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PRNewswire 13-Feb-2019 6:00 PM
PANAMA CITY, Feb. 13, 2019 /PRNewswire/ -- Copa Holdings, S.A. (NYSE:CPA), today announced financial results for the fourth quarter of 2018 (4Q18) and full year 2018. 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 2017 (4Q17).
The financial information included in this press release is preliminary as the Company has not yet issued its audited financial statements and may differ from those results. During the course of the preparation of the financial statements and related notes and our year-end audit, additional items that would require material adjustments to the preliminary financial information included in this press release may be identified.
OPERATING AND FINANCIAL HIGHLIGHTS
Subsequent Events
Consolidated Financial |
4Q18 |
4Q17* |
Variance vs. 4Q17 |
3Q18 |
Variance vs. 3Q18 |
FY 2018 |
FY 2017* |
Variance vs. 2017 |
Revenue Passengers Carried ('000) |
2,554 |
2,460 |
3.8% |
2,591 |
-1.4% |
10,069 |
9,504 |
5.9% |
RPMs (mm) |
5,335 |
5,086 |
4.9% |
5,587 |
-4.5% |
21,529 |
19,914 |
8.1% |
ASMs (mm) |
6,445 |
6,111 |
5.5% |
6,629 |
-2.8% |
25,817 |
23,936 |
7.9% |
Load Factor |
82.8% |
83.2% |
-0.4 p.p. |
84.3% |
-1.5 p.p. |
83.4% |
83.2% |
0.2 p.p. |
Yield |
11.8 |
12.8 |
-7.7% |
11.6 |
1.9% |
12.0 |
12.3 |
-2.1% |
PRASM (US$ Cents) |
9.8 |
10.7 |
-8.2% |
9.8 |
0.1% |
10.0 |
10.2 |
-1.9% |
RASM (US$ Cents) |
10.2 |
11.0 |
-7.7% |
10.1 |
0.4% |
10.4 |
10.5 |
-1.6% |
CASM (US$ Cents) |
12.2 |
9.2 |
32.3% |
9.0 |
35.1% |
9.8 |
8.8 |
11.9% |
Adjusted CASM (US$ Cents) |
9.3 |
9.2 |
0.5% |
9.0 |
2.7% |
9.1 |
8.8 |
3.6% |
CASM Excl. Fuel (US$ Cents) |
9.1 |
6.6 |
38.4% |
6.0 |
53.5% |
6.8 |
6.4 |
7.4% |
Fuel Gallons Consumed (Millions) |
82.1 |
78.7 |
4.3% |
84.2 |
-2.5% |
328.1 |
307.0 |
6.9% |
Avg. Price Per Fuel Gallon (US$ Dollars) |
2.38 |
2.03 |
17.5% |
2.40 |
-0.9% |
2.32 |
1.87 |
24.6% |
Average Length of Haul (Miles) |
2,089 |
2,067 |
1.1% |
2,156 |
-3.1% |
2,138 |
2,095 |
2.0% |
Average Stage Length (Miles) |
1,299 |
1,292 |
0.5% |
1,331 |
-2.4% |
1,321 |
1,285 |
2.8% |
Departures |
33,541 |
32,183 |
4.2% |
33,775 |
-0.7% |
132,498 |
126,963 |
4.4% |
Block Hours |
111,315 |
106,750 |
4.3% |
114,009 |
-2.4% |
444,851 |
419,596 |
6.0% |
Average Aircraft Utilization (Hours) |
11.7 |
11.6 |
0.6% |
12.3 |
-4.8% |
12.0 |
11.5 |
4.7% |
Operating Revenues (US$ mm) |
656.1 |
674.2 |
-2.7% |
672.4 |
-2.4% |
2,677.6 |
2,521.8 |
6.2% |
Operating Profit (US$ mm) |
-129.7 |
110.8 |
-217.0% |
74.3 |
-274.6% |
145.0 |
424.0 |
-65.8% |
Adjusted Operating Profit (US$ mm) (1) |
58.9 |
110.8 |
-46.9% |
74.3 |
-20.7% |
333.7 |
424.0 |
-21.3% |
Operating Margin |
-19.8% |
16.4% |
-36.2 p.p. |
11.0% |
-30.8 p.p. |
5.4% |
16.8% |
-11.4 p.p. |
Adjusted Operating Margin (1) |
9.0% |
16.4% |
-7.5 p.p. |
11.0% |
-2.1 p.p. |
12.5% |
16.8% |
-4.4 p.p. |
Net Profit (US$ mm) |
-156.0 |
101.4 |
-253.9% |
57.7 |
-370.2% |
88.1 |
364.0 |
-75.8% |
Adjusted Net Profit (US$ mm) (1) |
44.0 |
89.5 |
-50.8% |
57.7 |
-23.8% |
276.7 |
349.9 |
-20.9% |
EPS - Basic and Diluted (US$) |
-3.67 |
2.39 |
-253.8% |
1.36 |
-370.2% |
2.07 |
8.58 |
-75.8% |
Adjusted EPS - Basic and Diluted (US$) (1) |
1.04 |
2.11 |
-50.9% |
1.36 |
-23.8% |
