IROC Energy Services Corp. announces increased net income, filing of 2011 annual audited financial statements, and declaration of quarterly dividend

CALGARY, March 20, 2012 /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 months and one year periods ended December 31, 2011. For a complete copy of IROC's annual audited financial statements and annual management's discussion and analysis ("MD&A") please visit www.sedar.com.

Basis of Presentation

Throughout this news release amounts are presented on a continuing operations basis to more accurately reflect the way in which IROC intends to operate on a continuing basis.

Highlights for the three month quarter ended December 31, 2011:

• Total revenue increased 44% to $26.7 million for the three months ended December 31, 2011 as compared to $18.5 million in the comparable quarter of the prior year.
  
  
• Gross margin increased 53% to $10.8 million for the three months ended December 31, 2011 as compared to $7.1 million in the comparable quarter of the prior year.
  
  
• EBITDAS increased 62% to $8.6 million for the three months ended December 31, 2011 as compared to $5.3 million in the comparable quarter of the prior year.
  
  
• Net income from continuing operations increased 77% to $4.8 million for the three months ended December 31, 2011 as compared to $2.7 million in the comparable quarter of the prior year.

Highlights for the year ended December 31, 2011:

• Total revenue increased 60% to $85.7 million for the year ended December 31, 2011 as compared to $53.6 million in 2010.
  
  
• Gross margin increased 90% to $35.3 million for the year ended December 31, 2011 as compared to $18.5 million in 2010.
  
  
• EBITDAS increased 125% to $26.9 million for the year ended December 31, 2011 as compared to $12.0 million in 2010.
  
  
• Net income from continuing operations increased 324% to $13.4 million for the year ended December 31, 2011 as compared to net income of $3.2 million in 2010.
  
  
• Successfully completed the $27.6 million 2011 capital program through the addition of six new service rigs, three new coil tubing units, and the addition of $6.6 million of rental equipment.
  
  
• Commenced payment of a quarterly dividend, currently $0.025 per common share.

Operations
IROC's operations are reported in three segments; the Drilling and Production Services segment, the Rental Services segment and Corporate Services and Other.  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 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 and Grande Prairie in Alberta and Lloydminster and Estevan in Saskatchewan with equipment being used in those geographic areas.

Helix Coil Services ("Helix") contracts coil tubing units to oil and gas companies to perform various completion, work-over and maintenance services on oil and natural gas wells.  Helix is based in Red Deer, Alberta with equipment generally being used in Alberta and Saskatchewan, Canada.

		Three months ended
		December 31, 2011	September 30, 2011	June 30, 2011	March 31, 2011
Eagle Well Servicing:
	Number of service rigs (end of period)	41	38	36	36
	Service rig utilization^(1)	69%	69%	42%	78%
Commodity prices:
	NYMEX crude oil $US/bbl	94.06	89.76	102.60	94.08
	AECO Monthly index natural gas $CAD/GJ	3.29	3.53	3.54	3.58
		Three months ended
		December 31, 2010	September 30, 2010	June 30, 2010	March 31, 2010
Eagle Well Servicing:
	Number of service rigs (end of period)	35	35	35	36
	Service rig utilization^(1)	66%	57%	33%	55%
Commodity prices:
	NYMEX crude oil $US/bbl	85.17	76.20	78.03	78.72
	AECO Monthly index natural gas $CAD/GJ	3.39	3.52	3.66	5.08
(1)	IROC calculates utilization based on full utilization being 10 hours days, 365 days per year consistent with the CAODC standard.  IROC commences calculation of utilization for a new rig on the first day it goes into the field for active service.

As at December 31, 2011, Eagle had a fleet of 41 service rigs.  Eagle's service rig fleet and equipment are among the newest in the industry.  All of 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.  During the fourth quarter of 2011, Eagle's first two slant rigs were delivered and went into active service.  Slant rig designs are optimized for use in the heavy oil and SAGD markets.  Eagle also put its first heavy double into service during the fourth quarter.  This rig is designed to address heavier hook loads which are expected from the longer and deeper horizontal wells which are currently being drilled in Alberta.

Since year end, the Corporation has deployed 2 additional rigs, for a total service rig fleet of 43 rigs currently crewed and operated.  In addition, 4 new service rigs are currently being built, with expected delivery and deployment in the first half of 2012.  This will give Eagle 47 service rigs in operation by July 1, 2012.

The trend toward increased oil-related activity continues to provide benefit for the Corporation's service rig division. Current activity levels are estimated to be approaching 80% levered to oil, with completion, workover and abandonment activity all providing continued strong demand for the Corporation's services in the foreseeable future.

Eagle was able to fully crew its assets through the fourth quarter of 2011 and continues to do so notwithstanding the very tight labour market across the service industry.

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 were stronger in 2011 than in 2010 with NYMEX crude oil averaging $US 95.12/barrel in 2011 as compared to $US 79.53/barrel in 2010.  For the past seven 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 these price levels, natural gas development has been focused on resource type development projects and liquids rich reservoirs as much conventional shallow gas is not 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 increase across all business lines.

Utilization for the fourth quarter increased modestly year over year at 69% in the current year quarter as compared to 66% in the comparative quarter of last year and was on par with the third quarter.  The seasonality of spring break-up, forest fires in Northern Alberta, and wet weather conditions in various regions all contributed to reduced activity levels during the second quarter of 2011.  With all of those factors diminishing during the third quarter, activity levels picked up again and continued through the fourth quarter.  Seasonality is a significant activity driver for all of our businesses as certain areas are only accessible by service rigs and other heavy equipment during winter when the ground is frozen.  On a full year basis, utilization was up significantly at 65% in the current year compared to 53% in the prior year.  Increased year over year activity was largely driven by horizontal drilling which has contributed to increased utilization as exploration and production companies target oil production.  The complexity of horizontal wells typically make completion operations more time consuming and therefore impact utilization percentages.  Continuing high levels of activity due to the shift towards oil based activity also contributed to increased utilization during the quarter.

Helix Coil Services began operations in July 2011 with the deployment of two truck mounted coil tubing units, each with 2" capabilities placing the equipment in the intermediate size range. In the fourth quarter Helix added one trailer unit with 2" capabilities, along with crane support equipment.  Coil services are a new business area for IROC and we have been very encouraged by the results of operations from this new division in 2011.

Rental Services
The Rental Services segment consists of the Aero Rental Services division.  Aero provides rental equipment for surface pressure control in drilling and workover operations and tubular handling equipment used for the workover, 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
$ 000's		December 31, 2011	September 30, 2011	June 30, 2011	March 31, 2011
Aero Rental Services:
	Gross margin	2,653	2,533	826	2,793
	Book value of rental equipment (end of period)	14,641	12,887	11,799	11,249
		Three months ended
$ 000's		December 31, 2010	September 30, 2010	June 30, 2010	March 31, 2010
Aero Rental Services:
	Gross margin	1,739	784	259	534
	Book value of rental equipment (end of period)	10,121	8,802	7,477	7,112

Aero continues to have strong absolute margin growth on a year over year basis.  The increase in 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 2011 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.

Corporate Services and Other
IROC's non-operating segment, Corporate Services and Other, 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 and other amounts not relating to the two main operating segments.

Comparison of results from the three months and one year periods ended December 31, 2011 to the same periods last year

REVENUE

		Three months ended
$ 000's		December 31, 2011	December 31, 2010	Change $	Change %
Revenue:
	Drilling and Production Services	22,317	15,400	6,917	45%
	Rental Services	4,665	3,154	1,511	48%
	Inter-segment eliminations	(258)	(23)	(235)	1,022%
Total revenue		26,724	18,531	8,193	44%
		Years ended
$ 000's		December 31, 2011	December 31, 2010	Change $	Change %
Revenue:
	Drilling and Production Services	70,589	46,014	24,575	53%
	Rental Services	15,688	7,685	8,003	104%
	Inter-segment eliminations	(537)	(83)	(454)	547%
Total revenue		85,740	53,616	32,124	60%

