Copa Holdings Reports Financial Results for the First Quarter of 2021
OPERATING AND FINANCIAL HIGHLIGHTS
Copa Holdings reported a net loss ofUS$110.7 million for the quarter, orUS$2.60 per share. Excluding special items, the Company would have reported a net loss ofUS$95.1 million , orUS$2.23 per share. Special items for the quarter include aUS$15.7 million unrealized mark-to-market loss related to the Company's convertible notes.Copa Holdings reported an operating loss ofUS$77.1 million for the quarter.- Cash consumption, defined as cash disbursements less proceeds, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, averaged approximately
US$23 million per month during the quarter. - The Company ended the quarter with
US$1.5 billion of available liquidity, consisting of approximatelyUS$1.2 billion in cash, short-term and long-term investments, and committed and undrawn credit facilities ofUS$345 million . - The Company closed the quarter with total debt, including lease liabilities, of
US$1.7 billion . - The Company's flight operations, measured in terms of available seat miles (ASMs), represented approximately 39% of those in the same period in 2019.
- During the quarter, 4 Embraer 190 aircraft exited the fleet as part of a previously agreed sale to a third party. As of
March 31, 2021 , there were 4 remaining Embraer 190 aircraft sold that are expected to leave during the second quarter. - During the quarter, the Company took delivery of 6 Boeing 737 MAX 9. Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage,
Copa Holdings ended the quarter with a consolidated fleet of 81 aircraft – 68 Boeing 737-800s and 13 Boeing 737 MAX 9s, compared to a total fleet of 102 aircraft at the end of the first quarter of 2020. - During the quarter,
Copa Airlines had an on-time performance of 95.0% and a flight-completion factor of 99.3%, once again positioning itself among the best in the industry.
Subsequent Events
- In April, the Company delivered 1 Embraer 190 aircraft, out of 14 that were sold to a third party.
Consolidated Financial |
1Q21 |
1Q20 |
Variance vs. 1Q20 |
4Q20 |
Variance vs. 4Q20 |
1Q19 |
Variance vs. 1Q19 |
Revenue Passengers Carried (000s) |
924 |
2,118 |
-56.4% |
681 |
35.6% |
2,620 |
-64.7% |
RPMs (millions) |
1,716 |
4,473 |
-61.6% |
1,259 |
36.3% |
5,345 |
-67.9% |
ASMs (millions) |
2,481 |
5,491 |
-54.8% |
1,684 |
47.3% |
6,415 |
-61.3% |
Load Factor |
69.2% |
81.5% |
-12.3 p.p. |
74.8% |
-5.6 p.p. |
83.3% |
-14.1 p.p. |
Yield (US$ Cents) |
10.1 |
12.8 |
-21.5% |
11.7 |
-13.9% |
12.1 |
-16.9% |
PRASM (US$ Cents) |
7.0 |
10.5 |
-33.3% |
8.8 |
-20.4% |
10.1 |
-31.0% |
RASM (US$ Cents) |
7.5 |
10.8 |
-31.0% |
9.4 |
-20.6% |
10.5 |
-28.6% |
CASM (US$ Cents) |
10.6 |
9.0 |
17.1% |
15.1 |
-29.7% |
8.7 |
21.5% |
CASM Excl. Fuel (US$ Cents) |
8.5 |
6.6 |
30.1% |
13.4 |
-36.3% |
6.1 |
40.5% |
Fuel Gallons Consumed (millions) |
29.08 |
70.02 |
-58.5% |
20.75 |
40.1% |
81.2 |
-64.2% |
Avg. Price Per Fuel Gallon (US$) |
1.75 |
1.95 |
-9.9% |
1.41 |
24.2% |
2.09 |
-15.9% |
Average Length of Haul (miles) |
1,858 |
2,112 |
-12.0% |
1,849 |
0.5% |
2,040 |
-8.9% |
Average Stage Length (miles) |
1,256 |
1,308 |
-3.9% |
1,211 |
3.7% |
1,299 |
-3.3% |
Departures |
12,372 |
28,286 |
-56.3% |
8,795 |
40.7% |
33,329 |
-62.9% |
|
38,851 |
93,568 |
-58.5% |
26,870 |
44.6% |
110,089 |
-64.7% |
Average Aircraft Utilization (hours) (2) |
6.6 |
10.7 |
-38.6% |
5.2 |
26.8% |
12 |
-43.9% |
Operating Revenues (US$ millions) |
185.7 |
595.5 |
-68.8% |
158.6 |
17.0% |
672.2 |
-72.4% |
Operating Profit (Loss) (US$ millions) |
-77.1 |
98.7 |
-178.1% |
-95.1 |
-18.9% |
112.9 |
-168.3% |
