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 November,
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
(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
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 Earnings of US$46.8 Million and EPS of US$1.08 for 3Q07,
including US$8.0 Million Non-Recurring Gain
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: 11/15/2007 | By: | /s/ Victor Vial |
|
Name:
Victor Vial
Title:
CFO
|
||
Copa
Holdings Reports Earnings of US$46.8 Million and EPS of US$1.08 for 3Q07,
Including US$8.0 Million Non-Recurring Gain
PANAMA
CITY, Nov. 15 /PRNewswire-FirstCall/ -- Copa Holdings, S.A. (NYSE: CPA),
parent company of Copa Airlines and Aero Republica, today announced financial
results for the third quarter of 2007 (3Q07). The terms “Copa Holdings" or "the
Company" makes 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 net earnings of US$46.8 million for 3Q07, representing
diluted earnings per share of $1.08. Excluding an US$8.0 million
non-recurring pre-tax gain related to insurance proceeds in excess
of
aircraft book value, net earnings for the quarter would have been
US$38.8
million, which would have represented diluted earnings per share
of
US$0.89.
|
| · |
Operating
income for 3Q07 increased 3.3% to US$46.7 million from US$45.2
million in
3Q06. Operating margin came in at 17.6%, a 2 percentage point decrease
compared to 3Q06.
|
| · |
Revenue
passenger miles (RPMs) increased 16.3% from 1.35 billion in 3Q06
to 1.56
billion in 3Q07. Available seat miles (ASMs) increased 18.0% from
1.78
billion in 3Q06 to 2.10 billion in 3Q07. As a result, average load
factor
came in at 74.4%. Copa Airlines, which represented 80% of consolidated
capacity, delivered a 78.5% load factor on 22.7% capacity growth.
|
| · |
Total
revenues increased to US$264.6 million, representing growth of
14.7%.
Passenger yield decreased 1.6% to 15.9 cents and operating revenue
per
available seat mile (RASM) decreased 2.7% to 12.6
cents.
|
| · |
Operating
cost per available seat mile (CASM) decreased 0.4% to 10.4 cents.
CASM
excluding fuel remained unchanged at 7.0
cents.
|
| · |
On
July 13, Aero Republica began its second daily frequency from Bogota
to
Panama City. Additionally, on October 4, Aero Republica added service
into
Panama City from Colombia’s fifth largest city, Bucaramanga. The airline
currently provides international connections to Copa Airlines’ Hub of the
Americas from five Colombian cities: Bogota, Bucaramanga, Cali,
Cartagena
and Medellin.
|
| · |
On
July 15, Copa Airlines began service from its Hub of the Americas
in
Panama City to Washington D.C. and Punta Cana (Dominican Republic),
as
well as Guadalajara (Mexico) on July 18 and Cordoba (Argentina)
on August
15. Copa Airlines network now serves 40 cities in 21 countries
in North,
South and Central America and the Caribbean.
|
| · |
On
July 30, Copa Airlines announced a comprehensive code share agreement
with
AeroMexico, which formally began on August 1, 2007. As part of
the
agreement, Copa Airlines has placed its designator code on
AeroMexico-operated flights beyond Mexico City to 17 Mexican cities.
Additionally, AeroMexico has placed its designator code on Copa
Airlines-operated flights between the Hub of the Americas in Panama
City
to Mexico City, Cancun and
Guadalajara.
|
| · |
In
August, Copa Airlines was named by Skytrax, for the fourth consecutive
year, as “Best Airline in Central America, Mexico and the Caribbean” as
well “Best Cabin Staff in Central America, Mexico and the Caribbean”.
|
| · |
On
September 4, Copa Airlines formally entered into the global SkyTeam
Alliance as an Associate Member. SkyTeam operates more than 15,200
daily
flights to more than 790 cities in 162 countries.
|
| · |
In
3Q07, Aero Republica continued its fleet modernization plan with
the
delivery of two EMBRAER 190 Aircraft. Aero Republica currently
has a fleet
of five EMBRAER 190 and eight MD-80 aircraft. For the remainder
of the
year, Aero Republica is expected to take delivery of two additional
EMBRAER 190 aircraft, ending 2007 with a fleet of 13 aircraft –
7 EMBRAER
190s and 6 MD-80s.
|
| · |
In
3Q07, Copa Airlines continued its fleet expansion with the delivery
of
three EMBRAER-190s and one Boeing 737-800. In the fourth quarter,
Copa has
taken delivery of two additional aircraft –
one
EMBRAER-190 and one Boeing 737-800 –
and will
end 2007 with a fleet of 37 aircraft with an average age of 3.7
years.
|
| · |
For
3Q07, Copa Airlines reported an on-time performance of 84.6%
and a
flight-completion factor of 99.1%.
