Newalta Reports Strong Third Quarter 2013 Results

CALGARY, ALBERTA--(Marketwired - Nov. 5, 2013) - Newalta Corporation ("Newalta") (TSX:NAL) today reported results for the three and nine months ended September 30, 2013.

FINANCIAL HIGHLIGHTS¹

	Three months ended September 30,		Nine months ended September 30,
($000s except per share data) (unaudited)	2013	2012	% Increase (Decrease)	2013	2012	% Increase (Decrease)
Revenue	212,112	190,136	12	579,597	527,764	10
Gross profit	59,231	49,007	21	142,443	130,721	9
- % of revenue	28%	26%	8	25%	25%	-
Net earnings	13,158	15,236	(14)	32,261	38,681	(17)
- per share ($) - basic	0.24	0.31	(23)	0.59	0.80	(26)
- per share ($) - diluted	0.24	0.31	(23)	0.58	0.78	(26)
Adjusted net earnings(2)	20,417	15,430	32	38,063	32,676	16
- per share ($) - basic(2)	0.37	0.32	16	0.69	0.67	3
Adjusted EBITDA(2)	51,199	42,526	20	117,270	108,846	8
- per share ($)(2)	0.93	0.87	7	2.14	2.24	(4)
Cash from operations	67,319	11,867	467	77,753	49,786	56
- per share ($)	1.22	0.24	408	1.42	1.02	39
Funds from operations(2)	49,339	41,756	18	100,682	94,312	7
- per share ($)(2)	0.90	0.86	5	1.84	1.94	(5)
Maintenance capital expenditures(2)	6,398	11,671	(45)	15,247	22,863	(33)
Growth capital expenditures(2)	37,012	20,660	79	83,675	92,077	(9)
Dividends declared	6,060	4,870	24	17,583	13,494	30
- per share ($)(2)	0.11	0.10	10	0.32	0.28	14
Dividends paid	4,918	4,870	1	12,937	12,512	3
Book value per share, September 30,	12.19	11.62	5	12.19	11.62	5
Weighted average shares outstanding	55,077	48,698	13	54,841	48,666	13
Shares outstanding, September 30,(3)	55,090	48,698	13	55,090	48,698	13

1. Newalta's Unaudited Condensed Consolidated Financial Statements are attached. References to Generally Accepted Accounting Principles ("GAAP") are synonymous with IFRS and references to Unaudited Condensed Consolidated Financial Statements are synonymous with Financial Statements.
2. These financial measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-GAAP financial measures are identified and defined later in this document.
3. Newalta has 55,170,805 shares outstanding as at November 5, 2013.

Management Commentary

"Results in the quarter were strong, driven by returns from our growth capital investments and contributions from all three divisions," said Al Cadotte, President and CEO of Newalta. "We continue to focus on delivering creative solutions for our customers and the recent collaboration with DuPont Canada is one example of how we're moving forward with these initiatives.

"We continue to make excellent progress in the execution of our business plan. The 2013 capital program is fully committed with investments prioritized towards areas that provide the highest returns, more stable cash flows and lowest risk. Our growth investments this year will drive strong performance and attractive returns in 2014 and beyond."

Consolidated Overview

Third quarter revenue was up 12% to $212.1 million and Adjusted EBITDA increased 20% to $51.2 million compared to Q3 2012. Improved results were primarily driven by contributions from growth investments in New Markets and higher event-based business at our Stoney Creek Landfill ("SCL"), further enhanced by a positive impact from commodity prices. Net earnings in the quarter decreased to $13.2 million compared to $15.2 million in the prior year. Excluding higher stock-based compensation expense, net finance charges related to a non-cash loss on embedded derivatives and income tax expense, net earnings would have increased 32% to $20.4 million compared to Q3 2012.

Year to date, revenue increased 10% to $579.6 million compared to prior year. Adjusted EBITDA was $117.3 million, 8% higher than prior year, driven by contributions from growth investments in New Markets and Oilfield.

Operational Overview

Revenue from New Markets in the quarter and year-to-date increased 11% and 21%, respectively, to $68.1 million and $165.0 million compared to prior year. Gross profit in the quarter and year-to-date increased 12% and 13%, respectively, to $25.1 million and $57.5 million compared to 2012. Strong performance in the quarter and year-to-date was primarily driven by returns from growth capital invested, including our two contracts to process mature fine tailings ("MFT").

