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Xtreme Drilling and Coil Services Announces Second Quarter 2014 Operating and Financial Results

CALGARY, ALBERTA -- (Marketwired) -- 08/07/14 -- Xtreme Drilling and Coil Services ("Xtreme" or the "Company") (TSX: XDC) announces summary results for the three and six months ended June 30, 2014. It is anticipated that filing will take place on SEDAR of the Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis on Friday, August 8, 2014.

Highlights - Q2 2014


--  Adjusted EBITDA was $19.4 million for the second quarter, a decrease of
    6% over the previous quarter and an increase of 15% over the second
    quarter of 2013. The decrease from the prior quarter was primarily due
    to normal Canadian seasonality as well as one less XSR coiled tubing
    unit in operation during the quarter. The unit was damaged during a
    routine operation and spent the entire quarter under repair and returned
    to work in mid-July. The decrease was offset by mobilization revenue
    recognized for the two rigs upgraded and shipped to India during the
    second quarter.

--  Revenue was $62.3 million in the second quarter of 2013, or a decrease
    of 11% over the previous quarter. The decrease in revenue for the
    quarter was a function of fewer operating days in Canada as well as the
    US XSR segment. Revenue per operating day increased significantly to
    $35.0 thousand from $32.7 thousand in the first quarter. The increase is
    attributed to the mobilization revenue for the two rigs shipped to India
    during the quarter.

--  The Company had 1,779 operating days, or 351 fewer days than the first
    quarter of 2014. This resulted in a utilization rate of 73% for the
    fleet of 21 XDR drilling rigs and 7 XSR coiled tubing units.

    The drilling segment achieved utilization of 75% on 1,433 operating
    days. This is comprised of an 84% utilization rate in the US XDR fleet
    and 22% for the Canadian XDR rigs. The decrease in US utilization was
    based on the fact that the two rigs shipped to India did not record
    operating days for the quarter. They did generate mobilization revenue
    in the quarter through a one-time payment made by the customer as part
    of the initial mobilization of the rigs to India. In addition, we had a
    XDR 500 rig down for approximately six weeks for a major inspection and
    recertification prior to going to a new client.

    For the second quarter, the coil services segment achieved utilization
    of 68% on 346 operating days. The utilization was negatively affected by
    one unit that was idle for the entire period due to damage sustained in
    a routine operation.

--  The Company recognized a Net Loss of $0.9 million or $.01 per fully
    diluted share for the second quarter. This includes a loss on disposal
    of equipment of $3.9 million during the quarter. Excluding this charge,
    net income would have been approximately $2.1 million or $.03 per share.

--  The Company paid down an additional $5.3 million in debt during the
    quarter. Net debt at quarter end was $105.4 million in Canadian Dollars.
    At quarter end, all but $2.0 million of the Company's debt was
    denominated in US dollars and translated for financial reporting
    purposes to Canadian Dollars. Xtreme exited the quarter with
    approximately $34.0 million available on the Company's revolving credit
    facility and working capital of $43.5 million. The funded debt to EBITDA
    ratio as calculated for the Company's credit facility was 1.8x, which is
    well under the credit facility covenant level of 3.0. In addition, the
    net debt to EBITDA ratio dropped to 1.2x for the second quarter. Capital
    expenditures totaled $21.0 million for the quarter with a target full
    year 2014 capital budget of $70.0 to $72.0 million which is anticipated
    to be funded through operating cash flow.

Selected Quarterly Financial Information (unaudited)

                                      Jun 30,   Mar 31,   Dec 31,   Sep 30,
Three months ended                       2014      2014      2013      2013
----------------------------------------------------------------------------
Revenue                                62,299    69,703    62,681    59,692
Adjusted EBITDA (1)                    19,421    20,635    19,734    17,783
Adjusted EBITDA as a percentage of
 Revenue                                   31        30        31        30
Adjusted EBITDA per share (1) -
 basic ($)                               0.24      0.25      0.24      0.22
Net (loss)income                         (902)    2,896    (7,441)    3,281
Net income (loss) per share - basic
 ($)                                    (0.01)     0.04     (0.09)     0.04
Capital assets                        413,296   423,204   412,523   416,887
Total assets                          513,651   532,116   515,720   504,728
Net debt (2)                          105,358   125,389   116,856   110,326
----------------------------------------------------------------------------
Operating days (1)                      1,779     2,130     2,141     2,062
Utilization (percentage) - XDR             75        90        93        90
Utilization (percentage) - XSR             68        78        76        76
Utilization (percentage) - Total           73        88        90        87
Weighted average rigs in service         28.0      28.0      28.0      28.0
Total rigs, end of quarter                 28        28        28        28
----------------------------------------------------------------------------

