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, 2013
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
Complejo Business Park, Torre Norte
ParqueLefevre
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: 3Q13 Earnings Release
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: 11/12/2013 | ||
| By: | /s/ José Montero | |
|
Name: José Montero Title: CFO | ||
| 2 |
Copa Holdings Reports Net Income of US$126.0 Million and EPS of US$2.84 for the Third Quarter of 2013
Excluding special items, adjusted net income came in at $116.2 million, or EPS of $2.62 per share
Panama City, Panama --- November 12, 2013. Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the third quarter of 2013 (3Q13). The terms “Copa Holdings" or "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 financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the third quarter of 2012 (3Q12).
OPERATING AND FINANCIAL HIGHLIGHTS
| § | Copa Holdings reported net income of US$126.0 million for 3Q13, or diluted earnings per share (EPS) of US$2.84. Excluding special items, Copa Holdings would have reported an adjusted net income of $116.2 million, or $2.62 per share, a 19.0% increase over adjusted net income of US$97.6 million and US$2.20 per share for 3Q12. |
| § | Operating income for 3Q13 came in at US$147.5 million, a 29.3% increase over operating income of US$114.1 million in 3Q12. Operating margin for the period came in at 21.8% or 2.5 percentage points over 3Q12, mostly as a result of higher unit revenues. |
| § | Total revenues increased 14.7% to US$677.3 million. Yield per passenger mile decreased 0.1% to 17.2 cents and operating revenue per available seat mile (RASM) increased 2.8% to 13.9 cents. However, adjusting for a 7.5% increase in average length of haul, yields increased 3.6% and RASM increased 6.6%. |
| § | For 3Q13, passenger traffic (RPMs) grew 15.5% on an 11.6% capacity expansion. Consolidated load factor came in at 78.1%, or 2.6 percentage points above 3Q12. |
| § | Operating cost per available seat mile (CASM) improved 0.3% to 10.9 cents. CASM, excluding fuel, increased 2.7% to 6.8 cents. |
| § | Cash, short term and long term investments ended 3Q13 at US$1.0 billion, representing 40.7% of the last twelve months’ revenues. |
| § | During the third quarter, Copa Airlines took delivery of three Boeing 737-800 aircraft. As a result, Copa Holdings ended the quarter with a consolidated fleet of 89 aircraft. Additionally, during the months of September and October, Copa Airlines completed the extension of four 737-700 aircraft leases that were expiring in 2014. |
| § | For 3Q13, Copa Holdings reported consolidated on-time performance of 87.3% and a flight-completion factor of 99.7%, maintaining its position among the best in the industry. |
| Consolidated Financial & Operating Highlights | 3Q13 | 3Q12 | % Change | 2Q13 | % Change | |||||||||||||||
| Revenue Passengers Carried ('000) | 2,007 | 1,869 | 7.4 | % | 1,861 | 7.8 | % | |||||||||||||
| RPMs (mm) | 3,803 | 3,294 | 15.5 | % | 3,475 | 9.4 | % | |||||||||||||
| ASMs (mm) | 4,872 | 4,367 | 11.6 | % | 4,618 | 5.5 | % | |||||||||||||
| Load Factor | 78.1 | % | 75.4 | % | 2.6 p.p. | 75.3 | % | 2.8 p.p. | ||||||||||||
| Yield | 17.2 | 17.3 | -0.1 | % | 16.4 | 5.4 | % | |||||||||||||
| PRASM (US$ Cents) | 13.5 | 13.0 | 3.4 | % | 12.3 | 9.3 | % | |||||||||||||
| RASM (US$ Cents) | 13.9 | 13.5 | 2.8 | % | 12.8 | 8.4 | % | |||||||||||||
| CASM (US$ Cents) | 10.9 | 10.9 | -0.3 | % | 10.7 | 1.6 | % | |||||||||||||
| CASM Excl. Fuel (US$ Cents) | 6.8 | 6.6 | 2.7 | % | 6.7 | 1.5 | % | |||||||||||||
| Breakeven Load Factor (1) | 61.4 | % | 59.8 | % | 1.6 p.p. | 61.6 | % | -0.2 p.p. | ||||||||||||
| Fuel Gallons Consumed (Millions) | 63.6 | 57.7 | 10.3 | % | 60.0 | 6.0 | % | |||||||||||||
| Avg. Price Per Fuel Gallon (US$ Dollars) | 3.12 | 3.24 | -3.8 | % | 3.08 | 1.2 | % | |||||||||||||
| Average Length of Haul (Miles) | 1,895 | 1,763 | 7.5 | % | 1,868 | 1.5 | % | |||||||||||||
| Average Stage Length (Miles) | 1,160 | 1,082 | 7.2 | % | 1,126 | 3.0 | % | |||||||||||||
| Departures | 30,126 | 29,365 | 2.6 | % | 29,357 | 2.6 | % | |||||||||||||
| Block Hours | 89,623 | 82,103 | 9.2 | % | 84,985 | 5.5 | % | |||||||||||||
| Average Aircraft Utilization (Hours) | 11.2 | 11.2 | 0.1 | % | 10.9 | 2.7 | % | |||||||||||||
| Operating Revenues (US$ mm) | 677.3 | 590.4 | 14.7 | % | 592.0 | 14.4 | % | |||||||||||||
| Operating Income (US$ mm) | 147.5 | 114.1 | 29.3 | % | 97.7 | 51.0 | % | |||||||||||||
| Operating Margin | 21.8 | % | 19.3 | % | 2.5 p.p. | 16.5 | % | 5.3 p.p. | ||||||||||||
| Net Income (US$ mm) | 126.0 | 111.9 | 12.6 | % | 74.4 | 69.3 | % | |||||||||||||
| Adjusted Net Income (US$ mm) (1) | 116.2 | 97.6 | 19.0 | % | 85.0 | 36.7 | % | |||||||||||||
| EPS - Basic and Diluted (US$) | 2.84 | 2.52 | 12.6 | % | 1.68 | 69.2 | % | |||||||||||||
| Adjusted EPS - Basic and Diluted (US$) (1) | 2.62 | 2.20 | 19.0 | % | 1.92 | 36.6 | % | |||||||||||||
| # of Shares - Basic and Diluted ('000) | 44,380 | 44,407 | -0.1 | % | 44,387 | 0.0 | % | |||||||||||||
(1)Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 3Q13, 3Q12, and 2Q13 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges.
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
| 2 |
MANAGEMENT’S COMMENTS ON 3Q13 RESULTS
Copa Holdings third quarter results continued to reflect solid demand trends as well as lower unit costs due to lower fuel prices for the quarter. For 3Q13, the Company reported operating income of US$147.5 million, a 29.3% increase over 3Q12. As a result, operating margin for the quarter stood at 21.8%, an increase of 2.5 percentage points over 3Q12.
Consolidated operating revenues increased 14.7% to US$677.3 million on an 11.6% capacity expansion for the period. Load factor came in at 78.1%, or 2.6 percentage points above 3Q12, while yields came in at 17.2 cents, or 0.1% lower than 3Q12. As a result, passenger revenues per ASM (PRASM) increased 3.4%, from 13.0 cents in 3Q12 to 13.5 cents in 3Q13. Furthermore, adjusting for a 7.5% increase in length of haul, PRASM increased 7.2% over 3Q12.
Consolidated operating expenses for 3Q13 increased 11.2% to US$529.8 million, and consolidated operating expenses per ASM (CASM) decreased 0.3% to 10.9 cents. However, excluding fuel costs, unit costs increased 2.7% to 6.8 cents, mainly as a result of higher aircraft rental expense and an increase in sales related costs.
Aircraft fuel expense increased 6.1% or US$11.3 million compared to 3Q12, as a result of increased capacity. The Company’s effective jet fuel price, which includes realized hedge gains of US$6.8 million and US$2.0 million for 3Q13 and 3Q12, respectively, decreased 3.8%, from an average of US$3.24 in 3Q12 to US$3.12 in 3Q13. At the end of 3Q13, the Company had fuel hedges in place representing 38% of its consolidated volume. Continuing with the execution of its fuel hedge policy, the Company currently has hedged approximately 37% in 4Q13. For 2014 and 2015, the Company had hedged approximately 20% and 15%, respectively, of its forecasted fuel consumption.
