Exhibit 99.1
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2008 and DECEMBER 31, 2007
(Expressed in thousands of U.S. Dollars – except per share data)
September 30, | December 31, | |||||||
2008 | 2007 | |||||||
ASSETS | (Unaudited) | (Audited) | ||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 368,328 | $ | 181,447 | ||||
Restricted cash | 4,828 | 6,889 | ||||||
Accounts receivable, net | 17,256 | 23,411 | ||||||
Insurance claims | 10,200 | 13,120 | ||||||
Due from related companies | 1,429 | 972 | ||||||
Advances and other | 11,075 | 5,359 | ||||||
Vessel held for sale | — | 27,535 | ||||||
Inventories | 16,627 | 12,099 | ||||||
Prepaid insurance and other | 6,591 | 4,030 | ||||||
Financial instruments-Fair value | — | 1,191 | ||||||
Total current assets | 436,334 | 276,053 | ||||||
INVESTMENTS | 1,000 | 1,000 | ||||||
FIXED ASSETS: | ||||||||
Advances for vessels under construction | 96,338 | 169,739 | ||||||
Vessels | 2,247,098 | 2,127,704 | ||||||
Accumulated depreciation | (290,127 | ) | (227,521 | ) | ||||
Vessels’ Net Book Value | 1,956,971 | 1,900,183 | ||||||
Total fixed assets | 2,053,309 | 2,069,922 | ||||||
DEFERRED CHARGES, net | 18,224 | 15,801 | ||||||
Total assets | $ | 2,508,867 | $ | 2,362,776 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Current portion of long-term debt | $ | 67,935 | $ | 44,363 | ||||
Payables | 32,100 | 34,871 | ||||||
Due to related companies | 2,166 | 2,428 | ||||||
Dividend declared | 33,290 | — | ||||||
Accrued liabilities | 23,295 | 17,275 | ||||||
Accrued bank interest | 12,935 | 16,952 | ||||||
Unearned revenue | 16,553 | 11,939 | ||||||
Deferred income | — | 2,626 | ||||||
Financial instruments – Fair value | 38,097 | 28,811 | ||||||
Total current liabilities | 226,371 | 159,265 | ||||||
LONG-TERM DEBT, net of current portion | 1,341,517 | 1,345,580 | ||||||
MINORITY INTERESTS | 3,692 | 3,391 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock, $ 1.00 par value; 100,000,000 shares authorized; 37,671,392 issued at September 30, 2008 and 38,059,142 issued and outstanding at December 31, 2007. | 37,671 | 38,059 | ||||||
Additional paid-in capital | 274,852 | 273,036 | ||||||
Retained earnings | 665,897 | 567,220 | ||||||
978,420 | 878,315 | |||||||
Cost of treasury stock (352,900 shares) | 11,116 | — | ||||||
967,304 | 878,315 | |||||||
Accumulated other comprehensive loss | (30,017 | ) | (23,775 | ) | ||||
Total stockholders’ equity | 937,287 | 854,540 | ||||||
Total liabilities and stockholders’ equity | $ | 2,508,867 | $ | 2,362,776 | ||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Expressed in thousands of U.S. Dollars – except share and per share data)
Three months ended September 30 | ||||||||
2008 | 2007 | |||||||
VOYAGE REVENUES: | $ | 158,834 | $ | 122,546 | ||||
EXPENSES: | ||||||||
Commissions | 6,045 | 4,444 | ||||||
Voyage expenses | 28,435 | 20,933 | ||||||
Charter hire expense | 4,186 | 3,227 | ||||||
Vessel operating expenses | 34,941 | 28,064 | ||||||
Depreciation | 21,256 | 21,279 | ||||||
Amortization of deferred dry-docking costs | 1,165 | 1,324 | ||||||
Management fees | 2,988 | 2,551 | ||||||
General and administrative expenses | 1,053 | 488 | ||||||
Stock compensation expense | 1,157 | 1,639 | ||||||
Foreign currency losses | (158 | ) | 102 | |||||
Amortization of deferred gain on sale of vessels | 950 | (792 | ) | |||||
Gain on sale of vessels | — | (31,792 | ) | |||||
Total expenses | 102,018 | 51,467 | ||||||
Operating income | 56,816 | 71,079 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (17,185 | ) | (23,556 | ) | ||||
Interest and investment income | 2,108 | 2,518 | ||||||
Other, net | 15 | 789 | ||||||
Total other income (expenses), net | (15,062 | ) | (20,249 | ) | ||||
