SIGNATURES |
CANADIAN PACIFIC RAILWAY LIMITED CANADIAN PACIFIC RAILWAY COMPANY (Registrants) |
||||||
Date: October 24, 2006 | Signed: Donald F. Barnhardt | |||||
By: | Name: | Donald F. Barnhardt | ||||
Title: | Corporate Secretary |
Ø | Income was $168 million, up 24 per cent. | ||
Ø | Diluted earnings per share was $1.06, an increase of 26 per cent from $0.84. | ||
Ø | Operating ratio improved 320 basis points to 74.2 per cent. | ||
Ø | Operating expenses were virtually flat at $854 million despite increases in fuel costs. |
Ø | Income was $446 million, an increase of $87 million over 2005. | ||
Ø | Diluted earnings per share increased 25 per cent to $2.79. | ||
Ø | Operating ratio improved 210 basis points to 76.2 per cent. | ||
Ø | Total freight revenues were up 4 per cent, despite ongoing market softness in coal, driven by a 21 per cent increase in grain and a 15 per cent increase in industrial and consumer products. | ||
Ø | Operating expenses, excluding the impact of higher fuel prices, decreased 2 per cent in 2006 over 2005. |
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Contacts: |
||
Media
|
Investment Community | |
Leslie Pidcock
|
Janet Weiss, Assistant Vice-President Investor Relations | |
Tel.: (403) 319-6878
|
Tel.: (403) 319-3591 | |
e-mail: leslie_pidcock@cpr.ca
|
e-mail: investor@cpr.ca |
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For the three months | ||||||||
ended September 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Revenues |
||||||||
Freight |
$ | 1,122.2 | $ | 1,079.1 | ||||
Other |
29.1 | 25.6 | ||||||
1,151.3 | 1,104.7 | |||||||
Operating expenses |
||||||||
Compensation and benefits |
334.6 | 344.9 | ||||||
Fuel |
161.3 | 141.9 | ||||||
Materials |
47.1 | 45.4 | ||||||
Equipment rents |
44.4 | 53.8 | ||||||
Depreciation and amortization |
115.6 | 111.3 | ||||||
Purchased services and other |
151.4 | 158.0 | ||||||
854.4 | 855.3 | |||||||
Operating income before the following: |
296.9 | 249.4 | ||||||
Special credit for environmental remediation (Note 4) |
| (33.9 | ) | |||||
Operating income |
296.9 | 283.3 | ||||||
Other charges (Note 5) |
6.9 | 6.6 | ||||||
Foreign exchange losses (gains) on long-term debt |
1.5 | (65.4 | ) | |||||
Interest expense (Note 6) |
48.8 | 50.3 | ||||||
Income tax expense(Note 7) |
78.0 | 88.2 | ||||||
Net income |
$ | 161.7 | $ | 203.6 | ||||
Basic earnings per share (Note 8) |
$ | 1.03 | $ | 1.29 | ||||
Diluted earnings per share (Note 8) |
$ | 1.02 | $ | 1.27 | ||||
4
For the nine months | ||||||||
ended September 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Revenues |
||||||||
Freight |
$ | 3,275.8 | $ | 3,141.9 | ||||
Other |
117.0 | 82.8 | ||||||
3,392.8 | 3,224.7 | |||||||
Operating expenses |
||||||||
Compensation and benefits |
1,006.0 | 998.2 | ||||||
Fuel |
479.3 | 421.6 | ||||||
Materials |
159.2 | 150.2 | ||||||
Equipment rents |
133.4 | 157.0 | ||||||
Depreciation and amortization |
348.2 | 331.5 | ||||||
Purchased services and other |
458.8 | 467.0 | ||||||
2,584.9 | 2,525.5 | |||||||
Operating income before the following: |
807.9 | 699.2 | ||||||
Special credit for environmental remediation (Note 4) |
| (33.9 | ) | |||||
Operating income |
807.9 | 733.1 | ||||||
Other charges (Note 5) |
21.4 | 11.3 | ||||||
Foreign exchange gains on long-term debt |
(44.8 | ) | (45.3 | ) | ||||
Interest expense (Note 6) |
144.7 | 155.1 | ||||||
Income tax expense (Note 7) |
36.4 | 204.5 | ||||||
Net income |
$ | 650.2 | $ | 407.5 | ||||
Basic earnings per share (Note 8) |
$ | 4.12 | $ | 2.57 | ||||
Diluted earnings per share (Note 8) |
$ | 4.07 | $ | 2.54 | ||||
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September 30 | December 31 | |||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 46.4 | $ | 121.8 | ||||
Accounts receivable and other current assets |
554.9 | 524.0 | ||||||
Materials and supplies |
184.6 | 140.1 | ||||||
Future income taxes |
115.0 | 108.0 | ||||||
900.9 | 893.9 | |||||||
Investments |
65.5 | 67.3 | ||||||
Net properties |
8,963.7 | 8,790.9 | ||||||
Other assets and deferred charges (Note 9) |
1,179.7 | 1,139.0 | ||||||
Total assets |
$ | 11,109.8 | $ | 10,891.1 | ||||
Liabilities and shareholders equity |
||||||||
Current liabilities |
||||||||
Accounts payable and accrued liabilities |
$ | 955.6 | $ | 1,032.8 | ||||
Income and other taxes payable |
29.5 | 30.2 | ||||||
Dividends payable |
29.3 | 23.7 | ||||||
Long-term debt maturing within one year |
184.9 | 30.0 | ||||||
1,199.3 | 1,116.7 | |||||||
Deferred liabilities |
720.4 | 743.5 | ||||||
Long-term debt |
2,728.0 | 2,970.8 | ||||||
Future income taxes |
1,686.2 | 1,674.4 | ||||||
Shareholders equity |
||||||||
Share capital (Note 10) |
1,166.6 | 1,141.5 | ||||||
Contributed surplus (Note 10) |
49.0 | 241.6 | ||||||
Foreign currency translation adjustments |
63.8 | 67.5 | ||||||
Retained income |
3,496.5 | 2,935.1 | ||||||
4,775.9 | 4,385.7 | |||||||
Total liabilities and shareholders equity |
$ | 11,109.8 | $ | 10,891.1 | ||||
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For the three months | ||||||||
ended September 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Operating activities |
||||||||
Net income |
$ | 161.7 | $ | 203.6 | ||||
Add (deduct) items not affecting cash: |
||||||||
Depreciation and amortization |
115.6 | 111.3 | ||||||
Future income taxes |
72.6 | 86.7 | ||||||
Special credit for environmental remediation |
| (30.9 | ) | |||||
Foreign exchange losses (gains) on long-term debt |
1.5 | (65.4 | ) | |||||
Amortization of deferred charges |
4.5 | 5.2 | ||||||
Restructuring payments (Note 11) |
(18.6 | ) | (16.3 | ) | ||||
