Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2020 Earnings Presentation
14 slides from Allison Transmission's earnings presentation, Feb 17, 2021
Slide 1: Q4 2020 Earnings Release
Q4 2020 Earnings Release Published February 17, 2021 (Earnings Conference Call February 18, 2021) 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 Q4 2020 Performance 2021 Guidance 4
Slide 5: Q4 2020 Performance Summary
Q4 2020 Performance Summary ($ in millions) Q4 2020 Q4 2019 % Variance Net Sales $535 $617 (13.3%) Gross Margin % 47.3% 48.3% (100) bps Net Income $60 $107 (43.9%) Adjusted EBITDA(1) $186 $216 (13.9%) Commentary Net Sales: decrease was principally driven by lower demand in the Global On-Highway and
Slide 6: Q4 2020 Sales Performance
Q4 2020 Sales Performance ($ in millions) End Markets Q4 2020 Q4 2019 % Variance Commentary Principally driven by the continuing effects of the North America On-Hwy $284 $330 (13.9%) pandemic Principally driven by continued weakness in North America Off-Hwy $1 $1 0.0% hydraulic fracturing activity P
Slide 7: Q4 2020 Financial Performance
Q4 2020 Financial Performance ($ in millions, except per share data) Q4 2020 Q4 2019 $ Var % Var Commentary Net Sales $535 $617 ($82) (13.3%) Decrease was principally driven by lower demand in the Global On- Highway and Service Parts, Support Equipment & Other end markets due to the continual effect
Slide 8: Q4 2020 Cash Flow Performance
Q4 2020 Cash Flow Performance ($ in millions) Q4 2020 Q4 2019 $ Variance % Variance Commentary Principally driven by lower gross profit, higher operating working capital requirements and increased cash Net Cash Provided by $163 $202 ($39) (19.3%) income taxes partially offset by lower Operating Acti
Slide 9: 2021 Guidance
2021 Guidance ($ in millions) Guidance Net Sales $2,265 to $2,415 Net Income $375 to $445 Adjusted EBITDA $770 to $860 Net Cash Provided by Operating Activities $560 to $630 Adjusted Free Cash Flow $390 to $450 Capital Expenditures $170 to $180 9
Slide 10: 2021 Guidance – Net Sales by End Market
2021 Guidance – Net Sales by End Market 2020 2021 End Markets Commentary Net Sales Midpoint Principally driven by higher Class 8 Straight and North America On-Hwy $1,081 14% Medium Duty truck production Principally driven by a modest recovery in North America Off-Hwy $13 46% hydraulic fracturing app
Slide 11: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information 11
Slide 12: Non-GAAP Reconciliations (1 of 3)
Non-GAAP Reconciliations (1 of 3) Adjusted EBITDA reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2016 2017 2018 2019 2020 2019 2020 Net income (GAAP) $215 $504 $639 $604 $299 $107 $60 plus: Interest expense, net 101 103 121 134 137 33 37 Incom
Slide 13: Non-GAAP Reconciliations (2 of 3)
Non-GAAP Reconciliations (2 of 3) Adjusted Free Cash Flow reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2016 2017 2018 2019 2020 2019 2020 Net Cash Provided by Operating Activities (GAAP) $591 $658 $837 $847 $561 $202 $163 (Deductions) or Add
Slide 14: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2021 Low High Net Income (GAAP) $ 375 $ 445 plus: Depreciation and amortization 152 152 Interest expense, net 118 118 Income tax expense 108 128 Stock-based compensation expense 16 16 Acquisitio
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