6.52 |
8.25 |
-21.0% |
# of Shares - Basic and Diluted ('000) |
42,468 |
42,430 |
0.1% |
42,469 |
0.0% |
42,456 |
42,419 |
0.1% |
(1)Adjusted CASM Excl. Fuel, Adjusted Operating Profit, Adjusted Net Profit, Adjusted Operating Margin and Adjusted EPS for 4Q18, 4Q17, 3Q18, 2018 and 2017 exclude non-cash charges/gains associated with the Embraer 190 Fleet impairment, the mark-to-market impact of fuel hedges and a currency translation adjustment. |
||||||||
*Restated for the retrospective adoption of IFRS15. |
||||||||
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures. |
FULL 4Q18 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: http://investor.shareholder.com/copa/results.cfm
4Q18 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date: |
February 14, 2019 |
Time: |
11:00 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: 5 Boeing 737MAX9s, 82 Boeing 737NGs and 18 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 |
% |
Unaudited |
Audited |
% |
|||||||||
4Q18 |
4Q17* |
Change |
3Q18 |
Change |
2018 |
2017* |
Change |
|||||||||
Operating Revenues |
||||||||||||||||
Passenger revenue |
631,762 |
652,691 |
-3.2% |
649,110 |
-2.7% |
2,587,389 |
2,444,252 |
5.9% |
||||||||
Cargo and mail revenue |
16,224 |
14,841 |
9.3% |
15,919 |
1.9% |
62,483 |
55,290 |
13.0% |
||||||||
Other operating revenue |
8,077 |
6,665 |
21.2% |
7,375 |
9.5% |
27,755 |
22,245 |
24.8% |
||||||||
Total Operating Revenue |
656,063 |
674,197 |
-2.7% |
672,405 |
-2.4% |
2,677,627 |
2,521,787 |
6.2% |
||||||||
Operating Expenses |
||||||||||||||||
Fuel |
196,230 |
159,556 |
23.0% |
203,121 |
-3.4% |
765,781 |
572,746 |
33.7% |
||||||||
Wages, salaries, benefits and other employees' expenses |
114,394 |
110,952 |
3.1% |
109,814 |
4.2% |
443,287 |
415,147 |
6.8% |
||||||||
Passenger servicing |
26,284 |
26,481 |
-0.7% |
26,487 |
-0.8% |
104,346 |
99,447 |
4.9% |
||||||||
Airport facilities and handling charges |
48,514 |
42,238 |
14.9% |
47,415 |
2.3% |
186,422 |
171,040 |
9.0% |
||||||||
Sales and distribution |
51,787 |
51,452 |
0.7% |
51,832 |
-0.1% |
210,158 |
200,257 |
4.9% |
||||||||
Maintenance, materials and repairs |
27,486 |
39,371 |
-30.2% |
24,626 |
11.6% |
111,677 |
132,148 |
-15.5% |
||||||||
Depreciation and amortization |
39,831 |
42,896 |
-7.1% |
44,435 |
-10.4% |
169,436 |
167,324 |
1.3% |
||||||||
Flight operations |
27,922 |
25,082 |
11.3% |
27,434 |
1.8% |
108,437 |
101,647 |
6.7% |
||||||||
Aircraft rentals and other rentals |
33,130 |
33,313 |
-0.5% |
33,105 |
0.1% |
132,534 |
134,539 |
-1.5% |
||||||||
Cargo and courier expenses |
3,843 |
2,218 |
73.2% |
2,139 |
79.6% |
10,074 |
7,375 |
36.6% |
||||||||
Other operating and administrative expenses |
27,741 |
29,790 |
-6.9% |
27,705 |
0.1% |
101,812 |
96,087 |
6.0% |
||||||||
Fleet Impairment |
188,624 |
- |
n/m |
- |
n/m |
188,624 |
- |
n/m |
||||||||
Total Operating Expense |
785,787 |
563,348 |
39.5% |
598,113 |
31.4% |
2,532,588 |
2,097,756 |
20.7% |
||||||||
Operating Profit |
(129,724) |
110,849 |
n/m |
74,292 |
n/m |
145,039 |
424,031 |
-65.8% |
||||||||
Non-operating Income (Expense): |
||||||||||||||||
Finance cost |
(9,151) |
(8,725) |
4.9% |
(8,954) |
2.2% |
(35,850) |
(35,223) |
1.8% |
||||||||
Finance income |
6,115 |
5,443 |