Other operating activities, net |
(30.2 | ) | (19.6 | ) | ||||
Change in non-cash working capital balances related to operations |
(28.8 | ) | (0.7 | ) | ||||
Cash provided by operating activities |
278.3 | 273.9 | ||||||
Investing activities |
||||||||
Additions to properties |
(220.2 | ) | (232.1 | ) | ||||
Increase in investments and other assets (Note 9) |
63.9 | 0.5 | ||||||
Net proceeds from disposal of transportation properties |
(2.8 | ) | 4.3 | |||||
Cash used in investing activities |
(159.1 | ) | (227.3 | ) | ||||
Financing activities |
||||||||
Dividends paid |
(29.5 | ) | (23.8 | ) | ||||
Issuance of CPR common shares |
3.1 | 2.0 | ||||||
Purchase of CPR common shares |
(83.3 | ) | (65.7 | ) | ||||
Repayment of long-term debt |
(7.4 | ) | (4.2 | ) | ||||
Cash used in financing activities |
(117.1 | ) | (91.7 | ) | ||||
Cash position |
||||||||
Increase (decrease) in cash and cash equivalents |
2.1 | (45.1 | ) | |||||
Net cash and cash equivalents at beginning of period |
44.3 | 131.7 | ||||||
Net cash and cash equivalents at end of period |
$ | 46.4 | $ | 86.6 | ||||
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For the nine months | ||||||||
ended September 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Operating activities |
||||||||
Net income |
$ | 650.2 | $ | 407.5 | ||||
Add (deduct) items not affecting cash: |
||||||||
Depreciation and amortization |
348.2 | 331.5 | ||||||
Future income taxes |
2.2 | 195.6 | ||||||
Special credit for environmental remediation |
| (30.9 | ) | |||||
Foreign exchange gains on long-term debt |
(44.8 | ) | (45.3 | ) | ||||
Amortization of deferred charges |
13.1 | 15.2 | ||||||
Restructuring payments (Note 11) |
(69.2 | ) | (42.6 | ) | ||||
Other operating activities, net |
(29.4 | ) | (40.7 | ) | ||||
Change in non-cash working capital balances related to operations |
(135.3 | ) | (78.9 | ) | ||||
Cash provided by operating activities |
735.0 | 711.4 | ||||||
Investing activities |
||||||||
Additions to properties |
(589.2 | ) | (584.8 | ) | ||||
(Decrease) increase in investments and other assets (Note 9) |
(21.1 | ) | 1.9 | |||||
Net proceeds from disposal of transportation properties |
79.1 | 9.8 | ||||||
Cash used in investing activities |
(531.2 | ) | (573.1 | ) | ||||
Financing activities |
||||||||
Dividends paid |
(83.0 | ) | (65.8 | ) | ||||
Issuance of CPR common shares |
52.3 | 7.7 | ||||||
Purchase of CPR common shares |
(226.9 | ) | (78.3 | ) | ||||
Repayment of long-term debt |
(21.6 | ) | (268.3 | ) | ||||
Cash used in financing activities |
(279.2 | ) | (404.7 | ) | ||||
Cash position |
||||||||
Decrease in net cash and cash equivalents |
(75.4 | ) | (266.4 | ) | ||||
Net cash and cash equivalents at beginning of period |
121.8 | 353.0 | ||||||
Net cash and cash equivalents at end of period |
$ | 46.4 | $ | 86.6 | ||||
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For the nine months | ||||||||
ended September 30 | ||||||||
2006 | 2005 | |||||||
(unaudited) | ||||||||
Balance, January 1 |
$ | 2,935.1 | $ | 2,484.4 | ||||
Net income for the period |
650.2 | 407.5 | ||||||
Dividends |
(88.8 | ) | (68.6 | ) | ||||
Balance, September 30 |
$ | 3,496.5 | $ | 2,823.3 | ||||
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1 | Basis of presentation | |
These unaudited interim consolidated financial statements and notes have been prepared using accounting policies that are consistent with the policies used in preparing Canadian Pacific Railway Limiteds (CPR, the Company or Canadian Pacific Railway) 2005 annual consolidated financial statements. They do not include all disclosures required under Generally Accepted Accounting Principles for annual financial statements and should be read in conjunction with the annual consolidated financial statements. | ||
Quarterly seasonality is not considered to be significant. Earnings in the first quarter are slightly lower due to winter operating conditions and fourth quarter earnings are slightly higher due to movement of the fall harvest. | ||
2 | New accounting policy | |
Effective January 1, 2006, the Company adopted the CICA Accounting Standard Section 3831 Non-Monetary Transactions. This standard is applied prospectively to non-monetary transactions occurring on or after that date. The standard requires that assets or liabilities exchanged or transferred in a non-monetary transaction that has commercial substance be valued at fair value with any gain or loss recorded in income. Commercial substance exists when, as a result of the transaction, there is a significant change to future cash flows of the item transferred or the company as a whole. Transactions that lack commercial substance or for which the fair value of the exchanged assets cannot be reliably measured will continue to be accounted for at carrying value. There was no impact to CPR on adoption of this new standard as it is applied prospectively. | ||
3 | Future accounting changes | |
Financial Instruments, Hedging and Other Comprehensive Income | ||
The CICA issued the following accounting standards effective for fiscal years beginning on or after October 1, 2006: Accounting Standard Section 3855 Financial Instruments, Recognition and Measurement, Accounting Standard Section 3861 Financial Instruments, Presentation and Disclosure, Accounting Standard Section 3865 Hedging and Accounting Standard Section 1530 Comprehensive income. These sections require certain financial instruments and hedge positions to be recorded at their fair value. They also introduce the concept of comprehensive income and accumulated other comprehensive income. | ||
