6-K

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 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: 3Q23 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: 11/16/2023

By:

/s/ José Montero

Name: José Montero

Title: CFO

 


EX-99.1

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Exhibit 99.1

Copa Holdings Reports Financial Results for the Third Quarter of 2023

 

Panama City, Panama --- November 15, 2023. Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the third quarter of 2023 (3Q23). 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 2022 (3Q22).

 

OPERATING AND FINANCIAL HIGHLIGHTS

Copa Holdings reported a net profit of US$187.4 million for 3Q23 or US$4.72 per share. Excluding special items comprised of a net gain of US$12.2 million related to the settlement of the Company’s convertible notes and an unrealized mark-to-market gain of US$0.8 million related to the value of financial investments, the Company would have reported a net profit of US$174.4 million or US$4.39 per share.
Copa Holdings reported an operating profit of US$205.0 million and a 23.6% operating margin for the quarter, as compared to an operating profit of US$143.7 million and an operating margin of 17.8% in 3Q22.
Passenger traffic, measured in terms of revenue passenger miles (RPMs), increased by 13.3% year over year, while capacity measured in available seat miles (ASMs) increased by 12.1%. As a result, the load factor for the quarter increased by 0.9 percentage points to 87.8%, as compared to 3Q22.
Total revenues for 3Q23 increased 7.2% to US$867.7 million driven by higher capacity and load factors, while yields decreased by 5.0% to 13.4 cents. Consequently, revenue per available seat mile (RASM) decreased by 4.3% as compared to 3Q22 to 12.2 cents.
Operating cost per available seat mile (CASM) decreased 11.2% from 10.5 cents in 3Q22 to 9.3 cents in 3Q23, mainly driven by a decrease of 21.3% in the price of jet fuel per gallon and lower sales and distribution costs. CASM excluding fuel (Ex-fuel CASM) decreased by 2.1% in the quarter to 5.8 cents, when compared to 3Q22.
The Company ended the quarter with approximately US$1.2 billion in cash, short-term and long-term investments, which represent 34.0% of the last twelve months’ revenues.
In September, Copa Holdings completed the previously announced redemption of its 4.50% Convertible Senior Notes due 2025. The redemption resulted in a net settlement of US$350.0 million in cash, plus approximately 3.7 million shares issued to noteholders.
The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion, while our Adjusted Net Debt to EBITDA ratio ended at 0.4 times.
During the quarter, the Company took delivery of two Boeing 737 MAX 9 aircraft, ending the quarter with a consolidated fleet of 103 aircraft – 67 Boeing 737-800s, 26 Boeing 737 MAX 9s, 9 Boeing 737-700s, and 1 Boeing 737-800 freighter.
Copa Airlines had an on-time performance for the quarter of 89.4% and a flight completion factor of 99.8%, once again positioning itself among the very best in the industry.

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Subsequent Events

In November, the Company took delivery of two Boeing 737 MAX 9 aircraft and expects to receive one additional aircraft during the remainder of 2023. The Company expects to end the year with 106 aircraft.
In October, the Company started service to Barquisimeto, Venezuela, bringing the total number of destinations in its network to 81, maintaining its position as the hub with the most non-stop international destinations in Latin America.
In October, the Company completed its previously disclosed Share Repurchase Program and on November 15, 2023, the board of directors of Copa Holdings approved a new US$200 million Share Repurchase Program. Purchases will be made subject to market and economic conditions, applicable legal requirements, and other relevant factors.
Copa Holdings will make its fourth dividend payment of the year of US$0.82 per share on December 15, 2023, to all Class A and Class B shareholders on record as of November 30, 2023.

 

Consolidated Financial
& Operating Highlights

3Q23

3Q22

Variance vs. 3Q22

2Q23

Variance vs. 2Q23

Revenue Passengers Carried (000s)

3,272

2,755

18.7%

2,980

9.8%

Revenue Passengers OnBoard (000s)

4,873

4,190

16.3%

4,469

9.0%

RPMs (millions)

6,239

5,508

13.3%

5,826

7.1%

ASMs (millions)

7,109

6,344

12.1%

6,767

5.1%

Load Factor

87.8%

86.8%

0.9 p.p.

