Copa Holdings Reports Financial Results for the First Quarter of 2021
05/05/2021 - 04:45 PM
PANAMA CITY , Panama , May 5, 2021 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2021 (1Q21). 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 2021 (1Q21).
OPERATING AND FINANCIAL HIGHLIGHTS
Copa Holdings reported a net loss of US$110.7 million for the quarter, or US$2.60 per share. Excluding special items, the Company would have reported a net loss of US$95.1 million , or US$2.23 per share. Special items for the quarter include a US$15.7 million unrealized mark-to-market loss related to the Company's convertible notes. Copa Holdings reported an operating loss of US$77.1 million for the quarter. Cash consumption, defined as cash disbursements less proceeds, excluding extraordinary financing activities and asset sales but including capital expenditures and payment of financial obligations, averaged approximately US$23 million per month during the quarter. The Company ended the quarter with US$1.5 billion of available liquidity, consisting of approximately US$1.2 billion in cash, short-term and long-term investments, and committed and undrawn credit facilities of US$345 million . The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion . The Company's flight operations, measured in terms of available seat miles (ASMs), represented approximately 39% of those in the same period in 2019. During the quarter, 4 Embraer 190 aircraft exited the fleet as part of a previously agreed sale to a third party. As of March 31, 2021 , there were 4 remaining Embraer 190 aircraft sold that are expected to leave during the second quarter. During the quarter, the Company took delivery of 6 Boeing 737 MAX 9. Excluding the aircraft classified as assets held for sale, and including aircraft in temporary storage, Copa Holdings ended the quarter with a consolidated fleet of 81 aircraft – 68 Boeing 737-800s and 13 Boeing 737 MAX 9s, compared to a total fleet of 102 aircraft at the end of the first quarter of 2020. During the quarter, Copa Airlines had an on-time performance of 95.0% and a flight-completion factor of 99.3% , once again positioning itself among the best in the industry. Subsequent Events
In April, the Company delivered 1 Embraer 190 aircraft, out of 14 that were sold to a third party.
Consolidated Financial
1Q21
1Q20
Variance vs. 1Q20
4Q20
Variance vs. 4Q20
1Q19
Variance vs. 1Q19
Revenue Passengers Carried (000s)
924
2,118
-56.4%
681
35.6%
2,620
-64.7%
RPMs (millions)
1,716
4,473
-61.6%
1,259
36.3%
5,345
-67.9%
ASMs (millions)
2,481
5,491
-54.8%
1,684
47.3%
6,415
-61.3%
Load Factor
69.2%
81.5%
-12.3 p.p.
74.8%
-5.6 p.p.
83.3%
-14.1 p.p.
Yield (US$ Cents)
10.1
12.8
-21.5%
11.7
-13.9%
12.1
-16.9%
PRASM (US$ Cents)
7.0
10.5
-33.3%
8.8
-20.4%
10.1
-31.0%
RASM (US$ Cents)
7.5
10.8
-31.0%
9.4
-20.6%
10.5
-28.6%
CASM (US$ Cents)
10.6
9.0
17.1%
15.1
-29.7%
8.7
21.5%
CASM Excl. Fuel (US$ Cents)
8.5
6.6
30.1%
13.4
-36.3%
6.1
40.5%
Fuel Gallons Consumed (millions)
29.08
70.02
-58.5%
20.75
40.1%
81.2
-64.2%
Avg. Price Per Fuel Gallon (US$)
1.75
1.95
-9.9%
1.41
24.2%
2.09
-15.9%
Average Length of Haul (miles)
1,858
2,112
-12.0%
1,849
0.5%
2,040
-8.9%
Average Stage Length (miles)
1,256
1,308
-3.9%
1,211
3.7%
1,299
-3.3%
Departures
12,372
28,286
-56.3%
8,795
40.7%
33,329
-62.9%
Block Hours
38,851
93,568
-58.5%
26,870
44.6%
110,089
-64.7%
Average Aircraft Utilization (hours) (2)
6.6
10.7
-38.6%
5.2
26.8%
12
-43.9%
Operating Revenues (US$ millions)
185.7
595.5
-68.8%
158.6
17.0%
672.2
-72.4%
Operating Profit (Loss) (US$ millions)
-77.1
98.7
-178.1%
-95.1
-18.9%
112.9
-168.3%
Adjusted Operating Profit (Loss) (US$ millions) (1)
-77.1
98.7
-178.1%
-91.5
-15.8%
112.9
-168.3%
Operating Margin
-41.5%
16.6%
-58.1 p.p.
