IROC Energy Services Corp. Announces Increased Net Income and Filing of Second Quarter 2011 Financial Statements

/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES/

CALGARY, Aug. 15, 2011 /CNW/ - IROC Energy Services Corp. ("IROC" or the "Corporation") (TSXV: "ISC") is pleased to present a summary of its operating and financial results for the three and six months ended June 30, 2011.  For a complete copy of IROC's interim financial statements and management's discussion and analysis ("MD&A") please visit www.sedar.com.

Highlights for the three months ended June 30, 2011:

• Total revenue increased 32% to $14.3 million for the three months ended June 30, 2011 as compared to $10.8 million in the comparable period of the prior year.
• Gross margin increased 30% to $4.2 million for the three months ended June 30, 2011 as compared to $3.3 million in the comparable period of the prior year.
• EBITDAS increased 79% to $2.0 million for the three months ended June 30, 2011 as compared to $1.1 million in the comparable period of the prior year.
• Net loss decreased 65% to a $0.3 million loss for the three months ended June 30, 2011 as compared to a $0.9 million loss in the comparable period of the prior year.

Highlights for the six months ended June 30, 2011:

• Total revenue increased 52% to $41.0 million for the six months ended June 30, 2011 as compared to $27.1 million in the comparable period of the prior year.
• Gross margin increased 69% to $15.2 million for the six months ended June 30, 2011 as compared to $9.0 million in the comparable period of the prior year.
• EBITDAS increased 124% to $10.3 million for the six months ended June 30, 2011 as compared to $4.6 million in the comparable period of the prior year.
• Net income increased 3,536% to $4.1 million for the six months ended June 30, 2011 as compared to a $0.1 million loss in the comparable period of the prior year.

Operations

IROC's operations are reported in three segments; the Drilling and Production Services segment, the Technology Services segment and Corporate Services.  The following is a discussion of the reporting segments in which IROC operates.

DRILLING AND PRODUCTION SERVICES

The Drilling and Production Services segment provides services and rental equipment to oil and gas exploration, development and production companies with most of our customers and operations being located in western Canada, in the provinces of Alberta and Saskatchewan.

The Drilling and Production Services segment consists of two divisions:

Eagle Well Servicing ("Eagle") contracts service rigs to oil and gas companies to perform various completion, work-over and maintenance services on oil and natural gas wells.  Eagle has offices and equipment in Red Deer, Grande Prairie and Lloydminster in Alberta and an office and equipment in Estevan, Saskatchewan with equipment being used in those geographic areas.

Aero Rental Services ("Aero") provides rental equipment for surface pressure control in drilling and work-over operations and tubular handling equipment used for the work over, re-entry and completion operations.  Aero has an office in Red Deer, Alberta with equipment being rented for use primarily in Alberta.

			Three months ended
			June 30, 2011		March 31, 2011		December 31, 2010		September 30, 2010
Eagle Well Servicing:
	Number of service rigs (end of period)		36		36		35		35
	Service rig utilization		42%		78%		66%		57%
Aero Rental Services:
	Gross margin $000's		791		2,704		1,715		762
	Book value of rental equipment $000's		11,799		11,249		10,121		8,802
Commodity prices:
	NYMEX crude oil $US/bbl		102.60		94.08		85.17		76.20
	AECO Monthly index natural gas $CAD/GJ		3.54		3.58		3.39		3.52

			Three months ended
			June 30, 2010		March 31, 2010		December 31, 2009		September 30, 2009
Eagle Well Servicing:
	Number of service rigs (end of period)		35		36		36		36
	Service rig utilization		33%		55%		49%		34%
Aero Rental Services:
	Gross margin $000's		250		505		455 (1)		311 (1)
	Book value of rental equipment $000's		7,122		7,122		6,977		6,743
Commodity prices:
	NYMEX crude oil $US/bbl		78.03		78.72		76.19		68.30
	AECO Monthly index natural gas $CAD/GJ		3.66		5.08		4.01		2.87

^{(1)   Calculated in accordance with GAAP, see Accounting Policy Changes}

At June 30, 2011, Eagle had a fleet of 38 service rigs with 2 rigs having been delivered but not deployed in the field until early July, 2011.  Eagle's service rig fleet and equipment is amongst the newest in the industry.  All Eagle's service rigs are internally guyed with no requirement for external anchors.  This reduces set up time and corresponding costs when compared to anchored rigs. Subsequent to quarter end, in July, 2011 the Corporation has received one additional rig with a planned in service date of middle of August, for a total currently operational service rig fleet of 39 rigs.  In addition, three new service rigs are being built in 2011 with delivery of one rig expected in each of September, October and November, 2011.  Additional building slots have been secured for the start of our 2012 capital build program with the build of the first 2012 rig scheduled to commence in December, 2011.

