HOUSTON, Aug. 4 /PRNewswire-FirstCall/ -- TODCO (NYSE: THE) (the
"Company") announced today that its Board of Directors has declared a special
cash dividend of $1.00 per share of common stock payable on August 25, 2005 to
stockholders of record on August 15, 2005.
Also today, TODCO reported net income for the three months ended June 30,
2005, of $11.0 million, or $0.18 per diluted share, on revenues of $130.5
million compared with a net loss of $7.4 million, or $0.12 per share, on
revenues of $80.8 million for the same quarter of 2004. For the three months
ended June 30, 2005, earnings before interest, taxes, depreciation and
amortization ("EBITDA") was $40.7 million compared to $14.5 million for the
same quarter of 2004.
Jan Rask, President and Chief Executive Officer of TODCO, said, "With our
growing excess cash position, we have continued to evaluate both internal and
external growth opportunities. To date, the external opportunities do not
compare favorably with the Company's internal rig reactivation opportunities.
As such, we have concluded that a special dividend is warranted at this time.
After this dividend, we continue to have the financial flexibility to pursue
growth opportunities and/or additional special dividends."
The improvement in second quarter 2005 results over the same quarter last
year was principally caused by improved utilizations and dayrates in the
Company's domestic operations, 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 4, 2005. The conference call can be heard
live on the Company's web site at http://www.theoffshoredrillingcompany.com or
by dialing (719) 457-2728 or (800) 475-3716. 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 (719) 457-0820, reference code 6450756.
Statements in this press release regarding future market conditions,
possible future returns on new rig construction and other investments and
future special dividends, as well as any other statements that are not
historical facts in this press release are forward-looking statements within
the meaning of U.S. securities laws and involve certain risks, uncertainties
and assumptions. These include, but are not limited to, general market
conditions, estimated contract revenues, estimated reactivation costs,
estimated reactivation times, contract performance and other risk and
uncertainties described in TODCO's annual report on Form 10-K filed with the
Securities and Exchange Commission on March 15, 2005. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those indicated.
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,
2005 2004
(Unaudited)
ASSETS
Cash and cash equivalents $ 106.6 $ 65.1
Accounts receivable
Trade 94.1 67.2
Related party 10.1 11.5
Other 5.6 3.8
Supplies 4.0 4.3
Deferred income taxes 3.5 3.5
Other current assets 2.4 2.5
Total current assets 226.3 157.9
Property and equipment 918.6 920.8
Less accumulated depreciation 395.8 353.6
Property and equipment, net 522.8 567.2
Other assets 31.6 36.3
Total assets $ 780.7 $ 761.4
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $ 26.4 $ 20.6
Accrued income taxes 11.3 10.6
Accrued income taxes - related party 14.5 8.4
Debt due within one year 2.1 8.2
Debt due within one year - related party 3.0 3.0
Interest payable - related party 0.1 0.2
Other current liabilities 46.0 45.5
Current liabilities related
to discontinued operations 0.2 0.2
Total current liabilities 103.6 96.7
Long-term debt 17.7 17.2
Deferred income taxes 155.4 163.6
Other long-term liabilities 4.4 3.3
Total long-term liabilities 177.5 184.1
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,
60,752,667 shares and 60,300,746 shares
issued and outstanding at June 30, 2005
and December 31, 2004, 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 6,511.5 6,510.0
