Arthur J. Gallagher (AJG) FY2018 results: revenue $6.9 billion, up 11.0% on the year
Arthur J. Gallagher & Co. (AJG) reported revenue of $6.9 billion for fiscal 2018, the year ended 31 December 2018, up 11.0% on the year before. Net income was $634 million, up 31.6%, and diluted earnings per share $3.40. The figures are the company's own, from the 10-K it filed with the SEC on 8 February 2019.
Revenue
$6.9 billion
+11.0% on the year
FY2011FY2018
Operating margin
6.9%
5.8% a year earlier
FY2011FY2018
Net income
$634 million
+31.6% on the year
FY2011FY2018
Diluted EPS
$3.40
+28.8% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
6,934
6,249
5,680
+11.0%
Cost of revenue
1,816
1,636
1,409
+11.0%
Gross profit
5,118
4,613
4,272
+10.9%
Gross margin
73.8%
73.8%
75.2%
Operating income
479
360
334
+33.2%
Operating margin
6.9%
5.8%
5.9%
Interest expense
138
124
110
+11.5%
Pre-tax income
479
360
334
+33.2%
Income tax
-196
-157
-96.7
Effective tax rate
-41.0%
-43.7%
-29.0%
Net income
634
481
397
+31.6%
Net margin
9.1%
7.7%
7.0%
Diluted EPS
$3.40
$2.64
$2.22
+28.8%
$ 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
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
765
854
650
-10.4%
Capital expenditure
124
129
218
-3.7%
Free cash flow
641
725
432
-11.6%
Free cash flow margin
9.2%
11.6%
7.6%
Cash from investing
-910
-511
-485
Cash from financing
162
-47.8
-11.6
Depreciation and amortisation
419
386
351
+8.6%
Share-based compensation
13.7
17.3
14.7
-20.8%
Buybacks
11.3
17.7
101
-36.2%
Dividends paid
302
283
272
+6.8%
Dividend per share
$1.64
$1.56
$1.52
+5.1%
Diluted shares, weighted
183m
180m
178m
+1.4%
Shares outstanding at period end
184m
181m
178m
+1.7%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
4,499
4,236
3,597
+6.2%
Non-controlling interest
70.8
64.1
59.2
+10.5%
Short-term borrowings
365
290
578
+25.9%
Debt
3,091
2,692
2,145
+14.8%
Other liabilities
8,308
7,628
7,150
+8.9%
Total liabilities and equity
16,334
14,910
13,528
+9.6%
Fixed assets
437
412
378
+6.0%
Goodwill
4,626
4,165
3,753
+11.1%
Intangible assets
1,773
1,645
1,627
+7.8%
Cash and equivalents
607
681
546
-10.9%
Other assets
8,891
8,007
7,225
+11.0%
Total assets
16,334
14,910
13,528
+9.6%
10-K for the year ended 31 December 2018, filed 8 February 2019: the filing.