Tuesday, March 20, 2012

ISC - <span class="simulate_din_font">IROC Energy Services Corp. announces increased net income, filing of 2011 annual audited financial statements, and declaration of quarterly dividend</span> (CAD 0.025)

Company: Iroc Energy Services Corp.
Stock Name: ISC
Amount: CAD 0.025
Announcement Date: 20/03/2012
Record Date: 04/04/2012

Dividend Detail:




CALGARY, March 20, 2012 /CNW/ - IROC Energy Services Corp. ("IROC" or
the "Corporation") (TSXV: "ISC") is pleased to present a summary of its
operating and financial results for the three months and one year
periods ended December 31, 2011. For a complete copy of IROC's annual
audited financial statements and annual management's discussion and
analysis ("MD&A") please visit www.sedar.com.



Basis of Presentation



Throughout this news release amounts are presented on a continuing
operations basis to more accurately reflect the way in which IROC
intends to operate on a continuing basis.



Highlights for the three month quarter ended December 31, 2011:




  • Total revenue increased 44% to $26.7 million for the three months ended
    December 31, 2011 as compared to $18.5 million in the comparable
    quarter of the prior year.






  • Gross margin increased 53% to $10.8 million for the three months ended
    December 31, 2011 as compared to $7.1 million in the comparable quarter
    of the prior year.






  • EBITDAS increased 62% to $8.6 million for the three months ended
    December 31, 2011 as compared to $5.3 million in the comparable quarter
    of the prior year.






  • Net income from continuing operations increased 77% to $4.8 million for
    the three months ended December 31, 2011 as compared to $2.7 million in
    the comparable quarter of the prior year.



Highlights for the year ended December 31, 2011:




  • Total revenue increased 60% to $85.7 million for the year ended December
    31, 2011
    as compared to $53.6 million in 2010.






  • Gross margin increased 90% to $35.3 million for the year ended December
    31, 2011
    as compared to $18.5 million in 2010.






  • EBITDAS increased 125% to $26.9 million for the year ended December 31,
    2011
    as compared to $12.0 million in 2010.






  • Net income from continuing operations increased 324% to $13.4 million
    for the year ended December 31, 2011 as compared to net income of $3.2
    million
    in 2010.






  • Successfully completed the $27.6 million 2011 capital program through
    the addition of six new service rigs, three new coil tubing units, and
    the addition of $6.6 million of rental equipment.






  • Commenced payment of a quarterly dividend, currently $0.025 per common
    share.



Operations

IROC's operations are reported in three segments; the Drilling and Production Services segment, the Rental Services segment and Corporate Services and Other.�� The following is a discussion of the reporting segments in which IROC
operates.



Drilling and Production Services

The Drilling and Production Services segment provides services to oil
and gas exploration, development and production companies with most of
our customers and operations being located in western Canada, in the
provinces of Alberta and Saskatchewan.



The Drilling and Production Services segment consists of two divisions:



Eagle Well Servicing ("Eagle") contracts service rigs to oil and gas
companies to perform various completion, work-over and maintenance
services on oil and natural gas wells.�� Eagle has offices and equipment
in Red Deer and Grande Prairie in Alberta and Lloydminster and Estevan
in Saskatchewan with equipment being used in those geographic areas.



Helix Coil Services ("Helix") contracts coil tubing units to oil and gas
companies to perform various completion, work-over and maintenance
services on oil and natural gas wells.�� Helix is based in Red Deer,
Alberta with equipment generally being used in Alberta and
Saskatchewan, Canada.




















































































































































��

��

��

Three months ended

��

December 31,

2011

September 30,

2011

June 30,

2011

March 31,

2011

Eagle Well Servicing:

��

��

��

��

��

Number of service rigs (end of period)

41

38

36

36

��

Service rig utilization(1)

69%

69%

42%

78%

��

��

��

��

��

Commodity prices:

