PANAMA CITY,
Feb. 19 /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 2008 (4Q08) and full
year 2008. 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. Unless otherwise stated,
all comparisons with prior periods refer to the fourth quarter of 2007 (4Q07).
OPERATING AND FINANCIAL HIGHLIGHTS
-- Copa Holdings reported net income of US$51.9 million for 4Q08 or
diluted earnings per share (EPS) of US$1.20, as compared to net income of
US$35.5 million or diluted EPS of US$0.82 in 4Q07. Excluding special items,
which for 4Q08 include a US$12.2 million non-cash charge associated with the
mark-to-market of fuel hedge contracts, Copa Holdings would have reported an
adjusted net income of $64.1 million, or $1.48 per share. See the
accompanying reconciliation of non-GAAP financial information to GAAP
financial information included in financial tables section of this earnings
release.
-- Net income for full year 2008 reached US$152.2 million or diluted EPS
of US$3.50, compared to US$161.8 million or diluted EPS of US$3.72 for full
year 2007. Excluding special items, which for 2008 include a US$20.2 million
non-cash charge associated with the mark-to-market of fuel hedge contracts,
Copa Holdings would have reported an adjusted net income of $172.4 million, or
$3.97 per share.
-- The Company reported record operating income for 4Q08, reaching US$84.0
million, a 95.5% increase compared to operating income of US$43.0 million
recorded in 4Q07. Operating margin increased 9.2 percentage points, from 15.1%
in 4Q07 to 24.3% in 4Q08, mainly due higher unit revenues.
-- The Company reported operating income of US$224.0 million for full year
2008, a 13.4% increase as compared to operating income of US$197.5 million in
2007. Operating margin for 2008 reached 17.4%, one of the best margins in the
airline industry.
-- Total revenues for 4Q08 increased 21.6% to US$346.1 million. Yield per
passenger mile increased 6.0% to 18.5 cents and operating revenue per
available seat mile (RASM) increased 5.8% to 14.6 cents.
-- For 4Q08 consolidated passenger traffic grew 15.5% while capacity
increased 15.0%. As a result, consolidated load factor for the quarter
increased 0.3 percentage points to 74.1%.
-- Operating cost per available seat mile (CASM) decreased 5.7%, from 11.7
cents in 4Q07 to 11.0 cents in 4Q08. CASM, excluding fuel costs and special
items, decreased 5.4% from 7.6 cents in 4Q07 to 7.2 cents in 4Q08, mainly due
to lower average commissions.
-- The Company ended the year with a strong cash position, totaling
US$408.1 million in cash, short term and long term investment, which represent
approximately 32% of last twelve months´ revenues. This figure includes
US$47.3 million in restricted cash, of which $39.7 million are collateral for
out-of-money hedge contracts related to future quarters. Additionally, the
company has committed lines of credit totaling $31.1 million.
-- In 4Q08, Copa Airlines began service to three new destinations:
Oranjestad (Aruba), Valencia (Venezuela) and Santa Cruz (Bolivia). Copa
Airlines' network currently serves 45 destinations in 24 countries in the
Americas -- by far, the most extensive network for intra-Latin American
travel.
-- During the fourth quarter, Copa Airlines took delivery of two Embraer-
190 aircraft. Copa Airlines ended the year with a fleet of 42 aircraft,
consisting of 27 Boeing 737 Next Generation aircraft and 15 Embraer-190
aircraft. Copa Holdings ended the year with a consolidated fleet of 55
aircraft.
-- For 2008, Copa Airlines reported on-time performance of 87.5% and a
flight-completion factor of 99.6%, maintaining its position among the best in
the industry. Additionally, Aero Republica's on-time performance came in at
84.2%, leading the Colombian market both in domestic and international on-time
performance.
Consolidated Financial Variance Variance Variance
& Operating Highlights 4Q08 vs. 4Q07 vs. 3Q08 FY2008 vs. 2007
RPMs (millions) 1,760 15.5% -1.1% 6,717 14.6%
ASMs (mm) 2,375 15.0% 3.3% 8,845 11.7%
Load Factor 74.1% 0.3 p.p. -3.3 p.p. 75.9% 1.9 p.p.