|
| · |
On
October 11, Copa Airlines and KLM Royal Dutch Airlines announced
a broad
code share alliance, which will enable passengers of both carriers
to
travel more easily between Copa's extensive Latin American network
and
Europe via two of the world's most convenient hubs. KLM will begin
service
from Amsterdam to Panama City in March
2008.
|
| · |
In
October, Copa Airlines was included in Fortune Magazine's top five
best
companies for leaders in Latin America for 2007. This survey was
designed
to identify the companies that best develop leaders as a result
of
corporate culture, leadership values, and business
performance.
|
| · |
In
November, Copa Airlines entered into a new collective bargaining
agreement
with its pilot union. This agreement will expire in August of
2012.
|
|
Consolidated
Financial & Operating
Highlights
|
|
|
3Q07
|
|
|
3Q06
|
|
|
%
Change
|
|
|
2Q07
|
%
Change
|
YTD
3Q07
|
YTD
3Q06
|
%
Change
|
|||||||||
|
RPMs
(millions)
|
1,565
|
1,345
|
16.3
|
%
|
1,346
|
16.3
|
%
|
4,337
|
3,638
|
19.2
|
%
|
||||||||||||||
|
ASMs
(mm)
|
2,104
|
1,784
|
18.0
|
%
|
1,880
|
11.9
|
%
|
5,852
|
5,028
|
16.4
|
%
|
||||||||||||||
|
Load
Factor
|
74.4
|
%
|
75.4
|
%
|
-1.1
|
p.p. |
71.6
|
%
|
2.8
|
p.p. |
74.1
|
%
|
72.3
|
%
|
1.8
|
p.p. | |||||||||
|
Yield
|
15.9
|
16.2
|
-1.6
|
%
|
16.4
|
-3.1
|
%
|
16.2
|
15.9
|
1.7
|
%
|
||||||||||||||
|
PRASM
(US$ cents)
|
11.8
|
12.2
|
-3.0
|
%
|
11.8
|
0.7
|
%
|
12.0
|
11.5
|
4.2
|
%
|
||||||||||||||
|
RASM
(US$ cents)
|
12.6
|
12.9
|
-2.7
|
%
|
12.5
|
0.5
|
%
|
12.7
|
12.2
|
4.0
|
%
|
||||||||||||||
|
CASM
(US$ cents)
|
10.4
|
10.4
|
-0.4
|
%
|
10.4
|
-0.8
|
%
|
10.2
|
9.9
|
2.8
|
%
|
||||||||||||||
|
CASM
Excluding Fuel (US$ cents)
|
7.0
|
7.0
|
-0.2
|
%
|
7.3
|
-4.1
|
%
|
7.0
|
6.7
|
4.3
|
%
|
||||||||||||||
|
Breakeven
Load Factor
|
60.6
|
%
|
59.7
|
%
|
0.9
|
p.p. |
59.3
|
%
|
1.3
|
p.p. |
58.9
|
%
|
58.0
|
%
|
0.9
|
p.p. | |||||||||
|
Operating
Revenues (US$ mm)
|
264.6
|
230.6
|
14.7
|
%
|
235.3
|
12.5
|
%
|
742.7
|
613.8
|
21.0
|
%
|
||||||||||||||
|
EBITDAR
(US$ mm) (1) (2)
|
72.5
|
66.0
|
10.0
|
%
|
61.7
|
17.6
|
%
|
213.8
|
169.6
|
26.1
|
%
|
||||||||||||||
|
EBITDAR
Margin (1)
(2)
|
27.4
|
%
|
28.6
|
%
|
-1.2
|
p.p. |
26.2
|
%
|
1.2
|
p.p. |
28.8
|
%
|
27.6
|
%
|
1.2
|
p.p.
