cpa-6k_20221117.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 November 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    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: 3Q22 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: 11/17/2022

 

 

By: 

/s/ José Montero

 

 

Name: José Montero
Title: CFO

 

 

 

cpa-ex991_6.htm

Exhibit 99.1

 

Copa Holdings Reports Financial Results for the Third Quarter of 2022

 

Panama City, Panama --- November 16, 2022.  Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the third quarter of 2022 (3Q22). 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 third quarter of 2019 (3Q19) (which the Company believes are more relevant than year-over-year comparisons due to the significant impact of the COVID-19 pandemic in 2020 and 2021).

 

OPERATING AND FINANCIAL HIGHLIGHTS

Copa Holdings reported a net profit of US$115.9 million for the quarter or US$2.93 per share, as compared to a net profit of US$104.0 million or earnings per share of US$2.45 in 3Q19. Excluding special items, comprised of an unrealized mark-to-market net gain of US$0.9 million related to the Company’s convertible notes as well as changes in the value of financial investments, the Company would have reported a net profit of US$115.1 million or US$2.91 per share.

Copa Holdings reported an operating profit of US$143.7 million for the quarter and a 17.8% operating margin, compared to an operating profit of US$132.9 million and an operating margin of 18.8% in 3Q19.

Total revenues for 3Q22 increased 14.3% to US$809.4 million, as compared to 3Q19 revenues. Yields increased 12.1% to 14.1 cents and revenue per available seat mile (RASM) increased 15.0% to 12.8 cents.

Operating cost per available seat mile (CASM) increased 16.4% from 9.0 cents in 3Q19 to 10.5 cents in 3Q22, driven by higher fuel prices. CASM excluding fuel (Ex-fuel CASM) decreased 5.3% in the quarter to 5.9 cents, as compared to 3Q19.

Passenger traffic, measured in terms of revenue passenger mile (RPMs), increased by 0.8% compared to 3Q19, while capacity (ASMs) decreased by 0.6%. As a result, load factors for the quarter increased by 1.2 percentage points to 86.8%.  

During the quarter, the Company started operations in one new route — Felipe Angeles International Airport in Mexico City.

The Company ended the quarter with approximately US$1.1 billion in cash, short-term and long-term investments, which represents 42% of the last twelve months’ revenues.

The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion.

During the quarter, the Company took delivery of one Boeing 737 MAX 9 aircraft, ending the quarter with a consolidated fleet of 95 aircraft – 67 Boeing 737-800s, 18 Boeing 737 MAX 9s, 9 Boeing 737-700s, and     1 Boeing 737-800 freighter, compared to a fleet of 102 aircraft prior to the COVID-19 pandemic.

Copa Airlines had an on-time performance for the quarter of 86.6% and a flight completion factor of 99.5%.

 

Subsequent Events

In October, the Company took delivery of one Boeing 737 MAX 9 and expects to receive one additional aircraft in November, to end the year with a total fleet of 97 aircraft.

In October, Copa Airlines was recognized by Skytrax – for the seventh consecutive year – as the “Best Airline in Central America and the Caribbean” and as the “Best Airline Staff in Central America and the Caribbean.”

 

 

 

 


 

 

Consolidated Financial

& Operating Highlights

3Q22

 

3Q19 (3)

 

Variance vs. 3Q19

 

2Q22

 

Variance vs. 2Q22

 

Revenue Passengers Carried (000s)

 

2,755

 

 

2,703

 

 

1.9

%

 

2,481

 

 

11.1

%

Revenue Passengers OnBoard (000s)

 

4,190

 

 

3,946

 

 

6.2

%

 

3,796

 

 

10.4

%

RPMs (millions)

 

5,508

 

 

5,466

 

 

0.8

%

 

5,047

 

 

9.1

%

ASMs (millions)

 

6,344

 

 

6,383

 

 

-0.6

%

 

5,955

 

 

6.5

%

Load Factor

 

86.8

%

 

85.6

%

 

1.2 p.p.

 

 

84.8

%

 

2.1 p.p.

