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press release

Aug. 4, 2021, 5:30 p.m. EDT

Copa Holdings Reports Financial Results for the Second Quarter of 2021

PANAMA CITY, Aug. 4, 2021 /PRNewswire/ -- Copa Holdings, S.A. /zigman2/quotes/201099371/composite CPA +1.76% , today announced financial results for the second quarter of 2021 (2Q21). 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 2019 (2Q19) (which the Company believes are more relevant than year-over-year comparisons due to the significant impacts in 2020 of the COVID-19 pandemic).

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported a net profit of US$28.1 million for the quarter or US$0.66 per share.  Excluding special items, the Company would have reported a net loss of US$16.2 million or US$0.38 per share.  Special items include a US$33.9 million unrealized mark-to-market gain related to the Company's convertible notes and a passenger revenue adjustment of US$10.4 million related to 2019 and 2020 sales.

  • Copa Holdings reported an operating profit of US$8.7 million for the quarter. Excluding the US$10.4 million passenger revenue adjustment, the company would have reported an operating loss of US$1.7 million.

  • Cash accretion, defined as cash proceeds minus disbursements, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, averaged approximately US$21 million per month during the quarter. 

  • The Company ended the quarter with US$1.6 billion of available liquidity, consisting of approximately US$1.3 billion in cash, short-term and long-term investments, and US$345 million of committed and undrawn credit facilities.

  • The Company closed the quarter with total debt, including lease liabilities, of US$1.6 billion.

  • The Company's flight operations, measured in terms of available seat miles (ASMs), represented approximately 48% of the capacity flown in the same period in 2019.

  • During the quarter, 3 Embraer 190 aircraft exited the fleet as part of a previously agreed sale to a third party. As of June 30, 2021, there was one remaining Embraer 190 aircraft pending to be delivered to the buyer.

  • Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage, Copa Holdings ended the quarter with a consolidated fleet of 81 aircraft – 68 Boeing 737-800s and 13 Boeing 737 MAX 9s, compared to a total fleet of 102 aircraft at the end of the first quarter of 2020.

  • During the quarter, Copa Airlines had an on-time performance of 92.1% and a flight completion factor of 99.5%, once again positioning itself amongst the best in the industry.

Subsequent Events

  • In July, Copa Airlines' last remaining Embraer 190 aircraft was delivered to its new owner.  

  • The Company entered into an agreement for the sale of 6 737-700s and has now decided to keep the remaining 6 737-700s.

 

Consolidated Financial & Operating Highlights 2Q21 2Q19 (3) Variance vs. 2Q19 1Q21 Variance vs. 1Q21
Revenue Passengers Carried (000s) 1,175 2,550 -53.9% 924 27.2%
RPMs (millions)  2,268 5,249 -56.8% 1,716 32.1%
ASMs (millions)  2,949 6,166 -52.2% 2,481 18.9%
Load Factor  76.9% 85.1% -8.2 p.p. 69.2% 7.7 p.p.
Yield (US$ Cents)  12.4 11.8 4.9% 10.1 23.0%
PRASM (US$ Cents)  9.5 10.1 -5.2% 7.0 36.7%
RASM (US$ Cents)  10.3 10.5 -1.4% 7.5 37.8%
CASM (US$ Cents)  10.0 9.1 9.8% 10.6 -5.4%
CASM Excl. Fuel (US$ Cents)  7.6 6.2 22.3% 8.5 -10.4%
Fuel Gallons Consumed (millions)  35.3 79.31 -55.5% 29.1 21.4%
Avg. Price Per Fuel Gallon (US$) 1.98 2.22 -10.9% 1.75 13.0%
Average Length of Haul (miles) 1,930 2,058 -6.2% 1,858 3.9%
Average Stage Length (miles) 1,194 1,279 -6.7% 1,256 -5.0%
Departures 15,366 32,676 -53.0% 12,372 24.2%
Block Hours 46,426 106,425 -56.4% 38,851 19.5%
Average Aircraft Utilization (hours) (2) 8.0 11.2 -29.1% 6.6 21.3%
Operating Revenues (US$ millions)  304.3 645.1 -52.8% 185.7 63.9%
Operating Profit (Loss) (US$ millions) 8.7 82.6 -89.4% (77.1) -111.3%
Adjusted Operating Profit (Loss) (US$ millions) (1) (1.7) 82.6 -102.0% (77.1) -97.8%
Operating Margin  2.9% 12.8% -9.9 p.p. -41.5% 44.4 p.p.
Adjusted Operating Margin (1) -0.6% 12.8% -13.4 p.p. -41.5% 40.9 p.p.
Net Profit (Loss) (US$ millions) 28.1 50.9 -44.8% (110.7) -125.4%
Adjusted Net Profit (Loss) (US$ millions) (1) (16.2) 50.9 -131.9% (95.1) -82.9%
Basic EPS (US$) 0.66 1.20 -45.0% (2.60) -125.3%
Adjusted Basic EPS (US$) (1) (0.38) 1.20 -131.8% (2.23) -83.0%
Shares  for calculation of Basic EPS (000s)  42,651 42,478 0.4% 42,571 0.2%

