cpa-6k_20220210.htm

 

 

UNITED STATES

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 February 2022

 

 

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              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  

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b);82-                 )

 

Enclosure: 4Q21 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: 02/10/2022

 

 

By: 

/s/ José Montero

 

 

Name: José Montero
Title: CFO

 

 

cpa-ex991_14.htm

Exhibit 99.1

 

Copa Holdings Reports Financial Results for the Fourth Quarter and Full-Year 2021

Excluding special items, Adjusted Net Profit for full-year 2021 came in at US$2.7 million, or Adjusted EPS of US$0.06

 

Panama City, Panama --- February 9, 2022.  Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the fourth quarter of 2021 (4Q21) and full year 2021. 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 fourth quarter of 2019 (4Q19) (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$114.4 million for the quarter or US$2.69 per share. Excluding special items, the Company would have reported a net profit of US$84.1 million or US$1.98 per share. Special items include an US$8.9 million unrealized mark-to-market loss related to the Company’s convertible notes and a reversal of US$39.2 million in the Company’s provision related to the return of leased aircraft.

Copa Holdings reported an operating profit of US$155.0 million for the quarter. Excluding the US$39.2 million reversal, the Company would have reported an operating profit of US$115.8 million and a 20.1% operating margin.

For full-year 2021, the Company reported a net profit of US$39.9 million or US$0.94 per share. Excluding special items, which included a reversal of US$39.2 million in the Company’s provision related to the return of leased aircraft, a US$22.8 million unrealized mark-to-market loss related to the Company’s convertible notes, and a passenger revenue adjustment of US$20.8 million corresponding to unredeemed coupons from 2019 and 2020 sales, Copa Holdings would have reported an adjusted net profit of US$2.7 million or US$0.06 per share.

For full-year 2021, the Company reported an operating profit of US$145.7 million. Excluding special items, the Company would have reported an operating profit of US$85.6 million and a 5.8% operating margin.

Capacity for 4Q21, measured in terms of available seat miles (ASMs), was 83.1% of the capacity flown in 4Q19.

Total revenues for 4Q21 came in at US$575.0 million, reaching 84.3% of 4Q19 revenues. Passenger revenues for 4Q21 reached 82.2% of 4Q19 levels, while 4Q21 cargo revenues were 61.2% higher than 4Q19. Passenger yield increased 1.0% to 12.7 cents and load factors decreased 1.8 percentage points to 83.5%, compared to 4Q19. Revenue per Available Seat Mile (RASM) came in at 11.3 cents, or 1.5% higher than 4Q19.

Operating cost per available seat mile (CASM) in 4Q21, excluding special items (adjusted CASM) decreased 3.8% vs. 4Q19 to 9.0 cents. While adjusted CASM, excluding fuel, decreased 7.5% to 6.1 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, was US$84 million for the quarter.

The Company ended the quarter with US$1.5 billion in available liquidity, consisting of approximately US$1.2 billion in cash, short-term and long-term investments, and US$295 million in committed and undrawn credit facilities.

The Company closed the quarter with total debt, including lease liabilities, of US$1.6 billion.

 

 

1

 

 

 


 

 

During the quarter, the Company took delivery of one Boeing 737 MAX 9, completed the conversion of one Boeing 737-800 into a freighter, and decided to retain three Boeing 737-700s previously classified as assets held for sale.

Including 3 Boeing 737-700 aircraft currently in temporary storage and one Boeing 737-800 freighter, Copa Holdings ended the year with a consolidated fleet of 91 aircraft – 68 Boeing 737-800s, 14 Boeing 737 MAX 9s, and 9 Boeing 737-700s, compared to a fleet of 102 aircraft prior to the COVID-19 pandemic.

Copa Airlines had an on-time performance for the quarter of 90.0% and a flight completion factor of 99.54%, once again positioning the airline among the best in the industry.

 

Subsequent Events

In January, Copa Airlines was recognized by Cirium – for the eighth consecutive year – as the most on-time airline in Latin America in 2021. Copa Airlines’ on-time performance of 91.1% for the year was the highest of any carrier in the Americas.

