Copa Holdings, S.A.
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(Registrant)
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Date:
02/19/2009
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By:
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/s/ Victor Vial
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Name: Victor
Vial
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Title: CFO
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·
|
Copa
Holdings reported net income of US$51.9 million for 4Q08 or diluted
earnings per share (EPS) of US$1.20, as compared to net income of US$35.5
million or diluted EPS of US$0.82 in 4Q07. Excluding special
items, which for 4Q08 include a US$12.2 million non-cash charge associated
with the mark-to-market of fuel hedge contracts, Copa Holdings would have
reported an adjusted net income of $64.1 million, or $1.48 per
share. See the accompanying reconciliation of non-GAAP
financial information to GAAP financial information included in financial
tables section of this earnings
release.
|
·
|
Net
income for full year 2008 reached US$152.2 million or diluted EPS of
US$3.50, compared to US$161.8 million or diluted EPS of US$3.72 for full
year 2007. Excluding special items, which for 2008 include a
US$20.2 million non-cash charge associated with the mark-to-market of fuel
hedge contracts, Copa Holdings would have reported an adjusted net income
of $172.4 million, or $3.97 per
share.
|
·
|
The
company reported record operating income for 4Q08, reaching US$84.0
million, a 95.5% increase compared to operating income of US$43.0 million
recorded in 4Q07. Operating margin increased 9.2 percentage points, from
15.1% in 4Q07 to 24.3% in 4Q08, mainly due higher unit
revenues.
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·
|
The
Company reported operating income of US$224.0 million for full year 2008,
a 13.4% increase as compared to operating income of US$197.5 million in
2007. Operating margin for 2008 reached 17.4%, one of the best margins in
the airline industry.
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·
|
Total
revenues for 4Q08 increased 21.6% to US$346.1 million. Yield per passenger
mile increased 6.0% to 18.5 cents and operating revenue per available seat
mile (RASM) increased 5.8% to 14.6
cents.
|
·
|
For
4Q08 consolidated passenger traffic grew 15.5% while capacity increased
15.0%. As a result, consolidated load factor for the quarter
increased 0.3 percentage points to
74.1%.
|
·
|
Operating
cost per available seat mile (CASM) decreased 5.7%, from 11.7 cents in
4Q07 to 11.0 cents in 4Q08. CASM, excluding fuel costs and
special items, decreased 5.4% from 7.6 cents in 4Q07 to 7.2 cents in 4Q08,
mainly due to lower average
commissions.
|
·
|
The
company ended the year with a strong cash position, totaling US$408.1
million in cash, short term and long term investment, which represent
approximately 32% of last twelve months´ revenues. This figure
includes US$47.3 million in restricted cash, of which $39.7 million are
collateral for out-of-money hedge contracts related to future
quarters. Additionally, the company has committed lines of
credit totaling $31.1 million.
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·
|
In
4Q08, Copa Airlines began service to three new
destinations: Oranjestad (Aruba), Valencia (Venezuela) and
Santa Cruz (Bolivia). Copa Airlines´ network currently serves 45
destinations in 24 countries in the Americas – by far, the most extensive
network for intra-Latin American
travel.
|
·
|
During
the fourth quarter, Copa Airlines took delivery of two Embraer-190
aircraft. Copa Airlines ended the year with a fleet of 42
aircraft, consisting of 27 Boeing 737 Next Generation aircraft and 15
Embraer-190 aircraft. Copa Holdings ended the year with a consolidated
fleet of 55 aircraft.
|
·
|
For
2008, Copa Airlines reported on-time performance of 87.5% and a
flight-completion factor of 99.6%, maintaining its position among the best
in the industry. Additionally, Aero Republica’s on- time
performance came in at 84.2%, leading the Colombian market both in
domestic and international on-time
performance.
|
Consolidated Financial &
Operating Highlights
|
4Q08
|
Variance
vs. 4Q07
|
Variance
vs. 3Q08
|
FY 2008
|
Variance
vs. 2007
|
|||||||||||||||
RPMs
(millions)
|
1,760 | 15.5 | % | -1.1 | % | 6,717 | 14.6 | % | ||||||||||||
ASMs
(mm)
|
2,375 | 15.0 | % | 3.3 | % | 8,845 | 11.7 | % | ||||||||||||
Load
Factor
|
74.1 | % |
0.3
p.p.
