Q1 Financial Report - 2011

The remaining variance was the result of a number of offsetting items with no individual
variance larger than $0.3 million.
EBITDA and Profit (see "Non-IFRS Measures”)
Adjusted EBITDA for the three months ended March 31, 2011 was $11.8 million (2010 - $9.9
million). The increase over 2010 is largely due to strong demand for commercial equipment
offset by the negative impact of the stronger Canadian dollar. EBITDA for the three months
ended March 31, 2011 was $13.3 million (2010 - $11.7 million).
Finance Costs
The Company’s bank indebtedness as at March 31, 2011 was $nil (2010 - $nil) and its
outstanding long-term debt including the current portion was $23.8 million (2010 - $25.4
million). Long-term debt at March 31, 2011 is comprised of USD $25.0 million aggregate
principal amount of non-amortizing secured notes that bear interest at 6.80% and mature October
29, 2016, net of deferred financing costs of $0.6 million and $0.1 million of 0% GMAC
financing. The Company is also party to a credit facility with three Canadian chartered banks that
includes CAD $10.0 million and USD $2.0 million available for working capital purposes and
provides for non-amortizing long-term debt of up to CAD $38.0 million and USD $20.5 million.
The facilities bear interest at rates of prime plus 0.50 % to prime plus 1.50% based on
performance calculations and matures on October 29, 2012. See “Financial Instruments”.
Obligations under capital lease of $0.4 million include a number of equipment leases with an
average interest rate of 6.5%. The lease end dates are in 2011 and 2012.
Finance costs for the three month period ended March 31, 2011 were $3.1 million (2010 - $3.1
million). At March 31, 2011 the Company had outstanding $114.9 million aggregate principal
amount of convertible unsecured subordinated debentures (2010 - $115.0 million). The
Debentures bear interest at an annual rate of 7.0% and mature December 31, 2014. See “Capital
Resources”. Finance costs are comprised of coupon interest on the Debentures of $2.0 million,
non-cash interest related to debenture accretion and the amortization of deferred finance costs of
$0.6 million and stand-by fees and other cash interest of $0.5 million.
Finance Income
Finance income is comprised of interest earned on the Company’s surplus cash balances.
Depreciation and amortization
Under IFRS depreciation of property, plant and equipment and the amortization of intangible
assets are categorized on the income statement in accordance with the function to which the
underlying asset is related.
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