WE DELIVER CANADA

2010 ANNUAL REVIEW
WE DELIVER CANADA
Corporate PROFILE
Purolator is celebrating 50 years of delivering Canada and continues to expand its reach to more people,
more businesses and more places across our country. We’re proud of our Canadian heritage and of the company
we’ve built. But most of all, we’re proud of our people. Their talent and commitment has made us one of this
country’s most respected companies and admired corporate cultures. And it is our people who will ensure that
we deliver Canada for the next 50 years.
Purolator is well-positioned for future growth and success in business and in the communities we serve.
We are delivering Canada to and from more markets in the U.S., and growing globally. We are a comprehensive
freight and parcel solutions provider operating in a sustainable manner while contributing to the well-being
of the communities in which we live, work and play.
WHAT’S INSIDE
Message from the Chairman
1
Message from the President
2
Looking Back, Moving Forward, Celebrating Employees
3
Our Guiding Principles
12
Honouring employee excellence
14
Environmental Sustainability
16
Hunger for Positive Social Change
17
Governance Statement
18
Board of Directors and Executive Team
20
Financial Highlights
Inside Back Cover
1989
1995
Purolator developed a unique
automated shipping system for
high volume customers consisting
of a computer, scale and printer.
1960
Purolator began operations
on December 5, 1960 as Trans
Canadian Couriers Ltd., a subsidiary
of American Courier Corporation.
With a staff of two, the company
spent its infancy in the heart of
Eastern Canada with restricted
operating licenses for the provinces
of Ontario and Quebec.
Purolator launched its presence on
the Internet at www.purolator.com,
now one of the busiest e-commerce
sites in Canada, processing more
than 350,000 transactions per
business day.
1997
Purolator became the first
Canadian courier company to
offer courier pick up requests
on the Internet.
1987
Purolator introduced an innovative
retail concept in the Canadian
courier industry with the opening
of its first Retail Centre (the first
of its kind in Canada) at Toronto’s
Yonge/Sheppard Centre.
1960
1998
Purolator’s United States
operations were launched
as Purolator USA (now
Purolator International).
2003
2008
Purolator received ISO 9001:2000
registration, which enabled the
company to clearly define its
quality focus and align strategically
with its efforts to deliver superior
customer care.
Purolator’s new E-Ship Server
(ESS) was launched. ESS is a userfriendly, Windows-based standalone operating system, designed
for large customers with multiple
facilities and numerous users.
2010
2004
Purolator provided pick up and
delivery for all documentation and
packages going into and out of the
various Olympic venues, leading
up to and during the 2010 Winter
Games. This included the delivery
of approximately 800,000
2010 Winter Games tickets.
Purolator introduced Purolator
Freight, a premium less-thantruckload (LTL) service.
2005
Purolator became the first
Canadian logistics company to
start the transition to hybrid
electric vehicles.
2010
Message from the Chairman
On behalf of the Board of Directors, I am pleased to share the results of Purolator’s performance for 2010.
STEWART BACON
Chairman of the Board
In 2010 Purolator generated net operating revenue of $1.493 billion, an increase of $59 million relative to
the prior year. In doing so, Purolator increased earnings to $71.7 million.
On September 9th, 2010 Purolator welcomed Tom Schmitt, our new President and CEO. He is an exceptional
leader and his customer focus and passion for performance excellence make him the ideal candidate to
lead Purolator.
Purolator has long been recognized for the delivery of flexible, responsive service and solutions across all lines
of its business. Domestic and international customers, parcel, freight and supply chain customers all benefit
from the dedication of Purolator’s people and their commitment to service excellence. On behalf of the Board
of Directors I would like to convey our appreciation for this dedication to serving our customers.
During 2010, Purolator made notable improvements in processes and quality assurance, as well as investments
like the ongoing replacement of conventional diesel vehicles with new hybrid-electric vehicles. These initiatives
will create value for Purolator’s customers and the communities in which we operate, build brand leadership
and position Purolator to perform well as we emerge from the economic recovery. Looking forward, Purolator
will continue to make investments in its business where there are strong opportunities to improve and expand
its current service offering.
I am serving with an exceptional Board, and together we embrace our mandate to provide oversight and
support to Purolator’s management team. I look forward to reporting Purolator’s progress to you in the
2011 Annual Review.
2010 Annual Review
1
Message from the President
“Our Purolator team had a strong 2010 – setting us up for continued profitable growth in 2011 and beyond.”
I wish to express a heartfelt ‘thank you’ to my teammates, our customers, business
partners and our Board of Directors for playing a major role in making 2010 a
successful year for our Purolator team.
TOM SCHMITT
President and Chief Executive Officer
In 2010 we got back to our ‘good habit’ of remarkable profitable growth.
We grew our revenues by more than 4% and our earnings before taxes by 35%.
We strengthened the profitability in our core Canadian parcel business while
growing our freight and international business by double-digits.
Personally, I was here only for the last four months of 2010 having joined on
September 9, after 12 years with FedEx in Memphis. Eight months into my
tenure as a ‘Puro’, I still feel as grateful and fortunate as I did on day one. We have
an amazing spirit across our 11,500 teammates and I’m proud to be part of it.
That spirit combined with a high level of competence led to remarkable results
in 2010 and we are far from being done.
Before reviewing some of the many 2010 highlights, first things first: thank you
to Bill Henderson. Bill led our Purolator team as CEO for much of last year and,
through his action-focused leadership, has laid the foundation for a strong year.
