Exhibit 99.2
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(Expressed in thousands of U.S. Dollars - except per share data)
Three months ended September 30, | ||||||||
2004 | 2003 | |||||||
REVENUES: | ||||||||
Revenue from vessels | $ | 74,889 | $ | 55,105 | ||||
Commissions | (3,052 | ) | (2,652 | ) | ||||
Revenue from vessels, net | 71,838 | 52,453 | ||||||
EXPENSES: | ||||||||
Voyage expenses | 18,642 | 17,036 | ||||||
Vessel operating expenses | 12,906 | 12,718 | ||||||
Depreciation | 8,920 | 8,771 | ||||||
Amortization of deferred charges | 2,128 | 1,816 | ||||||
Provision for doubtful receivables | — | — | ||||||
Management fees | 1,440 | 1,155 | ||||||
General and administrative expenses | 764 | 468 | ||||||
Operating income | 27,037 | 10,489 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (2,475 | ) | (2,557 | ) | ||||
Interest income | 136 | 90 | ||||||
Foreign currency losses | (21 | ) | (52 | ) | ||||
Share of profits of joint-venture | — | (43 | ) | |||||
Amortization of deferred gain on sale of vessels | 792 | — | ||||||
Gain on sale of vessels | — | — | ||||||
Other, net | — | 106 | ||||||
Total other income (expenses), net | (1,569 | ) | (2,456 | ) | ||||
Net Income | $ | 25,468 | $ | 8,033 | ||||
Earnings per share, basic | $ | 1.26 | $ | 0.47 | ||||
Earnings per share, diluted | $ | 1.26 | $ | 0.47 | ||||
Weighted average number of shares, basic | 20,159,789 | 17,179,420 | ||||||
Weighted average number of shares, diluted | 20,189,589 | 17,205,637 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(Expressed in thousands of U.S. Dollars - except per share data)
Nine months ended September 30, | ||||||||
2004 | 2003 | |||||||
REVENUES: | ||||||||
Revenue from vessels | $ | 224,274 | $ | 177,833 | ||||
Commissions | (9,243 | ) | (8,179 | ) | ||||
Revenue from vessels, net | 215,031 | 169,654 | ||||||
EXPENSES: | ||||||||
Voyage expenses | 51,077 | 46,792 | ||||||
Vessel operating expenses | 38,912 | 34,645 | ||||||
Depreciation | 26,524 | 24,326 | ||||||
Amortization of deferred charges | 6,915 | 5,849 | ||||||
Provision for doubtful receivables | 244 | — | ||||||
Management fees | 3,945 | 3,255 | ||||||
General and administrative expenses | 2,042 | 1,302 | ||||||
Operating income | 85,371 | 53,485 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (7,732 | ) | (8,835 | ) | ||||
Interest income | 316 | 299 | ||||||
Foreign currency losses | (68 | ) | (258 | ) | ||||
Share of profits of joint-venture | — | 621 | ||||||
Amortization of deferred gain on sale of vessels | 2,376 | — | ||||||
Gain on sale of vessels | 8,755 | — | ||||||
Other, net | — | (504 | ) | |||||
Total other income (expenses), net | 3,647 | (8,677 | ) | |||||
Net Income | $ | 89,018 | $ | 44,808 | ||||
Earnings per share, basic | $ | 4.77 | $ | 2.61 | ||||
Earnings per share, diluted | $ | 4.76 | $ | 2.60 | ||||
Weighted average number of shares, basic | 18,653,291 | 17,148,401 | ||||||
Weighted average number of shares, diluted | 18,702,704 | 17,205,598 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2004 and DECEMBER 31, 2003
(Expressed in thousands of U.S. Dollars - except per share data)
September 30, 2004 | December 31, 2003 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 91,905 | 86,813 | ||||
Receivables- | |||||||
Trade accounts receivable, net | 13,624 | 13,401 | |||||
Insurance claims | 2,581 | 2,749 | |||||
Due from related companies | 6,384 | 3,836 | |||||
