INTERVIEW WITH "UIBI"CEO
RELEASED FRI MARCH 23rd
OTCMonthly: Hello readers...today we are here with the CEO of Universal Ice Blast Inc.." Rory Clarke"...So Rory...first tell our members the benefits of "ice blasting" compared to sand blasting?
UIBI Answer: They are two, very different technologies. Sand is an abrasive method of cleaning, it rips off layers of paint as well as the substrate. Ice is non-abrasive. For example, we can remove paint from glass without any damage. Sand produces a huge amount of waste, about 800 lbs an hour. Ice blast produces 3 to 7 gallons of waste per hour, most of which is water. Sand blasting requires workers to wear specialized protective clothing including a breathing apparatus to filter out dust and fine sand particles. Ice blast produces no dust, and minimum protective clothing is required. The sand blaster requires continuous refilling of sand. The only requirement for an ice blast machine is that you attach a garden hose to it. Sand blasting requires a substantial amount of equipment, which includes a containment structure to handle dust and sand debris and special air blowers to create negative airflow. Ice blast needs a minimal amount of containment.
OTCMonthly: What are some uses for Ice-blasting?
UIBI Answer: First, you will need to understand how the technology works and then I will explain its many uses.
At the heart of the Ice blast technology is the "scrub and flush" cleaning system. Ice crystals deform to scrub on impact, after impact they melt into water, the water then flushes the debris away. Tests, by independent companies, have proved that this "scrubbing" action provides a cleanliness not matched by conventional water blast.
DISPLACE SCRUB FLUSH
Ice Blasts many uses:
Cleans automotive transmission components by removing loose and light burrs, oil and grease after they have been machined. Advantages: very little water used, superb cleanliness, no damage to soft metal parts.
Removes lead based paint from steel bridges. Advantages: Very little waste produced, no dust, and ease of set up to contain any hazardous debris.
Removes chemical and other in-process residue on manufacturing equipment, mold equipment, pulp and paper machines, petro-chemical furnaces, heat exchangers and tanks. Advantage: No dust! No damage to glass valves, rubber hoses, and soft aluminum. No masking required, and very little water residue produced. In some instances operating while cleaning takes place.
OTCMonthly: What markets are UIBI in, please give a brief answer?
UIBI Answer: Our markets are:
Precision Cleaning:
Applications: We specialize in cleaning parts that have been cut/drilled/bored, such as transmission housings, gears, and valve bodies.
Clients: Automotive, aerospace and their suppliers. This market is estimated to be in the billions per annum.
Technology advantage: Superior cleanliness (greater than water), cheaper on running costs, equipment reliability, same or better capital costs.
Industrial Cleaning:
Applications: Infrastructure of manufacturing plants. Cleaning pallets/dunnage, machinery and equipment, airport runways. Ice blast competes directly with anything that hi-pressure water does, or other blast media such as baking soda, plastic media, steel shot etc.
Clients: Automotive, petro-chemical, pulp and paper mills, glass manufacturers, pump stations, waterway locks for federal government, and food manufacturers.
Technology advantage: Low water use, fast effective cleaning, no substrate damage, no chemicals or soaps, less hazard to worker due to low blast pressure. See our UIBI website for a partial list of clients: www.iceblast.net
Hazardous Abatement:
Applications: Removal of lead based paint from steel bridges, cement, and brick buildings. Asbestos removal from buildings, fireproofing off ceilings, asbestos wrapped pipes, mastic impregnated asbestos on floors.
Clients: Include Federal and State governments, Universities, high-rise building owners, abatement contractors.
Technology advantage: Superior cleanliness, substantial reduction of water residue, less required manpower, equipment reliability, same or better cost of operation.
These markets aggregate many billions $ per annum of expenditures. The applications have worldwide application, including Asia, Australia, N America and Europe.
OTCMonthly: I see you have some relationships with car manufacturers...which ones are you presently working with?
UIBI Answer: It is well known that we have done work with Ford and GM over the years. I think it is fair to say, my partner Sam Visaisouk, has spent a significant amount of time, money and energy to make Universal Ice Blast a recognizable name in the automotive industry. He also happens to be a world authority on ice blast.
