SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
Report
on Form 6-K dated for
the month of May,
2007
Copa
Holdings, S.A.
(Translation
of Registrant's Name Into English)
Boulevard
Costa del Este, Avenida Principal y Avenida de la Rotonda
Urbanización
Costa del Este
Parque
Lefevre
Panama
City, Panama
(Address
of principal executive offices)
(Indicate
by check mark whether the registrant files or will file annual reports
under
cover of Form 20-F or Form 40-F.)
Form
20-F
x Form
40-F o
(Indicate
by check whether the registrant by furnishing the information contained
in this
Form is also thereby furnishing the information to the Commission pursuant
to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes
o No
x
(If
“Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b);82- )
Enclosure:
Earnings Release - Copa
Holdings Reports Record Earnings of US$48.6 Million and EPS of US$1.12
for 1Q07
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned,
hereunto
duly authorized.
|
Copa
Holdings, S.A.
(Registrant)
|
||
| |
|
|
| Date: 05/16/2007 | By: | /s/ Victor Vial |
|
Name: Victor Vial |
||
|
Title:
CFO
|
||
Copa
Holdings Reports Record Earnings of US$48.6 Million and EPS of US$1.12 for
1Q07
Panama
City, Panama
--- May
16, 2007. Copa Holdings, S.A. (NYSE: CPA), parent company of Copa Airlines
and
Aero Republica, today announced financial results for the first quarter of
2007
(1Q07). The terms “Copa Holdings" or "the Company" make reference to the
consolidated entity, whose operating subsidiaries are Copa Airlines and Aero
Republica. The following financial and operating information, unless otherwise
indicated, is presented pursuant to US GAAP.
OPERATING
AND FINANCIAL HIGHLIGHTS
| · |
Copa
Holdings reported record net earnings of US$48.6 million for 1Q07,
representing diluted earnings per share of US$1.12 for 1Q07.
|
| · |
EBITDAR
increased by 38.3% to US$79.5 million in 1Q07 from US$57.5 million
in
1Q06, resulting in an EBITDAR margin of 32.8% in 1Q07.
|
| · |
Operating
income for 1Q07 rose 45.6% to US$60.8 million from US$41.8 million
in
1Q06. Operating margin came in at 25%, an increase of 3.3 percentage
points above 1Q06.
|
| · |
Revenue
passenger miles (RPMs) increased 23.5% from 1.16 billion in 1Q06
to 1.43
billion in 1Q07. Available seat miles (ASMs) increased 15.8% from
1.61
billion in 1Q06 to 1.87 billion in 1Q07. As a result, average load
factor
increased 4.8 percentage points to 76.4%.
|
| · |
Total
revenues increased to US$242.7 million, representing growth of 26.6%.
Passenger yield increased 3.3% to 16.1 cents and operating revenue
per
available seat mile (RASM) increased 9.4% to 13.0
cents.
|
| · |
Operating
cost per available seat mile (CASM) increased 4.8% from 9.3 cents
in 1Q06
to 9.7 cents in 1Q07. CASM excluding fuel increased 5.8% from 6.4
cents in
1Q06 to 6.7 cents in 1Q07.
|
| · |
On
February 2, 2007 Copa Airlines signed a formal agreement with the
SkyTeam
Global Airline Alliance,
a
step towards the airline becoming an Associate member later in the
year.
|
| · |
In
1Q07, Aero Republica continued its fleet renewal plan by taking delivery
of three additional EMBRAER-190 aircraft and is currently operating
a
fleet of 9 MD-80’s and 4 EMBRAER-190’s.
|
| · |
In
1Q07, Aero Republica initiated service from the Colombian cities
of Cali
and Cartagena into Copa Airlines Hub of the Americas in Panama City.
The
airline has also announced a second daily frequency from Bogota to
Panama
City and connections beginning in 2Q07.
|
| · |
On
May 2, 2007, Copa Airlines announced the acquisition of four new
Boeing
737-800 aircraft and options for three more. Copa Airlines now has
firm orders for 19 aircraft (10 Boeing 737NG’s / 9 EMB-190’s) and purchase
rights and options for an additional 22 aircraft (8 Boeing 737NG´s / 14
EMB-190´s). On a consolidated basis, Copa Airlines and Aero
Republica combined now have firm orders for 23 aircraft (10 Boeing
737
NG’s / 13 EMB-190’s) and purchase rights and options for 38 aircraft (8
Boeing 737 NG’s / 30 EMB-190’s).
|
| · |
For
1Q07, Copa Airlines reported an on-time performance of 91% and a
flight-completion factor of 99.8%, placing the airline among the
best in
the industry.
|
| · |
For
2007, Copa Airlines has announced five of the six new destinations
it
plans to incorporate to its route network during the second half
of the
year, namely: Cordoba (Argentina), Guadalajara (Mexico), Port of
Spain
(Trinidad and Tobago), Punta Cana (Dominican Republic), and Washington
D.C. By the end of 2007 Copa Airlines’ network will serve 42 cities in
North, South and Central America and the
Caribbean.
