Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2019 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Oct 30, 2019
Slide 1: Q3 2019 Earnings Release
Q3 2019 Earnings Release Published October 30, 2019 (Earnings Conference Call October 31, 2019) David Graziosi, President & 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 Q3 2019 Performance 2019 Guidance Update 4
Slide 5: Performance Summary
Q3 2019 Performance Summary ($ in millions) Q3 2019 Q3 2018 % Variance Net Sales $669 $692 (3.3%) Gross Margin % 52.0% 53.2% (120) bps Net Income $149 $167 (10.8%) Adjusted EBITDA(1) $269 $295 (8.8%) Commentary Net Sales: decrease was principally driven by lower demand in the Service Parts, Support
Slide 6: Sales Performance
Q3 2019 Sales Performance ($ in millions) End Markets Q3 2019 Q3 2018 % Variance Commentary Principally driven by higher demand for Rugged Duty Series and North America On-Hwy $369 $332 11.1% Highway Series models, led by the continued execution of our growth initiatives and market share gains in Cl
Slide 7: Financial Performance
Q3 2019 Financial Performance ($ in millions, except per share data) Q3 2019 Q3 2018 $ Var % Var Commentary Net Sales $669 $692 ($23) (3.3%) Decrease was principally driven by lower demand in the Service Parts, Support Equipment & Other and Global Off-Highway end markets partially offset by higher d
Slide 8: Cash Flow Performance
Q3 2019 Cash Flow Performance ($ in millions) Q3 2019 Q3 2018 $ Variance % Variance Commentary Principally driven by lower gross profit and Net Cash Provided by increased product initiatives spending $212 $239 ($27) (11.3%) partially offset by decreased cash income Operating Activities taxes Princip
Slide 9: 2019 Guidance Update
2019 Guidance Update ($ in millions) Guidance Commentary Full Year 2019 Guidance reflects lower demand in the Service Parts, Support Equipment & Other and North America Off-Highway end markets principally driven by lower demand from hydraulic fracturing applications Net Sales Change $2,650 to $2,700
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, September 30, September 30, 2014 2015 2016 2017 2018 2018 2019 2019 Net income (GAAP) $229 $182 $215 $504 $639 $167 $149 $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, 2014 2015 2016 2017 2018 2018 2019 2019 Net Cash Provided by Operating Activities (GAAP) $573 $580
Slide 13: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2019 Low High Net Income (GAAP) $ 555 $ 575 plus: Income tax expense 158 168 Interest expense, net 135 135 Depreciation and amortization 164 164 Stock-based compensation expense 14 14 Expenses r
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