CPKC Files Q3 2024 10-Q

Ticker: CP · Form: 10-Q · Filed: Oct 24, 2024 · CIK: 16875

Sentiment: neutral

Topics: 10-Q, railroads, financials, quarterly-report

TL;DR

CPKC Q3 10-Q is in! Financials look steady, operations chugging along.

AI Summary

Canadian Pacific Kansas City Ltd. (CPKC) filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter of 2024. Key financial metrics and business segments are presented, reflecting the company's ongoing activities in the rail transportation sector.

Why It Matters

This filing provides investors and analysts with the latest financial and operational data for CPKC, crucial for understanding the company's performance and future outlook in the North American rail industry.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Canadian Pacific Kansas City Ltd./CN?

Canadian Pacific Kansas City Ltd./CN operates in the Railroads, Line-Haul Operating sector, as indicated by SIC code 4011.

What is the fiscal year end for CPKC?

The fiscal year end for CPKC is December 31st.

What period does this 10-Q filing cover?

This 10-Q filing covers the period of report ending September 30, 2024.

What were the former names of the company?

The company was formerly known as Canadian Pacific Railway Ltd./CN, Canadian Pacific Ltd., and Canadian Pacific Railway Co.

On what exchanges are CPKC's common stock and debenture stock listed?

CPKC's common class A shares are listed on the NYSE (exch:XNYS) and TSE (exch:XTSE), and its Perpetual 4 Consolidated Debenture Stock is listed on the NYSE (exch:XNYS), XLON, and potentially other exchanges.

Filing Stats: 5,055 words · 20 min read · ~17 pages · Grade level 15.5 · Accepted 2024-10-23 17:51:09

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements: Interim Consolidated Statements of Income (Unaudited) 2 For the Three and Nine Months Ended September 30, 2024 and 2023 Interim Consolidated Statements of Comprehensive Income (Unaudited) 3 For the Three and Nine Months Ended September 30, 2024 and 2023 Interim Consolidated Balance Sheets (Unaudited) 4 As at September 30, 2024 and December 31, 2023 Interim Consolidated Statements of Cash Flows (Unaudited) 5 For the Three and Nine Months Ended September 30, 2024 and 2023 Interim Consolidated Statements of Changes in Equity (Unaudited) 6 For the Three and Nine Months Ended September 30, 2024 and 2023 Notes to Interim Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Executive Summary 20 Performance Indicators 21 Financial Highlights 22 Results of Operations 22 Liquidity and Capital Resources 33 Share Capital 37 Non-GAAP Measures 37 Critical Accounting Estimates 42

Forward-Looking Statements 42

Forward-Looking Statements 42

Quantitative and Qualitative Disclosures about Market Risk 44

Item 3. Quantitative and Qualitative Disclosures about Market Risk 44

Controls and Procedures 45

Item 4. Controls and Procedures 45

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings 46

Item 1. Legal Proceedings 46

Risk Factors 46

Item 1A. Risk Factors 46

Unregistered Sales of Equity Securities and Use of Proceeds 46

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46

Defaults Upon Senior Securities 46

Item 3. Defaults Upon Senior Securities 46

Mine Safety Disclosures 46

Item 4. Mine Safety Disclosures 46

Other Information 46

Item 5. Other Information 46

Exhibits 47

Item 6. Exhibits 47 Signature 48 PART I

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INTERIM CONSOLIDATED STATEMENTS OF INCOME (unaudited) For the three months ended September 30 For the nine months ended September 30 (in millions of Canadian dollars, except share and per share data) 2024 2023 2024 2023 Revenues (Note 3) Freight $ 3,461 $ 3,266 $ 10,422 $ 8,584 Non-freight 88 73 250 195 Total revenues 3,549 3,339 10,672 8,779 Operating expenses Compensation and benefits (Note 8) 644 598 1,946 1,695 Fuel 419 430 1,343 1,153 Materials (Note 8) 99 90 290 260 Equipment rents 89 91 253 201 Depreciation and amortization (Note 8) 472 451 1,412 1,086 Purchased services and other (Note 8) 623 506 1,809 1,438 Total operating expenses 2,346 2,166 7,053 5,833 Operating income 1,203 1,173 3,619 2,946 Less: Equity earnings of Kansas City Southern (Note 8, 9) — — — ( 230 ) Other expense (income) (Note 8, 10) 1 13 ( 41 ) 36 Other components of net periodic benefit recovery (Note 12) ( 89 ) ( 85 ) ( 265 ) ( 254 ) Net interest expense (Note 8) 192 207 598 565 Remeasurement loss of Kansas City Southern (Note 8) — — — 7,175 Income (loss) before income tax expense (recovery) 1,099 1,038 3,327 ( 4,346 ) Less: Current income tax expense (Note 4) 257 255 773 674 Deferred income tax expense (recovery) (Note 4, 8) 5 3 40 ( 7,925 ) Income tax expense (recovery) (Note 4) 262 258 813 ( 7,251 ) Net income $ 837 $ 780 $ 2,514 $ 2,905 Less: Net (loss) income attributable to non-controlling interest (Note 8) — — ( 3 ) 1 Net income attributable to controlling shareholders $ 837 $ 780 $ 2,517 $ 2,904 Earnings per share (Note 5) Basic earnings per share $ 0.90 $ 0.84 $ 2.70 $ 3.12 Diluted earnings per share $ 0.90 $ 0.84 $ 2.69 $ 3.11 Weighted-average number of shares (millions) (Note 5) Basic 933.2 931.5 932.8 931.1 Diluted 935.3 933.9 934.8 933.7 Dividends declared per share $ 0.19 $ 0.19 $ 0.57 $ 0.57 See Notes to Interim Consolidated Financial Statements. 2 INTERIM CONSOLIDATED STATEMENTS

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