Exhibit 99.1
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
Selected Consolidated Financial and Other Data
(In Thousands of U.S. Dollars, except share, per day and fleet data)
Three months ended December 31 | Year ended December 31 | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
STATEMENT OF INCOME DATA | ||||||||||||||||
Voyage revenues | $ | 111,590 | $ | 89,427 | $ | 427,654 | $ | 295,623 | ||||||||
Commissions | 3,822 | 3,441 | 15,441 | 11,604 | ||||||||||||
Voyage expenses | 14,035 | 8,282 | 69,065 | 35,970 | ||||||||||||
Charter hire expense | 6,149 | 6,126 | 24,461 | 24,317 | ||||||||||||
Vessel operating expenses | 23,657 | 14,021 | 76,095 | 52,945 | ||||||||||||
Depreciation | 16,980 | 9,069 | 59,058 | 35,697 | ||||||||||||
Amortization of deferred drydocking costs | 1,036 | 2,802 | 4,857 | 6,583 | ||||||||||||
Provision for doubtful receivables | — | 40 | — | 40 | ||||||||||||
Management fees | 1,951 | 1,312 | 7,103 | 5,460 | ||||||||||||
General & Administrative expenses | 1,625 | 1,397 | 3,726 | 3,631 | ||||||||||||
Management incentive award | 3,500 | 2,500 | 3,500 | 2,500 | ||||||||||||
Foreign currency losses/(gains) | 169 | (31 | ) | 279 | (181 | ) | ||||||||||
Amortization of deferred gain on sale of vessels | (792 | ) | (792 | ) | (3,168 | ) | (3,168 | ) | ||||||||
Gain on sale of vessels, net | (24,688 | ) | (20,496 | ) | (38,009 | ) | (34,540 | ) | ||||||||
Total expenses | 47,444 | 27,671 | 222,408 | 140,858 | ||||||||||||
Operating income | 64,146 | 61,756 | 205,246 | 154,765 | ||||||||||||
Gain on sale of non-operating vessels, net | — | 4 | — | 10,765 | ||||||||||||
Gain on sale of shares in subsidiary | 25,323 | — | 25,323 | — | ||||||||||||
Interest and finance costs, net | (14,759 | ) | (4,720 | ) | (42,486 | ) | (11,247 | ) | ||||||||
Interest income | 2,642 | 3,666 | 7,164 | 7,360 | ||||||||||||
Other income/(expense) | (245 | ) | 128 | 1,159 | 112 | |||||||||||
Total other income (expenses), net | 12,961 | (922 | ) | (8,840 | ) | 6,990 | ||||||||||
Minority interest | (2 | ) | — | (2 | ) | — | ||||||||||
Net income | $ | 77,105 | $ | 60,834 | $ | 196,404 | $ | 161,755 | ||||||||
Earnings per share, basic | $ | 4.05 | $ | 3.16 | $ | 10.30 | $ | 8.18 | ||||||||
Earnings per share, diluted | $ | 4.05 | $ | 3.16 | $ | 10.30 | $ | 8.17 | ||||||||
Weighted average number of shares outstanding | ||||||||||||||||
Basic | 19,039,914 | 19,232,408 | 19,063,846 | 19,772,270 | ||||||||||||
Diluted | 19,045,461 | 19,241,710 | 19,070,526 | 19,786,846 |
December 31 2006 | December 31 2005 | |||||||
(Unaudited) | (Audited) | |||||||
BALANCE SHEET DATA | ||||||||
Cash and cash equivalents | $ | 174,567 | $ | 145,769 | ||||
Current assets, including cash | 222,493 | 191,734 | ||||||
Investments | 14,045 | 21,881 | ||||||