Yield 18.5 6.0% -0.3% 18.1 9.8%
PRASM (cents) 13.7 6.5% -4.5% 13.8 12.7%
RASM (cents) 14.6 5.8% -4.0% 14.6 12.3%
CASM (cents) 11.0 -5.7% -13.1% 12.0 14.9%
Adjusted CASM (cents) (1) 11.0 -3.1% -13.1% 12.0 14.7%
Adjusted CASM Excl. Fuel
(cents) (1) 7.2 -5.4% -1.2% 7.5 4.6%
Breakeven Load Factor 56.9% -4.1 p.p. -7.6 p.p. 63.0% 8.5 p.p.
Operating Revenues (US$ mm) 346.1 21.6% -0.8% 1,288.8 25.5%
EBITDAR (US$ mm) (2) 94.0 30.2% 47.0% 301.0 2.4%
Adjusted EBITDAR
(US$ mm) (2)(3) 106.1 44.3% 33.7% 321.2 13.0%
EBITDAR Margin (2) 27.1% 1.8 p.p. 8.8 p.p. 23.4% -5.3 p.p.
Adjusted EBITDAR
Margin (2)(3) 30.7% 4.8 p.p. 7.9 p.p. 24.9% -2.7 p.p.
Operating Income (US$ mm) 84.0 95.5% 47.3% 224.0 13.4%
Adjusted Operating Income
(US$ mm)(1) 84.0 70.5% 47.3% 224.0 13.8%
Operating Margin 24.3% 9.2 p.p. 7.9 p.p. 17.4% -1.8 p.p.
Adjusted Operating
Margin (1) 24.3% 7.0 p.p. 7.9 p.p. 17.4% -1.8 p.p.
Net Income (US$ mm) 51.9 46.1% 71.1% 152.2 -6.0%
Adjusted Net Income
(US$ mm) (3) 64.1 73.7% 39.8% 172.4 13.4%
EPS - Basic (US$) 1.20 45.3% 71.1% 3.53 -6.5%
Adjusted EPS - Basic
(US$) (3) 1.48 72.7% 39.8% 4.00 12.8%
EPS - Diluted (US$) 1.20 46.1% 71.4% 3.50 -5.9%
Adjusted EPS - Diluted
(US$) (3) 1.48 73.6% 40.1% 3.97 13.4%
Weighted Avg. # of Shares
- Basic (000) 43,195 0.6% 0.0% 43,143 0.5%
Weighted Avg. # of Shares
- Diluted (000) 43,426 0.1% -0.1% 43,440 -0.1%
(1) Adjusted Operating Income and Adjusted CASM exclude for full year 2007
a US$8.0 million pre-tax non-recurring gain related to insurance
proceeds in excess of aircraft book value and special charges of
US$6.3 million for 4Q07 and US$7.3 million for full year 2007 related
to the early termination of MD-80 aircraft leases as a result of Aero
Republica's ongoing transition to an all EMBRAER-190 fleet.
(2) EBITDAR means earnings before interest, taxes, depreciation,
amortization and rent.
(3) Adjusted EBITDAR, Adjusted Net Income and Adjusted EPS (Basic and
Diluted): a) Excludes for full year 2007 a US$8.0 million pre-tax
non-recurring gain related to insurance proceeds in excess of aircraft
book value and special charges of US$6.3 million for 4Q07 and
US$7.3 million for full year 2007 related to the early termination of
MD-80 aircraft leases as a result of Aero Republica's ongoing
transition to an all EMBRAER-190 fleet and b) Excludes 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 4Q08 earnings release available to download on:
http://investor.shareholder.com/copa/results.cfm
4Q08 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date: February 19, 2009
Time: 11:00 a.m. US EST (11:00 a.m. Panama Time)
Conference Call:
Telephone Number: 877-857-6173 (U.S. Domestic Callers)
719-325-4745 (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
service. Copa Airlines currently offers approximately 144 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,
the second-largest domestic carrier in Colombia, provides service to 12 cities
in Colombia as well as international connectivity with Copa Airlines' Hub of
the Americas through flights from Bogota, Bucaramanga, Cali, Cartagena,
Medellin and Pereira. Additionally, in May 2008 Aero Republica increased
international service by launching direct daily flights to Caracas, Venezuela
from the cities of Bogota and Medellin.