Revenue from Oilfield in the quarter and year-to-date was $49.0 million and $137.1 million, respectively, up slightly from prior year. Gross profit in the quarter and year-to-date increased 19% and 13%, respectively, to $19.9 million and $52.9 million compared to prior year. Positive results were driven by contributions from growth capital investments and improved commodity prices.

Revenue from Industrial in the quarter and year-to-date increased 17% and 9%, respectively, to $95.1 million and $277.4 million compared to prior year. Gross profit in the quarter increased 46% to $14.2 million compared to prior year. Year-to-date gross profit was $32.1 million, flat to prior year.

Other Highlights

Newalta's Board of Directors declared a third quarter dividend of $0.11 per share ($0.44 per share annualized) paid October 15, 2013 to shareholders of record on September 30, 2013.

Revenue from contracts (fee for service solutions with terms longer than one year and no direct commodity price exposure) generated 13% of consolidated revenue trailing twelve months ("TTM") Q3 2013, compared to 8% in TTM Q3 2012.

Capital expenditures for the three and nine months ended September 30, 2013 were $43.4 million and $98.9 million, respectively, focused primarily on growth capital projects in New Markets and Oilfield.

Our Total Debt to Adjusted EBITDA ratio improved to 2.52 in Q3 2013, from 2.74 in Q2 2013. We anticipate ending the year at or about 2.50.

On October 17, 2013, we announced a development agreement with DuPont Canada to test an innovative water processing technology in the Alberta oil and gas industry. The water processing technology removes solids from water and facilitates a higher level of water re-use for customers at their sites. The collaboration between the companies will combine DuPont's innovative scientific and technical expertise with Newalta's operating capabilities and customer relationships.

Outlook

Adjusted EBITDA in the second half of 2013 is expected to be approximately 20% higher than last year, based on commodity prices and drilling activity remaining at Q3 levels. Growth capital investments made over the past 18 months continue to deliver strong returns. SCL volumes are anticipated to be at the annual permitted capacity by the end of the year, or approximately 132,000 MT in Q4. Ville Ste-Catherine ("VSC") volumes in the fourth quarter are expected to be in line with our historical quarterly average. Performance in New Markets and Oilfield for the second half of 2013 remains in line with management's expectations.

Our 2013 capital budget of $190 million is fully committed. We continue to focus on growing our portfolio of longer term contracts, strengthening our foundation of stable cash flow, and maximizing returns from our existing assets. We have good visibility on our pipeline of organic growth capital projects.

Quarterly Conference Call

Management will hold a conference call on Wednesday, November 6, 2013 at 11:00 a.m. (ET) to discuss Newalta's performance for the third quarter ended September 30, 2013. To participate in the teleconference, please call 416-981-9000, or 1-800-926-9174. To access the simultaneous webcast, please visit www.newalta.com. For those unable to listen to the live call, a taped broadcast will be available at www.newalta.com and, until midnight on Wednesday, November 13, 2013 by dialing 1-800-558-5253 and using pass code 21675657 followed by the pound sign.

The Unaudited Condensed Consolidated Financial Statements and Management's Discussion & Analysis, which contain additional notes and disclosures, are available on our website at www.newalta.com under Investor Relations/Financial Reports.

About Newalta

Newalta is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 locations in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,000 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.

