Exhibit 99.1
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Expressed in thousands of U.S. Dollars—except per share data)
Three months ended September 30, | ||||||||
2003 | 2002 | |||||||
REVENUES: | ||||||||
Revenue from vessels | $ | 55,105 | $ | 30,814 | ||||
Commissions | (2,652 | ) | (1,556 | ) | ||||
Revenue from vessels, net | 52,453 | 29,258 | ||||||
EXPENSES: | ||||||||
Voyage expenses | 17,036 | 7,841 | ||||||
Vessel operating expenses | 12,718 | 8,033 | ||||||
Depreciation | 8,771 | 6,397 | ||||||
Amortization of deferred charges | 1,816 | 911 | ||||||
Management fees | 1,155 | 831 | ||||||
General and administrative expenses | 468 | 282 | ||||||
Operating income | 10,488 | 4,963 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (2,557 | ) | (4,436 | ) | ||||
Interest Income | 90 | 183 | ||||||
Foreign currency gains (losses) | (52 | ) | (54 | ) | ||||
Share of profits of joint-venture, net | (43 | ) | 0 | |||||
Other, net | 106 | 0 | ||||||
Total other income (expenses), net | (2,456 | ) | (4,307 | ) | ||||
Net Income | $ | 8,032 | $ | 656 | ||||
Earnings per share, basic | $ | 0.47 | $ | 0.04 | ||||
Earnings per share, diluted | $ | 0.47 | $ | 0.04 | ||||
Weighted average number of shares, basic | 17,179,420 | 16,947,442 | ||||||
Weighted average number of shares, diluted | 17,205,637 | 16,971,139 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Expressed in thousands of U.S. Dollars—except per share data)
Nine months ended September 30, | ||||||||
2003 | 2002 | |||||||
REVENUES: | ||||||||
Revenue from vessels | $ | 177,833 | $ | 88,860 | ||||
Commissions | (8,179 | ) | (4,462 | ) | ||||
Revenue from vessels, net | 169,654 | 84,398 | ||||||
EXPENSES: | ||||||||
Voyage expenses | 46,792 | 21,416 | ||||||
Vessel operating expenses | 34,645 | 22,467 | ||||||
Depreciation | 24,326 | 17,344 | ||||||
Amortization of deferred charges | 5,849 | 3,091 | ||||||
Management fees | 3,255 | 2,324 | ||||||
General and administrative expenses | 1,302 | 698 | ||||||
Operating income | 53,484 | 17,058 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (8,835 | ) | (9,708 | ) | ||||
Interest Income | 299 | 659 | ||||||
Foreign currency gains (losses) | (258 | ) | (49 | ) | ||||
Share of profits of joint-venture, net | 621 | 0 | ||||||
Other, net | (504 | ) | 0 | |||||
Total other income (expenses), net | (8,678 | ) | (9,098 | ) | ||||
Net Income | $ | 44,806 | $ | 7,960 | ||||
Earnings per share, basic | $ | 2.61 | $ | 0.52 | ||||
Earnings per share, diluted | $ | 2.60 | $ | 0.52 | ||||
Weighted average number of shares, basic | 17,148,401 | 15,245,193 | ||||||
Weighted average number of shares, diluted | 17,205,598 | 15,268,891 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
SEPTEMBER 30, 2003 and DECEMBER 31, 2002
(Expressed in thousands of U.S. Dollars—except per share data)
ASSETS | September 30, 2003 | December 31, 2002 | ||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 39,436 | $ | 39,674 | ||||
Cash, restricted | 3,800 | 7,000 | ||||||
Receivables— | ||||||||
Trade accounts receivable | 10,029 | 12,244 | ||||||
Insurance claims | 3,895 | 3,277 | ||||||
Due from related party | 6,561 | 3,820 | ||||||
Advances and other | 11,413 | 5,179 | ||||||
31,898 | 24,520 | |||||||
Inventories | 4,788 | 3,275 | ||||||
Prepayments and other | 1,463 | 1,283 | ||||||
