0000100885-19-000191.txt : 20190718 0000100885-19-000191.hdr.sgml : 20190718 20190718080511 ACCESSION NUMBER: 0000100885-19-000191 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20190718 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190718 DATE AS OF CHANGE: 20190718 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNION PACIFIC CORP CENTRAL INDEX KEY: 0000100885 STANDARD INDUSTRIAL CLASSIFICATION: RAILROADS, LINE-HAUL OPERATING [4011] IRS NUMBER: 132626465 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06075 FILM NUMBER: 19960472 BUSINESS ADDRESS: STREET 1: 1400 DOUGLAS STREET STREET 2: STOP 0310 CITY: OMAHA STATE: NE ZIP: 68179 BUSINESS PHONE: 402 544 6763 MAIL ADDRESS: STREET 1: 1400 DOUGLAS STREET STREET 2: STOP 0310 CITY: OMAHA STATE: NE ZIP: 68179 8-K 1 unp-20190718x8k.htm 8-K 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION



Washington, D.C. 20549





 

 



 

 



FORM 8-K





 

 



 

 



CURRENT REPORT



Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934





Date of Report (Date of earliest event reported): July 18, 2019  (July 18, 2019)





 

 



 

 



UNION PACIFIC CORPORATION

(Exact name of registrant as specified in its charter)





 

 



 

 





 

 

Utah

1-6075

13-2626465

(State or other jurisdiction

(Commission

(IRS Employer

of Incorporation)

File Number)

Identification No.)





 

 

 

1400 Douglas Street, Omaha, Nebraska

68179

(Address of principal executive offices)

(Zip Code)



Registrant's telephone number, including area code: (402) 544-5000



N/A

(Former name or former address, if changed since last report)





 

 



 

 



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):





 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company     ☐



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

 

Item 2.02 Results of Operations and Financial Condition.

On July 18, 2019, Union Pacific Corporation issued a press release announcing its financial results for the quarter ended June 30, 2019.  A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d)

Exhibits.

99.1Press Release of Union Pacific Corporation, dated July 18, 2019, announcing its financial results for the quarter ended June 30, 2019.

 

 

SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.



Dated: July 18, 2019





 

 



UNION PACIFIC CORPORATION



 

 



 

 



By:

/s/ Robert M. Knight, Jr.



 

Robert M. Knight, Jr.



 

Executive Vice President and

Chief Financial Officer





 

Exhibit Index



99.1Press Release of Union Pacific Corporation, dated July 18, 2019.

EX-99.1 2 unp-20190718xex99_1.htm EX-99.1 Ex 991

Exhibit 99.1





Union Pacific Reports Record Second Quarter Results

All-Time Best Quarterly Operating Ratio of 59.6%



FOR IMMEDIATE RELEASE



Second Quarter Results

·

Diluted earnings per share of $2.22 increased 12 percent.

·

Operating income totaled $2.3 billion, up 8 percent.

·

Operating ratio of 59.6 percent, improved 3.4 points.



Omaha, Neb., July 18, 2019 – Union Pacific Corporation (NYSE: UNP) today reported 2019 second quarter net income of $1.6 billion, or $2.22 per diluted share. This compares to $1.5 billion, or $1.98 per diluted share, in the second quarter 2018.

“We delivered record second quarter financial results driven by exceptional operating performance, including an all-time best quarterly operating ratio of 59.6 percent,” said Lance Fritz, Union Pacific chairman, president and chief executive officer. “These results are a testament to the dedication of the men and women of Union Pacific, who are embracing Unified Plan 2020 and who worked closely with our customers to overcome numerous weather challenges.”



Second Quarter Summary

Operating revenue of $5.6 billion was down 1 percent in second quarter 2019, compared to second quarter 2018. Second quarter business volumes, as measured by total revenue carloads, decreased 4 percent compared to 2018. Growth in industrial volumes were more than offset by flat agricultural products shipments as well as declines in energy and premium.  In addition:





 

-more-

 

 

-2-

 

·

Quarterly freight revenue declined 2 percent, compared to second quarter 2018, as core pricing gains were offset by lower volumes.

·

Union Pacific’s all-time best 59.6 percent operating ratio improved 3.4 points, compared to second quarter 2018.

