CALGARY, ALBERTA--(Marketwire - June 1, 2011) - Alaris Royalty Corp. ("Alaris" or the "Corporation") (TSX:AD) today announced its results for the three months ended March 31, 2011. The results are the Corporation's first prepared under International Financial Reporting Standards ("IFRS").

Total dividends paid for the three months ended March 31, 2011 equaled $0.255 per share ($4,267,452 in aggregate).

Revenues for the three months ended March 31, 2011 were as expected at $5.6 million compared to $4.2 million in the prior year period. The increase of 34% was due to the addition of two new private company partners, KMH Limited Partnership ("KMH") in May 2010 and Solowave Design Limited Partnership ("Solowave") in December 2010. KMH added $0.22 million and Solowave added $1.25 million of revenue in the quarter.

For the three months ended March 31, 2011, the Corporation recorded net income of $2.8 million and EBITDA of $4.5 million compared to net income of $1.9 million and EBITDA of $3.2 million in the prior year period. The increase in net income and EBITDA from the previous quarter is as a result of receiving a full quarter of revenues from KMH and Solowave with expenses of the Corporation remaining consistent quarter over quarter.

Reconciliation of Net Income to EBITDA (thousands)		3 months ending March 31, 2011		3 months ending March 31, 2010
Net Income		$2,833		$1,899
Adjustments to Net Income:
	Amortization	47		47
	Interest	419		484
	Deferred income tax expense	1,209		782
EBITDA		$4,508		$3,212

"We're pleased to provide our first quarter of financial statements under IFRS. While there were a number of changes to the balance sheet (including estimates of the fair value of preferred partnership units held by the Corporation and differences in calculating deferred income tax balances), the simplicity of our quarterly operating results means our financial statements continue to be simple ones to follow and understand." said Darren Driscoll, CFO, Alaris Royalty Corp. "We continue to see positive results out of each of our partner companies in 2011 and look for continued overall organic growth to add to our strategy of adding new Partners".

Outlook

Alaris' agreements with the its partner companies ("Private Company Partners" or "Partners") provide for payments estimated to provide the Corporation approximately $19.0 million in 2011 without any assumptions around the reinvestment of the proceeds from the recently announced transaction (the "Transaction") involving LifeMark Health Limited Partnership ("LifeMark") that reduced Alaris' interest in LifeMark at a significant gain. Management expects to reinvest all of the proceeds from the Transaction in 2011 and will provide updated revenue figures as new partnerships are entered into. In the next quarter, current Partner agreements call for approximately $5.2 million of revenues for Alaris. The Corporation's general and administrative expenses are estimated to be $625,000 per quarter, including all public company costs. Alaris' senior debt facility is drawn to $26.2 million and the interest rate on that debt was 6.5% at March 31, 2011.

The Condensed Consolidated Statement of Financial Position, Statement of Comprehensive Income, and Statement of Cash Flows are attached to this news release. Alaris' financial statements and MD&A are available on SEDAR at www.sedar.com and on our website at www.alarisroyalty.com.

About the Corporation:

Alaris provides alternative financing to the Private Company Partners in exchange for royalties or distributions with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Royalties or distributions from the Private Company Partners are structured as a percentage of a "top line" financial performance measure such as gross margin and same-store sales and rank in priority to the owners' common equity position.

Non-IFRS Measure

The term EBITDA is a financial measure used in this news release that is not a standard measure under IFRS. The Corporation's method of calculating EBITDA may differ from the methods used by other issuers. Therefore, the Corporation's EBITDA may not be comparable to similar measures presented by other issuers.

EBITDA refers to net earnings (loss) determined in accordance with IFRS, before depreciation and amortization, net of gain or loss on disposal of capital assets, interest expense and income tax expense. EBITDA is used by management and many investors to determine the ability of an issuer to generate cash from operations. Management believes EBITDA is a useful supplemental measure from which to determine the Corporation's ability to generate cash available for debt service, working capital, capital expenditures, income taxes and dividends. The Corporation has provided a reconciliation of net income to EBITDA in this news release.

