Exhibit 99.1
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Expressed in thousands of U.S. Dollars - except per share data)
Three months ended September 30, | ||||||||
2007 | 2006 | |||||||
VOYAGE REVENUES: | $ | 122,546 | $ | 115,168 | ||||
EXPENSES: | ||||||||
Commissions | 4,444 | 4,019 | ||||||
Voyage expenses | 20,933 | 17,609 | ||||||
Charter hire expense | 3,227 | 6,149 | ||||||
Vessel operating expenses | 28,064 | 19,815 | ||||||
Depreciation | 21,279 | 16,604 | ||||||
Amortization of deferred dry-docking costs | 1,324 | 1,056 | ||||||
Management fees | 2,551 | 1,971 | ||||||
General and administrative expenses | 488 | 647 | ||||||
Staff compensation expense | 1,639 | — | ||||||
Foreign currency losses/(gains) | 102 | 37 | ||||||
Amortization of deferred gain on sale of vessels | (792 | ) | (792 | ) | ||||
Gain on sale of vessels, net | (31,792 | ) | (13,321 | ) | ||||
Total expenses | 51,467 | 53,794 | ||||||
Operating income | 71,079 | 61,374 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (23,556 | ) | (18,409 | ) | ||||
Interest income | 2,518 | 1,648 | ||||||
Other, net | 789 | (119 | ) | |||||
Total other income (expenses), net | (20,249 | ) | (16,880 | ) | ||||
MINORITY INTEREST | (835 | ) | — | |||||
Net Income | $ | 49,995 | $ | 44,494 | ||||
Earnings per share, basic | $ | 1.31 | $ | 1.17 | ||||
Earnings per share, diluted | $ | 1.31 | $ | 1.17 | ||||
Weighted average number of shares, basic | 38,084,938 | 38,101,482 | ||||||
Weighted average number of shares, diluted | 38,300,858 | 38,114,490 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Expressed in thousands of U.S. Dollars - except per share data)
Nine months ended September 30, | ||||||||
2007 | 2006 | |||||||
VOYAGE REVENUES: | $ | 369,676 | $ | 316,063 | ||||
EXPENSES: | ||||||||
Commissions | 13,239 | 11,619 | ||||||
Voyage expenses | 55,544 | 55,030 | ||||||
Charter hire expense | 11,823 | 18,312 | ||||||
Vessel operating expenses | 76,844 | 52,438 | ||||||
Depreciation | 59,967 | 42,078 | ||||||
Amortization of deferred dry-docking costs | 3,153 | 3,821 | ||||||
Management fees | 7,240 | 5,153 | ||||||
General and administrative expenses | 2,374 | 2,102 | ||||||
Staff compensation expense | 3,923 | — | ||||||
Foreign currency losses/(gains) | 249 | 111 | ||||||
Amortization of deferred gain on sale of vessels | (2,376 | ) | (2,376 | ) | ||||
Gain on sale of vessels, net | (38,189 | ) | (13,321 | ) | ||||
Total expenses | 193,791 | 174,967 | ||||||
Operating income | 175,885 | 141,096 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (53,908 | ) | (27,727 | ) | ||||
Interest income | 10,787 | 4,518 | ||||||
Other, net | 714 | 1,403 | ||||||
Total other income (expenses), net | (42,407 | ) | (21,806 | ) | ||||
MINORITY INTEREST | (2,493 | ) | — | |||||
Net Income | $ | 130,985 | $ | 119,290 | ||||
Earnings per share, basic | $ | 3.44 | $ | 3.13 | ||||
Earnings per share, diluted | $ | 3.43 | $ | 3.13 | ||||
Weighted average number of shares, basic | 38,081,492 | 38,143,822 | ||||||
Weighted average number of shares, diluted | 38,197,906 | 38,159,686 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2006 AND THE NINE-MONTHS ENDED SEPTEMBER 30, 2007
(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, 2006 | $ | 38,354 | $ | 269,237 | $ | 3,067 | $ | 296,528 | $ | 607,186 | ||||||||||||||
Net income | 196,404 | 196,404 | 196,404 | |||||||||||||||||||||
- Exercise of stock options | 12 | 65 | (6 | ) | 71 | |||||||||||||||||||
- Repurchase and cancellation of common stock (286,400 shares) | (286 | ) | (1,872 | ) | (3,103 | ) | (5,261 | ) | ||||||||||||||||
