Canadian Pacific Railway Limited (CP) 24 Oct 192019 Q3 Earnings call transcript

Company Profile

Participants

Maeghan Albiston	Assistant Vice President of Investor Relations
Keith Creel	President and Chief Executive Officer
John Brooks	Chief Marketing Officer
Nadeem Velani	Chief Financial Officer
Thomas Wadewitz	UBS Securities LLC
Fadi Chamoun	BMO Capital Markets
Christian Wetherbee	Citi Investment Research
Walter Spracklin	RBC Capital Markets
Scott Group	Wolfe Research, LLC
Brian Ossenbeck	JPMorgan Chase & Co.
Benoit Poirier	Desjardins Securities Inc.
Brandon Oglenski	Barclays Plc
Allison Landry	Credit Suisse
Jordan Alliger	Goldman Sachs
Ravi Shanker	Morgan Stanley
Justin Long	Stephens, Inc.
Ken Hoexter	Bank of America Merrill Lynch

Call transcript

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Operator

Good afternoon. My name is Emily and I will be your conference operator today. At this time, I would like to welcome everyone to the Canadian Pacific’s Third Quarter 2019 Conference Call. The slides accompanying today’s call are available at www.cpr.ca. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers’ the will question-and-answer be After [Operator Instructions]

like I the Albiston, to AVP, now conference. Investor begin Maeghan to introduce would Pensions, Relations and

Maeghan Albiston

Thank you and you, afternoon, us joining today. thank Emily. Good for everyone,

begin, forward-looking and contains we this differ results information I you that remind Before that to presentation may actual materially. want

and Slide presentation MD&A and press at release our found investor.cpr.ca. contains other uncertainties influence available that’s risks, release outlined X. in with that could on on This can today’s actual in A all in X, the U.S. results non-GAAP measures, The reconciliation website, press factors be are also non-GAAP filed Canadian described regulators. on Slide and measures of

Executive Executive interest Vice John we’d be and Officer; you here and President remarks The And Financial Vice in President me the of two. to is our today President Velani, With Chief Brooks, Chief Creel, by Q&A. will formal could questions time, Keith Marketing and followed limit Officer. your if and Nadeem appreciate CEO;

Keith pleasure It’s now introduce Creel. to my Mr.

Keith Creel

model, which delivering railroaders, our PSR our more times. to economic Thanks, all us I’m over you again as strong results; challenging proven Once of here both times enable our this for good to executing success our in continues operating representing for afternoon Maeghan. shareholders, family be and Calgary, today. my customers honored and with as XX,XXX joining impressive colleagues Good in thank well

quarter, we XX% ratio producing and efforts record of Through while operating an of EPS this our record-low billion, growth. adjusted quarter CP collective delivered third revenues all-time $X XX.X%

are tension are results of PSR foundational teams’ maintain undeniable resources culture. operating, half a ability cost, adapting and as constructive our spite strong those as unique in some industry at CP. challenges this day-to-day managing headwinds, aware, all of volatile proof real-time, all well we this As in experienced environment micro the pretty in in which quarter, back the In today’s of skill the true are points

business outstanding operating cycles. and that mined their an specifically, to tip will to CP will continues to to demonstrates I always, the and and efficiency economic produced model us across be manage and opportunities were at not year-over-year is peaks allow all More always the commend remised be hat improvements performance, my further demonstrated that the It’s of lows the performance essentially to the revenue, operating team there by board. be

levels best compliance the time, improvement customers; again, train quarter best network is in metric improvement in dwell at CP; network, and productivity, X% at our XX% the on terminal each car XX% the in third importantly, safety same locomotive across front. all-time at performance all-time strong X% day, for the producing at a speed, plan most safety for trip XX% per the CP, improvement quarter which miles

personnel down Train is accident of stay injuries care the in on quarter, intense And X%. XX% area an I you injuries and can tell year-over-year within CP. personnel concern focus, reducing

home committed safe day. every going employee We’re to every

of at proud same We excellence. to publically on work lot got journey. left pockets do to the a time, this recognize I’m today But of

all in injury-free at collective in work the all Toronto there partnership today. there be the years three like Locomotive James women have Toronto kind their and company great We team, [ph], Superintendent This shop, CP Dawson, in the rep Brian and the performance and across bold Mechanic [Purchas] of work like Comben group. officers celebrating leadership with Christopher Toronto, health men who’s safety takes locomotive of performance working

our true aspiration, may our all the execution word Toronto constructive illustrates demonstrate that is this at a like of and or enabler. accountability, a be To culture the keyword. in CP, culture, excellence is success true the safety an tension of diesel mind, my safety culture importance on Locations shop which we some, of do just

have I’d quarter to last point in transformational Their this of and contributions over also years Johnson of the instrumental Tony number Marquis. announced like retirement the been we Robert out CP’s in from a included of to partnership leaders myself strong with cultivating industry they industry in while for future. bench and lagger were others, developing here operating leader, the now which journey and

focus improving work this Region appointed what our they’ve Operations. meet, allowed transition a This in X, and and leaders Miller, work which operating them. seized runs September two the a with space. done Reporting President, in the talented Vice EVP Squires, Vice Mark seasoned Western had not chance are many of to of are Eastern Mark Greg further seamless been Region. Redd, runs who that’s to the the was inherited, On sustaining Tracy you’ve just but Senior before President our

to our day, success most the of any end the that importantly ability my true and mind, people cultivating comes a leaders to all focus developing team’s ongoing in for at and at continues company of why and matter, the create CP across be is At and personal or my down in which departments people, deep great to sustain priority. the company our bench railroader

it short, it to with Nadeem to to my then on I’ll that, over keep I’ll provide over markets some the turn John, So numbers. and color to hand comments on elaborate the more

John Brooks

thank Keith, right, afternoon, and everyone. All you, good

to in while pricing quarter So, And to as X% flat, landed X% total range, targeted mix up FX was the revenues billion. were X%. X%. fuel X% while was RTMs $X was down negative positive. our expected, this were

our as execution some headwinds team of our quarter, surgical particularly, and growth bulk CP on the facing deliver unanticipated built the our and aligned product business, industry in closely strength leading strategies. Despite growth book of continue to frankly, is the franchise we our of service the

bulk as these largely episodic. headwinds view We

volumes in and Wet for volumes to X% X%. coal grain cars were down were week potash revenues less about grain harvest compared years. up Looking fundamentals our or look delayed averaging ahead Canadian the good. and weekly the with the weather quarter Grain per prior X,XXX significantly

our stats not were moved that about fall this move Canada, Currently, impacts from resulting volumes these crop begun versus last in to watch we any the this More and XX%. volumes The are late have similar to harvest. recently, average year pick quality, XXXX. and X-year up to will closely harvested we show of looks latest closer confident to continue size XX% in the

the recent events and around talks In their in in have slowed Upper as an emerges also and China. increase soybean territory, more shipping toll weather Midwest seen recently we’ve settlements our that U.S., have program, with positive taken the news export although U.S. trade most in

beyond. heavy the XX%. On were It over all-time delay the down year, record XX% is parties international while continue to the macro weighed as stable near-term volumes face so potash our believe our QX, we decreased understanding remain export with that the and for uncertainty ongoing potash revenues constructive, very volumes. discussions have past we’ll After we contract some between into on the and resolutions volumes for ongoing front, remain XXXX look demand

essentially volumes On volumes are some with down Canadian the coal coal X%, front, slightly supply-chain revenues were flat. while were up challenges.

