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press release

Nov. 17, 2021, 5:00 p.m. EST

Copa Holdings Reports Financial Results for the Third Quarter of 2021

Cision

PANAMA CITY, Panama, Nov. 17, 2021 /PRNewswire/ -- Copa Holdings, S.A. /zigman2/quotes/201099371/composite CPA -0.28% , today announced financial results for the third quarter of 2021 (3Q21). 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 third quarter of 2019 (3Q19) (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$8.2 million for the quarter or US$0.19 per share. Excluding special items, the Company would have reported a net profit of US$29.9 million or US$0.70 per share.  Special items include a US$32.1 million unrealized mark-to-market loss related to the Company's convertible notes and a passenger revenue adjustment of (US$10.4) million corresponding to unredeemed coupons from 2019 and 2020 sales.

  • Copa Holdings reported an operating profit of US$59.0 million for the quarter and an operating margin of 13.3%. Excluding the US$10.4 million passenger unredeemed coupon revenue adjustment, the Company would have reported an operating profit of US$48.6 million and an 11.2% operating margin.

  • Operating cost per available seat mile (CASM) decreased 12.4% vs. 2Q21 to 8.8 cents. While CASM, excluding fuel costs, decreased 18.6% to 6.2 cents.

  • Cash buildup, defined as cash proceeds minus disbursements, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, resulted in US$54 million for 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.

  • Flight operations, measured in terms of available seat miles (ASMs), represented 68.9% of the capacity flown over the same period in 2019.

  • During the quarter, the Company announced three new destinations starting December 2021 — Atlanta in the U.S. and Armenia and Cucuta in Colombia.

  • During the quarter, the Company exited the last Embraer 190 in its fleet and delivered two Boeing 737-700s to their new owner.

  • 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 87 aircraft – 68 Boeing 737-800s, 13 Boeing 737 MAX 9s, and 6 Boeing 737-700s, compared to a fleet of 102 aircraft the Company operated prior to the COVID-19 pandemic.

  • The Company agreed with Boeing to accelerate the delivery of 12 Boeing 737 MAX 9s from its current order, two in 2022 and the other ten between 2023 and 2025.

  • Copa Airlines had an on-time performance for the quarter of 89.4% and a flight completion factor of 99.84%, once again positioning itself amongst the best in the industry.

Consolidated Financial & Operating Highlights 3Q21 3Q19 (3) Variancevs. 3Q19 2Q21 Variancevs. 2Q21
Revenue Passengers Carried (000s) 1,823 2,703 -32.6% 1,175 55.1%
RPMs (millions)  3,485 5,466 -36.2% 2,268 53.7%
ASMs (millions)  4,396 6,383 -31.1% 2,949 49.1%
Load Factor  79.3% 85.6% -6.4 p.p. 76.9% 2.4 p.p.
Yield (US$ Cents)  12.0 12.5 -4.5% 12.4 -3.4%
PRASM (US$ Cents)  9.5 10.7 -11.5% 9.5 -0.4%
RASM (US$ Cents)  10.1 11.1 -8.8% 10.3 -1.9%
CASM (US$ Cents)  8.8 9.0 -2.6% 10.0 -12.4%
CASM Excl. Fuel (US$ Cents)  6.2 6.2 -0.2% 7.6 -18.6%
Fuel Gallons Consumed (millions)  52.0 82.0 -36.5% 35.3 47.4%
Avg. Price Per Fuel Gallon (US$) 2.13 2.16 -1.0% 1.98 7.7%
Average Length of Haul (miles) 1,912 2,022 -5.4% 1,930 -0.9%
Average Stage Length (miles) 1,213 1,295 -6.3% 1,194 1.6%
Departures 22,559 33,373 -32.4% 15,366 46.8%
Block Hours 69,308 109,614 -36.8% 46,426 49.3%
Average Aircraft Utilization (Hours) (2) 10.7 11.5 -7.2% 8.0 33.7%
Operating Revenues (US$ millions)  445.0 708.2 -37.2% 304.3 46.3%
Operating Profit (Loss) (US$ millions) 59.0 132.9 -55.6% 8.7 575.5%
Adjusted Operating Profit (Loss) (US$ millions) (1) 48.6 132.9 -63.4% (1.7) -3031.1%
Operating Margin  13.3% 18.8% -5.5 p.p. 2.9% 10.4 p.p.
Adjusted Operating Margin (1) 11.2% 18.8% -7.6 p.p. -0.6% 11.8 p.p.
Net Profit (Loss) (US$ millions) 8.2 104.0 -92.1% 28.1 -70.6%
Adjusted Net Profit (Loss) (US$ millions) (1) 29.9 104.0 -71.2% (16.2) -284.6%
Basic EPS (US$) 0.19 2.45 -92.1% 0.66 -70.6%
Adjusted Basic EPS (US$) (1) 0.70 2.45 -71.3% (0.38) -284.6%
Shares  for calculation of Basic EPS (000s)  42,649 42,487 0.4% 42,651 0.0%