��

��

��

��

��

NYMEX crude oil $US/bbl

94.06

89.76

102.60

94.08

��

AECO Monthly index natural gas $CAD/GJ

3.29

3.53

3.54

3.58

��

��

��

��

��

��

��

Three months ended

��

December 31,

2010

September 30,

2010

June 30,

2010

March 31,

2010

Eagle Well Servicing:

��

��

��

��

��

Number of service rigs (end of period)

35

35

35

36

��

Service rig utilization(1)

66%

57%

33%

55%

��

��

��

��

��

Commodity prices:

��

��

��

��

��

NYMEX crude oil $US/bbl

85.17

76.20

78.03

78.72

��

AECO Monthly index natural gas $CAD/GJ

3.39

3.52

3.66

5.08

(1)����������

IROC calculates utilization based on full utilization being 10 hours
days, 365 days per year consistent with the CAODC standard.�� IROC
commences calculation of utilization for a new rig on the first day it
goes into the field for active service.


As at December 31, 2011, Eagle had a fleet of 41 service rigs.�� Eagle's
service rig fleet and equipment are among the newest in the industry.��
All of Eagle's service rigs are internally guyed with no requirement
for external anchors.�� This reduces set up time and corresponding costs
when compared to anchored rigs.�� During the fourth quarter of 2011,
Eagle's first two slant rigs were delivered and went into active
service.�� Slant rig designs are optimized for use in the heavy oil and
SAGD markets.�� Eagle also put its first heavy double into service
during the fourth quarter.�� This rig is designed to address heavier
hook loads which are expected from the longer and deeper horizontal
wells which are currently being drilled in Alberta.



Since year end, the Corporation has deployed 2 additional rigs, for a
total service rig fleet of 43 rigs currently crewed and operated.�� In
addition, 4 new service rigs are currently being built, with expected
delivery and deployment in the first half of 2012.�� This will give
Eagle 47 service rigs in operation by July 1, 2012.



The trend toward increased oil-related activity continues to provide
benefit for the Corporation's service rig division. Current activity
levels are estimated to be approaching 80% levered to oil, with
completion, workover and abandonment activity all providing continued
strong demand for the Corporation's services in the foreseeable future.



Eagle was able to fully crew its assets through the fourth quarter of
2011 and continues to do so notwithstanding the very tight labour
market across the service industry.



Commodity prices are the main activity driver as the Corporation's
customers' exploration and development programs are directly impacted
by oil and natural gas prices.�� Oil and gas producers spend capital on
new wells and service operations when they are economic within the
context of current and forecasted commodity prices.�� Year over year,
crude oil prices were stronger in 2011 than in 2010 with NYMEX crude
oil averaging $US 95.12/barrel in 2011 as compared to $US 79.53/barrel
in 2010.�� For the past seven quarters, natural gas prices have remained
within a $3.00 to $4.00 range which is relatively weak in comparison to
historic price levels over the preceding five years.�� At these price
levels, natural gas development has been focused on resource type
development projects and liquids rich reservoirs as much conventional
shallow gas is not economic.�� Should there be a return to higher
natural gas prices, as is starting to be predicted by some industry
participants, the level of activity and demand for the Corporation's
services is expected to increase across all business lines.



Utilization for the fourth quarter increased modestly year over year at
69% in the current year quarter as compared to 66% in the comparative
quarter of last year and was on par with the third quarter.�� The
seasonality of spring break-up, forest fires in Northern Alberta, and
wet weather conditions in various regions all contributed to reduced
activity levels during the second quarter of 2011.�� With all of those
factors diminishing during the third quarter, activity levels picked up
again and continued through the fourth quarter.�� Seasonality is a
significant activity driver for all of our businesses as certain areas
are only accessible by service rigs and other heavy equipment during
winter when the ground is frozen.�� On a full year basis, utilization
was up significantly at 65% in the current year compared to 53% in the
prior year.�� Increased year over year activity was largely driven by
horizontal drilling which has contributed to increased utilization as
exploration and production companies target oil production.�� The
complexity of horizontal wells typically make completion operations
more time consuming and therefore impact utilization percentages.��
Continuing high levels of activity due to the shift towards oil based
activity also contributed to increased utilization during the quarter.



