All four quarters in 2011 reflect continued strong demand for our products and services. Revenue, Adjusted EBITDA, earnings before taxes and net earnings have steadily improved quarter-over-quarter in line with market conditions from 2010. Net earnings in Q2 relative to Q1 2011 were positively impacted by lower stock-based compensation expense and lower related deferred tax expense. Relative to Q3 2011, Q4 net earnings and Earnings before taxes were lower due to lower Adjusted EBITDA as well as higher financing fees as a result of the early redemption of the Convertible Debentures. Adjusted EBITDA was lower in Q4 relative to Q3 2011 due largely to lower contributions from Facilities resulting from lower event-based business at SCL and weaker performance at VSC, as well as higher Adjusted SG&A due to the timing of expenses.
Quarterly revenue in 2012 grew, reflecting strong demand for our services. Compared to Q4 2011, Q1 2012 revenue was down and Adjusted EBITDA was flat. Lower contributions from Onsite due to reduced activity at our Heavy Oil facilities were offset by lower Adjusted SG&A costs. Net income was down 20% over Q4 2011 due to seasonally lower contributions from Onsite and higher stock-based compensation expense which were offset by lower finance charges. Compared to Q1, Q2 2012 revenue was up slightly and net earnings increased significantly due to lower stock-based compensation expense and net finance charges. Adjusted EBITDA in Q2 2012 was down from Q1 due to the lower value received for our products in the quarter and higher SG&A expenses. Revenue and adjusted EBITDA in Q3 2012 increased compared to the prior quarter as a result of growth in Onsite. Net earnings decreased in Q3 2012 due to higher stock-based compensation expense. Fourth quarter revenue increased relative to Q3 2012 due to increased demand for our onsite contracts and projects. Net earnings and adjusted EBITDA in Q4 decreased from Q3 2012 due to the impact of lower value received for our products, reduced oilfield activity and higher stock-based compensation expense.
RECENT DEVELOPMENTS
On January 1, 2013, we reorganized our reporting structure into three divisions - New Markets, Oilfield and Industrial. The changes to our operating structure are based on:
-- improved alignment of our operations with our customers so that we can provide a seamless service package and also focus our efforts on developing new and innovative solutions for them;-- providing the optimum structure to allocate management to execute our growth plans; and,-- improving the disclosure to our investors with additional detail on the results of our areas of high growth (New Markets Division) while retaining all of the previous information provided.
The reorganization of the three new divisions will be as follows:
New Markets
-- Heavy Oil Business Unit (includes heavy oil facilities and onsite)-- U.S. Business Unit (includes U.S. facilities, drill site and onsite)
Oilfield
-- Includes oilfield facilities, oilfield onsite, environmental services and Canadian drill site
Industrial
-- Western Business Unit (includes oil recycling, industrial facilities and industrial onsite in western Canada)-- Eastern Business Unit (includes VSC, SCL, industrial facilities and industrial onsite in eastern Canada)
The tables below restate the historical segmented information from the Facilities and Onsite divisions to the New Markets, Oilfield and Industrial divisions.