|
| · |
On
May 9, the Board of Directors of Copa Holdings declared an annual
dividend
of 0.31 cents per share. The dividend is payable June 15, 2007, to
stockholders of record as of May 31,
2007.
|
|
Consolidated
Financial & Operating Highlights
|
1Q07
|
1Q06
|
%
Change
|
4Q06
|
%
Change
|
|
Revenue
Passenger Miles (RPM) (mm)
|
1,427
|
1,155
|
23.5%
|
1,379
|
3.5%
|
|
Available
Seat Miles (ASM) (mm)
|
1,868
|
1,614
|
15.8%
|
1,838
|
1.6%
|
|
Load
Factor
|
76.4%
|
71.6%
|
4.8p.p.
|
75.0%
|
1.4p.p.
|
|
Yield
|
16.1
|
15.6
|
3.3%
|
16.0
|
0.6%
|
|
Passenger
Revenue per ASM (US$ cents) (“PRASM”)
|
12.3
|
11.2
|
10.3%
|
12.0
|
2.5%
|
|
Operating
Revenue per ASM (US$ cents) (“RASM”)
|
13.0
|
11.2
|
16.3%
|
12.9
|
0.6%
|
|
Operating
Cost per ASM (US$ cents) (“CASM”)
|
9.7
|
9.3
|
4.8%
|
10.1
|
-3.7%
|
|
Operating
Cost (excluding fuel) per ASM (US$ cents)
|
6.7
|
6.4
|
5.8%
|
7.0
|
-4.3%
|
|
Breakeven
Load Factor
|
56.5%
|
55.8%
|
0.7p.p.
|
57.7%
|
-1.2p.p.
|
|
Operating
Revenues (US$ mm)
|
242.7
|
191.7
|
26.6%
|
237.4
|
2.3%
|
|
EBITDAR
(US$ mm) *
|
79.5
|
57.5
|
38.3%
|
71.1
|
11.8%
|
|
EBITDAR
Margin *
|
32.8%
|
30.0%
|
2.8p.p.
|
30.0%
|
2.8p.p.
|
|
Operating
Income (US$ mm)
|
60.8
|
41.8
|
45.6%
|
51.4
|
18.2%
|
|
Operating
Margin
|
25.0%
|
21.8%
|
3.3p.p.
|
21.7%
|
3.4p.p.
|
|
Net
Income (US$ mm)
|
48.6
|
32.3
|
50.5%
|
42.3
|
14.8%
|
|
Net
Margin
|
20.0%
|
16.8%
|
3.2p.p.
|
17.8%
|
2.2p.p.
|
|
Earnings
per Share - Basic (US$)
|
1.13
|
0.75
|
50.4%
|
0.99
|
14.8%
|
|
Earnings
per Share - Diluted (US$)
|
1.12
|
0.75
|
48.4%
|
0.98
|
14.4%
|
|
Weighted
Average Number of Shares - Basic (000)
|
42,817
|
42,813
|
0.0%
|
42,813
|
0.0%
|
|
Weighted
Average Number of Shares - Diluted (000)
|
43,435
|
42,849
|
1.4%
|
43,304
|
0.3%
|
*EBITDAR
(earnings before interest, taxes, depreciation, amortization and rent) is
presented as supplemental information 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. However, EBITDAR
should not be considered in isolation, as a substitute for net income prepared
in accordance with US GAAP or as a measure of a company’s profitability. In
addition, our calculations may not be comparable to other similarly titled
measures of other companies. A reconciliation of EBITDAR to consolidated net
income is attached to this press release.
MANAGEMENT’S
COMMENTS ON 1Q07 RESULTS
First
quarter results marked a strong beginning to 2007. For the quarter, Copa
Holdings consolidated traffic growth outpaced capacity growth, resulting in
a
consolidated load factor of 76.4%, an increase of 4.8 percentage points over
1Q06. This increase came mainly from Copa Airlines, which experienced a 20.8%
capacity growth and a 28.2% increase in traffic. For the same period, Aero
Republica’s load factor increased 1.3 percentage points year-over-year to 54.4%,
on traffic growth of 2.9% and a 0.4% capacity expansion.
Copa
Holdings reported record net earnings of US$48.6 million for 1Q07, a
year-over-year growth of 50.5%. These earnings were obtained as a result of
strong underlying demand for air travel in the region, which produced a
substantial increase in load factors and yields in the face of a significant
capacity expansion.
During
the quarter, Copa Holdings experienced a 26.6% or US$51.0 million year over
year
increase in operating revenues, driven mainly by a 29.7% or US$45.0 million
increase in Copa Airlines operating revenues and a 16.9% or US$6.8 million
increase in Aero Republica operating revenues.
Operating
costs for the quarter increased 21.3% or US$32.0 million, driven primarily
by
increased capacity. Total unit cost, as measured by operating cost per available
seat mile, increased 4.8% to 9.7 cents. Excluding fuel expense, operating
expenses rose 22.5% and unit costs increased 5.8% to 6.7 cents.
