- Record Full Year Net Sales of $3,035 million, up 10% from
2022
- Record Full Year Diluted EPS of $7.40, up 34% from
2022
- Record Fourth Quarter Net Sales of $775 million, up 8% year
over year
- Fourth Quarter Diluted EPS of $1.91, up 26% year over
year
Allison Transmission Holdings Inc. (NYSE: ALSN) today
reported an 8 percent increase in fourth quarter net sales from the
same period in 2022, propelling full year net sales to a record
$3.04 billion. Diluted EPS for the year increased 34 percent from
2022 to a record $7.40.
David S. Graziosi, Chairman and Chief Executive Officer of
Allison Transmission commented, “Allison’s fourth quarter marks the
highest fourth quarter revenue in our history, leading to a record
year driven by strong demand in our largest end markets, and the
dedication from our team to realize growth objectives. Our
commitment to operating performance was demonstrated by 2023 year
over year EBITDA margin expansion of 180 basis points and Adjusted
Free Cash Flow growth of 37 percent.”
Graziosi continued, “Throughout the year, we maintained our
well-defined approach to capital allocation by increasing our
dividend for the fourth consecutive year and repurchasing over $260
million of our common stock, representing nearly 6 percent of
outstanding shares. Through increased earnings and reduction in
share count, we are pleased to report record full year Diluted EPS
of $7.40 per share. As a result of resilient demand in our largest
end markets, at the midpoint we are guiding to another record
revenue year for 2024 as we continue to realize our investments and
expand our addressable markets.”
Full Year and Fourth Quarter Financial Highlights
Net sales for the year were $3,035 million. Record annual
results are attributed to:
- A 13 percent increase in net sales in the North America
On-Highway end market principally driven by strength in customer
demand for Class 8 vocational and medium-duty trucks,
- An 18 percent increase in net sales in the Service Parts,
Support Equipment and Other end market, leading to record full year
net sales of $696 million, principally driven by higher demand for
global service parts, support equipment and aluminum die cast
components and price increases on certain products,
- A 14 percent increase in net sales in the Defense end market
principally driven by increased demand for Wheeled and Tracked
vehicle applications, and
- Record net sales of $477 million in the Outside North America
On-Highway end market, driven by the continued execution of our
growth initiatives, including a 21 percent increase in Europe,
Middle East and Africa net sales, led by strong sales in vocational
truck.
Net income for the year was $673 million. Diluted EPS for the
year was $7.40. Adjusted EBITDA, a non-GAAP financial measure, for
the year was $1,108 million. Net cash provided by operating
activities for the year was $784 million. Adjusted free cash flow,
a non-GAAP financial measure, for the year was $659 million.
Net sales for the quarter were $775 million. Year over year
results were led by:
- A 14 percent increase in net sales in the North America
On-Highway end market principally driven by continued strength in
customer demand for Class 8 vocational and medium-duty trucks,
- A 34 percent increase in net sales in the Defense end market
principally driven by increased demand for Tracked and Wheeled
vehicle applications, and
- A 31 percent increase in net sales in the Outside North America
Off-Highway end market principally driven by higher demand in the
mining sector.
Net income for the quarter was $170 million. Diluted EPS for the
quarter was $1.91. Adjusted EBITDA for the quarter was $277
million. Net cash provided by operating activities for the quarter
was $238 million. Adjusted free cash flow for the quarter was $186
million.
Full Year and Fourth Quarter Net Sales
by End Market
End Market
2023 Net Sales
($M)
Year over Year $
Variance
Q4 2023 Net Sales
($M)
Year over Year $
Variance
North America On-Highway
$1,529
$170
$380
$47
North America Off-Highway
$63
($23)
$5
($19)
Defense
$166
$20
$63
$16
Outside North America
On-Highway
$477
$14
$128
($3)
Outside North America
Off-Highway
$104
($23)
$38
$9
Service Parts, Support Equipment &
Other
$696
$108
$161
$7
Total Net Sales
$3,035
$266
$775
$57
Fourth Quarter Financial Results
Gross profit for the quarter was $371 million, an increase of 10
percent from $338 million for the same period in 2022. The increase
in gross profit was principally driven by increased net sales and
price increases on certain products partially offset by higher
direct material costs.
