Copa Holdings, S.A.
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(Registrant)
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Date:
2/11/2010
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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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·
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Copa
Holdings reported net income of US$70.4 million for 4Q09 or diluted
earnings per share (EPS) of US$1.61, as compared to net income of US$25.8
million or diluted EPS of US$0.59 in 4Q08. Excluding special
items, which for 4Q09 include a special charge of US$4.8 million related
to the accrual of costs associated with the retirement of four MD-80
aircraft as a result of Aero Republica’s transition to an all Embraer-190
fleet and a US$9.6 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$65.7 million, compared to an adjusted net
income of US$65.2 million in 4Q08.
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·
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Net
income for full year 2009 reached US$240.4 million or diluted EPS of
US$5.50, compared to US$118.7 million or diluted EPS of US$2.73 for full
year 2008. Excluding special items, which for 2009 include a
special charge of US$19.4 million related to the accrual of costs
associated with the retirement of four MD-80 aircraft as a result of Aero
Republica’s transition to an all Embraer-190 fleet and a US$58.0 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$201.7
million compared to an adjusted net income of US$173.5 for full year 2008,
representing an increase of 16.3%.
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·
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Operating
income for 4Q09 came in at US$71.8 million, representing an operating
margin of 20.9%, as compared to operating income for 4Q08 of US$84.0
million. Excluding special fleet charges of US$4.8 million,
operating income would have been US$76.6 million, which would have
represented an operating margin of 22.3% for the quarter, down from 24.3%
in 4Q08.
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·
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The
Company reported operating income of US$223.3 million for full year 2009,
representing an operating margin of 17.8%, as compared to 17.4% in
2008. However, excluding special fleet charges of US$19.4
million recorded in 2009, the adjusted operating margin for 2009 stood at
19.4%.
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·
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Total
revenues for 4Q09 decreased 0.9% to US$343.0 million. Yield per passenger
mile decreased 11.7% to 16.4 cents and operating revenue per available
seat mile (RASM) decreased 5.8% to 13.7
cents.
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·
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For
4Q09 consolidated passenger traffic grew 12.7% while capacity increased
5.2%. As a result, consolidated load factor for the quarter
increased 5.3 percentage points to 79.4%. For full year 2009
consolidated capacity increased
12%.
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·
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Operating
cost per available seat mile (CASM) decreased 1.6%, from 11.0 cents in
4Q08 to 10.9 cents in 4Q09. CASM, excluding fuel costs and
special items, increased 5.2% from 7.2 cents in 4Q08 to 7.6 cents in 4Q09,
mainly due to higher salaries and benefits and passenger related
costs.
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·
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Cash,
short term and long term investments ended 2009 at US$358.5 million,
representing 29% of the last twelve months’ revenues. During
2009 the Company funded from cash US$120 million in pre-delivery payments
related to aircraft to be delivered between 2010 and
2011.
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·
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During
the fourth quarter, Copa Airlines took delivery of one Boeing 737-800,
ending the year with a consolidated fleet of 56
aircraft.
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·
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For
2009, Copa Airlines reported on-time performance of 87.6% and a
flight-completion factor of 99.4%, maintaining its position among the best
in the industry. Additionally, Aero Republica’s on-time
performance came in at 90.1%, leading the Colombian market both in
domestic and international on-time
performance.
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·
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On
January 8, 2010, the Venezuelan government announced its decision to
implement new fixed exchange rates effective January 11, 2010, which
resulted in a significant devaluation of the Bolivar against the U.S.
dollar. The new regime applies two distinct official rates depending
on the applicable sector of the economy. The first exchange rate,
applicable to imported goods characterized as essential, will be VEB 2.60
per U.S. dollar, and the rate applicable to all other imported goods and
services, including the aviation sector, will be VEB 4.30 per U.S. dollar.
The Venezuelan government, however, has announced that it will apply
the exchange rate of VEB 2.60 per U.S. dollar to all authorization
requests pending approval by the Venezuela Central Bank through January 8,
2010. We estimate that the Company will incur losses related to
the devaluation of these funds of approximately US$21 million, which will
be recorded in the first quarter of 2010 in accordance with US
GAAP.
