PANAMA CITY, Feb. 21, 2018 /PRNewswire/ -- Copa Holdings, S.A. (NYSE: CPA), today announced financial results for the fourth quarter of 2017 (4Q17) and full year 2017. 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 2016 (4Q16).

The financial information included in this press release is preliminary as the Company has not yet issued its audited financial statements and may differ from those results. During the course of the preparation of the financial statements and related notes and our year-end audit, additional items that would require material adjustments to the preliminary financial information included in this press release may be identified.

OPERATING AND FINANCIAL HIGHLIGHTS

  • Copa Holdings reported net income of US$100.8 million for 4Q17 or earnings per share (EPS) of US$2.38, as compared to net income of US$90.5 million or earnings per share of US$2.14 in 4Q16. Excluding special items, which for 4Q17 include a non-cash gain of US$0.5 million associated with the mark-to-market of fuel hedge contracts, the Company would have reported a net income of US$100.3 million, or adjusted EPS of US$2.36, compared to an adjusted net income of US$54.7 million or adjusted EPS of US$1.29 in 4Q16.
  • For full year 2017, net income reached US$370.0 million or EPS of US$8.72, compared to a net income of US$334.5 million or earnings per share of US$7.90 for full year 2016. Excluding special items, which for 2017 include a non-cash gain of US$2.8 million associated with the mark-to-market of fuel hedge contracts, Copa Holdings would have reported an adjusted net income of US$367.2 million or EPS of US$8.66, compared to an adjusted net income of US$201.4 million or adjusted EPS of US$4.75 for full year 2016.
  • Operating income for 4Q17 came in at US$120.4 million, representing a 70% increase over operating income of US$70.6 million in 4Q16, as a result of a 2.9% increase in unit revenue per available seat mile (RASM), and a 4.2% decrease in unit costs. Operating margin for 4Q17 came in at 17.8%, compared to an operating margin of 11.7% in 4Q16.
  • For full year 2017, the Company reported operating income of US$440.1 million, representing an increase of 59% over operating income of US$276.1 million for full year 2016. Operating margin for full year 2017 came in at 17.4%, compared to an operating margin of 12.4% in 2016.
  • Total revenues for 4Q17 increased 12.4% to US$675.6 million. Yield per passenger mile increased 1.2% to 12.9 cents and RASM came in at 11.1 cents, or 2.9% above 4Q16.
  • For 4Q17, consolidated passenger traffic grew 11.3% while consolidated capacity grew 9.2%. As a result, consolidated load factor for the quarter increased 1.6 percentage points to 83.2%. For full year 2017, consolidated load factor was also 83.2%, 2.8 percentage points higher than 2016 on 8.8% capacity growth.
  • Operating cost per available seat mile (CASM) decreased 4.2%, from 9.5 cents in 4Q16 to 9.1 cents in 4Q17. CASM excluding fuel costs decreased 6.7% from 6.9 cents in 4Q16 to 6.5 cents in 4Q17, mainly as a result of a non-cash adjustment in our aircraft useful life assumptions, which significantly increased the depreciation expense in 4Q16.
  • Cash, short-term and long-term investments ended 2017 slightly over US$1.0 billion, representing 40% of the last twelve months' revenues.
  • Copa Holdings ended the year with a consolidated fleet of 100 aircraft - 66 Boeing 737-800s, 14 Boeing 737-700s, and 20 Embraer-190s.
  • For 2017, Copa Airlines ended the year with a consolidated on-time performance of 86.7% and a flight-completion factor of 99.4%, maintaining its position among the best in the industry.

Subsequent Events

  • In January 2018, the company took delivery of one Boeing 737-800, increasing the consolidated fleet to 101 aircraft.
  • Also in January 2018, the company was recognized by FlightStats - for the fifth consecutive year - as the most on-time airline in Latin America, and by OAG as the 4th most on-time airline in the world.
  • On February 1, 2018, the company announced three new destinations starting in July: Salvador and Fortaleza, our 8th and 9th destinations in Brazil, and Bridgetown, Barbados, our 16th destination in the Caribbean.
  • On February 21, 2018, the Board of Directors of Copa Holdings approved a 2018 quarterly dividend payment of 87 cents per share. Dividends will be distributed during the months of March, June, September and December. The first quarterly dividend of 87 cents per share will be paid on March 15 to shareholders on record as of March 5, 2018.

