Copa
Holdings, S.A.
(Registrant)
|
|
Date: 11/12/2008 | |
By:
/s/ Victor
Vial
Name:
Victor Vial
Title:
CFO
|
· |
Copa
Holdings reported net income of US$30.3 million for 3Q08, or diluted
earnings per share (EPS) of US$0.70, as compared to net income of
US$46.8
million or diluted EPS of US$1.08 in 3Q07.
|
· |
Excluding
special items, which for 3Q08 include a US$15.5 million non-cash
charge
associated with the mark-to-market of fuel hedge contracts, Copa
Holdings
would have reported an adjusted net income of $45.8 million, or $1.05
per
share, compared to an adjusted net income of US$39.1 million or US$0.90
per share for 3Q07. See the accompanying reconciliation of non-GAAP
financial information to GAAP financial information included in financial
tables section of this earnings
release.
|
· |
Operating
income for 3Q08, came in at US$57.1 million, as compared to operating
income of US$54.7 million for 3Q07. Excluding the special items recorded
in 3Q07, operating income increased 19.6%, from US$47.7 million to
US$57.1
million.
|
· |
Operating
margin decreased 4.3 percentage points, from 20.7% in 3Q07 to 16.4%
in
3Q08, mainly due to higher fuel prices. Excluding special items recorded
in 3Q07, operating margin decreased 1.7 percentage points.
|
· |
In
3Q08, total revenues increased to US$348.9 million, representing
growth of
31.8%, on a 9.3% capacity expansion. Yield per passenger mile increased
16.5% to 18.6 cents and operating revenue per available seat mile
(RASM)
increased 20.6% to 15.2 cents.
|
· |
Revenue
passenger miles (RPMs) increased 13.7% from 1.56 billion in 3Q07
to 1.78
billion in 3Q08, and available seat miles (ASMs) increased 9.3% from
2.10
billion in 3Q07 to 2.30 billion in 3Q08, with the Copa Airlines segment
increasing 14.2% year-over-year and Aero Republica decreasing 9.8%,
mainly
as a result of its down-gauge to an Embraer-190 fleet.
|
· |
Consolidated
load factor increased 3.0 percentage points to 77.3%, driven by a
year-over-year load factor improvement at both Copa Airlines and
Aero
Republica. Copa
Airlines´ load factor averaged 80.3% for 3Q08.
|
· |
Operating
cost per available seat mile (CASM) increased 27.2%, from 10.0 cents
in
3Q07 to 12.7 cents in 3Q08. CASM, excluding fuel costs and special
items,
increased 5.1% from 6.9 cents in 3Q07 to 7.3 cents in 3Q08, mainly
due to
a 37.4% increase in Aero Republica’s unit costs driven a stronger
Colombian currency, the effect of the down-gauge to an Embraer-190
fleet,
as well as additional aircraft and engine maintenance events related
to
the MD-80 fleet.
|
· |
Liquidity
including cash, short term and long term investments, plus committed
credit lines of US$19.5 million, ended the quarter at US$395.8 million,
representing 32% of last twelve months revenues.
|
· |
In
August, Copa Airlines announced new service to three additional
destinations: Oranjestad (Aruba), Valencia (Venezuela) and Santa
Cruz
(Bolivia). By year-end, Copa Airlines´ network is expected to serve 45
destinations in 24 countries in the Americas - by far, the most extensive
network for intra-Latin American
travel.
|
· |
On
August 21, Copa Airlines began service from Panama and connecting
cities
to Belo Horizonte, Brazil, becoming the Airlines´ fourth Brazilian
destination.
|
· |
Copa
Airlines ended the quarter with a fleet of 40 aircraft, consisting
of 27
Boeing 737 Next Generation aircraft and 13 Embraer-190 aircraft.
During
the fourth quarter, Copa Airlines expects to take delivery of two
additional Embraer-190 aircraft to end the year with 42 aircraft.