2
2010 Annual Review
Let me now review some of the many highlights:
- Purolator delivered the 2010 Olympics as the Games’ exclusive carrier, earning
the Vancouver Olympic Committee Sustainability Star in the process. Our delivery
was so flawless that the 2012 and 2014 Olympic organizing committees reached
out to Purolator for our best practices: a great recognition of our first class
operations teams.
- We put our first long combination vehicle (LCV) into service between
Edmonton and Calgary.
- Our Moncton Contact Centre won three industry awards: for Technology and
Innovation, Business Leader of the Year and Employer of the Year.
- Our 11,500 teammates living and working on our Canadian home turf had
a record year in another dimension that matters profoundly to Purolator:
we delivered more food through our ‘Tackle Hunger’ program, run in
collaboration with the Canadian Football League, than ever before.
Through the eight years since the program’s inception, we have collected more
than 3.7 million pounds of food in support of Canadian food banks.
- O n December 6, Purolator turned 50, a milestone we are proud of, but one
we will not rest on.
- B y the end of 2010, Purolator had 405 Hybrid Electric Vehicles (HEVs) in service.
- A s we become less fuel dependent we are evolving into the industry leader in
environmental stewardship: no other transportation company has that many
HEVs in service. Not in Canada, and not globally.
- In November, we simplified our leadership structure, making access to our three
lines of business (Parcel, Freight and International) easier internally and easier
for our customers.
There are many more highlights, but in summary: 2010 was a good year setting
us up for an even stronger 2011. This year we expect to grow both our revenues
and bottom line significantly. We have set up our team and our initiatives well to
‘deliver Canada fully and sustainably’.
‘Fully’ by:
- defending and growing market share in our Canadian parcel business
- t urbocharging growth in our Freight business, propelled by access to our
express expertise and assets
- p roviding access to the Canadian market to more and more shippers outside
Canada, with U.S. northbound shipments being the biggest lever
‘Sustainably’ by:
- e xtending our environmental leadership, such as turning more downtown
areas into all-hybrid-electric-vehicle pickup and delivery markets
- upgrading our aircraft fleet
- b eing a responsible citizen and neighbour in all the communities we live,
work, and play in.
I am proud of the 2010 performance that our Purolator teammates delivered.
And equally thrilled about our prospects for 2011 and beyond.
MORE THAN
11,500
TEAMMATES
2010 Annual Review
3
10 YEARS OF SERVICE
10
Tracy Tremblay
Consultant, Human Resources
GERRY SCHENKENBERG
District Manager (Nanaimo)
What is your first memory of working at Purolator?
My first impression was that the people were amazing!
How are Purolator’s operations different today than
they were in 1992?
Changes in technology have brought our operations a long way. Our systems
are a lot more efficient, and the service we provide our customers is a lot more
reliable. The quality of work we do is higher than when I first started. We’re
a much tighter, more progressive organization today. A lot of investment has
gone into infrastructure, into systems and into people, securing a future for the
company and for the people of Purolator.
What/who inspired you to dedicate your career to Purolator?
Loretta Neeley, Director of Organizational Effectiveness – she’s my mentor.
I’ve learned so much from her. She has always guided me in the right
direction. She tells me when I’m right and when I’m wrong – and helped
me grow into the person I am today. Whenever I need guidance, I can always
count on Loretta.
What are some key highlights you draw on when thinking about
your career at Purolator?
The support Purolator gave me in completing my Human Resources
Management certificate. This includes tuition reimbursement, paid time off
for exams, and helping me maintain a work-life balance while juggling my
career and a nine-course workload. I am now on my way to becoming a
certified Human Resources professional.
What Purolator milestones have you witnessed?
Achieving ISO certification was huge. It required a lot of change – it broke
down barriers, established work procedures and allowed everyone to see
how people connected to each other. The Ontario Hub was the first to achieve
certification and I was part of the team that helped implement the new
work procedures. Now Purolator has fully ISO certified facilities nationwide,
providing quality service coast-to-coast.
What milestones have you witnessed since working here?
Purolator’s purchase by Canada Post Corporation was key to securing the
stability of the organization. We experienced a real financial turnaround under
the leadership of our president and CEO, and his executive team at the time.
Today, the company’s financial success is shared by employees through our share
ownership plan. That is really significant to the mindset of the organization.
Why have you dedicated 19 years to Purolator?
From the start, I saw a lot of potential within the organization. The work is always
challenging, and I take pride in knowing that whatever I’ve done has played a
small role in contributing to the success of Purolator. The future looks bright.
Are there any unusual opportunities Purolator has given you?
My son and I were in a Purolator ‘Tackle Hunger’ commercial that aired during
the 2008 regular CFL season. My son was very excited, and I enjoyed meeting
teammates from across the country who also participated in the filming
of the commercial.
Tracy’s photo was taken on location in Hamilton
Gerry’s photo was taken on location in Richmond
Michelle Tomlinson
Coordinator, Communications
Laurie Weston
Manager, National Retail
Who inspired you to dedicate your career to Purolator?
I met someone who really inspired me when I was interviewed for a position at
the call centre. The person who interviewed me asked me where I see myself at
Purolator. And I replied: “I see myself in your position”, despite all the interview
guide books that tell you not to say that. The interviewer replied: “Good answer.“
His response planted something in me: recognize and walk through every door of
opportunity that is presented my way. Ann-Mary Smith and Iain Gair were also
great mentors in assisting me in my Human Resources career path.
