"Adjusted net earnings" and "Adjusted net earnings per share" are measures of our profitability. Adjusted net earnings provides an indication of the results generated by our principal business activities prior to recognizing stock-based compensation expense and the gain or loss on embedded derivatives. Stock-based compensation expense, a component of employee remuneration, can vary significantly with changes in the price of our common shares. The gain on the embedded derivative is a result of the change in the trading price of the debentures and the volatility of the applicable bond market. As such, Adjusted net earnings provides improved continuity with respect to the comparison of our results over a period of time. Adjusted net earnings per share is derived by dividing Adjusted net earnings by the basic weighted average number of shares.
Three months ended Year ended December 31, December 31,($000s) 2012 2011 2012 2011----------------------------------------------------------------------------Net earnings 4,124 6,031 42,804 33,562Add back (deduct): Stock-based compensation expense 5,425 3,162 12,258 7,679 Embedded derivative gain (602) - (13,439) -----------------------------------------------------------------------------Adjusted net earnings 8,947 9,193 41,623 41,241----------------------------------------------------------------------------Adjusted net earnings per share 0.17 0.19 0.84 0.85----------------------------------------------------------------------------
"Book value per share" is used to assist management and investors in evaluating the book value compared to the market value.
Year ended December 31,($000s) 2012 2011----------------------------------------------------------------------------Total Equity 641,440 541,921Shares outstanding, December 31, 54,263 48,607----------------------------------------------------------------------------Book value per share 11.82 11.15----------------------------------------------------------------------------
"Funds from operations" is used to assist management and investors in analyzing cash flow and leverage. Funds from operations as presented is not intended to represent operating funds from operations or operating profits for the period, nor should it be viewed as an alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. Funds from operations is derived from the consolidated statements of cash flows and is calculated as follows:
Three months ended Year ended December 31, December 31,($000s) 2012 2011 2012 2011----------------------------------------------------------------------------Cash from operations 47,392 51,390 97,179 104,563Add back (deduct) : (Decrease) increase in non-cash (26,772) (27,749) 15,883 14,856 working capital Decommissioning obligations 1,683 1,711 3,554 3,356 incurred----------------------------------------------------------------------------Funds from operations 22,303 25,352 116,616 122,775----------------------------------------------------------------------------Weighted average number of shares 52,741 48,569 49,690 48,569----------------------------------------------------------------------------Funds from operations per share 0.42 0.52 2.35 2.53----------------------------------------------------------------------------
