Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F | Form 40-F X |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes | No X |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes | No X |
Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes | No X |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
1. |
CN Investor Fact Book – 2014 Update
|
Except where otherwise indicated, all financial information reflected in this document is expressed in Canadian dollars and determined on the basis of United States generally accepted accounting principles (U.S. GAAP). All share and per share data presented herein reflect the impact of the November 2013 stock split.
Revenues by commodity group presented herein reflect the impact of the 2014 reclassification of Other revenues. In order to better represent rail freight and related revenues within the commodity groups and to maintain non-rail services that support CN’s rail business within Other revenues, certain other revenues were reclassified to the commodity groups within rail freight revenues. Revenues earned from trucking intermodal goods were reclassified from Other revenues to the Intermodal commodity group and services that relate to the movement of rail freight were reclassified from Other revenues to the related commodity groups. The 2011, 2012, and 2013 figures have been reclassified in order to be consistent with the 2014 presentation. This change had no impact on the Company’s previously reported results of operations as total revenues remains unchanged.
The reader is advised to read all information provided in this document in conjunction with the Company’s audited annual and unaudited interim Consolidated Financial Statements and Notes thereto as well as Management’s Discussion and Analysis filed on SEDAR and EDGAR and posted on the Company’s website (www.cn.ca).
This document contains forward-looking statements. The Company cautions that, by their nature, forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and assumptions.
|
$ in millions, except per share data, or unless otherwise indicated
|
2010
|
2011
|
2012
|
2013
|
|||||||||||||
Financial results
|
|||||||||||||||||
Revenues
|
$
|
8,297
|
$
|
9,028
|
$
|
9,920
|
$
|
10,575
|
|||||||||
Operating income
|
3,024
|
3,296
|
3,685
|
3,873
|
|||||||||||||
Adjusted net income*
|
1,973
|
2,194
|
2,456
|
2,582
|
|||||||||||||
Adjusted diluted earnings per share*
|
2.10
|
2.41
|
2.81
|
3.06
|
|||||||||||||
Weighted-average number of diluted share (millions)
|
940.3
|
908.9
|
875.4
|
846.1
|
|||||||||||||
Financial ratios
|
|||||||||||||||||
Operating ratio (%)
|
63.6
|
63.5
|
62.9
|
63.4
|
|||||||||||||
Debt-to-total capitalization (%)
|
35.0
|
38.1
|
38.5
|
37.7
|
|||||||||||||
Other information
|
|||||||||||||||||
Dividend per share
|
$
|
0.54
|
$
|
0.65
|
$
|
0.75
|
$
|
0.86
|
|||||||||
Net capital expenditures
|
1,586
|
1,625
|
1,731
|
1,973
|
|||||||||||||
Free cash flow*
|
1,616
|
1,746
|
1,661
|
1,623
|
|||||||||||||
* See Appendix for a reconciliation of non-GAAP measures.
|
|||||||||||||||||
2010
|
2011
|
2012
|
2013
|
||||||||||||||
Statistical operating data
|
|||||||||||||||||
Route miles (includes Canada and the U.S.)
