Copa Holdings Reports Net Income of $191.8 million and EPS of $4.55 for the Fourth Quarter of 2023
Excluding special items, adjusted net income came in at $188.4 million, or Adjusted EPS of $4.47
PANAMA CITY, Panama, Feb. 7, 2024 /PRNewswire/ — Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the fourth quarter of 2023 (4Q23) and the full year of 2023. The terms “Copa Holdings” and 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 the financial tables section of this earnings release. Unless otherwise stated, all comparisons with prior periods refer to the fourth quarter of 2022 (4Q22).
OPERATING AND FINANCIAL HIGHLIGHTS
Copa Holdings reported a net profit of US$191.8 million for 4Q23 or US$4.55 per share. Excluding special items comprised of a net gain of US$3.4 million related to the value of financial investments, the Company would have reported a net profit of US$188.4 million or US$4.47 per share.
For the full year 2023, the Company reported a net profit of US$518.2 million or US$12.89 per share. Excluding special items, comprised of a net loss related to the Company’s convertible notes as well as changes in the value of financial investments totaling US$156.9 million, Copa Holdings would have reported an adjusted net profit of US$675.1 million or US$16.79 per share, compared to an adjusted net profit of US$335.4 million or earnings per share of US$8.26 in 2022.
Copa Holdings reported an operating profit of US$218.9 million and a 23.9% operating margin for the quarter.
For the full year 2023, the Company reported an operating profit of US$811.8 million and an operating margin of 23.5%, compared to an adjusted operating profit of US$450.4 million and an operating margin of 15.2% in 2022.
Passenger traffic for 4Q23, measured in terms of revenue passenger miles (RPMs), increased by 11.1% compared to 4Q22 in line with capacity which, measured in available seat miles (ASMs), increased by 11.0%. As a result, the load factor for the quarter increased by 0.1 percentage points to 86.7% compared to 4Q22.
Total revenues for 4Q23 increased 3.0% to US$916.9 million mainly driven by higher capacity, while yields decreased by 7.1% to 14.0 cents. Consequently, revenue per available seat mile (RASM) decreased by 7.3% as compared to 4Q22 to 12.7 cents.
Operating cost per available seat mile (CASM) decreased 6.3% from 10.3 cents in 4Q22 to 9.7 cents in 4Q23, mainly driven by a decrease of 12.7% in the price of jet fuel per gallon and lower sales and distribution costs. CASM excluding fuel (Ex-fuel CASM) decreased by 1.6% in the quarter to 6.0 cents, when compared to 4Q22.
The Company ended the quarter with approximately US$1.2 billion in cash, short-term and long-term investments, which represent 34% of the last twelve months’ revenues.
The Company closed the quarter with total debt, including lease liabilities, of US$1.7 billion, while our Adjusted Net Debt to EBITDA ratio ended at 0.5 times.
During the quarter, the Company took delivery of three Boeing 737 MAX 9 aircraft, ending the year with a consolidated fleet of 106 aircraft – 67 Boeing 737-800s, 29 Boeing 737 MAX 9s, 9 Boeing 737-700s, and 1 Boeing 737-800 freighter.
Copa Airlines had an on-time performance for the quarter of 83.8% and a flight completion factor of 99.8%.
Subsequent Events
In January, Copa Airlines was recognized by Cirium for the ninth time as the most on-time airline in Latin America in 2023. Copa Airlines’ on-time performance of 89.5% for the year was the highest of any carrier in the Americas.
Following the Airworthiness Directive issued by the United States Federal Aviation Administration (FAA) on January 6, the Company suspended operations of twenty-one 737 MAX9 aircraft. From January 6 to January 29, a total of 1788 flights were canceled. After undergoing the technical inspections required by the regulators, all of these aircraft have returned to Copa Airlines’ flight schedule.
On February 7, 2024, the Board of Directors of Copa Holdings approved a 2024 quarterly dividend payment of US$1.61 per share. Dividends will be distributed during March, June, September, and December. The first quarterly dividend of US$1.61 per share will be paid on March 15, 2024, to shareholders on record as of February 29, 2024.
Consolidated Financial
& Operating Highlights
4Q23
4Q22
Variance vs. 4Q22
3Q23
Variance vs. 3Q23
FY23
FY22
Variance vs. FY22
Revenue Passengers Carried (000s)
3,310
2,813
17.7 %
3,272
1.2 %
12,442
10,334
20.4 %
Revenue Passengers OnBoard (000s)
4,930
4,262
15.7 %
4,873
1.2 %
18,566
15,724
18.1 %
RPMs (millions)
6,263
5,639
11.1 %
6,239
0.4 %
24,052
20,779
15.7 %
ASMs (millions)
7,228
6,509
11.0 %
7,109
1.7 %
27,700
24,430
13.4 %
Load Factor
86.7 %
86.6 %
0.1 p.p.