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·
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On
February 10, our Board of Directors approved the modification of the
Company’s dividend policy, which had provided for an annual payment of
approximately 10% of our annual consolidated net income to our
shareholders. Effective immediately, the new dividend policy provides for
annual dividend payments in amounts up to 20% of our annual consolidated
net income to be paid pro rata among all our shareholders. The
determination of the annual dividend payment each year will remain subject
to approval by our Board of Directors and compliance with applicable legal
requirements.
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·
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On
February 10, our Board of Directors approved the modification of the
Company’s dividend policy, which had provided for an annual payment of
approximately 10% of our annual consolidated net income to our
shareholders. Effective immediately, the new dividend policy
provides for annual dividend payments in amounts up to 20% of our annual
consolidated net income to be paid pro rata among all our shareholders.
The determination of the annual dividend payment each year will remain
subject to approval by our Board of Directors and compliance with
applicable legal
requirements.
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Consolidated
Financial &
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Variance
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Variance
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Variance
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|||||||||||||||||
Operating
Highlights
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4Q09
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vs.
4Q08
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vs.
3Q09
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FY
2009
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vs.
2008
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|||||||||||||||
RPMs
(millions)
|
1,984 | 12.7 | % | 2.8 | % | 7,397 | 10.1 | % | ||||||||||||
ASMs
(mm)
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2,498 | 5.2 | % | -1.9 | % | 9,911 | 12.1 | % | ||||||||||||
Load
Factor
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79.4 | % | 5.3 | p.p. | 3.6 | p.p. | 74.6 | % | -1.3 | p.p. | ||||||||||
Yield
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16.4 | -11.7 | % | 2.7 | % | 16.0 | -11.5 | % | ||||||||||||
PRASM
(cents)
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13.0 | -5.3 | % | 7.5 | % | 12.0 | -13.0 | % | ||||||||||||
RASM
(cents)
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13.7 | -5.8 | % | 8.0 | % | 12.6 | -13.2 | % | ||||||||||||
CASM
(cents)
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10.9 | -1.6 | % | -0.5 | % | 10.4 | -13.7 | % | ||||||||||||
Adjusted
CASM (cents) (1)
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10.7 | -3.3 | % | 3.1 | % | 10.2 | -15.3 | % | ||||||||||||
CASM
Excl. Fuel (cents)
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7.7 | 7.9 | % | 0.1 | % | 7.4 | -1.5 | % | ||||||||||||
Adjusted
CASM Excl. Fuel (cents) (1)
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7.6 | 5.2 | % | 5.4 | % | 7.2 | -4.1 | % | ||||||||||||
