Maxim Messenger: June 2019
President's Message
Troy Hamilton, President
Welcome to the June edition of our Maxim Truck & Trailer Newsletter that we’re calling the Maxim Messenger. This will replace the video newsletters we’ve been doing for the past number of years with a medium that we think is more interactive and user friendly. As well, we're emailing this to all employees directly to ensure everyone has the opportunity to stay informed. Send us your feedback to webinfo@maximinc.com.
Financial Results
For our sales and financial results, our sales volume ended the year at 8% below forecast and up slightly 3.9% year-over-year. Although our sales were up, our financial results finished 31% behind forecast and down 13% year-over-year. As a sales organization we are happy to report that sales were up, but lower than expected margins in some aspects of our business impacted our net profit.
| Top 3 Performing Branches Overall: | Top 3 Most Improved Overall: |
| 1. Winnipeg Main | 1. Winnipeg Trailers |
| 2. Winnipeg Trailers | 2. Brandon |
| 3. Regina | 3. Prince Albert |
Tereck Diesel
For those of you who may not be aware, Ken Tereck retired on October 31st, 2018. Ken is a great guy and was a valued business partner with Maxim Truck & Trailer. We are thankful to Ken for many great years and we wish him all the best in the next chapter of his life and look forward to catching up with him along the way.
Tereck Diesel’s sales volume finished the year at 7.3% below forecast and was 3.2% down compared to last year. For the financial results the year ended at 25.5% behind forecast and was up slightly at 1% year-over-year.
The Year Ahead
For the year ahead, our focus will be on Customer Relationship Management and maximizing the potential of our approach to sales growth through our Account Managers, sales tools, territory & account management and market segmentation. All of these contribute to our overall sales strategy and I am excited as we continue our efforts for winning new business and conquest accounts in 2019.20.
Wishing you and your families a great summer,
Troy Hamilton
President
Sales, Leasing & Rentals
Ryan Sapach, Vice President of Sales, Leasing & Rentals
It was another year of highs and lows for the Sales, Lease and Rental team. Although our sales increased 5% year-over-year our gross profit did not follow suit and finished below expectation. Our tracking of market segmentation showed the segments that saw the biggest increase from last year were School divisions, First Nations, Transportation and Food and Beverage. Our Brandon branch was the top producing branch for the year. Congratulations to Darin Bouchard and his team for their efforts.There was no shortage of fluctuating economic factors that contributed to a mixed set of overall results. The flat Alberta economy along with the price of oil continued to impact equipment sales in western Canada while competition in the lease & rental business were/are quoting rates below desired industry targets. A fluctuating US dollar that swung between $1.28 all the way up to $1.37 over the course of the year had customers and large fleets think twice about ordering large volumes of equipment.
We had many great wins and highlights from this past year. Our conquest account penetration was up year over year with sales from new customers to Maxim and customers that had not purchased equipment outside of a five year period. Maxim’s 360 sales initiative saw sales from medium and large customers that ultimately offered a warm introduction for more business opportunities with other divisions in our company.
New Trucks
Truck sales met forecast this year and exceeded unit sales vs the prior year and revenue was the highest it has been in seven years. We saw the new International CV land at our dealerships this year and have multiple sold orders already in the system with more on the way. The CV will be a huge addition for Maxim in the coming year as we are now back in the light duty market with this new and exciting truck.
LT model tractor sales have continued to be the top highlight to date. Since it debuted we have sold over 334 units. Our front line sales team has done a fantastic job promoting this truck and getting our customers behind the wheel to experience it themselves. With the owner operator segment shrinking 10% year over year, our sales teams did a good job in capturing owner operator sales this year.
Used Trucks
Our Used Truck team did a great job this year in executing our plan to sell off targeted units identified through our asset management initiatives. For the year ahead, we want to build on the momentum as we continue to work to set ourselves above our competition as a premium Used Truck provider. I’m very excited with the positive trends we are seeing with the Truck division. It’s an exciting time for Maxim as our new equipment has open doors to new opportunities.
