EXHIBIT 2
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Expressed in thousands of U.S. Dollars)
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 8,666 | $ | 20,168 | $ | 858 | $ | 3,252 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 17,345 | 15,891 | 6,397 | 5,362 | ||||||||||||
Amortization of deferred dry-docking costs | 3,091 | 3,747 | 911 | 1,424 | ||||||||||||
Amortization of loan fees | 169 | 134 | 29 | (369 | ) | |||||||||||
Amortization of deferred income | (628 | ) | (630 | ) | (209 | ) | (211 | ) | ||||||||
Interest expense, net of capitalized interest | 8,664 | 12,127 | 4,275 | 3,213 | ||||||||||||
Fair value adjustment of interest rate financial instruments | 3,139 | 3,770 | 765 | 3,770 | ||||||||||||
Payments for dry-docking | (6,151 | ) | (2,741 | ) | (4,264 | ) | (174 | ) | ||||||||
(Increase) Decrease in: | ||||||||||||||||
Accounts receivables | (1,980 | ) | (5,157 | ) | 1,918 | (3,526 | ) | |||||||||
Inventories | (1,414 | ) | (250 | ) | (890 | ) | (333 | ) | ||||||||
Prepayments and other | (324 | ) | (154 | ) | (612 | ) | (69 | ) | ||||||||
Increase (Decrease) in: | ||||||||||||||||
Accounts payable | 2,514 | (220 | ) | 3,321 | 1,590 | |||||||||||
Accrued liabilities | (804 | ) | 984 | (1,067 | ) | 109 | ||||||||||
Unearned revenue | (150 | ) | 707 | (1,994 | ) | (989 | ) | |||||||||
Stock options granted | — | 258 | — | 34 | ||||||||||||
Interest paid, net of capitalized interest | (9,356 | ) | (16,168 | ) | (2,917 | ) | (3,018 | ) | ||||||||
Net Cash from Operating Activities | 22,781 | 32,466 | 6,521 | 10,065 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Advances for vessels under construction | (35,611 | ) | (18,139 | ) | 10,942 | (1,384 | ) | |||||||||
Vessel acquisitions and/or improvements | (136,378 | ) | (169 | ) | (48,622 | ) | 2 | |||||||||
Restricted cash for performance guarantee | 815 | — | — | — | ||||||||||||
Net Cash from (used in) Investing Activities | (171,174 | ) | (18,308 | ) | (37,680 | ) | (1,382 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term debt | 94,818 | — | 32,118 | — | ||||||||||||
Financing costs | (295 | ) | — | (140 | ) | — | ||||||||||
Payments and repayment of long-term debt | (43,002 | ) | (11,477 | ) | (1,526 | ) | (1,427 | ) | ||||||||
Proceeds from public offering, net | 100,389 | — | — | — | ||||||||||||
Repurchase and cancellation of common stock | (1,366 | ) | (378 | ) | (1,366 | ) | — | |||||||||
Net Cash from (used in) Financing Activities | 150,544 | (11,855 | ) | 29,086 | (1,427 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 2,150 | 2,303 | (2,074 | ) | 7,256 | |||||||||||
Cash and cash equivalents at beginning of period | 33,274 | 29,770 | 37,498 | 24,817 | ||||||||||||
Cash and cash equivalents at end of period | $ | 35,424 | $ | 32,073 | $ | 35,424 | $ | 32,073 | ||||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2001 AND NINE-MONTHS ENDED SEPTEMBER 30, 2002
(Expressed in thousands of U.S. Dollars—except per share data)
Comprehensive Income | Common Stock | Additional Paid-in Capital | Retained Earnings | Total | ||||||||||||||
BALANCE, January 1, 2001 | $ | 9,659 | $ | 108,693 | $ | 28,220 | $ | 146,572 | ||||||||||
Net income | $ | 24,616 | — | — | 24,616 | 24,616 | ||||||||||||
Issuance of Stock Options | — | — | 258 | — | 258 | |||||||||||||
Repurchase and cancellation of | ||||||||||||||||||
common stock (30,000 shares) | — | (30 | ) | (348 | ) | — | (378 | ) | ||||||||||
Comprehensive income | 24,616 | |||||||||||||||||
BALANCE, December 31, 2001 | 9,629 | 108,603 | 52,836 | 171,068 | ||||||||||||||
Net income | 8,666 | — | — | 8,666 | 8,666 | |||||||||||||
Issuance of common stock | — | 7,350 | 102,900 | — | 110,250 | |||||||||||||
Expenses related to the issuance | — | |||||||||||||||||
of common stock | — | — | (9,861 | ) | — | (9,861 | ) | |||||||||||
Repurchase and cancellation of | ||||||||||||||||||
common stock (121,000 shares) | (121 | ) | (1,245 | ) | — | (1,366 | ) | |||||||||||
Comprehensive income | $ | 8,666 | ||||||||||||||||
BALANCE, September 30, 2002 | $ | 16,858 | $ | 200,397 | $ | 61,502 | $ | 278,757 | ||||||||||
2
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2002 and DECEMBER 31, 2001
(Expressed in thousands of U.S. Dollars—except per share data)
September 30, | December 31, | ||||||
ASSETS | 2002 | 2001 | |||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 35,424 | 33,274 | ||||
Receivables- | |||||||
Trade accounts receivable | 3,898 | 4,997 | |||||
