Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q1 2012 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Apr 23, 2012
Slide 1: Q1 2012 Earnings Release
April 23, 2012 Q1 2012 Earnings Release Lawrence Dewey, Chairman, President & Chief Executive Officer 1 David Graziosi, 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). Most forward-looking statements contain words that identify them as forward-looking, such as “may”, “plan”, “
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information We use Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin, adjusted free cash flow and free cash flow to evaluate our performance relative to that of our peers. In addition, the Senior Secured Credit Facility has certain covenants that incorporate Adjusted EB
Slide 4: Call Agenda
Call Agenda Q1 2012 Performance End Markets Commentary Strategic Priorities Update Full Year 2012 Guidance 4
Slide 5: Q1 2012 Performance Summary
Q1 2012 Performance Summary ($ in millions) Q1 2012 Q1 2011 % Variance Sales $602 $517 16.4% Gross Margin % 47.2% 44.5% +270 bps Adjusted EBITDA $(1) $223 $169 32.0% Adjusted EBITDA %(1) 37.0% 32.7% +430 bps Diluted Earnings Per Share $0.31 N/A — Adjusted Free Cash Flow(2)(3) $120 $98 22.4% Commenta
Slide 6: Q1 2012 Sales Performance
Q1 2012 Sales Performance ($ in millions) End Markets Q1 2012 Q1 2011 % Variance Commentary on Quarter North America Continued market recovery; all models $219 $164 34% On-Hwy up other than motor homes North America Hybrid-Propulsion Municipal subsidy and spending $35 $39 (10%) Systems for constrain
Slide 7: Q1 2012 Financial Performance
Q1 2012 Financial Performance ($ in millions) Q1 2012 Q1 2011 $ Variance % Variance Commentary on Quarter Net Sales $601.9 $517.0 $84.9 16.4% Increased demand for global on-highway and off-highway products partially offset by lower demand for tracked military products and North America hybrid-propul
Slide 8: Q1 2012 Cash Flow Performance
Q1 2012 Cash Flow Performance ($ in millions) Q1 2012 Q1 2011 $ Variance % Variance Commentary Net sales growth Cash Provided by $140 $110 $30 27.3% partially offset by non- Operating Activities recurring items Increased investments CapEx $36 $12 $24 200.0% in new facilities and product initiatives
Slide 9: End Markets Commentary
End Markets Commentary • North America On-Highway • Improved economic conditions • Municipal spending • Expect slower year over year growth rate for the balance of 2012 • North America Hybrid-Propulsion Systems for Transit Bus • Municipal spending constraints and value proposition challenges • Expec
Slide 10: Strategic Priorities Update
Strategic Priorities Update • Expand global market leadership • Capitalize on continued market recovery • New vocational offerings • Emerging markets penetration • Vocational ladder strategy • Increase number of vehicle releases • Continued focus on new technologies and product development • Address
Slide 11: Full Year 2012 Guidance
Full Year 2012 Guidance Guidance Commentary on Full Year Assumes year over year growth in global on- highway and Outside North America off-highway end markets partially offset by year over year Net Sales Growth from 2011 5 to 7 percent reductions in North America off-highway, tracked military produc
Slide 12: Appendix
APPENDIX Non-GAAP Financial Information 12
Slide 13: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income and Adjusted EBITDA reconciliation Three months ended Last twelve months $ in millions For the year ended December 31, March 31, ended March 31, 2009 2010 2011 2011 2012 2012 Net (loss) income ($323.9) $29.6 $103.0 $36.9 $58.0 $124.1 plus: Interest expens
Allison Transmission Holdings — Q1 2012 Earnings Presentation on 6ix