|
-3.3
p.p.
|
75.9 | % |
1.9
p.p.
|
|||||||||||||
Yield
|
18.5 | 6.0 | % | -0.3 | % | 18.1 | 9.8 | % | ||||||||||||
PRASM
(cents)
|
13.7 | 6.5 | % | -4.5 | % | 13.8 | 12.7 | % | ||||||||||||
RASM
(cents)
|
14.6 | 5.8 | % | -4.0 | % | 14.6 | 12.3 | % | ||||||||||||
CASM
(cents)
|
11.0 | -5.7 | % | -13.1 | % | 12.0 | 14.9 | % | ||||||||||||
Adjusted CASM (cents)
(1)
|
11.0 | -3.1 | % | -13.1 | % | 12.0 | 14.7 | % | ||||||||||||
Adjusted CASM Excl.
Fuel (cents) (1)
|
7.2 | -5.4 | % | -1.2 | % | 7.5 | 4.6 | % | ||||||||||||
Breakeven
Load Factor
|
56.9 | % |
-4.1
p.p.
|
-7.6
p.p.
|
63.0 | % |
8.5
p.p.
|
|||||||||||||
Operating
Revenues (US$ mm)
|
346.1 | 21.6 | % | -0.8 | % | 1,288.8 | 25.5 | % | ||||||||||||
EBITDAR (US$ mm)
(2)
|
94.0 | 30.2 | % | 47.0 | % | 301.0 | 2.4 | % | ||||||||||||
Adjusted EBITDAR (US$
mm)
(2)(3)
|
106.1 | 44.3 | % | 33.7 | % | 321.2 | 13.0 | % | ||||||||||||
EBITDAR Margin (2)
|
27.1 | % |
1.8
p.p.
|
8.8
p.p.
|
23.4 | % |
-5.3
p.p.
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|||||||||||||
Adjusted EBITDAR
Margin (2)(3)
|
30.7 | % |
4.8
p.p.
|
7.9
p.p.
|
24.9 | % |
-2.7
p.p.
|
|||||||||||||
Operating
Income (US$ mm)
|
84.0 | 95.5 | % | 47.3 | % | 224.0 | 13.4 | % | ||||||||||||
Adjusted Operating
Income (US$ mm)(1)
|
84.0 | 70.5 | % | 47.3 | % | 224.0 | 13.8 | % | ||||||||||||
Operating
Margin
|
24.3 | % |
9.2
p.p.
|
7.9
p.p.
|
17.4 | % |
-1.8
p.p.
|
|||||||||||||
Adjusted Operating
Margin (1)
|
24.3 | % |
7.0
p.p.
|
7.9
p.p.
|
17.4 | % |
-1.8
p.p.
|
|||||||||||||
Net
Income (US$ mm)
|
51.9 | 46.1 | % | 71.1 | % | 152.2 | -6.0 | % | ||||||||||||
Adjusted Net Income
(US$ mm) (3)
|
64.1 | 73.7 | % | 39.8 | % | 172.4 | 13.4 | % | ||||||||||||
EPS
- Basic (US$)
|
1.20 | 45.3 | % | 71.1 | % | 3.53 | -6.5 | % | ||||||||||||
Adjusted EPS - Basic
(US$) (3)
|
1.48 | 72.7 | % | 39.8 | % | 4.00 | 12.8 | % | ||||||||||||
EPS
- Diluted (US$)
|
1.20 | 46.1 | % | 71.4 | % | 3.50 | -5.9 | % | ||||||||||||
Adjusted EPS -
Diluted (US$)
(3)
|
1.48 | 73.6 | % | 40.1 | % | 3.97 | 13.4 | % | ||||||||||||
Weighted
Avg. # of Shares - Basic (000)
|
43,195 | 0.6 | % | 0.0 | % | 43,143 | 0.5 | % | ||||||||||||
Weighted
Avg. # of Shares - Diluted (000)
|
43,426 | 0.1 | % | -0.1 | % | 43,440 | -0.1 | % |
Financial Outlook (US GAAP)
|
2009 - Full Year
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ASMs
(billion)
|
+/-10.0 | |||
Average
Load Factor
|
+/-74 | % | ||
RASM
(cents)
|
+/-12.6 | |||
CASM
Ex-fuel (cents)
|
+/- 7.5 | |||
Operating
Margin
|
16.0-18.0 | % |
Copa Holdings, S.A.