SELECTED FINANCIAL INFORMATION

			Three months ended September 30,		Nine months ended September 30,
($000s, except where otherwise noted) (unaudited)			2013	2012	% Increase (Decrease)	2013	2012	% Increase (Decrease)
New Markets
Revenue			68,063	61,560	11	165,041	136,317	21
Gross Profit			25,142	22,534	12	57,474	50,684	13
- % of revenue			37%	37%	-	35%	37%	(5)
Revenue by Business Unit
	Heavy Oil		79%	74%	7	72%	69%	4
	U.S.		21%	26%	(19)	28%	31%	(10)
Divisional EBITDA(1)			31,045	25,964	20	70,046	58,554	20
Assets Employed(2)						270,354	219,030	23
Assets Contributing(3)						235,554	207,030	14
Oilfield
Revenue			48,994	47,178	4	137,127	136,581	-
Gross Profit			19,898	16,736	19	52,858	46,711	13
- % of revenue			41%	35%	17	39%	34%	15
Divisional EBITDA(1)			23,008	19,723	17	61,923	55,575	11
Assets Employed(2)						363,207	343,827	6
Assets Contributing(3)						340,407	325,927	4
Industrial
Revenue			95,055	81,398	17	277,429	254,866	9
Gross Profit			14,191	9,737	46	32,111	33,326	(4)
- % of revenue			15%	12%	25	12%	13%	(8)
Revenue by Business Unit
	Western Industrial		27%	32%	(16)	25%	28%	(11)
	Eastern Industrial		73%	68%	7	75%	72%	4
		VSC as a percent of Industrial Division	26%	18%	44	33%	28%	18
Divisional EBITDA(1)			19,646	15,597	26	50,023	51,345	(3)
Assets Employed(2)						426,276	426,079	-
Assets Contributing(3)						414,676	409,279	1
Capital Expenditures
Maintenance capital expenditures			6,398	11,671	(45)	15,247	22,863	(33)
	New Markets		1,685	2,099	(20)	2,577	4,531	(43)
	Oilfield		1,802	3,302	(45)	5,908	6,825	(13)
	Industrial		2,221	4,985	(55)	4,486	8,153	(45)
Growth capital expenditures			37,012	20,660	79	83,675	92,077	(9)
	New Markets		17,896	5,775	210	39,217	51,190	(23)
	Oilfield		7,931	5,627	41	18,952	14,194	34
	Industrial		5,412	3,878	40	11,517	11,587	(1)

1. "Divisional EBITDA" is a measure of the division's profitability and an indication of the results generated by the division's principal business activities prior to how the assets are amortized. Divisional EBITDA is the sum of gross profit and amortization.
2. "Assets employed" is provided to assist management and investors in determining the effectiveness of the use of the assets at a divisional level. Assets employed is the sum of capital assets, intangible assets and goodwill allocated to each division.
3. "Assets contributing" is provided to assist management and investors to understand how our capital spending contributes to our growth. It excludes assets related to growth capital projects not yet operational.

Condensed Consolidated Balance Sheets

(Unaudited - Expressed in thousands of Canadian Dollars)

		September 30, 2013	December 31, 2012
Assets
Current assets
	Cash	-	409
	Accounts and other receivables	164,062	150,347
	Inventories	51,415	43,123
	Prepaid expenses and other	16,638	10,627
		232,115	204,506
Non-current assets
	Property, plant and equipment	966,544	929,580
	Permits and other intangible assets (Note 4)	58,445	58,614
	Other long-term assets	25,572	23,443
	Goodwill	103,976	102,615
TOTAL ASSETS		1,386,652	1,318,758
Liabilities
Current liabilities
	Bank indebtedness	3,676	-
	Accounts payable and accrued liabilities	184,636	188,370
	Dividends payable (Note 9)	6,060	5,426
		194,372	193,796
Non-current liabilities
	Senior secured debt (Note 5)	119,500	76,500
	Senior unsecured debentures (Note 6)	246,811	246,334
	Other liabilities (Note 7)	2,842	4,228
	Deferred tax liability	87,721	77,519
	Decommissioning liability	63,763	78,941
TOTAL LIABILITIES		715,009	677,318
Shareholders' Equity
Shareholders' capital		406,019	394,048
Contributed surplus		2,881	2,881
Retained earnings		262,243	247,565
Accumulated other comprehensive income (loss)		500	(3,054)
TOTAL SHAREHOLDERS' EQUITY		671,643	641,440
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		1,386,652	1,318,758

Condensed Consolidated Statements of Operations

(Unaudited - Expressed in thousands of Canadian Dollars)

(Except per share data)

