Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2014 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Jul 23, 2014
Slide 1: Q2 2014 Earnings Release
Q2 2014 Earnings Release Published July 23, 2014 (Earnings Conference Call July 24, 2014) Lawrence Dewey, Chairman, President & Chief Executive Officer David Graziosi, Executive Vice President & Chief Financial Officer
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 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 Q2 2014 Performance Full Year 2014 Guidance Update 4
Slide 5: Q2 2014 Performance Summary
Q2 2014 Performance Summary ($ in millions) Q2 2014 Q2 2013 % Variance Net Sales $536 $512 4.7% Gross Margin % 44.5% 44.2% +30 bps Adjusted Net Income (1) $117 $89 30.4% Adjusted Free Cash Flow (1) $132 $117 13.1% Commentary Net Sales: the increase was principally driven by the continued recovery in
Slide 6: Q2 2014 Sales Performance
Q2 2014 Sales Performance ($ in millions) End Markets Q2 2014 Q2 2013 % Variance Commentary Increased demand for Rugged Duty Series and Pupil North America On-Hwy $243 $216 13% Transport/Shuttle Series models North America Hybrid- Increased demand principally driven by intra-year Propulsion Systems
Slide 7: Q2 2014 Financial Performance
Q2 2014 Financial Performance ($ in millions, except share data) Q2 2014 Q2 2013 $ Var % Var Commentary Net Sales $536.1 $512.1 $24.0 4.7% Increase principally driven by the continued recovery in the North America On-Highway and Off-Highway end markets, and higher demand in the Service Parts, Suppor
Slide 8: Q2 2014 Cash Flow Performance
Q2 2014 Cash Flow Performance ($ in millions) Q2 2014 Q2 2013 $ Variance % Variance Commentary Net Cash Provided by Principally driven by increased $143 $130 $13 10.6% net sales Operating Activities Capital spending in line with CapEx $12 $13 ($1) (12.1%) prior year Principally driven by increased A
Slide 9: Full Year 2014 Guidance Update
Full Year 2014 Guidance Update Guidance Commentary In the second half of 2014 we expect net sales to increase on a year-over-year basis principally driven by improved demand conditions in the North America On-Highway and Net Sales Growth from 2013 4 to 6 percent Off-Highway end markets, weakness in
Slide 10: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information
Slide 11: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted Net Income and Adjusted EBITDA reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, June 30, June 30, 2009 2010 2011 2012 2013 2013 2014 2014 Net (loss) income ($323.9) $29.6 $103.0 $514.2 $165.
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, June 30, June 30, 2009 2010 2011 2012 2013 2013 2014 2014 Net Cash Provided by Operating Activities $168.7 $388.9 $469.2 $497.
Allison Transmission Holdings — Q2 2014 Earnings Presentation on 6ix