EX-99.2 4 dex992.htm CONSOLIDATED FINANCIAL STATEMENT Consolidated Financial Statement
 
 
EXHIBIT 2
 

 
 
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS AND THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Expressed in thousands of U.S. Dollars)
 
 
    
Nine months ended
September 30,
     
Three months ended September 30,
  
    
2002
     
2001
     
2002
     
2001
  
Cash Flows from Operating Activities:
                                    
Net income
   
$
8,666
 
   
$
20,168
 
   
$
858
 
   
$
3,252
 
Adjustments to reconcile net income to net cash provided by operating activities:
                                    
Depreciation
   
 
17,345
 
   
 
15,891
 
   
 
6,397
 
   
 
5,362
 
Amortization of deferred dry-docking costs
   
 
3,091
 
   
 
3,747
 
   
 
911
 
   
 
1,424
 
Amortization of loan fees
   
 
169
 
   
 
134
 
   
 
29
 
   
 
(369
)
Amortization of deferred income
   
 
(628
)
   
 
(630
)
   
 
(209
)
   
 
(211
)
Interest expense, net of capitalized interest
   
 
8,664
 
   
 
12,127
 
   
 
4,275
 
   
 
3,213
 
Fair value adjustment of interest rate financial instruments
   
 
3,139
 
   
 
3,770
 
   
 
765
 
   
 
3,770
 
Payments for dry-docking
   
 
(6,151
)
   
 
(2,741
)
   
 
(4,264
)
   
 
(174
)
(Increase) Decrease in:
                                    
Accounts receivables
   
 
(1,980
)
   
 
(5,157
)
   
 
1,918
 
   
 
(3,526
)
Inventories
   
 
(1,414
)
   
 
(250
)
   
 
(890
)
   
 
(333
)
Prepayments and other
   
 
(324
)
   
 
(154
)
   
 
(612
)
   
 
(69
)
Increase (Decrease) in:
                                    
Accounts payable
   
 
2,514
 
   
 
(220
)
   
 
3,321
 
   
 
1,590
 
Accrued liabilities
   
 
(804
)
   
 
984
 
   
 
(1,067
)
   
 
109
 
Unearned revenue
   
 
(150
)
   
 
707
 
   
 
(1,994
)
   
 
(989
)
Stock options granted
   
 
—  
 
   
 
258
 
   
 
—  
 
   
 
34
 
Interest paid, net of capitalized interest
   
 
(9,356
)
   
 
(16,168
)
   
 
(2,917
)
   
 
(3,018
)
    
  
  
  
Net Cash from Operating Activities
   
 
22,781
 
   
 
32,466
 
   
 
6,521
 
   
 
10,065
 
    
  
  
  
Cash Flows from Investing Activities:
                                    
Advances for vessels under construction
   
 
(35,611
)
   
 
(18,139
)
   
 
10,942
 
   
 
(1,384
)
Vessel acquisitions and/or improvements
   
 
(136,378
)
   
 
(169
)
   
 
(48,622
)
   
 
2
 
Restricted cash for performance guarantee
   
 
815
 
   
 
—  
 
   
 
—  
 
   
 
—  
 
    
  
  
  
Net Cash from (used in) Investing Activities
   
 
(171,174
)
   
 
(18,308
)
   
 
(37,680
)
   
 
(1,382
)
    
  
  
  
Cash Flows from Financing Activities:
                                    
Proceeds from long-term debt
   
 
94,818
 
   
 
—  
 
   
 
32,118
 
   
 
—  
 
Financing costs
   
 
(295
)
   
 
—  
 
   
 
(140
)
   
 
—  
 
Payments and repayment of long-term debt
   
 
(43,002
)
   
 
(11,477
)
   
 
(1,526
)
   
 
(1,427
)
Proceeds from public offering, net
   
 
100,389
 
   
 
—  
 
   
 
—  
 
   
 
—  
 
Repurchase and cancellation of common stock
   
 
(1,366
)
   
 
(378
)
   
 
(1,366
)
   
 
—  
 
    
  
  
  
Net Cash from (used in) Financing Activities
   
 
150,544
 
   
 
(11,855
)
   
 
29,086
 
   
 
(1,427
)
    
  
  
  
Net increase (decrease) in cash and cash equivalents
   
 
2,150
 
   
 
2,303
 
   
 
(2,074
)
   
 
7,256
 
Cash and cash equivalents at beginning of period
   
 
33,274
 
   
 
29,770
 
   
 
37,498
 
   
 
24,817
 
    
  
  
  