Total current assets | 81,385 | 75,752 | ||||||
INVESTMENT | — | 10,577 | ||||||
FIXED ASSETS: | ||||||||
Advances for vessels under construction | 26,208 | 41,963 | ||||||
Vessels | 897,641 | 670,452 | ||||||
Accumulated depreciation | (141,635 | ) | (117,309 | ) | ||||
Net Book Value | 756,006 | 553,143 | ||||||
Total fixed assets | 782,214 | 595,106 | ||||||
DEFERRED CHARGES, net | 21,215 | 13,110 | ||||||
Total assets | $ | 884,814 | $ | 694,545 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term debt | $ | 44,543 | $ | 30,211 | ||||
Accounts payable— | ||||||||
Trade | 23,657 | 17,188 | ||||||
Other | 2,021 | — | ||||||
25,678 | 17,188 | |||||||
Accrued liabilities | 10,338 | 6,731 | ||||||
Accrued bank interest | 2,446 | 1,385 | ||||||
Financial instruments, fair value | 6,005 | 7,838 | ||||||
Unearned revenue | 3,150 | 2,003 | ||||||
Deferred income, current portion | 838 | 838 | ||||||
Total current liabilities | 92,998 | 66,194 | ||||||
LONG-TERM DEBT, net of current portion | 479,526 | 355,741 | ||||||
DEFERRED INCOME, net of current portion | 4,538 | 5,166 | ||||||
CONTINGENCIES | — | — | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock, $ 1.00 par value; 40,000,000 shares authorized at September 30, 2003 and December 31, 2002; 17,169,623 and 17,022,723 issued and outstanding at September 30, 2003 and December 31, 2002, respectively. | 17,170 | 17,023 | ||||||
Additional paid-in capital | 203,793 | 202,862 | ||||||
Accumulated other comprehensive income/(loss) | (2,749 | ) | (629 | ) | ||||
Retained earnings | 89,538 | 48,188 | ||||||
Total stockholders’ equity | 307,752 | 267,444 | ||||||
Total liabilities and stockholders' equity | $ | 884,814 | $ | 694,545 | ||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)
FOR THE YEARS ENDED DECEMBER 31, 2002 AND THE NINE MONTHS ENDED SEPTEMBER 30, 2003
(Expressed in thousands of U.S. Dollars—except per share data)
Comprehensive Income | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income / (Loss) | Total | |||||||||||||
BALANCE, January 1, 2002 | 9,629 | 108,603 | 52,836 | — | 171,068 | |||||||||||||
Net income | 3,894 | — | — | 3,894 | — | 3,894 | ||||||||||||
Issuance of common stock | — | 7,350 | 102,900 | — | — | 110,250 | ||||||||||||
Expenses related to the issuance | — | |||||||||||||||||
of common stock | — | — | (9,868 | ) | — | — | (9,868 | ) | ||||||||||
—Issuance of common stock on acquisition of shares in LauriTen Ltd. | — | 217 | 3,033 | — | — | 3,250 | ||||||||||||
Repurchase and cancellation of common stock (131,000 shares) | — | (173 | ) | (1,806 | ) | — | — | (1,979 | ) | |||||||||
—Cash dividends declared and paid | — | — | — | (8,542 | ) | — | (8,542 | ) | ||||||||||
—Fair value of financial instruments | (629 | ) | — | — | — | (629 | ) | (629 | ) | |||||||||
Comprehensive income | $ 3,265 | |||||||||||||||||
BALANCE, December 31, 2002 | $17,023 | $202,862 | $48,188 | $ (629 | ) | $267,444 | ||||||||||||
Net income | 44,806 | — | — | 44,806 | — | 44,806 | ||||||||||||
—Repurchase and cancellation of | — | |||||||||||||||||
common stock (140,100 shares) | (140 | ) | (1,652 | ) | — | — | (1,792 | ) | ||||||||||
—Exercise of stock options | — | 287 | 2,583 | — | — | 2,870 | ||||||||||||
—Cash dividends declared and paid | — | — | — | (3,456 | ) | — | (3,456 | ) | ||||||||||
