During the third quarter of 2013 Avianca Holdings S.A. (NYSE: AVH)
reported a consolidated adjusted net income of USD$99.1 million
excluding FX effects related to liabilities denominated in Colombian
Pesos and on the gain on sale of assets. This represents an increase of
151.3% over the same period in 2012. Avianca´s adjusted net profit
margin increased by 450 basis points reaching 8.5%. Including the
aforementioned effects on net income, Avianca Holdings S.A. and its
subsidiaries generated a net income of USD$39,9 million.
Operating revenue came in at USD$1.182 million, representing an increase
of 9.6% over the same period of 2012. Said increase is the result of a
rise of 9.4% in passenger income resulting from a growth of 3.5% in
carried passengers. Cargo and other revenues grew by 10.9%. This
increase is mainly driven by the cargo and loyalty program business unit.
Revenue per Seat Kilometer (RASK) grew 3.6% whereas the Cost per
Available Seat Kilometer (CASK) in 3Q 2013, grew from USD$10.3 cents to
USD$10.4 cents, an increase of 1,5% with respect to the same period in
2013.
EBITDAR (earnings before interest, tax, depreciation, amortization and
aircraft rentals) increased 23.1% with respect to 3Q 2012. The EBITDAR
margin reached 20.1%.
Operating income (EBIT) for 3Q 2013 rose to USD$132.2 million, a 32.2%
increase with respect to the USD$100.0 million reached in the same
period in 2012. The operating margin in 3Q 2013 came in at 11.2%,
increasing by 1.9pp with respect to 3Q 2012. Said rise was generated by
an increase in operating revenue as well as by cost control measures.
Capacity, measured in ASKs (Available Seats per Kilometer) grew by 5.87%
throughout 3Q 2013. This growth is driven by the expansion of Avianca’s
operations in its core markets, the incorporation of larger aircraft as
well as an improvement in operating cycles of 1.1%. Traffic measured in
RPKs (Revenue Passenger Kilometer) grew 5.9%, resulting in a Load Factor
of 82.0% representing an increase of 20 basis points with respect to the
Load Factor of 3Q 2012.
In accordance with the fleet renovation and modernization plan, between
July and September 2013, the company through its subsidiary Avianca
S.A., took delivery of one Airbus A320 aircraft equipped with sharklets,
one ATR 72-600 and one A330 Cargo. As a result, Avianca Holdings S.A.
subsidiaries ended the quarter with a consolidated operating fleet of
154 aircraft.
With these third quarter results, Avianca Holdings S.A. reports a
consolidated net income for the last 9 months of USD$183.4 million,
reaching accumulated net margin of 5.4% year to date.
These numbers are expressed in USD as the functional currency under
International Financial Reporting Standards
The terms "Avianca Holdings" or "the Company" refer to the consolidated
entity.
The original source-language text of this announcement is the official,
authoritative version. Translations are provided as an accommodation
only, and should be cross-referenced with the source-language text,
which is the only version of the text intended to have legal effect.
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AVIANCA HOLDINGS S.A.
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Financial Highlights
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(First 9 months ended Sept 30th)
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2012
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2013
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Revenues
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3.2bn
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3.4bn
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EBITDAR
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482.8m
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582.4m
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EBIT
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193.9m
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270.2m
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Net Income
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10.5m
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183.4m
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Net Income*
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86.2m
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168.3m
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(First 9 months ended Sept 30th)
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*Excluding Special Items
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Q3-12
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Q3-13
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Revenues
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1.1bn
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1.2bn
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EBITDAR
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193.0m
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237.5m
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EBIT
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100.0m
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132.2m
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Net Income
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56.2m
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35.9m
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Net Income*
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39.4m
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99.1m
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*Excluding Special Items
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Profitability
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2012
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2013
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EBITDAR %
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15.3
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%
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17.3
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%
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EBIT%
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6.1
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%
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7.9
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%
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Net Income %
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0.3
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%
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5.4
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%
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Net Income*
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2.7
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%
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4.9
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%
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(First 9 months ended Sept 30th)
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*Excluding Special Items
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Q3-12
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Q3-13
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EBITDAR%
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17.9
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%
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20.1
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%
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EBIT %
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9.3
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%
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11.2
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%
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Net Income %
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5.2
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%
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3.0
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%
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Net Income*
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3.7
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%
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8.4
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%
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*Excluding Special Items
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Operational Highlights
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2012
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2013
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Passengers
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17.1
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18.3
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ASKs
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27.1
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28.9
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RPKs
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21.6
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23.2
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Load Factor
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79.6
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%
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80.4
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%
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RASK
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11.6c
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11.8c
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CASK
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10.9c
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10.8c
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(First 9 months ended Sept 30th)
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Q3-12
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Q3-13
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Passengers
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6.2m
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6.4m
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ASKs
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9.5m
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10.1m
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RPKs
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7.8m
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8.3m
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Load Factor
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81.8
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%
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82.0
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%
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RASK
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11.3c
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11.7c
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CASK
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10.3c
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10.4c
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Third Quarter 2013 Highlights
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Avianca Holdings would have earned an adjusted net income of $99.1
million excluding special items, a 151.3% increase over adjusted net
income of $39.4 million for the same period in 2012. Adjusted net
income margin increased 470 basis points, reaching an all-time high of
8.4%. Net income for the quarter stands at $35.9 million for 3Q 2013.