Consolidated Financial
& Operating Highlights

4Q17

4Q16

Variance vs. 4Q16

3Q17

Variance vs. 3Q17

FY 2017

FY 2016

Variance vs. 2016

Revenue Passengers Carried ('000)

2,460

2,199

11.9%

2,518

-2.3%

9,504

8,560

11.0%

RPMs (mm)

5,086

4,568

11.3%

5,330

-4.6%

19,914

17,690

12.6%

ASMs (mm)

6,111

5,597

9.2%

6,221

-1.8%

23,936

22,004

8.8%

Load Factor

83.2%

81.6%

1.6 p.p.

85.7%

-2.4 p.p.

83.2%

80.4%

2.8 p.p.

Yield

12.9

12.8

1.2%

12.0

7.5%

12.4

12.2

1.5%

PRASM (US$ Cents)

10.8

10.4

3.2%

10.3

4.5%

10.3

9.8

5.0%

RASM (US$ Cents)

11.1

10.7

2.9%

10.6

4.7%

10.6

10.1

4.6%

CASM (US$ Cents)

9.1

9.5

-4.2%

8.6

5.0%

8.7

8.8

-1.4%

CASM Excl. Fuel (US$ Cents)

6.5

6.9

-6.7%

6.3

2.7%

6.3

6.4

-1.7%

Fuel Gallons Consumed (Millions)

78.7

72.4

8.8%

80.0

-1.6%

307.0

284.3

8.0%

Avg. Price Per Fuel Gallon (US$ Dollars)

2.03

1.96

3.5%

1.82

11.0%

1.87

1.86

0.5%

Average Length of Haul (Miles)

2,067

2,078

-0.5%

2,117

-2.3%

2,095

2,067

1.4%

Average Stage Length (Miles)

1,292

1,244

3.9%

1,300

-0.6%

1,282

1,213

5.7%

Departures

32,183

30,499

5.5%

32,593

-1.3%

126,963

123,098

3.1%

Block Hours

106,750

98,150

8.8%

108,930

-2.0%

419,610

388,058

8.1%

Average Aircraft Utilization (Hours)

11.6

10.8

7.7%

11.7

-1.2%

11.4

10.6

7.9%

Operating Revenues (US$ mm)

675.6

601.3

12.4%

657.2

2.8%

2,527.6

2,221.8

13.8%

Operating Income (US$ mm)

120.4

70.6

70.4%

119.1

1.1%

440.1

276.1

59.4%

Operating Margin

17.8%

11.7%

6.1 p.p.

18.1%

-0.3 p.p.

17.4%

12.4%

5.0 p.p.

Net Income (US$ mm)

100.8

90.5

11.4%

103.8

-2.8%

370.0

334.5

10.6%

Adjusted Net Income (US$ mm) (1)

100.3

54.7

83.4%

100.8

-0.5%

367.2

201.4

82.4%

EPS - Basic and Diluted (US$)

2.38

2.14

11.3%

2.45

-2.8%

8.72

7.90

10.4%

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

2.36

1.29

83.2%

2.38

-0.5%

8.66

4.75

82.1%

# of Shares - Basic and Diluted ('000)

42,430

42,383

0.1%

42,430

0.0%

42,419

42,358

0.1%

(1) Adjusted Net Income and Adjusted EPS for 4Q17, 4Q16, 3Q17, 2017 and 2016 exclude non-cash charges/gains associated with the mark-to-market of fuel hedges and the impact of the Venezuelan currency devaluations.
Note: Attached to this press release is a reconciliation of non-IFRS financial measures to the comparable IFRS measures.

FULL 4Q17 EARNINGS RELEASE AVAILABLE FOR DOWNLOAD AT: http://investor.shareholder.com/copa/results.cfm

4Q17 EARNINGS RESULTS CONFERENCE CALL AND WEBCAST

Date:

Feb 22, 2018

Time:

11:00 AM US ET (11:00 AM 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

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 75 destinations in 31 countries in North, Central and South America and the Caribbean with one of the youngest and most modern fleets in the industry, consisting of 101 aircraft: 81 Boeing 737NG aircraft and 20 EMBRAER-190s. For more information visit:www.copa.com.

CONTACT: Copa Holdings S.A.
Investor Relations
Ph: 011 507 304-2774
www.copa.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.

CPA-G

Copa Holdings, S.A.

