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CWC Well Services Corp. Releases Third Quarter 2012 Financial Results and Declares Quarterly Dividend

CALGARY, ALBERTA -- (Marketwire) -- 11/15/12 -- CWC Well Services Corp. (TSX VENTURE:CWC)("CWC" or the "Company") is pleased to release its operational and financial results for the three and nine months ended September 30, 2012. The Interim Financial Statements and Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2012 are filed on SEDAR at

Highlights for Q3 2012 and YTD 2012

--  Revenue for the nine month period of 2012 was $82.9 million, an increase
    of 13% over the same period of 2011. The third quarter of 2012 revenue
    decreased 14% to $26.9 million compared to the same quarter of 2011; 
--  EBITDAS for the nine month period of 2012 is $18.0 million, an increase
    of 1% compared to the same period of 2011. EBITDAS for the third quarter
    of 2012 was $6.3 million, decreasing from $8.1 million in the same
    period of 2011; 
--  Net income for the nine months ended September 30, 2012 was $3.1
    million, a decrease of 32% compared to the same period of 2011 due
    primarily to a charge for deferred income tax expense in 2012 with no
    similar expense in 2011. The third quarter of 2012 net income decreased
    to $1.3 million compared to $3.2 million for the same quarter of 2011; 
--  In Q1 of 2012 the Board of Directors initiated a quarterly dividend
    policy of $0.01625 per common share to shareholders resulting in an
    annualized dividend of $0.065 per common share. To date the Company has
    declared and paid dividends totaling $7.7 million or $0.04875 per share.
    The declaration of dividends reflects CWC's positive view of the
    sustainability of its cash flows and earnings in the future and the
    Company's ability to provide a meaningful return on investment for its
    shareholders without impacting the Company's ability to pursue long-term
    growth opportunities; 
--  The Company continues to grow its well servicing fleet with the addition
    of a new double service rig and a new slant service rig which were both
    put into service in Q2 2012. Recertification of an existing single
    service rig was also completed in November 2012 and put into service.
    CWC expects to complete the building of two more service rigs by the end
    of 2012 increasing the active service rig count to 68 service rigs by
    year end. In addition, a new Class III, 2" coil tubing unit is scheduled
    to be put into service in Q1 2013 increasing the fleet to 9 coil tubing
    units. CWC continues to upgrade and replace various support equipment to
    ensure CWC's fleet remains among the newest and most technologically
    advanced in the industry. 

Financial and Operating Highlights

                     THREE MONTHS ENDED           NINE MONTHS ENDED         
                           SEPTEMBER 30                SEPTEMBER 30         
$ thousands, except                                                         
 per share amounts,                          %                           %  
 margins and ratios      2012      2011 Change       2012      2011 Change  
FINANCIAL RESULTS                                                           
  Well servicing      $24,921   $25,419     (2%)  $75,672   $59,909     26% 
  Other oilfield                                                            
   services             1,966     5,805    (66%)    7,264    13,605    (47%)
                       26,887    31,224    (14%)   82,936    73,514     13% 
  EBITDAS (1)           6,348     8,141    (22%)   17,998    17,850      1% 
  EBITDAS margin (%)                                                        
   (1)                     24%       26%               22%       24%        
  Funds from (used                                                          
   in) operations                                                           
   (2)                  6,348     8,139    (30%)   17,996    17,846    (11%)
  Net income            1,255     3,174    (60%)    3,054     4,503    (32%)
  Net income margin                                                         
   (%)                      5%       10%                4%        6%        
  Dividends declared    2,670         -             7,724         -         
  Dividends paid        5,038         -             5,038         -         
Per share                                                                   
  Weighted average                                                          
   number of shares                                                         
   outstanding -                                                            
   basic              154,987   156,576           155,521   157,180         
  Weighted average                                                          
   number of shares                                                         
   outstanding -                                                            
   diluted            154,987   160,048           160,111   159,331         
  EBITDAS (1) per                                                           
   share - basic and                                                        
   diluted               0.04      0.05              0.12      0.11         
  Funds from                                                                
   operations per                                                           
   share - basic and                                                        
   diluted               0.04      0.05              0.12      0.11         
  Net income per                                                            
   share - basic and                                                        
   diluted               0.01      0.02              0.02      0.03         
                     SEPTEMBER  DECEMBER
                           30,       31,
                          2012      2011
FINANCIAL POSITION                      
 AND LIQUIDITY                          
  Working capital                       
   (excluding debt)                     
   (3)                   9,105    22,414
  Working capital                       
   (excluding debt)                     
   ratio                 1.8:1     3.4:1
  Total assets         147,566   159,774
  Total long-term                       
   debt (including                      
   current portion)     37,987    47,941
   equity               97,272   102,624
Notes 1 to 3 - Please refer to the Notes to Financial Highlights at the end 
of this release.                                                            