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Operating revenues increased to $1.2 billion, up 9.6% from 3Q 2012 due
mainly to a 9.4% increase in passenger revenues driven by a 3.5%
growth in passenger carried over 3Q 2012. Cargo and other revenues
increased by 10.9%, primarily as a result of an increase in our cargo
and loyalty program revenues.
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RASK improved 3.6% in the third quarter while cost per available seat
kilometer (CASK) for the same period increased only by 1.5%.
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EBITDAR was $237.5 million, an increase of 23.1% compared with 3Q
2012, and EBITDAR margin reached 20.1%.
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Operating income (EBIT) increased to $132.2 million, a 32.2% increase
from $100.0 million in 3Q 2012. Operating Margin for 3Q-13 rose to
11.2% compared to 9.3% in 3Q 2012, as operating revenues grew at a
higher pace when compared to operating costs.
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Capacity, measured in ASKs (available seat kilometers), increased by
5.8% during 3Q 2013, mostly due to the continued expansion in our home
markets, the addition of larger aircraft and a 1.1% increase in
departures. In addition, passenger traffic, measured in RPKs (revenue
passenger kilometers) grew 5.9%, reaching a consolidated load factor
of 82.0%, surpassing the 3Q 2012 load factor by 20 basis points.
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In accordance with the fleet renovation and modernization plan,
between July and September 2013, the company took delivery of one
Airbus A320 aircraft equipped with sharklets, one ATR 72-600 and one
A330-Freighter. As a result, Avianca Holdings S.A. and subsidiaries
ended the quarter with a consolidated operating fleet of 154 aircraft.
Consolidated Financial and Operating Highlights
Performance Driver
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3Q 2012
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3Q 2013
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Change vs. 3Q 2012
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ASK's (mm)
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9,519
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10,067
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5.8
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%
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RPK's (mm)
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7,790
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8,253
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5.9
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%
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Total Passengers (in millions)
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6,159
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6,373
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3.5
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%
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Load Factor
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81.8
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%
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82.0
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%
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0.2
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%
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Departures
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63,951
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64,630
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1.1
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%
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Block Hours
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120,089
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125,037
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4.1
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%
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Stage length (km)
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1,265
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1,276
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0.9
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%
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Fuel Consumption Gallons (000's)
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100,109
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105,192
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5.1
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%
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Yield (cents)
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11.6
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12.0
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3.2
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%
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RASK (cents)
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11.3
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11.7
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3.6
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PRASK (cents)
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9.5
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9.8
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3.4
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CASK (cents)
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10.3
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10.4
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1.5
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%
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CASK ex, Fuel (cents)
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6.8
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7.1
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4.3
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CASK Adjusted (cents) (1)
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10.3
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10.4
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1.1
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%
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CASK ex, Fuel Adjusted (cents) (1)
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6.8
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7.1
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3.7
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%
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Foreign exchange (average) COP/US$
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$
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1,797.4
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$
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1,907.7
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-6.1
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%
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Foreign exchange (end of period) COP/US$
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$
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1,800.5
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$
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1,914.7
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-6.3
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%
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WTI (average) per barrel
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$
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92.2
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$
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105.8
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14.8
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%
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Jet Fuel Crack (average) per barrel
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$
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37.2
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$
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17.8
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-52.1
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%
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US Gulf Coast ( Jet Fuel average) per barrel
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$
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129.3
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$
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123.6
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-4.4
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%
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Fuel price per Gallon (including hedge)
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$
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3.32
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$
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3.21
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-3.4
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%
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Operating Revenues ($M)
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$
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1,078.4
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$
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1,182.0
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9.6
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%
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EBITDAR ($M)
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$
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193.0
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$
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237.5
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23.1
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%
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EBITDAR Margin
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17.9
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%
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20.1
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%
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2.2
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%
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EBITDA ($M)
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$
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134.4
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$
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174.1
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29.6
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%
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EBITDA Margin
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12.5
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%
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14.7
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%
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2.3
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%
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Operating Income ($M)
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$
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100.0
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$
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132.2
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32.2
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%
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Operating Margin ($M)
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9.3
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%
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11.2
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%
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1.9
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%
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Net Income ($M)
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$
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56.2
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$
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35.9
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-36.1
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%
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Net Income Margin
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5.2
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%
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3.0
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%
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-2.2
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%
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EBITDAR (Adjusted) (1) ($M)
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$
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188.4
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$
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236.8
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25.7
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%
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EBITDAR Margin (Adjusted) (1)
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17.5
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%
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20.0
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%
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2.6
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%
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EBITDA (Adjusted) (1) ($M)
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$
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129.8
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$
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173.4
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33.6
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%
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EBITDA Margin (Adjusted) (1)
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12.0
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%
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14.7
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%
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2.6
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%
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Operating Income ($M) (Adjusted) (1)
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$
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95.4
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$
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131.4
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37.8
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%
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Operating Margin (Adjusted) (1)
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8.8
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%
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11.1
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%
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2.3
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%
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Adjusted Net Income ($M) (2)
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$
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39.4
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$
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99.1
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151.3
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%
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Net Income Margin (Adjusted) (2)
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3.7
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%
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8.4
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%
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4.7
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%
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Note:
(1) Excluding gain on sale of property and equipment in
operating expenses: 3Q 2012 gain of $4.6M vs, 3Q 2013 gain of $0.8M
(2) Excluding gain on sale of property and equipment.
