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Allison
🇺🇸 NYSE:ALSN
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Dec 31, 2019

Allison Q4 2019 Earnings Report

Allison's Q4 2019 earnings decreased due to lower demand in the Global Off-Highway and Service Parts, Support Equipment & Other end markets, partially offset by higher demand in the North America On-Highway end market.

Key Takeaways

Allison Transmission reported Q4 2019 net sales of $617 million, a 5% decrease compared to the same period in 2018. Net income was $107 million, down from $147 million in 2018, and adjusted EBITDA was $216 million, compared to $261 million in the previous year. Adjusted free cash flow was $121 million, a decrease from $184 million in 2018.

Net sales decreased by 5% year-over-year, primarily due to lower demand in the Global Off-Highway and Service Parts, Support Equipment & Other end markets.

Net income decreased from $147 million to $107 million compared to the same period in 2018.

Adjusted EBITDA decreased from $261 million to $216 million year-over-year.

The company settled $62 million of share repurchases, resulting in $393 million of total share repurchases for the year.

Total Revenue
$617M
Previous year: $647M
-4.6%
EPS
$0.85
Previous year: $1.17
-27.4%
Adjusted EBITDA
$216M
Previous year: $261M
-17.2%
Gross Profit
$298M
Previous year: $338M
-11.8%
Cash and Equivalents
$192M
Previous year: $231M
-16.9%
Free Cash Flow
$121M
Previous year: $184M
-34.2%
Total Assets
$4.45B
Previous year: $4.24B
+5.0%

Allison

Allison

Allison Revenue by Segment

Forward Guidance

Allison expects 2020 net sales to be in the range of $2,375 to $2,475 million, Net Income in the range of $425 to $475 million, Adjusted EBITDA in the range of $855 to $915 million, Net Cash Provided by Operating Activities in the range of $600 to $640 million, Adjusted Free Cash Flow in the range of $430 to $480 million and cash income taxes in the range of $60 to $70 million.

Positive Outlook

  • Net sales are expected to be between $2,375 and $2,475 million.
  • Net income is projected to be in the range of $425 to $475 million.
  • Adjusted EBITDA is anticipated to be between $855 and $915 million.
  • Net cash provided by operating activities is forecasted to be in the range of $600 to $640 million.
  • Adjusted free cash flow is expected to be between $430 and $480 million.

Challenges Ahead

  • 2020 net sales guidance reflects lower demand in the Global On-Highway and Global Off-Highway end markets
  • First quarter net sales are expected to be down from the same period in 2019.
  • Lower demand is expected in the Global On-Highway end markets.
  • Cash income taxes are expected to be in the range of $60 to $70 million.
  • Unspecified risks related to substantial indebtedness.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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