Commodity prices are the main activity driver as the Corporation's customers' exploration and development programs are directly impacted by oil and natural gas prices.  Oil and gas producers spend capital on new wells and service operations when they are economic within the context of current and forecasted commodity prices.  Year over year, crude oil prices are stronger now than in the prior year and have been on an increasing trend for over two years since they bottomed in the first quarter of 2009 during the financial crisis.  For the past five quarters, natural gas prices have remained within a $3.00 to $4.00 range which is relatively weak in comparison to historic price levels over the preceding five years.  At recent price levels, natural gas development has been focused on resource type development projects and liquids rich reservoirs as much conventional shallow gas has not been economic.  Should there be a return to higher natural gas prices, as is starting to be predicted by some industry participants, the level of activity and demand for the Corporation's services is expected to increases across all business lines.

Service rig utilization, as measured by IROC's internal methodology, increased in the quarter to 42%, as compared to 33% in the comparative period of last year.  Our utilization percentage decreased by 36% as compared to the first quarter as activity levels were impacted by the seasonality of spring break up and wet weather conditions.  Certain areas are only accessible by service rigs and other heavy equipment during winter when the ground is frozen and this season saw colder weather than normal through to the end of the first quarter and into the first two weeks of the second quarter with an extended period of wet weather through much of the remainder of the second quarter.  Service rig activity for the six month period continued to be driven by horizontal drilling which has contributed to the increased utilization as exploration and production companies target oil production. The complexity of horizontal wells typically makes completion operations more time consuming and is starting to impact utilization percentages. Continuing high levels of activity in the heavy oil operations in the Lloydminster area also contributed to increased utilization during the quarter.

Aero Rental Services continues to have strong margin growth in the current year quarter as compared to the prior year quarter with a year over year quarterly increase of 216% and an increase of 363% for the year over year six month periods ended June 30.  This increasing gross margin is driven by three primary factors.  Firstly, higher oil prices have increased demand and utilization of certain types of equipment; secondly, the increased rental asset base in the current year as compared to the prior year; and thirdly, the decreasing percentage of fixed costs to total costs in the business as we start to more fully utilize the excess capacity which was available in our shop location's yard and buildings.

TECHNOLOGY SERVICES

The Technology Services segment is comprised solely of our Canada Tech division ("Canada Tech").  Canada Tech designs, develops, manufactures and sells or rents a wide line of tools and systems that measure pressures, temperatures and other attributes in the downhole and surface environment of oil and gas wells.

Canada Tech differs from our other divisions in that the capital requirement is smaller.  As a significant portion of Canada Tech's costs are fixed, increased sales volumes have a magnified effect on the EBITDAS of IROC.

Subsequent to quarter end, on July 14, 2011 IROC sold the business assets of its Canada Tech division. The assets sold consisted of inventory, prepaid expenses and deposits, intangible assets, and property and equipment.  Proceeds of sale consisted of cash consideration of approximately $4.8 million.  Canada Tech has been the only item reported in the Technology Services business segment since 2009.  The sale included the complete Canada Tech division with all existing division employees being offered continued employment by the purchaser.  The sale will be recorded in the third quarter.  The Company estimates the sale will result in a loss on disposal of approximately $1.6 million, relating primarily to the value of the intangible assets

CORPORATE SERVICES

IROC's non-operating segment, Corporate Services, captures general and administrative expenses associated with supporting each of the reporting segments operations noted above, plus costs associated with being a public company.  Also, included in Corporate Services is interest expense for debt servicing and income tax expense.