Retained deficit (6,008.4) (6,027.5)
Unearned compensation (4.1) (2.5)
Total stockholders' equity 499.6 480.6
Total liabilities and stockholders'
equity $ 780.7 $ 761.4
TODCO AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Operating revenues $130.5 $ 80.8 $242.4 $154.6
Costs and expenses
Operating and maintenance 86.5 61.1 155.4 128.0
Depreciation 23.9 24.0 47.9 48.2
General and administrative 9.9 7.2 18.3 19.6
Gain on disposal of
assets, net (5.6) (1.9) (6.7) (4.6)
114.7 90.4 214.9 191.2
Operating income (loss) 15.8 (9.6) 27.5 (36.6)
Other income (expense), net
Interest income 0.8 --- 1.3 0.1
Interest expense (0.9) (1.0) (1.9) (2.0)
Interest expense
- related party --- --- (0.1) (3.2)
Loss on retirement of debt --- --- --- (1.9)
Other, net 1.0 0.1 1.5 0.6
0.9 (0.9) 0.8 (6.4)
Income (loss) before
income taxes 16.7 (10.5) 28.3 (43.0)
Income tax expense (benefit) 5.7 (3.1) 9.2 (13.3)
Net income (loss) $ 11.0 $ (7.4) $ 19.1 $(29.7)
Net income (loss)
per common share
Basic $ 0.18 $(0.12) $ 0.32 $(0.58)
Diluted $ 0.18 $(0.12) $ 0.31 $(0.58)
Weighted average common
shares outstanding:
Basic 60.3 60.0 60.2 51.1
Diluted 61.2 60.0 61.0 51.1
TODCO AND SUBSIDIARIES
Selected Segment and Operating Data
(In millions, except daily amounts)
(Unaudited)
Three Months Ended
June 30, March 31, June 30,
2005 2005 2004
U.S. Gulf of Mexico Segment
Operating days 1,146 1,159 990
Available days 2,063 2,070 2,002
Utilization 56% 56% 50%
Average rig revenue per day $51,000 $44,600 $30,700
Operating revenues $ 58.5 $ 51.7 $ 30.4
Operating and maintenance expenses 32.1 25.7 21.4
Depreciation 12.5 12.7 12.2
Gain on disposal of assets, net (3.7) --- ---
Operating income (loss) $ 17.6 $ 13.3 $ (3.2)
U.S. Inland Barge Segment
Operating days 1,256 1,202 1,147
Available days 2,457 2,624 2,730
Utilization 51% 46% 42%
Average rig revenue per day $27,800 $25,000 $22,500
Operating revenues $ 34.9 $ 30.0 $ 25.8
Operating and maintenance expenses 24.7 22.3 21.0
Depreciation 5.9 5.7 5.6
Gain on disposal of assets, net (1.8) (0.8) (0.8)
Operating income $ 6.1 $ 2.8 $ ---
Other International Segment
Operating days 719 709 475
Available days 1,304 1,260 1,638
Utilization 55% 56% 29%
Average rig revenue per day $33,900 $28,400 $37,500
Operating revenues $ 24.4 $ 20.1 $ 17.8
Operating and maintenance
expenses 22.9 15.5 14.2
Depreciation 4.3 4.4 4.9
(Gain) loss on disposal of
assets, net 0.2 0.3 (0.3)
Operating loss $ (3.0) $ (0.1) $ (1.0)
Delta Towing
Operating revenues $ 12.7 $ 10.1 $ 6.8
Operating and maintenance expenses 6.8 5.4 4.5
Depreciation 1.2 1.2 1.3
General and administrative expenses 1.0 1.2 1.0
Gain on disposal of assets, net (0.3) (0.6) (0.8)
Operating income $ 4.0 $ 2.9 $ 0.8
Total Company
Rig operating days 3,121 3,070 2,612
Rig available days 5,824 5,954 6,370
Rig utilization 54% 52% 41%
Operating revenues $ 130.5 $ 111.9 $ 80.8
Operating and maintenance expenses 86.5 68.9 61.1
Depreciation 23.9 24.0 24.0
General and administrative expenses 9.9 8.4 7.2
Gain on disposal of assets, net (5.6) (1.1) (1.9)
Operating income (loss) $ 15.8 $ 11.7 $ (9.6)
TODCO AND SUBSIDIARIES
Non-GAAP Financial Measures and Reconciliations
(In millions)
(Unaudited)
For the Three Months Ended
June 30, March 31, June 30,
2005 2005 2004
Net income (loss) to EBITDA
Net income (loss) $ 11.0 $ 8.1 $(7.4)
Adjustments:
Depreciation 23.9 24.0 24.0
Income tax expense (benefit) 5.7 3.5 (3.1)
Interest income (0.8) (0.5) ---
Interest expense 0.9 1.0 1.0
Interest expense - related party --- $ 0.1 ---
EBITDA $ 40.7 $ 36.2 $14.5
SOURCE TODCO
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Related links:
http://www.theoffshoredrillingcompany.com
CONTACT:
T. Scott O'Keefe, Sr. Vice President & CFO of
TODCO, +1-713-278-6010
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