ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING THE FAIRMONT PACIFIC RIM, VANCOUVER CONTENTS PAGE NO. ATTENDANCE RECORD ............................................................................ 2-3 IN MEMORIAM ............................................................................................ 4-5 PRESIDENT’S OPENING ADDRESS .......................................................... 5-8 INTRODUCTION OF NEW MEMBERS AND GUESTS ............................... 9 PROXIES ..................................................................................................... 9-11 ACCEPTANCE OF MINUTES OF 2012 ANNUAL GENERAL MEETING .... 12 REPORTS OF THE REGIONAL VICE-PRESIDENTS ................................. 12-20 REPORT OF THE TREASURER ................................................................. 21-22 APPOINTMENT OF THE AUDITORS .......................................................... 22 ADJOURNMENT OF ANNUAL GENERAL MEETING ................................. 23 SPECIAL GENERAL MEETING ................................................................... 23 ADJOURNMENT OF SPECIAL GENERAL MEETING and RECONVENING OF ANNUAL GENERAL MEETING .................................. 24 RATIFICATION OF THE NATIONAL BOARD OF DIRECTORS .................. 24-25 ANNOUNCEMENT OF THE EXECUTIVE COUNCIL .................................. 25 REPORT OF THE LEGAL ADVISOR........................................................... 26-30 CONFIRMATION OF ACTS ......................................................................... 30 INVITATION TO THE 2014 ANNUAL GENERAL MEETING ....................... 31 SITE SELECTION OF THE 2016 ANNUAL GENERAL MEETING .............. 32 INCOMING PRESIDENT’S ADDRESS ........................................................ 32-38 NEW BUSINESS .......................................................................................... 39 ADJOURNMENT .......................................................................................... 39 1 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING ATTENDANCE RECORD * Voting Members Name of Company Representative Ami-Co Inc. Ami-Co Inc. Backstage Commerce Backstage Commerce Belmont Takara Co. Canada Ltd. Belvedere USA Belvedere Co. Canada Inc. Cantin Beauté Ltée. Colomer Canada, Ltd. Concept JP Inc. Concept JP Inc. Concept JP Inc. Cosbec Dannyco Trading Dannyco Trading Dermalogica (Canada) Ltd. DWA (2010) Ltd. DWA (2010) Ltd. DWA (2010) Ltd. ESP Salon Sales ESP Salon Sales ESP Salon Sales First Lady Coiffures H&R Agencies Harco Publishing H. Chalut Ltée Icon Salon Systems Icon Salon Systems Images and Shades Cosmetics KAO Canada Ltd. KAO Canada Ltd. Kingdom Beauty Kirschner Group Kirschner Group KQC Beauty KQC Beauty Lanvain Design Inc. Lanvain Design Inc. Les Produits Cosbec Inc. L’Oréal Professionnel * Ms. Sophie Ouellette * M. Bruno Rochette * Ms. Tina Christopoulos M. Elie Andrea * Mr. Tom Traves Mr. Horst Ackermann * Mr. Jerry Grossi M. Eric Bouchard * Mr. Jim Amos Ms. Catherine Blanchard * M. Frederic Perron * M. Sebastien Perron * M. Martin Pressault M. Dave Basi * Ms. Sharona Bilek * Ms. Melissa Daniels * Mr. Stephen Pavlick Ms. Jeannine Pavlick Mr. David Wickes * Mr. Harvey Peterson * Ms. Sharon Sharpe-Titus * Mr. Gerry Titus * Ms. Lillian Sciara * Ms. Karen Yuen * Ms. Joan Harrison * M. Alain Jacquaz * Mr. Art Erickson Ms. Margaret Erickson Ms. Grace Barrett * Mr. Brian Ahrens * Ms. Tracy Mercier * Mr. Randy Chan Ms. Suzanne Lapierre Mr. Danny Thournout Mr. Van Hong * Mr. Kelly Wong M. Philippe Dubuc * M. Sylvain Emond * Mme. Lise Ward * Ms. Judi Lee 2 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Attendance Record (Cont’d.) Name of Company Representative Maritime Beauty Supply Co. Ltd. Maritime Beauty Supply Co. Ltd. Matrix Canada modProducts Oligo Professionnel OTC – Artego/Pivot Point OTC – Artego/Pivot Point P&G Salon Professional (Wella, Sebastian, Nioxin) P&G Salon Professional Piidea Canada Ltd. Redken 5th Avenue N.Y.C. Salon Communications Inc. Salon Communications Inc. Samurai Inc. Samurai Inc. TLC Sales & Distribution TLC Sales & Distribution Tressa Inc. Venus Beauty Supplies Wahl Canada Inc. Wahl Canada Inc. * Mr. Peter Alexander * Mr. Maurice Doucet * M. Vincent Lemieux * Mr. Amer Jomaa * Mr. Raphy Cohen * Mr. Dino Cairo Mr. Jeff Louis * Ms. Elise Massicotte M. Mario Theoret * Ms. Nathalie Leroux * Mr. Quoc Chay * Ms. Laura Dunphy Ms. Jade Bateman * Mr. Frank Walker Mrs. Shirley Walker Ms. Leslie Love * Mr. Al Peters * Mr. Kevin Rennie * Mr. Vince Riverso * Mr. Aldo Gemmiti Mr. Brian Harnett **************************************************************************************************** Maclaren Corlett LLP Mr. Gordon Greenwood Allied Beauty Association Allied Beauty Association Mr. Stephanie Gadbois Mrs. Susan Solomon 3 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING FRIDAY, JUNE 14, 2013 Mr. Martin Pressault, the President of Allied Beauty Association, called the Annual General Meeting to order at 9:10 a.m. Mr. Pressault asked Mr. Gordon Greenwood to say a few words about a very important member, probably the oldest member that we had in our association. Mr. Gordon Greenwood In Memoriam We are talking about Kevin O’Regan Sr. We are talking about someone who passed away last night. I’m not sure if our L’Oréal friends knew about that. I do want to talk about him obviously from the heart: but we are going to mourn for Kevin Jr.; we are going to mourn for Angie; we are going to mourn for the girls; we are going to mourn for the grandchildren; we should mourn for ourselves because we have lost a good friend. We talk about the ABA being more than just shows. Kevin Sr. has been Treasurer and President of Allied Beauty Association as has his son, Kevin Jr. Never have they participated in an ABA show so to them the ABA was always more than just shows. Why did they not participate in the show? Because they are in Newfoundland and they had respect enough for the contracts that they had with their manufacturers and for the distributors who were on the mainland, for their dear friends Maurice Doucet and Anne. I cannot emphasize the words ‘dear friends’ any more than by saying that. They are terrific people. The O’Regans have given more to this industry than I believe any other single family. And you ask yourself “Why did they do this? Why did Kevin become President? Why did the other Kevin become President?” Because they believe in the professional beauty industry. They believe in the friendships that exist and are created throughout this industry and they personified it every single day. If he knew that you were a member, that you were a beautician, that you were a nail tech, that you were a hair stylist, that you were a distributor, that you were just starting up, you were part of his family. They had so much love to share with everyone else, but more than anything else, he was a gentleman. He gave respect and we respected him. So we will mourn his loss, we will mourn for the family, but to Kevin in heaven please raise your glasses and say with me “Sociable”. Hopefully we will see you next year in Newfoundland to respect his memory. Thank you. Mr. Pressault said there would be remembrance of members lost in the past year followed with a moment of silence. I would like to start with René Vincent who passed away in Prescott, Ontario about a month ago. As your Executive Director from 1976 to 1992, René may have been better known to many of your parents. Even after he retired, he remained a friend of the ABA 4 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING In Memoriam (Cont’d.) and its members. We knew never to call René French because he would soon correct you. He was Belgian. His friends will miss him. The industry has lost a good friend. Le 13 février dernier, M. Armand Bédard nous a quitté a l’âge de 94. Ex-président de la maison distribution Bédard Coiffure de Québec, M. Bédard fut un des premier membre a supporté activement l’ABA et a établir les bases solide de notre association. Also passed away on the Saturday of the Toronto ABA Show last March, Philip Capobianco who was in the hair and beauty industry for over 35 years as an awardwinning artist, hair stylist, salon owner, and more recently as the creative and technical manager for Colomer Canada, Ltd. Over the years, he was an inspiring mentor to countless stylists around all the industry. Philip, we and all the industry will miss you. Nous avons aussi un autre ami qui n’était pas membre de l’ABA mais il était très connu à travers notre association et aussi de l’industrie. Stéphane Lefebvre nous a quitté le 14 septembre dernier à l’âge de 53 ans. Il a fondé l’entreprise de succès. J’ai trouvé qui fabriquait et faisait la mise en marche des papiers Kwikway. Grand artiste, créateur, et visionnaire, Stéphane a démontré à l’industrie qu’il était possible de prendre une idée et d’en faire un succès mondiale. Stéphane, ta présence restera gravé dans nos cœurs et dans notre mémoire. Je vous demande de prendre une minute de silence en mémoire de nos amis et membres qui nous on quitté. Merci. Mr. Martin Pressault Opening Address by the President Opening Address Deux ans auparavant mon mandat débuta à Halifax où le soleil se lève. Il se termine aujourd’hui à Vancouver où le soleil se couche. Vancouver une ville magnifique, un superbe hôtel, un décor enchanteur et surtout entouré de gentils membres vraiment agréables. Wow! Je vous remercie pour votre participation à la réunion annuelle de l’ABA 2013. The organizing committee put a lot of effort to create a new and different AGM. They had to compose with a tight budget, which was a challenge especially in a beautiful but expensive city like Vancouver. Susan, Stephanie and Tracy thank you for everything you have done. Last night was a great evening – the food was good, the choice was excellent and we are looking forward to this evening and meeting with James Bond. We asked for a new AGM and this is what they offered to us. A different AGM. Thank you very much for all that you have done. 5 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Martin Pressault Opening Address by the President (Cont’d.) Now I would like to start by giving you, without going into details, a few highlights of the last 12 months. As you know, we almost built a new office with new staff members. In the last 13 months we hired Susan, Sabrina, Samantha, Rachel, plus we got the chance to have Stephanie back with us bringing back to the office her knowledge and experience. We put in place an internal system to increase control over expenses of the association with Sabrina and our new team of Treasurer and Assistant Treasurer, Kevin O’Regan Jr. and Aldo Gemmiti. The introduction of posting items on the Cloud brought us more transparency into the association. We introduced a new category of members, the cosmetologist, with CABA. We have started to sign new members and we are still learning as we go along. We started building very strong links with PBA (the Professional Beauty Association), our US counterpart. They have impressive amounts of information, good practices and we continue to exchange a wide range of possibilities between our two associations. It is very positive to be linked with them because it will bring a lot for the future to us and also to them. We also continue to grow our privileged relationship with CCTFA during the last year. We implemented in Toronto and Edmonton bar coded tickets. We generated a database to communicate with professionals. In the long run, these new procedures will reduce the pressure on the DSCs to sell tickets and bring us many marketing possibilities. You saw yesterday the proposed major By-Laws changes. This is the first step to a brand new ABA. An association of today that will meet today’s needs. An ABA that will represent the entire industry. An ABA controlled by their members. The shows brought up few important challenges. Since 2011 we went from 8 shows in 7 divisions to 4 shows in 3 divisions. Reduction in manufacturer classes. Attendance going down. Members in division with no shows are dropping their membership. Large distributors moving out from our shows and their reps are now working against the association. During the last year, the ABA went through many changes, important challenges and we implemented new initiatives. I can qualify this period as a transition year. We had one foot in the past and the other one in the future. It is the transition to a new association. The mere show organization we once were is over. Do you remember at the AGM 2007 in Montreal Art Erickson, our President at the time, was saying: ‘’For the first time in many years, the government has actually recognized the ABA as the voice and the face of the professional beauty industry.” 