EARNINGS UPDATE December 21, 2010 Pardeep S. Sangha, B.A. Sc., MBA IWEB GROUP INC. psangha@piﬁnancialcorp.com 604.718.7528 (V-IWB) $0.97 Sharon Wang, M.Sc. (Finance) swang@piﬁnancialcorp.com 604.664.2789 RATING: BUY TARGET: $1.25 (unchanged) (unchanged) Company Statistics Risk: SPECULATIVE Expecting Growth and Margin 52-week High / Low: 0.98 / 0.75 Shares Outstanding: 28.4 M (basic) Improvements in FY11 31.3 M (fd) Market Capitalization: 30.4 M (fd) EVENT: iWeb achieved record revenues of $29M for FY10, representing 30-Day Avg. Daily Volume: 6,299 a 26 percent increase compared to the $23M revenues for FY09. EBITDA Cash & Equivalents: 1.1 M Total Debt: 19.3 M was $7.8M or 27% of revenues, up from $5.5M (24% of revenues) in Insider Ownership: 67.4% FY09. The Company reported Net Loss of $28K or ($0.00) per share for CEO: Eric Chouinard the year compared to Net Income of 82K or $0.00 per share last year. CFO: Philip Tousignant * All numbers are in US$ except share price and market cap iWeb has plenty of excess capacity to accommodate future growth. iWeb’s overall utilization rate is currently at 45% for co-location ser- Financial Summary vices and 75% for dedicated/shared hosting. The new data center in (FYE Sept.30) FY08 FY09 FY10 FY11e LaSalle, QC (iWEB-NE), home to the new automated Smart Servers, has enough capacity to house 20,000 dedicated servers. In our mod- Revenue ($M) 15.5 23.1 29.0 36.0 els, we do not anticipate iWeb needing additional datacenter capacity Adj. EBITDA ($M) 3.8 5.5 7.8 10.1 for another 3 years. Net Income ($M) (0.7) 0.1 (0.0) 1.0 EPS (0.03) 0.00 (0.00) 0.04 IMPACT: POSITIVE. Management believes the Company can exceed P/Sales 1.9x 1.3x 1.0x 0.8x industry growth estimates of 15% per year. Management has indicated EV/Sales 2.9x 2.0x 1.6x 1.3x that the Company has a healthy pipeline of opportunities, churn has re- EV/EBITDA N.M. 8.2x 5.9x 4.5x duced and demand for hosting services remains strong. The initial sales P/E N.M. N.M. N.M. 25.7x of Smart Servers have been going very well. The Company has more Quarterly (FY11) Q1e Q2e Q3e Q4e than 700 smart servers in operation after only a couple of months. Mo- mentum is continuing in Q1 and management is expecting to ramp up Revenue ($M) $8.10 $8.63 $9.25 $9.98 its marketing efforts in the coming months. EPS $0.00 $0.00 $0.01 $0.02 900 $1.00 FORECASTS: We have slightly modiﬁed our estimates and now we are 800 200 day mvg $0.95 50 day mvg expecting iWeb’s revenues to increase 24% to $36M, with EBITDA of 700 $0.90 $10M, and Net Income of $1.0M or $0.04 per share (fd). We are also 600 $0.85 Thousands 500 expecting margins to improve in FY11 as the majority of costs associ- $0.80 400 ated with the new datacenter and development of new services are 300 $0.75 now complete. 200 $0.70 100 $0.65 VALUATION/RECOMMENDATION: We believe iWeb is currently un- - Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Sep-10 Nov-10 $0.60 dervalued as it trades at 1.3x EV/Sales multiple and 4.5x EV/EBITDA multiple of our FY11 estimates. We are maintaining our BUY recom- Corporate Information mendation on iWeb (V-IWB), and our 12-month target price of $1.25. iWeb is a provider of IT infrastructure and Internet Our $1.25 price target represents an EV/Sales ratio of 1.5x and an EV/ hosting services including dedicated servers, co- EBITDA ratio of 5.3x our FY11 estimates. We rate this investment with location and web hosting. Founded in 1996, iWeb has a SPECULATIVE risk rating. four data centers in Montreal. A Disclosure fact sheet is available on Pages 7-8 of this report. iWeb