derivative instruments and foreign exchange
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MANAGEMENT COMMENTS ON 3Q 2013 RESULTS
Avianca Holdings reached an operating income (EBIT) of $132.2 million
for 3Q 2013, a significant improvement of 32.2% over 3Q 2012 results.
Operating income (EBIT) margin climbed to 11.2%, an increase of 190
basis points over the same period for 2012. These figures reflect the
execution of integrated network strategy improving connectivity through
our hubs and customer experience, the implementation of our fleet
interchangeability program in place since July 2013, the consolidated
market leadership in our key markets, the continuous revenue
diversification through our different business units and continuous
efforts to increase efficiency and control operational and
administrative costs.
Operating revenues increased to $1.2 billion during the period. This
represents an increase of 9.6% over the same period in 2012. These
results are primarily due to the growth in passenger revenues from a
9.4% increase in ticket sales during the period. This result was mainly
driven by a 3.5% increase in the number of total passengers carried,
increasing from 6.2 million in the third quarter of 2012 to 6.4 million
in the third quarter of 2013.
The company continued with its market penetration strategy in the
Peruvian domestic market where the company experienced an increase in
the number passengers carried of 22.9% when compared to the third
quarter of 2012.
During the quarter the company added San Juan Puerto Rico as a new
destination from our Bogota hub. Additional new services to Cancun were
set in place from the Bogota hub and a new service to Chicago was added
from the San Salvador hub. Furthermore additional weekly frequencies
were added on the international and domestic network on the following
routes: Guatemala-San Salvador (+7), Bogota-Barranquilla (+7),
Bogota-Cali (+3), Bogota-Cucuta (+3), Arequipa-Cuzco (+3), Havana-San
Salvador (+2), Los Angeles-San Salvador (+2) and Cali-San Salvador (+2),
among others.
In accordance with the fleet renovation and modernization plan, between
July and September 2013, the company took delivery of one Airbus A320
aircraft equipped with sharklets, one ATR 72-600 and one A330-Freighter.
As a result, Avianca Holdings S.A. and subsidiaries ended the quarter
with a consolidated operating fleet of 154 aircraft.
Operating expenses for the third quarter of 2013 increased 7.3% to $1.05
billion. These results included a 1.5% increase in fuel costs associated
with a higher consumption of fuel (as measured in gallons) of 5.1% as
a result of capacity expansion, partially offset by a decrease of 4.4%
in fuel (Gulf Coast) prices (WTI + crack spread). Operating expenses
excluding fuel costs for Q3 2012 were affected by a gain of $4.6 million
related to the gain on sale of property and flight equipment compared to
a $0.8 million gain recorded in Q3 2013. Excluding these items,
operating expenses grew 6.9%.
As part of the company’s on-going fuel hedging strategy, by the end of
third quarter of 2013, approximately 34% of the expected volume to be
consumed over the next twelve months was hedged as follows:
approximately 46% for 4Q 2013, 43% for 1Q 2014, 48% for 2Q 2014 and 11%
for 3Q 2014.
The company recorded other non-operating expenses of $88.4 million for
the third quarter 2013, compared to $11.2 million for the same period of
2012. Non-operating expenses include expenses related to derivative
instruments (including mark-to-market losses) of $3.3 million compared
to $3.9 million for the same period of 2012, and a net loss related to
the foreign exchange non-cash translation adjustments of $60.6 million
compared to a net gain of $16.1 million for the same period of 2012.
Foreign exchange translation adjustments consist primarily of the net
non-cash gain or loss from our monetary assets and liabilities
denominated in Colombian pesos, related to the appreciation or
depreciation of Colombian Pesos against US dollars.
The company also improved the strength of its balance sheet; cash and
cash equivalents ended Q3 2013 at $580.4 million, representing 13.5% of
the last twelve month’s revenues, improving by 411 basis points from
9.4% in December 2012. Of such cash $270.2 million were subject to
exchange controls in Venezuela and were pending repatriation.
Furthermore the company´s leverage position (Net Adjusted debt to
EBITDAR) decreased from 4.9x in December 2012 to 4.6x in September 2013.
Additional improvements for liquidity and leverage position are expected
to materialize as a result of the issuance of 100 million preferred
shares in November 2013 related to our initial public offering in the US
equity capital markets.
