PANAMA CITY, Feb. 10 /PRNewswire-FirstCall/ -- Copa Holdings, S.A.
(NYSE:CPA), parent company of Copa Airlines and Aero Republica,
today announced financial results for the fourth quarter of 2009
(4Q09) and full year 2009. The terms "Copa Holdings" or "the
Company" refers to the consolidated entity, whose operating
subsidiaries are Copa Airlines and Aero Republica. The following
financial and operating information, unless otherwise indicated, is
presented in accordance with US GAAP. See the accompanying
reconciliation of non-GAAP financial information to GAAP financial
information included in financial tables section of this earnings
release. Unless otherwise stated, all comparisons with prior
periods refer to the fourth quarter of 2008 (4Q08). OPERATING AND
FINANCIAL HIGHLIGHTS -- Copa Holdings reported net income of
US$70.4 million for 4Q09 or diluted earnings per share (EPS) of
US$1.61, as compared to net income of US$25.8 million or diluted
EPS of US$0.59 in 4Q08. Excluding special items, which for 4Q09
include a special charge of US$4.8 million related to the accrual
of costs associated with the retirement of four MD-80 aircraft as a
result of Aero Republica's transition to an all Embraer-190 fleet
and a US$9.6 million non-cash gain associated with the
mark-to-market of fuel hedge contracts, Copa Holdings would have
reported an adjusted net income of US$65.7 million, compared to an
adjusted net income of US$65.2 million in 4Q08. -- Net income for
full year 2009 reached US$240.4 million or diluted EPS of US$5.50,
compared to US$118.7 million or diluted EPS of US$2.73 for full
year 2008. Excluding special items, which for 2009 include a
special charge of US$19.4 million related to the accrual of costs
associated with the retirement of four MD-80 aircraft as a result
of Aero Republica's transition to an all Embraer-190 fleet and a
US$58.0 million non-cash gain associated with the mark-to-market of
fuel hedge contracts, Copa Holdings would have reported an adjusted
net income of US$201.7 million compared to an adjusted net income
of US$173.5 for full year 2008, representing an increase of 16.3%.
-- Operating income for 4Q09 came in at US$71.8 million,
representing an operating margin of 20.9%, as compared to operating
income for 4Q08 of US$84.0 million. Excluding special fleet charges
of US$4.8 million, operating income would have been US$76.6
million, which would have represented an operating margin of 22.3%
for the quarter, down from 24.3% in 4Q08. -- The Company reported
operating income of US$223.3 million for full year 2009,
representing an operating margin of 17.8%, as compared to 17.4% in
2008. However, excluding special fleet charges of US$19.4 million
recorded in 2009, the adjusted operating margin for 2009 stood at
19.4%. -- Total revenues for 4Q09 decreased 0.9% to US$343.0
million. Yield per passenger mile decreased 11.7% to 16.4 cents and
operating revenue per available seat mile (RASM) decreased 5.8% to
13.7 cents. -- For 4Q09 consolidated passenger traffic grew 12.7%
while capacity increased 5.2%. As a result, consolidated load
factor for the quarter increased 5.3 percentage points to 79.4%.
For full year 2009 consolidated capacity increased 12%. --
Operating cost per available seat mile (CASM) decreased 1.6%, from
11.0 cents in 4Q08 to 10.9 cents in 4Q09. CASM, excluding fuel
costs and special items, increased 5.2% from 7.2 cents in 4Q08 to
7.6 cents in 4Q09, mainly due to higher salaries and benefits and
passenger related costs. -- Cash, short term and long term
investments ended 2009 at US$358.5 million, representing 29% of the
last twelve months' revenues. During 2009 the Company funded from
cash US$120 million in pre-delivery payments related to aircraft to
be delivered between 2010 and 2011. -- During the fourth quarter,
Copa Airlines took delivery of one Boeing 737-800, ending the year
with a consolidated fleet of 56 aircraft. -- For 2009, Copa
Airlines reported on-time performance of 87.6% and a
flight-completion factor of 99.4%, maintaining its position among
the best in the industry. Additionally, Aero Republica's on-time
performance came in at 90.1%, leading the Colombian market both in
domestic and international on-time performance. Subsequent Events
-- On January 8, 2010, the Venezuelan government announced its
decision to implement new fixed exchange rates effective January
11, 2010, which resulted in a significant devaluation of the
Bolivar against the U.S. dollar. The new regime applies two
distinct official rates depending on the applicable sector of the
economy. The first exchange rate, applicable to imported goods
characterized as essential, will be VEB 2.60 per U.S. dollar, and
the rate applicable to all other imported goods and services,
including the aviation sector, will be VEB 4.30 per U.S. dollar.
