Aon plc Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Earnings Guidance for the Year 2015
Feb 6 15
Aon plc reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company’s net income attributable to company shareholders was $459 million, or $1.56 per diluted share, compared to $355 million, or $1.14 per diluted share, for the prior year quarter, highlighted by significant operational improvement in both segments and effective capital management, for a strong finish to 2014. Net income per share attributable to company shareholders, adjusted for certain items, increased 23% to $1.89, compared to $1.54 in the prior year quarter, including a $0.06 per share unfavorable impact on adjusted net income from continuing operations if the company were to translate prior year quarter results at current quarter foreign exchange rates. Total revenue increased 3% to $3.3 billion compared to the prior year quarter driven primarily by 6% organic revenue growth, partially offset by a 3% unfavorable impact from foreign currency translation. Operating income was $635 million compared to $515 million a year ago. Income before income taxes was $581 million compared to $475 million a year ago. Adjusted operating income was $759 million compared to $679 million a year ago. Adjusted income before income taxes was $705 million compared to $639 million a year ago. Net income attributable to company shareholders - as adjusted was $558 million compared to $480 million a year ago.
For the full year, the company’s total revenue was $12.0 billion with organic revenue growth of 3%. Operating income was $1,966 million compared to $1,671 million a year ago. Income before income taxes was $1,765 million compared to $1,538 million a year ago. Net income attributable to company shareholders was $1,397 million or $4.66 per diluted share compared to $1,113 million or $3.53 per diluted share a year ago. Adjusted operating income was $2,353 million compared to $2,245 million a year ago. Adjusted income before income taxes was $2,152 million compared to $2,112 million a year ago. Net income attributable to company shareholders - as adjusted was $1,711 million or $5.71 per diluted share compared to $1,541 million or $4.89 per diluted share a year ago. Cash provided by operating activities was $1,642 million compared to $1,633 million a year ago. The increase primarily by growth in net income and a decline in pension contributions, offset by an unfavorable impact from timing of significant receivable collections in the prior year period. CapEx, was roughly flat at $1.4 billion, reflecting higher cash flow from operations, offset by a $27 million increase in CapEx.
The company expects strong earnings growth and significant free cash flow growth in 2015 driven by operational and working capital improvements, uses of cash for pension and restructuring continuing to wind down and lower cash tax payments.
Aon plc, Aon Corporation and Aon UK Limited Enter into $900,000,000 Five-Year Credit Agreement
Feb 4 15
On February 2, 2015, Aon plc, Aon Corporation and Aon UK Limited entered into a $900,000,000 five-year credit agreement with Citibank, N.A. as administrative agent, the lenders party thereto, Bank of America, N.A. and Morgan Stanley Senior Funding Inc., as syndication agents, and Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley Senior Funding Inc., as joint lead arrangers and joint book managers, pursuant to which, subject to the conditions set out in the Revolving Credit Agreement, the Revolving Lenders committed to provide an unsecured revolving credit facility. The Revolving Credit Agreement replaces the Parent's 650,000,000 multi-currency revolving loan credit facility dated as of October 15, 2010 which was scheduled to mature on October 15, 2015. Borrowings under the Revolving Credit Agreement may be made by the Aon plc, Aon Corporation, Aon UK Limited or any other subsidiary designated as a borrower in U.S. dollars, pounds sterling or euros and will bear interest, at the borrower's option, at the euro currency rate or an alternate base rate. The euro currency rate is equal to either with respect to an advance in U.S. dollars or pounds sterling, the applicable LIBOR rate for the interest period relevant to such borrowing; or with respect to advances in euros, the applicable EURIBOR rate for the interest period relevant to such borrowing (adjusted for any statutory reserve requirements for euro currency liabilities), in each case divided by one minus the reserve requirement plus the applicable margin. The alternate base rate is equal to the high of the rate of interest publicly announced by Citibank as its base rate, the federal funds effective rate from time to time plus 0.5% and the one month LIBOR rate plus 1.0%, in each case, plus the applicable margin. The applicable margin is based on the public debt rating of Aon plc's long-term senior unsecured debt and may change in connection with a change to Aon plc's debt ratings. There is currently no applicable margin for alternate base rate advances and the applicable margin for euro currency advances is currently 100 basis points. The Revolving Credit Agreement has a maturity date of February 2, 2020, subject to two optional one-year extensions, and contains covenants with respect to the ratio of consolidated adjusted EBITDA to consolidated interest expense (which may not be less than 4.00 to 1.00) and the ratio of consolidated funded debt to consolidated adjusted EBITDA (which may not be more than 3.25 to 1.00, subject to certain exceptions), as well as other customary covenants, undertakings and events of default. In connection with entering into the Revolving Credit Agreement, effective February 2, 2015, Aon plc terminated its 650,000,000 multi-currency revolving loan credit facility dated as of October 15, 2010.
Aon plc Presents at Bank of America/Merrill Lynch 2015 Insurance Conference, Feb-12-2015 10:35 AM
Feb 3 15
Aon plc Presents at Bank of America/Merrill Lynch 2015 Insurance Conference, Feb-12-2015 10:35 AM. Venue: The New York Palace, New York, New York, United States. Speakers: Christa Davies, Chief Financial Officer and Executive Vice President of Global Finance, Gregory C. Case, Chief Executive Officer, President, Executive Director and Member of Executive Committee.