Group Inc. (V-IWB) – December 21, 2010 Quarter in Review Financial Highlights for Q4FY10 (ending September 30, 2010) Q4FY10 Q4FY09 Q4FY10 Actual Prior Year Consensus (US$) (US$) Est. (C$) Revenue ($M) 7.7 6.3 8.2 Adj. EBITDA ($M) 1.8 1.0 2.0 Net Income ($K) 56 432 64 EPS (fd $/share) 0.00 0.01 0.00 Note: iWEB changed reporting to US dollars in Q4FY10 Source: IWeb Group Inc., ThomsonOne Analytics iWeb achieved record revenues of $29M for fiscal 2010. Revenue in FY10 increased to $29M, from $23M in FY09, a 26 percent increase over 12 months. EBITDA was $7.8M or 27% of revenues, up from $5.5M (24% of revenues) in FY09. Cash ﬂow generated from operations was $5.4M for the year, similar to the $5.2M for the prior year. Gross margins for the year were 40.1% compared to 46.2% in FY09. The decrease in gross mar- gins is largely attributed to higher staff costs to support the growing services and operations. Total operating expenses (including Selling expenses and Administrative expenses) increased to $9.8M from 8.8M last year. However, as a percentage of revenue, total operating expenses decreased to 33.7% in FY10 from 38.1% in FY09. iWeb reported solid revenue growth in Q4FY10. Revenues of $7.7M for Q4FY10 represented an increase of 21% compared to $6.3M in Q4FY09, while iWeb reported Net Income of $56K or $0.00 per share for the quarter, compared to Net Income of $432K or $0.01 per share in Q4 last year. The Company’s EBITDA improved to $1.8M from $1.0M a year ago. iWeb’s results were in line with consensus estimates for revenues of C$8.2M and C$0.00 EPS. Both Dedicated hosting and Colocation revenues are growing. The Company reported dedicated hosting revenues of $6.5M during the quarter which was an increase of 21% from $5.4M last year. Dedicated hosting accounted for 85% of the Company’s revenues in the quarter. Meanwhile, Co- location revenues increased from $676K in Q4FY09 to $769K in Q4FY10. In October, the Company launched the new automated services called Smart Servers for dedicated hosting. The initial sales of Smart Servers have been going very well. The Company has more than 700 smart servers in op- eration after only a couple of months. Balance sheet could be improved. As at September 30, 2010, iWeb had cash of $1.1M, with 19.3M of debt and a net negative cash position of ($18.2M), compared to a net negative cash position of ($13.5M) a year ago. During the year, iWeb incurred $8.5M in total capital expenditures. Manage- ment anticipates that cash generated from operations and the Company’s credit facilities will be sufﬁcient to fund operations for the foreseeable future. Management indicated they are currently ﬁnalizing an additional ﬁnancial facility. 2 | UPDATE Pardeep S. Sangha, B.A. Sc., MBA | Sharon Wang, M.Sc. (Finance) iWeb Group Inc. (V-IWB) – December 21, 2010 Outlook iWeb has gone through a significant “building phase” in the past two years and is now enter- ing into a “growth phase” with sufficient datacenter capacity and the launch of new automated service offerings. We believe iWeb’s future growth will be fueled by a recovery in IT spending, ad- ditional revenue from its new datacenter in Montreal, and the introduction of new services. We be- lieve iWeb has weathered through the recession and we will begin to witness signiﬁcant revenue growth once again in the future. The overall economic environment is improving which will lead to increased IT spending beneﬁting iWeb. iWeb has plenty of excess capacity to accommodate growth. The Smart Server launch is closely tied to the construction of the Company’s