Cash and cash equivalents at end of period
   
$
35,424
 
   
$
32,073
 
   
$
35,424
 
   
$
32,073
 
    
  
  
  

 
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
 
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2001 AND NINE-MONTHS ENDED SEPTEMBER 30, 2002
(Expressed in thousands of U.S. Dollars—except per share data)
 
 
      
Comprehensive Income
   
Common Stock
     
Additional Paid-in Capital
     
Retained Earnings
   
Total
  
BALANCE, January 1, 2001
            
$
9,659
 
   
$
108,693
 
   
$
28,220
   
$
146,572
 
Net income
     
$
24,616
   
 
—  
 
   
 
—  
 
   
 
24,616
   
 
24,616
 
Issuance of Stock Options
     
 
—  
   
 
—  
 
   
 
258
 
   
 
—  
   
 
258
 
Repurchase and cancellation of
                                           
common stock (30,000 shares)
     
 
—  
   
 
(30
)
   
 
(348
)
   
 
—  
   
 
(378
)
      
                                 
Comprehensive income
     
 
24,616
                                  
      
                                 
BALANCE, December 31, 2001
            
 
9,629
 
   
 
108,603
 
   
 
52,836
   
 
171,068
 
Net income
     
 
8,666
   
 
—  
 
   
 
—  
 
   
 
8,666
   
 
8,666
 
Issuance of common stock
     
 
—  
   
 
7,350
 
   
 
102,900
 
   
 
—  
   
 
110,250
 
Expenses related to the issuance
                                     
 
—  
 
of common stock
     
 
—  
   
 
—  
 
   
 
(9,861
)
   
 
—  
   
 
(9,861
)
Repurchase and cancellation of
                                           
common stock (121,000 shares)
            
 
(121
)
   
 
(1,245
)
   
 
—  
   
 
(1,366
)
      
                                 
Comprehensive income
     
$
8,666
                                  
      
                                 
             
  
  
  
BALANCE, September 30, 2002
            
$
16,858
 
   
$
200,397
 
   
$
61,502
   
$
278,757
 
             
  
  
  

2

 
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
 
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2002 and DECEMBER 31, 2001
(Expressed in thousands of U.S. Dollars—except per share data)
 
 
    
September 30,
     
December 31,
  
ASSETS
   
2002
     
2001
  
CURRENT ASSETS:
                
Cash and cash equivalents
   
$
35,424
 
   
33,274
 
    
  
Receivables-
                
Trade accounts receivable
   
 
3,898
 
   
4,997
 
Insurance claims
   
 
4,471
 
   
2,624
 
Advances and other
   
 
5,542
 
   
4,310
 
    
  
    
 
13,911
 
   
11,931
 
    
  
Inventories
   
 
2,842
 
   
1,428
 
Prepayments and other
   
 
1,760
 
   
1,436
 
    
  
Total current assets
   
 
53,937
 
   
48,069
 
    
  
CASH, RESTRICTED
   
 
7,000
 
   
7,815
 
FIXED ASSETS:
                
Advances for vessels under construction
   
 
68,619
 
   
33,008
 
    
  
Vessels
   
 
589,982
 
   
453,604
 
Accumulated depreciation
   
 
(125,486
)
   
(108,141
)
    
  
Net Book Value
   
 
464,496
 
   
345,463
 
    
  
Total fixed assets
   
 
533,115
 
   
378,471
 
    
  
DEFERRED CHARGES, net
   
 
13,092
 
   
9,906
 
    
  
Total assets
   
$
607,144
 
   
444,261
 
    
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
CURRENT LIABILITIES:
                
Current portion of long-term debt
   
$
7,725
 
   
21,972
 
    
  
Accounts payable-
                
Trade
   
 
11,650
 
   
8,883
 
Other
   
 
867
 
   
838
 
    
  
    
 
12,517
 
   
10,003
 
    
  
Accrued liabilities
   
 
2,997
 
   
3,801
 
Accrued bank interest
   
 
2,211
 
   
2,903
 
Financial instruments, fair value
   
 
6,526
 
   
3,387
 
Unearned revenue
   
 
1,649
 
   
1,799
 
Deferred income, current portion
   
 
838
 
   
838
 
    
  
Total current liabilities
   
 
34,463
 
   
44,703
 
    
  
LONG-TERM DEBT, net of current portion
   
 
288,549
 
   
222,487
 
    
  
DEFERRED INCOME, net of current portion
   
 
5,375
 
   
6,003
 
    
  