MINORITY INTEREST | (771 | ) | (835 | ) | ||||
Net Income | $ | 40,983 | $ | 49,995 | ||||
Earnings per share, basic | $ | 1.09 | $ | 1.31 | ||||
Earnings per share, diluted | $ | 1.08 | $ | 1.31 | ||||
Weighted average number of shares, basic | 37,616,515 | 38,084,938 | ||||||
Weighted average number of shares, diluted | 38,026,595 | 38,300,858 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Expressed in thousands of U.S. Dollars – except share and per share data)
Nine months ended September 30 | ||||||||
2008 | 2007 | |||||||
VOYAGE REVENUES: | $ | 466,987 | $ | 369,676 | ||||
EXPENSES: | ||||||||
Commissions | 17,061 | 13,239 | ||||||
Voyage expenses | 63,258 | 55,544 | ||||||
Charter hire expense | 12,467 | 11,823 | ||||||
Vessel operating expenses | 104,772 | 76,844 | ||||||
Depreciation | 62,606 | 59,967 | ||||||
Amortization of deferred dry-docking costs | 3,827 | 3,153 | ||||||
Management fees | 8,888 | 7,240 | ||||||
General and administrative expenses | 3,158 | 2,374 | ||||||
Stock compensation expense | 4,246 | 3,923 | ||||||
Foreign currency losses | 592 | 249 | ||||||
Amortization of deferred gain on sale of vessels | (634 | ) | (2,376 | ) | ||||
Gain on sale of vessels | (34,565 | ) | (38,189 | ) | ||||
Total expenses | 245,676 | 193,791 | ||||||
Operating income | 221,311 | 175,885 | ||||||
OTHER INCOME (EXPENSES): | ||||||||
Interest and finance costs, net | (51,929 | ) | (53,908 | ) | ||||
Interest and investment income | 6,120 | 10,787 | ||||||
Other, net | 116 | 714 | ||||||
Total other income (expenses), net | (45,693 | ) | (42,407 | ) | ||||
MINORITY INTEREST | (301 | ) | (2,493 | ) | ||||
Net Income | $ | 175,317 | $ | 130,985 | ||||
Earnings per share, basic | $ | 4.64 | $ | 3.44 | ||||
Earnings per share, diluted | $ | 4.60 | $ | 3.43 | ||||
Weighted average number of shares, basic | 37,744,030 | 38,081,492 | ||||||
Weighted average number of shares, diluted | 38,143,274 | 38,197,906 | ||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE PERIODS ENDED SEPTEMBER 30, 2008 AND 2007
(Expressed in thousands of U.S. Dollars—except share and per share data)
Comprehensive Income (Loss) | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stock- Holders’ Equity | ||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||
BALANCE, January 1, 2007 | $ | 19,040 | $ | 267,430 | $ | 4,718 | $ | 464,085 | $ | 755,273 | ||||||||||||||||||||
Net income | 130,985 | 130,985 | 130,985 | |||||||||||||||||||||||||||
- Repurchase and cancellation of common stock (41,600 shares) | (21 | ) | (270 | ) | (1,047 | ) | (1,338 | ) | ||||||||||||||||||||||
- Issuance of 21,000 shares of restricted share units | 10 | (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 | 953 | 953 | 953 | |||||||||||||||||||||||||||
- Reclassification upon sale of investments | (4,025 | ) | (4,025 | ) | (4,025 | ) | ||||||||||||||||||||||||
- Amortization of restricted share units | 4,140 | 4,140 | ||||||||||||||||||||||||||||
Comprehensive income | $ | 116,234 | ||||||||||||||||||||||||||||
BALANCE, September 30, 2007 | $ | 19,029 | $ | 271,290 | $ | (10,033 | ) | $ | 534,065 | $ | 814,351 | |||||||||||||||||||
BALANCE, January 1, 2008 | $ | 38,059 | $ | 273,036 | $ | (23,775 | ) | $ | 567,220 | $ | 854,540 | |||||||||||||||||||
Net income | 175,317 | 175,317 | 175,317 | |||||||||||||||||||||||||||
- Repurchase and cancellation of common stock (392,400 shares) | (393 | ) | (2,425 | ) | (9,414 | ) | (12,232 | ) | ||||||||||||||||||||||
- Purchases of Treasury stock (352,900 shares) | 353 | (11,116 | ) | (11,116 | ) | |||||||||||||||||||||||||
- Issuance of 4,650 shares of restricted share units | 5 | (5 | ) | — | ||||||||||||||||||||||||||
- Cash dividends declared and paid ($0.90 per share) | (33,936 | ) | (33,936 | ) | ||||||||||||||||||||||||||
