BATON ROUGE, La.--(BUSINESS WIRE)--Oct. 16, 2003--The Shaw Group
Inc. (NYSE: SGR) today announced financial results for its fourth
quarter and fiscal year ended August 31, 2003. Earnings for the fourth
quarter of fiscal 2003 were $9.2 million, or $0.24 per diluted share.
This compares to earnings of $31.3 million, or $0.70 per diluted
share, for the three months ended August 31, 2002. For the fourth
quarter of fiscal 2003 revenues were $765.4 million compared to $1.2
billion in the prior year's fourth quarter.
For the year ended August 31, 2003, the Company reported earnings
of $20.9 million, or $0.54 per diluted share. This compares to
earnings of $98.4 million, or $2.26 per diluted share for the year
ended August 31, 2002. Revenues for the year ended August 31, 2003
increased to $3.3 billion, compared to $3.2 billion for the year ended
August 31, 2002.
"There is no question that the protracted weakness in the power
generation market and the subsequent financial instability of some of
our energy clients presented challenges never before faced by our
company," stated J.M. Bernhard, Jr., Chairman and Chief Executive
Officer of The Shaw Group Inc. "However, I am extremely satisfied with
the manner in which our organization has responded to these
difficulties. We are pleased to report that with the near completion
of the NEG projects and our recent settlement with NRG, we have made
great strides in putting these negative issues behind us."
Mr. Bernhard continued, "Furthermore, we have kicked off our new
fiscal year with several major awards and we are experiencing strong
booking and bidding activity, especially for fossil and nuclear power
EPC and maintenance work."
Shaw's backlog totaled approximately $4.8 billion at August 31,
2003, of which approximately 36%, or $1.7 billion, is expected to be
completed during the next 12 months. Over 52% of the Company's total
backlog includes contracts with federal government agencies, such as
the Department of Defense, the Department of Energy and the U.S.
Environmental Protection Agency. Approximately 27% of total backlog is
comprised of long-term maintenance contracts for power and process
facilities located primarily in the United States.
"Shaw's diversified portfolio of federal government contracts and
our growing maintenance operations have extended the duration and
reduced the cyclicality of our backlog, which provides improved
revenue and earnings visibility for our Company," stated Mr. Bernhard.
"In spite of no major power awards in 2003 and the continued weakness
in the domestic process market, we were effective in reallocating our
resources and successfully expanding other segments of our business.
Our infrastructure backlog increased over 30% and our environmental
services contracts grew 16% year over year. In addition, our nuclear
maintenance group had a solid year and 2004 is shaping up to be
equally promising."
"As we announced in a separate press release earlier today, we are
considering our financing alternatives," Mr. Bernhard continued. "With
a focus on integrating our business lines, adding depth to our
leadership team and identifying opportunities for continued innovation
and growth, Shaw is aggressively positioning itself to fully
capitalize on the opportunities that lie ahead and to sustain its long
history of success."
The Shaw Group Inc. is a leading global provider of engineering,
procurement, construction, maintenance, fabrication, manufacturing,
consulting, remediation, and facilities management services for
government and private sector clients in the power, process,
environmental, infrastructure and homeland defense markets. The
Company is headquartered in Baton Rouge, Louisiana and employs
approximately 14,800 people at its offices and operations in North
America, South America, Europe, the Middle East and the Asia-Pacific
region. For further information, please visit the Company's website at
www.shawgrp.com
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for certain forward-looking statements. The statements
contained herein that are not historical facts (including without
limitation statements to the effect that the Company or its management
"believes," "expects," "anticipates," "plans," or other similar
expressions) and statements related to revenues, earnings, backlog, or
other financial information or results are forward-looking statements
based on the Company's current expectations and beliefs concerning
future developments and their potential effects on the Company. There
can be no assurance that future developments affecting the Company
will be those anticipated by the Company. These forward-looking
statements involve significant risks and uncertainties (some of which
are beyond our control) and assumptions and are subject to change
based upon various factors. Should one or more of such risks or
uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those
projected in the forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. A description of some of the risks and uncertainties that
could cause actual results to differ materially from such
forward-looking statements can be found in the Company's reports and
registration statements filed with the Securities and Exchange
Commission, including its Form 10-K and Form 10-Q, reports and on the
Company's web-site under the heading "Forward Looking Statement".
These documents are also available from the Securities and Exchange
Commission or from the Investor Relations department of Shaw. For more
information on the company and announcements it makes from time to
time on a regional basis visit our web site at www.shawgrp.com.