|
Operating data
|
Unaudited
|
Unaudited
|
%
|
Unaudited
|
%
|
Unaudited
|
Audited
|
%
|
|||||||||||||||||||||||||
4Q08
|
4Q07
|
Change
|
3Q08
|
Change
|
2008
|
2007
|
Change
|
|||||||||||||||||||||||||
Copa
Holdings (Consolidated)
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||||||||||||||||||||||||||||||||
Revenue
passengers carried (thousands)
|
1,338 | 1,249 | 7.1 | % | 1,302 | 2.8 | % | 5,026 | 4,729 | 6.3 | % | |||||||||||||||||||||
Revenue
passengers miles (RPMs) (mm)
|
1,760 | 1,524 | 15.5 | % | 1,779 | -1.1 | % | 6,717 | 5,861 | 14.6 | % | |||||||||||||||||||||
Available
seat miles (ASMs) (mm)
|
2,375 | 2,066 | 15.0 | % | 2,300 | 3.3 | % | 8,845 | 7,918 | 11.7 | % | |||||||||||||||||||||
Load
factor
|
74.1 | % | 73.8 | % |
0.3
p.p.
|
77.3 | % |
-3.3
p.p.
|
75.9 | % | 74.0 | % |
1.9
p.p.
|
|||||||||||||||||||
Break-even
load factor
|
56.9 | % | 61.0 | % |
-4.1
p.p.
|
64.5 | % |
-7.6
p.p.
|
63.0 | % | 54.5 | % |
8.5
p.p.
|
|||||||||||||||||||
Yield
(cents)
|
18.5 | 17.5 | 6.0 | % | 18.6 | -0.3 | % | 18.1 | 16.5 | 9.8 | % | |||||||||||||||||||||
RASM
(cents)
|
14.6 | 13.8 | 5.8 | % | 15.2 | -4.0 | % | 14.6 | 13.0 | 12.3 | % | |||||||||||||||||||||
CASM
(cents)
|
11.0 | 11.7 | -5.7 | % | 12.7 | -13.1 | % | 12.0 | 10.5 | 14.9 | % | |||||||||||||||||||||
Adj.CASM
- excl. special charges and fuel (cents)
|
7.2 | 7.6 | -5.4 | % | 7.3 | -1.2 | % | 7.5 | 7.1 | 4.6 | % | |||||||||||||||||||||
Fuel
gallons consumed (mm)
|
33.4 | 29.5 | 13.1 | % | 32.4 | 2.9 | % | 125.1 | 112.5 | 11.2 | % | |||||||||||||||||||||
Average
price of Fuel - Net of Hedges (US$)
|
2.73 | 2.61 | 4.5 | % | 3.81 | -28.4 | % | 3.21 | 2.32 | 38.0 | % | |||||||||||||||||||||
Copa
Segment
|
||||||||||||||||||||||||||||||||
Revenue
passengers miles (RPMs) (mm)
|
1,503 | 1,276 | 17.8 | % | 1,536 | -2.1 | % | 5,789 | 4,935 | 17.3 | % | |||||||||||||||||||||
Available
seat miles (ASMs) (mm)
|
1,981 | 1,676 | 18.2 | % | 1,914 | 3.5 | % | 7,342 | 6,298 | 16.6 | % | |||||||||||||||||||||
Load
factor
|
75.9 | % | 76.1 | % |
-0.3
p.p.
|
80.3 | % |
77.3
p.p.
|
78.8 | % | 78.4 | % |
0.5
p.p.
|
|||||||||||||||||||
Break-even
load factor
|
55.7 | % | 62.0 | % |
-6.3
p.p.
