Arthur J. Gallagher (AJG) Q4 FY2021 earnings: revenue $2.0 billion, up 15.8% on the year

Arthur J. Gallagher & Co. (AJG) reported revenue of $2.0 billion for Q4 FY2021, the quarter ended 31 December 2021, up 15.8% on the same quarter a year earlier. Net income was $109 million, down 23.1% on the year, and diluted earnings per share $0.47. The figures are the company's own, from the 10-K it filed with the SEC on 18 February 2022.

Revenue

$2.0 billion

+15.8% on the year · -7.7% on the quarter

Q1 FY2020Q4 FY2021

Operating margin

5.7%

7.8% a year earlier

Q1 FY2020Q4 FY2021

Net income

$109 million

-23.1% on the year · -51.4% on the quarter

Q1 FY2020Q4 FY2021

Diluted EPS

$0.47

-34.7% on the year · -55.7% on the quarter

Q1 FY2020Q4 FY2021

this quarterthe same quarter a year earlierHover a bar for its figure.

Income statement (profit and loss)

$ million	Q4 FY2021	Q3 FY2021	Q4 FY2020	On the quarter	On the year
Revenue	1,973	2,138	1,704	-7.7%	+15.8%
Cost of revenue	229	n/a	n/a
Gross profit	1,744	n/a	n/a
Gross margin	88.4%	n/a	n/a
Operating income	113	231	134	-51.2%	-15.5%
Operating margin	5.7%	10.8%	7.8%
Interest expense	61.5	n/a	n/a
Pre-tax income	113	n/a	n/a
Income tax	-7.9	n/a	n/a
Effective tax rate	-7.0%	n/a	n/a
Net income	109	225	142	-51.4%	-23.1%
Net margin	5.5%	n/a	n/a
Diluted EPS	$0.47	$1.06	$0.72	-55.7%	-34.7%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free 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	Q4 FY2021	Q3 FY2021	Q4 FY2020	On the quarter	On the year
Operating cash flow	563	n/a	n/a
Capital expenditure	25.4	n/a	n/a
Free cash flow	538	n/a	n/a
Free cash flow margin	27.2%	n/a	n/a
Cash from investing	-2,710	n/a	n/a
Cash from financing	682	n/a	n/a
Depreciation and amortisation	146	131	134	+11.6%	+9.7%
Share-based compensation	4.3	n/a	n/a
Dividends paid	99.8	n/a	n/a
Diluted shares, weighted	203m	207m	n/a	-2.1%
Shares outstanding at period end	208m	207m	194m	+0.6%	+7.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q4 FY2021	Q3 FY2021	Q4 FY2020	On the quarter	On the year
Shareholders' equity	8,508	8,420	6,186	+1.0%	+37.5%
Non-controlling interest	51.7	n/a	n/a
Debt	6,284	5,506	4,545	+14.1%	+38.3%
Operating lease liabilities	309	n/a	n/a
Other liabilities	18,192	n/a	n/a
Total liabilities and equity	33,345	n/a	n/a
Fixed assets	501	n/a	n/a
Goodwill	8,666	n/a	n/a
Intangible assets	3,954	n/a	n/a
Cash and equivalents	403	2,735	665	-85.3%	-39.4%
Other assets	19,821	n/a	n/a
Total assets	33,345	n/a	n/a

Questions

What was Arthur J. Gallagher's revenue in Q4 FY2021?

Arthur J. Gallagher (AJG) reported revenue of $2.0 billion for Q4 FY2021, the quarter ended 31 December 2021, up 15.8% on the same quarter a year earlier.

How much did Arthur J. Gallagher earn in Q4 FY2021?

Net income for Q4 FY2021 was $109 million, down 23.1% on the year, and diluted earnings per share $0.47.

When did Arthur J. Gallagher report Q4 FY2021 results?

Arthur J. Gallagher filed its 10-K for the year that ended with the quarter on 18 February 2022; the fourth quarter is the year less the first three.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022 †	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025 †	Q2 FY2025 †	Q3 FY2025 †	Q4 FY2025 * †	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,973	2,435	2,043	2,044	2,028	2,706	2,442	2,492	2,432	3,257	2,775	2,807	2,716	3,727	3,221	3,366	3,628	4,758	4,003	3,976
Cost of revenue	229	22.9	0.0	0.0	0.0	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Gross profit	1,744	2,412	2,043	2,044	2,028	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Gross margin	88%	99%	100%	100%	100%	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Operating income	113	538	352	315	122	606	297	364	-82.2	773	366	403	333	873	471	347	180	1,043	414	515
Operating margin	6%	22%	17%	15%	6%	22%	12%	15%	-3%	24%	13%	14%	12%	23%	15%	10%	5%	22%	10%	13%
Interest expense	61.5	63.9	64.6	64.4	64.0	67.9	77.8	72.8	78.2	92.2	94.3	92.9	102	158	158	161	161	158	168	168
Pre-tax income	113	538	352	315	122	606	297	364	-82.2	773	366	403	333	873	473	346	180	1,043	414	515
Tax rate	-7%	18%	19%	19%	-11%	20%	21%	22%	n/a	21%	22%	22%	23%	19%	22%	21%	14%	21%	22%	21%
Net income	109	439	284	256	136	486	234	281	-32.2	608	283	313	258	704	368	272	151	822	324	403
Net margin	6%	18%	14%	13%	7%	18%	10%	11%	-1%	19%	10%	11%	10%	19%	11%	8%	4%	17%	8%	10%
Diluted EPS	$0.47	$2.05	$1.33	$1.19	$0.62	$2.24	$1.07	$1.28	-$0.15	$2.74	$1.27	$1.39	$1.12	$2.72	$1.40	$1.04	$0.58	$3.16	$1.25	$1.55
Operating cash flow	563	217	334	1,157	200	428	12.4	897	694	789	120	935	739	872	-426	731	753	957	10.0	1,343
Capital expenditure	25.4	37.7	53.4	49.2	42.4	29.7	59.1	58.8	46.0	29.7	31.8	36.8	43.6	28.0	39.4	37.8	39.6	36.0	51.0	48.0
Free cash flow	538	179	280	1,108	158	399	-46.7	838	648	760	87.7	898	696	844	-466	694	713	921	-41.0	1,295
Buybacks	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	0.0	0.0	0.0	n/a	310	170	100
Dividends paid	99.8	107	107	108	108	117	118	119	119	131	131	132	132	166	167	167	168	180	179	180
Shares outstanding	208m	210m	210m	211m	212m	214m	216m	216m	217m	218m	219m	219m	250m	256m	256m	257m	257m	257m	256m	256m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS 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 the share count are as they are. Free 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. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-K for the period ended 31 December 2021, filed 18 February 2022: the filing.