6 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Martin Pressault Opening Address by the President (Cont’d.) What does it mean to the ABA? With this recognition comes some greater responsibility, not just to represent the manufacturers and distributors, but also salon owners, stylists and estheticians.’’ Six years ago, ABA put down the stepping stones to evolve from a distributors/manufacturers shows association to a real industry association. Aujourd’hui nous n’avons plus le choix. Nous devons accepter cette responsabilité tous ensemble que l’ABA évolue vers une association représentant l’ensemble des intervenants de la beauté professionnelle. Je n’ose imaginer que notre industrie pourrait se retrouver un jour sans association. Ce serait désastreux pour nos 250-260 membres qui se verraient isoler. En groupe nous représentons une force - seul nous serions affaiblis. Oui l’ensemble de l’industrie professionnelle serait affaiblie. Lors de nos salons/congrès nous générons du momentum à l’ensemble du domaine de la beauté. Pensez aux dossiers traités de concert avec la CCTFA, avec Santé Canada, Environnement Canada ou concernant les ingrédients possiblement présent dans les formulations des produits de nos membres. Plus que jamais nous devons nous unir. Nous devons créer et supporter l’ABA de demain qui fera la promotion des services de beauté professionnels et défendra les droits de notre industrie. Une association qui représentera tous les acteurs de l’industrie. Une association qui sera dirigée par ses membres. La priorité de l’ABA ne sera plus les salons/congrès. Ils seront seulement un moyen et non le seul de financer nos activités. Le terme ‘’association’’ signifie: participation; collaboration; coopération; groupement de personnes; en vue d’un but précis. Au cours des prochaines années, je vous enjoins à offrir vos services à titre de directeur, membre des comités salon, membre de comité sur un sujet précis. Notre industrie regorge de connaissances et de talents dans différents domaines (web, media sociaux, finances, systèmes informatiques, communication, education). Je vous enjoins d’offrir votre participation. C’est dans notre intérêt à tous de faire de l’ABA une association forte avec comme but précis de promouvoir la croissance de l’industrie de la beauté professionnelle. Les 2 dernières années m’ont aidé à comprendre l’importance de l’ABA dans notre industrie. Les fondations de l’association sont solides. Notre réputation est enviable. Nos finances sont saines. Nous avons tout entre les mains pour créer l’association que nous désirons tous. C’est deux dernières années mon permis de côtoyer et découvrir plusieurs personnes que j’aimerais remercier: 7 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Martin Pressault Opening Address by the President (Cont’d.) o les membres du Board des directeurs pour leur support et leur participation aux précisions de l’association. o Al Peters, the most dedicated person to the ABA. During the last 6 years, he worked more hours for the association than for his own company. Al, I will never thank you enough for all you did in my presidency. Thank you my friend. o Gordon Greenwood, there are some people that are always right and I have to say that Gordon is one of them. He is like a teacher, teaching every 2 years to the new President the ins and outs of the position. When the President is fully trained, he is starting with a new one. You are, Gordon, the pillar of the ABA. Thank you for your vision, wisdom and advice. o Stephen Pavlick, you are the fastest growing President that I know. Stephen will be a good President to the association. He is the right person at the right time. He has a good heart, not afraid to make decisions and put them into action. Stephen, I wish you the best for the next two years. o I would like also to thank our Treasurer and Assistant Treasurer who are very dedicated to the association, Kevin O’Regan Jr. and Aldo Gemmiti. With Sabrina you are a dream team. Thank you for everything you are doing. o Our Executive Director, Susan Solomon. It was a long year Susan but you managed to learn the details involved in this position. Thank for you for your help and constant support during the last twelve months. o And last but not least, our office team, Sabrina, Stephanie, Samantha, Lynne and Rachel. They worked very hard in this period of transition to implement many changes that were put in place. Thank you for your dedication to the association. And I would like to thank all of you for being at this AGM. You are the real supporters of this association because I have to tell you all my years with the ABA, I see always the same faces and it makes me proud. We have new members joining us every year but you are also showing me that we are evolving in the right direction. Thank you very much for being with us and I really believe that in the future we can all do something very important, each of us, and that is to speak with the other members of our association that are not present and are not involved and who might not understand the importance of this association. We have to fight and we have to work all together to make sure the association will grow and will grow strongly in the future. There is really a need for a body, an association like us. If you can, just talk to a few people. We are like 70 people talking to two or three people to really convince them to come and join us. Thank you for all your support. Mr. Martin Pressault called upon Ms. Susan Solomon to introduce the new members and guests. 8 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Ms. Susan Solomon Introduction of New Members and Guests Ms. Solomon introduced the members and guests who were attending the ABA Annual General Meeting for the first time: Karen Yuen Suzanne Lapierre Van Hong Kelly Wong Judi Lee Grace Barrett Dany Jaber Harvey Peterson Bryan Harnett Helen Harnett Elie Andrea Catherine Blanchard Frederic Perron Dave Basi Sharona Bilek Philippe Dubuc Quoc Chay H&R Agencies Kirschner Group KQC Beauty KQC Beauty L’Oréal Professionnel Images and Shades Cosmetics modProducts ESP Salon Sales Wahl Canada Inc. Wahl Canada Inc. Backstage Commerce Concept JP Inc. Concept JP Inc. Dannyco Trading Dannyco Trading Lanvain Design Inc. Redken 5th Avenue Filing of Proxies The President then requested that Ms. Susan Solomon read the list of proxies which had been submitted to the office of Allied Beauty Association or otherwise filed before the meeting. Susan called for the filing of any additional proxies, then recited all Proxies granted: Stacey Johnson (Esthetics Plus) Appointed Dino Cairo Audrey Smith (Andis Company) Appointed Randy Chan Michel Blouin (Beauty 4 Business Inc.) Appointed Raphy Cohen Kevin O’Regan Jr. (O’Regan Agencies Ltd.) Appointed Maurice Doucet Michael Murphy (Central Beauty Supply) Appointed Aldo Gemmiti 9 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Filing of Proxies (Cont’d.) David Kaufman Appointed (Toronto Barber & Beauty Supply) Aldo Gemmiti Jean-Luc Sabourin Appointed (H. Chalut Ltée - Ameublement) Alain Jacquaz Mike Jomaa Appointed (Modern Beauty Supplies Inc. – BC, AB, AB, ON) Amer Jomaa Doriane Dalati Appointed (L’Oréal Professionnel – ON, QC, QC; Pureology) Vincent Lemieux Jack Ingraham (Redken 5th Avenue) Vincent Lemieux Appointed France Bourdon Appointed (Beauté Star-Bédard Inc. Québec) Nathalie Leroux Gaetan Bourdon Appointed (Beauté Star-Bédard Inc. Montréal) Nathalie Leroux Marie-Christine Bourdon Appointed (Beauté Star-Bédard Inc. Ameublement) Nathalie Leroux Marie-Danielle Bourdon (Professionnel by Fama) Appointed Nathalie Leroux Jocelyn Ouellet (Capilex Beauté QC) Appointed Nathalie Leroux Jamie Huddleston (Piidea Canada Ltd. (ISO) Appointed Nathalie Leroux Maria Martins Appointed (Piidea Canada Ltd. (Joico Labs) Nathalie Leroux Mike Miller (Piidea Canada Ltd. (Quantum) Nathalie Leroux Appointed Mike Khalil Appointed Stephen Pavlick (Hi-Chic Hair Extentions, Hi-Tech Beauty Supplies Ltd. – AB, AB) Sean Coyle Appointed (Alternative Beauty Services Ltd.) 10 Al Peters ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Filing of Proxies (Cont’d.) John Costanza Appointed (Beauticians Beauty Systems – BC, SK, MB, ON; Jaguar Beauty Systems Limited – ON; Monarch Beauty Systems – BC, AB, SK, MB, ON; Obsco Beauty Systems – AB; S.S. Keddy - ATL) Al Peters Todd Gould Gould Beauty Systems Appointed Al Peters Susan Keddy (Eastern Esthetics) Appointed Al Peters Doris Tan Appointed (International Beauty Services – 2 for AB) Al Peters Jean-Paul Hetu (Guay Beauté Inc.) Martin Pressault Appointed George Civello Appointed (Aveda, Collega International – BC, AB, ON) Vince Riverso Reuven Politi (Elin Bianco Inc.) Appointed Vince Riverso Maria Gallo (Framar International Inc.) Appointed Vince Riverso Harlan Kirschner (Kirschner Group) Appointed Danny Thournout Giselle Gereige (Advance Beauty & Esthetic) Appointed Frank Walker Craig Barton (CanRad Beauty Limited) Appointed Frank Walker Harold Kilimnik (Global Upholstery) Appointed Frank Walker John Nikolau Appointed (Maliderma Natural Solutions and Nisim Intl.) 11 Frank Walker ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING With the votes and the proxies in, Susan Solomon declared the Annual General Meeting to have a quorum. Acceptance of the Minutes of the 2012 Annual General Meeting Mr. Pressault called for a MOTION to accept the Minutes of the 2012 Annual General Meeting. Mr. Frank Walker MOVED acceptance of the Minutes from the 2012 Annual General Meeting. Mr. Kevin Rennie SECONDED the MOTION. Discussion. All in Favour. Opposed. MOTION CARRIED. The President called on the Regional Vice-Presidents to present their reports to the delegates. Reports of the Regional Vice Presidents Mr. Pressault called upon Mr. Stephen Pavlick to present the reports on the British Columbia and Alberta Division shows. Report from Mr. Stephen Pavlick, VP British Columbia and Alberta Division “Good morning, everyone. I have two shows to report: Edmonton ABA and Calgary ABA so I will start with the Calgary ABA. CALGARY 2012 I am pleased to declare that the 2012 Calgary ABA show held on September 30th and October 1st was a success on many fronts! Expenses were up considerably, with the hiring of Tabatha Coffee, for the two days of main stage presentations. Tabatha drew well at both 9:00 am morning presentations, Sunday and Monday, and most certainly had an impact on ticket sales. Total ticket sales in 2012 were 4485, compared to 4,214 in 2011, up over 5%! A show which is up in attendance... wow! Good old Alberta. Congratulations to Modern Beauty for top ticket sales. The key to any success in Canada is not the location, the time of year, the featured artists, etc. It is a simple formula and that is every distributor participating and the manufacturers they represent there supporting them. Calgary ABA Show was "THE PLACE TO BE". This resulted in record booth space allocated, and increased ticket sales, truly an ALLIED effort. 