M ANAGEMENT S DISCUSSION AND ANALYSIS continued 20 Orbit G arant 2012 annual rep O rt Investing activities Cash used in investing activities totalled 221 million for fscal 2012 compared to 227 million in fscal 2011 During fscal 2012 184 million was used for the acquisition of property plant and equipment including new rigs support equipment the Companys new facility in ValdOr Quebec and cash of 17 million on disposition of property plant and equipment This compares with 186 million for the acquisition of Property Plant and Equipment and cash of 12 million on disposition of a property for the fscal year ended June 30 2011 During fscal 2012 54 million was used for the business acquisition of Lantech Drilling In fscal 2011 58 million were used for business acquisitions and 05 million of net consideration on disposal of an investment Financing activities Cash fow generated from fnancing activities was 86 million for fscal 2012 In fscal 2011 cash fow from fnancing activities generated 144 million During fscal 2012 the Company frequently drew upon its 40 million revolving Credit Facility and partially repaid borrowed amounts During the year these activities resulted in additional borrowing of 85 million As at June 30 2012 the Companys longterm debt including the current portion was 264 million The debt was used to support the acquisition of Lantech Drilling and the acquisition of other capital assets including property plant and equipment As at June 30 2012 the Companys working capital was 603 million compared to 500 million as at June 30 2011 The Companys working capital requirements are primarily to fund inventory acquisition and support account receivables The Company believes that it will be able to generate suffcient cash fow to meet its current and future working capital expendi ture and debt obligations The Companys principal capital expenditures are for the acquisition of drill rigs and property pl ant and equipment Source of financing The Companys primary sources of liquidity are from operations and borrowings under a credit agreement between the Company and National Bank of Canada Inc the Credit Agreement and also equity fnancing On May 27 2011 Orbit Garant obtained a 400 million secured fouryear revolving credit facility the Credit Facility Orbit G arant and its lenders have the option to increase the funds available under the Credit Facility up to a total of 600 million subject to certain conditions The Credit Facility will be used to fund working capital requirements and provide further fexibility to the Companys longterm acquisition program The Credit Facility matures no l ater than May 27 2015 As of June 30 2012 the Company had drawn 256 million The Credit Agreement contains covenants that limit the Companys ability to undertake certain actions including mergers liqui dations dissolutions and changes of ownership the incurrence of additional indebtedness encumbering the Companys assets guarantees loans investments and acquisitions that may be made by the Company investing in or entering into derivative instruments paying dividends and or making other capital distributions to related parties making capital expenditures and making certain asset sales As at June 30 2012 the Company had future contractual obligations as follows Less than Total 1 year 23 years 45 years thousands Bank loan Longterm debt 26582 401 316 25865 Operating leases 1554 468 690 396 Contingent consideration 4800 1600 3200 Other longterm obligations Total 32936 2469 4206 26261