Orbit Garant 2012 annual rep O rt 39 C ONSOLIDATED STATEMENT OF CAS h FLO w S For the years ended June 30, 2012 and 2011 June 30 June 30 2012 2011 (in thousands of Canadian dollars) Notes $ $ (note 22) Operating activities Earnings before income taxes 15,082 16,748 Items not affecting cash: Amortization of property, plant and equipment 9 9,412 7,159 Amortization of intangible assets 11 2,064 1,510 Gain on disposal of property, plant and equipment 9 (168) (36) Gain on long-term investments — (209) Share-based compensation 14 1,009 819 Finance costs 1,224 440 Change in fair value of contingent considerations 107 116 Share in net earnings of associates less dividends — (216) 28,730 26,331 Changes in non-cash operating working capital items 16 (7,570) (20,694) Income taxes paid (3,801) (5,786) Finance costs paid (1,158) (360) 16,201 (509) Investing activities Business acquisitions of Lantech Drilling Services Inc., including bank overdraft 2 (5,445) — Business acquisitions of 1085820 Ontario Limited, net of cash acquired 2 — (3,240) Business acquisitions of Morris Drilling Inc., net of cash acquired 2 — (2,578) Proceeds from disposal of investment in associate — 528 Acquisition of property, plant and equipment (18,377) (18,647) Proceeds from disposal of property, plant and equipment 1,675 1,244 (22,147) (22,693) Financing activities Proceeds from issuance of shares 31 4 Proceeds from long-term debt 102,925 21,507 Repayment of long-term debt (94,394) (7,121) 8,562 14,390 Effect of exchange rate changes 41 — Increase (decrease) in cash 2,657 (8,812) Cash (bank overdraft), beginning of year (698) 8,114 Cash (bank overdraft), end of year 1,959 (698) Additional information 16 See accompanying notes to consolidated fnancial statements.