Outlook

The outlook for Canem during 2012 is positive. Although some of Canem’s commercial projects such as the Shaw Data Centre in Calgary, the Central Alberta Cancer Centre in Red Deer and Investors Group Field football stadium in Winnipeg, have been proceeding slower than originally planned, others, such as the New Remand Centre in Edmonton and Bow Valley College in Calgary, are experiencing scope increases. Canem’s contract income margin of 22.5% in the first quarter of 2012 was strong, but lower than the first quarter of 2011 when the company was completing a number of high margin projects.

Canem expects contract and EBITDA margins to weaken slightly from their current levels for the remainder of 2012. Canem is working to offset margin pressure by improving operational efficiencies and by differentiating itself from the competition with building systems integration solutions to support its core operations. Canem has developed considerable expertise in sustainable buildings and energy efficiency and in 2010 launched its Smart Connected Real Estate Program. One product of this program is the Canem Centre for Building Performance in Richmond, British Columbia, which opened in the summer of 2011 as a permanent training and testing facility for integrated building systems, with the goal of encouraging building owners and developers to adopt new efficiencies and performance in buildings systems.

Current projects include:

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• The Edmonton Remand Centre, a $523-million ($80-million electrical and data systems budget), 57,000-square-metre facility being built by SODCL in Edmonton, Alberta and scheduled for completion in the fall of 2012;
• The Shaw Data Centre, an energy efficient, high-technology structure with a $30 million electrical and data systems budget being built by Ledcor Construction Limited in Calgary, Alberta;
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  • Investors Group Field, a $170-million ($18-million electrical and data systems budget), 33,000-seat football facility being built by SODCL in Winnipeg, Manitoba and scheduled for completion in the fall of 2012;
• The 443 Maritime Helicopter Squadron facility, a $103.9 million ($11 million electrical and data systems budget), 20,000 square metre hangar being constructed at Victoria International Airport in Victoria, British Columbia by Knappett Projects Inc. and scheduled for completion in the first quarter of 2014; and
• 745 Thurlow, a 25 storey, 400,000 square foot office tower, valued at $100 million ($5 million electrical and data systems budget) and located at 745 Thurlow Street, Vancouver.