The Company recorded a net non-operating income of US$6.3 million for 3Q13 compared to a net non-operating income of US$8.9 million for 3Q12. Non-operating income (expense) included a fuel hedge mark-to-market gain of US$9.8 million, compared to a fuel hedge mark-to-market gain of US$14.3 million for 3Q12.
Copa Holdings closed the quarter with US$1.0 billion in cash, short term and long term investments, representing 40.7% of last twelve months´ revenues. Of such cash, 38.4% or $391.8 million was subject to exchange controls in Venezuela and was pending repatriation. Total debt at the end of 3Q13 amounted to US$1.1 billion, all of which is related to aircraft and equipment financing.
Copa Holdings’ strong third quarter results are the product of a solid and well executed business model which leverages the Company’s unique competitive advantages, such as geographic position and infrastructure, among others, to operate the best and most convenient network for intra-Latin America travel from the Hub of the Americas in Panama. Going forward, the Company will continue to strengthen its long-term competitive position by taking advantage of new growth opportunities and implementing initiatives to further strengthen its network and product.
| 3 |
OUTLOOK FOR 2013
For 2013, the Company reaffirms its guidance. Consolidated capacity is still expected to grow in the range of 14%, as a result of the full year effect of capacity added in 2012 and the introduction of seven new 737-800 aircraft during 2013. Our guidance in terms of load factor, RASM and CASM ex-fuel levels remain unchanged. Factored into the current guidance is an estimated effective price per gallon of jet fuel, including the effect of current hedge contracts and into-plane costs, of US$3.20 per gallon. As a result, we are narrowing our full year operating margin guidance to +/-20%.
| Financial Outlook | 2013 - Full Year Revised | 2013 - Full Year Prior | 2012 Actual | |||||||||
| Capacity - YOY ASM Growth | +/-14 | % | +/-14 | % | 24.1 | % | ||||||
| Average Load Factor | +/-76 | % | +/-76 | % | 75.4 | % | ||||||
| RASM (cents) | +/-13.6 | +/-13.6 | 13.6 | |||||||||
| CASM Ex-fuel (cents) | +/-6.7 | +/-6.7 | 6.8 | |||||||||
| Operating Margin | +/-20 | % | 19-21 | % | 17.9 | % | ||||||
OUTLOOK FOR 2014 – PRELIMINARY
For 2014, preliminary guidance is for consolidated capacity growth in the range of 10% as a result of the full year effect of capacity added in 2013 and the introduction of 8 Boeing 737-800 aircraft during the year.
Load factors are expected to come in above 2013 levels as a result of a healthy demand environment and lower year over year capacity growth. As a result, unit revenues (RASM) are expected to come in at 13.7 cents, slightly higher than 2013 levels. However, at 6.8 cents, CASM ex-fuel is also expected to come in slightly higher year over year. The estimated effective price per gallon of jet fuel, including the effect of current hedge contracts and into-plane costs for 2014 is US$3.15 per gallon. As a result, the Company is projecting an operating margin in the range of 19% to 21%.
| Financial Outlook | 2014 – Full Year | |||
| Capacity - YOY ASM Growth | +/-10 | % | ||
| Average Load Factor | +/-77 | % | ||
| RASM (cents) | +/-13.7 | |||
| CASM Ex-fuel (cents) | +/-6.8 | |||
| Operating Margin | 19-21 | % | ||
| 4 |
CONSOLIDATED THIRD QUARTER RESULTS
Operating revenue
Copa Holdings’ operating revenue for 3Q13 totaled US$677.3 million, a 14.7% increase over operating revenue of US$590.4 million in 3Q12. This increase was due to a 15.4% or US$87.4 million increase in passenger revenue.
Passenger revenue. For 3Q13 passenger revenue totaled US$656.0 million, a 15.4% increase over passenger revenue of US$568.6 million in 3Q12. A 2.6 percentage point increase in load factor, slightly offset by a 0.1% drop in passenger yield, resulted in a 3.4% increase in passenger revenue per ASM (PRASM).
Cargo, mail and other. Cargo, mail and other revenue totaled US$21.3 million in 3Q13, a 2.7% decrease over cargo, mail and other revenue of US$21.9 million in 3Q12.
