Excluding special items, adjusted net income came in at $100.3 million, or Adjusted EPS of $2.36
PANAMA CITY, — Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the fourth quarter of 2017 (4Q17) and full year 2017. The terms “Copa Holdings” and “the Company” refer to the consolidated entity. The following financial information, unless otherwise indicated, is presented in accordance with International Financial Reporting Standards (IFRS). See the accompanying reconciliation of non-IFRS financial information to IFRS financial information included in the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the fourth quarter of 2016 (4Q16).
The financial information included in this press release is preliminary as the Company has not yet issued its audited financial statements and may differ from those results. During the course of the preparation of the financial statements and related notes and our year-end audit, additional items that would require material adjustments to the preliminary financial information included in this press release may be identified.
OPERATING AND FINANCIAL HIGHLIGHTS
Subsequent Events
Consolidated Financial |
4Q17 |
4Q16 |
Variance vs. 4Q16 |
3Q17 |
Variance vs. 3Q17 |
FY 2017 |
FY 2016 |
Variance vs. 2016 |
Revenue Passengers Carried (‘000) |
2,460 |
2,199 |
11.9% |
2,518 |
-2.3% |
9,504 |
8,560 |
11.0% |
RPMs (mm) |
5,086 |
4,568 |
11.3% |
5,330 |
-4.6% |
19,914 |
17,690 |
12.6% |
ASMs (mm) |
6,111 |
5,597 |
9.2% |
6,221 |
-1.8% |
23,936 |
22,004 |
8.8% |
Load Factor |
83.2% |
81.6% |
1.6 p.p. |
85.7% |
-2.4 p.p. |
83.2% |
80.4% |
2.8 p.p. |
Yield |
12.9 |
12.8 |
1.2% |
12.0 |
7.5% |
12.4 |
12.2 |
1.5% |
PRASM (US$ Cents) |
10.8 |
10.4 |
3.2% |
10.3 |
4.5% |
10.3 |
9.8 |
5.0% |
RASM (US$ Cents) |
11.1 |
10.7 |
2.9% |
10.6 |
4.7% |
10.6 |
10.1 |
4.6% |
CASM (US$ Cents) |
9.1 |
9.5 |
-4.2% |
8.6 |
5.0% |
8.7 |
8.8 |
-1.4% |
CASM Excl. Fuel (US$ Cents) |
6.5 |
6.9 |
-6.7% |
6.3 |
2.7% |
6.3 |
6.4 |
-1.7% |
Fuel Gallons Consumed (Millions) |
78.7 |
72.4 |
8.8% |
80.0 |
-1.6% |
307.0 |
284.3 |
8.0% |
Avg. Price Per Fuel Gallon (US$ Dollars) |
2.03 |
1.96 |
3.5% |
1.82 |
11.0% |
1.87 |
1.86 |
0.5% |
Average Length of Haul (Miles) |
2,067 |
2,078 |
-0.5% |
2,117 |
-2.3% |
2,095 |
2,067 |
1.4% |
Average Stage Length (Miles) |
1,292 |
1,244 |
3.9% |
1,300 |
-0.6% |
1,282 |
1,213 |
5.7% |
Departures |
32,183 |
30,499 |
5.5% |
32,593 |
-1.3% |
126,963 |
123,098 |
3.1% |
Block Hours |
106,750 |
98,150 |
8.8% |
108,930 |
-2.0% |
419,610 |
388,058 |
8.1% |
Average Aircraft Utilization (Hours) |
11.6 |
10.8 |
7.7% |
11.7 |
-1.2% |
11.4 |
10.6 |
7.9% |
Operating Revenues (US$ mm) |
675.6 |
601.3 |
12.4% |
657.2 |
2.8% |
2,527.6 |
2,221.8 |
13.8% |
Operating Income (US$ mm) |
120.4 |
70.6 |
70.4% |
119.1 |
1.1% |
440.1 |
276.1 |
59.4% |
Operating Margin |
17.8% |
11.7% |
6.1 p.p. |
18.1% |
-0.3 p.p. |
17.4% |
12.4% |
5.0 p.p. |
Net Income (US$ mm) |
100.8 |
90.5 |
11.4% |
103.8 |
-2.8% |
370.0 |
334.5 |
10.6% |
Adjusted Net Income (US$ mm) (1) |
100.3 |
54.7 |
83.4% |
100.8 |
-0.5% |
367.2 |
201.4 |
82.4% |
EPS – Basic and Diluted (US$) |
2.38 |
2.14 |
11.3% |
2.45 |
-2.8% |
8.72 |
7.90 |
10.4% |
Adjusted EPS – Basic and Diluted (US$) (1) |
2.36 |
1.29 |
83.2% |
2.38 |
-0.5% |
8.66 |
4.75 |
82.1% |
# of Shares – Basic and Diluted (‘000) |
42,430 |
42,383 |
0.1% |
42,430 |
0.0% |
42,419 |
42,358 |
0.1% |
(1) Adjusted Net Income and Adjusted EPS for 4Q17, 4Q16, 3Q17, 2017 and 2016 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges and the impact of the Venezuelan currency devaluations.