In January, the Company took delivery of one Boeing 737 MAX 9 aircraft, originally scheduled for December 2021.

Due to the recent surge in COVID-19 cases in Panama and Latin America, mainly driven by the Omicron variant, which impacted its crew availability, the Company canceled over 1,000 flights, reducing the 1Q22 published schedule by approximately 4%.


1

 

 

 


 

 

 

Consolidated Financial

& Operating Highlights

4Q21

4Q19 (3)

Variance vs. 4Q19

3Q21

Variance vs. 3Q21

FY21

FY19 (3)

Variance vs. FY19

Revenue Passengers Carried (000s)

2,214

2,633

-15.9%

1,823

21.5%

6,136

10,474

-41.4%

Revenue Passengers OnBoard (000s)

3,369

3,838

-12.2%

2,852

18.1%

9,452

15,424

-38.7%

RPMs (millions)

4,265

5,244

-18.7%

3,485

22.4%

11,734

21,303

-44.9%

ASMs (millions)

5,109

6,149

-16.9%

4,396

16.2%

14,934

25,113

-40.5%

Load Factor

83.5%

85.3%

-1.8 p.p.

79.3%

4.2 p.p.

78.6%

84.8%

-6.3 p.p.

Yield (US$ Cents)

12.7

12.5

1.0%

12.0

5.8%

12.0

12.3

-1.9%

PRASM (US$ Cents)

10.6

10.7

-1.1%

9.5

11.4%

9.5

10.4

-9.1%

RASM (US$ Cents)

11.3

11.1

1.5%

10.1

11.2%

10.1

10.8

-6.2%

CASM (US$ Cents)

8.2

10.8

-23.9%

8.8

-6.4%

9.1

9.4

-2.8%

Adjusted CASM (US$ Cents) (1)

9.0

9.3

-3.8%

8.8

2.4%

9.4

9.0

3.9%

CASM Excl. Fuel (US$ Cents)

5.3

8.0

-33.8%

6.2

-14.7%

6.6

6.6

-0.9%

Adjusted CASM Excl. Fuel (US$ Cents) (1)

6.1

6.6

-7.5%

6.2

-2.4%

6.8

6.3

8.9%

Fuel Gallons Consumed (millions)

61.0

78.9

-22.8%

52.0

17.1%

177.4

321.4

-44.8%

Avg. Price Per Fuel Gallon (US$)

2.43

2.16

12.5%

2.13

13.8%

2.14

2.16

-0.6%

Average Length of Haul (miles)

1,926

1,992

-3.3%

1,912

0.7%

1,912

2,034

-6.0%

Average Stage Length (miles)

1,254

1,279

-2.0%

1,213

3.4%

1,230

1,288

-4.5%

Departures

25,458

32,441

-21.5%

22,559

12.9%

75,755

131,819

-42.5%

Block Hours

80,710

105,620

-23.6%

69,308

16.5%

235,295

431,749

-45.5%

Average Aircraft Utilization (Hours) (2)

11.3

11.3

0.8%

10.7

6.4%

9.2

11.4

-19.7%

Operating Revenues (US$ millions)

575.0

681.9

-15.7%

445.0

29.2%

1509.9

2707.4

-44.2%

Operating Profit (Loss) (US$ millions)

155.0

17.8

770.5%

59.0

162.6%

145.7

346.2

-57.9%

Adjusted Operating Profit (Loss) (US$ millions) (1)

115.8

107.1

8.0%

48.6

138.1%

85.6

435.5

-80.3%

Operating Margin

27.0%

2.6%

24.3 p.p.

13.3%

13.7 p.p.

9.6%

12.8%

-3.1 p.p.

Adjusted Operating Margin (1)

20.1%

15.7%

4.4 p.p.

11.2%

8.9 p.p.

5.8%

16.1%

-10.3 p.p.