 

Yield (US$ Cents)

 

14.1

 

 

12.5

 

 

12.1

%

 

13.0

 

 

8.0

%

PRASM (US$ Cents)

 

12.2

 

 

10.7

 

 

13.7

%

 

11.0

 

 

10.6

%

RASM (US$ Cents)

 

12.8

 

 

11.1

 

 

15.0

%

 

11.6

 

 

9.6

%

CASM (US$ Cents)

 

10.5

 

 

9.0

 

 

16.4

%

 

10.9

 

 

-4.0

%

CASM Excl. Fuel (US$ Cents)

 

5.9

 

 

6.2

 

 

-5.3

%

 

6.0

 

 

-1.1

%

Fuel Gallons Consumed (millions)

 

75.7

 

 

82.0

 

 

-7.7

%

 

71.5

 

 

5.9

%

Avg. Price Per Fuel Gallon (US$)

 

3.81

 

 

2.16

 

 

76.6

%

 

4.14

 

 

-8.0

%

Average Length of Haul (miles)

 

1,999

 

 

2,022

 

 

-1.1

%

 

2,034

 

 

-1.7

%

Average Stage Length (miles)

 

1,265

 

 

1,295

 

 

-2.3

%

 

1,273

 

 

-0.7

%

Departures

 

31,484

 

 

33,373

 

 

-5.7

%

 

29,369

 

 

7.2

%

Block Hours

 

102,027

 

 

109,614

 

 

-6.9

%

 

95,315

 

 

7.0

%

Average Aircraft Utilization (hours) (2)

 

11.8

 

 

11.5

 

 

3.0

%

 

11.5

 

 

2.9

%

Operating Revenues (US$ millions)

 

809.4

 

 

708.2

 

 

14.3

%

 

693.4

 

 

16.7

%

Operating Profit (Loss) (US$ millions)

 

143.7

 

 

132.9

 

 

8.1

%

 

42.3

 

 

240.0

%

Operating Margin

 

17.8

%

 

18.8

%

 

-1.0 p.p.

 

 

6.1

%

 

11.7 p.p.

 

Net Profit (Loss) (US$ millions)

 

115.9

 

 

104.0

 

 

11.5

%

 

124.1

 

 

-6.6

%

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

 

115.1

 

 

104.0

 

 

10.7

%

 

13.2

 

 

773.8

%

Basic EPS (US$)

 

2.93

 

 

2.45

 

 

19.7

%

 

3.01

 

 

-2.7

%

Adjusted Basic EPS (US$) (1)

 

2.91

 

 

2.45

 

 

18.8

%

 

0.32

 

 

809.6

%

Shares  for calculation of Basic EPS (000s)

 

39,589

 

 

42,487

 

 

-6.8

%

 

41,212

 

 

-3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

(3)

The Company believes that comparisons with 2019 are more relevant than year-over-year comparisons due to the significant impacts in 2020 and 2021 of the COVID-19 pandemic.

 


2

 

 

 


 

MANAGEMENT’S COMMENTS ON 3Q22 RESULTS

Despite the notable impact that higher jet fuel prices had on the Company’s operating costs, Copa Holdings delivered strong financial results for the third quarter. The fuel cost increase was offset by higher revenues and a lower ex-fuel CASM.

 

During the third quarter, the Company reported a net profit of US$115.9 million or US$2.93 per share. Excluding special items, comprised of an unrealized mark-to-market gain of US$1.6 million related to the Company’s convertible notes as well as an unrealized mark-to-market loss of US$0.7 million related to changes in the value of financial investments, the Company would have reported a net profit of US$115.1 million or US$2.91 per share.

Copa Holdings reported an operating profit of US$143.7 million, and an operating margin of 17.8% for the quarter, compared to an operating profit of US$132.9 million and an operating margin of 18.8% in 3Q19.

Capacity (ASMs) for 3Q22 decreased by 0.6% compared to 3Q19, while passenger traffic, measured in terms of revenue passenger mile (RPMs), increased by 0.8%. As a result, load factors for the quarter increased by 1.2 percentage points to 86.8%.  

Total revenues for 3Q22 increased 14.3% to US$809.4 million, as compared to 3Q19. Passenger revenue for 3Q22 came in 13.0% higher than 3Q19, while cargo revenue was 80.2% higher. Yields increased 12.1% to 14.1 cents and revenue per available seat mile (RASM) increased 15.0% to 12.8 cents.