volumes they was coal rebuild inventories. offset by into their U.S. this However, of power plants, increased our as our Midwest

front, products On X%. were X% were in the up up volumes and forest merchandise revenues

and We drive transloads continue optionality to create strong our space customers. utilization our through to for success service, utilizing in of network this asset

tool multi-commodity capacity our transload further Canada in transload developments new U.S. across in With and excited about expansion, the land powerful CP is low-cost in for extremely we’ve and recent an strategy and our development the Similar opportunities create available at Toronto, space made to to Vancouver extending terminals terminal our the reach. I’m unique

In scrap offset and lower with but the declined prices, we short markets, seen MMC steel lower steel, our growth volumes have space X% partially market and sand, by were the In less mills, and revenues largely and shipments scrap. partners. need steel declined by X% for line inventories, volumes, driven reduced finished frac the of from steel inbound high product our resulting from these to

Basin of the increased Permian into as of continued shipments use decline basin result sand. sand, to Frac in a

the been the help short new week, we’ve the to initiatives As work that as conference grow share the Canada. up with these line annual we on and also Marcellus of extremely growth to such with into hard here the our an I’m offset in pleased our delivering key continues coming partners. and note Bakken, development team have I’d markets next destinations

In the XX,XXX crude to growth short the our energy, rail fell and shipments plastics sequential and volumes in despite in by rail expectations over revenues contractual commitments. chemical Crude were our XX%, up quarter. of carloads portfolio, by

these also note, of to should on the of freight allowed of curtailment. damages. revenues are a resolution to transfer optimistic result count we shortfalls, rail a total are against benefit contract As did via the the I liquidated we from move Alberta mechanisms the and by that X% supportive come as offset new production an increasingly crude our to that approximately crude will government

sequentially increase a seeing American An volumes our into begin anticipation automotive, to revenues spread X% then, shippers and And growing volumes environment, widen and of we’re weak this, with were expect X%. grew to seen we’ve and up QX. North demand interest despite the

CP success Ontario Midwest. Vancouver compound, new by the and This network. at our terminal see in also growth only which is our capacity by not to in a on driven giving, the unique is across that continue auto We inland keeps gift opportunities highlighted Southern our upper

wholesale offset in X%, the the And record with intermodal up revenues in being of retail with market. mixed and Overall and volumes volumes were in by the flat. finally refrigerator saw strength We our strength being domestic, on were of results the products international in moved, side softness the the space business.

of couple demand in be me and So the savings, things, to challenging more can as there softer my tendency service the saying commoditize cost certainly grow a to for some environment, try by close really or provide. we pressures for growth let remarks a

to assured want service. reflect of railroad on value or going a we’re I the that price this We’re fall trap. the that rest to bringing to volumes not at our in say, that

we’re past, As not in sake. we’ve grow to said growth railroad going for the this

proud ahead, bring and we business team to operating sales is we and have unique selling to results The our we deliver advantages. strong and our delivered, strategy team capacity team, confidence ensure a closely environment to the marketing we opportunities available right look size to service I our any and have this benefits profitable for I’m of growth. high to pipeline our levels as incremental are with of sustainable are of and a railroad. collaborating the As volumes

I’ll to on Nadeem. that, With it pass

Nadeem Velani

record the the proactively, the and good disciplined ratio basis OR cost have we best to number that and contracts operating Tightly resources of of outcome XX.X%. and of announce protects points managing of in the structuring changing to The I’m we way. irrespective the environment At place. demand incur take the and having resources in proud and the industry. QX the team with pricing CP afternoon. right John, environments adapting volume approach, OR running the record leading decreased Thanks, when business the is all-time industry XXX

of strength our our We continue the to at precision well, extremely embedded is drive our how talent CP. margin improvement, is of model, just railroad the and in running is reflection the team a railroading which operating DNA scheduled of

as comp volume on primary of a environment. driver At from share as The Taking of is closer XXXX. was versus side, speaking be lower a QX on our The workforce year results sequentially, stock-based a at expect adjusted adapt versus we resulting continue last basis. $XX items the the was X% the down end price. the look I expense $XX changing Comp lower be down XXXX, or to end to benefits million year. usual, I’ll of to workforce an to decrease and X% few of million exchange down expense

was although some decreased expense result in-sourcing increased primarily X% million, primarily slightly million or from prices, was second well fuel of $X $XX best one-time as efficiency work. up was as some our result as maintenance, all-time perspective. of locomotive fuel of this Materials X% expense Fuel worse quarter or which a year-over-year, a a as lower

volumes, expense increase. line rent year-over-year this flat automotive and inter and expect with – item increased you intermodal would Equipment was volume to

we efficiency quarter, as of our savings fully cost the operational through managed the offset car However, actively increased associated volumes. fleet the

the asset and million line was of property $XXX as million, cost base. volume in is This driven than is expense less million, $XX or item increase an services higher others. result of support higher Depreciation increase The of $XXX by largely Purchased a quarter X% X%. an increase higher variable was taxes.

we into do head year. be down the to we As material the we anticipate on remainder expect flat to basis, any as land this a sales QX, of item not line modestly sequential through

was models, had fourth land of as primarily we as you a update quarter that was last one-time As your claim. quite moving number by year’s including a noisy a contingent pieces sizeable number a offset sales reminder,

lower $XX below decreased rate. income result as X%. line, Moving interest the $X expense million a tax effective of or interest million expense Also increased

to closer million, Rounding expect equity statement, now we quarter, income X% higher by is Other for XX.X%. the XX%. gains rate the income $XX and tax was in grew debt in EPS headwind and our losses of earlier increased primarily adjusted driven announced effective a U.S. expense As coming out the by adjusting income after translation XXXX. adjusted

