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    1. Management

    Allison Transmission Announces Fourth Quarter and Full Year 2015 Results

    Feb. 9, 2016
    Allison Transmission Holdings, Inc. has reported net sales for the fourth quarter of $478 million, a 12 percent decrease from the same period in 2014.
    Related To: Allison Transmission

    Allison Transmission Holdings, Inc. has reported net sales for the fourth quarter of $478 million, a 12 percent decrease from the same period in 2014. The company says that decrease in the net sales was principally driven by lower demand in the global Off-Highway and Defense end markets, partially offset by price increases on certain products.

    Adjusted Net Income, a non-GAAP financial measure, for the quarter was $123 million, compared to Adjusted Net Income of $117 million for the same period in 2014, an increase of $6 million. Adjusted EBITDA, a non-GAAP financial measure, for the quarter was$170 million, or 35.6 percent of net sales, compared to $185 million, or 34.0 percent of net sales, for the same period in 2014. Excluding $3 million of technology-related license expenses, Adjusted EBITDA for the fourth quarter of 2014 was $188 million, or 34.6 percent of net sales. Adjusted Free Cash Flow, a non-GAAP financial measure, for the quarter was $146 million, or $0.85 per diluted share, compared to $129 million for the same period in 2014, or $0.71 per diluted share.

    Lawrence E. Dewey, chairman and chief executive officer of Allison Transmission commented, "Allison's fourth quarter 2015 results are within the full year guidance ranges we provided to the market on October 26. The year-over-year reductions in the global Off-Highway and Service Parts, Support Equipment & Other end markets net sales are consistent with the previously contemplated impact of lower energy and commodity prices. The year-over-year decrease in Defense end market net sales is commensurate with continued reductions in U.S. defense spending to longer term averages experienced during periods without active conflicts. Allison demonstrated solid operating margins and free cash flow while executing its prudent and well-defined approach to capital structure and allocation. During the fourth quarter, we refinanced all debt maturing in 2017 to 2019, settled $10 million of share repurchases, paid a dividend of $0.15 per share and repaid $6 million of debt. Given expectations for tempering demand conditions in the North America On-Highway end market, no meaningful relief from the global Off-Highway end markets challenges and divergent global economic environments, Allison is taking a guarded approach to 2016. As we have done during other periods of meaningful uncertainty, Allison will proactively implement initiatives to closely align costs and programs across our business with actual end market conditions and growth opportunities."