Adjustments for Non-Cash Items (CAD, millions)

Stock-Based Compensation (CAD, millions)

Changes in Working Capital (CAD, millions)

Capital Expenditures (CAD, millions)

Proceeds from / Repayments of Debt (CAD, millions)

Share Repurchases (CAD, millions)

Dividend Payments (CAD, millions)

Net Change in Cash (CAD, millions)

21aee33ded88635de3dea9844f8b72f51e98c7758f3ea27281f34e3c9dcb1b15

f2285830285a6baf9fe1142e6bec5367e8c2eaa075b6d882123fa24a3cdac459

31d46bb930058e49552d02f8e031b9ea0e94e652e395af2257f705082f88db37

Total Revenue (CAD, millions)

Cost of Goods Sold (COGS) (CAD, millions)

Selling, General, and Administrative Expenses (SG&A) (CAD, millions)

Research and Development (R&D) (CAD, millions)

Depreciation and Amortization (D&A) (CAD, millions)

Interest Expense (CAD, millions)

Operating Income (EBIT) (CAD, millions)

Net Income (CAD, millions)

Earnings Per Share (EPS) - Basic (CAD)

Earnings Per Share (EPS) - Diluted (CAD)

4a8ee3832e80a565ea2ae22da4e82308e5320d7b4b8e64a2cc61142b370107f4

Cash and cash equivalents (CAD, millions)

Accounts receivable, net (CAD, millions)

Materials and supplies (CAD, millions)

Other current assets (CAD, millions)

Investments (CAD, millions)

Properties (CAD, millions)

Goodwill (CAD, millions)

Intangible assets (CAD, millions)

Pension asset (CAD, millions)

Other assets (CAD, millions)

Total assets (CAD, millions)

Accounts payable and accrued liabilities (CAD, millions)

Long-term debt maturing within one year (CAD, millions)

Pension and other benefit liabilities (CAD, millions)

Other long-term liabilities (CAD, millions)

Long-term debt (CAD, millions)

Deferred income taxes (CAD, millions)

Total liabilities (CAD, millions)

Share capital (CAD, millions)

Additional paid-in capital (CAD, millions)

Accumulated other comprehensive loss (CAD, millions)

Retained earnings (CAD, millions)

Non-controlling interest (CAD, millions)

Total equity (CAD, millions)

Total liabilities and equity (CAD, millions)

0095efc77e25bdd9ff56e194a09a0478a30cf46102f0b0c8fd20ee54a2fa4f9e

The decline in **cash and cash equivalents** in Q3 2024 was primarily due to significant cash outflows from both **investing** and **financing activities**. Specifically, the company invested heavily in property additions (totaling **$748 million** for properties and **$9 million** for Meridian Speedway properties) while also using cash for financing activities such as paying dividends (**$177 million**), repaying commercial paper (**$343 million**), and reducing long-term debt (**$89 million**). Additionally, foreign currency fluctuations contributed a **$10 million** reduction. Although **operating activities** generated **$1,272 million**, the outflows in investing and financing areas resulted in a net decrease of **$94 million** in cash and cash equivalents during the quarter.  **[20241023CA36295:7]** **[0000016875-24-000031_exhibit991-q32024earningsr.htm:7]** **[0000016875-24-000033_cp-20240930.htm:4]** 

Why did cash and cash equivalents decline in Q3 2024?

The increase in short-term debt maturing in Q1 2024 was driven by a combination of **higher commercial paper borrowings** and a **reclassification of long-term debt that is due within the next 12 months**. Specifically, the company saw increased commercial paper borrowings in Q1 2024 (with **U.S. $650 million** outstanding, part of a broader commercial paper program) and reclassified portions of long-term debt into current liabilities due to scheduled maturities totaling **$3,133 million** for the year 2024.  **[0000016875-24-000016_cp-20240331.htm:11]** **[0000016875-24-000015_exhibit991-q12024earningsr.htm:14]** **[0000016875-24-000009_cp-20231231.htm:135]** 

What drove the increase in short-term debt maturing in Q1 2024?

