Allison Transmission Announces Increased Quarterly Dividend and Preliminary First Quarter 2013 Results and Affirms Full Year 2013 Guidance
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The Company's Board of Directors declared quarterly dividends of
The payment of any future quarterly dividends will be at the discretion of the Board of Directors and will be dependent upon
Based on currently available information, for the first quarter of 2013, we expect net sales to be in the range of
In addition, we are affirming our full year 2013 guidance released to the market on
The results described above and the reconciliation below are estimated, preliminary and may change. Because we have not completed our normal quarterly closing and review procedures for the quarter ended
Adjusted EBITDA excluding technology-related license expenses, Adjusted EBITDA margin excluding technology-related license expenses and Adjusted Free Cash Flow are non-GAAP measures. Management uses Adjusted EBITDA excluding technology-related license expenses, Adjusted EBITDA margin excluding technology-related license expenses and Adjusted Free Cash Flow to evaluate and control Allison's cash operating costs and to measure its operating profitability. We believe the presentation of Adjusted EBITDA excluding technology-related license expenses, Adjusted EBITDA margin excluding technology-related license expenses and Adjusted Free Cash Flow enhances our investors' overall understanding of the financial performance and cash flow of our business. You should not consider Adjusted EBITDA excluding technology-related license expenses, Adjusted EBITDA margin excluding technology-related license expenses as an alternative to net income, determined in accordance with GAAP, as an indicator of operating performance. You should not consider Adjusted Free Cash Flow as an alternative to net cash provided by operating activities, determined in accordance with GAAP, as an indicator of our cash flow.
The following table reconciles the Company's estimated net income to its estimate of Adjusted EBITDA excluding technology-related license expenses for the three months ended
For the three months ended March 31, |
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(unaudited, in millions) |
2013 |
2012 |
||
Net income |
$ 27.5 |
$ 58.0 |
||
plus: |
||||
Interest expense, net |
33.9 |
40.7 |
||
Income tax expense |
16.9 |
25.2 |
||
Amortization of intangible assets |
29.9 |
37.5 |
||
Depreciation of property, plant and equipment |
24.7 |
24.6 |
||
Fee to terminate services agreement with the Sponsors (a) |
— |
16.0 |
||
Initial public offering expenses (b) |
— |
5.7 |
||
Technology-related investment expense (c) |
2.5 |
— |
||
Loss on repurchases of long-term debt (d) |
— |
13.5 |
||
Unrealized loss (gain) on hedge contracts (e) |
1.9 |
(0.7 ) |
||
Other, net (f) |
3.4 |
2.5 |
||
Adjusted EBITDA |
$ 140.7 |
$ 223.0 |
||
Technology-related license expenses (g) |
6.0 |
— |
||
Adjusted EBITDA excluding technology-related license expenses |
$ 146.7 |
$ 223.0 |
||
Revenue |
$ 457.4 |
$ 601.9 |
||
Adjusted EBITDA margin excluding technology-related license expenses |
32.1 % |
37.0 % |
||
(a) |
Represents a one-time payment (recorded in other expense, net) to terminate the services agreement with affiliates of The Carlyle Group and Onex Partners. |
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(b) |
Represents fees and expenses (recorded in other expense, net) related to our initial public offering in March 2012. |
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(c) |
Represents an impairment charge (recorded in other expense, net) for an investment in co-development agreements to expand our position in transmission technologies. |
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(d) |
Represents a loss (recorded in other expense, net) realized on the redemptions and repayments of long-term debt for the three months ended March 31, 2012. |
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(e) |
Represents $1.9 million and ($0.7) million of unrealized losses/(gains) (recorded in other expense, net) on the mark-to-market of our foreign currency and commodities derivative contracts for the three months ended March 31, 2013 and 2012, respectively. |
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(f) |
Represents employee stock compensation expense and service fees (recorded in selling, general and administrative expenses) paid to the Sponsors. |
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(g) |
Represents $6.0 million (recorded in engineering – research and development) of payments for licenses to expand our position in transmission technologies. |
About
Forward-Looking Statements
This press release may contain forward-looking statements. All statements other than statements of historical fact contained in this press release are forward-looking statements, including all statements regarding future financial results. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plans," "project," "anticipate," "believe," "estimate," "predict," "intend," "forecast," "could," "potential," "continue" or the negative of these terms or other similar terms or phrases. Forward-looking statements are not guarantees of future performance and involve known and unknown risks. Factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made include, but are not limited to: risks related to our substantial indebtedness; our participation in markets that are competitive; general economic and industry conditions; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments and changing customer needs; the failure of markets outside
Use of Non-GAAP Financial Measures
This press release contains information about Allison's financial results which are not presented in accordance with accounting principles generally accepted in
SOURCE
Investor Relations, (317) 242-3078, ir@allisontransmission.com, or Media Relations, (317) 242-5000, media@allisontransmission.com