new 31,000 square foot datacenter in LaSalle, QC (iWEB- NE) which was built from the ground up with automation in mind. This data center has enough ca- pacity to house 20,000 dedicated servers. In our models, we do not anticipate iWeb needing addi- tional datacenter capacity for another 3 years. iWeb’s overall utilization rate is currently at 45% for co-location services and 75% for dedicated/shared hosting. Management believes the Company can exceed industry growth estimates. Industry estimates are for the hosting market to grow at around 15% per year. Management has indicated that the Company has a healthy pipeline of opportunities, churn has reduced and demand for hosting services remains strong. Churn has decreased in Q4 to 3.2% versus 3.8% a year earlier and the Company expects this trend to continue. Momentum is continuing in Q1 and management is expecting to ramp up its marketing efforts in the coming months. iWeb will continue to primarily market the services through online advertising methods such as search engine optimization, Google Adwords, and banner ads. We are forecasting 24% revenue growth in FY11. We’ve slightly modiﬁed our estimates and now are expecting iWeb’s revenues to increase to $36M, with EBITDA of $10M, and Net Income of $1.0M or $0.04 per share (fd). We are also expecting margins to improve in FY11 as the majority of costs associated with the new datacenter and development of new services are now complete. We are expecting the Company’s gross margins to improve from 40.1% in FY10 to 43.9% in FY11; while experiencing gains in its EBITDA margins from 26.8% in FY10 to 28.0% in FY11. Estimates for FY11 FY09 FY10 FY11 PI Estimate Actual Actual Old (in CDN$) New (in US$) Revenue ($M) 23.1 29.0 35.4 36.0 Gross Margin (%) 46.2% 40.1% 43.9% 43.9% EBITDA Margin (%) 24.0% 26.8% 28.2% 28.0% EBITDA ($M) 5.5 7.8 10.0 10.1 Net income ($M) 0.1 (0.0) 1.3 1.0 EPS (fd - $/share) $0.00 ($0.00) $0.04 $0.04 Source: iWeb Group Inc., PI Financial Corp Pardeep S. Sangha, B.A. Sc., MBA | Sharon Wang, M.Sc. (Finance) UPDATE | 3 iWeb Group Inc. (V-IWB) – December 21, 2010 Future Catalysts There are several key catalysts which we believe can positively contribute to an increase in the Com- pany’s share price. These include: • Increased marketing of Smart Servers – We are expecting Smart Server sales to pickup as the Company ramps up its marketing efforts. • Profitability and margin improvement - We are expecting the Company to report improved growth, and higher margins in the coming quarters. We expect the Company to be proﬁtable in FY11. • Potential new acquisitions – We believe iWeb may acquire another smaller hosting provider in Canada or the United States in the future. • iWeb getting acquired – We believe that ultimately iWeb would be a prime target candidate for a larger hosting provider. This industry has a history of acquisitions exceeding 10x EBITDA multiples. • TSX listing – we are expecting iWeb to move from the Venture Exchange to the main TSX exchange in late 2011 or early 2012. Valuation and Recommendation iWeb is undervalued. iWeb is currently trading at an EV/Sales ratio of 1.3x our FY11 revenue esti- mate and an EV/EBITDA ratio of 4.5x our FY11 EBITDA estimate. Despite showing better revenue growth and EBITDA growth than its peer group, iWeb is valued at a discount to its hosting peer group. Hosting companies are currently trading at an EV/Sales multiple of 2.6x FY11 and EV/EBITDA multiple of 8.2x FY11. Valuation Multiples FY11 EV/Sales EV/EBITDA Peer Group 2.6x 8.2x iWeb 1.3x 4.5x Source: PI Financial