Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q1 2020 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, May 4, 2020
Slide 1: Q1 2020 Earnings Release
Q1 2020 Earnings Release Published May 4, 2020 David Graziosi, President & Chief Executive Officer Fred Bohley, Senior Vice President & Chief Financial Officer 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information We use Adjusted EBITDA and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operationa
Slide 4: Call Agenda
Call Agenda Q1 2020 Performance Liquidity Profile and Q1 2020 Capital Allocation 4
Slide 5: Q1 2020 Performance Summary
Q1 2020 Performance Summary ($ in millions) Q1 2020 Q1 2019 % Variance Net Sales $637 $675 (5.6%) Gross Margin % 51.2% 53.2% (200) bps Net Income $139 $167 (16.8%) Adjusted EBITDA(1) $257 $290 (11.4%) Commentary Net Sales: decrease was principally driven by lower demand in the North America On-Highw
Slide 6: Q1 2020 Sales Performance
Q1 2020 Sales Performance ($ in millions) End Markets Q1 2020 Q1 2019 % Variance Commentary Principally driven by lower demand for Rugged Duty Series North America On-Hwy $352 $377 (7%) models Principally driven by lower demand for hydraulic fracturing North America Off-Hwy $8 $14 (43%) applications
Slide 7: Q1 2020 Financial Performance
Q1 2020 Financial Performance ($ in millions, except per share data) Q1 2020 Q1 2019 $ Var % Var Commentary Net Sales $637 $675 ($38) (5.6%) Decrease was principally driven by lower demand in the North America On- Highway and Outside North America On-Highway end markets partially offset by higher de
Slide 8: Q1 2020 Cash Flow Performance
Q1 2020 Cash Flow Performance ($ in millions) Q1 2020 Q1 2019 $ Variance % Variance Commentary Principally driven by lower gross profit and Net Cash Provided by increased products initiatives spending $148 $194 ($46) (23.7%) partially offset by lower cash interest Operating Activities expense Princi
Slide 9: Strong Liquidity Profile & Q1 2020 Capital Allocation
Strong Liquidity Profile & Q1 2020 Capital Allocation Cash and Available Borrowing Capacity of $709 Long-term Debt Profile & Credit Statistics million as of March 31, 2020 ($ in millions) 3/31/2020 — $114 million of cash and cash equivalents Cash and cash equilvalents $114 — $595 million of availa
Slide 10: APPENDIX Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information 10
Slide 11: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted EBITDA reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, March 31, March 31, 2015 2016 2017 2018 2019 2019 2020 2020 Net income (GAAP) $182 $215 $504 $639 $604 $167 $139 $576 plus: Interest e
Slide 12: Non-GAAP Reconciliations (2 of 2)
Non-GAAP Reconciliations (2 of 2) Adjusted Free Cash Flow reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, March 31, March 31, 2015 2016 2017 2018 2019 2019 2020 2020 Net Cash Provided by Operating Activities (GAAP) $580 $591 $658 $8
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