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6 years ago
Copa Holdings Reports Net Income of $136.5 million and EPS of $3.22 for the First Quarter of 2018
Source: PR Newswire (US)
PANAMA CITY, May 9, 2018 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the first quarter of 2018 (1Q18). 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 2017 (1Q17).
OPERATING AND FINANCIAL HIGHLIGHTS
Copa Holdings reported net income of US$136.5 million for 1Q18 or earnings per share (EPS) of US$3.22, as compared to net income of US$101.0 million or earnings per share of US$2.38 in 1Q17.
Operating income for 1Q18 came in at US$143.4 million, representing a 23.4% increase over operating income of US$116.2 million in 1Q17, as a result of a 7.2% increase in unit revenues (RASM), which outpaced the 5.6% oil-driven increase in unit costs (CASM). Operating margin for 1Q18 came in at a strong 20.1%, compared to an operating margin of 18.9% in 1Q17.
For 1Q18, consolidated passenger traffic grew 10.4% while consolidated capacity grew 8.4%. As a result, consolidated load factor for the quarter increased 1.5 percentage points to 83.0%.
Total revenues for 1Q18 increased 16.2% to US$715.0 million. Yield per passenger mile increased 5.3% to 13.3 cents and RASM came in at 11.4 cents, or 7.2% above 1Q17.
Operating cost per available seat mile (CASM) increased 5.6%, from 8.6 cents in 1Q17 to 9.1 cents in 1Q18. CASM excluding fuel costs increased 1.1% from 6.2 cents in 1Q17 to 6.3 cents in 1Q18, mainly as a result of maintenance events related to an aircraft lease return.
Cash, short-term and long-term investments ended the quarter slightly over US$1.0 billion, representing 38% of the last twelve months' revenues.
Copa Holdings ended the quarter with a consolidated fleet of 100 aircraft – 67 Boeing 737-800s, 14 Boeing 737-700s, and 19 Embraer-190s.
For 1Q18, Copa Airlines had an on-time performance of 91.3% and a flight-completion factor of 99.8%, maintaining its position among the best in the industry.
Subsequent Events
In April 2018, the company took delivery of one Boeing 737-800, increasing the consolidated fleet to 101 aircraft.
Copa Holdings will pay its second quarterly dividend of $0.87 per share on June 15, to all Class A and Class B shareholders on record as of May 31, 2018.
Consolidated Financial
& Operating Highlights
1Q18
1Q17*
Variance vs. 1Q17
4Q17*
Variance vs. 4Q17
Revenue Passengers Carried ('000)
2,465
2,264
8.9%
2,460
0.2%
RPMs (mm)
5,223
4,732
10.4%
5,086
2.7%
ASMs (mm)
6,297
5,808
8.4%
6,111
3.0%
Load Factor
83.0%
81.5%
1.5 p.p.
83.2%
-0.3 p.p.
Yield
13.3
12.6
5.3%
12.7
4.5%
PRASM (US$ Cents)
11.0
10.3
7.2%
10.6
4.1%
RASM (US$ Cents)
11.4
10.6
7.2%
11.0
3.7%
CASM (US$ Cents)
9.1
8.6
5.6%
9.1
-0.1%
CASM Excl. Fuel (US$ Cents)
6.3
6.2
1.1%
6.5
-2.4%
Fuel Gallons Consumed (Millions)
80.1
74.2
8.0%
78.7
1.8%
Avg. Price Per Fuel Gallon (US$ Dollars)
2.16
1.84
17.6%
2.03
6.7%
Average Length of Haul (Miles)
2,119
2,090
1.4%
2,067
2.5%
Average Stage Length (Miles)
1,322
1,275
3.7%
1,292
2.3%
Departures
32,339
31,095
4.0%
32,183
0.5%
Block Hours
108,635
101,495
7.0%
106,750
1.8%
Average Aircraft Utilization (Hours)
12.0
11.3
6.1%
11.6
3.3%
Operating Revenues (US$ mm)
715.0
615.3
16.2%
669.3
6.8%
Operating Income (US$ mm)
143.4
116.2
23.4%
114.1
25.7%
Operating Margin
20.1%
18.9%
1.2 p.p.
17.1%
3.0 p.p.