                                      Jun 30,   Mar 31,   Dec 31,   Sep 30,
                                         2013      2013      2012      2012
----------------------------------------------------------------------------
Revenue                                53,268    54,182    51,813    48,948
Adjusted EBITDA (1)                    16,847    19,234    15,029     4,459
Adjusted EBITDA as a percentage of
 Revenue                                   32        35        29         9
Adjusted EBITDA per share (1) -
 basic ($)                               0.21      0.24      0.19      0.07
Net income (loss)                         239     4,487     4,579    (2,935)
Net income (loss) per share - basic
 ($)                                     0.00      0.06      0.06     (0.04)
Capital assets                        431,294   417,431   415,354   425,364
Total assets                          520,326   508,823   506,551   511,318
Net debt (2)                          127,977   130,014   141,841   119,759
----------------------------------------------------------------------------
Operating days (1)                      1,911     1,949     1,891     1,742
Utilization (percentage) - XDR             85        89        85        86
Utilization (percentage) - XSR             65        60        58        45
Utilization (percentage) - Total           81        83        80        77
Weighted average rigs in service         28.0      28.0      26.8      26.0
Total rigs, end of quarter                 28        28        28        28
----------------------------------------------------------------------------

(1) Adjusted EBITDA. See Reconciliation of adjusted EBITDA below

(2) Total debt less cash

Excerpt from Management's Discussion and Analysis

For the three and six months ended June 30, 2014

Outlook

Activity remained strong in Xtreme's core operating areas of the Eagle Ford, Niobrara and Bakken during the second quarter. Production from each of these tight oil resource plays continues to surge higher with the Eagle Ford and Bakken being the largest producers of oil and condensates in the United States. The trend toward faster moving higher specification rigs has benefitted Xtreme as the fleet of 21 XDR drilling rigs and seven XSR coiled tubing units are all AC electric, tier 1 quality. Because of this Xtreme is well positioned to take advantage of the many opportunities in the US unconventional resource play market. Whereas many of our drilling and service competitors focus has been on upgrading technology and fleet quality.

The Company is excited by the opportunity of a new growth market for drilling services in India. Two XDR 300 rigs were shipped to the country during the second quarter. The XDR 300 rig is a tier 1 rig which is an ideal fit for markets that have slightly shallower well profiles but still demand the performance of an AC electric drilling rig. India fit this profile well and we have partnered with a new customer that is working to build efficiencies and improve their drilling program. This deployment fits with Xtreme's strategy of optimizing the fleet by moving into regions that value and will pay a premium for drilling performance with technology. As of this release one rig had begun operations with the second rig likely to start in the next week. It is anticipated that the initial contract will have a term of 15 to 18 months with the opportunity of additional wells upon completion.

In the United States XDR drilling activity remained robust. Prospects for contract renewals in the coming six months appear strong. We have seven rigs with contracts that expire by the end of 2014. We are confident that each of these should contract at slightly higher rates and a majority of the rigs should re-contract with the current customer. During the second quarter Xtreme continued to invest in the existing fleet. We are committed to drive performance through a focus on planned maintenance, crew training and safety. As we implement these new processes we saw margins slightly compress in the first half of 2014. However, we have begun to see the benefits of this focus as our fleet downtime has decreased by roughly 50% over the past 12 months. In addition, we anticipate drilling margins will trend higher as repair and maintenance expenses come down over the second half of 2014. In Canada XDR drilling activity was slow in the second quarter with the seasonal road bans. The three XDR 200 rigs in Canada are back working and scheduled to operate through March of 2015.

In the US XSR division, coiled tubing demand remained far greater that our ability to supply services. As previously announced one of the units was idle for the entire second quarter. It had an incident during a routine operation that caused damage. Revenue was down for the quarter in this segment due to the incident. The unit is back to work and we anticipate that activity will remain strong in the Eagle Ford for the remainder of the year. The combination of our proprietary technology with AC electric units and large diameter 2 5/8" coiled tubing continues to provide significant value to our customers. The Company is on target to deliver two new XSR units to South Texas in October and December of this year and six additional units in 2015 and 2016. Several potential customers have already inquired as to availability and delivery schedules of the new units. We anticipate that the trend towards larger diameter coil in the Eagle Ford will only increase in the future as operators are able to mitigate downhole issues and complete wells to greater lengths. Based on this Xtreme is very confident that we can grow our market share in South Texas and potentially other regions through our new build program.

