SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
Report
on Form 6-K dated for the month of
February, 2011
Copa
Holdings, S.A.
(Translation
of Registrant's Name Into English)
Boulevard
Costa del Este, Avenida Principal y Avenida de la Rotonda
Urbanización
Costa del Este
Parque
Lefevre
Panama
City, Panama
(Address
of principal executive offices)
(Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.)
Form
20-F x Form
40-F o
(Indicate
by check whether the registrant by furnishing the information contained in this
Form is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes o No x
(If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b);82- )
Enclosure: Press Release - Copa Holdings Reports Net Income of US$92.8 Million for the Fourth Quarter of 2010 and US$212.1 Million for Full Year 2010
Copa
Holdings Reports Net Income of US$92.8 Million for the Fourth Quarter of 2010
and US$212.1 Million for Full Year 2010
Excluding
special items, net Income for the year was $219.2 million
Panama City, Panama —
February 10, 2011. Copa Holdings, S.A. (NYSE: CPA), parent company of
Copa Airlines and Copa Airlines Colombia, today announced financial results for
the fourth quarter of 2010 (4Q10) and full year 2010. The terms “Copa Holdings"
or "the Company" refers to the consolidated entity, whose operating subsidiaries
are Copa Airlines and Copa Airlines Colombia. 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 2009 (4Q09).
OPERATING
AND FINANCIAL HIGHLIGHTS
|
·
|
Copa
Holdings reported net income of US$92.8 million for 4Q10 or earnings per
share (EPS) of US$2.11, as compared to net income of US$ 70.4 million or
EPS of US$1.60 in 4Q09. Excluding special items, Copa Holdings
reported an adjusted net income of US$81.2 million, representing a 23.7%
increase over adjusted net income of US$65.7 million in
4Q09.
|
|
·
|
Net
income for full year 2010 reached US$212.1 million or EPS of US$4.82,
compared to US$240.4 million or EPS of US$5.47 for full year
2009. Excluding special items, however, Copa Holdings reported
an adjusted net income of US$219.2 million compared to US$201.7 for full
year 2009, representing an increase of
8.7%.
|
|
·
|
Operating
income for 4Q10 came in at US$89.0 million, representing an increase of
24.0% over operating income of US$71.8 million in
4Q09. Adjusted operating income, which excludes a US$4.8
million special fleet charge recorded in 4Q09, increased 16.2% from
US$76.6 million in 4Q09 to US$89.0 million in 4Q10. Operating
margin for 4Q10 came in at 21.7%,
|
|
·
|
The
Company reported operating income of US$263.0 million for full year 2010,
representing an increase of 8.3% over adjusted operating income of
US$242.7 million. Operating margin for full year 2010 came in
at 18.6% as compared to an adjusted operating margin of 19.4% in
2009.
|
|
·
|
Total
revenues for 4Q10 increased 19.7% to US$410.6 million. Yield per passenger
mile increased 0.7% to 16.5 cents and operating revenue per available seat
mile (RASM) came in at 13.7 cents, flat over 4Q09. On a length
of haul adjusted basis, yields and RASM increased 3.2% and 2.6%,
respectively.
|
|
·
|
For
4Q10 consolidated passenger traffic grew 18.6% while capacity increased
19.6%. As a result, consolidated load factor for the quarter
decreased 0.6 percentage points to 78.8%. For full year 2010,
consolidated load factor came in at 76.9%, up 2.2 percentage points over
2009, on 10.5% capacity growth.
|
|
·
|
Operating
cost per available seat mile (CASM) decreased 0.8%, from 10.9 cents in
4Q09 to 10.8 cents in 4Q10. CASM, excluding fuel costs and
special fleet charges for 4Q09, decreased 2.6% from 7.6 cents in 4Q09 to
7.4 cents in 4Q10, mostly as a result of the dilution effect of capacity
added in the second half of 2010.
|
|
·
|
Cash,
short term and long term investments ended 2010 at US$408.8 million,
representing 29% of the last twelve months’
revenues.
|
|
·
|
During
the fourth quarter, Copa Airlines took delivery of three Boeing
737-800s. As a result, Copa Holdings ended the year with a
consolidated fleet of 63 aircraft, composed of 20 Boeing 737-700s, 17
Boeing 737-800s and 26
Embraer-190s.
|
|
·
|
For
2010, Copa Airlines reported on-time performance of 90.7% and a
flight-completion factor of 99.6%, maintaining its position among the best
in the industry.
