PANAMA
CITY, May 10, 2023 /PRNewswire/ -- Copa
Holdings, S.A. (NYSE: CPA), today announced financial results for
the first quarter of 2023 (1Q23). 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 first quarter of 2019 (1Q19) (which
the Company believes are more relevant than year-over-year
comparisons due to the significant impact of the COVID-19 pandemic
in 2020, 2021, and 2022).
OPERATING AND FINANCIAL HIGHLIGHTS
- Copa Holdings reported a net profit of US$121.5 million for 1Q23 or US$3.07 per share, as compared to a net profit of
US$89.4 million or earnings per share
of US$2.11 in 1Q19. Excluding special
items comprised of the unrealized mark-to-market net loss of
US$36.3 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$157.8 million or US$3.99 per share.
- Copa Holdings reported an operating profit of US$193.2 million and a 22.3% operating margin for
the quarter, as compared to an operating profit of US$112.9 million and an operating margin of 16.8%
in 1Q19.
- Passenger traffic, measured in terms of revenue passenger miles
(RPMs), increased by 7.1% compared to 1Q19, while capacity
(available seat miles or ASMs) increased by 2.8%. As a result, the
load factor for the quarter increased by 3.5 percentage points to
86.8%, as compared to 1Q19.
- Total revenues for 1Q23 increased 29.0% to US$867.3 million, as compared to 1Q19 revenues.
Yields increased 20.0% to 14.6 cents
and revenue per available seat mile (RASM) increased 25.5% to
13.1 cents.
- Operating cost per available seat mile (CASM) increased 17.2%
from 8.7 cents in 1Q19 to
10.2 cents in 1Q23, mainly driven by
an increase of 61.4% in the price of jet fuel per gallon. CASM
excluding fuel (Ex-fuel CASM) increased 2.1% in the quarter to
6.2 cents, as compared to 1Q19.
- The Company ended the quarter with approximately US$1.2 billion in cash, short-term and long-term
investments, which represent 36.3% of the last twelve months'
revenues.
- The Company closed the quarter with total debt, including lease
liabilities, of US$1.7 billion, while
our Net Debt to EBITDA ratio ended at 0.6 times, a decrease when
compared to the previous quarter.
- During the quarter, the Company took delivery of two Boeing 737
MAX 9 aircraft, ending the quarter with a consolidated fleet of 99
aircraft – 67 Boeing 737-800s, 22 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
92.2% and a flight completion factor of 99.9%, once again
positioning itself among the very best in the industry.
Subsequent Events
- Copa Holdings will pay its second quarterly dividend of
$0.82 per share on June 15, to all Class A and Class B shareholders
on record as of May 31, 2023.
Consolidated
Financial
& Operating Highlights
|
1Q23
|
1Q19 (2)
|
Variance vs.
1Q19
|
4Q22
|
Variance vs.
4Q22
|
Revenue Passengers
Carried (000s)
|
2,881
|
2,588
|
11.3 %
|
2,813
|
2.4 %
|
Revenue Passengers
OnBoard (000s)
|
4,295
|
3,830
|
12.1 %
|
4,262
|
0.8 %
|
RPMs
(millions)
|
5,723
|
5,345
|
7.1 %
|
5,639
|
1.5 %
|
ASMs
(millions)
|
6,596
|
6,415
|
2.8 %
|
6,509
|
1.3 %
|
Load Factor
|
86.8 %
|
83.3 %
|
3.5 pp
|
86.6 %
|
0.1 pp
|
Yield (US$
Cents)
|
14.6
|
12.1
|
20.0 %
|
15.1
|
-3.6 %
|
PRASM (US$
Cents)
|
12.6
|
10.1
|
25.0 %
|
13.1
|
-3.4 %
|
RASM (US$
Cents)
|
13.1
|
10.5
|
25.5 %