Trailers
Trailer sales had solid year exceeding their forecasted gross profit by 11% and finishing ahead of prior year. Great Dane, East and Trout River lines all exceeded forecast and prior year results. Used trailers exceeded forecast along with unit sales ahead of prior year. Our trailer sales team has done a great job with their conquest accounts and finding new opportunities in their markets. I am very excited about the trailer division and the potential for sales growth in the upcoming year. Our teams continue to work hard and get it done and it shows.
Watch Tom's video overview of the East BST Flat Deck Trailer!
Rentals
Rentals finished with revenue above forecast and prior year and the fleet gross profit is trending in the right direction. Our rental managers have worked well to facilitate replacing the older units with new equipment and we are trusting that a positive product experience will create new sales opportunities in the year ahead. Maxim rental units are the perfect lead for getting a customer into our new product and creating that opportunity for a sale.
Leasing
The Leasing division grew the full service lease fleet to over 850 trucks and trailers combined this year. The full service lease continues to bring revenue to multiple departments as we continue to see growth in key markets like Food distribution, medical supply and small to medium transport fleets. Leasing revenue increased year over year but the fleet gross profit finished below our expectations.
Maxim Excellence Club
Maxim Excellence Club saw an increase in winners this year as we had a total of twelve sales reps make the excellence club. I want to thank you all for your hard work and dedication to achieving this honor. Great job to all and well done. Here are the winners:
Ken Bilous
Prince Albert
Mark Carlson
Winnipeg
Bob Hotton
Winnipeg
Scott Kinsman
Winnipeg
Rachid Ouahib
Montreal
Phil Whelpton
Regina
Mark Bilan
Winnipeg
Lindsey Frego
Winnipeg
Shayne Garwood
Winnipeg
Ross Halstead
Calgary
Bill Heuchert
Brandon
Darrel Lewicki
Winnipeg
I would like to thank all the Sales, Lease, Rental team for their hard work this year. I’m excited for our growth in the year ahead and wish you all nothing but continued success as we go forward.
Ryan Sapach
Vice President of Sales, Leasing & Rentals
Parts
Steve Young, Vice President of Parts
For our sales and financial results Parts finished ahead of last year’s Net profit results by 0.5 %. This is eight years in a row that we have grown our sales revenue. We were ahead of last year’s sales by nearly 1%. The growth in sales unfortunately came at lower margins. It is important to keep in mind that expenses need to be a priority and we need to find a way to keep challenging our suppliers for better price and service. For us to continue growing we need to give our customers the best value for their money.
I would like to thank our whole team for their efforts this past year and appreciate everyone’s effort in making this another successful year for Maxim Parts.
| Top 3 Performing Branches for Parts: | Top 3 Most Improved for Parts: |
| 1. Winnipeg Main | 1. Winnipeg Trailers |
| 2. Regina | 2. Calgary |
| 3. Winnipeg Trailers | 3. Brandon |
We had some challenges this year with our Outside Sales team, but fortunately we are moving forward with high quality replacements.
Jaret Besler returns after a three years away and we are excited to welcome him back in his new role. We have a new outside parts rep coming in Brandon with eight years of Navistar experience to back him and have replaced a position in Saskatoon just in time for our new building expansion and re-opening. My optimism is very high for these new members to our team and I cannot wait to see where this year brings us.
Moving forward we will be using GPS and Route optimization to assist our outside sales reps to optimize their time in front of our customers to grow relationships and our share of wallet. I am excited to see where these tools and strategies take us in 2019.2020.
Have a great summer.
Steve Young
Vice President of Parts
Service & Operations
Kyle Cuthbert, Senior Vice President, Service & Operations
My responsibilities include Maxim’s Service Departments across the country, the maintenance of Maxim’s fleet of Lease and Rental Trucks and Trailers and I am also responsible for operational issues related to our facilities. Following is a quick update of how Maxim fared in all these areas last year (May 2018 through April 2019).Service
- Service finished the year with financial results that exceeded last year by 13%
- We achieved these results by the hard work of our approximately 180 technicians in our 190 Service Bays across the country
| Top 3 Performing Branches for Service: | Top 3 Most Improved for Service: |
| 1. Winnipeg Southside | 1. Saskatoon |
| 2. Regina | 2. Winnipeg Trailers |
| 3. Winnipeg Main | 3. Calgary |
- Honorable mention goes to Prince Albert (Kevin Kowalchuk and team) who finished in fourth spot in both categories.