·

The $2.21 per gallon average quarterly diesel fuel price in the second quarter 2019 was 4 percent lower than second quarter 2018.

·

Union Pacific recognized a payroll tax refund of $32 million, along with associated interest income of $3 million in second quarter 2019.

·

Quarterly freight car velocity was 195 daily miles per car, a 4 percent improvement compared to the second quarter 2018.

·

Union Pacific’s first half reportable personal injury rate was 0.87 per 200,000 employee-hours, compared to 0.76 in first half 2018.

·

The Company repurchased 3.7 million shares in the second quarter 2019 at an aggregate cost of $639 million.



Summary of Second Quarter Freight Revenues

·

Agricultural Products up 4 percent

·

Industrial up 4 percent

·

Premium down 2 percent

·

Energy down 13 percent



2019 Outlook

“We look forward to building on the momentum from Unified Plan 2020 and providing a consistent, reliable service product for our customers,” Fritz said. “We remain focused on driving increased shareholder returns by appropriately investing capital in the railroad and returning excess cash to our shareholders.”







 

-more-

 

 

-3-

Second Quarter 2019 Earnings Conference Call

Union Pacific will host its second quarter 2019 earnings release presentation over live webcast and via teleconference on Thursday, July 18, 2019 at 8:45 a.m. Eastern Time.  The presentation will be webcast live over the internet on Union Pacific’s website at www.up.com/investor.  Alternatively, the webcast can be accessed directly through the following link.  Participants may join the conference call by dialing 877/407-8293 (or for international participants, 201/689-8349).



ABOUT UNION PACIFIC

Union Pacific Railroad is the principal operating company of Union Pacific Corporation (NYSE: UNP). One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. The railroad's diversified business mix is classified into its Agricultural Products, Energy, Industrial and Premium business groups. Union Pacific serves many of the fastest-growing U.S. population centers, operates from all major West Coast and Gulf Coast ports to eastern gateways, connects with Canada's rail systems and is the only railroad serving all six major Mexico gateways. Union Pacific provides value to its roughly 10,000 customers by delivering products in a safe, reliable, fuel-efficient and environmentally responsible manner.



Union Pacific Investor contact:  Mike Miller at 402-544-4227 or mvmiller@up.com

Union Pacific Media contact:  Raquel Espinoza at 402-544-5034 or respinoza@up.com





 

-more-

 

 

-4-

Supplemental financial information is attached.





****

This presentation and related materials contain statements about the Company’s future that are not statements of historical fact, including specifically the statements regarding the Company’s expectations with respect to economic conditions and demand levels and its ability to improve network performance and customer service.  These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934.  Forward-looking statements also generally include, without limitation, information or statements regarding:  projections, predictions, expectations, estimates or forecasts as to the Company’s and its subsidiaries’ business, financial, and operational results, and future economic performance;  and management’s beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts.



Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times that, or by which, such performance or results will be achieved.  Forward-looking information, including expectations regarding operational and financial improvements and the Company’s future performance or results are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statement.  Important factors, including risk factors, could affect the Company’s and its subsidiaries’ future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements.  Information regarding risk factors and other cautionary information are available in the Company’s Annual Report on Form 10-K for 2018, which was filed with the SEC on February 8, 2019.  The Company updates information regarding risk factors if circumstances require such updates in its periodic reports on Form 10-Q and its subsequent Annual Reports on Form 10-K (or such other reports that may be filed with the SEC).  



Forward-looking statements speak only as of, and are based only upon information available on, the date the statements were made.  The Company assumes no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.  If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements.  References to our website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein.



###





 

 

 

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Millions, Except Per Share Amounts and Percentages,

2nd Quarter

 

Year-to-Date

For the Periods Ended June 30,

 2019  2018 

%

 

 

 2019  2018 

%

 

Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

     Freight revenues

$

 5,236 

$

 5,317  (2)

%

 

$

 10,246 

$

 10,439  (2)

%

     Other

 

 360 

 

 355  1 

 

 

 

 734 

 

 708  4 

 

Total operating revenues

 

 5,596 

 

 5,672  (1)

 

 

 

 10,980 

 

 11,147  (1)

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

     Compensation and benefits

 

 1,145 

 

 1,241  (8)

 

 

 

 2,350 

 

 2,514  (7)

