Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2023 Earnings Presentation
14 slides from Allison Transmission's earnings presentation, Feb 13, 2024
Slide 1: Q4 2023 Earnings Release
Q4 2023 Earnings Release February 13th, 2024 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 Q4 2023 Performance 2024 Guidance 4
Slide 5: Q4 2023 Performance Summary
Q4 2023 Performance Summary ($ in millions, except per share data; variance % from Q4 2022) Net Sales Gross Profit Net Income Adjusted EBITDA* Diluted Earnings Per Share $775 $371 $170 $277 $1.91 +8% +10% +21% +13% +26% Increase principally driven by: 14 percent increase in net Increase was principa
Slide 6: Q4 2023 Net Sales Performance
Q4 2023 Net Sales Performance ($ in millions, variance % from Q4 2022) End Markets Q4 2023 Variance Commentary Principally driven by strength in demand for class 8 vocational and North America On-Hwy $380 14% medium-duty trucks and price increases on certain products North America Off-Hwy $5 (79%) P
Slide 7: Q4 2023 Financial Performance
Q4 2023 Financial Performance ($ in millions, except per share data) Q4 2023 $ Variance* % Variance* Commentary Net Sales $775 $57 8% Increase was principally driven by strength in the North America On-Highway, Defense, Outside North America Off-Highway and Service Parts, Support Equipment & Other E
Slide 8: Q4 2023 Cash Flow Performance
Q4 2023 Cash Flow Performance ($ in millions, variances from Q4 2022) Q4 2023 $ Variance % Variance Commentary Net Cash Provided by Principally driven by higher gross profit and lower operating working capital funding $238 $14 6.3% Operating Activities requirements CapEx $52 ($40) (43.5%) Principall
Slide 9: 2024 Guidance
2024 Guidance ($ in millions) Full year 2024 guidance ranges provided to the market on February 13, 2024 $3,050 - $3,150 $635 - $685 $1,070 - $1,130 $700 - $760 $125 - $135 $575 - $625 Net Cash Provided Adjusted Capital Adjusted Free Net Sales Net Income by Operating EBITDA* Activities Expenditures
Slide 10: 2024 Guidance: Net Sales by End Market
2024 Guidance: Net Sales by End Market ($ in millions) End Markets 2023 2024 Net Sales Midpoint North America On-Hwy $1,529 (2%) North America Off-Hwy $63 (60%) Defense $166 34% Outside North America On-Hwy $477 14% Outside North America Off-Hwy $104 20% Service Parts, Support Equipment & Other $696
Slide 11: Appendix
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, 2019 2020 2021 2022 2023 2022 2023 Net Income (GAAP) $604 $299 $442 $531 $673 $141 $170 plus: Income tax expense 164 94 130 114 154 28 36 Deprecia
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, 2019 2020 2021 2022 2023 2022 2023 Net Cash Provided by Operating Activities (GAAP) $847 $561 $635 $657 $784 $224 $238 (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, 2024 Low High Net Income (GAAP) $ 635 $ 685 plus: Income Depreciation tax expense and amortization 170 180 Depreciation Income tax expense of property, plant and equipment 112 112 Interest expen
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