IROC Energy Services Corp. announces record first quarter results, filing of interim financial statements, and declaration of quarterly dividend

CALGARY, May 23, 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 ended March 31, 2011. For a complete copy of IROC's interim financial statements and 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 March 31, 2012:

• Total revenue increased 33% to $32.5 million for the three months ended March 31, 2012 as compared to $24.4 million in the first quarter of 2011.
  
  
• Gross margin increased 37% to $14.4 million for the three months ended March 31, 2012 as compared to $10.5 million in the first quarter of 2011.
  
  
• EBITDAS increased 40% to $11.8 million for the three months ended March 31, 2012 as compared to $8.4 million in the first quarter of 2011.
  
  
• Net income from continuing operations increased 47% to $6.8 million for the three months ended March 31, 2012 as compared to $4.6 million in the first quarter of 2011.

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, workover 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, workover 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
	March 31, 2012	December 31, 2011	September 30, 2011	June 30, 2011
Eagle Well Servicing:
Number of service rigs (end of period)	44	41	38	36
Service rig utilization^(1)	74%	69%	69%	42%
Commodity prices:
NYMEX crude oil $US/bbl	102.93	94.06	89.76	102.60
AECO Monthly index natural gas $CAD/GJ	2.39	3.29	3.53	3.54
	Three months ended
	March 31, 2011	December 31, 2010	September 30, 2010	June 30, 2010
Eagle Well Servicing:
Number of service rigs (end of period)	36	35	35	35
Service rig utilization^(1)	78%	66%	57%	33%
Commodity prices:
NYMEX crude oil $US/bbl	94.08	85.17	76.20	78.03
AECO Monthly index natural gas $CAD/GJ	3.58	3.39	3.52	3.66

(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 March 31, 2012, Eagle had a fleet of 44 service rigs having added three single service rigs into our fleet since the start of the year.  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 past six months Eagle has deployed its first two slant rigs.  Slant rig designs are optimized for use in the heavy oil and SAGD markets and our slant rigs have been well received by the customers who have put them into service.  These rigs tend to work on locations with multiple well bores referred to in the industry as "pads" which can mean more hours of operation due to shorter rig moves and less impact from spring breakup conditions.  Eagle's third slant rig is to be delivered by June 30, 2012.

Currently Eagle's service rig fleet consists of 45 rigs, all of which are fully crewed and operated.  In addition, 2 new service rigs are currently being built, with expected delivery and deployment by July 1, 2012.  This will give Eagle 47 service rigs in operation by July 1, 2012.  One key challenge facing the energy services industry is staffing, particularly of field personnel.  Eagle has been and continues to be able to fully crew its assets in this very tight labour market across the service industry.

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.

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.  Crude oil prices have continued to be strong during the first four months of 2012.  Year over year, first quarter prices were stronger in 2012 than in 2011 with NYMEX crude oil averaging $US 102.93/barrel in 2012 as compared to $US 94.08/barrel in 2011.  For the first time in over two years Alberta quarterly natural gas prices have moved outside the $3.00/GJ to $4.00/GJ range, and not in a good way for our industry.  This quarter's $2.39/GJ average price is the lowest in over three years and has created hardship for many of our natural gas weighted customers.  In Alberta, the AECO monthly index for May settled at $1.5586, marking the lowest AECO index settlement since February 1998, a period of 14 years and three months.  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.

Service rig utilization for the first quarter was 74% in the current year as compared to 78% in the prior year quarter.  The first quarter is typically our strongest quarter but can also be impacted somewhat by weather.  The seasonality of spring breakup occurred earlier this year than last year which impacted the first quarter more in the current year than in the prior year.  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.  Robust activity levels in 2012 continue to be driven by horizontal drilling focussed largely on oil production.  The complexity of horizontal wells typically make completion operations more time consuming and therefore impact utilization percentages.

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 of 2011 Helix added one trailer unit with 2" capabilities, along with crane support equipment.  Coil services are a new business area for IROC and we continue to be very encouraged by the operating results of this relatively new and small division.  The Corporation has taken a measured approach to the growth of this new business line, focussing on developing both the internal business processes to support this business and a customer base from which we can scale growth going forward.