Financial instruments designated as held-for-trading and available-for-sale, as well as guarantees, will be carried at their fair value while financial instruments such as loans and receivables and those classified as held-to-maturity will be carried at their amortized cost. All derivatives will be carried on the Consolidated Balance Sheet at their fair value, including derivatives designated as hedges. The effective portion of unrealized gains and losses on cash flow and net investment hedges and the cumulative foreign currency translation adjustments arising from investments in foreign operations will be carried in Accumulated Other Comprehensive Income, a component of Shareholders Equity (on the Consolidated Balance Sheet), with any ineffective portions of gains and losses on hedges taken into income immediately. Adoption of these standards will be effective from January 1, 2007 on a prospective basis without retroactive restatement of prior periods. The impact of adoption cannot be reasonably estimated as the fair value of the Companys financial instruments including derivatives designated as hedges will not be readily available until the end of the year. However, it is not expected to have a material impact on net income. |
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3 | Future accounting changes (continued) | |
Stock-Based Compensation for Employees Eligible to Retire Before the Vesting Date | ||
The Emerging Issues Committee of the CICA issued Emerging Issues Committee Abstract (EIC 162) Stock-Based Compensation for Employees Eligible to Retire Before the Vesting Date in July 2006. This pronouncement will be effective for the Company commencing January 1, 2007 and will be applied retroactively with restatement. The compensation cost attributable to stock-based awards should be recognized over the period from the grant date to the date the employee becomes eligible to retire when this is shorter than the vesting period. It is not anticipated that the adoption of EIC 162 will have a material impact on the Company. | ||
4 | Special credit for environmental remediation | |
During the three months ended September 30, 2005, a settlement was reached with a responsible party in relation to portions of past environmental contamination at a CPR-owned property in the U.S. As a result, CPR was able to reduce accrued liabilities related to the property, and recognized a total reduction of $33.9 million to a special charge for environmental remediation recorded in 2004. | ||
5 | Other charges |
For the three months | For the nine months | |||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||
(in millions) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Amortization of discount on
accruals recorded at
present value |
$ | 2.9 | $ | 4.0 | $ | 8.1 | $ | 12.4 | ||||||||
Other exchange losses (gains) |
1.0 | | 4.5 | (3.3 | ) | |||||||||||
Loss on sale of accounts
receivable |
1.4 | 0.8 | 3.7 | 2.6 | ||||||||||||
(Gains) losses on non-hedging
derivative instruments |
(0.3 | ) | 0.1 | (0.4 | ) | (6.5 | ) | |||||||||
Other |
1.9 | 1.7 | 5.5 | 6.1 | ||||||||||||
Total other charges |
$ | 6.9 | $ | 6.6 | $ | 21.4 | $ | 11.3 | ||||||||
6 | Interest expense |
For the three months | For the nine months | |||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||
(in millions) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Interest expense |
$ | 50.0 | $ | 51.2 | $ | 149.1 | $ | 161.6 | ||||||||
Interest income |
(1.2 | ) | (0.9 | ) | (4.4 | ) | (6.5 | ) | ||||||||
Total interest expense |
$ | 48.8 | $ | 50.3 | $ | 144.7 | $ | 155.1 | ||||||||
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7 | Income tax expense | |
In the three months ended June 30, 2006, federal and provincial legislation was introduced to reduce corporate income tax rates over a period of several years. As a result of these changes, the Company recorded a $176.0 million benefit in future tax liability and income tax expense in the three months ended June 30, 2006. | ||
Cash taxes paid for the three months ended September 30, 2006 was $21.1 million (three months ended September 30, 2005 $0.8 million) and for the nine months ended September 30, 2006 was $26.6 million (nine months ended September 30, 2005 $6.7 million). | ||
8 | Earnings per share | |
At September 30, 2006, the number of shares outstanding was 155.9 million (September 30, 2005 157.3 million). | ||
Basic earnings per share have been calculated using net income for the period divided by the weighted average number of CPR shares outstanding during the period. | ||
Diluted earnings per share have been calculated using the treasury stock method, which gives effect to the dilutive value of outstanding options. | ||
The number of shares used in earnings per share calculations is reconciled as follows: |
For the three months | For the nine months | |||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||
(in millions) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Weighted average shares outstanding |
156.7 | 158.1 | 157.8 | 158.6 | ||||||||||||
Dilutive effect of stock options |
1.6 | 1.9 | 1.8 | 1.7 | ||||||||||||
Weighted average diluted
shares outstanding |
158.3 | 160.0 | 159.6 | 160.3 | ||||||||||||
(in dollars) |
||||||||||||||||
Basic earnings per share |
$ | 1.03 | $ | 1.29 | $ | 4.12 | $ | 2.57 | ||||||||
Diluted earnings per share |
$ | 1.02 | $ | 1.27 | $ | 4.07 | $ | 2.54 | ||||||||
For the three months ended September 30, 2006, 893,667 options (three months ended September 30, 2005 no options) were excluded from the computation of diluted earnings per share because their effects were not dilutive. For the nine months ended September 30, 2006, 501,717 options (nine months ended September 30, 2005 no options) were excluded from the computation of diluted earnings per share because their effects were not dilutive. | ||
