THE Todco

HOUSTON, Aug. 3 /PRNewswire-FirstCall/ -- TODCO (NYSE:THE) (the "Company") today reported net income for the three months ended June 30, 2006, of $34.7 million, or $0.56 per diluted share, on revenues of $226.1 million compared to $11.0 million, or $0.18 per share, on revenues of $130.5 million for the same quarter of 2005. The second quarter of 2006 included $32.8 million (or $0.33 per diluted share, after tax) of rig reactivation expense versus only $2.8 (or $0.03 per diluted share, after tax) million of rig reactivation expenses during the second quarter of 2005. For the three months ended June 30, 2006, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $75.5 million compared to $40.7 million for the same quarter of 2005. The improvement in second 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 second quarter conference call. The conference call will be at 9:00 a.m. (CDT), Thursday, August 3, 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 2347624#. 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) June 30, December 31, 2006 2005 (Unaudited) ASSETS Cash and cash equivalents $216.8 $163.0 Accounts receivable Trade 156.6 107.4 Related party 9.9 9.9 Other 25.0 9.8 Supplies 4.6 4.9 Deferred income taxes 8.4 8.4 Other current assets 4.1 4.3 Total current assets 425.4 307.7 Property and equipment 943.4 919.7 Less accumulated depreciation 478.2 436.7 Property and equipment, net 465.2 483.0 Other assets 31.0 34.3 Total assets $921.6 $825.0 LIABILITIES AND STOCKHOLDERS' EQUITY Trade accounts payable $70.1 $42.4 Accrued income taxes 12.3 10.9 Accrued income taxes - related party 69.7 44.9 Debt due within one year 2.3 0.4 Debt due within one year - related party --- 2.9 Interest payable - related party --- 0.1 Other current liabilities 49.7 63.0 Total current liabilities 204.1 164.6 Long-term debt 16.5 16.6 Deferred income taxes 129.7 144.8 Other long-term liabilities 2.0 3.5 Total long-term liabilities 148.2 164.9 Commitments and contingencies Preferred Stock, $0.01 par value, 50,000,000 shares authorized and no shares issued and outstanding --- --- Common stock, $0.01 par value, 500,000,000 shares authorized, 61,940,522, shares and 61,521,990 shares issued and outstanding at June 30, 2006 and December 31, 2005, respectively 0.6 0.6 Common stock, Class B, $0.01 par value, no shares authorized at June 30, 2006, and 260,000,000 shares authorized and no shares issued and outstanding at December 31, 2005 --- --- Additional paid-in capital 6,534.0 6,527.2 Retained deficit (5,965.3) (6,029.3) Unearned compensation --- (3.0) Total stockholders' equity 569.3 495.5 Total liabilities and stockholders' equity $921.6 $825.0 TODCO AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2006 2005 2006 2005 Operating revenues $226.1 $130.5 $409.7 $242.4 Costs and expenses Operating and maintenance 140.6 86.5 247.9 155.4 Depreciation 21.9 23.9 44.2 47.9 General and administrative 10.7 9.9 20.4 18.3 Impairment loss on long-lived assets 0.4 --- 0.4 --- Gain on disposal of assets, net (1.4) (5.6) (2.3) (6.7) 172.2 114.7 310.6 214.9 Operating income (loss) 53.9 15.8 99.1 27.5 Other income (expense), net Interest income 2.7 0.8 4.8 1.3 Interest expense (0.7) (0.9) (1.4) (1.9) Interest expense - related party --- --- --- (0.1) Other, net (0.3) 1.0 (0.1) 1.5 1.7 0.9 3.3 0.8 Income before income taxes and cumulative effect of change in