Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2020 Earnings Presentation
14 slides from Allison Transmission's earnings presentation, Oct 28, 2020
Slide 1: Q3 2020 Earnings Release
Q3 2020 Earnings Release Published October 28, 2020 (Earnings Conference Call October 29, 2020) Dave 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 2020 Performance Q3 2020 Liquidity Update 2020 Guidance Update 4
Slide 5: Q3 2020 Performance Summary
Q3 2020 Performance Summary ($ in millions) Q3 2020 Q3 2019 % Variance Net Sales $532 $669 (20.4%) Gross Margin 47.7% 52.0% (430) bps Net Income $77 $149 (48.3%) Adjusted EBITDA(1) $174 $269 (35.3%) Commentary Net Sales: decrease was principally by driven the ongoing effects of the COVID-19 pandemic
Slide 6: Q3 2020 Sales Performance
Q3 2020 Sales Performance ($ in millions) End Markets Q3 2020 Q3 2019 % Variance Commentary Principally driven by lower demand for Rugged Duty North America On-Hwy $281 $369 (24%) Series and Highway Series models due to the effects of the pandemic Principally driven by lower demand for hydraulic Nor
Slide 7: Q3 2020 Financial Performance
Q3 2020 Financial Performance ($ in millions, except per share data) Q3 2020 Q3 2019 $ Var % Var Commentary Net Sales $532 $669 ($137) (20.4%) Decrease was principally driven by the ongoing effects of the pandemic on the global economy, resulting in lower demand in all end markets except for the Def
Slide 8: Q3 2020 Cash Flow Performance
Q3 2020 Cash Flow Performance ($ in millions) Q3 2020 Q3 2019 $ Variance % Variance Commentary Principally driven by lower gross profit partially offset by reductions in cash Net Cash Provided by income taxes, operating working $158 $212 ($54) (25.5%) capital requirements and commercial Operating Ac
Slide 9: Strong Liquidity Profile
Strong Liquidity Profile Cash and Available Borrowing Capacity of Long-term Debt Profile & Credit Statistics $846 million as of September 30, 2020 ($ in millions) 9/30/2020 — $251 million of cash and cash equivalents Cash and cash equilvalents $251 — $595 million of available revolving credit faci
Slide 10: 2020 Guidance Update
2020 Guidance Update ($ in millions) Guidance Net Sales $2,025 to $2,075 Net Income $285 to $315 Adjusted EBITDA $690 to $730 Net Cash Provided by Operating Activities $490 to $520 Adjusted Free Cash Flow $385 to $425 Capital Expenditures $107 to $117 • Full year 2020 Net Sales guidance reflects low
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 Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, September 30, September 30, 2015 2016 2017 2018 2019 2019 2020 2020 Net income (GAAP) $182 $215 $504 $639 $604 $149 $77 $346 plus: Int
Slide 13: 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, 2015 2016 2017 2018 2019 2019 2020 2020 Net Cash Provided by Operating Activities (GAAP) $580 $591
Slide 14: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2020 Low High Net Income (GAAP) $ 285 $ 315 plus: Depreciation and amortization 150 150 Interest expense, net 133 133 Income tax expense 83 93 Stock-based compensation expense 15 15 Restructurin
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