Corp., Bloomberg We believe iWeb represents an attractive long-term investment opportunity for investors seek- ing a high growth, small-cap technology company. Our investment recommendation is based on the Company’s growth proﬁle, improving margins in FY11, strong demand for datacenter hosting services, and the potential to be acquired at a premium multiple. We are maintaining our BUY recommendation and 12-month target price of $1.25 for iWeb (V-IWB). We rate the investment with a SPECULATIVE risk given iWeb is a small cap technology company with share price volatility and low trading volumes. Our target price represents a 1.5x EV/Sales mul- tiple of FY11 Revenues and a 5.3x EV/EBITDA multiple of FY11 EBITDA. Our target price represents a 29% share price appreciation from the Company’s recent closing. 4 | UPDATE Pardeep S. Sangha, B.A. Sc., MBA | Sharon Wang, M.Sc. (Finance) iWeb Group Inc. (V-IWB) – December 21, 2010 Income Statement (USD 000's) FY09 FY10 FY11e Q1FY11 Q2FY11 Q3FY11 Q4FY11 (Year End Sept 30) Dec-10 Mar-11 Jun-11 Sep-11 Actual Actual Est. Est. Est. Est. Est. Revenue 23,070.0 28,976.5 35,954.5 8,100.5 8,627.0 9,248.2 9,978.8 COS Network Delivery 9,623.6 13,324.2 14,949.9 3,426.1 3,632.4 3,810.8 4,080.6 Amortization 2,790.7 4,032.3 5,204.1 1,207.4 1,267.8 1,331.2 1,397.7 Gross Profit 10,655.8 11,620.0 15,800.5 3,467.0 3,726.9 4,106.2 4,500.4 Operating Expenses Selling Expenses 3,806.0 4,512.4 5,448.2 1,292.5 1,348.1 1,387.2 1,420.5 Administrative expenses 4,976.6 5,250.8 6,132.4 1,507.3 1,513.3 1,545.1 1,566.7 Total Operating Expenses 8,782.6 9,763.3 11,580.6 2,799.8 2,861.4 2,932.2 2,987.2 Income (Loss) from Operations 1,873.2 1,856.7 4,220.0 667.2 865.5 1,173.9 1,513.3 Financial expenses 2,164.7 2,740.2 2,876.4 648.0 690.2 739.9 798.3 Earnings (loss) before income taxes 321.8 29.9 1,343.6 19.2 175.3 434.1 715.0 Net Income (loss) for the period 82.0 (27.8) 1,048.0 15.0 136.8 338.6 557.7 EPS EPS basic 0.00 (0.00) 0.04 0.00 0.00 0.01 0.02 EPS diluted 0.00 (0.00) 0.04 0.00 0.00 0.01 0.02 Adjusted EBITDA 5,547 7,764 10,077 2,036 2,296 2,674 3,071 As Percentage of Revenue Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% COS - Network Delivery 41.7% 46.0% 41.6% 42.3% 42.1% 41.2% 40.9% Gross Margin 46.2% 40.1% 43.9% 42.8% 43.2% 44.4% 45.1% Operating Expenses Selling Expenses 16.5% 15.6% 15.2% 16.0% 15.6% 15.0% 14.2% Administrative expenses 21.6% 18.1% 17.1% 18.6% 17.5% 16.7% 15.7% Total Operating Expenses 38.1% 33.7% 32.2% 34.6% 33.2% 31.7% 29.9% Income (Loss) from Operations 8.1% 6.4% 11.7% 8.2% 10.0% 12.7% 15.2% Other Income (Expenses) -2.7% -3.2% 0.0% 0.0% 0.0% 0.0% 0.0% Earnings (loss) before income taxes 1.4% 0.1% 3.7% 0.2% 2.0% 4.7% 7.2% Income taxes 1.0% 0.2% 0.8% 0.1% 0.4% 1.0% 1.6% Net Income (loss) for the period 0.4% -0.1% 2.9% 0.2% 1.6% 3.7% 5.6% Adjusted EBITDA margin 24.0% 26.8% 28.0% 25.1% 26.6% 28.9% 30.8% Year over Year Growth Revenue 49.1% 25.6% 24.1% 18.0% 20.9% 26.8% 29.8% Network Delivery 62.8% 38.5% 12.2% 7.7% 15.8% 12.1% 13.2% Gross Profit 38.7% 9.0% 36.0% 26.1% 23.5% 40.5% 46.1% Selling Expenses 39.1% 18.6% 20.7% 20.2% 22.3% 23.3% 17.4% Administrative expenses 32.4% 5.5% 16.8% 40.0% 25.4% 22.2% -8.0% Total Operating Expenses 32.9% 11.2% 18.6% 27.7% 21.7% 20.0% 2.5% Income (Loss) from Operations 74.1% -0.9% 127.3% 19.7% 30.1% 144.8% 803.7% Earnings (loss) before income taxes NMF -90.7% 4389.9% -92.2% -66.1% NMF NMF Net Income (loss) for the period NMF -133.9% NMF -91.2% -63.4% NMF 897.0% Adjusted EBITDA 45.3% 40.0% 29.8% 4.6% 13.7% 34.5% 69.8% Sequential Quarterly Growth Revenue 