- Cash dividends declared and paid ($1.175 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 | $ | 38,080 | $ | 267,430 | $ | 4,718 | $ | 445,045 | $ | 755,273 | ||||||||||||||
Net income | 130,985 | 130,985 | 130,985 | |||||||||||||||||||||
- Repurchase and cancellation of common stock (41,600 shares) | (42 | ) | (270 | ) | (1,026 | ) | (1,338 | ) | ||||||||||||||||
- Issuance of 21,000 shares of restricted share units | 21 | (11 | ) | (10 | ) | — | ||||||||||||||||||
- Cash dividends declared ($0.825 per share) | (31,399 | ) | (31,399 | ) | ||||||||||||||||||||
- Cash dividends declared and paid ($0.75 per share) | (28,559 | ) | (28,559 | ) | ||||||||||||||||||||
- Fair value of financial instruments | (11,679 | ) | (11,679 | ) | (11,679 | ) | ||||||||||||||||||
- Fair value of investments | (3,072 | ) | (3,072 | ) | (3,072 | ) | ||||||||||||||||||
- Amortization of restricted share units | 4,140 | 4,140 | ||||||||||||||||||||||
Comprehensive income | $ | 116,234 | ||||||||||||||||||||||
BALANCE, September 30, 2007 | $ | 38,059 | $ | 271,289 | $ | (10,033 | ) | $ | 515,036 | $ | 814,351 | |||||||||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2007 and DECEMBER 31, 2006
(Expressed in thousands of U.S. Dollars - except per share data)
September 30, 2007 | December 31, 2006 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 189,836 | $ | 174,567 | ||||
Restricted cash | 4,528 | 4,347 | ||||||
Receivables- | ||||||||
Trade accounts receivable, net | 15,233 | 15,425 | ||||||
Insurance claims | 10,733 | 1,865 | ||||||
Due from related companies | 1,859 | — | ||||||
Advances and other | 7,660 | 5,480 | ||||||
Assets held for sale | 56,480 | — | ||||||
91,965 | 22,770 | |||||||
Inventories | 12,091 | 8,431 | ||||||
Prepaid insurance and other | 6,690 | 3,020 | ||||||
Financial instruments-Fair value | 2,417 | 9,358 | ||||||
Total current assets | 307,527 | 222,493 | ||||||
INVESTMENTS | — | 14,045 | ||||||
FIXED ASSETS: | ||||||||
Advances for vessels under construction | 143,552 | 261,242 | ||||||
Vessels | 2,122,109 | 1,649,928 | ||||||
Accumulated depreciation | (205,920 | ) | (191,281 | ) | ||||
Vessels’ Net Book Value | 1,916,189 | 1,458,647 | ||||||
Total fixed assets | 2,059,741 | 1,719,889 | ||||||
DEFERRED CHARGES, net | 17,076 | 13,448 | ||||||
Total assets | $ | 2,384,344 | $ | 1,969,875 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term debt | $ | 74,966 | $ | 23,117 | ||||
Accounts payable- | ||||||||
Trade | 33,844 | 20,211 | ||||||
Due to related companies | 9,821 | 2,414 | ||||||
Dividend declared | 31,399 | — | ||||||
Other | 501 | 2,044 | ||||||
75,565 | 24,669 | |||||||
Accrued liabilities | 17,594 | 18,218 | ||||||
Accrued bank interest | 25,410 | 13,705 | ||||||
Unearned revenue | 6,416 | 12,075 | ||||||
Deferred income, current portion | 3,168 | 5,821 | ||||||
Financial instruments - Fair value | 12,101 | 3,825 | ||||||
Total current liabilities | 215,220 | 101,430 | ||||||
LONG-TERM DEBT, net of current portion | 1,352,027 | 1,110,544 | ||||||
DEFERRED INCOME, net of current portion | 251 | 2,626 | ||||||
MINORITY INTERESTS | 2,495 | 2 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock, $ 1.00 par value; 100,000,000 shares authorized; 38,059,142 and 38,079,742 issued and outstanding at September 30, 2007 and December 31, 2006, respectively. | 38,059 | 38,080 | ||||||
Additional paid-in capital | 271,289 | 267,430 | ||||||
Other comprehensive income | (10,033 | ) | 4,718 | |||||
Retained earnings | 515,036 | 445,045 | ||||||
Total stockholders’ equity | 814,351 | 755,273 | ||||||