-59.9%
18.4 p.p.
16.8%
-58.3 p.p.
Adjusted Operating Margin (1)
-41.5%
16.6%
-58.1 p.p.
-57.7%
16.2 p.p.
16.8%
-58.3 p.p.
Net Profit (Loss) (US$ millions)
-110.7
74.3
-249.1%
-177.3
-37.5%
89.4
-223.8%
Adjusted Net Profit (Loss) (US$ millions) (1)
-95.1
74.3
-228.0%
-85.2
11.6%
89.4
-206.3%
Basic EPS (US$)
-2.60
1.75
-248.8%
-4.17
-37.6%
2.11
-223.5%
Adjusted Basic EPS (US$) (1)
-2.23
1.75
-227.8%
-2.00
11.4%
2.11
-206.1%
Shares for calculation of Basic EPS (000s)
42,571
42,501
0.2%
42,511
0.1%
42,478
0.2%
(1) Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
(2) Average Aircraft Utilization is calculated based on the Company's active fleet, excluding aircraft in storage as well as those classified as assets held for sale.
FULL 1Q21 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
1Q21 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
May 6, 2021
Time:
11:00 AM US ET (10:00 AM Local Time)
Conference telephone number:
877-293-5456 (US Domestic Callers)
707-287-9357 (International Callers)
Webcast:
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 80 destinations in 33 countries in North, Central and South America and the Caribbean . For more information visit: www.copa.com .
CONTACT: Copa Holdings S.A. Investor Relations: Ph: 011 507 304-2774 www.copa.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 a number of 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
%
Unaudited
%
1Q21
1Q20
Change
4Q20
Change
1Q19
Change
Operating Revenues
Passenger revenue
173,095
574,650
-69.9%
147,535
17.3%
648,790
-73.3%
Cargo and mail revenue
7,956
13,017
-38.9%
7,243
9.9%
15,316
-48.1%
Other operating revenue
4,626
7,785
-40.6%
3,858
19.9%
8,063
-42.6%
Total Operating Revenue
185,677
595,453
-68.8%
158,636
17.0%
672,169
-72.4%
Operating Expenses
Fuel
51,308
136,954
-62.5%
28,346
81.0%
170,163
-69.8%
Wages, salaries, benefits and other employees' expenses
54,575
110,289
-50.5%
63,599
-14.2%
113,662
-52.0%
Passenger servicing
5,586
21,890
-74.5%
4,180
33.6%
25,571
-78.2%
Airport facilities and handling charges
22,044
40,365
-45.4%
16,914
30.3%
45,362
-51.4%
Sales and distribution
21,652
42,011
-48.5%
18,646
16.1%
53,133
-59.2%
Maintenance, materials and repairs
19,727
27,144
-27.3%
33,221
-40.6%
28,047
-29.7%
Depreciation and amortization
59,450
66,375
-10.4%
67,850
-12.4%
68,187
-12.8%
Flight operations
9,410
23,731
-60.3%
5,925
58.8%
25,875
-63.6%
Other operating and administrative expenses
19,006
28,008
-32.1%
15,011
26.6%
29,297
-35.1%
Total Operating Expense
262,759
496,766
-47.1%
253,693
3.6%
559,296
-53.0%
Operating Profit (Loss)
(77,081)
98,687
-178.1%
(95,057)
-18.9%
112,873
-168.3%
Non-operating Income (Expense):
Finance cost
(17,818)
(11,085)
60.7%
(18,360)
-3.0%
(14,010)
27.2%
Finance income
2,853
6,320
-54.9%
3,571
-20.1%
5,954
-52.1%
Net change in fair value of derivatives
(15,663)
-
n/m
(88,532)
-82.3%
-
n/m
Gain (loss) on foreign currency fluctuations
(1,809)
(10,950)
-83.5%
2,361