|
20,600 | 20,000 | 20,100 | 20,000 | |||||||||||||
Carloads (thousands)
|
4,696 | 4,873 | 5,059 | 5,190 | |||||||||||||
Gross ton miles (GTMs) (millions)
|
341,219 | 357,927 | 383,754 | 401,390 | |||||||||||||
Revenue ton miles (RTMs) (millions)
|
179,232 | 187,753 | 201,496 | 210,133 | |||||||||||||
Employees (end of year) | 22,444 | 23,339 | 23,430 | 23,721 | |||||||||||||
Employees (average for the year)
|
22,055 | 23,079 | 23,466 | 23,705 | |||||||||||||
Diesel fuel consumed (US gallons in millions)
|
355.7 | 367.7 | 388.7 | 403.7 | |||||||||||||
Average fuel price ($/US gallon)
|
$ | 2.64 | $ | 3.39 | $ | 3.47 | $ | 3.55 | |||||||||
Statistical data and related productivity measures are based on estimated data available at such time and are subject to change as more complete information becomes available, as such certain of the 2010, 2011 and 2012 comparative statistical data and related productivity measures have been restated. | |||||||||||||||||
|
$ in millions, unless otherwise indicated
|
2011
|
2012
|
2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
Year
|
Q1 | Q2 | Q3 | Q4 |
Year
|
Q1 | Q2 | Q3 | Q4 |
Year
|
||||||||||||||||||||||||||||||||||||||||||||||
Revenues
|
$ | 2,084 | $ | 2,260 | $ | 2,307 | $ | 2,377 | $ | 9,028 | $ | 2,346 | $ | 2,543 | $ | 2,497 | $ | 2,534 | $ | 9,920 | $ | 2,466 | $ | 2,666 | $ | 2,698 | $ | 2,745 | $ | 10,575 | ||||||||||||||||||||||||||||||
Operating expenses
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Labor and fringe benefits
|
473 | 432 | 396 | 511 | 1,812 | 509 | 504 | 476 | 463 | 1,952 | 569 | 498 | 521 | 594 | 2,182 | |||||||||||||||||||||||||||||||||||||||||||||
Purchased services and material
|
286 | 268 | 271 | 295 | 1,120 | 299 | 305 | 304 | 340 | 1,248 | 328 | 341 | 318 | 364 | 1,351 | |||||||||||||||||||||||||||||||||||||||||||||
Fuel
|
327 | 353 | 350 | 382 | 1,412 | 376 | 379 | 369 | 400 | 1,524 | 405 | 402 | 390 | 422 | 1,619 | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
218 | 217 | 218 | 231 | 884 | 230 | 230 | 227 | 237 | 924 | 235 | 250 | 241 | 254 | 980 | |||||||||||||||||||||||||||||||||||||||||||||
Equipment rents
|
51 | 54 | 60 | 63 | 228 | 62 | 59 | 64 | 64 | 249 | 68 | 68 | 68 | 71 | 275 | |||||||||||||||||||||||||||||||||||||||||||||
Casualty and other
|
84 | 62 | 74 | 56 | 276 | 77 | 81 | 72 | 108 | 338 | 81 | 65 | 76 | 73 | 295 | |||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses
|
1,439 | 1,386 | 1,369 | 1,538 | 5,732 | 1,553 | 1,558 | 1,512 | 1,612 | 6,235 | 1,686 | 1,624 | 1,614 | 1,778 | 6,702 | |||||||||||||||||||||||||||||||||||||||||||||
Operating income
|
645 | 874 | 938 | 839 | 3,296 | 793 | 985 | 985 | 922 | 3,685 | 780 | 1,042 | 1,084 | 967 | 3,873 | |||||||||||||||||||||||||||||||||||||||||||||
Interest expense
|
(86 | ) | (85 | ) | (85 | ) | (85 | ) | (341 | ) | (86 | ) | (86 | ) | (84 | ) | (86 | ) | (342 | ) | (89 | ) | (88 | ) | (89 | ) | (91 | ) | (357 | ) | ||||||||||||||||||||||||||||||
Other income (loss)
|
300 | 10 | 70 | 21 | 401 | 293 | 9 | 18 | (5 | ) | 315 | 42 | 28 | 5 | (2 | ) | 73 | |||||||||||||||||||||||||||||||||||||||||||
Income before income taxes
|
859 | 799 | 923 | 775 | 3,356 | 1,000 | 908 | 919 | 831 | 3,658 | 733 | 982 | 1,000 | 874 | 3,589 | |||||||||||||||||||||||||||||||||||||||||||||
Income tax expense
|