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	March 31, 2012	December 31, 2011	September 30, 2011	June 30, 2011
Aero Rental Services:
Gross margin	3,409	2,653	2,533	826
Book value of rental equipment (end of period)	16,099	14,641	12,887	11,799
	Three months ended
$ 000's	March 31, 2011	December 31, 2010	September 30, 2010	June 30, 2010
Aero Rental Services:
Gross margin	2,793	1,739	784	259
Book value of rental equipment (end of period)	11,249	10,121	8,802	7,477

Aero continues to have strong absolute margin growth on a year over year basis with the first quarter posting the strongest performance in this division's history.  The trend of seasonality adjusted increases in gross margin has been driven by three primary factors.  Firstly, higher oil prices have increased demand and utilization of certain types of equipment; secondly, we have continued to increase the rental asset base in each of the past eight quarters; and thirdly, the decreasing percentage of fixed costs to total costs in the business as we utilize the excess capacity which was once 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 month period ended March 31, 2012 to the same period last year

REVENUE

	Three months ended
$ 000's	March 31, 2012	March 31, 2011	Change $	Change %
Revenue:
Drilling and Production Services	26,965	19,678	7,287	37%
Rental Services	5,853	4,819	1,034	21%
Inter-segment eliminations	(360)	(89)	(271)	304%
Total revenue	32,458	24,408	8,050	33%

Total revenues for the first quarter increased 33% over the prior year quarter reflecting the growth in the Corporation's oil related drilling and completion asset base while activity in both the current and prior year was very strong due to demand for the Corporation's products and services.

The increase in revenues for the Drilling and Production Services segment in the current year quarter is due primarily to an increase in the number of service rig hours with utilization being 74% based on an average of 42.5 active rigs as compared to 78% based on 36 service rigs in the comparative quarter of the prior year.  Also contributing to the increases on a year over year basis was increased pricing and the additional revenue from our three new coil tubing units which were put into service during the third and fourth quarters of 2011.

Helix began operations in July 2011.  Currently, Helix has two truck mounted units and one trailer unit, each with 2" capabilities placing the equipment in the intermediate size range.  Additionally, Helix owns related crane and support equipment. Helix generated revenues of $3.3 million in the first quarter of 2012.

The increase in revenue for the Rental Services segment in the current year quarter as compared to the prior year quarter is primarily due to the increase in the amount of rentable equipment in the current year as compared to the prior year.  Over the past two years, Aero has more than doubled the amount of rental equipment in its inventory.  This increase has provided a larger and more diverse range of rental equipment.  Additionally, as we grow our rental equipment assets, proportionately less of our rental revenue is related to third party equipment rentals, reducing operating expenses as we are not required to incur third party rental fees.

Crude oil and natural gas prices are activity drivers for all of our businesses as our customers make capital and operating expenditure decisions based on their revenue streams generated by selling crude oil and natural gas.  NYMEX Crude oil prices in the current year quarter were stronger, averaging $US 102.93/ barrel as compared to $US 94.08 / barrel in the prior year quarter.  In contrast, natural gas prices were weaker averaging just $2.39 per GJ in the current year quarter as compared to $3.58 per GJ in the prior year quarter.  Subsequent to quarter end, the AECO monthly index for May 2012 settled at $1.5586, marking the lowest AECO index settlement since February 1998, a period of 14 years and three months. Low natural gas prices have significantly reduced natural gas focused activity by our customers.

OPERATING COSTS AND GROSS MARGIN

	Three months ended
$ 000's	March 31, 2012	March 31, 2011		Change $	Change %
Operating costs:
Drilling and Production Services	15,990	11,982		4,008	33%
Rental Services	2,444	2,026		418	21%
Inter-segment eliminations	(360)	(89)		(271)	304%
Total operating costs	18,074	13,919		4,155	30%
Gross margin:^(1)
Drilling and Production Services	10,975	7,696		3,279	43%
Rental Services	3,409	2,793		616	22%
Total gross margin	14,384	10,489		3,895	37%
Gross margin %^(1):
Drilling and Production Services	41%	39%			2%
Rental Services	58%	58%			-%
Total gross margin %	44%	43%			1%
^(1)See Non-GAAP Measures

In the Drilling and Production Services segment, most operating costs are variable in nature and increase or decrease with activity levels such that much of the change in operating costs in the year over year period is due to the increases in revenues in the current year period as compared to the prior year period.  The largest cost in this segment is salaries and wages with most employees being hourly in nature and paid only when they are working on service rigs.

