Copa Holdings (CPA) Misses Q3 EPS by 12c, Revenues Miss

Copa Holdings (NYSE: CPA) reported Q3 EPS of ($2.86), $0.12 worse than the analyst estimate of ($2.74). Revenue for the quarter came in at $32.38 million versus the consensus estimate of $39.02 million.

OPERATING AND FINANCIAL HIGHLIGHTS

• Copa Holdings reported a net loss of US$118.1 million or US$2.78 per share. Excluding special items, the Company would have reported a net loss of US$121.6 million, or US$2.86 per share.
• Special items for the quarter include a US$3.6 million unrealized gain on the mark-to-market of the Company's outstanding convertible notes.
• Copa Holdings reported an operating loss of US$107.0 million.
• Cash consumption, defined as cash disbursements less proceeds, excluding extraordinary financing activities and asset sales, averaged US$36 million per month during the quarter.
• The Company ended the quarter with US$1.3 billion of available liquidity, consisting of US$1.0 billion in cash, short-term and long-term investments, and committed and undrawn credit facilities of US$305 million.
• The Company repaid US$50 million in short-term lines of credit, closing the quarter with a total debt of US$1.2 billion.
• On August 14, the Company restarted limited scheduled commercial operations, subject to Panama's health control restrictions on the number of flights and entry for non-citizens and non-residents to Panama and has been gradually increasing capacity since then. Capacity for the quarter represented approximately 1.5% of 3Q19 capacity.
• The Company completed the delivery of the first EMB-190 aircraft out of 14 that have been sold to a third party.
• Excluding the aircraft classified as assets held for sale, Copa Holdings ended the quarter with a consolidated fleet of 74 aircraft – 68 Boeing 737-800s and 6 Boeing 737MAX9s.

Due to government restrictions on air travel implemented in response to the Covid-19 outbreak, the Company did not provide scheduled commercial service during the first 45 days of the quarter. On August 14, the Company restarted limited scheduled commercial operations subject to Panama's restrictions on the number of flights and entry for non-citizens and non-residents, and it has been gradually increasing capacity ever since. However, the capacity figures were still very low on a full quarter basis. Therefore, this earnings release will focus on the financial results and metrics that are relevant in these circumstances and will omit certain financial ratios, unit metrics and operational indicators that are usually provided, since they are either not measurable or immaterial on such a limited operational base.

For earnings history and earnings-related data on Copa Holdings (CPA) click here.

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