CPA Q3 2020 Earnings

Call Details

• Call Title: Copa Airlines Q3 2020 Earnings Call
• Date: November 19, 2020 at 4:00 PM UTC
• Management Team:
  • Raul Pascual (Director of Investor Relations)
  • Pedro Heilbron (Chief Executive Officer)
  • Jose Montero (Chief Financial Officer)

Call Summary

Financial Performance

• Copa reported a net loss of $118.1M or a loss of $2.78 per share for Q3 2020.
• Excluding special items, Copa reported a net loss of $121.6M or a loss of $2.86 per share for Q3 2020.
• Reported cash consumption in Q3 averaged about $36M per month, excluding $22M of proceeds and a $50M short-term credit line payment.
• Copa closed the quarter with approximately $1.0B in cash, short-term and long-term investments and approximately $1.2B in debt.
• Total assets were $3.9B and owner's equity was almost $1.5B at quarter end.
• Total debt plus lease liabilities totaled $1.5B and the lease-liability-adjusted net debt ratio was reported at 2.2 times.

Guidance

• Copa expects to operate approximately 40% of 2019 capacity in December 2020.
• Copa reported October at approximately 15% of October 2019 capacity and expects November and December to approach 30% and 40% year-over-year respectively.
• Copa expects fourth quarter 2020 cash consumption of about $25M per month assuming leased aircraft and debt commitments are paid in full and excluding proceeds from aircraft sales.
• The company cited that bookings support sustaining the December ASM plan and expects January 2021 to be slightly better than December in ASMs.
• The December expectation represents a move to the upper side of the prior 30%–40% guidance range provided on the previous call.
• The company emphasized conservative planning for 2021 and stated that regional vaccine availability and potential infection waves could materially affect 2021 recovery.