 

     Purchased services and materials

 

 573 

 

 630  (9)

 

 

 

 1,149 

 

 1,229  (7)

 

     Depreciation

 

 551 

 

 546  1 

 

 

 

 1,100 

 

 1,089  1 

 

     Fuel

 

 560 

 

 643  (13)

 

 

 

 1,091 

 

 1,232  (11)

 

     Equipment and other rents

 

 260 

 

 265  (2)

 

 

 

 518 

 

 531  (2)

 

     Other

 

 247 

 

 248 

 -

 

 

 

 552 

 

 514  7 

 

Total operating expenses

 

 3,336 

 

 3,573  (7)

 

 

 

 6,760 

 

 7,109  (5)

 

Operating Income

 

 2,260 

 

 2,099  8 

 

 

 

 4,220 

 

 4,038  5 

 

     Other income

 

 57 

 

 42  36 

 

 

 

 134 

 

 -

F

 

     Interest expense

 

 (259)

 

 (203) 28 

 

 

 

 (506)

 

 (389) 30 

 

Income before income taxes

 

 2,058 

 

 1,938  6 

 

 

 

 3,848 

 

 3,649  5 

 

Income taxes

 

 (488)

 

 (429) 14 

 

 

 

 (887)

 

 (830) 7 

 

Net Income

$

 1,570 

$

 1,509  4 

%

 

$

 2,961 

$

 2,819  5 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

     Earnings per share - basic

$

 2.23 

$

 1.98  13 

%

 

$

 4.16 

$

 3.67  13 

%

     Earnings per share - diluted

$

 2.22 

$

 1.98  12 

 

 

$

 4.15 

$

 3.65  14 

 

     Weighted average number of shares - basic

 

 705.5 

 

 760.5  (7)

 

 

 

 711.2 

 

 768.4  (7)

 

     Weighted average number of shares - diluted

 

 708.0 

 

 763.7  (7)

 

 

 

 713.8 

 

 771.6  (7)

 

     Dividends declared per share

$

 0.88 

$

 0.73  21 

 

 

$

 1.76 

$

 1.46  21 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Ratio

 

 59.6% 

 

 63.0%  (3.4)

pts

 

 

 61.6% 

 

 63.8%  (2.2)

pts

Effective Tax Rate

 

 23.7% 

 

 22.1%  1.6 

pts

 

 

 23.1% 

 

 22.7%  0.4 

pts





1

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 



2nd Quarter

 

Year-to-Date

For the Periods Ended June 30,

 2019  2018 

%

 

 

 2019  2018 

%

 

Freight Revenues (Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural Products

$

 1,155 

$

 1,114  4 

%

 

$

 2,222 

$

 2,212 

 -

%

Energy

 

 966 

 

 1,111  (13)

 

 

 

 1,948 

 

 2,284  (15)

 

Industrial

 

 1,494 

 

 1,437  4 

 

 

 

 2,904 

 

 2,777  5 

 

Premium

 

 1,621 

 

 1,655  (2)

 

 

 

 3,172 

 

 3,166 

 -

 

Total

$

 5,236 

$

 5,317  (2)

%

 

$

 10,246 

$

 10,439  (2)

%

Revenue Carloads (Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural Products

 

 284 

 

 285 

 -

%

 

 

 543 

 

 564  (4)

%

Energy

 

 351 

 

 387  (9)

 

 

 

 709 

 

 806  (12)

 

Industrial

 

 460 

 

 452  2 

 

 

 

 889 

 

 863  3 

 

Premium [a]

 

 1,042 

 

 1,101  (5)

 

 

 

 2,083 

 

 2,117  (2)

 

Total

 

 2,137 

 

 2,225  (4)

%

 

 

 4,224 

 

 4,350  (3)

%

Average Revenue per Car

 

 

 

 

 

 

 

 

 

 

 

 

 

Agricultural Products

$

 4,057 

$

 3,903  4 

%

 

$

 4,088 

$

 3,922  4 

%

Energy

 

 2,753 

 

 2,874  (4)

 

 

 

 2,746 

 

 2,835  (3)

 

Industrial

 

 3,242 

 

 3,178  2 

 

 

 

 3,266 

 

 3,218  1 

 

Premium

 

 1,557 

 

 1,503  4 

 

 

 

 1,523 

 

 1,495  2 

 

Average 

$

 2,450 

$

 2,389  3 

%

 

$

 2,425 

$

 2,400  1 

%



[a]

For intermodal shipments each container or trailer equals one carload.

