Slide 1: 2019 Fourth Quarter Earnings Conference Call
2019 FOURTH 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: Fourth Quarter and Full Year Highlights
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS Q4 2019: Volume 1,539K Revenue $2,885M Operating Income $1,154M FY 2019: Volume 6,220K Revenue $11,937M Operating Income $4,965M Fourth Quarter 2019 Full Year 2019 Earnings Per Share Operating Ratio Earnings Per Share Operating Ratio $4.17 60.3% 60.3% $1.01 $0
Slide 6: Fourth Quarter Revenue Highlights
FOURTH QUARTER REVENUE HIGHLIGHTS Fourth Quarter Revenue Revenue Declines Led by Export Coal Down 8% Percent Year over Year Chemicals declined due to lower natural gas liquids, fly ash and sand shipments Chemicals (4%) Agricultural & Food Products growth driven by gains in ethanol, Ag & Food Pro
Slide 7: Fourth Quarter Safety Highlights
FOURTH QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is a guiding principle at CSX 1.10 1.03 0.98 0.76 0.83 0.85 0.88 Full year personal injury rate declined 15% 4Q18 1Q19 2Q19 3Q19 4Q19 FY18 FY19 Full year train accident rate reduced by 41%, and Q4 results represent new
Slide 8: Fourth Quarter Operating Highlights
FOURTH QUARTER OPERATING HIGHLIGHTS Train Velocity Car Miles per Day (miles per hour) 138 21.3 133 134 20.5 20.3 130 131 20.0 19.0 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Terminal Car Dwell Gallons of Fuel per kGTM (hours) 1.08 9.2 8.9 8.6 8.7 8.4 1.05 0.99 0.98 0.99 4Q18 1Q19 2Q19 3Q19 4Q
Slide 9: Fourth Quarter Service Highlights
FOURTH QUARTER SERVICE HIGHLIGHTS Carload Trip Plan Performance* Intermodal Trip Plan Performance* Carload Intermodal 82.6% 94.2% 95.5% 75.7% 89.8% 73.9% 74.4% 78.3% 67.3% 73.4% 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 *Trip Plan Performance measures success in meeting end-to-end customer c
Slide 10: Financial Review
FINANCIAL REVIEW Kevin S. Boone EVP and Chief Financial Officer
Slide 11: Fourth Quarter Earnings Summary
FOURTH QUARTER EARNINGS SUMMARY Fourth Quarter Income Statement Dollars in millions 2019 2018 Variance Revenue $ 2,885 $ 3,143 (8%) Expense Labor and Fringe 658 678 3% Materials, Supplies and Other 436 542 20% Depreciation 344 345 - Fuel 216 253 15% Equipment and Other Rents 101 93 (9%) Equity Earni
Slide 12: 2019 Full Year Financial Measures
2019 FULL YEAR FINANCIAL MEASURES Adjusted Free Cash Flow Shareholder Capital Investments Before Dividends Distributions Dollars in Millions Dollars in Millions Dollars in Millions Dividends Buybacks $1,745 $3,478 $5,422 $1,657 $3,199 $4,136 $4,671 $3,373 9% Growth $751 $763 2018 2019 2018 2019 2018
Slide 13: Closing Remarks
CLOSING REMARKS James M. Foote President and Chief Executive Officer
Slide 14: 2020 Full Year Outlook
2020 FULL YEAR OUTLOOK Project revenue to be flat to down 2% versus 2019 Full year Operating Ratio target of 59% Capital Expenditures to remain between $1.6 billion and $1.7 billion Continue to return capital to shareholders Committed to strong investment grade rating 14 2019 CSX FOURTH QU
Slide 15: Appendix
APPENDIX Non-GAAP Adjusted Free Cash Flow Reconciliation
Slide 16: Non-GAAP Adjusted Free Cash Flow Reconciliation
NON-GAAP ADJUSTED FREE CASH FLOW RECONCILIATION Adjusted Free Cash Flow Years Ended Dollars in millions December 31, 2019 December 31, 2018 Net Cash Provided by Operating Activities $ 4,850 $ 4,641 Property Additions (1,657) (1,745) Other Investing Activities 285 292 Free Cash Flow (before payment o
Slide 17: CSX.com/Investors
|, osx ] CSX.COM / INVESTORS