Helix Coil Services began operations in July 2011 with the deployment of
two truck mounted coil tubing units, each with 2" capabilities placing
the equipment in the intermediate size range. In the fourth quarter
Helix added one trailer unit with 2" capabilities, along with crane
support equipment.�� Coil services are a new business area for IROC and
we have been very encouraged by the results of operations from this new
division in 2011.



Rental Services

The Rental Services segment consists of the Aero Rental Services
division.�� Aero provides rental equipment for surface pressure control
in drilling and workover operations and tubular handling equipment used
for the workover, re-entry and completion operations.�� Aero has an
office in Red Deer, Alberta with equipment being rented for use
primarily in Alberta.






















































































��

��

��

��

��

��

Three months ended

$ 000's

December 31,

2011

September 30,

2011

June 30,

2011

March 31,

2011

Aero Rental Services:

��

��

��

��

��

Gross margin

2,653

2,533

826

2,793

��

Book value of rental equipment (end of period)

14,641

12,887

11,799

11,249

��

��

��

��

��

��

Three months ended

$ 000's

December 31,

2010

September 30,

2010

June 30,

2010

March 31,

2010

Aero Rental Services:

��

��

��

��

��

Gross margin

1,739

784

259

534

��

Book value of rental equipment (end of period)

10,121

8,802

7,477

7,112


Aero continues to have strong absolute margin growth on a year over year
basis.�� The increase in gross margin is driven by three primary
factors.�� Firstly, higher oil prices have increased demand and
utilization of certain types of equipment; secondly, the increased
rental asset base in 2011 as compared to the prior year; and thirdly,
the decreasing percentage of fixed costs to total costs in the business
as we start to more fully utilize the excess capacity which was
available in our shop location's yard and buildings.



Corporate Services and Other

IROC's non-operating segment, Corporate Services and Other, captures
general and administrative expenses associated with supporting each of
the reporting segments operations noted above, plus costs associated
with being a public company.�� Also included in Corporate Services is
interest expense for debt servicing and income tax expense and other
amounts not relating to the two main operating segments.



Comparison of results from the three months and one year periods ended
December 31, 2011 to the same periods last year



REVENUE






















































































































��

��

��

��

��

��

��

Three months ended

��

$ 000's

December 31,

2011

December 31,

2010

Change

$

Change

%

Revenue:

��

��

��

��

��

Drilling and Production Services

22,317

15,400

6,917

45%

��

Rental Services

4,665

3,154

1,511

48%

��

Inter-segment eliminations

(258)

(23)

(235)

1,022%

Total revenue

26,724

18,531

8,193

44%

��

��

��

��

��

Years ended

��

$ 000's

December 31,

2011

December 31,

2010

Change

$

Change

%

Revenue:

��

��

��

��

��

Drilling and Production Services

70,589

46,014

24,575

53%

��

Rental Services

15,688

7,685

8,003

104%

��

Inter-segment eliminations

(537)

(83)

(454)

547%

Total revenue

85,740

53,616

32,124

60%





OPERATING COSTS AND GROSS MARGIN















































































































































��

��

��

��

��

��

��

Three months ended

��

$ 000's

December 31,

2011

December 31,

2010

Change

$

Change

%

Operating costs:

��

��

��

��

��

Drilling and Production Services

14,134

10,069

4,065

40%

��

Rental Services

2,012

1,415

597

42%

��

Inter-segment eliminations

(258)

(23)

(235)

1,022%

Total operating costs

15,888

11,461

4,427

39%

��

��

��

��

��

Gross margin:(1)

��

��

��

��

��

Drilling and Production Services

8,183

5,331

2,852

53%

��

Rental Services

2,653

1,739

914

53%

Total gross margin

10,836

7,070

3,766

53%

��

��

��

��

��

Gross margin %(1):

