Shaw files 2005 Annual Report on Form 10-K for fiscal year
04 Nov '05
2 min read
Engineering, construction, fabrication, environmental and industrial services organization, The Shaw Group Inc announced 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 percent.
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 forfiscal 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.
Louisiana based The Shaw Group Inc is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services for the energy, chemicals, environmental, infrastructure and emergency response markets.
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