Operating expenses
For 3Q13, consolidated operating expenses increased 11.2% to US$529.8 million, representing operating cost per available seat mile (CASM) of 10.9 cents. CASM, excluding fuel costs, increased 2.7% to 6.8 cents. An overview of the major variances on a consolidated basis follows:
Aircraft fuel. For 3Q13, aircraft fuel totaled US$198.2 million, an US$11.3 million or 6.1% increase over aircraft fuel of US$186.8 million in 3Q12. This increase was primarily a result of a 10.3% increase in gallons consumed, offset by a 3.8% decrease in the average price per gallon of jet fuel (all-in), which averaged U.S$3.12 in 3Q13 as compared to US$3.24 in 3Q12. The all-in average price per gallon of jet fuel for 3Q13 includes a $6.4 million fuel hedge gain, compared to a US$2.0 million gain in 3Q12. Excluding the effect of fuel hedge gains for both periods, fuel prices decreased 1.6%, from US$3.28 per gallon in 3Q12 to US$3.22 in 3Q13.
Salaries and benefits. For 3Q13, salaries and benefits totaled US$69.9 million, an 11.1% increase over salaries and benefits of US$63.0 million in 3Q12. The main driver was an increase in operating headcount to support additional capacity.
Passenger servicing. For 3Q13, passenger servicing totaled US$64.9 million, a 13.9% increase over passenger servicing of US$57.0 million in 3Q12. This increase resulted mainly from growth in our onboard passengers, as well as a higher effective rates related to airport services.
Commissions. For 3Q13, commissions totaled US$27.7 million, a 17.9% increase over commissions of US$23.5 million in 3Q12. This increase was primarily a result a higher revenue base and a higher proportion of credit card sales.
| 5 |
Reservations and sales. Reservations and sales totaled US$27.6 million, a 24.2% increase over reservation and sales of US$22.2 million in 3Q12. This increase was primarily a result of an increase in passenger revenue and higher sales related taxes due to the revenue mix.
Maintenance, material and repairs. For 3Q13, maintenance, material and repairs totaled US$25.0 million, a 7.1% increase over maintenance, material and repairs of US$23.4 million in 3Q12. This increase was primarily a result of our growth in operations.
Depreciation. Depreciation totaled US$26.6 million in 3Q13, a 15.4% increase over depreciation of US$23.0 million in 3Q12. This increase was primarily driven by additional projects and aircraft components.
Flight operations, aircraft rentals, landing fees and other rentals. Combined, flight operations, aircraft rentals, landing fees and other rentals increased 15.7% from US$57.9 million in 3Q12 to US$67.0 million in 3Q13, primarily as a result of an increase in departures and additional aircraft rentals.
Other. Other expenses totaled US$22.9 million, an increase of US$3.3 million over 3Q12 mainly as a result of higher advertising expenses.
Non-operating income (expense)
Consolidated non-operating income (expense) totaled a net income of US$6.3 million in 3Q13, compared to a net income of US$8.9 million in 3Q12.
Interest expense. Interest expense totaled US$7.5 million in 3Q13, an 7.5% decline from interest expense of US$8.1 million in 3Q12, as a result of lower interest rates on our variable rate debt and a lower outstanding debt balance.
Interest income. Interest income totaled US$3.1 million, a 4.2% decrease over interest income of US$3.2 million in 3Q12, mainly as a result of lower rates on investments partly offset by a higher average cash and investments balance.
Other, net. Other, net totaled a net gain of US$10.7 million in 3Q13 compared to a net gain of US$13.8 million in 3Q12. Other, net for 3Q13, includes a fuel hedge mark-to-market gain of US$9.8 million, compared to a fuel hedge mark-to-market gain of US$14.3 million for 3Q12.
About Copa Holdings:
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to 66 destinations in 29 countries in North, Central and South America and the Caribbean with one of the youngest and most modern fleets in the industry, consisting of 90 aircraft: 64 Boeing 737NG aircraft and 26 EMBRAER-190s. For more information visit: www.copaair.com.