What was your first impression of the company?
It was Canadian – that came through loud and clear. From the very first day I felt
I was part of something bigger. That was a very good feeling.
What is your first memory of working at Purolator?
The first full week of training was very exciting and fun though the content was
rather bland. We had a trainer named Michelle St-Pierre who was very quiet
until she got up in front of the class. Then she became very dynamic and brought
Purolator to life. I learned at that point the importance of customer service.
What do you think sets us apart from the competition?
Hands down, our commitment to our employees. Purolator is a place for everyone:
whether you’re an engineer or a customer service agent, there’s a place for you
within the company. You also have the opportunity to grow and move within the
organization. That’s a great motivator!
What are some of your favourite memories/highlights
from working here?
In 2010 I took part in Leaders’ Edge. I had the privilege of working closely with
25 other up-and-coming leaders. We were presented with a strategic problem
around social media that we had to find a solution for. The presentation to the
executive team was the biggest moment for me. I was nervous about the outcome
and the presentation – but my team and I did a great job! Actually, the company
is looking to implement some of our ideas. That was a very proud moment for me.
Why have you decided to dedicate such a large part of
your career to Purolator?
There is something unique about Purolator. We’re a big company and yet you
can’t help but feel connected…like you’re part of a community working towards
a common goal. Purolator is a place that challenges people to be the best they
can be. And they back it up by supporting and developing their employees.
I feel like I won the lottery working here!
What inspires you when you think about your career at Purolator?
The dedication of our frontline employees, our couriers and clerical staff towards
our customers. It was amazing to hear customers call in to the Contact Centre
and terminal, insisting they have their couriers back after a terminal had gone
through a route optimization, due to the relationship that had been established
over the years.
Share your most unique Purolator customer service story with us.
It was Christmas Day and I was hosting my family at home when I received a
call that a customer’s shipment was sitting at one of our locations. This customer
needed the shipment, as it was the only gift her granddaughter would get for
Christmas. I arranged to pick up the shipment myself and deliver it personally.
The child cried for joy when she received it, and it gave me a great feeling inside
to be able to help out that customer.
Michelle’s photo was taken on location in Hamilton
Laurie’s photo was taken on location in Mississauga
20 YEARS OF SERVICE
20
PAUL MERRICK
General Manager, Operations (Pacific and Prairies)
DENIS ROCH
General Manager, Operations (Québec and Atlantic)
Where did you begin your career?
I started out in the East. I was a Unit Manager in Barrie and applied to be a Unit
Manager in Richmond, B.C. It was like coming to a new job. I left my wife and
three kids behind in Ontario and flew out to Richmond, rented a car and settled
into this new job. After three months, I flew back to Ontario and drove my family
back to B.C.
What did Purolator’s fleet look like when you joined the company?
When I joined the company, we had Ford Custom 500s with the backseats pulled
out, open to the trunk. As the company grew, we went from cars to Econolines to
14-foot vehicles. I remember, years ago, being at Boucherville and everyone was
sitting around looking at this truck backed onto the dock. The truck was in the
way, so I asked why no one was moving it. Turns out no one knew how to drive
standard shift. I ended up moving the truck, but even today, all of our vehicles are
automatic.
What’s the most significant change you’ve seen during your career?
We’re trying to be a good corporate citizen, which is probably the biggest way
we’ve changed. It’s all about doing the right thing and being a better organization.
One way is through our leadership in environmental responsibility and our
investment in hybrid electric vehicles. We’re an organization that’s very responsible
that way.
What makes Purolator’s culture so unique?
Any manager would be remiss not to mention the strength and tenacity of the
employee group. I came to Richmond when things were tough and employees
were looking for leadership. They saw me as the guy who would turn it around.
I was one of many who contributed, but it was a collective effort. Our proudest
moments are always about the team of people that helped accomplish
something – regardless of whether it was a small or big gain.
Paul’s photo was taken on location in Richmond
What is the biggest change you’ve witnessed at Purolator?
The company has gone through such amazing growth. There were two districts
in Montreal when I started. Now we have five on the Island and we’ve added
new facilities, like the Montreal Hub. Seeing the Hub go up is something we’ve
been dreaming about for 10 years. Our air network is unrivalled and our ground
network…well, just the size of our network is impossible to replace.
Why have you decided to dedicate such a large part of your
career to Purolator?
I still love the job, still love the people and am still amazed at all the things we
can do. It’s a Canadian company – that’s a big point of pride. We’re number one in
Canada and number one in Quebec, my home. You don’t have to go anywhere to
experience something new with Purolator. It’s a company where your dreams can
come true.
Denis’ photo was taken on location in Montreal
GUS TZATZANIS
Coach, Organizational Effectiveness
JIM MACINTOSH
Vice President, Field Operations
How has your career at Purolator evolved?
I originally started in 1987, and spent my first 10 years as a courier. I became
the ‘unofficial’ workplace trainer. I was able to attend a lot of courses, and soon
the company asked me to become a unit manager. I said, “I need to go to this
development program, or else I’m not going to be a good manager.” I wanted
to expand my skill set. I knew that if I were going to lead and support a team,
I wanted to learn how to do it properly.
What was your first impression of Purolator?