|
65.1 | % |
-9.4
p.p.
|
62.2 | % | 59.9 | % |
2.3
p.p.
|
|||||||||||||||||||
Yield
(US$ cents)
|
17.4 | 16.2 | 7.2 | % | 17.1 | 1.7 | % | 16.8 | 15.3 | 9.7 | % | |||||||||||||||||||||
RASM
(cents)
|
14.1 | 13.3 | 6.2 | % | 14.6 | -3.5 | % | 14.1 | 12.8 | 10.2 | % | |||||||||||||||||||||
CASM
(cents)
|
10.5 | 10.7 | -2.0 | % | 11.9 | -11.7 | % | 11.3 | 10.1 | 12.0 | % | |||||||||||||||||||||
Adj.CASM
- excl. special charges and fuel (cents)
|
6.8 | 7.2 | -4.8 | % | 6.8 | 0.0 | % | 6.9 | 7.2 | -3.0 | % | |||||||||||||||||||||
Fuel
gallons consumed (mm)
|
26.9 | 22.9 | 17.5 | % | 26.2 | 3.0 | % | 100.3 | 85.5 | 17.3 | % | |||||||||||||||||||||
Average
price of Fuel - Net of Hedges (US$)
|
2.72 | 2.56 | 6.2 | % | 3.69 | -26.4 | % | 3.14 | 2.29 | 37.0 | % | |||||||||||||||||||||
Aero
Republica Segment
|
||||||||||||||||||||||||||||||||
Revenue
passengers miles (RPMs) (mm)
|
257 | 248 | 3.4 | % | 243 | 5.7 | % | 928 | 926 | 0.2 | % | |||||||||||||||||||||
Available
seat miles (ASMs) (mm)
|
395 | 391 | 1.0 | % | 386 | 2.2 | % | 1,503 | 1,620 | -7.3 | % | |||||||||||||||||||||
Load
factor
|
65.0 | % | 63.5 | % |
1.5
p.p.
|
62.9 | % |
77.3
p.p.
|
61.7 | % | 57.2 | % |
4.6
p.p.
|
|||||||||||||||||||
Break-even
load factor
|
58.8 | % | 62.5 | % |
-3.7
p.p.
|
58.3 | % |
77.3
p.p.
|
61.4 | % | 54.1 | % |
7.3
p.p.
|
|||||||||||||||||||
Yield
(cents)
|
25.0 | 23.8 | 5.2 | % | 27.8 | -10.0 | % | 26.3 | 22.7 | 15.7 | % | |||||||||||||||||||||
RASM
(cents)
|
17.5 | 16.6 | 5.2 | % | 19.1 | -8.6 | % | 17.6 | 13.9 | 26.4 | % | |||||||||||||||||||||
CASM
(cents)
|
14.0 | 16.4 | -14.6 | % | 17.6 | -20.4 | % | 16.6 | 12.4 | 34.0 | % | |||||||||||||||||||||
Adj.CASM
- excl. special charges and fuel (cents)
|
9.5 | 10.1 | -6.1 | % | 10.6 | -10.6 | % | 10.8 | 8.4 | 29.5 | % | |||||||||||||||||||||
Fuel
gallons consumed (mm)
|
6.4 | 6.6 | -2.3 | % | 6.3 | 2.7 | % | 24.8 | 27.0 | -8.3 | % | |||||||||||||||||||||
Average
price of Fuel - Net of Hedges (US$)
|
2.78 | 2.79 | -0.5 | % | 4.32 | -35.6 | % | 3.49 | 2.43 | 43.4 | % |
Copa Holdings, S.A.