87.8 %
-1.1 p.p.
86.8 %
85.1 %
1.8 p.p.
Yield (US$ Cents)
14.0
15.1
-7.1 %
13.4
5.1 %
13.8
13.6
1.6 %
PRASM (US$ Cents)
12.2
13.1
-7.1 %
11.7
3.8 %
12.0
11.6
3.7 %
RASM (US$ Cents)
12.7
13.7
-7.3 %
12.2
3.9 %
12.5
12.1
3.0 %
CASM (US$ Cents)
9.7
10.3
-6.3 %
9.3
3.6 %
9.6
10.3
-7.1 %
CASM Excl. Fuel (US$ Cents)
6.0
6.1
-1.6 %
5.8
3.9 %
6.0
6.0
-0.3 %
Fuel Gallons Consumed (millions)
85.6
77.7
10.2 %
83.9
2.1 %
327.6
291.4
12.4 %
Avg. Price Per Fuel Gallon (US$)
3.07
3.52
-12.7 %
3.00
2.6 %
3.02
3.60
-16.0 %
Average Length of Haul (miles)
1,892
2,005
-5.6 %
1,907
-0.8 %
1,933
2,011
-3.9 %
Average Stage Length (miles)
1,229
1,266
-2.9 %
1,238
-0.8 %
1,251
1,275
-1.9 %
Departures
36,207
32,112
12.8 %
35,468
2.1 %
137,044
120,155
14.1 %
Block Hours
115,118
104,822
9.8 %
112,114
2.7 %
438,913
390,639
12.4 %
Average Aircraft Utilization (hours)
11.9
11.8
1.3 %
11.9
0.0 %
11.9
11.3
5.0 %
Operating Revenues (US$ millions)
916.9
890.6
3.0 %
867.7
5.7 %
3,461.1
2,965.0
16.7 %
Operating Profit (Loss) (US$ millions)
218.9
219.7
-0.4 %
205.0
6.8 %
811.8
450.4
80.2 %
Operating Margin
23.9 %
24.7 %
-0.8 p.p.
23.6 %
0.2 p.p.
23.5 %
15.2 %
8.3 p.p.
Net Profit (Loss) (US$ millions)
191.8
88.3
117.2 %
187.4
2.4 %
518.2
348.1
48.9 %
Adjusted Net Profit (Loss) (US$ millions) (1)
188.4
177.7
6.0 %
174.4
8.0 %
675.1
335.4
101.3 %
Basic EPS (US$)
4.55
2.23
103.9 %
4.72
-3.5 %
12.89
8.58
50.3 %
Adjusted Basic EPS (US$) (1)
4.47
4.49
-0.5 %
4.39
1.8 %
16.79
8.26
103.2 %
Shares for calculation of Basic EPS (000s)
42,150
39,554
6.6 %
39,730
6.1 %
40,201
40,582
-0.9 %
(1) Excludes Special Items. This earnings release includes a reconciliation of non-IFRS financial measures to the comparable IFRS measures.
FULL 4Q23 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT:
https://copa.gcs-web.com/financial-information/quarterly-results
4Q23 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST
Date:
February 8, 2024
Time:
11:00 AM US ET (11:00 AM Local Time)
Join by phone:
https://register.vevent.com/register/BI4cf2c550166242c38d9f247f0fa590a7
Webcast (listen-only):
https://copa.gcs-web.com/events-and-presentations
Speakers:
Pedro Heilbron, Chief Executive Officer
José Montero, Chief Financial Officer
About Copa Holdings
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information visit: www.copaair.com.
CONTACT: Copa Holdings S.A.
Investor Relations:
Ph: 011 507 304-2774
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 several 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.
