Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2023 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Jul 27, 2023
Slide 1: Q2 2023 Earnings Release
Q2 2023 Earnings Release July 27, 2023 Dave Graziosi, Chairman & CEO Fred Bohley, Senior Vice President, CFO & Treasurer 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 Q2 2023 Performance 2023 Guidance Update 4
Slide 5: Q2 2023 Performance Summary
Q2 2023 Performance Summary ($ in millions, except per share data; variance % from Q2 2022) Net Sales Gross Profit Net Income Adjusted EBITDA* Diluted Earnings Per Share $783 $381 $175 $288 $1.92 +18% +23% +43% +27% +52% Increase principally driven by: $57 million increase in net Increase was princi
Slide 6: Q2 2023 Net Sales Performance
Q2 2023 Net Sales Performance ($ in millions, variance % from Q2 2022) End Markets Q2 2023 Variance Commentary Principally driven by strength in customer demand for medium-duty and North America On-Hwy $397 17% Class 8 vocational trucks and price increases on certain products Principally driven by h
Slide 7: Q2 2023 Financial Performance
Q2 2023 Financial Performance ($ in millions, except per share data) Q2 2023 $ Variance* % Variance* Commentary Net Sales $783 $119 18% Increase was principally driven by higher demand in the North America On Highway, Service Parts, Support Equipment & Other and Outside North America On-Highway End
Slide 8: Q2 2023 Cash Flow Performance
Q2 2023 Cash Flow Performance ($ in millions, variance from Q2 2022) Q2 2023 $ Variance % Variance Commentary Principally driven by higher gross profit and lower operating working capital Net Cash Provided by requirements partially offset by higher cash income taxes and increased commercial $141 $77
Slide 9: 2023 Guidance (provided on July 27, 2023)
2023 Guidance (provided on July 27, 2023) ($ in millions) Increased full year 2023 Net Sales, Net Income, Adjusted EBITDA, Net Cash Provided by Operating Activities and Adjusted Free Cash Flow guidance ranges $2,960 - $3,040 $575 - $625 $1,050 - $1,110 $675 - $725 $125 - $135 $550 - $590 Net Cash Pr
Slide 10: Appendix
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, June 30, June 30, 2018 2019 2020 2021 2022 2022 2023 2023 Net Income (GAAP) $639 $604 $299 $442 $531 $122 $175 $625 plus: Interest exp
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, June 30, June 30, 2018 2019 2020 2021 2022 2022 2023 2023 Net Cash Provided by Operating Activities (GAAP) $837 $847 $561 $635
Slide 13: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2023 Low High Net Income (GAAP) $ 575 $ 625 plus: Depreciation and amortization 170 170 Income tax expense 171 181 Interest expense, net 118 118 Stock-based compensation expense 22 22 Unrealized
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