Net Income (US$ mm)
136.5
101.0
35.1%
94.6
44.3%
Adjusted Net Income (US$ mm) (1)
136.5
101.9
34.0%
94.0
45.1%
EPS - Basic and Diluted (US$)
3.22
2.38
35.0%
2.23
44.3%
Adjusted EPS - Basic and Diluted (US$) (1)
3.22
2.40
33.8%
2.22
45.1%
# of Shares - Basic and Diluted ('000)
42,439
42,396
0.1%
42,430
0.0%
(1)Adjusted Net Income and Adjusted EPS for 1Q17, and 4Q17 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges.
* Restated for retrospective adoption of IFRS15.
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
FULL 1Q18 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: http://investor.shareholder.com/copa/results.cfm
1Q18 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
May 10, 2018
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:
http://investor.shareholder.com/copa/events.cfm
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 78 destinations in 32 countries in North, Central and South America and the Caribbean with one of the youngest and most modern fleets in the industry, consisting of 101 aircraft: 82 Boeing 737NG aircraft and 19 EMBRAER-190s. 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
%
1Q18
1Q17*
Change
4Q17*
Change
Operating Revenues
Passenger revenue
694,912
597,736
16.3%
647,776
7.3%
Cargo and mail revenue
14,337
12,856
11.5%
14,841
-3.4%
Other operating revenue
5,775
4,665
23.8%
6,665
-13.4%
Total Operating Revenue
715,024
615,257
16.2%
669,282
6.8%
Operating Expenses
Fuel
173,957
136,343
27.6%
159,556
9.0%
Wages, salaries, benefits and other employees' expenses
110,630
100,817
9.7%
110,952
-0.3%
Passenger servicing
25,462
23,074
10.3%
26,481
-3.8%
Airport facilities and handling charges
44,547
40,966
8.7%
42,238
5.5%
Sales and distribution
53,779
49,760
8.1%
51,452
4.5%
Maintenance, materials and repairs
31,724
25,596
23.9%
31,932
-0.7%
Depreciation and amortization
41,909
39,775
5.4%
42,151
-0.6%
Flight operations
27,664
24,031
15.1%
25,082
10.3%
Aircraft rentals and other rentals
33,330
34,231
-2.6%
33,313
0.1%
Cargo and courier expenses
2,047
1,464
39.8%
2,218
-7.7%
Other operating and administrative expenses
26,579
23,001
15.6%
29,790
-10.8%
Total Operating Expense
571,628
499,059
14.5%
555,165
3.0%
Operating Profit
143,396
116,198
23.4%
114,117
25.7%
Non-operating Income (Expense):
Finance cost
(8,564)
(8,921)
-4.0%
(8,725)
-1.8%
Finance income
5,248
3,446
52.3%
5,443
-3.6%
Gain (loss) on foreign currency fluctuations
7,723
2,723
183.7%
(5,676)
n/m
Net change in fair value of derivatives
-
(860)
n/m
540
n/m
Other non-operating income (expense)
496
(615)
n/m
(916)
n/m
Total Non-Operating Income/(Expense)
4,902
(4,227)
n/m
(9,334)
n/m
Profit before taxes
148,298
111,971
32.4%
104,783
41.5%
Income tax expense
11,825
10,971
7.8%
10,212
15.8%
Net Profit
136,473
101,000
35.1%
94,571
44.3%
EPS - Basic and Diluted
3.22
2.38
35.0%
2.23
44.3%
Shares - Basic and Diluted
42,438,748
42,395,784
0.1%
42,429,821
0.0%
* Restated for retrospective adoption of IFRS 15
Copa Holdings, S. A. and subsidiaries
Balance Sheet - IFRS
(US$ Thousands)
March
December 31
2018
2017
(Unaudited)
(Restated) *
ASSETS
Current Assets
Cash and cash equivalents
196,584
238,792
Restricted cash and cash equivalents
-
-
Short-term investments
650,110
705,108
Total cash, cash equivalents and short-term investments
846,694
943,900
Accounts receivable, net
148,900
115,323
Accounts receivable from related parties
1,499
318
Expendable parts and supplies, net
84,849
81,825
Prepaid expenses
51,538
45,421
Other current assets
11,843
11,701
TOTAL CURRENT ASSETS
1,145,323
1,198,488
Long-term investments
155,313
65,953
Long-term accounts receivable
2,365
2,444