The Venezuelan government, however, has announced that it will
apply the exchange rate of VEB 2.60 per U.S. dollar to all
authorization requests pending approval by the Venezuela Central
Bank through January 8, 2010. We estimate that the Company will
incur losses related to the devaluation of these funds of
approximately US$21 million, which will be recorded in the first
quarter of 2010 in accordance with US GAAP. -- On February 10, our
Board of Directors approved the modification of the Company's
dividend policy, which had provided for an annual payment of
approximately 10% of our annual consolidated net income to our
shareholders. Effective immediately, the new dividend policy
provides for annual dividend payments in amounts up to 20% of our
annual consolidated net income to be paid pro rata among all our
shareholders. The determination of the annual dividend payment each
year will remain subject to approval by our Board of Directors and
compliance with applicable legal requirements. Consolidated
Financial & Variance Variance Variance Operating Highlights
4Q09 vs. 4Q08 vs. 3Q09 FY 2009 vs. 2008 RPMs (millions) 1,984 12.7%
2.8% 7,397 10.1% ASMs (mm) 2,498 5.2% -1.9% 9,911 12.1% Load Factor
79.4% 5.3 p.p. 3.6 p.p. 74.6% -1.3 p.p. Yield 16.4 -11.7% 2.7% 16.0
-11.5% PRASM (cents) 13.0 -5.3% 7.5% 12.0 -13.0% RASM (cents) 13.7
-5.8% 8.0% 12.6 -13.2% CASM (cents) 10.9 -1.6% -0.5% 10.4 -13.7%
Adjusted CASM (cents) (1) 10.7 -3.3% 3.1% 10.2 -15.3% CASM Excl.
Fuel (cents) 7.7 7.9% 0.1% 7.4 -1.5% Adjusted CASM Excl. Fuel
(cents) (1) 7.6 5.2% 5.4% 7.2 -4.1% Breakeven Load Factor (3) 60.0%
-1.0 p.p. -4.5 p.p. 59.2% -3.8 p.p. Operating Revenues (US$ mm)
343.0 -0.9% 5.9% 1,253.1 -2.8% EBITDAR (US$ mm) (2) 109.6 64.5%
37.6% 391.8 47.1% Adjusted EBITDAR (US$ mm) (2)(3) 104.9 -1.2%
17.8% 353.2 10.0% EBITDAR Margin (2) 32.0% 12.7 p.p. 7.4 p.p. 31.3%
10.6 p.p. Adjusted EBITDAR Margin (2)(3) 30.6% -0.1 p.p. 3.0 p.p.
28.2% 3.3 p.p. Operating Income (US$ mm) 71.8 -14.6% 56.3% 223.3
-0.3% Adjusted Operating Income (US$ mm) (1) 76.6 -8.8% 26.6% 242.7
8.4% Operating Margin 20.9% -3.4 p.p. 6.7 p.p. 17.8% 0.4 p.p.
Adjusted Operating Margin (1) 22.3% -1.9 p.p. 3.6 p.p. 19.4% 2.0
p.p. Net Income (US$ mm) 70.4 173.5% 63.3% 240.4 102.6% Adjusted
Net Income (US$ mm) (3) 65.7 0.7% 25.0% 201.7 16.3% EPS - Basic
(US$) 1.63 171.2% 63.3% 5.55 101.8% Adjusted EPS - Basic (US$) (3)
1.52 0.3% 24.7% 4.66 15.8% EPS - Diluted (US$) 1.61 171.8% 63.3%
5.50 101.5% Adjusted EPS - Diluted (US$) (3) 1.50 -0.1% 24.6% 4.62
15.7% Weighted Avg. # of Shares - Basic (000) 43,344 0.3% 0.0%
43,308 0.4% Weighted Avg. # of Shares - Diluted (000) 43,763 0.8%
0.1% 43,672 0.5% (1) Adjusted Operating Income, Adjusted Operating
Margin and Adjusted CASM for 4Q09, 3Q09 and 2009 exclude special
charges related to the accrual of costs associated with the
retirement of four MD-80 aircraft as a result of Aero Republica's
transition to an all Embraer-190 fleet. (2) EBITDAR means earnings
before interest, taxes, depreciation, amortization and rent. (3)
Adjusted EBITDAR, Adjusted EBITDAR Margin, Breakeven Load Factor,
Adjusted Net Income and Adjusted EPS (Basic and Diluted) exclude:
a) For 4Q09, 3Q09 and 2009 exclude special charges related to the
accrual of costs associated with the retirement of four MD-80
aircraft as a result of Aero Republica's transition to an all
Embraer-190 fleet and b) For 4Q09, 4Q08, 3Q09, 2009 and 2008
exclude non-cash charges/gains associated with the mark- to-market
of fuel hedges. Note: Attached to this press release is a
reconciliation of non-GAAP financial measures to the comparable US
GAAP measures. Full 4Q09 earnings release available for download
at: http://investor.shareholder.com/copa/results.cfm 4Q09 EARNINGS
RESULTS CONFERENCE CALL AND WEBCAST Date: February 11, 2019 Time:
11:00 a.m. EST (11:00 a.m. Panama Time) Conference Call: Telephone
Number: 888-208-1386 (U.S. Domestic Callers) 913-312-0694
(International Callers) Webcast Link:
http://investor.shareholder.com/copa/events.cfm About Copa
Holdings: Copa Holdings, through its Copa Airlines and Aero
Republica operating subsidiaries, is a leading Latin American
provider of passenger and cargo services. Copa Airlines currently
offers approximately 152 daily scheduled flights to 45 destinations
in 24 countries in North, Central and South America and the
Caribbean. In addition, Copa Airlines provides passengers with
access to flights to more than 120 other international destinations
through code share agreements with Continental Airlines and other
airlines. Aero Republica provides service to 12 cities in Colombia
as well as international connectivity with Copa Airlines' Hub of
the Americas through flights from Barranquilla, Bogota,
Bucaramanga, Cali, Cartagena, Medellin and Pereira. Additionally,
Aero Republica has international flights from Colombia to Caracas
and Quito. For more information, visit http://www.copaair.com/.
