Slide 1: CSX Corporation 2017 Second Quarter Earnings Conference Call
CSX CORPORATION 2017 SECOND QUARTER EARNINGS CONFERENCE CALL Progressing Forward
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 E. Hunter Harrison President and Chief Executive Officer
Slide 5: Second quarter highlights
Second quarter highlights Volume 1,620K Revenue $2,933M Operating Income $958M Operating Ratio 67.4% EPS $0.55 Operating Ratio Earnings Per Share $0.64 68.9% 67.4% $0.55 $0.47 63.2% 570 bps Improvement 36% Growth 2016 2017 2017 Adjusted 2016 2017 2017 Adjusted Progressing Forward: Broad support fr
Slide 6: Financial Review
FINANCIAL REVIEW Frank A. Lonegro EVP and Chief Financial Officer
Slide 7: Second quarter operating highlights
Second quarter operating highlights Safety Efficiency and Service Personal Injury Train Length Terminal Car Dwell (per 200K man hours) (feet) (hours) 1.14 6,571 25.0 6,551 24.4 0.96 19% higher Stable 2% better Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Train Accidents Fuel Efficiency Train Velo
Slide 8: Second quarter earnings summary
Second quarter earnings summary Second Quarter Income Statement Dollars in millions 2017 2016 Variance Revenue $ 2,933 $ 2,704 8% Expense Labor and Fringe 743 749 1% Materials, Supplies and Other 490 519 6% Fuel 198 172 (15%) Depreciation 327 319 (3%) Equipment and Other Rents 95 105 10% Restructuri
Slide 9: Key second quarter financial measures
Key second quarter financial measures Year-to-date Free Cash Flow Before Dividends Dollars in millions 2017 2016 Variance Cash Provided by Operating Activities $ 1,566 $ 1,592 ($26) Property Additions (955) (1,066) 111 Other Investing Activities 41 35 6 Free Cash Flow Before Dividends $ 652 $ 561 $
Slide 10: Third quarter volume outlook is favorable
Third quarter volume outlook is favorable Favorable Outlook (66%) Key indicators support growth in most markets Export Coal Metals & Equipment ― U.S. export coal demand remains strong Intermodal Minerals ― Consumer sentiment at high levels Agriculture & Food ― Infrastructure project grow
Slide 11: Financial outlook
Financial outlook . . . Reaffirm 2017 adjusted expectations (excludes restructuring charges) ― Operating ratio to be in the mid-60s, supported by record efficiency gains ― Earnings per share growth to be around 25% off 2016 reported base of $1.81 ― Free Cash Flow before dividends to be around $1.5
Slide 12: Appendices
APPENDICES Non-GAAP Reconciliations Calculations of Other Key Financial Measures
Slide 13: Non-GAAP Income Statement reconciliation
Non-GAAP Income Statement reconciliation Second Quarter Income Statement Dollars in millions GAAP Adjustments Non-GAAP Revenue $ 2,933 $ - $ 2,933 Expense Labor and Fringe 743 - 743 Materials, Supplies and Other 490 - 490 Fuel 198 - 198 Depreciation 327 - 327 Equipment and Other Rents 95 - 95 Restru
Slide 14: Calculations of other key financial measures
Calculations of other key financial measures Return on Invested Capital Debt-to-EBITDA Last twelve month basis through second quarter Last twelve month basis through second quarter Dollars in millions 2017 2016 Dollars in millions 2017 2016 Operating Income $ 3,515 $ 3,268 Net Earnings $ 1,785 $ 1,7
Slide 15: CSX Corporation 2017 Second Quarter Earnings Conference Call
CSX CORPORATION 2017 SECOND QUARTER EARNINGS CONFERENCE CALL Progressing Forward