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Wed. 11 May 2022, 5:22pm ET Benzinga Earnings, Press Releases

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 2022Santa 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

 

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SOURCE Copa Holdings, S.A.