1
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 1995
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ___________ to ___________
Commission File Number: 0-16249
CIMCO, INC.
(Exact name of registrant as specified in its charter)
Delaware 33-0251163
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
265 Briggs Avenue, Costa Mesa, California 92626
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(714) 546-4460
_____________
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past ninety (90) days.
Yes X No __
The registrant had 2,960,481 shares of common stock outstanding as of
March 15, 1995.
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CIMCO, INC. AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION
Page
----
Number
------
Item 1. Financial Statements:
Consolidated Balance Sheets -
January 31, 1995 (Unaudited) and April 30, 1994 ........................ 3
Consolidated Statements of Operations (Unaudited) -
Three Months and Nine Months Ended January 31, 1995 and 1994 ........... 4
Consolidated Statements of Cash Flows (Unaudited) -
Nine Months Ended January 31, 1995 and 1994 ............................ 5
Notes to Unaudited Consolidated Financial Statements ................... 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations .................................... 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ....................................... 11
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PART I - FINANCIAL INFORMATION
CIMCO, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS January 31, 1995 April 30, 1994
---------------- --------------
CURRENT ASSETS (Unaudited)
Cash and cash equivalents $ 1,239,807 $ 2,284,191
Short-term cash investments - 878,402
Accounts receivable, less allowance for doubtful accounts of
$87,000 at January 31, 1995 and $80,000 at April 30, 1994 13,225,0 11,345,777
Federal income tax receivable - 780,000
Inventories - at lower of cost or market
Raw materials 6,144,943 5,575,532
Work in process 1,607,653 1,117,718
Finished goods 4,116,607 4,133,985
----------- -----------
11,869,203 10,827,235
Prepaid expenses 826,002 420,393
----------- -----------
Total current assets 27,160,058 26,535,998
PROPERTY, PLANT AND EQUIPMENT - at cost
Land 3,027,012 3,314,294
Buildings 8,869,117 9,700,754
Machinery and equipment 33,943,001 32,467,331
Leasehold improvements 2,068,745 2,012,577
----------- -----------
47,907,875 47,494,956
Less accumulated depreciation and amortization 21,691,200 20,005,751
----------- -----------
26,216,675 27,489,205
OTHER ASSETS
Land held for future expansion 432,700 432,700
Other 2,333,828 2,190,578
----------- -----------
2,766,528 2,623,278
----------- -----------
$56,143,261 $56,648,481
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $ 3,325,900 $ 2,388,367
Notes payable to bank 2,393,366 2,000,000
Accounts payable 8,619,927 6,701,907
Accrued expenses 2,150,788 2,378,109
Income taxes payable 577,538 200,895
----------- -----------
Total current liabilities 17,067,519 13,669,278
LONG-TERM DEBT, net of current portion 12,158,150 13,536,333
DEFERRED INCOME TAXES 1,128,000 2,336,000
STOCKHOLDERS' EQUITY
Preferred stock - $.01 par value; authorized 5,000,000 shares;
issued and outstanding, none - -
Preferred stock - Series A Junior Participating - $.01 par value;
authorized 100,000 shares; issued and outstanding, none - -
Common stock - $.01 par value; authorized 10,000,000 shares;
issued and outstanding, 2,960,481 shares at January 31, 1995 and
2,980,481 at April 30, 1994 29,605 29,805
Capital in excess of par value 7,258,757 7,371,040
Retained earnings 18,614,820 19,872,193
Foreign currency translation adjustment 129,818 77,240
----------- -----------
26,033,000 27,350,278
Less note receivable from Employee Stock Ownership Plan (243,408) (243,408)
----------- -----------
25,789,592 27,106,870
----------- -----------
$56,143,261 $56,648,481
=========== ===========
The accompanying notes are an integral part of these statements.