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
FULL 4Q17 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: http://investor.shareholder.com/copa/results.cfm
4Q17 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date: |
Feb 22, 2018 |
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Time: |
11:00 AM US ET (11:00 AM Local Time) |
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Conference telephone number: |
877-293-5456 (US Domestic Callers) |
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707-287-9357 (International Callers) |
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Webcast: |
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Speakers: |
Pedro Heilbron, Chief Executive Officer |
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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 75 destinations in 31 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: 81 Boeing 737NG aircraft and 20 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
* During 2017, the Company implemented a business, planning and financial consolidation system, which resulted in a new classification of the chart of accounts. Prior periods have been reclassified for ease of comparison.
Copa Holdings, S. A. and subsidiaries |
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Balance Sheet – IFRS |
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(US$ Thousands) |
December 31 |
December 31 |
2017 |
2016 |
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(Unaudited) |
Audited* |
|
ASSETS |
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Current Assets |
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Cash and cash equivalents |
238,792 |
331,687 |
Restricted cash and cash equivalents |
– |
– |
Short-term investments |
705,108 |
483,002 |
Total cash, cash equivalents and short-term investments |
943,900 |
814,689 |
Accounts receivable, net |
115,323 |
113,408 |
Accounts receivable from related parties |
318 |
499 |
Expendable parts and supplies, net |
81,825 |
74,502 |
Prepaid expenses |
45,421 |
58,370 |
Other current assets |
11,701 |
7,650 |
TOTAL CURRENT ASSETS |
1,198,488 |
1,069,118 |
Long-term investments |
65,953 |
953 |
Long-term accounts receivable |
2,444 |
1,957 |
Long-term prepaid expenses |
26,130 |
26,398 |
Property and equipment, net |
2,825,904 |
2,623,682 |
Intangible, net |
81,115 |
69,502 |
Net pension asset |
3,185 |
8,826 |
Deferred tax assets |
18,571 |
18,339 |
Other Non-Current Assets |
31,140 |
27,064 |
TOTAL NON-CURRENT ASSETS |
3,054,442 |
2,776,721 |
TOTAL ASSETS |
4,252,930 |
3,845,839 |
LIABILITIES AND EQUITY |
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Current Liabilities: |
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Current maturities of long-term debt |
298,462 |
222,718 |
Accounts payable |
125,613 |
104,590 |
Accounts payable to related parties |
12,880 |
8,680 |
Air traffic liability |
470,692 |
395,580 |
Frequent flyer deferred revenue |
13,186 |
9,044 |
Taxes and interest payable |
81,440 |
68,483 |
Employee benefits obligations |
51,262 |
41,707 |
Income tax payable |
3,700 |
1,401 |
Other Current Liabilities |
1,156 |
4,385 |
TOTAL CURRENT LIABILITIES |
1,058,391 |
856,588 |
Long-term debt |
876,119 |
961,414 |
Frequent flyer deferred revenue long term |
33,115 |
26,324 |
Other long – term liabilities |
123,182 |
114,268 |
Deferred tax Liabilities |
50,628 |
44,974 |
TOTAL NON-CURRENT LIABILITIES |
1,083,044 |
1,146,980 |
TOTAL LIABILITIES |
2,141,435 |
2,003,568 |
EQUITY |
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Issued Capital |
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Class A – 33,776,480 issued and 31,185,641 outstanding |
21,030 |
20,988 |
Class B – 10,938,125 shares issued and outstanding |
7,466 |
7,466 |
Additional Paid-In Capital |
72,953 |
64,986 |
Treasury Stock |
(136,388) |
(136,388) |
Retained Earnings |
1,780,299 |
1,552,547 |
Net Income |
370,023 |
334,544 |
Other Comprehensive Income |
(3,888) |
(1,872) |
TOTAL EQUITY |
2,111,495 |
1,842,271 |
TOTAL LIABILITIES AND EQUITY |
4,252,930 |
3,845,839 |
* During 2017, the Company implemented a business, planning and financial consolidation system, which resulted in a new classification of the chart of accounts. Prior periods have been reclassified for ease of comparison.