|
13.7
|
-3.9 %
|
CASM (US$
Cents)
|
10.2
|
8.7
|
17.2 %
|
10.3
|
-0.9 %
|
CASM Excl. Fuel (US$
Cents)
|
6.2
|
6.1
|
2.1 %
|
6.1
|
1.5 %
|
Fuel Gallons Consumed
(millions)
|
78.2
|
81.2
|
-3.7 %
|
77.7
|
0.6 %
|
Avg. Price Per Fuel
Gallon (US$)
|
3.36
|
2.09
|
61.4 %
|
3.52
|
-4.5 %
|
Average Length of Haul
(miles)
|
1,987
|
2,065
|
-3.8 %
|
2,005
|
-0.9 %
|
Average Stage Length
(miles)
|
1,281
|
1,299
|
-1.4 %
|
1,266
|
1.2 %
|
Departures
|
31,984
|
33,329
|
-4.0 %
|
32,112
|
-0.4 %
|
Block Hours
|
104,626
|
110,089
|
-5.0 %
|
104,822
|
-0.2 %
|
Average Aircraft
Utilization (hours)
|
11.9
|
11.6
|
1.9 %
|
11.8
|
0.8 %
|
Operating Revenues (US$
millions)
|
867.3
|
672.2
|
29.0 %
|
890.6
|
-2.6 %
|
Operating Profit (Loss)
(US$ millions)
|
193.2
|
112.9
|
71.2 %
|
219.7
|
-12.0 %
|
Operating
Margin
|
22.3 %
|
16.8 %
|
5.5 p.p
|
24.7 %
|
-2.4 p.p
|
Net Profit (Loss) (US$
millions)
|
121.5
|
89.4
|
35.9 %
|
88.3
|
37.7 %
|
Adjusted Net Profit
(Loss) (US$ millions) (1)
|
157.8
|
89.4
|
76.4 %
|
177.7
|
-11.2 %
|
Basic EPS
(US$)
|
3.07
|
2.11
|
45.9 %
|
2.23
|
37.6 %
|
Adjusted Basic EPS
(US$) (1)
|
3.99
|
2.11
|
89.4 %
|
4.49
|
-11.2 %
|
Shares for calculation
of Basic EPS (000s)
|
39,565
|
42,478
|
-6.9 %
|
39,554
|
0.0 %
|
(1) Excludes Special Items. This earnings
release includes a reconciliation of non-IFRS financial measures to
the comparable IFRS measures.
(2) The
Company believes that comparisons with 2019 are more relevant than
year-over-year comparisons due to the significant impacts of the
COVID-19 pandemic in 2020, 2021, and 2022.
FULL 1Q23 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
1Q23 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
|
May 11, 2023
|
|
|
Time:
|
11:00 AM US ET (10:00
AM Local Time)
|
|
|
Join by
phone:
|
https://register.vevent.com/register/BI7e75fe208db54227b4d9cb0f39ad70f8%20
|
|
|
Webcast
(listen-only):
|
https://copa.gcs-web.com/events-and-presentations
|
|
|
Speakers:
|
Pedro Heilbron, Chief
Executive Officer
|
|
|
|
José Montero, Chief
Financial Officer
|
|
|
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.
CPA-G
Copa Holdings,
S.A
|
|
|
|
|
|
|
|
|
|
Income Statement -
IFRS
|
|
|
|
|
|
|
|
|
|
(US$
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
%
|
Unaudited
|
|
%
|
|
|
1Q23
|
|
1Q19
|
|
Change
|
4Q22
|
|
Change
|
Operating
Revenues
|
|
|
|
|
|
|
|
|
|
Passenger
revenue
|
|
834,018
|
|
648,790
|
|
28.5 %
|
852,291
|
|
-2.1 %
|
Cargo and mail
revenue
|
|
23,252
|
|
15,316
|
|
51.8 %
|
27,095
|
|
-14.2 %
|
Other operating
revenue
|
|
9,995
|
|
8,063
|
|
24.0 %
|
11,226
|
|
-11.0 %
|
Total Operating
Revenue
|
|
867,264
|
|
672,169
|
|
29.0 %
|
890,612
|
|
-2.6 %
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
265,498
|
|
170,163
|
|
56.0 %
|
273,901
|
|
-3.1 %
|
Wages, salaries,
benefits and other employees' expenses
|
|
102,652
|
|
113,662
|
|
-9.7 %
|
105,019
|
|
-2.3 %
|
Passenger
servicing
|
|
20,391
|
|
25,571
|
|
-20.3 %
|
19,518
|
|
4.5 %
|
Airport facilities and
handling charges
|
|
50,479
|
|
45,362
|
|
11.3 %
|
49,734
|
|
1.5 %
|
Sales and
distribution
|
|
61,406
|
|
53,133
|
|
15.6 %
|
61,498
|
|
-0.1 %
|
Maintenance, materials
and repairs
|
|
40,296
|
|
28,047
|
|
43.7 %
|
28,875
|
|
39.6 %
|
Depreciation and