-176.6%
(5,960)
-69.6%
Other non-operating income (expense)
(976)
(11)
n/m
1,026
-195.2%
(825)
18.4%
Total Non-Operating Income/(Expense)
(33,412)
(15,726)
112.5%
(99,934)
-66.6%
(14,841)
125.1%
Profit (Loss) before taxes
(110,494)
82,961
-233.2%
(194,991)
-43.3%
98,032
-212.7%
Income tax expense
239
8,687
-97.2%
(17,731)
-101.3%
8,600
-97.2%
Net Profit (Loss)
(110,733)
74,273
-249.1%
(177,261)
-37.5%
89,431
-223.8%
EPS
Basic
-2.60
1.75
-248.8%
-4.17
-37.6%
2.11
-223.5%
Shares used for calculation:
Basic
42,570,983
42,501,338
42,510,573
42,477,761
Copa Holdings, S. A. and subsidiaries
Consolidated statement of financial position
(US$ Thousands)
March
December
2021
2020
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents
193,801
119,065
Short-term investments
898,453
770,816
Total cash, cash equivalents and short-term investments
1,092,254
889,881
Accounts receivable, net
68,436
63,206
Accounts receivable from related parties
1,042
1,429
Expendable parts and supplies, net
72,992
74,319
Prepaid expenses
27,556
30,473
Prepaid income tax
16,189
16,716
Other current assets
6,908
7,805
193,123
193,948
Assets held for sale
115,303
135,542
TOTAL CURRENT ASSETS
1,400,679
1,219,371
Long-term investments
111,001
119,617
Long-term accounts receivable
1,054
1,054
Long-term prepaid expenses
5,680
6,066
Property and equipment, net
2,215,264
2,147,486
Right of use assets
193,553
214,279
Intangible, net
91,316
95,568
Deferred tax assets
35,413
35,595
Other Non-Current Assets
13,917
14,348
TOTAL NON-CURRENT ASSETS
2,667,199
2,634,013
TOTAL ASSETS
4,067,878
3,853,385
LIABILITIES
Loans and borrowings
157,393
127,946
Current portion of lease liability
81,309
83,605
Accounts payable
75,917
63,461
Accounts payable to related parties
4,538
2,970
Air traffic liability
475,084
470,695
Frequent flyer deferred revenue
92,992
91,213
Taxes Payable
18,267
13,400
Employee benefits obligations
28,912
33,995
Income tax payable
1,422
1,023
Other Current Liabilities
197
252
TOTAL CURRENT LIABILITIES
936,033
888,561
Loans and borrowings long-term
1,308,987
1,035,954
Lease Liability
126,436
146,905
Net employee defined benefit liabilities
14,524
14,332
Derivative financial instruments
261,223
245,560
Deferred tax Liabilities
20,862
22,190
Other long - term liabilities
225,642
216,325
TOTAL NON-CURRENT LIABILITIES
1,957,673
1,681,265
TOTAL LIABILITIES
2,893,705
2,569,825
EQUITY
Issued Capital
Class A - 33,998,370 issued and 31,543,037 outstanding
21,282
21,199
Class B common stock - 10,938,125
7,466
7,466
Additional Paid-In Capital
92,608
91,341
Treasury Stock
(136,388)
(136,388)
Retained Earnings
1,324,025
1,931,086
Net (loss) profit
(110,733)
- 607,062
Other comprehensive loss
(24,086)
(24,082)
TOTAL EQUITY
1,174,173
1,283,560
TOTAL EQUITY & LIABILITIES
4,067,878
3,853,385
Copa Holdings, S. A. and subsidiaries
Consolidated Statement of Cash Flows
For the three months ended March 31,
(In US$ thousands)
2021
2020
2019
(Unaudited)
(Unaudited)