86.1%

1.7 p.p.

Yield (US$ Cents)

13.4

14.1

-5.0%

13.3

0.6%

PRASM (US$ Cents)

11.7

12.2

-4.0%

11.4

2.5%

RASM (US$ Cents)

12.2

12.8

-4.3%

12.0

2.1%

CASM (US$ Cents)

9.3

10.5

-11.2%

9.1

2.6%

CASM Excl. Fuel (US$ Cents)

5.8

5.9

-2.1%

5.9

-2.4%

Fuel Gallons Consumed (millions)

83.9

75.7

10.9%

79.9

5.1%

Avg. Price Per Fuel Gallon (US$)

3.00

3.81

-21.3%

2.65

12.9%

Average Length of Haul (miles)

1,907

1,999

-4.6%

1,955

-2.5%

Average Stage Length (miles)

1,238

1,265

-2.1%

1,260

-1.7%

Departures

35,468

31,484

12.7%

33,385

6.2%

Block Hours

112,114

102,027

9.9%

107,055

4.7%

Average Aircraft Utilization (hours)

11.9

11.7

2.0%

11.8

1.0%

Operating Revenues (US$ millions)

867.7

809.4

7.2%

809.2

7.2%

Operating Profit (Loss) (US$ millions)

205.0

143.7

42.7%

194.7

5.3%

Operating Margin

23.6%

17.8%

5.9 p.p.

24.1%

-0.4 p.p.

Net Profit (Loss) (US$ millions)

187.4

115.9

61.6%

17.5

970.2%

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

174.4

115.1

51.6%

154.5

12.9%

Basic EPS (US$)

4.72

2.93

61.0%

0.44

962.4%

Adjusted Basic EPS (US$) (1)

4.39

2.91

51.0%

3.92

12.1%

Shares for calculation of Basic EPS (000s)

39,730

39,589

0.4%

39,442

0.7%

 

(1)
Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures.

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MANAGEMENT’S COMMENTS ON THE 3Q23 RESULTS

Thanks to a continued healthy air travel demand environment in the region and the Company’s consistent strategy on ex-fuel costs execution, Copa Holdings reported strong results for the quarter. The Company reported an operating profit of US$205.0 million and a 23.6% operating margin in 3Q23, representing a year-over-year increase of US$61.3 million and 5.9 percentage points, respectively.

 

Operating revenues for the quarter increased 7.2% to US$867.7 million driven by higher capacity and load factors. The Company’s load factor came in at 87.8% or 0.9 percentage points above 3Q22 on a 12.1% increase in capacity year over year, while yields came in at 13.4 cents or 5.0% lower than 3Q22. As a result, passenger revenues per ASM (PRASM) decreased 4.0% in the quarter to 11.7 cents and RASM decreased 4.3% to 12.2 cents.

 

Operating expenses for 3Q23 decreased by 0.5% to US$662.7 million despite the 12.1% increase in capacity compared to 3Q22, mainly driven by lower fuel and sales and distribution costs. Aircraft fuel expenses decreased by 13.5% or US$39.5 million compared to 3Q22, due to a 21.3% lower jet fuel price, partially offset by 10.9% more gallons consumed, and sales and distribution costs decreased by 11.0% due to higher penetration of direct sales and lower-cost travel agency channels.

As a result, cost per available seat mile (CASM) came in at 9.3 cents, a decrease of 11.2% compared to 3Q22. Costs excluding fuel (Ex-fuel CASM) came in at 5.8 cents, a 2.1% decrease when compared to the same period in 2022.

Copa Holdings closed the quarter with US$ 1.2 billion in cash, short-term and long-term investments, which represent 34.0% of the last twelve months’ revenues.

Total debt at the end of 3Q23 amounted to US$1.7 billion, while our Adjusted Net Debt to EBITDA ratio ended at 0.4 times.