Adjusted Operating Profit (Loss) (US$ millions) (1) |
-77.1 |
98.7 |
-178.1% |
-91.5 |
-15.8% |
112.9 |
-168.3% |
Operating Margin |
-41.5% |
16.6% |
-58.1 p.p. |
-59.9% |
18.4 p.p. |
16.8% |
-58.3 p.p. |
Adjusted Operating Margin (1) |
-41.5% |
16.6% |
-58.1 p.p. |
-57.7% |
16.2 p.p. |
16.8% |
-58.3 p.p. |
Net Profit (Loss) (US$ millions) |
-110.7 |
74.3 |
-249.1% |
-177.3 |
-37.5% |
89.4 |
-223.8% |
Adjusted Net Profit (Loss) (US$ millions) (1) |
-95.1 |
74.3 |
-228.0% |
-85.2 |
11.6% |
89.4 |
-206.3% |
Basic EPS (US$) |
-2.60 |
1.75 |
-248.8% |
-4.17 |
-37.6% |
2.11 |
-223.5% |
Adjusted Basic EPS (US$) (1) |
-2.23 |
1.75 |
-227.8% |
-2.00 |
11.4% |
2.11 |
-206.1% |
Shares for calculation of Basic EPS (000s) |
42,571 |
42,501 |
0.2% |
42,511 |
0.1% |
42,478 |
0.2% |
(1) Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures. |
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(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. |
FULL 1Q21 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
1Q21 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date: |
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Time: |
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Conference telephone number: |
877-293-5456 (US Domestic Callers) |
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707-287-9357 (International Callers) |
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Webcast: |
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Speakers: |
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About
CONTACT:
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
CPA-G
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Income Statement - IFRS |
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(US$ Thousands) |
||||||||||||||
Unaudited |
Unaudited |
% |
Unaudited |
% |
Unaudited |
% |
||||||||
1Q21 |
1Q20 |
Change |
4Q20 |
Change |
1Q19 |
Change |
||||||||
Operating Revenues |
||||||||||||||
Passenger revenue |
173,095 |
574,650 |
-69.9% |
147,535 |
17.3% |
648,790 |
-73.3% |
|||||||
Cargo and mail revenue |
7,956 |
13,017 |
-38.9% |
7,243 |
9.9% |
15,316 |
-48.1% |
|||||||
Other operating revenue |
4,626 |
7,785 |
-40.6% |
3,858 |
19.9% |
8,063 |
-42.6% |
|||||||
Total Operating Revenue |
185,677 |
595,453 |
-68.8% |
158,636 |
17.0% |
672,169 |
-72.4% |
|||||||
Operating Expenses |
||||||||||||||
Fuel |
51,308 |
136,954 |
-62.5% |
28,346 |
81.0% |
170,163 |
-69.8% |
|||||||
Wages, salaries, benefits and other employees' expenses |
54,575 |
110,289 |
-50.5% |
63,599 |
-14.2% |
113,662 |
-52.0% |
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Passenger servicing |
5,586 |
21,890 |
-74.5% |
4,180 |
33.6% |
25,571 |
-78.2% |
|||||||
Airport facilities and handling charges |
22,044 |
40,365 |
-45.4% |
16,914 |
30.3% |
45,362 |
-51.4% |
|||||||
Sales and distribution |
21,652 |
42,011 |
-48.5% |
18,646 |
16.1% |
53,133 |
-59.2% |
|||||||
Maintenance, materials and repairs |
19,727 |
27,144 |
-27.3% |
33,221 |
-40.6% |
28,047 |
-29.7% |
|||||||
Depreciation and amortization |
59,450 |
66,375 |
-10.4% |
67,850 |
-12.4% |
68,187 |
-12.8% |
|||||||
Flight operations |
9,410 |
23,731 |
-60.3% |
5,925 |
58.8% |
25,875 |
-63.6% |
|||||||
Other operating and administrative expenses |
19,006 |
28,008 |
-32.1% |
15,011 |
26.6% |
29,297 |
-35.1% |
|||||||
Total Operating Expense |
262,759 |
496,766 |
-47.1% |
253,693 |
3.6% |
559,296 |
-53.0% |
|||||||
Operating Profit (Loss) |
(77,081) |
98,687 |
-178.1% |
(95,057) |
-18.9% |
112,873 |
-168.3% |
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Non-operating Income (Expense): |
||||||||||||||
Finance cost |
(17,818) |
