Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2014 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Feb 9, 2015
Slide 1: Q4 2014 Earnings Release
Q4 2014 Earnings Release Published February 9, 2015 (Earnings Conference Call February 10, 2015) 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 Q4 2014 Performance 2015 Guidance 4
Slide 5: Q4 2014 Performance Summary
Q4 2014 Performance Summary ($ in millions) Q4 2014 Q4 2013 % Variance Net Sales $544 $491 10.9% Gross Margin % 47.0% 43.1% +390 bps Adjusted Net Income (1) $117 $78 50.7% Adjusted Free Cash Flow (1) $129 $109 18.0% Commentary Net Sales: the increase was principally driven by the continued recoverie
Slide 6: Q4 2014 Sales Performance
Q4 2014 Sales Performance ($ in millions) End Markets Q4 2014 Q4 2013 % Variance Commentary Principally driven by higher demand for Rugged Duty Series North America On-Hwy $256 $210 22% models Principally driven by intra-year movement in the timing of orders North America Hybrid- and lower demand du
Slide 7: Q4 2014 Financial Performance
Q4 2014 Financial Performance ($ in millions, except share data) Q4 2014 Q4 2013 $ Var % Var Commentary Net Sales $544.4 $491.0 $53.4 10.9% Increase principally driven by the continued recoveries in the North America On-Highway and Off-Highway end markets, and higher demand in the Service Parts, Sup
Slide 8: Q4 2014 Cash Flow Performance
Q4 2014 Cash Flow Performance ($ in millions) Q4 2014 Q4 2013 $ Variance % Variance Commentary Principally driven by increased net sales and price increases on certain products partially offset by Net Cash Provided by increased SG&A, product initiatives $141 $138 $3 2.0% spending, technology-related
Slide 9: 2015 Guidance – End Markets Net Sales Commentary
2015 Guidance – End Markets Net Sales Commentary ($ in millions) 2014 2015 End Market Commentary Net Sales Midpoint North America On-Hwy $988 +8% Principally driven by continued market recovery North America Hybrid- Principally driven by engine emissions improvements and non-hybrid alternative Propu
Slide 10: 2015 Guidance - Summary
2015 Guidance - Summary Guidance Commentary Guidance reflects a cautious approach given the heightened level of uncertainty and the lack of near term visibility and confidence in the global Off-Highway end markets. Our net sales outlook also assumes a continued Net Sales Change from 2014 0 to (5) pe
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 Net Income and Adjusted EBITDA reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2010 2011 2012 2013 2014 2013 2014 Net income $29.6 $103.0 $514.2 $165.4 $228.6 $42.9 $50.5 plus: Interest expense, net 27
Slide 13: Non-GAAP Reconciliations (2 of 2)
Non-GAAP Reconciliations (2 of 2) Adjusted Free Cash Flow reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2010 2011 2012 2013 2014 2013 2014 Net Cash Provided by Operating Activities $388.9 $469.2 $497.5 $453.5 $556.9 $138.1 $140.9 (Deductions)
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