Insurance claims | 4,471 | 2,624 | |||||
Advances and other | 5,542 | 4,310 | |||||
13,911 | 11,931 | ||||||
Inventories | 2,842 | 1,428 | |||||
Prepayments and other | 1,760 | 1,436 | |||||
Total current assets | 53,937 | 48,069 | |||||
CASH, RESTRICTED | 7,000 | 7,815 | |||||
FIXED ASSETS: | |||||||
Advances for vessels under construction | 68,619 | 33,008 | |||||
Vessels | 589,982 | 453,604 | |||||
Accumulated depreciation | (125,486 | ) | (108,141 | ) | |||
Net Book Value | 464,496 | 345,463 | |||||
Total fixed assets | 533,115 | 378,471 | |||||
DEFERRED CHARGES, net | 13,092 | 9,906 | |||||
Total assets | $ | 607,144 | 444,261 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Current portion of long-term debt | $ | 7,725 | 21,972 | ||||
Accounts payable- | |||||||
Trade | 11,650 | 8,883 | |||||
Other | 867 | 838 | |||||
12,517 | 10,003 | ||||||
Accrued liabilities | 2,997 | 3,801 | |||||
Accrued bank interest | 2,211 | 2,903 | |||||
Financial instruments, fair value | 6,526 | 3,387 | |||||
Unearned revenue | 1,649 | 1,799 | |||||
Deferred income, current portion | 838 | 838 | |||||
Total current liabilities | 34,463 | 44,703 | |||||
LONG-TERM DEBT, net of current portion | 288,549 | 222,487 | |||||
DEFERRED INCOME, net of current portion | 5,375 | 6,003 | |||||
CONTINGENCIES | — | — | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock, $ 1.00 par value; 40,000,000 authorized at September 30, 2002 and December 31, 2001, respectively;16,857,857 and 9,628,857 issued and outstanding at September 30, 2002 and December 31, 2001, respectively | 16,858 | 9,629 | |||||
Additional paid-in capital | 200,397 | 108,603 | |||||
Retained earnings | 61,502 | 52,836 | |||||
Total stockholders’ equity | 278,757 | 171,068 | |||||
Total liabilities and stockholders’ equity | $ | 607,144 | 444,261 | ||||
3
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Expressed in thousands of U.S. Dollars—except per share data)
Three months ended September 30, | ||||||||
2002 | 2001 | |||||||
REVENUES: | ||||||||
Revenue from vessels | $ | 29,771 | $ | 32,137 | ||||
Commissions | (1,373 | ) | (1,678 | ) | ||||
Revenue from vessels, net | 28,398 | 30,459 | ||||||
EXPENSES: | ||||||||
Voyage expenses | 7,565 | 6,202 | ||||||
Vessel operating expenses | 7,247 | 7,310 | ||||||
Depreciation | 6,397 | 5,362 | ||||||
Amortization of deferred charges | 911 | 1,424 | ||||||
Management fees | 831 | 735 | ||||||
Stock option compensation expense | — | 34 | ||||||
General and administrative expenses | 282 | 345 | ||||||
Operating income | 5,165 | 9,047 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (4,436 | ) | (6,097 | ) | ||||
Interest Income | 183 | 276 | ||||||
Foreign currency gains (losses) | (54 | ) | 26 | |||||
Total other income (expenses), net | (4,307 | ) | (5,795 | ) | ||||
Net Income | $ | 858 | $ | 3,252 | ||||
Earnings per share, basic | $ | 0.05 | $ | 0.34 | ||||
Earnings per share, diluted | $ | 0.05 | $ | 0.33 | ||||
Weighted average number of shares, basic | 16,947,442 | 9,628,857 | ||||||
Weighted average number of shares, diluted | 16,971,139 | 9,716,907 | ||||||
4
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Expressed in thousands of U.S. Dollars—except per share data)
Nine months ended September 30, | ||||||||
2002 | 2001 | |||||||
REVENUES: | ||||||||
Revenue from vessels | $ | 86,512 | $ | 94,750 | ||||
Commissions | (3,939 | ) | (4,795 | ) | ||||
Revenue from vessels, net | 82,573 | 89,955 | ||||||
EXPENSES: | ||||||||
Voyage expenses | 20,975 | 15,014 | ||||||
Vessel operating expenses | 20,377 | 19,584 | ||||||
Depreciation | 17,345 | 15,891 | ||||||
Amortization of deferred charges | 3,091 | 3,747 | ||||||
Management fees | 2,324 | 2,349 | ||||||
Stock option compensation expense | — | 258 | ||||||
General and administrative expenses | 697 | 789 | ||||||
Operating income | 17,764 | 32,323 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (9,708 | ) | (13,143 | ) | ||||
Interest Income | 659 | 986 | ||||||
Foreign currency gains (losses) | (49 | ) | 2 | |||||
Total other income (expenses), net | (9,098 | ) | (12,155 | ) | ||||
Net Income | $ | 8,666 | $ | 20,168 | ||||
Earnings per share, basic | $ | 0.57 | $ | 2.09 | ||||
Earnings per share, diluted | $ | 0.57 | $ | 2.07 | ||||
Weighted average number of shares, basic | 15,245,193 | 9,636,165 | ||||||
Weighted average number of shares, diluted | 15,268,891 | 9,742,188 | ||||||
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