Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2017 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Jul 31, 2017
Slide 1: Q2 2017 Earnings Release
Q2 2017 Earnings Release Published July 31, 2017 (Earnings Conference Call August 1, 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 Q2 2017 Performance 2017 Guidance Update 4
Slide 5: Performance Summary
Q2 2017 Performance Summary ($ in millions) Q2 2017 Q2 2016 % Variance Net Sales $580 $475 22.1% Gross Margin % 50.0% 47.8% 220 bps Net Income $95 $61 55.7% Adjusted EBITDA(1) $225 $173 30.1% Adjusted Free Cash Flow (1) $154 $157 (1.9%) Commentary Net Sales: increase was principally driven by higher
Slide 6: Sales Performance
Q2 2017 Sales Performance ($ in millions) End Markets Q2 2017 Q2 2016 % Variance Commentary Principally driven by higher demand for Rugged Duty Series, North America On-Hwy $299 $264 13% Highway Series and Transit/Other Bus models partially offset by lower demand in Pupil Transport/Shuttle models No
Slide 7: Financial Performance
Q2 2017 Financial Performance ($ in millions, except per share data) Q2 2017 Q2 2016 $ Var % Var Commentary Net Sales $580 $475 $105 22.1% Increase was principally driven by higher demand in the Service Parts, Support Equipment & Other and Global On-Highway end markets Cost of Sales $290 $248 ($42)
Slide 8: Cash Flow Performance
Q2 2017 Cash Flow Performance ($ in millions) Q2 2017 Q2 2016 $ Variance % Variance Commentary Principally driven by increased accounts receivable commensurate with increased Net Cash Provided by net sales, increased cash income taxes $166 $170 ($4) (2.4%) and increased cash interest expense Operati
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, North America 15 to 17 Net Sales Change from 2016 On-Highway products and Global Off-Highway products. percent Our full year 2017 net sales outlook also as
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, June 30, June 30, 2012 2013 2014 2015 2016 2016 2017 2017 Net income $514 $165 $229 $182 $215 $61 $95 $284 plus: Interest expense, net
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, 2012 2013 2014 2015 2016 2016 2017 2017 Net Cash Provided by Operating Activities $498 $464 $573 $580 $591 $
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