Advances and other | 4,666 | 5,586 | |||||
27,255 | 25,572 | ||||||
Inventories | 4,279 | 3,381 | |||||
Prepaid insurance and other | 3,107 | 1,205 | |||||
Total current assets | 126,546 | 116,971 | |||||
FIXED ASSETS: | |||||||
Advances for vessels under construction | 107,658 | 33,420 | |||||
Vessels | 848,948 | 800,870 | |||||
Accumulated depreciation | (172,206 | ) | (146,208 | ) | |||
Vessels’ Net Book Value | 676,742 | 654,662 | |||||
Total fixed assets | 784,400 | 688,082 | |||||
DEFERRED CHARGES, net | 15,704 | 20,454 | |||||
Total assets | $ | 926,650 | 825,507 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Current portion of long-term debt | $ | 42,369 | 41,602 | ||||
Accounts payable- | |||||||
Trade | 17,474 | 15,609 | |||||
Due to related companies | 195 | 3,326 | |||||
Other | 14,240 | 1,825 | |||||
31,909 | 20,760 | ||||||
Accrued liabilities | 9,279 | 6,112 | |||||
Accrued bank interest | 2,915 | 2,276 | |||||
Financial instruments - Fair value | 1,123 | 5,097 | |||||
Unearned revenue | 3,797 | 3,611 | |||||
Deferred income, current portion | 4,005 | 4,005 | |||||
Total current liabilities | 95,397 | 83,463 | |||||
LONG-TERM DEBT, net of current portion | 355,023 | 411,018 | |||||
DEFERRED INCOME, net of current portion | 13,454 | 16,457 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock, $1.00 par value; 40,000,000 shares authorized at September 30, 2004 and December 31, 2003; 20,162,006 and 17,151,623 issued and outstanding at September 30, 2004 and December 31, 2003, respectively. | 20,162 | 17,152 | |||||
Additional paid-in capital | 282,251 | 203,631 | |||||
Other comprehensive income/(loss) | (1,123 | ) | (1,431 | ) | |||
Retained earnings | 161,486 | 95,217 | |||||
Total stockholders’ equity | 462,776 | 314,569 | |||||
Total liabilities and stockholders’ equity | $ | 926,650 | 825,507 | ||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(Expressed in thousands of U.S. Dollars)
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 89,018 | $ | 44,808 | $ | 25,468 | $ | 8,033 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Gain on sale of vessels | (8,755 | ) | — | — | — | |||||||||||
Depreciation | 26,524 | 24,326 | 8,920 | 8,771 | ||||||||||||
Amortization of deferred dry-docking costs | 6,915 | 5,849 | 2,128 | 1,816 | ||||||||||||
Amortization of loan fees | 278 | 641 | 86 | 458 | ||||||||||||
Amortization of deferred income | (3,003 | ) | (628 | ) | (1,003 | ) | (209 | ) | ||||||||
Change in fair value of financial instruments | (3,666 | ) | (3,953 | ) | (1,838 | ) | (2,812 | ) | ||||||||
Share of profits of joint venture | — | (621 | ) | — | 43 | |||||||||||
Payments for dry-docking | (2,586 | ) | (13,483 | ) | 30 | (6,682 | ) | |||||||||
(Increase) Decrease in: | ||||||||||||||||
Receivables | (1,683 | ) | (4,128 | ) | 886 | (946 | ) | |||||||||
Inventories | (898 | ) | (1,513 | ) | (667 | ) | 572 | |||||||||
Prepayments and other | (1,902 | ) | (180 | ) | (601 | ) | 35 | |||||||||
Increase (Decrease) in: | ||||||||||||||||
Accounts payable | (2,969 | ) | 8,490 | (654 | ) | 6,228 | ||||||||||
Accrued liabilities | 3,806 | 4,666 | 442 | 2,781 | ||||||||||||
Unearned revenue | 186 | 1,147 | 1,114 | (346 | ) | |||||||||||
Net Cash from Operating Activities | 101,265 | 65,421 | 34,311 | 17,742 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Advances for vessels under construction | (82,321 | ) | (32,069 | ) | (26,283 | ) | (21,064 | ) | ||||||||