9 | Other assets and deferred charges | |
Other assets and deferred charges on the Consolidated Balance Sheet includes assets purchased in anticipation of sale and leaseback arrangements with various financial institutions. For the three months ended September 30, 2006, $46.0 million in assets were acquired and $109.4 million were sold; and for the nine months ended September 30, 2006, $132.5 million in assets were acquired and $109.4 million sold. No gains or losses were incurred in these sale and leaseback arrangements. These investing activities are reflected in the Statement of Consolidated Cash Flows as part of (Decrease) increase in investments and other assets. |
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10 | Shareholders equity | |
An analysis of Common Share balances is as follows: |
For the three months ended September 30 | ||||||||||||||||
2006 | 2005 | |||||||||||||||
(in millions) | Number | Amount | Number | Amount | ||||||||||||
Share capital, July 1 |
157.2 | $ | 1,174.0 | 158.6 | $ | 1,123.6 | ||||||||||
Shares issued under stock
option plans |
0.1 | 3.2 | 0.1 | 2.1 | ||||||||||||
Shares repurchased |
(1.4 | ) | (10.6 | ) | (1.4 | ) | (9.4 | ) | ||||||||
Share capital, September 30 |
155.9 | $ | 1,166.6 | 157.3 | $ | 1,116.3 | ||||||||||
For the nine months ended September 30 | ||||||||||||||||
2006 | 2005 | |||||||||||||||
(in millions) | Number | Amount | Number | Amount | ||||||||||||
Share capital, January 1 |
158.2 | $ | 1,141.5 | 158.8 | $ | 1,120.6 | ||||||||||
Shares issued under stock
option plans |
1.8 | 55.9 | 0.3 | 8.2 | ||||||||||||
Shares repurchased |
(4.1 | ) | (30.8 | ) | (1.8 | ) | (12.5 | ) | ||||||||
Share capital, September 30 |
155.9 | $ | 1,166.6 | 157.3 | $ | 1,116.3 | ||||||||||
13
10 | Shareholders equity (continued) | |
An analysis of contributed surplus balances is as follows: |
For the three months | ||||||||
ended September 30 | ||||||||
(in millions) | 2006 | 2005 | ||||||
Contributed surplus, July 1 |
$ | 110.5 | $ | 288.9 | ||||
Stock compensation expense related to shares
issued under stock option plans |
4.3 | 2.2 | ||||||
Shares repurchased |
(65.8 | ) | (52.3 | ) | ||||
Contributed surplus, September 30 |
$ | 49.0 | $ | 238.8 | ||||
For the nine months | ||||||||
ended September 30 | ||||||||
(in millions) | 2006 | 2005 | ||||||
Contributed surplus, January 1 |
$ | 241.6 | $ | 300.4 | ||||
Stock compensation expense related to shares
issued under stock option plans |
8.6 | 6.5 | ||||||
Shares repurchased |
(201.2 | ) | (68.1 | ) | ||||
Contributed surplus, September 30 |
$ | 49.0 | $ | 238.8 | ||||
In June 2006, the Company completed the acquisition of Common Shares under the previous normal course issuer bid and filed a new normal course issuer bid to purchase, for cancellation, of up to 3.9 million of its outstanding Common Shares. Under the new filing, share purchases may be made during the 12-month period that began June 6, 2006, and ends June 5, 2007. The purchases are made at the market price on the day of purchase, with consideration allocated to share capital up to the average carrying amount of the shares, and any excess allocated to contributed surplus. When shares are repurchased, it takes three days before the transaction is settled and the shares are cancelled. The cost of shares purchased in a given month and settled in the following month is accrued in the month of purchase. During the three months ended September 30, 2006, 1.4 million shares were repurchased at an average price of $53.85 (three months ended September 30, 2005 1.4 million shares were repurchased at an average price of $46.49) and for the nine months ended September 30, 2006, 4.1 million shares were repurchased at an average price of $55.93 (nine months ended September 30, 2005 1.8 million shares were repurchased at an average price of $45.77) . |
14
11 | Restructuring and environmental remediation | |
At September 30, 2006, the provision for restructuring and environmental remediation was $331.6 million (December 31, 2005 $398.8 million). This provision primarily includes labour liabilities for restructuring plans. Payments are expected to continue in diminishing amounts until 2025. The environmental remediation liability includes the cost of a multi-year soil remediation program. | ||
Set out below is a reconciliation of CPRs liabilities associated with restructuring and environmental remediation programs: |
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
July 1 | Amortization | Exchange | September 30 | |||||||||||||||||||||
(in millions) | 2006 | Accrued | Payments | of Discount | Impact | 2006 | ||||||||||||||||||
Three
months ended September 30, 2006 |
||||||||||||||||||||||||
Labour liability
for terminations
and severances |
$ | 215.8 | 0.2 | (14.2 | ) | 2.8 | | $ | 204.6 | |||||||||||||||
Other non-labour
liabilities for
exit plans |
1.8 | 0.2 | (0.1 | ) | 0.1 | | 2.0 | |||||||||||||||||
Total restructuring
liability |
217.6 | 0.4 | (14.3 | ) | 2.9 | | 206.6 | |||||||||||||||||
Environmental
remediation program |
128.2 | 1.0 | (4.3 | ) | | 0.1 | 125.0 | |||||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 345.8 | 1.4 | (18.6 | ) | 2.9 | 0.1 | $ | 331.6 | |||||||||||||||
Three
months ended September 30, 2005 |
||||||||||||||||||||||||
Labour liability
for terminations
and severances |
$ | 252.0 | 0.2 | (11.6 | ) | 3.3 | (2.4 | ) | $ | 241.5 | ||||||||||||||
