Welcome!

.NET Authors: Pat Romanski, Srinivasan Sundara Rajan, Tad Anderson, Adine Deford, Daniel Keeney

News Feed Item

Copa Holdings Reports Net Income of US$111.9 Million and EPS of US$2.52 for the Third Quarter of 2012

Excluding special items, adjusted net income came in at $97.6 million, or EPS of $2.20 per share

PANAMA CITY, Nov. 7, 2012 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the third quarter of 2012 (3Q12). 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 third quarter of 2011 (3Q11).

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported net income of US$111.9 million for 3Q12, or diluted earnings per share (EPS) of US$2.52.  Excluding special items, Copa Holdings would have reported adjusted net income of US$97.6 million, or US$2.20 per share, an 8.3% increase over adjusted net income of US$90.2 million and US$2.03 per share for 3Q11.
  • Operating income for 3Q12 came in at US$114.1 million, a 14.9% increase over operating income of US$99.3 million in 3Q11.  Operating margin for the period came in at 19.3%, compared to 20.9% in 3Q11, as a result of a 1.7% decline in unit revenues and a 0.4% increase in unit cost as a result of increased fuel costs.
  • Total revenues increased 24.5% to US$590.4 million.  Yield per passenger mile increased 1.1% to 17.3 cents, while operating revenue per available seat mile (RASM) decreased 1.7% to 13.5 cents.   However, adjusting for a 2.7% increase in average length of haul, adjusted yields increased 2.5% and adjusted RASM remained flat year over year.
  • For 3Q12, passenger traffic (RPMs) grew 23.8% on a 26.6% capacity expansion, resulting in a consolidated load factor of 75.4% compared to 77.1% in 3Q11.
  • Operating cost per available seat mile (CASM) came in at 10.9 cents, an increase of 0.4% over 3Q11, but 3.4% lower than 2Q12. CASM excluding fuel costs came in at 6.6 cents for a decrease of 0.2% over 3Q11 and 3.6% over 2Q12.  
  • Cash, short term and long term investments ended 3Q12 at US$795.5 million, representing 37% of the last twelve months' revenues.  
  • During the third quarter, Copa Airlines took delivery of two Boeing 737-800 aircraft.  As a result, Copa Holdings ended the quarter with a consolidated fleet of 82 aircraft.
  • For 3Q12, Copa Holdings reported consolidated on-time performance of 87.2% and a flight-completion factor of 99.6%.

Consolidated Financial & Operating Highlights

3Q12

3Q11

% Change

2Q12

% Change

Revenue Passengers Carried ('000)

1,869

1,551

20.5%

1,658

12.7%

RPMs (mm)

3,294

2,660

23.8%

2,886

14.1%

ASMs (mm)

4,367

3,450

26.6%

3,923

11.3%

Load Factor

75.4%

77.1%

-1.7 p.p.

73.5%

1.9 p.p.

Yield

17.3

17.1

1.1%

17.2

0.6%

PRASM (US$ Cents)

13.0

13.2

-1.1%

12.6

3.2%

RASM (US$ Cents)

13.5

13.7

-1.7%

13.1

2.8%

CASM (US$ Cents)

10.9

10.9

0.4%

11.3

-3.4%

CASM Excl. Fuel (US$ Cents)

6.6

6.6

-0.2%

6.9

-3.6%

Breakeven Load Factor (1)

59.8%

58.6%

1.2 p.p.

63.0%

-3.2 p.p.

Fuel Gallons Consumed (Millions)

57.7

45.3

27.2%

52.1

10.6%

Avg. Price Per Fuel Gallon (US$ Dollars)

3.24

3.22

0.7%

3.32

-2.5%

Average Length of Haul (Miles)

1,763

1,716

2.7%

1,740

1.3%

Average Stage Length (Miles)

1,083

1,058

2.3%

1,063

1.9%

Departures

29,344

24,728

18.7%

27,005

8.7%

Block Hours

82,103

65,159

26.0%

74,841

9.7%

Average Aircraft Utilization (Hours)

11.2

10.6

5.5%

10.6

5.5%

Operating Revenues (US$ mm)

590.4

474.3

24.5%

515.8

14.5%

Operating Income (US$ mm)

114.1

99.3

14.9%

72.6

57.1%

Operating Margin

19.3%

20.9%

-1.6 p.p.