Breakeven
Load Factor (3)
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60.0 | % | -1.0 | p.p. | -4.5 | p.p. | 59.2 | % | -3.8 | p.p. | ||||||||||
Operating
Revenues (US$ mm)
|
343.0 | -0.9 | % | 5.9 | % | 1,253.1 | -2.8 | % | ||||||||||||
EBITDAR
(US$ mm) (2)
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109.6 | 64.5 | % | 37.6 | % | 391.8 | 47.1 | % | ||||||||||||
Adjusted
EBITDAR (US$ mm) (2)(3)
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104.9 | -1.2 | % | 17.8 | % | 353.2 | 10.0 | % | ||||||||||||
EBITDAR
Margin (2)
|
32.0 | % | 12.7 | p.p. | 7.4 | p.p. | 31.3 | % | 10.6 | p.p. | ||||||||||
Adjusted
EBITDAR Margin (2)(3)
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30.6 | % | -0.1 | p.p. | 3.0 | p.p. | 28.2 | % | 3.3 | p.p. | ||||||||||
Operating
Income (US$ mm)
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71.8 | -14.6 | % | 56.3 | % | 223.3 | -0.3 | % | ||||||||||||
Adjusted
Operating Income (US$ mm) (1)
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76.6 | -8.8 | % | 26.6 | % | 242.7 | 8.4 | % | ||||||||||||
Operating
Margin
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20.9 | % | -3.4 | p.p. | 6.7 | p.p. | 17.8 | % | 0.4 | p.p. | ||||||||||
Adjusted
Operating Margin (1)
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22.3 | % | -1.9 | p.p. | 3.6 | p.p. | 19.4 | % | 2.0 | p.p. | ||||||||||
Net
Income (US$ mm)
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70.4 | 173.5 | % | 63.3 | % | 240.4 | 102.6 | % | ||||||||||||
Adjusted
Net Income (US$ mm) (3)
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65.7 | 0.7 | % | 25.0 | % | 201.7 | 16.3 | % | ||||||||||||
EPS
- Basic (US$)
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1.63 | 171.2 | % | 63.3 | % | 5.55 | 101.8 | % | ||||||||||||
Adjusted
EPS - Basic (US$) (3)
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1.52 | 0.3 | % | 24.7 | % | 4.66 | 15.8 | % | ||||||||||||
EPS
- Diluted (US$)
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1.61 | 171.8 | % | 63.3 | % | 5.50 | 101.5 | % | ||||||||||||
Adjusted
EPS - Diluted (US$) (3)
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1.50 | -0.1 | % | 24.6 | % | 4.62 | 15.7 | % | ||||||||||||
Weighted
Avg. # of Shares - Basic (000)
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43,344 | 0.3 | % | 0.0 | % | 43,308 | 0.4 | % | ||||||||||||
Weighted
Avg. # of Shares - Diluted (000)
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43,763 | 0.8 | % | 0.1 | % | 43,672 | 0.5 | % |
Financial
Outlook (US GAAP)
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2010
- Full Year
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|||
ASMs
(billion)
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+/-10.9 | |||
Average
Load Factor
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+/-76 | % | ||
RASM
(cents)
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+/-13.0 | |||
CASM
Ex-fuel (cents)
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+/- 7.1 | |||
Operating
Margin
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20-22 | % |
Unaudited
|
Unaudited
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%
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Unaudited
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%
|
Unaudited
|
Audited
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%
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|||||||||||||||||||||||||
4Q09
|
4Q08
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Change
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3Q09
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Change
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2009
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2008
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Change
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Copa
Holdings (Consolidated)
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Revenue
passengers carried (thousands)
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1,521 | 1,338 | 13.7 | % | 1,475 | 3.1 | % | 5,553 | 5,026 | 10.5 | % | |||||||||||||||||||||
Revenue
passengers miles (RPMs) (mm)
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1,984 | 1,760 | 12.7 | % | 1,930 | 2.8 | % | 7,397 | 6,717 | 10.1 | % | |||||||||||||||||||||
Available
seat miles (ASMs) (mm)
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2,498 | 2,375 | 5.2 | % | 2,545 | -1.9 | % | 9,911 | 8,845 | 12.1 | % | |||||||||||||||||||||
Load
factor
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79.4 | % | 74.1 | % | 5.3 | p.p. | 75.8 | % | 3.6 | p.p. | 74.6 | % | 75.9 | % | -1.3 | p.p. | ||||||||||||||||
Break-even
load factor
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60.0 | % | 56.9 | % | 3.1 | p.p. | 59.7 | % | 0.3 | p.p. | 59.2 | % | 63.0 | % | -3.8 | p.p. | ||||||||||||||||
Yield
(cents)
|
16.4 | 18.5 | -11.7 | % | 15.9 | 2.7 | % | 16.0 | 18.1 | -11.5 | % | |||||||||||||||||||||
RASM
(cents)
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13.7 | 14.6 | -5.8 | % | 12.7 | 8.0 | % | 12.6 | 14.6 | -13.2 | % | |||||||||||||||||||||
CASM
(cents)
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10.9 | 11.0 | -1.6 | % | 10.9 | -0.5 | % | 10.4 | 12.0 | -13.7 | % | |||||||||||||||||||||
Adj.CASM
- excl. special charges and fuel (cents)
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7.6 | 7.2 | 5.2 | % | 7.2 | 5.4 | % | 7.2 | 7.5 | -4.1 | % | |||||||||||||||||||||
Fuel
gallons consumed (mm)
|
34.8 | 33.4 | 4.3 | % | 35.6 | -2.2 | % | 138.0 | 125.1 | 10.4 | % | |||||||||||||||||||||
Average
price of Fuel - Net of Hedges (US$)
|
2.21 | 2.73 | -18.8 | % | 2.24 | -1.4 | % | 2.17 | 3.21 | -32.4 | % | |||||||||||||||||||||
Copa
Segment
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Revenue
passengers miles (RPMs) (mm)
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1,684 | 1,503 | 12.0 | % | 1,643 | 2.5 | % | 6,323 | 5,789 | 9.2 | % | |||||||||||||||||||||
Available
seat miles (ASMs) (mm)
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2,098 | 1,981 | 5.9 | % | 2,136 | -1.8 | % | 8,319 | 7,342 | 13.3 | % | |||||||||||||||||||||
Load
factor
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80.3 | % | 75.9 | % | 4.4 | p.p. | 76.9 | % | 76.0 | % | 78.8 | % | -2.8 | p.p. | ||||||||||||||||||
Break-even
load factor
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57.7 | % | 55.7 | % | 2.0 | p.p. | 58.1 | % | -0.4 | p.p. | 58.6 | % | 62.2 | % | -3.6 | p.p. | ||||||||||||||||
Yield
(US$ cents)
|
15.7 | 17.4 | -10.0 | % | 15.1 | 3.6 | % | 15.3 | 16.8 | -9.3 | % | |||||||||||||||||||||
RASM
(cents)
|
13.4 | 14.1 | -4.9 | % | 12.4 | 8.0 | % | 12.3 | 14.1 | -12.7 | % | |||||||||||||||||||||
CASM
(cents)
|
10.1 | 10.5 | -3.6 | % | 9.8 | 3.6 | % | 9.7 | 11.3 | -13.6 | % | |||||||||||||||||||||
Adj.CASM
- excl. special charges and fuel (cents)
|
7.2 | 6.8 | 5.4 | % | 6.6 | 8.8 | % | 6.7 | 6.9 | -2.8 | % | |||||||||||||||||||||
Fuel
gallons consumed (mm)
|
28.5 | 26.9 | 5.6 | % | 29.1 | -2.2 | % | 112.4 | 100.3 | 12.1 | % | |||||||||||||||||||||
Average
price of Fuel - Net of Hedges (US$)
|
2.16 | 2.72 | -20.3 | % | 2.26 | -4.2 | % | 2.20 | 3.14 | -29.9 | % | |||||||||||||||||||||
Aero
Republica Segment
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Revenue
passengers miles (RPMs) (mm)
|
300 | 257 | 16.7 | % | 287 | 4.3 | % | 1,074 | 928 | 15.7 | % | |||||||||||||||||||||
Available
seat miles (ASMs) (mm)
|
399 | 395 | 1.2 | % | 409 | -2.4 | % | 1,592 | 1,503 | 5.9 | % | |||||||||||||||||||||
Load
factor
|
75.0 | % | 65.0 | % | 9.9 | p.p. | 70.2 | % | 6.9 | % | 67.5 | % | 61.7 | % | 5.7 | p.p. | ||||||||||||||||
Break-even
load factor
|
69.7 | % | 58.8 | % | 10.9 | p.p. | 65.6 | % | 4.1 | p.p. | 60.6 | % | 61.4 | % | -0.8 | p.p. | ||||||||||||||||
Yield
(cents)
|
20.2 | 25.0 | -19.2 | % | 20.6 | -1.6 | % | 20.7 | 26.3 | -21.3 | % | |||||||||||||||||||||
RASM
(cents)
|
16.5 | 17.5 | -5.4 | % | 15.7 | 5.5 | % | 15.1 | 17.6 | -14.3 | % | |||||||||||||||||||||
CASM
(cents)
|
16.0 | 14.0 | 13.9 | % | 18.1 | -11.6 | % | 14.6 | 16.6 | -11.8 | % | |||||||||||||||||||||
Adj.CASM
- excl. special charges and fuel (cents)
|
10.9 | 9.5 | 14.8 | % | 11.1 | -1.5 | % | 10.2 | 10.8 | -6.2 | % | |||||||||||||||||||||
Fuel
gallons consumed (mm)
|
6.4 | 6.4 | -1.3 | % | 6.5 | -2.1 | % | 25.6 | 24.8 | 3.3 | % | |||||||||||||||||||||
Average
price of Fuel - Net of Hedges (US$)
|
2.44 | 2.78 | -12.3 | % | 2.18 | 11.9 | % | 2.02 | 3.49 | -42.0 | % |
Unaudited
|
Unaudited
|
%
|
Unaudited
|
%
|
Unaudited
|
Audited
|
%
|
|||||||||||||||||||||||||
4Q09
|
4Q08
|
Change
|
3Q09
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||||||||||||||
Operating
Revenues
|
||||||||||||||||||||||||||||||||
Passenger
Revenue
|
324,384 | 325,849 | -0.4 | % | 307,438 | 5.5 | % | 1,186,717 | 1,217,311 | -2.5 | % | |||||||||||||||||||||
Cargo,
mail and other
|
18,573 | 20,210 | -8.1 | % | 16,298 | 14.0 | % | 66,370 | 71,478 | -7.1 | % | |||||||||||||||||||||
Total
Operating Revenue
|
342,957 | 346,059 | -0.9 | % | 323,736 | 5.9 | % | 1,253,088 | 1,288,789 | -2.8 | % | |||||||||||||||||||||
Operating
Expenses
|
||||||||||||||||||||||||||||||||
Aircraft
fuel
|
77,643 | 91,408 | -15.1 | % | 80,812 | -3.9 | % | 300,816 | 404,669 | -25.7 | % | |||||||||||||||||||||
Salaries
and benefits
|
43,863 | 37,484 | 17.0 | % | 39,059 | 12.3 | % | 157,879 | 139,431 | 13.2 | % | |||||||||||||||||||||
Passenger
servicing
|
30,781 | 26,280 | 17.1 | % | 28,839 | 6.7 | % | 110,768 | 98,775 | 12.1 | % | |||||||||||||||||||||
Commissions
|
15,753 | 14,798 | 6.5 | % | 15,889 | -0.9 | % | 57,565 | 67,177 | -14.3 | % | |||||||||||||||||||||
Reservations
and sales
|
14,098 | 13,187 | 6.9 | % | 15,993 | -11.8 | % | 56,280 | 54,996 | 2.3 | % | |||||||||||||||||||||
Maintenance,
material and repairs
|
20,118 | 17,737 | 13.4 | % | 18,195 | 10.6 | % | 76,732 | 66,438 | 15.5 | % | |||||||||||||||||||||
Depreciation
|
11,264 | 11,326 | -0.5 | % | 11,926 | -5.6 | % | 47,079 | 42,891 | 9.8 | % | |||||||||||||||||||||
