Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2014 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Oct 27, 2014
Slide 1: Q3 2014 Earnings Release
Q3 2014 Earnings Release Published October 27, 2014 (Earnings Conference Call October 28, 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 Q3 2014 Performance Full Year 2014 Guidance Update 4
Slide 5: Q3 2014 Performance Summary
Q3 2014 Performance Summary ($ in millions) Q3 2014 Q3 2013 % Variance Net Sales $553 $466 18.7% Gross Margin % 46.9% 44.2% +270 bps Adjusted Net Income (1) $138 $101 35.7% Adjusted Free Cash Flow (1) $159 $116 37.6% Commentary Net Sales: the increase was principally driven by the continued recoveri
Slide 6: Q3 2014 Sales Performance
Q3 2014 Sales Performance ($ in millions) End Markets Q3 2014 Q3 2013 % Variance Commentary Principally driven higher demand for Rugged Duty Series North America On-Hwy $256 $212 21% models North America Hybrid- Principally driven by intra-year movement in the timing of Propulsion Systems for $23 $1
Slide 7: Q3 2014 Financial Performance
Q3 2014 Financial Performance ($ in millions, except share data) Q3 2014 Q3 2013 $ Var % Var Commentary Net Sales $553.3 $466.3 $87.0 18.7% Increase was principally driven by the continued recoveries in the North America On-Highway and Off-Highway end markets, and higher demand in the Service Parts,
Slide 8: Q3 2014 Cash Flow Performance
Q3 2014 Cash Flow Performance ($ in millions) Q3 2014 Q3 2013 $ Variance % Variance Commentary Net Cash Provided by Principally driven by increased $174 $131 $43 32.8% net sales Operating Activities CapEx $15 $15 $0 (3.2%) In line with prior year Principally driven by increased Adjusted Free Cash $1
Slide 9: Full Year 2014 Guidance Update
Full Year 2014 Guidance Update Guidance Commentary In the fourth quarter of 2014 we expect net sales to be higher than the same period in 2013. The anticipated year- over-year increase in fourth quarter net sales is expected to 7.5 to 9.0 be principally driven by higher demand in the North Net Sales
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, September 30, September 30, 2009 2010 2011 2012 2013 2013 2014 2014 Net (loss) income ($323.9) $29.6 $103.0 $5
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, September 30, September 30, 2009 2010 2011 2012 2013 2013 2014 2014 Net Cash Provided by Operating Activities $168.7 $388.9 $4
Allison Transmission Holdings — Q3 2014 Earnings Presentation on 6ix