Arthur J. Gallagher (AJG) FY2017 results: revenue $6.2 billion, up 10.0% on the year
Arthur J. Gallagher & Co. (AJG) reported revenue of $6.2 billion for fiscal 2017, the year ended 31 December 2017, up 10.0% on the year before. Net income was $481 million, up 21.3%, and diluted earnings per share $2.64. The figures are the company's own, from the 10-K it filed with the SEC on 12 February 2018.
Revenue
$6.2 billion
+10.0% on the year
FY2010FY2017
Operating margin
5.8%
5.9% a year earlier
FY2010FY2017
Net income
$481 million
+21.3% on the year
FY2010FY2017
Diluted EPS
$2.64
+18.9% on the year
FY2010FY2017
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Revenue
6,249
5,680
5,392
+10.0%
Cost of revenue
1,636
1,409
n/a
+16.1%
Gross profit
4,613
4,272
n/a
+8.0%
Gross margin
73.8%
75.2%
n/a
Operating income
360
334
294
+7.9%
Operating margin
5.8%
5.9%
5.4%
Interest expense
124
110
103
+13.0%
Pre-tax income
360
334
294
+7.9%
Income tax
-157
-96.7
-95.6
Effective tax rate
-43.7%
-29.0%
-32.6%
Net income
481
397
357
+21.3%
Net margin
7.7%
7.0%
6.6%
Diluted EPS
$2.64
$2.22
$2.06
+18.9%
$ 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
FY2017
FY2016
FY2015
On the year
Last 8 years
Operating cash flow
854
650
n/a
+31.5%
Capital expenditure
129
218
99.0
-40.7%
Free cash flow
725
432
n/a
+67.9%
Free cash flow margin
11.6%
7.6%
n/a
Cash from investing
-511
-485
n/a
Cash from financing
-47.8
-11.6
n/a
Depreciation and amortisation
386
351
334
+10.0%
Share-based compensation
17.3
14.7
11.2
+17.7%
Buybacks
17.7
101
n/a
-82.5%
Dividends paid
283
272
258
+3.9%
Dividend per share
$1.56
$1.52
$1.48
+2.6%
Diluted shares, weighted
180m
178m
172m
+1.4%
Shares outstanding at period end
181m
178m
177m
+1.5%
Balance sheet
$ million
FY2017
FY2016
FY2015
On the year
Last 8 years
Shareholders' equity
4,236
3,597
3,638
+17.8%
Non-controlling interest
64.1
59.2
49.9
+8.3%
Short-term borrowings
290
578
245
-49.8%
Debt
2,692
2,145
2,075
+25.5%
Other liabilities
7,628
7,150
4,906
+6.7%
Total liabilities and equity
14,910
13,528
10,914
+10.2%
Fixed assets
412
378
249
+9.2%
Goodwill
4,165
3,753
3,663
+11.0%
Intangible assets
1,645
1,627
1,699
+1.1%
Cash and equivalents
681
546
480
+24.9%
Other assets
8,007
7,225
4,823
+10.8%
Total assets
14,910
13,528
10,914
+10.2%
10-K for the year ended 31 December 2017, filed 12 February 2018: the filing.