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CIMCO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
January 31, January 31,
------------------ -----------------
1995 1994 1995 1994
---- ---- ---- ----
Net sales $21,089,076 $16,963,153 $59,633,145 $54,851,308
Costs and expenses:
Manufacturing costs 17,624,188 14,283,504 50,990,903 45,512,099
Engineering and tooling expenses 1,067,424 1,192,683 3,097,663 3,597,841
Selling, general and administrative expenses 2,286,018 2,019,993 6,645,686 6,035,923
Operating profit (loss) 111,446 (533,027) (1,101,107) (294,555)
Interest income 2,927 31,507 42,809 76,720
Interest expense 338,447 198,855 905,079 559,382
----------- ----------- ----------- -----------
335,520 167,348 862,270 482,662
----------- ----------- ----------- -----------
Loss before credit for income taxes (224,074) (700,375) (1,963,377) (777,217)
Credit for income taxes (78,000) (261,000) (706,000) (472,000)
----------- ----------- ----------- -----------
Net loss $ (146,074) $ (439,375) $(1,257,377) $ (305,217)
=========== =========== =========== ===========
Loss per common equivalent share $ (.05) $ (.15) $ (.42) $ (.10)
=========== =========== =========== ===========
The accompanying notes are an integral part of these statements.
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CIMCO, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNAUDITED)
Nine Months Ended
January 31,
-----------------------------
1995 1994
----------- -----------
Cash flow from operating activities:
Net earnings (loss) $(1,257,377) $ (305,217)
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 2,591,840 2,388,788
Gain on sale of machinery and equipment (12,496) (74,605)
Increase in allowance for doubtful accounts 7,000 9,000
Increase in accounts receivable (1,886,269) (393,220)
Decrease in federal income tax receivable 780,000 -
Increase in inventory (1,041,968) (308,519)
Increase in prepaid expenses (405,609) (239,540)
Increase in other assets (143,250) (1,449,689)
Increase (decrease) in accounts payable 1,918,020) (526,573)
(Decrease) increase in accrued expenses (227,321) 91,165
Increase (decrease) in income taxes payable 376,643 (904,196)
Decrease in deferred income taxes (1,208,000) -
Translation adjustment 52,582 -
----------- -----------
Total adjustments 801,172 (1,407,389)
----------- -----------
Net cash used by operating activities (456,205) (1,712,606)
Cash flow from investing activities:
Proceeds from sale of fixed assets 929,252 519,775
Redemptions of short-term cash investments 889,460 151,334
Purchases of short-term cash investments (11,058) (416,201)
Capital expenditures (2,236,066) (6,825,202)
----------- -----------
Net cash provided (used) in investing activities (428,412) (6,570,294)
Cash flow from financing activities:
Net short-term borrowings 393,366 350,000
Proceeds from long-term debt 1,835,000 10,025,000
Principal payments on long-term debt (2,275,650) (1,858,192)
Proceeds from issuance of common stock - 39,200
Repurchase of common stock (112,483) -
Increase in note receivable from ESOP - (5,996)
----------- -----------
Net cash provided (used) by financing activities (159,767) 8,550,012
----------- -----------
Net increase (decrease) in cash and cash equivalents (1,044,384) 267,112
Cash and cash equivalents at beginning of the period 2,284,191 1,122,902
----------- -----------
Cash and cash equivalents at end of period $ 1,239,807 $ 1,390,014
=========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 881,410 $ 569,887
Income taxes $ 19,510 $ 414,270
The accompanying notes are an integral part of these statements.
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CIMCO, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. PRESENTATION OF INTERIM INFORMATION
The consolidated balance sheet as of January 31, 1995 and the related
consolidated statements of operations and cash flows for the three-month and
nine-month periods ended January 31, 1995 and 1994 are unaudited; in the
opinion of management, all adjustments for a fair presentation of such
financial statements have been included. Such adjustments consisted only of
normal recurring items. Interim results are not necessarily indicative of
results for a full year.
The Company recognizes income on products in the month in which
shipment is made. Revenue for tooling is generally recognized in the month in
which initial samples are submitted for customer acceptance or to a lesser
extent by terms agreed upon by the Company and its customer.
The financial statements and notes are presented as permitted by Form
10-Q, and do not contain certain information included in the Company's audited
financial statements and notes for the fiscal year ended April 30, 1994.
