CPA
$99.36
Copa Holdings S.A.
($2.66)
(2.61%)
Earnings Details
2nd Quarter June 2019
Wednesday, August 07, 2019 4:35:00 PM
Tweet Share Watch
Summary

Copa Holdings S.A. (CPA) Recent Earnings

Copa Holdings S.A. (CPA) reported 2nd Quarter June 2019 earnings of $1.20 per share on revenue of $645.1 million. The consensus earnings estimate was $1.05 per share on revenue of $627.2 million. Revenue grew 1.7% on a year-over-year basis.

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
$1.20
Earnings Whisper
-
Consensus Estimate
$1.05
Reported Revenue
$645.1 Mil
Revenue Estimate
$627.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Copa Holdings Reports Net Profit of $50.9 million and EPS of $1.20 for the Second Quarter of 2019

PANAMA CITY, Aug. 7, 2019 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the second quarter of 2019 (2Q19). 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 second quarter of 2018 (2Q18).

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported net profit of US$50.9 million for 2Q19 or earnings per share (EPS) of US$1.20, compared to net profit of US$49.8 million or earnings per share of US$1.17 in 2Q18.
  • Operating profit for 2Q19 came in at US$82.6 million, representing a 36.7% increase from an operating profit of US$60.4 million in 2Q18, as a result of a 6.3% increase in unit revenues (RASM), partly offset by a 2.5% increase in unit costs (CASM) which was mostly related to the grounding of the MAX fleet.
  • Operating margin for 2Q19 came in at 12.8%, compared to an operating margin of 9.5% in 2Q18.
  • Capacity (ASMs) decreased 4.3% in 2Q19, all due to the grounding of the MAX fleet, while consolidated passenger traffic (RPMs) decreased only 2.5%. As a result, consolidated load factor for the quarter increased 1.6 percentage points to 85.1%.
  • Total revenues for 2Q19 increased 1.7% to US$645.1 million. Yield per passenger mile increased 4.1% to 11.8 cents and RASM came in at 10.5 cents, 6.3% higher than 2Q18.
  • Operating cost per available seat mile (CASM) increased 2.5%, from 8.9 cents in 2Q18 to 9.1 cents in 2Q19. Excluding Fuel, unit costs increased 5.7% from 5.9 cents in 2Q18 to 6.2 cents in 2Q19, mainly due to the lower capacity and the timing of certain expenses.
  • Cash, short-term and long-term investments ended the quarter at US$ 893.3 million, representing approximately 34% of the last twelve months' revenues.
  • Despite the operational challenges due to the grounding of the MAX fleet, Copa Airlines delivered an on-time performance of 90.5% and a flight-completion factor of 99.8%, maintaining its position among the very best in the industry.
  • Copa Holdings ended the quarter with a consolidated fleet of 104 aircraft – 68 Boeing 737-800s, 14 Boeing 737-700s, 16 Embraer-190s and 6 Boeing MAX9s
  • The Company has not taken any aircraft deliveries since the world-wide grounding of the MAX fleet took effect in March. As per its original growth plan for 2019, The Company should have received three additional MAX 9s in the first half of 2019, and four more MAX 9s in the rest of the year.

Subsequent Events  

  • Copa Holdings will pay its third quarterly dividend of $0.65 per share on September 13, to all Class A and Class B shareholders on record as of August 30, 2019.
  • As part of the world-wide grounding of the MAX fleet, the Company has removed all MAX operations from its schedule until December 15th, 2019.
  • The Company is announcing it will host an Investor Day, on December 3rd and 4th in Panama City.

 

Consolidated Financial
& Operating Highlights

2Q19

2Q18*

Variance
vs. 2Q18*

1Q19

Variance
vs. 1Q19

Revenue Passengers Carried ('000)

2,550

2,458

3.7%

2,588

-1.5%

RPMs (mm) 

5,249

5,384

-2.5%

5,345

-1.8%

ASMs (mm) 

6,166

6,446

-4.3%

6,415

-3.9%

Load Factor 

85.1%

83.5%

1.6 p.p.

83.3%

1.8 p.p.

