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Gallagher Arthur J Co (AJG) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Gallagher Arthur J Co

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CIK: 1046578 Ticker: AJG

Exhibit 99.1

 

LOGO

NEWS RELEASE

ARTHUR J. GALLAGHER & CO. ANNOUNCES

THIRD QUARTER 2018 FINANCIAL RESULTS

ROLLING MEADOWS, IL, October 25, 2018 — Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended September 30, 2018. Management will host a webcast conference call to discuss these results on Thursday, October 25, 2018 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release and the “Supplemental Quarterly Data” and “CFO Commentary,” which may also be referenced during the call, please visit

ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled “Information Regarding Non-GAAP Measures” beginning on page 10. A new revenue recognition accounting standard was adopted as of January 1, 2018, using the full retrospective method to restate each prior reporting period presented. Accordingly, all 2017 amounts have been restated from previously reported information.

Summary of Financial Results – Third Quarter

Reconciliations of non-GAAP measures begin on page 2

 

(Dollars in millions, except per share data)    3rd Q 2018     3rd Q 2017     Change  
     Reported
GAAP		     Adjusted
Non-GAAP		     Reported
GAAP		     Adjusted
Non-GAAP		     Reported
GAAP		     Adjusted
Non-GAAP		  

Brokerage Segment

             

Revenues

    $ 1,049.4     $ 1,048.8     $ 938.7     $ 928.0       12 %      13 % 

Organic revenues

      $ 965.8       $ 908.3         6.3 % 

Net earnings

    $ 122.2       $ 94.0         30 %   

Net earnings margin

      11.6 %        10.0 %        +163 bpts   

Adjusted EBITDAC

      $ 277.3       $ 243.4         14 % 

Adjusted EBITDAC margin

        26.4 %        26.2 %        +21 bpts 

Adjusted EBITDAC margin (before acquisitions)

        27.0 %        26.2 %        +81 bpts 

Diluted net earnings per share

    $ 0.65     $ 0.74     $ 0.52     $ 0.59       25 %      25 % 

Risk Management Segment

             

Revenues before reimbursements

    $ 199.1     $ 199.1     $ 190.6     $ 188.1       4 %      6 % 

Organic revenues

      $ 195.7       $ 188.1         4.0 % 

Net earnings

    $ 16.5       $ 16.3         1 %   

Net earnings margin (before reimbursements)

      8.3 %        8.6 %        -26 bpts   

Adjusted EBITDAC

      $ 35.9       $ 33.9         6 % 

Adjusted EBITDAC margin (before reimbursements)

        18.0 %        18.0 %        +1 bpts 

Diluted net earnings per share

    $ 0.09     $ 0.10     $ 0.09     $ 0.09       0 %      11 % 

Corporate Segment

             

Diluted net earnings per share

    $ (0.06 )    $ (0.06 )    $ —       $ 0.02      

Total Company

             

Diluted net earnings per share

    $ 0.68     $ 0.78     $ 0.61     $ 0.70       11 %      11 % 

“We delivered another excellent quarter of operating performance,” said J. Patrick Gallagher, Jr., Chairman, President and CEO. “During the third quarter, our core brokerage and risk management segments combined to post over 21% growth in earnings per share; 11% growth in revenues, of which 5.9% was organic revenue growth; net earnings margin improved by 134 basis points; and adjusted EBITDAC margins (before acquisitions) expanded by 67 basis points. During the quarter, we also completed 10 tuck-in mergers with approximately $75 million of annualized revenues, bringing our first nine months total to 29 mergers with approximately $250 million of annualized revenues.”

“My recent meetings with insurance carriers, and our business leaders around the globe, confirmed that we continue to operate in an increasing P&C rate environment. Our internal data indicates modest P&C rate increases and continued growth in exposures units and payrolls across almost all geographies. Our teams are hitting on all cylinders, excited about our growth, and delivering the best insurance and risk management advice by leveraging our vast array of resources and capabilities. An excellent third quarter and first nine months positions us for a strong finish to 2018.”

 

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The following information was filed by Gallagher Arthur J Co (AJG) on Thursday, October 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Gallagher Arthur J Co's 10-Q Quarterly Report:

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Document And Entity Information
Consolidated Balance Sheet
Consolidated Balance Sheet (Parenthetical)
Consolidated Statement Of Cash Flows (Unaudited)
Consolidated Statement Of Comprehensive Earnings (Unaudited)
Consolidated Statement Of Earnings (Unaudited)
Consolidated Statement Of Stockholders' Equity (Unaudited)
Consolidated Statement Of Stockholders' Equity (Unaudited) (Parenthetical)
Accumulated Other Comprehensive Earnings (Loss)
Accumulated Other Comprehensive Earnings (Loss) (Tables)
Accumulated Other Comprehensive Earnings (Loss) - Schedule Of Accumulated Other Comprehensive Earnings (Loss) Attributable To Controlling Interests (Detail)
Accumulated Other Comprehensive Earnings - Additional Information (Detail)
Business Combinations
Business Combinations (Tables)
Business Combinations - Acquisition Method For Recording Business Combinations (Detail)
Business Combinations - Acquisition Method For Recording Business Combinations (Parenthetical) (Detail)
Business Combinations - Additional Information (Detail)
Business Combinations - Summary Of Estimated Fair Values Of Net Assets Acquired (Detail)
Business Combinations - Summary Of Unaudited Pro Forma Historical Results (Detail)
Commitments, Contingencies And Off-Balance Sheet Arrangements
Commitments, Contingencies And Off-Balance Sheet Arrangements (Tables)
Commitments, Contingencies And Off-Balance Sheet Arrangements - Additional Information (Detail)
Commitments, Contingencies And Off-Balance Sheet Arrangements - Contingent Liabilities - Additional Information (Detail)
Commitments, Contingencies And Off-Balance Sheet Arrangements - Contractual Obligations (Detail)
Commitments, Contingencies And Off-Balance Sheet Arrangements - Litigation, Regulatory And Taxation Matters- Additional Information (Detail)
Commitments, Contingencies And Off-Balance Sheet Arrangements - Off-Balance Sheet Commitments (Detail)
Commitments, Contingencies And Off-Balance Sheet Arrangements - Tax - Advantaged Investments No Longer Held - Additional Information (Detail)
Credit And Other Debt Agreements
Credit And Other Debt Agreements (Tables)
Credit And Other Debt Agreements - Summary Of Corporate And Other Debt (Detail)
Credit And Other Debt Agreements - Summary Of Corporate And Other Debt (Parenthetical) (Detail)
Deferred Compensation
Deferred Compensation - Additional Information (Detail)
Derivatives And Hedging Activity
Derivatives And Hedging Activity (Tables)
Derivatives And Hedging Activity - Additional Information (Detail)
Derivatives And Hedging Activity - Summary Of Amounts Of Derivative Gains (Losses) Recognized In Accumulated Other Comprehensive Loss (Detail)
Derivatives And Hedging Activity - Summary Of Notional And Fair Values Of Derivative Instruments (Detail)
Derivatives And Hedging Activity - Summary Of Notional And Fair Values Of Derivative Instruments (Parenthetical) (Detail)
Earnings Per Share
Earnings Per Share (Tables)
Earnings Per Share - Additional Information (Detail)
Earnings Per Share - Computation Of Basic And Diluted Net Eps (Detail)
Effect Of New Accounting Pronouncements
Effect Of New Accounting Pronouncements (Tables)
Effect Of New Accounting Pronouncements - Additional Information (Detail)
Effect Of New Accounting Pronouncements - Summary Of Cash, Cash Equivalents And Restricted Cash (Detail)
Intangible Assets
Intangible Assets (Tables)
Intangible Assets - Carrying Amount Of Goodwill Allocated By Domestic And Foreign Operations (Detail)
Intangible Assets - Changes In Carrying Amount Of Goodwill (Detail)
Intangible Assets - Estimated Aggregate Amortization Expense (Detail)
Intangible Assets - Major Classes Of Amortizable Intangible Assets (Detail)
Investments
Investments (Tables)
Investments - Investments Reported In Other Current And Non-Current Assets (Detail)
Investments - Investments Reported In Other Current And Non-Current Assets (Parenthetical) (Detail)
Other Current Assets
Other Current Assets (Tables)
Other Current Assets - Additional Information (Detail)
Other Current Assets - Summary Of Major Classes Of Other Current Assets (Detail)
Restricted Stock, Performance Share And Cash Awards
Restricted Stock, Performance Share And Cash Awards - Additional Information (Detail)
Revenue From Contracts With Customers
Revenue From Contracts With Customers (Tables)
Revenue From Contracts With Customers - Additional Information (Detail)
Revenue From Contracts With Customers - Summary Of Balance Sheet Line Items, Which Reflect Adoption Of New Revenue Recognition Guidance (Detail)
Revenue From Contracts With Customers - Summary Of Changes In Deferred Revenue Balances (Detail)
Revenue From Contracts With Customers - Summary Of Consolidated Statement Of Cash Flows Line Items, Which Reflect Adoption Of New Revenue Recognition Guidance (Detail)
Revenue From Contracts With Customers - Summary Of Consolidated Statement Of Comprehensive Earnings Line Items, Which Reflect Adoption Of New Revenue Recognition Guidance (Detail)
Revenue From Contracts With Customers - Summary Of Consolidated Statement Of Earnings Line Items, Which Reflect Adoption Of New Revenue Recognition Guidance (Detail)
Revenue From Contracts With Customers - Summary Of Expected Revenue Related To Performance Obligations (Detail)
Revenue From Contracts With Customers - Summary Of Statement Of Stockholders' Equity Items, Which Reflect Adoption Of New Revenue Recognition Guidance (Detail)
Revenue From Contracts With Customers - Summary Of Unbilled Receivables, Contract Assets And Contract Liabilities From Contracts With Customers (Detail)
Segment Information
Segment Information (Tables)
Segment Information - Additional Information (Detail)
Segment Information - Schedule Of Segment Reporting Information By Segment (Detail)
Segment Information - Summary Of Geographical Location And Segment (Detail)
Segment Information - Summary Of Revenues By Type And Segment (Detail)
Stock Option Plans
Stock Option Plans (Tables)
Stock Option Plans - Additional Information (Detail)
Stock Option Plans - Black-Scholes Option Pricing Model With Weighted Average (Detail)
Stock Option Plans - Stock Option Activity And Related Information (Detail)
Stock Option Plans - Stock Options Outstanding And Exercisable (Detail)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (Policies)
Summary Of Significant Accounting Policies - Additional Information (Detail)
Ticker: AJG
CIK: 354190
Form Type: 10-Q Quarterly Report
Accession Number: 0001193125-18-309015
Submitted to the SEC: Fri Oct 26 2018 11:33:39 AM EST
Accepted by the SEC: Fri Oct 26 2018
Period: Sunday, September 30, 2018
Industry: Insurance Agents Brokers And Service

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