REVENUE AND BACKLOG BY INDUSTRY AND GEOGRAPHY
Revenue by Industry
-------------------
(Fourth Quarter Ended August 31, 2003)
Environmental & Infrastructure $ 330.3 million 43 %
Power Generation $ 279.6 million 37 %
Process Industries $ 133.8 million 17 %
Other Industries $ 21.7 million 3 %
----------------- -----
Total $ 765.4 million 100 %
Revenue by Geography
--------------------
(Fourth Quarter Ended August 31, 2003)
United States $ 635.4 million 83 %
Asia/Pacific Rim $ 61.4 million 8 %
Canada $ 29.1 million 4 %
Europe $ 29.0 million 4 %
Middle East $ 6.4 million 1 %
Latin America $ 3.3 million - %
Other $ 0.8 million - %
----------------- -----
Total $ 765.4 million 100 %
Revenue by Industry
-------------------
(Year Ended August 31, 2003)
Power Generation $ 1,550.0 million 47 %
Environmental & Infrastructure $ 1,203.8 million 36 %
Process Industries $ 440.5 million 13 %
Other Industries $ 112.5 million 4 %
----------------- -----
Total $ 3,306.8 million 100 %
Revenue by Geography
--------------------
(Year Ended August 31, 2003)
United States $ 2,812.2 million 85 %
Asia/Pacific Rim $ 221.6 million 7 %
Canada $ 127.7 million 4 %
Europe $ 102.1 million 3 %
Latin America $ 15.2 million 0.5 %
Middle East $ 12.0 million - %
Other $ 16.0 million 0.5 %
----------------- -----
Total $ 3,306.8 million 100 %
Backlog by Industry
-------------------
(At August 31, 2003)
Environmental & Infrastructure $ 2,783.9 million 59 %
Power Generation
Nuclear Power $ 1,113.7 million 23 %
Fossil Fuel EPC $ 198.6 million 4 %
Other Power $ 87.4 million 2 %
Process Industries $ 529.1 million 11 %
Other Industries $ 38.6 million 1 %
----------------- -----
Total $ 4,751.3 million 100 %
Backlog by Geography
--------------------
(At August 31, 2003)
Domestic $ 4,310.7 million 91 %
International $ 440.6 million 9 %
----------------- -----
Total $ 4,751.3 million 100 %
The Shaw Group Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended Year Ended
August 31, August 31,
------------------- ---------------------
2003 2002 2003 2002
------------------- ---------- ----------
Income:
Revenues $765,414 $1,248,220 $3,306,762 $3,170,696
Cost of revenues 690,807 1,137,007 3,033,240 2,843,070
-------- ---------- ---------- ----------
Gross profit 74,607 111,213 273,522 327,626
General and administrative
expenses 51,392 54,914 200,874 161,248
-------- ---------- ---------- ----------
Operating income 23,215 56,299 72,648 166,378
Interest expense (10,913) (5,920) (32,043) (23,028)
Interest income 884 2,125 5,406 11,518
Other income (expenses),
net 705 (3,639) (10,421) (3,856)
-------- ---------- ---------- ----------
(9,324) (7,434) (37,058) (15,366)
-------- ---------- ---------- ----------
Income before income taxes
and earnings (losses)
from unconsolidated
entities 13,891 48,865 35,590 151,012
Provision for income taxes 4,584 17,575 11,745 54,348
-------- ---------- ---------- ----------
Income before earnings
(losses) from
unconsolidated entities 9,307 31,290 23,845 96,664
Earnings (losses) from
unconsolidated entities
(net of taxes) (105) 55 (2,979) 1,703
-------- ---------- ---------- ----------
Net Income $ 9,202 $ 31,345 $ 20,866 $ 98,367
======== ========== ========== ==========
Basic income per common
share:
Net income available to
common shareholders $ 9,202 $ 31,345 $ 20,866 $ 98,367
======== ========== ========== ==========
Weighted average common
shares 37,757 41,415 37,914 40,834
======== ========== ========== ==========
Net income per common
share $ 0.24 $ 0.76 $ 0.55 $ 2.41
======== ========== ========== ==========
Diluted income per common
share:
Net income available to
common shareholders $ 9,202 $ 31,345 $ 20,866 $ 98,367
Interest on convertible
debt, net of taxes -- 2,690 -- 10,697
-------- ---------- ---------- ----------
Net income for diluted
computation $ 9,202 $ 34,035 $ 20,866 $ 109,064
======== ========== ========== ==========
Weighted average common
shares 38,125 48,684 38,355 48,238
======== ========== ========== ==========
Diluted income per
common share $ 0.24 $ 0.70 $ 0.54 $ 2.26
======== ========== ========== ==========
CONTACT: The Shaw Group Inc., Baton Rouge
Laurie LaChiusa, 225-932-2500
SOURCE: The Shaw Group Inc.
