Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2012 Earnings Presentation
13 slides from Allison Transmission's earnings presentation, Jul 30, 2012
Slide 1: Q2 2012 Earnings Release
July 30, 2012 Q2 2012 Earnings Release Lawrence Dewey, Chairman, President & Chief Executive Officer 1 David Graziosi, Executive Vice President & Chief Financial Officer
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). Most forward-looking statements contain words that identify them as forward-looking, such as “may”, “plan”, “
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 Q2 2012 Performance End Markets Commentary Full Year 2012 Guidance Update 4
Slide 5: Q2 2012 Performance Summary
Q2 2012 Performance Summary ($ in millions) Q2 2012 Q2 2011 % Variance Net Sales $559 $556 0.7% Gross Margin % 45.0% 44.0% +100 bps Adjusted Net Income (1) $87 $11 700.9% Adjusted Free Cash Flow(2)(3) $80 $68 17.6% Commentary Net Sales: increased demand for North America On-Highway, Wheeled Military
Slide 6: Q2 2012 Sales Performance
Q2 2012 Sales Performance ($ in millions) End Markets Q2 2012 Q2 2011 % Variance Commentary North America On-Hwy $217 $189 15% Continued market recovery North America Hybrid- Propulsion Systems for $18 $40 (55%) Intra-year movements in the timing of orders Transit Bus Decreased demand from natural g
Slide 7: Q2 2012 Financial Performance
Q2 2012 Financial Performance ($ in millions) Q2 2012 Q2 2011 $ Var % Var Commentary Net Sales $559.4 $555.7 $3.7 0.7% Increases in NAFTA On-Highway, Wheeled Military, Outside NAFTA Off-Highway products, supported by price increases; Growth largely offset by NAFTA Off-Highway energy sector and fewer
Slide 8: Q2 2012 Cash Flow Performance
Q2 2012 Cash Flow Performance ($ in millions) Q2 2012 Q2 2011 $ Variance % Variance Commentary Increased net income adjusted for items not Cash Provided by providing or using, $107 $84 $23 27.4% Operating Activities lower operating working capital and higher other liabilities, net Increased investme
Slide 9: End Markets Commentary
End Markets Commentary • North America On-Highway • Continued market recovery muted by heightened economic uncertainty • Expect slower second half year over year growth rate given diminished commercial vehicle production forecasts • North America Hybrid-Propulsion Systems for Transit Bus • Municipal
Slide 10: Full Year 2012 Guidance Update
Full Year 2012 Guidance Update Guidance Commentary on Full Year Assumes year over year net sales growth in Global On-Highway, Outside North America Off- Highway and Service Parts, Support Equipment & Net Sales Growth from 2011 1 to 3 percent Other end markets partially offset by year over year net s
Slide 11: Appendix: Non-GAAP Financial Information
APPENDIX Non-GAAP Financial Information 11
Slide 12: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted Net Income and Adjusted EBITDA reconciliation Three months ended Last twelve months $ in millions For the year ended December 31, June 30, ended June 30, 2009 2010 2011 2011 2012 2012 Net (loss) income ($323.9) $29.6 $103.0 ($17.2) $412.8 $554.1 plus: Inter
Slide 13: 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 For the year ended December 31, June 30, June 30, 2009 2010 2011 2011 2012 2012 Net Cash Provided by Operating Activities $168.7 $388.9 $469.2 $83.8 $106.9 $522.0 (Deduc
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