|
|
Consolidated Financial &
Operating Highlights
|
4Q10
|
Variance
vs. 4Q09
|
Variance
vs. 3Q10
|
FY 2010
|
Variance
vs. 2009
|
|||||||||||||||
|
RPMs
(millions)
|
2,354 | 18.6 | % | 7.6 | % | 8,416 | 13.8 | % | ||||||||||||
|
ASMs
(mm)
|
2,986 | 19.6 | % | 3.1 | % | 10,950 | 10.5 | % | ||||||||||||
|
Load
Factor
|
78.8 | % |
-0.6
|
p.p. |
3.3
|
p.p. | 76.9 | % |
2.2
|
p.p. | ||||||||||
|
Yield
|
16.5 | 0.7 | % | 4.9 | % | 15.9 | -1.1 | % | ||||||||||||
|
PRASM
(cents)
|
13.0 | -0.1 | % | 9.5 | % | 12.2 | 1.8 | % | ||||||||||||
|
RASM
(cents)
|
13.7 | 0.1 | % | 10.0 | % | 12.9 | 1.9 | % | ||||||||||||
|
CASM
(cents)
|
10.8 | -0.8 | % | 7.1 | % | 10.5 | 0.9 | % | ||||||||||||
|
Adjusted CASM (cents) (1)
|
10.8 | 1.0 | % | 7.1 | % | 10.5 | 2.7 | % | ||||||||||||
|
CASM
Excl. Fuel (cents)
|
7.4 | -5.1 | % | 6.9 | % | 7.2 | -1.5 | % | ||||||||||||
|
Adjusted CASM Excl. Fuel (cents) (1)
|
7.4 | -2.6 | % | 6.9 | % | 7.2 | 1.2 | % | ||||||||||||
|
Breakeven Load Factor (2)
|
59.1 | % |
-0.9
|
p.p. |
-1.8
|
p.p. | 61.6 | % |
2.4
|
p.p. | ||||||||||
|
Operating
Revenues (US$ mm)
|
410.6 | 19.7 | % | 13.4 | % | 1,411.1 | 12.6 | % | ||||||||||||
|
Operating
Income (US$ mm)
|
89.0 | 24.0 | % | 25.8 | % | 263.0 | 17.8 | % | ||||||||||||
|
Adjusted Operating Income (US$ mm) (1)
|
89.0 | 16.2 | % | 25.8 | % | 263.0 | 8.3 | % | ||||||||||||
|
Operating
Margin
|
21.7 | % |
0.8
|
p.p. |
2.1
|
p.p. | 18.6 | % |
0.8
|
p.p. | ||||||||||
|
Adjusted Operating Margin (1)
|
21.7 | % |
-0.7
|
p.p. |
2.1
|
p.p. | 18.6 | % |
-0.7
|
p.p. | ||||||||||
|
Net
Income (US$ mm)
|
92.8 | 31.8 | % | 45.2 | % | 212.1 | -11.8 | % | ||||||||||||
|
Adjusted Net Income (US$ mm) (2)
|
81.2 | 23.7 | % | 48.1 | % | 219.2 | 8.7 | % | ||||||||||||
|
EPS
- Basic and Diluted (US$)
|
2.11 | 31.6 | % | 45.2 | % | 4.82 | -11.9 | % | ||||||||||||
|
Adjusted EPS - Basic and Diluted
(US$) (2)
|
1.85 | 23.5 | % | 48.1 | % | 4.98 | 8.5 | % | ||||||||||||
|
#
of Shares - Basic and Diluted (000)
|
43,996 | 0.1 | % | 0.0 | % | 43,996 | 0.2 | % | ||||||||||||
(1)
Adjusted Operating Income, Adjusted Operating Margin and Adjusted CASM for 4Q09
and full year 2009 exclude special charges related to the accrual of costs
associated with the retirement of four MD-80 aircraft as a result of Copa
Colombia’s fleet modernization plan.
(2)
Breakeven Load Factor, Adjusted Net Income and Adjusted EPS (Basic and Diluted)
exclude: a) For 4Q09 and 2009, special charges related to the accrual
of costs associated with the retirement of four MD-80 aircraft as a result of
Copa Colombia’s transition fleet modernization plan b) For 4Q10, 4Q09, 3Q10, 2010 and 2009
exclude non-cash charges/gains associated with the mark-to-market of fuel
hedges. Additionally, for 2010, Other Special Items include a US$18.9
million charge related to the devaluation of the Venezuelan
currency.
Note: Attached to
this press release is a reconciliation of non-GAAP financial measures to the
comparable US GAAP measures.
MANAGEMENT’S
COMMENTS ON 4Q10 RESULTS
Copa
Holdings delivered a quarter of strong financial results with fourth quarter
operating income coming in at US$89.0 million and net income at US$92.8
million. Excluding an $11.6 million non-cash gain associated with the
mark-to-market of fuel hedge contracts, net income reported would have been
US$81.2 million, or 23.7% above 4Q09 adjusted net income.
Total
revenues increased 19.7% to US$410.6 million during the quarter on capacity
expansion of 19.6%. For the quarter, consolidated load factor came in
at 78.8% compared to 79.4% in 4Q09 and consolidated yield came in at 16.5 cents,
which represented an improvement of 0.7% and 4.9% above 4Q09 and 3Q10,
respectively. As a result, RASM came in at 13.7 cents, flat over 4Q09
and 10.0% above 3Q10. When adjusted for length of haul, RASM came in
2.6% above 4Q09 and 11.0% above 3Q10.
2
Aircraft
fuel expense increased 31.2% or US$24.2 million compared to 4Q09, as a result of
increased capacity and higher fuel prices. The Company’s effective
jet fuel price, which includes a realized fuel hedge gain of US$1.2 million in
4Q10 and a loss of US$1.2 million in 4Q09, increased from an average of US$2.21
per gallon in 4Q09 to US$2.51 per gallon in 4Q10.
For 4Q10,
the Company had fuel hedges in place representing 22% of its consolidated
volume. Continuing with the execution of its fuel hedge policy, the
Company currently has hedged approximately 23% and 9% of its consolidated volume
for 2011 and 2012, respectively.
The
Company recorded non-operating income of US$11.9 million for 4Q10 compared to
non-operating income of US$6.4 million for 4Q09. Non-operating income
for 4Q10 included a fuel hedge mark-to-market gain of US$11.6 million, compared
to a fuel hedge mark-to-market gain of US$9.6 million in 4Q09.
Copa
Holdings closed the quarter with US$408.8 million in cash, short term and long
term investments, representing approximately 29% of last twelve months´
revenues. Total debt at the end of 4Q10 amounted to US$989.5 million,
most of which relates to aircraft and equipment financing.
Copa
Holdings’ strong fourth quarter and full year results are the product of a solid
and well executed business model based on operating the best and most convenient
network for intra-Latin America travel. In 2011, the Company will
continue to strengthen its long-term competitive position by taking advantage of
new growth opportunities and implementing initiatives to further strengthen its
network and product.