- Great work Branch O! I should also note that we have a new Service Manager at Tereck Diesel (Winnipeg East).
- Randy Baker started with Tereck in October 2018 and we are happy to welcome him to the group.
- Also, Dale Poulin (Service Manager at Maxim Thunder Bay) decided to retire on April 30, 2019 after a long and distinguished career in the industry. We wish Dale all of the best in his future endeavors.
- Dale was replaced by Graham Erickson, who was one of the branch’s top technicians and has decided to take on the challenge of filling Dale’s shoes. We wish Graham and the entire Branch J team all the best.
-
Randy Baker
New Service Manager at Tereck Diesel -
Dale Poulin
Congrats on retirement! -
Graham Erickson
New Service Manager in Thunder Bay
Maxim's Fleet of Lease & Rental Units
- Our Lease fleet grew significantly over the last year (from 697 trucks to 774 trucks – a 77 unit increase)
- The Rental fleet grew by a total of six units (from 95 to 101 trucks)
- Customers who are operating these new units are raving about the product and this bodes well for future fleet growth
- While we did add plenty of new equipment to the fleet, we still have plenty of older units running that are pushing our maintenance costs higher
- Under Gillian Giesbrecht’s leadership, the Central Fleet Maintenance (CFM) Group will continue to work to drive down maintenance and tire costs
- The CFM Group added two new employees last year: Kelly-Rose Diegel in Calgary and Amanda Rusk in Saskatoon. Both of these ladies were already employees in the Maxim system (Service Coordinators/Advisors at Calgary and Saskatoon respectively) and we are confident that their backgrounds and experiences will assist in the management of our fleet in both Alberta and Saskatchewan. We wish the both great success.
- Finally, much of Canada experienced a particularly long and cold winter this past year. I would like to take the time to commend the CFM Group, who spent most of the winter months dealing with breakdowns and making sure our customers’ drivers were looked after through the most challenging of conditions. Well done, team!
-
Amanda Rusk
New CFM Advisor, Saskatoon -
Kelly-Rose Diegel
New CFM Advisor, Calgary
Operations
- We entered negotiations with our landlord in Calgary and worked out a deal which secures us the Calgary facility for another five years with an option to renew. Calgary is an important piece of the Maxim puzzle and we were happy to finalize this agreement, which included some improved financial and operational terms;
- We also negotiated with our landlord in Saskatoon, and along with locking in a 10 year deal; we expanded our footprint in the facility considerably (from under 10,000 square feet to nearly 20,000). Also, as you read this we are well through a major expansion/renovation at our Saskatoon facility and are hoping to host an Open House at our new and improved Saskatoon facility this fall;
Our Saskatoon Branch is nearly doubling in size with current renovations to our office space, extra service bays and parts warehousing & showroom. Renovations are scheduled to be completed by August 2019.
- Our Lowson Crescent (South Winnipeg) Parts and Service location is a key part of our Winnipeg footprint and I am pleased to say we were able to come to an agreement with our landlord to keep operating out of this facility for at least the next 5 years;
- Dan Poulin, our General Manager in Thunder Bay for the last five years, has decided to take a step back from the management duties and concentrate on Truck Sales. Dan is very experienced in this area and we are pleased to have him remain part of the team and help us grow our New Truck market share in Thunder Bay;
- On that note, Darrin Poulin (long-time Parts Manager at Maxim Thunder Bay) was announced as the new General Manager at Maxim Thunder Bay (Branch J) in March 2019. Darrin has a passion for the business and we are looking forward to him sinking his teeth into this challenging and rewarding role. Good luck Dan and Darrin!;
- Lorne Johnston (Maxim Mississauga’s General Manager over the last 16 years) has decided to retire. We would like to thank Lorne for his many years of dedicated service and wish him all of the best in his future endeavors; and,
- Finally, Robert Graham is the new General Manger at Maxim Mississauga and started with us in May 2019. Robert has over 25 years of industry experience and has spent his entire adult life in the transportation industry in the Greater Toronto Area. We wish Robert every success and look forward to him helping Maxim grow its presence in Canada’s largest city.