accounting principle 55.6 16.7 102.4 28.3 Income tax expense 20.9 5.7 38.5 9.2 Income before cumulative effect of change in accounting principle 34.7 11.0 63.9 19.1 Cumulative effect of change in accounting principle, net of tax --- --- 0.1 --- Net income $34.7 $11.0 $64.0 $19.1 Net income per common share Basic: Income before cumulative effect of change in accounting principle $0.56 $0.18 $1.04 $0.32 Cumulative effect of change in accounting principle --- --- --- --- Net income per common share $0.56 $0.18 $1.04 $0.32 Diluted: Income before cumulative effect of change in accounting principle $0.56 $0.18 $1.03 $0.31 Cumulative effect of change in accounting principle --- --- --- --- Net income per common share $0.56 $0.18 $1.03 $0.31 Weighted average common shares outstanding: Basic 61.6 60.3 61.5 60.2 Diluted 62.1 61.2 62.0 61.0 TODCO AND SUBSIDIARIES SELECTED SEGMENT AND OPERATING DATA (In millions, except daily amounts) (Unaudited) Three Months Ended June 30, March 31, June 30, 2006 2006 2005 U.S. Gulf of Mexico Segment Operating days 1,013 944 1,146 Available days 1,911 1,890 2,063 Utilization 53% 50% 56% Average rig revenue per day $104,100 $78,700 $51,000 Operating revenues $105.5 $74.3 $58.5 Operating and maintenance expenses 65.4 44.0 32.1 Depreciation 10.5 10.7 12.5 Gain on disposal of assets, net --- --- (3.7) Operating income $29.6 $19.6 $17.6 U.S. Inland Barge Segment Operating days 1,509 1,454 1,256 Available days 2,457 2,430 2,457 Utilization 61% 60% 51% Average rig revenue per day $37,200 $33,700 $27,800 Operating revenues $56.2 $49.0 $34.9 Operating and maintenance expenses 33.4 25.2 24.7 Depreciation 5.2 5.5 5.9 Gain on disposal of assets, net (1.2) (0.8) (1.8) Operating income $18.8 $19.1 $6.1 International and Other Segment Operating days 1,030 970 719 Available days 1,547 1,440 1,304 Utilization 67% 67% 55% Average rig revenue per day $43,200 $45,700 $33,900 Operating revenues $44.5 $44.3 $24.4 Operating and maintenance expenses 33.4 31.7 22.9 Depreciation 5.2 5.1 4.3 Impairment loss on long-level assets 0.4 --- --- Loss on disposal of assets, net --- --- 0.2 Operating income (loss) $5.5 $7.5 $(3.0) Delta Towing Operating revenues $19.9 $16.0 $12.7 Operating and maintenance expenses 8.4 6.4 6.8 Depreciation 1.0 1.0 1.2 General and administrative expenses 1.1 1.3 1.0 Gain on disposal of assets, net (0.2) (0.1) (0.3) Operating income $9.6 $7.4 $4.0 Total Company Rig operating days 3,552 3,368 3,121 Rig available days 5,915 5,760 5,824 Rig utilization 60% 58% 54% Operating revenues $226.1 $183.6 $130.5 Operating and maintenance expenses 140.6 107.3 86.5 Depreciation 21.9 22.3 23.9 General and administrative expenses 10.7 9.7 9.9 Impairment loss on long-level assets 0.4 --- --- Gain on disposal of assets, net (1.4) (0.9) (5.6) Operating income $53.9 $45.2 $15.8 TODCO and Subsidiaries Non-GAAP Financial Measures and Reconciliations (In millions) (Unaudited) For the Three Months Ended June 30, March 31, June 30, 2006 2006 2005 Net income to EBITDA Net income $34.7 $29.3 $11.0 Adjustments: Depreciation 21.9 22.3 23.9 Income tax expense 20.9 17.6 5.7 Interest income (2.7) (2.1) (0.8) Interest expense 0.7 0.7 0.9 EBITDA $75.5 $67.8 $40.7 DATASOURCE: TODCO CONTACT: Dale Wilhelm, Vice President & CFO of TODCO, +1-713-278-6014 Web site: http://www.theoffshoredrillingcompany.com/

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