 

The Company continued its fleet expansion during the quarter taking delivery of two Boeing 737 MAX 9 aircraft to end the quarter with a total of 103 aircraft. Additionally, in October, the Company started a new service to Barquisimeto, Venezuela, bringing the total number of destinations in its network to 81, maintaining its position as the hub with the most non-stop international destinations in Latin America.

 

Copa Holdings’ third 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.

 

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OUTLOOK FOR 2023 AND 2024

 

For 2023, the Company updates its outlook as follows: consolidated capacity is expected to grow by approximately 13% over 2022, and operating margin is expected to come in at approximately 23%.

 

Financial Outlook

2023
Guidance

2022
 

Capacity – YOY ASM growth

13%

63.6%

Operating Margin

23%

15.2%

 

Factored into this outlook is a load factor of approximately 87%, unit revenues (RASM) of 12.4 cents, unit costs excluding fuel (Ex-Fuel CASM) in the range of 6.0 cents, and an all-in fuel price of US$3.02 per gallon.

 

For the full year 2024, the Company preliminarily expects to increase its capacity in the range of 12% to 14% when compared to 2023 and a unit cost excluding fuel (Ex-Fuel CASM) of approximately 5.9 cents.

 

CONSOLIDATED THIRD-QUARTER RESULTS

Operating revenue

Consolidated revenue for 3Q23 totaled US$ 867.7 million, a 7.2% increase from operating revenue of US$809.4 million in 3Q22, mainly driven by passenger revenue.

 

Passenger revenue totaled US$833.3 million, a 7.6% increase compared to the same period in 2022, mainly driven by a 12.1% year-over-year capacity increase and a 0.9 percentage point increase in load factor, partially offset by a 5.0% decrease in passenger yield. The third-quarter results are mostly comprised of flown passenger ticket revenue, unredeemed ticket revenue, and passenger-related ancillary revenue.

 

Cargo and mail revenue totaled US$23.4 million, an 11.2% decrease compared to the same period in 2022, related to lower cargo volumes and yields.

 

Other operating revenue totaled US$11.0 million, a 24.5% increase compared to the same period in 2022, mainly revenues from non-air ConnectMiles partners.

 

Operating expenses

 

Consolidated operating costs for 3Q23 decreased by 0.5% to US$662.7 million, mainly driven by lower fuel and sales and distribution costs.

 

Fuel totaled US$252.1 million, a decrease of 13.5% compared to the same period in 2022, due to a 21.3% lower effective fuel price, partially offset by a 10.9% increase in fuel gallons consumed.

Wages, salaries, benefits, and other employee expenses totaled US$108.4 million, representing a 12.2% 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 higher variable compensation.

Passenger servicing totaled US$23.1 million, an increase of 22.6% compared to the same period in 2022, mainly due to a 16.3% increase in onboard passengers and an upgrade in the Company’s product offering.

Airport facilities and handling charges totaled US$58.2 million, an increase of 17.0% compared to the same period in 2022, mostly related to a 12.7% increase in departures as well as higher airport fees.

 

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Sales and distribution totaled US$54.1 million, a decrease of 11.0% compared to the same period in 2022, due to 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$29.5 million, an increase of 25.2% compared to the same period in 2022. This increase was mainly driven by the timing of major component repairs, changes in supplemental rent provisions related to the extension of leased aircraft contracts, and an increase of 9.5% in flight hours.

 

Depreciation and amortization totaled US$78.4 million, an increase of 13.9% 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$29.5 million, an increase of 15.7% compared to the same period in 2022, driven by a 9.9% increase in block hours and an increase in overflight rates in certain countries.

 

Other operating and administrative expenses totaled US$29.4 million, representing a decrease of 3.2% compared to the same period in 2022, mainly due to lower engine rental expenses.

 

Non-operating Income (Expense)

 

Consolidated non-operating income (expense) resulted in a net income of US$9.5 million in 3Q23.