 

(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 as well as those classified as assets held for sale.
(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 2Q21 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:

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

2Q21 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

  August 5, 2021

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.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
Audited
%
Audited
%


2Q21
2Q19
Change
1Q21
Change
Operating Revenues









Passenger revenue
281,258
620,538
-54.7%
173,095
62.5%
Cargo and mail revenue
16,689
16,464
1.4%
7,956
109.8%
Other operating revenue
6,311
8,100
-22.1%
4,626
36.4%
Total Operating Revenue
304,259
645,102
-52.8%
185,677
63.9%











Operating Expenses









Fuel
70,156
177,169
-60.4%
51,308
36.7%
Wages, salaries, benefits and other employees' expenses
55,071
108,342
-49.2%
54,575
0.9%
Passenger servicing
7,502
25,530
-70.6%
5,586
34.3%
Airport facilities and handling charges
27,021
44,698
-39.5%
22,044
22.6%
Sales and distribution
28,441
51,289
-44.5%
21,652
31.4%
Maintenance, materials and repairs
17,773
31,235
-43.1%
19,727
-9.9%
Depreciation and amortization
59,526
70,549
-15.6%
59,450
0.1%
Flight operations
10,891
25,450
-57.2%
9,410
15.7%
Other operating and administrative expenses
19,140
28,240
-32.2%
19,006
0.7%
Total Operating Expense
295,523
562,502
-47.5%
262,759
12.5%











Operating Profit (Loss)
8,736
82,601
-89.4%
(77,081)
-111.3%











Non-operating Income (Expense):









Finance cost
(18,625)
(13,573)
37.2%
(17,818)
4.5%
Finance income
2,745
6,041
-54.6%
2,853
-3.8%
Gain (loss) on foreign currency fluctuations
764
(2,213)
-134.5%
(1,809)
-142.2%
Net change in fair value of derivatives
33,898
-
n/m
(15,663)
-316.4%
Other non-operating income (expense)
417
(2,115)
-119.7%
(976)
-142.7%
Total Non-Operating Income/(Expense)
19,198
(11,859)
-261.9%
(33,412)
-157.5%











Profit (Loss) before taxes
27,935
70,742
-60.5%
(110,494)
-125.3%











Income tax expense
(138)
19,876
-100.7%
239
-157.7%











Net Profit (Loss)
28,073
50,866
-44.8%
(110,733)
-125.4%











EPS









Basic
0.66
1.20
-45.0%
-2.60
-125.3%











Shares used for calculation:









Basic
42,650,595
42,478,415


42,570,983

 

Copa Holdings, S. A. and subsidiaries 

Consolidated statement of financial position 

(US$ Thousands) June December

2021 2020

 (Unaudited) 
 ASSETS 

 Current Assets 

Cash and cash equivalents 256,764 119,065
Short-term investments 925,680 770,816
Total cash, cash equivalents and short-term investments 1,182,444 889,881



Accounts receivable, net 103,956 63,206
Accounts receivable from related parties 1,383 1,429
Expendable parts and supplies, net 70,867 74,319
Prepaid expenses 25,444 30,473
Prepaid income tax 14,264 16,716
Other current assets 7,825 7,805

223,739 193,948
Assets held for sale  34,157 135,542



TOTAL CURRENT ASSETS 1,440,339 1,219,371



Long-term investments 99,235 119,617
Long-term accounts receivable 1,042 1,054
Long-term prepaid expenses 6,554 6,066
Property and equipment, net 2,255,792 2,147,486
Right of use assets 178,103 214,279
Intangible, net 88,031 95,568
Deferred tax assets 37,854 35,595
Other Non-Current Assets 15,136 14,348
TOTAL NON-CURRENT ASSETS 2,681,748 2,634,013



TOTAL ASSETS 4,122,088 3,853,385



 LIABILITIES 

Loans and borrowings 153,515 127,946
Current portion of lease liability 79,573 83,605
Accounts payable 97,355 63,461
Accounts payable to related parties 4,661 2,970
Air traffic liability 538,768 470,695
Frequent flyer deferred revenue 93,036 91,213
Taxes Payable 29,587 13,400
Employee benefits obligations 13,671 33,995
Income tax payable 1,912 1,023
Other Current Liabilities 3,801 252
TOTAL CURRENT LIABILITIES 1,015,879 888,561



