Slide 1: 2022 Third Quarter Earnings Conference Call
2022 THIRD QUARTER EARNINGS CONFERENCE CALL 10.20.2022
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: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS 1,587K $3,895M $1,579M 59.5% Volume Revenue Op. Income Op. Ratio Third quarter revenue increased Revenue Operating Income Earnings Per Share 18% to $3,895 million $3,895M $0.52 Operating income increased 10% $1,579M to $1,579 million $0.43 $1,436M Earnings per share increase
Slide 5: Third Quarter Revenue Highlights
THIRD QUARTER REVENUE HIGHLIGHTS Revenue increased across all markets due to higher fuel Q3 Revenue Up 18% Year Over Year recovery, core pricing, and volume growth Chemicals increased as higher revenue from core pricing and fuel Chemicals 9% recovery more than offset a decline in volume Agricultural
Slide 6: Third Quarter Safety Highlights
THIRD QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is a guiding principle at CSX 1.05 0.99 0.91 0.89 0.82 Instilling safety culture in newly hired employees is foundational to success Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Engaging with all employees across the network to learn from p
Slide 7: Third Quarter Service Update
THIRD QUARTER SERVICE UPDATE Train Velocity Train Dwell 2022 Performance by Week 2022 Performance by Week 17.7 12.5 17.3 11.8 15.8 14.9 10.5 10.1 Q3 21 Q3 22 Q3 Q4 Q3 21 Q3 22 Q3 Q4 Intermodal Trip Plan Performance Carload Trip Plan Performance 2022 Performance by Week 2022 Performance by Week 73% 9
Slide 8: Third Quarter T&E Hiring Highlights
THIRD QUARTER T&E HIRING HIGHLIGHTS Employees in Training Conductor Promotions Active T&E Employees Average Daily Employees Total Employees Average Daily Employees 561 565 303 311 6,759 509 6,667 436 254 6,441 6,397 6,422 156 223 102 Current In Current Active Training: 730 T&E: 6,819 Q3 21 Q4 21 Q1
Slide 9: Third Quarter Earnings Summary
THIRD QUARTER EARNINGS SUMMARY Third Quarter Income Statement Dollars in Millions 2022 2021 Variance x Revenue $ 3,895 $ 3,292 18% Expense 2,316 1,856 (25%) Operating Income $ 1,579 $ 1,436 10% Interest Expense & Other Income – Net (156) (157) 0% Income Tax Expense (312) (311) 0% Net Earnings $ 1,11
Slide 10: Expense Up $460M
THIRD QUARTER EXPENSE UP $460M Q3 2022 vs. Q3 2021 Operating Expense In Millions $66 $2,316 $82 $42 $46 $33 $191 $1,856 Q3 2021 Fuel Inflation Out-of-Period Quality Real Estate Volume & Q3 2022 Union Carriers & Pan Other Costs Agreements Am 2022 THIRD QUARTER EARNINGS CONFERENCE CALL 10
Slide 11: Free Cash Flow and Distributions
FREE CASH FLOW AND DISTRIBUTIONS Free Cash Flow Shareholder Before Dividends* Distributions In Millions In Millions Proceeds from Property Dispositions Buybacks Dividends $2,896 $2,869 $1,714 $215 $2,818 $1,407 $1,234 $212 $2,599 $218 $776 $1,499 $206 $1,195 $1,016 $570 Q3 21 Q3 22 Q4 21 Q1 22 Q2 22
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 Remain committed to returning capital to shareholders Focused on building a ONE CSX
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 Nine Months Ended Dollars in millions Sep 30, 2022 Sep 30, 2021 Net Cash Provided by Operating Activities $ 4,255 $ 3,819 Property Additions (1,437) (1,220) Proceeds and Advances from Property Dispositions 51 297 Other Investing Activities(a) n/a
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