                              2012                        2011              
OPERATING           Quarter Quarter Quarter Quarter Quarter Quarter Quarter 
 HIGHLIGHTS               3       2       1       4       3       2       1 
WELL SERVICING                                                              
Service Rigs                                                                
  Number of service                                                         
   rigs, end of                                                             
   period                65      65      63      63      63      63      41 
  Hours worked       31,347  21,186  37,543  34,047  33,595  15,333  26,630 
  Utilization %          52%     36%     65%     59%     58%     38%     72%
Coil Tubing Units                                                           
  Number of units,                                                          
   end of period                                                            
   (1)                    8       8       8       7       6       6       6 
  Hours worked        1,034     417   3,956   2,404   1,448     567   2,960 
  Utilization %          22%      9%     90%     37%     26%     10%     55%
OTHER OILFIELD                                                              
Snubbing Units                                                              
  Number of units,                                                          
   end of period                                                            
   (2)                    7       7       7       5       5       5       5 
  Hours worked          574     241   2,065   2,421   1,692     293   1,950 
  Utilization %          11%      5%     46%     53%     37%      6%     43%
Well Testing Units                                                          
  Number of units,                                                          
   end of period         11      11      12      12      12      12      12 
  Number of tickets                                                         
   billed               410     238     468     429     421     178     467 
Notes 1  - For the purposes of calculating utilization 2 units were omitted 
           from the calculation from Q1 to Q3 2011 and one unit was omitted 
           from the calculation for the fourth quarter of 2011 as they were 
           undergoing retrofit to be converted to Class III 2" coil;        
     2   - For the purposes of calculating utilization units requiring      
           recertification before being available for use and units         
           undergoing conversion from 3,000 psi to 5,000 psi were omitted   
           from the calculation. For f 2011 this resulted in two units being
           omitted; an additional unit has been excluded as it is used for  
           training purposes                                                

Q3 2012 Overview

Q3 2012 started out with a seasonal pickup in activity in July 2012. In August and September 2012, these activity levels, which would normally increase throughout the quarter, showed a slight decrease throughout the latter part of Q3 2012 reflecting a less urgent desire for completions oriented work by our E&P customers and a general overall slowdown in drilling activities throughout the oilfield services sector. Drilling rig activity was down nearly 30% in Q3 2012 compared to Q3 2011. Service rig activity was less affected with the CAODC reporting activity was down approximately 8% in Q3 2012 compared to Q3 2011. Third quarter results reflect the decline in producer demand, a slower seasonal recovery and continued reductions in natural gas and liquids rich gas activities. Oil prices have remained relatively flat year-over-year, however, customers have moderated their spending in the second half of 2012 in an effort to operate within their stated 2012 budgets due to uncertainty over commodity price forecasts driven in part by global economic uncertainty. Our service rig results were only marginally impacted during Q3 2012 by the reduction in spending as they are more leveraged to oil-related activities whereas our snubbing units were significantly affected by its inherent exposure to natural gas related activities. The decrease in revenue and EBITDAS were primarily affected by the sale of our nitrogen assets in December 2011 which contributed to the Q3 2011 results without a similar contribution in Q3 2012. The nitrogen assets account for 47% of the revenue decrease in Q3 2012 and 48% of the EBITDAS decrease with snubbing accounting for 27% of the revenue decrease and 43% of the EBITDAS decrease.