Taking free of cash next slide, a look operations cash increased on result flow. strong cash to free of as and generate XX% from discipline, capital increased flow XX% we free spite at cash our the in a continue spend. increased Year-to-date

to year, While remain CapEx point compared guidance last target of slightly to same the $X.X billion. elevated is on reach we our

Our generating adjusted on basis. ROIC to are strong trailing capital of the disciplined returns approach a are investments XX.X% and an evidenced by XX-month we

shareholders. program we million X% share nearly shares On today, the that than repurchased, billion launched more to the X.X shareholder we return returning buyback we’ve October, front, last completed just $X.X

target towards times. buyback to pause natural the X repurchase delevering at leverage allow some program revisiting X.X before take range our for plan in Our the in We of a to of the brief upper X.X end to December. in came share times

You can shareholder continued strong expect returns.

double-digit as works This forward, railroading remain third growth remain quarter and year move of results our guidance year and shareholders. team’s deliver confident scheduled the in looking the fourth that. And double-digit of in will pipeline EPS I ultimately growth. and full cycle Precision our the execute, customers to the XXXX, to and mark a growth. throughout of ability through I testament we consecutive this are earnings our for opportunities, into confident quarter’s

over turn to I’ll back With that, the call Keith.

Keith Creel

reflecting comments, the on here for of bright us at and to these quarter and your today Certainly, Nadeem John. proud your results, and Thanks remains just to color planning looking the and future, the be Okay. in CP. for future

for earnings XXXX as Nadeem We’re year, – mark we’ve double-digit achieved year, confident third our our growth highlighted. growth. deliver double-digit earnings ability consecutive to the year will

profitable these both track live runway the They’re we by on the with out. day outcomes we only of railroad in day volume of to of see approach plenty sustainable, growth growth. We positive XXXX, our not disciplined catchwords, are result the railroad be in to and in words And ahead.

not We’re to short-term. the chase going

We’re for the railroad building this long-term.

strengths, continue to our work We’re our leverage customers going our and on grow. to service leverage to network

peers. to beyond, XXXX see the head we to in enable I’m will as the and our As to confident, wins and into us marketplace, more continue continue we outpace which economy

to a is with company a to a as CP, investor, opportunities an and a story. shareholders margins. got outpace by volumes, proven record unique you industry the of doing shareholder, this improve our continued as value exactly consistent enabled And that. Reward team a CP, track continued opportunities with with return and

It’s certainly questions. that, And easily one open I’ll a not compelling up with value to replicated. proposition that’s it and

Operator

UBS. from from Thank you. comes first question line Instructions] Our the [Operator Tom Wadewitz of

Your is open. line

Thomas Wadewitz

Yeah. well. side Good for afternoon. you have market I on as some the pricing and questions

growth You in temporary, early some next potash do idiosyncratic look I have be year. have same that I drivers think time, some at are you seem guess, you headwinds which and grain. to At the I Canadian probably mean, come

maybe not guidance, of weakness those into offset versus volumes of How might to you at about see or but some you going for that XXXX? reasonable we think think at than cyclical you looking cautious how growth it’s the, things how more some would and be just you I XXXX? look looking mean, – do

Keith Creel

color. where of path yet as your not we about, let to little this opportunity we’re things prepared couple at by growth, things a units; is and give I’ll Let as of optimistic business strength Tom, to comments, me not the talked bit we the – our Bottom see point. provide intermodal an we share, what a automotive a different to all things all John self-help I’m driven say, – unique continue not in point, our shared, micro-level But to – at we’re across we franchise. we certainly upfront clear guidance and make future, see what of very line, initiatives, own a the compelling; prepared

I I To at point, last again. at retire We we I and even an profound had hope my move CP, only atrocious the impact had and if quarter railway year-over-year our occur a some life able that not to that never look compare, experience your have this freight first business, family, hope things at in a of CP to actually us, that in that our for our emotional to And on but also an I had we’re amount impact Western Corridor. huge year.

some opportunity we us That well as compare humbles clear other freight, to on a from an aside, our potash, micro-issues see grain, standpoint, mother us apples, more those drive more more unless drive up, they to earnings revenue and obviously, and and we as brings apples which as to nature believe of will move knees, growth.

year, to second what’s of our half sort led became half has the the the industry, on And us our became in that if in Again, countercyclical a to that something things first be Tom, the drivers as of can’t or upside we micro-issues like well, like half. of represents will, that. drought I those they control disappear the second sort and believe headwinds

So we’re RTM XXXX. positive and to in obviously, revenue see again question, strength and long your and industry-leading growth drive very answer we earnings optimistic, to growth, ability

Thomas Wadewitz

little That’s in Okay. backdrop, second great. Yeah, increased competition helpful. to a how pricing bit. cyclical and we would heat competition. against be year should competitive think the can price next dynamic how you more that’s you. just just challenging wanted Thank Maybe from about think question and And see up about really headwind I a

Nadeem Velani

same more expect the of from CP. You should

it when very We’re comes disciplined to price.

clear range; the closer historically, From is volatility be to has Who standpoint, down so it, you going what price X that to allow X There X, up always We’re be. is in number on ourselves closer much XXXX the if markets XXXX. want commoditized. potential a X. itself put we’ve to is to to a not going knows to to said up markets

But I competition. there always can been tell this, you

its unique provide unique We’re of a strength I competition. can’t the competitive that’s operating blessed value into for price and a take replicate. any that with in the team and franchise has very best very that And dynamic not afraid industry. my will that own We’ve got capacity proposition customer

The and competitive not network best cost want place rate. again in our we We’ve the our for show will play market. a we the place one business. the goes compete If the to sense best to of can the if got railway, the it not we go discipline. makes market market and structures that If we’ve this healthy for shown we or a to options have for that’s sets

not know commoditized. going We I if a And going line is. We’re get not finish this the race to into to It’s race to our where is, the our we you’re again, to of started, not our be or where bottom bottom. represent or all what it. value allow customers know in bottom I’ll this we present team that we’re to and railway a not

John Brooks

I That can’t anything add pretty Tom, good. more was that. to

Operator

of Our from next Markets. Capital BMO Fadi question from the Chamoun line comes

line open. Your is

Fadi Chamoun

quickly, crude-by-rail the for given of Thank [borders John, liquidated for the right be what up you’ve indicated, ramp sequentially, you the and spread Okay. [ph]? kind to would kind like you. out] damages Maybe, what consider that volume of to

John Brooks

Yeah.

range. that’s up like starting into have right to interesting, now it’s So moved sweet-spot. Fadi, And $XX, hit the that spreads $XX

might these to what going I they’re more that resolved feeling against be the is move to offset there as calling the a, [SPA] momentum barrels and that indicative I people program comfortable rail. contracts think curtailment a I [ph] more get an it and think are by of actually think and

