Ameriplas Holdings Ltd.
TSX VENTURE : AHL

Ameriplas Holdings Ltd.

October 28, 2005 12:43 ET

Ameriplas Reports Results for the Third Quarter 2005

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 28, 2005) - Ameriplas Holdings Ltd. ("Ameriplas" or the "Company") (TSX VENTURE:AHL) reported a profit for the third quarter ended August 31, 2005 of $43,219, mostly attributable to the re-formulated business model of securing at least some contracts that do not require the Company to purchase raw materials. As a result of this new model, the Company's total sales amount is lower than in comparative periods because raw materials can comprise up to 70% of the sale. However, while the sales figures are lower, the gross margin percentage has significantly improved.

During the nine months ended August 31, 2005, the Company had a gross margin of 8.7% compared to 5.4% in the same period last year. More importantly, during the third quarter, the Company increased production in each month of the quarter and the result was a gross margin for the third quarter of approximately 27% compared with approximately 9% for the same quarter in 2004.

The Company's cash management plan has helped the business to reduce its liabilities by $382,000 including the reduction of the line of credit by $321,000. After the quarter end, the Company plans to eliminate its operating line obligation with the bank.

The Company's comparative results for the nine months ended August 31, 2005 and August 31, 2004 are summarized below, and discussed in detail in the Management's Discussion and Analysis which is available on www.sedar.com.



(unaudited) Three Months Ended Nine Months Ended
August 31, August 31, August 31, August 31,
2005 2004 2005 2004
Revenues $573,202 $1,236,034 $1,339,336 $2,694,453
Gross margin $153,399 $ 100,102 $ 116,986 $ 146,059
Net income (loss) $ 43,219 $ 15,030 $ (313,758) $ (230,371)
Net income (loss)
per share $ 0.00 $ 0.00 $ (0.02) $ (0.01)


AMERIPLAS OPERATIONS

Ameriplas has been in the business of manufacturing plastic preforms for the Canadian and U.S. water and soft drinks bottling industry since December 1999. Preforms are made from plastic PET (polyethylene teraphthalate) pellets and sold to beverage companies that heat and blow them into the form of bottles used for their beverages. PET preforms are used industry wide in the production of plastic beverage containers to avoid the costs and difficulties of shipping bulky plastic bottles. A primary use of these bottles is for bottled water, which is the fastest growing segment of the beverage industry. Other uses include soft drinks, sports drinks, and beer.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Ameriplas Holdings Ltd.
    Mr. John Kuchne
    Investor Relations
    (250) 380-2274
    or
    Ameriplas Holdings Ltd.
    Mr. Frank Quinby
    Investor Relations
    (250) 380-2274
    or
    Ameriplas Holdings Ltd.
    Mr. Clement Lussier
    President
    (450) 346-7773
    ameriplas@sympatico.ca
    www.ameriplasinternational.com