TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
DECEMBER 31, 2003 and 2002
(Expressed in thousands of U.S. Dollars—except per share data)
ASSETS | December 31, 2003 | December 31, 2002 | |||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 86,813 | 39,674 | ||||
Cash, restricted | — | 7,000 | |||||
Receivables— | |||||||
Trade accounts receivable | 13,405 | 12,244 | |||||
Insurance claims | 2,750 | 3,277 | |||||
Due from related party | 3,836 | 3,820 | |||||
Advances and other | 6,623 | 5,179 | |||||
26,614 | 24,520 | ||||||
Inventories | 3,381 | 3,275 | |||||
Prepayments and other | 1,205 | 1,283 | |||||
Total current assets | 118,013 | 75,752 | |||||
INVESTMENT | — | 10,577 | |||||
FIXED ASSETS: | |||||||
Advances for vessels under construction | 33,421 | 41,963 | |||||
Vessels | 800,870 | 670,452 | |||||
Accumulated depreciation | (146,208 | ) | (117,309 | ) | |||
Net Book Value | 654,662 | 553,143 | |||||
Total fixed assets | 688,083 | 595,106 | |||||
DEFERRED CHARGES, net | 20,454 | 13,110 | |||||
Total assets | $ | 826,549 | 694,545 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Current portion of long-term debt | $ | 41,602 | 30,211 | ||||
Accounts payable— | |||||||
Trade | 19,588 | 17,188 | |||||
Other | 2,067 | — | |||||
21,655 | 17,188 | ||||||
Accrued liabilities | 6,092 | 6,731 | |||||
Accrued bank interest | 2,279 | 1,385 | |||||
Financial instruments, fair value | 5,097 | 7,838 | |||||
Unearned revenue | 3,611 | 2,003 | |||||
Deferred income, current portion | 4,005 | 838 | |||||
Total current liabilities | 84,341 | 66,194 | |||||
LONG-TERM DEBT, net of current portion | 411,018 | 355,741 | |||||
DEFERRED INCOME, net of current portion | 16,457 | 5,166 | |||||
CONTINGENCIES | — | — | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock, $ 1.00 par value; 40,000,000 shares authorized at December 31,2003 and 2002; 17,169,623 and 17,022,723 issued and outstanding at December 31, 2003 and 2002, respectively. | 17,170 | 17,023 | |||||
Additional paid-in capital | 203,793 | 202,862 | |||||
Other comprehensive (loss)/income | (1,431 | ) | (629 | ) | |||
Retained earnings | 95,201 | 48,188 | |||||
Total stockholders’ equity | 314,733 | 267,444 | |||||
Total liabilities and stockholders’ equity | $ | 826,549 | 694,545 | ||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE YEAR ENDED DECEMBER 31, 2003 AND 2002
(Expressed in thousands of U.S. Dollars—except per share data)
Year ended December 31, | ||||||||||
2003 | 2002 | |||||||||
REVENUES: | ||||||||||
Revenue from vessels | $ | 241,365 | $ | 130,004 | ||||||
Commissions | (11,296 | ) | (6,364 | ) | ||||||
Revenue from vessels, net | 230,069 | 123,640 | ||||||||
EXPENSES: | ||||||||||
Voyage expenses | 61,325 | 32,838 | ||||||||
Vessel operating expenses | 49,922 | 32,347 | ||||||||
Depreciation | 32,877 | 24,429 | ||||||||
Impairment loss | — | 10,781 | ||||||||
Amortization of deferred charges | 7,835 | 4,315 | ||||||||
Provision for doubtful debts | 696 | |||||||||
Management fees | 4,470 | 3,239 | ||||||||
General and administrative expenses | 2,415 | 1,261 | ||||||||
Operating income | 70,529 | 14,430 | ||||||||
OTHER INCOME (EXPENSES): | ||||||||||
Interest and finance costs, net | (12,375 | ) | (11,385 | ) | ||||||
Interest Income | 387 | 736 | ||||||||
Foreign currency gains (losses) | (389 | ) | (84 | ) | ||||||
Share of profits of joint-venture | 602 | 197 | ||||||||
Gain on sale of vessels | 541 | 0 | ||||||||
Other, net | (242 | ) | 0 | |||||||
Total other income (expenses), net | (11,476 | ) | – | (10,536 | ) | |||||
Net Income | $ | 59,053 | $ | 3,894 | ||||||
Earnings per share, basic | $ | 3.44 | $ | 0.25 | ||||||
Earnings per share, diluted | $ | 3.43 | $ | 0.25 | ||||||
Weighted average number of shares, basic | 17,153,750 | 15,717,065 | ||||||||
Weighted average number of shares, diluted | 17,201,456 | 15,854,904 | ||||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE THREE MONTHS ENDED DECEMBER 31, 2003 AND 2002
(Expressed in thousands of U.S. Dollars—except per share data)
Three months ended December 31, | ||||||||||
2003 | 2002 | |||||||||
REVENUES: | ||||||||||
Revenue from vessels | $ | 63,532 | $ | 41,144 | ||||||
Commissions | (3,117 | ) | (1,902 | ) | ||||||
Revenue from vessels, net | 60,415 | 39,242 | ||||||||
EXPENSES: | ||||||||||
Voyage expenses | 14,532 | 11,422 | ||||||||
Vessel operating expenses | 15,277 | 9,880 | ||||||||