Unit cost (CASM) came in at 10.5 cents, an increase of 16.4% compared to 3Q19, driven by higher fuel costs. Excluding fuel, CASM came in at 5.9 cents, a 5.3% decrease when compared to 3Q19.

After the losses related to the Covid pandemic, we have seen a steady improvement in our financial results. Excluding special items, comprised of an unrealized mark-to-market net gain of US$102 million related to the Company’s convertible notes as well as changes in the value of financial investments, year-to-date the Company would have reported a net profit of US$157.7 million, compared to the US$244.3 million realized YTD 2019.

YTD Q3 Adjusted Results Progression 2019-2022

(USD Millions)

2019

2020

2021

2022

Q1-Q3 Adjusted Net Income (Loss)*

244.3

(411.0)

(40.5)

157.7

 

* - Only excluding mark-to-market effect of financial instruments

The Company ended the quarter with a cash balance of US$1.1 billion, which represents 42% of the last twelve months’ revenues.

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, low unit costs, best on-time performance, and a strong 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 by implementing initiatives that will further reinforce its network, product, and cost competitiveness.

 


3

 

 

 


 

OUTLOOK FOR 4Q22 AND 2023

 

As a result of the current volatility in the economic environment, the Company will provide financial guidance only for the fourth quarter of 2022 and preliminary capacity guidance for 2023.

 

Mainly driven by a quarter-over-quarter increase in unit revenues, the Company expects an operating margin of approximately 22% for 4Q22, or 4 percentage points higher than 3Q22. The Company expects capacity in 4Q22 to reach approximately 6.5 billion ASMs or a 6% increase as compared to 4Q19 ASMs.

 

Financial Outlook

4Q22
Guidance

3Q22

Capacity (vs. 2019)

~6%

-0.6%

Operating Margin

~22%

17.8%

 

Factored into this outlook is a load factor of approximately 88%, Unit Revenues (RASM) of approximately 13.7 cents, unit costs excluding fuel (Ex-Fuel CASM) of approximately 6.0 cents, and an all-in fuel price of US$3.75 per gallon.

 

For the full year 2023, the Company expects to increase its capacity by approximately 15% versus 2022.

 

CONSOLIDATED THIRD-QUARTER RESULTS

Operating revenue

Consolidated revenue for 3Q22 totaled US$809.4 million, mainly driven by passenger revenue.

 

Passenger revenue totaled US$774.2 million, a 13.0% increase compared to the same period in 2019, mostly driven by 12.1% higher yields. The third-quarter results are mostly comprised of flown passenger ticket revenue, passenger-related ancillary revenue, and unredeemed ticket revenue.

 

Cargo and mail revenue totaled US$26.4 million, an 80.2% increase compared to the same period in 2019, related to higher cargo volumes and yields.

  

Other operating revenue totaled US$8.8 million, mainly revenues from non-air ConnectMiles partners.

 

Operating expenses

 

Fuel totaled US$291.5 million, an increase of 64.1% compared to the same period in 2019 with 7.7% fewer gallons consumed and a 76.6% higher effective fuel price.

 

Wages, salaries, benefits, and other employee expenses totaled US$96.6 million, representing a 14.8% decrease compared to the same period in 2019, mainly driven by a reduced headcount.

 

Passenger servicing totaled US$18.9 million, a decrease of 27.9% compared to the same period in 2019, because of a simplified onboard product offering.

 

Airport facilities and handling charges totaled US$49.8 million, an increase of 5.9% compared to the same period in 2019, mostly related to higher airport costs, mainly in the US.

 

Sales and distribution totaled US$60.7 million, an increase of 14.6% compared to the same period in 2019, due to higher sales compared to 3Q19.

4

 

 

 


 

Maintenance, materials, and repairs totaled US$23.6 million, a decrease of 23.0% compared to the same period in 2019, due to a reversal of US$7.2 million in the Company’s provision related to the return of leased aircraft. Excluding the US$7.2 million reversal, maintenance, materials, and repairs would have increased by 0.5% when compared to 3Q19, mainly due to more component repairs.