Copa
Airlines currently has a contractual commitment for the delivery
of a
Boeing 737-800 aircraft in the month of November. This delivery will
be
delayed until 1Q09 as a result of Boeing’s Machinist Union strike. Aero
Republica received two Embraer-190 aircraft and ended the quarter
with a
fleet of 13 aircraft, consisting of nine Embraer-190 and four MD-80
aircraft. Copa Holdings ended the quarter with a consolidated fleet
of 53
aircraft.
|
· |
For
3Q08, Copa Airlines reported on-time performance of 86.3% and a
flight-completion factor of 99.3%, maintaining its position among
the best
in the industry. Additionally, Aero Republica’s on- time performance came
in at 89.8%, leading the Colombian market both in domestic and
international on-time performance.
|
· |
In
September, Copa Airlines was named "Best Airline" in Central America
and
the Caribbean for the fifth consecutive year by the independent aviation
industry research company Skytrax.
|
Consolidated
Financial & Operating Highlights
|
3Q08
|
3Q07
|
%
Change
|
2Q08
|
%
Change
|
|||||||||||
RPMs
(millions)
|
1,779
|
1,565
|
13.7
|
%
|
1,559
|
14.1
|
%
|
|||||||||
ASMs
(mm)
|
2,300
|
2,104
|
9.3
|
%
|
2,093
|
9.9
|
%
|
|||||||||
Load
Factor
|
77.3
|
%
|
74.4
|
%
|
3.0
|
p.p. |
74.5
|
%
|
2.9
|
p.p. | ||||||
Yield
|
18.6
|
15.9
|
16.5
|
%
|
18.0
|
3.1
|
%
|
|||||||||
PRASM
(cents)
|
14.4
|
11.8
|
21.2
|
%
|
13.4
|
7.0
|
%
|
|||||||||
RASM
(cents)
|
15.2
|
12.6
|
20.6
|
%
|
14.2
|
6.6
|
%
|
|||||||||
CASM
(cents)
|
12.7
|
10.0
|
27.2
|
%
|
12.7
|
-0.4
|
%
|
|||||||||
Adjusted
CASM (cents) (1)
|
12.7
|
10.3
|
23.1
|
%
|
12.7
|
-0.4
|
%
|
|||||||||
Adjusted
CASM Excl. Fuel (cents) (1)
|
7.3
|
6.9
|
5.1
|
%
|
7.8
|
-6.4
|
%
|
|||||||||
Breakeven
Load Factor
|
64.5
|
%
|
59.7
|
%
|
4.8
|
p.p. |
66.4
|
%
|
-1.9
|
p.p. | ||||||
Operating
Revenues (US$ mm)
|
348.9
|
264.6
|
31.8
|
%
|
297.9
|
17.1
|
%
|
|||||||||
EBITDAR
(US$ mm)
(2)
|
63.9
|
80.6
|
-20.7
|
%
|
66.7
|
-4.2
|
%
|
|||||||||
Adjusted
EBITDAR (US$ mm)
(2)(3)
|
79.4
|
72.9
|
8.9
|
%
|
61.1
|
30.0
|
%
|
|||||||||
EBITDAR
Margin (2)
|
18.3
|
%
|
30.4
|
%
|
-12.1
|
p.p. |
22.4
|
%
|
-4.1
|
p.p. | ||||||
Adjusted
EBITDAR Margin (2)(3)
|
22.7
|
%
|
27.5
|
%
|
-4.8
|
p.p. |
20.5
|
%
|
2.3
|
p.p. | ||||||
Operating
Income (US$ mm)
|
57.1
|
54.7
|
4.3
|
%
|
31.2
|
83.0
|
%
|
|||||||||
Adjusted
Operating Income (US$ mm)(1)
|
57.1
|
47.7
|
19.6
|
%
|
31.2
|
83.0
|
%
|
|||||||||
Operating
Margin
|
16.4
|
%
|
20.7
|
%
|
-4.3
|
p.p. |
10.5
|
%
|
5.9
|
p.p. | ||||||
Adjusted
Operating Margin (1)
|
16.4
|
%
|
18.0
|
%
|
-1.7
|
p.p. |
10.5
|
%
|
5.9
|
p.p. | ||||||
Net
Income (US$ mm)
|
30.3
|
46.8
|
-35.2
|
%
|
30.4
|
-0.3
|
%
|