		For the three months ended September 30,		For the nine months ended September 30,
		2013	2012	2013	2012
Revenue		212,112	190,136	579,597	527,764
Cost of sales		152,881	141,129	437,154	397,043
Gross profit		59,231	49,007	142,443	130,721
	Selling, general and administrative	32,785	26,574	80,075	71,542
	Research and development	229	482	844	1,878
Earnings before finance charges and income taxes		26,217	21,951	61,524	57,301
	Finance charges	6,646	7,691	20,249	20,956
	Embedded derivative loss (gain) (Note 11)	507	(4,788)	370	(12,838)
Net financing charges expense		7,153	2,903	20,619	8,118
Earnings before income taxes		19,064	19,048	40,905	49,183
Income tax expense		5,906	3,812	8,644	10,502
Net earnings		13,158	15,236	32,261	38,681
Net earnings per share (Note 8)		0.24	0.31	0.59	0.80
Diluted earnings per share (Note 8)		0.24	0.31	0.58	0.78
Supplementary information:
Amortization included within cost of sales		14,468	12,277	39,549	34,753
Amortization included in selling, general and administrative		3,762	3,316	10,765	9,959
Total amortization		18,230	15,593	50,314	44,712

Condensed Consolidated Statements of Comprehensive Income

(Unaudited - Expressed in thousands of Canadian Dollars)

		For the three months ended September 30,		For the nine months ended September 30,
		2013	2012	2013	2012
Net earnings		13,158	15,236	32,261	38,681
Other comprehensive (loss) income:
	Unrealized exchange (loss) gain on translating foreign operations	(3,153)	(3,575)	3,713	(4,018)
	Unrealized (loss) gain on available for sale financial assets (Note 11)	(127)	32	(159)	(95)
	Transfer of available for sale financial assets to financing charges	-	1,557	-	1,557
Other comprehensive (loss) income		(3,280)	(1,986)	3,554	(2,556)
Total comprehensive income		9,878	13,250	35,815	36,125

Condensed Consolidated Statement of Changes in Equity

(Unaudited - Expressed in thousands of Canadian Dollars)

	Shareholders' capital	Contributed surplus	Retained earnings	Accumulated other comprehensive income (loss)	Total
Balance, December 31, 2011	317,386	2,700	223,679	(1,844)	541,921
Changes in equity for the nine months ended September 30, 2012
Exercise of options	1,510	-	-	-	1,510
Cancellation of shares	(181)	181
Dividends declared	-	-	(13,494)	-	(13,494)
Other comprehensive loss	-	-	-	(2,556)	(2,556)
Net earnings for the period	-	-	38,681	-	38,681
Balance, September 30, 2012	318,715	2,881	248,866	(4,400)	566,062
Changes in equity for the three months ended December 31, 2012
Exercise of options	933	-	-	-	933
Issuance of shares	74,400	-	-	-	74,400
Dividends declared	-	-	(5,424)	-	(5,424)
Other comprehensive recovery	-	-	-	1,346	1,346
Net earnings for the period	-	-	4,123	-	4,123
Balance, December 31, 2012	394,048	2,881	247,565	(3,054)	641,440
Changes in equity for the nine months ended September 30, 2013
Exercise of options	7,956	-	-	-	7,956
Shares issued under dividend reinvestment plan	4,015	-	-	-	4,015
Dividends declared	-	-	(17,583)	-	(17,583)
Other comprehensive income	-	-	-	3,554	3,554
Net earnings for the period	-	-	32,261	-	32,261
Balance, September 30, 2013	406,019	2,881	262,243	500	671,643

Condensed Consolidated Statements of Cash Flows

(Unaudited - Expressed in thousands of Canadian Dollars)

		For the three months ended September 30,		For the nine months ended September 30,
		2013	2012	2013	2012
Cash provided by (used for):
Operating Activities
Net earnings		13,158	15,236	32,261	38,681
Adjustments for:
	Amortization	18,230	15,593	50,314	44,712
	Income tax expense	5,906	3,812	8,644	10,502
	Income tax (refund) paid	(36)	-	121	(43)
	Stock-based compensation expense	5,762	4,660	1,117	4,500
	Net financing charges	7,153	2,903	20,619	8,118
	Finance charges paid	(989)	(443)	(12,937)	(11,732)
	Other	155	(5)	543	(426)
Funds from Operations		49,339	41,756	100,682	94,312
Decrease (increase) in non-cash working capital (Note 12)		20,059	(28,953)	(18,950)	(42,655)
Decommissioning costs incurred		(2,079)	(936)	(3,979)	(1,871)
Cash from Operating Activities		67,319	11,867	77,753	49,786
Investing Activities
	Additions to property, plant and equipment (Note 12)	(44,261)	(42,543)	(113,669)	(109,053)
	Other	1,748	386	(1,309)	943
Cash used in Investing Activities		(42,513)	(42,157)	(114,978)	(108,110)
Financing Activities
	Issuance of shares	-	-	2,361	642
	(Decrease) increase in senior secured debt	(10,000)	40,025	43,000	78,496
	(Decrease) increase in bank indebtedness	(9,460)	(2,715)	3,676	(6,168)
	Dividends paid	(4,918)	(4,870)	(12,937)	(12,512)
Cash (used in) from Financing Activities		(24,378)	32,440	36,100	60,458
Effect of foreign exchange on cash		(428)	(873)	716	(857)
Change in cash		-	1,277	(409)	1,277
Cash, beginning of period		-	-	409	-
Cash, end of period		-	1,277	-	1,277