In Saudi Arabia performance remains very strong. The operation has been an exciting example of the benefits of coiled tubing drilling. Xtreme continues to pursue additional opportunities in Saudi and other markets that see the potential value in underbalanced coiled tubing drilling. We anticipate during the second half of the year our customer in Saudi Arabia will make a final decision on the need for additional units on this project. We remain cautiously optimistic that we can add units into this market.

Second Quarter Conference Call

Xtreme has scheduled a conference call on Friday, August 8, 2014, at 10:00 am MDT, 11:00 am CT. Tom Wood, Chief Executive Officer, will host the conference call with participation from Matt Porter, Chief Financial Officer, and will answer questions from analysts and investors.

To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone.

+1 866-225-0198 (North America Toll-Free) or +1 416-340-2216 (Alternate)

http://www.gowebcasting.com/5630

An audio replay of the call will be available until Friday, August 15, 2014. To access the replay, call +1 800-408-3053 or +1 905-694-9451 and enter pass code 4791073.

Reader Advisory

This news release, or documents incorporated herein, contains forward-looking statements ("FLS"). More particularly, this news release contains statements that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, utilization of drilling rigs in the Company's current and future fleet, and any potential outcome relating to claims and litigation. Further, the FLS herein may relate to trade credit insurance carried by the Company to mitigate receivables collection risk. Although Xtreme believes expectations reflected in these FLS are reasonable, readers should not place undue reliance on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause FLS not to be correct, including risks and uncertainties inherent in the Company's business.

These statements are based on certain factors and assumptions including, but not limited to: the assessment of current and projected future operations; ongoing and future strategic business alliances, negotiations and opportunities to enter new, extend or complete existing contracts; the availability and cost of financing; foreign currency exchange rates; timing and magnitude of capital expenditures; expenses and other variables affecting rig operation, modification and construction; the ability and commitment of vendors to provide rig component equipment, services and supplies, including labor, in a cost-effective and timely manner; the issuance of applied-for patents; changes in tax rates; and government regulations. Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of August 7, 2014, ultimately the assumptions may prove to be incorrect.

Forward-looking statements are also subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from management's current expectations. These factors include, but are not limited to: the cyclical nature of drilling market demand, foreign currency exchange rates, and commodity prices; access to credit and to equity markets; the availability of qualified personnel; vendor-provided rig components; and, competition for customers.

Management's assumptions considered the following: compliance with the terms of the Company's current credit facility; ongoing access to key supplies and components required to continue operating and maintaining equipment, including fuel; continued successful performance of drilling and related equipment; expectations regarding gross margin; recruitment and retention of qualified personnel; continuation or extension of existing long-term or multi-well contracts; revenue expectations related to shorter-term drilling opportunities; willingness and ability of customers to remit amounts owing to Xtreme in accordance with normal industry practices; and management of accounts receivable in direct relation to revenue generation.

In preparing this news release, management considered the following risk factors: fluctuations in crude oil and natural gas prices, supply and demand; fluctuation in foreign currency exchange and interest rates; financial stability of Xtreme's customers; current and future applications for Xtreme's proprietary technology; competition from other drilling contractors; regulatory and economic conditions in regions where Xtreme operates; environmental constraints; changes to government legislation; international trade barriers or restrictions; and, where appropriate, global political and military events.

Financial outlook information contained in this news release about prospective results of operations, financial position or cash provided by operating activities is based on assumptions about future events, including economic conditions and proposed courses of action, and on management's assessment of relevant information currently available. Readers are cautioned such financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLS and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme disclaims any intention, and assumes no obligation, to update publicly or revise FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise.

About Xtreme

Xtreme Drilling and Coil Services Corp. ("XDC" on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification drilling rigs and coiled tubing well service units featuring leading-edge proprietary technology including AC high capacity coil injectors, deep re-entry drilling capability, modular transportation systems and continuous integration of in-house advances in methodologies.

Currently Xtreme operates two service lines: Drilling Services (XDR) and Coil Services (XSR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada, the United States, Saudi Arabia and India. For more information about the Company, please visit www.xtremecoil.com.


Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
(unaudited)

                                               June 30, 2014   Dec 31, 2013
                                              ------------------------------
                                              ------------------------------
Assets
Current assets
  Cash and cash equivalents                           18,242         12,220
  Accounts receivable                                 45,727         60,084
  Other receivables                                    1,431          1,306
  Prepaid expenses and other                           6,157          2,491
  Income tax recoverable                                 583            462
  Inventory                                           11,091          8,181
                                              ------------------------------
                                                      83,231         84,744
Non-current assets
Deferred tax asset                                    13,359         14,536
Property and equipment                               413,296        412,523
Intangible assets                                      3,765          3,917
                                              ------------------------------
Total Assets                                         513,651        515,720
                                              ------------------------------
                                              ------------------------------

Liabilities and Equity
Current liabilities
  Accounts payable and accrued liabilities            38,179         28,051
  Fair value of non-controlling interest
   liability                                               -         12,763
  Current portion of provision                         1,601              -
  Current portion of long-term debt                        -            669
                                              ------------------------------
                                                      39,780         41,483
Long-term liabilities
Fair value of non-controlling interest
 liability                                                 -          1,596
Long-term portion of provision                         1,601              -
Long-term debt                                       123,600        128,407
                                              ------------------------------
Total Liabilities                                    164,981        171,486
                                              ------------------------------

Shareholders' equity
Share capital                                        331,101        328,416
Share option reserve                                  12,937         12,419
Accumulated deficit                                  (11,082)       (12,697)
Foreign currency translation reserve                  15,714         15,143
                                              ------------------------------
                                                     348,670        343,281
Non-controlling interest                                   -            953
                                              ------------------------------
Total Shareholders' Equity                           348,670        344,234
                                              ------------------------------
Total Liabilities and Shareholders' Equity           513,651        515,720
                                              ------------------------------
                                              ------------------------------

Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of (Loss) Income
For the three and six months ended June 30, 2014 and 2013
(in thousands of Canadian dollars, except share and per share data)
(unaudited)

                                   Three months ended      Six months ended
                                --------------------------------------------
                                --------------------------------------------
                                  June 30,   June 30,   June 30,   June 30,
                                      2014       2013       2014       2013
                                --------------------------------------------
Revenue                             62,299     53,268    132,002    107,450

Expenses
Operating expenses                  38,383     33,560     83,450     65,957
General and administrative
 expenses                            4,495      2,861      8,496      5,412
Change in fair value of non-
 controlling interest liability          -        (31)         -       (238)
Depreciation of property and
 equipment                          13,328      9,098     26,558     17,641
Amortization of intangibles             76         76        152        152
Stock-based compensation               671        210      1,387        430
Foreign exchange loss                   86      3,272         75      5,145
Loss (gain) on disposal of
 equipment                           3,884       (117)     3,903         31
Other (income) expenses                (17)        21         12         57
Interest expense                     1,066      1,664      2,292      3,783
                                --------------------------------------------
                                --------------------------------------------
Income before tax for the period       327      2,654      5,677      9,080

Tax expense
Current                              1,219        894      2,503      1,612
Deferred                                10      1,521      1,180      2,741
                                --------------------------------------------
                                --------------------------------------------
Total tax expense                    1,229      2,415      3,683      4,353

Net (loss) income for the period      (902)       239      1,994      4,727
                                --------------------------------------------
                                --------------------------------------------

Net (loss) income attributable
 to
  Owners of the parent                (902)       (73)     1,994      4,040
  Non-controlling interest               -        312          -        687
                                --------------------------------------------
                                      (902)       239      1,994      4,727
                                --------------------------------------------
                                --------------------------------------------


Net (loss) income per common
 share attributable to equity
 owners of the parent
- basic                              (0.01)      0.00       0.02       0.01
- diluted                            (0.01)      0.00       0.02       0.01

Weighted average number of
 common shares
- basic                         81,574,045 80,790,315 81,389,932 80,790,315
- diluted                       82,595,009 81,200,643 82,342,017 81,098,340

Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Comprehensive (Loss) Income
For the three and six months ended June 30, 2014 and 2013
(in thousands of Canadian dollars)
(unaudited)