—Fair value of financial instruments | (2,120 | ) | — | — | — | (2,120 | ) | (2,120 | ) | |||||||||
Comprehensive income | $42,686 | |||||||||||||||||
BALANCE, September 30, 2003 | $17,170 | $203,793 | $89,538 | $(2,749 | ) | $307,752 | ||||||||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(Expressed in thousands of U.S. Dollars)
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 44,806 | $ | 7,960 | $ | 8,032 | $ | 656 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 24,326 | 17,344 | 8,771 | 6,397 | ||||||||||||
Amortization of deferred dry-docking costs | 5,849 | 3,091 | 1,816 | 911 | ||||||||||||
Amortization of loan fees | 641 | 169 | 458 | 29 | ||||||||||||
Amortization of deferred income | (628 | ) | (628 | ) | (209 | ) | (209 | ) | ||||||||
Interest expense, net of capitalized interest | 13,040 | 8,664 | 5,563 | 4,275 | ||||||||||||
Change in fair value of interest rate swaps | (3,953 | ) | 3,139 | (2,812 | ) | 765 | ||||||||||
Share of profits of joint-venture | (621 | ) | — | 43 | — | |||||||||||
Payments for dry-docking | (13,483 | ) | (6,151 | ) | (6,682 | ) | (4,264 | ) | ||||||||
(Increase) Decrease in: | ||||||||||||||||
Receivables | (4,128 | ) | (1,273 | ) | (946 | ) | 2,119 | |||||||||
Inventories | (1,513 | ) | (1,414 | ) | 572 | (890 | ) | |||||||||
Prepayments and other | (180 | ) | (324 | ) | 35 | (612 | ) | |||||||||
Increase (Decrease) in: | ||||||||||||||||
Accounts payable | 8,490 | 2,514 | 6,228 | 3,321 | ||||||||||||
Accrued liabilities | 3,607 | (804 | ) | 3,133 | (1,067 | ) | ||||||||||
Unearned revenue | 1,147 | (150 | ) | (346 | ) | (1,994 | ) | |||||||||
Interest paid, net of capitalized interest | (11,979 | ) | (9,356 | ) | (5,914 | ) | (2,917 | ) | ||||||||
Net Cash from Operating Activities | 65,421 | 22,781 | 17,742 | 6,521 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Advances for vessels under construction | (32,069 | ) | (35,611 | ) | (21,064 | ) | 10,942 | |||||||||
Vessel acquisitions and/or improvements | (179,365 | ) | (136,378 | ) | (61,153 | ) | (48,622 | ) | ||||||||
Payments for investment in joint venture | (17 | ) | — | — | — | |||||||||||
Return of investment in joint venture | 7,965 | — | 7,965 | — | ||||||||||||
Restricted cash for performance guarantee | 3,200 | 815 | — | — | ||||||||||||
Net Cash used in Investing Activities | (200,286 | ) | (171,174 | ) | (74,252 | ) | (37,680 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term debt | 159,910 | 94,818 | 51,550 | 32,118 | ||||||||||||
Financing costs | (1,112 | ) | (295 | ) | (508 | ) | (140 | ) | ||||||||
Payments of long-term debt | (21,793 | ) | (43,002 | ) | (8,437 | ) | (1,526 | ) | ||||||||
Proceeds from public offering, net of related costs | — | 100,389 | — | — | ||||||||||||
Exercise of stock options | 2,870 | — | — | — | ||||||||||||
Cash dividend | (3,456 | ) | — | — | ||||||||||||
Repurchase and cancellation of common stock | (1,792 | ) | (1,366 | ) | (1,146 | ) | (1,366 | ) | ||||||||
Net Cash from Financing Activities | 134,627 | 150,544 | 41,459 | 29,086 | ||||||||||||
Net increase in cash and cash equivalents | (238 | ) | 2,150 | (15,051 | ) | (2,074 | ) | |||||||||
Cash and cash equivalents at beginning of period | 39,674 | 33,274 | 54,487 | 37,498 | ||||||||||||
Cash and cash equivalents at end of period | $ | 39,436 | $ | 35,424 | $ | 39,436 | $ | 35,424 | ||||||||