2
Consolidated
earnings before interest, taxes, depreciation, amortization and rents
("EBITDAR") rose 38.3% to US$79.5 million from US$57.5 million in 1Q06. EBITDAR
margins increased by 2.8 percentage points to 32.8%. Operating income rose
45.6%
to US$60.8 million in 1Q07 from US$41.8 million in 1Q06, while operating margins
increased 3.3 percentage points to 25%.
The
Company ended the quarter with US$243.7 million in cash, cash equivalents,
short-term and long-term investments, as well as approximately US$34.5 million
in committed credit lines. Total debt amounted to US$703.0 million, which
relates for the most part to aircraft and equipment
financing.
Looking
forward to the remainder of 2007, we expect healthy demand patterns to continue,
benefiting from the ongoing strength in the regional economy and the growing
preference of Copa Airlines’ Hub of the Americas as the best option for
intra-Latin America travel. Consolidated capacity is expected to increase by
approximately 20% year-over-year, driven mainly by 25% Copa Airlines capacity
growth.
Copa
Airlines operational plan includes the addition of six new destinations for
2007, as well as increased frequencies to current destinations. These new
frequencies and destinations will begin in the second half of 2007 when Copa
Airlines will take delivery of seven new aircraft: two Boeing 737-800’s and five
EMBRAER-190’s.
For
the
quarter, Aero Republica recorded operating earnings of US$3.9MM, representing
an
operating margin of 8.3%. Their results benefited from higher yields and lower
costs related to lower jet fuel costs and the timing of major overhaul events.
Aero
Republica continues to execute its transition plan aimed at strengthening its
competitive and financial position. The principal initiative of this plan
includes the modernization of Aero Republica´s fleet by re,placing less
efficient MD-80 aircraft with modern and efficient EMBRAER-190 aircraft. During
the months of December 2006 and January 2007, Aero Republica received its first
four EMBRAER-190 aircraft and will be receiving an additional four during the
second half of 2007, to end the year with a fleet of eight EMBRAER-190’s and six
MD-80’s.
We
expect
the right-sizing and modernization of Aero Republica´s fleet throughout 2007
will lead to increased operational efficiencies, higher load factors and a
superior product offering for the Colombian market. Additionally, Aero Republica
has increased its international connectivity with Copa Airlines’ Hub of The
Americas through the addition of daily flights from the Colombian cities of
Bogota, Cali and Cartagena. With these new flights Aero República now provides
international connectivity into Copa Airlines’ Hub from four major Colombian
cities.
Going
forward, we expect Copa Airlines will continue gaining and solidifying its
advantage of having the most extensive network for intra-Latin American travel,
being complemented by Aero República’s presence and connectivity in the
Colombian market.
CONSOLIDATED
FIRST QUARTER RESULTS
Operating
revenue
Consolidated
revenue for 1Q07 totaled US$242.7 million, a 26.6% or US$51.0 million
increase over operating revenue of US$191.7 million in 1Q06, mainly due to
a 29.7% or US$45.0 million increase in Copa Airlines’ operating revenue and a
16.9% or US$6.8 million increase in Aero Republica’s operating
revenue.
3
Copa
Airlines operating revenue
Copa
Airlines operating revenue for 1Q07 totaled US$196.6 million, a 29.7%
increase over operating revenue of US$151.6 million in 1Q06. This increase
was primarily due to a 31.1% increase in passenger revenue.
Passenger
revenue. For
1Q07
passenger revenue totaled US$185.7 million a 31.1% increase over passenger
revenue of US$141.6 million in 1Q06. This increase resulted from growth in
capacity (ASMs increased by 20.8% in 1Q07 as compared to 1Q06), a higher load
factor (load factor increased from 77.6% in 1Q06 to 82.4% in 1Q07), and an
increase in passenger yield which rose by 2.3% to 15.4 cents.
Cargo,
mail and other. Cargo,
mail and other totaled US$11.0 million in 1Q07, a 9.4% increase over cargo,
mail
and other of US$10.0 million in 1Q06.
AeroRepública
operating revenue
During
1Q07, Aero Republica generated operating revenue of US$47.1 million,
representing a 16.9% increase over 1Q06. This increase resulted mainly from
an
US$5.8 million or 15% increase in passenger revenue. During the quarter Aero
Republica’s capacity (ASMs) increased by 0.4%, while traffic (RPMs) increased by
2.9%, representing a load factor of 54.4% or 1.3 points above 1Q06.
Operating
expenses
For
1Q07,
consolidated operating expenses totaled US$182.0 million, a 21.3% increase
over
operating expenses of US$150.0 million for 1Q06. Operating cost per
available seat mile (CASM) increased 4.8% from 9.3 cents in 1Q06 to 9.7 cents
in
1Q07. An overview of the major variances on a consolidated basis
follows:
Aircraft
fuel. For
1Q07,
aircraft fuel totaled US$55.9 million, a US$8.8 million or 18.7% increase
over aircraft fuel of US$47.1 million in 1Q06. This increase was primarily
a result of a 12.9% increase in gallons consumed resulting from increased
capacity, a 5.2% increase in the average price per gallon of jet fuel (all-in),
which net of hedges averaged US$2.09 in 1Q07 vs. US$1.99 in 1Q06.