|
|||||||||
|
Operating
Income (US$ mm)
|
46.7
|
45.2
|
3.3
|
%
|
39.0
|
19.8
|
%
|
146.5
|
115.5
|
26.9
|
%
|
||||||||||||||
|
Operating
Margin
|
17.6
|
%
|
19.6
|
%
|
-2.0
|
p.p. |
16.6
|
%
|
1.1
|
p.p. |
19.7
|
%
|
18.8
|
%
|
0.9
|
p.p. | |||||||||
|
Net
Income (US$ mm)
|
46.8
|
37.2
|
25.7
|
%
|
30.9
|
51.5
|
%
|
126.3
|
92.4
|
36.7
|
%
|
||||||||||||||
|
Adjusted
Net Income (US$ mm) (2)
|
38.8
|
37.2
|
4.2
|
%
|
30.9
|
25.5
|
%
|
118.3
|
92.4
|
28.0
|
%
|
||||||||||||||
|
Net
Margin
|
17.7
|
%
|
16.1
|
%
|
1.5
|
p.p. |
13.1
|
%
|
4.6
|
p.p. |
17.0
|
%
|
15.1
|
%
|
2.0
|
p.p. | |||||||||
|
Adjusted
Net Margin (2)
|
14.7
|
%
|
16.1
|
%
|
-1.5
|
p.p. |
13.1
|
%
|
1.5
|
p.p. |
15.9
|
%
|
15.1
|
%
|
0.9
|
p.p. | |||||||||
|
EPS
- Basic (US$)
|
1.09
|
0.87
|
25.4
|
%
|
0.72
|
51.1
|
%
|
2.94
|
2.16
|
36.3
|
%
|
||||||||||||||
|
Adjusted
EPS - Basic (US$) (2)
|
0.90
|
0.87
|
3.5
|
%
|
0.72
|
24.7
|
%
|
2.75
|
2.16
|
27.7
|
%
|
||||||||||||||
|
EPS
- Diluted (US$)
|
1.08
|
0.87
|
24.1
|
%
|
0.71
|
51.6
|
%
|
2.90
|
2.15
|
34.9
|
%
|
||||||||||||||
|
Adjusted
EPS - Diluted (US$) (2)
|
0.89
|
0.87
|
2.1
|
%
|
0.71
|
24.7
|
%
|
2.72
|
2.15
|
26.3
|
%
|
||||||||||||||
|
Weighted
Avg. # of Shares - Basic (000)
|
42,938
|
42,813
|
0.3
|
%
|
42,817
|
0.3
|
%
|
42,938
|
42,813
|
0.3
|
%
|
||||||||||||||
|
Weighted
Avg. # of Shares - Diluted (000)
|
43,479
|
42,908
|
1.3
|
%
|
43,502
|
-0.1
|
%
|
43,479
|
42,908
|
1.3
|
%
|
(1) 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.
(2)
For
3Q07, excludes a US$8.0 million pre-tax non-recurring gain related to insurance
proceeds in excess of aircraft book value. On
July 16, an Aero Republica aircraft overran the runway on arrival at the
Simon
Bolivar International Airport in the city of Santa Marta, Colombia. No major
injuries were sustained. The aircraft involved in this incident, an EMBRAER-190,
was declared a total loss.
2
Full
3Q07 earnings release available to download on: http://investor.shareholder.com/copa/results.cfm
3Q07
EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
|
Date:
|
November
15, 2007
|
||
|
|
Time:
|
11:00
a.m. US EST
|
|
|
|
Conference
Call:
|
||
|
Telephone
Number:
|
888-778-8884 (U.S.
Domestic Callers)
|
||
|
|
913-312-0385 (International
Callers)
|
||
|
Webcast:
|
http://investor.shareholder.com/copa/events.cfm
|
About
Copa Holdings
Copa
Holdings, through its Copa Airlines and Aero Republica operating subsidiaries,
is a leading Latin American provider of international airline passenger
and
cargo service. Copa Airlines currently offers approximately 116 daily scheduled
flights to 40 destinations in 21 countries in North, Central and South
America
and the Caribbean. In addition, Copa Airlines provides passengers with
access to flights to more than 120 other international destinations through
code
share agreements with Continental Airlines and other airlines. Aero Republica,
the second-largest domestic carrier in Colombia, provides service to 12
cities
in Colombia as well as international connectivity with Copa Airlines’ Hub of the
Americas through flights from Bogota, Cali, Cartagena and
Medellin.
3
[
|
COPA
HOLDINGS, S.A. - EBITDAR RECONCILIATION
|
||||||||||
|
(Figures
in US$ thousands)
|
||||||||||
|
3Q07
|
3Q06
|
2Q07
|
||||||||
|
Net
Income
|
$
|
46,822
|
$
|
37,240
|
$
|
30,907
|
||||
|
Interest
Expense
|
(11,524
|
)
|
(7,984
|
)
|
(10,393
|
)
|
||||
|
Capitalized
Interest
|
719
|
293
|
736
|
|||||||
|
Interest
Income
|
3,259
|
1,958
|
3,031
|
|||||||
|
Income
Taxes
|
(3,848
|
)
|
(2,972
|
)
|
(3,839
|
)
|
||||
|
EBIT
|
58,216
|
45,945
|
41,372
|
|||||||
|
Depreciation
and Amortization
|
9,056
|
6,497
|
8,455
|
|||||||
|
EBITDA
|
67,272
|
52,442
|
49,827
|
|||||||
|
Aircraft
Rent
|
10,478
|
10,904
|
9,303
|
|||||||
|
Other
Rentals
|
2,814
|
2,609
|
2,575
|
|||||||
|
EBITDAR
|
$
|
80,564
|
$
|
65,955
|
$
|
61,706
|
||||
|
Non-recurring
gain
|
(8,019
|
)
|
-
|
-
|
||||||
|
EBITDAR,
excluding Non-recurring gain
|
$
|
72,546
|
$
|
65,955
|
$
|
61,706
|
||||
4