OUTLOOK
FOR 2011
For 2011,
our guidance is for consolidated capacity growth of approximately 20% as a
result of the full year effect of capacity added in 2010 and the introduction of
ten additional 737-800 aircraft during 2011. Load factors are expected to
come in below 2010 levels as a result of strong capacity expansion; while unit
revenues (RASM) are expected to decrease approximately 4% mainly as a result
increased length of haul and capacity expansion. Unit costs excluding
fuel, CASM ex-fuel, are expected to come in at 6.7 cents, significantly below
2010 levels. The estimated effective price per gallon of jet fuel,
including the effect of current hedge contracts and into-plane costs for full
year 2011 is US$2.60. As a result, the Company is projecting an operating margin
in the range of 18% to 20% for 2011.
|
Financial Outlook (US GAAP)
|
2011 – Full Year
|
|||
|
Capacity
- YOY ASM Growth
|
+/-20 | % | ||
|
Average
Load Factor
|
+/-74 | % | ||
|
RASM
(cents)
|
+/-12.3 | |||
|
CASM
Ex-fuel (cents)
|
+/- 6.7 | |||
|
Operating
Margin
|
18-20 | % | ||
3
CONSOLIDATED
FOURTH QUARTER RESULTS
Operating
revenue
Consolidated
revenue for 4Q10 totaled US$410.6 million, a 19.7% or US$67.6 million
increase over operating revenue of US$343.0 million in 4Q09, mainly due to
a 19.3% or US$54.2 million increase in Copa Airlines operating
revenue.
Copa Airlines operating
revenue
Copa
Airlines operating revenue for 4Q10 totaled US$335.1 million, a 19.3% increase
over operating revenue of US$280.9 million in 4Q09. This
increase was primarily due to an 18.1% or US$47.7 million increase in passenger
revenue.
Passenger
revenue. For 4Q10, passenger
revenue totaled US$311.4 million, an increase of 18.1% from
passenger revenue of US$263.7 million in 4Q09. Passenger yield
remained flat year over year at 15.6 cents, while load factor decreased 0.2
percentage points from 80.3% in 4Q09 to 80.1% in 4Q10. On the other
hand, length of haul adjusted yields increased 2.9%.
Cargo, mail and
other. Cargo, mail and other
revenue totaled US$23.7 million in 4Q10, a 38.0% increase over cargo, mail and
other of US$17.2 million in 4Q09.
Copa Airlines Colombia operating
revenue
During
4Q10, Copa Airlines Colombia generated operating revenue of US$83.2 million,
representing a 26.0% increase over 4Q09. This increase resulted
mainly from a US$15.4 million or 25.5% growth in passenger
revenue. During the quarter, Copa Airlines Colombia’s capacity (ASMs)
increased by 25.1%, while traffic (RPMs) increased 21.3%, resulting in a load
factor of 72.7% or 2.3 percentage point below 4Q09. On the other
hand, yields increased 3.4%, mainly due to increased capacity allocated to
international flights and higher yields in the Colombian domestic
market.
Operating
expenses
For 4Q10,
consolidated operating expenses increased 18.6% to US$321.6 million,
representing operating cost per available seat mile (CASM) of 10.8
cents. Operating expenses, excluding a US$4.8 million special fleet
charge recorded in 4Q09, increased 20.7%. Operating cost per
available seat mile (CASM), excluding fuel costs and special charges for 4Q09,
decreased 2.6% from 7.6 cents in 4Q09 to 7.4 cents in 4Q10. An
overview of the major variances on a consolidated basis follows:
Aircraft
fuel. For
4Q10, aircraft fuel totaled US$101.9 million, a US$24.2 million or 31.2%
increase over aircraft fuel of US$77.6 million in 4Q09. This increase was
primarily a result of a 13.3% increase in the average price per gallon of jet
fuel (all-in), which averaged US$2.51 in 4Q10 as compared to US$2.21 in 4Q09 and
a 15.5% increase in gallons consumed resulting from increased
capacity. This average price per gallon of jet fuel for 4Q10 includes
a $1.2 million realized fuel hedge gain, compared to a US$1.2 million realized
fuel hedge loss in 4Q09. Excluding the effect of fuel hedge gains or losses for
both periods, fuel prices increased 16.4%, from US$2.18 per gallon in 4Q09 to
US$2.54 in 4Q10.
4
Salaries and
benefits. For 4Q10, salaries and
benefits totaled US$50.6 million, a 15.3% increase over salaries and benefits of
US$43.9 million in 4Q09. This increase was mostly a result of an overall
increase in operating headcount to support additional capacity.
Passenger
servicing. For 4Q10, passenger
servicing totaled US$34.0 million, a 10.6% increase over passenger servicing of
US$30.8 million in 4Q09. This increase was primarily a result of an increase in
capacity and passengers carried.
Commissions.
For 4Q10, commissions totaled US$16.8 million, a 6.4% increase over
commissions of US$15.8 million in 4Q09. This increase was primarily a result of
a higher passenger revenue base, partly offset by a lower average commission
rates at both Copa Airlines and Copa Airlines Colombia.
Reservations and
sales.
Reservations and sales totaled US$15.9 million, a 12.9% increase over
reservation and sales of US$14.1 million in 4Q09. This increase was
primarily a result of 13.0% more passengers carried.
Maintenance,
material and repairs. For 4Q10, maintenance,
material and repairs totaled US$25.4 million, a 26.4% increase over maintenance,
material and repairs of US$20.1 million in 4Q09. This increase was
primarily a result of increased capacity and additional major overhaul
events.
Depreciation. Depreciation totaled
US$14.0 million in 4Q10, a 23.9% increase over depreciation of US$11.3 million
in 4Q09.