Selling, general and administrative expenses for the quarter
were $92 million, a decrease of $5 million from $97 million for the
same period in 2022. The decrease was principally driven by lower
product warranty expense partially offset by higher commercial
activities spending.
Engineering – research and development expenses for the quarter
were $54 million, an increase of $5 million from $49 million for
the same period in 2022. The increase was principally driven by
increased product initiatives spending.
Net income for the quarter was $170 million, an increase of $29
million from $141 million for the same period in 2022. The increase
was principally driven by higher gross profit.
Net cash provided by operating activities was $238 million, an
increase of $14 million from $224 million for the same period in
2022. The increase was principally driven by higher gross profit
and lower operating working capital funding requirements.
Fourth Quarter Non-GAAP Financial Measures
Adjusted EBITDA for the quarter was $277 million, an increase of
$32 million from $245 million for the same period in 2022. The
increase in Adjusted EBITDA was principally driven by higher gross
profit.
Adjusted free cash flow for the quarter was $186 million, an
increase of $54 million from $132 million for the same period in
2022. The increase was driven by lower capital expenditures, higher
gross profit and lower operating working capital funding
requirements.
Full Year 2024 Guidance
Allison expects 2024 Net Sales in the range of $3,050 to $3,150
million, Net Income in the range of $635 to $685 million, Adjusted
EBITDA in the range of $1,070 to $1,130 million, Net Cash Provided
by Operating Activities in the range of $700 to $760 million,
Capital Expenditures in the range of $125 to $135 million, and
Adjusted Free Cash Flow in the range of $575 to $625 million.
Conference Call and Webcast
The company will host a conference call at 5:00 p.m. ET on
Tuesday, February 13, 2024 to discuss its fourth quarter 2023
results. The dial-in phone number for the conference call is
+1-877-425-9470 and the international dial-in number is
+1-201-389-0878. A live webcast of the conference call will also be
available online at http://ir.allisontransmission.com.
For those unable to participate in the conference call, a replay
will be available from 9:00 p.m. ET on February 13 until 11:59 p.m.
ET on February 27. The replay dial-in phone number is
+1-844-512-2921 and the international replay dial-in number is
+1-412-317-6671. The replay passcode is 13743601.
About Allison Transmission
Allison Transmission (NYSE: ALSN) is a leading designer and
manufacturer of propulsion solutions for commercial and defense
vehicles and the largest global manufacturer of medium- and
heavy-duty fully automatic transmissions that Improve the Way the
World Works. Allison products are used in a wide variety of
applications, including on-highway trucks (distribution, refuse,
construction, fire and emergency), buses (school, transit and
coach), motorhomes, off-highway vehicles and equipment (energy,
mining and construction applications) and defense vehicles
(tactical wheeled and tracked). Founded in 1915, the company is
headquartered in Indianapolis, Indiana, USA. With a presence in
more than 150 countries, Allison has regional headquarters in the
Netherlands, China and Brazil, manufacturing facilities in the USA,
Hungary and India, as well as global engineering resources,
including electrification engineering centers in Indianapolis,
Indiana, Auburn Hills, Michigan and London in the United Kingdom.
Allison also has more than 1,600 independent distributor and dealer
locations worldwide. For more information, visit
allisontransmission.com.
