CPA
$97.16
Copa Holdings S.A.
$1.21
1.26%
Earnings Details
1st Quarter March 2019
Wednesday, May 08, 2019 4:45:00 PM
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Summary

Copa Holdings S.A. (CPA) Recent Earnings

Copa Holdings S.A. (CPA) reported 1st Quarter March 2019 earnings of $2.11 per share on revenue of $672.2 million. The consensus earnings estimate was $1.64 per share on revenue of $672.3 million. Revenue fell 6.0% compared to the same quarter a year ago.

Copa Holdings SA is a provider of airline passenger and cargo service through its two operating subsidiaries, Copa Airlines and Copa Colombia.

Results
Reported Earnings
$2.11
Earnings Whisper
-
Consensus Estimate
$1.64
Reported Revenue
$672.2 Mil
Revenue Estimate
$672.3 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Copa Holdings Reports Net Profit of $89.4 million and EPS of $2.11 for the First Quarter of 2019

PANAMA CITY, May 8, 2019 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: 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
& Operating Highlights

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.

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:

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 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 

 

Cision View original content:http://www.prnewswire.com/news-releases/copa-holdings-reports-net-profit-of-89-4-million-and-eps-of-2-11-for-the-first-quarter-of-2019--300846614.html

SOURCE Copa Holdings, S.A.