In the last four years we have shown Ford that our technology has reliability and endurance. UIBI machines, properly maintained, do not suffer from intermittent breakdowns, nor do they consume spare parts like water blast machines. We are confident about our technology and the opportunities we are addressing with Ford and GM that we are waiting for the good news any day now. So until we have something in writing we cannot report with any certainty that these orders are issued.
We feel that our success with Ford will be a major event, opening doors to even greater opportunities. We believe this for several reasons. First, the predominant method of cleaning has been water blasting. There are hundreds of these machines in place today. Once Ice blast becomes the new (alternative) standard, many of these water blast systems will need to be replaced. Second, the revenue potential with Ford is significant. The specific problems we are solving for Ford are not isolated to their company; they also exist in GM, Daimler-Chrysler, Toyota, etc. For example, we have recently sold a machine to Denso, a Japanese subsidiary of Toyota. This Denso machine is being used in an application this is identical a cleaning application in the USA that still uses our equipment today.
OTCMonthly: There is some confusion with us here, are you guys a R&D company or a manufacturing company.
UIBI Answer: We are an assembly/manufacturing company with strong R& D roots. UIBI has evolved into this "form" in the last 18 months. We have stated in our internal documents that we do not want to have 5000 employees working for us. Instead, we choose to subcontract the manufacturing. This allows UIBI time to focus on market identification and product design. We feel that by controlling the technology we can create the best return for our investors. The company still has substantial markets to address and our technology can only become stronger as we move into new markets. Interestingly our investment in R&D in future years will be at or slightly greater of our current levels.
OTCMonthly: several members have told us that UIBI technology is seen as a panacea in many markets, is this your perception?
UIBI Answer: The short answer is we originally thought so. Today, we know better. We have a niche product. Although we have a lot of niches we are quite selective in the applications we address. Fortunately, and unfortunately, we are many things to many industries. The confusion we originally had was that we were successful in many markets; nuclear, automotive, aerospace, marine and industrial cleaning. We just loved being loved by everyone!! However, we quickly realized that we had to build our products to be application specific. To make this happen we decided to focus on large international customers that could offer more opportunities. So far this strategy is working.
OTCMonthly: You are currently on the Over the Counter pink sheets...what are your plans to get on the Bulletin Board?
UIBI Answer: Boy am I glad you did not phrase that question, "are you ever coming off the pink sheets"? We have had several runs at this and I know we have it nailed down. We have a few things left to complete the year 2000 audit and the lots to do with the Form 10. We had to start all over again in June this year and then again in September. As I see the process we have the auditors and our SEC attorneys review the Form 10, there after we file. I am hopeful that we can get this completed within the next 6 to 8 weeks. It has been a long journey and one we do not want to repeat.
OTCMonthly: What revenues can we expect in 2001 and 2000, and will you be profitable?
UIBI Answer: We will not be profitable in 2001 and hope to break-even in 2002. Notwithstanding our low overhead, I think it is important that we re-invest in the technology for the next few years, consolidate our patents and therefore our markets. We do not have a large overhead, the annual estimated breakeven for us could be as little as 12 systems, given the current level of expenditures.
OTCMonthly: tell us a little about your revenues, what we can expect?
UIBI Answer: Our revenues come from several sources. One being the outright sale of equipment. Standard catalogue equipment provides us with a solid gross margin. The more we can sell in a year the greater costs reductions we can achieve. We also provide engineering services to build product specific equipment, usually cleaning stations to perform specific tasks, such as cleaning transmission housings every 35 seconds. Here we design, build, integrate and install equipment into a customers production line. Margins on this equipment tends to be smaller, distorted by components which have a smaller markup. However the per unit sale price is two to five times greater than the catalogue equipment. In both these sales we are selling machines and lose control over the technology for which we receive a one-time profit generated from our gross margins.
Other revenue, such as rental revenue, comes from our small but growing fleet of rental machines. In this case, we retain the technology and rent out the equipment. We are have just started with this program and look forward to superior returns on our assets. The hazardous material market is ideal for this base, evidenced by our deal we have with Lake Oswego Insulation in Portland, OR.
