Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2021 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Oct 27, 2021
Slide 1: Q3 2021 Earnings Release
Q3 2021 Earnings Release October 27th, 2021 Dave Graziosi, Chairman & Chief Executive Officer Fred Bohley, Senior Vice 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 Q3 2021 Performance 2021 Guidance Update 4
Slide 5: Q3 2021 Performance Summary
Q3 2021 Performance Summary ($ in millions) Q3 2021 Q3 2020 % Variance Net Sales $567 $532 6.6% Gross Margin % 46.0% 47.7% (170) bps Net Income $94 $77 22.1% Adjusted EBITDA(1) $189 $174 8.6% Commentary Net Sales: increase was principally driven by higher demand in the ONA On-Highway, Global Off- Hi
Slide 6: Q3 2021 Sales Performance
Q3 2021 Sales Performance ($ in millions) End Markets Q3 2021 Q3 2020 % Variance Commentary Principally driven by lower demand due to supply chain, labor and raw material constraints North America On-Hwy $275 $281 (2%) impacting the broader commercial vehicle supply base Principally driven by higher
Slide 7: Q3 2021 Financial Performance
Q3 2021 Financial Performance ($ in millions, except per share data) Q3 2021 Q3 2020 $ Var % Var Commentary Increase was principally driven by higher demand in the ONA On-Highway, Net Sales $567 $532 $35 7% Global Off-Highway, and Service Parts, Support Equipment, and Other end markets and price inc
Slide 8: Q3 2021 Cash Flow Performance
Q3 2021 Cash Flow Performance ($ in millions) Q3 2021 Q3 2020 $ Variance % Variance Commentary Principally driven by lower operating working capital requirements and higher Net Cash Provided by $196 $162 $34 21.0% gross profit partially offset by higher cash Operating Activities interest expense and
Slide 9: 2021 Guidance Update
2021 Guidance Update ($ in millions) Guidance Commentary Guidance reflects higher demand in the Global On- Highway, Global Off-Highway, and Service Parts, Net Sales $2,325 to $2,400 Support Equipment & Other end markets as a result of the ongoing global economic recovery and price increases on certa
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, September 30, September 30, 2016 2017 2018 2019 2020 2020 2021 2021 Net income (GAAP) $215 $504 $639 $604 $299 $77 $94 $384 plus: Inte
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, September 30, September 30, 2016 2017 2018 2019 2020 2020 2021 2021 Net Cash Provided by Operating Activities (GAAP) $591 $658
Slide 13: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2021 Low High Net Income (GAAP) $ 395 $ 440 plus: Depreciation and amortization 152 152 Interest expense, net 117 117 Income tax expense 120 125 Stock-based compensation expense 15 15 Acquisitio
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