Advances for vessels | 261,242 | 150,428 | ||||||
Vessels at cost | 1,649,928 | 882,210 | ||||||
Accumulated Depreciation | (191,281 | ) | (170,848 | ) | ||||
Vessels’ Net Book Value | 1,458,647 | 711,362 | ||||||
Deferred charges | 13,448 | 13,769 | ||||||
Total assets | $ | 1,969,875 | $ | 1,089,174 | ||||
Current portion of long-term debt | 23,117 | 51,496 | ||||||
Current liabilities, including current portion of long-term debt | 101,430 | 91,518 | ||||||
Long-term debt, net of current portion | 1,110,544 | 382,023 | ||||||
Deferred income, net of current portion | 2,626 | 8,447 | ||||||
Minority interests | 2 | — | ||||||
Total stockholders’ equity | 755,273 | 607,186 | ||||||
Total liabilities and stockholders’ equity | $ | 1,969,875 | $ | 1,089,174 | ||||
Three months ended December 31 | Year ended December 31 | |||||||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||
OTHER FINANCIAL DATA | ||||||||||||||||||||
Net cash from operating activities | $ | 48,416 | $ | 44,469 | $ | 214,998 | $ | 146,903 | ||||||||||||
Net cash (used in)/from investing activities | $ | (7,719 | ) | $ | 23,109 | $ | (829,326 | ) | $ | (108,969 | ) | |||||||||
Net cash (used in)/ from financing activities | $ | (6,525 | ) | $ | (53,019 | ) | $ | 643,126 | $ | (9,087 | ) | |||||||||
TCE per ship per day | $ | 29,796 | $ | 35,388 | $ | 30,154 | $ | 28,645 | ||||||||||||
Operating expenses per ship per day | $ | 7,811 | $ | 7,134 | $ | 6,979 | $ | 6,534 | ||||||||||||
Vessel overhead costs per ship per day | $ | 2,081 | $ | 2,241 | $ | 1,162 | $ | 1,217 | ||||||||||||
9,891 | 9,375 | 8,141 | 7,751 | |||||||||||||||||
FLEET DATA | ||||||||||||||||||||
Average number of vessels during period | 37.0 | 25.3 | 33.8 | 26.1 | ||||||||||||||||
Number of vessels at end of period | 37.0 | 25.0 | 37.0 | 25.0 | ||||||||||||||||
Average age of fleet at end of period | Years | 5.9 | 6.3 | 5.9 | 6.3 | |||||||||||||||
Dwt at end of period (in thousands) | 4,180.8 | 2,924.9 | 4,180.8 | 2,924.9 | ||||||||||||||||
Time charter employment - fixed rate | Days | 688 | 944 | 2,606 | 3,870 | |||||||||||||||
Time charter employment - variable rate | Days | 1,535 | 460 | 3,848 | 1,819 | |||||||||||||||
Period employment (pool and coa) at market rates | Days | 622 | 578 | 3,060 | 2,162 | |||||||||||||||
Spot voyage employment at market rates | Days | 460 | 337 | 2,499 | 1,341 | |||||||||||||||
Total operating days | 3,305 | 2,319 | 12,013 | 9,192 | ||||||||||||||||
Total available days | 3,401 | 2,324 | 12,335 | 9,527 | ||||||||||||||||
Utilization | 97.2 | % | 99.8 | % | 97.4 | % | 96.5 | % |
TCE represents voyage revenue less voyage expenses. Commission is not deducted.
Operating expenses per ship per day exclude the three chartered-in vessels and the vessel bare-boat chartered out.