Year-to-date revenue is up 13% due primarily to the addition of 22 service rigs from the Trinidad Well Servicing ("TWS") acquisition in June 2011 which contributed to a 26% increase in revenue in the Well Servicing segment. This overall revenue increase is offset by the sale in December 2011 of our nitrogen assets in our Other Oilfield Services segment that no longer contribute to revenue in 2012. In addition declines in snubbing activity in 2012 contributed to the 47% decrease in year-to-date revenue in the Other Oilfield Services segment. The nitrogen assets in 2011 contributed $5.0 million in year-to- date revenue. While revenue growth has increased 13%, EBITDAS has only increased 1% due primarily to the lower activity levels in snubbing in 2012 compared to 2011 and the higher margin nitrogen business which did not contribute to EBITDAS in 2012.

Oil-related work, which is more maintenance and service oriented, is where the vast majority of the service rig hours were achieved and is expected to continue in 2012 and beyond. CWC continues to minimize its exposure to depressed natural gas prices through its focus on oil. The slowdown in drilling activity for the second half of 2012 has inevitably resulted in a lag on completion oriented work. In anticipation of this slowdown, CWC started positioning itself to do more production maintenance, workover and abandonment services to offset the anticipated decline in completion work for its service rigs.


Total revenue for the three and nine months ended September 30, 2012 decreased 14% and increased 13% respectively year-over-year. Q3 2012 activity was affected by lower spending and a lack of urgency by customers on programs overall for both new well completions and production and maintenance related activities compared to that of 2011. The year-to-date increase is primarily due to the 22 service rigs acquired from TWS in the second quarter of 2011. Revenue in the third quarter was down primarily as a result of low utilization on coil tubing and snubbing assets and was further affected by no revenue contributions from nitrogen assets in 2012 as these assets were sold in December 2011.

CWC continues to focus on providing services to better capitalized and financed senior and intermediate exploration and production ("E&P") companies. In the third quarter of 2012, over 64% of our revenue was derived from our top ten customers all of whom are large or intermediate E&P companies. The Company also focuses on customers with higher exposure to oil opportunities instead of dry natural gas plays given the strong pricing for oil compared to that of dry natural gas.


EBITDAS for the third quarter of 2012 was $6.3 million (24% of revenue) compared to $8.1 million (26% of revenue) in the third quarter of 2011, a decline of $1.8 million or 22%. Year-to-date, EBITDAS was $18.0 million (22% of revenue) versus $17.9 million (24% of revenue). EBITDAS was lower in the current year as a result of the sale of the nitrogen assets in Dec 2011 which contributed $0.9 million and $1.6 million for the three and nine month periods of 2011 respectively. Further impacts were from lower activity levels, particularly in snubbing, as a result of reduced producer spending in response to lower commodity prices driven by uncertain macroeconomic conditions. Also impacting year-to-date EBITDAS was fixed salary costs for field employees in the coil tubing division when activity did not fully materialize and recertification costs being incurred in the second quarter ahead of planned timing.

Net Income

Net income for the three months ended September 30, 2012 was $1.3 million compared to $3.2 million for the third quarter of 2011; a decline of $1.9 million or 60%, primarily impacted by the sale of nitrogen assets in December 2011 and a decline in activity levels in Q3 2012. Net income on a year-to-date basis compared to 2011 declined 32% due primarily to a charge for deferred income tax expense in 2012 with no similar expense in 2011. Management remains focused on driving higher levels of profitability by capitalizing on its young and technologically advanced equipment fleet and high quality labour force.