I remember being new and so nervous about doing the right thing. The people
I worked with would make it a point to introduce themselves. They were so
helpful and so ready to make you feel comfortable and teach you stuff that
you didn’t know.
From there, I went on to become a Training Specialist. The next position was a
Quality Manager. My current role is as Coach, Organizational Effectiveness. The
job is about understanding our business, mentoring people and putting programs
together for our managers to support their learning paths. It’s new and it’s a great
new thing for our organization.
I applaud Purolator for allowing our people to learn, grow and develop. I’ve always
felt that Purolator gave me opportunities to grow.
Why have you dedicated so many years here?
I’ve been asked this before. I look back at the opportunities I’ve had at Purolator…
the development opportunities Purolator has given me; the personal growth
opportunities Purolator has allowed me to experience; and the managers who
support the people who work here. We’re an awesome company – we really are!
Gus’ photo was taken on location in Mississauga
On-time departures were key. There was a sense of urgency around making sure
all of the freight got on the right truck and that the trucks were closed and ready
to leave on time. These guys talked about it with such a sense of pride that it was
contagious. Everything was in order and we were set up to get clear at 10 p.m.
What was one of your most memorable experiences?
We opened a new hub in Toronto in 1987. That first evening was a night to
remember. It didn’t go as smoothly as we would have liked. It took longer to
process the freight with new employees and a new conveyer system, but I
look back at it now as one of the best learning experiences I’ve had with this
organization. It was a unique opportunity to work on a project of that magnitude.
Back in 1987 – it was pretty significant. I certainly grew from it, personally and
professionally, and came to understand how much commitment is required to
work on a project of that size. We had to implement it over a very short period
of time, while protecting service to our customers.
Jim’s photo was taken on location in Mississauga
2010 Annual Review
7
30 YEARS OF SERVICE
30
MIKE BOUCHER
Acting Senior Vice President and Chief Operating Officer
DIANE BELANGER
Director, Operations (Québec)
What was your first impression of the company?
I thought, “This is insane!” We were loading everything from five-ton trucks to
Ford LTDs, which had the back seats taken out of them. Everyone moved with
a purpose – it was like urgency on steroids. There was no such thing as coffee
breaks or lunch breaks. We ate lunch, drank coffee and took breaks on the run.
We were busy all the time.
What jobs have you done at Purolator?
I started in the billing department in Ville Saint-Pierre in July, 1981. Right away,
I saw the possibility of finding a job at Purolator that I’d really enjoy. I worked
in administration for seven or eight years, and moved into operations in 1990.
My responsibility there was to make sure the correct processes were followed
in each terminal.
And now?
I walked through the Ontario Hub a couple of months ago and that pride and
passion and sense of urgency and commitment is still there. There are no training
manuals for that. This is a culture that’s been created. We’ve come such a long
way from those early days but we still have that entrepreneurial attitude. We have
a lot of bright people, very driven by contribution and results. There’s a sense of
community, a sense of national belonging and a connection from coast-to-coast.
That’s how I learned the operations side of our business, and I knew I wanted to
continue in that field. Soon I became a Dock Manager, followed by Unit Manager,
District Manager, Divisional District Manager and now Operations Director.
Sometimes I have to remind myself of the amazing evolution I’ve gone through!
This company believes in its people.
What keeps you at Purolator?
I have the greatest job in the world. We’ve got Serge Viola, Director Fleet and
Ground Line haul, leading our industry in the adoption of hybrid vehicles and
greening our fleet. Our air operations are amazing. I get a huge rush going to
Hamilton or Vancouver. You see these guys who have worked all day or all night
and it’s cold or wet or raining, but they’ll still stand around and wait to watch the
aircraft depart because it’s so thrilling to see those planes take off.
How is the operation different now than from when you started?
There’s greater visibility of the packages and more communication. The levels of
quality and service the company provides are much higher. Today, we don’t just
think we did something or achieved something, now we know. We can prove our
success and if that’s not the case, we have the tools to fix it.
Our Ontario Hub is this ‘old lady’ who’s getting kind of tired and rundown, but
600 employees think she’s the greatest thing. And because of that, a building that
was designed to handle 80,000 packages per day is now processing over 200,000
packages a day. Our Montreal Hub is the most sophisticated automated sorting
facility in Canada, and the dedicated employees there are so proud of that building
and their accomplishments. How could you work anywhere else?
Mike’s photo was taken on location in Mississauga
Diane’s photo was taken on location in Montreal
40+ YEARS OF SERVICE
CLAUDE DESROCHERS
Courier
BENOIT DESROCHERS
Courier
Claude Desrochers has been with Purolator for 44 years, the longest record of
service for any Purolator driver on the road today. His sons, Benoit and Alain,
have followed in their father’s footsteps. Both are couriers at the Laval terminal
and are establishing impressive driving records of their own. Benoit and Alain joined
Purolator 24 years ago. Between them, the Desrochers family has accumulated
92 years of experience at Purolator.
What attracted you to working at Purolator?
All through my youth, I saw my father work for
Purolator. I was not interested in an office job. I was
interested in the idea of working with the public and
serving people around me.
What was your first impression of the company?
I joined Purolator on December 13, 1966 as a courier and it was like a second
home. Working for Purolator is like working for yourself. We all give our best to
make the company grow.
Is it still your second home?