QX. Look, to the what that sight have no at here our just, dynamic be we looking loads about up that to XXXX I and did QX specifically in a to our area. level contracts, it. – a additional doubt And I we XXXX uptick, is with customers expect crude been XX,XXX that for what of it’s or been line dynamic space has realistic. I’m There

it. I right But now view certainly, than not. We’re optimism not more on counting

Fadi Chamoun

the from you’ve network Okay. on. past And to converting little maybe obviously, a so success, a trucking rail like your ask and lot from of Tom’s in question had traffic differently,

softer you good of the versus Now, environment, years? you’ve the what’s in little maybe Is we sounds like ahead last have bit more It of diminished a feel market. about you. that capacity opportunity seen in two, little what bit three

occurring help next just like compared of has can the you of us couple look the last year to kind years? what may or understand If two what been

John Brooks

Yeah.

like characterize those, grain, end bulk that – got give our maybe as this. strength beyond. the gives potash, each us given it So, We’ve again, the one, looks XXXX frankly, tailwind I day, franchise, And strong. Fadi, the comfort, fundamentals some and I a those of into that think me at look coal, I’d number of because of

the talking industrial as railroad a volumes think I in there, But some other been some customers, that certainly forward. of look there think is, to Some in sand us of some about of our frac unique sectors, inland differentiator are the for that merchandise the no us other challenges, out I sales of there certainly that replicate. able to the and remain I areas, given question tool, broad-base is marks the we’ve terms capacity gives

Over-the-road compound, of this developed some potential leverage is capacity about. sort talked transload seen but with that and some unique thing, our of that what in that and But the is to us looks attract like sort they Vancouver comfort. something those what we’ve land begin our the for beyond the you’ve with of that the to ability gives to just XXXX sticky to that customers make that have with them one opportunities is us we’ve of

that outpacing the The I face incremental the to that ability in automotive our think to have continue in And out all headwinds. us into frankly, XXXX, accords I mousetraps look share and in I going peers because as, create see us that is bring in space, there XXXX just opportunity unique as our industry area. going sector to is and is an models to we significantly area and by industry the that,

metropolitan space, and it’s this across go these ability us Canada transload major I into the to I area hubs the talked U.S. Another about for mentioned here in and that have

at able these to land franchise. that’s the low attract cost, very have customers our to We developable a multi-commodity to be

But And trains and and a build low and X,XXX our that’s lot business on add to out high strong as business. that doubles margin really of foot that for manifest carload us cost. is singles to

Fadi Chamoun

Great. Thank you.

Operator

Our comes Citi. from Wetherbee next question of Chris from line the

open. is line Your

Christian Wetherbee

wanted very back Hey, pick comment. great. that maybe much. up on to I Thanks crude-by-rail

I like think with XX,XXX could in through that volumes there action is government expectation you’re you better looks move and XQ certainly you XXXX, as targeting here. see then into It the some taking the fourth quarter.

think do What of as or to capacity your you quarterly could a do a you without is on what you we you XXXX? get effort about think basis lot think

John Brooks

so, during we’ve think, do So, crude-by-rail our last there the is there. XX,XXX I’m all to get Is the rate? there bandwidth we to given run X,XXX could you I the run peak or I rate I back, renaissance. hesitant level get look Chris, another Yeah, to of sort call a I to think back, level, had. look was little that, XX,XXX that the variability

to still This on to in dunk. Now, that’s get over people, mobile the pretty to good terms capacity, rate, look, slam that it’s number. resources not a I a the But we sustained hurdles. level a of go think have some

Nadeem Velani

in point XXXX growth But our optimism it’s is upside optimism in fueling fourth the potential even or that our think out quarter. for to I not critical on the on

Christian Wetherbee

Okay.

you bit think you performance sense very to helpful. can where you out will a When a talked XXXX, that incremental. little us think XQ. of be are? give Obviously, Nadeem, XQ That’s about little you of strong. headcount very, in was you So the ratio operating very bit in

how you of potential us of Could a when of about heads into the growth XXXX? play sort you’re give sense that, thinking

Nadeem Velani

going terms we typically, we’re one-for-one not Sure. volumes. a headcount, I in when mean, of guided well, to

for a into you New view some giving volume guide you sense I’d without full-year potentially, to early With our of that, a that And slightly looking XXXX. But, see volume into that we of to get Year. talk get the at I flat into up. that you’re think we’ll XXXX, say, to the little headcount growth again, guidance before So positives. it’s a for of our

be adding rest on growth, non-C&E operating on opposed by a existing side. cars just it to to huge take bring leverage as the high amount on line, of the to that we’ll take So assured to growth, able that and bottom adding headcount the traffic

Christian Wetherbee

Okay, helpful. much. very Thank you appreciate I it.

Keith Creel

Thanks, Chris.

Operator

question Our from line Walter the comes Markets. of from next Capital Spracklin RBC

line is open. Your

Walter Spracklin

Yeah, thanks much. everyone. afternoon, very Good

facilities back the So, Coquitlam, to had inland of into you’ve [ph]. transload, your of we some mentioned there, first, in some come you John, success if selling [Ford]

you that out. Coquitlam half to sold Just as did inland those as other kind opportunity Can you facilities? update us? overall you can the with your are you’re roll like bigger? How Coquitlam in those way heard other And revenue kind you well? you And Coquitlam, these it the to at again, type sounds quantify, in you looking in benchmark of got same in of quickly update for see Can as whether or of size you’ve commentary, could transload? opportunities I tying customers the

John Brooks

half the is sold. So, other

in other auto pleased materialized stuffing we’re us, perspective, for including for property and product not for very I only So see has Again, not terms quite future with transloading strategic export, intermodal grain. but it us. forest only for an how it’s been in Vancouver a plastics what of but opportunities, from

terms think, I literally iceberg first if of that we’re tip the of phase property. in development of

terms pinpointed what develop sort like I to all – this, in we’ve mechanism in able available the is cost. on land use at locations think, of to I but places I is our low there we’ve the Montreal, got that tell if good footprint go you can’t could a a that look look good today, property. give been of a to quantum, I footprint what think, you a you can places at across just commodities our is lot you of ready of if at do like that in a sort of Edmonton, Walter, sort

you’ll I lot in have locations. synergies think, we think these And see a only to looking is particular opportunities, currently that that mousetraps that in customer trucking alternatives in of out there, today. at they’re And to operating there they’re also of those optionality, I number consolidate customers these regions us areas, for are can but a for give rail begin we that again not addition operations looking

Keith Creel

sight Yeah, we see yes, they’re XXXX currently just reasonable they’re Walter, X that possibilities, and not I’d that to for we’re of probabilities. of on X these working line say, in more XXXX

