Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2021 Earnings Presentation
14 slides from Allison Transmission's earnings presentation, Feb 16, 2022
Slide 1: Q4 2021 Earnings Release
Q4 2021 Earnings Release February 16th, 2022 Dave Graziosi, Chairman & 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 Q4 2021 Performance 2022 Guidance 4
Slide 5: Q4 2021 Performance Summary
Q4 2021 Performance Summary ($ in millions) Q4 2021 Q4 2020 % Variance Net Sales $644 $535 20.4% Gross Margin % 47.4% 47.3% 10 bps Net Income $118 $60 96.7% Adjusted EBITDA(1) $220 $186 18.3% Commentary Net Sales: increase was principally driven by higher demand in the ONA On-Highway, NA Off-Highway
Slide 6: Q4 2021 Sales Performance
Q4 2021 Sales Performance ($ in millions) End Markets Q4 2021 Q4 2020 % Variance Commentary Principally driven by lower demand due to supply chain, labor and raw material constraints impacting North America On-Hwy $281 $284 -1% the commercial vehicle industry, partially offset by price increases on
Slide 7: Q4 2021 Financial Performance
Q4 2021 Financial Performance ($ in millions, except per share data) Q4 2021 Q4 2020 $ Var % Var Commentary Increase was principally driven by higher demand in the ONA On-Highway, NA Net Sales $644 $535 $109 20% Off-Highway, ONA Off-Highway and Service Parts, Support Equipment, and Other end markets
Slide 8: Q4 2021 Cash Flow Performance
Q4 2021 Cash Flow Performance ($ in millions) Q4 2021 Q4 2020 $ Variance % Variance Commentary Principally driven by higher gross profit and lower cash interest expense partially offset Net Cash Provided by $168 $159 $9 5.7% by higher operating working capital Operating Activities requirements and i
Slide 9: 2022 Guidance
2022 Guidance ($ in millions) Guidance Commentary Guidance reflects higher demand in the Global On- Highway, Global Off-Highway and Service Parts, Support Equipment & Other end markets as a Net Sales $2,625 to $2,775 result of the ongoing global economic recovery, continued strength in customer dema
Slide 10: 2022 Guidance – Net Sales by End Market
2022 Guidance – Net Sales by End Market ($ in millions) 2021 2022 End Markets Commentary Net Sales Midpoint Principally driven by higher Class 8 Straight and Medium North America On-Hwy $1,177 18% Duty truck production and price increases on certain products Principally driven by higher demand for h
Slide 11: Appendix: Non-GAAP Financial Information
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, 2017 2018 2019 2020 2021 2020 2021 Net Income (GAAP) $504 $639 $604 $299 $442 $60 $118 plus: Interest expense, net 103 121 134 137 116 37 29 Incom
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, 2017 2018 2019 2020 2021 2020 2021 Net Cash Provided by Operating Activities (GAAP) $658 $837 $847 $561 $635 $159 $168 (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, 2022 Low High Net Income (GAAP) $ 430 $ 520 plus: Depreciation and amortization 165 165 Income tax expense 132 152 Interest expense, net 119 119 Stock-based compensation expense 19 19 Adjusted E
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