Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2023 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Oct 25, 2023
Slide 1: Q3 2023 Earnings Release
Q3 2023 Earnings Release October 25th, 2023 Dave Graziosi, Chairman & CEO Fred Bohley, Senior Vice President, CFO & Treasurer 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 Q3 2023 Performance 2023 Guidance 4
Slide 5: Q3 2023 Performance Summary
Q3 2023 Performance Summary ($ in millions, except per share data; variance % from Q3 2022) Net Sales Gross Profit Net Income Adjusted EBITDA* Diluted Earnings Per Share $736 $357 $158 $267 $1.76 +4% +9% +14% +9% +21% Increase principally driven by: $36 million increase in net Increase was principal
Slide 6: Q3 2023 Net Sales Performance
Q3 2023 Net Sales Performance ($ in millions, variance % from Q3 2022) End Markets Q3 2023 Variance Commentary Principally driven by strength in demand for Class 8 vocational and North America On-Hwy $376 11% medium-duty trucks and price increases on certain products North America Off-Hwy $9 (63%) P
Slide 7: Q3 2023 Financial Performance
Q3 2023 Financial Performance ($ in millions, except per share data) Q3 2023 $ Variance* % Variance* Commentary Net Sales $736 $26 4% Increase was principally driven by strength in the North America On Highway, Service Parts, Support Equipment & Other and Defense End Markets and price increases on c
Slide 8: Q3 2023 Cash Flow Performance
Q3 2023 Cash Flow Performance ($ in millions, variances from Q3 2022) Q3 2023 $ Variance % Variance Commentary Net Cash Provided by Principally driven by higher gross profit partially offset by higher cash income taxes $212 $5 2.4% Operating Activities CapEx $30 $5 20.0% Principally driven by intra-
Slide 9: 2023 Guidance
2023 Guidance ($ in millions) Reaffirming full year 2023 guidance provided to the market on July 27, 2023 $2,960 - $3,040 $575 - $625 $1,050 - $1,110 $675 - $725 $125 - $135 $550 - $590 Net Cash Provided Adjusted Capital Adjusted Free Net Sales Net Income by Operating EBITDA* Activities Expenditures
Slide 10: Appendix
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, September 30, September 30, 2018 2019 2020 2021 2022 2022 2023 2023 Net Income (GAAP) $639 $604 $299 $442 $531 $139 $158 $644 plus: In
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, September 30, September 30, 2018 2019 2020 2021 2022 2022 2023 2023 Net Cash Provided by Operating Activities (GAAP) $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, 2023 Low High Net Income (GAAP) $ 575 $ 625 plus: Depreciation and amortization 175 175 Income tax expense 161 171 Interest expense, net 118 118 Stock-based compensation expense 24 24 Technology
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