6.5% 7.2% 7.9% Network Delivery 6.0% 4.9% 7.1% Gross Profit 7.5% 10.2% 9.6% Selling Expenses 4.3% 2.9% 2.4% Administrative expenses 0.4% 2.1% 1.4% Total Operating Expenses 2.2% 2.5% 1.9% Income (Loss) from Operations 29.7% 35.6% 28.9% Earnings (loss) before income taxes 812.9% 147.6% 64.7% Net Income (loss) for the period 812.9% 147.6% 64.7% Adjusted EBITDA 12.8% 16.5% 14.8% Pardeep S. Sangha, B.A. Sc., MBA | Sharon Wang, M.Sc. (Finance) UPDATE | 5 iWeb Group Inc. (V-IWB) – December 21, 2010 Balance Sheet (USD 000's) FY09 FY10 Actual Actual ASSETS Current Assets Cash and cash equivalents 1,023.0 1,081.2 Trade and other receivables 1,664.8 2,653.6 Foreign exchange contracts 148.5 95.3 Investment / Term Deposits 1,000.0 - Other prepaid expenses 276.5 331.9 4,112.8 4,640.5 Tangible assets 27,363.0 33,196.0 Intangible assets 1,703.8 2,046.4 Future income taxes 91.4 36.8 Total Assets 33,271.0 40,278.8 Liabilities Current Liabilities Trade and other accounts payable 3,282.0 5,695.4 Deferred revenues 4,255.6 4,467.4 Instalments on long-term debt 1,733.6 2,533.7 9,271.2 12,696.5 Deferred revenues 978.6 1,174.0 Other accounts payable 601.9 856.7 Long-term debt 14,315.4 16,770.5 Derivative embedded in subordinated debt 841.4 1,505.5 Future income taxes 622.1 551.3 Total Liabilities 26,630.7 33,554.5 Shareholder's Equity Share capital 5,178.9 5,075.8 Contributed Surplus 943.8 1,173.0 Retained earnings 517.5 324.4 Total Shareholder's Equity 6,640.3 6,724.4 Liabilities + Shareholder's Equity 33,271.0 40,278.8 Valuation Metrics FY09 FY10 FY11e Current Price $ 0.97 Current Market Cap - F.D. US$ (000's) 29,810 Current Enterprise Value - US$ (000's) 45,500 P/Sales 1.3 1.0 0.8 EV/Sales 2.0 1.6 1.3 EV / EBITDA (adj.) 8.2 5.9 4.5 P/E (fd) N.M. N.M. 25.6 Target Price (CDN$) $ 1.25 Target Market Cap - F.D. US$ (000's) 37,224 Target Enterprise Value - US$ (000's) 52,914 P/Sales 1.6 1.3 1.0 EV/Sales 2.3 1.8 1.5 EV / EBITDA (adj.) 9.5 6.8 5.3 P/E (fd) N.M. N.M. 32.0 Target Price Premium 29% 6 | UPDATE Pardeep S. Sangha, B.A. Sc., MBA | Sharon Wang, M.Sc. (Finance) iWeb Group Inc. (V-IWB) – December 21, 2010 Disclosure Fact Sheet Ratings Price Volatility / Risk BUY : recommendation: stock is expected to appreciate from its current SPECULATIVE : The Company has no established operating revenue, and/or price level at least 10-20% in the next 12 months. balance sheet or cash ﬂow concerns exist. Typically low public ﬂoat or lack NEUTRAL : recommendation: stock is expected to trade in a narrow range of liquidity exists. Rated for risk tolerant investors only. from its current price level in the next 12 months. ABOVE AVERAGE : Revenue and earnings predictability may not be estab- SELL : recommendation: stock is expected to decline from its current price lished. Balance sheet or cash ﬂow concerns may exist. Stock may exhibit level at least 10-20% in the next 12 months. low liquidity. U/R : Under Review AVERAGE : Average revenue and earnings predictability has been estab- N/R : No Rating lished; no signiﬁcant cash ﬂow/balance sheet concerns are foreseeable Analyst recommendations and targets are based on the stock’s expected over the next 12 months. Reasonable liquidity exists. Price Volatility/Risk return over a 12-month period or may be based on the company achiev- analysis while broad based includes the risks associated with a company’s ing speciﬁc fundamental results. Under certain circumstances, and at the balance sheet, variability of revenue or earnings, industry or sector risks, discretion of the analyst, a recommendation may be applied for