                                     Three months ended    Six months ended
                                    ----------------------------------------
                                    ----------------------------------------
                                     June 30,  June 30,  June 30,  June 30,
                                         2014      2013      2014      2013
                                    ----------------------------------------
Net (loss) income for the period         (902)      239     1,994     4,727
Other comprehensive (loss) income
Items that may be subsequently
 reclassified to profit or loss
Unrealized (loss) gain on
 translating financial statements of
 foreign operations                   (11,896)   14,384       571    22,154
Dividends declared to non-
 controlling interest partner               -         -    (1,332)        -
                                    ----------------------------------------
Comprehensive (loss) income for the
 period                               (12,798)   14,623     1,233    26,881
                                    ----------------------------------------
                                    ----------------------------------------


Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Changes in Equity
For the six months ended June 30, 2014 and 2013
(in thousands of Canadian dollars)
(unaudited)

                         Equity attributable to the owners of the parent

                                                          Foreign
                                    Share                currency
                          Share    option Accumulated translation
                        capital   reserve     deficit     reserve     Total
                      ------------------------------------------------------
                      ------------------------------------------------------
Balance at Jan 1, 2013  327,197    11,572     (12,370)    (11,314)  315,085
                      ------------------------------------------------------
                      ------------------------------------------------------
Net income for the
 year                         -         -       4,040           -     4,040
Other comprehensive
 income
  Currency translation
   differences                -         -           -      21,551    21,551
                      ------------------------------------------------------
Total comprehensive
 income                       -         -       4,040      21,551    25,591
                      ------------------------------------------------------
Employee share option
 scheme:
  Value of employee
   services                   -       430           -           -       430
  Proceeds from shares
   issued                   (13)        -           -           -       (13)
                      ------------------------------------------------------
Total transactions
 with owners                (13)      430           -           -       417
                      ------------------------------------------------------
Balance at Jun 30,
 2013                   327,184    12,002      (8,330)     10,237   341,093
                      ------------------------------------------------------
                      ------------------------------------------------------
Balance at Jan 1, 2014  328,416    12,419     (12,697)     15,143   343,281
                      ------------------------------------------------------
                      ------------------------------------------------------
Net income for the
 year                         -         -       1,994           -     1,994
Other comprehensive
 income
  Currency translation
   differences                -         -           -         571       571
  Dividends declared
   to non-controlling
   interest partner           -         -           -           -         -
  Settlement for the
   purchase of non-
   controlling
   interest partner           -         -        (379)          -      (379)
                      ------------------------------------------------------
Total comprehensive
 income                       -         -       1,615         571     2,186
                      ------------------------------------------------------
Employee share option
 scheme:
  Value of employee
   services                 868     1,386           -           -     2,254
  Proceeds from shares
   issued                 1,817      (868)          -           -       949
                      ------------------------------------------------------
Total transactions
 with owners              2,685       518           -           -     3,203
                      ------------------------------------------------------
Balance at Jun 30,
 2014                   331,101    12,937     (11,082)     15,714   348,670
                      ------------------------------------------------------
                      ------------------------------------------------------





                                                        Non-          Total
                                                 controlling  Shareholders'
                                                    interest         Equity
                      ------------------------------------------------------
                      ------------------------------------------------------
Balance at Jan 1, 2013                                 2,922        318,007
                      ------------------------------------------------------
                      ------------------------------------------------------
Net income for the
 year                                                    687          4,727
Other comprehensive
 income
  Currency translation
   differences                                           603         22,154
                      ------------------------------------------------------
Total comprehensive
 income                                                1,290         26,881
                      ------------------------------------------------------
Employee share option
 scheme:
  Value of employee
   services                                                -            430
  Proceeds from shares
   issued                                                  -            (13)
                      ------------------------------------------------------
Total transactions
 with owners                                               -            417
                      ------------------------------------------------------
Balance at Jun 30,
 2013                                                  4,212        345,305
                      ------------------------------------------------------
                      ------------------------------------------------------
Balance at Jan 1, 2014                                   953        344,234
                      ------------------------------------------------------
                      ------------------------------------------------------
Net income for the
 year                                                      -          1,994
Other comprehensive
 income
  Currency translation
   differences                                             -            571
  Dividends declared
   to non-controlling
   interest partner                                   (1,332)        (1,332)
  Settlement for the
   purchase of non-
   controlling
   interest partner                                      379              -
                      ------------------------------------------------------
Total comprehensive
 income                                                 (953)         1,233
                      ------------------------------------------------------
Employee share option
 scheme:
  Value of employee
   services                                                -          2,254
  Proceeds from shares
   issued                                                  -            949
                      ------------------------------------------------------
Total transactions
 with owners                                               -          3,203
                      ------------------------------------------------------
Balance at Jun 30,
 2014                                                      -        348,670
                      ------------------------------------------------------
                      ------------------------------------------------------

