CALGARY, ALBERTA--(Marketwired - Aug. 7, 2013) - Newalta Corporation ("Newalta") (TSX:NAL) today reported results for the three and six months ended June 30, 2013. 

FINANCIAL HIGHLIGHTS¹

		Three months ended June 30,					Six months ended June 30,
($000s except per share data) (unaudited)		2013			2012		% Increase (Decrease)		2013			2012		% Increase (Decrease)
Revenue		196,138			171,130		15		367,485			337,628		9
Gross profit		45,377			38,836		17		83,212			81,714		2
- % of revenue		23	%		23	%	-		23	%		24	%	(4	)
Net earnings		4,944			18,626		(73	)	19,103			23,445		(19	)
- per share ($) - basic		0.09			0.38		(76	)	0.35			0.48		(27	)
- per share ($) - diluted		0.09			0.38		(76	)	0.35			0.48		(27	)
Adjusted net earnings(2)		11,894			4,994		138		17,646			17,246		2
- per share ($) - basic(2)		0.22			0.10		120		0.32			0.35		(9	)
Adjusted EBITDA(2)		38,350			30,248		27		66,070			66,320		-
- per share ($)(2)		0.70			0.62		13		1.21			1.36		(11	)
Cash from operations		29,487			1,679		1656		10,434			37,919		(72	)
- per share ($)		0.54			0.03		1700		0.19			0.78		(76	)
Funds from operations(2)		27,644			19,211		44		51,343			52,556		(2	)
- per share ($)(2)		0.50			0.39		28		0.94			1.08		(13	)
Maintenance capital expenditures(2)		5,178			7,580		(32	)	8,849			11,192		(21	)
Growth capital expenditures(2)		29,793			42,843		(30	)	46,663			71,417		(35	)
Dividends declared		6,051			4,730		28		11,525			8,623		34
- per share ($)(2)		0.11			0.10		10		0.21			0.18		17
Dividends paid		3,708			3,753		(1	)	8,019			7,642		5
Book value per share, June 30,		12.12			11.45		6		12.12			11.45		6
Weighted average shares outstanding		54,928			48,682		13		54,721			48,650		12
Shares outstanding, June 30,(3)		55,006			48,698		13		55,006			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 55,089,772 shares outstanding as at August 7, 2013.

Management Commentary

"Strong contributions from our growth investments drove the year-over-year growth in Adjusted EBITDA," said Al Cadotte, President and CEO of Newalta. 

"For the second half of the year, Adjusted EBITDA is expected to be at least 20 percent higher than last year, driven by returns from our growth capital over the past 18 months. We anticipate commodity prices will remain at current levels for the remainder of the year.

"Our capital investment plans for 2013 remain on budget and we are well-positioned with a solid balance sheet and excellent organization to drive growth in 2014. We remain on track in the execution of our business plan."

Consolidated Overview

Second quarter revenue was up 15% to $196.1 million. Adjusted EBITDA increased 27% to $38.4 million compared to Q2 2012. Improved results were primarily driven by contributions from growth investments in New Markets and Oilfield, further enhanced by a positive impact from commodity prices. Net earnings in the quarter decreased to $4.9 million compared to $18.6 million in the prior year. Excluding higher stock-based compensation expense and net finance charges related to a non-cash loss on embedded derivatives, net earnings would have increased 138% to $11.9 million compared to Q2 2012.

In the first half of 2013, revenue increased 9% to $367.5 million compared to prior year, while Adjusted EBITDA was $66.1 million, flat to 2012. Returns from growth capital investments in New Markets and Oilfield were partially offset by the impact of lower commodity prices. 

Operational Overview

Revenue from New Markets in the quarter and year-to-date increased 45% and 30%, respectively, to $56.1 million and $97.0 million compared to prior year. Gross profit in the quarter and year-to-date increased 38% and 15%, respectively, to $19.3 million and $32.3 million compared to 2012. Strong performance in the quarter and year-to-date was primarily driven by returns from growth investments, including our two onsite contracts to process mature fine tailings ("MFT").

Revenue from Oilfield in the quarter and year-to-date was $39.5 million and $88.1 million, respectively, essentially flat to prior year. Gross profit in the quarter and year-to-date increased 32% and 10%, respectively, compared to prior year. Improved results, primarily driven by contributions from growth capital, were partially offset by declines in drilling activity year-over-year. 

Revenue from Industrial increased 7% and 5%, respectively, to $100.5 million and $182.4 million in Q2 2013 and year to date, compared to the prior year. Gross profit in the quarter and year-to-date declined $2.1 million and $5.7 million, respectively, to $12.3 million and $17.9 million compared to the prior year.

Other Highlights

Newalta's Board of Directors declared a second quarter dividend of $0.11 per share ($0.44 per share annualized) paid July 15, 2013 to shareholders of record June 28, 2013. This higher dividend rate established earlier this year reflects our positive long-term outlook for the business.