Net Profit (Loss) (US$ millions)

114.4

2.7

4092.8%

8.2

1287.5%

39.9

247.0

-83.8%

Adjusted Net Profit (Loss) (US$ millions) (1)

84.1

92.1

-8.7%

29.9

180.8%

2.7

336.3

-99.2%

Basic EPS (US$)

2.69

0.06

4088.2%

0.19

1291.3%

0.94

5.81

-83.8%

Adjusted Basic EPS (US$) (1)

1.98

2.17

-8.8%

0.70

181.6%

0.06

7.92

-99.2%

Shares  for calculation of Basic EPS (000s)

42,533

42,487

0.1%

42,649

-0.3%

42,533

42,487

0.1%

 

(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.


2

 

 

 


 

 

MANAGEMENT’S COMMENTS ON 4Q21 RESULTS

Copa Holdings reported strong financial results for the fourth quarter of 2021. These results reflect an improvement in international travel demand in the region and the Company’s ability to increase capacity, while continuing to operate with low unit costs.

During the fourth quarter, the Company reported a net profit of US$114.4 million and an operating profit of US$155.0 million. Excluding the two special items recorded in the quarter, namely an unrealized mark-to-market loss of US$8.9 million related to the Company’s convertible notes and a reversal of US$39.2 million in the Company’s provision related to the return of leased aircraft, the Company would have reported a net profit of US$84.1 million, an operating profit of US$115.8 million, and an operating margin of 20.1%. These figures compare to an adjusted net profit of US$92.1 million, an adjusted operating profit of US$107.1 million, and an adjusted operating margin of 15.7% in the fourth quarter of 2019.  

Measured in Available Seats Miles (ASMs), the Company operated 83.1% of its 4Q19 capacity during the quarter, compared to 69% of its 3Q19 capacity in 3Q21.

Total revenues for 4Q21 came in at US$575.0 million, reaching 84.3% of 4Q19 revenues. Passenger revenues for 4Q21 reached 82.2% of 4Q19 levels, while 4Q21 cargo revenues were 61.2% higher than 4Q19. Yield increased 1.0% to 12.7 cents and load factors decreased 1.8 percentage points to 83.5%, compared to 4Q19. Revenue per Available Seat Mile (RASM) came in at 11.3 cents, or 1.5% higher than 4Q19.

Adjusted unit cost (adjusted CASM) came in at 9.0 cents, a decrease of 3.8% versus 4Q19. Excluding fuel, adjusted CASM came in at 6.1 cents, a decrease of 7.5% when compared to 4Q19, while operating 16.9% less capacity.

Excluding extraordinary financing activities and asset sales, but including capital expenditures and payment of financial obligations, cash buildup for the fourth quarter was US$84 million. The Company ended the quarter with a cash balance of US$1.2 billion and total liquidity of US$1.5 billion.

Despite the Company’s positive financial results during 4Q21, the first quarter of 2022 has been challenging given the recent surge in COVID-19 cases in the Americas, mainly driven by the Omicron variant. Due to the variant’s impact on the number of available crews, the Company reduced its 1Q22 planned capacity by approximately 4%. Load factors are also expected to come in lower in 1Q22 compared to the previous quarter, as a consequence of the variant’s impact on international travel demand in the region. As has been observed in other regions of the world, the Company currently believes that the impact of Omicron will be temporary and that the recovery of international air travel demand should resume later in the first quarter.

The Company has a proven and very strong business model, which is built on operating the best and most convenient network for intra-Latin America travel from its Hub of the Americas® based on Panama’s advantageous geographic position, with low unit costs, best on-time performance, and strongest balance sheet. Going forward, the Company expects to leverage its strong balance sheet, leading liquidity position, and lower cost base to continue strengthening its long-term competitive position and to implement initiatives to further strengthen its network and product in the post COVID-19 world.

 


3

 

 

 


 

 

OUTLOOK FOR 2022

 

As a result of the uncertainty regarding the COVID-19 pandemic, the Company will provide financial guidance only for the first quarter of 2022 and preliminary capacity and CASM ex-fuel guidance for full-year 2022.

 

Given the impact of the Omicron variant on capacity, load factor, and yields, as well as higher fuel prices, among other factors, the Company expects its operating margin to be within a range of approximately 3% to 6% for 1Q22. The Company expects its capacity in 1Q22 to reach approximately 5.7 billion ASMs or roughly 88% of 1Q19 ASMs.

