Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2022 Earnings Presentation
14 slides from Allison Transmission's earnings presentation, Feb 15, 2023
Slide 1: Q4 2022 Earnings Release
Q4 2022 Earnings Release February 15th, 2023 Dave Graziosi, Chairman & CEO Fred Bohley, Senior Vice President & CFO
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 Q4 2022 Performance 2023 Guidance 4
Slide 5: Q4 2022 Performance Summary
Q4 2022 Performance Summary ($ in millions, except per share data; variance % from Q4 2021) Net Sales Gross Profit Net Income Adjusted EBITDA* Diluted Earnings Per Share $718 $338 $141 $245 $1.52 +11% +11% +19% +11% +32% Record fourth quarter Net Sales. Increase principally driven by: Increase was p
Slide 6: Q4 2022 Net Sales Performance
Q4 2022 Net Sales Performance ($ in millions, variance % from Q4 2021) End Markets Q4 2022 Variance Commentary Principally driven by continued strength in customer demand for last mile North America On-Hwy $333 19% delivery, regional haul and vocational trucks North America Off-Hwy $24 (11%) Princip
Slide 7: Q4 2022 Financial Performance
Q4 2022 Financial Performance ($ in millions, except per share data) Q4 2022 $ Variance* % Variance* Commentary Record fourth quarter Net Sales was principally driven by higher demand in the NA On-Highway, Service Parts, Support Equipment & Other, Net Sales $718 $74 11% and ONA On-Highway end market
Slide 8: Q4 2022 Cash Flow Performance
Q4 2022 Cash Flow Performance ($ in millions, variance from Q4 2021) Q4 2022 $ Variance % Variance Commentary Net Cash Provided by Principally driven by higher gross profit and lower operating working capital funding $224 $56 33.3% Operating Activities requirements CapEx $92 $29 46.0% Principally dr
Slide 9: 2023 Guidance
2023 Guidance ($ in millions) Full year 2023 guidance ranges provided to the market on February 15, 2023 $2,825 - $2,925 $500 - $550 $965 - $1,025 $605 - $665 $125 - $135 $480 - $530 Net Cash Provided Adjusted Capital Adjusted Free Net Sales Net Income by Operating EBITDA* Activities Expenditures Ca
Slide 10: 2023 Guidance: Net Sales by End Market
2023 Guidance: Net Sales by End Market ($ in millions) End Markets 2022 2023 Net Sales Midpoint Commentary North America On-Hwy $1,359 2% North America Off-Hwy $86 2% Defense $146 8% Outside North America On-Hwy $463 10% Outside North America Off-Hwy $127 2% Service Parts, Support Equipment & Other
Slide 11: Appendix
Appendix Non-GAAP Financial Information 11
Slide 12: Non-GAAP Reconciliations (1 of 3)
Non-GAAP Reconciliations (1 of 3) Adjusted EBITDA Reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2018 2019 2020 2021 2022 2021 2022 Net Income (GAAP) $639 $604 $299 $442 $531 $118 $141 plus: Interest expense, net 121 134 137 116 118 29 30 Inco
Slide 13: Non-GAAP Reconciliations (2 of 3)
Non-GAAP Reconciliations (2 of 3) Adjusted Free Cash Flow Reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2018 2019 2020 2021 2022 2021 2022 Net Cash Provided by Operating Activities (GAAP) $837 $847 $561 $635 $657 $168 $224 (Deductions) or Add
Slide 14: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2023 Low High Net Income (GAAP) $ 500 $ 550 plus: Depreciation and amortization 172 172 Interest expense, net 123 123 Income tax expense 149 159 Stock-based compensation expense 21 21 Adjusted E
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