12 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Report from Mr. Stephen Pavlick, VP British Columbia and Alberta Division (Cont’d.) The Competitions were also up 35%, with 52 overall competitors this year versus 34 last year! We additionally had 23 participate in the Master Judges Program and 16 competed in the CityLine Competitions. As for the Alberta Division, we held a show meeting on the Monday morning, commencing at 9:30 am. Over 30 Members turned up for a 45-minute meeting to give their input, criticism and a bit of praise! Just to highlight a couple points from this show meeting: Susan is asked to clean up the entrance to our show, both in Edmonton & Calgary for the 2013 shows, and make sure it is a GREAT first impression as our cosmetologists walk in. We cannot book any manufacturer on the Aesthetic Stage the same time as the Main Stage is presenting. It was too much for them to compete so we made fair note of that. Overall the comments were positive and everyone was very pleased. The 2012 Calgary ABA Show resulted in a surplus in excess of $96,000.00! An ABA Show this successful does not happen by accident. A Pre-Show Meeting was held five months prior to the Calgary ABA Show. Plans were made and set in motion with no less than three committees assigned: a Competitions Committee; an Investigating Committee; and an Aesthetics Committee who all worked together to promote the show to ensure the ABA Show Rules and Regulations were strictly enforced. We also created a plan to elevate the awareness on the street, and create excitement and hype leading up to the Calgary ABA Show. Post Cards were printed depicting "TABATHA is coming to Calgary", and they were sent to every distributor to be included in warehouse shipments and for their sales reps to drop off in the salons and spas. The message was clear - "TABATHA is coming to Calgary" and the "Calgary ABA is THE place to be". Thanks Samantha for helping out with all the graphic arts on the posters and the post cards and the ABA Office for all their support and it was Susan's first official show with excellent results so we thank Susan for all of her support. Mr. Stephen Pavlick called for a motion that the Calgary report be accepted and seconded. Mr. Al Peters MOVED acceptance of the report. The MOTION was SECONDED by Mr. Bruno Rochette. A vote was called. MOTION CARRIED. 13 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Report from Mr. Stephen Pavlick, VP British Columbia and Alberta Division (Cont’d.) Amer, I am going to wait because you have another award coming and we’ll do both at the same time so it will save you two trips. EDMONTON 2013 The 2013 Edmonton ABA was held in the Edmonton Expo Centre (Northlands), April 28th & 29th. Prior to this show, on December 4th, 2012, we held a show meeting to start the planning procedure. There were seven Alberta members present in this meeting, one via conference call, plus our Executive Director Susan Solomon. I would like to thank those members who got involved: Doris Tan, Mike Khalil, Limor Luzon, Dave McMahon, Amer Jomaa, and Dino Cairo. Without your help and input, this show could not have been a success. Martin Parsons was on our Main Stage and performed the Sunday and Monday. We also had Lauren Gartland and Charles Marcus as guest speakers, plus Charles did a tribute to Vidal Sassoon on Sunday. The ABA made a couple of classrooms available to the members for classes and seminars, and these were booked solid and well used. This was an excellent professional show with lots of education for all walks of our cosmetologists. We held seven competitions and all were well attended with excellent enrollment. Don Grills as usual conducted the Master Judges Seminar. This was the second show in Canada to have bar-coded Tickets, Toronto being the first. This restricts entry to qualified cosmetologists and eliminates or certainly reduces the opportunity for non-professionals to attend our show. Revenue was down at this year’s show, but so were our expenses. We negotiated hard with our guest speakers and Main Stage presenters but we did not have the major expense of Tabatha Coffee, as we did last year in Edmonton. The CABA Booth was front and center and we did sign some new members and created interest for future enrollment. Overall, when all was said and done, our profit was up by $6923.74 compared to the previous year and yet our tickets sales were down 14%. We had ticket revenue of $173,183.59 vs. $201,933.39 in 2012. 14 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Report from Mr. Stephen Pavlick, VP British Columbia and Alberta Division (Cont’d.) I would like to congratulate Modern Beauty Supplies for top tickets sales for the 2013 Edmonton ABA Show! The ABA office, as usual, was a big help in supplying post cards and teasers to help promote this show. Thanks to Susan and her staff for a job well done! Mr. Stephen Pavlick called for a motion that the Edmonton report be accepted and seconded. Mr. Aldo Gemmiti MOVED acceptance of the report. MOTION was SECONDED by Mr. Lise Ward. A vote was called. MOTION CARRIED. I would like to ask Amer Jomaa to come up here to accept the awards for top ticket sales for both Calgary and Edmonton. Mr. Martin Pressault then called upon Mr. Vince Riverso, Vice President of Ontario to present the Ontario Show Report. Report from Mr. Vince Riverso, VP Ontario Division I am pleased to announce that the 2013 Toronto show was a financial success. This year we reverted back to a combined show floor (having cash and carry and demonstration booths combined in the same area). This change to the original concept seemed to be embraced by all distributors, manufacturers and esthetic companies. Our attendees seemed pleased to have the floor combined. It was easier to see the demonstration and immediately purchase the products. It was also easier for the exhibitors to manage their booths with personnel. The show floor, although not completely sold out, looked quite full and inviting. We had eight classrooms, each showcasing some of the latest trends in hair. The presentations were well attended both days of the show. The remaining show floor had a compact feel this year as we tightened up last year’s wider aisles. This was the first ABA show in Canada to introduce the Conexsys Registration System. All distributors and DSC’s encouraged stylists and salon owners to pre-register their tickets online before arriving at the MTCC. I am pleased to announce that the longest wait time at the registration area on March 24th and 25th was about 10-15 minutes. The people were well directed and the Conexsys team worked quickly to move everyone through the new registration process. Registration enabled us to generate a 4,500 name database. This will now enable the ABA to send out e-blasts regarding upcoming shows as well as share pertinent information with attendees, i.e. new courses being offered, events, etc. 15 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Report from Mr. Vince Riverso, VP Ontario Division (Cont’d.) There were no formal seminar speakers. Instead we offered the rooms on the 700 level to manufacturers, distributors and esthetic companies to run their own classes. KAO, Milano Software, and Salonware Software took advantage of this opportunity and ran classes on both days. Our attendees appreciated the one on one instruction that these classes provided. Jeremie and Pascal Inc. produced a theatrical production with some of our classroom stage talent on the Main Stage. The show was quite spectacular and almost packed the room. That took place at 5:00 p.m. on Sunday after the show. Once again, the competitions were well attended and always seem to create a buzz at the Toronto show. Six competitions were run over both show days. Don Grylls and his team also ran the Master Judges Program which drew 32 people. Financially, the show was a success even though we came in a little under our target. It produced a surplus of $175,578.17. We had 8410 attendees, which translated into a 14% decrease in attendance. Several factors attributed to the decrease: 1) The new Conexsys system put onus on the ticket purchaser to validate their ticket proving that they were actually in the industry. 2) Fewer distributors exhibited this year resulting in fewer DSC’s promoting the ABA Toronto show. Overall the 2013 show was successful, yet we are aware that there is still a need for change and improvement. Many thanks to Susan, Stephanie and all the ABA staff who continue to work tirelessly to help us accomplish our objectives. We are looking forward to a successful 2014. Mr. Vince Riverso called for a MOTION that the 2012 Ontario ABA Show Report be accepted as read. Mr. Frank Walker MOVED for acceptance of the Ontario Show Report. Mr. Art Erickson SECONDED the MOTION. A vote was called. MOTION CARRIED. Mr. Vince Riverso announced the award for highest ticket sales to Beauticians Beauty Systems. Mr. Riverso will present it to Mr. John Costanza when he returns to Toronto. Mr. Martin Pressault then called upon Ms. Nathalie Leroux to present the Québec Show Report. 16 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Report from Ms. Nathalie Leroux, VP Québec Division Il me fait plaisir de vous présenter le rapport du Salon de la Beauté 2013 de Montréal. À Montréal, les 10 et 11 mars dernier, l’industrie de la coiffure nous a offert, encore une fois cette année, des plateaux éducatifs et artistiques de très haut niveau et très dynamiques. La qualité était la, le savoir-faire et l’inspiration étaient présents, au plus grand plaisir des stylistes et des étudiants en coiffure. Un total de 7369 professionnels de la beauté sont venus au congrès de Montréal; 4208 dimanche et 3161 lundi, une baisse de 9% versus 2012. Nous attribuons celle-ci principalement à l’absence de certains participants majeurs et à une diminution de la vente de billets en prévente par les représentants. Ce fut également la première année ou les billets furent disponibles en ligne – 40 billets ont été vendus par ce médium. Est-ce que la baisse de participation est un ajustement de certains coiffeurs à une économie difficile? Ou la disponibilité d’un grand choix de congrès pour les coiffeurs du Québec? Ou une certaine diminution des étudiants en coiffure en général? Bonne question… ***À cet effet, un meeting brainstorming avec le comité du Québec et certains membres de l’industrie est organisé la semaine prochaine. Sujet : Comment innover et attirer une nouvelle clientèle à l’ABA de Montréal. Ceci dit, le plancher du Palais des congrès représentait très bien notre industrie tendance et les commentaires furent très positifs autant de la part des stylistes, des distributeurs que des manufacturiers présents. Cette année, et pour la 3ième année consécutive, fut la présentation de plateau Tendance Mode 2013; une présentation orchestrée par un comité créé pour l’événement avec la participation de: Tina Christopoulos, Yasmin Grothe, Ann Bois, M. Léopold Bissonnette et moi-même. Nous avons mandaté une nouvelle animatrice reconnue dans le milieu de la mode et tendances artistiques, soit Geneviève Borne qui a su attirer un nouvel intérêt auprès des divers médias et des définitivement des coiffeurs. Notre focus et message fut autant sur le congrès de l’ABA en général pour le faire connaître auprès des consommateurs, que sur la soirée Tendance Coiffure -Mode. Nous avons également mis une plus grande emphase sur les artistes coiffeurs et moins sur le designer-mode, tout en ayant un show mode très animé. Cette année, le renommé Denis Gagnon fut le seul designer présenté. Tendances jour (tout-aller) et avant-gardistes en deuxième tableau. Nous prévoyons poursuivre la formule en 2014 avec encore plus d’animation visuelle démontrant les réalisations de nos artistes-coiffeurs aux stylistes, aux étudiants et 17 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Report from Ms. Nathalie Leroux, VP Québec Division (Cont’d.) même aux consommateurs par le biais d’une invitation toute spéciale à travers les médias et journalistes tendances mode. Les compétitions ont attirés 40 coiffeurs et les Maitres Juges on eu 12. Les gagnants(es) ont été présentés sur certains grands plateaux, choisis par tirage au sort le lundi, pour ainsi donner plus de visibilité et de la notoriété à ceux-ci. Sur une toute autre note; la fin de soirée au restaurant/club fut également un succès. Nous voulions créer une grande fin de semaine de festivités, de stimulation, de plaisir et d’inspiration pour nos clients du monde de la beauté et ce but semble avoir été atteint. Côté relations publiques, nous avons mandaté une nouvelle agence reconnue dans le milieu des communications, des magazines modes et de la télévision pour les tendances de l’industrie de la beauté. L’agence TENDANCES COMMUNICATIONS nous a apporté une bonne couverture médiatique avec la présence de certains de ceux-ci à l’événement Tendance Mode ainsi que par l’organisation d’un événement de presse le lundi midi. Plusieurs médias se sont présentés pour rencontrer les artistes-coiffeurs et ainsi faire un Pas important dans notre objectif de les promouvoir. Notre objectif étant également de faire connaître le Congrès de l’ABA en général, un événement de coiffure unique, et donner de la visibilité à nos artistes de renommé internationale auprès des consommateurs. Je voudrais dire un Merci tout spécial à Martin Pressault et Susan Solomon pour leur support et implication. Je tiens également à remercier tous les membres du comité du salon du Québec pour leur participation active pour l’ABA et tout au long de l’année. En terminant, nous tenons à dire Merci à tous nos manufacturiers et distributeurs qui ont, encore une fois, épaulé et bonifié le Salon de Montréal et à l’équipe de l’ABA pour avoir rendu cet événement possible et d’en avoir fait un succès. Souhaitons-nous une réussite encore plus significative en 2014. The Montreal ABA Beauty Show took place March 10-11, 2013 at the Palais des Congrès. Our industry once again offered us a wide range of artistic educational platforms and seminars. The quality of our on stage talent was by far an inspiration to future stylists and hairstyling students. In total, the Montreal ABA Beauty Show saw 7369 beauty professionals; 4208 attended on Sunday and 3161 on Monday. We saw a slight decline of 9% total attendance in 18 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Report from Ms. Nathalie Leroux, VP Québec Division (Cont’d.) 2013 versus 2012. We attribute this decrease to fewer major exhibitors and a lower presale ticket sale by distributors. 