2. LONG-TERM DEBT
On February 1, 1995 the Company replaced its credit agreement with its
bank. The new credit agreement with its bank provides for a revolving line of
credit not to exceed $6,000,000 renewable on September 15, 1995, and a
$7,500,000 term loan, payable in forty-eight equal monthly installments
commencing March 1, 1995. Borrowings under the revolving line of credit are
contingent on maintaining covenants related to certain domestic trade
receivables and inventories and proceeds of the foregoing. In addition, the
credit agreement contains various covenants that, among other things, require
the maintenance of certain balance sheet ratios, minimum levels of net worth
(as defined in the credit agreement), restrictions which limit the payment of
dividends to $100,000 annually, and limitations on the acquisition of, or
investment in, other entities. The debt is secured by certain intangible
assets, equipment and fixtures, inventories, as well as certain real property
in Corona, California. The revolving line of credit and the term loan bear
interest at the bank's prime rate plus 0.25% and 0.50% respectively.
3. EARNINGS (LOSS) PER COMMON EQUIVALENT SHARE
Earnings (loss) per common equivalent share are based on the weighted
average number of shares of common stock and common stock equivalents (dilutive
stock options) outstanding during the related periods. The weighted average
number of common stock equivalent shares includes shares issuable upon the
assumed exercise of stock options less the number of shares assumed purchased
with the proceeds available from such exercise. Fully diluted net earnings per
share does not differ materially from net income per common share and common
share equivalent.
Weighted average shares outstanding were 2,960,688 and 2,981,486 for
the three-month periods and 2,969,256 and 2,979,228 for the nine-month periods
ended January 31, 1995 and 1994, respectively.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
A. RESULTS OF OPERATIONS
Three Months ended January 31, 1995 vs. January 31, 1994
The following table shows the amounts of certain items included in the
Company's statements of operations and percentages of these items as they
relate to net sales for the three months ended January 31, 1995 and 1994; also
shown are the amounts and percentages of increase or decrease of these items in
the current period as compared to the corresponding period in the preceding
year. Unless otherwise indicated, references below to specific periods are to
the Company's fiscal years ended April 30.
Amounts and Percentages of Certain Items
(Dollars in Thousands)
Three Months Ended
--------------------------------------- Increase (Decrease)
January 31, 1995 January 31, 1994 1995 vs. 1994
----------------- ------------------ -------------------
Amount % Amount % Amount %
------- ------ ------- ------ ------ -----
<C
Net sales $21,089 100.0 $16,963 100.0 $4,126 24.3
------- ------ ------- ------ ------
Manufacturing costs 17,624 83.6 14,284 84.2 3,340 23.4
Engineering and tooling expenses 1,067 5.1 1,192 7.0 (125) (10.5)
Selling expenses 772 3.7 626 3.7 146 23.3
General and administrative expenses 1,514 7.1 1,394 8.2 120 8.6
Interest expense, net 336 1.6 167 1.0 169 100.5
------- ------ ------- ------ ------
Loss before credit for income taxes (224) (1.1) (700) (4.1) 476 68.0
Credit for income taxes (78) (0.4) (261) (1.5) 183 70.1
------- ------ ------- ------ ------
Net earnings (loss) $ (146) $ (0.7) $ (439) $ (2.6) $ 293 66.8
======= ====== ======= ====== ======
Net sales increased 24.3% to $21,089,000 in the current quarter from
$16,963,000 in the third quarter last fiscal year after eliminating
intersegment sales of $938,000 and $958,000 respectively, in those quarters.
Sales increased at a rate greater than that of costs and expenses, largely for
the reasons discussed below.
Gross sales of the commercial/industrial segment increased 27.2% to
$7,825,000 in the current quarter from $6,152,000 of a year ago. The increase
was largely the result of greater volumes in both the sales of assembled
products and tooling sales, as well as price increases implemented in the third
quarter of fiscal 1995. These sales increases were partially offset by the
continued downward trend of sales to the segment's largest customer. The fiscal
1995 third quarter operating loss was significantly reduced due to the
previously mentioned sales increases and to reductions in direct labor costs
and manufacturing overhead costs as percentages of sales. The improvement in
operating profit was partially offset by increased costs associated with the
use of outside contractors related to assembled products. Primarily as a
result of the foregoing, the operating loss for the current quarter was
$384,000 versus $773,000 for the same quarter last fiscal year.
