Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2018 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Jul 30, 2018
Slide 1: Q2 2018 Earnings Release
Q2 2018 Earnings Release Published July 30, 2018 (Earnings Conference Call July 31, 2018) David Graziosi, President & Chief Executive Officer Fred Bohley, 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 Q2 2018 Performance 2018 Guidance Update 4
Slide 5: Q2 2018 Performance Summary
Q2 2018 Performance Summary ($ in millions) Q2 2018 Q2 2017 % Variance Net Sales $711 $580 22.6% Gross Margin % 52.6% 50.0% 260 bps Net Income $174 $95 83.2% Adjusted EBITDA(1) $297 $225 32.0% Commentary Net Sales: increase was principally driven by higher demand in the Global On-Highway, Global Off
Slide 6: Sales Performance
Q2 2018 Sales Performance ($ in millions) End Markets Q2 2018 Q2 2017 % Variance Commentary Principally driven by higher demand for Rugged Duty Series North America On-Hwy $343 $314 9% models Principally driven by higher demand from hydraulic fracturing North America Off-Hwy $31 $5 520% applications
Slide 7: Financial Performance
Q2 2018 Financial Performance ($ in millions, except per share data) Q2 2018 Q2 2017 $ Var % Var Commentary Net Sales $711 $580 $131 22.6% Increase was principally driven by higher demand in the Global On-Highway, Global Off-Highway and Service Parts, Support Equipment & Other end markets Cost of Sa
Slide 8: Cash Flow Performance
Q2 2018 Cash Flow Performance ($ in millions) Q2 2018 Q2 2017 $ Variance % Variance Commentary Principally driven by increased gross profit partially offset by increased defined Net Cash Provided by benefit pension plans funding payments, $213 $166 $47 28.3% increased cash income taxes, increased Op
Slide 9: 2018 Guidance Update
2018 Guidance Update Guidance Commentary Guidance reflects increased demand in the Global On- 15 to 18 Highway and Global Off-Highway end-markets, price Net Sales Change from 2017 increases on certain products and continued execution of percent our growth initiatives Net Income ($ in millions) $570
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, June 30, June 30, 2013 2014 2015 2016 2017 2017 2018 2018 Net income (GAAP) $165 $229 $182 $215 $504 $95 $174 $651 plus: Interest expe
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, June 30, June 30, 2013 2014 2015 2016 2017 2017 2018 2018 Net Cash Provided by Operating Activities (GAAP) $464 $573 $580 $591
Slide 13: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance reconciliation $ in millions Guidance Year Ending December 31, 2018 Low High Net Income (GAAP) $ 570 $ 600 plus: Income tax expense 154 161 Interest expense, net 119 122 Depreciation and amortization 166 166 UAW Local 933 retirement incentive 15 15 Stock-ba
Allison Transmission Holdings — Q2 2018 Earnings Presentation on 6ix