Slide 1: 2019 First Quarter Earnings Conference Call
2019 FIRST QUARTER EARNINGS CONFERENCE CALL James M. Foote President and Chief Executive Officer
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: Executive Summary
EXECUTIVE SUMMARY James M. Foote President and Chief Executive Officer
Slide 5: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS Volume 1,531K Revenue $3,013M Operating Income $1,219M Operating Ratio 59.5% EPS $1.02 Earnings Per Share Operating Ratio 63.7% $1.02 59.5% $0.78 31% Growth 420 bps Improvement 2018 2019 2018 2019 5 2019 CSX FIRST QUARTER EARNINGS CONFERENCE CALL
Slide 6: First Quarter Revenue Highlights
FIRST QUARTER REVENUE HIGHLIGHTS Strong Pricing and Favorable Mix First Quarter Revenue Drove Revenue Gains Up 5% Percent Year over Year Chemicals increase driven by broad-based growth, partially offset by LPG, fly ash and sand shipment declines Chemicals 5% Automotive driven by strength in truc
Slide 7: First Quarter Safety Highlights
FIRST QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety remains a key guiding principle at CSX 1.16 1.02 0.94 0.89 0.79 Sequential and year over year improvement in both personal injury frequency index and train accident rate 1Q18 2Q18 3Q18 4Q18 1Q19 FRA Train Accident Rate
Slide 8: First Quarter Operating Highlights
FIRST QUARTER OPERATING HIGHLIGHTS Train Velocity Cars Online (miles per hour) 20.4 131,733 17.9 19.0 129,685 17.5 17.5 123,495 122,873 118,852 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 Terminal Car Dwell GTMs per Available Horsepower* (hours) 126.6 123.8 10.4 118.7 9.7 9.3 115.9 118.2 9.0 8
Slide 9: Financial Review
FINANCIAL REVIEW Frank A. Lonegro EVP and Chief Financial Officer
Slide 10: First Quarter Earnings Summary
FIRST QUARTER EARNINGS SUMMARY First Quarter Income Statement Dollars in millions 2019 2018 Variance Revenue $ 3,013 $ 2,876 5% Expense Labor and Fringe 672 696 3% Materials, Supplies and Other 478 482 1% Depreciation 330 323 (2%) Fuel 233 255 9% Equipment and Other Rents 100 101 1% Equity Earnings
Slide 11: First Quarter Financial Measures
FIRST QUARTER FINANCIAL MEASURES Adjusted Free Cash Flow Shareholder Capital Investments Before Dividends Distributions Dollars in Millions Dollars in Millions Dollars in Millions Dividends Buybacks $866 $1,030 $991 $368 $353 $651 $836 $796 33% Growth $194 $195 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 201
Slide 12: Closing Remarks
CLOSING REMARKS James M. Foote President and Chief Executive Officer
Slide 13: Looking Forward
LOOKING FORWARD Reiterate full-year outlook for low single-digit revenue growth No change to below-60% operating ratio expectation Capital expenditures still expected to be between $1.6 billion and $1.7 billion Remain focused on continued service improvements and driving additional efficienc
Slide 14: Appendix
APPENDIX Non-GAAP Adjusted Free Cash Flow Reconciliation
Slide 15: Non-GAAP Adjusted Free Cash Flow Reconciliation
NON-GAAP ADJUSTED FREE CASH FLOW RECONCILIATION Adjusted Free Cash Flow Three Months Ended Dollars in millions March 31, 2019 March 31, 2018 Net Cash Provided by Operating Activities $ 1,173 $ 966 Property Additions (353) (368) Other Investing Activities 46 44 Free Cash Flow (before payment of divid
Slide 16: CSX.com / Investors
|, osx ] CSX.COM / INVESTORS