Depreciation | 8,551 | 7,084 | ||||||||
Impairment loss | — | 10,781 | ||||||||
Amortization of deferred charges | 1,946 | 1,224 | ||||||||
Provision for doubtful debts | 696 | — | ||||||||
Management fees | 1,215 | 915 | ||||||||
General and administrative expenses | 1,114 | 563 | ||||||||
Operating income | 17,085 | (2,627 | ) | |||||||
OTHER INCOME (EXPENSES): | ||||||||||
Interest and finance costs, net | (3,540 | ) | (1,676 | ) | ||||||
Interest Income | 88 | 77 | ||||||||
Foreign currency gains (losses) | (130 | ) | (36 | ) | ||||||
Share of profits of joint-venture | (19 | ) | 197 | |||||||
Gain on sale of vessels | 541 | 0 | ||||||||
Other, net | 261 | — | ||||||||
Total other income (expenses), net | (2,799 | ) | – | (1,438 | ) | |||||
Net Income | $ | 14,286 | $ | (4,065 | ) | |||||
Earnings per share, basic | $ | 0.83 | $ | (0.24 | ) | |||||
Earnings per share, diluted | $ | 0.83 | $ | (0.24 | ) | |||||
Weighted average number of shares, basic | 17,169,623 | 17,037,401 | ||||||||
Weighted average number of shares, diluted | 17,210,602 | 17,175,240 | ||||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
FOR THE YEAR ENDED DECEMBER 31, 2003 AND 2002
(Expressed in thousands of U.S. Dollars)
Year ended December 31, | Three months ended December 31, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income (loss) | $ | 59,053 | $ | 3,894 | $ | 14,285 | $ | (4,065 | ) | |||||||
Adjustments to reconcile net income to net cash provided by operating | — | |||||||||||||||
activities: | — | |||||||||||||||
Depreciation | 32,877 | 24,429 | 8,551 | 7,085 | ||||||||||||
Impairment Loss | — | 10,781 | 10,781 | |||||||||||||
Amortization of deferred dry-docking costs | 7,835 | 4,315 | 1,946 | 1,224 | ||||||||||||
Amortization of loan fees | 685 | 286 | 44 | 117 | ||||||||||||
Amortization of deferred income | (1,379 | ) | (838 | ) | (751 | ) | (210 | ) | ||||||||
Change in fair value of interest rate swaps | (3,543 | ) | 3,822 | (704 | ) | 683 | ||||||||||
Share of profits of joint-venture | (602 | ) | (197 | ) | 19 | (197 | ) | |||||||||
Payments for dry-docking | (15,114 | ) | (8,265 | ) | (1,631 | ) | (2,114 | ) | ||||||||
(Increase) Decrease in: | — | |||||||||||||||
Receivables | (2,109 | ) | (12,589 | ) | 2,019 | (11,316 | ) | |||||||||
Inventories | (106 | ) | (1,847 | ) | 1,407 | (433 | ) | |||||||||
Prepayments and other | 78 | 153 | 258 | 477 | ||||||||||||
Increase (Decrease) in: | — | |||||||||||||||
Accounts payable | 4,467 | 7,185 | (4,023 | ) | 4,671 | |||||||||||
Accrued liabilities | 272 | 1,412 | (3,281 | ) | 2,908 | |||||||||||
Unearned revenue | 1,607 | 204 | 461 | 354 | ||||||||||||
Net Cash from Operating Activities | 84,021 | 32,745 | 18,600 | 9,965 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Advances for vessels under construction | (32,096 | ) | (39,771 | ) | (7,438 | ) | (4,160 | ) | ||||||||
Vessel acquisitions and/or improvements | (186,775 | ) | (210,898 | ) | — | (74,520 | ) | |||||||||
Payments for investment in joint venture | (36 | ) | (7,130 | ) | (19 | ) | (7,130 | ) | ||||||||
Return of investment in joint venture | 11,215 | — | 3,250 | — | ||||||||||||
Proceeds from sale of vessels | 108,854 | — | 108,854 | — | ||||||||||||
Restricted cash for performance guarantee | 7,000 | 815 | 3,800 | — | ||||||||||||
Net Cash (used in)/from Investing Activities | (91,838 | ) | (256,984 | ) | 108,447 | (85,810 | ) | |||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term debt | 159,910 | 185,371 | — | 90,553 | ||||||||||||
Financing costs | (749 | ) | (716 | ) | 363 | (421 | ) | |||||||||
Payments of long-term debt | (93,242 | ) | (43,877 | ) | (71,449 | ) | (875 | ) | ||||||||
Proceeds from public offering, net of related costs | — | 100,382 | — | (7 | ) | |||||||||||
Exercise of stock options | 2,870 | — | — | — | ||||||||||||
Cash dividend | (12,040 | ) | (8,542 | ) | (8,584 | ) | (8,542 | ) | ||||||||
Repurchase and cancellation of common stock | (1,792 | ) | (1,979 | ) | — | (613 | ) | |||||||||
Net Cash from/(used in) Financing Activities | 54,957 | 230,639 | (79,670 | ) | 80,095 | |||||||||||
Net increase in cash and cash equivalents | 47,139 | 6,400 | 47,377 | 4,250 | ||||||||||||
Cash and cash equivalents at beginning of period | 39,674 | 33,274 | 39,436 | 35,424 | ||||||||||||
Cash and cash equivalents at end of period | $ | 86,813 | $ | 39,674 | $ | 86,813 | $ | 39,674 | ||||||||