2013 was the first year that the Quebec division allowed show tickets to be sold online. 40 tickets were sold online via the ABA main website. Why is our attendance diminishing? Is it the result of stylists facing a tougher financial economy? Or do stylists now have several different industry shows to choose from? Could it be that fewer students entering our industry? These are great questions… These questions have led us to schedule a brainstorming session with the Quebec show committee as well as certain industry professionals next week. The subject of this brainstorming session will be “How to attract new clients to the Montreal ABA” This being said, the ABA show floor in 2013 was well represented with a variety of manufacturers and distributors and esthetic companies. All of the post-show feedback that attendees, manufacturers and distributors provided was positive. For the 3rd year in a row our main stage presentation was the “Tendance Mode 2013”. This main stage production was developed by a committee whose participants included: Tina Christopoulos, Yasmin Grothe, Ann Bois, Leopold Bissonnette and I. Our MC for this presentation was Genevieve Borne. Genevieve is widely known in the Quebec fashion and music scene. Throughout the entire event, Genevieve brought awareness not only to the Montreal ABA Beauty Show but also the association and what the ABA represents within the professional beauty industry. In this year’s presentation we put a larger emphasis on the hairstylists and a little less on the fashion designers, all the while having an entertaining show. This year we only showcased 1 fashion designer – Mr. Denis Gagnon. His presentation was split into 2 segments, ready to wear daytime and avant-garde. As we look to 2014, we can continue working from a similar platform as past years. In our future main stage presentations we can increase the visual dynamic of our hairstylists and designers. Special invitations can be sent out next year inviting media, journalists, students and the like to attend this special presentation. Our hair competitions drew more than 40 talented stylists in 2013. The winners of our 6 hair competitions received their trophies and cash prizes on the main stage. Our master judges class run by Don Grylls drew 12 master judges. 19 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Report from Ms. Nathalie Leroux, VP Québec Division (Cont’d.) On a different note, our club night was a huge success. We were looking to create an after party that was fun and inspiring to our attendees and exhibitors. The club we chose did just that! On the public relations front, this year we enlisted the services of a new agency. Tendances Communications was chosen because of its presence within the beauty industry, television and print media. Tendances Communications brought us great coverage within consumer media for the show itself and also for our main stage presentation “Tendance Mode 2013”. Ann Bois organized a press event Monday at noon. The focus of this lunch time press event was to bring awareness to the Montreal ABA Beauty Show itself and the many talented stylists who make up the industry. We had a great turnout at this event and we made large strides in distinguishing the Montreal ABA Beauty Show as a unique event within the hair and esthetics field worth attending. I would like to thank Martin Pressault and Susan Solomon for all of their support and guidance. I’d also like to thank all the members of the Quebec show committee for all their participation and hard work throughout the year. In closing, one final thank you to all our manufacturers and distributors, and esthetic companies who participated and continually support the Montreal ABA Beauty Show year after year. Without their participation we would not have a successful show! Here’s to a bigger and better 2014 Montreal ABA Beauty Show! Ms. Nathalie Leroux called for a MOTION that the 2013 Quebec ABA Show Report be accepted as read. Mr. Aldo Gemmiti MOVED for acceptance of the Quebec Show Report. M. Vincent Lemieux SECONDED the MOTION. A vote was called. MOTION CARRIED. Ms. Nathalie Leroux announced the Highest Ticket Sales award goes to Beauté StarBédard. Because there was nobody from Beauté Star-Bédard present, Ms. Leroux accepted the award on behalf of Mr. Gaetan Bourdon. Mr. Pressault thanked the Vice Presidents for their reports and then called for the Treasurer’s Report and the appointment of the auditors for next year. 20 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Financial Report from Mr. Kevin O’Regan Jr., Treasurer Presented by Mr. Aldo Gemmiti Mr. Gemmiti presented the Treasurer’s Report on behalf of Mr. Kevin O’Regan Jr. due to Mr. O’Regan’s unfortunate circumstances. “Everybody in their blue folder has a copy of the financial statements. If we can pull that out so we can make reference to it as we go along, it will make the presentation a little easier and hopefully we can understand what we are speaking about. I am going to do the presentation in Italian as it has been done in the past so a lot of you might not understand what is going on but I will do the English translation as we go along as well. That’s about all that I have for the presentation. Do I have any questions? Just kidding! Anyways, let’s get started with this. So everybody has their copy of the financial statements out. We are going to refer to these, as I said, as we go along. So first of all I am going to read this because I don’t have it scripted and hopefully we’ll get through it. 2012 was a challenging year for our association. We posted a significant loss when compared to the previous year’s profit of $44,000.00. While a non-profit organization as ours should not continue to show profitability and be reinvesting its earnings to the benefit of its members, the loss in 2012 has to serve as a wake-up call. This cannot continue – we need to have a look at some significant changes going forward. Let’s look at these financial statements and I ask you to turn to page 3 of the financial statement. I would like to highlight a couple of the items there. At the top it will say Statement of Financial Position, page 3. So last year over $200,000.00 was moved over from the Contingency Fund to remove the unnecessary overdraft of $90,000.00. That is highlighted, if you look under Current Liabilities and Assets under Bank’s Overdraft of $91,000.00 in 2011, you will see that that was eliminated in 2012. So we took $90,000.00 out of the Contingency Fund and paid off that overdraft but it also gave the Association some capital in the bank to work with because at that year we had no money in the bank as you can see. At the top Cash and Equivalents under Current Assets as of December 31, 2011 we had zero money in the bank so we needed operating capital so we took some of that money and moved it into both those areas. The Reserve Fund remains intact. If we look down under net assets, Reserve Funds $900,000.00 the previous year remains the same in 2012 so it is very healthy for us to have that money there. Funds Invested in Capital Assets – again just above under Net Assets if you go down to the third item Funds Invested in Capital Assets are $612,000.00 and that is primarily the building that the Association owns and operates from so that we understand what that is. Let’s turn to page 4 and highlight a couple of items there. Under Expenses, something that stands out is Administration. We went from $759,000.00 in 2011 up to $936,000.00 in 2012 in administration costs. This is due to the multiple staff changes the association incurred. What we hope are significant one-time costs in 2012. These costs from the rise in administration costs over 2011 were due to certain things that happened within the office. Your executive has worked diligently to control these costs over the current 21 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Financial Report from Mr. Kevin O’Regan Jr., Treasurer Presented by Mr. Aldo Gemmiti (Cont’d.) year and a lot of these costs were also one-time costs that occurred in 2012 so that will not continue in 2013. We should be back on plan when it comes to administration costs. The most critical information appears on page 14 if everyone can turn to page 14 so we can have a look at that. It’s the last page of the report. If we look at the bottom line where we show Excess Deficiency of Revenue Over Expenses, and we go to the last column where we have Total for 2012 and 2011, you will notice that our revenue on the report the Excess Revenue Over Expenses, and we don’t call it profit, was in 2011 $899,000.00 as opposed to 2012 of $699,000.00. So that’s a drop in revenue of almost $200,000.00. in one year as well. This loss of revenue hits our association very, very hard. The net result of our fiscal year end December 31, 2012 posted a loss of $269,000.00 as well. In a final note, on page 12 if we can all turn to page 12 and have a look at that, just a little bit of an explanation of how the ABA operates its finances. You will notice that under point 9 Commitments you will notice that 2013 there is a commitment there of $435,000.00. Just a note on that is that pre-planning is the key for the ABA. On December 31, 2012 we had already committed to spend over $450,000.00 in 2013 with most of these contracts for show revenue signed early in the year. Mr. Aldo Gemmiti put a MOTION on the floor to accept the 2012 Financial Statements as presented. Ms. Lise Ward MOVED to accept the 2012 Financial Statements. The MOTION was SECONDED by Mr. Brian Ahrens. MOTION CARRIED. Appointment of Auditors Mr. Gemmiti reported that, as part of the Executive Committee, that it is the recommendation of the Audit Committee, that due to the fact that both Sabrina and Susan are new in their roles at the office, that we would like to keep a little bit of some consistency of what we do so we would like to keep BDO Dunwoody our auditors for 2013. Mr. Aldo Gemmiti called for a MOTION from the floor to appoint BDO Dunwoody LLP as the auditors of the Allied Beauty Association for 2013. Mr. Randy Chan MOVED to appoint BDO Dunwoody as the auditors for 2013. Mr. Brian Ahrens SECONDED the MOTION. MOTION CARRIED. 