The medical segment's gross sales remained relatively unchanged,
decreasing 0.1% to $3,287,000 in the current quarter from $3,291,000 during
the same period last year. Operating profit increased in the current quarter
due to reduced manufacturing overhead expenses and lower costs associated with
outside contractors. Higher general and administrative expenses partially
offset the profit improvement. The operating profit for the current quarter
was $116,000 compared to a loss of $18,000 for the same quarter last year.
The compounding segment's gross sales were $10,915,000 for the third
quarter of this year, up 28.7% from $8,478,000 during the same quarter last
year. This volume increase was the result of greater foreign and domestic
sales to the segment's largest customer and to higher sales to other existing
customers. Operating profits increased in the current quarter primarily due to
reduced manufacturing expenses as a percentage of sales. The operating profit
increase was partially offset by greater raw material costs, higher domestic
selling expenses and greater foreign general and administrative expenses.
Operating profit improved to $380,000 in the current quarter versus $258,000
for the same quarter a year ago.
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Engineering and tooling expenses decreased 10.5% to $1,067,000 in the
current quarter from $1,192,000 during the same quarter last year as tooling
sales increased 16.0%. Manufacturing expenses decreased as a percentage of
tooling sales reflecting the relatively fixed nature of manufacturing overhead.
The overall decrease was partially offset by higher direct labor and costs
associated with the use of outside contractors, although these costs decreased
as a percentage of tooling sales. The expenses were 5.1% of consolidated net
sales in the third quarter of the current year versus 7.0% in the same period a
year ago.
Selling expenses increased 23.3% to $772,000 in the current quarter
from $626,000 in the same quarter last year. The increase was primarily due to
higher salary and related expenses in both the compounding and the medical
segments. Although increasing in amount, the expenses remained 3.7% of net
sales for both periods, respectively.
General and administrative expenses increased 8.6% to $1,514,000 in
the current quarter from $1,394,000 in the same quarter last year. The
increase was largely the result of higher foreign general and administrative
expenses in the compounding segment primarily related to currency exchange
losses and of higher salary related costs in the medical segment. The expenses
were 7.1% of net sales in the current quarter versus 6.8% of net sales in the
third quarter of last year.
Net interest expense increased to $336,000 or 1.6% of net sales in the
current quarter from $167,000 or 0.9% of net sales in the same quarter a year
ago. The increase was largely the result of higher interest rates and lower
interest income on reduced short-term cash investments in the third quarter of
fiscal 1995.
The net tax benefit resulted from a pre-tax loss in the commercial
industrial segment and from the tax benefits of the Singapore Investment
Allowance.
The net loss for the third quarter of the current year was $146,000
versus $439,000 for the same quarter last year. The improved performance in the
third quarter of fiscal 1995 resulted primarily from the previously mentioned
increases in sales and reductions in manufacturing costs, partially offset by
increased selling, general and administrative expenses and higher net interest
expense.
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Nine Months ended January 31, 1995 vs. January 31, 1994
The following table shows the amounts of certain items included in the
Company's statements of operations and percentages of these items as they
relate to net sales for the nine months ended January 31, 1995 and 1994; also
shown are the amounts and percentages of increase or decrease of these items in
the current period as compared to the corresponding period in the preceding
year. Unless otherwise indicated, references below to specific periods are to
the Company's fiscal years ended April 30.
