Excluding special items, adjusted net income came in at $28.1
million or $0.64 per share PANAMA CITY, Aug. 5
/PRNewswire-FirstCall/ -- Copa Holdings, S.A. (NYSE:CPA), parent
company of Copa Airlines and Aero Republica, today announced
financial results for the second quarter of 2009 (2Q09). The terms
"Copa Holdings" or "the Company" refer 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 U.S. GAAP. Unless
otherwise stated, all comparisons with prior periods refer to the
second quarter of 2008 (2Q08). OPERATING AND FINANCIAL HIGHLIGHTS
-- Copa Holdings reported net income of US$55.2 million for 2Q09,
or diluted earnings per share (EPS) of US$1.26, an increase of
81.3% as compared to net income of US$30.4 million or diluted EPS
of US$0.70 in 2Q08. -- Excluding special items, which for 2Q09
included a US$27.1 million non-cash gain associated with the
mark-to-market of fuel hedge contracts, Copa Holdings would have
reported an adjusted net income of US$28.1 million, or diluted EPS
of $0.64, compared to an adjusted net income of US$24.8 million or
EPS of US$0.57 for 2Q08. See the accompanying reconciliation of
non-GAAP financial information to GAAP financial information
included in the financial tables section of this earnings release.
-- Passenger traffic for the months of May and June were negatively
affected as a result of the H1N1 flu crisis, which resulted in
lower overall demand for intra-Latin America travel, especially to
and from Mexico. The Company estimates that the H1N1 flu crisis
reduced consolidated passenger revenue by approximately US$12
million. -- Operating income for 2Q09 came in at US$36.8 million,
despite a US$12.8 million realized fuel hedge loss, representing an
increase of 17.8% as compared to operating income of US$31.2
million for 2Q08, which included a US$7.5 million fuel hedge gain.
Operating margin increased from 10.5% to 13.2%. -- In 2Q09, total
revenues reached US$277.6 million, representing a 6.8% decline, on
a 16.5% capacity expansion. Yield per passenger mile decreased
13.3% to 15.6 cents and operating revenue per available seat mile
(RASM) decreased 20.0% to 11.4 cents. -- Revenue passenger miles
(RPMs) increased 7.5% from 1.56 billion in 2Q08 to 1.68 billion in
2Q09, and available seat miles (ASMs) increased 16.5% from 2.09
billion in 2Q08 to 2.44 billion in 2Q09, with the Copa Airlines
segment increasing 18.1% year-over-year and Aero Republica
increasing 8.9%. Consolidated load factor decreased 5.7 percentage
points to 68.7%. Break-even load factor for 2Q09 decreased 6.7
percentage points to 59.7% from 66.4% in 2Q08. -- Operating cost
per available seat mile (CASM) decreased 22.5%, from 12.7 cents in
2Q08 to 9.9 cents in 2Q09. CASM, excluding fuel costs, decreased
9.1% from 7.8 cents in 2Q08 to 7.1 cents in 2Q09. -- Cash, short
term and long term investments ended the quarter at US$394.3
million, representing 31% of the last twelve months' revenues. --
Copa Holdings ended the quarter with a consolidated fleet of 58
aircraft. Copa Airlines fleet consisted of 43 aircraft, including
28 Boeing 737 Next Generation and 15 Embraer-190's. Aero
Republica's fleet consisted of 15 aircraft, including 11
Embraer-190's and four MD-80's. -- For 2Q09, Copa Airlines reported
on-time performance of approximately 90% and a flight-completion
factor of 99.5%, maintaining its position among the best in the
industry. RECENT DEVELOPMENTS -- On July 16, Copa Airlines and
Boeing announced an order for 13 Boeing 737-800 aircraft, plus
options for an additional 8. At Boeing list prices, the new order
will represent a total investment of approximately US$1 billion.
Deliveries of the 13 newly ordered aircraft will begin in 2012 and
end in 2015, with the 8 additional options available for delivery
between 2015 and 2017. -- On July 23, Copa Holdings announced it
has obtained final loan guarantee commitments from the
Export-Import Bank of the United States (EX-IM Bank) to support the
purchase and financing of two Boeing 737-800 Next Generation
aircraft scheduled for delivery in 2009, as well as preliminary
commitments for 10 additional aircraft scheduled for delivery
between 2010 and 2012. Consolidated Financial & Operating
Highlights 2Q09 2Q08 % Change 1Q08 % Change RPMs (millions) 1,676
1,559 7.5% 1,807 -7.3% ASMs (mm) 2,438 2,093 16.5% 2,430 0.3% Load
Factor 68.7% 74.5% -5.7 p.p. 74.4% -5.6 p.p. Yield 15.6 18.0 -13.3%
16.2 -3.7% PRASM (cents) 10.7 13.4 -20.0% 12.1 -11.0% RASM (cents)
11.4 14.2 -20.0% 12.7 -10.4% CASM (cents) 9.9 12.7 -22.5% 9.9 0.1%
Adjusted CASM (cents) (1) 9.9 12.7 -22.5% 9.9 0.1% CASM Excl. Fuel
(cents) 7.1 7.8 -9.1% 6.8 3.0% Breakeven Load Factor (2) 59.7%
66.4% -6.7 p.p. 57.5% 2.2 p.p. Operating Revenues (US$ mm) 277.6
297.9 -6.8% 308.8 -10.1% EBITDAR (US$ mm) (1) 91.2 66.7 36.6% 111.4
-18.2% Adjusted EBITDAR (US$ mm) (1)(2) 64.1 61.1 5.0% 95.3 -32.7%
EBITDAR Margin (1) 32.8% 22.4% 10.4 p.p. 36.1% -3.3 p.p. Adjusted
EBITDAR Margin (1)(2) 23.1% 20.5% 2.6 p.p. 30.9% -7.8 p.p.