Comparison of results from the three and Six month periods ended June 30, 2011 to the same periods last year

Revenue

		Three months ended
$ 000's		June 30, 2011	June 30, 2010	Change $		Change %
Revenue:
	Eagle Well Servicing	9,552	6,642	2,910		44%
	Aero Rental Services	2,140	894	1,246		139%
	Total drilling & production services	11,692	7,536	4,156		55%
	Technology services (Canada Tech)	2,599	3,289	(690)		(21%)
Total revenue		14,291	10,825	3,466		32%

		Six months ended
$ 000's		June 30, 2011	June 30, 2010	Change $		Change %
Revenue:
	Eagle Well Servicing	29,230	18,373	10,857		59%
	Aero Rental Services	6,870	2,670	4,200		157%
	Total drilling & production services	36,100	21,043	15,057		72%
	Technology services (Canada Tech)	4,940	6,030	(1,090)		(18%)
Total revenue		41,040	27,073	13,967		52%

Operating Costs and Gross Margin

		Three months ended
$ 000's		June 30, 2011	June 30, 2010	Change $		Change %
Operating costs:
	Eagle Well Servicing	6,861	5,025	1,836		37%
	Aero Rental Services	1,349	644	705		109%
	Total drilling & production services	8,210	5,669	2,541		45%
	Technology services (Canada Tech)	1,833	1,894	(61)		(3%)
Total operating costs		10,043	7,563	2,480		33%
Gross margin:(1)
	Eagle Well Servicing	2,691	1,617	1,074		66%
	Aero Rental Services	791	250	541		216%
	Total drilling & production services	3,482	1,867	1,615		87%
	Technology services (Canada Tech)	766	1,395	(629)		(45%)
Total gross margin		4,248	3,262	986		30%
Gross margin %(1):
	Eagle Well Servicing	28%	24%			4%
	Aero Rental Services	37%	28%			9%
	Total drilling & production services	30%	25%			5%
	Technology services (Canada Tech)	29%	42%			(13%)
Total gross margin %		30%	30%			-
(1)See Non-GAAP Measures

		Six months ended
$ 000's		June 30, 2011	June 30, 2010	Change $		Change %
Operating costs:
	Eagle Well Servicing	18,754	12,522	6,232		50%
	Aero Rental Services	3,375	1,915	1,460		76%
	Total drilling & production services	22,129	14,437	7,692		53%
	Technology services (Canada Tech)	3,704	3,641	63		2%
Total operating costs		25,833	18,078	7,755		43%
Gross margin:(1)
	Eagle Well Servicing	10,476	5,851	4,625		79%
	Aero Rental Services	3,495	755	2,740		363%
	Total drilling & production services	13,971	6,606	7,365		111%
	Technology services (Canada Tech)	1,236	2,389	(1,153)		(48%)
Total gross margin		15,207	8,995	6,212		69%
Gross margin %(1):
	Eagle Well Servicing	36%	32%			4%
	Aero Rental Services	51%	28%			23%
	Total drilling & production services	39%	31%			8%
	Technology services (Canada Tech)	25%	40%			(15%)
Total gross margin %		37%	33%			4%
(1)See Non-GAAP Measures

EBITDAS

		Three months ended
$ 000's except per share amounts		June 30, 2011	June 30, 2010	Change $		Change %
EBITDAS(1):
	Eagle Well Servicing	2,069	1,166	903		77%
	Aero Rental Services	573	122	451		370%
	Total drilling & production services	2,642	1,288	1,354		105%
	Technology services (Canada Tech)	327	773	(446)		(58%)
	Corporate	(1,000)	(958)	(42)		4%
Total EBITDAS		1,969	1,103	866		79%
EBITDAS per common share(1)
	- Basic	$ 0.040	$  0.025	$ 0.015		60%
	- Diluted	$ 0.039	$  0.025	$ 0.014		56%

^{(1) See Non-GAAP Measures}

		Six months ended
$ 000's except per share amounts		June 30, 2011	June 30, 2010	Change $		Change %
EBITDAS(1):
	Eagle Well Servicing	8,962	4,812	4,150		86%
	Aero Rental Services	2,959	480	2,479		516%
	Total drilling & production services	11,921	5,292	6,629		125%
	Technology services (Canada Tech)	306	1,257	(951)		(76%)
	Corporate	(1,882)	(1,925)	43		(2%)
Total EBITDAS		10,345	4,624	5,721		124%
EBITDAS per common share(1)
	- Basic	$ 0.226	$  0.106	$ 0.120		113%
	- Diluted	$ 0.221	$  0.106	$ 0.115		108%

NET INCOME (LOSS)

				Three months ended
$ 000's except share and per share amounts				June 30, 2011		June 30, 2010		Change $ or number		Change %
Loss and comprehensive loss				(308)		(869)		561		65%
Loss per common share:
	- Basic			($0.006)		($0.024)		$0.018		75%
	- Diluted			($0.006)		($0.024)		$0.018		75%
Weighted average common shares outstanding:
	- Basic			49,083,995		43,604,911		5,479,084		13%
	- Diluted			50,155,327		43,710,871		6,444,456		15%

