TODCO Announces First Quarter 2007 Results
TODCO (NYSE: THE) reported net income for the three months ended March 31, 2007, of $60.7 million, or $1.05 per diluted share, on revenues of $241.9 million compared to net income of $29.3 million, or $0.47 per share, on revenues of $183.6 million for the same quarter of 2006.
The results of operations for the first quarter of 2007 included $1.1 million (or $0.01 per diluted share, after tax) of rig reactivation expense versus $17.3 million (or $0.17 per diluted share, after tax) of rig reactivation expense during the first quarter of 2006. In addition, the first quarter 2007 results included a $7.6 million insurance recovery from the May 2006 fire on THE 256 and a $4.1 million charge for repair costs related to THE 205 cargo vessel incident in December 2006. The Company expects to pursue recovery of the repair costs from the cargo vessel's owner. The first quarter of 2006 also included a $4.0 million settlement for damages and personal injury claims associated with the Rig 62 blowout and fire in June 2003. General and administrative expenses for the first quarter of 2007 included $1.9 million in professional fees related to the proposed merger with Hercules Offshore, Inc.
Additionally, the quarter ended March 31, 2007 included $5.5 million of gains on disposal of assets, which included $3.1 million in additional proceeds received related to the sale of THE 151, as a result of the purchaser's utilization of the rig for drilling operations compared to only $0.9 million in gains on sale of assets in the first quarter of 2006.
Excluding the insurance and settlement recoveries, THE 205 repair costs which may be recoverable later and the gains on sale of assets, TODCO's first quarter 2007 net income would have been $55.2 million or $0.95 per share on a fully diluted basis versus net income of $26.2 million or $0.42 per share on a fully diluted basis for the first quarter of 2006.
For the three months ended March 31, 2007, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $119.4 million compared to $67.8 million for the same quarter of 2006.
In light of our pending merger with Hercules Offshore, Inc., the Company will not hold an earnings conference call this quarter. Please see our quarterly report on Form 10-Q for the quarterly period ended March 31, 2007 filed with the Securities and Exchange Commission today for a discussion of operating results by segment.
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