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute "forward-looking statements". When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions, as they relate to Newalta Corporation and the subsidiaries of Newalta Corporation, or their management, are intended to identify forward-looking statements. In particular, forward-looking statements included or incorporated by reference in this document include statements with respect to:

• future operating and financial results;
• anticipated industry activity levels;
• expected demand for our services;
• business prospects and strategy;
• capital expenditure programs and other expenditures;
• the amount of dividends declared or payable in the future;
• realization of anticipated benefits of growth capital investments, acquisitions and our technical development initiatives;
• our projected cost structure; and
• expectations and implications of changes in legislation.

Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation:

• general market conditions of the industries we service;
• strength of the oil and gas industry, including drilling activity;
• fluctuations in commodity prices for oil and the price we received for our recovered oil;
• fluctuations in commodity prices for lead including the price differential we pay for lead feedstock and the price we receive for our lead products;
• fluctuations in base oil prices including the price differential we pay for used oil and the price we receive for our finished lube oil products;
• fluctuations in interest rates and exchange rates;
• supply of waste lead acid batteries as feedstock to support direct lead sales;
• demand for our finished lead products by the battery manufacturing industry;
• our ability to secure future capital to support and develop our business, including the issuance of additional common shares;
• the highly regulated nature of the environmental services and waste management business in which we operate;
• dependence on our senior management team and other operations management personnel with waste industry experience;
• the competitive environment of our industry in Canada and the U.S.;
• success of our growth, acquisition and technical development strategies including integration of businesses and processes into our operations and potential liabilities from acquisitions;
• potential operational and safety risks and hazards and obtaining insurance for such risks and hazards on reasonable financial terms;
• the seasonal nature of our operations;
• costs associated with operating our landfills and reliance on third party waste volumes;
• risk of pending and future legal proceedings;
• risk to our reputation;
• our ability to attract and retain skilled employees and maintain positive labour union relationships;
• open access for new industry entrants and the general unprotected nature of technology used in the waste industry;
• possible volatility of the price of, and the market for, our common shares, and potential dilution for shareholders in the event of a sale of additional shares;
• financial covenants in our debt agreements that may restrict our ability to engage in transactions or to obtain additional financing; and
• such other risks or factors described from time to time in reports we file with securities regulatory authorities.

By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements and readers are cautioned that the foregoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and are expressly qualified by this cautionary statement. Unless otherwise required by law, we do not intend, or assume any obligation, to update these forward-looking statements.

The information contained on our website does not form part of this press release.

RECONCILIATION OF NON-GAAP MEASURES

This Press Release contains references to certain financial measures, including some that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or "GAAP") and may not be comparable to similar measures presented by other corporations or entities. These financial measures are identified and defined below:

"EBITDA", "EBITDA per share", "Adjusted EBITDA", and "Adjusted EBITDA per share" are measures of our operating profitability. EBITDA provides an indication of the results generated by our principal business activities prior to how these activities are financed, assets are amortized or how the results are taxed in various jurisdictions. In addition, Adjusted EBITDA provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation. Stock-based compensation, a component of employee remuneration, can vary significantly with changes in the price of our common shares. As such, Adjusted EBITDA provides improved continuity with respect to the comparison of our operating results over a period of time. EBITDA and Adjusted EBITDA are derived from the condensed consolidated statements of operations and comprehensive income. EBITDA per share and Adjusted EBITDA per share are derived by dividing EBITDA and Adjusted EBITDA by the basic weighted average number of shares.