Other non-labour
liabilities for
exit plans |
6.1 | | | | (0.3 | ) | 5.8 | |||||||||||||||||
Total restructuring
liability |
258.1 | 0.2 | (11.6 | ) | 3.3 | (2.7 | ) | 247.3 | ||||||||||||||||
Environmental
remediation program |
171.8 | (30.1 | ) | (4.7 | ) | | (4.9 | ) | 132.1 | |||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 429.9 | (29.9 | ) | (16.3 | ) | 3.3 | (7.6 | ) | $ | 379.4 | |||||||||||||
15
11 | Restructuring and environmental remediation (continued) |
Opening | Closing | |||||||||||||||||||||||
Balance | Foreign | Balance | ||||||||||||||||||||||
Jan. 1 | Amortization | Exchange | September 30 | |||||||||||||||||||||
(in millions) | 2006 | Accrued | Payments | of Discount | Impact | 2006 | ||||||||||||||||||
Nine
months ended September 30, 2006 |
||||||||||||||||||||||||
Labour liability
for terminations
and severances |
$ | 263.6 | (9.5 | ) | (55.9 | ) | 8.0 | (1.6 | ) | $ | 204.6 | |||||||||||||
Other non-labour
liabilities for
exit plans |
5.8 | 0.7 | (4.4 | ) | 0.1 | (0.2 | ) | 2.0 | ||||||||||||||||
Total restructuring
liability |
269.4 | (8.8 | ) | (60.3 | ) | 8.1 | (1.8 | ) | 206.6 | |||||||||||||||
Environmental
remediation program |
129.4 | 7.4 | (8.9 | ) | | (2.9 | ) | 125.0 | ||||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 398.8 | (1.4 | ) | (69.2 | ) | 8.1 | (4.7 | ) | $ | 331.6 | |||||||||||||
Nine
months ended September 30, 2005 |
||||||||||||||||||||||||
Labour liability
for terminations
and severances |
$ | 269.7 | (1.8 | ) | (34.5 | ) | 9.6 | (1.5 | ) | $ | 241.5 | |||||||||||||
Other non-labour
liabilities for
exit plans |
6.1 | (0.1 | ) | (0.1 | ) | 0.1 | (0.2 | ) | 5.8 | |||||||||||||||
Total restructuring
liability |
275.8 | (1.9 | ) | (34.6 | ) | 9.7 | (1.7 | ) | 247.3 | |||||||||||||||
Environmental
remediation program |
172.9 | (30.1 | ) | (8.0 | ) | | (2.7 | ) | 132.1 | |||||||||||||||
Total restructuring
and environmental
remediation
liability |
$ | 448.7 | (32.0 | ) | (42.6 | ) | 9.7 | (4.4 | ) | $ | 379.4 | |||||||||||||
Amortization of Discount is charged to income in Other Charges, Compensation and Benefits and Purchased Services and Other. New accruals and adjustments to previous accruals are reflected in Compensation and Benefits and Purchased Services and Other. |
16
12 | Stock-based compensation | |
In 2006, under CPRs stock option plans, the Company issued 1,446,300 options to purchase Common Shares at the weighted average price of $57.72 per share, based on the closing price on the day prior to the grant date. In tandem with these options, 499,050 stock appreciation rights were issued at the weighted average exercise price of $57.72. Also, all 30,000 unvested Restricted Share Units, issued in 2005, were cancelled. | ||
Pursuant to the employee plan, options may be exercised upon vesting, which for most is between 24 months and 36 months after the grant date, and will expire after 10 years. Some options vest after 48 months, unless certain performance targets are achieved, in which case vesting is accelerated. These options expire five years after the grant date. | ||
The following is a summary of the Companys fixed stock option plans as of September 30: |
2006 | 2005 | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Number of | average | Number of | average | |||||||||||||
options | exercise price | options | exercise price | |||||||||||||
Outstanding, January 1 |
7,971,917 | $ | 32.07 | 7,752,080 | $ | 29.32 | ||||||||||
New options granted |
1,446,300 | 57.72 | 1,548,400 | 42.05 | ||||||||||||
Exercised |
(1,842,317 | ) | 28.37 | (285,148 | ) | 27.00 | ||||||||||
Forfeited/cancelled |
(280,795 | ) | 39.82 | (144,186 | ) | 29.21 | ||||||||||
Outstanding, September 30 |
7,295,105 | $ | 37.79 | 8,871,146 | $ | 31.62 | ||||||||||
Options exercisable at
September 30 |
3,419,305 | $ | 29.59 | 2,033,516 | $ | 27.25 | ||||||||||
Compensation expense is recognized over the vesting period for stock options issued since January 1, 2003, based on their estimated fair values on the date of grants, as determined by the Black-Scholes option pricing model. Had CPR used the fair value method for options granted between January 1, 2002, and December 31, 2002, CPRs pro forma basis net income and earnings per share would have been as follows: |
For the three months | For the nine months | |||||||||||||||||||
ended September 30 | ended September 30 | |||||||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||||||
Net income (in millions) |
As reported | $ | 161.7 | $ | 203.6 | $ | 650.2 | $ | 407.5 | |||||||||||
Pro forma | $ | 161.7 | $ | 203.4 | $ | 650.0 | $ | 406.9 | ||||||||||||
(in dollars) |
||||||||||||||||||||
Basic earnings per share |
As reported | $ | 1.03 | $ | 1.29 | $ | 4.12 | $ | 2.57 | |||||||||||
Pro forma | $ | 1.03 | $ | 1.29 | $ | 4.12 | $ | 2.57 | ||||||||||||
Diluted earnings per share |
As reported | $ | 1.02 | $ | 1.27 | $ | 4.07 | $ | 2.54 | |||||||||||
Pro forma | $ | 1.02 | $ | 1.27 | $ | 4.07 | $ | 2.54 | ||||||||||||
17
12 | Stock-based compensation (continued) | |
Under the fair value method, the fair value of options at the grant date was $12.3 million for options issued during the nine months ended September 30, 2006 (nine months ended September 30, 2005 $10.0 million). The weighted average fair value assumptions were approximately: |
For the nine months | ||||||||
ended September 30 | ||||||||
2006 | 2005 | |||||||
Expected option life (years) |
4.50 | 4.50 | ||||||
Risk-free interest rate |
4.07 | % | 3.49 | % | ||||
Expected stock price volatility |
21 | % | 24 | % | ||||
Expected annual dividends per share |
$ | 0.75 | $ | 0.53 | ||||
