Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2020 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Aug 4, 2020
Slide 1: Q2 2020 Earnings Release
Q2 2020 Earnings Release Published August 4, 2020 Dave Graziosi, President & 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 Q2 2020 Performance Q2 2020 Liquidity Update 4
Slide 5: Q2 2020 Performance Summary
Q2 2020 Performance Summary ($ in millions) Q2 2020 Q2 2019 % Variance Net Sales $377 $737 (48.8%) Gross Margin % 43.8% 52.8% (900) bps Net Income $23 $181 (87.3%) Adjusted EBITDA(1) $115 $308 (62.7%) Commentary Net Sales: decrease was principally driven by the ongoing effects of the COVID-19 pandem
Slide 6: Q2 2020 Sales Performance
Q2 2020 Sales Performance ($ in millions) End Markets Q2 2020 Q2 2019 % Variance Commentary Principally driven by lower demand for Rugged North America On-Hwy $164 $398 (59%) Duty Series and Highway Series models primarily due to the effects of the pandemic Principally driven by lower demand for hyd
Slide 7: Q2 2020 Financial Performance
Q2 2020 Financial Performance ($ in millions, except per share data) Q2 2020 Q2 2019 $ Var % Var Commentary Net Sales $377 $737 ($360) (48.8%) Decrease was principally driven by the ongoing effects of the pandemic on the global economy, resulting in lower demand in all end markets except for the Def
Slide 8: Q2 2020 Cash Flow Performance
Q2 2020 Cash Flow Performance ($ in millions) Q2 2020 Q2 2019 $ Var % Var Commentary Principally driven by lower gross profit, higher cash interest expense and cash Net Cash Provided by restructuring charges partially offset by lower $92 $239 ($147) (61.5%) cash income taxes, lower operating working
Slide 9: Strong Liquidity Profile
Strong Liquidity Profile Cash and Available Borrowing Capacity Long-term Debt Profile & Credit Statistics of $753 million as of June 30, 2020 ($ in millions) 6/30/2020 Cash and cash equilvalents $434 — $434 million of cash and cash equivalents Revolving Credit Facility due Sep 2024 $275 — $319 mil
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, 2015 2016 2017 2018 2019 2019 2020 2020 Net income (GAAP) $182 $215 $504 $639 $604 $181 $23 $418 plus: Interest expe
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, 2015 2016 2017 2018 2019 2019 2020 2020 Net Cash Provided by Operating Activities (GAAP) $580 $591 $658 $837
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