Xtreme Drilling and Coil Services Corp.
Interim Consolidated Statements of Cash Flows
For the six months ended June 30, 2014 and 2013
(in thousands of Canadian dollars)
(unaudited)
                                                        2014           2013
                                              ------------------------------
                                              ------------------------------
Cash flow provided by:
Operating activities
Net income for the period                              1,994          4,727
  Interest paid                                       (1,448)        (3,988)
  Taxes paid                                          (2,455)             -
Items not affecting cash:
  Depreciation and amortization                       26,710         17,793
  Stock-based compensation                             1,387            430
  Loss on disposal of equipment                        3,903             31
  Change in fair value of non-controlling
   interest liability                                      -           (238)
  Interest expense                                     2,292          3,783
  Amortization of debt issuance costs                   (224)           (38)
  Foreign exchange loss                                   75          5,145
  Current tax expense                                  2,503          1,612
  Deferred tax expense                                 1,180          2,741
  Changes in items of working capital                 12,644             76
                                              ------------------------------
Net cash generated from operating activities          48,561         32,074
                                              ------------------------------
Financing activities
  Proceeds from exercise of stock options              1,818              -
  Repayment of long-term debt                         (6,006)       (10,429)
  Repayment of operating facility                          -         (7,834)
  Debt issuance cost                                      97            (22)
                                              ------------------------------
Net cash used in financing activities                 (4,091)       (18,285)
                                              ------------------------------
Investing activities
  Proceeds from sale of equipment                      1,066            548
  Capital expenditures                               (30,403)       (12,575)
  Buyout of non-controlling interest partner         (11,628)             -
  Changes in items of working capital relating
   to capital items                                    6,446              -
                                              ------------------------------
Net cash used in investing activities                (34,519)       (12,027)
                                              ------------------------------
Effect of exchange rate changes on cash and
 cash equivalents                                     (3,929)         1,296
                                              ------------------------------

Increase in cash and cash equivalents                  6,022          3,058
Cash and cash equivalents - beginning of
 period                                               12,220          5,921
                                              ------------------------------

Cash and cash equivalents - end of period             18,242          8,979
                                              ------------------------------
                                              ------------------------------

Xtreme Drilling and Coil Services Corp.
Reconciliation of Adjusted EBITDA
For the three and six months ended June 30, 2014 and 2013
(in thousands of Canadian dollars, except per share data)
(unaudited)
                                     Three months ended   Six months ended
                                      Jun 30,   Jun 30,   Jun 30,   Jun 30,
                                         2014      2013      2014      2013
----------------------------------------------------------------------------
Net (loss) income                        (902)      239     1,994     4,727
Tax expense                             1,229     2,415     3,683     4,353
Interest expense                        1,066     1,664     2,292     3,783
Amortization of intangibles                76        76       152       152
Depreciation of property and
 equipment                             13,328     9,098    26,558    17,641
----------------------------------------------------------------------------
EBITDA                                 14,797    13,492    34,679    30,656
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                     Three months ended   Six months ended
                                      Jun 30,   Jun 30,   Jun 30,   Jun 30,
                                         2014      2013      2014      2013
----------------------------------------------------------------------------
EBITDA                                 14,797    13,492    34,679    30,656

Adjustments for non-cash items          4,624     3,355     5,377     5,425
----------------------------------------------------------------------------
Adjusted EBITDA                        19,421    16,847    40,056    36,081
----------------------------------------------------------------------------
Adjusted EBITDA per share ($)            0.24      0.21      0.49      0.45
----------------------------------------------------------------------------
Net income per share ($)                (0.01)     0.00      0.02      0.05
----------------------------------------------------------------------------

----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                     Three months ended    Six months ended
                                      Jun 30,   Jun 30,   Jun 30,   Jun 30,
                                         2014      2013      2014      2013
----------------------------------------------------------------------------
Stock-based compensation                  671       210     1,387       430
Loss (gain) on disposal of equipment    3,884      (117)    3,903        31
Foreign exchange loss                      86     3,272        75     5,145
Change in fair value of non-
 controlling interest liability             -       (31)        -      (238)
Other (income) expense                    (17)       21        12        57
----------------------------------------------------------------------------
Total adjustments for non-cash items    4,624     3,355     5,377     5,425
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
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...
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...
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.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
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,...
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 ...
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
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
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...