Salaries
and benefits. For
1Q07,
salaries and benefits totaled US$26.7 million, a 37.6% increase over
salaries and benefits of US$19.4 million in 1Q06. This increase was mainly
a
result of an overall increase in operating headcount to support increased
capacity, increased profit sharing expenses and the effect of the stock
compensation program that was implemented pursuant to the Company’s initial
public offering.
Passenger
servicing. For
1Q07,
passenger servicing totaled US$17.9 million, a 22.5% increase over
passenger servicing of US$14.6 million in 1Q06. This increase was primarily
a
result of an increase in passengers carried.
Commissions.
For
1Q07,
commissions totaled US$14.8 million, a 13.1% increase over commissions of
US$13.1 million in 1Q06. This increase was primarily a result of higher
passenger revenue partially offset by lower average commission rates in both
Copa Airlines and Aero Republica.
Reservations
and sales.
Reservations
and sales totaled US$11.0 million, a 33.1% increase over reservation and sales
of US$8.3 million in 1Q06. This increase was primarily a result of more
passengers carried and higher rates related to global distribution
systems.
Maintenance,
material and repairs. For
1Q07,
maintenance, material and repairs totaled US$11.1 million, an 8.2% increase
over
maintenance, material and repairs of US$10.3 million in 1Q06. This increase
was primarily a result of increased capacity, partially offset by the timing
of
major overhaul events at Aero Republica.
4
Depreciation.
Depreciation
totaled US$8.0 million in 1Q07, a 47.6% increase over depreciation of
US$5.4 million in 1Q06. This increase was primarily related to the
depreciation of new aircraft and spares.
Aircraft
rentals. For
1Q07,
aircraft rentals totaled US$9.2 million, a 3.4% increase over aircraft rentals
of US$8.9 million in 1Q06.
Flight
operations,
landing
fees and other rentals.
Combined,
flight operations, landing fees and other rentals increased 18.1% from US$13.3
million in 1Q06 to US$15.7 million in 1Q07, primarily as a result of
increased capacity and higher user fee rates.
Other.
Other
expenses totaled US$11.6 million in 1Q07, an increase of 21.1% over US$9.6
million in 1Q06., mostly related to Aero Republica initiatives.
Copa
Airlines operating expenses
Copa
Airlines’ operating expenses increased 26.3% to US$139.8 million from US$110.6
million in 1Q06. Operating expenses per available seat mile increased 4.6%
to
9.5 cents in 1Q07 from 9.1 cents in 1Q06. Excluding fuel costs, operating
expenses per available seat mile increased 3.3% from 6.4 cents in 1Q06 to 6.6
cents in 1Q07.
Aircraft
fuel.
For
1Q07,
aircraft fuel totaled US$42.2 million, a 30.1% increase over aircraft fuel
expense of US$32.5 million in the same period in 2006. This increase was
primarily a result of a 21.6% increase in gallons consumed resulting from
increased capacity and a 7.3% increase in the average price per gallon of jet
fuel (all-in), which net of hedges averaged US$2.09 in 1Q07 vs. US$1.95 in
1Q06.
Salaries
and benefits.
For
1Q07,
salaries and benefits totaled US$21.1 million, a 36.8% increase over
salaries and benefits of US$15.4 million in the same period in 2006. This
increase was mainly a result of an overall increase in operating headcount
to
support increased capacity, increased profit sharing expenses and the effect
of
the stock compensation program that was implemented pursuant to the Company’s
initial public offering.
Passenger
servicing.
Passenger
servicing totaled US$15.0 million for 1Q07, a 24.6% increase over passenger
servicing of US$12.0 million in 1Q06. This increase was primarily a result
of Copa Airlines’ 19.9% increase in carried passengers.
Commissions.
Commissions
totaled US$11.1 million for 1Q07, a 21.4% increase over commissions of
US$9.2 million in 1Q06. This increase was primarily a result of a 31.1% increase
in passenger revenue, partially offset by a lower average commission rate.
Reservations
and sales.
Reservations
and sales totaled US$8.7 million, a 28.5% increase over reservation and sales
of
US$6.8 million in 1Q06. This increase was primarily a result of more passengers
carried and an increase in the average rate charged by global distribution
systems.
Maintenance,
materials and repairs.
Maintenance,
materials and repairs totaled US$7.8 million in 1Q07, a 37.4% increase over
maintenance, materials and repairs of US$5.7 million in 1Q06. This increase
resulted from higher capacity and more major overhaul events during the period.
Depreciation.
Depreciation
totaled US$7.0 million in 1Q07, a 34.6% increase over depreciation of
US$5.2 million in 1Q06. This increase was primarily related to depreciation
of new aircraft and spares.
Aircraft
rentals. Aircraft
rentals totaled US$6.0 million in 1Q07, a 2.1% increase over aircraft
rentals in 1Q06.
Flight
operations,
landing
fees and other rentals.
Combined,
flight operations, landing fees and other rentals increased 20.3% from US$10.6
million in 1Q06 to US$12.8 million in 1Q07, primarily as a result of
higher capacity and higher air to ground communication fees..
Other.
Other expenses totaled US$8.0 million in 1Q07, an 8.5% increase over
other expenses of US$7.4 million in 1Q06.
5
AeroRepública
operating expenses
AeroRepública’s
operating expenses increased 9.3% to US$43.2 million in 1Q07 from US$39.5
million in 1Q06. Operating expenses per available seat mile increased 8.9%
to
10.8 cents in 1Q07 from 9.9 cents in 1Q06. Excluding fuel costs, operating
expenses per available seat mile increased 18.2% from 6.2 cents in 1Q06 to
7.4
cents in 1Q07, mainly due to increased salaries and benefits, other operating
expenses and reservation and sales expenses.
Non-operating
income (expense)
Consolidated
non-operating expenses totaled US$7.9 million in 1Q07, a 45.3% decrease
over non-operating expenses of US$5.4 million in 1Q06.
Interest
expense.
Interest expense totaled US$9.8 million in 1Q07, a 56.9% increase over interest
expense of US$6.3 million in 1Q06, mostly as a result of increased aircraft
related debt.
Interest
capitalized.
Interest capitalized totaled US$0.5 million in 1Q07, a 4.5% increase over
interest expense of US$0.5 million in 1Q06.
Interest
income. Interest
income totaled US$2.5 million, a 101.4% increase over interest income of US$1.3
million in 1Q06, mostly a result of increased cash, cash equivalents and
investments.
Other,
net. Other
net
totaled US$1.1 million in 1Q07.
OUTLOOK
FOR 2007
Based
on
1Q07 results and our expectations for the remainder of the year, we are revising
upwards our guidance for full year 2007:
|
Financial
Outlook (US GAAP)
|
2007
- Full Year
Prior
|
2007
- Full Year
Revised
|
|
ASM´s
(billion)
|
+/-
8.2
|
+/-
8.2
|
|
Average
Load Factor
|
+/-
74%
|
+/-
75%
|
|
RASM
(cents)
|
+/-
12.6
|
+/-
12.8
|
|
CASM
Ex-fuel (cents)
|
+/-
6.7
|
+/-
6.8
|
|
Operating
Margin
|
20%
- 21.5%
|
20.5%
- 22%
|
About
Copa Holdings
Copa
Holdings, through its Copa Airlines and Aero Republica operating subsidiaries,
is a leading Latin American provider of international airline passenger and
cargo service. Copa Airlines currently offers approximately 110 daily scheduled
flights to 36 destinations in 21 countries in North, Central and South America
and the Caribbean. In addition, Copa Airlines provides passengers with
access to flights to more than 120 other international destinations through
code
share agreements with Continental Airlines and other airlines. Aero Republica,
the second-largest domestic carrier in Colombia, provides service to 12 cities
in Colombia as well as international connectivity with Copa Airlines’ Hub of the
Americas through flights from Bogota, Cali and Medellin.
6
CONTACT:
Copa
Holdings S.A.
Investor
Relations:
Ph:
(507)
304-2677
e-mail:
investorrelations@copaair.com
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
7
Operating
data
US
GAAP - Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
%
|
|
Unaudited
|
|
%
|
|||||||
|
1Q07
|
1Q06
|
Change
|
4Q06
|
Change
|
||||||||||||
|
Copa
Holdings (Consolidated)
|
||||||||||||||||
|
Revenue
passengers carried (thousands)
|
1,121
|
1,055
|
6.2
|
%
|
1,248
|
-10.2
|
%
|
|||||||||
|
Revenue
passengers miles (RPMs) (mm)
|
1,427
|
1,155
|
23.5
|
%
|
1,379
|
3.5
|
%
|
|||||||||
|
Available
seat miles (ASMs) (mm)
|
1,868
|
1,614
|
15.8
|
%
|
1,838
|
1.6
|
%
|
|||||||||
|
Load
factor
|
76.4
|
%
|
71.6
|
%
|
4.8
|
p.p. |
75.0
|
%
|
1.4
|
p.p. | ||||||
|
Break-even
load factor
|
56.5
|
%
|
55.8
|
%
|
0.7
|
p.p. |
57.7
|
%
|
-1.2
|
p.p. | ||||||
|
Yield
(US$ cents)
|
16.1
|
15.6
|
3.3
|
%
|
16.0
|
0.6
|
%
|
|||||||||
|
Operating
revenue per ASM (US$ cents) (RASM)
|
13.0
|
11.9
|
9.4
|
%
|
12.9
|
0.6
|
%
|
|||||||||
|
Operating
expenses per ASM (US$ cents) (CASM)
|
9.7
|
9.3
|
4.8
|
%
|
10.1
|
-3.7
|
%
|
|||||||||
|
Operating
Cost (excluding fuel) per ASM (US$ cents)
|
6.7
|
6.4
|
5.8
|
%
|
7.0
|
-4.3
|
%
|
|||||||||
|
Fuel
gallons consumed (mm)
|
26.5
|
23.4
|
12.9
|
%
|
26.3
|
0.6
|
%
|
|||||||||
|
Average
price of Fuel - Net of Hedges (US$)
|
2.09
|
1.99
|
5.2
|
%
|
2.1
|
-1.4
|
%
|
|||||||||
|
Copa
Segment
|
|
|||||||||||||||
|
Revenue
passengers miles (RPMs) (mm)
|
1,209
|
943
|
28.2
|
%
|
1,115
|
8.5
|
%
|
|||||||||
|
Available
seat miles (ASMs) (mm)
|
1,468
|
1,215
|
20.8
|
%
|
1,426
|
3.0
|
%
|
|||||||||
|
Load
factor
|
82.4
|
%
|
77.6
|
%
|
4.7
|
p.p. |
78.2
|
%
|
4.2
|
p.p. | ||||||
|
Break-even
load factor
|
55.9
|
%
|
55.3
|
%
|
0.6
|
p.p. |
55.0
|
%
|
0.9
|
p.p. | ||||||
|
Yield
(US$ cents)
|
15.4
|
15.0
|
2.3
|
%
|
15.7
|
-2.2
|
%
|
|||||||||
|
Operating
revenue per ASM (US$ cents) (RASM)
|
13.4
|
12.5
|
7.4
|
%
|
13.2
|
1.5
|
%
|
|||||||||
|
Operating
expenses per ASM (US$ cents) (CASM)
|
9.5
|
9.1
|
4.6
|
%
|
9.8
|
-3.2
|
%
|
|||||||||
|
Operating
Cost (excluding fuel) per ASM (US$ cents)
|
6.6
|
6.4
|
3.3
|
%
|
6.9
|
-4.1
|
%
|
|||||||||
|
Fuel
gallons consumed (mm)
|
19.9
|
16.4
|
21.6
|
%
|
19.3
|
2.9
|
%
|
|||||||||
|
Average
price of Fuel - Net of Hedges (US$)
|
2.09
|
1.95
|
7.3
|
%
|
2.1
|
-1.1
|
%
|
|||||||||
|
AeroRepublica
Segment
|
|
|||||||||||||||
|
Revenue
passengers miles (RPMs) (mm)
|
218
|
212
|
2.9
|
%
|
265
|
-17.7
|
%
|
|||||||||
|
Available
seat miles (ASMs) (mm)
|
400
|
399
|
0.4
|
%
|
413
|
-3.1
|
%
|
|||||||||
|
Load
factor
|
54.4
|
%
|
53.1
|
%
|
1.3
|
p.p. |
64.1
|
%
|
-9.7
|
p.p. | ||||||
|
Break-even
load factor
|
54.3
|
%
|
54.6
|
%
|
10.3
|
p.p. |
65.1
|
%
|
-10.8
|
p.p. | ||||||
|
Yield
(US$ cents)
|
20.5
|
18.3
|
11.8
|
%
|
17.4
|
17.6
|
%
|
|||||||||
|
Operating
revenue per ASM (US$ cents) (RASM)
|
11.8
|
10.1
|
16.4
|
%
|
12.0
|
-2.2
|
%
|
|||||||||
|
Operating
expenses per ASM (US$ cents) (CASM)
|
10.8
|
9.9
|
8.9
|
%
|
11.2
|
-3.5
|
%
|
|||||||||
|
Operating
Cost (excluding fuel) per ASM (US$ cents)
|
7.4
|
6.2
|
18.2
|
%
|
7.6
|
-2.8
|
%
|
|||||||||
|
Fuel
gallons consumed (mm)
|
6.6
|
7.1
|
-7.0
|
%
|
7.0
|
-5.8
|
%
|
|||||||||
|
Average
price of Fuel - Net of Hedges (US$)
|
2.08
|
2.07
|
0.5
|
%
|
2.12
|
-2.0
|
%
|
|||||||||
8
Copa
Holdings
Income Statement - US
GAAP
|
Unaudited
|
|
Unaudited
|
|
%
|
|
Unaudited
|
|
%
|
|
|||||||
|
|
|
1Q07
|
|
1Q06
|
|
Change
|
|
4Q06
|
|
Change
|
||||||
|
Operating
Revenues
|
||||||||||||||||
|
Passenger
Revenue
|
230,271
|
180,358
|
27.7
|
%
|
221,133
|
4.1
|
%
|
|||||||||
|
Cargo,
mail and other
|
12,479
|
11,368
|
9.8
|
%
|
16,218
|
-23.1
|
%
|
|||||||||
|