|
Income Statement - USGAAP
|
(US$ Thousands)
|
Unaudited
|
Unaudited
|
%
|
Unaudited
|
%
|
Unaudited
|
Audited
|
%
|
|||||||||||||||||||||||||
4Q08
|
4Q07
|
Change
|
3Q08
|
Change
|
2008
|
2007
|
Change
|
|||||||||||||||||||||||||
Operating
Revenues
|
||||||||||||||||||||||||||||||||
Passenger
Revenue
|
325,869 | 266,228 | 22.4 | % | 330,319 | -1.3 | % | 1,217,331 | 967,066 | 25.9 | % | |||||||||||||||||||||
Cargo,
mail and other
|
20,210 | 18,359 | 10.1 | % | 18,596 | 8.7 | % | 71,478 | 60,198 | 18.7 | % | |||||||||||||||||||||
Total
Operating Revenue
|
346,079 | 284,587 | 21.6 | % | 348,915 | -0.8 | % | 1,288,809 | 1,027,264 | 25.5 | % | |||||||||||||||||||||
Operating
Expenses
|
||||||||||||||||||||||||||||||||
Aircraft
fuel
|
91,408 | 78,400 | 16.6 | % | 124,678 | -26.7 | % | 404,669 | 265,387 | 52.5 | % | |||||||||||||||||||||
Salaries
and benefits
|
37,484 | 32,152 | 16.6 | % | 35,247 | 6.3 | % | 139,431 | 116,691 | 19.5 | % | |||||||||||||||||||||
Passenger
servicing
|
26,280 | 23,052 | 14.0 | % | 25,885 | 1.5 | % | 98,775 | 82,948 | 19.1 | % | |||||||||||||||||||||
Commissions
|
14,779 | 18,488 | -20.1 | % | 17,600 | -16.0 | % | 67,158 | 65,930 | 1.9 | % | |||||||||||||||||||||
Reservations
and sales
|
13,187 | 12,039 | 9.5 | % | 14,048 | -6.1 | % | 54,996 | 48,229 | 14.0 | % | |||||||||||||||||||||
Maintenance,
material and repairs
|
17,737 | 13,376 | 32.6 | % | 15,198 | 16.7 | % | 66,438 | 51,249 | 29.6 | % | |||||||||||||||||||||
Depreciation
|
11,326 | 9,821 | 15.3 | % | 11,132 | 1.7 | % | 42,891 | 35,328 | 21.4 | % | |||||||||||||||||||||
Flight
operations
|
14,680 | 12,394 | 18.4 | % | 14,751 | -0.5 | % | 56,425 | 43,958 | 28.4 | % | |||||||||||||||||||||
Aircraft
rentals
|
10,078 | 9,692 | 4.0 | % | 10,245 | -1.6 | % | 43,008 | 38,636 | 11.3 | % | |||||||||||||||||||||
Landing
fees and other rentals
|
8,305 | 7,629 | 8.9 | % | 8,597 | -3.4 | % | 32,467 | 27,017 | 20.2 | % | |||||||||||||||||||||
Other
|
16,768 | 18,253 | -8.1 | % | 14,461 | 16.0 | % | 58,522 | 47,074 | 24.3 | % | |||||||||||||||||||||
Special
fleet charges
|
0 | 6,300 | -100.0 | % | 0 | 0 | 7,309 | -100.0 | % | |||||||||||||||||||||||
Total
Operating Expense
|
262,032 | 241,596 | 8.5 | % | 291,842 | -10.2 | % | 1,064,780 | 829,755 | 28.3 | % | |||||||||||||||||||||
Operating
Income
|
84,047 | 42,991 | 95.5 | % | 57,073 | 47.3 | % | 224,028 | 197,509 | 13.4 | % | |||||||||||||||||||||
Non-operating
Income (Expense):
|
||||||||||||||||||||||||||||||||
Interest
expense
|
(10,891 | ) | (12,567 | ) | -13.3 | % | (10,385 | ) | 4.9 | % | (42,071 | ) | (44,332 | ) | -5.1 | % | ||||||||||||||||
Interest
capitalized
|
525 | 584 | -10.1 | % | 391 | 34.3 | % | 1,921 | 2,570 | -25.3 | % | |||||||||||||||||||||
Interest
income
|
2,863 | 3,361 | -14.8 | % | 2,903 | -1.4 | % | 11,130 | 12,193 | -8.7 | % | |||||||||||||||||||||
Other,
net
|
