Green Building Semimonthly - PACEworx News · PDF fileGreen Building Semimonthly Green Building Semimonthly ... He provided the example of the Toyota Prius, ... N/A $0.32 12.4x $0.52

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The recommendations and opinions expressed in this Investment Research accurately reflect the InvestmentThe recommendations and opinions expressed in this Investment Research accurately reflect the InvestmentThe recommendations and opinions expressed in this Investment Research accurately reflect the InvestmentThe recommendations and opinions expressed in this Investment Research accurately reflect the Investment Analyst’s personal, Analyst’s personal, Analyst’s personal, Analyst’s personal, independent and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important independent and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important independent and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important independent and objective views about any and all the Designated Investments and Relevant Issuers discussed herein. For important information, please see the Important Disclosures section in the appendix of this document or visit Canacinformation, please see the Important Disclosures section in the appendix of this document or visit Canacinformation, please see the Important Disclosures section in the appendix of this document or visit Canacinformation, please see the Important Disclosures section in the appendix of this document or visit Canaccord Genuity’s cord Genuity’s cord Genuity’s cord Genuity’s Online Disclosure Online Disclosure Online Disclosure Online Disclosure DatabaseDatabaseDatabaseDatabase.... 4444 OOOOccccttttoooobbbbeeeerrrr 2222000011110000

Eric ProutyEric ProutyEric ProutyEric Prouty

1.617.371.3729 [email protected]

Eric Glover, CFAEric Glover, CFAEric Glover, CFAEric Glover, CFA

1.415.229.0669 [email protected]

Inside Green Building Blocks 2 Sustainability coverage table 3 Green Building Buzz 4 Upcoming “virtual roundtable” conf. call with Johnson Controls 5 Join us at Greenbuild 2010 6 Recent Research: BEZ, ICFI 7 Under Construction… 11

Sustainability

Green Building SemimonthlyGreen Building SemimonthlyGreen Building SemimonthlyGreen Building Semimonthly September surprise

The surprise of the past month wasn’t in the economic data, which we can charitably characterize as lukewarm this far into the recovery. Instead, the surprise was the stock market’s robust advance in what historically has been a troublesome month for stocks. As a matter of fact, the Dow (+7.7% in September) and S&P 500 (+8.8%) each recorded its best September performance in the past 71 years. Although the month of October has a bad reputation, the Dow has actually gained ground 57% of the time over the past 113 years. This week’s economic reports include factory orders (Monday) and September’s unemployment (Friday).

Over the past two weeks, our Green Building Index gained 5.3% compared with a 1.8% increase in the S&P 500 Index. Since the start of the year, our Green Building Index is up 5.3% vs. +2.8% for the S&P 500 Index and +4.5% for the NASDAQ Comp. Index.

Figure 1: Canaccord Genuity Green Building Index

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Canaccord Genuity Green Building Index NASDAQ Composite Index S&P 500 Index

Past 2 weeks Past 2 weeks

Top 5 Leaders % change Top 5 Laggards % change

Real Goods Solar, Inc. 42.5% Akeena Solar, Inc. -13.4%

Steelcase Inc. 24.9% Ameresco, Inc. -12.9%

Comverge, Inc. 21.2% Ecology & Environment, Inc. -5.4%

Capstone Turbine Corp. 17.9% Lime Energy Co. -4.4%

SunPower Corporation 16.9% Eaga Plc -2.8%

Source: Capital IQ, Canaccord Genuity. Past performance does not predict future results.

http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx

http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx

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4 October 2010 The Green Scene

GREEN BUILDING BLOCKS

Recently we had the pleasure of hosting a “virtual roundtable” conference call with Mr. Scott Lewis, founder and CEO of Brightworks Sustainability Advisors. Brightworks is a Portland-based sustainability advisory firm with offices in Portland, Seattle, San Francisco, and Los Angeles. (Please note that a transcript of the call as well as the accompanying slide presentation are available upon request. If you’d like these materials, please email us.) Below we provide some highlights from the call, which was entitled: “The business case and beyond: How deep integration of Sustainability thinking creates lasting value.”

• Sustainability 101, or “What does Sustainability mean?”Sustainability 101, or “What does Sustainability mean?”Sustainability 101, or “What does Sustainability mean?”Sustainability 101, or “What does Sustainability mean?” Sustainability is a word used commonly nowadays and has different meanings to different people. According to the United Nations, “Sustainable Development is development which meets the needs of the present without compromising the ability of future generations to meet their own needs.” This definition is perhaps the most popular as it has been adopted by more than 120 countries. Mr. Lewis also highlighted another definition known as The Natural Step (TNS), which defines scientific conditions that are requisite for sustainability. Active in 11 countries and adopted by organizations both large and small, TNS basically says that in a sustainable society people are not subject to conditions that systematically undermine their capacity to meet their needs.

• “Sustainable” is not equal to “green.”“Sustainable” is not equal to “green.”“Sustainable” is not equal to “green.”“Sustainable” is not equal to “green.” Distinguishing between “sustainable” and “green” is important, according to Mr. Lewis, because what’s green is not necessarily sustainable. He provided the example of the Toyota Prius, which is a highly fuel efficient car but still adds carbon to the atmosphere (not to mention the use of resources that went into its production). So a Prius that gets 60 mpg is “green” but a car that produces zero emissions would more appropriately be considered sustainable. Similarly, buildings that are more efficient than code are “green,” but buildings using 100% renewable power are considered sustainable. Mr. Lewis noted that at this point, true sustainability remains an “aspirational goal” given the current state of regulation, market pricing, and technologies.

What is the business case for sustainability?What is the business case for sustainability?What is the business case for sustainability?What is the business case for sustainability? Brightworks views the business case for sustainability as falling into six categories: 1) cost savings; 2) risk mitigation; 3) driving innovation; 4) market access or market opporunity; 5) asset value improvement; and 6) brand enhancement. Brightworks believes that all six of these values apply to almost any enterprise, but “what changes significantly is which of the different values have the most weight and their relative proportions to each other.” For example, cost savings may be the biggest driver of value for a manufacturing company, but brand enhancement may the most important value driver for a retail vendor. Mr. Lewis provided specific examples for each of the six categories, underscoring his point that there is a compelling economic value proposition for businesses and organizations to adopt more sustainable business models.