 

Depreciation and amortization totaled US$68.8 million, mostly comprised of owned and leased flight equipment, maintenance events and IT systems amortizations, a decrease of 5.6% compared to 3Q19, mainly due to lower aircraft lease rates.

 

Flight operations mostly related to overflight fees, totaled US$25.5 million, a decrease of 4.1% compared to the same period in 2019, driven by 5.7% fewer departures, partially offset by an increase in overflight fees due to fleet and route mix.

 

Other operating and administrative expenses totaled US$30.4 million, an increase of 8.3% versus 3Q19, mostly related to a higher quantity of leased spare engines.

 

Non-operating Income (Expense)

 

Consolidated non-operating income (expense) totaled (US$15.5) million.

 

Finance cost totaled (US$22.5) million, mostly comprised of convertible notes interest expenses of US$10.7 million, US$7.8 million related to loan interest and commission expenses, and US$1.2 million in interest charges related to operating leases.

 

Finance income totaled US$4.5 million in proceeds from investments.

 

Gain (loss) on foreign currency fluctuations totaled (US$3.3) million, mainly driven by the devaluation of the Brazilian real and the Colombian peso.

 

Net change in fair value of derivatives totaled a US$1.6 million unrealized mark-to-market gain related to the Company’s convertible notes.

 

Other non-operating income (expense) totaled US$4.2 million mostly due to the sale of two 737-700 airframes previously leased to a third party, partially offset by an unrealized mark-to-market loss of US$0.7 million related to changes in the value of financial investments.


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

 

 

%

 

 

 

3Q22

 

 

3Q19

 

 

Change

 

2Q22

 

 

Change

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Passenger revenue

 

 

774,230

 

 

 

685,337

 

 

 

13.0

%

 

656,943

 

 

 

17.9

%

Cargo and mail revenue

 

 

26,400

 

 

 

14,647

 

 

 

80.2

%

 

26,734

 

 

 

-1.2

%

Other operating revenue

 

 

8,815

 

 

 

8,226

 

 

 

7.2

%

 

9,718

 

 

 

-9.3

%

Total Operating Revenue

 

 

809,445

 

 

 

708,210

 

 

 

14.3

%

 

693,394

 

 

 

16.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel

 

 

291,528

 

 

 

177,603

 

 

 

64.1

%

 

295,952

 

 

 

-1.5

%

Wages, salaries, benefits and other employees' expenses

 

 

96,612

 

 

 

113,398

 

 

 

-14.8

%

 

88,995

 

 

 

8.6

%

Passenger servicing

 

 

18,881

 

 

 

26,204

 

 

 

-27.9

%

 

16,074

 

 

 

17.5

%

Airport facilities and handling charges

 

 

49,783

 

 

 

47,022

 

 

 

5.9

%

 

47,280

 

 

 

5.3

%

Sales and distribution

 

 

60,712

 

 

 

52,980

 

 

 

14.6

%

 

56,222

 

 

 

8.0

%

Maintenance, materials and repairs

 

 

23,577

 

 

 

30,632

 

 

 

-23.0

%

 

28,311

 

 

 

-16.7

%

Depreciation and amortization

 

 

68,813

 

 

 

72,876

 

 

 

-5.6

%

 

65,337

 

 

 

5.3

%

Flight operations

 

 

25,483

 

 

 

26,572

 

 

 

-4.1

%

 

24,068

 

 

 

5.9

%

Other operating and administrative expenses

 

 

30,363

 

 

 

28,047

 

 

 

8.3

%

 

28,894

 

 

 

5.1

%

Total Operating Expense

 

 

665,752

 

 

 

575,334

 

 

 

15.7

%

 

651,133

 

 

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit/(Loss)

 

 

143,692

 

 

 

132,876

 

 

 

8.1

%

 

42,261

 

 

 

240.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance cost

 

 

(22,528

)

 

 

(12,696

)

 

 

77.4

%

 

(21,270

)

 

 

5.9

%

Finance income

 

 

4,546

 

 

 

6,121

 

 

 

-25.7

%

 

3,526

 

 

 

28.9

%

Gain (loss) on foreign currency fluctuations

 

