IROC ENERGY SERVICES CORP. 
By CALGARY, Aug. 15, 2011, 2011 (Canada NewsWire via COMTEX) --
/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES/
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, March 31, December 31, September 30,
2011 2011 2010 2010
Eagle Well
Servicing:
Number of 36 36 35 35
service rigs
(end of period)
Service rig 42% 78% 66% 57%
utilization
Aero Rental
Services:
Gross margin 791 2,704 1,715 762
$000's
Book value of 11,799 11,249 10,121 8,802
rental
equipment
$000's
Commodity prices:
NYMEX crude oil 102.60 94.08 85.17 76.20
$US/bbl
AECO Monthly 3.54 3.58 3.39 3.52
index natural
gas $CAD/GJ
Three months ended
June 30, March 31, December 31, September 30,
2010 2010 2009 2009
Eagle Well
Servicing:
Number of 35 36 36 36
service rigs
(end of
period)
Service rig 33% 55% 49% 34%
utilization
Aero Rental
Services:
Gross margin
$000's 250 505 455 ((1)) 311 ((1))
Book value of 7,122 7,122 6,977 6,743
rental
equipment
$000's
Commodity
prices:
NYMEX crude 78.03 78.72 76.19 68.30
oil $US/bbl
AECO Monthly 3.66 5.08 4.01 2.87
index natural
gas $CAD/GJ
((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
June 30, June 30, Change Change
$ 000's 2011 2010 $ %
Revenue:
Eagle Well Servicing 9,552 6,642 2,910 44%
Aero Rental Services 2,140 894 1,246 139%
Total drilling & production 11,692 7,536 4,156 55%
services
Technology services (Canada Tech) 2,599 3,289 (690) (21%)
Total revenue 14,291 10,825 3,466 32%
Six months ended
June 30, June 30, Change Change
$ 000's 2011 2010 $ %
Revenue:
Eagle Well Servicing 29,230 18,373 10,857 59%
Aero Rental Services 6,870 2,670 4,200 157%
Total drilling & production 36,100 21,043 15,057 72%
services
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
June 30, June 30, Change Change
$ 000's 2011 2010 $ %
Operating costs:
Eagle Well Servicing 6,861 5,025 1,836 37%
Aero Rental Services 1,349 644 705 109%
Total drilling & production 8,210 5,669 2,541 45%
services
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 3,482 1,867 1,615 87%
services
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 30% 25% 5%
services
Technology services (Canada Tech) 29% 42% (13%)
Total gross margin % 30% 30% -
((1)See Non-GAA)(P Measures)
Six months ended
June 30, June 30, Change Change
$ 000's 2011 2010 $ %
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 22,129 14,437 7,692 53%
services
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 13,971 6,606 7,365 111%
services
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 39% 31% 8%
services
Technology services (Canada Tech) 25% 40% (15%)
Total gross margin % 37% 33% 4%
((1)See Non-GAAP Meas)(ures)
EBITDAS
Three months ended
June 30, June 30, Change Change
$ 000's except per share amounts 2011 2010 $ %
EBITDAS((1)):
Eagle Well Servicing 2,069 1,166 903 77%
Aero Rental Services 573 122 451 370%
Total drilling & production 2,642 1,288 1,354 105%
services
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
June 30, June 30, Change Change
$ 000's except per share amounts 2011 2010 $ %
EBITDAS((1)):
Eagle Well Servicing 8,962 4,812 4,150 86%
Aero Rental Services 2,959 480 2,479 516%
Total drilling & production 11,921 5,292 6,629 125%
services
Technology services (Canada 306 1,257 (951) (76%)
Tech)
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 June 30, June 30, Change $ Change
and per share amounts 2011 2010 or number %
Loss and comprehensive (308) (869) 561 65%
loss
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 June 30, June 30, Change $ Change
amounts 2011 2010 or number %
Net income (loss) 4,055 (118) 4,173 3,536%
and comprehensive
income (loss)
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
June 30, June 30, March 31,
$ 000's except number of shares 2011 2011 2011
and per share amounts IFRS((1)) IFRS((1)) IFRS((1))
Net income (loss) from 4,055 (308) 4,363
continuing operations
Depreciation and amortization 3,943 2,007 1,936
Loss (gain) on foreign exchange 15 5 10
Stock based compensation 290 126 164
expense
Loss (gain) on disposal of (18) 7 (25)
equipment
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
June 30, June 30, March 31,
$ 000's except number of shares 2010 2010 2010
and per share amounts IFRS((1)) IFRS((1)) IFRS((1))
Net income (loss) from (118) (869) 751
continuing operations
Depreciation and amortization 3,686 1,849 1,837
Loss on foreign exchange 9 (88) 97
Stock based compensation 305 140 165
expense
Loss (gain) on disposal of (7) 1 (8)
equipment
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
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SOURCE: IROC Energy Services Corp.
IROC Energy Services Corp. Mr. Thomas M. Alford, President and CEO, or Mr. Ryan A. Michaluk, Chief Financial Officer Telephone: (403) 263-1110 Email:investorrelations@iroccorp.com
.
