Kansas City Southern (NYSE:KSU) Q1 2018 Earnings Conference Call Transcript
Apr 20, 2018 • 08:45 am ET
20. Our commitment to continue investing in our business is as strong as ever given our growth opportunities across our network. Our 2018 CapEx guidance of $530 million to $550 million remains unchanged. We expect 2018 will be the third year in a row that our CapEx and CapEx to revenue ratio has declined.
In addition to capital requirements we will continue to explore investment in ventures to enhance our core revenues, particularly around Mexican Energy Reform.
Turning to shareholder returns of capital, during the first quarter we repurchased approximately 500,000 shares at an average price of $108 and to-date we've repurchased 2.9 million shares at an average price of $106 under our repurchase program authorized by our Board of Directors in August of 2017.
Finally, we're very comfortable with our balance sheet and credit metrics but we'll continue to evaluate the acquisition of leased assets that provide positive financial returns. So in closing, let me provide a few thoughts on the regulatory and political landscape as I know these subjects are on your mind. First, we were pleased to announce during the quarter that the COFECE issued a final resolution that dismissed the preliminary report along with its finding of a lack of effective competition for interconnection services. This final resolution represents the end of the COFECE investigation.
Second, we are encouraged that NAFTA negotiations are progressing and appear to be moving towards resolution hopefully sooner than later. Although we cannot predict whether negotiators will reach a resolution prior to Mexico's Presidential Election in July, we are very pleased by recent progress and hopeful that these negotiations result in a modernized NAFTA agreement that will benefit all North American economies.
And with that, I'll turn the call back over to the operator for our Q&A.