Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2013 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Oct 28, 2013
Slide 1: Q3 2013 Earnings Release
Q3 2013 Earnings Release October 28, 2013 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). 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 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 2013 Performance Full Year 2013 Guidance Update 4
Slide 5: Q3 2013 Performance Summary
Q3 2013 Performance Summary ($ in millions) Q3 2013 Q3 2012 % Variance Net Sales $466 $494 (5.5%) Gross Margin % 44.2% 45.5% (130 bps) Adjusted Net Income (1) $101 $100 1.8% Adjusted Free Cash Flow (1) $116 $120 (3.3%) Commentary Net Sales: the decrease was principally driven by previously contempla
Slide 6: Q3 2013 Sales Performance
Q3 2013 Sales Performance ($ in millions) End Markets Q3 2013 Q3 2012 % Variance Commentary Increased demand for Rugged Duty and North America On-Hwy $212 $189 12% Highway Series models North America Hybrid- Decreased demand and intra-year movement in Propulsion Systems for $15 $30 (50%) the timing
Slide 7: Q3 2013 Financial Performance
Q3 2013 Financial Performance ($ in millions, except share data) Q3 2013 Q3 2012 $ Var % Var Commentary Net Sales $466.3 $493.5 ($27.2) (5.5%) Decrease was principally driven by previously contemplated reductions in U.S. defense spending, lower demand in the North America energy sector’s hydraulic f
Slide 8: Q3 2013 Cash Flow Performance
Q3 2013 Cash Flow Performance ($ in millions) Q3 2013 Q3 2012 $ Variance % Variance Commentary Principally driven by decreased Net Cash Provided by $131 $139 ($8) (5.7%) net sales and lower other Operating Activities liabilities, net Principally driven by lower 2013 CapEx $15 $31 ($16) (51.0%) produ
Slide 9: Full Year 2013 Guidance Update
Full Year 2013 Guidance Update Guidance Commentary We expect net sales to stabilize on a year-over- year basis, an improvement relative to the sales decline through the first three quarters of the year. We continue to anticipate improving trends in the Net Sales fourth quarter of 2013 which we expec
Slide 10: Appendix
APPENDIX Non-GAAP Financial Information 10
Slide 11: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted Net Income and Adjusted EBITDA reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, September 30, September 30, 2009 2010 2011 2012 2012 2013 2013 Net (loss) income ($323.9) $29.6 $103.0 $514.2
Slide 12: 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, Unaudited For the year ended December 31, September 30, September 30, 2009 2010 2011 2012 2012 2013 2013 Net Cash Provided by Operating Activities $168.7 $388.9 $469.2
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