Allison Transmission Holdings Inc. has reported net sales for the fourth quarter of $617 million, a 5 percent decrease from the same period in 2018. The decrease in net sales was principally driven by 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.
Net Income for the quarter was $107 million compared to $147 million for the same period in 2018. Adjusted EBITDA, a non-GAAP financial measure, for the quarter was $216 million compared to $261 million for the same period in 2018. Net Cash Provided by Operating Activities for the quarter was $202 million compared to $232 million for the same period in 2018. Adjusted Free Cash Flow, a non-GAAP financial measure, for the quarter was $121 million compared to $184 million for the same period in 2018.
David S. Graziosi, president and CEO of Allison Transmission commented, “2019 was an important year for Allison Transmission. We successfully completed three acquisitions, broke ground on two state-of-the-art technology facilities and achieved meaningful market share gains in North America. Full year 2019 results exceeded our guidance expectations, and both our North America and Outside North America On-Highway end markets concluded a third consecutive record revenue year.”
Graziosi continued, “I am further pleased to report that Allison’s established and well-defined approach to capital structure and allocation remains intact. During the fourth quarter, we settled $62 million of share repurchases, resulting in $393 million of total share repurchases for the year, or approximately 7% of our outstanding shares. Also during the quarter, we paid a dividend of 15 cents per share and completed an opportunistic repricing of our term loan due March 2026, illustrating our commitment to prudent balance sheet management through a low-cost, flexible and pre-payable debt structure with long-dated maturities, while simultaneously investing in our business and returning capital to shareholders.”
Full Year 2020 Guidance
Allison expects 2020 net sales to be in the range of $2,375 million to $2,475 million, net income in the range of $425 million to $475 million, adjusted EBITDA in the range of $855 to $915 million, net cash provided by operating activities in the range of $600 million to $640 million, adjusted free cash flow in the range of $430 million to $480 million and cash income taxes in the range of $60 million to $70 million.
Allison’s 2020 net sales guidance reflects lower demand in the Global On-Highway and Global Off-Highway end markets partially offset by increased demand in the Service Parts, Support Equipment & Other and Defense end markets and price increases on certain products.
The company expect first quarter net sales to be down from the same period in 2019 principally driven by lower demand expected in the Global On-Highway end-markets.