amortization
|
|
72,677
|
|
68,187
|
|
6.6 %
|
70,251
|
|
3.5 %
|
Flight
operations
|
|
27,424
|
|
25,875
|
|
6.0 %
|
25,667
|
|
6.8 %
|
Other operating and
administrative expenses
|
|
33,228
|
|
29,297
|
|
13.4 %
|
36,492
|
|
-8.9 %
|
Total Operating
Expense
|
|
674,053
|
|
559,296
|
|
20.5 %
|
670,954
|
|
0.5 %
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit/(Loss)
|
|
193,212
|
|
112,873
|
|
71.2 %
|
219,657
|
|
-12.0 %
|
|
|
|
|
|
|
|
|
|
|
Non-operating Income
(Expense):
|
|
|
|
|
|
|
|
|
|
Finance cost
|
|
(24,365)
|
|
(14,010)
|
|
73.9 %
|
(23,388)
|
|
4.2 %
|
Finance
income
|
|
8,842
|
|
5,954
|
|
48.5 %
|
7,413
|
|
19.3 %
|
Gain (loss) on foreign
currency fluctuations
|
|
1,201
|
|
(5,960)
|
|
-120.2 %
|
(2,560)
|
|
-146.9 %
|
Net change in fair
value of derivatives
|
|
(37,933)
|
|
-
|
|
-100.0 %
|
(91,305)
|
|
-58.5 %
|
Other non-operating
income (expense)
|
|
1,235
|
|
(825)
|
|
-249.7 %
|
1,221
|
|
1.1 %
|
Total Non-Operating
Income/(Expense)
|
|
(51,020)
|
|
(14,841)
|
|
243.8 %
|
(108,619)
|
|
-53.0 %
|
|
|
|
|
|
|
|
|
|
|
Profit before
taxes
|
|
142,192
|
|
98,032
|
|
45.0 %
|
111,039
|
|
28.1 %
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(20,671)
|
|
(8,600)
|
|
140.4 %
|
(22,758)
|
|
-9.2 %
|
|
|
|
|
|
|
|
|
|
|
Net
Profit/(Loss)
|
|
121,521
|
|
89,431
|
|
35.9 %
|
88,280
|
|
37.7 %
|
|
|
|
|
|
|
|
|
|
|
EPS
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3.07
|
|
2.11
|
|
45.9 %
|
2.23
|
|
37.6 %
|
|
|
|
|
|
|
|
|
|
|
Shares used for
calculation:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
39,565,223
|
|
42,477,761
|
|
-6.9 %
|
39,554,071
|
|
0.0 %
|
Copa Holdings, S. A.
and subsidiaries
|
|
|
Consolidated
statement of financial position
|
|
|
(US$
Thousands)
|
|
|
|
March
2023
|
December
2022
|
ASSETS
|
(Unaudited)
|
(Audited)
|
Cash and cash
equivalents
|
242,314
|
122,424
|
Short-term
investments
|
773,493
|
812,323
|
Total cash, cash
equivalents and short-term investments
|
1,015,807
|
934,747
|
|
|
|
Accounts receivable,
net
|
165,111
|
135,415
|
Accounts receivable
from related parties
|
1,833
|
2,168
|
Expendable parts and
supplies, net
|
101,680
|
93,332
|
Prepaid
expenses
|
49,917
|
52,322
|
Prepaid income
tax
|
370
|
798
|
Other current
assets
|
23,665
|
17,043
|
|
342,576
|
301,078
|
TOTAL CURRENT
ASSETS
|
1,358,383
|
1,235,825
|
|
|
|
Long-term
investments
|
166,481
|
202,056
|
Long-term prepaid
expenses
|
6,494
|
7,770
|
Property and equipment,
net
|
2,967,611
|
2,883,524
|
Right of use
assets
|
238,269
|
234,380
|
Intangible,
net
|
80,765
|
78,555
|
Net defined benefit
assets
|
1,048
|
504
|
Deferred tax
assets
|
31,636
|
30,743
|
Other Non-Current
Assets
|
16,277
|
17,005
|
TOTAL NON-CURRENT
ASSETS
|
3,508,581
|
3,454,537
|
|
|
|
TOTAL
ASSETS
|
4,866,964
|
4,690,362
|
|
|
|
LIABILITIES
|
|
|
Loans and
borrowings
|
144,203
|
142,484
|
Current portion of
lease liability
|
77,412
|
80,084
|
Accounts
payable
|
163,236
|
166,660
|
Accounts payable to
related parties
|
1,944
|
1,004
|
Air traffic
liability
|
611,437
|
651,805
|
Frequent flyer deferred
revenue
|
114,976
|
111,526
|
Taxes
Payable
|
67,122
|
43,878
|
Employee benefits
obligations
|
31,534
|
44,913
|
Income tax
payable
|
12,414
|
6,276
|
Other Current
Liabilities
|
1,366