The **long-term debt** was lower in Q1 2024 because the company made **strategic repayments** during the quarter. Specifically, it repaid **$66 million** on maturing **5.41% Senior Secured Notes** and **$205 million** in commercial paper, actions that reduced the outstanding debt compared to **FY 2023** levels.  **[0000016875-24-000016_cp-20240331.htm:3]** **[0000016875-24-000015_exhibit991-q12024earningsr.htm:6]** **[0000016875-24-000016_cp-20240331.htm:32]** 

Why was long-term debt lower in Q1 2024 compared to FY 2023?

The available documents do not provide any specific explanation for the **dip in total assets in Q3 2024** compared to Q2 2024. The details provided only explain the **growth from December 31, 2023 to Q3 2024**, not the decrease from **Q2 (82,792 million CAD)** to **Q3 (82,225 million CAD)**.  **[0000016875-24-000026_cp-20240630.htm:3]** **[0000016875-24-000033_cp-20240930.htm:3]** **[20241023CA36295:6]** **[0000016875-24-000031_exhibit991-q32024earningsr.htm:6]** 

What caused total assets to dip in Q3 2024?

947c8144e681295eb0eab196a7d9ab6329fc8c657e86762f41a4e68bb74e1531

Net income [CAD, millions]

Depreciation and amortization [CAD, millions]

Deferred income tax expense (recovery) [CAD, millions]

Pension recovery and funding [CAD, millions]

Equity earnings (loss) of Kansas City Southern [CAD, millions]

Remeasurement loss of Kansas City Southern [CAD, millions]

Dividend from Kansas City Southern [CAD, millions]

Settlement of Mexican taxes [CAD, millions]

Settlement of foreign currency forward contract [CAD, millions]

Other operating activities, net [CAD, millions]

Changes in non-cash working capital balances related to operations [CAD, millions]

Net cash provided by operating activities [CAD, millions]

Additions to properties [CAD, millions]

Additions to Meridian Speedway properties [CAD, millions]

Proceeds from sale of properties and other assets [CAD, millions]

Cash acquired on control of Kansas City Southern [CAD, millions]

Investment in government securities [CAD, millions]

Other investing activities, net [CAD, millions]

Net cash used in investing activities [CAD, millions]

Dividends paid [CAD, millions]

Issuance of Common Shares [CAD, millions]

Repayment of long-term debt, excluding commercial paper [CAD, millions]

Net (repayment) issuance of commercial paper [CAD, millions]

Acquisition-related financing fees [CAD, millions]

Other financing activities, net [CAD, millions]

Net cash used in financing activities [CAD, millions]

Effect of foreign currency fluctuations on foreign-denominated cash and cash equivalents [CAD, millions]

Net (decrease) increase in cash and cash equivalents [CAD, millions]

Income taxes paid [CAD, millions]

Interest paid [CAD, millions]

Proceeds from settlement of government securities [CAD, millions]

Other investing activities [CAD, millions]

Repayment of term loan [CAD, millions]

Other financing activities [CAD, millions]

Cash (used in) provided by financing activities [CAD, millions]

Cash and cash equivalents at beginning of period [CAD, millions]

Cash and cash equivalents at end of period [CAD, millions]

bba9c14479a3f92f3de7fbd71e12cb657a759bb36d768c43eeb5a451de504e2b

Freight Revenues (CAD, millions)

Non-freight Revenues (CAD, millions)

Total revenues (CAD, millions)

Compensation and benefits (CAD, millions)

Fuel (CAD, millions)

Materials (CAD, millions)

Equipment rents (CAD, millions)

Depreciation and amortization (CAD, millions)

Purchased services and other (CAD, millions)

Total operating expenses (CAD, millions)

Operating income (CAD, millions)

Equity earnings (loss) of Kansas City Southern (CAD, millions)

Other expense (income) (CAD, millions)

Other components of net periodic benefit recovery (CAD, millions)

Net interest expense (CAD, millions)

Remeasurement loss of Kansas City Southern (CAD, millions)

Income (loss) before income tax expense (recovery) (CAD, millions)

Current income tax expense (CAD, millions)

Deferred income tax (recovery) expense (CAD, millions)

Income tax (recovery) expense (CAD, millions)

Net income (CAD, millions)

Net (loss) income attributable to non-controlling interest (CAD, millions)

Net income attributable to controlling shareholders (CAD, millions)

3e4444e7b307a8e060d00008d5a546d7ee50220b1320e77023eba86d537d928e

Canadian Pacific Kansas City Ltd (CP)

Financials