• Going beyond the business case for sustainabilityGoing beyond the business case for sustainabilityGoing beyond the business case for sustainabilityGoing beyond the business case for sustainability. Mr. Lewis noted that the value proposition for sustainability doesn’t end with the business case; there is an ethical case as well. Because “we know that our economic activity has negative impacts on the planet,” we have an ethical obligation to try and make a positive difference, Mr.

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Lewis said. For many people/organizations, sustainability initiatives start with the ethical case – but they also want to make sure it won’t create negative value for their business. Thus, the total sustainability value proposition actually combines the business case and the ethical case.

• How should a company begin to approach sustainability from a strategic How should a company begin to approach sustainability from a strategic How should a company begin to approach sustainability from a strategic How should a company begin to approach sustainability from a strategic perspective? (Short answer: hirperspective? (Short answer: hirperspective? (Short answer: hirperspective? (Short answer: hire Brightworks.) e Brightworks.) e Brightworks.) e Brightworks.) Mr. Lewis said that the right way to start is to approach sustainability systematically. That means starting with “awareness” (what is sustainability, why is it important, etc.) and then moving on to identifying which possible actions will have the biggest impact in terms of ROI or brand enhancement. Because an organization can’t do everything at once, it makes sense to identify targets and set broad long-term goals. For example, a company may decide to become fully sustainable or become a leader in sustainability within its industry. Once the long-term objective is in place, Mr. Lewis recommended that a program be developed that is systematic in terms of milestones/achievements and is prioritized. That’s how an organization can start from square one and get on the path toward sustainability.

Please see the table below for our current recommendations and estimates on all our companies under coverage.

Figure 2: Coverage overview

October 1, 2010

($ in millions, except per share data) Ticker Price Target Price Mkt Cap Rating CY09 CY10E CY11E CY09 EV/EBITDA CY10E EV/EBITDA CY11E EV/EBITDA CY09 P/E CY10E P/E CY11E P/E Net Cash/(Debt) T BookRecycling and Enviro Solutions

Astec Industries, Inc. ASTE $28.48 $30 $648 HOLD $738 $768 $850 46 12.4x 71 8.0x 85 6.7x $0.73 39.0x $1.48 19.2x $1.85 15.4x $3.60 $20.10

Casella Waste Systems Inc. CWST $4.39 $6 $113 BUY $513 $536 $557 121 5.5x 126 5.3x 135 4.9x ($3.02) N/A ($0.59) N/A ($0.38) N/A ($21.39) ($3.09)

GrafTech International Ltd. GTI $15.99 $20 $1,936 BUY $659 $950 $1,060 131 14.3x 205 9.1x 277 6.8x $0.10 N/A $1.05 15.2x $1.46 11.0x $0.51 $4.99

Harsco Corporation HSC $24.50 $30 $1,977 BUY $2,991 $2,974 $3,075 530 5.1x 468 5.8x 486 5.6x $1.47 16.7x $0.76 32.2x $1.00 24.5x ($9.30) $7.68

Horsehead Holding Corp. ZINC $9.81 $14 $429 BUY $217 $331 $377 (27) N/A 38 8.4x 64 4.9x ($0.73) N/A $0.26 37.7x $0.60 16.4x $2.60 $7.81

Kadant Inc. KAI $19.66 $25 $246 BUY $226 $258 $290 8 26.5x 28 7.9x 33 6.7x ($0.24) N/A $1.23 16.0x $1.50 13.1x $1.94 $8.03

LKQ Corp. LKQX $20.77 $21 $3,022 HOLD $2,061 $2,383 $2,515 267 12.8x 337 10.2x 376 9.1x $0.85 24.4x $1.14 18.2x $1.28 16.2x ($2.77) $1.88

Metalico Inc. MEA $3.98 $8 $185 BUY $292 $548 $551 26 11.8x 49 6.2x 61 5.0x ($0.08) N/A $0.32 12.4x $0.52 7.7x ($2.62) $1.09

Schnitzer Steel Industries Inc. SCHN $48.17 $67 $1,356 BUY $1,769 $2,444 $2,678 67 21.6x 202 7.1x 301 4.8x $0.36 N/A $3.63 13.3x $5.04 9.6x ($2.82) $20.37

Sims Metal Management * ASX:SGM $17.27 A$20 A$3,540 BUY A$6,455 A$7,988 A$8,605 A143 24.7x A446 564.0x A565 6.2x A$(0.18) N/A A$0.92 18.8x A$1.33 13.0x A$0.07 A$9.42

US Ecology, Inc. ECOL $16.05 $16 $292 HOLD $133 $86 $100 32 8.0x 25 10.2x 32 8.1x $0.77 20.8x $0.57 28.2x $0.75 21.4x $1.80 $5.04

Green Building

Ameresco, Inc. AMRC $12.27 $16 $528 BUY $429 $582 $660 N/A N/A 51 13.1x 59 11.3x N/A N/A $0.63 19.5x $0.68 18.0x ($3.23) $2.20

Apogee Enterprises, Inc. APOG $9.20 $10 $254 HOLD $750 $584 $645 93 2.2x 11 19.3x 25 8.1x $1.52 6.1x ($0.44) N/A ($0.15) N/A $1.78 $12.21

Baldor Electric Co. BEZ $40.38 $47 $1,922 BUY $1,524 $1,727 $1,915 250 12.3x 317 9.7x 373 8.2x $1.35 29.9x $1.73 23.3x $2.45 16.5x ($24.09) ($16.07)

ICF International Inc. ICFI $25.47 $30 $499 BUY $674 $769 $840 60 10.3x 75 8.2x 85 7.2x $1.40 18.2x $1.42 17.9x $1.67 15.3x ($5.85) ($1.10)

Interface Inc. IFSI.A $14.59 $13 $935 HOLD $860 $914 $980 91 12.2x 105 10.6x 125 8.9x $0.27 54.0x $0.41 35.6x $0.60 24.3x ($2.85) $2.46

Lime Energy Co. LIME $6.00 $6 $142 SPEC. BUY $71 $83 $90 (8) N/A (6) N/A (3) N/A ($0.88) N/A ($0.37) N/A ($0.26) N/A $0.64 $1.53

LSB Industries Inc. LXU $18.99 $16 $425 HOLD $534 $598 $657 57 8.3x 54 8.7x 81 5.8x $0.96 19.8x $0.75 25.3x $1.50 12.7x ($2.04) $6.91