2013 - OUTLOOK
During the remainder of 2013, the company expects to continue with a
capacity expansion in its key markets, as a result the company forecasts
ASK growth between 7% and 8% for the full year 2013 compared to 2012. In
terms of passenger traffic, the company expects a sustained growth
during the remainder of 2013. Passenger numbers are expected to increase
between 9% and 10% for the full year 2013 and as a result the load
factor should stand between 79% and 80%.
In terms of operating profitability the company expects to maintain
operating margins between 7% and 8%, slightly above 2012 levels despite
the increased investments related to the implementation of different
initiatives related to the brand unification and operational
standardization.
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Outlook Summary
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FY13
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FY13 revised
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Capacity (ASK'S) Increase from 2012
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8% - 10%
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7% - 8%
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Total Passengers Increase from 2012
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11% - 13%
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9% - 10%
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Load Factor
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77% - 79%
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79% - 80%
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EBIT Margin
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6.5% - 7.5%
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7% - 8%
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CONSOLIDATED FINANCIAL RESULTS
Operating revenue
Our operating revenue was $1.2 billion in 3Q 2013, a 9.6% increase over
$1.1 billion in 3Q 2012, as a result of a $84.8 million increase in
passenger revenue mainly due to increased passenger volume, and a $18.8
million increase in revenue from cargo and other revenues related mainly
to an increase in revenues from the LifeMiles loyalty program. Our
operating revenue per ASK was 11.7 cents in 3Q 2013, a 3.6% increase
from 11.3 cents in 3Q 2012.
Passenger revenue. Our passenger revenue was $990.1 million in 3Q
2013, a 9.4% increase over $905.3 million in 3Q 2012, primarily as a
result of a 3.5% increase in passengers carried from 6.2 million in 3Q
2012 to 6.4 million in 3Q 2013. This reflects a 5.8% ASK capacity
increase (consisting of a 12.6% increase in international markets and a
4.1% increase in domestic markets). Passenger load factor increased 0.1
percentage points to 82.0%, while passenger yield increased 3.2% from
11.6 cents in 3Q 2012 to 12.0 cents in 3Q 2013.
Cargo and other. Our revenue from cargo and other was $191.9
million in 3Q 2013, a 10.9% increase from $173.1 million in 3Q 2012,
primarily as a result of increased revenues from our LifeMiles Loyalty
program, international cargo services and other revenues related to
complementary services provided to third parties.
Operating expenses
Operating expenses were $1,049.8 million in 3Q 2013, a 7.3% increase
over $978.4 million in 3Q 2012, primarily as a result of a $17.4 million
increase in salaries, wages and benefits expenses related mainly to
pension expense based on updated actuarial calculations, a $10.9 million
increase in sales and marketing expenses related to higher sales, and
$11.0 million increase in general and administrative expenses.
Operating expenses for Q3 2012 were affected by gain of $4.6 million
related to a sale of property and flight equipment compared to a $0.8
million gain recorded in Q3 2013. Excluding these items, operating
expenses costs grew 6.9%. As a percentage of operating revenue,
operating expenses decreased from 90.7% in 3Q 2012 to 88.8% in 3Q 2013.
Our operating expenses cost and the effect of gain/loss on sale of
property and flight equipment increased at a lower pace compared to the
increase in our operating revenue reflecting our efforts to optimize
controllable costs. As a result, our CASK excluding fuel and special
items (the gain on sale of property and flight equipment described on
the preceding paragraph) increased 3.6% in 3Q 2013. The breakdown of
operating expenses per available seat kilometer (CASK) is as follows:
|
|
|
|
|
|
|
|
|
Third Quarter Ended September 30,
|
|
|
|
|
3Q 2012
|
|
3Q 2013
|
|
% Change
|
|
|
|
|
(in US cents)
|
|
|
Operating expenses per ASK (CASK):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flight Operations
|
|
|
|
0.22
|
|
0.20
|
|
-8.8%
|
Aircraft Fuel
|
|
|
|
3.49
|
|
3.35
|
|
-4.1%
|
Ground Operations
|
|
|
|
0.86
|
|
0.87
|
|
1.5%
|
Aircraft rentals
|
|
|
|
0.62
|
|
0.63
|
|
2.3%
|
Passenger services
|
|
|
|
0.36
|
|
0.37
|
|
5.4%
|
Maintenance and repairs
|
|
|
|
0.50
|
|
0.50
|
|
-0.4%
|
Air Traffic
|
|
|
|
0.43
|
|
0.44
|
|
2.1%
|
Sales and marketing
|
|
|
|
1.17
|
|
1.22
|
|
3.8%
|
General, administrative, and other
|
|
|
|
0.76
|
|
0.79
|
|
3.9%
|
Salaries, wages and benefits
|
|
|
|
1.56
|
|
1.65
|
|
5.6%
|
Depreciation and amortization
|
|
|
|
0.36
|
|
0.42
|
|
15.2%
|
Gain/loss on property and equipment (special item)
|
|
|
|
(0.05)
|
|
(0.01)
|
|
84.4%
|
Total
|
|
|
|
10.28
|
|
10.43
|
|
1.5%
|
Total (excluding fuel)
|
|
|
|
6.78
|
|
7.07
|
|
4.3%
|
Total (excluding fuel and special item)
|
|
|
|
6.83
|
|
7.08
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
Flight operations. Flight operations expense was $19.8 million in
3Q 2013, a 3.6% decrease over $20.5 million in 3Q 2012, primarily as a
result of savings related to crew trainings due to higher use of the
company’s flight simulators, lower expenses for third party instructors
and a decrease in insurance rates, partially offset by a 4.1% increase
in block hours, related to expansion of our Colombian and Peruvian
operations. In terms of unit cost per ASK, flight operations decreased
8.8% from 0.22 in 3Q 2012 to 0.20 in 3Q 2013.
Fuel. Fuel expense was $337.5 million in 3Q 2013, a 1.5% increase
over $332.6 million in 3Q 2012, primarily as a result of a 5.1% increase
in fuel consumption during 3Q 2013 reflecting a 4.1% increase in our
block hours, partially offset by decrease in our average “into-plane”
fuel cost (fuel price plus taxes and distribution costs), from $3.32 per
gallon in 3Q 2012 to $3.21 per gallon in 3Q 2013. The cost of fuel per
ASK decreased 4.1% in 3Q 2013 as a result of the foregoing.
Ground operations. Ground operations expense was $87.4
million in 3Q 2013, a 7.3% increase over $81.4 million in 3Q 2012,
primarily as a result in increased prices for landing and ramp services
in Colombia and US airports related to aircraft up gauges. Also includes
increased air navigation costs as a result of increased operations. In
terms of unit cost per ASK, ground operations increased 1.5% from 0.86
in 3Q 2012 to 0.87 in 3Q 2013.
Aircraft rentals. Aircraft rentals expense was $63.4 million in
3Q 2013, an 8.2% increase over $58.6 million in 3Q 2012, primarily as a
result of the incorporation of new aircraft (two A320 and one A330s)
under operating leases compared to 3Q 2012. In terms of unit cost per
ASK, aircraft rentals increased 2.3% from 0.62 in 3Q 2012 to 0.63 in 3Q
2013.
Passenger services. Passenger services expense was $37.7 million
in 3Q 2013, an 11.4% increase over $33.8 million in 3Q 2012, primarily
as a result of a 3.5% increase in passengers carried, and customer
experience improvements related to the new Avianca brand launch. In
terms of unit cost per ASK, passenger services expense increased from
0.36 in 3Q 2012 to 0.37 in 3Q 2013.
Maintenance and repairs. Maintenance and repairs expense was
$49.9 million in 3Q 2013, a 5.3% increase over $47.4 million in 3Q 2012,
primarily as a result of a 4.1% increase in block hours and a 1.1%
increase in departures. In terms of unit cost per ASK, maintenance and
repairs remained at 0.50.
Air traffic. Air traffic expense was $44.6 million in 3Q
2013, a 7.9% increase over $41.4 million in 3Q 2012, primarily as a
result of a 3.5% increase in passengers carried and a 1.1% increase in
departures in 3Q 2013 compared to 3Q 2012 and increased airport
facilities costs in the new terminal in Bogota. In terms of unit cost
per ASK, air traffic expense increased from 0.43 in 3Q 2012 to 0.44 in
3Q 2013.
Sales and marketing. Sales and marketing expenses were $122.5
million in 3Q 2013, a 9.8% increase over $111.6 million in 3Q 2012,
primarily as a result of an increase in costs related to increased
ticket sales (commissions, Global Distribution Systems, and hosting
costs) and increased loyalty costs related to increased loyalty
membership. In terms of unit cost per ASK, sales and marketing expenses
increased from 1.17 in 3Q 2012 to 1.22 in 3Q 2013.
General, administrative and other. General, administrative and
other expenses were $78.9 million in 3Q 2013, a 16.2% increase from 3Q
2012, mainly due to a $7.0 million expense related to local taxes, $3.8
million related to gain on sale of assets in 3Q 2012 and $6.3 million in
provision for contingencies, partially compensated by $7.0 million in
savings captured in the quarter. In terms of unit cost per ASK,
excluding gain or loss on sale of property and flight equipment,
general, administrative and other expenses increased 3.9% from 0.76 in
3Q 2012 to 0.79 in 3Q 2013.
Salaries, wages and benefits. Salaries, wages and benefits
expenses were $166.3 million in 3Q 2013, an 11.7% increase over $148.9
million in 3Q 2012, primarily as a result of pension expense provision
of $13.9 million based on updated actuarial calculations, $1.1 million
provision related to pilots new compensation scheme, a 2.8% increase in
total personnel, mainly related to growth of our operations and average
salary inflation adjustments. In terms of unit cost per ASK, salaries,
wages and benefits increased by 5.6% from 1.56 in 3Q 2012 to 1.65 in 3Q
2013.