a shorter and liquidity risk. time period. The basis for the variability in the expected percentage change for a recommendation, relates to the differences in the risk ratings applied to individual stocks. For instance stocks that are rated Speculative must be expected to appreciate at the high end of the range of 10-20% over a 12-month period. Analyst Certiﬁcation I, Pardeep S. Sangha, hereby certify that all of the views expressed in this report accurately reﬂect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly related to the speciﬁc recommendations or views expressed in this report. I am the research analyst primarily responsible for preparing this report. Research Disclosures Applicability 1) PI Financial Corp. and its afﬁliates’ holdings in the subject company’s securities, in aggregate exceeds 1% of each company’s issued and outstanding securities. 1) No 2) The analyst(s) responsible for the report or recommendation on the subject company, a member of the research analyst’s household, and associate of the research analyst, or any individual directly involved in the preparation of this report, have a ﬁnancial interest in, or exercises investment discretion or control over, securities issued by the following companies. 2) No 3) PI Financial Corp. and/or its afﬁliates have received compensation for investment banking services for the subject company over the preceding 12-month period. 3) No 4) PI Financial Corp. and/or its afﬁliates expect to receive or intend to seek compensation for investment banking services from all companies under research coverage within the next 3 months. 4) No 5) PI Financial Corp. and/or its afﬁliates have managed or co-managed a public offering of securities for the subject company in the past 12 months. 5) No 6) The following director(s), ofﬁcer(s) or employee(s) of PI Financial Corp. is a director of the subject company in which PI provides research coverage. 6) No 7) A member of the research analyst’s household serves as an ofﬁcer, director or advisory board member of the subject company. 7) No 8) PI Financial Corp. and/or its afﬁliates makes a market in the securities of the subject company. 8) No 9) Company has partially funded previous analyst visits to its projects. 9) No 10) Additional disclosure: 10) No General Disclosure The afﬁliates of PI Financial Corp. are PI Financial (US) Corp., PI Financial Services Corp., and PI Capital Corp. Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is amongst other factors determined by rev- enues generated directly or indirectly from various departments including Investment Banking. Evaluation is largely on an activity-based system that includes some of the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and investment guidance, client feedback. Analysts are not directly compensated for speciﬁc Investment Banking transactions. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of PI Financial Corp. PI Financial Corp.’s policies and procedures regarding dissemination of research, and stock rating and target changes can be reviewed on our corporate website at www.piﬁnancialcorp.com (Research: Research and Conﬂict Disclosure) Pardeep S. Sangha, B.A. Sc., MBA | Sharon Wang, M.Sc. (Finance) UPDATE | 7 iWeb Group Inc. (V-IWB) – December 21, 2010 The attached summarizes PI’s analysts review of the material operations of the attached company(s). Analyst Company Type of Review Operations / Project Date Pardeep S. Sangha iWeb Group Inc. Management Meetings Montreal QC 07/10 Disclosure to US Residents PI Financial (US) Corp. is a U.S. registered