Copa Holidings reports a 1Q net profit of $113.8 million

Copa Holdings, S.A. (Copa Airlines) (Panama City) has announced financial results for the first quarter of 2013 (1Q13). The terms “Copa Holdings” or “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 financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the first quarter of 2012 (1Q12).

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported net income of US$113.8 million for 1Q13, or diluted earnings per share (EPS) of US$2.56.  Excluding special items, Copa Holdings would have reported an adjusted net income of $124.4 million, or $2.80 per share, a 37.3% increase over adjusted net income of US$90.6 million and US$2.04 per share for 1Q12.
  • Operating income for 1Q13 came in at US$142.6 million, a 27.9% increase over operating income of US$111.6 million in 1Q12.  Operating margin for the period came in at 22.2%, compared to 20.5% in 1Q12, as a result of lower unit costs.
  • Total revenues increased 18.0% to US$641.3 million.  Yield per passenger mile decreased 0.8% to 17.6 cents and operating revenue per available seat mile (RASM) decreased 1.5% to 14.0 cents.  However, adjusting for a 6.3% increase in length of haul, yields and RASM increased 2.2% and 1.5%, respectively.
  • For 1Q13, robust demand trends resulted in passenger traffic (RPMs) growth of 19.5% on a 19.9% capacity expansion.  Consolidated load factor came in at 76.9%, or 0.3 percentage points below 1Q12.
  • Operating cost per available seat mile (CASM) decreased 3.6%, from 11.3 cents in 1Q12 to 10.9 cents in 1Q13.  CASM, excluding fuel, decreased 4.7% to 6.5 cents.
  • Cash, short term and long term investments ended 1Q13 at US$733.4 million, representing 31.2% of the last twelve months’ revenues.
  •  During the first quarter, Copa Airlines took delivery of two Boeing 737-800 aircraft.  As a result, Copa Holdings ended the quarter with a consolidated fleet of 85 aircraft.
  • For 1Q13, Copa Holdings reported consolidated on-time performance of 90.0% and a flight-completion factor of 99.7%, maintaining its position among the best in the industry.
Consolidated Financial &
Operating Highlights
1Q13 1Q12 % Change 4Q12 % Change
Revenue Passengers Carried (‘000) 1,926 1,714 12.4% 1,899 1.4%
RPMs (mm) 3,529 2,954 19.5% 3,366 4.8%
ASMs (mm) 4,590 3,829 19.9% 4,447 3.2%
Load Factor 76.9% 77.2% -0.3 p.p. 75.7% 1.2 p.p.
Yield 17.6 17.7 -0.8% 17.1 2.8%
PRASM (US$ Cents) 13.5 13.7 -1.2% 12.9 4.4%
RASM (US$ Cents) 14.0 14.2 -1.5% 13.5 3.6%
CASM (US$ Cents) 10.9 11.3 -3.6% 11.1 -2.5%
CASM Excl. Fuel (US$ Cents) 6.5 6.8 -4.7% 6.8 -4.1%
Breakeven Load Factor (1) 58.7% 61.2% -2.5 p.p. 61.6% -2.9 p.p.
Fuel Gallons Consumed (Millions) 60.1 51.3 17.1% 58.4 2.9%
Avg. Price Per Fuel Gallon (US$ Dollars) 3.34 3.33 0.4% 3.34 0.1%
Average Length of Haul (Miles) 1,832 1,724 6.3% 1,772 3.4%
Average Stage Length (Miles) 1,123 1,066 5.4% 1,090 3.1%
Departures 29,428 26,647 10.4% 29,555 -0.4%
Block Hours 84,490 73,394 15.1% 83,146 1.6%
Average Aircraft Utilization (Hours) 11.3 10.9 3.1% 11.0 2.7%
Operating Revenues (US$ mm) 641.3 543.3 18.0% 599.8 6.9%
Operating Income (US$ mm) 142.6 111.6 27.9% 104.3 36.8%
Operating Margin 22.2% 20.5% 1.7 p.p. 17.4% 4.9 p.p.
Net Income (US$ mm) 113.8 95.9 18.7% 86.6 31.4%
Adjusted Net Income (US$ mm) (1) 124.4 90.6 37.3% 89.3 39.3%
EPS – Basic and Diluted (US$) 2.56 2.16 18.5% 1.95 31.5%
Adjusted EPS – Basic and Diluted (US$) (1) 2.80 2.04 37.1% 2.01 39.4%
# of Shares – Basic and Diluted (‘000) 44,387 44,341 0.1% 44,409 0.0%

(1) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 1Q13, 1Q12, and 4Q12 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges.   Additionally, for 1Q13 excludes a US$13.9 million charge related to the devaluation of the Venezuelan currency.
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-86N WL HP-1826CMP (msn 38031) approaches the runway for landing at Los Angeles International Airport.

Copa Airlines: AG Slide Show

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