Amounts and Percentages of Certain Items
(Dollars in Thousands)
Nine Months Ended
--------------------------------------- Increase (Decrease)
January 31, 1995 January 31, 1994 1995 vs. 1994
------------------- ---------------- -------------------
Amount % Amount % Amount %
------- ------ ------- ------ ------- ------
Net sales $59,633 100.0 $54,852 100.0 $ 4,781 8.7
------- ------ ------- ------ -------
Manufacturing costs 50,991 85.5 45,512 83.0 5,479 12.0
Engineering and tooling expenses 3,098 5.2 3,598 6.6 (500) (13.9)
Selling expenses 2,132 3.6 2,011 3.7 121 6.0
General and administrative expenses 4,513 7.5 4,025 7.2 488 12.1
Interest expense, net 862 1.4 483 0.9 379 78.6
------- ------ ------- ------ -------
Loss before credit for income taxes (1,963) (3.2) (777) (1.4) (1,186) (152.6)
Credit for income taxes (706) (1.2) (472) (0.8) (234) (49.6)
------- ------ ------- ------ -------
Net earnings (loss) $(1,257) $ (2.0) $ (305) $ (0.6) $ (952) (312.0)
======= ====== ======= ====== =======
Net sales increased 8.7% to $59,633,000 in the current nine-months
from $54,851,000 in the same period last fiscal year after eliminating
intersegment sales of $2,938,000 and $3,333,000, respectively, in those
periods. Costs and expenses increased at a rate greater than that of sales,
largely for the reasons discussed below.
Gross sales of the commercial/industrial segment increased 0.5% to
$22,594,000 in the current nine-months from $22,491,000 of a year ago. The
increase was largely the result of increased sales of assembled products,
offset by the continued downward trend of sales to the segment's largest
customers and by lower tooling sales. Manufacturing costs increased at a rate
greater than that of sales primarily due to increased outside processing costs,
assembly-related labor costs and to the continued under absorption of certain
fixed manufacturing expenses. The increased costs were partially offset by
reduced raw material costs resulting from a change in product mix as sales of
products that include higher labor costs became a greater portion of gross
sales. Increased general and administrative expenses related to industrial
development revenue bond (IDRB) loan cost amortization and lower gains on sales
of fixed assets which did not reduce general and administrative expenses to the
same extent in the current period as compared to last fiscal year, further
reduced operating results in the current period. Largely as a result of the
foregoing, the operating loss for the current period was $1,958,000 versus a
loss of $1,370,000 for the same period last fiscal year.
The medical segment's gross sales decreased 3.7% to $9,204,000 in the
current period from $9,556,000 during the same period last year. Molding sales
decreased in the current period, partially offset by increased sales of
proprietary respiratory products. Lower sales volumes, increases in direct
labor and raw material costs resulting from adverse changes in product mix and
higher selling salaries associated with proprietary product sales reduced
operating profit in the current period. Lower outside costs and decreased
manufacturing expenses partially offset the previously mentioned reductions in
operating profit. The operating loss for the current nine months was $173,000
compared to an operating profit of $298,000 for the same period last year.
The compounding segment's gross sales were $30,773,000 for the current
nine months, up 17.7% from $26,137,000 during the same period last year.
This volume increase was the result of greater foreign and domestic sales to
the segment's major customer and foreign sales to new customers, which was
partially offset by reduced domestic sales to another major customer and to
lower intercompany sales to the commercial/industrial segment. Operating
profit increased in the current nine months primarily due to reduced
manufacturing overhead costs and direct labor costs as percentages of sales.
Greater domestic selling expenses and higher foreign general and administrative
expenses had negative impacts on operating profit in the current period,
although these expenses remained relatively constant as a percentage of the
segment's gross sales. Operating profit was $1,029,000 in the current period
versus $777,000 for the same period a year ago as a result of the foregoing.
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Engineering and tooling expenses decreased 13.9% to $3,098,000 in the
current nine months from $3,598,000 during the same period last year as tooling
sales decreased 9.4%. Expenses decreased primarily due to reduced costs
associated with the decreased use of outside contractors not required with the
lower sales volume. The expenses were 5.2% of net sales in the first nine
months of the current year versus 6.6% of net sales in the same period a year
ago.
Selling expenses increased 6.0% to $2,132,000 in the current period
from $2,010,000 in the same period last year. The increase was largely the
result of higher domestic and foreign selling salaries and greater domestic
sales commissions in the compounding segment and higher selling salaries in the
medical segment. The expenses were 3.6% of net sales in the current period and
3.7% of net sales for the same period last year.