(Unaudited)
Cash flow (used in) from operating activities
(892)
106,340
144,061
Cash flow (used in) from investing activities
(86,697)
19,795
(3,591)
Cash flow from (used in) financing activities
162,325
55,058
(84,361)
Net increase in cash and cash equivalents
74,736
181,193
56,109
Cash and cash equivalents at January 1
119,065
158,732
156,158
Cash and cash equivalents at March 31
$ 193,801
$ 339,925
$ 212,267
Short-term investments
898,453
672,721
556,127
Long-term investments
111,001
114,277
128,992
Total cash and cash equivalents and investments at March 31
$ 1,203,255
$ 1,126,923
$ 897,386
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 Monthly Cash Consumption. 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
1Q21
1Q20
4Q20
1Q19
Operating Profit as Reported
$ (77,081)
$ 98,687
$ (95,057)
$ 112,873
Add: Fleet Impairment charges
$ 4,400
Add: Expected loss (gain) on Embraer assets held for sale
$ (877)
Adjusted Operating Profit
$ (77,081)
$ 98,687
$ (91,533)
$ 112,873
Net Profit as Reported
$ (110,733)
$ 74,273
$ (177,261)
$ 89,431
Add: Fleet Impairment charges
$ 4,400
Add: Expected loss (gain) on Embraer assets held for sale
$ (877)
Add: Net change in fair value of derivatives
$ 15,663
$ 88,532
Adjusted Net Profit
$ (95,070)
$ 74,273
$ (85,204)
$ 89,431
Reconciliation of Adjusted Basic EPS
1Q21
1Q20
4Q20
1Q19
Adjusted Net Profit
$ (95,070)
$ 74,273
$ (85,204)
$ 89,431
Shares used for calculation of Basic EPS
42,571
42,501
42,511
42,478
Adjusted Basic Earnings per share (Adjusted Basic EPS)
$ (2.23)
$ 1.75
$ (2.00)
$ 2.11
Reconciliation of Monthly Cash Consumption for 2020 and 2021
1Q21
4Q20
3Q20
2Q20
Beginning Cash balance
$ 1,009
$ 1,006
$ 1,143
$ 1,127
Ending Cash balance
$ 1,203
$ 1,009
$ 1,006
$ 1,143
Net cashflows in the quarter
$ 194
$ 4
$ (137)
$ 16
Subtract: Proceeds from Convertible Notes Offering
$ -
$ -
$ -
$ 343
Subtract: Net Proceeds from new Aircraft Financing
$ 241
$ -
$ -
$ -
Subtract: Others proceeds (assets sold and other non-op proceeds)
$ 20
$ 23
$ 22
$ -
Add: Repayment of short term credit lines
$ -
$ -
$ 50
$ 95
Cash Consumption excluding extraordinary activities
$ (68)
$ (19)
$ (109)
$ (232)
Monthly Cash Consumption excluding extraordinary activities
$ (23)
$ (6)
$ (36)
$ (77)
http://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-first-quarter-of-2021-301284907.html
SOURCE Copa Holdings, S.A.
CPA Rankings
#1682 Ranked by Stock Gains
CPA Stock Data
Industry
Scheduled Passenger Air Transportation
Sector
Transportation and Warehousing
Tags
Transportation, Airlines, Transportation and Warehousing, Scheduled Passenger Air Transportation
Country
Panama
City
Complejo Business Park Torre Norte
About CPA
Copa Holdings, S.A. is a publicly traded foreign private issuer listed on the New York Stock Exchange and parent company of Panamanian carrier Copa Airlines and its subsidiary, Colombian carrier Copa Airlines Colombia. It is headquartered in Panama City, Panama.