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. Copa Holdings,
S.A. NON-GAAP FINANCIAL MEASURE RECONCILIATION This press release
includes the following non GAAP financial measures: Adjusted CASM,
Adjusted CASM Excluding Fuel, Adjusted EBITDAR, Adjusted Operating
Income, Adjusted Net Income and Adjusted EPS. This supplemental
information is presented because we believe they are useful
indicators of our operating performance and are 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 US GAAP measures, in particular
operating income and net income. The following is a reconciliation
of these non-GAAP financial measures to the comparable US GAAP
measures: Reconciliation of EBITDAR Excluding Special Items 4Q09
4Q08 3Q09 2009 2008 Net income as Reported $70,442 $25,755 $43,139
$240,358 $118,659 Interest Expense (7,392) (10,891) (8,090)
(32,938) (42,071) Capitalized Interest 1 525 141 693 1,921 Interest
Income 2,194 2,863 2,217 9,185 11,130 Income Taxes (7,686) (8,113)
(3,168) (19,610) (17,469) EBIT 83,325 41,371 52,039 283,029 165,148
Depreciation and Amortization 11,264 11,326 11,926 47,079 42,891
EBITDA 94,589 52,697 63,965 330,108 208,039 Aircraft Rent 10,774
10,078 11,911 46,538 43,008 Other Rentals 4,267 3,873 3,772 15,196
15,293 EBITDAR $109,631 $66,648 $79,648 $391,841 $266,341 Special
Items (adjustments): Unrealized (gain) loss on fuel hedging
instruments (1) (9,593) 39,462 (5,214) (58,040) 54,846 Special
Items (2) 4,818 - 14,599 19,417 - Adjusted EBITDAR $104,855
$106,111 $89,032 $353,218 $321,187 Reconciliation of Operating
Income Excluding Special Items 4Q09 4Q08 3Q09 2009 2008 Operating
Income as Reported $71,757 $84,010 $45,900 $223,326 $223,991
Special Items (adjustments): Special Items, net (2) 4,818 - 14,599
19,417 - Adjusted Operating Income $76,575 $84,010 $60,499 $242,743
$223,991 Reconciliation of Net Income Excluding Special Items 4Q09
4Q08 3Q09 2009 2008 Net income as Reported $70,442 $25,755 $43,139
$240,358 $118,659 Special Items (adjustments): Unrealized (gain)
loss on fuel hedging instruments (1) (9,593) 39,462 (5,214)
(58,040) 54,846 Special Items, net (2) 4,818 - 14,599 19,417 -
Adjusted Net Income $65,667 $65,217 $52,523 $201,735 $173,505
Shares used for Computation (in thousands) Basic 43,344 43,195
43,344 43,308 43,143 Diluted 43,763 43,426 43,710 43,672 43,440
Adjusted earnings per share Basic 1.52 1.51 1.21 4.66 4.02 Diluted
1.50 1.50 1.20 4.62 3.99 Reconciliation Operating Costs per ASM
Excluding Fuel and Special Items 4Q09 4Q08 3Q09 2009 2008 Operating
Costs per ASM as Reported 10.9 11.0 10.9 10.4 12.0 Aircraft fuel
per ASM (3.1) (3.8) (3.2) (3.0) (4.6) Operating Costs per ASM
excluding fuel 7.7 7.2 7.7 7.4 7.5 Special Items (adjustments):
Special Items per ASM, net (2) (0.2) - (0.6) (0.2) - Operating
expenses excluding fuel and special items 7.6 7.2 7.2 7.2 7.5
FOOTNOTES: (1) Include unrealized (gains) losses resulting from the
mark-to-market accounting for changes in the fair value of fuel
hedging instruments. For 4Q09, 3Q09 and full year 2009 the Company
recorded unrealized fuel hedge gains of US$9.6 million, US$5.2
million and US$58.0 million, respectively. For 4Q08 and full year
2008 the Company recorded unrealized fuel hedge losses of US$39.5
million and US$54.8 million, respectively. (2) Special items
include for 4Q09, 3Q09 and 2009 exclude special charges related to
the accrual of costs associated with the retirement of four MD-80
aircraft as a result of Aero Republica's transition to an all
Embraer-190 fleet CPA-G DATASOURCE: Copa Holdings S.A. CONTACT:
Copa Holdings S.A. Investor Relations, +011-507-304-2677 Web site:
http://investor.shareholder.com/copa/contactus.cfm
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