The Shaw Group Inc.
NYSE : SGR

The Shaw Group Inc.

November 02, 2005 17:58 ET

Shaw Files Fiscal 2005 Financial Statements

BATON ROUGE, La.--(CCNMatthews - Nov 2, 2005) -

The Shaw Group Inc. (NYSE:SGR):

- Financial statements include restatement that reduces shareholders' equity by $10.4 million

- Restatement has no effect on previously reported 2005 net income or cash flows

The Shaw Group Inc. (NYSE:SGR) announced today that it has filed its 2005 Annual Report on Form 10-K for fiscal year ended August 31, 2005. The financial statements in the Form 10-K include a restatement which reduces shareholders' equity by $10.4 million, or approximately 1%. The restatement had no effect on Shaw's previously reported fiscal 2005 net income of $16.4 million or 2005 net cash flows from operations of $67.9 million. Shareholders' equity as of August 31, 2005, totaled $1.1 billion.

The restatement of shareholders' equity reflects a reduction of $10.4 million in 2001 net income. During 2001, Shaw implemented a new employment agreement with its Chief Executive Officer which included a non-compete clause. At that time, it was determined that the cost of the non-compete clause should be expensed in the future, beginning with the commencement of the non-compete period. The employment agreement, including the non-compete clause and the accounting treatment, was disclosed in the Company's 2001 Annual Report on Form 10-K and in each subsequent Annual Report. In connection with Shaw's fiscal 2005 audit, the Company's current auditors asked the Company to review the accounting treatment for the non-compete clause. As a result of this review, it was determined that the costs of the non-compete clause should have been expensed in 2001, and therefore net income for fiscal year 2001 and shareholders' equity have been restated. As a result of the restatement, there will be no expense in future periods for the costs of the non-compete clause.

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. Headquartered in Baton Rouge, Louisiana, with over $3 billion in annual revenues, Shaw employs approximately 20,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. The Company was recently named to Fortune magazine's annual list of "America's Most Admired Companies" for the second consecutive year. For further information, please visit Shaw'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 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 web site at www.shawgrp.com.

Contact Information

  • The Shaw Group Inc., Baton Rouge
    Chris D. Sammons, 225-932-2546