The term EBITDA should only be used in conjunction with the Corporation's annual audited and quarterly reviewed financial statements, excerpts of which are available below, while complete versions are available on SEDAR at www.sedar.com.

Forward-Looking Statements

This news release contains forward-looking statements under applicable securities laws. Statements other than statements of historical fact contained in this news release are forward-looking statements, including, without limitation, management's expectations, intentions and beliefs concerning the growth, results of operations, performance and business prospects and opportunities of the Corporation and the Private Company Partners, the general economy, the future financial position or results of the Corporation, business strategy, and plans and objectives of or involving the Corporation or the Private Company Partners. Many of these statements can be identified by looking for words such as "believe", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words or the negative thereof. In particular, this news release contains forward-looking statements regarding the anticipated financial and operating performance of the Private Company Partners in 2011, the revenues to be received by Alaris and its general and administrative expenses in its upcoming fiscal quarters, and management's expectations and intentions concerning the use of the proceeds from the Transaction.

By their nature, forward-looking statements require Alaris to make assumptions and are subject to inherent risks and uncertainties. Assumptions about the performance of the Canadian and U.S. economies in 2011and how that will affect Alaris' business and that of its Private Company Partners are material factors considered by Alaris management when setting the outlook for Alaris. Key assumptions include, but are not limited to, assumptions that the Canadian and U.S. economies will grow moderately in 2011, that interest rates will remain low, that the Private Company Partners will continue to make distributions to Alaris as and when required, that the businesses of the Private Company Partners will continue to grow, that Alaris will experience positive resets to its annual distributions from its Private Company Partners in 2011, that the Transaction will close , and that Alaris will have the ability to raise required equity and/or debt financing on acceptable terms. Management of Alaris has also assumed that capital markets will continue to improve and that the Canadian dollar will strengthen modestly relative to the U.S. dollar. In determining expectations for economic growth, management of Alaris primarily considered historical economic data provided by the Canadian and U.S. governments and their agencies.

There can be no assurance that the assumptions, plans, intentions or expectations upon which these forward-looking statements are based will occur. Forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. The actual results of the Corporation and the Private Company Partners could materially differ from those anticipated in the forward-looking statements contained herein as a result of certain risk factors, including, but not limited to, the following: the dependence of Alaris on the Private Company Partners; reliance on key personnel; general economic conditions; failure to complete or realize the anticipated benefit of Alaris' financing arrangements with the Private Company Partners; government regulations; and risks relating to the Private Company Partners and their businesses. Additional risks that may cause actual results to vary from those indicated are discussed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2010, which is filed under the Corporation's profile at www.sedar.com. Accordingly, readers are cautioned not to place undue reliance on any forward-looking information contained in this news release. Statements containing forward-looking information reflect management's current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Alaris Royalty Corp.

Condensed consolidated statement of financial position (unaudited)

			March 31			December 31			January 1
	Note		2011			2010			2010
Assets
Cash and cash equivalents			$	2,158,026		$	1,816,868		$	3,826,000
Prepayments				177,541			343,184			103,472
Trade and other receivables				182,835			688,514			2,470
Current Assets				2,518,402			2,848,566			3,931,942
Equipment	7			69,958			69,671			74,477
Intangible assets	5			12,853,607			12,896,916			13,070,150
Preferred LP Units	5			184,710,000			182,907,000			122,286,000
Investment tax credit receivable	6			10,922,393			10,922,393			11,030,007
Deferred income taxes	6			16,824,472			18,158,192			22,454,167
Non-current assets				225,380,430			224,954,172			168,914,801
Total Assets			$	227,898,832		$	227,802,738		$	172,846,743
Liabilities
Trade payables			$	306,618			1,421,992			939,085
Dividends payable				1,437,092			1,396,262			802,604
Loans and borrowings	9			2,183,333			-			9,350,000
Current Liabilities				3,927,043			2,818,254			11,091,689
Loans and borrowings	9			24,016,667			29,200,000			19,700,000
Non-current liabilities				24,016,667			29,200,000			19,700,000
Total Liabilities				27,943,710			32,018,254			30,791,689
Equity
Share capital	8		$	161,371,801			157,402,328		$	111,663,148
Warrants	8			54,521			405,306			845,000
Contributed Surplus				3,650,847			3,174,831			1,869,901
Accumulated other comprehensive income				23,869,635			22,350,157			9,766,188
Retained Earnings				11,008,318			12,451,862			17,910,817
Total Equity			$	199,955,122		$	195,784,484		$	142,055,054
Total Liabilities and Equity			$	227,898,832		$	227,802,738		$	172,846,743