General and administrative expenses increased 12.1% to $4,514,000 in
the current nine months from $4,025,000 in the same period last year. The
increase was largely the result of lower gains from sales of fixed assets, the
commencement of amortization of loan costs associated with the issuance of the
Industrial Development Revenue Bonds issued late in the second half of last
fiscal year and foreign exchange losses in the compounding segment. The
expenses were 7.5% of net sales in the current period and 7.4% of net sales in
the same period last year.
Net interest expense increased to $862,000 or 1.4% of net sales in the
current period from $483,000 or 0.8% of net sales in the same period a year
ago. The increase was largely the result of higher interest rates, compounded
by lower interest income resulting from the decrease in short-term investments
during the current nine-month period.
The net tax benefit resulted from a pre-tax loss in the
commercial/industrial and medical segments and from the tax benefits of the
Singapore Investment Allowance.
The net loss for the current nine months was $1,257,000 versus
$305,000 for the same period last year. As discussed above, the current
period's loss resulted primarily from increased outside processing and higher
assembly-related labor costs in the commercial/industrial segment and from
underutilization of manufacturing plant capacity of the commercial/industrial
and medical segments, as well as higher selling, general and administrative
expenses.
B. LIQUIDITY AND CAPITAL RESOURCES
The Company has previously financed its capital expenditures and
working capital requirements from operating cash flow, trade credit, borrowings
under a then existing credit agreement and proceeds from the industrial
development revenue bond. At January 31, 1995, the Company's $1,422,000
available source of funds consisted of approximately $179,000 in funds
remaining from the IDRB, $1,240,000 in cash and cash equivalents and $3,000 in
unused lines of credit with its bank.
Working capital was $10,093,000 at January 31, 1995, versus
$12,867,000 at April 30, 1994. The increase in accounts receivable was the
result of greater compounding sales and higher commercial/industrial sales in
the third quarter of fiscal 1995, partially reduced by lower trade receivables
in the medical segment. The increase in inventories was largely the result of
a higher mix of assembly products in the commercial/industrial segment as their
sales began to increase in the latter part of the current nine months.
Capital expenditures aggregated $2,236,000 and $6,825,000 in the first
nine months of the current and last fiscal years, respectively. Expenditures
made from funds provided by the IDRB were $498,000 and $4,827,000 in the nine
months of the current and prior years, respectively. Expenditures made from
funds other than the IDRB were used to upgrade machinery and equipment in all
segments.
On February 1, 1995 the Company replaced its credit agreement with its
bank. The new credit agreement with its bank provides for a revolving line of
credit not to exceed $6,000,000 renewable on September 15, 1995, and a
$7,500,000 term loan, payable in forty-eight equal monthly installments
commencing March 1, 1995. Borrowings under the revolving line of credit are
contingent on maintaining covenants and related to certain domestic trade
receivables and inventories and proceeds of the foregoing. In addition, the
credit agreement contains various covenants that, among other things, require
the maintenance of certain balance sheet ratios, minimum levels of net worth
(as defined in the credit agreement), restrictions which limit the payment of
dividends to $100,000 annually, and limitations on the acquisition of, or
investment in, other entities. The debt is secured by certain intangible
assets, equipment and fixtures, inventories, as well as certain real property
in Corona, California. The revolving line of credit and the term loan bear
interest at the bank's prime rate plus 0.25% and 0.50% respectively.
The Company believes the present working capital in combination with
operating cash flow, trade credit, borrowings under the Company's new credit
agreement, and proceeds from the issuance of the above mentioned industrial
development revenue bond will be adequate to support working capital
requirements and capital expenditures for the next twelve months.
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PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) EXHIBITS
10.41 Credit Agreement dated February 1, 1995, between Wells
Fargo Bank, National Association and Registrant.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CIMCO, INC.
(Registrant)
Date: March 15, 1995 /s/ RUSSELL T. GILBERT
---------------------------------------
Russell T. Gilbert
President and Chief Executive Officer
Date: March 15, 1995 /s/ L. RONALD TREPP
---------------------------------------
L. Ronald Trepp
Chief Financial Officer
(Principal Financial and Accounting
Officer)
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