22 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Martin Pressault called for a MOTION to adjourn the Annual General Meeting. Mr. Art Erickson MOVED to adjourn the Annual General Meeting. Mr. Frank Walker SECONDED the MOTION. MOTION CARRIED. Mr. Martin Pressault asked Mr. Gordon Greenwood to Chair this Special General Meeting. Mr. Gordon Greenwood Special General Meeting O.K. so the AGM has been adjourned as is required by procedure for the purposes of holding a special general meeting. A notice had been sent out to the members as was discussed during the presentation on the By-Law Review yesterday. Under the federal legislation the incorporation under which you currently operate, being Part II of the Canada Corporations Act, is being revoked by the federal government. They have instituted a new piece of legislation called The Canada Not-For-Profit Corporations Act and therefore you have to transition into that (in legal terms it is called continuing) legislation before the fall of next year. We are asking for your approval to do that now so that we don’t have to deal with it last minute. What it does is it allows you as an association to start all of the transition that we talked about yesterday. This does not let me make this clear this does not mean you are approving the By-Law changes that were recommended by the Committee. All you are doing is you are putting yourselves in the position to be able to do that over the next year. It basically gives you a clean slate and a new start. All of the material has been sent out to you in advance of the meeting but there is one item that I would like to particularly draw your attention to in that the Articles they are called the Articles of Continuance that you are being asked to approve giving minimum of nine directors and a maximum of twenty-two. That allows you to keep the Board as it currently exists and if you agree with the By-Law changes, to then reduce down to nine or twelve or whatever number you choose but we don’t have to go back to the government for approval for this later on on whatever number you think is right. Mr. Gordon Greenwood called for a MOTION to approve the changes. Mr. Quoc Chay MOVED to accept the changes brought forward in the Special General Meeting by reading the following: I MOVE that the Allied Beauty Association be continued under the Canada NotFor-Profit Corporations Act and that any director of the Allied Beauty Association be and is hereby authorized to sign the Articles of Continuance substantially in the form as presented to this Special General Meeting together with any and all other documents necessary to accomplish such continuance. Ms. Lillian Sciara SECONDED the MOTION. MOTION CARRIED. 23 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Gordon Greenwood Special General Meeting (Cont’d.) Mr. Gordon Greenwood called for a MOTION to adjourn the Special General Meeting and to reconvene the Annual General Meeting. Mr. Raphy Cohen MOVED adjourn the Special General Meeting and to reconvene the Annual General Meeting. Mr. Aldo Gemmiti SECONDED the MOTION. MOTION CARRIED. Mr. Pressault requested Ms. Susan Solomon to present and ratify the new Board of Directors and Officers and the Executive Council of the Association for 2013-2014. Ms. Susan Solomon, Executive Director Announcement of the National Board of Directors and Officers Ms. Susan Solomon presented the 2013-2014 Board of Directors and Officers of Allied Beauty Association as follows: President Mr. Stephen Pavlick Immediate Past-President M. Martin Pressault British Columbia Division Ms. Tracy Mercier Alberta Division Mr. Amer Jomaa Saskatchewan Division Mr. Harvey Peterson Manitoba Division Mr. Gerry Titus Ontario Division Mr. Brian Ahrens, Mr. Jim Amos, Mr. Aldo Gemmiti, Ms. Elise Massicotte, Mr. Kevin Rennie, Ms. Lillian Sciara, and Mr. Frank Walker Quebec Division Mr. Raphy Cohen, M. Alain Jacquaz, Mlle. Nathalie Leroux, M. Bruno Rochette, et Mme. Lise Ward Atlantic Division Ms. Susan Keddy Treasurer Mr. Kevin O’Regan Jr. Assistant Treasurer Mr. Aldo Gemmiti Incoming President Mr. Brian Ahrens Legal Advisor Mr. Gordon Greenwood 24 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Ms. Susan Solomon, Executive Director Announcement of the National Board of Directors and Officers (Cont’d.) Ms. Susan Solomon called for a MOTION to ratify the 2013-2014 Board of Directors. Mr. Frank Walker MOVED that the 2013-2014 Board of Directors be ratified. Mr. Harvey Peterson SECONDED the MOTION. MOTION CARRIED. Ms. Susan Solomon Announcement of the Executive Council Ms. Susan Solomon presented the 2013-2014 Executive Council of Allied Beauty Association as follows: President Mr. Stephen Pavlick Past-President Mr. Martin Pressault President Elect Mr. Brian Ahrens Vice-President, British Columbia and Alberta Divisions Ms. Tracy Mercier Vice-President, Saskatchewan and Manitoba Divisions Mr. Harvey Peterson Vice-President, Ontario Division Mr. Brian Ahrens Vice-President, Quebec Division Ms. Nathalie Leroux Vice-President, Atlantic Division Ms. Susan Keddy Treasurer Mr. Kevin O’Regan Jr. Assistant Treasurer Mr. Aldo Gemmiti Ms. Susan Solomon called for a MOTION to ratify the 2013-2014 Executive Council. Mr. Al Peters MOVED that the 2013-2014 Executive Council be ratified. Mr. Art Erickson SECONDED the MOTION. MOTION CARRIED. Mr. Pressault thanked Ms. Susan Solomon and then called on Mr. Gordon Greenwood to give the Legal Advisor’s Report. 25 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Gordon Greenwood Legal Advisor’s Report Many of you may know this fellow. Many of you may not. His name is Murray Corlett. He was the senior partner of Maclaren Corlett LLP from which I happen to belong. This was the gentleman who was the lawyer for ABEMJA. This lawyer represented you before you were incorporated. Our firm has been with you since that time and Murray was I think 80 years old when he retired from the practice of law. You were the last client that he gave up. He is kind of like Kevin O’Regan Sr. There are some of us who firmly believe that Kevin Sr. chose to pass away during an annual general meeting just so his friends could be gathered when that happened. Yes, we firmly believe that and last night some of us had a little session where we had a little wake amongst ourselves. We told stories about him – we were only allowed one story each even though Frank did six, and then we toasted his memory. Almost the same thing applied with Murray Corlett. He wasn’t doing any work for anyone else except the ABA. He always came to your directors meetings and your annual general meeting which meant that I wasn’t allowed to. I was doing the work in the office but couldn’t have any fun. That’s how I feel the way Martin has described me. My first annual general meeting happens to have been in 1976 in Ottawa. The first annual general meeting that I was allowed to attend was 1992. I hope that the description that has been used towards me by Martin is applicable but I would also like to think that what I am doing when I represent you, is I am drawing from the knowledge of Murray Corlett and people like David Wickes and Kevin O’Regan Sr. and Maurice Doucet and Frank Walker and those who have been in the industry for a long time. Because I was treated the way I was by Murray Corlett, this is the young lawyer in our office who is working together with me on your by-laws and she is not allowed to be here. Her name is Megan Fife and you will be hearing from her in the future. The thing that governs you, and the thing that governs what I do for you, is that word that I used yesterday; and that is ‘professional’. Everything that Martin talked about that we do can be done by another association. You cannot replace the expertise and the talent that is on the CCTFA, on the Personal Care Products Council in the U.S. with whom we work. We are not looking to replace that. That is scientific and that is regulatory, however, fundamentally they are speaking for the retailers and they are not speaking for the professional industry. They are not speaking for the cosmetologists. They speak in terms of ‘hydroquinone’, ‘siloxanes’ and they speak about compositions and ingredients, but whether I am talking to Health Canada and by the way they came back to me and asked for the arrangement that you as an association had made with them a number of years ago in relation to Workplace Hazardous Materials Information System (the WHMIS disclosure). We worked with them on a number of issues, Environment Canada, Independent Cosmetic Manufacturers and Distributors out of the 26 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Gordon Greenwood Legal Advisor’s Report (Cont’d.) U.S., Advertising Standards Canada, all on behalf of the professional industry. Lots of the things that we do for you, and for those you represent, unfortunately you do not know about. So as recently as before Christmas in Barrie, the Regional Medical Officer of Health was going to have his inspectors go out and shut down a number of salons, before the Christmas rush. It would have done away with all of the revenues which they would have generated during that period of time. We were able to intervene, tell them that this was an issue we had dealt with the Chief Medical Officer of Health of Ontario and, in your name, we were able to save the revenues and do work on behalf of those people, your customers, in Barrie. A lot of this stuff we do and shame on us that we don’t tell you so you can tell those you represent. Yesterday around the table, there were a lot of good ideas which is terrific but I sit back having lived through this thing for so many times and I think these are great ideas but these are potentials for great frustration if, once again you collect all these ideas, and don’t do anything with them. So when you think about this, when you think about the meeting yesterday, and I am saying this to the Executive and I am saying this to the office and I am saying this to the members – think about how you are going to carry them out because we have come, as you heard from Aldo, the association has come to a crossroads - a lot of potential but crossroads. You are the professional industry. The reasons that the ABA and myself are invited to work with these other organizations are because you bring a different perspective. At the Montreal show, in Calgary, in previous shows in Vancouver, in Toronto, I walk the floor with members of Health Canada. Why do I do that? I do that because, unlike the presentations that we have made to them with the more scientific organizations where they talk in terms of skews and revenues, we talk in terms of people. When I walk the floor with Health Canada, they are seeing the way your booths are set up, they are seeing you standing there, they are seeing you servicing the customers and they are seeing your customers, and all of a sudden, they are not talking about a package and an ingredient line, they are talking about human beings and revenue. When we met with Health Canada and Environment Canada on the siloxanes issues, CCTFA was talking about skews. We were talking about the number of stylists who would be hurt, whose revenues would be hurt by this. Almost three weeks ago, I met with the Assistant Deputy Minister of Health for the Province of Ontario and they are introducing tanning bed legislation. Very loose in their language, because that is broad enough so it includes UV generating services and products, which means those of you who either deal in gel nail products or sell nail lamps for those products might be affected. They won’t be able to perform those services on anyone under the age of 18, irrespective of consent. Not only that. They will have to register with the local health authority and be subject to reviews and inspections so all of the nail salons that use these, that generate revenue from them, many of them as you know may not even understand the process at all and this sort of thing will go by the board. So we made 27 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Gordon Greenwood Legal Advisor’s Report (Cont’d.) representations to them on why these products should be excluded. We did that together with the Nail Manufacturers Council from the United States and with the CCTFA. But, remember what I just told you. I am trying to humanize what you are doing. So I walked out of that meeting and I went back to my office and I downloaded a clip from CBC News that talked about the importance