Business Context and Reporting Period
This Form 6-K filing by Canadian Pacific Railway Limited (CPRL) and its subsidiary Canadian Pacific Railway Company, dated May 11, 2009, serves as a correction to a previous disclosure. The filing addresses an error in the calculation of earnings coverage ratios originally submitted on April 23, 2009. The financial data presented relates to the twelve-month period ended March 31, 2009.
Key Financial Metrics
The filing focuses exclusively on earnings coverage ratios for medium-term notes and debt securities. It does not provide standalone figures for revenue, profit, cash flow, or total debt levels.
- Earnings Coverage (Before foreign exchange on long-term debt): 3.8
- Earnings Coverage (After foreign exchange on long-term debt): 3.8
- Long-term debt maturing within one year: $65.3 million (excluded from the primary ratio calculation as current liabilities).
Material Changes Versus Prior Period
The filing does not provide comparative financial data for prior periods. The material change disclosed is a correction to the reported earnings coverage ratios. The previously filed ratios of 3.3 were corrected to 3.8 for both "Before" and "After" foreign exchange on long-term debt categories.
Guidance, Outlook, and Risks
The document contains no management guidance, future outlook, or discussion of general business risks. The primary contingency noted is the calculation methodology regarding debt classification. The filing clarifies that the reported ratios of 3.8 exclude carrying charges for $65.3 million in long-term debt maturing within one year. If this debt had been classified entirely as long-term for the calculation, the earnings coverage ratios would have been 3.6 for both categories.
Investor Verification Checklist
- Verify the corrected earnings coverage ratios of 3.8 against the original filing of 3.3.
- Confirm the treatment of the $65.3 million in debt maturing within one year in the company's consolidated balance sheet as of March 31, 2009.
- Review the impact of the alternative calculation (3.6 ratio) if the short-term maturing debt is reclassified as long-term.
- Check the referenced Registration Statements (Form S-8 Nos. 333-140955, 333-127943, 333-13962, and Form F-9 No. 333-142347) for the incorporation of this corrected data.