2

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Financial Position (unaudited)







 

 

 

 

 

 

 

 

 

 

Jun. 30,

Dec. 31,

Millions, Except Percentages

2019  2018 

Assets

 

 

 

 

     Cash and cash equivalents

$

 1,049 

$

 1,273 

     Short-term investments

 

 60 

 

 60 

     Other current assets

 

 2,977 

 

 2,830 

     Investments

 

 1,989 

 

 1,912 

     Net properties

 

 53,115 

 

 52,679 

     Operating lease assets

 

 2,076 

 

 -

     Other assets

 

 442 

 

 393 

Total assets

$

 61,708 

$

 59,147 

 

 

 

 

 

Liabilities and Common Shareholders' Equity

 

 

 

 

     Debt due within one year

$

 2,297 

$

 1,466 

     Other current liabilities

 

 3,368 

 

 3,160 

     Debt due after one year

 

 22,955 

 

 20,925 

     Operating lease liabilities

 

 1,612 

 

 -

     Deferred income taxes

 

 11,574 

 

 11,302 

     Other long-term liabilities

 

 1,731 

 

 1,871 

Total liabilities

 

 43,537 

 

 38,724 

Total common shareholders' equity

 

 18,171 

 

 20,423 

Total liabilities and common shareholders' equity

$

 61,708 

$

 59,147 







3

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Cash Flows (unaudited)







 

 

 

 

 

 

 

 

 

Millions,

Year-to-Date

For the Periods Ended June 30,

 2019  2018 

Operating Activities

 

 

 

 

     Net income

$

 2,961 

$

 2,819 

     Depreciation

 

 1,100 

 

 1,089 

     Deferred income taxes

 

 209 

 

 204 

     Other - net

 

 (370)

 

 (79)

Cash provided by operating activities

 

 3,900 

 

 4,033 

Investing Activities

 

 

 

 

     Capital investments

 

 (1,560)

 

 (1,614)

     Maturities of short-term investments

 

 105 

 

 60 

     Purchases of short-term investments

 

 (100)

 

 (60)

     Other - net

 

 (55)

 

 (11)

Cash used in investing activities

 

 (1,610)

 

 (1,625)

Financing Activities

 

 

 

 

     Common share repurchases

 

 (3,629)

 

 (5,973)

     Debt issued

 

 2,992 

 

 6,892 

     Dividends paid

 

 (1,248)

 

 (1,125)

     Debt repaid

 

 (604)

 

 (1,295)

     Accelerated share repurchase programs pending final settlement

 

 (500)

 

 (720)

     Net issuance of commercial paper

 

 471 

 

 196 

     Other - net

 

 (29)

 

 (54)

Cash used in financing activities

 

 (2,547)

 

 (2,079)

Net Change in Cash, Cash Equivalents and Restricted Cash

 

 (257)

 

 329 

Cash, cash equivalents, and restricted cash at beginning of year

 

 1,328 

 

 1,275 

Cash, Cash Equivalents, and Restricted Cash at End of Period

$

 1,071 

$

 1,604 

Free Cash Flow*

 

 

 

 

     Cash provided by operating activities

$

 3,900 

$

 4,033 

     Cash used in investing activities

 

 (1,610)

 

 (1,625)

     Dividends paid

 

 (1,248)

 

 (1,125)

Free cash flow

$

 1,042 

$

 1,283 



*Free cash flow is a non-GAAP measure; however, we believe this measure is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financing.



