
Cash and cash
equivalents at January 1
|
|
211,081
|
|
119,065
|
|
158,732
|
Cash and cash
equivalents at March 31
|
|
$ 249,014
|
|
$ 193,801
|
|
$ 339,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
|
771,074
|
|
898,453
|
|
672,721
|
Long-term
investments
|
|
204,810
|
|
111,001
|
|
114,277
|
Total cash and cash
equivalents and investments at March 31
|
|
$
1,224,898
|
|
$
1,203,255
|
|
$
1,126,923
|
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
|
|
1Q22
|
|
1Q21
|
|
4Q21
|
|
1Q19
|
|
|
|
|
|
|
|
|
|
Operating Profit as
Reported
|
|
$ 44,774
|
|
$
(77,081)
|
|
$ 161,292
|
|
$ 112,873
|
Subtract:
Leased Aircraft Return provision
|
|
|
|
|
|
$
45,519
|
|
|
Adjusted Operating
Profit
|
|
$
44,774
|
|
$
(77,081)
|
|
$
115,773
|
|
$
112,873
|
|
|
|
|
|
|
|
|
|
Net Profit as
Reported
|
|
$ 19,759
|
|
$(110,733)
|
|
$ 118,261
|
|
$
89,431
|
Subtract:
Leased Aircraft Return provision
|
|
|
|
|
|
$
45,519
|
|
|
Add: Net
change in fair value of derivatives
|
|
$
6,752
|
|
$
15,663
|
|
$ 8,922
|
|
|
Add: Net
change in fair value of financial investments
|
|
$
2,979
|
|
|
|
|
|
|
Adjusted Net
Profit
|
|
$
29,490
|
|
$
(95,070)
|
|
$
81,664
|
|
$
89,431
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Basic EPS
|
|
1Q22
|
|
1Q21
|
|
4Q21
|
|
1Q19
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Profit
|
|
$ 29,490
|
|
$
(95,070)
|
|
$
81,664
|
|
$
89,431
|
Shares used for
calculation of Basic EPS
|
|
42,006
|
|
42,571
|
|
42,533
|
|
42,478
|
Adjusted Basic
Earnings per share (Adjusted Basic EPS)
|
|
$ 0.70
|
|
$
(2.23)
|
|
$
1.92
|
|
$
2.11
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Operating Costs per ASM
|
|
|
|
|
|
|
|
|
Excluding Fuel
(Adjusted CASM Excl. Fuel)
|
|
1Q22
|
|
1Q21
|
|
4Q21
|
|
1Q19
|
|
|
|
|
|
|
|
|
|
Operating Costs per ASM
as Reported (in US$ Cents)
|
|
9.4
|
|
9.0
|
|
8.2
|
|
8.7
|
Return of leased
aircraft provision per ASM (in US$ Cents)
|
|
-
|
|
-
|
|
(0.8)
|
|
-
|
Adjusted Operating
Costs per ASM (in US$ Cents)
|
|
9.4
|
|
9.0
|
|
9.0
|
|
8.7
|
|
|
|
|
|
|
|
|
|
Aircraft Fuel Cost per
ASM (in US$ Cents)
|
|
3.4
|
|
2.5
|
|
2.9
|
|
2.7
|
Adjusted Operating
Costs per ASM excluding fuel (in US$ Cents)
|
|
6.0
|
|
6.6
|
|
6.1
|
|
6.1
|
View original
content:https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-first-quarter-of-2022-301545528.html
SOURCE Copa Holdings, S.A.