12.3% |
6,228 |
-1.8% |
23,628 |
17,939 |
31.7% |
||||||||
Gain (loss) on foreign currency fluctuations |
(18,687) |
5,687 |
n/m |
(2,571) |
n/m |
(9,952) |
6,145 |
n/m |
||||||||
Net change in fair value of derivatives |
- |
539 |
n/m |
- |
n/m |
0 |
2,801 |
n/m |
||||||||
Other non-operating income (expense) |
(496) |
(917) |
-45.9% |
40 |
n/m |
(239) |
(2,337) |
-89.8% |
||||||||
Total Non-Operating Income/(Expense) |
(22,219) |
2,028 |
n/m |
(5,257) |
n/m |
(22,413) |
(10,676) |
109.9% |
||||||||
Profit before taxes |
(151,944) |
112,876 |
n/m |
69,035 |
n/m |
122,626 |
413,354 |
-70.3% |
||||||||
Income tax expense |
4,063 |
11,522 |
-64.7% |
11,298 |
-64.0% |
34,530 |
49,310 |
-30.0% |
||||||||
Net Profit |
(156,007) |
101,354 |
n/m |
57,737 |
n/m |
88,096 |
364,044 |
-75.8% |
||||||||
EPS - Basic and Diluted |
-3.67 |
2.39 |
-253.8% |
1.36 |
-370.2% |
2.07 |
8.58 |
-75.8% |
||||||||
Shares - Basic and Diluted |
42,468,402 |
42,429,821 |
0.1% |
42,469,122 |
0.0% |
42,456,032 |
42,418,773 |
0.1% |
||||||||
* Restated for the retrospective adoption of IFRS 15 |
Copa Holdings, S. A. and subsidiaries |
|||||||||||||
Consolidated Statement of Cash Flows |
|||||||||||||
For the twelve months ended December 31, |
|||||||||||||
(In US$ thousands) |
|||||||||||||
2018 |
2017 |
2016 |
|||||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||||
Cash flow from operating activities |
341,531 |
690,020 |
555,506 |
||||||||||
Cash flow used in investing activities |
(103,037) |
(578,159) |
(179,909) |
||||||||||
Cash flow used in financing activities |
(323,937) |
(204,756) |
(248,625) |
||||||||||
Net (decrease) increase in cash and cash equivalents |
(85,443) |
(92,895) |
126,972 |
||||||||||
Cash and cash equivalents at January 1 |
238,792 |
331,687 |
204,715 |
||||||||||
Cash and cash equivalents at December 31 |
$ 153,349 |
$ 238,792 |
$ 331,687 |
||||||||||
Short-term investments |
566,200 |
705,108 |
483,002 |
||||||||||
Long-term investments |
138,846 |
65,953 |
953 |
||||||||||
Total cash and cash equivalents and investments at December 31 |
$ 858,395 |
$ 1,009,853 |
$ 815,642 |
Copa Holdings, S. A. and subsidiaries |
||
Balance Sheet - IFRS |
||
(US$ Thousands) |
December 31 |
December 31 |
2018 |
2017 |
|
(Unaudited) |
(Restated) * |
|
ASSETS |
||
Current Assets |
||
Cash and cash equivalents |
153,349 |
238,792 |
Restricted cash and cash equivalents |
- |
- |
Short-term investments |
566,200 |
705,108 |
Total cash, cash equivalents and short-term investments |
719,549 |
943,900 |
Accounts receivable, net |
117,570 |
115,323 |
Accounts receivable from related parties |
223 |
318 |
Expendable parts and supplies, net |
86,530 |
81,825 |
Prepaid expenses |
74,384 |
45,421 |
Prepaid income tax |
10,357 |
- |
Other current assets |
54,386 |
11,701 |
343,450 |
254,588 |
|
TOTAL CURRENT ASSETS |
1,062,999 |
1,198,488 |
Long-term investments |
138,846 |
65,953 |
Long-term accounts receivable |
2,247 |
2,444 |
Long-term prepaid expenses |
25,637 |
26,130 |
Property and equipment, net |
2,701,322 |
2,617,407 |
Intangible, net |
101,168 |
81,115 |
Net pension asset |
5,091 |
3,185 |
Deferred tax assets |
16,041 |
19,099 |
Other Non-Current Assets |
33,899 |
31,140 |
TOTAL NON-CURRENT ASSETS |