of the nail industry to the Vietnamese boat people and to their families and to their businesses across country and I said to them “When you as the Ontario Government are looking at this legislation and worrying about what the NDP is going to say about it, I want you also to think about the people you are affecting if you do this.” No other industry association can do this but you. You complain, your customers complain, about diversion. You hear about all sorts of things dealing with “Why should I buy this from you? My customers say they can get this at WalMart or whatever.” If you are serious about trying to maintain your status as a professional representative, then you have to behave that way. They have no other voice but you, and as I said the other day, “up until recently, until the Professional Beauty Association reconstructed themselves with the NCA and then before that with the BBSI, there wasn’t another organization in the world that existed the way you do”. The bringing of the cosmetologists into this organization is so innovative – a couple of years behind where the U.S. is - but theirs was already an existing organization they can bring in. Third row, last seat on the right-hand side, Joan Harrison raise your hand. 1985. She and Sonny Wise created a corporation called The Canadian Cosmetology Association. Unfortunately, that wasn’t successful. My personal view as to why that was not successful is for the same reason as the National Cosmetology Association joined with the Professional Beauty Association. It was separate. If you are the Professional Beauty Industry, you have to be the industry. And to me, Joan was 28 years ahead of her time, as was Sonny Wise, and now I think things are coming together. Amer Jomaa is sitting in the back row here. Mike Jomaa, maybe it was 15 years ago I know it was BBSI, kept saying to me and to us, “You guys have to get closer to the BBSI in the U.S.” and at that time The Salon Association, TSA. You’ve got to start sharing ideas. It has taken that long for us to build the relationship which we currently have. Martin, Susan, and I have met with those associations. They invited us down to New York and we’re hosting them again up in Montreal this fall. Why? Because it is The Professional Beauty Association. 28 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Gordon Greenwood Legal Advisor’s Report (Cont’d.) Anyone know who this is? That is Doriane Dalati. That is Doriane Dalati who at that time, I think was GM of Redken, and she was also President of The Allied Beauty Association. For those of you who know Doriane, you know that she is a bundle of energy, a bundle of passion for the professional beauty industry, she has ideas overflowing and coming out of every ear. When she was president, she hated this document with a passion. These are your By-Laws. It was an iron curtain to her. She could not bring her ideas to fruition because the By-Laws prevented it. That is why I am so sad she was not able to be with us over this meeting, and to have seen that slide yesterday when this document got blown up; and we are starting from scratch; and we are starting from scratch why? So that ideas that are innovative, that will actually represent the whole industry like Doriane wanted, can finally be implemented. These barriers are gone. Marc Speir and I used to say to the executive and to the directors “If you don’t like these documents, change them.” Didn’t happen!! The government has forced you to do it and as I said the other day, whoever thought we would be thankful to the government for anything. This is me again remember. You must unlearn what you have learned to be able to reconstruct yourself and to face the future. If no mistake you have made losing you are a different game you should play. So you have made mistakes and so you are still in the game. Let’s try to do something about this. A couple of other personal notes here by the way and these, I may end up offending people because I am speaking for myself not Allied Beauty Association but I have been with you a long time and I have a lot of passion for this like you do. I find there to be a fundamental logical disconnect between when companies tell me that ‘we believe in the professional industry’ or ‘we are strongly behind the whole industry’ and yet the association that was set up to represent the industry is being driven into the ground because they are choosing to support their brand and their shows and either withdraw from the ABA or hold shows or have their DSCs speak against us. If you purport to represent the industry, then please work with the organization that is dealing with the industry - not only your specific brands and not only when you are talking with your own customers. Let me try to put this frustration into perspective for you. These were 29 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Gordon Greenwood Legal Advisor’s Report (Cont’d.) standing in Doriane’s way to make that happen. Whatever the membership fee is, the $700 a year or whatever it is (in my view again – personally only) doesn’t entitle you to say “I don’t like the ABA show that it is holding”, “Give me more information”, “No, I have decided not to go into it” or “You should do a show that I want”. Now what you should do is to say “I paid my membership dues for the privilege of having input and designing an industry show that I am willing to participate in and meet the standards that I want to meet and will represent the whole industry.” But you as the executive and you in the office have to be willing to make the changes that are necessary so those voices will be heard. This is not a speech. This is a lecture if it hasn’t dawned on you yet. There are few things here that I think should be pointed out that maybe just a few of us see. Elise Massicotte, Proctor & Gamble Professional (Wella as we understand it) is an active member of the board. Jim Amos from Colomer is an active member of the board. You’ve heard Nathalie Leroux from Piidea, an active member of the board. You had a motion made on the floor today from L’Oreal Professionnel, but you know what really strikes a note to me personally, is Brian Ahrens from KAO Professional has enough faith, I hope, in where this industry is going to agree that he is going to work on the panel of presidents for four years. Let’s hope that the message that they are sending is that we believe in the industry. We believe that the ABA may be sick but it’s not dead. However, those of you who are on the executive or are in the office have to be prepared to listen to these people and to do things. “Do or Do Not – there is no Try”. It is not good enough for you to try to rejuvenate the ABA – you’ve either got to do it or it is not going to be around as the spokesperson for the professional industry. If that happens, shame on all of us. Thank you. Mr. Martin Pressault called for a MOTION to ratify the acts and actions of the Officers and Directors of the Association since the last Annual General Meeting. Mr. Dino Cairo read the Confirmation of Acts. Confirmation of Acts “BE IT RESOLVED THAT all Acts, Contracts, By-Laws, Proceedings, Elections and Payments enacted, made, done and taken by the Directors and Officers of the Association since the last meeting of the active members be and the same are hereby approved, ratified and confirmed.” Mr. Dino Cairo MOVED the foregoing Confirmation of Acts. MOTION Seconded by Ms. Sharon Sharpe-Titus. MOTION CARRIED. 30 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Martin Pressault asked Mr. Gordon Greenwood, on behalf of Mr. Kevin O’Regan Jr., to do the invitation to the 2014 Annual General Meeting. Invitation to the 2014 Annual General Meeting Mr. Greenwood asked Ms. Laura Dunphy and Ms. Sharon Sharpe-Titus to assist with the presentation. “May I have Laura and Sharon up here please”. Laura Dunphy – “My good lord what are we doing up here? Yes, boy it is great to see you here what a grand crowd we got here today. We’re going to have some time. Some shocking good to see you. That’s a little sample of Newfoundese that we are talking about going to probably the most beautiful island in Canada being Newfoundland. That’s what we think anyways. I mean if you ask Tracy she probably would say it’s right here. But of course, we were born and raised on the ‘Rock’ as they call it and we’re going to present a little bit of I take Kevin sent and we’ve never seen this before so bear with us. On behalf of our province, I would like to invite the Allied Beauty Association Annual General Meeting to Newfoundland in June 2014. Our event will run from Monday to Wednesday June 9th to the 11th and will be based in the newly renovated Sheraton Hotel Newfoundland in St. John’s. Direct flight service from Toronto, Montreal, and Halifax make it easy to get to and, for your return flight don’t forget that the province has its own unique time zone – a half an hour out of step with the rest of the world. And of course you know we just happened to be on the elevator the first night we got here and she goes “Oh, oh”. I said “We’re Newfies. We’re allowed to be half an hour late and I’m sure everyone is going to make that comment when we walk in. June is prime season for both whale watching and iceberg watching. You want to come and experience life at the very tip of North America. If you joined us for the AGM in 2006, we will be spending our fun night together at the Spirit of Newfoundland Dinner Theatre enjoying Newfoundland hard shell lobster. That was a pretty spectacular night for those of you who were there. I know that Lillian Sciara can certainly speak about that. It was truly a blast and I think as Newfoundlanders we were pretty proud of what a grand night it was and they had a great time. The closing dinner will be with a twist and you’ll be dining at one of the finest restaurants overlooking the historic St. John’s Harbour to a multi-course meal with wine paring and entertainment. The evening will be coupled with strong meeting content and the AGMs that we are known for in Newfoundland in 2014. One word of caution, the little secret of how great our province is to visit has gotten out. St. John’s is the choice destination for June conferences so please ensure that you make your hotel reservation early. We look forward to seeing you on the rock in June. Please watch now for a little taste of what will be to come.” A video was then played. 31 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Site Selection of the 2016 Annual General Meeting Mr. Martin Pressault indicated we would move forward with the selection of a site for the 2016 Annual General Meeting. “As you know in 2015 we will be in Niagara-on-the-Lake and today we have to make the decision for 2016. We strongly suggest that we go to a main city like Montreal or Toronto to really try to keep our expenses as low as possible. This is why, because we are going to be in Niagara-on-the-Lake, it would make sense for the board that we go to Montreal but it is the decision of the members.” The President asked for a MOTION for the 2016 Annual General Meeting to be in Montreal. Mr. Kevin Rennie MOVED to have the 2016 Annual General Meeting in Montreal. Ms. Sharona Bilek SECONDED the MOTION. MOTION CARRIED. Mr. Stephen Pavlick Incoming President’s Address Good morning ABA members, our Board of Directors, Legal Counsel - Mr. Gordon Greenwood, our Executive Director Susan Solomon, the ABA staff Stephanie. A tous les membres de Québec je m’excuse en avance pour la qualité de mon francais. Maintenant vous comprendez pourquoi le reste de mon discours sera en Anglais. Merci pour votre participation à l’AGA de cette année à Vancouver et je vous remercie d’avoir pris le temps d’écouter mon message. That’s the Quebec contingency thanking me for not continuing in French anymore and the sound booth for no more translations. My company, DWA, has been in business for over twenty-five years. My father, David Wickes whom I am proud to say is here today, believed in unconditional support and loyalty to this great association. We never missed a show in any region and David served as an ABA Director for eight years, including Treasurer for four of those years. This dedication to our association and our industry was instilled in me for twenty years until the day David retired. Two years ago, I walked into my first Board of Directors meeting representing the Division of Alberta. I entered this meeting with an attitude and a mindset that it was my time to get involved. The first order of business was to nominate the regional VPs. For British Columbia and Alberta, it was Tracy Mercier or myself – both rookies. Tracy said “You take it Steve” and I said “O.K.”