14.1%

5.2 p.p.

Net Income (US$ mm)

111.9

70.3

59.1%

32.0

249.7%

Adjusted Net Income (US$ mm) (1)

97.6

90.2

8.3%

58.6

66.6%

EPS - Basic and Diluted (US$)

2.52

1.59

58.8%

0.72

249.3%

Adjusted EPS - Basic and Diluted (US$) (1)

2.20

2.03

8.1%

1.32

66.4%

# of Shares - Basic and Diluted ('000)

44,407

44,319

0.2%

44,354

0.1%


(1) Breakeven Load Factor, Adjusted Net Income and Adjusted EPS for 3Q12, 3Q11, and 2Q12 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-IFRS financial measures to the comparable IFRS measures.




FULL 3Q12 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: http://investor.shareholder.com/copa/results.cfm

3Q12 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST


Date:

November 8, 2012

Time:

4:00 PM US ET (4:00 PM 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


Victor Vial, Chief Financial Officer




Copa Holdings is a leading Latin American provider of passenger and cargo services.  The Company, through its operating subsidiaries, provides service to 64 destinations in 29 countries in North, Central and South America and the Caribbean with one of the youngest and most modern fleets in the industry, consisting of 83 aircraft: 57 Boeing 737NG aircraft and 26 EMBRAER-190s. For more information visit 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.

CPA-G

Copa Holdings, S.A.










Income Statement - IFRS










(US$ Thousands)





















Unaudited


Unaudited


%


Unaudited


%


3Q12


3Q11


Change


2Q12


Change

Operating Revenues










Passenger Revenue

568,564


454,078


25.2%


495,029


14.9%

Cargo, mail and other

21,884


20,184


8.4%


20,814


5.1%

Total Operating Revenue

590,448


474,261


24.5%


515,843


14.5%











Operating Expenses










Aircraft fuel

186,844


145,860


28.1%


173,289


7.8%

Salaries and benefits

62,964


54,199


16.2%


61,123


3.0%

Passenger servicing

56,973


41,095


38.6%


50,943


11.8%

Commissions

23,501


19,297


21.8%


21,272


10.5%

Reservations and sales

22,203


18,680


18.9%


20,586


7.9%

Maintenance, material and repairs

23,370


16,391


42.6%


23,954


-2.4%

Depreciation

23,031


19,350


19.0%


21,214


8.6%

Flight operations

27,217


22,111


23.1%


24,991


8.9%

Aircraft rentals

18,504


13,273


39.4%


17,191


7.6%

Landing fees and other rentals

12,190


11,069


10.1%


10,931


11.5%

Other

19,561


13,656


43.2%


17,730


10.3%

Total Operating Expense

476,359


374,979


27.0%


443,224


7.5%











Operating Income

114,089


99,282


14.9%


72,619


57.1%











Non-operating Income (Expense):










Interest expense

(8,124)


(8,144)


-0.3%


(8,583)


-5.3%

Interest capitalized

0


0


nm


0


nm

Interest income

3,235


1,795


80.3%


2,741


18.0%

Other, net

13,750


(18,228)


nm


(30,981)


nm

Total Non-Operating Income/(Expense)

8,861


(24,578)


nm


(36,823)


nm











Income before Income Taxes

122,951


74,705


64.6%


35,796


243.5%











Provision for Income Taxes

11,033


4,374


152.3%


3,790


191.1%











Net Income

111,917


70,331


59.1%


32,006


249.7%





















EPS - Basic and Diluted

2.52


1.59


58.8%


0.72


249.3%

Shares - Basic and Diluted

44,406,679


44,318,760


0.2%


44,353,845


0.1%



Copa Holdings, S.A.