Walter Spracklin

new I easy a an are I’m that that with tandem lot look looking of on comps seeing you at So coming of mentioning. XXXX, the in when to example, as kind business

flat Crude, as that mentioned could in if environment, under guidance, grain my not math tough giving facilities. which the of mentioned Yang volume to don’t those all add I and else add You growth. bps were transload well, XXX the looking potentially these we’re in XXXX – with bring at up likely Is that you’re level that business intermodal, Clearly, new generally a level? all up could and that but you in equal, is terms Or kind something in even XXXX? you you Ming there and those turn of that XXXX. got potash, will in this

Keith Creel

stretch, that’s I’m that XXX, lay to our goal going achieve. and my to out think, to I Walter, a team,

but yet. initiatives in me say, X.X% base though, I look comfort look maybe more is I we as into quite push we’ve we level. X%, in that there year of think, XXXX, that that delivered your further me point a next terms as It’s into would give is guidance right – any the don’t

Walter Spracklin

Sounds good.

you. for Thank very question. much taking Okay. Thank you

Keith Creel

Thank you, Walter.

Operator

of line comes Research. Group question Wolfe from Scott the from next Our

open. Your line is

Scott Group

Hey, guys. thanks. afternoon, Good

Keith Creel

Hey, Scott.

Scott Group

down RTM employee bit you’re Can look granular on us quarter fourth OR specifically give at about the that help a standpoint? thinking of more how was us maybe And then per in a third? comp from an you

Keith Creel

Scott, we but Is believe the RTM November Yes. reverse an little speak at it quarter fundamentals, for expect initiatives the is, bit it we and fourth bit line outcome. ongoing there that’s probably see quarter, Nadeem at sight we’ve that hole of Yes. potential per the those line of that I got sort of some sight be very to We’ve us. employee, upside? climb bit obviously in flattish. I third quarter, let shoots got green to be started But less? December, prudent we see to little what of a other and will a A looking what a a and that potash, think be of, grain, October, out I’ll it soft. basis land of little optimism but off a comp Well, to of of has

over And better, the stock-based what depending do the that provide for would standpoint, against or Nadeem, expect would very in the to OR a in not I brings fourth last some bottom certainly number? line being possible place little want I see of year improvement, comp for of on you on but from working us the productivity I a the which XX maybe deterioration, art year sale. where tough comp does us a an that not expect land around OR color OR to quarter.

Nadeem Velani

down Incentive slightly, just the the Scott, comp comp year-over-year that $X.XX. first quarter employee, on so EPS was helps our during down and by stock Yeah, obviously, our per gone is that quarter $X.XX. quarter, price about that the about has overall benefitted

year-over-year. overall that per employee the So helps comp

Scott Group

And would November, Keith, that specific something you do recovery December of that industry? think broadly you? to that Or sort that’s you like in for expect you the see,

Keith Creel

industry experiencing. to say challenges, same experiencing the micro sequential I’d some of obviously, No, we is to we’re us unique see growth. again, that’s But the what’s CP. Well,

out on We’ll side We’re to versus the quarter optimistic. the close crude year. get growth third

will uncertainty some than in November a see are which potash optimistic benefitted anticipate the this in of we’ll view. up more and movement We’re December a we resolved market, with that clear we get will bearish in, perhaps, currently from and uniquely bit very India

Scott Group

guys. you, Thank helpful. That’s Sorry.

Nadeem Velani

Scott, early December in do into get a long – in winter timeframe. get so the as mindful just as you very that being our have don’t just that network, November, winter obviously mindful we

Scott Group

Thank guys. makes That sense. you,

Nadeem Velani

Scott. Thanks,

Keith Creel

Thanks, Scott.

Operator

from Your of the next JPMorgan. comes question line Brian from Ossenbeck

is line Your open.

Brian Ossenbeck

Good afternoon. Thanks taking question. for my

Just a it you wanted driver been got to for really, that there. talk because settlement about exposure it this John maybe flu. come that decent are a they’re dealing – It and with just Last to guess, big a year, of like trying little pretty is back with inventories mentioned I potash, has high; risk Can looks quick extending the some we’ve longer? bit the price. to some have you swine export

Keith so it I’d back where that pushed it here, seem moving a point lot appreciate possibility into it. a just parts, bit pops then a maybe but sounds can that does finer it that. like like you maybe So XXXX. gets if that just But it have expectation of you on said put don’t

Nadeem Velani

resolved, out, John before aspirations the no Yeah, more our provides that I the the share get but India. have let finer me for focused expectations will reasons mine. clarify I is point, China piece optimism about on you your sentiment or pointed China.

John Brooks

Yeah.

X% been potash So has mean, Brian, alone a I RTM headwind. about

us. you’re right, significant has it fairly So for been

to We’re develops. certainly as this and close K+S staying very Canpotex

settle, comfort. market XX crossed, think provide that out little I again I is let’s in optimism anything that price contract, days. that to the overall, be there XX the that India will the I’m days we’ll more hoping next is but first call And this discovery, fingers will there – think and optimistically, if a that and if give the that

or December, ramp into banking of it volumes. not benefit think is we out whether out and point, to Now to could some not opportunity realistic be that we we’re those normalized but then that could be more can see the there could up

that said, don’t remain K+S we I pretty pretty forget, model, the production. XXXX being our up we as have expectations quickly. pretty, the normalize think volumes That And that to accustomed we’ve out do strong become that ramp to will continuing build

them part to I think its with jump So, decent we’re pretty going a this. see, of to

Nadeem Velani

a not catastrophic challenges with move And given in we had that Yeah. of could market to the our position the derailment. first there normal this the demand year, in we that unique quarter our were we and not was finally,

Brian Ossenbeck

you the this in the to material Is to are of give million mover those quarter. a it cover? $XX damages. about Got this Maybe freight it. for what follow-up as expecting like it guess, and this Thanks wonder put kind cost contract you’re liquidated for was mentioned transferring revenue think here or on on John, speed expect be XQ as But hopefully Nadeem, X% if of if and, in ramp-up from – a sounds the the I structure just to this more that this volumes of quicker around to could a some you come you all could sense I I this event in a lack guess, through that. and growth, the just in on one-and-done XQ? quarter speed? context going you government. numbers based of crude us type

John Brooks

liquidated which service the we you that did. Well, in Brian, resources the the premises to to the the to obviously, capacity business, damages have protect

towards cetera, So move that taking that of business traffic that capital that that some put not et to whether headcounts, aside consume set traffic it’s we investments, other on it’s or would capacity. in

and expenses, associated assets with of are with expense maintenance and there locomotives terms there’s there’s people, forth. with it, in So with expenses so expenses network

I’m business, that. liquidated to ratio the that it characterize on associated an but safe I’d based too the it say you to So operating on give going of damages. with there are not premise margin on that expenses

Brian Ossenbeck

Okay. Got time. Thanks for your it.