��

��

��

��

��

Drilling and Production Services

37%

35%

��

2%

��

Rental Services

57%

55%

��

2%

Total gross margin %

41%

38%

��

3%

(1)See Non-GAAP Measures

��

��

��

��
















































































































































��

��

��

��

��

��

Years ended

��

$ 000's

December 31,

2011

December 31,

2010

Change

$

Change

%

Operating costs:

��

��

��

��

��

Drilling and Production Services

44,111

30,799

13,312

43%

��

Rental Services

6,883

4,369

2,514

58%

��

Inter-segment eliminations

(537)

(83)

(454)

547%

Total operating costs

50,457

35,085

15,372

44%

��

��

��

��

��

Gross margin:(1)

��

��

��

��

��

Drilling and Production Services

26,478

15,215

11,263

74%

��

Rental Services

8,805

3,216

5,489

166%

Total gross margin

35,283

18,531

16,752

90%

��

��

��

��

��

Gross margin %(1):

��

��

��

��

��

Drilling and Production Services

38%

33%

��

5%

��

Rental Services

56%

43%

��

13%

Total gross margin %

41%

35%

��

6%

(1)See Non-GAAP Measures

��

��

��

��





EBITDAS


































































































































































































��

��

��

��

��

Three months ended

��

$ 000's except per share amounts

December 31,

2011

December 31,

2010

Change

$

Change

%

EBITDAS(1):

��

��

��

��

��

Drilling and Production Services

7,307

4,600

2,707

59%

��

Rental Services

2,354

1,515

839

55%

��

Corporate and other

(1,019)

(795)

(224)

28%

Total EBITDAS

8,642

5,320

3,322

62%

��

��

��

��

��

EBITDAS per common share(1)

��

��

��

��

��

- Basic

$�� 0.172

$�� 0.124

$�� 0.048

39%

��

- Diluted

$�� 0.168

$�� 0.122

$�� 0.046

38%

(1) See Non-GAAP Measures

��

��

��

��

��

��

��

��

��

��

��

��

��

��

��

Years ended

��

$ 000's except per share amounts

December 31,

2011

December 31,

2010

Change

$

Change

%

EBITDAS(1):

��

��

��

��

��

Drilling and Production Services

23,075

12,846

10,229

80%

��

Rental Services

7,672

2,607

5,065

194%

��

Corporate and other

(3,834)

(3,469)

(365)

11%

Total EBITDAS

26,913

11,984

14,929

125%

��

��

��

��

��

EBITDAS per common share(1)

��

��

��

��

��

- Basic

$�� 0.560

$�� 0.276

$�� 0.284

103%

��

- Diluted

$�� 0.548

$�� 0.275

$�� 0.273

99%

(1) See Non-GAAP Measures





NET INCOME (LOSS)





























































































































































































































































��

��

��

��

��

��

Three months ended

��

$ 000's except share and per share amounts

December 31,

2011

December 31,

2010

Change $

or number

Change

%

��

��

��

��

��

Net income from continuing operations��

4,778

2,703

2,075

77%

��

��

��

��

��

Net income (loss) from discontinued operations

(8)

(272)

264

(97%)

��

��

��

��

��

Net income and comprehensive income��

4,770

2,431

2,339

96%

��

��

��

��

��

Earnings per share from continuing operations:

��

��

��

��

��

- Basic

$0.10

$0.06

$0.04

58%

��

- Diluted

$0.10

$0.06

$0.04

56%

��

��

��

��

��

Weighted average common shares outstanding:

��

��

��

��

��

- Basic

50,142,262

43,026,730

7,115,532

17%

��

- Diluted

51,399,627

43,446,534

7,953,093

18%

��

��

��

��

��

��

��

��

��

��

��

Years ended

��

$ 000's except share and per share amounts

December 31,

2011

December 31,

2010

Change $

or number

Change

%

��

��

��

��

��

Net income from continuing operations��

13,379

3,153

10,226

324%

��

��

��

��

��

Loss from discontinued operations

(1,192)