It has always been like that. We feel as if we are among our family. It is always the
best service that counts. If a new client decides to send a package and it arrives on
time, chances are that within a day or so, he’ll have another two or three packages
to send. Before you know it, he’s sending packages by the truckload…that’s how
business grows!
You have the best driving record of anyone at Purolator.
What’s your secret?
You have to stay alert and anticipate the actions of other drivers and pedestrians.
My goal is to provide the best customer service I can and return to the terminal
safely every day. And with the driving skills and abilities I’ve acquired with
Purolator, I am able to do exactly that.
What do you think about the fact that your two sons work
for Purolator?
I am very happy. Purolator is a good work environment. As soon as the boys got
out of school, they came to me and told me they were interested in working for
Purolator. They saw me work for this company for many years and were excited by
the idea of working for Purolator too.
40
+
What do you think about working with your
brother and your father at Purolator?
It makes me proud…proud to have contributed to
the growth of Purolator in our region. We can see the
tangible impact of our work.
ALAIN DESROCHERS
Courier
What was your best moment working
for Purolator?
Every day of work has been a best moment for me.
I have a good job and I love it. I also love the idea of
following in my father’s footsteps and perhaps even
surpassing them.
How do you like working with your father and brother at Purolator?
I love it. It is certain that our weekend conversations around the dinner table are
about the company. Having the dean of Purolator around the table definitely
means we’ll get good advice, and have good times too.
Claude, Benoit and Alain’s photo was taken on location in Montreal
2010 Annual Review
9
50 YEARS OF THANKS
Purolator is Canada’s LOGISTICS company and
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2010 Annual Review
behind our good name, stand the good names of our employees
2010 Annual Review
11
OUR GUIDING PRINCIPLES
Getting great results is important. It is equally important how we achieve these results and our corporate values provide the guiding principles for this ‘how to’.
Purolator has five new corporate values that guide everything we do. As our organization brings them to life over the days, weeks and years to come –
success at Purolator will mean living these values.
People First
We recognize that our teammates and their families are key stakeholders. We
will only be successful as a business if we provide our teammates with a safe
and healthy workplace and we have the right people in the right roles with the
support they need to succeed. We hire for attitude and train for skills.
Corporate Stewardship
We are all custodians of this great, Canadian institution called Purolator. We must
all strive to make Purolator a better place for our teammates and work together
to strengthen the communities we serve. This requires us to manage our business
ethically and sustainably, being thoughtful of all our stakeholders.
Customer Focus
We can only create long-term, sustainable shareholder value if we deliver
products and services that our customers value and are willing to compensate us
fairly for. We need to give our customers compelling reasons to choose us over the
competition, and we must always be proud ambassadors of the Purolator brand in
our professional and personal lives.
Performance Excellence
We can achieve all of the above only if we work collaboratively, as one big team,
and give our best to each and every one of our teammates. We will demand and
recognize excellence, both in terms of what we achieve and how we achieve it.
Transparency
Trust, a value that is universally cherished, can only be earned and maintained
if we are open and honest with our employees, customers, suppliers and other
stakeholders. Except to the extent necessary to comply with the law or protect
competitively sensitive information, we will ensure that everyone has a common
understanding of where we are, where we are going and how we arrive at
significant decisions.
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2010 Annual Review
2010 Annual Review
13
Honouring Employee Excellence
CIRCLE OF EXCELLENCE
COMMITTED
TO OUR
EMPLOYEES
Employee dedication is not something found on a balance sheet but
it certainly is essential to a healthy one. At Purolator, we appreciate
the efforts and contributions of our employees and honour those top
performers whose dedication to our customers best demonstrates
Purolator’s commitment to service excellence. In recognition of
exceptional employee performance, we are pleased to present the 2010
Circle of Excellence Award winners and President’s Club Award winners.
Adrian Balah
District Manager,
Barrie
Garnet McDonald
District Manager,
Hamilton/Niagara-on-the-Lake
Monty McKay
Partner Services Manager,
Nanaimo
Allie Carson
IT Business Analyst,
Jericho, New York
Jamie Wright
District Manager, Metro West,
Toronto, Ont.
Natallia Smaliuk
Accounting Analyst,
Mississauga, Ont.
André Fabierkiewicz
Project Manager, Facilities,
Mississauga, Ont.
Joe Lombardo
Ground Linehaul Manager,
Mississauga, Ont.
Pietro Di Tomasso
District Manager,
Anjou/Granby/Sherbrooke
Brad Mifsud
Marketing Revenue Manager,
Mississauga, Ont.
Karen Lelli
Operations Manager, Purolator Freight,
Martin Grove, Toronto, Ont.
Sam Hutcheon
Channel Services Support Specialist,
Mississauga, Ont.
Catherine Brown
Human Resources Business Specialist,
Ottawa, Ont.
Kyle Dunbar
District Manager, Regina
Shirley Shields
Product Manager,
Mississauga, Ont.
Denise Roberts
Section Manager, Ground Transportation
Toronto, Toronto, Ont.
Elaine Rudman
Billing Supervisor, Farmingdale,
New York
Éric Pilon
District Manager, Montreal Hub,
Montreal, Que.
Gaétan Vézina
District Manager, Boucherville/
Drummondville/Saint-Jean-sur-Richelieu/
Victoriaville/Tees Road
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2010 Annual Review
Kyle Van De Kraats
Divisional Quality Manager, Metro,
Mississauga, Ont.
Martin Ouellet
Billing Control Business Analyst,
Montreal Hub, Montreal, Que.
Mary Babakos
Communications Consultant,
Mississauga, Ont.
Melanie Cheng-Kai-On
SMB Strategic Planning and
Insights Manager,
Mississauga, Ont.
Stephen Noseworthy
District Manager,
St. John’s, Newfoundland
Walter Vandenboomen
Divisional Manager, Operations Finance,
Dartmouth, Nova Scotia
William El-Khouri
Network Engineering Manager,
Mississauga, Ont.
Yollande Geitz
Business Support Specialist,
Mississauga, Ont.
CITIZENSHIP AWARD
Mary-Ellen DeForest
Quality Manager, Head Office
PRESIDENT’S CLUB
Account Executives
Kimberley Slinn
Burlington, Ont.
US Strategic Account Executive
Ryan Hopp
Central US
Cathy LaPlaunt
GTA East, Ont.
US Major Account Executive
Ozzie Hernandez
Jericho, NY
Carly Caucci
Burlington, Ont.
Erin Coghlan
Edmonton, Alta.
David Carrillo
Burlington, Ont.
Andrew King
Edmonton, Alta.
Denys Croisetiere
Que.
Scott Garries
Edmonton, Alta.
National Account Executives
Brandon Keaveney
Central West
US Branch Sales Manager
Frank Jacketti
Philadelphia, PA
RING CLUB
Cathy LaPlaunt
GTA East
Carly Caucci
Burlington, Ont.
SALES MANAGER OF THE YEAR
MIKE ATTWELL
Regional Sales Manager
Edmonton, Alta.
PRESIDENT’S AWARD
Shubh Mann
National Accounts,
Central Canada
Erin Coghlan
Edmonton, Alta.
Daniel McGauley
Burnaby, BC
Regional Sales ManagerS
Mike Attwell
Edmonton, Alta.
Paul Chess
Burnaby, BC
National Account manager
Frank Figliomeni
Central Canada
Director of Sales
Dean Mills
Pacific
Richard Scott
Central West
Purolator Freight
Chad Irwin
Winnipeg, Man.
Major Account Executive
Daniel McGauley
Burnaby, BC
General Manager
Paul Merrick
Prairies and Pacific
2010 Annual Review
15
ENVIRONMENTAL SUSTAINABILITY
Purolator’s commitment to conducting business in an eco-friendly way begins with its Environmental Policy.
The policy establishes the company’s environmental responsibilities to its customers, employees and community and reflects its commitment to
pollution reduction in all business activities. In reality, this policy formalizes a commitment to being eco-friendly
that we’ve practiced and lived for years. We haven’t been ‘blowing our own horn’ about it, because at Purolator we know it’s just the right thing to do.
Hybrid Electric Vehicles
After testing a prototype in 2003, Purolator became the first courier company
in Canada to make hybrid electric vehicles (HEVs) part of its fleet. Currently,
Purolator’s 405 HEVs constitute the largest such fleet in North America. To
date, the fleet has logged more than 5.2 million kilometres – saving 645,000
litres of fuel and preventing the emission of over 2,100 tonnes of greenhouse
gas emissions.
The insider on the Quicksider
What’s the Quicksider? It’s a battery-operated pick up and delivery vehicle that
is the next big thing in environmentally sustainable fleets. After testing it out in
Toronto, we found it reduced up to 85% of greenhouse gas emissions. This vehicle
was featured during the 2010 Olympic and Paralympic Winter Games, and helped
earn Purolator the Vancouver 2010 Sustainability Star award.
Long Combination Vehicles: here’s the short story
A long combination vehicle (LCV) consists of one tractor pulling two 53-foot
trailers. In association with the Ontario Ministry of Transportation and the
Ontario Trucking Association, Purolator participated in a pilot program to test the
effectiveness of LCVs. In testing on select routes between Toronto and Montreal,
Purolator’s LCVs logged more than 250,000 kilometres – consuming 30% less fuel
than two tractor trailers! To minimize its footprint, Purolator Freight also operates
an LCV between Edmonton and Calgary.
16
2010 Annual Review
We’re pushing the envelope on sustainability
In addition to our fleet initiatives, Purolator is implementing environmentally
friendly technologies and processes including Purolator Express Envelopes,
made from 50% recycled fibres, and Purolator boxes, made from 95% recycled
fibres. We’ve also eliminated carbon paper inserts from domestic manual bills of
lading, and reduced 22 tonnes of greenhouse gas emissions annually.
Lighting retrofits in 37 of our terminals have reduced energy consumption by
up to 40 per cent, improved the amount of available light in our facilities by up
to 30 per cent and reduced greenhouse gas emissions by 1,380 tonnes annually.
Substantial efficiencies were realized in our air operations facilities with the use
of 12 ground power units (GPUs), which are used to supply electricity to aircraft
while on the ground, eliminating the need to run the auxiliary power unit of jet
engines during loading and unloading. This has resulted in a reduction of 2,400
tonnes of greenhouse gas emissions every year.
Planting new routes and new green policies
Ongoing initiatives by resourceful Purolator teams demonstrate what’s good for
the environment is good for business. A case in point is our route optimization
program, which reduces overall distance travelled by our vehicles while
minimizing fuel consumption and emissions. As well, Purolator’s strict
no-idling policy further helps conserve fuel and reduce emissions – better
for our organization and better for the environment.
