Arthur J. Gallagher (AJG) FY2019 results: revenue $7.2 billion, up 3.8% on the year
Arthur J. Gallagher & Co. (AJG) reported revenue of $7.2 billion for fiscal 2019, the year ended 31 December 2019, up 3.8% on the year before. Net income was $669 million, up 5.6%, and diluted earnings per share $3.52. The figures are the company's own, from the 10-K it filed with the SEC on 7 February 2020.
Revenue
$7.2 billion
+3.8% on the year
FY2012FY2019
Operating margin
8.7%
6.9% a year earlier
FY2012FY2019
Net income
$669 million
+5.6% on the year
FY2012FY2019
Diluted EPS
$3.52
+3.5% on the year
FY2012FY2019
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Revenue
7,195
6,934
6,249
+3.8%
Cost of revenue
1,353
1,816
1,636
-25.5%
Gross profit
5,842
5,118
4,613
+14.2%
Gross margin
81.2%
73.8%
73.8%
Operating income
626
479
360
+30.6%
Operating margin
8.7%
6.9%
5.8%
Interest expense
180
138
124
+29.9%
Pre-tax income
626
479
360
+30.6%
Income tax
-89.7
-196
-157
Effective tax rate
-14.3%
-41.0%
-43.7%
Net income
669
634
481
+5.6%
Net margin
9.3%
9.1%
7.7%
Diluted EPS
$3.52
$3.40
$2.64
+3.5%
$ 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
FY2019
FY2018
FY2017
On the year
Last 8 years
Operating cash flow
1,191
765
854
+55.7%
Capital expenditure
139
124
129
+11.6%
Free cash flow
1,052
641
725
+64.2%
Free cash flow margin
14.6%
9.2%
11.6%
Cash from investing
-1,448
-910
-511
Cash from financing
638
162
-47.8
+294.1%
Depreciation and amortisation
474
419
386
+13.2%
Share-based compensation
14.0
13.7
17.3
+2.2%
Buybacks
n/a
11.3
17.7
Dividends paid
321
302
283
+6.4%
Dividend per share
$1.72
$1.64
$1.56
+4.9%
Diluted shares, weighted
186m
183m
180m
+1.8%
Shares outstanding at period end
188m
184m
181m
+2.2%
Balance sheet
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Shareholders' equity
5,156
4,499
4,236
+14.6%
Non-controlling interest
60.0
70.8
64.1
-15.3%
Short-term borrowings
n/a
365
290
Debt
4,607
3,091
2,692
+49.0%
Operating lease liabilities
341
n/a
n/a
Other liabilities
9,472
8,308
7,628
+14.0%
Total liabilities and equity
19,635
16,334
14,910
+20.2%
Fixed assets
467
437
412
+7.0%
Goodwill
5,618
4,626
4,165
+21.5%
Intangible assets
2,319
1,773
1,645
+30.8%
Cash and equivalents
605
607
681
-0.4%
Other assets
10,625
8,891
8,007
+19.5%
Total assets
19,635
16,334
14,910
+20.2%
10-K for the year ended 31 December 2019, filed 7 February 2020: the filing.