Total
Operating Revenue
|
242,750
|
191,726
|
26.6
|
%
|
237,351
|
2.3
|
%
|
|||||||||
|
Operating
Expenses
|
||||||||||||||||
|
Aircraft
fuel
|
55,912
|
47,110
|
18.7
|
%
|
56,353
|
-0.8
|
%
|
|||||||||
|
Salaries
and benefits
|
26,749
|
19,446
|
37.6
|
%
|
26,404
|
1.3
|
%
|
|||||||||
|
Passenger
servicing
|
17,932
|
14,634
|
22.5
|
%
|
17,901
|
0.2
|
%
|
|||||||||
|
Commissions
|
14,813
|
13,101
|
13.1
|
%
|
15,620
|
-5.2
|
%
|
|||||||||
|
Reservations
and sales
|
10,997
|
8,265
|
33.1
|
%
|
10,094
|
8.9
|
%
|
|||||||||
|
Maintenance,
material and repairs
|
11,134
|
10,287
|
8.2
|
%
|
13,912
|
-20.0
|
%
|
|||||||||
|
Depreciation
|
7,995
|
5,417
|
47.6
|
%
|
7,458
|
7.2
|
%
|
|||||||||
|
Flight
operations
|
9,410
|
7,713
|
22.0
|
%
|
9,265
|
1.6
|
%
|
|||||||||
|
Aircraft
rentals
|
9,163
|
8,861
|
3.4
|
%
|
9,518
|
-3.7
|
%
|
|||||||||
|
Landing
fees and other rentals
|
6,256
|
5,555
|
12.6
|
%
|
6,546
|
-4.4
|
%
|
|||||||||
|
Other
|
11,590
|
9,574
|
21.1
|
%
|
12,849
|
-9.8
|
%
|
|||||||||
|
Total
Operating Expense
|
181,951
|
149,963
|
21.3
|
%
|
185,920
|
-2.1
|
%
|
|||||||||
|
Operating
Income
|
60,799
|
41,763
|
45.6
|
%
|
51,431
|
18.2
|
%
|
|||||||||
|
Non-operating
Income (Expense):
|
||||||||||||||||
|
Interest
expense
|
-9,848
|
-6,278
|
56.9
|
%
|
-8,190
|
20.2
|
%
|
|||||||||
|
Interest
capitalized
|
531
|
508
|
4.5
|
%
|
361
|
47.1
|
%
|
|||||||||
|
Interest
income
|
2,542
|
1,262
|
101.4
|
%
|
2,467
|
3.0
|
%
|
|||||||||
|
Other,
net
|
-1,097
|
-909
|
20.7
|
%
|
-264
|
315.5
|
%
|
|||||||||
|
Total
Non-Operating Income/(Expense)
|
-7,872
|
-5,417
|
45.3
|
%
|
-5,626
|
39.9
|
%
|
|||||||||
|
Income
before Income Taxes
|
52,927
|
36,346
|
45.6
|
%
|
45,805
|
15.5
|
%
|
|||||||||
|
Provision
for Income Taxes
|
4,361
|
4,066
|
7.3
|
%
|
3,491
|
24.9
|
%
|
|||||||||
|
Net
Income
|
48,566
|
32,280
|
50.5
|
%
|
42,314
|
14.8
|
%
|
|||||||||
|
Basic
EPS
|
1.13
|
0.75
|
50.4
|
%
|
0.99
|
16.0
|
%
|
|||||||||
|
Basic
Shares
|
42,816,678
|
42,812,500
|
0.0
|
%
|
42,812,500
|
0.0
|
%
|
|||||||||
|
Diluted
EPS
|
1.12
|
0.75
|
48.4
|
%
|
0.98
|
15.7
|
%
|
|||||||||
|
Diluted
Shares
|
43,435,044
|
42,849,329
|
1.4
|
%
|
43,303,549
|
0.3
|
%
|
|||||||||
9
Copa
Holdings
Balance
Sheet - US GAAP
(US$
Thousands)
|
March
31,
|
December
31,
|
March
31,
|
||||||||
|
|
2007
|
2006
|
2006
|
|||||||
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||
|
ASSETS
|
||||||||||
|
Current
Assets:
|
||||||||||
|
Cash
and cash equivalents
|
$
|
190,158
|
$
|
169,880
|
$
|
98,198
|
||||
|
Restricted
cash and cash equivalents
|
0
|
0
|
0
|
|||||||
|
Short-term
investments
|
27,500
|
27,500
|
16,621
|
|||||||
|
Total
cash, cash equivalents and short-term investments
|
217,658
|
197,380
|
114,819
|
|||||||
|
|
||||||||||
|
Accounts
receivable, net of allowance for doubtful accounts
|
80,628
|
60,319
|
56,579
|
|||||||
|
Accounts
receivable from related parties
|
2,270
|
1,818
|
260
|
|||||||
|
Expendable
parts and supplies, net of allowance for obsolescence
|
9,748
|
8,667
|
4,930
|
|||||||
|
Prepaid
expenses
|
19,017
|
19,729
|
16,374
|
|||||||
|
Other
current assets
|
8,015
|
5,877
|
4,436
|
|||||||
|
Total
Current Assets
|
337,336
|
293,790
|
197,398
|
|||||||
|
Long-term
investments
|
26,036
|
29,032
|
29,124
|
|||||||
|
Property