 

(3,335

)

 

 

(9,641

)

 

 

-65.4

%

 

(6,834

)

 

 

-51.2

%

Net change in fair value of derivatives

 

 

1,575

 

 

 

-

 

 

 

-100.0

%

 

113,670

 

 

 

-98.6

%

Other non-operating income (expense)

 

 

4,230

 

 

 

(350

)

 

 

-1307.8

%

 

(2,717

)

 

 

-255.7

%

Total Non-Operating Income/(Expense)

 

 

(15,513

)

 

 

(16,567

)

 

 

-6.4

%

 

86,375

 

 

 

-118.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before taxes

 

 

128,179

 

 

 

116,309

 

 

 

10.2

%

 

128,636

 

 

 

-0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(12,241

)

 

 

(12,332

)

 

 

-0.7

%

 

(4,560

)

 

 

168.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit/(Loss)

 

 

115,939

 

 

 

103,978

 

 

 

11.5

%

 

124,076

 

 

 

-6.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2.93

 

 

 

2.45

 

 

 

19.7

%

 

3.01

 

 

 

-2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

39,588,984

 

 

 

42,487,355

 

 

 

-6.8

%

 

41,211,540

 

 

 

-3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


7

 

 

 


 

Copa Holdings, S. A. and subsidiaries

 

 

 

 

 

 

Consolidated statement of financial position

 

 

 

 

 

 

(US$ Thousands)

 

 

 

 

 

 

 

September 2022

 

December 2021

 

ASSETS

(Unaudited)

 

 

 

 

Cash and cash equivalents

 

198,744

 

 

211,081

 

Short-term investments

 

752,812

 

 

806,340

 

Total cash, cash equivalents and short-term investments

 

951,557

 

 

1,017,421

 

 

 

 

 

 

-

 

Accounts receivable, net

 

155,571

 

 

90,618

 

Accounts receivable from related parties

 

2,159

 

 

1,832

 

Expendable parts and supplies, net

 

91,986

 

 

74,778

 

Prepaid expenses

 

45,418

 

 

31,148

 

Prepaid income tax

 

19,573

 

 

16,938

 

Other current assets

 

9,533

 

 

6,054

 

 

 

324,240

 

 

221,368

 

TOTAL CURRENT ASSETS

 

1,275,797

 

 

1,238,789

 

 

 

 

 

 

 

 

Long-term investments

 

168,114

 

 

199,670

 

Long-term prepaid expenses

 

11,987

 

 

6,727

 

Property and equipment, net

 

2,855,422

 

 

2,512,704

 

Right of use assets

 

186,887

 

 

166,328

 

Intangible, net

 

77,061

 

 

81,749

 

Deferred tax assets

 

30,941

 

 

28,196

 

Other Non-Current Assets

 

16,319

 

 

14,098

 

TOTAL NON-CURRENT ASSETS

 

3,346,731

 

 

3,009,472

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

4,622,529

 

 

4,248,261

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Loans and borrowings

 

199,437

 

 

196,602

 

Current portion of lease liability

 

77,418

 

 

73,917

 

Accounts payable

 

148,469

 

 

112,596

 

Accounts payable to related parties

 

10,667

 

 

7,948

 

Air traffic liability

 

736,581

 

 

557,331

 

Frequent flyer deferred revenue

 

105,914

 

 

95,114

 

Taxes Payable

 

46,124

 

 

32,600

 

Employee benefits obligations

 

34,883

 

 

32,767

 

Income tax payable

 

14,569

 

 

3,835

 

Other Current Liabilities

 

819

 

 

786

 

TOTAL CURRENT LIABILITIES

 

1,374,881

 

 

1,113,496

 

 

 

 

 

 

 

 

Loans and borrowings long-term

 

1,323,182

 

 

1,229,031

 

Lease Liability

 

117,213

 

 

104,734

 

Net Defined Benefit Liability

 

7,043

 

 

7,670

 

Derivative financial instruments

 

159,845

 

 

268,338

 

Deferred tax Liabilities

 

23,853

 

 

18,782

 

Other long - term liabilities

 

220,941

 

 

206,813

 

