Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2015 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Oct 26, 2015
Slide 1: Q3 2015 Earnings Release
Q3 2015 Earnings Release Published October 26, 2015 (Earnings Conference Call October 27, 2015) 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). 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 Q3 2015 Performance Full Year 2015 Guidance Update 4
Slide 5: Q3 2015 Performance Summary
Q3 2015 Performance Summary ($ in millions) Q3 2015 Q3 2014 % Variance Net Sales $493 $553 -10.9% Gross Margin % 47.9% 46.9% +100 bps Adjusted Net Income (1) $123 $138 -10.6% Adjusted Free Cash Flow (1) $142 $164 -13.8% Commentary Net Sales: the decrease was principally driven by lower demand in the
Slide 6: Q3 2015 Sales Performance
Q3 2015 Sales Performance ($ in millions) End Markets Q3 2015 Q3 2014 % Variance Commentary North America On-Hwy $262 $256 2% Principally driven by higher demand for Highway Series models North America Hybrid- Principally driven by lower demand due to engine emissions Propulsion Systems for $12 $23
Slide 7: Q3 2015 Financial Performance
Q3 2015 Financial Performance ($ in millions, except share data) Q3 2015 Q3 2014 $ Var % Var Commentary Net Sales $493.0 $553.3 ($60.3) (10.9%) Decrease principally driven by lower demand in the global Off- Highway end markets partially offset by higher demand in the North America On-Highway end mar
Slide 8: Q3 2015 Cash Flow Performance
Q3 2015 Cash Flow Performance ($ in millions) Q3 2015 Q3 2014 $ Variance % Variance Commentary Principally driven by decreased sales volume partially offset by price increases on certain products, Net Cash Provided by favorable material costs, reduced $156 $174 ($18) (10.2%) Operating Activities glo
Slide 9: Full Year 2015 Guidance Update
Full Year 2015 Guidance Update Guidance Commentary Guidance reflects the elevated level of uncertainty and a (6) to (8) Net Sales Change from 2014 dearth of near-term visibility in the global Off-Highway and percent Service Parts, Support Equipment & Other end markets Principally driven by Net Sales
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 Net Income and Adjusted EBITDA reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, September 30, September 30, 2010 2011 2012 2013 2014 2014 2015 2015 Net income $29.6 $103.0 $514.2 $165.4 $228
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, 2010 2011 2012 2013 2014 2014 2015 2015 Net Cash Provided by Operating Activities $388.9 $469.2 $4
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