Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2013 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Feb 13, 2014
Slide 1: Q4 2013 Earnings Release
Q4 2013 Earnings Release February 13, 2014 Lawrence Dewey, Chairman, President & Chief Executive Officer David Graziosi, Executive Vice President & Chief Financial Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following information contains “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 of or indicate future events a
Slide 3: Non-GAAP Financial Information
Non-GAAP Financial Information We use Adjusted net income, Adjusted EBITDA, Adjusted EBITDA excluding technology-related license expenses, Adjusted EBITDA margin, Adjusted EBITDA margin excluding technology-related license expenses, adjusted free cash flow and free cash flow to evaluate our performa
Slide 4: Call Agenda
Call Agenda Q4 2013 Performance 2014 Guidance Proprietary + Confidential 4
Slide 5: Performance Summary
Q4 2013 Performance Summary ($ in millions) Q4 2013 Q4 2012 % Variance Net Sales $491 $487 0.8% Gross Margin % 43.1% 39.9% +320 bps Adjusted Net Income (1) $78 $46 69.7% Adjusted Free Cash Flow (1) $105 $82 27.8% Commentary Net Sales: the increase was principally driven by higher demand in the Servi
Slide 6: Sales Performance
Q4 2013 Sales Performance ($ in millions) End Markets Q4 2013 Q4 2012 % Variance Commentary Increased demand for Rugged Duty, Highway and Bus North America On-Hwy $210 $188 12% Series models North America Hybrid- Flat with the same period in 2012 and up on a sequential Propulsion Systems for $32 $32
Slide 7: Financial Performance
Q4 2013 Financial Performance ($ in millions, except share data) Q4 2013 Q4 2012 $ Var % Var Commentary Net Sales $491.0 $487.0 $4.0 0.8% Increase was principally driven by higher demand in the Service Parts, Support Equipment & Other end market, continued recovery in the North America On-Highway en
Slide 8: Cash Flow Performance
Q4 2013 Cash Flow Performance ($ in millions) Q4 2013 Q4 2012 $ Variance % Variance Commentary Principally driven by increased Net Cash Provided by $138 $112 $26 23.2% net income and 2012 labor Operating Activities negotiations Principally driven by increased investment in productivity and CapEx $33
Slide 9: 2014 Guidance – End Markets Commentary
2014 Guidance – End Markets Commentary Allison expects first quarter net sales to be higher than the same period in 2013. The anticipated year-over-year increase in first quarter net sales is expected to be principally driven by higher demand in the global On-Highway end markets and the Service Part
Slide 10: 2014 Guidance - Summary
2014 Guidance - Summary Guidance Commentary We expect a continued recovery in the North America On- Highway end market, lower demand in the North America Hybrid-Propulsion Systems for Transit Bus end market due to engine emissions improvements and non-hybrid alternative technologies that generally r
Slide 11: APPENDIX Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information
Slide 12: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted Net Income and Adjusted EBITDA reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2009 2010 2011 2012 2013 2012 2013 Net (loss) income ($323.9) $29.6 $103.0 $514.2 $165.4 $11.2 $42.9 plus: Interest expens
Slide 13: Non-GAAP Reconciliations (2 of 2)
Non-GAAP Reconciliations (2 of 2) Adjusted Free Cash Flow reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2009 2010 2011 2012 2013 2012 2013 Net Cash Provided by Operating Activities $168.7 $388.9 $469.2 $497.5 $453.5 $112.1 $138.1 (Deductions)
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