Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2012 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Oct 29, 2012
Slide 1: Q3 2012 Earnings Release
Q3 2012 Earnings Release October 29, 2012 Lawrence Dewey, Chairman, President & Chief Executive Officer David Graziosi, Executive 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). Most forward-looking statements contain words that identify them as forward-looking, such as “may”, “plan”, “
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information We use Adjusted net income, Adjusted EBITDA, Adjusted EBITDA excluding technology-related license expenses, Adjusted EBITDA margin, Adjusted EBITDA margin excluding technology-related license expenses, adjusted free cash flow and free cash flow to evaluate our performa
Slide 4: Call Agenda
Call Agenda Q3 2012 Performance End Markets Commentary Full Year 2012 Guidance Update 4
Slide 5: Q3 2012 Performance Summary
Q3 2012 Performance Summary ($ in millions) Q3 2012 Q3 2011 % Variance Net Sales $494 $574 (14.0%) Gross Margin % 45.5% 44.9% +60 bps Adjusted Net Income (1) $100 $131 (24.2%) Adjusted Free Cash Flow (1) $120 $176 (32.1%) Commentary Net Sales: decreased demand for North America Off-Highway products
Slide 6: Q3 2012 Sales Performance
Q3 2012 Sales Performance ($ in millions) End Markets Q3 2012 Q3 2011 % Variance Commentary North America On-Hwy $189 $199 (5%) Diminished commercial vehicle production North America Hybrid- Propulsion Systems for $30 $28 +7% Timing of orders Transit Bus Decreased demand from natural gas hydraulic N
Slide 7: Q3 2012 Financial Performance
Q3 2012 Financial Performance ($ in millions) Q3 2012 Q3 2011 $ Var % Var Commentary Net Sales $493.5 $574.0 ($80.5) (14.0%) Decreased demand for North America Off-Highway, North America On-Highway, Military and Service Parts, Support Equipment & Other products partially offset by price increases on
Slide 8: Q3 2012 Cash Flow Performance
Q3 2012 Cash Flow Performance ($ in millions) Q3 2012 Q3 2011 $ Variance % Variance Commentary Reduced sales volume, inconsistent commercial Cash Provided by $139 $204 ($65) (31.8%) vehicle production Operating Activities schedules and labor negotiations planning Increased new product initiatives an
Slide 9: End Markets Commentary
End Markets Commentary • North America On-Highway • Market recovery stalled by heightened economic uncertainty • Expect full year net sales growth of 8 percent • North America Hybrid-Propulsion Systems for Transit Bus • Municipal spending constraints and value proposition challenges • Expect full ye
Slide 10: Full Year 2012 Guidance Update
Full Year 2012 Guidance Update Guidance Commentary on Full Year Assumes fourth quarter year over year net sales reductions in North America Off-Highway, Global On-Highway, Tracked Military and Service Parts, Support Equipment & Other end markets partially Net Sales Growth from 2011 (2.5) to (3.5) pe
Slide 11: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information 11
Slide 12: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted Net Income and Adjusted EBITDA reconciliation Three months ended Last twelve months $ in millions For the year ended December 31, September 30, ended September 30, 2009 2010 2011 2011 2012 2012 Net (loss) income ($323.9) $29.6 $103.0 $38.8 $32.2 $547.5 plus
Slide 13: 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 For the year ended December 31, September 30, September 30, 2009 2010 2011 2011 2012 2012 Net Cash Provided by Operating Activities $168.7 $388.9 $469.2 $203.6 $138.9 $4
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