Vessel acquisitions and/or improvements | (70,344 | ) | (179,365 | ) | — | (61,153 | ) | |||||||||
Payments for investment in joint venture | — | (17 | ) | — | — | |||||||||||
Return of investment in joint venture | — | 7,965 | — | 7,965 | ||||||||||||
Proceeds from sale of vessels | 38,907 | — | — | — | ||||||||||||
Restricted cash for performance guarantee | — | 3,200 | — | — | ||||||||||||
Net Cash used in Investing Activities | (113,758 | ) | (200,286 | ) | (26,283 | ) | (74,252 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term debt | 40,000 | 159,910 | — | 51,550 | ||||||||||||
Exercise of stock options | 1,588 | 2,870 | 360 | — | ||||||||||||
Financing costs | (187 | ) | (1,112 | ) | (18 | ) | (508 | ) | ||||||||
Payments of long-term debt | (95,227 | ) | (21,793 | ) | (11,005 | ) | (8,437 | ) | ||||||||
Repurchase and cancellation of common stock | — | (1,792 | ) | — | (1,146 | ) | ||||||||||
Proceeds from public offering, net of related costs | 80,042 | — | (158 | ) | — | |||||||||||
Cash dividend | (8,631 | ) | (3,456 | ) | — | — | ||||||||||
Net Cash from/(used in) Financing Activities | 17,585 | 134,627 | (10,821 | ) | 41,459 | |||||||||||
Net increase/(decrease) in cash and cash equivalents | 5,092 | (238 | ) | (2,794 | ) | (15,051 | ) | |||||||||
Cash and cash equivalents at beginning of period | 86,813 | 39,674 | 94,699 | 54,487 | ||||||||||||
Cash and cash equivalents at end of period | $ | 91,905 | $ | 39,436 | $ | 91,905 | $ | 39,436 | ||||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND NINE MONTHS ENDED SEPTEMBER 30, 2004
(Expressed in thousands of U.S. Dollars - except per share data)
Comprehensive Income (Loss) | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stock- Holders’ Equity | |||||||||||||||||||
BALANCE, January 1, 2001 | $ | 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 (172,800 shares) | (173 | ) | (1,806 | ) | (1,979 | ) | ||||||||||||||||||
- Cash dividends declared and paid ($0.50 per share) | (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 | 59,052 | 59,052 | 59,052 | |||||||||||||||||||||
- Exercise of stock options | 269 | 2,421 | 2,690 | |||||||||||||||||||||
- Repurchase and cancellation of common stock (140,100 shares) | (140 | ) | (1,652 | ) | (1,792 | ) | ||||||||||||||||||
- Cash dividends declared and paid ($0.70 per share) | (12,023 | ) | (12,023 | ) | ||||||||||||||||||||
- Fair value of financial instruments | (802 | ) | (802 | ) | (802 | ) | ||||||||||||||||||
Comprehensive income | $ | 58,250 | ||||||||||||||||||||||
BALANCE, December 31, 2003 | $ | 17,152 | $ | 203,631 | $ | 95,217 | $ | (1,431 | ) | $ | 314,569 | |||||||||||||
Net income | 89,018 | — | — | 89,018 | 89,018 | |||||||||||||||||||
- Issuance of common stock (net of discount) | 2,875 | 78,143 | 81,018 | |||||||||||||||||||||
- Expenses related to the issuance of common stock | (976 | ) | (976 | ) | ||||||||||||||||||||
- Exercise of stock options | 135 | 1,453 | 1,588 | |||||||||||||||||||||
- Cash dividends declared and paid ($0.50 per share) | (8,631 | ) | (8,631 | ) | ||||||||||||||||||||
- Cash dividends declared ($0.70 per share) | (14,118 | ) | (14,118 | ) | ||||||||||||||||||||
- Fair value of financial instruments | 308 | 308 | 308 | |||||||||||||||||||||
Comprehensive income | $ | 89,326 | ||||||||||||||||||||||
BALANCE, September 30, 2004 | $ | 20,162 | 282,251 | 161,486 | (1,123 | ) | 462,776 | |||||||||||||||||