Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2019 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Jul 31, 2019
Slide 1: Q2 2019 Earnings Release
Q2 2019 Earnings Release Published July 31, 2019 (Earnings Conference Call August 1, 2019) 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 Q2 2019 Performance 2019 Guidance Update 4
Slide 5: Q2 2019 Performance Summary
Q2 2019 Performance Summary ($ in millions) Q2 2019 Q2 2018 % Variance Net Sales $737 $711 3.7% Gross Margin % 52.8% 52.6% 20 bps Net Income $181 $174 4.0% Adjusted EBITDA(1) $308 $297 3.7% Commentary Net Sales: increase was principally driven by higher demand in the North America On-Highway end mar
Slide 6: Q2 2019 Sales Performance
Q2 2019 Sales Performance ($ in millions) End Markets Q2 2019 Q2 2018 % Variance Commentary Principally driven by higher demand led by the continued North America On-Hwy $398 $343 16.0% execution of our growth initiatives and market share gains in Class 4/5 truck Principally driven by lower demand f
Slide 7: Q2 2019 Financial Performance
Q2 2019 Financial Performance ($ in millions, except per share data) Q2 2019 Q2 2018 $ Var % Var Commentary Net Sales $737 $711 $26 3.7% Increase was principally driven by higher demand in the North America On- Highway end market, led by the continued execution of our growth initiatives and market s
Slide 8: Q2 2019 Cash Flow Performance
Q2 2019 Cash Flow Performance ($ in millions) Q2 2019 Q2 2018 $ Variance % Variance Commentary Principally driven by increased gross profit, lower operating working capital Net Cash Provided by $239 $213 $26 12.2% requirements and decreased cash interest Operating Activities expense partially offset
Slide 9: 2019 Guidance Update
2019 Guidance Update ($ in millions) Guidance Commentary Guidance reflects lower demand in the Service Parts, Support Equipment & Other and North America Off- Highway end markets principally driven by lower demand Net Sales Change $2,635 to $2,715 from hydraulic fracturing applications partially off
Slide 10: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information 10
Slide 11: Non-GAAP Reconciliations (1 of 3)
Non-GAAP Reconciliations (1 of 3) Adjusted EBITDA reconciliation 11
Slide 12: Non-GAAP Reconciliations (2 of 3)
Non-GAAP Reconciliations (2 of 3) 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, 2014 2015 2016 2017 2018 2018 2019 2019 Net Cash Provided by Operating Activities (GAAP) $573 $580 $591 $658
Slide 13: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance reconciliation $ in millions Guidance Year Ending December 31, 2019 Low High Net Income (GAAP) $ 545 $ 585 plus: Income tax expense 157 167 Interest expense, net 136 136 Depreciation and amortization 162 162 Stock-based compensation expense 15 15 Expenses r
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