Loans and borrowings long-term 1,283,447 1,035,954
Lease Liability 112,003 146,905
Net employee defined benefit liabilities 12,018 14,332
Derivative financial instruments 227,325 245,560
Deferred tax Liabilities 19,534 22,190
Other long - term liabilities 247,668 216,325
TOTAL NON-CURRENT LIABILITIES 1,901,994 1,681,265



TOTAL LIABILITIES 2,917,874 2,569,825



 EQUITY 

 Issued Capital 

Class A - 33,998,981 issued and 31,545,862 outstanding 21,284 21,199
Class B common stock - 10,938,125 7,466 7,466
Additional Paid-In Capital 94,588 91,341
Treasury Stock (136,388) (136,388)
Retained Earnings 1,324,025 1,931,086
Net loss (82,660) (607,062)
Other comprehensive loss (24,099) (24,082)



TOTAL EQUITY 1,204,214 1,283,560



TOTAL EQUITY & LIABILITIES 4,122,088 3,853,385



 

Copa Holdings, S. A. and subsidiaries 





Consolidated Statement of Cash Flows





For the six months ended June 30, 





(In US$ thousands)


















2021
2020
2019










(Unaudited)
(Unaudited)
(Unaudited)
Cash flow from (used in) operating activities 
149,669
(56,632)
331,143
Cash flow used in investing activities 
(119,776)
(48,009)
(8,691)
Cash flow from (used in) financing activities 
107,806
253,205
(252,469)
Net increase in cash and cash equivalents 
137,699
148,564
69,982
Cash and cash equivalents at January 1
119,065
158,733
156,158
Cash and cash equivalents at June 30
$                    256,764
$                    307,297
$                    226,140















Short-term investments 

925,680
740,887
523,134
Long-term investments 

99,235
94,540
144,072
Total cash and cash equivalents and investments at June 30
$                1,281,679
$                1,142,724
$                    893,346

 

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 and Monthly Cash Consumption. 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

2Q21

2Q20

1Q21

2Q19














Operating Profit as Reported
$ 8,736
$ (357,875)
$ (77,081)
$ 82,601
   Add: Unredeemed Ticket Revenue provision reversal
$ (10,395)
$ 12,341






   Add: Fleet Impairment loss



$ 186,807






   Add: Expected loss (gain) on Embraer assets held for sale



$ 50,048






Adjusted Operating Profit
$ (1,659)
$ (108,679)
$ (77,081)
$ 82,601














Net Profit as Reported
$ 28,073
$ (386,018)
$ (110,733)
$ 50,866
   Add: Unredeemed Ticket Revenue provision reversal
$ (10,395)
$ 12,341






   Add: Fleet Impairment loss



$ 186,807






   Add: Expected loss (gain) on Embraer assets held for sale



$ 50,048






Add: Net change in fair value of derivatives
$ (33,898)
$ 22,198
$ 15,663



Adjusted Net Profit
$ (16,220)
$ (114,624)
$ (95,070)
$ 50,866














Reconciliation of Adjusted Basic EPS

2Q21

2Q20

1Q21

2Q19














Adjusted Net Profit
$ (16,220)
$ (114,624)
$ (95,070)
$ 50,866
Shares used for calculation of Basic EPS

42,651

42,512

42,571

42,478
Adjusted Basic Earnings per share (Adjusted Basic EPS)
$ (0.38)
$ (2.70)
$ (2.23)
$ 1.20














Reconciliation of Monthly Cash Accretion (Consumption) for 2020 and 2021

2Q21

1Q21

4Q20

3Q20
Beginning Cash balance
$ 1,203
$ 1,009
$ 1,006
$ 1,143
Ending Cash balance
$ 1,282
$ 1,203
$ 1,009
$ 1,006
Net cashflows in the quarter
$ 79
$ 194
$ 4
$ (137)
   Subtract: Net Proceeds from new Aircraft Financing & Pre Delivery Payments
$ (21)
$ 241
$ -
$ -
   Subtract: Others proceeds (assets sold and other non-op proceeds)
$ 36
$ 20
$ 23
$ 22
   Add: Repayment of short term credit lines
$ -
$ -
$ -
$ 50
Cash Consumption excluding extraordinary activities
$ 64
$ (68)
$ (19)
$ (109)
Monthly Cash Accretion (Consumption) excluding extraordinary  activities
$ 21
$ (23)
$ (6)
$ (36)

 

Cision
View original content: https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-second-quarter-of-2021-301348782.html

SOURCE Copa Holdings, S.A.

COMTEX_390949493/2454/2021-08-04T17:30:21

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/zigman2/quotes/201099371/composite
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P/E Ratio
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