Normalized EBITD A Consolidated Normalized EBITD A during the Fiscal 2008 Interim P eriod was $17,043,532, an increase of $11,090,058 or 186% over the Fiscal 2007 Interim P eriod. This increase is attributable to the acquisitions of Orbit and Drift and, to a lesser extent, the organic growth in the underground segment. F inancial Expenses Interest costs increases during the Fiscal 2008 Interim P eriod to $1,480,692 due to the recapitalization that occurred when Orbit was acquired on January 31, 2007 and the assets of Drift and Phyl-Don were acquired on April 17, 2007. Each of these transactions resulted in the addition of debt in the capital of the Company. Amortization The acquisition of the capital assets of Orbit and Drift during 2007, as well as the purchase of additional underground and surface rigs following the acquisitions, resulted in total amortization of $1,860,346 in the Fiscal 2008 Interim P eriod as compared to $1,071,990 in the Fiscal 2007 Interim P eriod. In addition, the reorganizations that occurred during the 2007 Fiscal Y ear gave rise to certain intangible assets, the amortization of which totalled $3,016,501 during the Fiscal 2008 Interim P eriod compared to $1,459,436 in the Fiscal 2007 Interim P eriod. Net Earnings Net earnings for the Fiscal 2008 Interim P eriod totalled $7,960,492 or a 440% increase over the Fiscal 2007 Interim P eriod. The increase relates primarily to the acquisition of Orbit and, to a lesser extent, to the acquisition of Drift, that were completed in during the second half of the 2007 fiscal year. The average tax rate for the Company in Interim 2008 Fiscal P eriod was 31% as compared to 34% in Fiscal 2007 Interim P eriod. F iscal Y ear Ended June 30, 2007 Compared to June 30, 2006 Contract R evenue T otal contract revenue increased from $24,641,773 in 2006 to $43,214,099 in 2007. Approximately $17,091,286 of this increase relates primarily to the acquisition of Orbit, Soudure R oyale and, to a lesser extent, to the acquisition of Drift (including the assets of Phyl-Don). Underground drilling contract revenue increased from $24,641,773 to $30,088,493 over this period, a gain of 22%. This was primarily due to the combination of Orbit’s existing underground division with Garant. Domestic surface drilling contract revenue increased from $0 to $7,669,880 from 2006 to 2007. The Company did not previously have a surface drilling division and so the increase is a result of the acquisition of Orbit. Similarly, revenue related to international surface work performed by Orbit and Drift was added to the consolidated revenue of the Company, resulting in revenue of $4,089,851 from none in the prior fiscal year. R evenue attributable to the sale of drills to unrelated third parties by Soudure R oyale was $1,365,875 for the five months following the acquisition of Orbit. Soudure R oyale was acquired as part of the Orbit transaction and so all of this revenue is incremental to the Company. Cost of Contract R evenue and Gross Profit T otal gross profit increased by $9,076,102 in 2007 to $12,524,832 as compared to $3,448,730 in the previous year. The domestic surface division, international surface division (including Drift) and Soudure R oyale accounted for $2,192,112, $2,311,779 and $371,018 of gross profit, respectively. These divisions were acquired during 2007 and therefore that gross profit is incremental to the previous year. The balance of the gross profit increase is attributable to the following: (i) the replacement of a lower-margin underground contract with several higher-margin contracts in the second half of the year; (ii) contractual price increases in the underground segment taking effect; and (iii) the inclusion of Orbit’s underground drilling division in Company’s financial results. 46