Approximately 90% of CWC's work is currently derived from oil-related activities. Despite oil prices remaining at healthy levels averaging $92.26 per barrel for West Texas Intermediate in Q3 2012 compared to $89.59 per barrel in Q3 2011, the urgency from our exploration and production ("E&P") customers to get wells drilled and completed in Q3 2012 subsided compared to Q3 2011. Many global economic factors such as the high levels of European government debt, slowdown in China's GDP growth, uncertainty over the U.S. fiscal cliff combined with the potential results of the U.S. election, and the likelihood of Keystone XL and Northern Gateway pipelines being built on a timely basis if at all, likely contributed to the decision by our E&P customers to slowdown the pace of activity levels in Q3 2012. The result for the overall oilfield services industry was lower utilization levels in Q3 2012 compared to Q3 2011 as reflected in CWC's service rig utilization rate of 52% in Q3 2012 compared to Q3 2011 of 58%. Normally, activity levels would start to increase in Q4 and continue throughout the winter months. However, so far this quarter, an increase in Q4 2012 activity level above those of Q3 2012 appears to be delayed until later in the winter months. While there is a delay in spending by our E&P customers, every indication they have given CWC suggests a return to higher activity levels in Q1 2013. Supporting this thesis is the record number of oil well licenses issued in October 2012 of 1,003 wells compared to 943 wells in October 2011 and 780 wells in September 2012 in Western Canada. Year-to-date ended October 31, 2012 8,779 oil well permits were approved in Western Canada resulting in the second highest oil well permits issued in the last 10 years according to Daily Oil Bulletin.

During Q3 2012, CWC shifted its sales and operations focus towards maintenance, workover and abandonment activity as opposed to completions oriented work in its Service Rig division. CWC is not currently experiencing any pricing pressure in its Service Rigs division from its E&P customers nor do we expect to incur any material reductions to our hourly rates with an average rate of $755 per hour year-to-date in 2012 (2011 - $727 per hour). CWC also took the opportunity, during a slower Q3 2012, to build a better quality leadership and safety team in several areas of its Service Rig, Coil Tubing and Snubbing divisions, which management believes will have a positive impact in achieving future incremental revenue and cash flow. CWC intends to continue providing best-in-class services to our E&P customers through "Quality People Delivering Quality Service" with the most relevant, youngest and advanced fleet of equipment. In Q4 2012, CWC expects to take delivery of three additional service rigs and have two more service rigs, which were down for upgrades in Q3 2012, back in service. By year end 2012, CWC should have a total active service rig fleet of 68. We will continue to evaluate opportunities to grow the Well Servicing business segment through a disciplined approach in 2013, which may include the addition of new slant service rigs to service the growing number of steam assisted gravity drainage ("SAGD") wells.

Quarterly Dividend

The Company is pleased to announce that its Board of Directors has declared a quarterly dividend of $0.01625 per common share. The dividend will be paid on January 15, 2013 to shareholders of record on December 31, 2012. The ex-dividend date is December 27, 2012. This dividend is an eligible dividend for Canadian income tax purposes.

The declaration of dividends is determined on a quarter-by-quarter basis by the Board of Directors and reflects CWC's positive view on the sustainability of its cash flow and earnings in the future.

Financial Measures Reconciliations

                                     THREE MONTHS ENDED   NINE MONTHS ENDED 
                                           SEPTEMBER 30        SEPTEMBER 30 
$ thousands                              2012      2011      2012      2011 
NON-IFRS MEASURES                                                           
(1) EBITDAS:                                                                
  Net income                            1,255     3,174     3,054     4,503 
  Depreciation                          3,624     3,818    10,595    10,097 
  Finance costs                           719       940     2,193     2,525 
  Income tax expense (recovery)           519         -     1,406         - 
  Stock based compensation                201       185       603       651 
  Loss on sale of equipment                35        16       142        51 
  Unrealized (gain) loss on                                                 
   marketable securities                   (5)        8         5        23 
EBITDAS                                 6,348     8,141    17,998    17,850 
(2) Funds from (used in) operations:                                        
  Cash flows from (used in)                                                 
   operating activities                 5,154      (618)   28,984    15,311 
  Change in non-cash working capital   (1,194)   (8,757)   10,988    (2,535)
Funds from (used in) operations:        6,348     8,139    17,996    17,846 
(3) Gross margin:                                                           
Revenue                                26,887    31,224    82,936    73,514 
  Direct operating expenses           (17,197)  (19,143)  (54,462)  (46,006)
Gross margin                            9,690    12,081    28,474    27,508 
                                    SEPTEMBER  DECEMBER                     
                                           30       31,                     
                                         2012      2011                     
(4) Working capital (excluding                                              
Current Assets                         21,078    31,623                     
Less: Current Liabilities             (16,618)  (17,586)                    
Add: Current portion of long-term                                           
 debt                                   4,645     8,377                     
Working capital (excluding debt)        9,105    22,414                     
Notes 1 to 4 - Please refer to the Notes to Financial Highlights at the end 
of this release.                                                            

About CWC Well Services Corp.