Balance Sheet - IFRS






(US$ Thousands)


September 30,



December 31,



2012



2011



(Unaudited)



(Audited)

ASSETS






Current Assets:






Cash and cash equivalents


$          282,642



$        243,801

Short-term investments


441,349



262,345

Total cash, cash equivalents and short-term investments


723,991



506,146







Accounts receivable, net of allowance for doubtful accounts


143,057



142,297

Accounts receivable from related parties


505



704

Expendable parts and supplies, net of allowance for obsolescence


51,292



42,382

Prepaid expenses


49,745



40,058

Other current assets


17,964



22,655

Total Current Assets


986,554



754,242







Long-term investments


71,500



104,834







Property and Equipment:






Owned property and equipment:






Flight equipment


2,346,637



2,036,983

Other equipment


63,757



67,577



2,410,394



2,104,560

Less: Accumulated depreciation


(408,965)



(346,656)



2,001,429



1,757,904

Purchase deposits for flight equipment


163,696



242,287

Total Property and Equipment


2,165,125



2,000,191







Other Assets:






Net pension asset


9,685



8,974

Goodwill


27,081



25,099

Intangible asset


57,537



47,047

Other assets


120,776



125,409

Total Other Assets


215,079



206,529

Total Assets


$       3,438,258



$     3,065,796













LIABILITIES AND SHAREHOLDER'S EQUITY






Current Liabilities:






Current maturities of long-term debt


$          118,387



$        131,069

Accounts payable


105,609



92,842

Accounts payable to related parties


14,765



22,074

Air traffic liability


360,223



297,135

Taxes and interest payable


86,174



71,223

Accrued expenses payable


45,753



30,472

Other current liabilities


9,897



13,845

Total Current Liabilities


740,808



658,660







Non-Current Liabilities:






Long-term debt


1,067,549



936,657

Post employment benefits liability


6,286



5,847

Other long-term liabilities


44,635



44,657

Deferred tax liabilities


31,888



30,444

Total Non-Current Liabilities


1,150,358



1,017,605







Total Liabilities


1,891,166



1,676,265







Shareholders' Equity:






Class A - 33,391,400 shares issued and outstanding


22,496



22,495

Class B - 10,938,125 shares issued and outstanding


7,466



7,466

Additional paid in capital


38,977



33,567

Retained earnings


1,471,258



1,324,394

Accumulated other comprehensive income (loss)


6,895



1,609

Total Shareholders' Equity


1,547,092



1,389,531

Total Liabilities and Shareholders' Equity


$       3,438,258



$     3,065,796



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 Net Income







Excluding Special Items


3Q12


3Q11


2Q12








Net income as Reported


$111,917


$70,331


$32,006








Special Items (adjustments):







    Unrealized (gain) loss on fuel hedging instruments (1)


(14,277)


19,845


26,587

Adjusted Net Income


$97,640


$90,177


$58,593








Shares used for Computation (in thousands)







    Basic and Diluted


44,407


44,319


44,354








Adjusted earnings per share - Basic and Diluted


2.20


2.03


1.32








Reconciliation Operating Costs per ASM







Excluding Fuel and Special Items


3Q12


3Q11


2Q12








Operating Costs per ASM as Reported


10.9


10.9


11.3

Aircraft fuel per ASM


(4.3)


(4.2)


(4.4)

Operating Costs per ASM excluding fuel


6.6


6.6


6.9















FOOTNOTES:
(1) Includes unrealized (gains) losses resulting from the mark-to-market accounting for changes in the fair value of fuel hedging instruments.  For 3Q12, the Company recorded an unrealized fuel hedge gain of US$14.3 million, and for 3Q11 and 2Q12 it recorded fuel hedge losses of US$19.8 million and 26.6 million, respectively..




SOURCE Copa Holdings, S.A.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.