Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2015 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Feb 8, 2016
Slide 1: Q4 2015 Earnings Release
Q4 2015 Earnings Release Published February 8, 2016 (Earnings Conference Call February 9, 2016) 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 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 2015 Performance 2016 Guidance 4
Slide 5: Q4 2015 Performance Summary
Q4 2015 Performance Summary ($ in millions) Q4 2015 Q4 2014 % Variance Net Sales $478 $544 (12.2%) Gross Margin % 46.5% 47.0% (50 bps) Adjusted Net Income (1) $123 $117 4.9% Adjusted Free Cash Flow (1) $146 $129 13.2% Commentary Net Sales: the decrease was principally driven by lower demand in the g
Slide 6: Q4 2015 Sales Performance
Q4 2015 Sales Performance ($ in millions) End Markets Q4 2015 Q4 2014 % Variance Commentary Principally driven by lower demand for Pupil Transport / Shuttle North America On-Hwy $252 $256 (2%) Series models North America Hybrid- Propulsion Systems for $23 $17 35% Principally driven by intra-year mov
Slide 7: Q4 2015 Financial Performance
Q4 2015 Financial Performance ($ in millions, except share data) Q4 2015 Q4 2014 $ Var % Var Commentary Net Sales $478.2 $544.4 ($66.2) (12.2%) Decrease was principally driven by lower demand in the global Off-Highway and Defense end markets, partially offset by price increases on certain products C
Slide 8: Q4 2015 Cash Flow Performance
Q4 2015 Cash Flow Performance ($ in millions) Q4 2015 Q4 2014 $ Variance % Variance Commentary Principally driven by lower excess tax benefit from stock-based compensation, reduced operating working capital, price increases on certain products, favorable material costs, lower global commercial Net C
Slide 9: 2016 Guidance – End Markets Net Sales Commentary
2016 Guidance – End Markets Net Sales Commentary ($ in millions) 2015 2016 End Market Commentary Net Sales Midpoint Principally driven by persistently high commercial vehicle retail inventory levels and North America On-Hwy $1,059 (7%) lower Class 8 straight truck production North America Hybrid- Pr
Slide 10: 2016 Guidance - Summary
2016 Guidance - Summary Guidance Commentary Guidance reflects expectations for tempering demand conditions in the North America On-Highway end market, no meaningful relief from the global Off-Highway end (6.5) to (9.5) market challenges and divergent global economic Net Sales Change from 2015 enviro
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 2015 2014 2015 Net income $29.6 $103.0 $514.2 $165.4 $228.6 $182.3 $50.5 $13.0 plus: Interest expe
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 2015 2014 2015 Net Cash Provided by Operating Activities $388.9 $469.2 $497.5 $453.5 $556.9 $563.8 $140.9 $173.8
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