Normalized EBITD A Consolidated Normalized EBITD A during the Fiscal 2008 Interim P eriod was 17043532 an increase of 11090058 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 1480692 due to the recapitalization that occurred when Orbit was acquired on January 31 2007 and the assets of Drift and PhylDon 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 1860346 in the Fiscal 2008 Interim P eriod as compared to 1071990 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 3016501 during the Fiscal 2008 Interim P eriod compared to 1459436 in the Fiscal 2007 Interim P eriod Net Earnings Net earnings for the Fiscal 2008 Interim P eriod totalled 7960492 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 24641773 in 2006 to 43214099 in 2007 Approximately 17091286 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 PhylDon Underground drilling contract revenue increased from 24641773 to 30088493 over this period a gain of 22 This was primarily due to the combination of Orbits existing underground division with Garant Domestic surface drilling contract revenue increased from 0 to 7669880 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 4089851 from none in the prior fiscal year R evenue attributable to the sale of drills to unrelated third parties by Soudure R oyale was 1365875 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 9076102 in 2007 to 12524832 as compared to 3448730 in the previous year The domestic surface division international surface division including Drift and Soudure R oyale accounted for 2192112 2311779 and 371018 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 lowermargin underground contract with several highermargin contracts in the second half of the year ii contractual price increases in the underground segment taking effect and iii the inclusion of Orbits underground drilling division in Companys financial results 46