Slide 1: 2020 First Quarter Earnings Conference Call
2020 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 1,514K Revenue $2,855M Operating Income $1,178M Operating Ratio 58.7% EPS $1.00 Earnings Per Share Operating Ratio $1.02 $1.00 59.5% 58.7% 2% Decline 80 bps Improvement 2019 2020 2019 2020 5 2020 CSX FIRST QUARTER EARNINGS CONFERENCE CALL
Slide 6: First Quarter Revenue Highlights
FIRST QUARTER REVENUE HIGHLIGHTS Revenue Growth in Merchandise More Than First Quarter Revenue Offset by Coal and Other Revenue Declines Down 5% Percent Year over Year Chemicals increased due to higher shipments of industrial chemicals, energy, and plastics Chemicals 6% Agricultural & Food Produ
Slide 7: First Quarter Safety Highlights
FIRST QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is a guiding principle at CSX 1.13 0.83 0.85 0.76 0.59 Q1 was one of the safest quarters in CSX history 1Q19 2Q19 3Q19 4Q19 1Q20 22% improvement in FRA Personal Injury Frequency Rate FRA Train Accident Rate 2.80 2.13 2.
Slide 8: First Quarter Operating Highlights
FIRST QUARTER OPERATING HIGHLIGHTS Train Velocity Car Miles per Day (miles per hour) 138 139 21.3 21.2 20.4 20.0 20.3 134 133 131 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Terminal Car Dwell Gallons of Fuel per kGTM (hours) 1.08 8.6 8.7 8.9 8.4 8.3 1.01 0.99 0.98 0.99 1Q19 2Q19 3Q19 4Q19 1Q2
Slide 9: First Quarter Service Highlights
FIRST QUARTER SERVICE HIGHLIGHTS Carload Trip Plan Performance* Intermodal Trip Plan Performance* Carload Intermodal 98.4% 84.4% 95.5% 96.2% 94.2% 82.6% 89.8% 80.7% 78.3% 75.7% 73.9% 74.4% 1Q19 2Q19 3Q19 4Q19 1Q20 April 1Q19 2Q19 3Q19 4Q19 1Q20 April *Trip Plan Performance measures success in meetin
Slide 10: Financial Review
FINANCIAL REVIEW Kevin S. Boone EVP and Chief Financial Officer
Slide 11: First Quarter Earnings Summary
FIRST QUARTER EARNINGS SUMMARY First Quarter Income Statement Dollars in millions 2020 2019 Variance Revenue $ 2,855 $ 3,013 (5%) Expense Labor and Fringe 606 672 10% Materials, Supplies and Other 454 471 4% Depreciation 344 330 (4%) Fuel 192 233 18% Equipment and Other Rents 81 88 8% Total Expense
Slide 12: First Quarter Financial Measures
FIRST QUARTER FINANCIAL MEASURES Free Cash Flow Shareholder Capital Investments Before Dividends* Distributions Dollars in Millions Dollars in Millions Dollars in Millions Dividends Buybacks $866 $812 $381 $991 $353 $778 $796 $577 $195 $201 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 *See Append
Slide 13: Closing Remarks
CLOSING REMARKS James M. Foote President and Chief Executive Officer
Slide 14: Looking Forward
LOOKING FORWARD Withdrawing guidance given economic uncertainty Managing expenses to current volume environment Evaluating capital expenditure outlook Industry-leading free cash flow profile and strong balance sheet provide significant liquidity cushion 14 2020 CSX FIRST QUARTER EARNINGS CON
Slide 15: Appendix
APPENDIX Non-GAAP Free Cash Flow Reconciliation
Slide 16: Non-GAAP Free Cash Flow Reconciliation
NON-GAAP FREE CASH FLOW RECONCILIATION Free Cash Flow Three Months Ended Dollars in millions March 31, 2020 March 31, 2019 Net Cash Provided by Operating Activities $ 1,178 $ 1,173 Property Additions (381) (353) Other Investing Activities 15 46 Free Cash Flow Before Dividends (non-GAAP) $ 812 $ 866
Slide 17: investors.csx.com
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