NCI Building Systems Inc. NCS $9.77 $17.50 $179 BUY $891 $898 $940 40 17.8x 31 23.2x 59 12.1x ($50.34) N/A ($16.32) N/A ($0.94) N/A ($1.32) $3.47

Orion Energy Systems, Inc OESX $3.16 $5 $71 BUY $62 $72 $82 (2) N/A 1 45.2x 7 7.7x ($0.20) N/A ($0.08) N/A $0.13 24.3x $0.63 $3.80

Real Goods Solar, Inc. RSOL $3.99 $6 $73 SPEC. BUY $64 $77 $100 (3) N/A 2 38.5x 4 13.8x ($0.09) N/A $0.05 79.8x $0.15 26.6x $0.64 $1.63

Trex Co. Inc. TREX $19.53 $25 $311 HOLD $272 $304 $350 40 9.2x 33 11.3x 70 5.2x $0.44 44.4x ($0.29) N/A $1.10 17.8x ($3.70) $7.57

Advanced Enabling Materials

KMG Chemicals Inc. KMGB $14.21 $22 $163 BUY $188 $210 $242 31 7.1x 31 7.0x 39 5.7x $1.17 12.1x $1.20 11.8x $1.52 9.3x ($5.01) $5.32Source: Capital IQ and Canaccord Genuity / * Note that ASX:SGM information is in Australian dollars

EBITDA EPSShare Information Per ShareRevenue

Source: Capital IQ and Canaccord Genuity estimates. Information on the methodologies used to derive our target prices, and the risks that could impede achievement of these targets, is available upon request. Disclosure information for all of Canaccord Genuity research coverage can be found at http://www.canaccordgenuity.com/research/Disclosure.htm.

4


GREEN BUILDING BUZZ

Below we highlight some recent developments and news stories from the commercial construction, green building, and energy efficiency markets that we found interesting:

• Home offices and outdHome offices and outdHome offices and outdHome offices and outdoor living spaces top choices for special function areas in oor living spaces top choices for special function areas in oor living spaces top choices for special function areas in oor living spaces top choices for special function areas in homes.homes.homes.homes. The AIA released an update to business conditions for residential architects, which included data on interesting home design trends. For example, although homeowners are spending less, more is now being spent on outdoor living spaces and energy efficiency measures. The report stated that while interest in indoor special function rooms (such as movie theaters and fitness rooms) are declining, outdoor living areas (such as decks) are gaining interest. This is a positive data point for Trex (TREX: NYSE: $19.53 | HOLD), in our view. Meanwhile, the popularity of energy efficiency systems has also been growing. AIA stated that the systems with the greatest interest included energy management systems, solar panels/collectors/photovoltaics, and geothermal heating and cooling heat pumps. These last two trends are positive for Real Goods Solar (RSOL: NASDAQ: $3.99 | SPECULATIVE BUY), and LSB Industries (LXU: NYSE: $18.99 | HOLD), respectively.

• Intel to Intel to Intel to Intel to take energy management inside the home.take energy management inside the home.take energy management inside the home.take energy management inside the home. Intel last week announced that it is furthering its efforts in the market for domestic energy management systems. The Intel Home Energy Management Reference Design is aimed at appliance manufacturers and utilities, and includes a touch-sensitive screen displaying various energy management applications for users. Third-party applications will be able to be built on top of the operating system. Other features include wireless capabilities, allowing other devices around the home to be integrated through the reference platform. We continue to see news stories like this one, suggesting an aggressive push by tech companies in particular to target the residential energy management market.

• U.S. Green Building Council launches U.S. Green Building Council launches U.S. Green Building Council launches U.S. Green Building Council launches the Center for Green Schools.the Center for Green Schools.the Center for Green Schools.the Center for Green Schools. The U.S. Green Building Council (USGBC) has announced that its newest initiative will focus on the nearly 140,000 schools, colleges and universities in the United States. “No one has ever counted the buildings, but thousands are barely built to code. The Center for Green Schools is how USGBC is working toward the ambitious goal of ensuring everyone has the opportunity to attend a green school within this generation,” the USGBC said. USGBC also announced that United Technologies Corp. (UTX: NYSE: $71.13 | Not Rated) will be the first founding sponsor of the initiative, allowing hundreds of schools around the nation to become green and more energy efficient.

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JOHNSON CONTROLS BUILDING EFFICIENCY EXPERT CALL

Join us for an informative "virtual roundtable" discussion on Friday, November 12 at 10:00 am EST with Clay Nesler, vice president of Global Energy and Sustainability, and Glen Ponczak, vice president of Investor Relations of Johnson Controls, Inc. Based upon the results of Johnson Controls' fourth annual Energy Efficiency Indicator (EEI), Mr. Nesler and Mr. Ponczak will explain the trends in energy efficiency and renewable energy investment priorities within the commercial building market. They will also talk about emerging areas of innovation in energy efficiency technology and finance. The EEI report is based on a survey of more than 1,400 North American business leaders who are responsible for investing in clean energy technologies and managing energy use in commercial buildings.

Clay Nesler is the vice president of Global Energy and Sustainability for the Building Efficiency business of Johnson Controls. In this role, he is responsible for energy and sustainability strategy, policy, innovation, operations and NGO relationships on a global basis. He also serves on the company’s global environmental sustainability council.

Glen Ponczak is vice president, Investor Relations for Johnson Controls. In this role, he is the company’s primary liaison with institutional investors, responsible for communicating with the investment community on the company’s markets, growth strategies and financial expectations.

Johnson Controls is a global sustainability engineering company, operating in three primary segments; building efficiency, power solutions and automotive. The building efficiency segment is engaged in designing, producing, marketing and installing HVAC systems, building management systems, security and controls. The power solutions business primarily fabricates and supplies lead-acid batteries for automotive uses. Finally, the automotive group is an automotive supplier, providing interior systems, electronics, and integrating lead-acid automotive batteries.

Conference call information

Date: Friday, November 12 at 10:00 am EST

Dial-in number: (866) 540-8241

International: (706) 634-4840

Confirmation code: 15705532

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JOIN US FOR DINNER AT GREENBUILD 2010

Date: Tuesday, November 16, 2010Date: Tuesday, November 16, 2010Date: Tuesday, November 16, 2010Date: Tuesday, November 16, 2010 6:30 – Cocktails & hors d’oeuvres 7:00 – Dinner

Location: NAHA RestaurantLocation: NAHA RestaurantLocation: NAHA RestaurantLocation: NAHA Restaurant 500 N. Clark Street, Chicago, IL

To RSVP, email us or Nadine Miller ([email protected]).