|||||||||
Adjusted
Net Income (US$ mm) (3)
|
45.8
|
39.1
|
17.1
|
%
|
24.8
|
85.1
|
%
|
|||||||||
EPS
- Basic (US$)
|
0.70
|
1.09
|
-35.6
|
%
|
0.70
|
-0.3
|
%
|
|||||||||
Adjusted
EPS - Basic (US$) (3)
|
1.06
|
0.91
|
16.4
|
%
|
0.57
|
85.1
|
%
|
|||||||||
EPS
- Diluted (US$)
|
0.70
|
1.08
|
-35.2
|
%
|
0.70
|
-0.3
|
%
|
|||||||||
Adjusted
EPS - Diluted (US$)
(3)
|
1.05
|
0.90
|
17.1
|
%
|
0.57
|
85.0
|
%
|
|||||||||
Weighted
Avg. # of Shares - Basic (000)
|
43,195
|
42,938
|
0.6
|
%
|
43,195
|
0.0
|
%
|
|||||||||
Weighted
Avg. # of Shares - Diluted (000)
|
43,491
|
43,479
|
0.0
|
%
|
43,465
|
0.1
|
%
|
Financial
Outlook (US GAAP)
|
2008
- Full Year
|
ASMs
(billion)
|
+/-8.8
|
Average
Load Factor
|
+/-76%
|
RASM
(cents)
|
+/-14.5
|
CASM
Ex-fuel (cents)
|
+/-
7.5
|
Operating
Margin
|
15-17%
|
Financial
Outlook (US GAAP)
|
2009
- Full Year
|
ASMs
(billion)
|
+/-10.0
|
Average
Load Factor
|
+/-75%
|
RASM
(cents)
|
+/-13.6
|
CASM
Ex-fuel (cents)
|
+/-
7.5
|
Operating
Margin
|
16.0-18.0%
|
|
Unaudited
|
Unaudited
|
%
|
Unaudited
|
%
|
|||||||||||
|
3Q08
|
3Q07
|
Change
|
2Q08
|
Change
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Copa
Holdings (Consolidated)
|
|
|
|
|
|
|||||||||||
Revenue
passengers carried (thousands)
|
1,302
|
1,253
|
4.0
|
%
|
1,168
|
11.5
|
%
|
|||||||||
Revenue
passengers miles (RPMs) (mm)
|
1,779
|
1,565
|
13.7
|
%
|
1,559
|
14.1
|
%
|
|||||||||
Available
seat miles (ASMs) (mm)
|
2,300
|
2,104
|
9.3
|
%
|
2,093
|
9.9
|
%
|
|||||||||
Load
factor
|
77.3
|
%
|
74.4
|
%
|
3.0
|
p.p. |
74.5
|
%
|
2.9
|
p.p. | ||||||
Break-even
load factor
|
64.5
|
%
|
59.7
|
%
|
4.8
|
p.p. |
66.4
|
%
|
-1.9
|
p.p. | ||||||
Yield
(cents)
|
18.6
|
15.9
|
16.5
|
%
|
18.0
|
3.0
|
%
|
|||||||||
RASM
(cents)
|
15.2
|
12.6
|
20.6
|
%
|
14.2
|
6.6
|
%
|
|||||||||
CASM
(cents)
|
12.7
|
10.0
|
27.2
|
%
|
12.7
|
-0.4
|
%
|
|||||||||
Adj.CASM
- excl. special charges and fuel (cents)
|
7.3
|
6.9
|
5.1
|
%
|
7.8
|
-6.4
|
%
|
|||||||||
Fuel
gallons consumed (mm)
|
32.4
|
29.9
|
8.4
|
%
|
29.7
|
9.4
|
%
|
|||||||||
Average
price of Fuel - Net of Hedges (US$)
|
3.81
|
2.34
|
62.7
|
%
|
3.47
|
9.9
|
%
|
|||||||||
|
||||||||||||||||
Copa
Segment
|
||||||||||||||||
Revenue
passengers miles (RPMs) (mm)
|
1,536
|
1,315
|
16.8
|
%
|
1,357
|
13.2
|
%
|
|||||||||
Available
seat miles (ASMs) (mm)
|
1,914
|
1,676
|
14.2
|
%
|
1,732
|
10.5
|
%
|
|||||||||
Load
factor
|
80.3
|
%
|
78.5
|
%
|
1.8
|
p.p. |
78.3
|
%
|
77.3
|
p.p. | ||||||
Break-even
load factor
|
65.0
|
%
|
63.3
|
%
|
1.7
|
p.p. |
65.9
|
%
|
-0.9
|
p.p. | ||||||
Yield
(US$ cents)
|
17.1
|
14.5
|
17.7
|
%
|
16.6
|
2.8
|
%
|
|||||||||
RASM
(cents)
|
14.6
|
12.1
|
20.4
|
%
|
13.9