Depreciation and amortization. Depreciation and amortization
expense was $41.9 million in 3Q 2013, a 21.8% increase over $34.4
million in 3Q 2012 mainly due to $5.9 million charge related to the
phase-out of our B767 freighter fleet. In terms of unit cost per ASK,
depreciation and amortization expense increased 15.2% from 0.36 in 3Q
2012 to 0.42 in 3Q 2013.
EBITDAR Calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in US% Millions
|
|
|
3Q-12
|
|
|
3Q-13
|
|
|
Var %
|
|
|
|
Operating Revenues
|
|
|
1,078.4
|
|
|
1,182.0
|
|
|
|
|
|
|
Operating Expenses
|
|
|
645.8
|
|
|
712.3
|
|
|
|
|
|
|
Aircraft Fuel
|
|
|
332.6
|
|
|
337.5
|
|
|
|
|
|
|
Operating Income - EBIT
|
|
|
100.0
|
|
|
132.2
|
|
|
32.2%
|
|
|
|
Margin
|
|
|
9.3%
|
|
|
11.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(+) Depreciation and amortization
|
|
|
34.4
|
|
|
41.9
|
|
|
|
|
|
|
EBITDA
|
|
|
134.4
|
|
|
174.1
|
|
|
29.6%
|
|
|
|
Margin
|
|
|
12.5%
|
|
|
14.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(+) Aircraft Rentals
|
|
|
58.6
|
|
|
63.4
|
|
|
|
|
|
|
EBITDAR
|
|
|
193.0
|
|
|
237.5
|
|
|
23.1%
|
|
|
|
Margin
|
|
|
17.9%
|
|
|
20.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of Operations for the Quarters Ended Sep 30, 2012 and
September 30, 2013
The following table sets forth certain income statement data for the
periods indicated:
|
|
3Q 2012
|
|
3Q 2013
|
|
3Q 2012
|
|
3Q 2013
|
|
From 3Q 2012 to 3Q 2013
|
|
|
(In US$ thousands)
|
|
(As a percentage of total revenue)
|
|
(% change)
|
Operating revenue:
|
|
|
|
|
|
|
|
|
|
|
Passenger
|
|
905,315
|
|
|
990,129
|
|
|
83.9
|
%
|
|
83.8
|
%
|
|
9.4
|
%
|
Cargo and other
|
|
173,097
|
|
|
191,914
|
|
|
16.1
|
%
|
|
16.2
|
%
|
|
10.9
|
%
|
Total operating revenues
|
|
1,078,412
|
|
|
1,182,043
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
9.6
|
%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Flight Operations
|
|
20,519
|
|
|
19,780
|
|
|
1.9
|
%
|
|
1.7
|
%
|
|
-3.6
|
%
|
Aircraft Fuel
|
|
332,567
|
|
|
337,476
|
|
|
30.8
|
%
|
|
28.6
|
%
|
|
1.5
|
%
|
Ground Operations
|
|
81,399
|
|
|
87,350
|
|
|
7.5
|
%
|
|
7.4
|
%
|
|
7.3
|
%
|
Aircraft rentals
|
|
58,563
|
|
|
63,367
|
|
|
5.4
|
%
|
|
5.4
|
%
|
|
8.2
|
%
|
Passenger services
|
|
33,797
|
|
|
37,659
|
|
|
3.1
|
%
|
|
3.2
|
%
|
|
11.4
|
%
|
Maintenance and repairs
|
|
47,385
|
|
|
49,902
|
|
|
4.4
|
%
|
|
4.2
|
%
|
|
5.3
|
%
|
Air Traffic
|
|
41,379
|
|
|
44,663
|
|
|
3.8
|
%
|
|
3.8
|
%
|
|
7.9
|
%
|
Sales and Marketing
|
|
111,622
|
|
|
122,535
|
|
|
10.4
|
%
|
|
10.4
|
%
|
|
9.8
|
%
|
General, administrative, and other
|
|
67,897
|
|
|
78,905
|
|
|
6.3
|
%
|
|
6.7
|
%
|
|
16.2
|
%
|
Salaries, wages and benefits
|
|
148,872
|
|
|
166,263
|
|
|
13.8
|
%
|
|
14.1
|
%
|
|
11.7
|
%
|
Depreciation and amortization
|
|
34,421
|
|
|
41,941
|
|
|
3.2
|
%
|
|
3.5
|
%
|
|
21.8
|
%
|
Total operating expense
|
|
978,421
|
|
|
1,049,841
|
|
|
90.7
|
%
|
|
88.8
|
%
|
|
7.3
|
%
|
Operating income
|
|
99,991
|
|
|
132,202
|
|
|
9.3
|
%
|
|
11.2
|
%
|
|
32.2
|
%
|
Other non-operating income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(26,115
|
)
|
|
(25,662
|
)
|
|
-2.4
|
%
|
|
-2.2
|
%
|
|
-1.7
|
%
|
Interest income
|
|
2,695
|
|
|
1,190
|
|
|
0.2
|
%
|
|
0.1
|
%
|
|
-55.8
|
%
|
Derivative instruments
|
|
(3,911
|
)
|
|
(3,330
|
)
|
|
-0.4
|
%
|
|
-0.3
|
%
|
|
-14.9
|
%
|
Foreign exchange
|
|
16,094
|
|
|
(60,609
|
)
|
|
1.5
|
%
|
|
-5.1
|
%
|
|
-476.6
|
%
|
Total other non-operating income (expense)
|
|
(11,237
|
)
|
|
(88,411
|
)
|
|
-1.0
|