Gross margin is calculated as revenue minus operating costs and provides a measure of cash flow available to cover all of the other costs of the business.  Gross margin percentages are calculated as gross margin divided by revenue and is used by management as a measure of relative profitability.

EBITDAS

	Three months ended
$ 000's except per share amounts	March 31, 2012	March 31, 2011		Change $	Change %
EBITDAS^(1):
Drilling and Production Services	9,743	6,803		2,940	43%
Rental Services	3,029	2,476		553	22%
Corporate and other	(1,005)	(882)		(123)	14%
Total EBITDAS	11,767	8,397		3,370	40%
EBITDAS per common share^(1)
- Basic	$  0.234	$  0.197		$  0.037	19%
- Diluted	$  0.229	$  0.193		$  0.036	19%

^{(1) See Non-GAAP Measures}

Earnings before interest, income taxes, depreciation, amortization, and stock based compensation ("EBITDAS"), is used by the Corporation as a measure of cash flow and liquidity.  Positive EBITDAS provides cash needed to grow our business through the purchase of new equipment or business acquisitions, reduce outstanding bank debt, repurchase common shares, or pay dividends to our shareholders.

GENERAL AND ADMINISTRATIVE EXPENSES

	Three months ended
$ 000's	March 31, 2012	March 31, 2011		Change $	Change %
General and administrative
Drilling and Production Services	1,232	892		340	38%
Rental Services	380	318		62	19%
Corporate services and other	1,005	882		123	14%
Total general and administrative	2,617	2,092		525	25%

Increased year over year activity levels are the primary driver for the increase in general and administrative costs.  Year over year percentage increases in revenue and EBITDAS, as highlighted in those sections of this MD&A, were larger than the percentage increases in general and administrative expenses.  General and administrative expenses are a combination of fixed and variable costs.  A portion of the increase in general and administrative expenses is related to the increase in EBITDAS as some employees have a component of variable compensation based on EBITDAS performance.

NET INCOME AND EARNINGS PER SHARE

	Three months ended
$ 000's except share and per share amounts	March 31, 2012	March 31, 2011	Change $ or number	Change %
Net income from continuing operations	6,750	4,602	2,148	47%
Net income (loss) from discontinued operations	-	(239)	239	(100%)
Net income and comprehensive income	6,750	4,363	2,387	55%
Earnings per share from continuing operations:
- Basic	$0.13	$0.11	$0.02	18%
- Diluted	$0.13	$0.11	$0.02	18%
Weighted average common shares outstanding:
- Basic	50,204,523	42,618,325	7,586,198	18%
- Diluted	51,466,877	43,425,879	8,040,998	19%

CAPITAL EXPENDITURES

IROC's capital expenditures were as follows:

		Three months ended
$ 000's		March 31, 2012	March 31, 2011	Change $	Change %
Capital expenditures:
Drilling and Production Services		6,838	3,569	3,269	92%
Rental Services		1,937	1,525	412	27%
Corporate		39	21	18	86%
Discontinued operations		-	31	(31)	(100%)
Total capital expenditures		8,814	5,146	3,668	71%

The Corporation's strategy to organically grow its capital asset base, focused on our core businesses, has resulted in IROC having capital assets, as a whole, in new or like new condition.  Our service rigs represent the largest percentage of the Corporation's overall net book value of fixed assets and they are among the newest fleet of service rigs in the industry.

The Corporation has budgeted $21 million for capital expenditures during 2012 consisting of the following:

• $12.5-million -- for construction of five new service rigs in the Eagle Well Servicing division (includes $4.8 million from assets which were purchased in the fourth quarter of 2011);
• $8-million -- for expansion of rental inventory assets in the Aero Rental division;
• $0.5-million -- for maintenance and infrastructure expenditures.

As at March 31, 2012, the Corporation estimates $13.6 million of the $21 million 2012 capital budget has been spent with $7.4 million remaining to be spent.  Management continuously evaluates opportunities to grow the business and will adjust or increase the capital program if the opportunities and conditions warrant.

