CIMCO REPORTS RESULTS FOR FOURTH QUARTER AND FISCAL YEAR
COSTA MESA, Calif., June 16 /PRNewswire/ -- Cimco Inc. (NASDAQ: CIMC) today reported lower earnings for the year ended April 30, 1992. Fourth quarter performance, however, reflected a significant improvement in both sales and income over the prior three fiscal quarters of 1992.
Net income for the fiscal 1992 year equalled $1.1 million, or $.37 per share. This contrasts with net income of $2.6 million, or $.85 per share, in fiscal 1991. Revenues for the 1992 fiscal year rose 9 percent to a historic high of $70.1 million, up from $64.5 million a year ago.
Net income for the 1992 fiscal fourth quarter ended April 30, 1992, accounted for more than half the year's profits at $587,000, or $.20 per share, vs. net income of $723,000, or $.24 per share, for the corresponding quarter last year. Revenues for the fiscal 1992 fourth quarter reached $19.2 million, up from $17.5 million in the prior year's fourth quarter.
"The fourth quarter improvement in Cimco's performance comes after a year of working to realign our operations to effectively deal with a significant fall-off in business from our largest customer, the resultant under-utilization of plant capacity, and increasing pricing pressures in a more competitive marketplace," said President and Chief Executive Officer Russell T. Gilbert. "Management has intensified the focus on programs to diversify Cimco's customer base, improve productivity and reduce costs, while continuing our strategic emphasis on training and quality. These efforts have improved our ability to react quickly and effectively to changes in our business environment and are reflected in fourth quarter sales and earnings performance."
Gilbert attributed the year's sales growth to volume increases at the company's Medical and Compounding Materials Groups, somewhat offset by a decline in sales in the Commercial/Industrial Group. He added, "Sales for the Commercial/Industrial Group have turned up in the fourth quarter, and our 1993 goals call for growth across the board for all three of our operating groups."
Founded in 1959, Cimco 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, office equipment, health care, construction, irrigation, and automotive safety industries.
Selected Financial Data
April 30, 1992 April 30, 1991
Net sales $19,196,000 $17,467,000
Earnings before taxes 893,000 1,198,000
Provision for income taxes 306,000 475,000
Net earnings 587,000 723,000
Earnings per common share (primary) .20 .24
shares outstanding 3,004,006 2,990,090
April 30, 1992 April 30, 1991
Net sales $70,132,000 $64,515,000
Earnings before taxes 1,693,000 4,264,000
Provision for income taxes 593,000 1,705,000
Net earnings 1,100,000 2,559,000
Earnings per common share (primary) .37 .85
shares outstanding 2,975,062 3,020,814
/CONTACT: S. Suki Shattuck of Cimco, 714-546-4460, ext. 252; or Cecilia A. Wilkinson of Pondel Parsons & Wilkinson, 310-207-9300, for Cimco/
(CIM) CO: Cimco Inc. ST: California IN: SU: ERN KJ -- LA010 -- 0508 06/16/92 09:04 EDT