4

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Operating and Performance Statistics (unaudited)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



2nd Quarter

 

Year-to-Date

For the Periods Ended June 30,

 2019 

 

 2018 

%

 

 

 2019 

 

 2018 

%

 

Operating/Performance Statistics 

 

 

 

 

 

 

 

 

 

 

 

     Freight car velocity (daily miles per car)

 195 

 

 188  4 

%

 

 191 

 

 181  6 

%

     Average train speed (miles per hour)*

 23.1 

 

 24.7  (6)

 

 

 23.2 

 

 24.8  (6)

 

     Average terminal dwell time (hours)*

 25.5 

 

 29.5  (14)

 

 

 26.0 

 

 31.2  (17)

 

     Locomotive productivity (GTMs per horsepower day)

 121 

 

 102  19 

 

 

 116 

 

 103  13 

 

     Gross ton-miles (GTMs) (millions)

 220,009 

 

 230,938  (5)

 

 

 430,328 

 

 457,867  (6)

 

     Workforce productivity (car miles per employee)

 866 

 

 836  4 

 

 

 839 

 

 831  1 

 

     Employees (average)

 38,657 

 

 42,114  (8)

 

 

 39,355 

 

 41,925  (6)

 

 

 

 

 

 

 

 

 

 

 

 

 

Locomotive Fuel Statistics

 

 

 

 

 

 

 

 

 

 

 

     Average fuel price per gallon consumed

$       2.21 

 

$       2.30 

 (4)

%

 

$       2.14 

 

$       2.22 

 (4)

%

     Fuel consumed in gallons (millions)

 245 

 

 270  (9)

 

 

 493 

 

 537  (8)

 

     Fuel consumption rate**

 1.112 

 

 1.170  (5)

 

 

 1.146 

 

 1.173  (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Ton-Miles (Millions)

 

 

 

 

 

 

 

 

 

 

 

     Agricultural Products

 25,218 

 

 25,908  (3)

%

 

 48,804 

 

 51,081  (4)

%

     Energy

 34,000 

 

 40,002  (15)

 

 

 69,215 

 

 83,964  (18)

 

     Industrial

 25,536 

 

 25,750  (1)

 

 

 49,854 

 

 50,040 

 -

 

     Premium

 23,990 

 

 25,976  (8)

 

 

 47,521 

 

 49,951  (5)

 

Total

 108,744 

 

 117,636  (8)

%

 

 215,394 

 

 235,036  (8)

%



*AAR reported performance measures.    



**Fuel consumption is computed as follows: gallons of fuel consumed divided by gross ton-miles in thousands. 



5

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income (unaudited)





 

 

 

 

 

 



 

 

 

 

 

 



2019

Millions, Except Per Share Amounts and Percentages,

1st Qtr 

2nd Qtr 

Year-to-Date

Operating Revenues

 

 

 

 

 

 

     Freight revenues

$

 5,010 

$

 5,236 

$

 10,246 

     Other revenues

 

 374 

 

 360 

 

 734 

Total operating revenues

 

 5,384 

 

 5,596 

 

 10,980 

Operating Expenses

 

 

 

 

 

 

     Compensation and benefits

 

 1,205 

 

 1,145 

 

 2,350 

     Purchased services and materials

 

 576 

 

 573 

 

 1,149 

     Depreciation

 

 549 

 

 551 

 

 1,100 

     Fuel

 

 531 

 

 560 

 

 1,091 

     Equipment and other rents

 

 258 

 

 260 

 

 518 

     Other

 

 305 

 

 247 

 

 552 

Total operating expenses

 

 3,424 

 

 3,336 

 

 6,760 

Operating Income

 

 1,960 

 

 2,260 

 

 4,220 

     Other income

 

 77 

 

 57 

 

 134 

     Interest expense

 

 (247)

 

 (259)

 

 (506)

Income before income taxes

 

 1,790 

 

 2,058 

 

 3,848 

Income taxes

 

 (399)

 

 (488)

 

 (887)

Net Income

$

 1,391 

$

 1,570 

$

 2,961 

 

 

 

 

 

 

 

Share and Per Share

 

 

 

 

 

 

     Earnings per share - basic

$

 1.94 

$

 2.23 

$

 4.16 

     Earnings per share - diluted

$

 1.93 

$

 2.22 

$

 4.15 

     Weighted average number of shares - basic

 

 716.8 

 

 705.5 

 

 711.2 

     Weighted average number of shares - diluted

 

 719.5 

 

 708.0 

 

 713.8 

     Dividends declared per share

$

 0.88 

$

 0.88 

$

 1.76 

 

 

 

 

 

 

 

Operating Ratio

 

 63.6% 

 

 59.6% 

 

 61.6% 

Effective Tax Rate

 

 22.3% 

 

 23.7% 

 

