David Graziosi : Thank you, Jackie. Good afternoon, and thank you for joining us. I would like to start by taking a moment to thank the Allison team and our partners for their dedication and support this year in delivering the Allison brand promise. 2022 was a record year for our business, driven by strength in demand in our global on-highway and off-highway end markets and the continued realization of our growth objectives. We achieved record fourth quarter net sales, leading to record full year net sales of $2.8 billion, an increase of 15% from 2021. As we have consistently demonstrated, our net sales performance was once again surpassed by even stronger growth in net income up 20% and diluted EPS up 34%. Our EPS growth is a testament to not only our operating performance, but also our opportunistic capital allocation priorities.

During 2022, we repurchased a total of $279 million of shares of our common stock, representing 8% of shares outstanding and ended the year with approximately $1 billion of authorized share repurchase capacity. We remain committed to our capital allocation priorities of generating cash to fund the business, investing for appropriate returns to grow our business and returning the balance of cash to our shareholders. In our North America On-Highway end markets, strong demand and share gains in Class 6, 7, Class 8 straight and Class 8 day cab markets led to net sales $1.4 billion, a 15% increase from 2021. We are excited about our recent announcement that the award-winning 3414 Regional Haul Series transmission is now available for order in Daimler Truck North America's Class 8 Freightliner Cascadia day cab model paired with the 12-liter natural gas engine from Cummins.

The 3414 RHS has become a compelling option for our customers in the Class 8 day cab market. The superior performance and fuel economy as well as the lightweight durability enables our customers to reduce their emissions and carbon footprint while maintaining industry-leading performance. Focusing on our outside North America On-Highway end market, we have made several announcements of partnerships and awards in previous quarters as many of our initiatives in the regions come to fruition. The outside North America On-Highway team achieved record full year net sales of $463 million in 2022. This is an increase of nearly 22% year-over-year and shows impressive growth as the Allison automatic provides a differentiated value proposition with a proven track record of durability and reliability, which has led OEMs and fleets to make the trends push into our products.

I am very proud of the team's success in achieving growth across multiple locations and regions in this end market. Specifically in our Europe, Middle East and Africa region, net sales for the year increased 28% from 2021. This increase was driven by an accelerated market recovery led by strong sales in vocational trucks and wheel defense vehicles, which leverage variance of our on-highway products. In addition, during 2022, we secured new releases with European OEMs for specialty vehicles for use in fire, refuse and construction applications and European and Turkish defense OEMs for wheel defense programs that we expect will continue to provide revenue growth opportunities over the coming years. In China, despite the commercial truck and bus market contracting by more than 40% in 2022, Allison realized a 59% increase in net sales, led by strong widebody mining dump and export bus cells.

Our wide-body mining dump initiative in China, which leverages our existing 4000 Series fully automatic transmission, has already received multiple awards and is gaining traction quickly. We estimate that Allison has approximately a 10% share in this new market. Also driving top line increases in our outside North America On-Highway end market, the South America region saw a 38% increase in net sales year-over-year, led by front engine bus and wheel defense markets. Last quarter, we touched on our growing presence in the agriculture sector since our entrance in 2015. As mentioned, leading OEMs in both Argentina and Brazil have selected the Allison 2000 Series and 3000 Series transmissions for use in their agricultural sprayers due to the enhanced performance in soft soil, which is critical in this application.

Moving on to our defense end market. Last quarter, we announced the contract award of over $6 million from the U.S. Army's Ground Vehicle Systems Center, which has been used to support the design, development and testing of the newest addition to the eGen portfolio, the eGen force. As a reminder, the new eGen force electric hybrid system is designed for 50-ton track vehicles and will meet the U.S. Army's optionally manned fighting vehicle requirements and has been selected as the propulsion solution for American Romaco's Linx vehicle. eGen force is scalable to 70-ton tracked vehicles, making it capable of meeting future main battle tank requirements as well. Late last year, we announced that Allison was awarded a $51 million contract for our X1100-3b1 transmission to support Abrams tanks production for the U.S. Army as well as U.S. allies.

The Abrams is the most prevalent main battle tank in the free world, and the recent announcement of defense sales expanding to Taiwan, Australia and Poland increases its presence to 8 U.S. partner nations. The Abrams tank introduced in the early 1980s has been the subject of continuous capability improvements throughout its service life. Similarly, Allison continues to develop innovative enhancements to meet customer demand while ensuring transmission longevity and performance. Allison is proud of its relationships with the U.S. Army and the world's defense vehicle manufacturers. Our internal investments have led to new contracts in the last 6 months for not only the Abrams, but also the mobile protective fire power vehicle or MPF and the U.S. Army's newest light tank as well as the M88 A3 Hercules recovery vehicle, which we expect to drive future revenue growth in the defense end market.