Consolidated statement of profit or loss
(US$ Thousands)
Unaudited
Unaudited
%
Unaudited
%
Unaudited
Audited
%
4Q23
4Q22
Change
3Q23
Change
FY23
FY22
Change
Operating Revenues
Passenger revenue
879,351
852,291
3.2 %
833,306
5.5 %
3,320,455
2,824,719
17.5 %
Cargo and mail revenue
26,534
27,095
-2.1 %
23,431
13.2 %
97,105
1,01,765
-4.6 %
Other operating revenue
11,049
11,226
-1.6 %
10,973
0.7 %
43,538
38,549
12.9 %
Total Operating Revenue
916,933
890,612
3.0 %
867,711
5.7 %
3,461,098
2,965,033
16.7 %
Operating Expenses
Fuel
264,166
273,901
-3.6 %
252,077
4.8 %
995,862
1,052,637
-5.4 %
Wages, salaries, benefits and other employees’ expenses
119,669
105,019
14.0 %
108,416
10.4 %
436,526
380,385
14.8 %
Passenger servicing
24,148
19,518
23.7 %
23,147
4.3 %
89,146
70,080
27.2 %
Airport facilities and handling charges
59,010
49,734
18.7 %
58,243
1.3 %
2,21,878
1,92,584
15.2 %
Sales and distribution
55,111
61,498
-10.4 %
54,058
1.9 %
2,27,171
2,24,465
1.2 %
Maintenance, materials and repairs
31,276
28,875
8.3 %
29,528
5.9 %
1,32,531
1,04,114
27.3 %
Depreciation and amortization
79,815
70,251
13.6 %
78,359
1.9 %
3,05,668
2,67,704
14.2 %
Flight operations
27,987
25,667
9.0 %
29,476
-5.1 %
1,09,892
97,256
13.0 %
Other operating and administrative expenses
36,875
36,492
1.0 %
29,394
25.5 %
1,30,656
1,25,424
4.2 %
Total Operating Expense
698,058
670,954
4.0 %
662,697
5.3 %
2,649,331
2,514,648
5.4 %
Operating Profit/(Loss)
218,875
219,657
-0.4 %
205,014
6.8 %
811,767
450,384
80.2 %
Non-operating Income (Expense):
Finance cost
(20,408)
(23,388)
-12.7 %
(82,926)
-75.4 %
(1,58,216)
(87,631)
80.5 %
Finance income
14,289
7,413
92.8 %
15,108
-5.4 %
50,209
18,030
178.5 %
Gain (loss) on foreign currency fluctuations
(272)
(2,560)
-89.4 %
(1,566)
-82.6 %
3,076
(9,812)
-131.3 %
Net change in fair value of derivatives
–
(91,305)
-100.0 %
77,058
-100.0 %
(98,347)
17,189
-672.2 %
Other non-operating income (expense)
3,126
1,221
156.0 %
1,867
67.5 %
7,153
70
10065.6 %
Total Non-Operating Income/(Expense)
(3,264)
(1,08,619)
-97.0 %
9,540
-134.2 %
(196,126)
(62,155)
215.5 %
Profit before taxes
215,611
111,039
94.2 %
214,555
0.5 %
615,641
388,229
58.6 %
Income tax expense
(23,830)
(22,758)
4.7 %
(27,179)
-12.3 %
(97,456)
(40,176)
142.6 %
Net Profit/(Loss)
191,780
88,280
117.2 %
187,375
2.4 %
518,185
348,054
48.9 %
EPS
Basic
4.55
2.23
103.9 %
4.72
-3.5 %
12.89
8.58
50.3 %
Shares used for calculation:
Basic
42,149,854
39,554,071
6.6 %
39,730,180
6.1 %
40,200,947
40,581,616
-0.9 %
Copa Holdings, S. A. and subsidiaries
Consolidated statement of financial position
(US$ Thousands)
December 2023
December 2022
ASSETS
(Unaudited)
(Audited)
Cash and cash equivalents
206,375
122,424
Short-term investments
708,809
812,323
Total cash, cash equivalents and short-term investments
915,184
934,747
Accounts receivable, net
156,720
135,415
Accounts receivable from related parties
2,527
2,168
Expendable parts and supplies, net
116,604
93,332
Prepaid expenses
44,635
52,322
Prepaid income tax
66
798
Other current assets
32,227
17,043
352,779
301,078
TOTAL CURRENT ASSETS
1,267,963
1,235,825
Long-term investments
258,934
202,056
Long-term prepaid expenses
9,633
7,770
Property and equipment, net
3,239,078
2,883,524
Right of use assets
281,146
234,380
Intangible, net
87,986
78,555
Net defined benefit assets
5,346
504
Deferred tax assets
30,136
30,743
Other Non-Current Assets
17,048
17,005
TOTAL NON-CURRENT ASSETS
3,929,307
3,454,537
TOTAL ASSETS
5,197,270
4,690,362
LIABILITIES
Loans and borrowings
2,22,430
1,42,484
Current portion of lease liability
68,304
80,084
Accounts payable
182,303
166,660
Accounts payable to related parties
1,228
1,004
Air traffic liability
605,900
651,805
Frequent flyer deferred revenue
126,677
111,526
Taxes Payable
44,210
43,878
Accrued expenses payable
64,940
44,913
Income tax payable
26,956
6,276
Other Current Liabilities
1,403
1,175
TOTAL CURRENT LIABILITIES
1,344,351
1,249,805
Loans and borrowings long-term
1,240,261
1,301,819
Lease Liability
215,353
158,289
Derivative financial instruments
–
251,150
Deferred tax Liabilities
36,594
16,571
Other long – term liabilities
234,474
220,618
TOTAL NON-CURRENT LIABILITIES
1,726,682
1,948,447
TOTAL LIABILITIES
3,071,033
3,198,252
EQUITY
Class A – 34,075,142 issued and 31,090,299 outstanding
21,367
21,327
Class B – 10,938,125
7,466
7,466
Additional Paid-In Capital
210,936
103,465
Treasury Stock
(204,130)
(344,541)
Retained Earnings
1,581,739
1,367,784
Net profit
518,185
348,054
Other comprehensive loss
(9,326)
(11,445)
TOTAL EQUITY
2,126,237
1,492,110
TOTAL EQUITY LIABILITIES
5,197,270
4,690,362
Copa Holdings, S. A. and subsidiaries
Consolidated Statement of Cash Flows
For the twelve months ended December 31,
(In US$ thousands)
2023
2022
2021
(Unaudited)
(Audited)
(Audited)
Cash flow from operating activities
1,020,974
740,948
462,612
Cash flow (used in) investing activities
(542,995)
(555,911)
(459,135)
Cash flow (used in) from financing activities
(394,028)
(273,694)
88,539
Net increase (decrease) in cash and cash equivalents
83,951
(88,657)
92,016
Cash and cash equivalents at January 1
122,424
211,081
119,065
Cash and cash equivalents at December 31
$ 206,375
$ 122,424
$ 211,081
Short-term investments
708,809
812,323
806,340
Long-term investments
258,934
202,056
199,670
Total cash and cash equivalents and investments at December 31
$ 1,174,118
$ 1,136,803
$ 1,217,091
Copa Holdings, S.A.
NON-IFRS FINANCIAL MEASURE RECONCILIATION
This press release includes the following non-IFRS financial measures: Adjusted Net Profit, Adjusted Basic EPS, and Operating CASM Excluding Fuel. 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 profit, and net profit. The following is a reconciliation of these non-IFRS financial measures to the comparable IFRS measures:
Reconciliation of Adjusted Net Profit
4Q23
4Q22
3Q23
FY23
FY22
Net Profit as Reported
$ 191,780
$ 88,280
$ 187,375
$ 518,185
$ 348,054
Interest expense related to the settlement of the convertible notes
$ –
$ –
$ 64,894
$ 64,894
$ –
Net change in fair value of derivatives
$ –
$ 91,305
$ (77,058)
$ 98,347
$ (17,189)
Net change in fair value of financial investments
$ (3,372)
$ (1,924)
$ (810)
$ (6,349)
$ 4,516
Adjusted Net Profit
$ 188,409
$ 177,661
$ 174,400
$ 675,077
$ 335,381
Reconciliation of Adjusted Basic EPS
4Q23
4Q22
3Q23
FY23
FY22
Adjusted Net Profit
$ 188,409
$ 177,661
$ 174,400
$ 675,077
$ 335,381
Shares used for calculation of Basic EPS
42,150
39,554
39,730
40,201
40,582
Adjusted Basic Earnings per share (Adjusted Basic EPS)
$ 4.47
$ 4.49
$ 4.39
$ 16.79
$ 8.26
Reconciliation of Operating Costs per ASM
Excluding Fuel (CASM Excl. Fuel)
4Q23
4Q22
3Q23
FY23
FY22
Operating Costs per ASM as Reported (in US$ Cents)
9.7
10.3
9.3
9.6
10.3
Aircraft Fuel Cost per ASM (in US$ Cents)
3.7
4.2
3.5
3.6
2.8
Operating Costs per ASM excluding fuel (in US$ Cents)
6.0
6.1
5.8
6.0
7.2
View original content:https://www.prnewswire.com/news-releases/copa-holdings-reports-net-income-of-191-8-million-and-eps-of-4-55-for-the-fourth-quarter-of-2023–302056773.html
SOURCE Copa Holdings, S.A.
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