|
5.0
|
%
|
|||||||||
CASM
(cents)
|
11.9
|
10.0
|
19.5
|
%
|
11.9
|
-0.3
|
%
|
|||||||||
Adj.CASM
- excl. special charges and fuel (cents)
|
6.8
|
6.8
|
0.6
|
%
|
7.2
|
-5.9
|
%
|
|||||||||
Fuel
gallons consumed (mm)
|
26.2
|
22.8
|
15.0
|
%
|
23.7
|
10.6
|
%
|
|||||||||
Average
price of Fuel - Net of Hedges (US$)
|
3.69
|
2.30
|
60.5
|
%
|
3.38
|
9.1
|
%
|
|||||||||
|
||||||||||||||||
Aero
Republica Segment
|
||||||||||||||||
Revenue
passengers miles (RPMs) (mm)
|
243
|
249
|
-2.6
|
%
|
202
|
20.2
|
%
|
|||||||||
Available
seat miles (ASMs) (mm)
|
386
|
428
|
-9.8
|
%
|
361
|
7.1
|
%
|
|||||||||
Load
factor
|
62.9
|
%
|
58.2
|
%
|
4.6
|
p.p. |
56.0
|
%
|
77.3
|
p.p. | ||||||
Break-even
load factor
|
58.4
|
%
|
45.9
|
%
|
12.5
|
p.p. |
61.7
|
%
|
77.3
|
p.p. | ||||||
Yield
(cents)
|
27.8
|
23.4
|
19.1
|
%
|
27.3
|
1.9
|
%
|
|||||||||
RASM
(cents)
|
19.1
|
14.6
|
31.2
|
%
|
16.7
|
14.3
|
%
|
|||||||||
CASM
(cents)
|
17.6
|
10.2
|
72.1
|
%
|
17.5
|
0.9
|
%
|
|||||||||
Adj.CASM
- excl. special charges and fuel (cents)
|
10.6
|
7.7
|
37.3
|
%
|
11.2
|
-5.0
|
%
|
|||||||||
Fuel
gallons consumed (mm)
|
6.3
|
7.2
|
-12.5
|
%
|
6.0
|
4.9
|
%
|
|||||||||
Average
price of Fuel - Net of Hedges (US$)
|
4.32
|
2.48
|
74.2
|
%
|
3.38
|
27.5
|
%
|
|
Unaudited
|
Unaudited
|
%
|
Unaudited
|
%
|
|||||||||||
|
3Q08
|
3Q07
|
Change
|
2Q08
|
Change
|
|||||||||||
Operating
Revenues
|
|
|
|
|
|
|||||||||||
Passenger
Revenue
|
330,319
|
249,346
|
32.5
|
%
|
280,919
|
17.6
|
%
|
|||||||||
Cargo,
mail and other
|
18,597
|
15,288
|
21.6
|
%
|
17,010
|
9.3
|
%
|
|||||||||
Total
Operating Revenue
|
348,916
|
264,634
|
31.8
|
%
|
297,929
|
17.1
|
%
|
|||||||||
|
||||||||||||||||
Operating
Expenses
|
||||||||||||||||
Aircraft
fuel
|
124,678
|
71,364
|
74.7
|
%
|
104,239
|
19.6
|
%
|
|||||||||
Salaries
and benefits
|
35,247
|
29,001
|
21.5
|
%
|
32,553
|
8.3
|
%
|
|||||||||
Passenger
servicing
|
25,885
|
22,944
|
12.8
|
%
|
23,375
|
10.7
|
%
|
|||||||||
Commissions
|
17,600
|
15,820
|
11.3
|
%
|
17,818
|
-1.2
|
%
|
|||||||||
Reservations
and sales
|
14,048
|
13,050
|
7.6
|
%
|
14,505
|
-3.2
|
%
|
|||||||||
Maintenance,
material and repairs
|
15,199
|
13,384
|
13.6
|
%
|
16,180
|
-6.1
|
%
|
|||||||||
Depreciation
|
11,132
|
9,056
|
22.9
|
%
|
10,433
|
6.7
|
%
|
|||||||||
Flight
operations
|
14,751
|
12,242
|
20.5
|
%
|
14,015
|
5.3
|
%
|
|||||||||
Aircraft
rentals
|
10,245
|
10,478
|
-2.2
|
%
|
12,012
|
-14.7
|
%
|
|||||||||
Landing
fees and other rentals
|
8,597
|
6,818
|
26.1
|
%
|
7,557
|
13.8
|
%
|
|||||||||
Other
|
14,461
|
4,748
|
204.6
|
%
|
14,047
|
2.9
|
%
|
|||||||||
Special
fleet charges
|
-
|
1,009
|
-
|
-
|
-
|
|||||||||||
Total
