THE Todco

HOUSTON, May 4 /PRNewswire-FirstCall/ -- TODCO (NYSE:THE) (the "Company") today reported net income for the three months ended March 31, 2006, of $29.3 million, or $0.47 per diluted share, on revenues of $183.6 million compared to $8.1 million, or $0.13 per share, on revenues of $111.9 million for the same quarter of 2005. The first quarter of 2006 included $17.3 million of rig reactivation expense. For the three months ended March 31, 2006, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $67.8 million compared to $36.2 million for the same quarter of 2005. The improvement in first quarter 2006 results over the same quarter last year was principally caused by improved utilizations and dayrates which will be discussed during TODCO's publicly accessible first quarter conference call. The conference call will be at 8:00 a.m. (CDT), Thursday, May 4, 2006. The conference call can be heard live on the Company's web site at http://www.theoffshoredrillingcompany.com/ or by dialing (800) 374-0113 or (706) 634-5608. A replay of the conference call will be available for approximately 30 days after the call on the Company's web site or by dialing (800) 642-1687 or (706) 645-9291, reference code 7789716#. TODCO is a leading provider of contract oil and gas drilling services with the largest rig fleet in the shallow water of the U.S. Gulf of Mexico and along the U.S. Gulf Coast. TODCO's common stock is traded on the New York Stock Exchange under the symbol "THE". For more information about TODCO, please go to the company's web site at http://www.theoffshoredrillingcompany.com/ . TODCO AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except share data) March 31, December 31, 2006 2005 (Unaudited) ASSETS Cash and cash equivalents $200.4 $163.0 Accounts receivable Trade 119.5 107.4 Related party 9.9 9.9 Other 18.9 9.8 Supplies 4.6 4.9 Deferred income taxes 8.4 8.4 Other current assets 4.6 4.3 Total current assets 366.3 307.7 Property and equipment 923.1 919.7 Less accumulated depreciation 458.6 436.7 Property and equipment, net 464.5 483.0 Other assets 30.0 34.3 Total assets $860.8 $825.0 LIABILITIES AND STOCKHOLDERS' EQUITY Trade accounts payable $52.4 $42.4 Accrued income taxes 12.2 10.9 Accrued income taxes - related party 66.2 44.9 Debt due within one year 1.0 0.4 Debt due within one year - related party --- 2.9 Interest payable - related party --- 0.1 Other current liabilities 46.1 63.0 Total current liabilities 177.9 164.6 Long-term debt 16.6 16.6 Deferred income taxes 137.3 144.8 Other long-term liabilities 2.5 3.5 Total long-term liabilities 156.4 164.9 Commitments and contingencies Preferred Stock, $0.01 par value, 50,000,000 shares authorized and no shares issued and outstanding --- --- Common stock, Class A, $0.01 par value, 500,000,000 shares authorized, 61,663,462 shares and 61,521,990 shares issued and outstanding at March 31, 2006 and December 31, 2005, respectively 0.6 0.6 Common stock, Class B, $0.01 par value, 260,000,000 shares authorized and no shares issued and outstanding --- --- Additional paid-in capital 6,525.9 6,527.2 Retained deficit (6,000.0) (6,029.3) Unearned compensation --- (3.0) Total stockholders' equity 526.5 495.5 Total liabilities and stockholders' equity $860.8 $825.0 TODCO AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) Three Months Ended March 31, 2006 2005 Operating revenues $183.6 $111.9 Costs and expenses Operating and maintenance 107.3 68.9 Depreciation 22.3 24.0 General and administrative 9.7 8.4 Gain on disposal of assets, net (0.9) (1.1) 138.4 100.2 Operating income 45.2 11.7 Other income (expense), net Interest income 2.1 0.5 Interest expense (0.7) (1.0) Interest expense - related party --- (0.1) Other, net 0.2 0.5 1.6 (0.1) Income before income taxes and cumulative effect of change in accounting principle 46.8 11.6 Income tax expense 17.6 3.5 Income before cumulative effect of change in accounting principle 29.2 8.1 Cumulative effect of change in accounting principle, net of tax 0.1 --- Net income $29.3 $8.1 Net income per common share Basic: Income before cumulative effect of change in accounting principle $0.48 $0.13 Cumulative effect of change in accounting principle --- --- Net income per common share $0.48 $0.13 Diluted: Income before cumulative effect of change in accounting principle $0.47 $0.13 Cumulative effect of change in accounting principle --- --- Net income per common share $0.47 $0.13 Weighted average common shares outstanding: Basic 61.4 60.0 Diluted 62.0 60.9 TODCO AND SUBSIDIARIES SELECTED SEGMENT AND OPERATING DATA (In millions, except daily amounts) (Unaudited) Three Months Ended March 31, December 31, March 31, 2006 2005 2005 U.S. Gulf of Mexico Segment Operating days 944 983 1,159 Available days 1,890 1,947 2,070 Utilization 50% 51% 56% Average rig revenue per day $78,700 $60,800 $44,600 Operating revenues $74.3 $59.8 $51.7 Operating and maintenance expenses 44.0 33.4 25.7 Depreciation 10.7 12.4 12.7 Gain on disposal of assets, net --- (16.0) --- Operating income $19.6 $30.0 $13.3 U.S. Inland Barge Segment Operating days 1,454 1,373 1,202 Available days 2,430 2,484 2,624 Utilization 60% 55% 46% Average rig revenue per day $33,700 $30,800 $25,000 Operating revenues $49.0 $42.3 $30.0 Operating and maintenance expenses 25.2 25.8 22.3 Depreciation 5.5 6.0 5.7 Gain on disposal of assets, net (0.8) (0.9) (0.8) Operating income $19.1 $11.4 $2.8 Other International Segment Operating days 970 922 709 Available days 1,440 1,457 1,260 Utilization 67% 63% 56% Average rig revenue per day $45,700 $37,100 $28,400 Operating revenues $44.3 $34.2 $20.1 Operating and maintenance expenses 31.7 24.6 15.5 Depreciation 5.1 4.4 4.4 Loss on disposal of assets, net --- 0.1 0.3 Operating income (loss) $7.5 $5.1 $(0.1) Delta Towing Operating revenues $16.0 $14.1 $10.1 Operating and maintenance expenses 6.4 6.2 5.4 Depreciation 1.0 1.2 1.2 General and administrative expenses 1.3 1.1 1.2 Gain on disposal of assets, net (0.1) --- (0.6) Operating income $7.4 $5.6 $2.9 Total Company Rig operating days 3,368 3,278 3,070 Rig available days 5,760 5,888 5,954 Rig utilization 58% 56% 52% Operating revenues $183.6 $150.4 $111.9 Operating and maintenance expenses 107.3 90.0 68.9 Depreciation 22.3 24.0 24.0 General and administrative expenses 9.7 9.5 8.4 Gain on disposal of assets, net (0.9) (16.8) (1.1) Operating income $45.2 $43.7 $11.7 TODCO and Subsidiaries Non-GAAP Financial Measures and Reconciliations (In millions) (Unaudited) For the Three Months Ended March 31, December 31, March 31, 2006 2005 2005 Net income to EBITDA Net income $29.3 $21.2 $8.1 Adjustments: Depreciation 22.3 24.0 24.0 Income tax expense 17.6 23.0 3.5 Interest income (2.1) (1.3) (0.5) Interest expense 0.7 0.9 1.0 Interest expense - related party --- --- 0.1 EBITDA $67.8 $67.8 $36.2 DATASOURCE: TODCO CONTACT: Dale Wilhelm, Vice President & CFO of TODCO, +1-713-278-6014 Web site: http://www.theoffshoredrillingcompany.com/

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