This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates and expectations, and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings’ filed disclosure documents and are, therefore, subject to change without prior notice.
| 6 |
| Copa Holdings, S.A. | |||||||||
| Income Statement - IFRS | |||||||||
| (US$ Thousands) | |||||||||
| Unaudited | Unaudited | % | Unaudited | % | ||||||||||||||||
| 3Q13 | 3Q12 | Change | 2Q13 | Change | ||||||||||||||||
| Operating Revenues | ||||||||||||||||||||
| Passenger Revenue | 655,991 | 568,564 | 15.4 | % | 568,960 | 15.3 | % | |||||||||||||
| Cargo, mail and other | 21,288 | 21,884 | -2.7 | % | 23,038 | -7.6 | % | |||||||||||||
| Total Operating Revenue | 677,279 | 590,448 | 14.7 | % | 591,998 | 14.4 | % | |||||||||||||
| Operating Expenses | ||||||||||||||||||||
| Aircraft fuel | 198,163 | 186,844 | 6.1 | % | 184,767 | 7.3 | % | |||||||||||||
| Salaries and benefits | 69,941 | 62,964 | 11.1 | % | 66,105 | 5.8 | % | |||||||||||||
| Passenger servicing | 64,913 | 56,973 | 13.9 | % | 60,389 | 7.5 | % | |||||||||||||
| Commissions | 27,717 | 23,501 | 17.9 | % | 24,279 | 14.2 | % | |||||||||||||
| Reservations and sales | 27,588 | 22,203 | 24.2 | % | 24,763 | 11.4 | % | |||||||||||||
| Maintenance, material and repairs | 25,035 | 23,370 | 7.1 | % | 22,807 | 9.8 | % | |||||||||||||
| Depreciation | 26,576 | 23,031 | 15.4 | % | 26,866 | -1.1 | % | |||||||||||||
| Flight operations | 30,829 | 27,217 | 13.3 | % | 30,028 | 2.7 | % | |||||||||||||
| Aircraft rentals | 23,540 | 18,504 | 27.2 | % | 22,124 | 6.4 | % | |||||||||||||
| Landing fees and other rentals | 12,607 | 12,190 | 3.4 | % | 12,789 | -1.4 | % | |||||||||||||
| Other | 22,878 | 19,561 | 17.0 | % | 19,393 | 18.0 | % | |||||||||||||
| Total Operating Expense | 529,787 | 476,359 | 11.2 | % | 494,309 | 7.2 | % | |||||||||||||
| Operating Income | 147,492 | 114,089 | 29.3 | % | 97,689 | 51.0 | % | |||||||||||||
| Non-operating Income (Expense): | ||||||||||||||||||||
| Interest expense | (7,513 | ) | (8,124 | ) | -7.5 | % | (7,560 | ) | -0.6 | % | ||||||||||
| Interest income | 3,127 | 3,235 | -3.3 | % | 2,841 | 10.1 | % | |||||||||||||
| Other, net | 10,700 | 13,750 | -22.2 | % | (10,616 | ) | -200.8 | % | ||||||||||||
| Total Non-Operating Income/(Expense) | 6,314 | 8,861 | n/a | (15,336 | ) | -141.2 | % | |||||||||||||
| Income before Income Taxes | 153,807 | 122,951 | 25.1 | % | 82,354 | 86.8 | % | |||||||||||||
| Provision for Income Taxes | 27,798 | 11,033 | 152.0 | % | 7,912 | 251.3 | % | |||||||||||||
| Net Income | 126,008 | 111,917 | 12.6 | % | 74,441 | 69.3 | % | |||||||||||||
| EPS - Basic and Diluted | 2.84 | 2.52 | 12.7 | % | 1.68 | 69.3 | % | |||||||||||||
| Shares - Basic and Diluted | 44,379,507 | 44,406,679 | -0.1 | % | 44,387,279 | 0.0 | % | |||||||||||||
| 7 |
| Copa Holdings, S.A. | |||||
| Balance Sheet - IFRS | |||||
| (US$ Thousands) |
| September 30, | December 31, | |||||||
| 2013 | 2012 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 475,181 | $ | 76,094 | ||||
| Short-term investments | 499,047 | 575,009 | ||||||
| Total cash, cash equivalents and short-term investments | 974,228 | 651,103 | ||||||
| Accounts receivable, net of allowance for doubtful accounts | 173,175 | 135,207 | ||||||
| Accounts receivable from related parties | 2,109 | 1,129 | ||||||
| Expendable parts and supplies, net of allowance for obsolescence | 56,314 | 50,603 | ||||||
| Prepaid expenses | 62,163 | 63,120 | ||||||
| Other current assets | 19,073 | 16,328 | ||||||
