BATON ROUGE, La.--(BUSINESS WIRE)--Oct. 14, 2004--The Shaw Group
Inc. (NYSE: SGR) today announced financial results for its fourth
quarter and fiscal year ended August 31, 2004. Net income for the
fourth quarter of fiscal 2004 was $10.0 million, or $0.16 per diluted
share, which includes $0.6 million, or $0.01 per share, loss from
discontinued operations. This compares to net income of $9.2 million,
or $0.24 per diluted share, which includes $0.1 million, less than
$0.01 per diluted share, loss from discontinued operations, for the
three months ended August 31, 2003. For the fourth quarter of fiscal
2004, revenues were $823.2 million compared to $765.1 million in the
prior year's fourth quarter.
For the fiscal year ended August 31, 2004, the Company reported a
net loss of $31.0 million, or $0.53 per diluted share, which includes
$4.7 million, or $0.08 per diluted share, loss from discontinued
operations. This compares to net income of $20.9 million, or $0.54 per
diluted share, which included a $0.2 million, or $0.01 per diluted
share, loss from discontinued operations, for the year ended August
31, 2003. Revenues for the year ended August 31, 2004 were $3.1
billion, compared to $3.3 billion for the year ended August 31, 2003.
Shaw's backlog totaled $5.8 billion at August 31, 2004, a $1.0
billion increase from the prior year. Approximately 43%, or $2.5
billion, of the backlog is expected to be converted during fiscal
2005. Approximately 50% of the backlog is in the environmental and
infrastructure sector, primarily contracts with Federal government
agencies, and approximately 38% of the backlog is comprised of
projects for nuclear, fossil-fuel and other power generation plants.
J.M. Bernhard, Jr., Chairman and Chief Executive Officer of The
Shaw Group Inc., said, "We are very pleased with our fourth quarter
net income of $0.16 per share and positive net cash from operations of
$13 million. This is our second consecutive quarter of positive
results in both categories, reflecting the continued hard work of our
entire Shaw team to put several difficult projects behind us and to
focus on project execution and improving markets."
Mr. Bernhard added, "We have continued to diversify our services.
During 2004, our revenues were less driven by large fossil-fuel power
construction projects than in prior years. However, we have seen signs
of improvement in the fossil-fuel sector recently as evidenced by the
addition of two new combined cycle engineering and construction
projects and our FGD scrubber projects. These new fossil-fuel projects
compliment our strong nuclear power, process, and expanding
environmental and infrastructure sectors. As we look forward into 2005
and beyond, we are well positioned with our premier technology and
professional capabilities to pursue the significant opportunities
afforded by improving markets, especially in the petrochemical
processing and FGD scrubber arenas."
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 emergency response markets. A
Fortune 500 Company, The Shaw Group is headquartered in Baton Rouge,
Louisiana, and employs approximately 17,000 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.
Forward-Looking Statements - 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 website under the heading
"Forward-Looking Statements". 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
website at www.shawgrp.com.
REVENUE AND BACKLOG BY INDUSTRY AND GEOGRAPHY
Revenue by Industry
-------------------
(Fourth Quarter Ended August 31, 2004)
Environmental & Infrastructure $ 361.8 million 44 %
Power Generation $ 286.3 million 35 %
Process Industries $ 153.3 million 18 %
Other Industries $ 21.8 million 3 %
----------------- -----
Total $ 823.2 million 100 %
Revenue by Geography
--------------------
(Fourth Quarter Ended August 31, 2004)
United States $ 653.7 million 79 %
Asia/Pacific Rim $ 70.9 million 9 %
Middle East $ 52.3 million 6 %
Europe $ 21.0 million 3 %
Canada $ 19.4 million 2 %
Latin America $ 1.0 million 0 %
Other $ 4.9 million 1 %
----------------- -----
Total $ 823.2 million 100 %
Revenue by Industry
-------------------
(Year Ended August 31, 2004)
Environmental & Infrastructure $ 1,329.4 million 43 %
Power Generation $ 1,115.5 million 36 %