Income Statement - IFRS

(US$ Thousands)

Unaudited

Unaudited

%

Unaudited

%

Unaudited

Audited

%

4Q17

4Q16*

Change

3Q17

Change

2017

2016*

Change

Operating Revenues

Passenger revenue

658,001

584,250

12.6%

641,244

2.6%

2,462,419

2,155,167

14.3%

Cargo and mail revenue

14,841

14,063

5.5%

13,600

9.1%

55,290

53,989

2.4%

Other operating revenue

2,735

2,995

-8.7%

2,325

17.7%

9,847

12,697

-22.4%

Total Operating Revenue

675,578

601,308

12.4%

657,169

2.8%

2,527,556

2,221,852

13.8%

Operating Expenses

Fuel

159,556

142,087

12.3%

145,968

9.3%

572,746

528,996

8.3%

Wages, salaries, benefits and other employees' expenses

110,952

97,454

13.9%

103,775

6.9%

415,147

370,190

12.1%

Passenger servicing

26,481

25,320

4.6%

27,008

-2.0%

99,447

86,329

15.2%

Airport facilities and handling charges

42,238

41,616

1.5%

45,222

-6.6%

171,040

159,772

7.1%

Sales and distribution

51,474

50,626

1.7%

50,157

2.6%

200,413

193,984

3.3%

Maintenance, materials and repairs

31,932

34,452

-7.3%

39,777

-19.7%

124,709

121,781

2.4%

Depreciation and amortization

42,151

54,548

-22.7%

41,847

0.7%

164,345

159,277

3.2%

Flight operations

25,082

22,394

12.0%

26,535

-5.5%

101,647

88,188

15.3%

Aircraft rentals and other rentals

33,313

33,728

-1.2%

33,382

-0.2%

134,539

138,885

-3.1%

Cargo and courier expenses

2,218

1,764

25.8%

1,801

23.2%

7,375

6,099

20.9%

Other operating and administrative expenses

29,790

26,679

11.7%

22,569

32.0%

96,087

92,215

4.2%

Total Operating Expense

555,186

530,668

4.6%

538,041

3.2%

2,087,494

1,945,716

7.3%

Operating Profit

120,392

70,640

70.4%

119,128

1.1%

440,062

276,136

59.4%

Non-operating Income (Expense):

Finance cost

(8,725)

(8,894)

-1.9%

(8,639)

1.0%

(35,223)

(37,023)

-4.9%

Finance income

5,443

3,479

56.5%

4,801

13.4%

17,939

13,000

38.0%

Gain (loss) on foreign currency fluctuations

(5,676)

9,738

-158.3%

593

n/m

(5,218)

13,042

-140.0%

Net change in fair value of derivatives

539

24,341

-97.8%

2,946

-81.7%

2,801

111,642

-97.5%

Other non-operating income (expense)

(917)

(389)

136.0%

(616)

48.9%

(2,337)

(3,982)

-41.3%

Total Non-Operating Income/(Expense)

(9,335)

28,276

-133.0%

(916)

919.2%

(22,039)

96,679

-122.8%

Profit before taxes

111,057

98,915

12.3%

118,212

-6.1%

418,023

372,815

12.1%

Income tax expense

10,212

8,371

22.0%

14,416

-29.2%

48,000

38,271

25.4%

Net Profit

100,844

90,544

11.4%

103,796

-2.8%

370,022

334,544

10.6%

EPS - Basic and Diluted

2.38

2.14

11.3%

2.45

-2.8%

8.72

7.90

10.4%

Shares - Basic and Diluted

42,429,821

42,382,757

0.1%

42,429,841

0.0%

42,418,773

42,358,091

0.1%

* During 2017, the Company implemented a business, planning and financial consolidation system, which resulted in a new classification of the chart of accounts. Prior periods have been reclassified for ease of comparison.

Copa Holdings, S. A. and subsidiaries

Balance Sheet - IFRS

(US$ Thousands)

December 31

December 31

2017

2016

(Unaudited)

Audited*

ASSETS

Current Assets

Cash and cash equivalents

238,792

331,687

Restricted cash and cash equivalents

-

-

Short-term investments

705,108

483,002

Total cash, cash equivalents and short-term investments

943,900

814,689

Accounts receivable, net

115,323

113,408

Accounts receivable from related parties

318

499

Expendable parts and supplies, net

81,825

74,502

Prepaid expenses

45,421

58,370

Other current assets

11,701

7,650

TOTAL CURRENT ASSETS

1,198,488

1,069,118

Long-term investments

65,953

953

Long-term accounts receivable

2,444

1,957

Long-term prepaid expenses

26,130

26,398

Property and equipment, net

2,825,904

2,623,682

Intangible, net

81,115

69,502

Net pension asset

3,185

8,826

Deferred tax assets

18,571

18,339

Other Non-Current Assets

31,140

27,064

TOTAL NON-CURRENT ASSETS

3,054,442

2,776,721

TOTAL ASSETS

4,252,930

3,845,839

LIABILITIES AND EQUITY

Current Liabilities:

Current maturities of long-term debt

298,462

222,718

Accounts payable

125,613

104,590

Accounts payable to related parties

12,880

8,680

Air traffic liability

470,692

395,580

Frequent flyer deferred revenue

13,186

9,044

Taxes and interest payable

81,440

68,483

Employee benefits obligations

51,262

41,707

Income tax payable

3,700

1,401

Other Current Liabilities

1,156

4,385

TOTAL CURRENT LIABILITIES

1,058,391

856,588

Long-term debt

876,119

961,414

Frequent flyer deferred revenue long term

33,115

26,324

Other long - term liabilities

123,182

114,268

Deferred tax Liabilities

50,628

44,974

TOTAL NON-CURRENT LIABILITIES

1,083,044

1,146,980

TOTAL LIABILITIES

2,141,435

2,003,568

EQUITY

Issued Capital

Class A - 33,776,480 issued and 31,185,641 outstanding

21,030

20,988

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

7,466

7,466

Additional Paid-In Capital

72,953

64,986

Treasury Stock

(136,388)

(136,388)

Retained Earnings

1,780,299

1,552,547

Net Income

370,023

334,544

Other Comprehensive Income

(3,888)

(1,872)

TOTAL EQUITY

2,111,495

1,842,271

TOTAL LIABILITIES AND EQUITY

4,252,930

3,845,839

* During 2017, the Company implemented a business, planning and financial consolidation system, which resulted in a new classification of the chart of accounts. Prior periods have been reclassified for ease of comparison.

Copa Holdings, S. A. and subsidiaries

Consolidated Statement of Cash Flows

For the twelve months ended December 31,

(In US$ thousands)

2017

2016

2015

(Unaudited)

(Audited)

(Audited)

Cash flow from operating activities

727,333

594,590

316,863

Cash flow (used in) from investing activities

(578,159)

(179,909)

32,384

Cash flow used in financing activities

(204,757)

(248,625)

(357,466)

Net increase (decrease) in cash and cash equivalents

(55,583)

166,056

(8,219)

Cash and cash equivalents at January 1

331,687

204,715

221,443

Cash and cash equivalents at December 31

$ 238,792

$ 331,687

$ 204,715

Short-term investments

705,108

483,002

416,005

Long-term investments

65,953

953

861

Restricted cash and cash equivalents *

-

-

64,228

Total cash and cash equivalents and investments at December 31

$ 1,009,853

$ 815,642

$ 685,809

* Restricted cash corresponds to margin calls to secure derivative financial instruments transactions.

Copa Holdings, S.A.
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 Adjusted Net Income

and Adjusted EPS

4Q17

4Q16

3Q17

FY17

FY16

Net profit as Reported

$ 100,844

$ 90,544

$ 103,796

$ 370,022

$ 334,544

Special Items (adjustments):

Gain due to devaluation of Venezuelan Bolivar

$ (11,501)

$ (21,543)

Net change in fair value of derivatives

$ (539)

$ (24,341)

$ (2,946)

$ (2,801)

$ (111,642)

Adjusted Net Income

$ 100,305

$ 54,702

$ 100,850

$ 367,222

$ 201,359

Shares used for Computation (in thousands)

Basic and Diluted

$ 42,430

$ 42,383

$ 42,430

$ 42,419

$ 42,358

Adjusted earnings per share - Basic and Diluted

$ 2.36

$ 1.29

$ 2.38

$ 8.66

$ 4.75

Reconciliation of Operating Costs per ASM

Excluding Fuel (CASM Excl. Fuel)

4Q17

4Q16

3Q17

FY17

FY16

Operating Costs per ASM as Reported (in US$ Cents)

9.1

9.5

8.6

8.7

8.8

Aircraft fuel per ASM (in US$ Cents)

(2.6)

(2.5)

(2.3)

(2.4)

(2.4)

Operating Costs per ASM excluding fuel (in US$ Cents)

6.5

6.9

6.3

6.3

6.4

View original content:http://www.prnewswire.com/news-releases/copa-holdings-reports-net-income-of-1008-million-and-eps-of-238-for-the-fourth-quarter-of-2017-300602186.html

SOURCE Copa Holdings, S.A.

COPA Holdings SA published this content on 21 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 February 2018 21:55:14 UTC.

Original documenthttp://investor.shareholder.com/copa/releasedetail.cfm?ReleaseID=1058264

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