Operating Expense
|
291,843
|
209,913
|
39.0
|
%
|
266,734
|
9.4
|
%
|
|||||||||
|
|
|
|
|
||||||||||||
Operating
Income
|
57,073
|
54,721
|
4.3
|
%
|
31,195
|
83.0
|
%
|
|||||||||
|
||||||||||||||||
Non-operating
Income (Expense):
|
||||||||||||||||
Interest
expense
|
(10,385
|
)
|
(11,524
|
)
|
-9.9
|
%
|
(9,815
|
)
|
5.8
|
%
|
||||||
Interest
capitalized
|
391
|
719
|
-45.6
|
%
|
484
|
-19.2
|
%
|
|||||||||
Interest
income
|
2,903
|
3,259
|
-10.9
|
%
|
2,596
|
11.8
|
%
|
|||||||||
Other,
net
|
(17,894
|
)
|
3,496
|
-611.9
|
%
|
9,479
|
-288.8
|
%
|
||||||||
Total
Non-Operating Income/(Expense)
|
(24,985
|
)
|
(4,050
|
)
|
516.9
|
%
|
2,744
|
-1010.7
|
%
|
|||||||
|
|
|
|
|
|
|||||||||||
Income
before Income Taxes
|
32,088
|
50,670
|
-36.7
|
%
|
33,938
|
-5.5
|
%
|
|||||||||
|
||||||||||||||||
Provision
for Income Taxes
|
1,745
|
3,848
|
-54.7
|
%
|
3,507
|
-50.2
|
%
|
|||||||||
|
|
|
|
|
|
|||||||||||
Net
Income
|
30,343
|
46,822
|
-35.2
|
%
|
30,431
|
-0.3
|
%
|
|||||||||
|
||||||||||||||||
|
||||||||||||||||
Basic
EPS
|
0.70
|
1.09
|
-35.6
|
%
|
0.70
|
-0.3
|
%
|
|||||||||
Basic
Shares
|
43,194,566
|
42,937,844
|
0.6
|
%
|
43,194,566
|
0.0
|
%
|
|||||||||
|
||||||||||||||||
Diluted
EPS
|
0.70
|
1.08
|
-35.2
|
%
|
0.70
|
-0.3
|
%
|
|||||||||
Diluted
Shares
|
43,490,728
|
43,479,214
|
0.0
|
%
|
43,464,749
|
0.1
|
%
|
September
30,
|
June
30,
|
September
30,
|
||||||||
|
2008
|
2008
|
2007
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||
ASSETS
|
|
|
|
|||||||
Current
Assets:
|
|
|
|
|||||||
Cash
and cash equivalents
|
$
|
200,272
|
$
|
223,505
|
$
|
244,127
|
||||
Short-term
investments
|
152,942
|
86,500
|
22,500
|
|||||||
Total
cash, cash equivalents and short-term investments
|
353,214
|
310,005
|
266,627
|
|||||||
|
|
|
|
|||||||
Accounts
receivable, net of allowance for doubtful accounts
|
103,362
|
97,525
|
106,581
|
|||||||
Accounts
receivable from related parties
|
1,710
|
2,108
|
1,440
|
|||||||
Expendable
parts and supplies, net of allowance for obsolescence
|
17,167
|
18,287
|
11,686
|
|||||||
Prepaid
expenses
|
26,689
|
23,173
|
18,211
|
|||||||
Other
current assets
|
8,954
|
23,395
|
9,430
|
|||||||
Total
Current Assets
|
511,096
|
474,493
|
413,976
|
|||||||
|
|
|
|
|||||||
Long-term
investments
|
23,055
|
17,730
|
21,038
|
|||||||
|
|
|
|
|||||||
Property
and Equipment:
|
|
|
|
|||||||
Owned
property and equipment:
|
|
|
|
|||||||
Flight
equipment
|
1,309,928
|
1,300,486
|
1,107,952
|
|||||||
Other
equipment
|
53,406
|
53,263
|
48,628
|
|||||||
|
1,363,334
|
1,353,749
|
1,156,580
|
|||||||
Less:
Accumulated depreciation
|
(164,820
|
)
|
(155,915
|
)
|
(127,760
|
)
|
||||
|
1,198,514
|
1,197,834
|
1,028,820