Forward-Looking Statements
This press release contains forward-looking statements. The
words “believe,” “expect,” “anticipate,” “intend,” “estimate” and
other expressions that are predictions of or indicate future events
and trends and that do not relate to historical matters identify
forward-looking statements. You should not place undue reliance on
these forward-looking statements. Although forward-looking
statements reflect management’s good faith beliefs, reliance should
not be placed on forward-looking statements because they involve
known and unknown risks, uncertainties and other factors, which may
cause actual results, performance or achievements to differ
materially from anticipated future results, performance or
achievements expressed or implied by such forward-looking
statements. Forward-looking statements speak only as of the date
the statements are made. We undertake no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events, changed circumstances or
otherwise. These forward-looking statements are subject to numerous
risks and uncertainties, including, but not limited to: our
participation in markets that are competitive; our ability to
prepare for, respond to and successfully achieve our objectives
relating to technological and market developments, competitive
threats and changing customer needs, including with respect to
electric hybrid and fully electric commercial vehicles; increases
in cost, disruption of supply or shortage of labor, freight, raw
materials, energy or components used to manufacture or transport
our products or those of our customers or suppliers, including as a
result of geopolitical risks, wars and pandemics; global economic
volatility; general economic and industry conditions, including the
risk of recession; labor strikes, work stoppages or similar labor
disputes, which could significantly disrupt our operations or those
of our principal customers or suppliers; the duration and spread of
the COVID-19 pandemic, including new variants of the virus and the
pace and availability of vaccines and boosters, mitigating efforts
deployed by government agencies and the public at large, and the
overall impact from such outbreak on economic conditions, financial
market volatility and our business, including but not limited to
the operations of our manufacturing and other facilities, the
availability of labor, our supply chain, our distribution processes
and demand for our products and the corresponding impacts to our
net sales and cash flow; the highly cyclical industries in which
certain of our end users operate; uncertainty in the global
regulatory and business environments in which we operate; the
concentration of our net sales in our top five customers and the
loss of any one of these; the failure of markets outside North
America to increase adoption of fully automatic transmissions; the
success of our research and development efforts, the outcome of
which is uncertain; U.S. and foreign defense spending; risks
associated with our international operations, including acts of war
and increased trade protectionism; the discovery of defects in our
products, resulting in delays in new model launches, recall
campaigns and/or increased warranty costs and reduction in future
sales or damage to our brand and reputation; our ability to
identify, consummate and effectively integrate acquisitions and
collaborations; risks related to our indebtedness; and other risks
and uncertainties associated with our business described in our
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
we can give no assurance that the expectations will be attained or
that any deviation will not be material. All information is as of
the date of this press release, and we undertake no obligation to
update any forward-looking statement to conform the statement to
actual results or changes in expectations and risks related to our
indebtedness.
Use of Non-GAAP Financial Measures
This press release contains information about Allison’s
financial results and forward-looking estimates of financial
results which are not presented in accordance with accounting
principles generally accepted in the United States ("GAAP"). Such
non-GAAP financial measures are reconciled to their closest GAAP
financial measures at the end of this press release. Non-GAAP
financial measures should not be considered in isolation or as a
substitute for our reported results prepared in accordance with
GAAP and, as calculated, may not be comparable to other similarly
titled measures of other companies.
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 operational results of our business and increase the
period-to-period comparability of our operating profitability and
comparability with other companies. Adjusted EBITDA as a percent of
net sales is also used in the calculation of management’s incentive
compensation program. The most directly comparable GAAP measure to
Adjusted EBITDA is Net income. The most directly comparable GAAP
measure to Adjusted EBITDA as a percent of net sales is Net Income
as a percent of net sales. Adjusted EBITDA is calculated as the
earnings before interest expense, net, income tax expense,
amortization of intangible assets, depreciation of property, plant
and equipment and other adjustments as defined by Allison
Transmission, Inc.’s, the Company’s wholly-owned subsidiary, Second
Amended and Restated Credit Agreement. Adjusted EBITDA as a percent
of net sales is calculated as Adjusted EBITDA divided by net
sales.
