CSX : Financial Report PDF 690 KB

CSX Announces Second Quarter EPS of $0.52, Including $0.12 Benefit from Sale of Property Rights to

the Commonwealth of Virginia

JACKSONVILLE, Fla. - July 21, 2021 - CSX Corp. (NASDAQ: CSX) today announced second quarter 2021 net earnings of $1,173 million, or $0.52 per share, compared to $499 million, or $0.22 per share in the same period last year. Second quarter 2021 operating ratio was 43.4% compared to 63.3% in the prior year period.

These results include benefits from the sale of certain property rights in CSX-owned line segments to the Commonwealth of Virginia for passenger rail operations. The transaction favorably impacted operating income by $349 million, operating ratio by 11.7 percentage points, and earnings per share by $0.12.

"I want to thank all the CSX railroaders for their dedicated and unwavering focus on our customers as the economy has rebounded," said James M. Foote, president and chief executive officer. "We are committed to providing customers a high quality service product, and will continue taking all necessary steps to meet their needs."

Revenue for the second quarter increased 33 percent from the prior year to $2.99 billion, driven by growth across all lines of business. Expenses decreased 9 percent year over year to $1.30 billion and operating income improved to $1.69 billion for the quarter.

CSX executives will conduct a conference call with the investment community this afternoon, July 21, at 4:30 p.m. Eastern Time. Investors, media and the public may listen to the conference call by dialing 1-833-968-2260. For callers outside the U.S., dial 1-778-560-2704. Participants should dial in 10 minutes prior to the call and enter in 6543939 as the passcode.

In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company's website at http://investors.csx.com. Following the earnings call, a webcast replay of the presentation will be archived on the company website.

This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company's website at http://investors.csx.com and on Form 8- K with the Securities and Exchange Commission.

Table of Contents				The accompanying unaudited	CSX CORPORATION	CONTACTS:
				financial information should be	500 Water Street, C900	INVESTOR RELATIONS
Consolidated Financial Statements	.......p.3	read in conjunction with the	Jacksonville, FL 32202	Bill Slater
Operating Statistics..............................	p. 10	Company's most recent	www.csx.com	[phone]
Non-GAAP Measures...........................	p. 11	Annual Report on Form 10-K,		MEDIA
				Quarterly Reports on Form 10-Q, and		Bryan Tucker
				any Current Reports on Form 8-K.		[phone]

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About CSX and its Disclosures

CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 200 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links more than 230 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.

This announcement, as well as additional financial information, is available on the company's website at http:// investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on Twitter (http://twitter.com/CSX) and on Facebook (http://www.facebook.com/OfficialCSX). The social media channels used by CSX may be updated from time to time. More information about CSX Corporation and its subsidiaries is available at www.csx.com.

Non-GAAP 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 Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX's non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP.

Forward-looking Statements

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-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as "will," "should," "believe," "expect," "anticipate," "project," "estimate," "preliminary" and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others; (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; and (vii) the inherent uncertainty associated with projecting economic and business conditions.

Other important assumptions and factors that could cause actual results to differ materially from those in the forward- looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.

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CSX Corporation

CONSOLIDATED INCOME STATEMENTS (Unaudited)

(Dollars in millions, except per share amounts)

Quarters Ended

Jun. 30, Jun. 30, $ %

2021 2020 Change Change

Six Months Ended

Jun. 30, Jun. 30, $ %

2021 2020 Change Change

Revenue	$	2,990	$	2,255	$	735	33 %	$	5,803	$	5,110	$	693	14 %
Expense
Labor and Fringe		596		507		(89)	(18)		1,216		1,113		(103)	(9)
Materials, Supplies and Other		441		418		(23)	(6)		913		890		(23)	(3)
Depreciation		348		344		(4)	(1)		693		688		(5)	(1)
Fuel		194		91		(103)	(113)		384		283		(101)	(36)
Equipment and Other Rents		87		78		(9)	(12)		175		159		(16)	(10)
Gains on Property Dispositions(a)		(367)		(11)		356	NM		(370)		(29)		341	NM
Total Expense		1,299		1,427		128	9		3,011		3,104		93	3
Operating Income		1,691		828		863	104		2,792		2,006		786	39
Interest Expense		(181)		(191)		10	5		(365)		(378)		13	3
Other Income - Net		20		15		5	33		40		37		3	8
Earnings Before Income Taxes		1,530		652		878	135		2,467		1,665		802	48
Income Tax Expense (b)		(357)		(153)		(204)	(133)		(588)		(396)		(192)	(48)
Net Earnings	$	1,173	$	499	$	674	135 %	$	1,879	$	1,269	$	610	48 %
Operating Ratio		43.4 %		63.3 %					51.9 %		60.7 %
Per Common Share
Net Earnings Per Share, Assuming	$	0.52	$	0.22	$	0.30	136 %	$	0.82	$	0.55	$	0.27	49 %
Dilution (c)
Average Shares Outstanding, Assuming		2,275		2,301					2,281		2,311
Dilution (Millions) (c)

NM - not meaningful

All prior period share and per share data has been retroactively adjusted to reflect the stock split effective June 28, 2021.

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CSX Corporation

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions)

			(Unaudited)
			Jun. 30, 2021		Dec. 31, 2020
	ASSETS
Cash and Cash Equivalents	$	2,986	$	3,129
Short-Term Investments			4		2
Other Current Assets			1,583		1,310
Properties - Net			32,486		32,444
Investment in Affiliates and Other Companies			2,033		1,985
Other Long-Term Assets			923		923
Total Assets		$	40,015	$	39,793
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Maturities of Long-Term Debt	$	122	$	401
Other Current Liabilities			1,829		1,618
Long-Term Debt			16,229		16,304
Deferred Income Taxes - Net			7,248		7,168
Other Long-Term Liabilities			1,153		1,192
Total Liabilities			26,581		26,683
Total Shareholders' Equity			13,434		13,110
Total Liabilities and Shareholders' Equity	$	40,015	$	39,793

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