 

Financial Outlook

4Q21

Guidance

3Q21

Actual

Capacity - % of 2019

~80%

69%

Operating Margin

~12-14%

13%

 

Factored in this outlook, the Company expects total revenues of approximately US$550 million or about 82% of 1Q19 total revenues, unit costs excluding fuel (Ex-Fuel CASM) of approximately 6.0 cents, and an all-in fuel price per gallon of $2.79, an increase of 15% quarter-over-quarter as compared to 4Q21.

 

For full-year 2022, assuming that recovery will resume by the end of the first quarter, the Company expects to operate approximately 93% of 2019 ASMs and deliver a CASM ex-fuel of approximately 5.9 cents.

CONSOLIDATED FOURTH-QUARTER RESULTS

Operating revenue

Consolidated revenue for 4Q21 totaled US$575.0 million, mainly driven by passenger revenue.

 

Passenger revenue totaled US$540.6 million, a 17.8% decrease compared to the same period in 2019, on 16.9% less capacity. The fourth-quarter results are mostly comprised of flown passenger ticket revenue, passenger-related ancillary revenue, and unredeemed tickets revenue.

 

Cargo and mail revenue totaled US$25.8 million, a 61.2% increase compared to the same period in 2019, related to more cargo volume and higher yields.

  

Other operating revenue totaled US$8.6 million, mainly revenues from non-air ConnectMiles partners.

 

Operating expenses

 

Fuel totaled US$149.1 million, a decrease of 13.0% compared to the same period in 2019, on 22.8% fewer gallons consumed and a 12.5% higher effective fuel price.

 

Wages, salaries, benefits, and other employee expenses totaled US$80.4 million, representing a 30.1% decrease compared to the same period in 2019, mainly driven by a reduced headcount.

 

Passenger servicing totaled US$12.2 million, a decrease of 50.8% compared to the same period in 2019, as a result of 12.2% fewer passengers and a simplified onboard product offering due to temporary COVID-19 biosafety protocols.

 

Airport facilities and handling charges totaled US$42.9 million, a decrease of 4.5% compared to the same period in 2019, related to fewer departures, partially offset by higher airport fees in the US.

 

Sales and distribution totaled US$43.7 million, representing a decrease of 17.9% compared to the same period in 2019, due to lower sales in the quarter compared to 4Q19.

 

Maintenance, materials, and repairs had a US$51.0 million decrease when compared to 4Q19, due to a reversal of US$39.2 million in the Company’s provision related to the return of leased aircraft. Excluding the

4

 

 

 


 

US$39.2 million reversal, maintenance, materials and repairs would have decreased 31.3% when compared to 4Q19, mainly due to fewer flight hours.

 

Depreciation and amortization totaled US$59.8 million, mostly comprised of owned and leased flight equipment, maintenance events, and IT systems amortizations, a decrease of 15.1% compared to 4Q19, mainly due to a reduction in fleet size.

 

Flight operations mostly related to overflight fees, totaled US$19.2 million, a decrease of 23.0% compared to the same period in 2019, driven by 21.5% fewer departures.

 

Other operating and administrative expenses totaled US$26.1 million, a decrease of 19.8% versus 4Q19 driven mainly by lower overhead and IT expenses.

 

Non-operating Income (Expense)

 

Consolidated non-operating income (expense) resulted in a net expense of (US$29.0) million.

 

Finance cost totaled (US$19.0) million, mostly comprised of convertible notes interest expenses of US$9.9 million, US$6.0 million related to loan interest and commission expenses, and US$1.2 million in interest charges related to operating leases.

 

Finance income totaled US$2.6 million in proceeds from investments.

 

Gain (loss) on foreign currency fluctuations totaled (US$2.5) million, mainly driven by the devaluation of the Brazilian real and the Colombian peso.

 

Net change in fair value of derivatives totaled a net (US$8.9) million unrealized mark-to-market loss related to the Company’s convertible notes.

 

Other non-operating income (expense) totaled (US$1.2) million.


