Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2015 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Jul 27, 2015
Slide 1: Q2 2015 Earnings Release
Q2 2015 Earnings Release Published July 27, 2015 (Earnings Conference Call July 28, 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 Q2 2015 Performance Full Year 2015 Guidance Update 4
Slide 5: Q2 2015 Performance Summary
Q2 2015 Performance Summary ($ in millions) Q2 2015 Q2 2014 % Variance Net Sales $511 $536 -4.7% Gross Margin % 46.2% 44.5% +170 bps Adjusted Net Income (1) $98 $117 -16.0% Adjusted Free Cash Flow (1) $140 $135 4.2% Commentary Net Sales: the decrease was principally driven by lower demand in the glo
Slide 6: Q2 2015 Sales Performance
Q2 2015 Sales Performance ($ in millions) End Markets Q2 2015 Q2 2014 % Variance Commentary Principally driven by higher demand for Rugged Duty Series and North America On-Hwy $277 $243 14% Highway Series models North America Hybrid- Principally driven by lower demand due to engine emissions Propuls
Slide 7: Q2 2015 Financial Performance
Q2 2015 Financial Performance ($ in millions, except share data) Q2 2015 Q2 2014 $ Var % Var Commentary Net Sales $511.0 $536.1 ($25.1) (4.7%) Decrease was principally driven by lower demand in the global Off-Highway and Defense end markets partially offset by the continued recovery in the North Ame
Slide 8: Q2 2015 Cash Flow Performance
Q2 2015 Cash Flow Performance ($ in millions) Q2 2015 Q2 2014 $ Variance % Variance Commentary Principally driven by price increases on certain products, favorable material costs, lower product warranty expense, lower incentive compensation expense and Net Cash Provided by $154 $143 $11 7.1% decreas
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, June 30, June 30, 2010 2011 2012 2013 2014 2014 2015 2015 Net income $29.6 $103.0 $514.2 $165.4 $228.6 $57.2 $
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, 2010 2011 2012 2013 2014 2014 2015 2015 Net Cash Provided by Operating Activities $388.9 $469.2 $497.5 $453.
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