They are calculated as follows:

		Three months ended September 30,		Nine months ended September 30,
($000s)		2013	2012	2013	2012
Net earnings		13,158	15,236	32,261	38,681
Add back (deduct):
	Income taxes	5,906	3,812	8,644	10,502
	Net finance expense	7,153	2,903	20,619	8,118
	Amortization	18,230	15,593	50,314	44,712
EBITDA		44,447	37,544	111,838	102,013
Add back (deduct):
	Stock-based compensation expense	6,752	4,982	5,432	6,833
Adjusted EBITDA		51,199	42,526	117,270	108,846
Weighted average number of shares		55,077	48,698	54,841	48,666
EBITDA per share		0.81	0.77	2.04	2.10
Adjusted EBITDA per share		0.93	0.87	2.14	2.24

"Divisional EBITDA" provides an indication of the results generated by the division's principal business activities prior to how the assets are amortized, and before allocation of Selling, general and administrative costs. Divisional EBITDA is the sum of gross profit and amortization for the respective division. Divisional EBITDA is derived from EBITDA as follows:

			Three months ended September 30,		Nine months ended September 30,
($000s)			2013	2012	2013	2012
Divisional EBITDA
	New Markets		31,045	25,964	70,046	58,554
	Oilfield		23,008	19,723	61,923	55,575
	Industrial		19,646	15,597	50,023	51,345
Subtotal			73,699	61,284	181,992	165,474
Deduct:
	Selling, general and administrative(1)		29,023	23,258	69,310	61,583
		Research and development	229	482	844	1,878
EBITDA			44,447	37,544	111,838	102,013

1. Selling, general and administrative excludes amortization of $3,762 and $10,765 for Q3 2013 and 2013 year-to-date, respectively, and $3,316 and $9,959 for Q3 2012 and 2012 year-to-date, respectively.

"Adjusted net earnings" and "Adjusted net earnings per share" are measures of our profitability. Adjusted net earnings provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation recovery or expense and the gain or loss on embedded derivatives. Stock-based compensation, a component of employee remuneration, can vary significantly with changes in the price of our common shares. The gain on the embedded derivative is a result of the change in the trading price of the debentures and the volatility of the applicable bond market. As such, Adjusted net earnings provides improved continuity with respect to the comparison of our results over a period of time. Adjusted net earnings per share is derived by dividing Adjusted net earnings by the basic weighted average number of shares.

		Three months ended September 30,		Nine months ended September 30,
($000s)		2013	2012	2013	2012
Net earnings		13,158	15,236	32,261	38,681
Add back (deduct):
	Stock-based compensation expense	6,752	4,982	5,432	6,833
	Embedded derivative gain	507	(4,788)	370	(12,838)
Adjusted net earnings		20,417	15,430	38,063	32,676
Weighted average number of shares		55,077	48,698	54,841	48,666
Adjusted net earnings per share		0.37	0.32	0.69	0.67

"Book value per share" is used to assist management and investors in evaluating the book value compared to the market value.

	Nine months ended September 30,
($000s)	2013	2012
Total Equity	671,643	566,062
Shares outstanding, September 30,	55,090	48,698
Book value per share	12.19	11.62

"Funds from operations" is used to assist management and investors in analyzing cash flow and leverage. Funds from operations as presented is not intended to represent operating funds from operations or operating profits for the period, nor should it be viewed as an alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. Funds from operations is derived from the consolidated statements of cash flows and is calculated as follows:

		Three months ended September 30,		Nine months ended September 30,
($000s)		2013	2012	2013	2012
	Cash from operations	67,319	11,867	77,753	49,786
Add back (deduct):
	(Decrease) increase in non-cash working capital	(20,059)	28,953	18,950	42,655
	Decommissioning obligations incurred	2,079	936	3,979	1,871
Funds from operations		49,339	41,756	100,682	94,312
Weighted average number of shares		55,077	48,698	54,841	48,666
Funds from operations per share		0.90	0.86	1.84	1.94

References to EBITDA, EBITDA per share, Adjusted EBITDA, Adjusted EBITDA per share, Divisional EBITDA, Adjusted net earnings, Adjusted net earnings per share, Funds from operations, and Funds from operations per share throughout this document have the meanings set out above. Adjusted SG&A is defined as SG&A adjusted for stock-based compensation and amortization.