(11,085) |
60.7% |
(18,360) |
-3.0% |
(14,010) |
27.2% |
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Finance income |
2,853 |
6,320 |
-54.9% |
3,571 |
-20.1% |
5,954 |
-52.1% |
|||||||
Net change in fair value of derivatives |
(15,663) |
- |
n/m |
(88,532) |
-82.3% |
- |
n/m |
|||||||
Gain (loss) on foreign currency fluctuations |
(1,809) |
(10,950) |
-83.5% |
2,361 |
-176.6% |
(5,960) |
-69.6% |
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Other non-operating income (expense) |
(976) |
(11) |
n/m |
1,026 |
-195.2% |
(825) |
18.4% |
|||||||
Total Non-Operating Income/(Expense) |
(33,412) |
(15,726) |
112.5% |
(99,934) |
-66.6% |
(14,841) |
125.1% |
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Profit (Loss) before taxes |
(110,494) |
82,961 |
-233.2% |
(194,991) |
-43.3% |
98,032 |
-212.7% |
|||||||
Income tax expense |
239 |
8,687 |
-97.2% |
(17,731) |
-101.3% |
8,600 |
-97.2% |
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Net Profit (Loss) |
(110,733) |
74,273 |
-249.1% |
(177,261) |
-37.5% |
89,431 |
-223.8% |
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EPS |
||||||||||||||
Basic |
-2.60 |
1.75 |
-248.8% |
-4.17 |
-37.6% |
2.11 |
-223.5% |
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Shares used for calculation: |
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Basic |
42,570,983 |
42,501,338 |
42,510,573 |
42,477,761 |
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Consolidated statement of financial position |
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(US$ Thousands) |
March |
December |
2021 |
2020 |
|
(Unaudited) |
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ASSETS |
||
Current Assets |
||
Cash and cash equivalents |
193,801 |
119,065 |
Short-term investments |
898,453 |
770,816 |
Total cash, cash equivalents and short-term investments |
1,092,254 |
889,881 |
Accounts receivable, net |
68,436 |
63,206 |
Accounts receivable from related parties |
1,042 |
1,429 |
Expendable parts and supplies, net |
72,992 |
74,319 |
Prepaid expenses |
27,556 |
30,473 |
Prepaid income tax |
16,189 |
16,716 |
Other current assets |
6,908 |
7,805 |
193,123 |
193,948 |
|
Assets held for sale |
115,303 |
135,542 |
TOTAL CURRENT ASSETS |
1,400,679 |
1,219,371 |
Long-term investments |
111,001 |
119,617 |
Long-term accounts receivable |
1,054 |
1,054 |
Long-term prepaid expenses |
5,680 |
6,066 |
Property and equipment, net |
2,215,264 |
2,147,486 |
Right of use assets |
193,553 |
214,279 |
Intangible, net |
91,316 |
95,568 |
Deferred tax assets |
35,413 |
35,595 |
Other Non-Current Assets |
13,917 |
14,348 |
TOTAL NON-CURRENT ASSETS |
2,667,199 |
2,634,013 |
TOTAL ASSETS |
4,067,878 |
3,853,385 |
LIABILITIES |
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Loans and borrowings |
157,393 |
127,946 |
Current portion of lease liability |
81,309 |
83,605 |
Accounts payable |
75,917 |
63,461 |
Accounts payable to related parties |
4,538 |
2,970 |
Air traffic liability |
475,084 |
470,695 |
Frequent flyer deferred revenue |
92,992 |
91,213 |
Taxes Payable |
18,267 |
13,400 |
Employee benefits obligations |
28,912 |
33,995 |
Income tax payable |
1,422 |
1,023 |
Other Current Liabilities |
197 |
252 |
TOTAL CURRENT LIABILITIES |
936,033 |
888,561 |
Loans and borrowings long-term |
1,308,987 |
1,035,954 |
Lease Liability |
126,436 |
146,905 |
Net employee defined benefit liabilities |
14,524 |
14,332 |
Derivative financial instruments |
261,223 |
245,560 |
Deferred tax Liabilities |
20,862 |
22,190 |
Other long - term liabilities |
225,642 |
216,325 |
TOTAL NON-CURRENT LIABILITIES |
1,957,673 |
1,681,265 |