Dividends and Outstanding Share Data

The following table summarizes outstanding share data and potentially dilutive securities:

	May 23, 2012
Common shares	50,294,663
Stock options	1,791,996
Restricted share units	424,838

The following table summarizes dividends declared or paid since December 31, 2011:

Declaration Date	Record Date	Payment Date	Amount of Dividend per Common Share
December 20, 2011	January 9, 2012	January 13, 2012	$0.025
March 20, 2012	April 6, 2012	April 13, 2012	$0.025
May 23, 2012	July 6, 2012	July 13, 2012	$0.025

Outlook

IROC Energy Services Corp. had a record first quarter with quarterly EBITDAS that were the strongest in the history of the Corporation.  This also marked the 31^st consecutive quarter of positive EBITDAS, underscoring the fundamental strength of our core businesses and the ability of our assets to generate positive operating cash flow.  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.  Notwithstanding the challenging natural gas price environment, we expect continued support for all of the services we offer throughout 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 is expected 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 averaged 42.5 service rigs during the first quarter with 44 rigs in service at quarter end and another 3 service rigs on track to be in service by the start of the third quarter.  For 2012 we plan to average 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 for the full year 2012.

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.  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.  We continue to unlock the operating leverage available to us in this division as we add more equipment with increasing revenues and margins.   As industry acceptance of the new equipment and services remains strong, we anticipate being able to continue to profitably add assets in this division and are on track to meeting our budgeted $8 million in asset acquisitions for 2012, having spent $1.9 million in the first quarter.  Expansion of this business is expected to continue through 2012.

The contribution from our new start-up coil tubing business continues to be positive.  We expect continued growth in this business as we add 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.

Given the continuing growth of our businesses, 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 the first quarter and continue to be able to do so.  Our recent and planned growth continues to make IROC an attractive employer and provides opportunities to our workforce for career advancement.  We continue to have 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 July 13, 2012 to shareholders of record at the close of business on July 6, 2012.

Conference Call and Webcast

IROC will conduct a conference call on Thursday, May 24, 2012 at 10:00 a.m. MST (12:00 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) or [phone] (Toronto and outside North America) approximately 10 minutes prior to the call and request the "IROC Energy Services Corp. 2012 First Quarter 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/972421/1045149 from a web browser.

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, delivery and deployment of IROC's new service rigs and new coiled tubing units, the expected demand for our services, 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; the lack of availability of qualified personnel or management; 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 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 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 IFRS and do not have any standardized meaning prescribed by 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.

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

		Three months ended
$ 000's except number of shares and per share amounts		March 31, 2012	December 31, 2011	September 30, 2011	June 30, 2011
Net income (loss) from continuing operations		6,750	4,778	4,330	(331)
Depreciation and amortization		2,392	2,111	1,920	1,715
Loss (gain) on foreign exchange		(6)	(1)	23	8
Stock based compensation expense		145	167	169	115
Loss (gain) on disposal of equipment		(20)	(8)	7	7
Interest and financing costs		181	163	164	190
Note receivable recovery		-	-	-	-
Income taxes:
Current		1,185	-	-	-
Deferred		1,140	1,432	1,619	(62)
EBITDAS - continuing operations		11,767	8,642	8,232	1,642
EBITDAS per share - continuing operations
Basic		$0.23	$0.18	$0.16	$0.03
Diluted		$0.23	$0.18	$0.16	$0.03
		Three months ended
$ 000's except number of shares and per share amounts		March 31, 2011	December 31, 2010	September 30, 2010	June 30, 2010
Net income (loss) from continuing operations		4,602	2,703	1,068	(1,307)
Depreciation and amortization		1,650	1,857	1,755	1,553
Gain on foreign exchange		-	-	(2)	(3)
Stock based compensation expense		153	105	82	119
Loss (gain) on disposal of equipment		(25)	(17)	(24)	1
Interest and financing costs		286	305	304	275
Note receivable impairment		-	-	(300)	-
Income taxes:
Current		-	-	-	-
Deferred		1,731	367	414	(308)
EBITDAS - continuing operations		8,397	5,320	3,297	330
EBITDAS per share - continuing operations
Basic		$0.20	$0.12	$0.08	$0.01
Diluted		$0.19	$0.12	$0.08	$0.01

 

 

 

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

or

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