This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Arthur J. Gallagher's CEO Discusses Q4 2011 Results - Earnings Call Transcript

2011 was a great year, and we finished we think was a very, very strong fourth quarter. At the beginning of 2011 things still look to be really tough out there, but during the year we continue to build significant momentum which culminated in a very strong finish to the year. I’m proud of our team’s performance in the quarter and last year, and I want to sight some key highlights for the group this morning.

All divisions, all of our operating divisions across the entire globe contributed to our profit growth this year. Brokerage revenue on an adjusted basis was up 22%, we were back with positive organic growth at 5.2% which is really, really good work, I’m pleased with those results. Remember 2010, our organic revenues were down 2%, so a 7% turnaround is great work by the team.

Adjusted EBITDAC up 27%, if you look at that organic growth there is a very simple calculation. We essentially had flat rates for the fourth quarter, we had a flat economy, zero really declined from the economy and the organic was made up of new business less our loss business.

Our Risk Management segment adjusted revenues up 13%; our organic growth was very strong at 12.6% which Doug will make some comments on in a moment. Very good work by the team, adjusted EBITDAC in the Risk Management segment up 22%.

During the year our merger and acquisition activity, we had a record year, we purchased $277 million of additional revenue. During the year we did our largest acquisition ever which was Heath in the UK which is integrating very well. We finished in the Risk Management segment integrating the GAB acquisition all those clients are now up and operating on our claim system and our client retention is very strong.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs