| The Shaw Group Inc. Announces Record Results for Fiscal Year 2001; Backlog Reaches $4.5 Billion | ||||||
BATON ROUGE, La.--(BUSINESS WIRE)--Oct. 9, 2001--The Shaw Group Inc. (NYSE:SGR) ("Shaw" or "the Company") today announced an 89% increase in earnings to $19.3 million, or $0.45 per diluted share, for the three months ended August 31, 2001. This compares to earnings of $10.2 million, or $0.30 per diluted share, before an extraordinary item, for the three months ended August 31, 2000. Fourth quarter fiscal 2001 sales increased 46%, reaching $385.7 million, compared to $263.8 million for the fourth quarter of fiscal 2000. For the year ended August 31, 2001, the Company reported a 101% increase in earnings to $61.2 million, or $1.46 per diluted share, before an extraordinary item. This compares to earnings of $30.4 million, or $0.99 per diluted share, before an extraordinary item and cumulative accounting change, for the year ended August 31, 2000. Sales for the year ended August 31, 2001 increased 102% to $1.5 billion, compared to $763 million in sales for the year ended August 31, 2000. Shaw's backlog totaled $4.5 billion at August 31, 2001 with approximately 42%, or $1.9 billion, to be worked off during the next 12 months. Driven primarily by strength in the domestic power market, this represents a 137% increase over the $1.9 billion backlog reported at August 31, 2000, and a 25% increase over Shaw's backlog at May 31, 2001 of $3.6 billion. "This has been an extraordinary year of achievement and growth for our Company," stated J. M. Bernhard, Jr., Shaw's Chairman, President and Chief Executive Officer. "Our employees are to be commended for their success in placing us in a position to win. Beyond our record financial results, we are very pleased with the relationships we have formed with our customers and we are confident that they will provide a means for increasing shareholder value as they continue to develop and unfold over the next year." The Shaw Group Inc. is the world's only vertically-integrated provider of complete piping systems and comprehensive engineering, procurement and construction services to the power generation industry. Shaw is the largest supplier of fabricated piping systems in the United States and a leading supplier worldwide, having installed piping systems in power plants with an aggregate generation capacity in excess of 200,000 megawatts. While the majority of Shaw's backlog is attributable to the power generation industry, the Company also does work in the process industries, including petrochemical, chemical and refining, and the environmental and infrastructure sector. The Company currently has offices and operations in North America, South America, Europe, the Middle East and Asia-Pacific; and has more than 13,000 employees. For additional information on The Shaw Group, please visit the Company's web site 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. The Shaw Group Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
August 31, August 31,
--------------------- ---------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
Income:
Sales $ 385,738 $ 263,838 $1,538,932 $ 762,655
Cost of sales 322,238 218,783 1,292,316 635,579
---------- ---------- ---------- ----------
Gross profit 63,500 45,055 246,616 127,076
General and administrative
expenses 33,018 25,203 139,660 74,297
---------- ---------- ---------- ----------
Operating income 30,482 19,852 106,956 52,779
Interest expense (5,673) (3,070) (15,680) (8,003)
Other income, net 6,074 188 8,618 772
---------- ---------- ---------- ----------
401 (2,882) (7,062) (7,231)
---------- ---------- ---------- ----------
Income before income taxes,
earnings (losses) from
unconsolidated entities,
extraordinary item and
cumulative effect of
change in accounting
principle 30,883 16,970 99,894 45,548
Provision for income taxes 11,595 7,030 38,366 16,359
---------- ---------- ---------- ----------
Income before earnings
(losses) from
unconsolidated entities,
extraordinary item and
cumulative effect of
change in accounting
principle 19,288 9,940 61,528 29,189
Earnings (losses) from
unconsolidated entities
(net of taxes) 41 215 (316) 1,194
---------- ---------- ---------- ----------
Income before extraordinary
item and cumulative effect
of change in accounting
principle 19,329 10,155 61,212 30,383
Extraordinary item for
early extinguishment of
debt, net of taxes -- (553) (215) (553)
Cumulative effect on prior
years of change in
accounting for start-up
costs, net of taxes -- -- -- (320)
---------- ---------- ---------- ----------
Net Income $ 19,329 $ 9,602 $ 60,997 $ 29,510
========== ========== ========== ==========
Basic income per common
share:
Number of shares 40,990 32,357 40,127 29,636
Income before
extraordinary item and
cumulative effect of
change in accounting
principle $ 0.47 $ 0.32 $ 1.53 $ 1.03
Extraordinary item -- (0.02) (0.01) (0.02)
Cumulative effect of
change in accounting
principle -- -- -- (0.01)
---------- ---------- ---------- ----------
Net income per common
share $ 0.47 $ 0.30 $ 1.52 $ 1.00
========== ========== ========== ==========
Diluted income per common
share (includes addback of
$2,523 of interest on
convertible debt, net of
taxes, for three months
ending August 31, 2001):
Number of shares 48,872 33,982 41,828 30,771
Income before
extraordinary item and
cumulative effect of
change in accounting
principle $ 0.45 $ 0.30 $ 1.46 $ 0.99
Extraordinary item -- (0.02) -- (0.02)
Cumulative effect of
change in accounting
principle -- -- -- (0.01)
---------- ---------- ---------- ----------
Net income per common
share $ 0.45 $ 0.28 $ 1.46 $ 0.96
========== ========== ========== ==========
SALES AND BACKLOG BY INDUSTRY AND GEOGRAPHY
Sales by Industry
(Three Months Ended August 31, 2001)
Power Generation $ 242.0 million 63%
Process Industries $ 69.0 million 18%
Environmental & Infrastructure $ 38.6 million 10%
Other Industries $ 36.1 million 9%
------------------ ----
Total $ 385.7 million 100%
Sales by Geography
(Three Months Ended August 31, 2001)
United States $ 316.3 million 82%
Asia/Pacific Rim $ 28.9 million 7%
Europe $ 27.5 million 7%
South America $ 6.4 million 2%
Other $ 5.8 million 2%
Middle East $ 0.8 million 0%
------------------ ----
Total $ 385.7 million 100%
Sales by Industry
(Year Ended August 31, 2001)
Power Generation $ 915.7 million 59%
Process Industries $ 305.5 million 20%
Environmental & Infrastructure $ 186.2 million 12%
Other Industries $ 131.5 million 9%
----------------- ----
Total $ 1,538.9 million 100%
Sales by Geography
(Year Ended August 31, 2001)
United States $ 1,285.4 million 84%
Asia/Pacific Rim $ 117.1 million 7%
Europe $ 86.4 million 6%
Other $ 23.9 million 2%
South America $ 23.1 million 1%
Middle East $ 3.0 million 0%
----------------- ----
Total $ 1,538.9 million 100%
Backlog by Industry
(At August 31, 2001)
Power Generation $ 3,540.1 million 79%
Process Industries $ 666.4 million 15%
Environmental & Infrastructure $ 231.9 million 5%
Other Industries $ 58.8 million 1%
----------------- ----
Total $ 4,497.2 million 100%
Backlog by Geography
(At August 31, 2001)
Domestic $ 3,743.0 million 83%
International $ 754.2 million 17%
----------------- -----
Total $ 4,497.2 million 100%
--30--LS/na*
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| "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SHAW GROUP INC's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year. |