broker-dealer and subsidiary of PI Financial Corp. PI Financial (US) Corp. accepts responsibility for the contents of this research report, subject to the terms and limitations as set out above. U.S. residents seeking to effect a transaction in any security discussed herein should contact PI Financial (US) Corp. directly. Recommendations Number of Recommendations Percentage BUY 36 92.11% NEUTRAL 2 5.13% SELL 1 2.56% U/R 0 0.00% N/R 0 0.00% TOTAL 39 Stock Rating and Target Changes For reports that cover more than six subject companies, the reader is referred to our corporate web site for information regarding stock ratings and target changes. www.piﬁnancialcorp.com (Research: Research and Conﬂict Disclosure) iWeb Group (Initiated Coverage Aug 30/10) $1.40 Date Rating Change Target Change Share Price $1.20 Aug 30/10 Buy $1.25 $0.80 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 Se 8 Se 9 Se 0 8 9 0 M 7 De 8 M 8 De 9 M 9 De 0 10 -0 -0 -1 0 0 1 0 0 1 0 0 0 n- n- n- c- p- c- p- c- p- c- ar ar ar Ju Ju Ju De 8 | UPDATE Pardeep S. Sangha, B.A. Sc., MBA | Sharon Wang, M.Sc. (Finance) Capital Markets Group Bert Quattrociocchi, BA, CFA Executive Vice President, Head of Capital Markets 604.664.2925 Research Analysts Institutional Sales Investment Banking Consumer Products & Special Situations Head of Institutional Sales Vancouver Sheila Broughton, MBA, CFA Jim Danis, B.Sc. (Hons.) Blake Corbet, BA 604.664.2695 604.718.7551 604.664.2967 Jim Mustard, B.A.Sc., P Eng . Oil & Gas Priya Patil, B.Sc., LL.B. 604.664.3655 Alistair Toward, B.Comm, CFA 416.883.9044 403.543.2824 Carol Ellis, MBA, P.Geo Denton Creighton, BA, MBA 604.664.3606 Energy Services 416.883.9043 Leo Wilson, CA Roy Ma, B.Comm, CFA David Goguen, CFA 604.718.7510 403.543.2823 604.664.2963 Jeremiah Katz Toronto Special Situations 604.664.2816 Dean McPherson, B.Sc, MBA Jason Zandberg, B.B.A, CFA 647.789.2405 604.718.7541 Ian Mellon, BA 416.883.9045 Bill Murray, B.Sc., MBA, CFA Technology 416.883.9049 Pardeep S. Sangha, B.A.Sc., MBA Doug Melton, FCSI 604.718.7528 604.718.7532 Calgary Tim O’Neill Arthur Kwan, MBA, CFA Transportation & Industrial Products 604.718.7514 403.543.2918 Chris Murray, P.Eng, MBA 416.883.9047 Assistant Institutional Trading Kinga Gadomska Research Associates 604.664.3604 Melanie Grant, B.Sc. Victoria Chan, CFA 604.718.7535 or 888.525.8811 604.718.7534 Donna McGuigan Chris LeGrow, B.Comm 416.883.9042 or 888.525.8811 403.543.2822 Darren Ricci David Seymour, M.Sc., MBA 604.664.2998 or 800.667.6124 (US) or 403.543.2828 877.682.7233 (CDN) Sharon Wang, M.Sc. (Finance) Joe Tibble 604.664.2789 604.718.7525 or 888.525.8811 Adam Dell, B.Comm Marketing and Publishing 604.718.7517 or 888.525.8811 Michelle Kwok 604.664.2724 Tanya Rosenbrock 604.664.2707 PI Financial Corp. www.piﬁnancialcorp.com Head Ofﬁce Toronto Ofﬁce Calgary Ofﬁce Victoria Ofﬁce Suite 1900, 666 Burrard Street Suite 3401, 40 King Street West Suite 1560, 300 5th Avenue SW Suite 620, 880 Douglas Street Vancouver, BC, Canada V6C 3N1 Toronto, ON, Canada M5H 3Y2 Calgary, AB, Canada T2P 3C4 Victoria, BC, Canada V8W 2B7 ph: 604.664.2900 ph: 416.883.9040 ph: 403.543.2900 ph: 250.405.2900 fx: 604.664.2666 fx: 647.789.2401 fx: 403.543.2800 fx: 250.405.2911 Members:AllmajorCanadianStockExchanges,InvestmentIndustryRegulatoryOrganizationofCanada,CanadianInvestorProtectionFundandInternationalFinancialCentre(BritishColumbia). Estimates and projections contained herein are our own and are based on assumptions which we believe to be reasonable. 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