EXHIBIT 99.1
(SHAW GROUP LOGO)
FOR IMMEDIATE RELEASE
CONTACT: Laurie LaChiusa
Vice President,
Investor Relations &
Corporate Communications
225.932-2500
THE SHAW GROUP ANNOUNCES FINANCIAL RESULTS FOR FOURTH QUARTER
AND FISCAL YEAR 2003
Baton Rouge, Louisiana, October 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)
<Table>
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%
</Table>
REVENUE BY GEOGRAPHY
(Fourth Quarter Ended August 31, 2003)
<Table>
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%
</Table>
REVENUE BY INDUSTRY
(Year Ended August 31, 2003)
<Table>
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%
</Table>
REVENUE BY GEOGRAPHY
(Year Ended August 31, 2003)
<Table>
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%
</Table>
BACKLOG BY INDUSTRY
(At August 31, 2003)
<Table>
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%
</Table>
BACKLOG BY GEOGRAPHY
(At August 31, 2003)
<Table>
Domestic $4,310.7 million 91%
International $ 440.6 million 9%
---------------- ----------------
Total $4,751.3 million 100%
</Table>
The Shaw Group Inc.
Consolidated Statements of Income
(In thousands, except per share amounts)
<Table>
<Caption>
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
=========== =========== =========== ===========
</Table>