|
1,175
|
TOTAL CURRENT
LIABILITIES
|
1,225,644
|
1,249,805
|
|
|
|
Loans and borrowings
long-term
|
1,327,441
|
1,301,819
|
Lease
Liability
|
162,029
|
158,289
|
Derivative financial
instruments
|
289,083
|
251,150
|
Deferred tax
Liabilities
|
25,783
|
16,571
|
Other long - term
liabilities
|
232,941
|
220,618
|
TOTAL NON-CURRENT
LIABILITIES
|
2,037,277
|
1,948,447
|
|
|
|
TOTAL
LIABILITIES
|
3,262,921
|
3,198,252
|
|
|
|
EQUITY
|
|
|
Class A - 34,064,142
issued and 28,388,261 outstanding
|
21,362
|
21,327
|
Class B -
10,938,125
|
7,466
|
7,466
|
Additional Paid-In
Capital
|
104,606
|
103,465
|
Treasury
Stock
|
(357,087)
|
(344,541)
|
Retained
Earnings
|
1,717,620
|
1,367,784
|
Net profit
|
121,521
|
348,054
|
Other comprehensive
loss
|
(11,445)
|
(11,445)
|
|
|
|
TOTAL
EQUITY
|
1,604,043
|
1,492,110
|
TOTAL EQUITY
LIABILITIES
|
4,866,964
|
4,690,362
|
Copa Holdings, S. A.
and subsidiaries
|
|
|
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
|
|
For the three months
ended March 31,
|
|
|
|
|
|
|
(In US$
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flow from (used
in) operating activities
|
|
203,419
|
|
169,336
|
|
(892)
|
Cash flow used in
investing activities
|
|
(62,868)
|
|
(120,515)
|
|
(86,697)
|
Cash flow (used in)
from financing activities
|
|
(20,661)
|
|
(10,888)
|
|
162,325
|
Net increase in cash
and cash equivalents
|
|
119,890
|
|
37,933
|
|
74,736
|
Cash and cash
equivalents at January 1
|
|
122,424
|
|
211,081
|
|
119,065
|
Cash and cash
equivalents at March 31
|
|
$
242,314
|
|
$
249,014
|
|
$
193,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
|
773,493
|
|
771,074
|
|
898,453
|
Long-term
investments
|
|
166,481
|
|
204,810
|
|
111,001
|
Total cash and cash
equivalents and investments at March 31
|
|
$
1,182,288
|
|
$
1,224,898
|
|
$
1,203,255
|
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
|
|
1Q23
|
|
1Q22
|
|
4Q22
|
|
1Q19
|
|
|
|
|
|
|
|
|
|
Net Profit as
Reported
|
|
$ 121,521
|
|
$
19,759
|
|
$
88,280
|
|
$
89,431
|
Add: Net
change in fair value of derivatives
|
|
$
37,933
|
|
$
6,752
|
|
$
91,305
|
|
|
Add: Net
change in fair value of financial investments
|
|
$
(1,655)
|
|
$
2,979
|
|
$
(1,924)
|
|
|
Adjusted Net
Profit
|
|
$ 157,798
|
|
$
29,490
|
|
$ 177,661
|
|
$
89,431
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Basic EPS
|
|
1Q23
|
|
1Q22
|
|
4Q22
|
|
1Q19
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Profit
|
|
$ 157,798
|
|
$
29,490
|
|
$ 177,661
|
|
$
89,431
|
Shares used for
calculation of Basic EPS
|
|
39,565
|
|
42,006
|
|
39,554
|
|
42,478
|
Adjusted Basic
Earnings per share (Adjusted Basic EPS)
|
|
$
3.99
|
|
$
0.70
|
|
$
4.49
|
|
$
2.11
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating Costs per ASM
|
|
|
|
|
|
|
|
|
Excluding Fuel (CASM
Excl. Fuel)
|
|
1Q23
|
|
1Q22
|
|
4Q22
|
|
1Q19
|
|
|
|
|
|
|
|
|
|
Operating Costs per ASM
as Reported (in US$ Cents)
|
|
10.2
|
|
9.4
|
|
10.3
|
|
8.7
|
Aircraft Fuel Cost per
ASM (in US$ Cents)
|
|
4.0
|
|
3.4
|
|
4.2
|
|
2.7
|
Operating Costs per
ASM excluding fuel (in US$ Cents)
|
|
6.2
|
|
6.0
|
|
6.1
|
|
6.1
|
View original
content:https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-first-quarter-of-2023-301821438.html
SOURCE Copa Holdings, S.A.