. I was there to get involved and now I was. Once the five VPs were all nominated and voted in, the next order of business was to nominate and vote in the President Elect from those five VPs. This was a six-year commitment – two years as President Elect, two years as President, and two years as Past President. My good friend Raphy Cohen piped up “I nominate Stephen”. The moment of truth. Did I mention that I came in with an attitude and a mindset that I was there to get involved? I accepted the honour and the rest was history. I think it was Kevin Rennie who piped up “Hey wait a minute, don’t you have to be a Director in this Association for more than ten minutes before you become President?” When the laughter subsided, it really hit me. Involved I was for the next six years. There’s an old 32 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Stephen Pavlick Incoming President’s Address (Cont’d.) saying “time flies when you’re having fun” and let me tell you, the last two years has been an eternity. You think I’m kidding. In two years, we lost our Executive Director with his nineteen years of experience and expertise; went five months with no Executive Director; went through the whole interviewing process and eventually hired Susan; hired Samantha and Sebastian; lost Sebastian, Karen, Liz and Stephanie; rehired Stephanie; Samantha took pregnancy leave; hired Sabrina and Rachel and during all of this we had to make tough decisions of cancelling or postponing five ABA shows. They say that stress is one of the main causes of premature aging and I must admit that I was concerned about my health with all of this added responsibility and all of these problems. So I went to a good friend of mine in Red Deer, he’s with the RCMP and has access to one of these digital aging programs used in Child Find and missing persons. I have been gaining a little weight, losing more hair, glasses. I said to him “Here’s a picture of me before I got involved and became President Elect and here’s a picture a recent picture of me after only two years with the ABA as Incoming President – what am I going to look like after I am President for two years? And this is the image that he sent back to me. In India they have a saying – it loosely translates to in the end everything will be alright. If things are not right, then it is simply not the end. At this time, things are not right with our association but believe me, it is not the end, and I believe our future has never been brighter. I am going to address the following three topics – these are the facts about ABA shows: there is no show the ABA can’t hold in any region in any city at any time in Canada that can’t be a success. The formula is simple – it’s not rocket science. Every distributor in that region participates and is supported by the manufacturers they represent. It truly needs to be an allied effort. Here is the irony of our shows. On one hand, I don’t know of one cosmetologist who comes to an ABA show anywhere in Canada to see their distributor. They come to see the manufacturers. They are the draw and they are the most conspicuous by their absence. On the other hand, with all due respect to our manufacturer members, it is the distributors who hold the key to our show’s success. It is their sales reps who sell the tickets, convince their customers to attend our shows making it all worthwhile. When we are divided in our commitment to our shows, who wins and who loses? Let’s say for example we have a region that has six major distributors - four decide to go into the show and two decide not to. We now have four sets of sales reps out there selling and promoting the show and we have two sets of distributor sales reps selling against us. And, maybe a non-member or two selling against the show and it’s not malicious I don’t believe in our own association. It’s only human nature. What sales rep wants their customers to go to a show that their company and their manufacturers are not participating in? The cosmetologists are 33 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Stephen Pavlick Incoming President’s Address (Cont’d.) confused. Is this going to be a good show? Should I go or should I not? In the end, here’s who wins and who loses. Stylists who attended the show - guess what, they lost because it wasn’t the show that they paid the money to come to. There were distributors missing and all their product lines and manufacturers missing. They felt cheated that they didn’t get full value for their dollar. Stylists who didn’t come to the show they lost too because they got zero education, zero input on new services, new styles, new products. Distributors who participated in the show – they lost because they didn’t get the full impact of all the cosmetologists in that region that should have attended that show. Distributors who didn’t attend the show – they lost because they had no opportunity to grow their business and grow their brands. Manufacturers who participated – they lost once again because they did not get the full impact of all the cosmetologists that should have been there and should have attended that show. And the manufacturers who decided not to attend the show they lost because they had zero chance of promoting their brands, getting new customers, and building their business. If we are not the Allied Beauty Association, everyone loses if we are not in there all pulling together. Does anyone remember the poster that was made in fun about United Air Lines? United Air Lines slogan was ‘Fly United’. Everyone remember that? Fly United. If we were the United Beauty Association this could be our logo, after all, isn’t that what we are doing to each other? We are the Allied Beauty Association and we need to work together. I am a strong supporter of CABA and I’m planning on being involved and guiding our committee to ensure our success and support this project but we have many challenges before us, one of which is no ABA shows in certain regions of Canada. Getting into the show free is perceived to be one of the main benefits of CABA. CABA is simply not an easy sell and it will be an even tougher task to get our members to renew. As an association we cannot let CABA turn into a boat. Too bad Susan Keddy isn’t here. I’m sure there are some members here who have owned a boat. Does anyone remember the definition of a boat? It’s a hole in the water that you keep putting money into. CABA cannot turn into that. CABA has the potential of bringing in more revenue to the ABA than any other project this association has ever taken on in our history. What we could give back to the industry in the way of education, business training, salon and stylist benefits, supporting competitions in Canada, sponsoring Canadian competitors throughout the world is mind boggling. One association, one national voice is paramount for the future success of our cosmetologists and our industry. Our goal is no less than 5,000 members nationwide by the end of 2014. I am going to do everything I can to make this happen. CABA could very well be our future. The ABA office. Here’s a little ABA history 101. In 1946 we started as an unincorporated association/society. Ten years later in 1956 we were incorporated as a barber association. Back in the day when nobody even knew what an acronym was and today everything is an acronym, we might have had the history for the longest acronym when nobody even knew what acronyms were. We were the ABEMJA. 34 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Stephen Pavlick Incoming President’s Address (Cont’d.) Gordon has told us a few times what that stands for but I bet nobody in here but Gordon or maybe a couple of us could answer that question. It stood for: the Allied Beauty Equipment, Manufacturers, and Jobbers Association. That’s who we were. In our 56 years of incorporated association, we have had just four executive directors, one law firm, Maclaren Corlett. Our first legal counsellor whom we saw a picture of earlier was Murray Corlett and Gordon took over at the AGM in 1976. We purchased our own building, our own office in Mississauga in September 2006. Where is this all leading to you ask? Thank you. My first visit to the ABA office was two years ago and I must admit it was a huge letdown. To be honest, I was disgusted. You know how you build something up in your mind and you perceive what something is going to be like. I had built it up in my mind and was expecting an office rich with history and memories of all the hard working employees and volunteer members of our association who over the years dedicated their time and helped make the ABA what it is today. In the office entrance is a small plaque, 16 inches by 24 inches (this is why we hire Tom Traves to be our official photographer by the way - I had him go to the office and take a picture and e-mail it to me, but there it is), 16x24 depicting the names of all our past presidents. Whoopee-do!! That’s it. Nothing else anywhere. Not even one picture on the wall of our board room. Nothing – bare walls. Nothing in the entire office that says ‘we have a proud history, this is our past, this is our present’. How are we supposed to know who we are and where we are going if we do not recognize and know where we have been. In my first board meeting this coming November as President, I will be proposing to the board that we appoint a heritage committee and we will be seeking support from the board to set up this committee and allow them to search our members’ archives and complete the following projects: a collage of pictures depicting the decades of every board of directors that we have had so the concept is a framed picture with a picture from each year of that decade of all the board of directors. These should be framed and placed on the walls in our ABA office board room. Our first executive director was Cathy Caron. I don’t have a picture of her. This is Rene Vincent who sadly passed away this year and I have an image of him framed and the years he served as executive director with this association – sixteen years 1976 to 1992. Marc Speir, nineteen years in this association through good and bad times, he was our executive director. His picture should be framed and hung on the wall of our board room as well. Murray Corlett, the first legal counselor, his picture (I didn’t have a picture - Gordon thanks for putting it in your presentation and not sharing it with me) but his picture he wrote the by-laws and you heard everything that Gordon said about this gentleman I never had the honour of meeting this gentleman but he’s part of our proud history. His picture and the years he worked with us should be framed and put in that board room as well. This is all part of our proud history. Our entrance should be 35 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Stephen Pavlick Incoming President’s Address (Cont’d.) proudly depicting our present day staff. A picture of our current executive director, pictures of all the staff and their positional titles and yes, Gordon should be in the entrance as well - our Legal Counsel for the last twenty-seven years. Anybody walking into our ABA office should be met with a clear picture of who we are today. Anybody walking into that board room should and spending any amount of time in that board room should get a clear picture of where we have been and who the people were who got us to where we are at today. This project is not a huge expense but, in my opinion, it will be a priceless investment to preserve and help recognize our past. Before I get to my thank you’s, I would like to share and present you with a different perspective on our industry. Leap of faith here – this could ruffle a few