We also receive revenue from spare parts sales, which is relatively small due to the durability of the equipment.
OTC Monthly: What are some things we might see from Universal Ice Blast Inc. in 2001?
UIBI Answer: Well, over the next nine months, I am expecting some significant events to occur. One being our establishment in the Precision Cleaning Market. We plan to accomplish this with Ford, and other in-progress opportunities. Another event is to conclude three or four deals that will broaden our reach into the hazardous abatement market (lead paint and asbestos abatement) and the environmental and industrial markets. We are in talks with all of our counterparts and I know the results of these deals will have a positive impact on our revenue, certainly in the last two quarters of the year.
We are looking at improving our financing for the company. We are initiating talks with banks and new investor groups. The market is not exactly conducive to investment today. Having said that, UIBI is a fantastic buy right now. Our stock, in my opinion, could be a $5 to $15 range in the next 18 months. Look what we are: An asset based company, superior technology, patents issued and more being drafted right now. Sam Visaisouk and the engineering staff have worked hard to make sure we have protected our core business. I think what most folks do not know that UIBI is the world’s foremost expert in crystalline ice blast, and Sam Visaisouk is the doyen of ice blast, worldwide.
I am concerned about the recession. However, I think the company has several characteristics that differentiate us from many other small companies. Our products are specifically designed for client applications in markets that straddle several different industries and countries. While we are not recession proof, I think we have a better chance than the companies that do not have the industry range and appeal we have. We are not a dot com company, nor are we 22 year olds with a business plan scratched out on a napkin. We are professionals with business and research backgrounds. It also helps that we are entrepreneurial. Shareholders and prospective shareholders should know that we have invested most of our personal money in UIBI and a substantial portion of our adult work life. We intend to make this a phenomenal investment for present and future shareholders.
Another feature for 2001 is our entry into Europe through our Dutch distributor. In Europe, to a far greater extent than here, the environmental and industrial market is intertwined. Our technology has received rave reviews internationally, with very brief exposure. Sam and I will be traveling to Rotterdam in April at the request of the Distributor to attend the European Industrial Maintenance 2001 tradeshow. ( 3-6 April 2001 )
OTCMonthly: Last question Rory...Why should our members invest in UIBI?
UIBI Answer: Like all companies you have to look at: 1). The management and 2). Does the company have a marketable product? First UIBI management, Sam and I come from a professional background, science (PhD) and accounting (Chartered Accountant), that require discipline. Collectively, we have over 50 years of work experiences. This includes international business experiences in financial and manufacturing industries at executive levels. We work hard to make our business a success and we work just as hard to make it a fun experience for our co-workers (who are also shareholders). Second, look at our product. It is unique, it is a niche tool and it has many applications and world-wide markets. We have decided to concentrate on three markets (Precision, Industrial and Hazardous Cleaning). We have targeted specific applications and Fortune 500 companies. We are a very focused group. Having said that, over the preceding years we know that our technology also has proven opportunities in the Aerospace, Marine and Nuclear industries. We have left these markets alone (for now) to obtain a substantial foothold in the Precision/Industrial/Hazardous markets.
The short term for UIBI is excellent and the long-term prognosis is superb. We are only just beginning.
OTCMonthly: Thank you so much for your time Rory. Everyone...for Rory Clarke, this is Dana Salzarulo with OTCMonthly.com, saying check out OTC "UIBI" and have a great day!
CHECK OUT "UIBI" PROFILE BELOW
WEEK 4 FEATURE: OTC: "UIBI" - Universal Ice Blast
52 Wk High: 0.859
52 Wk Low: 0.060
Outstanding: 20 million
Float: 4 million
Price: 0.19 as of 2/27/01
The Company:
Universal Ice Blast Inc. was incorporated in Nevada in 1995 and is headquartered in Kirkland WA. The company and has a manufacturing and corporate office combination with an office in Toledo OH which serves the Midwest.