Revenue from contracts generated 11% of consolidated revenue trailing twelve months ("TTM") Q2 2013, compared to 6% in TTM Q2 2012. 

Capital expenditures for the three and six months ended June 30, 2013 were $35.0 million and $55.5 million, respectively, focused primarily on growth capital projects in New Markets and Oilfield.

Our Total Debt to Adjusted EBITDA ratio improved to 2.74 in Q2 2013, from 2.94 in Q1 2013. We anticipate ending the year at or near 2.50.

Newalta amended and extended its credit facility effective July 12, 2013. Key changes to the agreement included: extending it by one year, to July 12, 2016, increasing the amount available from $225 million to $250 million and improved pricing. 

Outlook

Adjusted EBITDA in the second half of 2013 is expected to be at least 20% higher than last year driven by continued strong returns on our growth investments. We anticipate commodity prices to remain at current levels for the balance of 2013, better than prior year. We expect Ville Ste-Catherine ("VSC") volumes to be in line with our historical quarterly average and SCL to be at the annual permitted capacity by the end of the year.

We continue to focus on growing our portfolio of longer term contracts, strengthening our foundation of stable cash flow, and maximizing cash flow from our existing assets. We have good visibility on our pipeline of organic growth capital projects, extending well into 2014. We are well-positioned to deliver our 2013 capital budget of $190 million. Capital spending will be allocated to projects and long-term contracts which provide the highest returns and more stable cash flows among other factors. 

Quarterly Conference Call

Management will hold a conference call on Thursday, August 8, 2013 at 11:00 a.m. (ET) to discuss Newalta's performance for the second quarter ended June 30, 2013. To participate in the teleconference, please call 416-981-9000 or toll free 800-734-8507. 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 Thursday, August 15, 2013 by dialing 800-558-5253 and using pass code 21668198 followed by the pound sign.

The unaudited interim Condensed Consolidated Financial Statements and MD&A, 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 June 30,								Six months ended June 30,
($000s, except where otherwise noted) (unaudited)				2013			2012		% Increase (Decrease)			2013			2012		% Increase (Decrease)
New Markets
Revenue				56,120			38,626		45			96,978			74,757		30
Gross Profit				19,314			13,950		49			32,332			28,150		15
- % of revenue				34	%		36	%	(6	)		33	%		38	%	(13	)
Revenue by Business Unit
	Heavy Oil			74	%		66	%	12			68	%		65	%	5
	U.S.			26	%		34	%	24			32	%		35	%	(9	)
Divisional EBITDA(1)				23,516			16,270		45			39,001			32,590		20
Assets Employed(2)												253,501			214,198		18
Assets Contributing(3)												232,901			178,898		30
Oilfield
Revenue				39,501			38,951		1			88,133			89,403		(1	)
Gross Profit				13,783			10,460		32			32,960			29,975		10
- % of revenue				35	%		27	%	30			37	%		34	%	9
Divisional EBITDA(1)				16,761			13,152		27			38,915			35,852		9
Assets Employed(2)												359,339			337,965		6
Assets Contributing(3)												323,139			317,265		2
Industrial
Revenue				100,517			93,553		7			182,374			173,468		5
Gross Profit				12,280			14,426		(15	)		17,920			23,589		(24	)
- % of revenue				12	%		15	%	(20	)		10	%		14	%	(29	)
Revenue by Business Unit
	Western Industrial			23	%		25	%	(8	)		23	%		26	%	(12	)
	Eastern Industrial			77	%		75	%	3			77	%		74	%	4
		VSC as a percent of Industrial Division		33	%		32	%	3			36	%		33	%	9
Divisional EBITDA(1)				19,185			20,473		(6	)		30,377			35,748		(15	)
Assets Employed(2)												426,938			423,204		1
Assets Contributing(3)												418,938			407,004		3
Capital Expenditures
Maintenance capital expenditures				5,178			7,580		(32	)		8,849			11,192		(21	)
	New Markets			640			2,157		(70	)		892			2,432		(63	)
	Oilfield			2,254			2,168		4			4,106			3,523		17
	Industrial			1,426			2,087		(32	)		2,265			3,168		(29	)
Growth capital expenditures				29,793			42,843		(30	)		46,663			71,417		(35	)
	New Markets			15,998			28,174		(43	)		21,321			45,415		(53	)
	Oilfield			5,779			3,173		82			11,021			8,567		29
	Industrial			3,268			4,777		(32	)		6,105			7,709		(21	)

(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)

