Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2016 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Jul 27, 2016
Slide 1: Q2 2016 Earnings Release
Q2 2016 Earnings Release Published July 27, 2016 (Earnings Conference Call July 28, 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 EBITDA and Adjusted EBITDA margin to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA margin provide management, investors and creditors with useful measures of the operational results of our business and increase
Slide 4: Call Agenda
Call Agenda Q2 2016 Performance Full Year 2016 Guidance Update 4
Slide 5: Q2 2016 Performance Summary
Q2 2016 Performance Summary ($ in millions) Q2 2016 Q2 2015 % Variance Net Sales $475 $511 (7.1%) Gross Margin % 47.7% 46.2% 150 bps Net Income $61 $54 11.8% Adjusted EBITDA(1) $173 $186 (6.6%) Adjusted Free Cash Flow (1) $157 $138 13.3% Commentary Net Sales: decrease was principally driven by lower
Slide 6: Q2 2016 Sales Performance
Q2 2016 Sales Performance ($ in millions) End Markets Q2 2016 Q2 2015 % Variance Commentary Principally driven by lower demand for Highway Series and North America On-Hwy $264 $277 (5%) Rugged Duty Series models partially offset by higher demand for Pupil Transport/Shuttle Series models North Americ
Slide 7: Q2 2016 Financial Performance
Q2 2016 Financial Performance ($ in millions, except share data) Q2 2016 Q2 2015 $ Var % Var Commentary Net Sales $474.9 $511.0 ($36.1) (7.1%) Decrease was principally driven by lower demand in the global Off-Highway, North America On-Highway and Service Parts, Support Equipment & Other end markets
Slide 8: Q2 2016 Cash Flow Performance
Q2 2016 Cash Flow Performance ($ in millions) Q2 2016 Q2 2015 $ Variance % Variance Commentary Principally driven by reductions in operating working capital and lower cash Net Cash Provided by $170 $152 $18 12.1% interest expense partially offset by Operating Activities decreased net sales and incre
Slide 9: 2016 Guidance Update - Summary
2016 Guidance Update - Summary Guidance Commentary Guidance reflects expectations for no meaningful relief from the global Off-Highway end market challenges and further weakening in North America On-Highway demand. (9.5) to (10.5) Net Sales Change from 2015 Guidance also assumes previously considere
Slide 10: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information 10
Slide 11: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted EBITDA reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, June 30, June 30, 2011 2012 2013 2014 2015 2015 2016 2016 Net income $103.0 $514.2 $165.4 $228.6 $182.3 $54.4 $60.8 $168.6 plus: Inter
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, June 30, June 30, 2011 2012 2013 2014 2015 2015 2016 2016 Net Cash Provided by Operating Activities $469.2 $497.5 $463.5 $573.
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