John Brooks

Brian. Thanks,

Operator

Our Benoit next question comes from Poirier the line Desjardins. of from

line is Your open.

Benoit Poirier

the CP on for represent between issues the Montreal, wondering, you expansion and And also is ports Yes. the update very I volume in a discuss good opportunity if Thank give dynamics whether and was about the near back in could little Eastern Western opposed Montreal. afternoon. with an Vancouver much, Thank ports the you trade about of China? it [ph] weaker you. the an the if Could [Contracur] to you medium-term? as bit

Keith Creel

some we’re more of to of as we’ve blank trade, Coast a definitely issue. what it’s and Ben, the certainly, seeing terms of the at impacts West seen think more, relative in I least sailings

have volumes there know in staying it’s to. Coast terms East an well of we’re you close fairly in opportunity that what, Our [Contracur] hung [ph],

port We relationships that Montreal with to have critical continue also we the manage.

an strategy, right – will our opportunity what’s to customers all going assured it with over our Eastern we file, partners and on and if be Frankly, there to Montreal. maximizing So at rest now, we’re that stay we’re for it. that focusing close view it existing presents

Benoit Poirier

CapEx, XXXX. question second guidance direction we I this is of in terms for assume recovery would let’s it understand to the CapEx. my XXXX, lower the the fair a there And look CapEx? Okay. be do $X.X say there for for expected, year. at just Obviously, be stable you as don’t if Or see no Nadeem for flexibility volume of have some billion But we to kind if Nadeem? a, would

Nadeem Velani

the to, just basic cars Ben, have year, that. a hopper our do little CapEx that Day, years, specific XXXX. about the the kind we one-item And so $XXX million our of maintenance highlighted few at of is a $X.X when we investments million so least year-ago CapEx had capital range a a of that very committed bulk a over few reminder, so grain the over on more $XXX for a we and billion into life Analyst we on of we’ve large million what $XXX beyond side, to the commitments

to. million a doing locomotive So about plus a we’re some committed that $XXX year modernizations we’ve

So when all there limited is flexibility. somewhat you put it together,

So you $XXX me take to volumes – you’re next year, we million CapEx if be were could down that significantly going to down to say to down are potentially.

going we’re of to to that Keith think some year. that as we pointed not We’re view, have next positive

and level terms of So for that good cash think flow mean billion in about us free I a XXXX number that to into around is forward. $X.X what being think could going

see off, I’ll timeframe, as that that could the as those potential year-over-year roll number just to we hopper you’ll that XXXX out as do the we to we drift off and investments lower PTC the $X.X some that point said roll come beyond not that that some significant cars CapEx, pretty start start down years and having billion are Now in seeing we’ve rolls off see outer of CapEx our beyond. have those

Benoit Poirier

very Okay. Nadeem. much. you great Thank color, That’s

Nadeem Velani

Thanks, Benoit.

Operator

from Oglenski question Barclays. comes Your the line of next Brandon from

open. is line Your

Brandon Oglenski

repeating you And important, think for capacity in this but last the now. at afternoon, because questions years primary competition about some your talking look back. skeptical taking I capital question. They of well, that good could growth, guys say, Thanks everyone. on think constraints at XXXX the and my seems were I Hey, and investor it’s as risk went through quarter X wins Canada well. contract It intermodal some a they’re

to innovative on is I more of for year? see So of simply doing incremental that to opposed you customers a when guys of you that when you just How freight the every coming. John much what X% guess off with Keith, guys or up footprint that as jump about growth are talk CP X.X% your comes to that

Keith Creel

is Brandon, I’ll it bottom it. let John of provide the all color line, about

John Brooks

I incremental the headwinds the saw we opportunities present are these provide opportunity next in to harvest Yeah. Look, a that I nice think base. mean, going delayed again bulks year, Brandon the for unique

mid again, initiative In mostly going to details are bank, going and spaces. to tailwind again, all chunk give to those good Yang and a addition come us wins we’ve the on, of a that and that early, without are are that, got in Ming that

opportunities third real competitor. These not value is in our unique work a then, is on these And are no chunk are bank, just but competing us, a a of the to that, continue also in they specific customers think, that estate to generate long our we’re they our we using renewal are for property. versus we tools, that head-to-head but next this to contract that we’re there have with long-term with only, opportunities unique year, these targeting I by though

zero-sum-game is for be ports. think the not the it I come to is Rupert thing to Prince other business Canadian be remember Vancouver, it come to a

it’s the all both bottom But X X bit, not of to end the yes. the either. now in cost international is railroads compelling lines service is for mix well. offering again, are other railroads advantage a varying yes. a intermodal get and represents to But a share, that is enjoy into growth advantage in not do it’s because which not space there the for Canadian growth, of The of both both changing winning That’s the at railroads intermodal There and not again, Midwest. the changing day, service a zero-sum-game that now ports is steamship That’s dynamic for line, change. degrees space

Nadeem Velani

in a competitor, tremendous CP, directly really That is and successive it growth nothing I but Minneapolis an our for Minneapolis. unique in expect do market be And a the in Brandon, terms enjoying of had had engine exports ton space, point, there. continued to intermodal to have facility only of that We’ve with been engine, it’s and that transload to be our development our a us and Canadian international growth space, that’s it’s strong and competitive again, opportunity in Shoreham to opportunities to with also of big a our competitor. we’ve not not we’re in a here that out

Keith Creel

partners our And shorter from our our terminals, in the from the we routes carefully, our of that will we our going they’re both our Montreal. a grow the is from benefit them to to to allow win-win of to customers get service, Vancouver Chicago, with value choose to value day the going of in At of to Vancouver us. marketplace, franchise. which partners have best the for capacity to Toronto, the end The the Vancouver in the service their markets is marketplace, which

shifts, end of our option we not at lower the wells, That the that’s there, thesis confident their the they we’re take feel going the a day experienced but out will by from what product has the own say, routes it which what regardless not not the can on grow which it’s because to efficient proposition, stocked that competitive their and change to in ultimately they’ve it. confident to the at marketplace done and reliable very what share we most them with benefit route compelling changed, quickest and we’ve unique will marketplace, allow value of

Brandon Oglenski

your us dividend buyback your the on leverage buyback the I mean, walking I tension future? constructive quarter, – appreciate from focus the Nadeem, and target again over or this does thorough different in working. is away on answer. that It sounds a remind by potentially guess a like the And profile

Nadeem Velani

too wouldn’t read much that. I into No,

X are we target times is times. to our X.X – So leverage

the our end we our aggressive the generate allocation, – currency very to cash terms by a the increasing lot are and our back-end years. year volatility in very the dollar say does is dollar we’ve of debt in loaded, get last the that part of align rationale few given been I’d in capital kind it predominantly Canadian buyback of impacted that’s seen No, We our we’ve U.S. with dividend. of of the

is of level. XX% closer target ratio payout Our to kind the to XX%

at to look to forward shareholders. cash balanced we going terms doing how going we’re in returning of So be of

going dividends big a lot well. think, have it, of to to grow a as share we room think, are repurchases of be part our I I and

So reminder, April-May we typically AGM timeframe. do that our in at that

So on the and can issue get it’s too of it, into the further updates we you changed don’t to expect if read buyback, much nothing timing the of a more year. end

Brandon Oglenski

you. Thank right. All

Nadeem Velani

Thanks.