 

Finance cost totaled (US$82.9) million, mostly comprised of US$64.9 million in interest expenses related to the amortization of the debt principal and debt issuance costs associated with the convertible notes retired during the period; US$11.0 million related to loan interest and commission expenses; US$3.6 million in interest charges related to operating leases; US$3.0 million related to the discount rate utilized for the calculation of leased aircraft charges; and US$0.4 million in other interest charges.

 

Finance income totaled US$15.1 million in proceeds from investments.

 

Gain (loss) on foreign currency fluctuations totaled (US$1.6) million, mainly driven by the depreciation of the Brazilian real and the Argentine peso during the quarter.

 

Net change in fair value of derivatives totaled US$77.1 million related to a decrease in the fair value of the derivative associated with the Company’s convertible notes as part of the settlement of the notes executed during the quarter.

 

Other non-operating income (expense) totaled a net of US$1.9 million, which includes an unrealized mark-to-market gain of US$0.8 million related to changes in the value of financial investments.

 

 

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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.

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Copa Holdings, S.A.

Income Statement - IFRS

(US$ Thousands)

 

 

 

Unaudited

 

 

Unaudited

 

 

%

 

Unaudited

 

 

%

 

 

 

3Q23

 

 

3Q22

 

 

Change

 

2Q23

 

 

Change

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Passenger revenue

 

 

833,306

 

 

 

774,230

 

 

 

7.6

%

 

773,781

 

 

 

7.7

%

Cargo and mail revenue

 

 

23,431

 

 

 

26,400

 

 

 

-11.2

%

 

23,888

 

 

 

-1.9

%

Other operating revenue

 

 

10,973

 

 

 

8,815

 

 

 

24.5

%

 

11,521

 

 

 

-4.8

%

Total Operating Revenue

 

 

867,711

 

 

 

809,445

 

 

 

7.2

%

 

809,190

 

 

 

7.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Fuel

 

 

252,077

 

 

 

291,528

 

 

 

-13.5

%

 

214,121

 

 

 

17.7

%

Wages, salaries, benefits and other employees' expenses

 

 

108,416

 

 

 

96,612

 

 

 

12.2

%

 

105,788

 

 

 

2.5

%

Passenger servicing

 

 

23,147

 

 

 

18,881

 

 

 

22.6

%

 

21,460

 

 

 

7.9

%

Airport facilities and handling charges

 

 

58,243

 

 

 

49,783

 

 

 

17.0

%

 

54,146

 

 

 

7.6

%

Sales and distribution

 

 

54,058

 

 

 

60,712

 

 

 

-11.0

%

 

56,596

 

 

 

-4.5

%

Maintenance, materials and repairs

 

 

29,528

 

 

 

23,577

 

 

 

25.2

%

 

31,430

 

 

 

-6.1

%

Depreciation and amortization

 

 

78,359

 

 

 

68,813

 

 

 

13.9

%

 

74,818

 

 

 

4.7

%

Flight operations

 

 

29,476

 

 

 

25,483

 

 

 

15.7

%

 

25,005

 

 

 

17.9

%

Other operating and administrative expenses

 

 

29,394

 

 

 

30,363

 

 

 

-3.2

%

 

31,158

 

 

 

-5.7

%

Total Operating Expense

 

 

662,697

 

 

 

665,752

 

 

 

-0.5

%

 

614,523

 

 

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit/(Loss)

 

 

205,014

 

 

 

143,692

 

 

 

42.7

%

 

194,667

 

 

 

5.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating Income (Expense):

 

 

 

 

 

 

 

 

 

 

 

 

Finance cost

 

 

(82,926

)

 

 

(22,528

)

 

 

268.1

%

 

(30,517

)

 

 

171.7

%

Finance income

 

 

15,108

 

 

 

4,546

 

 

 

232.3

%

 

11,970

 

 

 

26.2

%

Gain (loss) on foreign currency fluctuations

 

 

(1,566

)

 

 

(3,335

)

 

 

-53.1

%

 

3,712

 

 

 

-142.2

%

Net change in fair value of derivatives

 

 

77,058

 

 

 

1,575

 

 

 

4792.6

%

 

(137,473

)

 

 

-156.1

%

Other non-operating income (expense)

 

 

1,867

 

 

 

4,230

 

 

 

-55.9

%

 

925

 

 

 

101.8

%

Total Non-Operating Income/(Expense)

 

 

9,540

 

 

 

(15,513

)

 

 

-161.5

%

 

(151,382

)

 

 

-106.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before taxes

 

 

214,555

 

 

 

128,179

 

 

 

67.4

%

 

43,284

 

 

 

395.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

(27,179

)

 

 

(12,241

)

 

 

122.0

%

 

(25,775

)

 

 

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Profit/(Loss)

 

 

187,375

 

 

 

115,939

 

 

 

61.6

%

 

17,509

 

 

 

970.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

4.72

 

 

 

2.93

 

 

 

61.0

%

 

0.44

 

 

 

962.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used for calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

39,730,180

 

 

 

39,588,984

 

 

 

0.4

%

 

39,442,367

 

 

 

0.7

%

 

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Copa Holdings, S. A. and subsidiaries

Consolidated statement of financial position

(US$ Thousands)

 

 

September 2023

 

December 2022

 

ASSETS

(Unaudited)

 

(Audited)

 

Cash and cash equivalents

 

236,878

 

 

122,424

 

Short-term investments

 

754,799

 

 

812,323

 

Total cash, cash equivalents and short-term investments

 

991,677

 

 

934,747

 

 

 

 

 

 

Accounts receivable, net

 

169,386

 

 

135,415

 

Accounts receivable from related parties

 

2,416

 

 

2,168

 

Expendable parts and supplies, net

 

108,546

 

 

93,332

 

Prepaid expenses

 

44,189

 

 

52,322

 

Prepaid income tax

 

139

 

 

798

 

Other current assets

 

25,671

 

 

17,043

 

 

 

350,347

 

 

301,078

 

TOTAL CURRENT ASSETS

 

1,342,024

 

 

1,235,825

 

 

 

 

 

 

Long-term investments

 

177,835

 

 

202,056

 

Long-term prepaid expenses

 

9,475

 

 

7,770

 

Property and equipment, net

 

3,069,652

 

 

2,883,524

 

Right of use assets

 

291,446

 

 

234,380

 

Intangible, net

 

85,711

 

 

78,555

 

Net defined benefit assets

 

2,303

 

 

504

 

Deferred tax assets

 

27,473

 

 

30,743

 

Other Non-Current Assets

 

17,435

 

 

17,005

 

TOTAL NON-CURRENT ASSETS

 

3,681,330

 

 

3,454,537

 

 

 

 

 

 

TOTAL ASSETS

 

5,023,354

 

 

4,690,362

 

 

 

 

 

 

LIABILITIES

 

 

 

 

Loans and borrowings

 

260,164

 

 

142,484

 

Current portion of lease liability

 

69,001

 

 

80,084

 

Accounts payable

 

179,052

 

 

166,660

 

Accounts payable to related parties

 

1,574

 

 

1,004

 

Air traffic liability

 

658,246

 

 

651,805

 

Frequent flyer deferred revenue

 

121,732

 

 

111,526

 

Taxes Payable

 

39,939

 

 

43,878

 

Employee benefits obligations

 

48,809

 

 

44,913

 

Income tax payable

 

19,046

 

 

6,276

 

Other Current Liabilities

 

1,236

 

 

1,175

 

TOTAL CURRENT LIABILITIES

 

1,398,799

 

 

1,249,805

 

 

 

 

 

 

Loans and borrowings long-term

 

1,110,284

 

 

1,301,819

 

Lease Liability

 

224,140

 

 

158,289

 

Derivative financial instruments

 

-

 

 

251,150

 

Deferred tax Liabilities

 

44,343

 

 

16,571

 

Other long - term liabilities

 

238,623

 

 

220,618

 

TOTAL NON-CURRENT LIABILITIES

 