We hope to see you there!

mailto:[email protected]

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RECENT RESEARCH

Over the past two weeks we published notes on Baldor Electric (BEZ: NYSE: $40.38 | BUY) and ICF International (ICFI: NASDAQ: $25.47 | BUY). These notes are reprinted here.

BEZ: BALDOR SET TO CAPITALIZE ON TRANSITION TO PREMIUM EFFICIENT MOTORS; REIT. BUY, $47 TARGET

Investment recommendation

We reiterate our BUY recommendation following our “virtual roundtable” conference call with Randy Breaux, Baldor’s VP of Marketing. We continue to believe that Baldor will benefit substantially from the transition to premium efficient motors in the US. In our view, key positives for BEZ include higher sales, likely market share gains, and stronger margins through more efficient manufacturing operations.

Investment highlights

• The Energy Independence & Security Act of 2007, which goes into effect on December 19, 2010, stipulates that a wide range of general purpose motors must meet higher energy efficiency standards. While EISA doesn’t mandate that all motors from 1-500 horsepower made in or imported into the US meet the higher standards, most motors do fall under its provisions.

• Baldor has previously stated that within the first year of the new regulations, the company expects to generate $120M-$150M in additional revenues from the sale of premium efficient motors. Mr. Breaux noted that some customers have already begun to order the more efficient motors ahead of the Dec. deadline, so the revenue impact may be approx. $20M-$30M in 2010 with the remaining $100M-$120M occurring in 2011. There are opportunities for further share gains, in our view, as some smaller competitors may be unable to meet the Dec. 2010 deadline.

• Mr. Breaux commented that many of its distributors are making the transition to the more efficient motors now, while OEMs appear to be holding off until the deadline.

• Currently Baldor’s premium efficient motors represent about 15%-20% of total sales now. Mr. Breaux estimated that this figure will rise to 50%-plus after the December deadline.

• Mr. Breaux pointed out that Canada and Mexico will make the transition to premium efficiency standards in 2011. The EU will also establish EPAct level minimum efficiencies in June 2011, followed by an increase to premium efficiency standards in January 2015 (and an increase to premium efficiencies for smaller motors in January 2017). Taken together, this worldwide shift to higher efficiency motors presents a sizable business opportunity for Baldor, which ranks second on a global basis in the industrial electric motor market.

• Premium efficient (“Super-E”) motors contain more steel and copper than standard motors, according to Mr. Breaux, so the higher efficiency motors typically sell for a 20%-30% premium. Although Baldor will not necessarily earn better margins on the

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Super-E motors since the higher selling prices reflect higher input costs, Mr. Breaux did state that Baldor’s margins should benefit from improvements/efficiencies in manufacturing. For example, Baldor is reducing the number of SKUs and consolidating components, offering the potential for margin improvement.

• Regarding the current business environment, Mr. Breaux reiterated the message we heard from the company’s CEO at our Global Growth Conference in August: Baldor does not see a “double-dip” recession, as order patterns continue to track well. We note that Baldor recently reaffirmed Q3 sales guidance of $440M-$450M and said that Q4 sales should be up 20% y/y to approximately $428M.

Valuation

Baldor currently trades at approximately 8x EV/2011E EBITDA. Our $47 price target is based on approximately 9x EV/2011E EBITDA.

ICFI: NEW CONTRACTS BOLSTER CONFIDENCE IN OUTLOOK; MAINTAIN BUY, $30 TARGET

Investment recommendation

A recent spate of contract wins by ICF bolsters our confidence that the company’s backlog will trend up over the next few quarters. We continue to believe that government spending initiatives will enable ICF to deliver strong internal growth over the next several years. We maintain our BUY rating.

Investment highlights

• In just the past month, ICF has announced five new contract wins totaling more than $101M. Four of these wins were with federal government agencies, including the FDA, Dept. of Education, CDC, and SSA.

• The one non-government contract win (worth $9.2M) was with two major US utilities. ICF will help these unnamed firms develop and implement energy-efficiency/demand-side management programs, as well as provide recruitment, training, and program support.

• While ICF’s backlog has slipped a bit over the past two quarters (from $1.36B to $1.29B), these recent contract announcements increase our confidence that backlogs will again start to trend up in the Sept. quarter. We note that ICF’s new business pipeline remains robust at an estimated $2.9B (as of this past June).

• We maintain our current 2010/2011 EPS estimates of $1.42/$1.67.

Valuation

ICF trades at 6.9x EV/2011E EBITDA. Our $30 price target is based on approximately 8x EV/2011E EBITDA.

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The Green Scene 4 October 2010

Figure 3: Baldor Electric Co. income statement

Fiscal Year 2009 Fiscal Year 2010E Fiscal Year 2011EFY Q1 Q2 Q3 Q4 FY Q1A Q2A Q3E Q4E FY Q1E Q2E Q3E Q4E FY

($ in millions except per share) 2008 Mar Jun Sep Dec 2009 Mar Jun Sep Dec 2010E Mar Jun Sep Dec 2011ENet Sales 1,955$ 402.5$ 384.7$ 380.4$ 356.4$ 1,524$ 397.5$ 439.5$ 450.0$ 440.0$ 1,727$ 455.0$ 480.0$ 495.0$ 485.0$ 1,915$ % change (Q/Q) -15% -4% -1% -6% 12% 11% 2% -2% 3% 5% 3% -2%% change (Y/Y) 7% -14% -24% -25% -25% -22% -1% 14% 18% 23% 13% 14% 9% 10% 10% 11%Cost of Goods Sold 1,375.7 286.1 275.5 265.5 254.1 1,081.0 276.3 303.1 310.1 304.7 1,194.2 313.5 328.8 336.6 332.2 1,311.1

Total Gross Profit 579.0 116.4 109.2 115.0 102.4 443.0 121.1 136.4 140.0 135.3 532.8 141.5 151.2 158.4 152.8 603.9Gross Margin % 29.6% 28.9% 28.4% 30.2% 28.7% 29.1% 30.5% 31.0% 31.1% 30.8% 30.8% 31.1% 31.5% 32.0% 31.5% 31.5%

SG&A 330.4 71.4 65.0 66.1 62.9 265.4 68.7 72.1 75.4 73.9 290.1 76.0 77.8 80.2 78.8 312.7% of total revenue 16.9% 17.7% 16.9% 17.4% 17.6% 17.4% 17.3% 16.4% 16.8% 16.8% 16.8% 16.7% 16.2% 16.2% 16.3% 16.3%

EBITDA 330.1 63.5 61.4 66.8 58.4 250.1 70.0 81.5 84.1 81.4 316.9 86.0 93.9 98.7 94.5 373.1 EBITDA Margin % 16.9% 15.8% 16.0% 17.6% 16.4% 16.4% 17.6% 18.5% 18.7% 18.5% 18.4% 18.9% 19.6% 19.9% 19.5% 19.5%

Operating Income 248.6 45.0 44.3 48.9 39.5 177.6 52.4 64.3 64.6 61.4 242.7 65.5 73.4 78.2 74.0 291.1Operating Margin % 12.7% 11.2% 11.5% 12.8% 11.1% 11.7% 13.2% 14.6% 14.4% 14.0% 14.1% 14.4% 15.3% 15.8% 15.3% 15.2%

Other income, net 6.1 36.5 (3.6) 1.2 (3.5) 30.6 (2.2) (2.7) (2.5) (2.5) (9.9) (2.5) (2.5) (2.5) (2.5) (10.0)Interest expense (102.4) (22.5) (28.4) (29.8) (26.4) (107.1) (26.7) (26.2) (25.5) (25.0) (103.4) (24.5) (24.0) (23.5) (23.0) (95.0)

Pretax Income 152.3 59.0 12.3 20.3 9.5 101.1 23.5 35.5 36.6 33.9 129.4 38.5 46.9 52.2 48.5 186.1Income Taxes 52.8 22.6 4.5 7.7 3.5 38.3 8.4 12.7 13.5 12.5 47.2 14.3 17.4 19.3 17.9 68.9

Net Income 99.4 36.4 7.8 12.6 6.0 62.8 15.1 22.8 23.0 21.3 82.2 24.3 29.6 32.9 30.5 117.3Net Margin % 5.1% 9.0% 2.0% 3.3% 1.7% 4.1% 3.8% 5.2% 5.1% 4.9% 4.8% 5.3% 6.2% 6.6% 6.3% 6.1%

EPS 2.15$ 0.79$ 0.17$ 0.27$ 0.13$ 1.35$ 0.32$ 0.48$ 0.48$ 0.45$ 1.73$ 0.51$ 0.62$ 0.69$ 0.63$ 2.45$ EPS Growth (Y/Y) +3% +41% -74% -52% -68% -37% -59% +187% +81% +251% +28% +59% +29% +42% +42% +41%

Average FD shares 46.34 46.36 46.82 46.99 47.03 46.80 47.21 47.59 47.60 47.70 47.52 47.80 47.90 48.00 48.10 47.95

Gross margin 29.6% 28.9% 28.4% 30.2% 28.7% 29.1% 30.5% 31.0% 31.1% 30.8% 30.8% 31.1% 31.5% 32.0% 31.5% 31.5%EBITDA margin 16.9% 15.8% 16.0% 17.6% 16.4% 16.4% 17.6% 18.5% 18.7% 18.5% 18.4% 18.9% 19.6% 19.9% 19.5% 19.5%Operating margin 12.7% 11.2% 11.5% 12.8% 11.1% 11.7% 13.2% 14.6% 14.4% 14.0% 14.1% 14.4% 15.3% 15.8% 15.3% 15.2%Effective tax rate 34.7% 38.3% 36.5% 37.9% 37.0% 37.9% 35.9% 35.8% 37.0% 37.0% 36.5% 37.0% 37.0% 37.0% 37.0% 37.0%Net margin 5.1% 9.0% 2.0% 3.3% 1.7% 4.1% 3.8% 5.2% 5.1% 4.9% 4.8% 5.3% 6.2% 6.6% 6.3% 6.1%

Company Stats as of 6/30/10 Calendar year dataCash/investments 16.4$ Total debt 1,163.1$ Y/YCash per share 0.34$ Total Debt/EBITDA 3.6x Year Revenue EBITDA EPS ChangeInventories 270.2$ Debt/Equity 122% 2009 1,524.0$ 250.1$ 1.35$ DSOs 58 Total Debt/Total Capital 55% 2010E 1,727.0$ 316.9$ 1.73$ 28%Inventory Days 80 Book Value/Share $20.07 2011E 1,915.0$ 373.1$ 2.45$ 41%10/1/2010

Eric A. Prouty (617) 371-3729Eric Glover, CFA (415) 229-0669

Canaccord Genuity

Source: Company reports, Canaccord Genuity estimates

Source: Company reports and Canaccord Genuity estimates

10

The Green Scene 4 October 2010

Figure 4: ICF International income statement

Fiscal Year 2009 Fiscal Year 2010 Fiscal Year 2011EFY Q1 Q2 Q3 Q4 FY Q1A Q2A Q3E Q4E FY Q1E Q2E Q3E Q4E FY

($ in thousands, except per share) 2008 Mar Jun Sep Dec 2009 Mar Jun Sep Dec 2010E Mar Jun Sep Dec 2011EGross Revenue 697,427$ 157,862$ 175,405$ 167,071$ 174,061$ 674,399$ 174,438$ 199,647$ 200,000$ 195,000$ 769,085$ 200,000$ 210,000$ 220,000$ 210,000$ 840,000$ % change (Q/Q) -3% 11% -5% 4% 0% 14% 0% -3% 3% 5% 5% -5%% change (Y/Y) -4% -10% -5% -5% 7% -3% 11% 14% 20% 12% 14% 15% 5% 10% 8% 9%Direct Costs 460,002 99,237 103,911 101,610 106,576 411,334 107,559 125,131 120,000 117,000 469,690 121,000 124,950 129,800 126,000 501,750

Total Gross Profit 237,425 58,625 71,494 65,461 67,485 263,065 66,879 74,516 80,000 78,000 299,395 79,000 85,050 90,200 84,000 338,250Gross Margin % 34.0% 37.1% 40.8% 39.2% 38.8% 39.0% 38.3% 37.3% 40.0% 40.0% 38.9% 39.5% 40.5% 41.0% 40.0% 40.3%

Indirect and selling expenses 170,360 45,289 55,698 50,430 52,011 203,428 51,030 56,130 60,000 57,525 224,685 60,500 63,420 66,000 63,000 252,920% of total revenue 24.4% 28.7% 31.8% 30.2% 29.9% 30.2% 29.3% 28.1% 30.0% 29.5% 29.2% 30.3% 30.2% 30.0% 30.0% 30.1%

EBITDA 67,065 13,336 15,796 15,031 15,474 59,637 15,849 18,386 20,000 20,475 74,710 18,500 21,630 24,200 21,000 85,330 EBITDA Margin % 9.6% 8.4% 9.0% 9.0% 8.9% 8.8% 9.1% 9.2% 10.0% 10.5% 9.7% 9.3% 10.3% 11.0% 10.0% 10.2%

Depreciation & amortization 14,090 3,306 5,659 5,709 5,879 20,553 5,749 5,725 6,100 6,150 23,724 6,200 6,250 6,300 6,300 25,050% of total revenue 2.0% 2.1% 3.2% 3.4% 3.4% 3.0% 3.3% 2.9% 3.1% 3.2% 3.1% 3.1% 3.0% 2.9% 3.0% 3.0%

Operating Income 52,975 10,030 10,137 9,322 9,595 39,084 10,100 12,661 13,900 14,325 50,986 12,300 15,380 17,900 14,700 60,280Operating Margin % 7.6% 6.4% 5.8% 5.6% 5.5% 5.8% 5.8% 6.3% 7.0% 7.3% 6.6% 6.2% 7.3% 8.1% 7.0% 7.2%Interest Expense (4,083) (735) (1,500) (1,471) (1,400) (5,106) (963) (917) (1,000) (900) (3,780) (800) (700) (600) (500) (2,600)Other 581 166 194 65 580 1,005 19 79 0 0 98 0 0 0 0 0

Pretax Income 49,473 9,461 8,831 7,916 8,775 34,983 9,156 11,823 12,900 13,425 47,304 11,500 14,680 17,300 14,200 57,680Income Taxes 20,750 3,579 3,662 2,800 2,586 12,627 3,736 4,622 5,289 5,504 19,151 4,715 6,019 7,093 5,822 23,649

Net Income 28,723 5,882 5,169 5,116 6,189 22,356 5,420 7,201 7,611 7,921 28,153 6,785 8,661 10,207 8,378 34,031EPS 1.88$ 0.38$ 0.33$ 0.32$ 0.37$ 1.40$ 0.28$ 0.37$ 0.38$ 0.39$ 1.42$ 0.34$ 0.43$ 0.50$ 0.41$ 1.67$ EPS Growth (Y/Y) -31% -27% -37% -28% -6% -25% -26% +12% +18% +5% +1% +21% +16% +32% +5% +18%

Average FD shares 15,270 15,572 15,710 15,844 16,522 15,912 19,504 19,568 20,000 20,200 19,818 20,250 20,300 20,350 20,400 20,325

Gross margin 34.0% 37.1% 40.8% 39.2% 38.8% 39.0% 38.3% 37.3% 40.0% 40.0% 38.9% 39.5% 40.5% 41.0% 40.0% 40.3%EBITDA margin 9.6% 8.4% 9.0% 9.0% 8.9% 8.8% 9.1% 9.2% 10.0% 10.5% 9.7% 9.3% 10.3% 11.0% 10.0% 10.2%Operating margin 7.6% 6.4% 5.8% 5.6% 5.5% 5.8% 5.8% 6.3% 7.0% 7.3% 6.6% 6.2% 7.3% 8.1% 7.0% 7.2%Effective tax rate 41.9% 37.8% 41.5% 35.4% 29.5% 36.1% 40.8% 39.1% 41.0% 41.0% 40.5% 41.0% 41.0% 41.0% 41.0% 41.0%Net margin 4.1% 3.7% 2.9% 3.1% 3.6% 3.3% 3.1% 3.6% 3.8% 4.1% 3.7% 3.4% 4.1% 4.6% 4.0% 4.1%

Company Stats as of 6/30/10 Calendar year dataCash/investments $5,338 Total debt $120,000 Y/YCash per share $0.27 Total Debt/EBITDA 1.6x Year Revenue EBITDA EPS ChangeDSOs 74 Debt/Equity 36% 2009 674,399$ 59,637$ 1.40$ -25%

2010E 769,085$ 74,710$ 1.42$ 1%2011E 840,000$ 85,330 1.67$ 18%10/1/2010

Eric Glover, CFA (415) 229-0669Canaccord Genuity

Source: Company reports, Canaccord Genuity estimates

Eric A. Prouty (617) 371-3729

Source: Company reports and Canaccord Genuity estimates

11


UNDER CONSTRUCTION…

We’d like to bring your attention to what may be the world’s most bizarre concept for public transportation – but first you have to understand how it will be funded by Google Inc.

Almost two years ago, Google announced Project 10^100, an initiative the firm called “a call for ideas to change the world, in the hope of helping as many people as possible.” (Despite the loftiness of the project’s objective, Google decided to fund the project with a paltry $10 million, even though the company at the time had more than $14 billion in cash and marketable securities.) Anyway, the company received 154,000 submissions, each one carefully scrutinized by Google to determine which ideas (up to five of them) would be eligible for funding. The public also had a say in the winners via an online ballot.

At long last, Google recently announced the winners of Project 10^100:

• Idea – Make educational content online available for free. Winner: The Khan Academy. a non-profit education organization that provides high-quality, free education to anyone, anywhere via an online library of more than 1,600 teaching videos. Google is providing $2 million to support the creation of more courses.

• Idea – Enhance science and engineering education. Winner: FIRST, a non-profit organization that promotes science and math education around the world through team competition. Google is providing $3 million in funding.

• Idea – Make government more transparent. Winner: Public Resource.org, a non-profit that focuses on enabling online access to public government documents in the US. Google is is providing $2 million in funding.

• Idea – Provide quality education to African students. Winner: African Institute for Mathematical Sciences, a center that provides a “bridge” program for recent university graduates prior to master’s and PhD study. Google is providing $2 million in funding which will be used to construct and open additional centers.

And finally, we come to the last winning idea – Driving innovation in public transport. We had high hopes for this one given the sorry state of public transportation and infrastructure (at least where we live). The winner? Shweeb, a company that has come up with “a concept for short to medium distance, urban personal transport, using human-powered vehicles on a monorail.” Google is providing $1 million in funding.

So what exactly is Shweeb’s great idea? USA Today explains:

Google invests in pedal-powered bike monorail

Tired of traffic jams or crowded buses? Google is investing $1 million in an entirely new transport idea in which human-powered plastic tubes hang upside down from a monorail.

Google is funding research by Shweeb, a company that developed a bike-powered monorail in Rotorua, New Zealand, where users in suspended pods cycle at speeds up to

12


28 miles per hour. On its website, Shweeb says it will soon announce where it will build the first network for public use.

Google's investment stemmed from its Project 10^100, which solicited ideas for changing the world. The competition received 150,000 entries from 170 countries and voters picked five, one of which was "Drive innovation in public transport." Shweeb was chosen as the organization to bring that idea to life.

Melbourne cyclist Geoff Barnett came up with the Shweeb system while living in Tokyo, and after researching it for six years, he launched a test one as an adventure ride in Rotorua in 2007, reports Inhabitat, adding more than 30,000 people have since given it a try.

Figure 5: Shweeb’s public transportation system that’s about as practical as it looks

Image source: Shweeb

13


Figure 6: Canaccord Genuity Green Building Index member companies

Company Primary Business

Acuity Brands, Inc. (NYSE:AYI) Lighting fixturesAdvanced Environmental Recycling Technologies, Inc. (NasdaqCM:AERT) Composite lumberAkeena Solar, Inc. (NasdaqCM:AKNS) Solar powerAmeresco (NYSE: AMRC) Energy efficiencyApogee Enterprises Inc. (NasdaqGS:APOG) Energy efficient glassBaldor Electric Co. (NYSE:BEZ) Efficient motorsBrookfield Properties (TSX: BPO) REITCapstone Turbine Corp. (NasdaqGM:CPST) MicroturbinesComfort Systems USA Inc. (NYSE:FIX) HVAC servicesComverge, Inc. (NasdaqGM:COMV) Demand response and energy efficiencyCree Inc. (NasdaqNM:CREE) LED lightingDay4 Energy Inc. (TSX:DFE) Solar powerDialight PLC (LSE:DIA) LED lightingEaga Plc (LSE:EAGA) Energy efficient solutionsEchelon Corporation (NasdaqGM:ELON) Building automation controlsEcology & Environment Inc. (AMEX:EEI) Environmental consultingFirst Capital Realty (TSX: FCR) REITFlanders Corp. (OTCPK:FLDR) Indoor environmental qualityGenesis Worldwide Inc. (TSX:GWI) Green building materialsGreen Builders Inc. (OTCPK: GRBU) Residential green buildingHeadwaters Inc. (NYSE:HW) Building materialsHerman Miller Inc. (NasdaqGS:MLHR) Office furnitureICF International Inc. (NasdaqGS:ICFI) Environmental consultingInterface Inc. (NasdaqGS:IFSI.A) CarpetJohnson Controls Inc. (NYSE:JCI) Building automation controlsKingspan Group plc (ISE:KRX) Energy efficient insulationLiberty Property Trust (NYSE:LRY) REITLime Energy (NasdaqCM:LIME) Energy efficiency LSB Industries Inc. (AMEX:LXU) Geothermal heat pumpsMueller Water Products, Inc. (NYSE:MWA) Water efficiencyNCI Building Systems (NYSE: NCS) Engineered metal buildingsOrion Energy Systems, Inc (AMEX:OESX) Energy efficient solutionsPowerSecure International, Inc. (NasdaqGS:POWR) Energy management/conservation solutionsProLogis (NYSE:PLD) REITReal Goods Solar (NASDAQGM:RSOL) Solar powerServidyne, Inc. (NasdaqGM:SERV) Energy efficient consulting servicesSmartCool Systems (TSXV: SSC) Energy efficiency technologyStantec Inc. (TSX:STN) Architectural design and consultingSteelcase (NYSE: SCS) Office furnitureSunPower Corporation (NasdaqGS:SPWR) Solar powerThomas Properties Group Inc. (NasdaqGM:TPGI) REITTrex Co. Inc. (NYSE:TREX) Composite lumberWaterFurnace Renewable Energy (TSX:WFI) Heat pumps

Stock Exchange Symbol Key:AMEX: American Stock ExchangeISE: Irish Stock ExchangeLSE: London Stock ExchangeNasdaqCM: Nasdaq Capital MarketNasdaqGM: Nasdaq Global MarketNasdaqGS: Nasdaq Global SelectNYSE: New York Stock ExchangeOTCPK: Over the counter pink sheetsTSX: Toronto Stock ExchangeTSXV: Toronto Venture Exchange

Source: Canaccord Genuity

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INVESTMENT RISKS

Baldor Electric Co.

Baldor is heavily exposed to the prices for raw materials, particularly including steel, copper, and aluminum. Higher raw materials prices may have a negative impact on the company's profitability.

As a global supplier of motors and related parts, Baldor is dependent on the health of the worldwide economy for its growth. Economic slowdowns are likely to negatively impact Baldor's sales.

Baldor is heavily dependent on independent distributors to sell its products. The loss of a significant number of distributors or impaired relationships with its distributors could materially reduce the firm's sales and profits.

Baldor possesses a substantial amount of long-term debt, which poses a risk if Baldor were unable to service this debt or meet its financial covenants. High debt levels may reduce the firm's flexibility to fund capex projects, working capital needs, or respond to changing business conditions.

ICF International

ICF International relies substantially on government clients for revenue. Changing spending priorities by governments could have a negative financial impact on the company.

The company's commercial business is heavily dependent on the air transport and energy sectors of the global economy, both of which are highly cyclical and can lead to large swings in revenue and profit from quarter to quarter.

ICF International has adopted a growth-through-acquisition strategy, which requires the company to find suitable acquisitions, pay appropriately for them, and integrate them successfully.

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APPENDIX: IMPORTANT DISCLOSURES Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this investment

research hereby certifies that (i) the recommendations and opinions expressed in this investment research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the investment research.

Distribution of Ratings: Global Stock Ratings (as of 1 September 2010)

Coverage UniverseCoverage UniverseCoverage UniverseCoverage Universe IBIBIBIB Clients Clients Clients Clients RatingRatingRatingRating #### %%%% %%%% Buy 417 60.7% 37.4% Speculative Buy 78 11.4% 61.5% Hold 182 26.5% 20.9% Sell 10 1.5% 0.0% 687 100.0%

Canaccord Ratings System:

BUY:BUY:BUY:BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months. HOLD:HOLD:HOLD:HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months. SELL:SELL:SELL:SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months. NOT RATED:NOT RATED:NOT RATED:NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer. “Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the designated investment or the relevant issuer.