and Equipment:
|
||||||||||
|
Owned
property and equipment:
|
||||||||||
|
Flight
equipment
|
948,680
|
857,598
|
631,129
|
|||||||
|
Other
equipment
|
44,065
|
43,713
|
37,882
|
|||||||
|
992,745
|
901,311
|
669,011
|
||||||||
|
Less:
Accumulated depreciation
|
(111,181
|
)
|
(104,178
|
)
|
(85,376
|
)
|
||||
|
881,564
|
797,133
|
583,635
|
||||||||
|
Purchase
deposits for flight equipment
|
73,849
|
65,150
|
59,673
|
|||||||
|
Total
Property and Equipment
|
955,413
|
862,283
|
643,308
|
|||||||
|
Other
Assets:
|
||||||||||
|
Net
pension asset
|
759
|
645
|
1,355
|
|||||||
|
Goodwill
|
21,392
|
20,929
|
20,461
|
|||||||
|
Intangible
asset
|
32,640
|
31,933
|
31,220
|
|||||||
|
Other
assets
|
16,233
|
15,553
|
12,420
|
|||||||
|
Total
Other Assets
|
71,024
|
69,060
|
65,456
|
|||||||
|
Total
Assets
|
$
|
1,389,809
|
$
|
1,254,165
|
$
|
935,286
|
||||
|
LIABILITIES
AND SHAREHOLDER'S EQUITY
|
||||||||||
|
Current
Liabilities:
|
||||||||||
|
Current
maturities of long-term debt
|
$
|
103,154
|
$
|
91,453
|
$
|
70,678
|
||||
|
Accounts
payable
|
47,799
|
47,627
|
36,352
|
|||||||
|
Accounts
payable to related parties
|
8,242
|
8,819
|
7,635
|
|||||||
|
Air
traffic liability
|
116,730
|
116,812
|
85,796
|
|||||||
|
Taxes
and interest payable
|
34,688
|
30,450
|
25,979
|
|||||||
|
Accrued
expenses payable
|
33,317
|
34,268
|
18,842
|
|||||||
|
Other
current liabilities
|
2,836
|
9,104
|
3,601
|
|||||||
|
Total
Current Liabilities
|
346,766
|
338,533
|
248,883
|
|||||||
|
Non-Current
Liabilities:
|
||||||||||
|
Long-term
debt
|
599,851
|
529,802
|
393,541
|
|||||||
|
Post
employment benefits liability
|
1,792
|
1,701
|
1,404
|
|||||||
|
Other
long-term liabilities
|
8,023
|
7,713
|
8,059
|
|||||||
|
Deferred
tax liabilities
|
4,933
|
4,557
|
5,309
|
|||||||
|
Total
Non-Current Liabilities
|
614,599
|
543,773
|
408,313
|
|||||||
|
Commitments
and Contingencies
|
-
|
-
|
-
|
|||||||
|
Total
Liabilities
|
961,365
|
882,306
|
657,196
|
|||||||
|
Shareholders'
Equity:
|
||||||||||
|
Class
A - 30,159,719 shares issued and outstanding
|
20,586
|
20,501
|
20,501
|
|||||||
|
Class
B - 12,778,125 shares issued and outstanding
|
8,722
|
8,722
|
8,722
|
|||||||
|
Additional
paid in capital
|
3,473
|
2,669
|
-
|
|||||||
|
Retained
earnings
|
392,816
|
344,249
|
250,142
|
|||||||
|
Accumulated
other comprehensive loss
|
2,847
|
(4,282
|
)
|
(1,275
|
)
|
|||||
|
Total
Shareholders' Equity
|
428,444
|
371,859
|
278,090
|
|||||||
|
Total
Liabilities and Shareholders' Equity
|
$
|
1,389,809
|
$
|
1,254,165
|
$
|
935,286
|
||||
10
|
COPA
HOLDINGS, S.A. - EBITDAR RECONCILIATION
|
||
|
(Figures
in US$ thousands)
|
|
1Q07
|
|
4Q06
|
|
1Q06
|
||||||
|
Net
Income
|
$
|
48,566
|
$
|
42,314
|
$
|
32,280
|
||||
|
Interest
Expense
|
(9,848
|
)
|
(8,190
|
)
|
(6,278
|
)
|
||||
|
Capitalized
Interest
|
531
|
361
|
508
|
|||||||
|
Interest
Income
|
2,542
|
2,467
|
1,262
|
|||||||
|
Income
Taxes
|
(4,361
|
)
|
(3,491
|
)
|
(4,066
|
)
|
||||
|
EBIT
|
59,702
|
51,167
|
40,854
|
|||||||
|
Depreciation
and Amortization
|
7,995
|
7,458
|
5,417
|
|||||||
|
EBITDA
|
67,697
|
58,625
|
46,271
|
|||||||
|
Aircraft
Rent
|
9,163
|
9,518
|
8,861
|
|||||||
|
Other
Rentals
|
2,685
|
2,988
|
2,368
|
|||||||
|
EBITDAR
|
$
|
79,546
|
$
|
71,131
|
$
|
57,500
|
||||
11