Hunger for positive social change
It’s the ‘Purolator way’ to cultivate a culture that promotes community-positive values. Our employees energetically embrace this credo
by contributing to the betterment of the communities where they live, work and play.
Hunger is a pressing issue facing every community, and at Purolator we have
adopted it as ‘our cause’. Since 2003, we have partnered with Food Banks Canada
to enhance Canada’s National Food Sharing System. We help by sharing what we
do well: using our expertise in logistics and distribution to move more food to
more people who desperately need it. Through our ability to reach virtually every
destination point in Canada, we are making a meaningful difference in the fight
to end hunger.
Purolator and the CFL Tackle Hunger
Purolator teams up with the Canadian Football League (CFL) to collect nonperishable food items for food banks at CFL games in cities across the country.
Fans have the opportunity to have their picture taken with the Grey Cup at select
games in exchange for their donation. In addition, every time a quarterback gets
sacked, Purolator donates the equivalent of the quarterback’s weight in food to
a CFL hometown food bank. Thanks to the tireless efforts of our employees and
strong support of our customers, the program has helped hold the line against
hunger. Through the eight years since the program’s inception, we have collected
more than 3.7 million pounds of food in support of Canadian food banks. To find
out more about the Tackle Hunger program, visit http://www.cfl.ca/purolator.
people they serve. Posters are displayed in our Retails Centres across Canada,
while employees are encouraged to visit the NHAD website to learn more about
how to help end hunger in Canada. Each year, Purolator employees initiate
projects to collect and distribute food and money to local food banks.
At the community’s service
Purolator’s fully paid Community Service Sabbatical Program grants two
employees up to six months of paid leave to support local charitable
organizations of their choice. The Employee Sabbatical Program is an
opportunity for select employees to build relationships with charitable
organizations within their community – a valuable experience that
Purolator is proud to be able to make a reality.
Raising awareness to reduce hunger
Hunger can be a hidden issue within the community, so every year Purolator
celebrates National Hunger Awareness Day (NHAD) to help increase awareness
and understanding of what food banks provide in our communities, and the
2010 Annual Review
17
GOVERNANCE STATEMENT
Purolator’s Board of Directors is responsible for the stewardship of Purolator.
That stewardship consists primarily of the duty to manage, or supervise the management of, the business and affairs of Purolator.
The Board’s supervisory duties include approving Purolator’s strategy, determining
Purolator’s approach to corporate governance, appointing the President and C.E.O.
and Purolator’s other officers and planning for their succession, monitoring the
effectiveness of Purolator’s compliance controls and risk management practices,
monitoring the integrity of Purolator’s financial reporting, and approving
significant borrowing and other transactions.
In supervising the management of Purolator’s business and affairs, each Board
member is required to act honestly and in good faith with a view to the best
interests of Purolator and exercise the care, diligence and skill that a reasonably
prudent person would exercise in comparable circumstances. Board members
demonstrate their commitment by, among other things, familiarizing themselves
with the business and affairs of Purolator, regularly attending meetings of the
Board and its committees, and actively participating in Board decisions.
While the Board has delegated much of the day-to-day management of Purolator
to the President and C.E.O., the President and C.E.O. is required to keep the Board
18
2010 Annual Review
fully informed of Purolator’s progress towards the achievement of its primary
objective(s), and report all significant facts and changes concerning Purolator’s
business and affairs. If the Board considers it to be in Purolator’s best interests,
the Board may intervene in the management of Purolator’s business and affairs.
Purolator is committed to good governance. To this end, Purolator maintains
a Code of Business Conduct and Ethics which sets out the standard of conduct
expected of all Board members and employees of Purolator, and a Confidential
Submissions Policy (a.k.a. “whistleblower policy”) which allows for the
confidential submission of wrongdoing. In 2010, Purolator implemented a
comprehensive new Delegation of Authority policy which, together with
updates to Purolator’s internal controls over financial reporting, served to further
strengthen Purolator’s internal control environment. Through its governance
framework, Purolator seeks to maintain the trust of all of its stakeholders.
BOARD OF DIRECTORS AND EXECUTIVE TEAM
BOARD OF DIRECTORS
STEWART BACON
Chairman of the Board
Purolator Holdings Ltd.
JACQUES CÔTÉ
Chief Operating Officer
Canada Post Corporation
BONNIE BORETSKY
Vice President, General Counsel,
Corporate Secretary and Compliance
Canada Post Corporation
BARRY LAPOINTE
President and Chief Executive Officer
Kelowna Flightcraft Air Charter Ltd.
Deepak Chopra
President and Chief Executive Officer,
Canada Post Corporation
LOUIS O’BRIEN
Senior Vice President and Chief Customer Officer
Canada Post Corporation
DAVID BURKE
Chief Executive Officer
Stardyne Technologies Inc.
Tom Schmitt
President and Chief Executive Officer,
Purolator Holdings Ltd. and Purolator Inc.
WAYNE CHEESEMAN
Chief Financial Officer
Canada Post Corporation
Mary Traversy
Senior Vice-President, Transaction Mail,
Canada Post Corporation
DENYSE CHICOYNE
Corporate Director
Purolator Holdings Ltd.
