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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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"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
You often hear the two titles of "DevOps" and "Immutable Infrastructure" used independently. In his session at DevOps Summit, John Willis, Technical Evangelist for Docker, covered the union between the two topics and why this is important. He provided an overview of Immutable Infrastructure then showed how an Immutable Continuous Delivery pipeline can be applied as a best practice for "DevOps." He ended the session with some interesting case study examples.
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
JavaScript is primarily a client-based dynamic scripting language most commonly used within web browsers as client-side scripts to interact with the user, browser, and communicate asynchronously to servers. If you have been part of any web-based development, odds are you have worked with JavaScript in one form or another. In this article, I'll focus on the aspects of JavaScript that are relevant within the Node.js environment.
Alibaba, the world’s largest ecommerce provider, has pumped over a $1 billion into its subsidiary, Aliya, a cloud services provider. This is perhaps one of the biggest moments in the global Cloud Wars that signals the entry of China into the main arena. Here is why this matters. The cloud industry worldwide is being propelled into fast growth by tremendous demand for cloud computing services. Cloud, which is highly scalable and offers low investment and high computational capabilities to end us...
One of the ways to increase scalability of services – and applications – is to go “stateless.” The reasons for this are many, but in general by eliminating the mapping between a single client and a single app or service instance you eliminate the need for resources to manage state in the app (overhead) and improve the distributability (I can make up words if I want) of requests across a pool of instances. The latter occurs because sessions don’t need to hang out and consume resources that could ...
Approved this February by the Internet Engineering Task Force (IETF), HTTP/2 is the first major update to HTTP since 1999, when HTTP/1.1 was standardized. Designed with performance in mind, one of the biggest goals of HTTP/2 implementation is to decrease latency while maintaining a high-level compatibility with HTTP/1.1. Though not all testing activities will be impacted by the new protocol, it's important for testers to be aware of any changes moving forward.
This week, I joined SOASTA as Senior Vice President of Performance Analytics. Given my background in cloud computing and distributed systems operations — you may have read my blogs on CNET or GigaOm — this may surprise you, but I want to explain why this is the perfect time to take on this opportunity with this team. In fact, that’s probably the best way to break this down. To explain why I’d leave the world of infrastructure and code for the world of data and analytics, let’s explore the timing...
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Auto-scaling environments, micro-service architectures and globally-distributed teams are just three common examples of why organizations today need automation and interoperability more than ever. But is interoperability something we simply start doing, or does it require a reexamination of our processes? And can we really improve our processes without first making interoperability a requirement for how we choose our tools?
Cloud Migration Management (CMM) refers to the best practices for planning and managing migration of IT systems from a legacy platform to a Cloud Provider through a combination professional services consulting and software tools. A Cloud migration project can be a relatively simple exercise, where applications are migrated ‘as is’, to gain benefits such as elastic capacity and utility pricing, but without making any changes to the application architecture, software development methods or busine...
The Internet of Things. Cloud. Big Data. Real-Time Analytics. To those who do not quite understand what these phrases mean (and let’s be honest, that’s likely to be a large portion of the world), words like “IoT” and “Big Data” are just buzzwords. The truth is, the Internet of Things encompasses much more than jargon and predictions of connected devices. According to Parker Trewin, Senior Director of Content and Communications of Aria Systems, “IoT is big news because it ups the ante: Reach out ...
At DevOps Summit NY there’s been a whole lot of talk about not just DevOps, but containers, IoT, and microservices. Sessions focused not just on the cultural shift needed to grow at scale with a DevOps approach, but also made sure to include the network ”plumbing” needed to ensure success as applications decompose into the microservice architectures enabling rapid growth and support for the Internet of (Every)Things.
Our guest on the podcast this week is Adrian Cockcroft, Technology Fellow at Battery Ventures. We discuss what makes Docker and Netflix highly successful, especially through their use of well-designed IT architecture and DevOps.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps