Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q1 2018 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Apr 30, 2018
Slide 1: Q1 2018 Earnings Release
Q1 2018 Earnings Release Published April 30, 2018 (Earnings Conference Call May 1, 2018) 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 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 Q1 2018 Performance 2018 Guidance Update 4
Slide 5: Q1 2018 Performance Summary
Q1 2018 Performance Summary ($ in millions) Q1 2018 Q1 2017 % Variance Net Sales $663 $499 32.9% Gross Margin % 51.6% 50.3% 130 bps Net Income $151 $83 81.9% Adjusted EBITDA(1) $275 $192 43.2% Commentary Net Sales: increase was principally driven by higher demand in the Global On-Highway, Service Pa
Slide 6: Q1 2018 Sales Performance
Q1 2018 Sales Performance ($ in millions) End Markets Q1 2018 Q1 2017 % Variance Commentary Principally driven by higher demand for Rugged Duty Series North America On-Hwy $315 $255 24% models North America Electric Hybrid-Propulsion $24 $20 20% Principally driven by the timing of certain transit pr
Slide 7: Q1 2018 Financial Performance
Q1 2018 Financial Performance ($ in millions, except per share data) Q1 2018 Q1 2017 $ Var % Var Commentary Net Sales $663 $499 $164 32.9% Increase was principally driven by higher demand in the Global On-Highway, Service Parts, Support Equipment & Other and Global Off-Highway end markets Cost of Sa
Slide 8: Q1 2018 Cash Flow Performance
Q1 2018 Cash Flow Performance ($ in millions) Q1 2018 Q1 2017 $ Variance % Variance Commentary Principally driven by increased gross profit, higher accounts payable, decreased cash interest expense and decreased cash Net Cash Provided by $153 $111 $42 37.8% income taxes partially offset by higher Op
Slide 9: 2018 Guidance Update
2018 Guidance Update Guidance Commentary Guidance reflects stronger demand for Global On-Highway 10 to 14 Net Sales Change from 2017 products and Global Off-Highway products and price percent increases on certain products Net Income ($ in millions) $515 to $550 Adjusted EBITDA ($ in millions) $975 t
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, March 31, March 31, 2013 2014 2015 2016 2017 2017 2018 2018 Net income (GAAP) $165 $229 $182 $215 $504 $83 $151 $572 plus: Interest ex
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, March 31, March 31, 2013 2014 2015 2016 2017 2017 2018 2018 Net Cash Provided by Operating Activities (GAAP) $464 $573 $580 $5
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) $ 515 $ 550 plus: Income tax expense 144 154 Interest expense, net 118 123 Depreciation and amortization 168 168 UAW Local 933 retirement incentive (a) 15 15 Stoc
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