OPERATING COSTS AND GROSS MARGIN

		Three months ended
$ 000's		December 31, 2011	December 31, 2010	Change $	Change %
Operating costs:
	Drilling and Production Services	14,134	10,069	4,065	40%
	Rental Services	2,012	1,415	597	42%
	Inter-segment eliminations	(258)	(23)	(235)	1,022%
Total operating costs		15,888	11,461	4,427	39%
Gross margin:^(1)
	Drilling and Production Services	8,183	5,331	2,852	53%
	Rental Services	2,653	1,739	914	53%
Total gross margin		10,836	7,070	3,766	53%
Gross margin %^(1):
	Drilling and Production Services	37%	35%		2%
	Rental Services	57%	55%		2%
Total gross margin %		41%	38%		3%
^(1)See Non-GA^AP Measures

		Years ended
$ 000's		December 31, 2011	December 31, 2010	Change $	Change %
Operating costs:
	Drilling and Production Services	44,111	30,799	13,312	43%
	Rental Services	6,883	4,369	2,514	58%
	Inter-segment eliminations	(537)	(83)	(454)	547%
Total operating costs		50,457	35,085	15,372	44%
Gross margin:^(1)
	Drilling and Production Services	26,478	15,215	11,263	74%
	Rental Services	8,805	3,216	5,489	166%
Total gross margin		35,283	18,531	16,752	90%
Gross margin %^(1):
	Drilling and Production Services	38%	33%		5%
	Rental Services	56%	43%		13%
Total gross margin %		41%	35%		6%
^(1)See Non-GAAP Measures

EBITDAS

		Three months ended
$ 000's except per share amounts		December 31, 2011	December 31, 2010	Change $	Change %
EBITDAS^(1):
	Drilling and Production Services	7,307	4,600	2,707	59%
	Rental Services	2,354	1,515	839	55%
	Corporate and other	(1,019)	(795)	(224)	28%
Total EBITDAS		8,642	5,320	3,322	62%
EBITDAS per common share^(1)
	- Basic	$  0.172	$  0.124	$  0.048	39%
	- Diluted	$  0.168	$  0.122	$  0.046	38%
^(1) See Non-GAAP^Measures
		Years ended
$ 000's except per share amounts		December 31, 2011	December 31, 2010	Change $	Change %
EBITDAS^(1):
	Drilling and Production Services	23,075	12,846	10,229	80%
	Rental Services	7,672	2,607	5,065	194%
	Corporate and other	(3,834)	(3,469)	(365)	11%
Total EBITDAS		26,913	11,984	14,929	125%
EBITDAS per common share^(1)
	- Basic	$  0.560	$  0.276	$  0.284	103%
	- Diluted	$  0.548	$  0.275	$  0.273	99%
^(1) See Non-GAA^P Measures

NET INCOME (LOSS)

		Three months ended
$ 000's except share and per share amounts		December 31, 2011	December 31, 2010	Change $ or number	Change %
Net income from continuing operations		4,778	2,703	2,075	77%
Net income (loss) from discontinued operations		(8)	(272)	264	(97%)
Net income and comprehensive income		4,770	2,431	2,339	96%
Earnings per share from continuing operations:
	- Basic	$0.10	$0.06	$0.04	58%
	- Diluted	$0.10	$0.06	$0.04	56%
Weighted average common shares outstanding:
	- Basic	50,142,262	43,026,730	7,115,532	17%
	- Diluted	51,399,627	43,446,534	7,953,093	18%
		Years ended
$ 000's except share and per share amounts		December 31, 2011	December 31, 2010	Change $ or number	Change %
Net income from continuing operations		13,379	3,153	10,226	324%
Loss from discontinued operations		(1,192)	(136)	(1,056)	776%
Net income and comprehensive income		12,187	3,017	9,170	304%
Earnings per share from continuing operations:
	- Basic	$0.25	$0.07	$0.18	246%
	- Diluted	$0.25	$0.07	$0.18	242%
Weighted average common shares outstanding:
	- Basic	48,034,018	43,426,426	4,607,592	11%
	- Diluted	49,136,072	43,563,099	5,572,973	13%