CWC Well Services Corp. is a premier well servicing company operating in the Western Canadian Sedimentary Basin with a complementary suite of oilfield services including service rigs, coil tubing, snubbing and well testing. The Company's corporate office is located in Calgary, Alberta, with operational locations in Red Deer, Provost, Lloydminster, Brooks, and Grande Prairie, Alberta and Weyburn, Saskatchewan.

Notes to Financial Highlights

1.  EBITDAS (Earnings before interest, taxes, depreciation, amortization,
    gain/loss on disposal of asset, unrealized gain/loss on marketable
    securities, finance costs and stock based compensation) is not a
    recognized measure under IFRS. Management believes that in addition to
    net earnings, EBITDAS is a useful supplemental measure as it provides an
    indication of the Company's ability to generate cash flow in order to
    fund working capital, service debt, pay current income taxes, and fund
    capital programs. Investors should be cautioned, however, that EBITDAS
    should not be construed as an alternative to net income (loss) and
    comprehensive income (loss) determined in accordance with IFRS as an
    indicator of the Company's performance. CWC's method of calculating
    EBITDAS may differ from other entities and accordingly, EBITDAS may not
    be comparable to measures used by other entities. For a reconciliation
    of EBITDAS to net income (loss) and comprehensive income (loss). 
2.  Funds from (used in) operations and funds from (used in) operations per
    share are not recognized measures under IFRS. Management believes that
    in addition to cash flow from operations, funds from (used in)
    operations is a useful supplemental measure as it provides an indication
    of the cash flow generated by the Company's principal business
    activities prior to consideration of changes in working capital.
    Investors should be cautioned, however, that funds from (used in)
    operations should not be construed as an alternative to cash flow from
    (used in) operations determined in accordance with IFRS as an indicator
    of the Company's performance. CWC's method of calculating funds from
    (used in) operations may differ from other entities and accordingly,
    funds from (used in) operations may not be comparable to measures used
    by other entities. Funds from (used in) operations is equal to cash flow
    from (used in) operations before changes in non-cash working capital
    items related to operations, interest and income taxes paid, financing
    costs, and income tax expense. 
3.  Gross margin is calculated from the statement of comprehensive income
    (loss) as revenue less direct operating expenses and is used to assist
    management and investors in assessing the Company's financial results
    from operations excluding fixed overhead costs. Gross margin is a non-
    IFRS measure and does not have any standardized meaning prescribed by
    IFRS and may not be comparable to similar measures provided by other
4.  Working capital (excluding debt) is calculated based on current assets
    less current liabilities excluding the current portion of long-term
    debt. Working capital is used to assist management and investors in
    assessing the Company's liquidity and its' ability to generated funds.
    Working capital (excluding debt) does not have any meaning prescribed
    under IFRS and may not be comparable to similar measures provided by
    other companies. 

Certain statements contained in this press release, including statements which may contain such words as "could", "should", "believe", "expect", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking statements, including, but not limited to, statements as to: future capital expenditures, including the amount and nature thereof; revenue growth; equipment additions; business strategy; expansion and growth of the Company's business and operations; service rig utilization rates, outlook for oil and natural gas prices and general market conditions and other matters. Management has made certain assumptions and analyses which reflect their experiences and knowledge in the industry, including, without limitations, assumptions pertaining to well services demand as a result of commodity prices. These assumptions and analyses are believed to be accurate and truthful at the time, but the Company cannot assure readers that actual results will be consistent with these forward-looking statements. However, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. All forward-looking statements made in the press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected outcomes to, or effects on, the Company or its business operations. The Company does not intend and does not assume any obligation to update these forward-looking statements, except as expressly required to do so pursuant to applicable securities laws. Any forward-looking statements made previously may be inaccurate now.