5

 

 

 


 

 

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 several 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

 

 

%

 

Unaudited

 

 

Audited

 

 

%

 

 

 

4Q21

 

 

4Q19

 

 

Change

 

3Q21

 

 

Change

 

FY21

 

 

FY19

 

 

Change

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Passenger revenue

 

 

540,571

 

 

 

657,940

 

 

 

-17.8

%

 

417,466

 

 

 

29.5

%

 

1,412,390

 

 

 

2,612,605

 

 

 

-45.9

%

Cargo and mail revenue

 

 

25,849

 

 

 

16,033

 

 

 

61.2

%

 

21,082

 

 

 

22.6

%

 

71,577

 

 

 

62,460

 

 

 

14.6

%

Other operating revenue

 

 

8,575

 

 

 

7,955

 

 

 

7.8

%

 

6,451

 

 

 

32.9

%

 

25,964

 

 

 

32,343

 

 

 

-19.7

%

Total Operating Revenue

 

 

574,995

 

 

 

681,927

 

 

 

-15.7

%

 

444,999

 

 

 

29.2

%

 

1,509,930

 

 

 

2,707,409

 

 

 

-44.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel

 

 

149,057

 

 

 

171,314

 

 

 

-13.0

%

 

112,658

 

 

 

32.3

%

 

383,179

 

 

 

696,249

 

 

 

-45.0

%

Wages, salaries, benefits and other employees' expenses

 

 

80,434

 

 

 

115,036

 

 

 

-30.1

%

 

68,049

 

 

 

18.2

%

 

258,128

 

 

 

450,438

 

 

 

-42.7

%

Passenger servicing

 

 

12,204

 

 

 

24,798

 

 

 

-50.8

%

 

10,576

 

 

 

15.4

%

 

35,869

 

 

 

102,103

 

 

 

-64.9

%

Airport facilities and handling charges

 

 

42,863

 

 

 

44,877

 

 

 

-4.5

%

 

39,407

 

 

 

8.8

%

 

131,335

 

 

 

181,959

 

 

 

-27.8

%

Sales and distribution

 

 

43,706

 

 

 

53,222

 

 

 

-17.9

%

 

36,077

 

 

 

21.1

%

 

129,877

 

 

 

210,623

 

 

 

-38.3

%

Maintenance, materials and repairs

 

 

(13,317

)

 

 

37,648

 

 

 

-135.4

%

 

24,008

 

 

 

-155.5

%

 

48,191

 

 

 

127,562

 

 

 

-62.2

%

Depreciation and amortization

 

 

59,828

 

 

 

70,478

 

 

 

-15.1

%

 

55,702

 

 

 

7.4

%

 

234,505

 

 

 

282,080

 

 

 

-16.9

%

Flight operations

 

 

19,173

 

 

 

24,908

 

 

 

-23.0

%

 

16,291

 

 

 

17.7

%

 

55,766

 

 

 

102,806

 

 

 

-45.8

%

Other operating and administrative expenses

 

 

26,057

 

 

 

32,506

 

 

 

-19.8

%

 

23,222

 

 

 

12.2

%

 

87,426

 

 

 

118,090

 

 

 

-26.0

%

Fleet Impairment

 

 

-

 

 

 

89,334

 

 

 

-100.0

%

 

-

 

 

 

0.0

%

 

-

 

 

 

89,344

 

 

 

-100.0

%

Total Operating Expense

 

 

420,005

 

 

 

664,123

 

 

 

-36.8

%

 

385,989

 

 

 

8.8

%

 

1,364,276

 

 

 

2,361,255

 

 

 

-42.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit (Loss)

 

 

154,989

 

 

 

17,804

 

 

 

770.5

%

 

59,010

 

 

 

162.6

%

 

145,655

 

 

 

346,154

 

 

 

-57.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance cost

 

 

(18,994

)

 

 

(17,154

)

 

 

10.7

%

 

(18,615

)

 

 

2.0

%

 

(74,051

)

 

 

(57,432

)

 

 

28.9

%

Finance income

 

 

2,571

 

 

 

6,289

 

 

 

-59.1

%

 

2,679

 

 

 

-4.0

%

 

10,849

 

 

 

24,405

 

 

 

-55.5

%

Gain (loss) on foreign currency fluctuations

 

 

(2,508

)