-
Dan Poulin
Truck Sales in Thunder Bay -
Darrin Poulin
General Manager in Thunder Bay -
Lorne Johnston
Congrats on retirement! -
Robert Graham
New General Manager in Mississauga
Wishing you all a great summer.
Senior Vice President, Service and Operations
Staff Changes at Maxim
Following is a summary list of staff changes at Maxim that are mentioned in this issue’s newsletter:
- Ken Tereck – Retired – GM at Tereck Diesel
- Dale Poulin – Retired - Service Manager at our Thunder Bay Branch
- Lorne Johnston – Retired – GM at Maxim Mississauga Branch
- Darrin Poulin – Promoted to General Manager of Maxim Thunder Bay Branch
- Dan Poulin – Stepped down as GM to take a Sales Role at Maxim Thunder Bay Branch
- Lisa Parent – Hired as Manager of HR.
- Graham Erickson – Promoted to Service Manager at Maxim Thunder Bay Branch
- Robert Graham – Hired as new General Manager of Maxim’s Mississauga Branch
- Randy Baker – Hired as new Service Manager at Tereck Diesel
- Kelly-Rose Diegel – New Central Fleet Maintenance Advisor at Calgary Branch
- Amanda Rusk – New Central Fleet Maintenance Advisor at Saskatoon Branch
- Jaret Besler – Returning as Outside Parts Sales at Winnipeg Branch
Human Resources
Lisa Parent became our new HR Manager as of March 18, 2019. Lisa previously worked with Maxim from 2008 to 2014 in an HR Advisor role. Working with Lisa in HR are:
Brittany Rea is a permanent role as an HR Advisor as of April 15, 2019. Brittany started with Maxim in a temporary role in June 2018.
Reanna Brockman joined Maxim on April 29, 2019 as HR Advisor covering Mae Dobson’s maternity/parental leave. Reanna most recently worked with Lowe’s in their HR Dept being heavily involved in the changeover from Rona to a Lowe’s store.
IT/Systems
The Maxim IT Group is currently working on the largest systems changeover in Maxim’s history – the switchover to Fusion. Fusion Update: Tereck is gearing up to go live with Fusion at the beginning of November, with Maxim following in mid-January 2020. The Fusion team is currently working on configuration and setup, while Tereck employees have already started working on their eLearning. Lots of new features to look forward to.
Maxim’s IT team was recently featured in Toggle Magazine – a US-based trade journal with an IT focus. Read the full article here.
Maxim's Systems Team: Alan Sealey, Grant Sutherland, Samantha Robertson, Shawn Arkle, Shiela Leano, Daulton Tetreault, Maro De Guzman, Bob Carson, Doug Weitkowitz, David Engel, Sol Rosto, & Andrew Correia
Community Involvement
MAXIM TRUCK & TRAILER RAISES OVER $1.5 MILLION FOR CANCERCARE FOUNDATION SINCE 2008
On Saturday June 8, 2019 in Winnipeg, Maxim Truck & Trailer had a team of 68 walkers and volunteers who raised $230,024 for CancerCare Manitoba’s 2019 Challenge for Life event. Maxim has been the top fundraiser for the Challenge for Life event raising $1,527,244 Million since the event’s inception in 2008.
Watch the video all about Maxim's partnership with Challenge for Life
RELAY FOR LIFE - CANCERCARE CANADA (Calgary)
LIVE DIFFERENT PARTNERSHIP
On June 24, 2019 Maxim officially became a supporting partner of Live Different.
Live Different was established as a Canadian charity in 2000. They are passionate about making a difference in people’s lives through their youth empowerment presentations. Maxim has partnered with Live Different to support their work in Indigenous Communities across Canada which is focused on bringing hope to youth in First Nations communities. Watch for more info on this partnership in the coming year.
Troy Hamilton presents a cheque to Charles Roberts (right), Executive Director of Live Different.
Lightning Round
With almost 600 employees spread across 17 branches from Vancouver to Montreal, it's hard to know everyone at Maxim. Each issue we feature two employees answering our fun Lightning Round questions so you can get to know Maxim employees from other branches. Be ready for when your turn comes for the Lightning Round.
Lightning Round Questions fired at Andy Dubourt in Prince Albert!
Lightning Round 2: Chris Pichette in Prince Albert