(15,373 | ) | 6,215 | -347.4 | % | (17,894 | ) | -14.1 | % | (24,208 | ) | 10,987 | -320.3 | % | ||||||||||||||||||
Total
Non-Operating Income/(Expense)
|
(22,876 | ) | (2,407 | ) | 850.4 | % | (24,985 | ) | -8.4 | % | (53,228 | ) | (18,582 | ) | 186.4 | % | ||||||||||||||||
Income
before Income Taxes
|
61,171 | 40,584 | 50.7 | % | 32,088 | 90.6 | % | 170,800 | 178,926 | -4.5 | % | |||||||||||||||||||||
Provision
for Income Taxes
|
9,253 | 5,058 | 82.9 | % | 1,745 | 430.3 | % | 18,609 | 17,106 | 8.8 | % | |||||||||||||||||||||
Net
Income
|
51,918 | 35,526 | 46.1 | % | 30,343 | 71.1 | % | 152,191 | 161,820 | -6.0 | % | |||||||||||||||||||||
Basic
EPS
|
1.20 | 0.83 | 45.3 | % | 0.70 | 71.1 | % | 3.53 | 3.77 | -6.5 | % | |||||||||||||||||||||
Basic
Shares
|
43,194,566 | 42,937,844 | 0.6 | % | 43,194,566 | 0.0 | % | 43,142,515 | 42,907,967 | 0.5 | % | |||||||||||||||||||||
Diluted
EPS
|
1.20 | 0.82 | 46.1 | % | 0.70 | 71.4 | % | 3.50 | 3.72 | -5.9 | % | |||||||||||||||||||||
Diluted
Shares
|
43,425,896 | 43,401,305 | 0.1 | % | 43,490,728 | -0.1 | % | 43,439,879 | 43,463,759 | -0.1 | % |
Copa Holdings, S.A.
|
Balance Sheet - USGAAP
|
(US$
Thousands)
|
December 31,
|
September 30,
|
December 31,
|
||||||||||
2008
|
2008
|
2007
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
ASSETS
|
||||||||||||
Current
Assets:
|
||||||||||||
Cash
and cash equivalents
|
$ | 224,023 | $ | 200,272 | $ | 285,858 | ||||||
Short-term
investments
|
168,556 | 152,942 | 22,500 | |||||||||
Total
cash, cash equivalents and short-term investments
|
392,579 | 353,214 | 308,358 | |||||||||
Accounts
receivable, net of allowance for doubtful accounts
|
70,520 | 103,362 | 73,389 | |||||||||
Accounts
receivable from related parties
|
4,591 | 1,710 | 780 | |||||||||
Expendable
parts and supplies, net of allowance for obsolescence
|
18,405 | 17,167 | 14,088 | |||||||||
Prepaid
expenses
|
26,694 | 26,689 | 25,574 | |||||||||
Other
current assets
|
5,337 | 8,954 | 13,547 | |||||||||
Total
Current Assets
|
518,126 | 511,096 | 435,736 | |||||||||
Long-term
investments
|
15,477 | 23,055 | 17,038 | |||||||||
Property
and Equipment:
|
||||||||||||
Owned
property and equipment:
|
||||||||||||
Flight
equipment
|
1,372,352 | 1,309,928 | 1,188,641 | |||||||||
Other
equipment
|
55,291 | 53,406 | 50,909 | |||||||||
1,427,643 | 1,363,334 | 1,239,550 | ||||||||||
Less:
Accumulated depreciation
|
(174,835 | ) | (164,820 | ) | (137,367 | ) | ||||||
1,252,808 | 1,198,514 | 1,102,183 | ||||||||||
Purchase
deposits for flight equipment
|
84,861 | 68,738 | 64,079 | |||||||||
Total
Property and Equipment
|
1,337,669 | 1,267,252 | 1,166,262 | |||||||||
Other
Assets:
|
||||||||||||
Net
pension asset
|
1,486 | 1,463 | 1,034 | |||||||||
Goodwill
|
21,732 | 22,421 | 24,201 | |||||||||
Intangible
asset
|
31,865 | 32,876 | 35,484 | |||||||||
Other
assets
|
27,866 | 30,811 | 27,496 | |||||||||
Total
Other Assets
|
82,949 | 87,571 | 88,215 | |||||||||
Total