 23.1% 





6

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Freight Revenues Statistics (unaudited)







 

 

 

 

 

 



 

 

 

 

 

 



2019



1st Qtr 

2nd Qtr 

Year-to-Date

Freight Revenues (Millions)

 

 

 

 

 

 

Agricultural Products

$

 1,067 

$

 1,155 

$

 2,222 

Energy

 

 982 

 

 966 

 

 1,948 

Industrial

 

 1,410 

 

 1,494 

 

 2,904 

Premium

 

 1,551 

 

 1,621 

 

 3,172 

Total

$

 5,010 

$

 5,236 

$

 10,246 

Revenue Carloads (Thousands)

 

 

 

 

 

 

Agricultural Products

 

 259 

 

 284 

 

 543 

Energy

 

 358 

 

 351 

 

 709 

Industrial

 

 429 

 

 460 

 

 889 

Premium [a]

 

 1,041 

 

 1,042 

 

 2,083 

Total

 

 2,087 

 

 2,137 

 

 4,224 

Average Revenue per Car

 

 

 

 

 

 

Agricultural Products

$

 4,123 

$

 4,057 

$

 4,088 

Energy

 

 2,740 

 

 2,753 

 

 2,746 

Industrial

 

 3,292 

 

 3,242 

 

 3,266 

Premium

 

 1,489 

 

 1,557 

 

 1,523 

Average 

$

 2,401 

$

 2,450 

$

 2,425 



[a]

For intermodal shipments each container or trailer equals one carload.



7

 

 



UNION PACIFIC CORPORATION AND SUBSIDIARY COMPANIES

Non-GAAP Measures Reconciliation to GAAP





Adjusted Debt / Adjusted EBITDA*





 

 

 

 



 

 

 

 

Millions, Except Ratios

Jun. 30,

Dec. 31,

for the Trailing Twelve Months Ended [a]

 2019  2018 

Net income

$

 6,108 

$

 5,966 

Less:

 

 

 

 

Other income

 

 228 

 

 94 

Add:

 

 

 

 

Income tax expense

 

 1,832 

 

 1,775 

Depreciation

 

 2,202 

 

 2,191 

Interest expense

 

 987 

 

 870 

EBITDA

$

 10,901 

$

 10,708 

Interest on operating lease liabilities**

 

 76 

 

 84 

Adjusted EBITDA (a)

$

 10,977 

$

 10,792 

Debt

$

 25,252 

$

 22,391 

Operating lease liabilities***

 

 2,054 

 

 2,271 

Unfunded pension and OPEB,  net of taxes of $108 and $135

 

 359 

 

 456 

Adjusted debt (b)

$

 27,665 

$

 25,118 

Adjusted debt / Adjusted EBITDA (b/a)

 

 2.5 

 

 2.3 



[a]

The trailing twelve months income statement information ended June  30, 2019 is recalculated by taking the twelve months ended December 31, 2018, subtracting the six months ended June 30, 2018, and adding the six months ended June 30, 2019.







 

 

 

 



 

 

 

 

*Total debt plus operating lease liabilities plus after-tax unfunded pension and OPEB obligation divided by net income less other income plus income tax expense, depreciation, interest expense, and interest on operating lease liabilities. Adjusted debt to adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and interest on operating lease liabilities) is considered a non-GAAP financial measure by SEC Regulation G and Item 10 of SEC Regulation S-K and may not be defined and calculated by other companies in the same manner. We believe this measure is important to management and investors in evaluating the Company’s ability to sustain given debt levels (including leases) with the cash generated from operations. In addition, a comparable measure is used by rating agencies when reviewing the Company’s credit rating. Adjusted debt to Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income. The table above provides reconciliations from net income to adjusted debt to adjusted EBITDA. At both June 30, 2019 and December 31, 2018, the incremental borrowing rate on operating lease liabilities was 3.7%.



**Represents the hypothetical interest expense we would incur (using the incremental borrowing rate) if the property under our operating leases were owned or accounted for as finance leases.



***Effective January 1, 2019, the Company adopted Accounting Standards Update No. 2016-02 (ASU 2016-02), Leases. ASU 2016-02 requires companies to recognize lease assets and lease liabilities on the balance sheet. Prior to adoption, the present value of operating leases was used in this calculation.











8