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 August 2023
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: 2Q23 Earnings Release
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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.
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Copa Holdings, S.A. |
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Date: 8/11/2023 |
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|
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By: |
/s/ José Montero |
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Name: José Montero Title: CFO |
Exhibit 99.1
Copa Holdings Reports Financial Results for the Second Quarter of 2023
Panama City, Panama --- August 9, 2023. Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the second quarter of 2023 (2Q23). 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 second quarter of 2022 (2Q22).
OPERATING AND FINANCIAL HIGHLIGHTS
1
Subsequent Events
Consolidated Financial |
2Q23 |
|
2Q22 |
|
Variance vs. 2Q22 |
|
1Q23 |
|
Variance vs. 1Q23 |
|
YTD23 |
|
YTD22 |
|
Variance vs. YTD22 |
|
||||||||
Revenue Passengers Carried (000s) |
|
2,980 |
|
|
2,481 |
|
|
20.1 |
% |
|
2,881 |
|
|
3.4 |
% |
|
5,860 |
|
|
4,765 |
|
|
23.0 |
% |
Revenue Passengers OnBoard (000s) |
|
4,469 |
|
|
3,796 |
|
|
17.7 |
% |
|
4,295 |
|
|
4.0 |
% |
|
8,764 |
|
|
7,272 |
|
|
20.5 |
% |
RPMs (millions) |
|
5,826 |
|
|
5,047 |
|
|
15.4 |
% |
|
5,723 |
|
|
1.8 |
% |
|
11,550 |
|
|
9,632 |
|
|
19.9 |
% |
ASMs (millions) |
|
6,767 |
|
|
5,955 |
|
|
13.6 |
% |
|
6,596 |
|
|
2.6 |
% |
|
13,363 |
|
|
11,578 |
|
|
15.4 |
% |
Load Factor |
|
86.1 |
% |
|
84.8 |
% |
|
1.3 p.p. |
|
|
86.8 |
% |
|
-0.7 p.p. |
|
|
86.4 |
% |
|
83.2 |
% |
|
3.2 p.p. |
|
Yield (US$ Cents) |
|
13.3 |
|
|
13.0 |
|
|
2.0 |
% |
|
14.6 |
|
|
-8.9 |
% |
|
13.9 |
|
|
12.4 |
|
|
11.9 |
% |
PRASM (US$ Cents) |
|
11.4 |
|
|
11.0 |
|
|
3.6 |
% |
|
12.6 |
|
|
-9.6 |
% |
|
12.0 |
|
|
10.3 |
|
|
16.3 |
% |
RASM (US$ Cents) |
|
12.0 |
|
|
11.6 |
|
|
2.7 |
% |
|
13.1 |
|
|
-9.1 |
% |
|
12.5 |
|
|
10.9 |
|
|
14.8 |
% |
CASM (US$ Cents) |
|
9.1 |
|
|
10.9 |
|
|
-17.0 |
% |
|
10.2 |
|
|
-11.1 |
% |
|
9.6 |
|
|
10.2 |
|
|
-5.2 |
% |
CASM Excl. Fuel (US$ Cents) |
|
5.9 |
|
|
6.0 |
|
|
-0.8 |
% |
|
6.2 |
|
|
-4.5 |
% |
|
6.1 |
|
|
6.0 |
|
|
1.5 |
% |
Fuel Gallons Consumed (millions) |
|
79.9 |
|
|
71.5 |
|
|
11.8 |
% |
|
78.2 |
|
|
2.2 |
% |
|
158.1 |
|
|
138.0 |
|
|
14.5 |
% |
Avg. Price Per Fuel Gallon (US$) |
|
2.65 |
|
|
4.14 |
|
|
-35.9 |
% |
|
3.36 |
|
|
-21.1 |
% |
|
3.00 |
|
|
3.52 |
|
|
-14.8 |
% |
Average Length of Haul (miles) |
|
1,955 |
|
|
2,034 |
|
|
-3.9 |
% |
|
1,987 |
|
|
-1.6 |
% |
|
1,971 |
|
|
2,021 |
|
|
-2.5 |
% |
Average Stage Length (miles) |
|
1,260 |
|
|
1,273 |
|
|
-1.1 |
% |