%
|
|
-7.5
|
%
|
|
686.8
|
%
|
Profit before income taxes
|
|
88,754
|
|
|
43,791
|
|
|
8.2
|
%
|
|
3.7
|
%
|
|
50.7
|
%
|
Provision for income tax expense
|
|
-32,570
|
|
|
-7,916
|
|
|
-3.0
|
%
|
|
-0.7
|
%
|
|
-75.7
|
%
|
Net income
|
|
56,184
|
|
|
35,875
|
|
|
5.2
|
%
|
|
3.0
|
%
|
|
36.1
|
%
|
|
|
|
|
|
|
|
Interim Consolidated Statement of Financial Position
|
|
|
|
|
|
|
|
|
Sep. 13
|
|
Dec. 12
|
|
Var %
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ 580,435
|
|
$ 402,997
|
|
44.0%
|
Restricted cash
|
|
11,844
|
|
6,547
|
|
80.9%
|
Available -for- sale securities
|
|
19,138
|
|
19,460
|
|
-1.7%
|
Accounts receivable, net of provision for do ubtful accounts
|
|
276,680
|
|
202,962
|
|
36.30%
|
Accounts receivable from related parties
|
|
22,479
|
|
29,427
|
|
-23.6%
|
Expendable spare parts and supplies, net of provision for
obsolescence
|
|
53,191
|
|
48,796
|
|
9.0%
|
Prepaid expenses
|
|
60,043
|
|
54,512
|
|
10.1%
|
Assets held for sale
|
|
17,645
|
|
9,832
|
|
79.5%
|
Deposits and other assets
|
|
70,928
|
|
105,028
|
|
-32.5%
|
Total current assets
|
|
1,112,383
|
|
879,561
|
|
26.5%
|
Non-current assets:
|
|
|
|
|
|
|
Available -for- sale securities
|
|
14,678
|
|
13,165
|
|
11.5%
|
Deposits and other assets
|
|
227,478
|
|
221,558
|
|
2.7%
|
Accounts receivable, net of provision for do ubtful accounts
|
|
82,565
|
|
64,540
|
|
27.9%
|
Accounts receivable from related parties
|
|
22,644
|
|
24,001
|
|
-5.7%
|
Intangible assets
|
|
358,160
|
|
344,908
|
|
3.8%
|
Deferred tax assets
|
|
38,804
|
|
73,644
|
|
-47.3%
|
Property and equiment, net
|
|
3,012,965
|
|
2,699,546
|
|
11.6%
|
Total non-current assets
|
|
3,757,294
|
|
3,441,362
|
|
9.2%
|
Total assets
|
|
$ 4,869,677
|
|
4,320,923
|
|
12.7%
|
Current liabilities:
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$ 348,301
|
|
$ 282,145
|
|
23.4%
|
Accounts payable
|
|
480,737
|
|
488,568
|
|
-1.6%
|
Accounts payable to related parties
|
|
9,303
|
|
7,309
|
|
27.3%
|
Accrued expenses
|
|
156,575
|
|
181,802
|
|
-13.9%
|
Provisions for legal claims
|
|
8,861
|
|
7,903
|
|
12.1%
|
Provisions for return conditions
|
|
17,368
|
|
7,598
|
|
128.6%
|
Employee benefits
|
|
35,655
|
|
57,241
|
|
-37.7%
|
Air traffic liability
|
|
611,906
|
|
468,789
|
|
30.5%
|
Others liabilities
|
|
17,356
|
|
29,470
|
|
-41.1%
|
Total current liabilities
|
|
1,686,062
|
|
1,530,825
|
|
10.1%
|
Non-current liabilities:
|
|
|
|
|
|
|
Long-term debt
|
|
1,862,735
|
|
1,572,299
|
|
18.5%
|
Accounts payable
|
|
2,768
|
|
3,041
|
|
-9.0%
|
Provisions for return conditions
|
|
59,035
|
|
59,297
|
|
-0.4%
|
Employee benefits
|
|
264,752
|
|
400,831
|
|
-33.9%
|
Deferred tax liabilities
|
|
7,812
|
|
2,528
|
|
209.0%
|
Total non-current liabilities
|
|
2,197,102
|
|
2,037,996
|
|
7.8%
|
Total liabilities
|
|
$ 3,883,164
|
|
3,568,821
|
|
8.8%
|
Total equity
|
|
986,513
|
|
752,102
|
|
31.2%
|
Total liabilities and equity
|
|
$ 4,869,677
|
|
4,320,923
|
|
12.7%
|
|
|
|
|
|
|
|
|
|
|
NON IFRS FINANCIAL MEASURE RECONCILIATION
|
|
|
|
Reconciliation of Net Income excluding
Special Items
|
|
|
|
|
|
|
|
in US$ Millions
|
|
3Q-12
|
|
3Q-13
|
|
Var%
|
Net Income as Reported
|
|
$
|
56.2
|
|
|
$
|
35.9
|
|
|
-36.1%
|
Special items (adjustments):
|
|
|
|
|
|
|
(-) Gain on sale of property and equipment
|
|
$
|
4.6
|
|
|
$
|
0.8
|
|
|
|
(-) Derivative Instruments
|
|
$
|
(3.9
|
)
|
|
$
|
(3.3
|
)
|
|
|
(-) Foreign exchange gain (loss)
|
|
$
|
16.1
|
|
|
$
|
(60.6
|
)
|
|
|
Net Income Adjusted
|
|
$
|
39.4
|
|
|
$
|
