CIMCO announces first quarter results for fiscal year 1996.COSTA MESA, Calif.--(BUSINESS WIRE)--Sept. 15, 1995--CIMCO Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CIMC CIMC Certified Investment Management Consultant (Institute for Investment Management Consultants) CIMC California Indian Manpower Consortium CIMC Club Internaute Montreal Cafe (Montreal, Quebec, Canada) ) Friday reported a net loss of $400,000, or $.14 per share, for its first fiscal quarter ended July 31, 1995, compared with a net loss of $570,000, or $.19 per share, in the prior year period. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the current first quarter increased 38 percent to $25.2 million from $18.3 million, for the same period a year ago. A revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of prior years workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. claims and a loss based on disposition of leasehold improvements in connection with the company's restructuring plan adversely impacted the first quarter net loss by approximately $186,000. CIMCO's Compounding Group continued its consistent growth with an 83 percent increase in gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. and an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $1.6 million, five times greater than the first quarter last year. Domestic and international sales for the group were led by significant increases in volume from a major customer in the computer and electronics markets. Sales for the Medical Group remained relatively flat, although the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was reduced by 84 percent to $54,000. The improvement reflected lower raw material and direct labor costs, as a percentage of sales, as well as a 24 percent reduction in general and administrative expenses. Expenses included a charge of approximately $77,000 for the disposition of leasehold improvements related to the previously announced restructuring of this group. Without this charge, the Medical Group would have reported an operating profit of $23,000. Gross sales for the Commercial/Industrial Group decreased by 24 percent during the quarter, and the operating loss widened to $1.7 million, due primarily to lower sales, underutilization of plant capacity, indirect labor and workers' compensation expense due to a subjective third party revaluation of prior period reserves for open claims. "We continue to see rapid growth in the Compounding Group and significant improvements in our Medical Group," said Russell T. Gilbert, president and chief executive officer. "Unfortunately, these gains were again overshadowed by the sub-standard performance of the Commercial/Industrial Group. "However, the positive results of the integration of our commercial/industrial and medical molding groups in the first quarter, coupled with the general downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of our Southern California manufacturing operations, should become evident in our second quarter." Founded in 1959, CIMCO CIMCO Card Image Correction Inc. is a major developer and manufacturer of high performance plastic components for commercial, industrial and medical markets. The company also custom formulates and compounds reinforced thermoplastic materials. CIMCO supplies more than 100 original equipment manufacturers in the computer, electronics, fluid handling, automotive safety, telecommunications and health care industries. -0-
CIMCO Inc. Selected Financial Data
(unaudited)
Quarter Ended July 31, 1995 July 31, 1994 Net sales $25,213,000 $18,268,000 Loss before income tax (584,000) (890,000) Income tax benefit (184,000) (320,000) Net loss (400,000) (570,000) Earnings (loss) per common share (primary) (.14) (.19) Weighted average shares outstanding 2,960,481 2,980,566 CONTACT: Pondel Parsons & Wilkinson Cecilia A. Wilkinson, 310/207-9300 or CIMCO Inc. L. Ronald Trepp, 714/546-4460 |
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