Universal Ice Blast, Inc, has its beginnings as a Research & Development company and transformed itself into a market driven corporation. The company has identified, tested and developed its technology for each of these markets:
-Precision Cleaning
-Industrial Cleaning
-Environmental Cleaning.
The company has been issued two patents and is in the process of writing new patents to protect its markets.
Partial Customer base:
US Navy
US Marine
New York Department of Transport (by specifying Ice blast to clean bridges)
Ford Motor Company
General Motors
Armstrong Industries
Robert Bosch Company
Toyota Motor Company
The technology has three attributes that are important to its markets: (1) it provides superior cleanliness, greater than that achieved by water blast; (2) it has a low waste stream approximating 7 gallons per hour versus 7 gallons per minute for comparable water blasting and (3) ice blast is a wet process and does not generate dust, and is non abrasive on soft metals, plastics, glass and other synthetic industrial products.
At the heart of the Ice blast technology is the "scrub and flush" cleaning mechanism when the ice crystals impact onto a substrate. Ice crystals deform to scrub on impact, and after impact they melt into water to flush away debris. Tests by independent companies have proved that this "scrubbing" action provides a cleanliness not matched by conventional water blast.
While it is always difficult to estimate markets, management believes that the US represents markets available to the Company over the next 10 years are:
Precision Cleaning $250 million
Industrial Cleaning $90 million
Environmental Cleaning $400 million
The company has other markets that it has not quantified, however, it has done significant testing in these markets. These markets include Marine, Nuclear and Aerospace. In addition the markets for Europe are considered to be of equal size in $ volume, but the mix will be different. The Australasia market including China, Taiwan and S Korea will take longer to develop, but will be a significant contributor to the company in later years.
Management and Staff
The company has well-rounded experience in both large and small corporations. The ability to take a product from an idea and develop it into a marketable and productive piece of equipment takes a lot of years and people. The company is proud of its employees many have been with the company since its inception.
Recent News releases show that the company has been active in year 2000:
INTERNATIONAL MARKET: EUROPE AND AUSTRALIA.
Distributors signed up in 2000 for Holland and Australia have already taken delivery of three machines and are being deployed in new markets areas such as marine infrastructure. We expect positive results from these additions to our marketing activity.
The significance of these deals emphasizes that the ice blast products can compete anywhere in the world and still be supported from Kirkland, Washington.
These distributors focus on the Industrial and Environmental cleaning markets, where asbestos abatement, lead paint removal is a major opportunity, while cleaning of locks and pump stations in the waterways of Holland is an example of how Europe is different in its requirements.
However, the Precision cleaning (automotive) market in Europe is considerably larger than Australia. The company expects that migration of its success with Ford and others in North America can be carried over to their counterparts in England, France, Germany and Italy.
PRECISION CLEANING IN ASIA - SALE TO TOYOTA
Over a sustained period in which the Company tested many products for Toyota, it concluded its first sale in the 4th quarter of 2000. . This is a significant first step into the Japanese market, where the Company has an established relationship with a trading house. The product, an SX 110, was shipped in December and installed into their production line by January 10th 2001.
This sale underscored the Company’s existing qualities:
Build equipment that can be used anywhere in the world.
Technology has world-wide appeal.
PRECISION CLEANING -NORTH AMERICA
The Company made substantial gains into this market in 2000. In the past three years the company has regularly performed tests for Ford, GM and others. In the second half of 2000, Ford engineers reviewed the Kirkland, WA facilities and engineering staff to assess the Company’s manufacturing and product integration competence. Following this successful review the Company responded to a Request for Quotation for cleaning systems. Management is confident that it will be rewarded for its patience and hard work and is expecting that these orders would be filled in the first and second quarter of 2001.
ADDITIONS TO STAFF
Supplementing the already strong engineering staff, the company is pleased to announce that Mr. Robert Fuller Jr., a Boeing engineer, has joined the advisory board as Technical Director. Mr. Fuller brings a wealth of experience in design and manufacturing.
The appointment of Mr. Jim McKinney as sales representative for Dayton and Cincinnati region strengthens the Company’s relationships in the automotive industry. Mr. Jim McKinney has spent 30 years in sales and marketing to automotive industry. |