Operator

Our Credit next Landry comes the question line from Suisse. Allison from of

line Your open. is

Allison Landry

Thanks. Good afternoon.

and How but in any of competitor in strategic to franchise. specifically their growth standpoint thinking about this support the network might the from the is market? recently consider do main maybe some that into intermodal capital on folded and your future longer-term and at tuck-in allocation, about you one to has acquisitions increase Another you something think point intermodal that the a penetration

Keith Creel

say business accretive the I’d something not we look business, over think, today, today. every and that what consider don’t not at it’s certainly I we’re to guess, all not is, that it I the opportunity be that Allison, might but we’re in trucking

We’re industry volume. understand if on ways focused expertise, having talked of at you to we’ve that mile capital build our without other that mile, partners business being understand going think, focused good innovation expertise first our about And look that that the lot – that what last the we forward there out I spend in trucking a space partnering the organic the to that there’s and initiatives deeply. is really better and There strategically the on to to wanting to engine. of really some as growth develop with

Nadeem Velani

to follow… more And

Allison Landry

Okay. That’s all…

Nadeem Velani

some Add a space on sitting we’re in. that, that color Yeah. certainly to that still more follow not

Allison Landry

Right.

think peak that’s on sort what mentioned in how out. maybe of then, modest expectations But you’re Okay. terms season in or just playing an are commentary you. Thank you seeing of I any be thoughts inventory the And standpoint indications Or of down? level from starting offer are those come would seeing that you you any could to helpful. that, that – terms

Nadeem Velani

of read is, quite it’s generally as markets performing frankly robust the low, Allison, unemployment on border, is the like consumer spending we is tough a both sides are know well.

of for or has the the things our maybe But a retail normal terms expecting space have picked spaces well last frankly, certainly, the in to weeks. we’re that’s And transload in big us. in held continue I up the have peak not fall here. domestic business in few have big I’m we past. going over that optimistic as been in seen So, those pretty think, fairly

Operator

question Our from Alliger comes line next from Goldman of Jordan Sachs. the

line Your open. is

Jordan Alliger

I to the that you heard just want I fourth fourth Yeah. Hi. quarter? I just in right you in operating be ratio on sure land quarter. what make the make of terms flat clarify I comment year to would with in even sale about things that want should sure, expected last the

think to, make you’re that’s wanted but I to sure. I referring what

Nadeem Velani

correct. That’s

Jordan Alliger

a as question, you’ve hold-off of of you set. I intermodal the know opportunities Okay. the trade I’m wondering you just a but sort have And all just on global wondering while, given impacted what I know et opportunity of the be international second a seeing I’m people touched and on decisions issues set, what on get you – to unique front, just cetera, lot then terms have is opportunity at is just in do? to pipeline may the Thanks.

Nadeem Velani

across with have took Allison’s talking point, the fall, I good bit. certainly place last seen to subside U.S. Canada? and the in seen Yes, Well, think, that was we ahead an around little create a pull is, that we’ve inventory the question volume I just

But resolved, season. a the I we resolutions a lot area, cautious We’re think, of peak do that until we’re to seeing in these West. continues be fall trade of what a bit get little ultimately yeah,

sort have one that steamship can frankly, in of muted We blank going of after And and watch But some have keeping continue been sailings outside seen with to and other to close. create a That’s it’s line just volumes some that we’re unique business. that win lines. as trying our of steamship are there some some additional areas of see. attack opportunities space

Operator

Shanker the Morgan Our comes Ravi next Stanley. from from question line of

Your line is open.

Ravi Shanker

you U.S. evening, of bulk your that Good you kind Chicago can share I such. rails acknowledge from intermodal more that How the to do innings follow shorter Do of think ports being seeing the some you Canadian mentioned we do are of everyone. up the starting and openly of international Or coming volume has early think shift? you’re the we distance, keeps share And a happened If Vancouver ports. you to that U.S. stabilize the that in shifts now are way? question, think Thanks. and here?

Keith Creel

have benefited Well, think yeah, the in that I Vancouver process.

up value the some I base shifted real [low] terms overall, proposition down, the to we think, we’re think, U.S. that might value Vancouver. [ph] in muted Chicago market or be what ongoing tell of is ports targeting, whether you, between I Minneapolis so the I market. of it’d it’s think be into into can the of has the that an

Ravi Shanker

it. at you more becomes X-year opportunity? a as think, still you Or Okay. And do for saying crude-by-rail Got see But volumes a encouraging moving, longer-term of the follow-up are we getting exception the or guys? it’s know crude-by-rail DRU opportunity X- crude-by-rail, to pretty looking you just that curtailments. are I close for with the a with on this to window to you

Keith Creel

railroad it will destinations optionality on a probability think of our our that with that customers. We fruition. franchise equally is from that, we to benefit might we which built-in the to for DRU based yes. it’s uniquely offer probability be And serve we best X is serve, But will with come again, Hardisty, would think which this uniquely built. high of and positioned X, guess, strengths, to degree when there to Edmonton, a Yes pipelines be

John Brooks

on realistically Yeah, any I build a we still that X years see me opportunity to to opportunity I new comments like see this don’t feels pipeline don’t before just to into Keith’s ago – X-year X- imminent play coming pipes. like X-year

Operator

the from question of Justin line next Long Our Stephens. comes from

open. Your line is

Justin Long

that company-specific know Thanks gave and follow the the maybe look revenue the for would opportunity wanted the an I about kind specific, XXXX? are we’ve we kind next you business, on going get volume as your lot just think Nadeem, the on cost kind in just opportunities up. improvements opportunity I to highlight flattish – cost of up for slightly know you a to anything But about into there to and of initial equation? talked good forward, year, of company of afternoon. is or cost cost side headcount Wanted take

