Exhibit 99.1
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2006 and DECEMBER 31, 2005
(Expressed in thousands of U.S. Dollars - except per share data)
March 31, 2006 | December 31, 2005 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 76,571 | $ | 145,769 | ||||
Restricted cash | 1,306 | 271 | ||||||
Receivables- | ||||||||
Trade accounts receivable, net | 19,731 | 17,620 | ||||||
Insurance claims | 1,728 | 652 | ||||||
Due from related companies | 2,189 | 1,736 | ||||||
Advances and other | 5,724 | 2,750 | ||||||
29,372 | 22,758 | |||||||
Short-term investments | — | 10,240 | ||||||
Inventories | 8,219 | 5,406 | ||||||
Prepaid insurance and other | 2,635 | 2,363 | ||||||
Financial instruments-Fair value | 7,983 | 4,927 | ||||||
Total current assets | 126,086 | 191,734 | ||||||
INVESTMENTS | 17,770 | 21,881 | ||||||
FIXED ASSETS: | ||||||||
Advances for vessels under construction | 234,656 | 150,428 | ||||||
Vessels | 1,080,670 | 882,210 | ||||||
Accumulated depreciation | (181,524 | ) | (170,848 | ) | ||||
Vessels’ Net Book Value | 899,146 | 711,362 | ||||||
Total fixed assets | 1,133,802 | 861,790 | ||||||
DEFERRED CHARGES, net | 12,699 | 13,769 | ||||||
Total assets | $ | 1,290,357 | $ | 1,089,174 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term debt | $ | 58,575 | $ | 51,496 | ||||
Accounts payable- | ||||||||
Trade | 18,106 | 13,489 | ||||||
Due to related companies | 1,131 | 1,385 | ||||||
Dividend declared | 20,978 | — | ||||||
Other | 9 | 542 | ||||||
40,224 | 15,416 | |||||||
Accrued liabilities | 13,135 | 10,139 | ||||||
Accrued bank interest | 4,931 | 5,478 | ||||||
Unearned revenue | 4,043 | 5,332 | ||||||
Deferred income, current portion | 3,168 | 3,168 | ||||||
Financial instruments - Fair value | — | 489 | ||||||
Total current liabilities | 124,076 | 91,518 | ||||||
LONG-TERM DEBT, net of current portion | 532,209 | 382,023 | ||||||
DEFERRED INCOME, net of current portion | 7,655 | 8,447 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock, $ 1.00 par value; 100,000,000 shares authorized at March 31, 2006 and December 31, 2005; 19,069,695 and 19,177,195 issued and outstanding at March 31, 2006 and December 31, 2005, respectively. | 19,070 | 19,177 | ||||||
Additional paid-in capital | 267,833 | 269,237 | ||||||
Other comprehensive income | 5,407 | 3,067 | ||||||
Retained earnings | 334,107 | 315,705 | ||||||
Total stockholders’ equity | 626,417 | 607,186 | ||||||
Total liabilities and stockholders’ equity | $ | 1,290,357 | $ | 1,089,174 | ||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005
(Expressed in thousands of U.S. Dollars - except per share data)
Three months ended March 31, | ||||||||
2006 | 2005 | |||||||
VOYAGE REVENUES: | $ | 95,870 | $ | 76,874 | ||||
EXPENSES: | ||||||||
Commissions | 3,555 | 3,151 | ||||||
Voyage expenses | 16,701 | 6,978 | ||||||
Charter hire expense | 6,058 | 6,035 | ||||||
Vessel operating expenses | 14,457 | 13,726 | ||||||
Depreciation | 10,677 | 8,560 | ||||||
Amortization of deferred dry-docking costs | 1,425 | 1,730 | ||||||
Management fees | 1,409 | 1,395 | ||||||
General and administrative expenses | 475 | 499 | ||||||
Foreign currency (gains)/losses | (7 | ) | 29 | |||||
Amortization of deferred gain on sale of vessels | (792 | ) | (792 | ) | ||||
Gain on sale of vessels, net | — | (5,203 | ) | |||||
Total expenses | 53,958 | 36,108 | ||||||
Operating income | 41,912 | 40,766 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (3,612 | ) | (1,586 | ) | ||||
Interest income | 2,775 | 687 | ||||||
Other, net | 698 | (16 | ) | |||||
Total other income (expenses), net | (139 | ) | (915 | ) | ||||
Net Income | $ | 41,773 | $ | 39,851 | ||||
Earnings per share, basic | $ | 2.19 | $ | 1.98 | ||||
Earnings per share, diluted | $ | 2.19 | $ | 1.97 | ||||
Weighted average number of shares, basic | 19,102,245 | 20,174,624 | ||||||
Weighted average number of shares, diluted | 19,110,939 | 20,194,589 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2005 AND FOR THE PERIOD ENDED MARCH 31, 2006
(Expressed in thousands of U.S. Dollars - except per share data)