(136)

(1,056)

776%

��

��

��

��

��

Net income and comprehensive income��

12,187

3,017

9,170

304%

��

��

��

��

��

Earnings per share from continuing operations:

��

��

��

��

��

- Basic

$0.25

$0.07

$0.18

246%

��

- Diluted

$0.25

$0.07

$0.18

242%

��

��

��

��

��

Weighted average common shares outstanding:

��

��

��

��

��

- Basic

48,034,018

43,426,426

4,607,592

11%

��

- Diluted

49,136,072

43,563,099

5,572,973

13%


Discontinued Operations

On July 14, 2011 IROC sold the business assets of its Canada Tech
division ("Canada Tech").�� The assets sold consisted of inventory,
prepaid expenses and deposits, intangible assets, and property and
equipment.�� Proceeds of sale consisted of cash consideration of
approximately $4.8 million.�� The sale included the complete Canada Tech
division with all existing division employees being offered continued
employment by the purchaser.�� The net book value of the assets disposed
on July 14, 2011 was $6.3 million and the loss on sale of $1.6 million
is included in the loss from discontinued operations.�� The Corporation
does not expect the sale of the Canada Tech division to have any impact
on current or future operations.



On December 30, 2011, the Corporation received a settlement for damages
relating to a 2008 incident in the Corporation's former Mission
Drilling business resulting in a gain of $0.3 million.�� All of the
assets of the Mission Drilling business were sold during 2008.



The full year loss from all discontinued operations was $1.2 million in
2011 as compared to $0.2 million in 2010.



Outlook

IROC Energy Services Corp. had a record year in 2011 finishing up with
fourth quarter and full year EBITDAS that were the strongest in the
history of the Company. Our ability to address the needs of our
customers as they continue to expand their use of horizontal drilling
and multistage fracturing technologies remains the focus of each of our
operating divisions. Each of our divisions is benefitting from the
increased oil price and technology driven industry conditions and we
are experiencing an increasing demand for well servicing rigs, coiled
tubing units and the rental assets of our Rental Services division.�� We
expect continued strong demand for all of the services we offer in 2012
based on current oil price levels and the continued expansion of
horizontal drilling and multi stage fracturing technologies into an
increasing number of areas.



Our service rig division will continue to be the largest contributor of
revenues and profits in our company.�� Eagle averaged 37.3 rigs during
2011, starting the year with 36 rigs and ending with 41 rigs in the
field.�� Eagle will add six more service rigs during 2012 with two
already in service, the third expected by April 1 and the fourth, fifth
and sixth expected by July 1.�� By mid-year we expect to have 47 service
rigs operating in the field and we expect to average over 45 rigs for
calendar 2012 as compared to the 37.3 rigs in 2011, an increase of 7.7
rigs or 21%.�� We expect this to translate into a similar magnitude of
revenue, margin and EBITDAS growth for this division in 2012.



We believe there is an advantage to our new, built to order service
rigs.�� Eagle's new equipment specifically addresses the current needs
of our customers or targeted areas of operation and provides greater
operating efficiency with minimal downtime. We continue to build
equipment that is lighter and more adaptable to the various areas where
we operate.�� Our new heavy double rig was built specifically to address
the challenges inherent in completing and working-over horizontal
wells.�� Our new slant rigs incorporate new and innovative designs which
increase efficiencies for our customers in SAGD operations. This new
and innovative equipment continues to attract both work and competent
personnel, enabling Eagle to achieve high equipment utilization, a
benefit to our employees and customers alike.