|
1,281 |
|
|
-1.7 |
% |
|
1,270 |
|
|
1,285 |
|
|
-1.2 |
% |
Departures |
|
33,385 |
|
|
29,369 |
|
|
13.7 |
% |
|
31,984 |
|
|
4.4 |
% |
|
65,369 |
|
|
56,559 |
|
|
15.6 |
% |
Block Hours |
|
107,055 |
|
|
95,315 |
|
|
12.3 |
% |
|
104,626 |
|
|
2.3 |
% |
|
211,681 |
|
|
183,790 |
|
|
15.2 |
% |
Average Aircraft Utilization (hours) |
|
11.8 |
|
|
11.2 |
|
|
5.4 |
% |
|
11.9 |
|
|
-0.8 |
% |
|
11.8 |
|
|
10.9 |
|
|
8.5 |
% |
Operating Revenues (US$ millions) |
|
809.2 |
|
|
693.4 |
|
|
16.7 |
% |
|
867.3 |
|
|
-6.7 |
% |
|
1,676.5 |
|
|
1,265.0 |
|
|
32.5 |
% |
Operating Profit (Loss) (US$ millions) |
|
194.7 |
|
|
42.3 |
|
|
360.6 |
% |
|
193.2 |
|
|
0.8 |
% |
|
387.9 |
|
|
87.0 |
|
|
345.7 |
% |
Operating Margin |
|
24.1 |
% |
|
6.1 |
% |
|
18.0 p.p. |
|
|
22.3 |
% |
|
1.8 p.p. |
|
|
23.1 |
% |
|
6.9 |
% |
|
16.3 p.p. |
|
Net Profit (Loss) (US$ millions) |
|
17.5 |
|
|
124.1 |
|
|
-85.9 |
% |
|
121.5 |
|
|
-85.6 |
% |
|
139.0 |
|
|
143.8 |
|
|
-3.3 |
% |
Adjusted Net Profit (Loss) (US$ millions) (1) |
|
154.5 |
|
|
13.2 |
|
|
1073.1 |
% |
|
157.8 |
|
|
-2.1 |
% |
|
312.3 |
|
|
42.7 |
|
|
632.0 |
% |
Basic EPS (US$) |
|
0.44 |
|
|
3.01 |
|
|
-85.3 |
% |
|
3.07 |
|
|
-85.5 |
% |
|
3.52 |
|
|
3.49 |
|
|
1.0 |
% |
Adjusted Basic EPS (US$) (1) |
|
3.92 |
|
|
0.32 |
|
|
1125.7 |
% |
|
3.99 |
|
|
-1.8 |
% |
|
7.92 |
|
|
1.04 |
|
|
664.9 |
% |
Shares for calculation of Basic EPS (000s) |
|
39,442 |
|
|
41,212 |
|
|
-4.3 |
% |
|
39,565 |
|
|
-0.3 |
% |
|
39,442 |
|
|
41,212 |
|
|
-4.3 |
% |
IFRS measures.
2
MANAGEMENT’S COMMENTS ON THE 2Q23 RESULTS
Copa Holdings’ second-quarter results continued to benefit from a healthy demand environment, which resulted in solid unit revenues for the quarter. Moreover, lower effective jet fuel prices and the Company’s consistent execution strategy on its ex-fuel costs impacted positively its unit costs base.
Operating revenues for the quarter increased 16.7% to US$809.2 million while operating 13.6% more capacity compared to 2Q22. The Company’s load factor came in at 86.1% or 1.3 percentage points above 2Q22 and yields came in at 13.3 cents or 2.0% higher than 2Q22. As a result, passenger revenues per ASM (PRASM) increased 3.6% to 11.4 cents and RASM increased 2.7% to 12.0 cents in the quarter.
Operating expenses for 2Q23 decreased 5.6% to US$614.5 million, mainly due to lower fuel costs. Aircraft fuel expenses decreased 27.7% or US$81.8 million compared to 2Q22, due to a 35.9% lower jet fuel price, partially offset by 11.8% more gallons consumed.
Driven by the decrease in fuel cost, cost per available seat mile (CASM) came in at 9.1 cents, a decrease of 17.0% compared to 2Q22. Costs excluding fuel (Ex-fuel CASM) came in at 5.9 cents, a 0.8% decrease when compared to the same period in 2022.
