| The Shaw Group Announces Financial Results for Fourth Quarter and Fiscal Year 2004 |
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.
|
 |
| "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. |