Cimco, COSTA MESA

Nature of Business: Manufactures high-precision thermoplastic components.

Total Employees: 804 In Orange County: 585 Stock Listing in The Times: On NASDAQ as “Cimco� Ticker Symbol: “CIMC� Friday’s Close: $7 One-Week Change: Down $.75 Analyst Review: “The economic winds have not been very good to Cimco’s customers, who have cut back on their orders. The company also expanded a little too quickly in 1990, and revenues have not caught up with extra overhead. Again, that’s primarily due to the economic downturn. But tooling orders are running 50% ahead of last year, though subsequent revenues won’t show up until fiscal 1993. The story here is that Cimco is a quality plastics injection molding producer. They have scaled back and are so mean and lean that when the orders come back it won’t take much to produce at profitable percentages. So you should see earnings rebound quite quickly. Short term, their balance sheet will allow them to survive. This is one of the stocks you want to be looking at within the next six months.

--Martin J. Cosgrove, analyst, Wedbush Morgan Securities, Los Angeles

Sales and Profits

Sales: 1989: $55.0 million 1990: $57.4 million 1991: $64.5 million

2 Quarters: 1991: $30.8 million 1992: $34.5 million

Profits: 1989: $3.2 million 1990: $$2.0 million 1991: $2.6 million

2 Quarters: 1991: $1.3 million 1992: $.367 million

Corporate Outlook: “Cimco has been affected by the recession., but our balance sheet is healthy and we should be able to weather the storm. In the next few years, we look to expand into international markets--a process already begun with the opening of our operations in Singapore in September. We are also broadening our customer base so we have reliance on a few large customers, and we plan to reduce operatingcosts of all the business units.

--L. Ronald Trepp, chief financial officer

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

FISCAL YEAR ENDING Apr. 30, ’89 APR. 30, ’90 APR. 30, ’91 52-Week High $15.41 $16.00 $13.75 52-Week Low $10.41 $9.88 $7.50 Book Value per Share $7.03 $7.68 $8.60 Price per Share $14.80 $10.50 $11.00 Net Earnings (Loss) per Share $1.05 $0.66 $0.85 Price-to-Earnings Ratio 14:1 16:1 13:1 Average Return on Investor Equity 15% 8% 10%

FISCAL YEAR ENDING 2 QTRS. ’91 2 QTRS. ’92 52-Week High $13.75 $12.00 52-Week Low $7.50 $6.50 Book Value per Share $8.45 $8.66 Price per Share $8.25 $8.75 Net Earnings (Loss) per Share $0.41 $0.12 Price-to-Earnings Ratio 10:1 36:1 Average Return on Investor Equity 10% 3%

Source: Cimco Inc.