Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q1 2014 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Apr 16, 2014
Slide 1: Q1 2014 Earnings Release
Q1 2014 Earnings Release Published April 16, 2014 (Earnings Conference Call April 17, 2014) Lawrence Dewey, Chairman, President & Chief Executive Officer David Graziosi, Executive Vice President & Chief Financial Officer
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 Q1 2014 Performance Full Year 2014 Guidance Update 4
Slide 5: Q1 2014 Performance Summary
Q1 2014 Performance Summary ($ in millions) Q1 2014 Q1 2013 % Variance Net Sales $494 $457 7.9% Gross Margin % 45.1% 43.4% +170 bps Adjusted Net Income (1) $108 $80 35.7% Adjusted Free Cash Flow (1) $91 $48 88.8% Commentary Net Sales: the increase was principally driven by the continued recovery in
Slide 6: Q1 2014 Sales Performance
Q1 2014 Sales Performance ($ in millions) End Markets Q1 2014 Q1 2013 % Variance Commentary Increased demand for Rugged Duty, Highway and Pupil North America On-Hwy $233 $188 24% Transport/Shuttle Series models North America Hybrid- Lower demand due to engine emissions improvements and Propulsion Sy
Slide 7: Q1 2014 Financial Performance
Q1 2014 Financial Performance ($ in millions, except share data) Q1 2014 Q1 2013 $ Var % Var Commentary Net Sales $493.6 $457.4 $36.2 7.9% Increase was principally driven by the continued recovery in the North America On-Highway end market and higher demand in the Service Parts, Support Equipment an
Slide 8: Q1 2014 Cash Flow Performance
Q1 2014 Cash Flow Performance ($ in millions) Q1 2014 Q1 2013 $ Variance % Variance Commentary Principally driven by increased Net Cash Provided by $99 $55 $44 80.3% net income and deferred Operating Activities revenue Lower product initiatives spending partially offset by CapEx $11 $13 ($2) (11.9%)
Slide 9: Full Year 2014 Guidance Update
Full Year 2014 Guidance Update Guidance Commentary Consistent with our previous guidance we expect a continued recovery in the North America On-Highway end market, lower demand in the North America Hybrid- Propulsion Systems for Transit Bus end market due to engine emissions improvements and non-hyb
Slide 10: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information
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, March 31, March 31, 2009 2010 2011 2012 2013 2013 2014 2014 Net (loss) income ($323.9) $29.6 $103.0 $514.2 $16
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, 2009 2010 2011 2012 2013 2013 2014 2014 Net Cash Provided by Operating Activities $168.7 $388.9 $469.2 $49
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