Management Discussion & Analysis  Corporation’s balance sheet and shareholder’s equity from Canadian GAAP to IFRS at January 1, 2010  and December 31, 2010, its net income and comprehensive income and its statement of cash flows for the  year ended December 31, 2010. Explanations of the individual impacts of adopting IFRS identified in the  reconciliations are also provided, as are the Corporation’s elections under IFRS 1 “First-time Adoption of  International Financial Reporting Standards”.  A number of new standards, amendments to standards and interpretations are effective for annual periods  beginning after January 1, 2011, and have not been applied in preparing these consolidated financial  statements. None of these is expected to have a significant effect on the consolidated financial statements of  the Corporation, except for IFRS 9, Financial Instruments, which becomes mandatory for the  Corporation’s 2013 consolidated financial statements and could change the classification and measurement  of financial assets. The Corporation does not plan to adopt this standard early and the extent of the impact  has not been determined.  Amounts are in thousands except for income (loss) per unit/share:  Revenue and earnings for the year ended December 31, 2011 were increased by the $27.7 million in gains  on the reduction of the Corporation’s interest in LifeMark and the sale of its interest in MEDIchair. Before  that adjustment, basic and fully-diluted income per share in 2011 was $0.67 and $0.65, respectively. The  net income for the year ended December 31, 2009 was increased by a $6 million non-cash recovery of  future income taxes as a result of the extension of expiry dates on investment tax credits. Before that  adjustment, basic and fully-diluted income per share in 2009 was $1.20. The 2009 figures were prepared  using Canadian GAAP.  The Corporation has sufficient cash flow to pay out dividends but due to a number of non-cash items  including depreciation and amortization, deferred income tax expense and stock based compensation  expense, dividends paid can exceed earnings. Below is a table showing cash from operations from the  audited statement of cash flows compared to dividends paid in the year. The 2009 figures were prepared  using Canadian GAAP. In 2011, the gains from the reduction of interest in LifeMark allowed the  Corporation to temporarily go above 100% but the current run rate of net cash from operating activities at  December 31, 2011 is below 100%. Alaris Royalty Corp. 2011 Annual Report   63  2011  2010  2009  Net cash from operating activities  14,610  12,377  13,953  Dividends/distributions paid  17,560  12,035  9,362  Payout ratio  120%  99%  67%  2011  2010  2009  Revenue 49,274 16,659 18,071 Earnings 34,712 7,401 17,497 Basic and Diluted Income per Share/Unit  Basic - $2.04  Basic - $0.56  Basic - $1.83  Diluted - $1.97 Diluted - $0.54  Diluted - $1.83  Total Assets  246,478  227,803  164,476  Total Financial Liabilities  $9,964  $32,018  $30,792  Cash Dividends/Distributions declared per Share/Unit  Basic - $1.06  Basic - $0.96  Basic - $0.95  Diluted - $1.02 Diluted - $0.93  Diluted - $0.95 SUMMARY OF ANNUAL RESULTS 