TOTAL LIABILITIES |
2,893,705 |
2,569,825 |
EQUITY |
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Issued Capital |
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Class A - 33,998,370 issued and 31,543,037 outstanding |
21,282 |
21,199 |
Class B common stock - 10,938,125 |
7,466 |
7,466 |
|
92,608 |
91,341 |
Treasury Stock |
(136,388) |
(136,388) |
Retained Earnings |
1,324,025 |
1,931,086 |
Net (loss) profit |
(110,733) |
- 607,062 |
Other comprehensive loss |
(24,086) |
(24,082) |
TOTAL EQUITY |
1,174,173 |
1,283,560 |
TOTAL EQUITY & LIABILITIES |
4,067,878 |
3,853,385 |
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Consolidated Statement of Cash Flows |
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For the three months ended |
||||||||||||||
(In US$ thousands) |
||||||||||||||
2021 |
2020 |
2019 |
||||||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||||
Cash flow (used in) from operating activities |
(892) |
106,340 |
144,061 |
|||||||||||
Cash flow (used in) from investing activities |
(86,697) |
19,795 |
(3,591) |
|||||||||||
Cash flow from (used in) financing activities |
162,325 |
55,058 |
(84,361) |
|||||||||||
Net increase in cash and cash equivalents |
74,736 |
181,193 |
56,109 |
|||||||||||
Cash and cash equivalents at |
119,065 |
158,732 |
156,158 |
|||||||||||
Cash and cash equivalents at |
$ 193,801 |
$ 339,925 |
$ 212,267 |
|||||||||||
Short-term investments |
898,453 |
672,721 |
556,127 |
|||||||||||
Long-term investments |
111,001 |
114,277 |
128,992 |
|||||||||||
Total cash and cash equivalents and investments at |
$ 1,203,255 |
$ 1,126,923 |
$ 897,386 |
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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 |
1Q21 |
1Q20 |
4Q20 |
1Q19 |
||||
Operating Profit as Reported |
$ (77,081) |
$ 98,687 |
$ (95,057) |
$ 112,873 |
||||
Add: Fleet Impairment charges |
$ 4,400 |
|||||||
Add: Expected loss (gain) on Embraer assets held for sale |
$ (877) |
|||||||
Adjusted Operating Profit |
$ (77,081) |
$ 98,687 |
$ (91,533) |
$ 112,873 |
||||
Net Profit as Reported |
$ (110,733) |
$ 74,273 |
$ (177,261) |
$ 89,431 |
||||
Add: Fleet Impairment charges |
$ 4,400 |
|||||||
Add: Expected loss (gain) on Embraer assets held for sale |
$ (877) |
|||||||
Add: Net change in fair value of derivatives |
$ 15,663 |
$ 88,532 |
||||||
Adjusted Net Profit |
$ (95,070) |
$ 74,273 |
$ (85,204) |
$ 89,431 |
||||
Reconciliation of Adjusted Basic EPS |
1Q21 |
1Q20 |
4Q20 |
1Q19 |
||||
Adjusted Net Profit |
$ (95,070) |
$ 74,273 |
$ (85,204) |
$ 89,431 |
||||
Shares used for calculation of Basic EPS |
42,571 |
42,501 |
42,511 |
42,478 |
||||
Adjusted Basic Earnings per share (Adjusted Basic EPS) |
$ (2.23) |
$ 1.75 |
$ (2.00) |
$ 2.11 |
||||
Reconciliation of Monthly Cash Consumption for 2020 and 2021 |
1Q21 |
4Q20 |
3Q20 |
2Q20 |
||||
Beginning Cash balance |
$ 1,009 |
$ 1,006 |
$ 1,143 |
$ 1,127 |
||||
Ending Cash balance |
$ 1,203 |
$ 1,009 |
$ 1,006 |
$ 1,143 |
||||
Net cashflows in the quarter |
$ 194 |
$ 4 |
$ (137) |
$ 16 |
||||
Subtract: Proceeds from Convertible Notes Offering |
$ - |
$ - |
$ - |
$ 343 |
||||
Subtract: Net Proceeds from new Aircraft Financing |
$ 241 |
$ - |
$ - |
$ - |
||||
Subtract: Others proceeds (assets sold and other non-op proceeds) |
$ 20 |
$ 23 |
$ 22 |
$ - |
||||
Add: Repayment of short term credit lines |
$ - |
$ - |
$ 50 |
$ 95 |
||||
Cash Consumption excluding extraordinary activities |
$ (68) |
$ (19) |
$ (109) |
$ (232) |
||||
Monthly Cash Consumption excluding extraordinary activities |
$ (23) |
$ (6) |
$ (36) |
$ (77) |
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