Yield

11.8

11.4

4.1%

12.1

-2.6%

PRASM (US$ Cents) 

10.1

9.5

6.1%

10.1

-0.5%

RASM (US$ Cents) 

10.5

9.8

6.3%

10.5

-0.1%

CASM (US$ Cents) 

9.1

8.9

-2.5%

8.7

-4.6%

CASM Excl. Fuel (US$ Cents) 

6.2

5.9

-5.7%

6.1

-3.0%

Fuel Gallons Consumed (Millions) 

79.3

81.7

2.9%

81.2

2.3%

Avg. Price Per Fuel Gallon (US$ Dollars)

2.22

2.35

5.3%

2.09

-6.6%

Average Length of Haul (Miles)

2,058

2,190

-6.0%

2,065

-0.3%

Average Stage Length (Miles)

1,279

1,331

-3.9%

1,299

-1.5%

Departures

32,676

32,843

-0.5%

33,329

-2.0%

Block Hours

106,425

110,893

-4.0%

110,089

-3.3%

Average Aircraft Utilization (Hours)

11.2

12.1

-6.8%

11.6

-3.5%

Operating Revenues (US$ mm) 

645.1

634.1

1.7%

672.2

-4.0%

Operating Profit (US$ mm)

82.6

60.4

36.7%

112.9

-26.8%

Operating Margin 

12.8%

9.5%

3.3 p.p.

16.8%

-4.0 p.p.

Net Profit (US$ mm)

50.9

49.8

2.1%

89.4

-43.1%

Adjusted Net Profit (US$ mm) (1)

50.9

38.4

32.3%

89.4

-43.1%

EPS - Basic and Diluted (US$)

1.20

1.17

2.1%

2.11

-43.1%

Adjusted EPS - Basic and Diluted (US$) (1)

1.20

0.91

32.2%

2.11

-43.1%

# of Shares - Basic and Diluted ('000) 

42,478

42,447

0.1%

42,478

0.0%







(1) Adjusted Net Profit and Adjusted EPS for 2Q18, exclude a currency translation adjustment.

*  Restated for the retrospective adoption of IFRS 16

Notes:

Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.

The Company is taking into account the 6 MAX9 aircraft currently in its fleet in the calculation of all its financial and operating statistics.

FULL 2Q19 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:

https://copa.gcs-web.com/financial-information/quarterly-results

2Q19 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST


Date:

August 8, 2019

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 80 destinations in 32 countries in North, Central and South America and the Caribbean with one of the youngest and most modern fleets in the industry, consisting of 104 aircraft: 82 Boeing 737NG aircraft, 6 Boeing 737 MAX9s and 16 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


%



2Q19


2Q18*


Change


1Q19


Change

Operating Revenues











Passenger revenue


620,538


611,605


1.5%


648,790


-4.4%

Cargo and mail revenue


16,464


16,003


2.9%


15,316


7.5%

Other operating revenue


8,100


6,528


24.1%


8,063


0.5%

Total Operating Revenue


645,102


634,136


1.7%


672,169


-4.0%












Operating Expenses











Fuel


177,169


192,474


-8.0%


170,163


4.1%

Wages, salaries, benefits and other employees' expenses


108,342


108,449


-0.1%


113,662


-4.7%

Passenger servicing


25,530


26,113


-2.2%


25,571


-0.2%

Airport facilities and handling charges


44,698


45,945


-2.7%


45,362


-1.5%

Sales and distribution


51,289


52,760


-2.8%


53,133


-3.5%

Maintenance, materials and repairs


31,235


27,840


12.2%


28,047


11.4%

Depreciation and amortization


70,549


70,003


0.8%


68,187


3.5%

Flight operations


25,450


25,417


0.1%


25,875


-1.6%

Other operating and administrative expenses


28,240


24,706


14.3%


29,297


-3.6%

Total Operating Expense


562,502


573,707


-2.0%


559,296


0.6%












Operating Profit


82,601


60,430


36.7%


112,873


-26.8%












Non-operating Income (Expense):











Finance cost


(13,573)


(13,036)


4.1%


(14,010)


-3.1%

Finance income


6,041


6,038


0.0%


5,954


1.5%

Gain (loss) on foreign currency fluctuations


(2,213)


3,992


n/m


(5,960)


n/m

Other non-operating income (expense)


(2,115)


(279)


n/m


(825)


156.4%

Total Non-Operating Income/(Expense)


(11,859)


(3,285)


261.0%


(14,841)


-20.1%












Profit before taxes


70,742


57,144


23.8%


98,032


-27.8%












Income tax expense


19,876


7,343


170.7%


8,600


131.1%












Net Profit


50,866


49,801


2.1%


89,431


-43.1%























EPS - Basic and Diluted


1.20


1.17


2.1%


2.11


-43.1%

Shares - Basic and Diluted


42,478,415


42,447,386


0.1%


42,477,761


0.0%












 *  Restated for retrospective adoption of IFRS 16 

 

 

Copa Holdings, S. A. and subsidiaries 

Consolidated statement of financial position 

(US$ Thousands)