 

 

2,406

 

 

 

-204.3

%

 

(2,620

)

 

 

-4.3

%

 

(6,174

)

 

 

(15,408

)

 

 

-59.9

%

Net change in fair value of derivatives

 

 

(8,922

)

 

 

-

 

 

 

-100.0

%

 

(32,092

)

 

 

-72.2

%

 

(22,778

)

 

 

-

 

 

 

 

 

Other non-operating income (expense)

 

 

(1,158

)

 

 

(989

)

 

 

17.1

%

 

(1,573

)

 

 

-26.4

%

 

(3,291

)

 

 

(4,279

)

 

 

-23.1

%

Total Non-Operating Income/(Expense)

 

 

(29,011

)

 

 

(9,448

)

 

 

207.1

%

 

(52,220

)

 

 

-44.4

%

 

(95,445

)

 

 

(52,715

)

 

 

81.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit (Loss) before taxes

 

 

125,978

 

 

 

8,356

 

 

 

1407.6

%

 

6,790

 

 

 

1755.4

%

 

50,209

 

 

 

293,439

 

 

 

-82.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(11,616

)

 

 

(5,629

)

 

 

106.4

%

 

1,453

 

 

 

-899.7

%

 

10,265

 

 

 

46,437

 

 

 

-77.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit (Loss)

 

 

114,363

 

 

 

2,728

 

 

 

4092.8

%

 

8,242

 

 

 

1287.5

%

 

39,945

 

 

 

247,002

 

 

 

-83.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2.69

 

 

 

0.06

 

 

 

4088.2

%

 

0.19

 

 

 

1291.3

%

 

0.94

 

 

 

5.81

 

 

 

-83.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

42,533,036

 

 

 

42,486,717

 

 

 

 

 

 

42,649,175

 

 

 

 

 

 

42,533,036

 

 

 

42,486,717

 

 

 

 

 

 

 


7

 

 

 


 

 

Copa Holdings, S. A. and subsidiaries

Consolidated statement of financial position

(US$ Thousands)

 

 

December 2021

 

December 2020

 

ASSETS

(Unaudited)

 

(Audited)

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

211,081

 

 

119,065

 

Short-term investments

 

806,340

 

 

770,816

 

Total cash, cash equivalents and short-term investments

 

1,017,421

 

 

889,881

 

 

 

-

 

 

-

 

Accounts receivable, net

 

90,618

 

 

63,206

 

Accounts receivable from related parties

 

1,832

 

 

1,429

 

Expendable parts and supplies, net

 

74,778

 

 

74,319

 

Prepaid expenses

 

31,148

 

 

30,473

 

Prepaid income tax

 

882

 

 

16,716

 

Other current assets

 

6,054

 

 

7,805

 

 

 

205,312

 

 

193,948

 

Asset held for sale

 

-

 

 

135,542

 

TOTAL CURRENT ASSETS

 

1,222,733

 

 

1,219,371

 

 

 

 

 

 

 

 

Long-term investments

 

199,670

 

 

119,617

 

Long-term accounts receivable

 

(0

)

 

1,054

 

Long-term prepaid expenses

 

22,783

 

 

6,066

 

Property and equipment, net

 

2,512,704

 

 

2,147,486

 

Right of use assets

 

166,328

 

 

214,279

 

Intangible, net

 

81,749

 

 

95,568

 

Deferred tax assets

 

28,417

 

 

35,595

 

Other Non-Current Assets

 

14,098

 

 

14,348

 

TOTAL NON-CURRENT ASSETS

 

3,025,749

 

 

2,634,013

 

 

 

-

 

 

-

 

TOTAL ASSETS

 

4,248,482

 

 

3,853,385

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Loans and borrowings

 

196,602

 

 

127,946

 

Current portion of lease liability

 

73,917

 

 

83,605

 

Accounts payable

 

112,596

 

 

63,461

 

Accounts payable to related parties

 

7,948

 

 

2,970

 

Air traffic liability

 

557,331

 

 

470,695

 

Frequent flyer deferred revenue

 

95,114

 

 

91,213

 

Taxes Payable

 

32,599

 

 