Total liabilities and stockholders’ equity | $ | 2,384,344 | $ | 1,969,875 | ||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS AND THE THREE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(Expressed in thousands of U.S. Dollars)
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 130,985 | $ | 119,290 | $ | 49,995 | $ | 44,491 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 59,967 | 42,078 | 21,279 | 16,604 | ||||||||||||
Amortization of deferred dry-docking costs | 3,153 | 3,821 | 1,324 | 1,056 | ||||||||||||
Amortization of loan fees | 689 | 855 | 177 | (409 | ) | |||||||||||
Amortization of deferred income | (2,375 | ) | (2,375 | ) | (791 | ) | (792 | ) | ||||||||
Amortization of restricted share units | 3,923 | — | 1,423 | — | ||||||||||||
Change in fair value of interest rate swaps | 3,539 | (1,317 | ) | 4,815 | 4,916 | |||||||||||
Change in fair value of investments | (3,072 | ) | (528 | ) | — | (447 | ) | |||||||||
Payments for dry-docking | (8,556 | ) | (3,529 | ) | (5,736 | ) | (2,065 | ) | ||||||||
Gain on sale of vessels, net | (38,189 | ) | (13,321 | ) | (31,792 | ) | (13,321 | ) | ||||||||
Minority Interests | 2,493 | — | 835 | — | ||||||||||||
Gain on sale of investments | (1,158 | ) | (495 | ) | — | — | ||||||||||
(Increase) Decrease in: | — | |||||||||||||||
Receivables | (12,715 | ) | (3,925 | ) | (6,684 | ) | 3,396 | |||||||||
Inventories | (3,660 | ) | (3,931 | ) | 155 | 1,610 | ||||||||||
Prepaid insurance and other | (3,670 | ) | (3,181 | ) | 2,654 | 1,468 | ||||||||||
Increase (Decrease) in: | ||||||||||||||||
Accounts payable | 19,497 | 15,345 | 7,851 | (1,592 | ) | |||||||||||
Accrued liabilities | 12,030 | 16,459 | (404 | ) | 10,347 | |||||||||||
Unearned revenue | (5,659 | ) | 1,336 | (2,222 | ) | (492 | ) | |||||||||
Net Cash from Operating Activities | 157,222 | 166,582 | 42,879 | 64,770 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Advances for vessels under construction and acquisitions | (84,903 | ) | (157,803 | ) | (7,616 | ) | 9,300 | |||||||||
Vessel acquisitions and/or improvements | (417,816 | ) | (706,406 | ) | (31,766 | ) | (75,946 | ) | ||||||||
Investments | — | (4,991 | ) | — | ||||||||||||
Proceeds from sale of investments | 15,203 | 16,102 | — | — | ||||||||||||
Proceeds from sale of shares in subsidiary | — | — | — | — | ||||||||||||
Proceeds from sale of vessels | 82,830 | 31,491 | 59,919 | 31,491 | ||||||||||||
Net Cash (used in)/from Investing Activities | (404,686 | ) | (821,607 | ) | 20,537 | (35,155 | ) | |||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term debt | 342,345 | 874,282 | 21,661 | 30,000 | ||||||||||||
Financing costs | (521 | ) | (2,280 | ) | (15 | ) | (73 | ) | ||||||||
Payments of long-term debt | (49,013 | ) | (195,839 | ) | (40,064 | ) | (2,405 | ) | ||||||||
Proceeds from exercise of stock options | — | 59 | — | 12 | ||||||||||||
Increase in restricted cash | (181 | ) | (860 | ) | 2,427 | 1,808 | ||||||||||
Repurchase and cancellation of common stock | (1,338 | ) | (4,733 | ) | (1,338 | ) | ||||||||||
Cash dividend | (28,559 | ) | (20,978 | ) | — | |||||||||||
Net Cash from/(used in) Financing Activities | 262,733 | 649,651 | (17,329 | ) | 29,342 | |||||||||||
Net increase (decrease) in cash and cash equivalents | 15,269 | (5,374 | ) | 46,087 | 58,957 | |||||||||||
Cash and cash equivalents at beginning of period | 174,567 | 145,769 | 143,749 | 81,438 | ||||||||||||
Cash and cash equivalents at end of period | $ | 189,836 | $ | 140,395 | $ | 189,836 | $ | 140,395 | ||||||||
Interest paid | ||||||||||||||||
Cash paid for interest, net of amounts capitalized | 37,585 | 12,006 | 9,312 | 3,945 |