(191 | ) | (261 | ) | (264 | ) | (183 | ) | (899 | ) | (225 | ) | (277 | ) | (255 | ) | (221 | ) | (978 | ) | (178 | ) | (265 | ) | (295 | ) | (239 | ) | (977 | ) | ||||||||||||||||||||||||||||||
Net income
|
$ | 668 | $ | 538 | $ | 659 | $ | 592 | $ | 2,457 | $ | 775 | $ | 631 | $ | 664 | $ | 610 | $ | 2,680 | $ | 555 | $ | 717 | $ | 705 | $ | 635 | $ | 2,612 | ||||||||||||||||||||||||||||||
Operating ratio
|
69.0 | % | 61.3 | % | 59.3 | % | 64.7 | % | 63.5 | % | 66.2 | % | 61.3 | % | 60.6 | % | 63.6 | % | 62.9 | % | 68.4 | % | 60.9 | % | 59.8 | % | 64.8 | % | 63.4 | % |
$ in millions
|
2011
|
2012
|
2013
|
|||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 593 | $ | 175 | $ | 192 | $ | 101 | $ | 182 | $ | 345 | $ | 175 | $ | 155 | $ | 128 | $ | 87 | $ | 182 | $ | 214 | ||||||||||||||||||||||||
Restricted cash and cash equivalents
|
– | 467 | 489 | 499 | 499 | 472 | 518 | 521 | 512 | 497 | 529 | 448 | ||||||||||||||||||||||||||||||||||||
Accounts receivable
|
770 | 825 | 801 | 820 | 769 | 833 | 845 | 831 | 900 | 876 | 868 | 815 | ||||||||||||||||||||||||||||||||||||
Material and supplies
|
228 | 240 | 272 | 201 | 261 | 277 | 272 | 230 | 289 | 330 | 317 | 274 | ||||||||||||||||||||||||||||||||||||
Deferred and receivable income taxes
|
50 | 50 | 52 | 122 | 80 | 47 | 37 | 43 | 75 | 34 | 74 | 137 | ||||||||||||||||||||||||||||||||||||
Other
|
73 | 84 | 62 | 105 | 102 | 85 | 78 | 89 | 95 | 81 | 67 | 89 | ||||||||||||||||||||||||||||||||||||
Total current assets
|
1,714 | 1,841 | 1,868 | 1,848 | 1,893 | 2,059 | 1,925 | 1,869 | 1,999 | 1,905 | 2,037 | 1,977 | ||||||||||||||||||||||||||||||||||||
Properties
|
22,677 | 22,789 | 23,800 | 23,917 | 23,681 | 24,078 | 24,004 | 24,541 | 24,733 | 25,305 | 25,383 | 26,227 | ||||||||||||||||||||||||||||||||||||
Intangible and other assets
|
821 | 840 | 899 | 261 | 299 | 329 | 349 | 249 | 260 | 335 | 377 | 1,959 | ||||||||||||||||||||||||||||||||||||
Total assets
|
$ | 25,212 | $ | 25,470 | $ | 26,567 | $ | 26,026 | $ | 25,873 | $ | 26,466 | $ | 26,278 | $ | 26,659 | $ | 26,992 | $ | 27,545 | $ | 27,797 | $ | 30,163 |
QUARTERLY CONSOLIDATED BALANCE SHEET 2011 – 2013 |
continued from page 9
|
$ in millions
|
2011
|
2012
|
2013
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||||||||
Liabilities and shareholders’ equity
|
||||||||||||||||||||||||||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and other
|
$ | 1,341 | $ | 1,452 | $ | 1,565 | $ | 1,580 | $ | 1,342 | $ | 1,609 | $ | 1,631 | $ | 1,626 | $ | 1,332 | $ | 1,469 | $ | 1,499 | $ | 1,477 | ||||||||||||||||||||||||
Current portion of long-term debt
|
474 | 530 | 525 | 135 | 895 | 784 | 678 | 577 | 1,466 | 1,322 | 1,488 | 1,021 | ||||||||||||||||||||||||||||||||||||
Total current liabilities
|
1,815 | 1,982 | 2,090 | 1,715 | 2,237 | 2,393 | 2,309 | 2,203 | 2,798 | 2,791 | 2,987 | 2,498 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes
|
5,201 | 5,301 | 5,613 | 5,333 | 5,494 | 5,629 | 5,603 | 5,555 | 5,700 | 5,867 | 5,884 | 6,537 | ||||||||||||||||||||||||||||||||||||
Pension and other postretirement benefits, net of current portion
|
508 | 510 | 530 | 1,095 | 569 | 576 | 553 | 784 | 659 | 594 | 589 | 541 | ||||||||||||||||||||||||||||||||||||
Other liabilities and deferred credits
|
779 | 774 | 800 | 762 | 683 | 713 | 738 | 776 | 778 | 767 | 760 | 815 | ||||||||||||||||||||||||||||||||||||
Long-term debt
|