June 30

December 31


2019

2018


 (Unaudited) 

 (Restated) * 

 ASSETS 






 Current Assets 



Cash and cash equivalents

226,140

156,158

Short-term investments

523,134

566,200

Total cash, cash equivalents and short-term investments

749,275

722,359




Accounts receivable, net

159,004

115,831

Accounts receivable from related parties

3,225

223

Expendable parts and supplies, net

93,496

86,530

Prepaid expenses

52,522

74,384

Prepaid income tax

3,610

10,357

Other current assets

26,342

54,387

TOTAL CURRENT ASSETS

1,087,474

1,064,071




Long-term investments

144,072

138,846

Long-term accounts receivable

1,942

1,177

Long-term prepaid expenses

28,874

25,637

Property and equipment, net

2,754,928

2,701,322

Right of use assets

339,244

361,993

Intangible, net

107,399

101,168

Net pension asset

5,586

5,091

Deferred tax assets

17,343

16,041

Other Non-Current Assets

34,223

33,899

TOTAL NON-CURRENT ASSETS

3,433,612

3,385,174




TOTAL ASSETS

4,521,085

4,449,245




Current maturities of long-term debt

236,541

311,965

Current portion of lease liability

100,105

102,452

Accounts payable

87,672

129,851

Accounts payable to related parties

13,172

14,674

Air traffic liability

526,299

471,676

Frequent flyer deferred revenue

74,425

67,814

Taxes and interest payable

58,536

44,749

Employee benefits obligations

39,473

42,890

Other Current Liabilities

277

604

TOTAL CURRENT LIABILITIES

1,136,501

1,186,674


-


Long-term debt

1,005,385

975,283

Lease Liability

253,057

273,231

Other long - term liabilities

175,180

161,571

Deferred tax Liabilities

60,455

48,940

TOTAL NON-CURRENT LIABILITIES

1,494,077

1,459,025




TOTAL LIABILITIES

2,630,578

2,645,700




 EQUITY 



 Issued Capital 



Class A -33,825,130 issued and 31,328,697 outstanding

21,136

21,087

Class B common stock - 10,938,125

7,466

7,466

Additional Paid-In Capital

82,976

80,041

Treasury Stock

(136,388)

(136,388)

Retained Earnings

1,780,398

1,835,566

Net profit 

140,297

-

Other comprehensive loss

(5,378)

(4,227)




TOTAL EQUITY

1,890,507

1,803,545




TOTAL EQUITY LIABILITIES

4,521,085

4,449,245




*Restated for the retrospective adoption of IFRS 16.



 

 

Consolidated Statement of Cash Flows

For the six months ended June 30

(In US$ thousands)



2019


2018


2017



(Unaudited)


(Unaudited)


(Unaudited)

Cash flow from operating activities 


331,143


267,114


330,227

Cash flow used in investing activities 


(8,691)


(105,907)


(241,655)

Cash flow used in financing activities 


(252,469)


(228,840)


(227,391)

Net increase (decrease) in cash and cash equivalents 


69,982


(67,633)


(138,819)

Cash and cash equivalents at January 1


156,158


238,792


331,687

Cash and cash equivalents at June 30


$                     226,140


$   171,159


$   192,868








Short-term investments 


523,134


604,869


679,991

Long-term investments 


144,072


171,356


953

Total cash and cash equivalents and investments at June 30


$                     893,346


$   947,384


$   873,812

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


2Q19


2Q18*


1Q19








Net profit as Reported


$ 50,866


$  49,801


$   89,431

Special Items (adjustments):







Gain on foreign currency fluctuations




$ (11,364)










Adjusted Net Profit


$ 50,866


$  38,437


$   89,431








Shares used for Computation (in thousands)







     Basic and Diluted


42,478


42,447


42,478








Adjusted earnings per share - Basic and Diluted


$      1.20


$       0.91


$        2.11






















Reconciliation of Operating Costs per ASM







Excluding Fuel (CASM Excl. Fuel)


2Q19


2Q18*


1Q19








Operating Costs per ASM as Reported (in US$ Cents)


9.1


8.9


8.7

Aircraft fuel per ASM  (in US$ Cents)


(2.9)


(3.0)


(2.7)

Operating Costs per ASM excluding fuel  (in US$ Cents)


6.2


5.9


6.1








 *  Restated for retrospective adoption of IFRS 16 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/copa-holdings-reports-net-profit-of-50-9-million-and-eps-of-1-20-for-the-second-quarter-of-2019--300898239.html

SOURCE Copa Holdings, S.A.