M ANAGEMENT ’ S DISCUSSION AND ANALYSIS (continued) 20 Orbit G arant 2012 annual rep O rt Investing activities Cash used in investing activities totalled $22.1 million for fscal 2012, compared to $22.7 million in fscal 2011. During fscal 2012, $18.4 million was used for the acquisition of property, plant and equipment, including new rigs, support equipment, the Company’s new facility in Val-d’Or, Quebec and cash of $1.7 million on disposition of property, plant and equipment. This compares with $18.6 million for the acquisition of Property, Plant and Equipment and cash of $1.2 million on disposition of a property for the fscal year ended June 30, 2011. During fscal 2012, $5.4 million was used for the business acquisition of Lantech Drilling. In fscal 2011, $5.8 million were used for business acquisitions and $0.5 million of net consideration on disposal of an investment. Financing activities Cash fow generated from fnancing activities was $8.6 million for fscal 2012. In fscal 2011 cash fow from fnancing activities generated $14.4 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 $8.5 million. As at June 30, 2012, the Company’s long-term debt, including the current portion, was $26.4 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 Company’s working capital was $60.3 million, compared to $50.0 million as at June 30, 2011. The Company’s 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 Company’s principal capital expenditures are for the acquisition of drill rigs and property, pl ant and equipment. Source of financing The Company’s 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 $40.0 million secured, four-year 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 $60.0 million, subject to certain conditions. The Credit Facility will be used to fund working capital requirements and provide further fexibility to the Company’s long-term acquisition program. The Credit Facility matures no l ater than May 27, 2015. As of June 30, 2012 the Company had drawn $25.6 million. The Credit Agreement contains covenants that limit the Company’s ability to undertake certain actions, including mergers, liqui dations, dissolutions and changes of ownership; the incurrence of additional indebtedness; encumbering the Company’s assets; guarantees, loans, investments and acquisitions that may be made by the Company; investing in or entering into derivative instruments, paying dividends and/ or making other capital distributions to related parties; making capital expenditures; and making certain asset sales. As at June 30, 2012, the Company had future contractual obligations as follows: Less than Total 1 year 2–3 years 4–5 years *($ thousands) $ $ $ $ Bank loan* — — — — Long-term debt* 26,582 401 316 25,865 Operating leases* 1,554 468 690 396 Contingent consideration* 4,800 1,600 3,200 — Other long-term obligations* — — — — Total* 32,936 2,469 4,206 26,261