13,400

 

Employee benefits obligations

 

32,767

 

 

33,995

 

Income tax payable

 

3,835

 

 

1,023

 

Other Current Liabilities

 

785

 

 

252

 

TOTAL CURRENT LIABILITIES

 

1,113,493

 

 

888,560

 

 

 

 

 

 

 

 

Loans and borrowings long-term

 

1,229,031

 

 

1,035,954

 

Lease Liability

 

104,734

 

 

146,905

 

Net Defined Benefit Liability

 

7,670

 

 

14,332

 

Derivative financial instruments

 

268,338

 

 

245,560

 

Deferred tax Liabilities

 

18,782

 

 

22,190

 

Other long - term liabilities

 

210,933

 

 

216,325

 

 

 

 

 

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

1,839,487

 

 

1,681,265

 

TOTAL LIABILITIES

 

2,952,981

 

 

2,569,824

 

 

 

-

 

 

-

 

EQUITY

 

-

 

 

-

 

Issued Capital

 

-

 

 

-

 

Class A - 33,998,654  issued and 30,995,120 outstanding

 

21,290

 

 

21,199

 

Class B - 10,938,125

 

7,466

 

 

7,466

 

Additional Paid-In Capital

 

98,348

 

 

91,341

 

Treasury Stock

 

(176,902

)

 

(136,388

)

Retained Earnings

 

1,324,025

 

 

1,931,086

 

Net profit (loss)

 

39,945

 

 

(607,062

)

Other comprehensive income (loss)

 

(18,670

)

 

(24,082

)

 

 

-

 

 

-

 

TOTAL EQUITY

 

1,295,501

 

 

1,283,561

 

TOTAL EQUITY LIABILITIES

 

4,248,482

 

 

3,853,385

 


8

 

 

 


 

 

Copa Holdings, S. A. and subsidiaries

Consolidated Statement of Cash Flows

For the twelve months ended December 31,

(In US$ thousands)

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

(Audited)

 

 

(Audited)

 

Cash flow from (used in) operating activities

 

 

462,612

 

 

 

(39,515

)

 

 

740,776

 

Cash flow used in investing activities

 

 

(373,040

)

 

 

(93,761

)

 

 

(192,868

)

Cash flow from (used in) financing activities

 

 

2,444

 

 

 

93,609

 

 

 

(545,334

)

Net increase (decrease) in cash and cash equivalents

 

 

92,016

 

 

 

(39,667

)

 

 

2,574

 

Cash and cash equivalents at January 1

 

 

119,065

 

 

 

158,732

 

 

 

156,158

 

Cash and cash equivalents at December 31

 

$

211,081

 

 

$

119,065

 

 

$

158,732

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

 

806,340

 

 

 

770,816

 

 

 

692,403

 

Long-term investments

 

 

199,670

 

 

 

119,617

 

 

 

134,347

 

Total cash and cash equivalents and investments at December 31

 

$

1,217,091

 

 

$

1,009,498

 

 

$

985,482

 

 


9

 

 

 


 

 

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

 

4Q21

 

 

4Q20

 

 

3Q21

 

 

4Q19

 

 

FY21

 

 

FY19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit as Reported

 

$

154,989

 

 

$

(95,057

)

 

$

59,010

 

 

$

17,804

 

 

$

145,655

 

 

$

346,171

 

   Subtract: Unredeemed Ticket Revenue provision reversal

 

 

 

 

 

 

 

 

 

$

10,395

 

 

 

 

 

 

$

20,790

 

 

 

 

 

   Subtract: Leased Aircraft Return provision

 

$

39,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

39,217

 

 

 

 

 

   Add: Fleet Impairment loss

 

 

 

 

 

$

4,400

 

 

 

 

 

 

$

89,344

 

 

 

 

 

 

$

89,344

 

   Add: Expected loss (gain) on Embraer assets held for sale

 

 

 

 

 

$

(877

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Profit

 

$

115,773

 

 

$

(91,533

)

 

$

48,615

 

 

$

107,148

 

 

$

85,648

 

 

$

435,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit as Reported

 

$

114,363

 

 

$

(168,805

)

 

$