The Shaw Group Inc. (NYSE: SGR) today announced financial results for its first
quarter fiscal 2005 ended November 30, 2004. Net income from
continuing operations for the first quarter of fiscal 2005 was $10.8
million, or $0.17 per diluted share. We also reported a loss from
discontinued operations of $0.8 million, or $0.01 per share for the
period. In comparison, for the three months ended November 30, 2003,
we reported a net loss from continuing operations of $49.6 million, or
$1.07 per diluted share, and discontinued operations of $0.1 million,
less than $0.01 per diluted share. For the first quarter of fiscal
2005, revenues were $828.1 million compared to $646.9 million in the
prior year’s first quarter.
Shaw’s backlog totaled $5.4 billion at November 30, 2004, with
approximately $2.4 billion, or 44%, of the backlog is expected to be
converted during the next 12 months. Approximately $2.6 billion, or
49%, of the backlog is in the environmental and infrastructure sector,
primarily contracts with Federal government agencies and commercial
entities; approximately $2.0 billion, or 38%, of the backlog is
comprised of projects for fossil-fuel, nuclear and other power
generating plants; and approximately $0.7 billion, or 13%, is projects
for process industry facilities.
J.M Bernhard, Jr., Chairman and Chief Executive Officer of The
Shaw Group Inc., said, “We are pleased with our first quarter net
income from continuing operations of $0.17 per diluted share and
positive net cash from operations of $10.0 million. This quarter marks
a sharp improvement from our last year’s first quarter results, both
in revenues and net income and continues the positive trend we started
three quarters ago. We are especially excited by the improving markets
we see in the energy and process industries including the increase in
our maintenance work. Our environmental and infrastructure segment has
remained strong and pursued market opportunities aggressively,
especially in rapid response services.”
Mr. Bernhard added, “We are well positioned to continue to expand
and diversify our business. We have recently replaced our Engineering,
Construction and Maintenance Division with two new divisional
segments: the Energy and Chemicals Division and a separate Maintenance
Division. We believe these organizational refinements will not only
improve our overall operational capabilities, but also will enhance
our company-wide sales and marketing efforts.”
The Shaw Group Inc. is a leading global provider of technology,
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 18,000 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
(First Quarter Ended November 30, 2004)
Environmental & Infrastructure $ 331.3 million 40%
Power Generation 340.1 million 41
Process Industries 141.9 million 17
Other Industries 14.8 million 2
----------------- -----
Total $ 828.1 million 100%
Revenue by Geography
(First Quarter Ended November 30, 2004)
United States $ 699.1 million 85%
Asia/Pacific Rim 60.2 million 7
Middle East 24.7 million 3
Canada 21.8 million 3
Europe 12.1 million 1
South America & Mexico 7.5 million 1
Other 2.7 million -
----------------- -----
Total $ 828.1 million 100%
Backlog by Industry
(As of November 30, 2004)
Environmental & Infrastructure $2,625.8 million 49%
Power Generation
Nuclear Power 1,049.2 million 20
Fossil Fuel 882.4 million 16
Other Power 117.7 million 2
Process Industries 681.0 million 12
Other Industries 35.4 million 1
----------------- -----
Total $5,391.5 million 100%
Backlog by Geography
(As of November 30, 2004)
Domestic $4,562.8 million 85%
International 828.7 million 15
----------------- -----
Total $5,391.5 million 100%
THE SHAW GROUP INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended
November 30,
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2004 2003
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Revenues $828,137 $646,940
Cost of revenues 751,749 635,329
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Gross profit 76,388 11,611
General and administrative expenses 48,605 72,287
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Operating income (loss) 27,783 (60,676)
Interest expense (9,739) (10,531)
Interest income 1,043 344
Loss on LYONs repurchase -- (1,147)
Foreign currency transaction gains (losses), net (1,181) (1,666)
Other income (expense), net (1,548) (920)
------------------
(11,425) (13,920)
------------------
Income (loss) before income taxes, minority
interest, earnings from unconsolidated entities and
loss from discontinued operations 16,358 (74,596)
Provision (benefit) for income taxes 5,730 (24,586)
------------------
Income (loss) before minority interest, earnings
from unconsolidated entities and loss from
discontinued operations 10,628 (50,010)
Minority interest, net of taxes (144) --
Earnings from unconsolidated entities, net of taxes 296 559
------------------
Income (loss) from continuing operations 10,780 (49,451)
Loss from discontinued operations, net of taxes (767) (141)
------------------
Net income (loss) $10,013 $(49,592)
==================
Net income (loss) per common share:
Basic:
Income (loss) from continuing operations $0.17 $(1.07)
Loss from discontinued operations, net of
taxes (0.01) --
------------------
Net income (loss) $0.16 $(1.07)
==================
Diluted:
Income (loss) from continuing operations $0.17 $(1.07)
Loss from discontinued operations, net of
taxes (0.01) --
------------------
Net income (loss) $0.16 $(1.07)
==================
SOURCE: The Shaw Group Inc.
CONTACT:
The Shaw Group Inc., Baton Rouge
Chris D. Sammons
225-932-2546