1,617,390

 

 

1,948,447

 

 

 

 

 

 

TOTAL LIABILITIES

 

3,016,189

 

 

3,198,252

 

 

 

 

 

 

EQUITY

 

 

 

 

Class A - 34,075,308 issued and 31,146,012 outstanding

 

21,367

 

 

21,327

 

Class B - 10,938,125

 

7,466

 

 

7,466

 

Additional Paid-In Capital

 

209,836

 

 

103,465

 

Treasury Stock

 

(199,379

)

 

(344,541

)

Retained Earnings

 

1,652,915

 

 

1,367,784

 

Net profit

 

326,405

 

 

348,054

 

Other comprehensive loss

 

(11,445

)

 

(11,445

)

 

 

 

 

 

TOTAL EQUITY

 

2,007,165

 

 

1,492,110

 

TOTAL EQUITY LIABILITIES

 

5,023,354

 

 

4,690,362

 

 

8


https://cdn.kscope.io/d3533e1a20d201e333e3eee355d60cfd-img116662097_0.jpg 

 

Consolidated Statement of Cash Flows

For the nine months ended September 30,

(In US$ thousands)

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Cash flow from operating activities

 

 

764,586

 

 

 

543,471

 

 

 

263,252

 

Cash flow used in investing activities

 

 

(274,166

)

 

 

(387,334

)

 

 

(140,844

)

Cash flow from (used in) from financing activities

 

 

(375,966

)

 

 

(168,474

)

 

 

48,758

 

Net increase (decrease) in cash and cash equivalents

 

 

114,454

 

 

 

(12,337

)

 

 

171,166

 

Cash and cash equivalents at January 1

 

 

122,424

 

 

 

211,081

 

 

 

119,065

 

Cash and cash equivalents at September 30

 

$

236,878

 

 

$

198,744

 

 

$

290,231

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

 

754,799

 

 

 

752,812

 

 

 

901,645

 

Long-term investments

 

 

177,835

 

 

 

168,114

 

 

 

96,956

 

Total cash and cash equivalents and investments at September 30

 

$

1,169,512

 

 

$

1,119,670

 

 

$

1,288,832

 

 

9


https://cdn.kscope.io/d3533e1a20d201e333e3eee355d60cfd-img116662097_0.jpg 

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

 

3Q23

 

 

3Q22

 

 

2Q23

 

 

 

 

 

 

 

 

 

 

 

Net Profit as Reported

 

$

187,375

 

 

$

115,939

 

 

$

17,509

 

   Add: Interest expense related to the settlement of the convertible notes

 

$

64,894

 

 

$

-

 

 

$

-

 

   Add: Net change in fair value of derivatives

 

$

(77,058

)

 

$

(1,575

)

 

$

137,473

 

   Add: Net change in fair value of financial investments

 

$

(810

)

 

$

699

 

 

$

(512

)

Adjusted Net Profit

 

$

174,400

 

 

$

115,062

 

$

154,469

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted Basic EPS

 

3Q23

 

 

3Q22

 

 

2Q23

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Profit

 

$

174,400

 

 

$

115,062

 

 

$

154,469

 

Shares used for calculation of Basic EPS

 

 

39,730

 

 

 

39,589

 

 

 

39,442

 

Adjusted Basic Earnings per share (Adjusted Basic EPS)

 

$

4.39

 

 

$

2.91

 

 

$

3.92

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Operating Costs per ASM

 

 

 

 

 

 

 

 

 

Excluding Fuel (CASM Excl. Fuel)

 

3Q23

 

 

3Q22

 

 

2Q23

 

 

 

 

 

 

 

 

 

 

 

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

 

 

9.3

 

 

 

10.5

 

 

 

9.1

 

Aircraft Fuel Cost per ASM (in US$ Cents)

 

 

3.5

 

 

 

4.6

 

 

 

3.2

 

Operating Costs per ASM excluding fuel (in US$ Cents)

 

 

5.8

 

 

 

5.9

 

 

5.9

 

 

10