Nadeem Velani

couple A we’ll of mean, it January. I would out. point in I get into things

a QX had that catastrophic amount that a We easy have in casualty and very given difficult very had, huge of incident winter comp a costs. we

rates end So, headwind. how a certainly, that’s depending the a the headwinds QX. be in year, be of bit certainly, pension but the of of tailwind at could interest to I’d settle pension say some on could us a

certainly, what what view, to shown And could from growing. when that, we slightly a point Beyond do are of are leverage shown we’ve when quarter, do this we’ve volumes we cost in terms flat of control down. operating volumes can

in is DNA improve very it our So, that focused we’re our on. cost. is It to something

drive one to earnings the or another. way going We’re

out a seeing and organization and costs not real about an constructive potential. to talking while terms doing an compromising the about cost my When you’re of do service. it takeout. know or doing in of in safety execution take You’re you’re boss it of way expectation And talking continuing CP, has our I what as we not

side on the throughput, the and locomotive on what to overall trains; fluidity. Investor say, a fuel highlighted items initiatives means place, to benefits to So the modernization from overall a doing network that the to at side, we loading year all we of of our what get the efficiency, grain the side what both have ago, Day means that that and do of what grain our we’re in number the cars means unloading on to we that continue and as new some our capacity liability, density the the and overall

put the that’s of tied productivity that Process drive down that some see we’ve initiatives have technology that So the we’re helped side other that Robotic whether direct capital have do on opportunities side. Automation doing investment that RPA, on our to, place, in we’ll to that’s we we things continue headcount

to and I we we industry taken this could at mean, initiatives. expect best OR other down So, we’ve with to go continue. length that for Suffice quarter to say, on our

Justin Long

maybe in the through year, any stay they of on where the just like pension, initial are line to look today on in headwind pension Great. end follow And, rates That’s helpful. with that Nadeem, if up what could take XXXX?

Nadeem Velani

service line. that’s that’s line seen that cost, There is current say. above it. to then away numbers setting elements that don’t our And costs, It’s service benefited the months to from. stone. the you we’ve in is X recovery in based early little on from we’ve want the There our two there’s below a the I to give something

in say, to overall to treasuries assumption in just now. So, there Justin, of let is let’s to bit and right such an expense full tuned stay It’s – there set volatility when based just me something on January. a October up

Maeghan Albiston

volatile give rate building is basis the there. different even to the happy around offline just out by really last discount we’ve like. so to that, in you points a after help you you But scenarios couple Justin, a seen on bounce the a XX environment model week, that, sense, if call

Operator

America from comes of Bank Ken from the last Our of question Merrill Lynch. Hoexter line

Your open. line is

Ken Hoexter

overall given in environment. you flat as are on team, to on you into But question adding to follow Or cost resources. in your cost Justin’s asked first and the John resources? growth. maybe are now you more next job just look specifically, at now thoughts your doing of growth volumes out? looking you maybe terms take the like? I Chris a employees great on shifting What and year, Are double-digit about there, Hey, know, employee but

Keith Creel

add people that. take Yeah, our are. more and essentially, expectations started started training. and you color. then, we me to let and adjust adjust for unique But potential Let that’s adjust relative own Nadeem, what back hiring something we a to adjust Ken, I’ll We environment the locomotives July. saw softening in And

the get a time We some back. some do did when opportunities things now comes we some do with engineer than get bit people And people to unique to us normally prepare we some people longer upfront. back bounce seat to demand training to will carried in would things to have the qualified, that more

but got are furloughs we resources. to It’s We’ve And metrics very weekly our to We’ve pay through And demand god we attention constantly things. do, our certainly, on relative want our our to gone do. adjust metrics. those at close something to basis. not it’s we’re that a that responsibility looking

So it’s week doing in week out. part and parcel of what we’re and

soft shift up any just some got You the looking won’t review saying, from monumental And woken in the environment, announcement not we’re to and make going headcount. forward, we mirror. It’s us we’ve in major business. way our a going hear we’ve run well, realized

Ken Hoexter

I on. Nadeem thought to that were Okay. I’m you add sorry. have going

Keith Creel

Nadeem…

Ken Hoexter

yeah. Yeah,

Nadeem Velani

add not how sure other I can a culture I’m Yeah. than highlighted and much team. as that we more we the operate

isn’t model something John this a financial that weekly on the a our where spreadsheet team sales in with or business operating and have, just we has interactions something with closely that The cetera, working on we basis. of working partners, sit kind on closely is team, something. with room that this a So marketing we do side, et his the

to And we’ve Keith’s And expect point, of been just should is this. us. something that ahead you this from

we position that amount QX next are go a as where of huge year, sit in go to there we So resources to into we meet as have into add we to a not and demand. we’re going the

have We that have fast. can if that back them locomotives we the we to absolutely, put and out these into rotation, ability storage move of ongoing. need And take we and conversations

to, furloughs that If need quickly. very adjust to spoke can manage Keith we those that we

So, we’re that Sunday. hard levels. our not build Easter to for compromise leading church going the going worked we’re to certainly industry to not to we’ve But service get

can balancing down. both it’s on it’s both at quickly having so, costs. very resource good or resource And and we the the we adapt service are that And up very ends, something to and feel we whether

Ken Hoexter

that do you appreciate I raising that something won’t Is conversation my talking seeing there chasing And just just real it. that. switching? maybe that and and not something preempting and just, contract if more increased you’re Keith, that heating that’s given quick, you your or this squeeze general or can you I it? frequently times about just competition think in the mentioned business follow-up up you what peer X I recent would have you efficiency you’re in are the expect, during Is where

Keith Creel

people way be know this just it’s business in making that a is we restating true Yeah, long-term we run to and basis. believe what right to more at sure sustainable the philosophically clearly all. understand and Yeah, not

Ken Hoexter

Thanks. right. appreciate All time. I the

Keith Creel

Ken. Thanks,

Operator

back there this And will Mr. questions no further the Creel turn are time. call I at over to for remarks. closing

Keith Creel

hope us when view responsibly equipped sentiment the manage same we proven when away you. for that people This to and thank responsibly have Thank headwinds, walk Well, and Okay. they the have I after we’re currently questions, and is robust have. manage this we tailwinds, we that today. with you through. discussion, certainly, certainly joining team going which

and our the employees shareholders, benefit obviously, For our profitable, sustainable, our customers, all from. long run, that results financial long-term

going expect line year and earnings us fourth that up is the our growth with forward which encouraging a growth XXXX strong, in earnings, close set quarter our January. RTM leading to we well beyond. of in We to to in said, With performance in very guidance, fourth results and discussing as industry look as for XXXX

Operator

today’s this call. concludes conference And

now disconnect. You may

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