Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2017 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Oct 30, 2017
Slide 1: Q3 2017 Earnings Release
Q3 2017 Earnings Release Published October 30, 2017 (Earnings Conference Call October 31, 2017) Lawrence Dewey, Chairman & Chief Executive Officer David Graziosi, 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 margin to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA margin provide management, investors and creditors with useful measures of the operational results of our business and increase
Slide 4: Call Agenda
Call Agenda Q3 2017 Performance 2017 Guidance Update 4
Slide 5: Q3 2017 Performance Summary
Q3 2017 Performance Summary ($ in millions) Q3 2017 Q3 2016 % Variance Net Sales $595 $434 37.1% Gross Margin % 50.8% 47.1% 370 bps Net Income $111 $45 146.7% Adjusted EBITDA(1) $241 $151 59.6% Adjusted Free Cash Flow (1) $195 $115 69.6% Commentary Net Sales: increase was principally driven by highe
Slide 6: Sales Performance
Q3 2017 Sales Performance ($ in millions) End Markets Q3 2017 Q3 2016 % Variance Commentary Principally driven by higher demand for Rugged Duty Series and North America On-Hwy $282 $224 26% Highway Series models North America Electric Hybrid-Propulsion $19 $8 138% Principally driven by the timing of
Slide 7: Financial Performance
Q3 2017 Financial Performance ($ in millions, except per share data) Q3 2017 Q3 2016 $ Var % Var Commentary Net Sales $595 $434 $161 37.1% Increase was principally driven by higher demand in the North America On-Highway, Service Parts, Support Equipment & Other and Global Off-Highway end markets Cos
Slide 8: Cash Flow Performance
Q3 2017 Cash Flow Performance ($ in millions) Q3 2017 Q3 2016 $ Variance % Variance Commentary Principally driven by increased gross profit, increased accounts payable, Net Cash Provided by $215 $128 $87 68.0% increased deferred revenue and Operating Activities decreased cash interest expense partia
Slide 9: 2017 Guidance Update
2017 Guidance Update Guidance Commentary Full year 2017 net sales guidance reflects stronger demand for North America Off-Highway service parts, Global On- 21 to 22 Net Sales Change from 2016 Highway products and Global Off-Highway products. Our percent full year 2017 net sales outlook also assumes
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 EBITDA reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, September 30, September 30, 2012 2013 2014 2015 2016 2016 2017 2017 Net income $514 $165 $229 $182 $215 $45 $111 $350 plus: Interest e
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, 2012 2013 2014 2015 2016 2016 2017 2017 Net Cash Provided by Operating Activities $498 $464 $573 $
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