CONTINGENCIES
   
 
—  
 
   
—  
 
STOCKHOLDERS’ EQUITY:
                
Common stock, $ 1.00 par value; 40,000,000 authorized at September 30, 2002 and December 31, 2001, respectively;16,857,857 and 9,628,857 issued and outstanding at September 30, 2002 and December 31, 2001, respectively
   
 
16,858
 
   
9,629
 
                 
                 
                 
Additional paid-in capital
   
 
200,397
 
   
108,603
 
Retained earnings
   
 
61,502
 
   
52,836
 
    
  
Total stockholders’ equity
   
 
278,757
 
   
171,068
 
    
  
Total liabilities and stockholders’ equity
   
$
607,144
 
   
444,261
 
    
  

3

 
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
 
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Expressed in thousands of U.S. Dollars—except per share data)
 
 
    
Three months ended September 30,
  
    
2002
     
2001
  
REVENUES:
                  
Revenue from vessels
   
$
29,771
 
   
$
32,137
 
Commissions
   
 
(1,373
)
   
 
(1,678
)
    
  
Revenue from vessels, net
   
 
28,398
 
   
 
30,459
 
    
  
EXPENSES:
                  
Voyage expenses
   
 
7,565
 
   
 
6,202
 
Vessel operating expenses
   
 
7,247
 
   
 
7,310
 
Depreciation
   
 
6,397
 
   
 
5,362
 
Amortization of deferred charges
   
 
911
 
   
 
1,424
 
Management fees
   
 
831
 
   
 
735
 
Stock option compensation expense
   
 
—  
 
   
 
34
 
General and administrative expenses
   
 
282
 
   
 
345
 
    
  
Operating income
   
 
5,165
 
   
 
9,047
 
    
  
OTHER INCOME (EXPENSES):
                  
Interest and finance costs, net
   
 
(4,436
)
   
 
(6,097
)
Interest Income
   
 
183
 
   
 
276
 
Foreign currency gains (losses)
   
 
(54
)
   
 
26
 
    
  
Total other income (expenses), net
   
 
(4,307
)
   
 
(5,795
)
    
  
Net Income
   
$
858
 
   
$
3,252
 
    
  
Earnings per share, basic
   
$
0.05
 
   
$
0.34
 
    
  
Earnings per share, diluted
   
$
0.05
 
   
$
0.33
 
    
  
Weighted average number of shares, basic
   
 
16,947,442
 
   
 
9,628,857
 
    
  
Weighted average number of shares, diluted
   
 
16,971,139
 
   
 
9,716,907
 
    
  

4

 
TSAKOS ENERGY NAVIGATION LIMITED AND SUBSIDIARIES
 
(FORMERLY MIF LIMITED AND SUBSIDIARIES)
 
CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Expressed in thousands of U.S. Dollars—except per share data)
 
    
Nine months ended
September 30,
  
    
2002
     
2001
  
REVENUES:
                  
Revenue from vessels
   
$
86,512
 
   
$
94,750
 
Commissions
   
 
(3,939
)
   
 
(4,795
)
    
  
Revenue from vessels, net
   
 
82,573
 
   
 
89,955
 
    
  
EXPENSES:
                  
Voyage expenses
   
 
20,975
 
   
 
15,014
 
Vessel operating expenses
   
 
20,377
 
   
 
19,584
 
Depreciation
   
 
17,345
 
   
 
15,891
 
Amortization of deferred charges
   
 
3,091
 
   
 
3,747
 
Management fees
   
 
2,324
 
   
 
2,349
 
Stock option compensation expense
   
 
—  
 
   
 
258
 
General and administrative expenses
   
 
697
 
   
 
789
 
    
  
Operating income
   
 
17,764
 
   
 
32,323
 
    
  
OTHER INCOME (EXPENSES):
                  
Interest and finance costs, net
   
 
(9,708
)
   
 
(13,143
)
Interest Income
   
 
659
 
   
 
986
 
Foreign currency gains (losses)
   
 
(49
)
   
 
2
 
    
  
Total other income (expenses), net
   
 
(9,098
)
   
 
(12,155
)
    
  
Net Income
   
$
8,666
 
   
$
20,168
 
    
  
Earnings per share, basic
   
$
0.57
 
   
$
2.09
 
    
  
Earnings per share, diluted
   
$
0.57
 
   
$
2.07
 
    
  
Weighted average number of shares, basic
   
 
15,245,193
 
   
 
9,636,165
 
    
  
Weighted average number of shares, diluted
   
 
15,268,891
 
   
 
9,742,188
 
    
  

5