Flight
operations, aircraft
rentals. landing fees and other rentals. Combined, flight
operations, aircraft rentals, landing fees and other rentals increased 17.3%,
from US$35.0 million in 4Q09 to US$41.1 million in
4Q10.
Other. Other expenses totaled
US$22.0 million in 4Q10, an increase of US$4.1 million.
Special
charges. During 4Q09, the Company
registered a US$4.8 million charge related to the accrual of costs associated
with the retirement of four MD-80 aircraft as a result of Copa Airlines
Colombia’s transition to an Embraer-190 fleet. There were no special
fleet charges in 4Q10.
Copa
Airlines operating expenses
Copa
Airlines’ operating expenses increased 17.8%, from US$212.8 million in 4Q09 to
US$250.6 million in 4Q10, on a 18.5% increase in capacity. During the
same period, operating expenses per available seat mile decreased 0.6% to 10.1
cents. Excluding fuel costs, operating expenses per available seat
mile decreased 4.8% from 7.2 cents in 4Q09 to 6.8 cents in 4Q10.
Aircraft
fuel. For 4Q10,
aircraft fuel totaled US$80.7 million, a 29.9% increase over aircraft fuel
expense of US$62.1 million during the same period in 2009. This increase was
primarily a result of an 14.2% increase in the average price per gallon of jet
fuel (all-in), which averaged US$2.47 in 4Q10 as compared to US$2.16 in 4Q09 and
a 13.3% increase in gallons consumed resulting from increased
capacity. This average price per gallon of jet fuel for 4Q10 includes
a $1.1 million realized fuel hedge gain, compared to a US$1.2 realized fuel
hedge loss in 4Q09. Excluding the effect of fuel hedge gains or losses for both
periods, fuel prices increased 18.0%, from US$2.12 per gallon in 4Q09 to US$2.51
in 4Q10.
Salaries and
benefits. For
4Q10, salaries and benefits totaled US$38.8 million, a 12.4% increase over
salaries and benefits of US$34.5 million in the same period in 2009. This
increase was mainly a result of an overall increase in operating headcount to
support additional capacity.
Passenger
servicing.
Passenger servicing totaled US$27.5 million for 4Q10, a 7.2% increase
over passenger servicing of US$25.7 million in 4Q09. This increase
was primarily the result of an increase in capacity and passengers
carried.
5
Commissions. Commissions totaled
US$14.6 million for 4Q10, a 10.5% increase over commissions of US$13.2
million in 4Q09. This increase was primarily a result of a higher
passenger revenue base, partly offset by a lower average commission
rates.
Reservations and
sales.
Reservations and sales totaled US$11.3 million, a 15.4% increase over
reservation and sales of US$9.8 million in 4Q09. This increase was
primarily a result of an increase in passengers carried.
Maintenance,
materials and repairs.
Maintenance, materials and repairs totaled US$19.5 million in 4Q10, a
10.5% increase over maintenance, materials and repairs of US$17.6 million in
4Q09. This increase was a result of increased capacity and additional major
overhaul events.
Depreciation. Depreciation totaled
US$12.3 million in 4Q10, a 15.9% increase over depreciation of US$10.6 million
in 4Q09, primarily related to depreciation of new aircraft and spare
parts.
Flight
operations, aircraft
rentals, landing fees and other rentals. Combined, flight
operations, aircraft rentals, landing fees and other rentals increased 16.8%,
from US$26.2 million in 4Q09 to US$30.5 million in 4Q10.
Other. Other expenses increased
US$2.3 million from US$13.1 million in 4Q09 to US$15.4 million in
4Q10.
Copa
Airlines Colombia operating expenses
Copa
Airlines Colombia’s operating expenses increased 24.3% from US$63.9 million in
4Q09 to US$79.4 million in 4Q10. Operating expenses per available
seat mile (CASM) decreased 0.6% to 15.9 cents in 4Q10 from 16.0 cents in
4Q09. CASM, excluding fuel costs and special fleet charges recorded
in 4Q09, increased 6.9% from 10.9 cents in 4Q09 to 11.7 cents in
4Q10.
Non-operating
income (expense)
Consolidated
non-operating income (expense) totaled a gain of US$11.9 million in 4Q10,
compared to a gain of US$6.4 million in 4Q09.
Interest
expense. Interest expense totaled US$7.7 million in 4Q10, a
3.6% increase over interest expense of US$7.4 million in 4Q09, primarily as a
result of a higher outstanding debt balances, partly offset by lower average
rates.
Interest income. Interest income totaled
US$1.1 million, a 48.5% decrease from interest income of US$2.2 million in 4Q09,
mostly a result of lower interest rates.
Other, net. Other
net totaled a gain of US$18.4 million in 4Q10, mainly related to an US$11.6
million non-cash gain related to the mark-to-market of fuel hedge
contracts.
About Copa
Holdings:
Copa
Holdings, through its operating subsidiaries Copa Airlines and Copa Airlines
Colombia, is a leading Latin American commercial aviation provider of passenger
and cargo service. Copa offers more than 150 daily scheduled flights to 46
destinations in 25 countries in North, Central and South America and the
Caribbean through its Hub of the Americas at Tocumen International Airport in
Panama City, Panama. In addition, Copa Airlines provides passengers with
access to flights to more than 120 other international destinations through
codeshare agreements with Continental Airlines and other airlines. Copa
Airlines Colombia, provides domestic service to 12 cities in Colombia as well as
international connectivity with Copa Airlines' Hub of the Americas through
flights from Bogota, Cali, Medellin, Cartagena, Bucaramanga, Pereira and
Barranquilla. Additionally, Copa Airlines Colombia has non-stop international
flights from Colombia to Caracas, Quito, Guayaquil, Havana, Mexico City and
Cancun.