Internationally, we recently announced that Larson and Tuborg selected Allison's proven 3040 MX transmission, which is currently used in the U.S. Army's MPF as the propulsion solution for India's future infantry combat vehicle or FICV. The FICV is a tracked armored vehicle designed to replace India's fleet of aging BMP infantry fighting vehicles with the Indian Army's stated intention to procure approximately 750 FICVs over the next 2 decades. The FICV is just one of several programs that will continue to support growth in Allison's international defense business. With geopolitical uncertainties leading to increased defense spending and defense forces now utilizing equipment following a period of idleness due to COVID as well as new defense production programs launching every year for the next several years, we believe the defense market is entering a period of sustained revenue growth.

By delivering record sales and earnings per share in 2022, we also continue to invest in the development of new products and technologies across all of our end markets to drive future revenue growth. Our 2022 results demonstrate the power of Allison as we continue to take action to realize our growth initiatives and develop the next generation of propulsion solutions that meet the challenges of tomorrow and ensure sustainable growth for our business. Thank you, and I'll now turn the call over to Fred.

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Fred Bohley: Thank you, Dave. Following Dave's full year 2022 results comments, I'll discuss the Q4 2022 performance summary, key income statement line items and cash flow. I'll then introduce full year 2023 guidance. Please turn to Slide 5 of the presentation for the Q4 2022 performance summary. Year-over-year net sales increased 11% from the same period in 2021 to a fourth quarter record of $718 million. The increase in year-over-year results was led by a 19% increase in the North American On-Highway end market, driven by the continued strength in customer demand for last mile delivery, regional haul and vocational trucks. Year-over-year results were also improved by a 24% increase in net sales in the outside North America On-Highway end market, leading to record quarterly and full year revenue, driven by the continued execution of growth initiatives in Europe, Asia and South America.

Finally, a 9% increase in net sales in the service parts, support equipment and other end market, principally driven by price increases on certain products also contributed to the year-over-year increase in Allison's fourth quarter net sales. Gross profit for the quarter was $338 million, an 11% increase from $305 million for the same period in 2021. The increase was principally driven by price increases on certain products, and increased net sales, partially offset by higher direct material costs. Net income for the quarter was $141 million compared to $118 million for the same period in 2021. The increase was principally driven by higher gross profit and lower income tax expense, partially offset by higher selling, general and administrative expense.

Adjusted EBITDA for the quarter was $245 million compared to $220 million for the same period in 2021. The increase was principally driven by higher gross profit. Diluted earnings per share increased 32% to $1.52 from the same period in 2021 driven by higher net income and lower total shares outstanding. A detailed overview of our net sales by end market can be found on Slide 7 of the presentation. Please turn to Slide 6 of the presentation. Please turn to Slide 7 of the presentation for the Q4 2022 financial performance summary. Selling, general and administrative expenses increased $18 million from the same period in 2021, principally driven by higher commercial activity spending and increased product and warranty expenses. Engineering research and development expenses for the quarter were essentially flat from the same period in 2021.

Please turn to Slide 8 of the presentation for the Q4 2020 cash flow performance summary. Adjusted free cash flow for the quarter was $132 million compared to $105 million for the same period in 2021. The increase was driven by higher gross profit and lower operating working capital requirements, partially offset by higher capital expenditures. During the fourth quarter, we paid a dividend of $0.21 per share and settled $54 million in share repurchases for a total repurchase amount of $279 million in 2022, representing 8% of shares outstanding. Since our IPO in 2012, we repurchased nearly 60% of shares outstanding. We ended the quarter with a net leverage ratio of 2.4x, $232 million of cash and $644 million of available revolving credit facility commitments.

In addition, we continue to maintain a flexible, long-dated and covenant-light debt structure with the earliest maturity due in 2026. Of our $2.5 billion in outstanding debt, $625 million is subject to variable interest rates, of which $500 million are hedged, resulting in 95% of our debt being fixed through the third quarter of 2025. Please turn to Slide 9 of the presentation for the 2023 guidance. For 2023, Allison expects net sales to be in the range of $2.825 billion PAUSE to $2.925 billion, reflecting continued strength in demand in all of our end markets, price increases on certain products and the continued execution of growth initiatives, leading to another record net sales year. In addition to Allison's 2023 net sales guidance, we anticipate net income in the range of $500 million to $550 million, adjusted EBITDA in the range of $965 million to $1.025 billion.

Net cash provided by operating activities in the range of $605 million to $665 million, capital expenditures in the range of $125 million to $135 million and adjusted free cash flow in the range of $480 million to $530 million. This concludes our prepared remarks. Camilla, please open the call for questions.

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