feathers and don’t forget I should tell you that I wrote this over the last two years and this presentation was finalized before two months ago when we even before we decided to have round table discussions on our shows and things like that but I’m going to move ahead with it anyway. My perspective. There’s the pie, the typical pie, 10% professional beauty industry/90% mass retail. Some say it’s a little more, some say it’s a little less for our industry. Some say that we have 8% and some say we have 12% or 15% but for argument sake we are going to stick with 10% and 90%. Is the person next to you really your competitor? Sure they are. Manufacturers compete with manufacturers; distributors compete with distributors in their territory for market share. We all work very hard, day in and day out, weekends and evenings, to get to where we’re at today, but let’s look at this pie figuratively and literally a different way. There’s our 10% of the pie, the same pie, and there’s the 90% in the middle for mass retailers. What’s around the perimeter of a pie? The crust, right? So in other words we are fighting for market share and competing day in and day out for the crumbs while the mass market retailers have all the rich filling in the center. How many of you in this room have a targeted sales increase of 50% or more in sales in the next twelve months? Probably in your mind it is only realistic if it’s a new company and they have nowhere to go but up and double their business but any existing business 50% increase or more pretty unrealistic, right? Well, as long as we keep fighting each other within that 10% crust area, we will never have this kind of increase. We’ll never experience it. If we keep viewing each other as our competition, we will have to settle for the crumbs. We will never get to the heart of the pie. The greatest potential of increased revenue for any professional beauty company is not from gaining market share from your neighbor – it is from getting into the center of the pie and bringing new customers into our industry. The sad part is they are dying to come in. If you talk to anyone from outside of our industry, they are in awe of salon services, our professional products, professional tools. If we could find a way to bring them into our world and we each targeted that 90% market, we would only need to capture 7% of it, 7% of the 90%. That would equate to over 6% of the pie moving our share from 10% to 16%. Much more than the 50% I asked you about earlier that we all agreed was unrealistic. We would all need to double our warehouses, hire more people, put additional shifts on production, on, and on, and on. 36 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Stephen Pavlick Incoming President’s Address (Cont’d.) What if our shows, and the neat part about participating yesterday in the round table discussions moderated by Alain – thank you Alain was that a lot of these ideas came up and I think some of us or a lot of us are thinking along the same lines. What if our shows were separated into three pavilions: Pavilion A with the major manufacturers with stages and runways; Pavilion B is where the full service distributors who represent these manufacturers, some of the smaller manufacturers. There might be a little cash and carry – high end cash and carry in Pavilion B – the high end tools, shears, and things like that; and there is Pavilion C that is the cash and carry experience. There is still demonstration in there, manufacturers demonstrating their product and it was a cash & carry experience. A total shopping experience with some demonstration as well. What if the public were sold tickets to attend our shows? Something like a Saturday night when everything is all bought and paid for, everybody is there and the manufacturers are ready to do their thing. $20 a person but they were only allowed entry into Pavilion A – a chance for the major manufacturers to build brand awareness to thousands of potential customers, show the latest and greatest new products, services available, and the latest in fashion and trends. A chance to lure those customers into our salons and spas for service and retail. No retail available in Pavilion A for that evening event but they are probably going to receive lots of samples, a little wining and dining, champagne, information, knowledge, connections, and an evening to remember. Advertising for this event could be on all the local radio stations, giving away professional product, promoting a chance for the public to come in and see a professional show. The public would be all over this. Let’s take this one step further and this is a long term vision. We’re not ready for this yet. We don’t have enough CABA members but when we are up and running with CABA, my long term vision is, and the question is where would the public purchase their tickets for this evening event? Not on the internet. Not through distributors. We don’t want the public coming into the distributors’ stores and offices looking to buy tickets for this evening and not at the door. Tickets aren’t even available at the door. Where do they buy their tickets? The only place for the public to purchase tickets is through a CABA salon and a CABA stylist. What will our salons do with all this walk in traffic coming to purchase tickets? That is where CABA business training comes in. No sense in driving customers and potential customers into salons when most of them are not ready to maximize this opportunity. CABA members would have to make this happen as they would need to be involved. It is them who deals with the public as their customers. The ABA, our distributors and manufacturers, would be promoting both professional products and professional services. We would truly be an allied beauty industry. What a huge opportunity there is just waiting to be tapped. This also gives the major manufacturers a reason to stay with us, to come back to us, or come to us for the first time ever and we are drawing them in, not trying to push them in because it gives them a major reason for them to be at our show. The human hand is an incredible masterpiece, creation. Most of us have five digits: four fingers and a thumb, right? When the hand’s digits all work together it has over 37 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Stephen Pavlick Incoming President’s Address (Cont’d.) 100 times the strength of any individual digit in the hand. Mathematically, it should only be about five times the strength. Here’s the hand depicted as our industry. ABA, professional cosmetologists, distributors (I didn’t mean to give the distributors the middle finger by the way), manufacturers, and schools. We can accomplish much more and be much stronger as an allied group than any of us can working individually. If we all targeted the 90% market share instead of focusing on the 10% crumbs, we will all attain increased business more than we ever hoped for or even thought possible. Increased salon/spa use and awareness means more business for the entire professional industry. We are the Allied Beauty Association and our future has never looked brighter. Thank you for your support. A couple of thank yous. I would like to thank and congratulate Brian Ahrens as nominated and voted in as our President Elect. Brian, I am really looking forward to working with you for the next four years and looking forward to your wisdom and your insight. Congratulations, Brian. Susan and the ABA staff. You think it has been tough now – it’s going to get tougher. We have a lot of work to do and it’s about results – it’s not about the talk and effort, it’s about results and we’re going to get results and I look forward to working with you and your staff. Congratulations, Gordon Greenwood, thirtyseven years. You know I am so thankful his firm has no idea how many hours he works for this association. I think he covers himself. Lawyers always protect themselves and I think that is why he always covers himself with an e-mail that says “this is my legal input and some personal input” so that those hours are not banked in with the firm. Martin and Al, I am going to lump you two together for a second. I have so much respect for you two. You took the road less travelled. That’s a tough road. It’s fraught with confrontation. It’s fraught with many things that are not easy and instead of going the easy route, you stood by what you felt was right and what’s right is right and what’s wrong is wrong. Martin, you led us through what was probably the toughest two years that this industry has ever faced. I know we had a few tough ones with Trent Robinson and we were in danger of losing our funds and going bankrupt. There were a few tough years even earlier but, in my history possibly, you rank up there as guiding us through the toughest two years of our industry and I thank you Martin for all your work. Al Peters, there is nothing we can give you to repay you for what you have done over the last six years and so that’s exactly what we got you is nothing. Al, you’re a great friend, you’ve already been given a lot of accolades – there’s not a lot I can add to it but your dedication, your professionalism and everything you have done for this industry is so incredible. Thank you so much Al. I would also like to thank David Wickes, my father, for his love and support, for bringing me into this great industry. My good friend and mentor Mr. Maurice Doucet who always challenges me. I wasn’t out of that board meeting two years for five minutes and he heard I was President Elect, he got in my face and said “What’s gonna be your legacy as President?” I said “Maurice, I just came out of the meeting. I am President Elect I am not even President for two years.” Thank you Maurice. And last but not least, my lovely wife Jeannine who is always there for me with positive reinforcement and her love. Thank you very much everyone. 38 ALLIED BEAUTY ASSOCIATION 2013 ANNUAL GENERAL MEETING Mr. Martin Pressault Mr. Pressault read the death notice of Mr. Kevin O’Regan Sr. Mr. Gordon Greenwood asked Mr. Pressault to sign the Articles of Continuance by saying “We think it is appropriate that given his efforts and his direction leading to what will hopefully be a revitalization of the ABA, that it be Martin who signs the Articles of Continuance under the new legislation. And so Tom, do you want to take a picture of Martin signing? Mr. Martin Pressault New Business Mr. Brian Ahrens: It’s a small piece of business. I don’t know if anyone else has some business but before you on your tables there was the Allied Beauty Association Annual General Meeting June 2013 Survey. Please take an opportunity to complete it. As you will see, it is pretty straight forward. Names are optional but your feedback is not optional. We do need your feedback. As you’ve heard from Stephen, he has some big goals for the association. We are at a pivotal point at the ABA and I think there are some great opportunities and it starts with feedback so please take the opportunity to look at the questions, take as much time as you need and it looks like we finished early so I think it is well deserved - it’s your association so take the opportunity to give us the feedback so that we can improve the product and give you a great experience. Thank you very much. Ms. Susan Solomon: Before we adjourn for today, Vince is not with us tonight because he forgot his Bond outfit so he feels he has to leave. But, on behalf of the Association, and I have only worked with Vince for a year, but it says on his plaque he has been a Director and Vice-President of the Ontario Division of the Allied Beauty Association from 2009 to 2013. So we, I personally, would like to thank Vince for all his effort and time he has given to the association and we look forward to working with you in two years. Vince thanked Susan. Adjournment Mr. Martin Pressault asked for a MOTION to adjourn and close the 2013 Annual General Meeting. Mr. Frank Walker MOVED to adjourn and close the 2013 Annual General Meeting. Ms. Tina Christopoulos SECONDED the MOTION. MOTION CARRIED. The 2013 Annual General Meeting was adjourned and closed at 11:20 p.m. 39
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