Process Industries $ 544.2 million 18 %
Other Industries $ 87.8 million 3 %
----------------- -----
Total $3,076.9 million 100 %
Revenue by Geography
--------------------
(Year Ended August 31, 2004)
United States $ 2,511.6 million 82 %
Asia/Pacific Rim $ 223.4 million 7 %
Middle East $ 151.3 million 5 %
Europe $ 96.3 million 3 %
Canada $ 74.5 million 2 %
Latin America $ 7.2 million 0 %
Other $ 12.6 million 1 %
----------------- -----
Total $ 3,076.9 million 100 %
Backlog by Industry
-------------------
(As of August 31, 2004)
Environmental & Infrastructure $ 2,856.4 million 50 %
Power Generation
Nuclear Power $ 1,033.1 million 18 %
Fossil Fuel EPC $ 1,013.2 million 18 %
Other Power $ 130.4 million 2 %
Process Industries $ 723.2 million 12 %
Other Industries $ 9.7 million 0 %
----------------- -----
Total $ 5,766.0 million 100 %
Backlog by Geography
--------------------
(As of August 31, 2004)
Domestic $ 4,906.6 million 85 %
International $ 859.4 million 15 %
----------------- -----
Total $ 5,766.0 million 100 %
THE SHAW GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
August 31, August 31,
---------------------- -----------------------
2004 2003 2004 2003
----------- ---------- ----------- -----------
Revenues $ 823,171 $ 765,132 $3,076,945 $3,292,804
Cost of revenues 747,679 690,947 2,857,162 3,023,048
----------- ---------- ----------- -----------
Gross profit 75,492 74,185 219,783 269,756
General and
administrative expenses 53,541 51,388 215,792 197,725
----------- ---------- ----------- -----------
Operating income (loss) 21,951 22,797 3,991 72,031
Interest expense (9,192) (10,913) (38,429) (32,043)
Interest income 539 884 1,718 5,406
Gain (Loss) on LYONs
repurchases (27) 754 (1,325) 2,723
Foreign currency
transaction gains
(losses), net 740 1,035 (2,702) 135
Other income (expense),
net 337 (879) 1,523 (13,074)
----------- ---------- ----------- -----------
(7,603) (9,119) (39,215) (36,853)
----------- ---------- ----------- -----------
Income (loss) before
income taxes, minority
interest, earnings
(losses) from
unconsolidated
entities and (loss)
income from
discontinued operations 14,348 13,678 (35,224) 35,178
Provision (benefit) for
income taxes 4,610 4,498 (11,624) 11,580
----------- ---------- ----------- -----------
Income (loss) before
minority interest,
earnings (losses) from
unconsolidated
entities and (loss)
income from
discontinued operations 9,738 9,180 (23,600) 23,598
Minority Interest (1,088) -- (5,284) --
----------- ---------- ----------- -----------
Income (loss) before
earnings (losses) from
unconsolidated
entities and (loss)
income from
discontinued operations 8,650 9,180 (28,884) 23,598
Earnings (losses) from
unconsolidated
entities, net of taxes 1,970 (105) 2,578 (2,979)
----------- ---------- ----------- -----------
Income (loss) from
continuing operations 10,620 9,075 (26,306) 20,619
(Loss) income from
discontinued operations
of certain businesses
of the Fabrication,
Manufacturing and
Distribution Segment,
net of taxes:
(Loss) income from
operations (600) 127 (1,674) 247
Impairment on
discontinued
operations -- -- (2,995) --
----------- ---------- ----------- -----------
(Loss) income from
discontinued
operations, net
of taxes (600) 127 (4,669) 247
Net income (loss) $ 10,020 $ 9,202 $ (30,975) $ 20,866
=========== ========== =========== ===========
THE SHAW GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
August 31, August 31,
--------------------- ---------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
Net income (loss) per
common share:
Basic:
Income (loss) from
continuing operations $ 0.17 $ 0.24 $ (0.45) $ 0.54
(Loss) income from
discontinued operations,
net of taxes (0.01) -- (0.08) 0.01
---------- ---------- ---------- ----------
Net income (loss) $ 0.16 $ 0.24 $ (0.53) $ 0.55
========== ========== ========== ==========
Diluted:
Income (loss) from
continuing operations $ 0.17 $ 0.24 $ (0.45) $ 0.53
(Loss) income from
discontinued operations,
net of taxes (0.01) -- (0.08) 0.01
---------- ---------- ---------- ----------
Net income (loss) $ 0.16 $ 0.24 $ (0.53) $ 0.54
========== ========== ========== ==========
CONTACT: The Shaw Group Inc., Baton Rouge
Chris D. Sammons, 225-932-2546
Website: www.shawgrp.com
SOURCE: The Shaw Group Inc.