Risk Qualifier: SPECULATIVE:SPECULATIVE:SPECULATIVE:SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental

criteria. Investments in the stock may result in material loss. Canaccord Research Disclosures as of 4 October 2010 Canaccord Genuity is the business name used by certain subsidiaries of Canaccord Financial Inc., including

Canaccord Genuity Inc., Canaccord Genuity Limited, and Canaccord Genuity Corp. The authoring analysts who are responsible for the preparation of this investment research are employed by Canaccord Genuity Corp. a Canadian broker-dealer with principal offices located in Vancouver, Calgary, Toronto, Montreal, or Canaccord Genuity Inc., a US broker-dealer with principal offices located in Boston, New York, San Francisco and Houston or Canaccord Genuity Limited., a UK broker-dealer with principal offices located in London and Edinburgh (UK). In the event that this is compendium investment research (covering six or more relevant issuers), Canaccord Genuity and its affiliated companies may choose to provide specific disclosures of the subject companies by reference, as well as its policies and procedures regarding the dissemination of investment research. To access this material or for more information, please send a request to Canaccord Genuity Research, Attn: Disclosures, P.O. Box 10337 Pacific Centre, 2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2 or [email protected]. The authoring analysts who are responsible for the preparation of this investment research have received (or will receive) compensation based upon (among other factors) the Corporate Finance/Investment Banking revenues and general profits of Canaccord Genuity. However, such authoring analysts have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Corporate Finance/Investment Banking activities, or to recommendations contained in the investment research. Canaccord Genuity and its affiliated companies may have a Corporate Finance/Investment Banking or other relationship with the company that is the subject of this investment research and may trade in any of the designated investments mentioned herein either for their own account or the accounts of their customers, in good faith or in the normal course of market making. Accordingly, Canaccord Genuity or their affiliated companies, principals or employees (other than the authoring analyst(s) who prepared this investment research) may at any time have a long or short position in any such designated investments, related designated investments or in options, futures or other derivative instruments based thereon. Some regulators require that a firm must establish, implement and make available a policy for managing conflicts of interest arising as a result of publication or distribution of investment research. This investment research has been prepared in accordance with Canaccord Genuity’s policy on managing conflicts of interest, and information barriers or firewalls have been used where appropriate. Canaccord Genuity’s policy is available upon request. The information contained in this investment research has been compiled by Canaccord Genuity from sources believed to be reliable, but (with the exception of the information about Canaccord Genuity) no representation

16


or warranty, express or implied, is made by Canaccord Genuity, its affiliated companies or any other person as to its fairness, accuracy, completeness or correctness. Canaccord Genuity has not independently verified the facts, assumptions, and estimates contained herein. All estimates, opinions and other information contained in this investment research constitute Canaccord Genuity’s judgement as of the date of this investment research, are subject to change without notice and are provided in good faith but without legal responsibility or liability. Canaccord Genuity’s salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and our proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this investment research. Canaccord Genuity’s affiliates, principal trading desk, and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this investment research. This investment research is provided for information purposes only and does not constitute an offer or solicitation to buy or sell any designated investments discussed herein in any jurisdiction where such offer or solicitation would be prohibited. As a result, the designated investments discussed in this investment research may not be eligible for sale in some jurisdictions. This investment research is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not have regard to the investment objectives, financial situation or particular needs of any particular person. Investors should obtain advice based on their own individual circumstances before making an investment decision. To the fullest extent permitted by law, none of Canaccord Genuity, its affiliated companies or any other person accepts any liability whatsoever for any direct or consequential loss arising from or relating to any use of the information contained in this investment research.

For Canadian Residents: This Investment Research has been approved by Canaccord Genuity Corp., which accepts sole responsibility

for this Investment Research and its dissemination in Canada. Canadian clients wishing to effect transactions in any Designated Investment discussed should do so through a qualified salesperson of Canaccord Genuity Corp. in their particular jurisdiction.

For United Kingdom Residents:

This investment research is distributed in the United Kingdom, as third party research by Canaccord Genuity Limited, which is authorized and regulated by the Financial Services Authority. This research is for distribution only to persons who are Eligible Counterparties or Professional Clients only and is exempt from the general restrictions in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the grounds that it is being distributed in the United Kingdom only to persons of a kind described in Article 19(5) (Investment Professionals) and 49(2) (High Net Worth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended). It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. This material is not for distribution in the United Kingdom to retail clients, as defined under the rules of the Financial Services Authority.

For United States Residents:

Canaccord Genuity Inc., a US registered broker-dealer, accepts responsibility for this Investment Research and its dissemination in the United States. This Investment Research is intended for distribution in the United States only to certain US institutional investors. US clients wishing to effect transactions in any Designated Investment discussed should do so through a qualified salesperson of Canaccord Genuity Inc. Analyst(s) preparing this report that are not employed by Canaccord Genuity Inc are resident outside the United States and are not associated persons or employees of any US regulated broker-dealer. Such analyst(s) may not be subject to Rule 2711 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

For European Residents: If this Investment Research is intended for disclosure in any jurisdiction other than the United Kingdom, the

US or Canada, then the relevant rules and regulatory requirements of that jurisdiction will apply. Additional information is available on Additional information is available on Additional information is available on Additional information is available on request.request.request.request.

Copyright © Canaccord Genuity Corp. 2010. – Member IIROC/Canadian Investor Protection Fund Copyright © Canaccord Genuity Limited 2010. – Member LSE, authorized and regulated by the Financial Services Authority. Copyright © Canaccord Genuity Inc. 2010. – Member FINRA/SIPC All rights reserved. All material presented in this document, unless specifically indicated otherwise, is under copyright to Canaccord Genuity Corp., Canaccord Genuity Limited, and Canaccord Genuity Inc. None of the material, nor its content, nor any copy of it, may be altered in any way, or transmitted to or distributed to any other party, without the prior express written permission of the entities listed above.

Green Building Semimonthly - PACEworx News · PDF fileGreen Building Semimonthly Green Building Semimonthly ... He provided the example of the Toyota Prius, ... N/A $0.32 12.4x $0.52

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