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 4Q08 4Q07 3Q08 2008 2007
Net income as Reported $51,918 $35,526 $30,343 $152,191 $161,820
Interest Expense (10,891) (12,567) (10,385) (42,071) (44,332)
Capitalized Interest 525 584 391 1,921 2,570
Interest Income 2,863 3,361 2,903 11,130 12,193
Income Taxes (9,253) (5,058) (1,745) (18,609) (17,106)
EBIT 68,674 49,206 39,179 199,820 208,495
Depreciation and
Amortization 11,326 9,821 11,132 42,891 35,328
EBITDA 80,000 59,027 50,311 242,711 243,823
Aircraft Rent 10,078 9,692 10,245 43,008 38,636
Other Rentals 3,873 3,461 3,341 15,293 11,536
EBITDAR $93,951 $72,180 $63,897 $301,013 $293,995
Special Items (adjustments):
Unrealized (gain) loss
on fuel hedging
instruments (1) 12,160 (4,932) 15,479 20,175 (9,095)
Special Items (2) - 6,300 - - (710)
Adjusted EBITDAR $106,112 $73,547 $79,376 $321,188 $284,191
Reconciliation of
Operating Income
Excluding Special Items 4Q08 4Q07 3Q08 2008 2007
Operating Income as
Reported $84,047 $42,991 $57,073 $224,028 $197,509
Special Items (adjustments):
Special Items, net (2) - 6,300 - - (710)
Adjusted Operating Income $84,047 $49,291 $57,073 $224,028 $196,799
Reconciliation of Net
Income Excluding Special
Items 4Q08 4Q07 3Q08 2008 2007
Net income as Reported $51,918 $35,526 $30,343 $152,191 $161,820
Special Items (adjustments):
Unrealized (gain) loss
on fuel hedging
instruments (1) 12,160 (4,932) 15,479 20,175 (9,095)
Special Items, net (2) - 6,300 - - (710)
Adjusted Net Income $64,078 $36,893 $45,822 $172,366 $152,016
Shares used for Computation
(in thousands)
Basic 43,195 42,985 43,195 43,143 42,908
Diluted 43,426 43,433 43,491 43,440 43,464
Adjusted earnings per share
Basic 1.48 0.86 1.06 4.00 3.54
Diluted 1.48 0.85 1.05 3.97 3.50
Reconciliation Operating
Costs per ASM Excluding
Fuel and Special Items 4Q08 4Q07 3Q08 2008 2007
Operating Costs per ASM
as Reported 11.0 11.7 12.7 12.0 10.5
Aircraft fuel per ASM 3.8 3.8 5.4 4.6 3.4
Operating Costs per ASM
excluding fuel 7.2 7.9 7.3 7.5 7.1
Special Items (adjustments):
Special Items per ASM,
net (2) - (0.3) - - 0.0
Operating expenses excluding
fuel and special items 7.2 7.6 7.3 7.5 7.1
FOOTNOTES:
(1) Include unrealized (gains) losses resulting from the mark-to-market
accounting for changes in the fair value of fuel hedging instruments.
For 4Q08, 3Q08 and full year 2008 the Company recorded unrealized
fuel hedge losses of US$12.2 million, US$15.5 million and US$20.2
million, respectively. For 4Q07 and full year 2007 the Company
recorded unrealized fuel hedge gains of US$4.9 million and US$9.1
million, respectively.
(2) Special items include for the 4Q07 period a US$6.3 million special
charge related to the early termination of MD-80 aircraft leases, as
a result of Aero Republica's ongoing transition to an all EMBRAER-190
fleet. Special items include for full year 2007 include a US$8.0
million non-recurring gain related to insurance proceeds in excess of
aircraft book value and a US$7.3 million special charge related to
the early termination of MD-80 aircraft leases, as a result of Aero
Republica's ongoing transition to an all EMBRAER-190 fleet.
CPA-G
Print This Page
Email This Page
Archives
Copyright Permissions