SENIOR EXECUTIVE TEAM
Tom Schmitt
President and Chief Executive Officer
Michael Coté
Senior Vice President and Chief Commercial Officer
MIKE BOUCHER
Acting Senior Vice President and Chief
Operating Officer
Deb Craven
Senior Vice President and Chief Financial Officer
John T. Costanzo
President, Purolator International
Dennis Lopes
Senior Vice President, Chief Legal Officer
and Corporate Secretary
Cindy Gorelle
Senior Vice President, Chief Human
Resources Officer
Senior Executive team members as of May 1, 2011.
Executive Support Team
Jim Peeples
Vice President, Engineering & Quality
Chris Faulkner
Director, Human Resources and Labour Relations
2010 Annual Review
19
Purolator Inc.
5995 Avebury Road
Mississauga ON
Canada
L5R 3T8
905.712.1084
1 888 SHIP-123 (1 888 744-7123)
www.purolator.com
© Purolator Inc. All Rights Reserved 2011. The trademark Purolator, Purolator Express, Purolator Freight,
Purolator International, Purolator Tackle Hunger, the Purolator logo and all other trademarks used in this
2010 Annual Review are owned by Purolator Inc.
20
2010 Annual Review
1989
1995
Purolator developed a unique
automated shipping system for
high volume customers consisting
of a computer, scale and printer.
1960
Purolator began operations
on December 5, 1960 as Trans
Canadian Couriers Ltd., a subsidiary
of American Courier Corporation.
With a staff of two, the company
spent its infancy in the heart of
Eastern Canada with restricted
operating licenses for the provinces
of Ontario and Quebec.
Purolator launched its presence on
the Internet at www.purolator.com,
now one of the busiest e-commerce
sites in Canada, processing more
than 350,000 transactions per
business day.
1997
Purolator became the first
Canadian courier company to
offer courier pick up requests
on the Internet.
1987
Purolator introduced an innovative
retail concept in the Canadian
courier industry with the opening
of its first Retail Centre (the first
of its kind in Canada) at Toronto’s
Yonge/Sheppard Centre.
1960
1998
Purolator’s United States
operations were launched
as Purolator USA (now
Purolator International).
2003
2008
Purolator received ISO 9001:2000
registration, which enabled the
company to clearly define its
quality focus and align strategically
with its efforts to deliver superior
customer care.
Purolator’s new E-Ship Server
(ESS) was launched. ESS is a userfriendly, Windows-based standalone operating system, designed
for large customers with multiple
facilities and numerous users.
2010
2004
Purolator provided pick up and
delivery for all documentation and
packages going into and out of the
various Olympic venues, leading
up to and during the 2010 Winter
Games. This included the delivery
of approximately 800,000
2010 Winter Games tickets.
Purolator introduced Purolator
Freight, a premium less-thantruckload (LTL) service.
2005
Purolator became the first
Canadian logistics company to
start the transition to hybrid
electric vehicles.
2010
FINANCIAL HIGHLIGHTS
Purolator was not immune to the 2008/2009 global recession. The good news for 2010 is that with revenue
growth of 4.1%, Purolator continues to hold the largest market share, by revenue, in the Canadian express market.
Purolator Freight and Purolator’s international business segments continue to enjoy strong growth, both in terms
of revenues and profitability.
Revenue from operations
Purolator generated net operating revenue of
$1,493 million in 2010, an increase of $59 million
over 2009. This increase was due primarily to
improved economic conditions but was tempered by
an intense competitive environment.
Revenues in each of our lines of business increased
from previous years. Revenue from Purolator
Freight increased by an impressive 31% from 2009.
Purolator International was affected by a more
severe economic downturn in the U.S. but still
managed a 3.5% increase in its revenue.
Cost of operations
In 2010, the cost of operations totalled $1,421
million, an increase of $40 million over 2009.
As revenues began to recover in 2010, Purolator
focused on profitable growth, obtaining greater
efficiencies from its national network and
leveraging asset utilization across all lines of
business. The company also streamlined its
management team, and reduced ground line haul
costs and air transport costs. Both Purolator Freight
and Purolator International maintained effective
cost controls as revenues increased from 2009.
Capital investment
Investments in technology and infrastructure were
reduced compared to prior years, since significant
infrastructure and customer investments are
nearing completion. These investments in new
service platforms will provide flexibility going
forward to meet our customers’ diverse needs.
Purolator invested $17 million in capital to complete
the migration of customers to a new shipping
system; implement SalesForce.com (a system that
provides Purolator’s sales team with the tool they
need to manage their activities); acquire equipment
to improve scanning consistency; and, implement
various health and safety initiatives. As well, a new
fleet purchase including hybrid electric vehicles was
financed through a capital lease facility in 2010,
bringing the total capital invested to $31 million.
Outlook for 2011
The outlook for 2011 is good - Purolator remains
focused on fulfilling its commitments to its
customers and employees. The company’s objectives
are straightforward: to achieve profitable growth
in all lines of business; leverage further operational
efficiencies; and maintain cost controls. Together,
these strategies will allow Purolator to take
advantage of favourable opportunities as market
conditions improve.
KEY FINANCIAL INDICATORS
$(000s)
Revenue
Total Expenses
Earnings Before Taxes
20102009
1,492,965 1,421,234
71,731
1,433,579
1,380,658
52,921
9.1%
8.4%
Investment in Fixed Assets
31,468
68,729
Cash Flow from Operations
67,528
52,326
Return on Equity*
*Based on monthly weighted average
www.purolator.com
1 888 SHIP-123 (1 888 744-7123)