Flight
operations
|
15,356 | 14,680 | 4.6 | % | 15,511 | -1.0 | % | 60,873 | 56,425 | 7.9 | % | |||||||||||||||||||||
Aircraft
rentals
|
10,774 | 10,078 | 6.9 | % | 11,911 | -9.5 | % | 46,538 | 43,008 | 8.2 | % | |||||||||||||||||||||
Landing
fees and other rentals
|
8,897 | 8,305 | 7.1 | % | 8,557 | 4.0 | % | 33,628 | 32,467 | 3.6 | % | |||||||||||||||||||||
Other
|
17,835 | 16,766 | 6.4 | % | 16,545 | 7.8 | % | 62,187 | 58,520 | 6.3 | % | |||||||||||||||||||||
Special
fleet charges
|
4,818 | - | n/a | 14,599 | 19,417 | 0 | n/a | |||||||||||||||||||||||||
Total
Operating Expense
|
271,200 | 262,049 | 3.5 | % | 277,836 | -2.4 | % | 1,029,762 | 1,064,797 | -3.3 | % | |||||||||||||||||||||
Operating
Income
|
71,757 | 84,010 | -14.6 | % | 45,900 | 56.3 | % | 223,326 | 223,991 | -0.3 | % | |||||||||||||||||||||
Non-operating
Income (Expense):
|
||||||||||||||||||||||||||||||||
Interest
expense
|
(7,392 | ) | (10,891 | ) | -32.1 | % | (8,090 | ) | -8.6 | % | (32,938 | ) | (42,071 | ) | -21.7 | % | ||||||||||||||||
Interest
capitalized
|
1 | 525 | -99.8 | % | 141 | -99.3 | % | 693 | 1,921 | -63.9 | % | |||||||||||||||||||||
Interest
income
|
2,194 | 2,863 | -23.4 | % | 2,217 | -1.0 | % | 9,185 | 11,130 | -17.5 | % | |||||||||||||||||||||
Other,
net
|
11,568 | (42,639 | ) | -127.1 | % | 6,139 | 88.4 | % | 59,703 | (58,843 | ) | -201.5 | % | |||||||||||||||||||
Total
Non-Operating Income/(Expense)
|
6,371 | (50,142 | ) | -112.7 | % | 407 | 1466.1 | % | 36,642 | (87,863 | ) | -141.7 | % | |||||||||||||||||||
Income
before Income Taxes
|
78,128 | 33,868 | 130.7 | % | 46,307 | 68.7 | % | 259,968 | 136,128 | 91.0 | % | |||||||||||||||||||||
Provision
for Income Taxes
|
7,686 | 8,113 | -5.3 | % | 3,168 | 142.6 | % | 19,610 | 17,469 | 12.3 | % | |||||||||||||||||||||
Net
Income
|
70,442 | 25,755 | 173.5 | % | 43,139 | 63.3 | % | 240,358 | 118,659 | 102.6 | % | |||||||||||||||||||||
Basic
EPS
|
1.63 | 0.60 | 172.6 | % | 1.00 | 63.3 | % | 5.55 | 2.75 | 101.8 | % | |||||||||||||||||||||
Basic
Shares
|
43,344,371 | 43,194,566 | 0.3 | % | 43,344,371 | 0.0 | % | 43,307,534 | 43,142,515 | 0.4 | % | |||||||||||||||||||||
Diluted
EPS
|
1.61 | 0.59 | 171.4 | % | 0.99 | 63.1 | % | 5.50 | 2.73 | 101.5 | % | |||||||||||||||||||||
Diluted
Shares
|
43,763,430 | 43,425,896 | 0.8 | % | 43,710,245 | 0.1 | % | 43,672,171 | 43,439,879 | 0.5 | % |
(US$ Thousands)
|
December 31,
|
September 30,
|
December 31,
|
|||||||||
2009
|
2009
|
2008
|
||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||
ASSETS
|
||||||||||||
Current
Assets:
|
||||||||||||
Cash
and cash equivalents
|
$ | 262,656 | $ | 264,976 | $ | 220,808 | ||||||
Short-term
investments
|
89,412 | 102,778 | 176,018 | |||||||||
Total
cash, cash equivalents and short-term investments
|
352,068 | 367,754 | 396,826 | |||||||||
Accounts
receivable, net of allowance for doubtful accounts
|
76,392 | 90,722 | 70,609 | |||||||||
Accounts
receivable from related parties
|
4,399 | 5,425 | 4,592 | |||||||||
Expendable
parts and supplies, net of allowance for obsolescence
|
23,327 | 23,138 | 18,405 | |||||||||
Prepaid
expenses
|
32,314 | 22,277 | 26,694 | |||||||||
Other
current assets
|
13,654 | 5,465 | 5,338 | |||||||||
Total
Current Assets
|
502,154 | 514,781 | 522,464 | |||||||||
Long-term
investments
|
6,407 | 8,577 | 11,145 | |||||||||
