Arthur J. Gallagher (AJG) FY2016 results: revenue $5.7 billion, up 5.3% on the year
Arthur J. Gallagher & Co. (AJG) reported revenue of $5.7 billion for fiscal 2016, the year ended 31 December 2016, up 5.3% on the year before. Net income was $397 million, up 11.2%, and diluted earnings per share $2.22. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2017.
Revenue
$5.7 billion
+5.3% on the year
FY2009FY2016
Operating margin
5.9%
5.4% a year earlier
FY2009FY2016
Net income
$397 million
+11.2% on the year
FY2009FY2016
Diluted EPS
$2.22
+7.8% on the year
FY2009FY2016
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Revenue
5,680
5,392
4,626
+5.3%
Cost of revenue
1,409
n/a
1,059
Gross profit
4,272
n/a
3,568
Gross margin
75.2%
n/a
77.1%
Operating income
334
294
292
+13.7%
Operating margin
5.9%
5.4%
6.3%
Interest expense
110
103
89.0
+6.6%
Pre-tax income
334
294
292
+13.7%
Income tax
-96.7
-95.6
-36.0
Effective tax rate
-29.0%
-32.6%
-12.3%
Net income
397
357
303
+11.2%
Net margin
7.0%
6.6%
6.6%
Diluted EPS
$2.22
$2.06
$1.97
+7.8%
$ 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
FY2016
FY2015
FY2014
On the year
Last 8 years
Operating cash flow
650
n/a
n/a
Capital expenditure
218
99.0
81.5
+120.0%
Free cash flow
432
n/a
n/a
Free cash flow margin
7.6%
n/a
n/a
Cash from investing
-485
n/a
n/a
Cash from financing
-11.6
n/a
n/a
Depreciation and amortisation
351
334
259
+5.0%
Share-based compensation
14.7
11.2
10.6
+31.2%
Buybacks
101
n/a
n/a
Dividends paid
272
258
223
+5.7%
Dividend per share
$1.52
$1.48
$1.44
+2.7%
Diluted shares, weighted
178m
172m
153m
+3.1%
Shares outstanding at period end
178m
177m
165m
+0.8%
Balance sheet
$ million
FY2016
FY2015
FY2014
On the year
Last 8 years
Shareholders' equity
3,597
3,638
3,229
-1.1%
Non-controlling interest
59.2
49.9
75.7
+18.6%
Short-term borrowings
578
245
140
+135.9%
Debt
2,145
2,075
2,125
+3.4%
Other liabilities
7,150
4,906
4,440
+45.7%
Total liabilities and equity
13,528
10,914
10,010
+24.0%
Fixed assets
378
249
195
+51.6%
Goodwill
3,753
3,663
3,450
+2.5%
Intangible assets
1,627
1,699
1,776
-4.2%
Cash and equivalents
546
480
314
+13.6%
Other assets
7,225
4,823
4,275
+49.8%
Total assets
13,528
10,914
10,010
+24.0%
10-K for the year ended 31 December 2016, filed 13 February 2017: the filing.