3,024,251 |
2,846,473 |
TOTAL ASSETS |
4,087,250 |
4,044,961 |
LIABILITIES AND EQUITY |
||
Current Liabilities: |
||
Current maturities of long-term debt |
307,371 |
298,462 |
Accounts payable |
129,462 |
116,554 |
Accounts payable to related parties |
15,464 |
12,880 |
Air traffic liability |
471,676 |
477,168 |
Frequent flyer deferred revenue |
30,342 |
17,197 |
Taxes and interest payable |
44,749 |
70,077 |
Accrued expenses payable |
42,890 |
60,321 |
Income tax payable |
- |
3,700 |
Other Current Liabilities |
604 |
1,156 |
TOTAL CURRENT LIABILITIES |
1,042,558 |
1,057,515 |
Long-term debt |
979,877 |
876,119 |
Frequent flyer deferred revenue |
37,472 |
33,115 |
Other long - term liabilities |
137,724 |
130,621 |
Deferred tax Liabilities |
48,940 |
52,465 |
TOTAL NON-CURRENT LIABILITIES |
1,204,013 |
1,092,320 |
TOTAL LIABILITIES |
2,246,571 |
2,149,835 |
EQUITY |
||
Issued Capital |
||
Class A -33,816,276issued and 31,257,686 outstanding |
21,087 |
21,038 |
Class B common stock - 10,938,125 |
7,466 |
7,466 |
Additional Paid-In Capital |
80,041 |
72,945 |
Treasury Stock |
(136,388) |
(136,388) |
Retained Earnings |
1,784,605 |
1,564,295 |
Net Income |
88,095 |
369,658 |
Other Comprehensive Income |
(4,227) |
(3,888) |
TOTAL EQUITY |
1,840,679 |
1,895,126 |
TOTAL LIABILITIES AND EQUITY |
4,087,250 |
4,044,961 |
* Restated for the retrospective adoption of IFRS 15 |
Copa Holdings, S.A.
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non IFRS financial measures: Adjusted CASM Excluding Fuel, 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 |
4Q18 |
4Q17* |
3Q18 |
FY18 |
FY17* |
|||||
Operating Profit as Reported |
$ (129,724) |
$ 110,849 |
$ 74,292 |
$ 145,039 |
$ 424,031 |
|||||
Special Items (adjustments): |
||||||||||
Fleet Impairment |
$ 188,624 |
$ 188,624 |
||||||||
Adjusted Operating Profit |
$ 58,900 |
$ 110,849 |
$ 74,292 |
$ 333,663 |
$ 424,031 |
|||||
Net profit as Reported |
$ (156,007) |
$ 101,354 |
$ 57,737 |
$ 88,096 |
$ 364,044 |
|||||
Special Items (adjustments): |
||||||||||
Fleet Impairment |
$ 188,624 |
$ 188,624 |
||||||||
Loss on foreign currency fluctuations |
$ 11,364 |
$ (11,364) |
$ (11,364) |
|||||||
Net change in fair value of derivatives |
$ - |
$ (539) |
$ - |
$ (2,801) |
||||||
Adjusted Net Profit |
$ 43,981 |
$ 89,451 |
$ 57,737 |
$ 276,720 |
$ 349,879 |
|||||
Shares used for Computation (in thousands) |
||||||||||
Basic and Diluted |
42,468 |
42,430 |
42,469 |
42,456 |
42,419 |
|||||
Adjusted earnings per share - Basic and Diluted |
$ 1.04 |
$ 2.11 |
$ 1.36 |
$ 6.52 |
$ 8.25 |
|||||
Reconciliation of Adjusted Operating Costs per ASM |
||||||||||
Excluding Fuel (CASM Excl. Fuel) |
4Q18 |
4Q17* |
3Q18 |
FY18 |
FY17* |
|||||
Operating Costs per ASM as Reported (in US$ Cents) |
12.2 |
9.2 |
9.0 |
9.8 |
8.8 |
|||||
Fleet Impairment per ASM (in US$ Cents) |
2.9 |
0.8 |
||||||||
Aircraft fuel per ASM (in US$ Cents) |
3.0 |
(2.6) |
(3.1) |
3.0 |
(2.4) |
|||||
Adjusted Operating Costs per ASM excluding fuel (in US$ Cents) |
6.2 |
6.6 |
6.0 |
6.1 |
6.4 |
|||||
* Restated for the retrospective adoption of IFRS 15 |
View original content:http://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-fourth-quarter-of-2018-300795412.html
SOURCE Copa Holdings, S.A.