Property
and Equipment:
|
||||||||||||
Owned
property and equipment:
|
||||||||||||
Flight
equipment
|
1,439,759 | 1,436,216 | 1,372,352 | |||||||||
Other
equipment
|
61,339 | 61,379 | 55,291 | |||||||||
1,501,098 | 1,497,595 | 1,427,643 | ||||||||||
Less:
Accumulated depreciation
|
(218,108 | ) | (210,067 | ) | (174,835 | ) | ||||||
1,282,990 | 1,287,528 | 1,252,808 | ||||||||||
Purchase
deposits for flight equipment
|
198,697 | 165,370 | 84,861 | |||||||||
Total
Property and Equipment
|
1,481,687 | 1,452,898 | 1,337,669 | |||||||||
Other
Assets:
|
||||||||||||
Net
pension asset
|
2,227 | 2,003 | 1,486 | |||||||||
Goodwill
|
23,852 | 25,369 | 21,732 | |||||||||
Intangible
asset
|
34,973 | 37,197 | 31,865 | |||||||||
Other
assets
|
41,569 | 34,413 | 27,864 | |||||||||
Total
Other Assets
|
102,621 | 98,982 | 82,947 | |||||||||
Total
Assets
|
$ | 2,092,869 | $ | 2,075,238 | $ | 1,954,225 | ||||||
LIABILITIES
AND SHAREHOLDER'S EQUITY
|
||||||||||||
Current
Liabilities:
|
||||||||||||
Current
maturities of long-term debt
|
$ | 94,550 | $ | 129,315 | $ | 115,833 | ||||||
Accounts
payable
|
51,343 | 49,825 | 54,066 | |||||||||
Accounts
payable to related parties
|
14,103 | 9,060 | 11,510 | |||||||||
Air
traffic liability
|
183,344 | 186,985 | 182,490 | |||||||||
Taxes
and interest payable
|
43,227 | 41,761 | 37,194 | |||||||||
Accrued
expenses payable
|
49,058 | 45,490 | 40,642 | |||||||||
Other
current liabilities
|
10,957 | 18,924 | 60,349 | |||||||||
Total
Current Liabilities
|
446,582 | 481,360 | 502,084 | |||||||||
Non-Current
Liabilities:
|
||||||||||||
Long-term
debt
|
750,971 | 771,184 | 800,196 | |||||||||
Post
employment benefits liability
|
2,370 | 2,326 | 2,072 | |||||||||
Other
long-term liabilities
|
13,908 | 12,844 | 8,694 | |||||||||
Deferred
tax liabilities
|
13,410 | 10,685 | 8,747 | |||||||||
Total
Non-Current Liabilities
|
780,659 | 797,039 | 819,709 | |||||||||
Total
Liabilities
|
1,227,241 | 1,278,399 | 1,321,793 | |||||||||
Shareholders'
Equity:
|
||||||||||||
Class
A - 31,136,619 shares issued and 30,566,853 shares
outstanding
|
20,864 | 20,858 | 20,761 | |||||||||
Class
B - 12,778,125 shares issued and outstanding
|
8,722 | 8,722 | 8,722 | |||||||||
Additional
paid in capital
|
18,658 | 17,292 | 13,481 | |||||||||
Retained
earnings
|
817,649 | 747,597 | 594,004 | |||||||||
Accumulated
other comprehensive income (loss)
|
(265 | ) | 2,372 | (4,536 | ) | |||||||
Total
Shareholders' Equity
|
865,628 | 796,841 | 632,432 | |||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 2,092,869 | $ | 2,075,239 | $ | 1,954,225 |
Reconciliation
of EBITDAR
|
||||||||||||||||||||
Excluding
Special Items
|
4Q09 | 4Q08 | 3Q09 |
2009
|
2008
|
|||||||||||||||
Net
income as Reported
|
$ | 70,442 | $ | 25,755 | $ | 43,139 | $ | 240,358 | $ | 118,659 | ||||||||||
Interest
Expense
|
(7,392 | ) | (10,891 | ) | (8,090 | ) | (32,938 | ) | (42,071 | ) | ||||||||||
Capitalized
Interest
|
1 | 525 | 141 | 693 | 1,921 | |||||||||||||||
Interest
Income
|
2,194 | 2,863 | 2,217 | 9,185 | 11,130 | |||||||||||||||
Income
Taxes
|
(7,686 | ) | (8,113 | ) | (3,168 | ) | (19,610 | ) | (17,469 | ) | ||||||||||
EBIT
|
83,325 | 41,371 | 52,039 | 283,029 | 165,148 | |||||||||||||||
Depreciation
and Amortization
|
11,264 | 11,326 | 11,926 | 47,079 | 42,891 | |||||||||||||||
EBITDA
|