Copa Holdings closed the quarter with US$ 1.3 billion in cash, short-term and long-term investments, which represent 39.6% of the last twelve months’ revenues.
Total debt at the end of 2Q23 amounted to US$1.8 billion compared to US$1.7 billion at the end of 2022, while our Adjusted Net Debt to EBITDA ratio ended at 0.5 times.
The Company continued its fleet expansion during the quarter and took delivery of two Boeing 737 MAX 9 aircraft to end the quarter with a total of 101 aircraft in its fleet. Additionally, the Company announced the commencement of its new service to Barquisimeto, Venezuela in October 2023, bringing the total number of destinations in its network to 81.
Copa Holdings’ second quarter results are the product of a solid and well-executed 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 2023
For 2023, the Company updates its outlook as follows: consolidated capacity is expected to grow within a range of 12% to 13% over 2022, and operating margin is expected to come within the range of 22% to 24%.
Financial Outlook |
2023 |
2022 |
Capacity – YOY ASM growth |
12-13% |
63.6% |
Operating Margin |
22-24% |
15.2% |
Factored into this outlook is a load factor of approximately 86%, unit revenues (RASM) of 12.3 cents, unit costs excluding fuel (Ex-Fuel CASM) in the range of 6.0 cents, and an all-in fuel price of US$2.95 per gallon.
CONSOLIDATED SECOND-QUARTER RESULTS
Operating revenue
Consolidated revenue for 2Q23 totaled US$809.2 million, a 16.7% increase from operating revenue of US$693.4 million in 2Q22, mainly driven by passenger revenue.
Passenger revenue totaled US$773.8 million, a 17.8% increase compared to the same period in 2022, mainly driven by higher load factors and yields which resulted in a 3.6% increase in PRASM. The second-quarter results are mostly comprised of flown passenger ticket revenue, unredeemed ticket revenue, and passenger-related ancillary revenue.
Cargo and mail revenue totaled US$23.9 million, a 10.6% decrease compared to the same period in 2022, related to lower cargo volumes and yields.
Other operating revenue totaled US$11.5 million, an 18.6% increase compared to the same period in 2022, mainly revenues from non-air ConnectMiles partners.
Operating expenses
Consolidated costs for 2Q23 decreased 5.6% to US$614.5 million, mainly driven by lower fuel costs.
Fuel totaled US$214.1 million, a decrease of 27.7% compared to the same period in 2022, due to a 35.9% lower effective fuel price, partially offset by an 11.8% increase in fuel gallons consumed.
Wages, salaries, benefits, and other employee expenses totaled US$105.8 million, representing an 18.9% increase compared to the same period in 2022, mainly driven by growth in operational staff to support current capacity, as well as salary adjustments and provisions for variable compensation.
Passenger servicing totaled US$21.5 million, an increase of 33.5% compared to the same period in 2022, mainly due to a 17.7% increase in onboard passengers and an upgrade in the Company’s product offering.
Airport facilities and handling charges totaled US$54.1 million, an increase of 14.5% compared to the same period in 2022, mostly related to a 13.7% increase in departures as well as higher airport fees.
4
Sales and distribution totaled US$56.6 million, an increase of 0.7% compared to the same period in 2022, due to an increase in ticket sales compared to 2Q22 but mostly offset by a reduction in the Company’s distribution costs as a result of higher penetration of both direct sales and the lower-cost travel agency channels launched by Copa in September 2022.
Maintenance, materials, and repairs totaled US$31.4 million, an increase of 11.0% compared to the same period in 2022, mainly due to major components repairs and materials consumption due to an 11.7% increase in flight hours, partially offset by an adjustment in provisions related to the future return of leased aircraft based on IFRS accounting standards.
Depreciation and amortization totaled US$74.8 million, an increase of 14.5% compared to the same period in 2022, mostly related to additional aircraft and maintenance events amortization.
Flight operations mostly related to overflight fees, totaled US$25.0 million, an increase of 3.9% compared to the same period in 2022, driven by a 12.3% increase in block hours, offset by a reversal of provisions corresponding to prior periods.
Other operating and administrative expenses totaled US$31.2 million, representing an increase of 7.8% compared to the same period in 2022, mainly related to engine rentals required to compensate for longer induction and turnaround times at third-party maintenance facilities and IT-related expenses.