                      STATEMENT OF FINANCIAL POSITION                       
                          CWC Well Services Corp.                           
               As at September 30, 2012 and December 31, 2011               
                                             September 30,     December 31, 
in thousands of Canadian dollars                      2012             2011 
Current assets                                                              
  Marketable securities                    $            39  $            43 
  Accounts receivable                               18,044           28,850 
  Loans to employees                                   163                - 
  Inventory                                          2,528            2,441 
  Prepaid expenses and deposits                        304              289 
                                                    21,078           31,623 
Property and equipment                             126,488          126,919 
Loans to employees                                       -              160 
Deferred tax asset                                       -            1,072 
                                           $       147,566  $       159,774 
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current liabilities                                                         
  Bank indebtedness                        $         1,551  $         1,810 
  Accounts payable and accrued liabilities           7,904            7,399 
  Dividends payable                                  2,518                - 
  Current portion of long-term debt                  4,645            8,377 
                                                    16,618           17,586 
Deferred tax liability                                 334                - 
Long-term debt                                      33,342           39,564 
                                                    50,294           57,150 
SHAREHOLDERS' EQUITY                                                        
Share capital                                      108,081          109,143 
Contributed surplus                                  5,616            5,236 
Deficit                                            (16,425)         (11,755)
                                                    97,272          102,624 
                                           $       147,566  $       159,774 
                      STATEMENT OF COMPREHENSIVE INCOME                     
                           CWC Well Services Corp.                          
       For the three and nine months ended September 30, 2012 and 2011      
                                  Three Months Ended       Nine Months Ended
                                       September 30,           September 30,
in thousands of Canadian                                                    
 dollars                           2012         2011        2012        2011
REVENUE                      $   26,887  $    31,224  $   82,936 $    73,514
  Direct operating expenses      17,197       19,143      54,462      46,006
  Selling and administrative                                                
   expenses                       3,342        3,940      10,476       9,658
  Stock based compensation          201          185         603         651
  Finance costs                     719          940       2,193       2,525
  Depreciation                    3,624        3,818      10,595      10,097
  Loss on disposal of                                                       
   equipment                         35           16         142          51
  Unrealized (gain) loss on                                                 
   marketable securities             (5)           8           5          23
                                 25,113       28,050      78,476      69,011
NET INCOME BEFORE TAXES           1,774        3,174       4,460       4,503
DEFERRED INCOME TAX EXPENSE         519            -       1,406           -
NET INCOME AND COMPREHENSIVE                                                
 INCOME                           1,255        3,174       3,054       4,503
NET INCOME PER SHARE                                                        
  Basic and diluted earnings                                                
   per share                 $     0.01  $      0.02  $     0.02 $      0.03
                       STATEMENT OF CHANGES IN EQUITY                       
                          CWC Well Services Corp.                           
           For the nine months ended September 30, 2012 and 2011            
                                   Share   Contributed                Total 
in thousands            Shares   Capital       Surplus    Deficit    Equity 
Balance at January 1,                                                       
 2011                  158,739  $110,774  $      3,657  $ (24,445) $ 89,986 
Net income and                                                              
 comprehensive income                                                       
 for the period              -         -             -      4,503     4,503 
Transactions with                                                           
 owners, recorded                                                           
 directly in equity                                                         
  Stock based                                                               
   compensation              -         -           651          -       651 
  Shares issued            172        72           (29)                  43 
  Shares redeemed       (2,304)   (1,591)          797          -      (794)
Balance at September                                                        
 30, 2011              156,607  $109,255  $      5,076  $ (19,942) $ 94,389 
Balance at January 1,                                                       
 2012                  156,444  $109,143  $      5,236  $ (11,755) $102,624 
Net income and                                                              
 comprehensive income                                                       
 for the period              -         -             -      3,054     3,054 
Transactions with                                                           
 owners, recorded                                                           
 directly in equity                                                         
  Stock based                                                               
   compensation              -         -           550          -       550 
  Shares issued            143        58           (23)         -        35 
  Shares redeemed       (1,625)   (1,120)         (147)         -    (1,267)
  Dividends declared         -         -             -     (7,724)   (7,724)
Balance at September                                                        
 30, 2012              154,962  $108,081  $      5,616  $ (16,425) $ 97,272 
                          STATEMENT OF CASH FLOWS                           
                          CWC Well Services Corp.                           
           For the nine months ended September 30, 2012 and 2011            
in thousands of Canadian dollars                      2012             2011 
CASH PROVIDED BY (USED IN):                                                 
  Net income                               $         3,054  $         4,503 
  Adjustments for:                                                          
    Stock based compensation                           603              651 
    Interest on employee loans                          (2)              (4)
    Finance costs                                    2,193            2,525 
    Loss on disposal of equipment                      142               51 
    Unrealized loss on marketable                                           
     securities                                          5               23 
    Deferred income tax expense                      1,406                - 
    Depreciation                                    10,595           10,097 
                                                    17,996           17,846 
  Change in non-cash working capital                10,988           (2,535)
                                                    28,984           15,311 
  Acquisitions                                           -          (38,000)
  Purchase of equipment                            (10,643)          (3,007)
  Proceeds on sale of equipment                        470               46 
                                                   (10,173)         (40,961)
  Issue of long-term debt                                -           60,000 
  Repayment of long-term debt                      (10,000)         (33,000)
  Increase (decrease) in bank indebtedness            (259)           1,666 
  Finance costs paid                                  (143)            (420)
  Interest paid                                     (2,033)          (2,160)
  Finance lease repayments                            (106)            (104)
  Common shares repurchased, net of                                         
   proceeds on options                              (1,232)            (332)
  Dividends paid                                    (5,038)               - 
                                                   (18,811)          25,650 
CHANGE IN CASH                                           -                - 
CASH, BEGINNING OF PERIOD                                -                - 
CASH, END OF PERIOD                        $             -  $             - 