Discontinued Operations
On July 14, 2011 IROC sold the business assets of its Canada Tech division ("Canada Tech").  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.  The sale included the complete Canada Tech division with all existing division employees being offered continued employment by the purchaser.  The net book value of the assets disposed on July 14, 2011 was $6.3 million and the loss on sale of $1.6 million is included in the loss from discontinued operations.  The Corporation does not expect the sale of the Canada Tech division to have any impact on current or future operations.

On December 30, 2011, the Corporation received a settlement for damages relating to a 2008 incident in the Corporation's former Mission Drilling business resulting in a gain of $0.3 million.  All of the assets of the Mission Drilling business were sold during 2008.

The full year loss from all discontinued operations was $1.2 million in 2011 as compared to $0.2 million in 2010.

Outlook
IROC Energy Services Corp. had a record year in 2011 finishing up with fourth quarter and full year EBITDAS that were the strongest in the history of the Company. Our ability to address the needs of our customers as they continue to expand their use of horizontal drilling and multistage fracturing technologies remains the focus of each of our operating divisions. Each of our divisions is benefitting from the increased oil price and technology driven industry conditions and we are experiencing an increasing demand for well servicing rigs, coiled tubing units and the rental assets of our Rental Services division.  We expect continued strong demand for all of the services we offer in 2012 based on current oil price levels and the continued expansion of horizontal drilling and multi stage fracturing technologies into an increasing number of areas.

Our service rig division will continue to be the largest contributor of revenues and profits in our company.  Eagle averaged 37.3 rigs during 2011, starting the year with 36 rigs and ending with 41 rigs in the field.  Eagle will add six more service rigs during 2012 with two already in service, the third expected by April 1 and the fourth, fifth and sixth expected by July 1.  By mid-year we expect to have 47 service rigs operating in the field and we expect to average over 45 rigs for calendar 2012 as compared to the 37.3 rigs in 2011, an increase of 7.7 rigs or 21%.  We expect this to translate into a similar magnitude of revenue, margin and EBITDAS growth for this division in 2012.

We believe there is an advantage to our new, built to order service rigs.  Eagle's new equipment specifically addresses the current needs of our customers or targeted areas of operation and provides greater operating efficiency with minimal downtime. We continue to build equipment that is lighter and more adaptable to the various areas where we operate.  Our new heavy double rig was built specifically to address the challenges inherent in completing and working-over horizontal wells.  Our new slant rigs incorporate new and innovative designs which increase efficiencies for our customers in SAGD operations. This new and innovative equipment continues to attract both work and competent personnel, enabling Eagle to achieve high equipment utilization, a benefit to our employees and customers alike.

Our rental business continues to operate very well and the demand for its products and services continues to increase as our customers exploit oil opportunities in both the application of horizontal technology, and the SAGD operating segments of the oil and gas business in Western Canada.  In 2011 we continued to unlock the operating leverage available to us in this division as we added more equipment with increasing revenues and margins. Gross margins for Aero moved to 56% during the year as compared to 43% in the prior year and we expect these margins to continue or improve further as we go into 2012. As industry acceptance of the new equipment and services remains strong, we anticipated being able to continue to profitably add assets in this division and have budgeted $8 million for the acquisition of new rental assets in 2012.  Growth in this business is somewhat hampered by the geographic coverage available from our single location in Red Deer.  We anticipate opening an additional facility later in the year to address the needs of customers who operate in the northern portion of Alberta.

The contribution from our new start up coil tubing business was positive during both the fourth quarter and full year 2011.  We expect growth in this business in 2012 now that we have deployed our new trailer unit and additional auxiliary equipment. The coiled tubing operation is very complementary to our other services and we expect it will provide a significant contribution to our bottom line over the coming quarters and years.

