Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2012 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Feb 19, 2013
Slide 1: Q4 2012 Earnings Release
Q4 2012 Earnings Release February 19, 2013 Lawrence Dewey, Chairman, President & Chief Executive Officer David Graziosi, Executive 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). Most forward-looking statements contain words that identify them as forward-looking, such as “may”, “plan”, “
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information We use Adjusted net income, Adjusted EBITDA, Adjusted EBITDA excluding technology-related license expenses, Adjusted EBITDA margin, Adjusted EBITDA margin excluding technology-related license expenses, adjusted free cash flow and free cash flow to evaluate our performa
Slide 4: Call Agenda
Call Agenda Q4 2012 Performance 2013 Guidance 4
Slide 5: Q4 2012 Performance Summary
Q4 2012 Performance Summary ($ in millions) Q4 2012 Q4 2011 % Variance Net Sales $487 $516 (5.6%) Gross Margin % 39.9% 43.1% (320 bps) Adjusted Net Income (1) $46 $52 (12.6%) Adjusted Free Cash Flow (1) $82 $30 171.0% Commentary Net Sales: the decrease was principally driven by reduced demand for No
Slide 6: Q4 2012 Sales Performance
Q4 2012 Sales Performance ($ in millions) End Markets Q4 2012 Q4 2011 % Variance Commentary North America On-Hwy $188 $175 7% Increased commercial vehicle production North America Hybrid- Propulsion Systems for $32 $27 19% Timing of orders Transit Bus Decreased demand from hydraulic fracturing North
Slide 7: Q4 2012 Financial Performance
Q4 2012 Financial Performance ($ in millions) Q4 2012 Q4 2011 $ Var % Var Commentary Net Sales $487.0 $516.1 ($29.1) (5.6%) Decreased demand for North America Off-Highway and Service Parts, Support Equipment & Other products partially offset by increased demand for North America On-Highway, Outside
Slide 8: Q4 2012 Cash Flow Performance
Q4 2012 Cash Flow Performance ($ in millions) Q4 2012 Q4 2011 $ Variance % Variance Commentary Reduced Operating Working Capital investment principally driven by lower net sales, Net Cash Provided by conclusion of 2012 labor $112 $72 $40 55.9% negotiations, debt repayments Operating Activities and a
Slide 9: 2013 Guidance - End Markets Commentary
2013 Guidance - End Markets Commentary Allison expects first quarter net sales to be significantly lower than the same period in 2012 driven by considerably lower demand in the North America energy sector’s hydraulic fracturing market, previously considered reductions in Military net sales and weake
Slide 10: 2013 Guidance - Summary
2013 Guidance - Summary Guidance Commentary Reflects a cautious approach given the continued heightened level of uncertainty in our end markets and the lack of near- term visibility and confidence in certain of our end markets. Allison’s 2013 net sales outlook also incorporates an assumed continuati
Slide 11: Appendix
APPENDIX Non-GAAP Financial Information 11
Slide 12: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted Net Income and Adjusted EBITDA reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2009 2010 2011 2012 2011 2012 Net (loss) income ($323.9) $29.6 $103.0 $514.2 $44.5 $11.2 plus: Interest expense, net 234.2
Slide 13: Non-GAAP Reconciliations (2 of 2)
Non-GAAP Reconciliations (2 of 2) Adjusted Free Cash Flow reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2009 2010 2011 2012 2011 2012 Net Cash Provided by Operating Activities $168.7 $388.9 $469.2 $497.5 $71.9 $112.1 (Deductions) or Additions
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