(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 3Q21 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: https://copa.gcs-web.com/financial-information/quarterly-results

3Q21 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

  November 18, 2021

Time: 11:00 AM 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 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 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
%


3Q21
3Q19
Change
2Q21
Change
Operating Revenues









Passenger revenue
417,466
685,337
-39.1%
281,258
48.4%
Cargo and mail revenue
21,082
14,647
43.9%
16,689
26.3%
Other operating revenue
6,451
8,226
-21.6%
6,311
2.2%
Total Operating Revenue
444,999
708,210
-37.2%
304,259
46.3%











Operating Expenses









Fuel
112,658
177,603
-36.6%
70,156
60.6%
Wages, salaries, benefits and other employees' expenses
68,049
113,398
-40.0%
55,071
23.6%
Passenger servicing
10,576
26,204
-59.6%
7,502
41.0%
Airport facilities and handling charges
39,407
47,022
-16.2%
27,021
45.8%
Sales and distribution
36,077
52,980
-31.9%
28,441
26.8%
Maintenance, materials and repairs
24,008
30,632
-21.6%
17,773
35.1%
Depreciation and amortization
55,702
72,876
-23.6%
59,526
-6.4%
Flight operations
16,291
26,572
-38.7%
10,891
49.6%
Other operating and administrative expenses
23,222
28,047
-17.2%
19,140
21.3%
Total Operating Expense
385,989
575,334
-32.9%
295,523
30.6%











Operating Profit (Loss)
59,010
132,876
-55.6%
8,736
575.5%











Non-operating Income (Expense):









Finance cost
(18,615)
(12,696)
46.6%
(18,625)
-0.1%
Finance income
2,679
6,121
-56.2%
2,745
-2.4%
Gain (loss) on foreign currency fluctuations
(2,620)
(9,641)
-72.8%
764
-443.1%
Net change in fair value of derivatives
(32,092)
-
n/m
33,898
-194.7%
Other non-operating income (expense)
(1,573)
(350)
349.1%
417
-477.6%
Total Non-Operating Income/(Expense)
(52,220)
(16,567)
215.2%
19,198
-372.0%











Profit (Loss) before taxes
6,790
116,309
-94.2%
27,935
-75.7%











Income tax expense
1,453
(12,332)
-111.8%
138
953.0%











Net Profit (Loss)
8,242
103,978
-92.1%
28,073
-70.6%











EPS









Basic
0.19
2.45
-92.1%
0.66
-70.6%











Shares used for calculation:









Basic
42,649,175
42,509,959


42,650,595

 

Copa Holdings, S. A. and subsidiaries 

Consolidated statement of financial position 

(US$ Thousands)


 September 2021   December 2020  
 ASSETS   (Unaudited)   (Audited)
 Current Assets 

Cash and cash equivalents 290,231 119,065
Short-term investments 901,645 770,816
Total cash, cash equivalents and short-term investments 1,191,876 889,881



Accounts receivable, net 110,035 63,206
Accounts receivable from related parties 1,562 1,429
Expendable parts and supplies, net 71,419 74,319
Prepaid expenses 25,650 30,473
Prepaid income tax 632 16,716
Other current assets 7,216 7,805

216,514 193,948
Asset held for sale 22,243 135,542
TOTAL CURRENT ASSETS 1,430,633 1,219,371



Long-term investments 96,955 119,617
Long-term accounts receivable 12 1,054
Long-term prepaid expenses 22,688 6,066
Property and equipment, net 2,306,626 2,147,486
Right of use assets 183,354 214,279
Intangible, net 84,530 95,568
Deferred tax assets 36,432 35,595
Other Non-Current Assets 14,788 14,348
TOTAL NON-CURRENT ASSETS 2,745,385 2,634,013



TOTAL ASSETS 4,176,018 3,853,385



LIABILITIES

Loans and borrowings 154,140 127,946
Current portion of lease liability 74,526 83,605
Accounts payable 101,201 63,461
Accounts payable to related parties 10,088 2,970
Air traffic liability 553,252 470,695
Frequent flyer deferred revenue 94,748 91,213
Taxes Payable 34,200 13,400
Employee benefits obligations 16,710 33,995
Income tax payable 2,473 1,023
Other Current Liabilities 2,606 252
TOTAL CURRENT LIABILITIES 1,043,943 888,560