				Six months ended
$ 000's except share and per share amounts				June 30, 2011		June 30, 2010		Change $ or number		Change %
Net income (loss) and comprehensive income (loss)				4,055		(118)		4,173		3,536%
Net income (loss) per common share:
	- Basic			$0.096		($0.002)		$0.098		(4,900%)
	-Diluted			$0.094		($0.002)		$0.098		(4,800%)
Weighted average common shares outstanding:
	- Basic			45,867,848		43,591,018		2,276,830		5%
	- Diluted			46,819,846		43,665,084		3,154,762		7%

Outlook

IROC continued to deliver solid results in the second quarter of 2011 as strong oil prices and the continuing move towards oil based activity benefited each of our business lines. A very strong start to the quarter with cold weather allowing activity to continue as winter wound down was offset by extremely wet conditions during the last two months.  Year over year, we have increased revenues, margins, net income, and EBITDAS for both the three month and six month periods ended June 30, 2011. As we look forward to the future, we have many reasons to be optimistic about the continued prospects for our businesses.

While the operating environment has changed substantially, the increased levels of business activity for IROC are also indicative of how we have positioned our assets to benefit our shareholders, employees and customers in both the short and longer term.  Eagle Well Servicing has developed solid relationships with active oil and gas operators across Western Canada by providing the newest equipment available, trained personnel and a skilled group of managers that combine to provide value to our customers both in superior customer service and efficient operations.  IROC continues to be able to effectively crew our rigs, a tribute to the efforts of our managers at the field level, and a reflection of workers preference to work on relatively new and well maintained equipment.

Our optimism is reflected in our commitment to grow the business. To that end, during the quarter we took delivery of the first two of six new service rigs planned for deployment during 2011. This brings Eagle's current active service rig count to 38 service rigs.  The remaining four rigs are scheduled to be delivered in each of, July, September, October and November, 2011. Additionally, we have secured five new build slots and will be taking delivery of our first rig from our 2012 Capital Expenditure budget in December of 2011. The four additional rigs are expected to be deployed in the first half of 2012, meaning that Eagle Well Servicing expects to have 43 rigs operational by year end and 47 by the end of the second quarter of 2012. We remain enthusiastic about the growth potential for Aero Rental Services and will continue investment to increase and expand Aero's rental inventory during the remainder of 2011. We are building our new coiled tubing business, Helix Coil Services, with two units having been delivered and one coil tubing unit expected to be delivered in the third quarter. All three units have capacity for up to two-inch coil tubing. The first two units have been deployed during July, 2011.

Our capital program will make the newest fleet of service rig equipment in Western Canada newer, and management expects to be able to continue to work this aspect of our fleet to our advantage in attracting experienced, competent personnel to operate the equipment. Management expects that revenues will be positively affected by these capital additions in the coming quarters, but more so during 2012, when the full year effect of the additional equipment will be achieved.

Subsequent to quarter end, a decision to exit the technology business was made resulting in the sale of the operating assets and business of Canada Tech to Reservoir Group, a downhole technology provider with operations around the world. The value of the transaction, effective and closing date of July 14th, 2011, was $4.8 million with IROC retaining an additional $1.2 million in working capital. The purchase price was equivalent to the tangible book value of our assets and will result in a loss of approximately $1.6 million that will be recorded during the third quarter after allowing for intangible assets carried on our balance sheet and other costs of the transaction. While Canada Tech remained a viable operation with over $10 million in sales last year, the division was underperforming in relation to our other businesses.  Given an opportunity for a timely sale to a buyer who was willing to retain the existing employee base, a decision was made to sell the division and deploy the capital into the core components of our business.

From a financial perspective, we used the recent interest in the Corporation by the investment community to both reduce bank debt and enhance shareholder liquidity during the quarter by completing a short form prospectus offering of 7,200,361 common shares at a price of $1.40 per common share, for net proceeds after costs of $9.2 million.  Along with this offering, Key Energy Services, Inc. sold the 8,734,469 common shares it had held since 2005. Key's ownership amounted to 20.47% of the total outstanding common shares and we believed the distribution of this block of shares to a wider number of shareholders along with the new shares issued would enhance liquidity in the trading of the Corporation's shares. Since the completion of this offering, trading in the Corporation's common shares has in fact seen increased volumes.