99.1
|
|
|
151.3%
|
|
|
|
|
|
|
|
Reconciliation of Operating Cost per ASK
excluding special items
|
|
|
|
|
|
|
|
in US$ cents
|
|
3Q-12
|
|
3Q-13
|
|
Var%
|
Total CASK as reported
|
|
|
10.3
|
|
|
|
10.4
|
|
|
1.5%
|
Aircraft Fuel
|
|
|
3.5
|
|
|
|
3.4
|
|
|
|
Total CASK excluding Fuel as reported
|
|
|
6.8
|
|
|
|
7.1
|
|
|
4.3%
|
Gain on sale of property and equipment
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
Total CASK excluding Fuel and special items
|
|
|
6.8
|
|
|
|
7.1
|
|
|
3.7%
|
|
|
|
|
|
|
|
EBITDAR Calculation excluding special
items
|
|
|
|
|
|
|
|
in US$ Millions
|
|
3Q-12
|
|
3Q-13
|
|
Var%
|
Operating Revenues as reported
|
|
|
1,078.4
|
|
|
|
1,182.0
|
|
|
|
Operating Expenses
|
|
|
645.8
|
|
|
|
712.3
|
|
|
|
Aircraft Fuel
|
|
|
332.6
|
|
|
|
337.5
|
|
|
|
Operating Income as reported
|
|
|
100.0
|
|
|
|
132.2
|
|
|
32.2%
|
(-) Gain on sale of property and equipment
|
|
|
4.6
|
|
|
|
0.8
|
|
|
|
Operating Income adjusted
|
|
|
95.4
|
|
|
|
131.4
|
|
|
37.8%
|
|
|
|
|
|
|
|
(+) Depreciation and amortization
|
|
|
34.4
|
|
|
|
41.9
|
|
|
|
EBITDA Adjusted
|
|
|
129.8
|
|
|
|
173.4
|
|
|
33.6%
|
Margin
|
|
|
12.0
|
%
|
|
|
14.7
|
%
|
|
|
|
|
|
|
|
|
|
(+) Aircraft Rentals
|
|
|
58.6
|
|
|
|
63.4
|
|
|
|
EBITDAR Adjusted
|
|
|
188.4
|
|
|
|
236.8
|
|
|
25.7%
|
Margin
|
|
|
17.5
|
%
|
|
|
20.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes with regard to the statement of future expectations
This report contains statements of future expectations.
These may include words such as “expect”, “estimate”, “anticipate”
“forecast”, “plan”, “believe” and similar expressions. These statements
and the statements regarding the Company’s beliefs and expectations do
not represent historical facts and are based on current plans,
projections, estimates, forecasts and therefore you should not place
undue reliance on them. Statements regarding future expectations involve
certain risks and uncertainties. Forward-looking statements involve
inherent known and unknown risks, uncertainties and other factors, many
of which are outside of the Company’s control and difficult to predict.
Avianca Holdings S.A. warns that a significant number of factors may
cause the actual results to be materially different from those contained
in any statement with regard to future expectations. Statements of this
kind refer only to the date on which they are made, and the Company does
not take responsibility for publicly updating any of them due to the
occurrence of future or other events.
About Avianca Holdings S.A. Avianca Holdings S.A. (NYSE:
AVH) (BVC:PFAVH) is an investment firm that serves as an instrument for
the execution of the shareholders agreement which resulted in the
integration process known as AviancaTaca and acts as the controlling
company for the integrated operation of various airlines that operate
both domestically and internationally: Aerovías del Continente Americano
S.A. Avianca (Avianca), Tampa Cargo S.A. incorporated in
Colombia, Aerolíneas Galápagos S.A. Aerogal incorporated in Ecuador, and
the companies that make up the TACA Group: TACA Internacional Airlines
S.A., incorporated in El Salvador; Líneas Aéreas Costarricenses S.A.,
LACSA, incorporated in Costa Rica, Trans American Airlines S.A. TACA
Peru incorporated in Peru, Servicios Aéreos Nacionales S.A., SANSA
incorporated in Costa Rica, Aerotaxis La Costeña S.A., incoporated in
Nicaragua and Isleña de Inversiones C.A. de C.V. ISLEÑA incorporated in
Honduras.
Copyright Business Wire 2013