Arthur J. Gallagher (AJG) FY2014 results: revenue $4.6 billion, up 45.5% on the year
Arthur J. Gallagher & Co. (AJG) reported revenue of $4.6 billion for fiscal 2014, the year ended 31 December 2014, up 45.5% on the year before. Net income was $303 million, up 13.0%, and diluted earnings per share $1.97. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2015.
Revenue
$4.6 billion
+45.5% on the year
FY2008FY2014
Operating margin
6.3%
9.2% a year earlier
FY2008FY2014
Net income
$303 million
+13.0% on the year
FY2008FY2014
Diluted EPS
$1.97
-4.4% on the year
FY2008FY2014
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2014
FY2013
FY2012
On the year
Last 8 years
Revenue
4,626
3,180
2,520
+45.5%
Cost of revenue
1,059
437
112
+142.1%
Gross profit
3,568
2,742
2,409
+30.1%
Gross margin
77.1%
86.2%
95.6%
Operating income
292
291
245
+0.2%
Operating margin
6.3%
9.2%
9.7%
Interest expense
89.0
50.1
43.0
+77.6%
Pre-tax income
292
291
245
+0.2%
Income tax
-36.0
6.4
50.3
Effective tax rate
-12.3%
2.2%
20.5%
Net income
303
269
195
+13.0%
Net margin
6.6%
8.4%
7.7%
Diluted EPS
$1.97
$2.06
$1.59
-4.4%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2014
FY2013
FY2012
On the year
Last 8 years
Operating cash flow
n/a
350
343
Capital expenditure
81.5
93.6
51.0
-12.9%
Free cash flow
n/a
256
292
Free cash flow margin
n/a
8.1%
11.6%
Cash from investing
n/a
-852
-382
Cash from financing
n/a
503
45.9
Depreciation and amortisation
259
179
140
+45.0%
Share-based compensation
10.6
7.7
7.5
+37.7%
Buybacks
n/a
n/a
1.5
Dividends paid
223
183
204
+22.2%
Dividend per share
$1.44
$1.40
$1.36
+2.9%
Diluted shares, weighted
153m
129m
121m
+18.6%
Shares outstanding at period end
165m
134m
126m
+23.2%
Balance sheet
$ million
FY2014
FY2013
FY2012
On the year
Last 8 years
Shareholders' equity
3,229
2,086
1,659
+54.9%
Non-controlling interest
75.7
29.3
14.2
+158.4%
Short-term borrowings
140
630
129
-77.8%
Debt
2,125
825
725
+157.6%
Other liabilities
4,440
3,290
2,826
+34.9%
Total liabilities and equity
10,010
6,860
5,352
+45.9%
Fixed assets
195
160
105
+21.8%
Goodwill
3,450
2,145
1,473
+60.8%
Intangible assets
1,776
1,079
810
+64.6%
Cash and equivalents
314
298
302
+5.5%
Other assets
4,275
3,178
2,662
+34.5%
Total assets
10,010
6,860
5,352
+45.9%
10-K for the year ended 31 December 2014, filed 13 February 2015: the filing.