Conference call and webcast

IROC will conduct a conference call on Tuesday, August 16, 2011 at 2:00 p.m. MST (4:00 p.m. EST). Thomas Alford, President and CEO, and Ryan Michaluk, CFO, will both be presenting during the call.

To access the conference call, contact the conference call operator at 1-888-231-8191 (North America) and 647-427-7450 (Toronto and outside North America) approximately 10 minutes prior to the call and request the "IROC Energy Services Corp 2nd Quarter 2011 results conference call". The call will be open to all analysts, investors and other interested parties.

The conference call will also be available via webcast by visiting http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3628900 in your web browser.

Accounting policy changes

IROC prepares its financial statements in accordance with Canadian generally accepted accounting principles as set out in the Handbook of the Canadian Institute of Chartered Accountants ("CICA" and "CICA Handbook").  In 2010, the CICA Handbook was revised to incorporate International Financial Reporting Standards ("IFRS") and require public companies to apply such standards effective for years beginning on or after January 1, 2011.

On January 1, 2011, IROC adopted International Financial Reporting Standards ("IFRS") for purposes of financial reporting, using a transition date of January 1, 2010.  Accordingly, the condensed consolidated financial statements for the three and six months ended June 30, 2011 and the comparative information for the three and six months ended June 30, 2010, have been prepared in accordance with International Financial Reporting Standard 1, "First-time Adoption of International Financial Reporting Standards", and with International Accounting Standard 34, "Interim Financial Reporting", as issued by the International Accounting Standards Board ("IASB").

In this news release, the term "GAAP" or "Canadian GAAP" refers to Canadian generally accepted accounting principles before the adoption of IFRS.  Certain tables which incorporate a combination of GAAP and IFRS amounts have column headings which indicate which set of accounting principles were used in the preparation of the amounts in such column.  In the absence of any such designation, amounts included in this news release are prepared in accordance with IFRS.

The adoption of IFRS has not had an impact on the Company's operations or strategic decisions.  Further information on the effect of adopting IFRS is outlined in the CHANGES IN ACCOUNTING PRONOUNCEMENTS INCLUDING INITIAL ADOPTION section of the interim MD&A.

About IROC Energy Services Corporation
IROC Energy Services Corp. is an Alberta oilfield services company that, through the IROC Energy Services Partnership, provides a diverse range of products, services and equipment to the oil and gas industry that are among the newest and most innovative in the Western Canadian Sedimentary Basin and international markets.  IROC combines cutting-edge technology with depth of experience to deliver a product and services offering in the following core areas: Well Servicing & Equipment, Downhole Temperature & Pressure Monitoring Tools, Rental Services and Coiled Tubing Services. For more information on IROC Energy Services Corp. visit our website at www.iroccorp.com.

Cautionary Statement Regarding Forward Looking Information and Statements
Certain information contained in this news release, including information related to the completion and timing of the construction of IROC's new service rigs and new coiled tubing units, the Corporation's planned capital expenditures and growth opportunities, outlook for future oil and gas prices, cyclical industry fundamentals, drilling, completion, work over and abandonment activity levels, the Corporation's ability to fund future obligations and capital expenditures, and information or statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may���, "likely", "estimate", "predict", "potential", "continue", "maintain", "retain", "grow", and similar expressions and statements relating to matters that are not historical facts, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation.  This information or these statements are based on certain assumptions and analysis made by the Corporation in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. In particular, the Corporation's expectation of uncertain demand and prices for oil and natural gas and the resulting future industry activity, is premised on the Corporation's understanding of customers' capital budgets and their ability to access capital, the focus of its customers on deeper and horizontal drilling opportunities in the current natural gas pricing environment, and the continuing impact of the recent global financial crisis and the current economic recovery all of which affects the demand for oil and gas. Whether actual results, performance or achievements will conform to the Corporation's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Corporation's expectations.  Such risks and uncertainties include, but are not limited to: fluctuations in the price and demand for oil and natural gas; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for well servicing; the effects of weather conditions on operations and facilities; the existence of competitive operating risks inherent in well servicing; general economic, market or business conditions; changes in laws or regulations, including taxation, environmental and currency regulations; the lack of availability of qualified personnel or management; the other risk factors set forth under the heading "Risks" in the annual MD&A for the year ended December 31, 2010 and other unforeseen conditions which could impact on the use of services supplied by the Corporation.