|
|||||||
Purchase
deposits for flight equipment
|
68,738
|
64,567
|
73,004
|
|||||||
Total
Property and Equipment
|
1,267,252
|
1,262,401
|
1,101,824
|
|||||||
|
|
|
|
|||||||
Other
Assets:
|
|
|
|
|||||||
Net
pension asset
|
1,463
|
1,236
|
868
|
|||||||
Goodwill
|
22,421
|
25,355
|
24,100
|
|||||||
Intangible
asset
|
32,876
|
37,177
|
35,336
|
|||||||
Other
assets
|
30,811
|
31,020
|
27,455
|
|||||||
Total
Other Assets
|
87,571
|
94,788
|
87,759
|
|||||||
Total
Assets
|
$
|
1,888,974
|
$
|
1,849,412
|
$
|
1,624,596
|
||||
|
|
|
|
|||||||
|
|
|
|
|||||||
LIABILITIES
AND SHAREHOLDER'S EQUITY
|
|
|
|
|||||||
Current
Liabilities:
|
|
|
|
|||||||
Current
maturities of long-term debt
|
$
|
119,150
|
$
|
100,454
|
$
|
110,777
|
||||
Accounts
payable
|
56,030
|
48,213
|
52,828
|
|||||||
Accounts
payable to related parties
|
8,453
|
9,511
|
6,040
|
|||||||
Air
traffic liability
|
214,641
|
195,579
|
152,352
|
|||||||
Taxes
and interest payable
|
39,437
|
38,208
|
43,622
|
|||||||
Accrued
expenses payable
|
44,966
|
44,599
|
40,858
|
|||||||
Other
current liabilities
|
15,453
|
4,190
|
9,544
|
|||||||
Total
Current Liabilities
|
498,130
|
440,754
|
416,020
|
|||||||
|
|
|
|
|||||||
Non-Current
Liabilities:
|
|
|
|
|||||||
Long-term
debt
|
762,977
|
795,820
|
696,692
|
|||||||
Post
employment benefits liability
|
1,846
|
1,897
|
1,996
|
|||||||
Other
long-term liabilities
|
9,625
|
10,965
|
9,209
|
|||||||
Deferred
tax liabilities
|
6,280
|
8,375
|
5,291
|
|||||||
Total
Non-Current Liabilities
|
780,728
|
817,057
|
713,188
|
|||||||
Total
Liabilities
|
1,278,858
|
1,257,811
|
1,129,209
|
|||||||
|
|
|
|
|||||||
Shareholders'
Equity:
|
|
|
|
|||||||
Class
A - 30,416,440 shares issued and outstanding
|
20,761
|
20,761
|
20,586
|
|||||||
Class
B - 12,778,125 shares issued and outstanding
|
8,722
|
8,722
|
8,722
|
|||||||
Additional
paid in capital
|
12,299
|
11,160
|
6,827
|
|||||||
Retained
earnings
|
575,666
|
545,322
|
456,123
|
|||||||
Accumulated
other comprehensive income (loss)
|
(7,332
|
)
|
5,636
|
3,129
|
||||||
Total
Shareholders' Equity
|
610,116
|
591,601
|
495,387
|
|||||||
Total
Liabilities and Shareholders' Equity
|
$
|
1,888,974
|
$
|
1,849,412
|
$
|
1,624,596
|
Reconciliation
of EBITDAR
|
|
|
|
|||||||
Excluding
Special Items
|
3Q08
|
3Q07
|
2Q08
|
|||||||
|
|
|
|
|||||||
Net
income as Reported
|
$
|
30,343
|
$
|
46,822
|
$
|
30,431
|
||||
|
||||||||||
Interest
Expense
|
(10,385
|
)
|
(11,524
|
)
|
(9,815
|
)
|
||||
Capitalized
Interest
|
391
|
719
|
484
|
|||||||
Interest
Income
|
2,903
|
3,259
|
2,596
|
|||||||
Income
Taxes
|
(1,745
|
)
|
(3,848
|
)
|
(3,507
|
)
|
||||
EBIT
|
39,179
|
58,216
|
40,674
|