Comprehensive Income (Loss) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stock- Holders’ Equity | |||||||||||||||||||
BALANCE, January 1, 2005 | $ | 20,176 | $ | 282,451 | $ | 1,136 | $ | 215,758 | $ | 519,521 | ||||||||||||||
Net income | 161,755 | 161,755 | 161,755 | |||||||||||||||||||||
- Exercise of stock options | 18 | 203 | 221 | |||||||||||||||||||||
- Repurchase and cancellation of common stock (1,016,790 shares) | (1,017 | ) | (13,417 | ) | (23,322 | ) | (37,756 | ) | ||||||||||||||||
- Cash dividends declared and paid ($1.95 per share) | (38,486 | ) | (38,486 | ) | ||||||||||||||||||||
- Fair value of financial instruments | 4,265 | 4,265 | 4,265 | |||||||||||||||||||||
- Reclassification of gains on undesignated cash flow hedges | (2,334 | ) | (2,334 | ) | (2,334 | ) | ||||||||||||||||||
Comprehensive income | $ | 163,686 | ||||||||||||||||||||||
BALANCE, December 31, 2005 | $ | 19,177 | $ | 269,237 | $ | 3,067 | $ | 315,705 | $ | 607,186 | ||||||||||||||
Net income | 41,773 | 41,773 | 41,773 | |||||||||||||||||||||
- Exercise of stock options | 1 | 11 | 12 | |||||||||||||||||||||
- Repurchase and cancellation of common stock (108,500 shares) | (108 | ) | (1,415 | ) | (2,393 | ) | (3,916 | ) | ||||||||||||||||
- Cash dividends declared ($1.10 per share) | (20,978 | ) | (20,978 | ) | ||||||||||||||||||||
- Fair value of financial instruments | 3,775 | 3,775 | 3,775 | |||||||||||||||||||||
- Reclassification of gains on undesignated cash flow hedges | (1,435 | ) | (1,435 | ) | (1,435 | ) | ||||||||||||||||||
Comprehensive income | $ | 44,113 | ||||||||||||||||||||||
BALANCE, March 31, 2006 | $ | 19,070 | $ | 267,833 | $ | 5,407 | $ | 334,107 | $ | 626,417 | ||||||||||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR | THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005 |
(Expressed in thousands of U.S. Dollars)
Three months ended March 31, | ||||||||
2006 | 2005 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 41,773 | $ | 39,851 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 10,677 | 8,560 | ||||||
Amortization of deferred dry-docking costs | 1,425 | 1,730 | ||||||
Amortization of loan fees | 235 | 59 | ||||||
Amortization of deferred income | (792 | ) | (1,001 | ) | ||||
Change in fair value of interest rate swaps | (1,205 | ) | (1,064 | ) | ||||
Change in fair value of investments | (1,256 | ) | ||||||
Payments for dry-docking | (286 | ) | (2,352 | ) | ||||
Gain on sale of vessels, net | — | (5,203 | ) | |||||
Gain on sale of investments | (495 | ) | ||||||
(Increase) Decrease in: | ||||||||
Receivables | (6,614 | ) | 8,180 | |||||
Inventories | (2,813 | ) | 467 | |||||
Prepaid insurance and other | (272 | ) | (1,205 | ) | ||||
Increase (Decrease) in: | ||||||||
Accounts payable | 3,830 | (697 | ) | |||||
Accrued liabilities | 2,449 | 1,766 | ||||||
Unearned revenue | (1,289 | ) | (2,191 | ) | ||||
Net Cash from Operating Activities | 45,367 | 46,900 | ||||||
Cash Flows from Investing Activities: | ||||||||
Advances for vessels under construction and acquisitions | (119,104 | ) | (19,083 | ) | ||||
Vessel acquisitions and/or improvements | (163,584 | ) | (18,504 | ) | ||||
Proceeds from sale of investments | 16,102 | (4,998 | ) | |||||
Proceeds from sale of vessels, net | — | 9,144 | ||||||
Net Cash used in Investing Activities | (266,586 | ) | (33,441 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from long-term debt | 207,373 | 26,250 | ||||||
Financing costs | (305 | ) | (225 | ) | ||||
Payments of long-term debt | (50,108 | ) | (12,354 | ) | ||||
Proceeds from exercise of stock options | 12 | 33 | ||||||
(Increase)/decrease in restricted cash | (1,035 | ) | 949 | |||||
Repurchase and cancellation of common stock | (3,916 | ) | (526 | ) | ||||
Net Cash from Financing Activities | 152,021 | 14,127 | ||||||
Net (decrease)/increase in cash and cash equivalents | (69,198 | ) | 27,586 | |||||
Cash and cash equivalents at beginning of period | 145,769 | 116,922 | ||||||
Cash and cash equivalents at end of period | $ | 76,571 | $ | 144,508 | ||||