Canadian Pacific Kansas City Ltd. Files 10-Q for Q1 2024

TL;DR

<b>Canadian Pacific Kansas City Ltd. has filed its Q1 2024 10-Q report, detailing financial performance and company structure.</b>

AI Summary

CANADIAN PACIFIC KANSAS CITY LTD/CN (CP) filed a Quarterly Report (10-Q) with the SEC on April 24, 2024. Canadian Pacific Kansas City Ltd. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's headquarters are located in Calgary, Alberta. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. The company was formerly known as Canadian Pacific Railway Ltd./CN.

Why It Matters

For investors and stakeholders tracking CANADIAN PACIFIC KANSAS CITY LTD/CN, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial statements and operational updates for Canadian Pacific Kansas City Ltd. Understanding the details within this report is crucial for assessing the company's financial health, growth trajectory, and potential risks in the current market environment.

Risk Assessment

Risk Level: low — CANADIAN PACIFIC KANSAS CITY LTD/CN shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant new risks or disclosures beyond routine financial reporting.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand revenue trends and operational efficiency for Q1 2024.

Key Numbers

• 20240331 — Conformed Period of Report (10-Q filing)
• 20240424 — Filed As Of Date (10-Q filing)
• 2024-01-01 — Quarter Start Date (Q1 2024)
• 2024-03-31 — Quarter End Date (Q1 2024)

Key Players & Entities

• CANADIAN PACIFIC KANSAS CITY LTD/CN (company) — Filer
• 0000016875 (company) — Central Index Key
• RAILROADS, LINE-HAUL OPERATING (company) — Standard Industrial Classification
• CALGARY ALBERTA (company) — Business Address City/State
• CANADIAN PACIFIC RAILWAY LTD/CN (company) — Former Company Name
• CANADIAN PACIFIC LTD (company) — Former Company Name
• CANADIAN PACIFIC RAILWAY CO (company) — Former Company Name
• 20240331 (date) — Conformed Period of Report

FAQ

Industry Context

Canadian Pacific Kansas City Ltd. operates in the railroad transportation industry, a critical sector for North American commerce.

Regulatory Implications

As a publicly traded company, Canadian Pacific Kansas City Ltd. is subject to SEC regulations, including the requirement to file quarterly reports (10-Q).

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024.
2. Examine any disclosed segment information for revenue and performance trends.
3. Review the footnotes for any significant accounting policies or disclosures.

Key Dates

• 2024-03-31: End of Reporting Period — Q1 2024 financial data
• 2024-04-24: Filing Date — 10-Q submission

Year-Over-Year Comparison

This filing is the first 10-Q for the period ending March 31, 2024, following the previous 10-K filing for the fiscal year ending December 31, 2023.

Filing Documents

• cp-20240331.htm (10-Q) — 1071KB
• exhibit221q12024.htm (EX-22.1) — 9KB
• exhibit311q12024.htm (EX-31.1) — 11KB
• exhibit312q12024.htm (EX-31.2) — 11KB
• exhibit321q12024.htm (EX-32.1) — 7KB
• exhibit322q12024.htm (EX-32.2) — 7KB
• 0000016875-24-000016.txt (&nbsp;) — 5914KB
• cp-20240331.xsd (EX-101.SCH) — 48KB
• cp-20240331_cal.xml (EX-101.CAL) — 81KB
• cp-20240331_def.xml (EX-101.DEF) — 266KB
• cp-20240331_lab.xml (EX-101.LAB) — 543KB
• cp-20240331_pre.xml (EX-101.PRE) — 369KB
• cp-20240331_htm.xml (XML) — 603KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements: Interim Consolidated Statements of Income 2 For the Three Months Ended March 31, 2024 and 2023 Interim Consolidated Statements of Comprehensive Income 3 For the Three Months Ended March 31, 2024 and 2023 Interim Consolidated Balance Sheets 4 As at March 31, 2024 and December 31, 2023 Interim Consolidated Statements of Cash Flows 5 For the Three Months Ended March 31, 2024 and 2023 Interim Consolidated Statements of Changes in Equity 6 For the Three Months Ended March 31, 2024 and 2023 Notes to Interim Consolidated Financial Statements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Executive Summary 18 Performance Indicators 18 Financial Highlights 19 Results of Operations 19 Liquidity and Capital Resources 26 Share Capital 30 Non-GAAP Measures 30 Critical Accounting Estimates 33

Forward-Looking Statements 34

Forward-Looking Statements 34

Quantitative and Qualitative Disclosures about Market Risk 36

Item 3. Quantitative and Qualitative Disclosures about Market Risk 36

Controls and Procedures 37

Item 4. Controls and Procedures 37

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings 38

Item 1. Legal Proceedings 38

Risk Factors 38

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds 38

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities 38

Item 3. Defaults Upon Senior Securities 38

Mine Safety Disclosures 38

Item 4. Mine Safety Disclosures 38

Other Information 38

Item 5. Other Information 38

Exhibits 39

Item 6. Exhibits 39 Signature 40 PART I

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INTERIM CONSOLIDATED STATEMENTS OF INCOME (unaudited) For the three months ended March 31 (in millions of Canadian dollars, except share and per share data) 2024 2023 Revenues (Note 3) Freight $ 3,427 $ 2,217 Non-freight 93 49 Total revenues 3,520 2,266 Operating expenses Compensation and benefits (Note 8) 690 438 Fuel 458 326 Materials (Note 8) 94 72 Equipment rents 82 30 Depreciation and amortization (Note 8) 467 225 Purchased services and other (Note 8) 580 346 Total operating expenses 2,371 1,437 Operating income 1,149 829 Less: Equity earnings of Kansas City Southern (Note 8, 9) — ( 204 ) Other (income) expense (Note 8) ( 2 ) 2 Other components of net periodic benefit recovery (Note 12) ( 88 ) ( 86 ) Net interest expense (Note 8) 206 154 Income before income tax expense 1,033 963 Less: Current income tax expense (Note 4) 242 139 Deferred income tax expense (Note 4) 17 24 Income tax expense (Note 4) 259 163 Net income $ 774 $ 800 Less: Net loss attributable to non-controlling interest (Note 8) ( 1 ) — Net income attributable to controlling shareholders $ 775 $ 800 Earnings per share (Note 5) Basic earnings per share $ 0.83 $ 0.86 Diluted earnings per share $ 0.83 $ 0.86 Weighted-average number of shares (millions) (Note 5) Basic 932.4 930.7 Diluted 934.4 933.5 Dividends declared per share $ 0.19 $ 0.19 See Notes to Interim Consolidated Financial Statements. 2 INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) For the three months ended March 31 (in millions of Canadian dollars) 2024 2023 Net income $ 774 $ 800 Net gain (loss) in foreign currency translation adjustments, net of hedging activities 699 ( 27 ) Change in derivatives designated as cash flow hedges 1 2 Change in pension and post-retirement defined benefit plans 12 8 Other comprehensive income from equity investees — 3 Other comprehensive income (loss) before income taxes 712 ( 14 ) In

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View this 10-Q filing on SEC EDGAR