Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2021 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Jul 28, 2021
Slide 1: Q2 2021 Earnings Release
Q2 2021 Earnings Release July 28, 2021 Dave Graziosi, Chairman & 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 2021 Performance 2021 Guidance 4
Slide 5: Q2 2021 Performance Summary
Q2 2021 Performance Summary ($ in millions) Q2 2021 Q2 2020 % Variance Net Sales $603 $377 73.6% Gross Margin % 47.8% 43.8% 400 bps Net Income $110 $23 378.3% Adjusted EBITDA(1) $213 $115 85.2% Commentary Net Sales: increase was principally driven by higher demand in the Global On-Highway and Servic
Slide 6: Q2 2021 Sales Performance
Q2 2021 Sales Performance ($ in millions) End Markets Q2 2021 Q2 2020 % Variance Commentary Principally driven by the continuing recovery in North America On-Hwy $302 $164 84% customer demand following the pandemic-related disruptions experienced in 2020 Principally driven by higher demand for hydra
Slide 7: Q2 2021 Financial Performance
Q2 2021 Financial Performance ($ in millions, except per share data) Q2 2021 Q2 2020 $ Var % Var Commentary Increase was principally driven by higher demand in the Global On-Highway Net Sales $603 $377 $226 59.9% and Service Parts, Support Equipment & Other end markets and price increases on certain
Slide 8: Q2 2021 Cash Flow Performance
Q2 2021 Cash Flow Performance ($ in millions) Q2 2021 Q2 2020 $ Variance % Variance Commentary Principally driven by higher gross profit and lower cash interest expense partially Net Cash Provided by offset by higher operating working capital $143 $92 $51 55.4% requirements, higher cash income taxes
Slide 9: 2021 Guidance
2021 Guidance ($ in millions) Guidance Commentary Guidance reflects higher demand in the global On- Highway, Service Parts, Support Equipment & Other Net Sales $2,325 to $2,475 and North America Off-Highway end markets as a result of the ongoing global economic recovery and price increases on certai
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 Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, June 30, June 30, 2016 2017 2018 2019 2020 2020 2021 2021 Net income (GAAP) $215 $504 $639 $604 $299 $23 $110 $367 plus: Interest expe
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, 2016 2017 2018 2019 2020 2020 2021 2021 Net Cash Provided by Operating Activities (GAAP) $591 $658 $837 $847
Slide 13: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2021 Low High Net Income (GAAP) $ 395 $ 465 plus: Depreciation and amortization 152 152 Interest expense, net 118 118 Income tax expense 113 133 Stock-based compensation expense 16 16 Acquisitio
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