We use Adjusted Free Cash Flow to evaluate the amount of cash
generated by our business that, after the capital investment needed
to maintain and grow our business and certain mandatory debt
service requirements, can be used for the repayment of debt,
stockholder distributions and strategic opportunities, including
investing in our business. We believe that Adjusted Free Cash Flow
enhances the understanding of the cash flows of our business for
management, investors and creditors. Adjusted Free Cash Flow is
also used in the calculation of management’s incentive compensation
program. The most directly comparable GAAP measure to Adjusted Free
Cash Flow is Net cash provided by operating activities. Adjusted
Free Cash Flow is calculated as Net cash provided by operating
activities, after additions of long-lived assets.
Attachments
- Condensed Consolidated Statements of Operations
- Condensed Consolidated Balance Sheets
- Condensed Consolidated Statements of Cash Flows
- Reconciliation of GAAP to Non-GAAP Financial Measures
- Reconciliation of GAAP to Non-GAAP Financial Measures for Full
Year Guidance
Allison Transmission Holdings,
Inc.
Condensed Consolidated Statements
of Operations
(Unaudited, dollars in millions,
except per share data)
Three months ended December
31,
Year ended December 31,
2023
2022
2023
2022
Net sales
$
775
$
718
$
3,035
$
2,769
Cost of sales
404
380
1,565
1,472
Gross profit
371
338
1,470
1,297
Selling, general and administrative
92
97
357
328
Engineering - research and development
54
49
194
185
Operating income
225
192
919
784
Interest expense, net
(24)
(30)
(107)
(118)
Other income (expense), net
5
7
15
(21)
Income before income taxes
206
169
827
645
Income tax expense
(36)
(28)
(154)
(114)
Net income
$
170
$
141
$
673
$
531
Basic earnings per share attributable to common stockholders
$
1.91
$
1.52
$
7.48
$
5.53
Diluted earnings per share attributable to common stockholders
$
1.91
$
1.52
$
7.40
$
5.53
Allison Transmission Holdings,
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited, dollars in
millions)
December 31,
December 31,
2023
2022
ASSETS Current Assets Cash and Cash Equivalents
$
555
$
232
Accounts receivable, net
356
363
Inventories
276
224
Other current assets
63
47
Total Current Assets
1,250
866
Property, plant and equipment, net
774
763
Intangible assets, net
833
878
Goodwill
2,076
2,075
Other non-current assets
92
89
TOTAL ASSETS
$
5,025
$
4,671
LIABILITIES Current Liabilities Accounts payable
$
210
$
195
Product warranty liability
32
33
Current portion of long-term debt
6
6
Deferred revenue
41
38
Other current liabilities
212
208
Total Current Liabilities
501
480
Product warranty liability
27
24
Deferred revenue
89
93
Long-term debt
2,497
2,501
Deferred income taxes
519
536
Other non-current liabilities
159
163
TOTAL LIABILITIES
3,792
3,797
TOTAL STOCKHOLDERS' EQUITY
1,233
874
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
$
5,025
$
4,671
Allison Transmission Holdings,
Inc.