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2006 and DECEMBER 31, 2005
(Expressed in thousands of U.S. Dollars - except per share data)
December 31, 2006 | December 31, 2005 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 174,567 | $ | 145,769 | ||||
Restricted cash | 4,347 | 271 | ||||||
Receivables-Trade accounts receivable, net | 15,425 | 17,620 | ||||||
Insurance claims | 1,865 | 652 | ||||||
Due from related companies | — | 1,736 | ||||||
Advances and other | 5,480 | 2,750 | ||||||
22,770 | 22,758 | |||||||
Short-term investments | — | 10,240 | ||||||
Inventories | 8,431 | 5,406 | ||||||
Prepaid insurance and other | 3,020 | 2,363 | ||||||
Financial instruments-Fair value | 9,358 | 4,927 | ||||||
Total current assets | 222,493 | 191,734 | ||||||
INVESTMENTS | 14,045 | 21,881 | ||||||
FIXED ASSETS: | ||||||||
Advances for vessels under construction | 261,242 | 150,428 | ||||||
Vessels | 1,649,928 | 882,210 | ||||||
Accumulated depreciation | (191,281 | ) | (170,848 | ) | ||||
Vessels’ Net Book Value | 1,458,647 | 711,362 | ||||||
Total fixed assets | 1,719,889 | 861,790 | ||||||
DEFERRED CHARGES, net | 13,448 | 13,769 | ||||||
Total assets | $ | 1,969,875 | $ | 1,089,174 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term debt | $ | 23,117 | $ | 51,496 | ||||
Accounts payable-Trade payables | 20,211 | 13,489 | ||||||
Due to related companies | 2,414 | 1,385 | ||||||
Other | 2,044 | 542 | ||||||
24,669 | 15,416 | |||||||
Accrued liabilities | 18,218 | 10,139 | ||||||
Accrued bank interest | 13,705 | 5,478 | ||||||
Unearned revenue | 12,075 | 5,332 | ||||||
Deferred income, current portion | 5,821 | 3,168 | ||||||
Financial instruments—Fair value | 3,825 | 489 | ||||||
Total current liabilities | 101,430 | 91,518 | ||||||
— | ||||||||
LONG-TERM DEBT, net of current portion | 1,110,544 | 382,023 | ||||||
DEFERRED INCOME, net of current portion | 2,626 | 8,447 | ||||||
MINORITY INTEREST | 2 | — | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock, $ 1.00 par value; 100,000,000 shares authorized at December 31, 2006 and December 31, 2005; 19,039,871 and 19,177,195 issued and outstanding at December 31, 2006 and December 31, 2005, respectively. | 19,040 | 19,177 | ||||||
Additional paid-in capital | 267,430 | 269,237 | ||||||
Accumulated other comprehensive income | 4,718 | 3,067 | ||||||
Retained earnings | 464,085 | 315,705 | ||||||
Total stockholders’ equity | 755,273 | 607,186 | ||||||
Total liabilities and stockholders’ equity | $ | 1,969,875 | $ | 1,089,174 | ||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
(Expressed in thousands of U.S. Dollars - except share and per share data)
Year ended December 31, | ||||||||
2006 | 2005 | |||||||
(Unaudited) | (Audited) | |||||||
VOYAGE REVENUES: | $ | 427,654 | $ | 295,623 | ||||
EXPENSES: | ||||||||
Commissions | 15,441 | 11,604 | ||||||
Voyage expenses | 69,065 | 35,970 | ||||||
Charter hire expense | 24,461 | 24,317 | ||||||
Vessel operating expenses | 76,095 | 52,945 | ||||||
Depreciation | 59,058 | 35,697 | ||||||
Amortization of deferred dry-docking costs | 4,857 | 6,583 | ||||||
Provision for doubtful receivables | — | 40 | ||||||
Management fees | 7,103 | 5,460 | ||||||
General and administrative expenses | 3,726 | 3,631 | ||||||
Management incentive award | 3,500 | 2,500 | ||||||
Foreign currency losses/(gains) | 279 | (181 | ) | |||||
Amortization of deferred gain on sale of vessels | (3,168 | ) | (3,168 | ) | ||||
Gain on sale of vessels | (38,009 | ) | (34,540 | ) | ||||
Total expenses | 222,408 | 140,858 | ||||||