Consequently, all of the forward-looking information and statements made in this news release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by the Corporation will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Corporation or its business or operations. Except as may be required by law, the Corporation assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.

This press release is not for dissemination in United States or to any United States news services.  The Common Shares of IROC have not and will not be registered on the United States Securities Act of 1933, as amended (the "United States Securities Act") or any state securities laws and are not offered or sold in the United States or to any US person except in certain transactions exempt from the registration requirements of the United States Securities Act and applicable state securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Non-GAAP Measures

The financial statements have been prepared in accordance with IFRS.  Certain supplementary information and measures not recognized under IFRS are provided where Management believes they assist the reader in understanding IROC's results.  These measures include:

1. EBITDAS and EBITDAS per share- EBITDAS is defined as earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, foreign exchange gains and losses, goodwill impairment, note receivable impairment, and gains or losses on disposal of property and equipment.  EBITDAS and EBITDAS per share are not recognized measures under GAAP or IFRS.  The Corporation believes that EBITDAS is provided as a measure of operating performance without reference to financing decisions, income tax impacts and non-cash expenses, which are not controlled at the operating management level.  Accordingly, the Corporation believes EBITDAS is a useful measure for prospective investors in evaluating the financial performance of the Corporation, and specifically, the ability of the Corporation to service the interest on its indebtedness.  Investors should be cautioned that EBITDAS should not be construed as an alternative to net income determined in accordance with GAAP or IFRS as an indicator of the Corporation's performance.  IROC's method of calculating EBITDAS may differ from those of other companies, and accordingly, EBITDAS may not be directly comparable to measures used by other companies. EBITDAS % is calculated as EBITDAS divided by revenue.
2. Gross margin is defined as revenue less operating expenses.  Gross margin % is defined as gross margin divided by revenue.  The Company believes that gross margin and gross margin % are useful measures which provide an indicator of the Corporation's fundamental ability to make money on the products and services it sells.  The Corporation believes the relationship between revenues and costs expressed by the gross margin % is a useful measure when compared between different financial periods as it demonstrates the trending relationship between revenues, costs and margins.  Gross margin and gross margin % are not recognized measures of GAAP or IFRS and do not have any standardized meaning prescribed by GAAP or IFRS.  IROC's method of calculating gross margin and gross margin % may differ from those of other companies, and accordingly, may not be directly comparable to measures used by other companies.  Gross margin is reconciled to revenue - continuing operations in the FINANCIAL RESULTS AND SELECTED FINANCIAL INFORMATION table.

The following is a reconciliation of EBITDAS and EBITDAS per share to net income from continuing operations:

		Six months ended		Three months ended
$ 000's except number of shares and per share amounts		June 30, 2011 IFRS(1)		June 30, 2011 IFRS(1)	March 31, 2011 IFRS(1)
Net income (loss) from continuing operations		4,055		(308)	4,363
Depreciation and amortization		3,943		2,007	1,936
Loss (gain) on foreign exchange		15		5	10
Stock based compensation expense		290		126	164
Loss (gain) on disposal of equipment		(18)		7	(25)
Interest and financing costs		476		190	286
Note receivable recovery		-		-	-
Income taxes:
	Current
	Future	1,584		(58)	1,642
EBITDAS - continuing operations		10,345		1,969	8,376
EBITDAS per share
	Basic	$0.226		$0.04	$0.20
	Diluted	$0.221		$0.04	$0.19

		Six months ended		Three months ended
$ 000's except number of shares and per share amounts		June 30, 2010 IFRS(1)		June 30, 2010 IFRS(1)	March 31, 2010 IFRS(1)
Net income (loss) from continuing operations		(118)		(869)	751
Depreciation and amortization		3,686		1,849	1,837
Loss on foreign exchange		9		(88)	97
Stock based compensation expense		305		140	165
Loss (gain) on disposal of equipment		(7)		1	(8)
Interest and financing costs		647		275	372
Goodwill impairment		-		-	-
Note receivable impairment		-		-	-
Income taxes:
	Current	-		-	-
	Future	102		(205)	307
EBITDAS - continuing operations		4,624		1,103	3,521
EBITDAS per share
	Basic	$0.106		$0.03	$0.08
	Diluted	$0.106		$0.03	$0.08

(1)     See Accounting policy changes and CHANGES IN ACCOUNTING PRONOUNCEMENTS INCLUDING INITIAL ADOPTION