Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2018 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Oct 29, 2018
Slide 1: Q3 2018 Earnings Release
Q3 2018 Earnings Release Published October 29, 2018 (Earnings Conference Call October 30, 2018) David Graziosi, President & Chief Executive Officer Fred Bohley, 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 2018 Performance 2018 Guidance Update 4
Slide 5: Q3 2018 Performance Summary
Q3 2018 Performance Summary ($ in millions) Q3 2018 Q3 2017 % Variance Net Sales $692 $595 16.3% Gross Margin % 53.2% 50.8% 240 bps Net Income $167 $111 50.5% Adjusted EBITDA(1) $295 $241 22.4% Commentary Net Sales: increase was principally driven by higher demand in the Global On-Highway, Outside N
Slide 6: Q3 2018 Sales Performance
Q3 2018 Sales Performance ($ in millions) End Markets Q3 2018 Q3 2017 % Variance Commentary Principally driven by higher demand for Rugged Duty Series North America On-Hwy $332 $301 10% models Principally driven by lower demand from hydraulic fracturing North America Off-Hwy $12 $17 (29%) applicatio
Slide 7: Q3 2018 Financial Performance
Q3 2018 Financial Performance ($ in millions, except per share data) Q3 2018 Q3 2017 $ Var % Var Commentary Net Sales $692 $595 $97 16.3% Increase was principally driven by higher demand in the Global On-Highway, Outside North America Off-Highway and Service Parts, Support Equipment & Other end mark
Slide 8: Q3 2018 Cash Flow Performance
Q3 2018 Cash Flow Performance ($ in millions) Q3 2018 Q3 2017 $ Variance % Variance Commentary Principally driven by increased gross profit and decreased cash interest expense partially offset by higher operating working Net Cash Provided by $239 $215 $24 11.2% capital requirements, increased produc
Slide 9: 2018 Guidance Update
2018 Guidance Update Guidance Commentary Guidance reflects increased demand in the Global On- 18 to 19 Highway and Global Off-Highway products, price Net Sales Change from 2017 increases on certain products and continued execution of percent our growth initiatives Net Income ($ in millions) $600 to
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, 2013 2014 2015 2016 2017 2017 2018 2018 Net income (GAAP) $165 $229 $182 $215 $504 $111 $167 $707 plus: In
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, 2013 2014 2015 2016 2017 2017 2018 2018 Net Cash Provided by Operating Activities (GAAP) $464 $573
Slide 13: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance reconciliation $ in millions Guidance Year Ending December 31, 2018 Low High Net Income (GAAP) $ 600 $ 620 plus: Income tax expense 171 173 Interest expense, net 122 120 Depreciation and amortization 164 164 UAW Local 933 retirement incentive 14 14 Stock-ba
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