Alaris Royalty Corp.

Condensed consolidated statement of comprehensive income (unaudited)

For the three months ended March 31

	Note		2011			2010
Revenues
Royalties and distributions	5		$	5,635,319		$	4,192,862
Interest and other				-			1,160
Total Revenue				5,635,319			4,194,022
Salaries and benefits				223,337			218,212
Corporate and office				277,140			211,069
Legal and accounting fees				113,049			103,739
Non-cash stock-based compensation	10			513,065			449,148
Depreciation and amortization				47,171			47,130
Subtotal				1,173,762			1,029,298
Earnings from operations				4,461,557			3,164,724
Finance cost				419,400			483,651
Earnings before taxes				4,042,157			2,681,073
Deferred income tax expense	6			1,116,653			782,407
Earnings			$	2,925,504		$	1,898,666
Other comprehensive income
Net change in fair value of available-for-sale financial assets	5			1,736,546			-
Tax impact of change in fair value				(217,068	)		-
Other comprehensive income for the period, net of income tax				1,519,478			-
Total comprehensive income for the period			$	4,444,982		$	1,898,666
Earnings per share
Basic earnings per share			$	0.17		$	0.16
Fully diluted earnings per share			$	0.17		$	0.16
Weighted average shares outstanding
Basic				16,814,002			11,581,030
Fully Diluted				17,319,932			12,133,003

Alaris Royalty Corp.

Condensed consolidated statement of cash flows (unaudited)

For the three months ended March 31

	Note		2011			2010
Cash flows from operating activities
Earnings from the period			$	2,925,504		$	1,898,666
Adjustments for:
Finance costs				419,400			483,651
Deferred income taxes	6			1,116,653			782,407
Depreciation and amortization	7			47,171			47,130
Non-cash stock based compensation	10			513,065			449,148
				5,021,793			3,661,002
Change in:
-trade and other receivables				505,679			(155,714	)
-prepayments				165,643			(34,537	)
-trade and other payables				(1,114,034	)		(591,673	)
Cash generated from operating activities				4,579,081			2,879,078
Interest paid				(419,400	)		(483,651	)
Net cash from operating activities			$	4,159,681		$	2,395,427
Cash flows from investing activities
Acquisition of equipment				(4,150	)		-
Acquisition of Preferred LP Units				(66,455	)		(50,000	)
Net cash used in investing activities			$	(70,605	)	$	(50,000	)
Cash flows from financing activities
Proceeds from exercise of warrants	8			3,580,500			2,216,625
Repayment of Senior debt	9			(3,000,000	)		(950,000	)
Dividends paid	5			(4,267,452	)		(2,421,042	)
Payments in lieu of dividends on RSUs	10			(60,966	)		(50,213	)
Net cash used in financing activities			$	(3,747,918	)	$	(1,204,630	)
Net increase in cash and cash equivalents				341,158			1,140,797
Cash and cash equivalents, Beginning of period				1,816,868			3,826,000
Cash and cash equivalents, End of period			$	2,158,026		$	4,966,797

FOR FURTHER INFORMATION PLEASE CONTACT:

Curtis Krawetz
Alaris Royalty Corp.
Manager, Investor Relations
403.221.7305
www.alarisroyalty.com