Our ability to attract and retain personnel in a very tight labour market is critical to all of our businesses. We have been able to fully crew all of our service rigs and coil tubing units through this past year and continue to be able to do so.  Our recent and planned growth will continue to make IROC an attractive employer and provide opportunities for our workforce into the future. As we move into 2012, IROC has a strong balance sheet, the newest in equipment, and a talented group of employees that will allow us to continue to grow and capitalize on opportunities as they present themselves.

Declaration of quarterly dividend
The Board of Directors has declared a quarterly cash dividend of $0.025 per common share. The dividend will be payable April 13, 2012 to shareholders of record at the close of business on April 6, 2012.

Conference call and webcast
IROC will conduct a conference call on Wednesday, March 21, 2012 at 11:00 a.m. MST (1:00 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 [phone] (North America) and [phone] (Toronto and outside North America) approximately 10 minutes prior to the call and request the "IROC Energy Services Corp 2011 annual 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/detail/932507/996571 from a 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 audited consolidated financial statements for the year ended December 31, 2011 and the comparative information for the year ended December 31, 2010, have been prepared in accordance with International Financial Reporting Standard 1, "First-time Adoption of International Financial Reporting Standards", as issued by the International Accounting Standards Board ("IASB").

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 annual 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 WCSB.  IROC Energy Services Partnership operates under the business names of Eagle Well Servicing, Aero Rental Services and Helix Coil Services.  IROC combines cutting-edge technology with depth of experience to deliver a product and services offering in the following core areas: well servicing & equipment, rental services and coil 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, 2011 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:

		Year ended	Three months ended
$ 000's except number of shares and per share amounts		December 31, 2011	December 31, 2011	September 30, 2011	June 30, 2011	March 31, 2011
Net income (loss) from continuing operations		13,379	4,778	4,330	(331)	4,602
Depreciation and amortization		7,396	2,111	1,920	1,715	1,650
Loss (gain) on foreign exchange		30	(1)	23	8	-
Stock based compensation expense		604	167	169	115	153
Loss (gain) on disposal of equipment		(19)	(8)	7	7	(25)
Interest and financing costs		803	163	164	190	286
Note receivable recovery		-	-	-	-	-
Income taxes:
	Current	-	-	-	-	-
	Future	4,720	1,432	1,619	(62)	1,731
EBITDAS - continuing operations		26,913	8,642	8,232	1,642	8,397
EBITDAS per share - continuing operations
	Basic	$0.56	$0.18	$0.16	$0.03	$0.20
	Diluted	$0.55	$0.18	$0.16	$0.03	$0.19
		Year ended	Three months ended
$ 000's except number of shares and per share amounts		December 31, 2010	December 31, 2010	September 30, 2010	June 30, 2010	March 31, 2010
Net income (loss) from continuing operations		3,153	2,703	1,068	(1,307)	689
Depreciation and amortization		6,713	1,857	1,755	1,553	1,548
Gain on foreign exchange		(5)	-	(2)	(3)	-
Stock based compensation expense		458	105	82	119	152
Loss (gain) on disposal of equipment		(45)	(17)	(24)	1	(5)
Interest and financing costs		1,256	305	304	275	372
Note receivable impairment		(300)	-	(300)	-	-
Income taxes:
	Current	-	-	-	-	-
	Future	754	367	414	(308)	281
EBITDAS - continuing operations		11,984	5,320	3,297	330	3,037
EBITDAS per share - continuing operations
	Basic	$0.28	$0.12	$0.08	$0.01	$0.07
	Diluted	$0.28	$0.12	$0.08	$0.01	$0.07

 

IROC Energy Services Corp.
Mr. Thomas M. Alford, President and CEO,

or

Mr. Ryan A. Michaluk, Chief Financial Officer
Telephone:  [phone]
Email: [email protected]