Condensed Consolidated Statements
of Cash Flows
(Unaudited, dollars in
millions)
Three months ended December
31,
Year ended December 31,
2023
2022
2023
2022
Net cash provided by operating activities
$
238
$
224
$
784
$
657
Net cash used for investing activities (a) (b)
(58)
(90)
(129)
(183)
Net cash used for financing activities
(127)
(82)
(332)
(367)
Effect of exchange rate changes on cash
1
-
-
(2)
Net increase in cash and cash equivalents
54
52
323
105
Cash and cash equivalents at beginning of period
501
180
232
127
Cash and cash equivalents at end of period
$
555
$
232
$
555
$
232
Supplemental disclosures:
Income taxes paid
$
(30)
$
(17)
$
(194)
$
(102)
Interest paid
$
(36)
$
(33)
$
(131)
$
(117)
Interest received from interest rate swaps
$
4
$
1
$
12
$
1
(a) Additions of long-lived assets
$
(52)
$
(92)
$
(125)
$
(167)
(b) Business acquisitions
$
-
$
-
$
-
$
(23)
Allison Transmission Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(Unaudited, dollars in
millions)
Three months ended
Year ended
December 31,
December 31,
2023
2022
2023
2022
Net income (GAAP)
$
170
$
141
$
673
$
531
plus: Income tax expense
36
28
154
114
Depreciation of property, plant and equipment
28
27
109
109
Interest expense, net
24
30
107
118
Amortization of intangible assets
12
11
45
46
Stock-based compensation expense (a)
5
4
22
18
Technology-related investments gain (b)
-
-
(3)
(6)
Unrealized loss on marketable securities (c)
2
2
1
22
Unrealized loss on foreign exchange (d)
-
1
-
6
Acquisition-related earnouts (e)
-
-
-
2
Pension curtailment (f)
-
1
-
1
Adjusted EBITDA (Non-GAAP)
$
277
$
245
$
1,108
$
961
Net sales (GAAP)
$
775
$
718
$
3,035
$
2,769
Net income as a percent of net sales (GAAP)
21.9%
19.6%
22.2%
19.2%
Adjusted EBITDA as a percent of net sales (Non-GAAP)
35.7%
34.1%
36.5%
34.7%
Net cash provided by operating activities (GAAP)
$
238
$
224
$
784
$
657
Deductions to Reconcile to Adjusted Free Cash Flow: Additions of
long-lived assets
(52)
(92)
(125)
(167)
Adjusted free cash flow (Non-GAAP)
$
186
$
132
$
659
$
490
(a) Represents stock-based compensation expense (recorded in
Cost of sales, Selling, general and administrative, and Engineering
– research and development). (b) Represents gains (recorded in
Other income (expense), net) related to investments in
co-development agreements to expand our position in propulsion
solution technologies. (c) Represents losses (recorded in Other
income (expense), net) related to an investment in the common stock
of Jing-Jin Electric Technologies Co. Ltd. (d) Represents losses
(recorded in Other income (expense), net) on intercompany financing
transactions for our India facility. (e) Represents expenses
(recorded in Selling, general and administrative, Engineering -
research and development) for earnouts related to our acquisition
of Vantage Power Limited. (f) Represents a curtailment loss
(recorded in Selling, general and administrative) for our European
subsidiary's defined benefit pension plan.
Allison Transmission Holdings,
Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures for Full Year Guidance
(Unaudited, dollars in
millions)
Guidance
Year Ending December 31, 2024
Low
High
Net Income (GAAP)
$
635
$
685
plus: Income tax expense
170
180
Depreciation of property, plant and equipment
112
112
Interest expense, net
104
104
Stock-based compensation expense (a)
25
25
UAW Local 933 contract signing incentives (b)
14
14
Amortization of intangible assets
10
10
Adjusted EBITDA (Non-GAAP)
$
1,070
$
1,130
Net Cash Provided by Operating Activities (GAAP)
$
700
$
760
Deductions to Reconcile to Adjusted Free Cash Flow: Additions of
long-lived assets
$
(125)
$
(135)
Adjusted Free Cash Flow (Non-GAAP)
$
575
$
625
(a) Represents stock-based compensation expense (recorded in
Cost of sales, Selling, general and administrative, and Engineering
– research and development). (b) Represents charges (recorded in
Cost of sales, Selling, general and administrative, and Engineering
– research and development) for incentive payments to eligible
employees recorded in the first quarter of 2024 as a result of UAW
Local 933 represented employees ratifying a four-year collective
bargaining agreement effective through November 2027.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240213204721/en/
Jackie Bolles Executive Director, Treasury and Investor
Relations ir@allisontransmission.com (317) 242-7073 Claire Gregory
Director, Global External Communications
claire.gregory@allisontransmission.com (317) 694-2065
Transmission (NYSE:ALSN)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Transmission (NYSE:ALSN)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024