Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q1 2017 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Apr 26, 2017
Slide 1: Q1 2017 Earnings Release
Q1 2017 Earnings Release Published April 26, 2017 (Earnings Conference Call April 27, 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 Q1 2017 Performance 2017 Guidance Update 4
Slide 5: Performance Summary
Q1 2017 Performance Summary ($ in millions) Q1 2017 Q1 2016 % Variance Net Sales $499 $462 8.0% Gross Margin % 50.3% 46.5% 380 bps Net Income $83 $48 72.9% Adjusted EBITDA(1) $192 $162 18.5% Adjusted Free Cash Flow (1) $103 $113 (8.8%) Commentary Net Sales: increase was principally driven by higher
Slide 6: Sales Performance
Q1 2017 Sales Performance ($ in millions) End Markets Q1 2017 Q1 2016 % Variance Commentary Principally driven by lower demand for Highway Series and North America On-Hwy $255 $257 (1%) Rugged Duty Series models partially offset by higher demand in Pupil Transport/Shuttle and Transit/Other Bus model
Slide 7: Financial Performance
Q1 2017 Financial Performance ($ in millions, except per share data) Q1 2017 Q1 2016 $ Var % Var Commentary Net Sales $499 $462 $37 8.0% Increase was principally driven by higher demand in the Service Parts, Support Equipment & Other end market Cost of Sales $248 $247 ($1) (0.4%) Gross Profit $251 $
Slide 8: Cash Flow Performance
Q1 2017 Cash Flow Performance ($ in millions) Q1 2017 Q1 2016 $ Variance % Variance Commentary Principally driven by higher accounts receivable commensurate with increased net sales, higher inventories and increased Net Cash Provided by incentive compensation payments partially $111 $118 ($7) (5.9%)
Slide 9: 2017 Guidance Update
2017 Guidance Update Guidance Commentary Guidance reflects stronger demand for North America Off- Highway service parts and North America On-Highway 7.5 to 10.5 Net Sales Change from 2016 products. Our full year 2017 net sales outlook also percent assumes price increases on certain products and a mo
Slide 10: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information 10
Slide 11: 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, March 31, March 31, 2012 2013 2014 2015 2016 2016 2017 2017 Net income $514 $165 $229 $182 $215 $48 $83 $250 plus: Interest expense, n
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, March 31, March 31, 2012 2013 2014 2015 2016 2016 2017 2017 Net Cash Provided by Operating Activities $498 $464 $573 $580 $591
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