Non-operating Income (Expense)
Consolidated non-operating income (expense) totaled (US$151.4) million.
Finance cost totaled (US$30.5) million, mostly comprised of US$11.6 million of convertible notes interest expenses, which included $7.7 million related to a non-cash interest expense due to the amortization of the debt principal and debt issuance costs associated with the convertible notes; US$9.4 million related to loan interest and commission expenses; US$5.7 million related to the discount rate utilized for the calculation of leased aircraft charges; US$2.7 million in interest charges related to operating leases and US$1.1 million in other interest charges.
Finance income totaled US$12.0 million in proceeds from investments.
Gain (loss) on foreign currency fluctuations resulted in a gain of US$3.7 million, mainly driven by the appreciation of the Colombian peso and the Brazilian real during the quarter.
Net change in fair value of derivatives totaled a net (US$137.5) million unrealized mark-to-market loss related to the value of the Company’s convertible notes.
Other non-operating income (expense) totaled a net of US$0.9 million, which includes an unrealized mark-to-market gain of US$0.5 million related to changes in the value of financial investments.
5
About Copa Holdings
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information visit: www.copaair.com.
CONTACT: Copa Holdings S.A.
Investor Relations:
Ph: 011 507 304-2774
www.copaair.com (IR section)
This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current plans, estimates, and expectations, and are not guarantees of future performance. They are based on management’s expectations that involve several business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this release are among those disclosed in Copa Holdings’ filed disclosure documents and are, therefore, subject to change without prior notice.
6
Copa Holdings, S.A.
Income Statement - IFRS
(US$ Thousands)
|
|
Unaudited |
|
|
Unaudited |
|
|
% |
|
Unaudited |
|
|
% |
|
Unaudited |
|
|
Unaudited |
|
|
% |
|
||||||||
|
|
2Q23 |
|
|
2Q22 |
|
|
Change |
|
1Q23 |
|
|
Change |
|
YTD23 |
|
|
YTD22 |
|
|
Change |
|
||||||||
Operating Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Passenger revenue |
|
|
773,781 |
|
|
|
656,943 |
|
|
|
17.8 |
% |
|
834,018 |
|
|
|
-7.2 |
% |
|
1,607,798 |
|
|
|
1,198,198 |
|
|
|
34.2 |
% |
Cargo and mail revenue |
|
|
23,888 |
|
|
|
26,734 |
|
|
|
-10.6 |
% |
|
23,252 |
|
|
|
2.7 |
% |
|
47,140 |
|
|
|
48,270 |
|
|
|
-2.3 |
% |
Other operating revenue |
|
|
11,521 |
|
|
|
9,718 |
|
|
|
18.6 |
% |
|
9,995 |
|
|
|
15.3 |
% |
|
21,516 |
|
|
|
18,508 |
|
|
|
16.3 |
% |
Total Operating Revenue |
|
|
809,190 |
|
|
|
693,394 |
|
|
|
16.7 |
% |
|
867,264 |
|
|
|
-6.7 |
% |
|
1,676,454 |
|
|
|
1,264,976 |
|
|
|
32.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fuel |
|
|
214,121 |
|
|
|
295,952 |
|
|
|
-27.7 |
% |
|
265,498 |
|
|
|
-19.4 |
% |
|
479,619 |
|
|
|
487,208 |
|
|
|
-1.6 |
% |
Wages, salaries, benefits and other employees' expenses |
|
|
105,788 |
|
|
|
88,995 |
|
|
|
18.9 |
% |
|
102,652 |
|
|
|
3.1 |
% |
|
208,441 |
|
|
|
178,754 |
|
|
|
16.6 |
% |
Passenger servicing |
|
|
21,460 |
|
|
|
16,074 |
|
|
|
33.5 |
% |
|
20,391 |
|
|
|
5.2 |
% |
|
41,852 |
|
|
|
31,681 |
|
|
|
32.1 |
% |
Airport facilities and handling charges |
|
|
54,146 |
|
|
|
47,280 |
|
|
|
14.5 |
% |
|
50,479 |
|
|
|
7.3 |
% |
|
104,625 |
|
|
|
93,067 |
|
|
|
12.4 |
% |
Sales and distribution |
|
|
56,596 |
|
|
|
56,222 |
|
|
|
0.7 |
% |
|
61,406 |
|
|
|
-7.8 |
% |
|
118,002 |
|
|
|
102,255 |
|
|
|
15.4 |
% |
Maintenance, materials and repairs |
|
|
31,430 |
|
|
|
28,311 |
|
|
|
11.0 |
% |
|
40,296 |
|
|
|
-22.0 |
% |
|
71,726 |
|
|
|
51,662 |
|
|
|
38.8 |
% |
Depreciation and amortization |
|
|
74,818 |
|
|
|
65,337 |
|
|
|
14.5 |
% |
|
72,677 |
|
|
|
2.9 |
% |
|
147,494 |
|
|
|
128,640 |
|
|
|
14.7 |
% |
Flight operations |
|
|
25,005 |
|
|
|
24,068 |
|
|
|
3.9 |
% |
|
27,424 |
|
|
|
-8.8 |
% |
|
52,429 |
|
|
|
46,106 |
|
|
|
13.7 |
% |
Other operating and administrative expenses |
|
|
31,158 |
|
|
|
28,894 |
|
|
|
7.8 |
% |
|
33,228 |
|
|
|
-6.2 |
% |
|
64,387 |
|
|
|
58,568 |
|
|
|
9.9 |
% |
Total Operating Expense |
|
|
614,523 |
|
|
|
651,133 |
|
|
|
-5.6 |
% |
|
674,053 |
|
|
|
-8.8 |
% |
|
1,288,576 |
|
|
|
1,177,942 |
|
|
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Profit/(Loss) |
|
|
194,667 |
|
|
|
42,261 |
|
|
|
360.6 |
% |
|
193,212 |
|
|
|
0.8 |
% |
|
387,878 |
|
|
|
87,035 |
|
|
|
345.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-operating Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Finance cost |
|
|
(30,517 |
) |
|
|
(21,270 |
) |
|
|
43.5 |
% |
|
(24,365 |
) |
|
|
25.2 |
% |
|
(54,882 |
) |
|
|
(41,715 |
) |
|
|
31.6 |
% |
Finance income |
|
|
11,970 |
|
|
|
3,526 |
|
|
|
239.5 |
% |
|
8,842 |
|
|
|
35.4 |
% |
|
20,812 |
|
|
|
6,071 |
|
|
|
242.8 |
% |
Gain (loss) on foreign currency fluctuations |
|
|
3,712 |
|
|
|
(6,834 |
) |
|
|
-154.3 |
% |
|
1,201 |
|
|
|
209.0 |
% |
|
4,914 |
|
|
|
(3,916 |
) |
|
|
-225.5 |
% |
Net change in fair value of derivatives |
|
|
(137,473 |
) |
|
|
113,670 |
|
|
|
-220.9 |
% |
|
(37,933 |
) |
|
|
262.4 |
% |
|
(175,406 |
) |
|
|
106,918 |
|
|
|
-264.1 |
% |
Other non-operating income (expense) |
|
|
925 |
|
|
|
(2,717 |
) |
|
|
-134.0 |
% |
|
1,235 |
|
|
|
-25.1 |
% |
|
2,160 |
|
|
|
(5,381 |
) |
|
|
-140.1 |
% |
Total Non-Operating Income/(Expense) |
|
|
(151,382 |
) |
|
|
86,375 |
|
|
|
-275.3 |
% |
|
(51,020 |
) |
|
|
196.7 |
% |
|
(202,402 |
) |
|
|
61,977 |
|
|
|
-426.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Profit before taxes |
|
|
43,284 |
|
|
|
128,636 |
|
|
|
-66.4 |
% |
|
142,192 |
|
|
|
-69.6 |
% |
|
185,476 |
|
|
|
149,012 |
|
|
|
24.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
|
(25,775 |
) |
|
|
(4,560 |
) |
|
|
465.2 |
% |
|
(20,671 |
) |
|
|
24.7 |
% |
|
(46,447 |
) |
|
|
(5,177 |
) |
|
|
797.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net Profit/(Loss) |
|
|
17,509 |
|
|
|
124,076 |
|
|
|
-85.9 |
% |
|
121,521 |
|
|
|
-85.6 |
% |
|
139,030 |