6
CONTACT: Copa Holdings
S.A.
Investor
Relations:
Ph: (507)
304-2677
www.copaair.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.
7
Copa
Holdings, S.A.
Operating
data
|
Unaudited
|
Unaudited
|
%
|
Unaudited
|
%
|
Unaudited
|
Audited
|
%
|
|||||||||||||||||||||||||
|
4Q10
|
4Q09
|
Change
|
3Q10
|
Change
|
2010
|
2009
|
Change
|
|||||||||||||||||||||||||
|
Copa
Holdings (Consolidated)
|
||||||||||||||||||||||||||||||||
|
Revenue
passengers carried (thousands)
|
1,719 | 1,521 | 13.0 | % | 1,626 | 5.7 | % | 6,265 | 5,553 | 12.8 | % | |||||||||||||||||||||
|
Revenue
passengers miles (RPMs) (mm)
|
2,354 | 1,984 | 18.6 | % | 2,187 | 7.6 | % | 8,416 | 7,397 | 13.8 | % | |||||||||||||||||||||
|
Available
seat miles (ASMs) (mm)
|
2,986 | 2,498 | 19.6 | % | 2,897 | 3.1 | % | 10,950 | 9,911 | 10.5 | % | |||||||||||||||||||||
|
Load
factor
|
78.8 | % | 79.4 | % |
-0.6
|
p.p. | 75.5 | % |
3.3
|
p.p. | 76.9 | % | 74.6 | % |
2.2
|
p.p. | ||||||||||||||||
|
Break-even
load factor
|
59.1 | % | 60.0 | % |
-0.9
|
p.p. | 60.9 | % |
-1.8
|
p.p. | 61.6 | % | 59.2 | % |
2.4
|
p.p. | ||||||||||||||||
|
Yield
(cents)
|
16.5 | 16.4 | 0.7 | % | 15.7 | 4.9 | % | 15.9 | 16.0 | -1.1 | % | |||||||||||||||||||||
|
RASM
(cents)
|
13.7 | 13.7 | 0.1 | % | 12.5 | 10.0 | % | 12.9 | 12.6 | 1.9 | % | |||||||||||||||||||||
|
CASM
(cents)
|
10.8 | 10.9 | -0.8 | % | 10.1 | 7.1 | % | 10.5 | 10.4 | 0.9 | % | |||||||||||||||||||||
|
Adj.CASM
- excl. special charges and fuel (cents)
|
7.4 | 7.6 | -2.6 | % | 6.9 | 6.9 | % | 7.2 | 7.2 | 1.2 | % | |||||||||||||||||||||
|
Fuel
gallons consumed (mm)
|
40.2 | 34.8 | 15.5 | % | 38.9 | 3.5 | % | 148.6 | 138.0 | 7.7 | % | |||||||||||||||||||||
|
Average
price of Fuel - Net of Hedges (US$)
|
2.51 | 2.21 | 13.3 | % | 2.35 | 6.7 | % | 2.37 | 2.17 | 9.5 | % | |||||||||||||||||||||
|
Copa
Segment
|
||||||||||||||||||||||||||||||||
|
Revenue
passengers miles (RPMs) (mm)
|
1,990 | 1,684 | 18.2 | % | 1,871 | 6.4 | % | 7,192 | 6,323 | 13.7 | % | |||||||||||||||||||||
|
Available
seat miles (ASMs) (mm)
|
2,486 | 2,098 | 18.5 | % | 2,470 | 0.7 | % | 9,228 | 8,319 | 10.9 | % | |||||||||||||||||||||
|
Load
factor
|
80.1 | % | 80.3 | % |
-0.2
|
p.p. | 75.8 | % |
4.3
|
p.p. | 77.9 | % | 76.0 | % |
1.9
|
p.p. | ||||||||||||||||
|
Break-even
load factor
|
57.7 | % | 57.7 | % |
0.0
|
p.p. | 57.7 | % |
0.0
|
p.p. | 59.0 | % | 58.6 | % |
0.4
|
p.p. | ||||||||||||||||
|
Yield
(US$ cents)
|
15.6 | 15.7 | -0.1 | % | 15.1 | 3.8 | % | 15.3 | 15.3 | 0.0 | % | |||||||||||||||||||||
|
RASM
(cents)
|
13.5 | 13.4 | 0.7 | % | 12.2 | 10.7 | % | 12.7 | 12.3 | 3.0 | % | |||||||||||||||||||||
|
CASM
(cents)
|
10.1 | 10.1 | -0.6 | % | 9.4 | 7.5 | % | 9.8 | 9.7 | 0.9 | % | |||||||||||||||||||||
|
Adj.CASM
- excl. special charges and fuel (cents)
|
6.8 | 7.2 | -4.8 | % | 6.4 | 7.5 | % | 6.7 | 6.7 | -0.1 | % | |||||||||||||||||||||
|
Fuel
gallons consumed (mm)
|
32.2 | 28.5 | 13.3 | % | 32.0 | 0.7 | % | 120.9 | 112.4 | 7.6 | % | |||||||||||||||||||||
|
Average
price of Fuel - Net of Hedges (US$)
|
2.47 | 2.16 | 14.2 | % | 2.32 | 6.7 | % | 2.34 | 2.20 | 6.3 | % | |||||||||||||||||||||
|
Copa
Airlines Colombia Segment
|
||||||||||||||||||||||||||||||||
|
Revenue
passengers miles (RPMs) (mm)
|
363 | 300 | 21.3 | % | 316 | 15.1 | % | 1,224 | 1,074 | 14.0 | % | |||||||||||||||||||||
|
Available
seat miles (ASMs) (mm)
|
500 | 399 | 25.1 | % | 428 | 16.8 | % | 1,722 | 1,592 | 8.2 | % | |||||||||||||||||||||
|
Load
factor
|
72.7 | % | 75.0 | % |
-2.3
|
p.p. | 73.8 | % | -1.1 | % | 71.1 | % | 67.5 | % |
3.6
|
p.p. | ||||||||||||||||
|
Break-even
load factor
|
63.3 | % | 69.7 | % |
-6.4
|
p.p. | 76.0 | % |
-12.8
|
p.p. | 72.7 | % | 60.6 | % |
12.1
|
p.p. | ||||||||||||||||
|
Yield
(cents)
|