5,451 | 5,432 | 5,878 | 6,441 | 5,892 | 5,991 | 5,770 | 6,323 | 5,945 | 6,141 | 6,010 | 6,819 | ||||||||||||||||||||||||||||||||||||
Shareholders’ equity
|
||||||||||||||||||||||||||||||||||||||||||||||||
Common shares
|
4,228 | 4,211 | 4,149 | 4,141 | 4,153 | 4,132 | 4,120 | 4,108 | 4,088 | 4,063 | 4,036 | 4,015 | ||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss
|
(1,736 | ) | (1,741 | ) | (1,647 | ) | (2,839 | ) | (2,834 | ) | (2,789 | ) | (2,803 | ) | (3,257 | ) | (3,187 | ) | (3,094 | ) | (3,080 | ) | (1,850 | ) | ||||||||||||||||||||||||
Retained earnings
|
8,966 | 9,001 | 9,154 | 9,378 | 9,679 | 9,821 | 9,988 | 10,167 | 10,211 | 10,416 | 10,611 | 10,788 | ||||||||||||||||||||||||||||||||||||
Total shareholders’ equity
|
11,458 | 11,471 | 11,656 | 10,680 | 10,998 | 11,164 | 11,305 | 11,018 | 11,112 | 11,385 | 11,567 | 12,953 | ||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 25,212 | $ | 25,470 | $ | 26,567 | $ | 26,026 | $ | 25,873 | $ | 26,466 | $ | 26,278 | $ | 26,659 | $ | 26,992 | $ | 27,545 | $ | 27,797 | $ | 30,163 |
QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOWS 2011 – 2013 |
$ in millions
|
2011
|
2012
|
2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
Year
|
Q1 | Q2 | Q3 | Q4 |
Year
|
Q1 | Q2 | Q3 | Q4 |
Year
|
||||||||||||||||||||||||||||||||||||||||||||||
Operating activities
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income
|
$ | 668 | $ | 538 | $ | 659 | $ | 592 | $ | 2,457 | $ | 775 | $ | 631 | $ | 664 | $ | 610 | $ | 2,680 | $ | 555 | $ | 717 | $ | 705 | $ | 635 | $ | 2,612 | ||||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization
|
218 | 217 | 218 | 231 | 884 | 230 | 230 | 227 | 237 | 924 | 235 | 250 | 241 | 254 | 980 | |||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes
|
104 | 119 | 104 | 204 | 531 | 194 | 78 | 59 | 120 | 451 | 83 | 73 | 13 | 162 | 331 | |||||||||||||||||||||||||||||||||||||||||||||
Gain on disposal of property
|
(288 | ) | – | (60 | ) | – | (348 | ) | (281 | ) | – | – | – | (281 | ) | (40 | ) | (29 | ) | – | – | (69 | ) | |||||||||||||||||||||||||||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable
|
(18 | ) | (54 | ) | 55 | (34 | ) | (51 | ) | 44 | (56 | ) | (25 | ) | 17 | (20 | ) | (59 | ) | 39 | (3 | ) | 55 | 32 | ||||||||||||||||||||||||||||||||||||
Material and supplies
|
(19 | ) | (13 | ) | (27 | ) | 70 | 11 | (61 | ) | (15 | ) | 3 | 43 | (30 | ) | (57 | ) | (38 | ) | 11 | 46 | (38 | ) | ||||||||||||||||||||||||||||||||||||
Accounts payable and other
|
(64 | ) | 106 | 60 | (68 | ) | 34 | (200 | ) | 290 | 50 | (11 | ) | 129 | (321 | ) | 118 | 57 | (99 | ) | (245 | ) | ||||||||||||||||||||||||||||||||||||||
Other current assets
|
(10 | ) | 3 | 16 | (11 | ) | (2 | ) | (30 | ) | 19 | 5 | (7 | ) | (13 | ) | (3 | ) | 14 | 17 | (15 | ) | 13 | |||||||||||||||||||||||||||||||||||||
Pensions and other, net
|
(92 | ) | (17 | ) | (38 | ) | (393 | ) | (540 | ) | (546 | ) | 34 | 17 | (285 | ) | (780 | ) | (72 | ) | (81 | ) | 25 | 60 | (68 | ) | ||||||||||||||||||||||||||||||||||
Net cash provided by operating activities
|
499 | 899 | 987 | 591 | 2,976 | 125 | 1,211 | 1,000 | 724 | 3,060 | 321 | 1,063 | 1,066 | 1,098 | 3,548 | |||||||||||||||||||||||||||||||||||||||||||||
Investing activities
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property additions
|