TOTAL NON-CURRENT LIABILITIES

 

1,852,077

 

 

1,835,368

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

3,226,958

 

 

2,948,864

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

-

 

Class A - 34,033,575  issued and 28,477,704 outstanding

 

21,327

 

 

21,289

 

Class B - 10,938,125

 

7,466

 

 

7,466

 

Additional Paid-In Capital

 

102,208

 

 

98,348

 

Treasury Stock

 

(344,541

)

 

(176,902

)

Retained Earnings

 

1,367,868

 

 

1,324,022

 

Net profit

 

259,773

 

 

43,844

 

Other comprehensive loss

 

(18,531

)

 

(18,670

)

 

 

 

 

 

 

 

TOTAL EQUITY

 

1,395,570

 

 

1,299,397

 

TOTAL EQUITY LIABILITIES

 

4,622,529

 

 

4,248,261

 

8

 

 

 


 

 

 

Copa Holdings, S. A. and subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended September 30,

 

 

 

 

 

 

 

 

 

 

 

 

(In US$ thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

2020

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Cash flow from (used in) operating activities

 

 

543,471

 

 

 

263,252

 

 

 

(75,298

)

Cash flow used in investing activities

 

 

(387,334

)

 

 

(140,844

)

 

 

(2,333

)

Cash flow (used in) from financing activities

 

 

(168,474

)

 

 

48,758

 

 

 

141,162

 

Net (decrease) increase in cash and cash equivalents

 

 

(12,337

)

 

 

171,166

 

 

 

63,531

 

Cash and cash equivalents at January 1

 

 

211,081

 

 

 

119,065

 

 

 

158,732

 

Cash and cash equivalents at September 30

 

$

198,744

 

 

$

290,231

 

 

$

222,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

 

752,812

 

 

 

901,645

 

 

 

644,137

 

Long-term investments

 

 

168,114

 

 

 

96,956

 

 

 

139,503

 

Total cash and cash equivalents and investments at September 30

 

$

1,119,670

 

 

$

1,288,832

 

 

$

1,005,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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, and Operating CASM Excluding Fuel. 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

 

3Q22

 

 

3Q21

 

 

2Q22

 

 

3Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit as Reported

 

$

143,692

 

 

$

59,010

 

 

$

42,261

 

 

$

132,876

 

   Subtract: Unredeemed Ticket Revenue provision reversal

 

 

 

 

 

$

10,395

 

 

 

 

 

 

 

 

 

Adjusted Operating Profit

 

$

143,692

 

 

$

48,615

 

 

$

42,261

 

 

$

132,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit as Reported

 

$

115,939

 

 

$

8,242

 

 

$

124,076

 

 

$

103,978

 

   Subtract: Unredeemed Ticket Revenue provision reversal

 

 

 

 

 

$

10,395

 

 

 

 

 

 

 

 

 

   Add: Net change in fair value of derivatives

 

$

(1,575

)

 

$

32,092

 

 

$

(113,670

)

 

 

 

 

   Add: Net change in fair value of financial investments

 

$

699

 

 

 

 

 

 

$

2,761

 

 

 

 

 

Adjusted Net Profit

 

$

115,062

 

 

$

29,939

 

 

$

13,168

 

 

$

103,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted Basic EPS

 

3Q22

 

 

3Q21

 

 

2Q22

 

 

3Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Profit

 

$

115,062

 

 

$

(16,220

)

 

$

13,168

 

 

$

103,978

 

Shares used for calculation of Basic EPS

 

 

39,589

 

 

 

42,651

 

 

 

41,212

 

 

 

42,487

 

Adjusted Basic Earnings per share (Adjusted Basic EPS)

 

$

2.91

 

 

$

0.70

 

 

$

0.32

 

 

$

2.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Operating Costs per ASM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excluding Fuel (CASM Excl. Fuel)

 

3Q22

 

 

3Q21

 

 

2Q22

 

 

3Q19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Costs per ASM as Reported (in US$ Cents)

 

 

10.5

 

 

 

8.8

 

 

 

10.9

 

 

 

9.0

 

Aircraft Fuel Cost per ASM  (in US$ Cents)

 

 

4.6

 

 

 

2.6