20.9 | 20.2 | 3.4 | % | 19.3 | 8.7 | % | 19.4 | 20.7 | -6.3 | % | |||||||||||||||||||||
|
RASM
(cents)
|
16.6 | 16.5 | 0.7 | % | 15.5 | 7.7 | % | 15.1 | 15.1 | -0.3 | % | |||||||||||||||||||||
|
CASM
(cents)
|
15.9 | 16.0 | -0.6 | % | 15.3 | 4.0 | % | 15.3 | 14.6 | 4.6 | % | |||||||||||||||||||||
|
Adj.CASM
- excl. special charges and fuel (cents)
|
11.7 | 10.9 | 6.9 | % | 11.3 | 3.6 | % | 11.3 | 10.1 | 10.9 | % | |||||||||||||||||||||
|
Fuel
gallons consumed (mm)
|
8.0 | 6.4 | 25.3 | % | 6.9 | 15.4 | % | 27.7 | 25.6 | 8.0 | % | |||||||||||||||||||||
|
Average
price of Fuel - Net of Hedges (US$)
|
2.65 | 2.44 | 8.9 | % | 2.50 | 6.3 | % | 2.52 | 2.02 | 24.5 | % | |||||||||||||||||||||
8
Copa
Holdings, S.A.
Income
Statement - USGAAP
(US$
Thousands)
|
Unaudited
|
Unaudited
|
%
|
Unaudited
|
%
|
Unaudited
|
Audited
|
%
|
|||||||||||||||||||||||||
|
4Q10
|
4Q09
|
Change
|
3Q10
|
Change
|
2010
|
2009
|
Change
|
|||||||||||||||||||||||||
|
Operating
Revenues
|
||||||||||||||||||||||||||||||||
|
Passenger
Revenue
|
387,523 | 324,384 | 19.5 | % | 343,319 | 12.9 | % | 1,334,923 | 1,186,717 | 12.5 | % | |||||||||||||||||||||
|
Cargo,
mail and other
|
23,032 | 18,573 | 24.0 | % | 18,682 | 23.3 | % | 76,225 | 66,370 | 14.8 | % | |||||||||||||||||||||
|
Total
Operating Revenue
|
410,555 | 342,957 | 19.7 | % | 362,001 | 13.4 | % | 1,411,148 | 1,253,088 | 12.6 | % | |||||||||||||||||||||
|
Operating
Expenses
|
||||||||||||||||||||||||||||||||
|
Aircraft
fuel
|
101,859 | 77,643 | 31.2 | % | 91,800 | 11.0 | % | 354,427 | 300,816 | 17.8 | % | |||||||||||||||||||||
|
Salaries
and benefits
|
50,553 | 43,863 | 15.3 | % | 45,056 | 12.2 | % | 181,069 | 157,879 | 14.7 | % | |||||||||||||||||||||
|
Passenger
servicing
|
34,046 | 30,781 | 10.6 | % | 31,910 | 6.7 | % | 123,627 | 110,768 | 11.6 | % | |||||||||||||||||||||
|
Commissions
|
16,765 | 15,753 | 6.4 | % | 14,975 | 12.0 | % | 57,677 | 57,565 | 0.2 | % | |||||||||||||||||||||
|
Reservations
and sales
|
15,910 | 14,098 | 12.9 | % | 15,301 | 4.0 | % | 58,813 | 56,280 | 4.5 | % | |||||||||||||||||||||
|
Maintenance,
material and repairs
|
25,426 | 20,118 | 26.4 | % | 20,991 | 21.1 | % | 90,355 | 76,732 | 17.8 | % | |||||||||||||||||||||
|
Depreciation
|
13,953 | 11,264 | 23.9 | % | 13,553 | 3.0 | % | 53,336 | 47,079 | 13.3 | % | |||||||||||||||||||||
|
Flight
operations
|
19,271 | 15,356 | 25.5 | % | 18,943 | 1.7 | % | 70,648 | 60,873 | 16.1 | % | |||||||||||||||||||||
|
Aircraft
rentals
|
11,449 | 10,774 | 6.3 | % | 11,627 | -1.5 | % | 46,334 | 46,538 | -0.4 | % | |||||||||||||||||||||
|
Landing
fees and other rentals
|
10,374 | 8,897 | 16.6 | % | 10,540 | -1.6 | % | 40,320 | 33,628 | 19.9 | % | |||||||||||||||||||||
|
Other
|
21,966 | 17,835 | 23.2 | % | 16,574 | 32.5 | % | 71,531 | 62,187 | 15.0 | % | |||||||||||||||||||||
|
Special
fleet charges
|
- | 4,818 | -100.0 | % | - | n/a | - | 19,417 | -100.0 | % | ||||||||||||||||||||||
|
Total
Operating Expense
|
321,573 | 271,200 | 18.6 | % | 291,270 | 10.4 | % | 1,148,137 | 1,029,762 | 11.5 | % | |||||||||||||||||||||
|
Operating
Income
|
88,982 | 71,757 | 24.0 | % | 70,731 | 25.8 | % | 263,011 | 223,326 | 17.8 | % | |||||||||||||||||||||
|
Non-operating
Income (Expense):
|
||||||||||||||||||||||||||||||||
|
Interest
expense
|
(7,655 | ) | (7,392 | ) | 3.6 | % | (7,772 | ) | -1.5 | % | (29,981 | ) | (32,938 | ) | -9.0 | % | ||||||||||||||||
|
Interest
capitalized
|
- | 1 | -100.0 | % | - | n/a | - | 693 | -100.0 | % | ||||||||||||||||||||||
|
Interest
income
|
1,129 | 2,194 | -48.5 | % | 1,185 | -4.7 | % | 4,759 | 9,185 | -48.2 | % | |||||||||||||||||||||
|
Other,
net
|
18,393 | 11,568 | 59.0 | % | 8,948 | 105.6 | % | 1,847 | 59,703 | -96.9 | % | |||||||||||||||||||||
|
Total
Non-Operating Income/(Expense)
|