Our rental business continues to operate very well and the demand for
its products and services continues to increase as our customers
exploit oil opportunities in both the application of horizontal
technology, and the SAGD operating segments of the oil and gas business
in Western Canada.�� In 2011 we continued to unlock the operating
leverage available to us in this division as we added more equipment
with increasing revenues and margins. Gross margins for Aero moved to
56% during the year as compared to 43% in the prior year and we expect
these margins to continue or improve further as we go into 2012. As
industry acceptance of the new equipment and services remains strong,
we anticipated being able to continue to profitably add assets in this
division and have budgeted $8 million for the acquisition of new rental
assets in 2012.�� Growth in this business is somewhat hampered by the
geographic coverage available from our single location in Red Deer.�� We
anticipate opening an additional facility later in the year to address
the needs of customers who operate in the northern portion of Alberta.



The contribution from our new start up coil tubing business was positive
during both the fourth quarter and full year 2011.�� We expect growth in
this business in 2012 now that we have deployed our new trailer unit
and additional auxiliary equipment. The coiled tubing operation is very
complementary to our other services and we expect it will provide a
significant contribution to our bottom line over the coming quarters
and years.



Our ability to attract and retain personnel in a very tight labour
market is critical to all of our businesses. We have been able to fully
crew all of our service rigs and coil tubing units through this past
year and continue to be able to do so.�� Our recent and planned growth
will continue to make IROC an attractive employer and provide
opportunities for our workforce into the future. As we move into 2012,
IROC has a strong balance sheet, the newest in equipment, and a
talented group of employees that will allow us to continue to grow and
capitalize on opportunities as they present themselves.



Declaration of quarterly dividend

The Board of Directors has declared a quarterly cash dividend of $0.025
per common share. The dividend will be payable April 13, 2012 to
shareholders of record at the close of business on April 6, 2012.



Conference call and webcast

IROC will conduct a conference call on Wednesday, March 21, 2012 at
11:00 a.m. MST (1:00 p.m. EST). Thomas Alford, President and CEO, and
Ryan Michaluk, CFO, will both be presenting during the call.



To access the conference call, contact the conference call operator at
(888) 231-8191 (North America) and (647) 427-7450 (Toronto and outside
North America) approximately 10 minutes prior to the call and request
the "IROC Energy Services Corp 2011 annual results conference call".
The call will be open to all analysts, investors and other interested
parties.



The conference call will also be available via webcast by visiting http://www.newswire.ca/en/webcast/detail/932507/996571 from a web browser.



Accounting policy changes

IROC prepares its financial statements in accordance with Canadian
generally accepted accounting principles as set out in the Handbook of
the Canadian Institute of Chartered Accountants ("CICA" and "CICA
Handbook").�� In 2010, the CICA Handbook was revised to incorporate
International Financial Reporting Standards ("IFRS") and require public
companies to apply such standards effective for years beginning on or
after January 1, 2011.



On January 1, 2011, IROC adopted International Financial Reporting
Standards ("IFRS") for purposes of financial reporting, using a
transition date of January 1, 2010.�� Accordingly, the audited
consolidated financial statements for the year ended December 31, 2011
and the comparative information for the year ended December 31, 2010,
have been prepared in accordance with International Financial Reporting
Standard 1, "First-time Adoption of International Financial Reporting
Standards", as issued by the International Accounting Standards Board
("IASB").



The adoption of IFRS has not had an impact on the Company's operations
or strategic decisions.�� Further information on the effect of adopting
IFRS is outlined in the Changes in Accounting Pronouncements including
Initial Adoption section of the annual MD&A.



About IROC Energy Services Corporation

IROC Energy Services Corp. is an Alberta oilfield services company that,
through the IROC Energy Services Partnership, provides a diverse range
of products, services and equipment to the oil and gas industry that
are among the newest and most innovative in the WCSB.�� IROC Energy
Services Partnership operates under the business names of Eagle Well
Servicing, Aero Rental Services and Helix Coil Services.�� IROC combines
cutting-edge technology with depth of experience to deliver a product
and services offering in the following core areas: well servicing &
equipment, rental services and coil tubing services. For more
information on IROC Energy Services Corp., visit our website at www.iroccorp.com.



