Slide 1: 2019 Second Quarter Earnings Conference Call
2019 SECOND 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: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS Volume 1,581K Revenue $3,061M Operating Income $1,305M Operating Ratio 57.4% EPS $1.08 Earnings Per Share Operating Ratio 58.6% $1.08 $1.01 57.4% 7% Growth 120 bps Improvement 2018 2019 2018 2019 5 2019 CSX SECOND QUARTER EARNINGS CONFERENCE CALL
Slide 6: Second Quarter Revenue Highlights
SECOND QUARTER REVENUE HIGHLIGHTS Merchandise Growth Was Second Quarter Revenue More than Offset By Intermodal Weakness Down 1% Percent Year over Year Chemicals increased as stronger crude oil and waste shipments were partially offset by reduced fly ash, natural gas liquids and sand volumes Chemic
Slide 7: Second Quarter Safety Highlights
SECOND QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety remains a key guiding principle at CSX 1.06 0.89 0.96 0.76 0.83 Industry-leading personal injury rate, and fewest reportable train accidents in company history 2Q18 3Q18 4Q18 1Q19 2Q19 Inspection technology investments
Slide 8: Second Quarter Operating Highlights
SECOND QUARTER OPERATING HIGHLIGHTS Train Velocity Gallons of Fuel per kGTM (miles per hour) 20.5 1.08 19.0 20.0 17.6 18.0 1.03 1.05 1.03 0.99 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Terminal Car Dwell Trip Plan Compliance (hours) 9.7 Carload Intermodal 9.0 9.3 8.9 9.1 89.8% 79.8% 78.3% 73
Slide 9: Financial Review
FINANCIAL REVIEW Kevin S. Boone VP and Interim Chief Financial Officer
Slide 10: Second Quarter Earnings Summary
SECOND QUARTER EARNINGS SUMMARY Second Quarter Income Statement Dollars in millions 2019 2018 Variance Revenue $ 3,061 $ 3,102 (1%) Expense Labor and Fringe 648 669 3% Materials, Supplies and Other 455 469 3% Depreciation 337 329 (2%) Fuel 234 270 13% Equipment and Other Rents 103 112 8% Equity Earn
Slide 11: Second Quarter Financial Measures
SECOND QUARTER FINANCIAL MEASURES Adjusted Free Cash Flow Shareholder Capital Investments Before Dividends Distributions Dollars in Millions Dollars in Millions Dollars in Millions Dividends Buybacks $1,628 $823 $2,194 $769 $1,329 $2,044 $1,810 $1,656 22% Growth $384 $388 Q2 2018 Q2 2019 Q2 2018 Q2
Slide 12: Closing Remarks
CLOSING REMARKS James M. Foote President and Chief Executive Officer
Slide 13: Looking Forward
LOOKING FORWARD Revising full-year revenue outlook to 1 to 2 percent decline ― Taking cautious forecasting approach given economic uncertainty ― Outlook reflects present activity levels, with upside if conditions improve in the second half ― Includes crude-by-rail headwind from recent customer shu
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 Six Months Ended Dollars in millions June 30, 2019 June 30, 2018 Net Cash Provided by Operating Activities $ 2,267 $ 2,009 Property Additions (769) (823) Other Investing Activities 130 133 Free Cash Flow (before payment of divid
Slide 16: CSX.com/Investors
|, osx ] CSX.COM / INVESTORS