- Cash dividends declared ($0.90 per share) | (33,290 | ) | (33,290 | ) | ||||||||||||||||||||||||||
- Fair value of financial instruments | (6,242 | ) | (6,242 | ) | (6,242 | ) | ||||||||||||||||||||||||
- Amortization of restricted share units | 4,246 | 4,246 | ||||||||||||||||||||||||||||
Comprehensive income | $ | 169,075 | ||||||||||||||||||||||||||||
BALANCE, September 30, 2008 | $ | 37,671 | $ | 274,852 | 353 | $ | (11,116 | ) | $ | (30,017 | ) | $ | 665,897 | $ | 937,287 | |||||||||||||||
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007
(Expressed in thousands of U.S. Dollars)
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 175,317 | $ | 130,985 | $ | 40,983 | $ | 49,995 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation | 62,606 | 59,967 | 21,256 | 21,279 | ||||||||||||
Amortization of deferred dry-docking costs | 3,827 | 3,153 | 1,165 | 1,324 | ||||||||||||
Amortization of loan fees | 676 | 689 | 200 | 177 | ||||||||||||
Amortization of deferred income | (634 | ) | (2,375 | ) | 950 | (791 | ) | |||||||||
Amortization of restricted share units | 4,246 | 3,923 | 1,157 | 1,423 | ||||||||||||
Change in fair value of interest rate swaps | 4,235 | 3,539 | 786 | 4,815 | ||||||||||||
Change in fair value of investments | — | (3,072 | ) | — | — | |||||||||||
Gain on sale of vessels | (34,565 | ) | (38,189 | ) | — | (31,792 | ) | |||||||||
Minority interest | 301 | 2,493 | 771 | 835 | ||||||||||||
Gain on sale of investments | — | (1,158 | ) | — | — | |||||||||||
Payments for dry-docking | (6,759 | ) | (8,556 | ) | (2,317 | ) | (5,736 | ) | ||||||||
(Increase) Decrease in: | ||||||||||||||||
Receivables | 2,902 | (12,715 | ) | (851 | ) | (6,684 | ) | |||||||||
Inventories | (4,528 | ) | (3,660 | ) | (823 | ) | 155 | |||||||||
Prepaid insurance and other | (2,561 | ) | (3,670 | ) | 3,353 | 2,654 | ||||||||||
Increase (Decrease) in: | ||||||||||||||||
Payables | (3,033 | ) | 19,497 | (8,224 | ) | 7,851 | ||||||||||
Accrued liabilities | 2,003 | 12,030 | 6,917 | (404 | ) | |||||||||||
Unearned revenue | 4,614 | (5,659 | ) | 8,843 | (2,222 | ) | ||||||||||
Net Cash provided by Operating Activities | 208,647 | 157,222 | 74,166 | 42,879 | ||||||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Advances for vessels under construction and acquisitions | (20,353 | ) | (84,903 | ) | (17,493 | ) | (7,616 | ) | ||||||||
Vessel acquisitions and/or improvements | (27,632 | ) | (417,816 | ) | (190 | ) | (31,766 | ) | ||||||||
Proceeds from sale of investments | — | 15,203 | — | — | ||||||||||||
Proceeds from sale of vessels | 62,100 | 82,830 | — | 59,919 | ||||||||||||
Net Cash provided by/(used in) Investing Activities | 14,115 | (404,686 | ) | (17,683 | ) | 20,537 | ||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from long-term debt | 52,025 | 342,345 | 27,729 | 21,661 | ||||||||||||
Financing costs | (167 | ) | (521 | ) | — | (15 | ) | |||||||||
Payments of long-term debt | (32,516 | ) | (49,013 | ) | (10,940 | ) | (40,064 | ) | ||||||||
Increase/(decrease) in restricted cash | 2,061 | (181 | ) | 1,876 | 2,427 | |||||||||||
Repurchase and cancellation of common stock | (12,232 | ) | (1,338 | ) | — | (1,338 | ) | |||||||||
Purchase of treasury stock | (11,116 | ) | (11,116 | ) | — | |||||||||||
Cash dividend | (33,936 | ) | (28,559 | ) | — | — | ||||||||||
Net Cash (used in)/provided by Financing Activities | (35,881 | ) | 262,733 | 7,549 | (17,329 | ) | ||||||||||
Net increase in cash and cash equivalents | 186,881 | 15,269 | 64,032 | 46,087 | ||||||||||||
Cash and cash equivalents at beginning of period | 181,447 | 174,567 | 304,296 | 143,749 | ||||||||||||
Cash and cash equivalents at end of period | $ | 368,328 | $ | 189,836 | $ | 368,328 | $ | 189,836 | ||||||||