Slide 1: 2018 Third Quarter Earnings Conference Call
2018 THIRD 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: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Volume 1,656K Revenue $3,129M Operating Income $1,293M Operating Ratio 58.7% EPS $1.05 Earnings Per Share Operating Ratio $1.05 68.4% $0.51 58.7% 106% Growth 970 bps Improvement 2017 2018 2017 2018 Certain prior year data has been reclassified to conform to the current prese
Slide 6: Third Quarter Revenue Highlights
THIRD QUARTER REVENUE HIGHLIGHTS Strong Freight Environment Third Quarter Revenue Yielding Volume and Pricing Gains Up Fourteen Percent Year over Year Chemicals increase driven by broad-based growth, partially offset by fly ash and sand shipment declines Chemicals 9% Ag & Food driven by domestic
Slide 7: Third Quarter Safety Highlights
THIRD QUARTER SAFETY HIGHLIGHTS FRA Personal Injury Frequency Index Safety is the #1 priority at CSX 1.48 1.30 1.09 Sequential and year over year improvement 0.99 0.84 in both the personal injury frequency index and train accident rate 3Q17 4Q17 1Q18 2Q18 3Q18 FRA Train Accident Rate Enhancing
Slide 8: Third Quarter Operating Highlights
THIRD QUARTER OPERATING HIGHLIGHTS Train Velocity Cars Online (miles per hour) 142,936 17.3 17.4 17.9 137,167 16.2 131,733 129,685 14.0 123,495 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 Terminal Car Dwell Trip Plan Compliance (hours) (Indexed: 1Q18 = 100) 126 12.1 10.6 10.4 9.7 112 9.0 100 3
Slide 9: Financial Review
FINANCIAL REVIEW Frank A. Lonegro EVP and Chief Financial Officer
Slide 10: Third Quarter Earnings Summary
THIRD QUARTER EARNINGS SUMMARY Third Quarter Income Statement Dollars in millions 2018 2017 Variance Revenue $ 3,129 $ 2,743 14% Expense Labor and Fringe 695 725 4% Materials, Supplies and Other 474 523 9% Depreciation 334 331 (1%) Fuel 268 205 (31%) Equipment and Other Rents 89 109 18% Restructurin
Slide 11: Third Quarter Year to Date Financial Measures
THIRD QUARTER YEAR TO DATE FINANCIAL MEASURES Adjusted Free Cash Flow Shareholder Capital Investments Before Dividends Distributions Dollars in Millions Dollars in Millions Dollars in Millions Dividends Buybacks $1,462 $1,240 $2,426 $3,386 $1,566 $2,293 $2,816 $1,763 15% Reduction 55% Growth 48% Gro
Slide 12: Closing Remarks
CLOSING REMARKS James M. Foote President and Chief Executive Officer
Slide 13: Looking Forward
LOOKING FORWARD Expect 6% to 8% revenue growth in 2018 Continue to reposition Intermodal towards sustainable and profitable growth 2018 ahead of plan, positive momentum since March Investor Conference Will discuss 2019 on Q4 2018 earnings call 13 2018 CSX THIRD QUARTER EARNINGS CONFERENCE CA
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 Nine Months Ended Dollars in millions September 30, 2018 September 30, 2017 Net Cash Provided by Operating Activities $ 3,406 $ 2,861 Property Additions (1,240) (1,462) Other Investing Activities 249 71 Free Cash Flow (before pa
Slide 16: CSX.com / Investors
|, osx ] CSX.COM / INVESTORS