(220 | ) | (377 | ) | (415 | ) | (613 | ) | (1,625 | ) | (224 | ) | (389 | ) | (508 | ) | (610 | ) | (1,731 | ) | (228 | ) | (418 | ) | (539 | ) | (788 | ) | (1,973 | ) | ||||||||||||||||||||||||||||||
Disposal of property
|
299 | – | 70 | – | 369 | 311 | – | – | – | 311 | 52 | – | – | – | 52 | |||||||||||||||||||||||||||||||||||||||||||||
Change in restricted cash and cash equivalents
|
– | (467 | ) | (22 | ) | (10 | ) | (499 | ) | – | 27 | (46 | ) | (3 | ) | (22 | ) | 9 | 15 | (32 | ) | 81 | 73 | |||||||||||||||||||||||||||||||||||||
Other, net
|
14 | 3 | 5 | 4 | 26 | 2 | (4 | ) | 7 | 16 | 21 | 6 | (8 | ) | (8 | ) | 6 | (4 | ) | |||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) investing activities
|
93 | (841 | ) | (362 | ) | (619 | ) | (1,729 | ) | 89 | (366 | ) | (547 | ) | (597 | ) | (1,421 | ) | (161 | ) | (411 | ) | (579 | ) | (701 | ) | (1,852 | ) |
QUARTERLY CONSOLIDATED STATEMENT OF CASH FLOWS 2011 – 2013 |
continued from page 11
|
$ in millions
|
2011
|
2012
|
2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 |
Year
|
Q1 | Q2 | Q3 | Q4 |
Year
|
Q1 | Q2 | Q3 | Q4 |
Year
|
||||||||||||||||||||||||||||||||||||||||||||||
Financing activities
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of debt,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
excluding commercial paper
|
– | – | – | 703 | 703 | – | – | – | 493 | 493 | 505 | – | 210 | 867 | 1,582 | |||||||||||||||||||||||||||||||||||||||||||||
Repayment of debt,
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
excluding commercial paper
|
(22 | ) | (17 | ) | (12 | ) | (458 | ) | (509 | ) | (14 | ) | (11 | ) | (9 | ) | (24 | ) | (58 | ) | (740 | ) | (156 | ) | (104 | ) | (413 | ) | (1,413 | ) | ||||||||||||||||||||||||||||||
Net issuance (repayment) of commercial
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
paper (1)
|
– | 64 | (42 | ) | 62 | 84 | 346 | (158 | ) | (99 | ) | (171 | ) | (82 | ) | 566 | (15 | ) | 58 | (341 | ) | 268 | ||||||||||||||||||||||||||||||||||||||
Issuance of common shares due to exercise of stock options and related excess tax benefits realized
|
20 | 31 | 5 | 21 | 77 | 54 | 19 | 24 | 20 | 117 | 14 | 9 | 5 | 3 | 31 | |||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares
|
(340 | ) | (407 | ) | (417 | ) | (256 | ) | (1,420 | ) | (353 | ) | (369 | ) | (373 | ) | (305 | ) | (1,400 | ) | (361 | ) | (351 | ) | (383 | ) | (305 | ) | (1,400 | ) | ||||||||||||||||||||||||||||||
Dividends paid
|
(149 | ) | (147 | ) | (145 | ) | (144 | ) | (585 | ) | (165 | ) | (163 | ) | (163 | ) | (161 | ) | (652 | ) | (183 | ) | (182 | ) | (180 | ) | (179 | ) | (724 | ) | ||||||||||||||||||||||||||||||
Net cash used in financing activities
|
(491 | ) | (476 | ) | (611 | ) | (72 | ) | (1,650 | ) | (132 | ) | (682 | ) | (620 | ) | (148 | ) | (1,582 | ) | (199 | ) | (695 | ) | (394 | ) | (368 | ) | (1,656 | ) | ||||||||||||||||||||||||||||||
Effect of foreign exchange fluctuations on US dollar-denominated cash and cash equivalents
|
2 | – | 3 | 9 | 14 | (1 | ) | – | (3 | ) | 1 | (3 | ) | 12 | 2 | 2 | 3 | 19 | ||||||||||||||||||||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents
|
103 | (418 | ) | 17 | (91 | ) | (389 | ) | 81 | 163 | (170 | ) | (20 | ) | 54 | (27 | ) | (41 | ) | 95 | 32 | 59 | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents, beginning of period
|
490 | 593 | 175 | 192 | 490 | 101 | 182 | 345 | 175 |