94,589 | 52,697 | 63,965 | 330,108 | 208,039 | |||||||||||||||
Aircraft
Rent
|
10,774 | 10,078 | 11,911 | 46,538 | 43,008 | |||||||||||||||
Other
Rentals
|
4,267 | 3,873 | 3,772 | 15,196 | 15,293 | |||||||||||||||
EBITDAR
|
$ | 109,631 | $ | 66,648 | $ | 79,648 | $ | 391,841 | $ | 266,341 | ||||||||||
Special
Items (adjustments):
|
||||||||||||||||||||
Unrealized
(gain) loss on fuel hedging instruments (1)
|
(9,593 | ) | 39,462 | (5,214 | ) | (58,040 | ) | 54,846 | ||||||||||||
Special
Items (2)
|
4,818 | - | 14,599 | 19,417 | - | |||||||||||||||
Adjusted
EBITDAR
|
$ | 104,855 | $ | 106,111 | $ | 89,032 | $ | 353,218 | $ | 321,187 |
Reconciliation
of Operating Income
|
||||||||||||||||||||
Excluding
Special Items
|
4Q09
|
4Q08
|
3Q09
|
2009
|
2008
|
|||||||||||||||
Operating
Income as Reported
|
$ | 71,757 | $ | 84,010 | $ | 45,900 | $ | 223,326 | $ | 223,991 | ||||||||||
Special
Items (adjustments):
|
||||||||||||||||||||
Special
Items, net (2)
|
4,818 | - | 14,599 | 19,417 | - | |||||||||||||||
Adjusted
Operating Income
|
$ | 76,575 | $ | 84,010 | $ | 60,499 | $ | 242,743 | $ | 223,991 |
Reconciliation
of Net Income
|
||||||||||||||||||||
Excluding
Special Items
|
4Q09
|
4Q08
|
3Q09
|
2009
|
2008
|
|||||||||||||||
Net
income as Reported
|
$ | 70,442 | $ | 25,755 | $ | 43,139 | $ | 240,358 | $ | 118,659 | ||||||||||
Special
Items (adjustments):
|
||||||||||||||||||||
Unrealized
(gain) loss on fuel hedging instruments (1)
|
(9,593 | ) | 39,462 | (5,214 | ) | (58,040 | ) | 54,846 | ||||||||||||
Special
Items, net (2)
|
4,818 | - | 14,599 | 19,417 | - | |||||||||||||||
Adjusted
Net Income
|
$ | 65,667 | $ | 65,217 | $ | 52,523 | $ | 201,735 | $ | 173,505 | ||||||||||
Shares
used for Computation (in thousands)
|
||||||||||||||||||||
Basic
|
43,344 | 43,195 | 43,344 | 43,308 | 43,143 | |||||||||||||||
Diluted
|
43,763 | 43,426 | 43,710 | 43,672 | 43,440 | |||||||||||||||
Adjusted
earnings per share
|
||||||||||||||||||||
Basic
|
1.52 | 1.51 | 1.21 | 4.66 | 4.02 | |||||||||||||||
Diluted
|
1.50 | 1.50 | 1.20 | 4.62 | 3.99 |
Reconciliation
Operating Costs per ASM
|
||||||||||||||||||||
Excluding
Fuel and Special Items
|
4Q09
|
4Q08
|
3Q09
|
2009
|
2008
|
|||||||||||||||
Operating
Costs per ASM as Reported
|
10.9 | 11.0 | 10.9 | 10.4 | 12.0 | |||||||||||||||
Aircraft
fuel per ASM
|
(3.1 | ) | (3.8 | ) | (3.2 | ) | (3.0 | ) | (4.6 | ) | ||||||||||
Operating
Costs per ASM excluding fuel
|
7.7 | 7.2 | 7.7 | 7.4 | 7.5 | |||||||||||||||
Special
Items (adjustments):
|
||||||||||||||||||||
Special
Items per ASM, net (2)
|
(0.2 | ) | - | (0.6 | ) | (0.2 | ) | - | ||||||||||||
Operating
expenses excluding fuel and special items
|
7.6 | 7.2 | 7.2 | 7.2 | 7.5 |
(1)
|
Include
unrealized (gains) losses resulting from the mark-to-market accounting for
changes in the fair value of fuel hedging instruments. For
4Q09, 3Q09 and full year 2009 the Company recorded unrealized fuel hedge
gains of US$9.6 million, US$5.2 million and US$58.0 million, respectively.
For 4Q08 and full year 2008 the Company recorded unrealized fuel hedge
losses of US$39.5 million and US$54.8 million,
respectively.
|
(2)
|
Special
items include for 4Q09, 3Q09 and 2009 exclude special charges related to
the accrual of costs associated with the retirement of four MD-80 aircraft
as a result of Aero Republica’s transition to an all Embraer-190
fleet
|