Kansas City Southern (NYSE:KSU) Q3 2019 Earnings Conference Call Transcript
Oct 18, 2019 • 08:45 am ET
Good morning, and welcome to the Kansas City Southern Third Quarter 2019 Earnings Conference Call. [Operator Instructions]
This presentation includes statements concerning potential future events involving the company, which could materially differ from events that actually occur. The differences could be caused by a number of factors, including those factors identified in the Risk Factors section of the Company's Form 10-K for the year ended December 31, 2018 filed with the SEC. The company is not obligated to update any forward-looking statements in this presentation to reflect future events or developments. All reconciliations to GAAP can be found on the KCS website www.kcsouthern.com.
It is now my pleasure to introduce your host, Pat Ottensmeyer, President and Chief Executive Officer for Kansas City Southern.
Patrick J. Ottensmeyer
Okay, thank you and good morning everyone. And welcome to our third quarter earnings call. And I will start the presentation, obviously everyone saw the press release that came out earlier.
On Slide four, we just with the folks, who are on the call today, I'll mention hopefully this won't be all that noticeable, but I'm actually not with the rest of the team in Kansas City calling in remotely from New York and I'm very proud to have been accepting an award last night for Kansas City Southern for -- from the Latino Corporate Directors Association for exceptional diversity, specifically the number of Latinos on our Board of Directors here in New York. So hopefully get through any -- not have any technical issues here. But I will -- in the room with the rest of the team. Jose Zozaya is also on the phone from New York.
So let's move on to Slide five. The punch line slide for our third quarter earnings, and I think we feel like we had a really good quarter revenues, up 7%, Mike Naatz will talk about the revenue side of the business and the outlook, which to steal Mike's thunder, but we still feel that about 70% of our business units were set to be positive for the remainder of the year, and in spite of lots of [Technical Issues] about state of the economy in the US and Mexico and around the world. We still feel that there is a reason to be hopeful and see signs of strength in a number of our business units.
Operating ration 63%, that's not a real number, when we exclude the impact of impairment charges that we took in the quarter that Mike Upchurch will get into in greater detail in a few minutes, put us at 60.7%, 270 basis points from last year. And then when we back out and adjust for the impact of the loss of the IEPS credit in Mexico, we could take that down by another 80 basis points. So you can do the math in your head and what that results in is a operating rate clearly put us in the low '60 for the third quarter.
Earnings per share of $1.81 adjusted again for