READER ADVISORY - 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.

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One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Hadoop as a Service (as offered by handful of niche vendors now) is a cloud computing solution that makes medium and large-scale data processing accessible, easy, fast and inexpensive. In his session at Big Data Expo, Kumar Ramamurthy, Vice President and Chief Technologist, EIM & Big Data, at Virtusa, will discuss how this is achieved by eliminating the operational challenges of running Hadoop, so one can focus on business growth. The fragmented Hadoop distribution world and various PaaS solutions that provide a Hadoop flavor either make choices for customers very flexible in the name of opti...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and expertise to guard against those threats. But will that be enough? In the foreseeable future attacks w...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
The cloud is now a fact of life but generating recurring revenues that are driven by solutions and services on a consumption model have been hard to implement, until now. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, will discuss how a top European telco has leveraged the innovative recurring revenue generating capability of the consumption cloud to enable a unique cloud monetization model to drive results.
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will discuss how to cut costs, scale easily, and unleash insight with CommVault Simpana software, the only si...
Analytics is the foundation of smart data and now, with the ability to run Hadoop directly on smart storage systems like Cloudian HyperStore, enterprises will gain huge business advantages in terms of scalability, efficiency and cost savings as they move closer to realizing the potential of the Internet of Things. In his session at 16th Cloud Expo, Paul Turner, technology evangelist and CMO at Cloudian, Inc., will discuss the revolutionary notion that the storage world is transitioning from mere Big Data to smart data. He will argue that today’s hybrid cloud storage solutions, with commodity...
Every innovation or invention was originally a daydream. You like to imagine a “what-if” scenario. And with all the attention being paid to the so-called Internet of Things (IoT) you don’t have to stretch the imagination too much to see how this may impact commercial and homeowners insurance. We’re beyond the point of accepting this as a leap of faith. The groundwork is laid. Now it’s just a matter of time. We can thank the inventors of smart thermostats for developing a practical business application that everyone can relate to. Gone are the salad days of smart home apps, the early chalkb...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, will focus on how to set up a cloud data governance program and s...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...