Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q3 2022 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Oct 26, 2022
Slide 1: Q3 2022 Earnings Release
Q3 2022 Earnings Release October 26th, 2022 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 2022 Performance 2022 Guidance Update 4
Slide 5: Q3 2022 Performance Summary
Q3 2022 Performance Summary ($ in millions, except per share data) Q3 2022 Q3 2021 % Variance Net Sales $710 $567 25% Gross Profit $328 $261 26% Net Income $139 $94 48% Adjusted EBITDA(1) $245 $189 30% Diluted Earnings Per Share $1.45 $0.89 63% Net Sales: increase principally driven by: – 24 perce
Slide 6: Q3 2022 Net Sales Performance
Q3 2022 Net Sales Performance ($ in millions) End Markets Q3 2022 Q3 2021 % Variance Commentary Principally driven by continued strength in customer demand for last mile North America On-Hwy $340 $275 24% delivery, regional haul and vocational trucks North America Off-Hwy $24 $20 20% Principally dri
Slide 7: Q3 2022 Financial Performance
Q3 2022 Financial Performance ($ in millions, except per share data) Q3 2022 Q3 2021 $ Var % Var Commentary Increase was principally driven by higher demand in the NA On-Highway, Service Parts, Support Net Sales $710 $567 $143 25% Equipment & Other, Global Off-Highway, and ONA On-Highway end markets
Slide 8: Q3 2022 Cash Flow Performance
Q3 2022 Cash Flow Performance ($ in millions) Q3 2022 Q3 2021 $ Variance % Variance Commentary Principally driven by higher gross profit Net Cash Provided by partially offset by fluctuations in operating $207 $196 $11 6% Operating Activities working capital funding requirements and higher cash taxes
Slide 9: 2022 Guidance Update
2022 Guidance Update We are raising our full year 2022 guidance midpoints and narrowing ranges provided to the market on August 3. ($ in millions) Guidance Net Sales $2,690 to $2,740 Net Income $490 to $510 Adjusted EBITDA1 $915 to $945 Net Cash Provided by Operating Activities $620 to $650 Capital
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, 2017 2018 2019 2020 2021 2021 2022 2022 Net Income (GAAP) $504 $639 $604 $299 $442 $94 $139 $508 plus: Int
Slide 12: Non-GAAP Reconciliations (2 of 3)
Non-GAAP Reconciliations (2 of 3) Adjusted Free Cash Flow Reconciliation 12
Slide 13: Non-GAAP Reconciliations (3 of 3)
Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2022 Low High Net Income (GAAP) $ 490 $ 510 plus: Depreciation and amortization 155 155 Interest expense, net 118 118 Income tax expense 114 124 Stock-based compensation expense 17 17 Unrealized
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