Loans and borrowings long-term 1,253,536 1,035,954
Lease Liability 122,692 146,905
Net Defined Benefit Liability 12,343 14,332
Derivative financial instruments 259,417 245,560
Deferred tax Liabilities 18,104 22,190
Other long - term liabilities 251,741 216,325



TOTAL NON-CURRENT LIABILITIES 1,917,832 1,681,265
TOTAL LIABILITIES 2,961,775 2,569,824



EQUITY

Issued Capital

Class A - 33,998,654  issued and 31,552,671  outstanding 21,290 21,199
Class B - 10,938,125  7,466 7,466
Additional Paid-In Capital 96,463 91,341
Treasury Stock (136,483) (136,388)
Retained Earnings 1,324,025 1,931,086
Net profit (loss) (74,418) (607,062)
Other comprehensive income (loss) (24,099) (24,082)



TOTAL EQUITY 1,214,243 1,283,561
TOTAL EQUITY LIABILITIES 4,176,018 3,853,385



Copa Holdings, S. A. and subsidiaries 





Consolidated Statement of Cash Flows





For the nine months ended September 30, 





(In US$ thousands)















2021
2020
2019









(Unaudited)
(Unaudited)
(Unaudited)
Cash flow from (used in) operating activities 
263,252
(75,298)
548,947
Cash flow used in investing activities 
(140,844)
(2,333)
(32,863)
Cash flow from (used in) financing activities 
48,758
141,162
(446,953)
Net increase in cash and cash equivalents 
171,166
63,531
69,131
Cash and cash equivalents at January 1
119,065
158,732
156,158
Cash and cash equivalents at September 30
$               290,231
$               222,263
$               225,289














Short-term investments 
901,645
644,137
536,084
Long-term investments 
96,956
139,503
124,169
Total cash and cash equivalents and investments at September 30 $            1,288,832
$            1,005,903
$               885,542














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
3Q21
3Q20
2Q21
3Q19









Operating Profit as Reported
$          59,010
$      (106,966)
$            8,736
$        132,876
   Subtract: Unredeemed Ticket Revenue provision reversal
$          10,395


$          10,395

Adjusted Operating Profit
$          48,615
$      (106,966)
$          (1,659)
$        132,876









Net Profit as Reported
$            8,242
$      (118,057)
$          28,073
$        103,978
   Subtract: Unredeemed Ticket Revenue provision reversal
$          10,395


$          10,395

   Add: Net change in fair value of derivatives
$          32,092
$          (3,591)
$        (33,898)

Adjusted Net Profit
$          29,939
$      (121,648)
$        (16,220)
$        103,978









Reconciliation of Adjusted Basic EPS
3Q21
3Q20
2Q21
3Q19









Adjusted Net Profit
$          29,939
$      (121,648)
$        (16,220)
$        103,978
Shares used for calculation of Basic EPS
42,649
42,510
42,651
42,487
Adjusted Basic Earnings per share (Adjusted Basic EPS)
$              0.70
$            (2.86)
$            (0.38)
$              2.45









Reconciliation of Adjusted Operating Costs per ASM







Excluding Fuel (Adjusted CASM Excl. Fuel)
3Q21


2Q21
3Q19









Operating Costs per ASM as Reported (in US$ Cents)
8.8


10.1
9.0
Aircraft fuel per ASM  (in US$ Cents)
(2.6)


(2.5)
(2.8)
Adjusted Operating Costs per ASM excluding fuel  (in US$ Cents)
6.2


7.6
6.2









Reconciliation of Monthly Cash Buildup (Burn) for 2020 and 2021
3Q21
2Q21
1Q21
4Q20
Beginning Cash balance
$            1,282
$            1,203
$            1,009
$            1,006
Ending Cash balance
$            1,289
$            1,282
$            1,203
$            1,009
Net cashflows in the quarter
$                   7
$                 79
$               194
$                   4
   Subtract: Net Proceeds from new Aircraft Financing minus Pre Delivery Payments
$               (57)
$               (21)
$               241
$                 -
   Subtract: Others proceeds (assets sold and other non-op proceeds)
$                 11
$                 36
$                 20
$                 23
Cash Buildup (Burn) excluding extraordinary activities
$                 54
$                 64
$               (68)
$               (19)









View original content: https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-third-quarter-of-2021-301427178.html

SOURCE Copa Holdings, S.A.

COMTEX_397151697/2454/2021-11-17T17:00:23

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