Weighted average fair value of
options granted during the year |
$ | 12.98 | $ | 9.65 | ||||
Total Return Swap | ||
The Company entered into a Total Return Swap (TRS), effective in May 2006, in order to reduce the volatility and total cost to the Company over time of two stock based compensation programs, share appreciation rights (SAR) and deferred share units (DSU). The value of the TRS derivative is linked to the market value of our stock and is intended to mitigate the impact on expenses of share value movements on SARs and DSUs. Compensation and Benefits expense increased by $3.7 million and $12 million in the first three months and first nine months of 2006, respectively, due to unrealized losses for these swaps. These losses substantially offset benefits recognized in the SAR and DSU stock based compensation programs due to fluctuations in share price during the period the TRS was in place. | ||
13 | Pensions and other benefits | |
The total current charges for pension and other benefits for the Companys defined benefit pension plans, defined contribution pension plans and post-retirement benefits for the three months ended September 30, 2006, was $29.9 million (three months ended September 30, 2005 $21.0 million) and for the nine months ended September 30, 2006, was $91.1 million (nine months ended September 30, 2005 $62.4 million). | ||
14 | Significant customers | |
During the nine months ended September 30, 2006, one customer comprised 11.7% of total revenue (nine months ended September 30, 2005 14.8%). At September 30, 2006, one customer represented 5.3% of total accounts receivable (September 30, 2005 7.6%). |
18
15 | Commitments and contingencies | |
In the normal course of its operations, the Company becomes involved in various legal actions, including claims relating to injuries and damages to property. The Company maintains provisions it considers to be adequate for such actions. While the final outcome with respect to actions outstanding or pending at September 30, 2006, cannot be predicted with certainty, it is the opinion of management that their resolution will not have a material adverse effect on the Companys financial position or results of operations. | ||
Capital commitments | ||
At September 30, 2006, CPR had multi-year capital commitments of $577.9 million, mainly for locomotive overhaul agreements, in the form of signed contracts. Payments for these commitments are due in 2006 through 2016. | ||
Operating lease commitments | ||
At September 30, 2006, minimum payments under operating leases were estimated at $634.5 million in aggregate, with annual payments in each of the next five years of: remainder of 2006 $38.0 million; 2007 $122.7 million; 2008 $93.2 million; 2009 $67.3 million; 2010 $52.9 million. | ||
Guarantees | ||
The Company had residual value guarantees on operating lease commitments of $257.2 million at September 30, 2006. The maximum amount that could be payable under these and all of the Companys other guarantees cannot be reasonably estimated due to the nature of certain of the guarantees. All or a portion of amounts paid under certain guarantees could be recoverable from other parties or through insurance. The Company has accrued for all guarantees that it expects to pay. At September 30, 2006, these accruals amounted to $12.2 million. | ||
16 | Reclassification | |
Certain prior period figures have been reclassified to conform with the presentation adopted for the third quarter of 2006. |
19
Third Quarter | Year-to-date | |||||||||||||||||||||||||||||||
2006 | 2005(1) | Variance | % | 2006 | 2005(1) | Variance | % | |||||||||||||||||||||||||
Financial (millions, except per share data) |
||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||
$ | 1,122.2 | $ | 1,079.1 | $ | 43.1 | 4.0 | Freight revenue
|
$ | 3,275.8 | $ | 3,141.9 | $ | 133.9 | 4.3 | ||||||||||||||||||
29.1 | 25.6 | 3.5 | 13.7 | Other revenue
|
117.0 | 82.8 | 34.2 | 41.3 | ||||||||||||||||||||||||
1,151.3 | 1,104.7 | 46.6 | 4.2 | 3,392.8 | 3,224.7 | 168.1 | 5.2 | |||||||||||||||||||||||||
Operating Expenses, before other specified items |
||||||||||||||||||||||||||||||||
334.6 | 344.9 | (10.3 | ) | (3.0 | ) | Compensation and benefits
|
1,006.0 | 998.2 | 7.8 | 0.8 | ||||||||||||||||||||||
161.3 | 141.9 | 19.4 | 13.7 | Fuel
|
479.3 | 421.6 | 57.7 | 13.7 | ||||||||||||||||||||||||
47.1 | 45.4 | 1.7 | 3.7 | Materials
|
159.2 | 150.2 | 9.0 | 6.0 | ||||||||||||||||||||||||
44.4 | 53.8 | (9.4 | ) | (17.5 | ) | Equipment rents
|
133.4 | 157.0 | (23.6 | ) | (15.0 | ) | ||||||||||||||||||||
115.6 | 111.3 | 4.3 | 3.9 | Depreciation and amortization
|
348.2 | 331.5 | 16.7 | 5.0 | ||||||||||||||||||||||||
151.4 | 158.0 | (6.6 | ) | (4.2 | ) | Purchased services and other
|
458.8 | 467.0 | (8.2 | ) | (1.8 | ) | ||||||||||||||||||||
854.4 | 855.3 | (0.9 | ) | (0.1 | ) | 2,584.9 | 2,525.5 | 59.4 | 2.4 | |||||||||||||||||||||||
296.9 | 249.4 | 47.5 | 19.0 | Operating income, before other specified items
|
807.9 | 699.2 | 108.7 | 15.5 | ||||||||||||||||||||||||
6.9 | 6.6 | 0.3 | 4.5 | Other charges
|
21.4 | 11.3 | 10.1 | 89.4 | ||||||||||||||||||||||||
48.8 | 50.3 | (1.5 | ) | (3.0 | ) | Interest expense
|
144.7 | 155.1 | (10.4 | ) | (6.7 | ) | ||||||||||||||||||||
73.6 | 57.6 | 16.0 | 27.8 | Income tax expense before foreign exchange (gains) losses
on long-term debt and other specified
items
(2)
|
195.8 | 173.3 | 22.5 | 13.0 | ||||||||||||||||||||||||
167.6 | 134.9 | 32.7 | 24.2 | Income before foreign exchange (gains) losses on long-term
debt and other specified items (2)
|
446.0 | 359.5 | 86.5 | 24.1 | ||||||||||||||||||||||||