11,867 | 6,371 | 86.3 | % | 2,361 | 402.6 | % | (23,375 | ) | 36,642 | -163.8 | % | ||||||||||||||||||||
|
Income
before Income Taxes
|
100,849 | 78,128 | 29.1 | % | 73,092 | 38.0 | % | 239,636 | 259,968 | -7.8 | % | |||||||||||||||||||||
|
Provision
for Income Taxes
|
8,010 | 7,686 | 4.2 | % | 9,170 | -12.6 | % | 27,536 | 19,610 | 40.4 | % | |||||||||||||||||||||
|
Net
Income
|
92,839 | 70,442 | 31.8 | % | 63,922 | 45.2 | % | 212,099 | 240,358 | -11.8 | % | |||||||||||||||||||||
|
EPS
- Basic and Diluted
|
2.11 | 1.60 | 31.6 | % | 1.45 | 45.2 | % | 4.82 | 5.47 | -11.9 | % | |||||||||||||||||||||
|
Shares
- Basic and Diluted
|
43,996,177 | 43,947,596 | 0.1 | % | 43,999,213 | 0.0 | % | 43,995,671 | 43,910,929 | 0.2 | % | |||||||||||||||||||||
9
Copa
Holdings, S.A.
Balance
Sheet - USGAAP
(US$
Thousands)
|
December 31,
|
September 30,
|
December 31,
|
||||||||||
|
2010
|
2010
|
2009
|
||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
|
Current
Assets:
|
||||||||||||
|
Cash
and cash equivalents
|
$ | 207,690 | $ | 208,904 | $ | 262,656 | ||||||
|
Short-term
investments
|
194,913 | 160,297 | 89,412 | |||||||||
|
Total
cash, cash equivalents and short-term investments
|
402,603 | 369,201 | 352,068 | |||||||||
|
Accounts
receivable, net of allowance for doubtful accounts
|
88,774 | 100,019 | 76,392 | |||||||||
|
Accounts
receivable from related parties
|
613 | 3,256 | 4,399 | |||||||||
|
Expendable
parts and supplies, net of allowance for obsolescence
|
43,961 | 40,086 | 23,327 | |||||||||
|
Prepaid
expenses
|
51,913 | 33,685 | 32,314 | |||||||||
|
Other
current assets
|
26,466 | 13,943 | 13,654 | |||||||||
|
Total
Current Assets
|
614,330 | 560,190 | 502,154 | |||||||||
|
Long-term
investments
|
6,224 | 6,224 | 6,407 | |||||||||
|
Property
and Equipment:
|
||||||||||||
|
Owned
property and equipment:
|
||||||||||||
|
Flight
equipment
|
1,750,671 | 1,620,177 | 1,439,759 | |||||||||
|
Other
equipment
|
69,252 | 67,242 | 61,339 | |||||||||
| 1,819,923 | 1,687,419 | 1,501,098 | ||||||||||
|
Less:
Accumulated depreciation
|
(269,989 | ) | (257,046 | ) | (218,108 | ) | ||||||
| 1,549,934 | 1,430,373 | 1,282,990 | ||||||||||
|
Purchase
deposits for flight equipment
|
198,821 | 194,971 | 198,697 | |||||||||
|
Total
Property and Equipment
|
1,748,755 | 1,625,344 | 1,481,687 | |||||||||
|
Other
Assets:
|
||||||||||||
|
Net
pension asset
|
2,505 | 2,299 | 2,227 | |||||||||
|
Goodwill
|
25,475 | 27,090 | 23,852 | |||||||||
|
Intangible
asset
|
37,353 | 39,720 | 34,973 | |||||||||
|
Other
assets
|
40,864 | 41,693 | 41,569 | |||||||||
|
Total
Other Assets
|
106,197 | 110,802 | 102,621 | |||||||||
|
Total
Assets
|
$ | 2,475,507 | $ | 2,302,560 | $ | 2,092,869 | ||||||
|
LIABILITIES
AND SHAREHOLDER'S EQUITY
|
||||||||||||
|
Current
Liabilities:
|
||||||||||||
|
Current
maturities of long-term debt
|
$ | 100,860 | $ | 124,893 | $ | 94,550 | ||||||
|
Accounts
payable
|
66,468 | 50,743 | 51,343 | |||||||||
|
Accounts
payable to related parties
|
13,896 | 13,566 | 14,103 | |||||||||
|
Air
traffic liability
|
217,035 | 212,825 | 183,344 | |||||||||
|
Taxes
and interest payable
|
49,852 | 55,646 | 43,227 | |||||||||
|
Accrued
expenses payable
|
47,614 | 40,817 | 49,058 | |||||||||
|
Other
current liabilities
|
11,055 | 11,307 | 10,957 | |||||||||
|
Total
Current Liabilities
|
506,780 | 509,798 | 446,582 | |||||||||
|
Non-Current
Liabilities:
|
||||||||||||
|
Long-term
debt
|
888,681 | 815,020 | 750,971 | |||||||||
|
Post
employment benefits liability
|
2,648 | 2,560 | 2,370 | |||||||||
|
Other
long-term liabilities
|
17,996 | 16,776 | 13,908 | |||||||||
|
Deferred
tax liabilities
|
21,663 | 14,904 | 13,410 | |||||||||
|
Total
Non-Current Liabilities
|
930,988 | 834,356 | 780,659 | |||||||||
|
Total
Liabilities