Operating Income (US$ mm) 36.8 31.2 17.8% 68.9 -46.7% Adjusted
Operating Income (US$ mm)(1) 36.8 31.2 17.8% 68.9 -46.7% Operating
Margin 13.2% 10.5% 2.8 p.p. 22.3% -9.1 p.p. Adjusted Operating
Margin (1) 13.2% 10.5% 2.8 p.p. 22.3% -9.1 p.p. Net Income (US$ mm)
55.2 30.4 81.3% 71.6 -23.0% Adjusted Net Income (US$ mm) (2) 28.1
24.8 13.5% 55.5 -49.3% EPS - Basic (US$) 1.27 0.70 80.7% 1.67
-23.7% Adjusted EPS - Basic (US$) (2) 0.65 0.58 12.6% 1.29 -49.8%
EPS - Diluted (US$) 1.26 0.70 80.4% 1.65 -23.4% Adjusted EPS -
Diluted (US$) (2) 0.64 0.57 12.8% 1.28 -49.6% Weighted Avg. # of
Shares - Basic (000) 43,338 43,195 0.3% 42,908 1.0% Weighted Avg. #
of Shares - Diluted (000) 43,685 43,465 0.5% 43,464 0.5% (1)
EBITDAR means earnings before interest, taxes, depreciation,
amortization and rent. (2) Break-even load factor, adjusted
EBITDAR, Adjusted EBITDAR margin, Adjusted Net Income and Adjusted
EPS (Basic and Diluted) exclude non-cash charges/gains associated
with the mark-to-market of fuel hedges. Note: A reconciliation of
non-GAAP financial to the comparable US GAAP measures appears at
the end of this press release. Full 2Q09 earnings release available
for download at: http://investor.shareholder.com/copa/results.cfm
2Q09 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST Date: August 6,
2009 Time: 11:00 a.m. EDT (10:00 a.m. Panama Time) Conference Call:
Telephone Number: 877-545-1415 (U.S. Domestic Callers) 719-325-4854
(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, Aero Republica has direct daily flights to
Caracas, Venezuela, from the cities of Bogota and Medellin,
Colombia. 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
EBITDAR, 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 2Q09
2Q08 1Q09 Net income as Reported $55,162 $30,431 $71,615 Interest
Expense (8,520) (9,815) (8,936) Capitalized Interest 233 484 318
Interest Income 2,211 2,596 2,563 Income Taxes (3,115) (3,507)
(5,641) EBIT 64,353 40,674 83,311 Depreciation and Amortization
11,966 10,433 11,928 EBITDA 76,319 51,107 95,239 Aircraft Rent
11,487 12,012 12,366 Other Rentals 3,345 3,610 3,812 EBITDAR
$91,150 $66,729 $111,417 Special Items (adjustments): Unrealized
(gain) loss on fuel hedging instruments (1) (27,069) (5,679)
(16,163) Adjusted EBITDAR $64,081 $61,050 $95,254 Reconciliation of
Net Income Excluding Special Items 2Q09 2Q08 1Q09 Net income as
Reported $55,162 $30,431 $71,615 Special Items (adjustments):
Unrealized (gain) loss on fuel hedging instruments (1) (27,069)
(5,679) (16,163) Adjusted Net Income $28,093 $24,752 $55,452 Shares
used for Computation (in thousands) Basic 43,338 43,195 42,908
Diluted 43,685 43,465 43,464 Adjusted earnings per share Basic 0.65
0.57 1.29 Diluted 0.64 0.57 1.28 FOOTNOTE: (1) The 2Q09, 2Q08 and
1Q09 periods included non-cash gains of US$27.1 million, US$5.7
million and US$16.2 million, respectively, resulting from the
mark-to-market accounting for changes in the fair value of fuel
hedging instruments. CPA-G DATASOURCE: Copa Holdings, S.A. CONTACT:
Joe Putaturo, Investor Relations, Copa Holdings, +011-507-304-2677,
Web site: http://www.copaair.com/
Copyright