Foreign exchange (gains) losses on long-term debt (FX on LTD) |
||||||||||||||||||||||||||||||||
1.5 | (65.4 | ) | 66.9 | | FX on LTD
|
(44.8 | ) | (45.3 | ) | 0.5 | | |||||||||||||||||||||
4.4 | 17.3 | (12.9 | ) | | Income tax on FX on LTD (3)
|
16.6 | 17.9 | (1.3 | ) | | ||||||||||||||||||||||
5.9 | (48.1 | ) | 54.0 | | FX on LTD (net of tax)
|
(28.2 | ) | (27.4 | ) | (0.8 | ) | | ||||||||||||||||||||
Other specified items |
||||||||||||||||||||||||||||||||
| (33.9 | ) | 33.9 | | Special credit for environmental remediation
|
| (33.9 | ) | 33.9 | | ||||||||||||||||||||||
| 13.3 | (13.3 | ) | | Tax impact
|
| 13.3 | (13.3 | ) | | ||||||||||||||||||||||
| (20.6 | ) | 20.6 | | Special credit for environmental remediation (net of tax)
|
| (20.6 | ) | 20.6 | | ||||||||||||||||||||||
| | | | Income tax benefits due to
Federal and Provincial income tax rate reductions
|
(176.0 | ) | | (176.0 | ) | | ||||||||||||||||||||||
$ | 161.7 | $ | 203.6 | $ | (41.9 | ) | (20.6 | ) | Net income
|
$ | 650.2 | $ | 407.5 | $ | 242.7 | 59.6 | ||||||||||||||||
Earnings per share (EPS) |
||||||||||||||||||||||||||||||||
$ | 1.03 | $ | 1.29 | $ | (0.26 | ) | (20.2 | ) | Basic earnings per share
|
$ | 4.12 | $ | 2.57 | $ | 1.55 | 60.3 | ||||||||||||||||
$ | 1.02 | $ | 1.27 | $ | (0.25 | ) | (19.7 | ) | Diluted earnings per share
|
$ | 4.07 | $ | 2.54 | $ | 1.53 | 60.2 | ||||||||||||||||
EPS before FX on LTD and other specified items (2) |
||||||||||||||||||||||||||||||||
$ | 1.07 | $ | 0.85 | $ | 0.22 | 25.9 | Basic earnings per share
|
$ | 2.83 | $ | 2.27 | $ | 0.56 | 24.7 | ||||||||||||||||||
$ | 1.06 | $ | 0.84 | $ | 0.22 | 26.2 | Diluted earnings per share
|
$ | 2.79 | $ | 2.24 | $ | 0.55 | 24.6 | ||||||||||||||||||
156.7 | 158.1 | (1.4 | ) | (0.9 | ) | Weighted average number of shares outstanding (millions)
|
157.8 | 158.6 | (0.8 | ) | (0.5 | ) | ||||||||||||||||||||
74.2 | 77.4 | (3.2 | ) | | Operating ratio(2) (4) (%)
|
76.2 | 78.3 | (2.1 | ) | | ||||||||||||||||||||||
10.1 | 8.7 | 1.4 | | ROCE before FX on LTD and other specified items (after tax)(2) (4)(%)
|
10.1 | 8.7 | 1.4 | | ||||||||||||||||||||||||
37.5 | 40.7 | (3.2 | ) | | Net debt to net debt plus equity (%)
|
37.5 | 40.7 | (3.2 | ) | | ||||||||||||||||||||||
$ | 290.0 | $ | 242.8 | $ | 47.2 | 19.4 | EBIT before FX on LTD and other specified items (2) (4) (millions)
|
$ | 786.5 | $ | 687.9 | $ | 98.6 | 14.3 | ||||||||||||||||||
$ | 405.6 | $ | 354.1 | $ | 51.5 | 14.5 | EBITDA before FX on LTD and other specified items (2) (4) (millions)
|
$ | 1,134.7 | $ | 1,019.4 | $ | 115.3 | 11.3 |
(1) | Certain comparative period figures have been reclassified to current presentation. |
|
(2) | These are earnings measures that are not in accordance with GAAP and may not be comparable to similar measures of other companies. | |
See note on non-GAAP earnings measures attached to commentary. | ||
(3) | Income tax on FX on LTD is discussed in the current MD&A in the Other Income Statement Items section Income Taxes. |
(4)
|
EBIT: | Earnings before interest and taxes. | ||
EBITDA: | Earnings before interest, taxes, and depreciation and amortization. | |||
ROCE (after tax): | Return on capital employed (after tax) = earnings before interest (last 12 months) divided by average net debt plus equity. | |||
Operating ratio: | Operating expenses, before other specified items divided by revenues. |
20
Third Quarter | Year-to-date | |||||||||||||||||||||||||||||||
2006 | 2005(1) | Variance | % | 2006 | 2005(1) | Variance | % | |||||||||||||||||||||||||
Commodity Data |
||||||||||||||||||||||||||||||||
Freight Revenues (millions) |
||||||||||||||||||||||||||||||||
$ | 225.3 | $ | 190.8 | $ | 34.5 | 18.1 | - Grain |
$ | 643.0 | $ | 529.9 | $ | 113.1 | 21.3 | ||||||||||||||||||
139.0 | 185.9 | (46.9 | ) | (25.2 | ) | - Coal |
442.7 | 550.2 | (107.5 | ) | (19.5 | ) | ||||||||||||||||||||
118.7 | 108.3 | 10.4 | 9.6 | - Sulphur and fertilizers |
317.3 | 344.5 | (27.2 | ) | (7.9 | ) | ||||||||||||||||||||||
86.0 | 85.9 | 0.1 | 0.1 | - Forest products |
245.2 | 253.1 | (7.9 | ) | (3.1 | ) | ||||||||||||||||||||||
156.7 | 138.4 | 18.3 | 13.2 | - Industrial and consumer products |
455.3 | 396.5 | 58.8 | 14.8 | ||||||||||||||||||||||||
69.3 | 67.6 | 1.7 | 2.5 | - Automotive |
239.5 | 219.2 | 20.3 | 9.3 | ||||||||||||||||||||||||
327.2 | 302.2 | 25.0 | 8.3 | - Intermodal |
932.8 | 848.5 | 84.3 | 9.9 | ||||||||||||||||||||||||
$ | 1,122.2 | $ | 1,079.1 | $ | 43.1 | 4.0 | Total Freight Revenues |
$ | 3,275.8 | $ | 3,141.9 | $ | 133.9 | 4.3 | ||||||||||||||||||
Millions of Revenue Ton-Miles (RTM) |
||||||||||||||||||||||||||||||||
7,142 | 6,357 | 785 | 12.3 | - Grain |
21,664 | 18,654 | 3,010 | 16.1 | ||||||||||||||||||||||||
4,875 | 6,238 | (1,363 | ) | (21.8 | ) | - Coal |
14,664 | 18,176 | (3,512 | ) | (19.3 | ) | ||||||||||||||||||||
5,023 | 4,601 | 422 | 9.2 | - Sulphur and fertilizers |
12,336 | 15,480 | (3,144 | ) | (20.3 | ) | ||||||||||||||||||||||
2,213 | 2,420 | (207 | ) | (8.6 | ) | - Forest products |
6,911 | 7,606 | (695 | ) | (9.1 | ) | ||||||||||||||||||||
4,311 | 3,940 | 371 | 9.4 | - Industrial and consumer products |
12,814 | 11,687 | 1,127 | 9.6 | ||||||||||||||||||||||||
529 | 531 | (2 | ) | (0.4 | ) | - Automotive |
1,878 | 1,759 | 119 | 6.8 | ||||||||||||||||||||||
6,770 | 6,738 | 32 | 0.5 | - Intermodal |
20,552 | 19,965 | 587 | 2.9 | ||||||||||||||||||||||||
30,863 | 30,825 | 38 | 0.1 | Total RTMs |
90,819 | 93,327 | (2,508 | ) | (2.7 | ) | ||||||||||||||||||||||
Freight Revenue per RTM (cents) |
||||||||||||||||||||||||||||||||
3.15 | 3.00 | 0.15 | 5.0 | - Grain |
2.97 | 2.84 | 0.13 | 4.6 | ||||||||||||||||||||||||
