Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2016 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Oct 24, 2016
Slide 1: Q3 2016 Earnings Release
Q3 2016 Earnings Release Published October 24, 2016 (Earnings Conference Call October 25, 2016) Lawrence Dewey, Chairman & Chief Executive Officer David Graziosi, 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 margin to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA margin provide management, investors and creditors with useful measures of the operational results of our business and increase
Slide 4: Call Agenda
Call Agenda Q3 2016 Performance Full Year 2016 Guidance Update 4
Slide 5: Q3 2016 Performance Summary
Q3 2016 Performance Summary ($ in millions) Q3 2016 Q3 2015 % Variance Net Sales $434 $493 (11.9%) Gross Margin % 47.1% 47.9% (80 bps) Net Income $45 $47 (4.1%) Adjusted EBITDA(1) $151 $174 (13.6%) Adjusted Free Cash Flow (1) $116 $148 (21.7%) Commentary Net Sales: decrease was principally driven by
Slide 6: Q3 2016 Sales Performance
Q3 2016 Sales Performance ($ in millions) End Markets Q3 2016 Q3 2015 % Variance Commentary Principally driven by lower demand for Rugged Duty Series, North America On-Hwy $224 $262 (15%) Highway Series and Pupil Transport/Shuttle models partially offset by higher demand for Transit/Other Bus models
Slide 7: Q3 2016 Financial Performance
Q3 2016 Financial Performance ($ in millions, except share data) Q3 2016 Q3 2015 $ Var % Var Commentary Net Sales $434.3 $493.0 ($58.7) (11.9%) Decrease was principally driven by lower demand in the North America On-Highway and Off-Highway end markets partially offset by stronger demand in the Outsi
Slide 8: Q3 2016 Cash Flow Performance
Q3 2016 Cash Flow Performance ($ in millions) Q3 2016 Q3 2015 $ Variance % Variance Commentary Net Cash Provided by Principally driven by decreased net sales $128 $162 ($34) (21.4%) and increased operating working capital (2) Operating Activities CapEx $14 $15 ($1) (7.2%) Principally driven by decre
Slide 9: 2016 Guidance Update - Summary
2016 Guidance Update - Summary Guidance Commentary Guidance reflects expectations for no meaningful relief from the global Off-Highway end market challenges and tempering demand conditions in the North America On- Highway end market partially offset by increased demand in (8.5) to (9.5) Net Sales Ch
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, September 30, September 30, 2011 2012 2013 2014 2015 2015 2016 2016 Net income $103.0 $514.2 $165.4 $228.6 $182.3 $46.5 $44.6 $166.7 p
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, September 30, September 30, 2011 2012 2013 2014 2015 2015 2016 2016 Net Cash Provided by Operating Activities $469.2 $497.5 $4
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