Cautionary Statement Regarding Forward Looking Information and Statements

Certain information contained in this news release, including
information related to the completion and timing of the construction of
IROC's new service rigs and new coiled tubing units, the Corporation's
planned capital expenditures and growth opportunities, outlook for
future oil and gas prices, cyclical industry fundamentals, drilling,
completion, work over and abandonment activity levels, the
Corporation's ability to fund future obligations and capital
expenditures, and information or statements that contain words such as
"could", "should", "can", "anticipate", "expect", "believe", "will",
"may", "likely", "estimate", "predict", "potential", "continue",
"maintain", "retain", "grow", and similar expressions and statements
relating to matters that are not historical facts, constitute
"forward-looking information" within the meaning of applicable Canadian
securities legislation.�� This information or these statements are based
on certain assumptions and analysis made by the Corporation in light of
its experience and its perception of historical trends, current
conditions and expected future developments as well as other factors it
believes are appropriate in the circumstances. In particular, the
Corporation's expectation of uncertain demand and prices for oil and
natural gas and the resulting future industry activity, is premised on
the Corporation's understanding of customers' capital budgets and their
ability to access capital, the focus of its customers on deeper and
horizontal drilling opportunities in the current natural gas pricing
environment, and the continuing impact of the recent global financial
crisis and the current economic recovery all of which affects the
demand for oil and gas. Whether actual results, performance or
achievements will conform to the Corporation's expectations and
predictions is subject to a number of known and unknown risks and
uncertainties which could cause actual results to differ materially
from the Corporation's expectations.�� Such risks and uncertainties
include, but are not limited to: fluctuations in the price and demand
for oil and natural gas; fluctuations in the level of oil and natural
gas exploration and development activities; fluctuations in the demand
for well servicing; the effects of weather conditions on operations and
facilities; the existence of competitive operating risks inherent in
well servicing; general economic, market or business conditions;
changes in laws or regulations, including taxation, environmental and
currency regulations; the lack of availability of qualified personnel
or management; the other risk factors set forth under the heading
"Risks" in the annual MD&A for the year ended December 31, 2011 and
other unforeseen conditions which could impact on the use of services
supplied by the Corporation.



Consequently, all of the forward-looking information and statements made
in this news release are qualified by this cautionary statement and
there can be no assurance that the actual results or developments
anticipated by the Corporation will be realized or, even if
substantially realized, that they will have the expected consequences
to or effects on the Corporation or its business or operations. Except
as may be required by law, the Corporation assumes no obligation to
update publicly any such forward-looking information and statements,
whether as a result of new information, future events, or otherwise.



This press release is not for dissemination in United States or to any
United States news services.�� The Common Shares of IROC have not and
will not be registered on the United States Securities Act of 1933, as amended (the "United States Securities Act") or any state securities laws and are not offered or sold in the
United States or to any US person except in certain transactions exempt
from the registration requirements of the United States Securities Act and applicable state securities laws.



Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.



Non-GAAP Measures

The financial statements have been prepared in accordance with IFRS.��
Certain supplementary information and measures not recognized under
IFRS are provided where Management believes they assist the reader in
understanding IROC's results.�� These measures include:




  1. EBITDAS and EBITDAS per share- EBITDAS is defined as earnings before
    interest, taxes, depreciation and amortization, stock-based
    compensation expense, foreign exchange gains and losses, goodwill
    impairment, note receivable impairment, and gains or losses on disposal
    of property and equipment.�� EBITDAS and EBITDAS per share are not
    recognized measures under GAAP or IFRS.�� The Corporation believes that
    EBITDAS is provided as a measure of operating performance without
    reference to financing decisions, income tax impacts and non-cash
    expenses, which are not controlled at the operating management level.��
    Accordingly, the Corporation believes EBITDAS is a useful measure for
    prospective investors in evaluating the financial performance of the
    Corporation, and specifically, the ability of the Corporation to
    service the interest on its indebtedness.�� Investors should be
    cautioned that EBITDAS should not be construed as an alternative to net
    income determined in accordance with GAAP or IFRS as an indicator of
    the Corporation's performance.�� IROC's method of calculating EBITDAS
    may differ from those of other companies, and accordingly, EBITDAS may
    not be directly comparable to measures used by other companies. EBITDAS
    % is calculated as EBITDAS divided by revenue.