2.85 | 2.98 | (0.13 | ) | (4.4 | ) | - Coal |
3.02 | 3.03 | (0.01 | ) | (0.3 | ) | ||||||||||||||||||||
2.36 | 2.35 | 0.01 | 0.4 | - Sulphur and fertilizers |
2.57 | 2.23 | 0.34 | 15.2 | ||||||||||||||||||||||||
3.89 | 3.55 | 0.34 | 9.6 | - Forest products |
3.55 | 3.33 | 0.22 | 6.6 | ||||||||||||||||||||||||
3.63 | 3.51 | 0.12 | 3.4 | - Industrial and consumer products |
3.55 | 3.39 | 0.16 | 4.7 | ||||||||||||||||||||||||
13.10 | 12.73 | 0.37 | 2.9 | - Automotive |
12.75 | 12.46 | 0.29 | 2.3 | ||||||||||||||||||||||||
4.83 | 4.49 | 0.34 | 7.6 | - Intermodal |
4.54 | 4.25 | 0.29 | 6.8 | ||||||||||||||||||||||||
3.64 | 3.50 | 0.14 | 4.0 | Freight Revenue per RTM |
3.61 | 3.37 | 0.24 | 7.1 | ||||||||||||||||||||||||
Carloads (thousands) |
||||||||||||||||||||||||||||||||
96.2 | 86.4 | 9.8 | 11.3 | - Grain |
277.8 | 241.9 | 35.9 | 14.8 | ||||||||||||||||||||||||
65.9 | 91.0 | (25.1 | ) | (27.6 | ) | - Coal |
213.1 | 267.9 | (54.8 | ) | (20.5 | ) | ||||||||||||||||||||
49.0 | 46.2 | 2.8 | 6.1 | - Sulphur and fertilizers |
129.6 | 155.7 | (26.1 | ) | (16.8 | ) | ||||||||||||||||||||||
32.9 | 37.8 | (4.9 | ) | (13.0 | ) | - Forest products |
104.3 | 117.5 | (13.2 | ) | (11.2 | ) | ||||||||||||||||||||
78.3 | 78.6 | (0.3 | ) | (0.4 | ) | - Industrial and consumer products |
238.9 | 240.1 | (1.2 | ) | (0.5 | ) | ||||||||||||||||||||
36.4 | 37.7 | (1.3 | ) | (3.4 | ) | - Automotive |
125.5 | 124.3 | 1.2 | 1.0 | ||||||||||||||||||||||
288.8 | 292.9 | (4.1 | ) | (1.4 | ) | - Intermodal |
866.1 | 845.2 | 20.9 | 2.5 | ||||||||||||||||||||||
647.5 | 670.6 | (23.1 | ) | (3.4 | ) | Total Carloads |
1,955.3 | 1,992.6 | (37.3 | ) | (1.9 | ) | ||||||||||||||||||||
Freight Revenue per Carload |
||||||||||||||||||||||||||||||||
$ | 2,342 | $ | 2,208 | $ | 134 | 6.1 | - Grain |
$ | 2,315 | $ | 2,191 | $ | 124 | 5.7 | ||||||||||||||||||
2,109 | 2,043 | 66 | 3.2 | - Coal |
2,077 | 2,054 | 23 | 1.1 | ||||||||||||||||||||||||
2,422 | 2,344 | 78 | 3.3 | - Sulphur and fertilizers |
2,448 | 2,213 | 235 | 10.6 | ||||||||||||||||||||||||
2,614 | 2,272 | 342 | 15.1 | - Forest products |
2,351 | 2,154 | 197 | 9.1 | ||||||||||||||||||||||||
2,001 | 1,761 | 240 | 13.6 | - Industrial and consumer products |
1,906 | 1,651 | 255 | 15.4 | ||||||||||||||||||||||||
1,904 | 1,793 | 111 | 6.2 | - Automotive |
1,908 | 1,763 | 145 | 8.2 | ||||||||||||||||||||||||
1,133 | 1,032 | 101 | 9.8 | - Intermodal |
1,077 | 1,004 | 73 | 7.3 | ||||||||||||||||||||||||
$ | 1,733 | $ | 1,609 | $ | 124 | 7.7 | Freight Revenue per Carload |
$ | 1,675 | $ | 1,577 | $ | 98 | 6.2 |
(1) | Certain comparative period figures have been reclassified to current presentation. |
21
Third Quarter | Year-to-date | |||||||||||||||||||||||||||||||
2006 | 2005(1) | Variance | % | 2006 | 2005(1) | Variance | % | |||||||||||||||||||||||||
Operations and Productivity |
||||||||||||||||||||||||||||||||
59,102 | 59,511 | (409 | ) | (0.7 | ) | Freight gross ton-miles (GTM) (millions) |
174,215 | 180,331 | (6,116 | ) | (3.4 | ) | ||||||||||||||||||||
30,863 | 30,825 | 38 | 0.1 | Revenue ton-miles (RTM) (millions) |
90,819 | 93,327 | (2,508 | ) | (2.7 | ) | ||||||||||||||||||||||
16,420 | 16,959 | (539 | ) | (3.2 | ) | Average number of active employees |
15,988 | 16,369 | (381 | ) | (2.3 | ) | ||||||||||||||||||||
16,315 | 16,880 | (565 | ) | (3.3 | ) | Number of employees at end of period |
16,315 | 16,880 | (565 | ) | (3.3 | ) | ||||||||||||||||||||
2.0 | 2.5 | (0.5 | ) | (20.0 | ) | FRA personal injuries per 200,000 employee-hours |
1.9 | 2.4 | (0.5 | ) | (20.8 | ) | ||||||||||||||||||||
0.7 | 2.6 | (1.9 | ) | (73.1 | ) | FRA train accidents per million train-miles |
1.3 | 2.3 | (1.0 | ) | (43.5 | ) | ||||||||||||||||||||
2.77 | 2.77 | | | Total operating expenses per RTM (cents) |
2.85 | 2.71 | 0.14 | 5.2 | ||||||||||||||||||||||||
1.45 | 1.44 | 0.01 | 0.7 | Total operating expenses per GTM (cents) |
1.48 | 1.40 | 0.08 | 5.7 | ||||||||||||||||||||||||
0.57 | 0.58 | (0.01 | ) | (1.7 | ) | Compensation and benefits expense per GTM (cents) |
0.58 | 0.55 | 0.03 | 5.5 | ||||||||||||||||||||||
3,599 | 3,509 | 90 | 2.6 | GTMs per average active employee (000) |
10,897 | 11,017 | (120 | ) | (1.1 | ) | ||||||||||||||||||||||
25.1 | 21.6 | 3.5 | 16.2 | Average train speed AAR definition (mph) |
25.1 | 21.8 | 3.3 | 15.1 | ||||||||||||||||||||||||
19.9 | 22.4 | (2.5 | ) | (11.2 | ) | Terminal dwell time AAR definition (hours) |
20.4 | 27.0 | (6.6 | ) | (24.4 | ) | ||||||||||||||||||||
141.7 | 124.8 | 16.9 | 13.5 | Car miles per car day |
135.8 | 121.4 | 14.4 | 11.9 | ||||||||||||||||||||||||
79.8 | 86.0 | (6.2 | ) | (7.2 | ) | Average daily total cars on-line AAR definition (000) |
81.0 | 87.1 | (6.1 | ) | (7.0 | ) | ||||||||||||||||||||
1.17 | 1.13 | 0.04 | 3.5 | U.S. gallons of locomotive fuel per 1,000 GTMs freight & yard |
1.20 | 1.18 | 0.02 | 1.7 | ||||||||||||||||||||||||
68.9 | 66.9 | 2.0 | 3.0 | U.S. gallons of locomotive fuel consumed total (millions) (2) |
209.1 | 212.6 | (3.5 | ) | (1.6 | ) | ||||||||||||||||||||||
0.895 | 0.825 | 0.070 | 8.5 | Average foreign exchange rate (US$/Canadian$) |
0.884 | 0.816 | 0.068 | 8.3 | ||||||||||||||||||||||||
1.118 | 1.212 | (0.094 | ) | (7.8 | ) | Average foreign exchange rate (Canadian$/US$) |
1.131 | 1.226 | (0.095 | ) | (7.7 | ) |
(1) | Certain comparative period figures have been reclassified to conform with current presentation or have been updated to reflect new information. | |
(2) | Includes gallons of fuel consumed from freight, yard and commuter service but excludes fuel used in capital projects and other non-freight activities. |
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