Operating income | 205,246 | 154,765 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Gain on sale of non-operating vessels | — | 10,765 | ||||||
Gain on sale of shares in subsidiary | 25,323 | — | ||||||
Interest and finance costs, net | (42,486 | ) | (11,247 | ) | ||||
Interest income | 7,164 | 7,360 | ||||||
Other, net | 1,159 | 112 | ||||||
Total other income (expenses), net | (8,840 | ) | 6,990 | |||||
MINORITY INTEREST | (2 | ) | — | |||||
Net Income | $ | 196,404 | $ | 161,755 | ||||
Earnings per share, basic | $ | 10.30 | $ | 8.18 | ||||
Earnings per share, diluted | $ | 10.30 | $ | 8.17 | ||||
Weighted average number of shares, basic | 19,063,846 | 19,772,270 | ||||||
Weighted average number of shares, diluted | 19,070,526 | 19,786,846 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED DECEMBER 31, 2006 AND 2005
(Expressed in thousands of U.S. Dollars - except share and per share data)
Three months ended December 31, | ||||||||
2006 | 2005 | |||||||
VOYAGE REVENUES: | $ | 111,590 | $ | 89,427 | ||||
EXPENSES: | ||||||||
Commissions | 3,822 | 3,441 | ||||||
Voyage expenses | 14,035 | 8,282 | ||||||
Charter hire expense | 6,149 | 6,126 | ||||||
Vessel operating expenses | 23,657 | 14,021 | ||||||
Depreciation | 16,980 | 9,069 | ||||||
Amortization of deferred dry-docking costs | 1,036 | 2,802 | ||||||
Provision for doubtful receivables | — | 40 | ||||||
Management fees | 1,951 | 1,312 | ||||||
General and administrative expenses | 1,625 | 1,397 | ||||||
Management incentive award | 3,500 | 2,500 | ||||||
Foreign currency losses/(gains) | 169 | (31 | ) | |||||
Amortization of deferred gain on sale of vessels | (792 | ) | (792 | ) | ||||
Gain on sale of vessels | (24,688 | ) | (20,496 | ) | ||||
Total expenses | 47,444 | 27,671 | ||||||
Operating income | 64,146 | 61,756 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Gain on sale of non-operating vessels | — | 4 | ||||||
Gain on sale of shares in subsidiary | 25,323 | |||||||
Interest and finance costs, net | (14,759 | ) | (4,720 | ) | ||||
Interest income | 2,642 | 3,666 | ||||||
Other, net | (245 | ) | 128 | |||||
Total other income (expenses), net | 12,961 | (922 | ) | |||||
MINORITY INTEREST: | (2 | ) | — | |||||
Net Income | $ | 77,105 | $ | 60,834 | ||||
Earnings per share, basic | $ | 4.05 | $ | 3.16 | ||||
Earnings per share, diluted | $ | 4.05 | $ | 3.16 | ||||
Weighted average number of shares, basic | 19,039,914 | 19,232,408 | ||||||
Weighted average number of shares, diluted | 19,045,461 | 19,241,710 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2006
(Expressed in thousands of United States Dollars - except share and per share data)
Comprehensive Income (Loss) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | 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 | 196,404 | 196,404 | 196,404 | |||||||||||||||||||||
- Exercise of stock options | 6 | 65 | 71 | |||||||||||||||||||||
- Repurchase and cancellation of common stock (143,200 shares) | (143 | ) | (1,872 | ) | (3,246 | ) | (5,261 | ) | ||||||||||||||||
- Cash dividends declared and paid ($2.35 per share) | (44,778 | ) | (44,778 | ) | ||||||||||||||||||||
- Fair value of financial instruments | 3,666 | 3,666 | 3,666 | |||||||||||||||||||||
- Fair value of investments | 3,072 | 3,072 | 3,072 | |||||||||||||||||||||
- Reclassification of gains on undesignated cash flow hedges | (5,087 | ) | (5,087 | ) | (5,087 | ) | ||||||||||||||||||
Comprehensive income | $ | 198,055 | ||||||||||||||||||||||
BALANCE, December 31, 2006 | $ | 19,040 | $ | 267,430 | $ | 4,718 | $ | 464,085 | $ | 755,273 | ||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
F-4