|
|
|
143,835 |
|
|
|
-3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
EPS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
0.44 |
|
|
|
3.01 |
|
|
|
-85.3 |
% |
|
3.07 |
|
|
|
-85.5 |
% |
|
3.52 |
|
|
|
3.49 |
|
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Shares used for calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
39,442,367 |
|
|
|
41,211,540 |
|
|
|
-4.3 |
% |
|
39,565,223 |
|
|
|
-0.3 |
% |
|
39,442,367 |
|
|
|
41,211,540 |
|
|
|
-4.3 |
% |
7
Copa Holdings, S. A. and subsidiaries
Consolidated statement of financial position
(US$ Thousands)
|
June 2023 |
|
December 2022 |
|
||
ASSETS |
(Unaudited) |
|
(Audited) |
|
||
Cash and cash equivalents |
|
281,863 |
|
|
122,424 |
|
Short-term investments |
|
833,576 |
|
|
812,323 |
|
Total cash, cash equivalents and short-term investments |
|
1,115,439 |
|
|
934,747 |
|
|
|
|
|
|
||
Accounts receivable, net |
|
162,333 |
|
|
135,415 |
|
Accounts receivable from related parties |
|
2,388 |
|
|
2,168 |
|
Expendable parts and supplies, net |
|
104,332 |
|
|
93,332 |
|
Prepaid expenses |
|
46,025 |
|
|
52,322 |
|
Prepaid income tax |
|
335 |
|
|
798 |
|
Other current assets |
|
21,855 |
|
|
17,043 |
|
|
|
337,268 |
|
|
301,078 |
|
TOTAL CURRENT ASSETS |
|
1,452,707 |
|
|
1,235,825 |
|
|
|
|
|
|
||
Long-term investments |
|
222,282 |
|
|
202,056 |
|
Long-term prepaid expenses |
|
8,832 |
|
|
7,770 |
|
Property and equipment, net |
|
3,025,624 |
|
|
2,883,524 |
|
Right of use assets |
|
258,268 |
|
|
234,380 |
|
Intangible, net |
|
82,919 |
|
|
78,555 |
|
Net defined benefit assets |
|
1,732 |
|
|
504 |
|
Deferred tax assets |
|
29,499 |
|
|
30,743 |
|
Other Non-Current Assets |
|
16,796 |
|
|
17,005 |
|
TOTAL NON-CURRENT ASSETS |
|
3,645,952 |
|
|
3,454,537 |
|
|
|
|
|
|
||
TOTAL ASSETS |
|
5,098,659 |
|
|
4,690,362 |
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
||
Loans and borrowings |
|
445,083 |
|
|
142,484 |
|
Derivative financial instruments |
|
426,555 |
|
|
- |
|
Current portion of lease liability |
|
71,940 |
|
|
80,084 |
|
Accounts payable |
|
161,880 |
|
|
166,660 |
|
Accounts payable to related parties |
|
2,340 |
|
|
1,004 |
|
Air traffic liability |
|
649,054 |
|
|
651,805 |
|
Frequent flyer deferred revenue |
|
114,570 |
|
|
111,526 |
|
Taxes Payable |
|
49,178 |
|
|
43,878 |
|
Employee benefits obligations |
|
39,537 |
|
|
44,913 |
|
Income tax payable |
|
14,814 |
|
|
6,276 |
|
Other Current Liabilities |
|
757 |
|
|
1,175 |
|
TOTAL CURRENT LIABILITIES |
|
1,975,708 |
|
|
1,249,805 |
|
|
|
|
|
|
||
Loans and borrowings long-term |
|
1,107,037 |
|
|
1,301,819 |
|
Lease Liability |
|
186,558 |
|
|
158,289 |
|
Derivative financial instruments |
|
- |
|
|
251,150 |
|
Deferred tax Liabilities |
|
34,710 |
|
|
16,571 |
|
Other long - term liabilities |
|
239,763 |
|
|
220,618 |
|
TOTAL NON-CURRENT LIABILITIES |
|
1,568,068 |
|
|
1,948,447 |
|
|
|
|
|
|
||
TOTAL LIABILITIES |
|
3,543,776 |
|
|
3,198,252 |
|
|
|
|
|
|
||
EQUITY |
|
|
|
|
||
Class A - 34,064,142 issued and 28,367,386 outstanding |
|
21,366 |
|