Assets
|
$ | 1,954,221 | $ | 1,888,974 | $ | 1,707,251 | ||||||
LIABILITIES
AND SHAREHOLDER'S EQUITY
|
||||||||||||
Current
Liabilities:
|
||||||||||||
Current
maturities of long-term debt
|
$ | 115,833 | $ | 119,150 | $ | 110,658 | ||||||
Accounts
payable
|
54,120 | 56,030 | 57,468 | |||||||||
Accounts
payable to related parties
|
11,510 | 8,453 | 10,824 | |||||||||
Air
traffic liability
|
183,174 | 214,641 | 153,422 | |||||||||
Taxes
and interest payable
|
38,475 | 39,437 | 36,644 | |||||||||
Accrued
expenses payable
|
40,481 | 44,966 | 52,233 | |||||||||
Other
current liabilities
|
59,597 | 15,453 | 3,740 | |||||||||
Total
Current Liabilities
|
503,190 | 498,130 | 424,989 | |||||||||
Non-Current
Liabilities:
|
||||||||||||
Long-term
debt
|
800,196 | 762,977 | 732,209 | |||||||||
Post
employment benefits liability
|
2,072 | 1,846 | 1,894 | |||||||||
Other
long-term liabilities
|
8,694 | 9,625 | 9,775 | |||||||||
Deferred
tax liabilities
|
8,747 | 6,280 | 6,747 | |||||||||
Total
Non-Current Liabilities
|
819,709 | 780,728 | 750,625 | |||||||||
Total
Liabilities
|
1,322,899 | 1,278,858 | 1,175,614 | |||||||||
Shareholders'
Equity:
|
||||||||||||
Class
A - 31,031,129 shares issued and 30,416,141 shares
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
|
13,481 | 12,299 | 8,064 | |||||||||
Retained
earnings
|
627,535 | 575,666 | 491,599 | |||||||||
Accumulated
other comprehensive income (loss)
|
(39,177 | ) | (7,332 | ) | 2,666 | |||||||
Total
Shareholders' Equity
|
631,322 | 610,116 | 531,637 | |||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 1,954,221 | $ | 1,888,974 | $ | 1,707,251 |
NON-GAAP
FINANCIAL MEASURE RECONCILIATION
|
Reconciliation
of EBITDAR
|
||||||||||||||||||||
Excluding
Special Items
|
4Q08
|
4Q07
|
3Q08
|
2008
|
2007
|
|||||||||||||||
Net
income as Reported
|
$ | 51,918 | $ | 35,526 | $ | 30,343 | $ | 152,191 | $ | 161,820 | ||||||||||
Interest
Expense
|
(10,891 | ) | (12,567 | ) | (10,385 | ) | (42,071 | ) | (44,332 | ) | ||||||||||
Capitalized
Interest
|
525 | 584 | 391 | 1,921 | 2,570 | |||||||||||||||
Interest
Income
|
2,863 | 3,361 | 2,903 | 11,130 | 12,193 | |||||||||||||||
Income
Taxes
|
(9,253 | ) | (5,058 | ) | (1,745 | ) | (18,609 | ) | (17,106 | ) | ||||||||||
EBIT
|
68,674 | 49,206 | 39,179 | 199,820 | 208,495 | |||||||||||||||
Depreciation
and Amortization
|
11,326 | 9,821 | 11,132 | 42,891 | 35,328 | |||||||||||||||
EBITDA
|
80,000 | 59,027 | 50,311 | 242,711 | 243,823 | |||||||||||||||
Aircraft
Rent
|
10,078 | 9,692 | 10,245 | 43,008 | 38,636 | |||||||||||||||
Other
Rentals
|
3,873 | 3,461 | 3,341 | 15,293 | 11,536 | |||||||||||||||
EBITDAR
|
$ | 93,951 | $ | 72,180 | $ | 63,897 | $ | 301,013 | $ | 293,995 | ||||||||||
Special
Items (adjustments):
|
||||||||||||||||||||
Unrealized
(gain) loss on fuel hedging instruments (1)
|
12,160 | (4,932 | ) | 15,479 | 20,175 | (9,095 | ) | |||||||||||||
Special
Items (2)