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEAR AND THE THREE MONTHS ENDED DECEMBER 31, 2006 AND 2005
(Expressed in thousands of U.S. Dollars)
Year ended December 31, | Three months ended December 31, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
(Unaudited) | (Audited) | (Unaudited) | (Unaudited) | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 196,404 | $ | 161,755 | $ | 77,114 | $ | 60,834 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 59,058 | 35,697 | 16,980 | 9,069 | ||||||||||||
Amortization of deferred dry-docking costs | 4,857 | 6,583 | 1,036 | 2,801 | ||||||||||||
Amortization of loan fees | 1,495 | 1,034 | 640 | 583 | ||||||||||||
Amortization of deferred income | (3,168 | ) | (4,842 | ) | (793 | ) | (792 | ) | ||||||||
Change in fair value of interest rate swaps | 556 | (2,584 | ) | 1,873 | (1,370 | ) | ||||||||||
Change in fair value of investments | (4,018 | ) | (2,122 | ) | (3,490 | ) | (2,122 | ) | ||||||||
Payments for dry-docking | (4,903 | ) | (9,279 | ) | (1,374 | ) | 1,579 | |||||||||
Gain on sale of vessels | (38,009 | ) | (45,305 | ) | (24,688 | ) | (20,500 | ) | ||||||||
Gain on sale of shares in subsidiary | (25,323 | ) | — | (25,323 | ) | — | ||||||||||
Minority Interest | 2 | — | 2 | — | ||||||||||||
Gain on sale of investments | (561 | ) | — | (66 | ) | — | ||||||||||
(Increase) Decrease in: | ||||||||||||||||
Receivables | (12 | ) | 7,731 | 3,913 | (4,718 | ) | ||||||||||
Inventories | (3,025 | ) | (1,347 | ) | 906 | 674 | ||||||||||
Prepaid insurance and other | (657 | ) | (16 | ) | 2,524 | 1,793 | ||||||||||
Increase (Decrease) in: | ||||||||||||||||
Accounts payable | 9,253 | (3,632 | ) | (6,092 | ) | (7,319 | ) | |||||||||
Accrued liabilities | 16,306 | 4,333 | (153 | ) | 3,979 | |||||||||||
Unearned revenue | 6,743 | (1,103 | ) | 5,407 | (22 | ) | ||||||||||
Net Cash from Operating Activities | 214,998 | 146,903 | 48,416 | 44,469 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Advances for vessels under construction and acquisitions | (152,767 | ) | (70,705 | ) | 5,036 | (26,084 | ) | |||||||||
Vessel acquisitions and/or improvements | (813,243 | ) | (175,429 | ) | (106,837 | ) | (1,722 | ) | ||||||||
Investments | (4,992 | ) | (19,999 | ) | (1 | ) | (4,326 | ) | ||||||||
Proceeds from sale of investments | 27,647 | — | 11,545 | — | ||||||||||||
Proceeds from sale of shares in subsidiary | 25,323 | — | 25,323 | — | ||||||||||||
Proceeds from sale of vessels | 88,706 | 157,164 | 57,215 | 55,241 | ||||||||||||
Net Cash (used in) from Investing Activities | (829,326 | ) | (108,969 | ) | (7,719 | ) | 23,109 | |||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term debt | 992,282 | 330,685 | 118,000 | 75,450 | ||||||||||||
Financing costs | (2,972 | ) | (2,603 | ) | (692 | ) | (1,057 | ) | ||||||||
Payments of long-term debt | (292,140 | ) | (262,330 | ) | (96,301 | ) | (98,387 | ) | ||||||||
Proceeds from exercise of stock options | 71 | 221 | 12 | 48 | ||||||||||||
(Increase)/decrease in restricted cash | (4,076 | ) | 1,182 | (3,216 | ) | (249 | ) | |||||||||
Repurchase and cancellation of common stock | (5,261 | ) | (37,756 | ) | (528 | ) | (9,498 | ) | ||||||||
Cash dividend | (44,778 | ) | (38,486 | ) | (23,800 | ) | (19,326 | ) | ||||||||
Net Cash from (used in) Financing Activities | 643,126 | (9,087 | ) | (6,525 | ) | (53,019 | ) | |||||||||
Net increase in cash and cash equivalents | 28,798 | 28,847 | 34,172 | 14,559 | ||||||||||||
Cash and cash equivalents at beginning of period | 145,769 | 116,922 | 140,395 | 131,210 | ||||||||||||
Cash and cash equivalents at end of period | $ | 174,567 | $ | 145,769 | $ | 174,567 | $ | 145,769 | ||||||||