|||||||
|
||||||||||
Depreciation
and Amortization
|
11,132
|
9,056
|
10,433
|
|||||||
EBITDA
|
50,311
|
67,272
|
51,107
|
|||||||
|
||||||||||
Aircraft
Rent
|
10,245
|
10,478
|
12,012
|
|||||||
Other
Rentals
|
3,341
|
2,814
|
3,610
|
|||||||
EBITDAR
|
$
|
63,897
|
$
|
80,564
|
$
|
66,729
|
||||
|
||||||||||
Special
Items (adjustments):
|
||||||||||
Unrealized
(gain) loss on fuel hedging instruments (1)
|
15,479
|
(677
|
)
|
(5,679
|
)
|
|||||
Special
Items (2)
|
-
|
(7,010
|
)
|
-
|
||||||
Adjusted
EBITDAR
|
$
|
79,376
|
$
|
72,878
|
$
|
61,050
|
Reconciliation
of Operating Income
|
|
|
|
|||||||
Excluding
Special Items
|
3Q08
|
3Q07
|
2Q08
|
|||||||
|
|
|
|
|||||||
Operating
Income as Reported
|
$
|
57,073
|
$
|
54,721
|
$
|
31,195
|
||||
|
||||||||||
Special
Items (adjustments):
|
||||||||||
Special
Items, net (2)
|
-
|
(7,010
|
)
|
-
|
||||||
Adjusted
Operating Income
|
$
|
57,073
|
$
|
47,711
|
$
|
31,195
|
Reconciliation
of Net Income
|
|
|
|
|||||||
Excluding
Special Items
|
3Q08
|
3Q07
|
2Q08
|
|||||||
|
|
|
|
|||||||
Net
income as Reported
|
$
|
30,343
|
$
|
46,822
|
$
|
30,431
|
||||
|
|
|
|
|||||||
Special
Items (adjustments):
|
|
|
|
|||||||
Unrealized
gain (loss) on fuel hedging instruments (1)
|
15,479
|
(677
|
)
|
(5,679
|
)
|
|||||
Special
Items, net (2)
|
-
|
(7,010
|
)
|
-
|
||||||
Adjusted
Net Income
|
$
|
45,822
|
$
|
39,136
|
$
|
24,752
|
||||
|
|
|
|
|||||||
Shares
used for Computation (in thousands)
|
|
|
|
|||||||
Basic
|
43,195
|
42,938
|
43,195
|
|||||||
Diluted
|
43,491
|
43,479
|
43,465
|
|||||||
|
|
|
|
|||||||
Adjusted
earnings per share
|
|
|
|
|||||||
Basic
|
1.06
|
0.91
|
0.57
|
|||||||
Diluted
|
1.05
|
0.90
|
0.57
|
Reconciliation
Operating Costs per ASM
|
|
|
|
|||||||
Excluding
Fuel and Special Items
|
3Q08
|
3Q07
|
2Q08
|
|||||||
|
|
|
|
|||||||
Operating
Costs per ASM as Reported
|
12.7
|
10.0
|
12.7
|
|||||||
Aircraft
fuel per ASM
|
5.4
|
3.4
|
5.0
|
|||||||
Operating
Costs per ASM excluding fuel
|
7.3
|
6.6
|
7.8
|
|||||||
Special
Items (adjustments):
|
|
|
|
|||||||
Special
Items per ASM, net (2)
|
-
|
0.3
|
-
|
|||||||
Operating
expenses excluding fuel and special items
|
7.3
|
6.9
|
7.8
|
(1) |
The
3Q08 period included a non-cash charge of US$15.5 million, the 3Q07
and
2Q07 periods included non-cash gains of US$0.7 million and US$5.7
million,
respectively, resulting from the mark-to-market accounting for changes
in
the fair value of fuel hedging
instruments.
|
(2) |
Special
items for the 3Q07 period include a US$8.0 million pre-tax non-recurring
gain related to insurance proceeds in excess of aircraft book
value and a
US$1.0 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.
|