|
1,437,768 | 1,359,058 | 1,227,241 | |||||||||
|
Shareholders'
Equity:
|
||||||||||||
|
Class
A - 32,659,557 shares issued and outstanding
|
22,291 | 22,291 | 20,864 | |||||||||
|
Class
B - 10,938,125 shares issued and outstanding
|
7,466 | 7,466 | 8,722 | |||||||||
|
Additional
paid in capital
|
24,341 | 22,836 | 18,658 | |||||||||
|
Retained
earnings
|
982,702 | 889,866 | 817,649 | |||||||||
|
Accumulated
other comprehensive income (loss)
|
939 | 1,044 | (265 | ) | ||||||||
|
Total
Shareholders' Equity
|
1,037,739 | 943,502 | 865,628 | |||||||||
|
Total
Liabilities and Shareholders' Equity
|
$ | 2,475,507 | $ | 2,302,560 | $ | 2,092,869 | ||||||
10
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 Operating Income, Adjusted Operating
Margin, 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 U.S. GAAP measures,
in particular operating income and net income. The following is a reconciliation
of these non-GAAP financial measures to the comparable U.S. GAAP
measures:
|
Reconciliation
of Operating Income
|
||||||||||||||||||||
|
Excluding
Special Items
|
4Q10
|
4Q09
|
3Q10
|
2010
|
2009
|
|||||||||||||||
|
Operating
Income as Reported
|
$ | 88,982 | $ | 71,757 | $ | 70,731 | $ | 263,011 | $ | 223,326 | ||||||||||
|
Special
Items (adjustments):
|
||||||||||||||||||||
|
Other
Special Items, net (2)
|
- | 4,818 | - | - | 19,417 | |||||||||||||||
|
Adjusted
Operating Income
|
$ | 88,982 | $ | 76,575 | $ | 70,731 | $ | 263,011 | $ | 242,743 | ||||||||||
|
Reconciliation
of Net Income
|
||||||||||||||||||||
|
Excluding
Special Items
|
4Q10
|
4Q09
|
3Q10
|
2010
|
2009
|
|||||||||||||||
|
Net
income as Reported
|
$ | 92,839 | $ | 70,442 | $ | 63,922 | $ | 212,099 | $ | 240,358 | ||||||||||
|
Special
Items (adjustments):
|
||||||||||||||||||||
|
Unrealized
(gain) loss on fuel hedging instruments (1)
|
(11,627 | ) | (9,593 | ) | (9,068 | ) | (11,721 | ) | (58,040 | ) | ||||||||||
|
Other
Special Items, net (2)
|
- | 4,818 | - | 18,863 | 19,417 | |||||||||||||||
|
Adjusted
Net Income
|
$ | 81,212 | $ | 65,667 | $ | 54,854 | $ | 219,242 | $ | 201,735 | ||||||||||
|
Shares
used for Computation (in thousands)
|
||||||||||||||||||||
|
Basic
and Diluted
|
43,996 | 43,948 | 43,999 | 43,996 | 43,911 | |||||||||||||||
|
Adjusted
earnings per share
|
||||||||||||||||||||
|
Basic
and Diluted
|
1.85 | 1.49 | 1.25 | 4.98 | 4.59 | |||||||||||||||
|
Reconciliation
Operating Costs per ASM
|
||||||||||||||||||||
|
Excluding
Fuel and Special Items
|
4Q10
|
4Q09
|
3Q10
|
2010
|
2009
|
|||||||||||||||
|
Operating
Costs per ASM as Reported
|
10.8 | 10.9 | 10.1 | 10.5 | 10.4 | |||||||||||||||
|
Aircraft
fuel per ASM
|
(3.4 | ) | (3.1 | ) | (3.1 | ) | (3.2 | ) | (3.0 | ) | ||||||||||
|
Operating
Costs per ASM excluding fuel
|
7.4 | 7.7 | 6.9 | 7.2 | 7.4 | |||||||||||||||
|
Special
Items (adjustments):
|
||||||||||||||||||||
|
Opther
Special Items per ASM, net (2)
|
- | (0.2 | ) | - | - | (0.2 | ) | |||||||||||||
|
Operating
expenses excluding fuel and special items
|
7.4 | 7.6 | 6.9 | 7.2 | 7.2 | |||||||||||||||
FOOTNOTES:
|
(1)
|
Include
unrealized gains resulting from the mark-to-market accounting for changes
in the fair value of fuel hedging
instruments.
|
|
(2)
|
Other
Special Items for 4Q09 and 2009 include special charges related to the
accrual of costs associated with the retirement of four MD-80 aircraft as
a result of Copa Airlines Colombia’s fleet modernization
plan. Additionally, for 2010 includes a US$18.9 million charge
related to the devaluation of the Venezuelan
currency.
|
11
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorized.
|
Copa
Holdings, S.A.
(Registrant)
|
|||
|
Date:
02/10/2011
|
|
||
|
|
By:
|
/s/ Victor Vial | |
| Name: | Victor Vial | ||
| Title: | CFO | ||