|
21,327 |
|
Class B - 10,938,125 |
|
7,466 |
|
|
7,466 |
|
Additional Paid-In Capital |
|
105,551 |
|
|
103,465 |
|
Treasury Stock |
|
(360,001 |
) |
|
(344,541 |
) |
Retained Earnings |
|
1,652,916 |
|
|
1,367,784 |
|
Net profit |
|
139,030 |
|
|
348,054 |
|
Other comprehensive loss |
|
(11,445 |
) |
|
(11,445 |
) |
|
|
|
|
|
||
TOTAL EQUITY |
|
1,554,883 |
|
|
1,492,110 |
|
TOTAL EQUITY LIABILITIES |
|
5,098,659 |
|
|
4,690,362 |
|
8
Copa Holdings, S. A. and subsidiaries
Consolidated Statement of Cash Flows
For the six months ended June 30,
(In US$ thousands)
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|||
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|||
Cash flow from operating activities |
|
|
420,171 |
|
|
|
327,833 |
|
|
|
149,669 |
|
Cash flow used in investing activities |
|
|
(293,193 |
) |
|
|
(262,743 |
) |
|
|
(119,776 |
) |
Cash flow from (used in) from financing activities |
|
|
32,461 |
|
|
|
(142,046 |
) |
|
|
107,806 |
|
Net increase in cash and cash equivalents |
|
|
159,439 |
|
|
|
(76,956 |
) |
|
|
137,699 |
|
Cash and cash equivalents at January 1 |
|
|
122,424 |
|
|
|
211,081 |
|
|
|
119,065 |
|
Cash and cash equivalents at June 30 |
|
$ |
281,863 |
|
|
$ |
134,125 |
|
|
$ |
256,764 |
|
|
|
|
|
|
|
|
|
|
|
|||
Short-term investments |
|
|
833,576 |
|
|
|
801,132 |
|
|
|
925,680 |
|
Long-term investments |
|
|
222,282 |
|
|
|
140,374 |
|
|
|
99,235 |
|
Total cash and cash equivalents and investments at June 30 |
|
$ |
1,337,721 |
|
|
$ |
1,075,631 |
|
|
$ |
1,281,679 |
|
9
Copa Holdings, S.A.
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non-IFRS financial measures: 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 Net Profit |
|
2Q23 |
|
|
2Q22 |
|
|
1Q23 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Net Profit as Reported |
|
$ |
17,509 |
|
|
$ |
124,076 |
|
|
$ |
121,521 |
|
Add: Net change in fair value of derivatives |
|
$ |
137,473 |
|
|
$ |
(113,670 |
) |
|
$ |
37,933 |
|
Add: Net change in fair value of financial investments |
|
$ |
(512 |
) |
|
$ |
2,761 |
|
|
$ |
(1,655 |
) |
Adjusted Net Profit |
|
$ |
154,469 |
|
|
$ |
13,168 |
|
|
$ |
157,798 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of Adjusted Basic EPS |
|
2Q23 |
|
|
2Q22 |
|
|
1Q23 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Adjusted Net Profit |
|
$ |
154,469 |
|
|
$ |
13,168 |
|
|
$ |
157,798 |
|
Shares used for calculation of Basic EPS |
|
|
39,442 |
|
|
|
41,212 |
|
|
|
39,565 |
|
Adjusted Basic Earnings per share (Adjusted Basic EPS) |
|
$ |
3.92 |
|
|
$ |
0.32 |
|
|
$ |
3.99 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of Operating Costs per ASM |
|
|
|
|
|
|
|
|
|
|||
Excluding Fuel (CASM Excl. Fuel) |
|
2Q23 |
|
|
2Q22 |
|
|
1Q23 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Operating Costs per ASM as Reported (in US$ Cents) |
|
|
9.1 |
|
|
|
10.9 |
|
|
|
10.2 |
|
Aircraft Fuel Cost per ASM (in US$ Cents) |
|
|
3.2 |
|
|
|
5.0 |
|
|
|
4.0 |
|
Operating Costs per ASM excluding fuel (in US$ Cents) |
|
|
5.9 |
|
|
|
6.0 |
|
|
|
6.2 |
|
10