Allison Transmission ends Q 2 with $227 million cash, lower sales

By Lisa Kerner

Charlotte, N.C., July 29 - Allison Transmission Holdings, Inc. ended the second quarter with $227 million of cash, $375 million of revolver availability after letters of credit and net leverage of 4.23, said executive vice president and chief financial officer David Graziosi.

Graziosi made his comments on Monday during a conference call to discuss the company's quarterly results.

For the second quarter, Allison's net sales were down 8.5% at $512 million, gross margin was down 80 basis points at 44.2%, adjusted net income increased 3.4% to $89 million, and adjusted free cash flow was up 45.4% at $117 million compared to the prior-year period, according to the earnings presentation.

Chairman, president and chief financial officer Lawrence E. Dewey attributed the decline in net sales in part to lower demand in the North America energy sector's hydraulic fracturing market as well as previously considered reductions in U.S. defense spending.

Diluted earnings per share were 26 cents for the quarter, and net cash from operating activities rose about 21% to $130 million.

The Indianapolis-based automatic transmission company's cash interest payments were down almost 6%, to $50 million, due to debt repayment and refinancing, said Dewey on the call.

Allison's full-year 2013 guidance includes adjusted EBITDA excluding technology-related license expenses in the range of $630 million to $660 million, adjusted free cash flow in the range of $325 to $375 million, and revised net sales in the range of $1.92 billion to $1.96 billion, Dewey said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.