Long-term prepaid expenses
25,714
26,130
Property and equipment, net
2,863,901
2,825,904
Intangible, net
84,951
81,115
Net pension asset
3,561
3,185
Deferred tax assets
17,592
18,572
Other Non-Current Assets
31,285
31,140
TOTAL NON-CURRENT ASSETS
3,184,682
3,054,443
TOTAL ASSETS
4,330,005
4,252,931
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of long-term debt
253,944
298,462
Accounts payable
118,200
116,554
Accounts payable to related parties
14,405
12,880
Air traffic liability
485,199
477,168
Frequent flyer deferred revenue
54,959
50,312
Taxes and interest payable
89,058
81,440
Accrued expenses payable
38,616
60,321
Income tax payable
6,522
3,700
Other Current Liabilities
1,444
1,156
TOTAL CURRENT LIABILITIES
1,062,347
1,101,993
Long-term debt
889,011
876,119
Other long - term liabilities
130,834
123,182
Deferred tax Liabilities
45,268
50,628
TOTAL NON-CURRENT LIABILITIES
1,065,113
1,049,929
TOTAL LIABILITIES
2,127,460
2,151,922
EQUITY
Issued Capital
Class A - 33,796,272 issued and 31,243,732 outstanding
21,078
21,038
Class B - 10,938,125 shares issued and outstanding
7,466
7,466
Additional Paid-In Capital
74,871
72,945
Treasury Stock
(136,388)
(136,388)
Retained Earnings
2,102,933
1,775,426
Net Income
136,473
364,410
Other Comprehensive Income
(3,888)
(3,888)
TOTAL EQUITY
2,202,545
2,101,009
TOTAL LIABILITIES AND EQUITY
4,330,005
4,252,931
* Restated for retrospective adoption of IFRS 15
Copa Holdings, S. A. and subsidiaries
Consolidated Statement of Cash Flows
For the three months ended March 31,
(In US$ thousands)
2018
2017
2016
(Unaudited)
(Unaudited)
(Unaudited)
Cash flow from operating activities
145,019
132,752
118,934
Cash flow used in investing activities
(74,198)
(74,800)
(42,044)
Cash flow used in financing activities
(113,029)
(119,743)
(71,652)
Net (decrease) increase in cash and cash equivalents
(42,208)
(61,791)
5,238
Cash and cash equivalents at January 1
238,792
331,687
204,715
Cash and cash equivalents at March 31
$ 196,584
$ 269,896
$ 209,953
Short-term investments
650,110
570,497
457,505
Long-term investments
155,313
954
864
Restricted cash and cash equivalents
-
-
55,611
Total cash and cash equivalents and investments at March 31
$ 1,002,007
$ 841,347
$ 723,933
* Restricted cash corresponds to margin calls to secure derivative financial instruments transactions.
Copa Holdings, S.A.
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non IFRS financial measures: CASM Excluding Fuel, Adjusted Net Income and Adjusted EPS. 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 income and net income. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:
Reconciliation of Adjusted Net Income
and Adjusted EPS
1Q18
1Q17*
4Q17*
Net profit as Reported
$ 136,473
$ 101,000
$ 94,571
Special Items (adjustments):
Net change in fair value of derivatives
$ 860
$ (540)
Adjusted Net Income
$ 136,473
$ 101,860
$ 94,031
Shares used for Computation (in thousands)
Basic and Diluted
$ 42,439
$ 42,396
$ 42,430
Adjusted earnings per share - Basic and Diluted
$ 3.22
$ 2.40
$ 2.22
Reconciliation of Operating Costs per ASM
Excluding Fuel (CASM Excl. Fuel)
1Q18
1Q17*
4Q17*
Operating Costs per ASM as Reported (in US$ Cents)
9.1
8.6
9.1
Aircraft fuel per ASM (in US$ Cents)
(2.8)
(2.3)
(2.6)
Operating Costs per ASM excluding fuel (in US$ Cents)
6.3
6.2
6.5
* Restated for retrospective adoption of IFRS 15
Cision View original content:http://www.prnewswire.com/news-releases/copa-holdings-reports-net-income-of-136-5-million-and-eps-of-3-22-for-the-first-quarter-of-2018--300645626.html
SOURCE Copa Holdings, S.A.
Copyright 2018 PR Newswire
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