WGII Washington Grp. International (MM)

BOISE, Idaho, Nov. 21 /PRNewswire-FirstCall/ -- Washington Group International (NASDAQ:WGII) today announced that its Board of Directors has authorized the company to purchase an additional $100 million in Washington Group International stock in open market or negotiated transactions, bringing the total buyback authorization to $275 million. The company previously purchased $175 million of Washington Group stock and warrants under this authorization. "Our financial condition remains very strong, providing us the capacity to invest in growth opportunities while also returning cash to our shareholders through stock buybacks," said Stephen G. Hanks, president and chief executive officer. "The buyback is consistent with our capital allocation strategy for achieving superior long-term shareholder value." The company believes its tax-advantaged cash flow together with its cash on hand will provide the company adequate liquidity to fund working capital, capital expenditures and niche acquisitions, while maintaining a strong credit profile. As of its third quarter ending September 29, 2006, Washington Group International had $251.9 million cash on hand and no debt outstanding. Contributing to the company's strong cash flow are the company's favorable tax attributes including net operating loss carryovers (NOLs) and goodwill amortization. The cash flow benefit in 2006 from favorable tax attributes is expected to be approximately $40 million. Between 2007 and 2015, cash flow is expected to benefit by an additional $250 million as the company continues to utilize NOLs and goodwill amortization. Washington Group International (NASDAQ:WGII) provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. Headquartered in Boise, Idaho, with more than $3 billion in annual revenue, the company has approximately 24,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation, and water resources. For more information, visit http://www.wgint.com/. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Each forward-looking statement, including, without limitation, any financial guidance, speaks only as of the date on which it is made, and Washington Group International undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. The forward-looking statements are necessarily based on assumptions and estimates of management and are inherently subject to various risks and uncertainties. Actual results may vary materially as a result of changes or developments in social, economic, business, market, legal, and regulatory circumstances or conditions, both domestically and globally, as well as due to actions by customers, clients, suppliers, business partners, or government bodies. Performance is subject to numerous factors, including demand for new power generation and for modification of existing power facilities, public sector funding, demand for extractive resources, capital spending plans of customers, and spending levels and priorities of the U.S., state and other governments. Results may also vary as a result of difficulties or delays experienced in the execution of contracts or implementation of strategic initiatives. For additional risks and uncertainties impacting the forward-looking statements contained in this news release, please see "Note Regarding Forward-Looking Information" and "Item 1A. Risk Factors" in Washington Group's annual report on Form 10-K for fiscal year 2005. DATASOURCE: Washington Group International CONTACT: Media, Laurie Spiegelberg, +1-208-386-5532, or Investors, Earl Ward, +1-208-386-5698, both of Washington Group International Web site: http://www.wgint.com/

Copyright