Slide 1: 2022 Second Quarter Earnings Conference Call
2022 SECOND QUARTER EARNINGS CONFERENCE CALL 07.20.2022
Slide 2: Forward Looking Disclosure
FORWARD LOOKING DISCLOSURE This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost
Slide 3: Non-GAAP Measures Disclosure
NON-GAAP MEASURES DISCLOSURE CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulati
Slide 4: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS 1,594K $3,815M $1,703M 55.4% Volume Revenue Op. Income Op. Ratio Second quarter revenue increased Revenue Operating Income Earnings Per Share 28% to $3,815 million Impact of Gain from Virginia Real Estate Transaction $3,815M $0.54 Operating income increased 1% to $1,691M $1
Slide 5: Second Quarter Revenue Highlights
SECOND QUARTER REVENUE HIGHLIGHTS Revenue gains driven by inclusion of Quality Carriers, Q2 Revenue Up 28% Year Over Year higher fuel recovery and pricing gains Chemicals increased as higher revenue from shipments of plastics more Chemicals 10% than offset the effect of lower energy-related shipment
Slide 6: Second Quarter Safety Highlights
SECOND QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is a guiding principle at CSX 1.05 1.07 0.91 0.87 0.79 Second quarter injury performance was roughly flat versus the prior year Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Accident performance declined from last year’s record level FRA Tr
Slide 7: Second Quarter Service Update
SECOND QUARTER SERVICE UPDATE Intermodal Trip Plan Performance Terminal Car Dwell Remain committed to returning service to 11.8 pre-pandemic levels 90% PERCENT ON TIME HOURS PER CAR Focused on providing first mile and last Carload Trip Plan Train Velocity mile service despite operating challenges Pe
Slide 8: Second Quarter T&E Hiring Highlights
SECOND QUARTER T&E HIRING HIGHLIGHTS Employees in Training Conductor Promotions Active T&E Employees Average Daily Employees Total Employees Average Daily Employees 561 303 311 509 6,667 436 6,502 6,441 6,397 6,422 156 223 160 102 82 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q2 21
Slide 9: Second Quarter Earnings Summary
SECOND QUARTER EARNINGS SUMMARY Second Quarter Income Statement Dollars in Millions 2022 2021 Variance x Revenue $ 3,815 $ 2,990 28% Expense 2,112 1,299 (63%) Operating Income $ 1,703 $ 1,691 1% Interest Expense & Other Income – Net (145) (161) 10% Income Tax Expense (380) (357) (6%) Net Earnings $
Slide 10: Expense Up $813M
SECOND QUARTER EXPENSE UP $813M Q2 2022 vs. Q2 2021 Operating Expense In Millions $50 $2,112 $210 $56 $238 $18 $241 $1,299 Q2 2021 Quality Real Estate Pan Am Fuel Inflation Other Costs Q2 2022 Carriers Gains Acquisition Costs Note: Change in fuel expense excludes fuel expense associated with Quality
Slide 11: Free Cash Flow and Distributions
SECOND QUARTER FREE CASH FLOW AND DISTRIBUTIONS Free Cash Flow Shareholder Before Dividends* Distributions In Millions In Millions Proceeds from Property Dispositions Buybacks Dividends $1,714 $1,871 $215 $1,748 $1,272 $1,234 $208 $218 $913 $776 $212 $1,499 $206 $1,064 $1,016 $701 $570 Q2 21 Q2 22 Q
Slide 12: Looking Forward
LOOKING FORWARD Still targeting full-year double digit revenue and operating income growth, excluding impacts from the Virginia real estate transaction Continue to increase transportation headcount to restore service and capture increasing rail volume Maintaining full year capital expenditure target
Slide 13: Appendix
APPENDIX Non-GAAP Free Cash Flow Reconciliation
Slide 14: Non-GAAP Free Cash Flow Reconciliation
NON-GAAP FREE CASH FLOW RECONCILIATION Free Cash Flow Six Months Ended Dollars in millions Jun 30, 2022 Jun 30, 2021 Net Cash Provided by Operating Activities $ 2,530 $ 2,399 Property Additions (811) (754) Proceeds and Advances from Property Dispositions 29 227 Other Investing Activities(a) n/a (1)
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