			June 30, 2013		December 31, 2012
Assets
Current assets
	Cash		-		409
	Accounts and other receivables		173,401		150,347
	Inventories		44,086		43,123
	Prepaid expenses and other		16,195		10,627
			233,682		204,506
Non-current assets
	Property, plant and equipment		947,085		929,580
	Permits and other intangible assets (Note 4)		58,881		58,614
	Other long-term assets		24,390		23,443
	Goodwill		103,983		102,615
TOTAL ASSETS			1,368,021		1,318,758
Liabilities
Current liabilities
	Bank indebtedness		13,137		-
	Accounts payable and accrued liabilities		137,487		181,876
	Deferred revenue		19,102		6,494
	Dividends payable (Note 9)		6,051		5,426
			175,777		193,796
Non-current liabilities
	Senior secured debt (Note 5)		129,500		76,500
	Senior unsecured debentures (Note 6)		246,653		246,334
	Other liabilities (Note 7)		1,735		4,228
	Deferred tax liability		79,933		77,519
	Decommissioning liability		67,734		78,941
TOTAL LIABILITIES			701,332		677,318
Shareholders' Equity
Shareholders' capital			404,885		394,048
Contributed surplus			2,881		2,881
Retained earnings			255,143		247,565
Accumulated other comprehensive income (loss)			3,780		(3,054	)
TOTAL SHAREHOLDERS' EQUITY			666,689		641,440
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			1,368,021		1,318,758

Condensed Consolidated Statements of Operations

(Unaudited - Expressed in thousands of Canadian Dollars)

(Except per share data)

			For the three months ended June 30,					For the six months ended June 30,
			2013		2012			2013			2012
Revenue			196,138		171,130			367,485			337,628
Cost of sales			150,761		132,294			284,273			255,914
Gross profit			45,377		38,836			83,212			81,714
	Selling, general and administrative		24,327		15,430			47,290			44,968
	Research and development		412		587			615			1,396
Earnings before finance charges and income taxes			20,638		22,819			35,307			35,350
	Finance charges		7,010		6,507			13,603			13,265
	Embedded derivative loss (gain) (Note 11)		6,931		(6,680	)		(137	)		(8,050	)
Net financing charges expense (recovery)			13,941		(173	)		13,466			5,215
Earnings before income taxes			6,697		22,992			21,841			30,135
Income tax expense			1,753		4,366			2,738			6,690
Net earnings			4,944		18,626			19,103			23,445
Net earnings per share (Note 8)			0.09		0.38			0.35			0.48
Diluted earnings per share (Note 8)			0.09		0.38			0.35			0.48
Supplementary information:
Amortization included within cost of sales			14,085		11,059			25,081			22,476
Amortization included in selling, general and administrative			3,608		3,322			7,002			6,643
Total amortization			17,693		14,381			32,083			29,119

Condensed Consolidated Statements of Comprehensive Income

(Unaudited - Expressed in thousands of Canadian Dollars)

			For the three months ended June 30,					For the six months ended June 30,
			2013		2012			2013			2012
Net earnings			4,944		18,626			19,103			23,445
Other comprehensive income (loss):
	Unrealized exchange gain (loss) on translating foreign operations		4,505		1,255			6,866			(443	)
	Unrealized loss on available for sale financial assets (Note 11)		-		(63	)		(32	)		(127	)
Other comprehensive income (loss)			4,505		1,192			6,834			(570	)
Total comprehensive income			9,449		19,818			25,937			22,875

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 six months ended June 30, 2012
Exercise of options	1,510		-	-		-			1,510
Cancellation of shares	(181	)	181
Dividends declared	-		-	(8,623	)	-			(8,623	)
Other comprehensive loss	-		-	-		(570	)		(570	)
Net earnings for the period	-		-	23,445		-			23,445
Balance, June 30, 2012	318,715		2,881	238,501		(2,414	)		557,683
Changes in equity for the six months ended December 31, 2012
Exercise of options	933		-	-		-			933
Issuance of shares	74,400		-	-		-			74,400
Dividends declared	-		-	(10,295	)	-			(10,295	)
Other comprehensive loss	-		-	-		(640	)		(640	)
Net earnings for the period	-		-	19,359		-			19,359
Balance, December 31, 2012	394,048		2,881	247,565		(3,054	)		641,440
Changes in equity for the six months ended June 30, 2013
Exercise of options	7,832		-	-		-			7,832
Reduction of 2012 share issuance costs	124		-	-		-			124
Shares issued under dividend reinvestment plan	2,881		-	-		-			2,881
Dividends declared	-		-	(11,525	)	-			(11,525	)
Other comprehensive income	-		-	-		6,834			6,834
Net earnings for the period	-		-	19,103		-			19,103
Balance, June 30, 2013	404,885		2,881	255,143		3,780			666,689

Condensed Consolidated Statements of Cash Flows

(Unaudited - Expressed in thousands of Canadian Dollars)

