Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2016 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Feb 6, 2017
Slide 1: Q4 2016 Earnings Release
Q4 2016 Earnings Release Published February 6, 2017 (Earnings Conference Call February 7, 2017) Lawrence Dewey, Chairman & Chief Executive Officer David Graziosi, 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 margin to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA margin provide management, investors and creditors with useful measures of the operational results of our business and increase
Slide 4: Call Agenda
Call Agenda Q4 2016 Performance 2017 Guidance 4
Slide 5: Q4 2016 Performance Summary
Q4 2016 Performance Summary ($ in millions) Q4 2016 Q4 2015 % Variance Net Sales $469 $478 (1.9%) Gross Margin % 46.4% 46.5% (10 bps) Net Income $61 $13 370.8% Adjusted EBITDA(1) $158 $170 (6.9%) Adjusted Free Cash Flow (1) $146 $147 (1.0%) Commentary Net Sales: decrease was principally driven by lo
Slide 6: Q4 2016 Sales Performance
Q4 2016 Sales Performance ($ in millions) End Markets Q4 2016 Q4 2015 % Variance Commentary Principally driven by lower demand for Rugged Duty Series and North America On-Hwy $217 $252 (14%) Highway Series models North America Hybrid- Principally driven by lower demand due to engine emissions Propul
Slide 7: Q4 2016 Financial Performance
Q4 2016 Financial Performance ($ in millions, except per share data) Q4 2016 Q4 2015 $ Var % Var Commentary Net Sales $468.9 $478.2 ($9.3) (1.9%) Decrease was principally driven by lower demand in the North America On-Highway and Global Off-Highway end markets partially offset by higher demand in th
Slide 8: Q4 2016 Cash Flow Performance
Q4 2016 Cash Flow Performance ($ in millions) Q4 2016 Q4 2015 $ Variance % Variance Commentary Principally driven by higher incentive compensation expense, decreased net sales, increased operating working capital(2) and excess tax benefit from Net Cash Provided by $175 $175 $0 0.2% stock-based compe
Slide 9: 2017 Guidance – End Markets Net Sales Commentary
2017 Guidance – End Markets Net Sales Commentary ($ in millions) 2016 2017 End Market Commentary Net Sales Midpoint Principally driven by higher Class 6/7 and Class 8 straight truck production partially North America On-Hwy $962 3% offset by lower School Bus and Motorhome production North America Hy
Slide 10: 2017 Guidance - Summary
2017 Guidance - Summary Guidance Commentary Guidance reflects a modest increase in the North American On-Highway end market. Allison‘s 2017 net sales outlook also assumes price increases on certain products and a 1.5 to 4.5 continued recovery in the Service Parts, Support Net Sales Change from 2016
Slide 11: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information 11
Slide 12: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted EBITDA reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, December 31, December 31, 2011 2012 2013 2014 2015 2015 2016 2016 Net income $103.0 $514.2 $165.4 $228.6 $182.3 $13.0 $61.2 $214.9 plu
Slide 13: 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, December 31, December 31, 2011 2012 2013 2014 2015 2015 2016 2016 Net Cash Provided by Operating Activities $469.2 $497.5 $463
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