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Appulse
Corporation’s Centrifuges Unlimited Inc. provides separation equipment services
including new and rebuilt sales, parts, repair and maintenance
Industrial Products
Machinery
(APL-TSX)
Appulse Corporation
5920 A – 35th Street S.E.
Calgary, AB T2C2G3
Phone: 403-236-2883
Doug Baird
Chief Executive Officer
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
October 6, 2005
Company Profile:
About Appulse
Through its subsidiaries, Centrifuges Unlimited Inc. and Rolyn Oilfield Services Ltd.,
Appulse specializes in the sales, servicing and refurbishing of centrifuge equipment and
parts throughout North America and Internationally. The Corporation continues to pursue
expansion to its product base and geographic markets, in addition to adopting a program of
controlled acquisitions complementing its current activities.
Information on Centrifuges can be obtained through our website, at www.centrifuges.net
CEOCFO: Mr. Baird, will
you tell us about your background with the company?
Mr. Baird: “I was involved with a group that started the
public company Appulse. We then did a reverse take over with the base company in Calgary,
Centrifuges Unlimited Inc. They have been in business for twenty years providing sales,
service and parts supply for centrifuge equipment. This business is the core of the
Company. I worked in establishing the public company as a member of the board of directors
and joined the company approximately a year and a half ago. Mr. Bob Richards has continued
as president of Centrifuges Unlimited Inc., providing a firm continuity base for the
Company.”
CEOCFO: How has that
developed?
Mr. Baird: “We are looking at growth through a number of
areas. Our major potential is taking the business that has been developed here, and
expanding both geographically and via new applications. We are looking at eastern Canada
and recently expanded our operations in Ontario. We are expanding with some involvement in
the oil industry. The food and beverage industry has traditionally been a major market.
Geographically, most of our historical business has been in Canada. Probably fifteen or
twenty percent of our business has been in the United States and that is growing. We are
addressing new projects internationally along with potential acquisitions.”
CEOCFO: Will you tell us
more about the industry?
Mr. Baird: Many industries make use of centrifuge equipment,
so we are not limited to relying on a specific industry for business. We provide system
solutions as well as the physical equipment. A recent market focuses on waste systems
– an example of environmental project applications. Mining and oil and gas present
further new opportunities. An example from the gas side involves the cleaning of
amine/glycol used in refineries, offering a cleaning vs. replacing system with economic
and environmental implications. Many of the applications provide more efficient ways to do
things.”
CEOCFO: Is a great deal
of your business customized?
Mr. Baird: “Many of the systems are customized but not
the machines themselves. We have many customers from many industries in the United States
and Canada that rely on us for parts. We rebuild centrifuge equipment and provide service
and support, developing systems around a full range of machines. While we have dealers and
representatives, most major contracts are done from our Calgary base with the end user.
The application is set up here and the service is done from here.”
CEOCFO: Is ongoing
service a big part of revenue for you?
Mr. Baird: “It is, combined with our parts activity.
Much of the servicing occurs on a regular bases. ”
CEOCFO: Are there new
technologies involved with centrifuge?
Mr. Baird: “One of our newest planned international
applications, in its initial phases only, involves a possible joint venture with a company
that has a specialized technology for cleaning oil tanks, using our technology for
cleaning the residual from the tanks. This may be an example of the flexibility of
centrifuge technology and its application to many industries. We anticipate that the
system may result in a more efficient method of processing, yielding a reusable product
while significantly reducing processing time. This is just a potential example – we
are always researching new applications for the equipment."
CEOCFO: Is there a trend
in the industry to roll up into larger units?
Mr. Baird: “I do not think so, at least not to a
significant degree. There are many centrifuge companies of various sizes. There is
definitely an opportunity for acquisition synergy as a growth plan.”
CEOCFO: What do you see
three years down the line?
Mr. Baird: “I see much more involvement in Ontario and
internationally. I see more environmental applications and a further increase in oil and
gas activities. Our revenues have increased steadily over the last few years and we
certainly intend to maintain that growth.”
CEOCFO: How do you reach
your customers?
Mr. Baird: “The primary contact base is through our
offices in Calgary and Ontario. We have dealers in various areas to complement a small
internal marketing team. Marketing remains the major role of Bob Richards the previous
owner of Centrifuges, and our principle shareholder. He has significant contacts in many
industries, developed over a period of 20 years. The last two international project
opportunities came through our website. A project team would then be based from Calgary.
The international side is handled from here but is in its infancy, in our opinion,
compared to potential.”
CEOCFO: Why should
potential investors be interested?
Mr. Baird: “We are a small company and believe we are
headed in the right direction. There is a good growth opportunity; we have identified many
good prospects. We appreciate that the company is small right now and needs to grow in
order to make the whole thing make sense from an investor’s side. I think with that
as a focus, we present a strong potential. If you are interested in being involved in
something that is not pure oil and gas, then I think we are a good option.”
CEOCFO: In closing, what
should people know that perhaps does not jump off the page when they first look at the
company?
Mr. Baird: “Our
main strength is, of course, the core operating group - the reputation that Centrifuges
has earned over the years. We have strong contacts in many industries and that is
something that may not be evident along with the service base and the largest inventory
support in the centrifuge area.”
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