Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q1 2016 Earnings Presentation
12 slides from Allison Transmission's earnings presentation, Apr 25, 2016
Slide 1: Q1 2016 Earnings Release
Q1 2016 Earnings Release Published April 25, 2016 (Earnings Conference Call April 26, 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 net income, Adjusted EBITDA, Adjusted EBITDA margin, adjusted free cash flow and free cash flow to evaluate our performance relative to that of our peers. In addition, the Senior Secured Credit Facility has certain covenants that incorporate Adjusted EB
Slide 4: Call Agenda
Call Agenda Q1 2016 Performance Full Year 2016 Guidance Update 4
Slide 5: Q1 2016 Performance Summary
Q1 2016 Performance Summary ($ in millions) Q1 2016 Q1 2015 % Variance Net Sales $462 $504 (8.2%) Gross Margin % 46.5% 47.5% (100 bps) Adjusted Net Income (1) $109 $150 (27.1%) Adjusted Free Cash Flow (1) $113 $98 15.4% Commentary Net Sales: the decrease was principally driven by lower demand in the
Slide 6: Q1 2016 Sales Performance
Q1 2016 Sales Performance ($ in millions) End Markets Q1 2016 Q1 2015 % Variance Commentary Principally driven by lower demand for Rugged Duty Series North America On-Hwy $257 $268 (4%) models North America Hybrid- Principally driven by lower demand due to engine emissions Propulsion Systems for $17
Slide 7: Q1 2016 Financial Performance
Q1 2016 Financial Performance ($ in millions, except share data) Q1 2016 Q1 2015 $ Var % Var Commentary Net Sales $462.1 $503.6 ($41.5) (8.2%) Decrease was principally driven by lower demand in the global Off-Highway and Service Parts, Support Equipment & Other end markets Cost of Sales $247.0 $264.
Slide 8: Q1 2016 Cash Flow Performance
Q1 2016 Cash Flow Performance ($ in millions) Q1 2016 Q1 2015 $ Variance % Variance Commentary Principally driven by decreased operating working capital, lower incentive compensation payments, decreased Net Cash Provided by excess tax benefit from stock-based $118 $91 $27 29.6% compensation and favo
Slide 9: 2016 Guidance Update - Summary
2016 Guidance Update - Summary Guidance Commentary Guidance reflects expectations for tempering demand conditions in the North America On-Highway end market, no meaningful relief from the global Off-Highway end (6.5) to (9.5) market challenges and divergent global economic Net Sales Change from 2015
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 Net Income and Adjusted EBITDA reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31 March 31, March 31, 2011 2012 2013 2014 2015 2015 2016 2016 Net income $103.0 $514.2 $165.4 $228.6 $182.3 $68.4
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, March 31, March 31, 2011 2012 2013 2014 2015 2015 2016 2016 Net Cash Provided by Operating Activities $469.2 $497.5 $463.5 $57
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