| Total Current Assets | 1,287,062 | 917,490 | ||||||
| Long-term investments | 46,590 | 69,445 | ||||||
| Property and Equipment: | ||||||||
| Owned property and equipment: | ||||||||
| Flight equipment | 2,462,278 | 2,405,346 | ||||||
| Other equipment | 71,570 | 66,330 | ||||||
| 2,533,848 | 2,471,676 | |||||||
| Less: Accumulated depreciation | (505,147 | ) | (432,589 | ) | ||||
| 2,028,701 | 2,039,087 | |||||||
| Purchase deposits for flight equipment | 302,371 | 245,544 | ||||||
| Total Property and Equipment | 2,331,072 | 2,284,631 | ||||||
| Other Assets: | ||||||||
| Net pension asset | 10,826 | 10,009 | ||||||
| Goodwill | 25,466 | 27,575 | ||||||
| Intangible asset | 57,767 | 59,382 | ||||||
| Other assets | 110,889 | 110,968 | ||||||
| Total Other Assets | 204,948 | 207,934 | ||||||
| Total Assets | $ | 3,869,672 | $ | 3,479,500 | ||||
| LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Current maturities of long-term debt | $ | 140,114 | $ | 136,268 | ||||
| Accounts payable | 101,128 | 104,975 | ||||||
| Accounts payable to related parties | 15,380 | 20,255 | ||||||
| Air traffic liability | 549,721 | 382,807 | ||||||
| Taxes and interest payable | 121,647 | 85,436 | ||||||
| Accrued expenses payable | 65,993 | 48,047 | ||||||
| Other current liabilities | 7,835 | 10,902 | ||||||
| Total Current Liabilities | 1,001,818 | 788,690 | ||||||
| Non-Current Liabilities: | ||||||||
| Long-term debt | 960,462 | 1,069,836 | ||||||
| Post employment benefits liability | 6,309 | 6,340 | ||||||
| Other long-term liabilities | 49,912 | 43,726 | ||||||
| Deferred tax liabilities | 32,274 | 34,364 | ||||||
| Total Non-Current Liabilities | 1,048,957 | 1,154,266 | ||||||
| Total Liabilities | 2,050,775 | 1,942,956 | ||||||
| Shareholders' Equity: | ||||||||
| Class A - 33,408,055 shares issued and outstanding | 22,626 | 22,591 | ||||||
| Class B - 10,938,125 shares issued and outstanding | 7,466 | 7,466 | ||||||
| Additional paid in capital | 45,594 | 40,660 | ||||||
| Retained earnings | 1,739,740 | 1,458,258 | ||||||
| Accumulated other comprehensive income (loss) | 3,470 | 7,569 | ||||||
| Total Shareholders' Equity | 1,818,896 | 1,536,544 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 3,869,672 | $ | 3,479,500 | ||||
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NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non IFRS financial measures: CASM Excluding Fuel, Adjusted Net Income and Adjusted EPS. 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 income and net income. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:
| Reconciliation of Net Income | ||||||||||||
| Excluding Special Items | 3Q13 | 3Q12 | 2Q13 | |||||||||
| Net income as Reported | $ | 126,008 | $ | 111,917 | $ | 74,441 | ||||||
| Special Items (adjustments): | ||||||||||||
| Unrealized (gain) loss on fuel hedging instruments | (9,820 | ) | (14,277 | ) | 10,582 | |||||||
| Adjusted Net Income | $ | 116,188 | $ | 97,640 | $ | 85,023 | ||||||
| Shares used for Computation (in thousands) | ||||||||||||
| Basic and Diluted | 44,380 | 44,407 | 44,387 | |||||||||
| Adjusted earnings per share - Basic and Diluted | 2.62 | 2.20 | 1.92 | |||||||||
| Reconciliation Operating Costs per ASM | ||||||||||||
| Excluding Fuel and Special Items | 3Q13 | 3Q12 | 2Q13 | |||||||||
| Operating Costs per ASM as Reported | 10.9 | 10.9 | 10.7 | |||||||||
| Aircraft fuel per ASM | (4.1 | ) | (4.3 | ) | (4.0 | ) | ||||||
| Operating Costs per ASM excluding fuel | 6.8 | 6.6 | 6.7 | |||||||||
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