|
6,300 | - | - | (710 | ) | |||||||||||||||
Adjusted
EBITDAR
|
$ | 106,112 | $ | 73,547 | $ | 79,376 | $ | 321,188 | $ | 284,191 |
Reconciliation
of Operating Income
|
||||||||||||||||||||
Excluding
Special Items
|
4Q08
|
4Q07
|
3Q08
|
2008
|
2007
|
|||||||||||||||
Operating
Income as Reported
|
$ | 84,047 | $ | 42,991 | $ | 57,073 | $ | 224,028 | $ | 197,509 | ||||||||||
Special
Items (adjustments):
|
||||||||||||||||||||
Special
Items, net (2)
|
- | 6,300 | - | - | (710 | ) | ||||||||||||||
Adjusted
Operating Income
|
$ | 84,047 | $ | 49,291 | $ | 57,073 | $ | 224,028 | $ | 196,799 |
Reconciliation
of Net Income
|
||||||||||||||||||||
Excluding
Special Items
|
4Q08
|
4Q07
|
3Q08
|
2008
|
2007
|
|||||||||||||||
Net
income as Reported
|
$ | 51,918 | $ | 35,526 | $ | 30,343 | $ | 152,191 | $ | 161,820 | ||||||||||
Special
Items (adjustments):
|
||||||||||||||||||||
Unrealized
(gain) loss on fuel hedging instruments (1)
|
12,160 | (4,932 | ) | 15,479 | 20,175 | (9,095 | ) | |||||||||||||
Special
Items, net (2)
|
6,300 | - | - | (710 | ) | |||||||||||||||
Adjusted
Net Income
|
$ | 64,078 | $ | 36,893 | $ | 45,822 | $ | 172,366 | $ | 152,016 | ||||||||||
Shares
used for Computation (in thousands)
|
||||||||||||||||||||
Basic
|
43,195 | 42,985 | 43,195 | 43,143 | 42,908 | |||||||||||||||
Diluted
|
43,426 | 43,433 | 43,491 | 43,440 | 43,464 | |||||||||||||||
Adjusted
earnings per share
|
||||||||||||||||||||
Basic
|
1.48 | 0.86 | 1.06 | 4.00 | 3.54 | |||||||||||||||
Diluted
|
1.48 | 0.85 | 1.05 | 3.97 | 3.50 |
Reconciliation
Operating Costs per ASM
|
||||||||||||||||||||
Excluding
Fuel and Special Items
|
4Q08
|
4Q07
|
3Q08
|
2008
|
2007
|
|||||||||||||||
Operating
Costs per ASM as Reported
|
11.0 | 11.7 | 12.7 | 12.0 | 10.5 | |||||||||||||||
Aircraft
fuel per ASM
|
3.8 | 3.8 | 5.4 | 4.6 | 3.4 | |||||||||||||||
Operating
Costs per ASM excluding fuel
|
7.2 | 7.9 | 7.3 | 7.5 | 7.1 | |||||||||||||||
Special
Items (adjustments):
|
||||||||||||||||||||
Special
Items per ASM, net (2)
|
- | (0.3 | ) | - | - | 0.0 | ||||||||||||||
Operating
expenses excluding fuel and special items
|
7.2 | 7.6 | 7.3 | 7.5 | 7.1 |
(1)
|
Include
unrealized (gains) losses resulting from the mark-to-market accounting for
changes in the fair value of fuel hedging instruments. For
4Q08, 3Q08 and full year 2008 the Company recorded unrealized fuel hedge
losses of US$12.2 million, US$15.5 million and US$20.2 million,
respectively. For 4Q07 and full year 2007 the Company recorded unrealized
fuel hedge gains of US$4.9 million and US$9.1 million,
respectively.
|
(2)
|
Special
items include for the 4Q07 period a US$6.3 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. Special items
include for full year 2007 include a US$8.0 million non-recurring gain
related to insurance proceeds in excess of aircraft book value and a
US$7.3 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.
|