  2. Gross margin is defined as revenue less operating expenses.�� Gross
    margin % is defined as gross margin divided by revenue.�� The Company
    believes that gross margin and gross margin % are useful measures which
    provide an indicator of the Corporation's fundamental ability to make
    money on the products and services it sells.�� The Corporation believes
    the relationship between revenues and costs expressed by the gross
    margin % is a useful measure when compared between different financial
    periods as it demonstrates the trending relationship between revenues,
    costs and margins.�� Gross margin and gross margin % are not recognized
    measures of GAAP or IFRS and do not have any standardized meaning
    prescribed by GAAP or IFRS.�� IROC's method of calculating gross margin
    and gross margin % may differ from those of other companies, and
    accordingly, may not be directly comparable to measures used by other
    companies.�� Gross margin is reconciled to revenue - continuing
    operations in the Financial results and selected financial information table.



The following is a reconciliation of EBITDAS and EBITDAS per share to
net income from continuing operations:














































































































































































































































































































































��

��

��

��

��

��

��

Year ended

Three months ended

$ 000's except number of shares and per share amounts

December 31, 2011

December 31, 2011

September 30, 2011

June 30,

2011

March 31,

2011

Net income (loss) from continuing operations

13,379

4,778

4,330

(331)

4,602

��

��

��

��

��

��

Depreciation and amortization

7,396

2,111

1,920

1,715

1,650

Loss (gain) on foreign exchange

30

(1)

23

8

-

Stock based compensation expense

604

167

169

115

153

Loss (gain) on disposal of equipment

(19)

(8)

7

7

(25)

Interest and financing costs

803

163

164

190

286

Note receivable recovery

-

-

-

-

-

Income taxes:

��

��

��

��

��

��

Current

-

-

-

-

-

��

Future

4,720

1,432

1,619

(62)

1,731

��

��

��

��

��

��

EBITDAS - continuing operations

26,913

8,642

8,232

1,642

8,397

��

��

��

��

��

��

EBITDAS per share - continuing operations

��

��

��

��

��

��

Basic

$0.56

$0.18

$0.16

$0.03

$0.20

��

Diluted

$0.55

$0.18

$0.16

$0.03

$0.19

��

��

��

��

��

��

��

��

��

��

��

��

��

Year ended

Three months ended

$ 000's except number of shares and per share amounts

December 31, 2010

December 31, 2010

September 30, 2010

June 30,

2010

March 31,

2010

Net income (loss) from continuing operations

3,153

2,703

1,068

(1,307)

689

��

��

��

��

��

��

Depreciation and amortization

6,713

1,857

1,755

1,553

1,548

Gain on foreign exchange

(5)

-

(2)

(3)

-

Stock based compensation expense

458

105

82

119

152

Loss (gain) on disposal of equipment

(45)

(17)

(24)

1

(5)

Interest and financing costs

1,256

305

304

275

372

Note receivable impairment

(300)

-

(300)

-

-

Income taxes:

��

��

��

��

��

��

Current

-

-

-

-

-

��

Future

754

367

414

(308)

281

��

��

��

��

��

��

EBITDAS - continuing operations

11,984

5,320

3,297

330

3,037

��

��

��

��

��

��

EBITDAS per share - continuing operations

��

��

��

��

��

��

Basic

$0.28

$0.12

$0.08

$0.01

$0.07

��

Diluted

$0.28

$0.12

$0.08

$0.01

$0.07


��



For further information:

IROC Energy Services Corp.
Mr. Thomas M. Alford, President and CEO,

or

Mr. Ryan A. Michaluk, Chief Financial Officer
Telephone:�� (403) 263-1110
Email:��investorrelations@iroccorp.com









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