PANAMA
CITY, Nov. 15, 2023 /PRNewswire/ -- 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.
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.
FULL 3Q23 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
3Q23 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
|
November 16,
2023
|
|
|
Time:
|
11:00 AM US ET (11:00
AM Local Time)
|
|
|
Join by
phone:
|
https://register.vevent.com/register/BI71cb8585c38244d6ad583f080f785ae0
|
|
|
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
|
|
%
|
|
|
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 %
|
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
|
Copa Holdings, S. A.
and subsidiaries
|
|
|
|
|
|
|
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
|
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
|
View original
content:https://www.prnewswire.com/news-releases/copa-holdings-reports-financial-results-for-the-third-quarter-of-2023-301989655.html
SOURCE Copa Holdings, S.A.