			For the three months ended June 30,						For the six months ended June 30,
			2013			2012			2013			2012
Cash provided by (used for):
Operating Activities
Net earnings			4,944			18,626			19,103			23,445
Adjustments for:
	Amortization		17,693			14,381			32,083			29,119
	Income tax expense		1,753			4,366			2,738			6,690
	Income tax paid (refund)		364			(33	)		157			(43	)
	Stock-based compensation recovery		(332	)		(7,542	)		(4,645	)		(160	)
	Finance charges		7,010			6,507			13,603			13,265
	Embedded derivative loss (gain) (Note 11)		6,931			(6,680	)		(137	)		(8,050	)
	Finance charges paid		(10,942	)		(10,305	)		(11,948	)		(11,289	)
	Other		223			(109	)		389			(421	)
Funds from Operations			27,644			19,211			51,343			52,556
Decrease (increase) in non-cash working capital (Note 12)			2,715			(16,950	)		(39,009	)		(13,702	)
Decommissioning costs incurred			(872	)		(582	)		(1,900	)		(935	)
Cash (used in) from Operating Activities			29,487			1,679			10,434			37,919
Investing Activities
	Additions to property, plant and equipment (Note 12)		(29,626	)		(33,645	)		(69,408	)		(66,510	)
	Other		463			259			(3,182	)		434
Cash used in Investing Activities			(29,163	)		(33,386	)		(72,590	)		(66,076	)
Financing Activities
	Issuance of shares		714			642			2,361			642
	Increase in senior secured debt		3,499			33,000			53,000			38,471
	(Decrease) increase in bank indebtedness		(1,630	)		1,261			13,137			(3,453	)
	Decrease in note receivable		73			68			124			123
	Dividends paid (Note 9)		(3,708	)		(3,753	)		(8,019	)		(7,642	)
Cash (used in) from Financing Activities			(1,052	)		31,218			60,603			28,141
Effect of foreign exchange on cash			728			489			1,144			16
Change in cash			-			-			(409	)		-
Cash, beginning of period			-			-			409			-
Cash, end of period			-			-			-			-

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 June 30,					Six months ended June 30,
($000s)			2013		2012			2013			2012
Net earnings			4,944		18,626			19,103			23,445
Add back (deduct):
	Income taxes		1,753		4,366			2,738			6,690
	Net finance (income) expense		13,941		(173	)		13,466			5,215
	Amortization		17,693		14,381			32,083			29,119
EBITDA			38,331		37,200			67,390			64,469
Add back (deduct):
	Stock-based compensation expense (recovery)		19		(6,952	)		(1,320	)		1,851
Adjusted EBITDA			38,350		30,248			66,070			66,320
Weighted average number of shares			54,928		48,682			54,721			48,650
EBITDA per share			0.70		0.76			1.23			1.33
Adjusted EBITDA per share			0.70		0.62			1.21			1.36

"Divisional EBITDA" provides 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 for the respective division. Divisional EBITDA is derived from EBITDA as follows:

			Three months ended June 30,						Six months ended June 30,
($000s)			2013			2012			2013			2012
Divisional EBITDA
	New Markets		23,516			16,270			39,001			32,590
	Oilfield		16,761			13,152			38,915			35,852
	Industrial		19,185			20,473			30,377			35,748
Subtotal			59,462			49,895			108,293			104,190
Deduct:
	Selling, general and administrative(1)		(20,719	)		(12,108	)		(40,288	)		(38,325	)
	Research and development		(412	)		(587	)		(615	)		(1,396	)
EBITDA			38,331			37,200			67,390			64,469

(1)	Selling, general and administrative excludes amortization of $3,608 and $7,002 for Q2 2013 and 2013 year-to-date, respectively, and $3,322 and $6,643 for Q2 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 June 30,					Six months ended June 30,
($000s)			2013		2012			2013			2012
Net earnings			4,944		18,626			19,103			23,445
Add back (deduct):
	Stock-based compensation expense (recovery)		19		(6,952	)		(1,320	)		1,851
	Embedded derivative gain		6,931		(6,680	)		(137	)		(8,050	)
Adjusted net earnings			11,894		4,994			17,646			17,246
Weighted average number of shares			54,928		48,682			54,721			48,650
Adjusted net earnings per share			0.22		0.10			0.32			0.35

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

		Six months ended June 30,
($000s)		2013		2012
Total Equity		666,689		557,683
Shares outstanding, June 30,		55,006		48,698
Book value per share		12.12		11.45

"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 June 30,					Six months ended June 30,
($000s)			2013			2012		2013		2012
Cash (used in) from operations			29,487			1,679		10,434		37,919
Add back (deduct):
	(Decrease) increase in non-cash working capital		(2,715	)		16,950		39,009		13,702
	Decommissioning obligations incurred		872			582		1,900		935
Funds from operations			27,644			19,211		51,343		52,556
Weighted average number of shares			54,928			48,682		54,721		48,650
Funds from operations per share			0.50			0.39		0.94		1.08

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.