SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
November 8, 1995
Date of Report (Date of earliest event reported)
COMDISCO, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-7725 36-2687938
(Commission File Number) (IRS Employer Identification No.)
6111 North River Road, Rosemont, Illinois 60018
(Address of principal executive offices) (Zip code)
(708) 698-3000
Registrant's telephone number
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Item 5. Other Events.
On November 8, 1995, Comdisco, Inc. announced fourth quarter and fiscal 1995
year end operating results.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99. Press Release announcing results of operations.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this Current Report on Form 8-K to be signed on
its behalf by the undersigned hereunto duly authorized.
COMDISCO, INC.
Date: November 27, 1995 By: David J. Keenan
Its: Vice President and
Corporate Controller
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Exhibit 99. Press Release Announcing Results of Operations
For Immediate Release
Media Contact: Mary Moster 708/518-5147
COMDISCO ANNOUNCES FOURTH QUARTER AND 1995 YEAR END RESULTS;
ANNOUNCES 3-FOR-2 STOCK SPLIT; INCREASES QUARTERLY CASH DIVIDEND BY 17%;
ANNOUNCES $50 MILLION SHARE REPURCHASE PROGRAM
Rosemont, IL, November 8, 1995: Comdisco, Inc. today reported
operating results for its fourth quarter and fiscal year ended
September 30, 1995.
OPERATING RESULTS
For the quarter ended September 30, 1995, the company reported total
revenue of $584 million, versus $519 million for the prior-year period. Net
earnings for the quarter were $25 million, or $.68 per common share, versus a
net loss of ($21) million, or ($.53) per common share, for the prior-year
period.
For the year ended September 30, 1995, the company reported total
revenue of $2.2 billion, versus $2.1 billion, for the prior-year period. Net
earnings were $96 million, or $2.60 per common share, versus $44 million, or
$1.16 per common share, for the prior-year period.
During the fourth quarter of fiscal 1994, the company recorded a
one-time, after-tax IBM litigation settlement charge of ($42) million, (($1.12)
per common share for the quarter; ($1.09) per common share for the year).
Therefore, net earnings comparisons, before IBM litigation settlement, are as
follows: for the quarter ended September 30, 1995, $25 million, or $.68 per
common share, versus $21 million, or $.59 per common share, for the prior-year
period; for the year ended September 30, 1995, $96 million, or $2.60 per common
share, versus $86 million, or $2.25 per common share, for the prior-year period.
The company also announced that on November 7, 1995, its board of
directors declared the following:
Stock split: The company announced a 3-for-2 common stock split in the
form of a 50 percent stock dividend. The stock split is the company's ninth
since going public in 1971.
Cash dividends: The company increased its quarterly cash dividend by 17
percent to $.07 per share, post-split to common stockholders. The common stock
split will be effected and the cash dividend will be payable on December 8,
1995, to stockholders of record as of November 17, 1995.
The company declared a quarterly cash dividend of $.55 per share to
preferred stockholders (Series A and B). The preferred stock dividend will be
payable on December 15, 1995, to preferred stockholders of record (Series A and
B) on November 30, 1995. Comdisco had 34,798,510 shares, and 3,625,800 shares of
common and preferred (Series A and B) stock outstanding, respectively, at
September 30, 1995.
Share repurchase: The company authorized an expenditure of up to an
aggregate of $50 million to purchase shares of the company's currently
outstanding common and/or preferred stock or other debt securities of the
company. Any further purchases would depend on market and other conditions and
would be made in the open market or otherwise at such prices as the company may
from time to time approve.
CEO COMMENTARY
Commenting on the company's results, Jack Slevin, president and chief
executive officer, stated, "1995 was the best year in Comdisco's history. The
company had a record year in terms of revenue, lease volume, and earnings per
share. During 1995, we made significant progress in the areas of operating
performance and shareholder value.
"Our diversified businesses continued their upward trend in 1995,
contributing 42 percent of pre-tax earnings, up 50 percent from 1994's
contribution. We anticipate that these Comdisco businesses -- Disaster Recovery
Services, Electronics, International, Medical and Venture Lease -- will
contribute almost half of our pre-tax earnings in 1996. Foremost among our
successes in 1995 was Disaster Recovery Services, with a 61 percent pre-tax
earnings increase over the prior year. Also, our fastest growing business,
Electronics, saw its revenue more than double for 1995, exceeding the $100
million mark after only its third year of operation.
"Comdisco recently acquired NetforceMTI, one of the nations premier
enterprise network services organizations. This acquisition will complement
Comdisco's network experience in leasing, remarketing and business continuity
and will play an important role in the company's systems integration and desktop
asset management services.
"In 1995, we made great strides in increasing shareholder value. Our
stockholders experienced a total return of 45 percent on their investment in
Comdisco. The company repurchased over 2.5 million shares of its common stock.
We believe Comdisco stock is a good investment and we will continue to utilize
our growing free cash flow to repurchase shares of the company's stock.
"We have put in place successful operating strategies that will
increase the services aspect of our business. We feel these strategies will help
us deliver stronger global results in 1996 and continue to maximize shareholder
return."
Comdisco (NYSE:CDO) is one of the world's leading providers of
solutions that help organizations reduce technology cost and risk. These
services include equipment leasing and remarketing; business continuity and
related consulting services; desktop asset management tools and services;
systems integration; and more.
# # #
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Comdisco, Inc. and Subsidiaries
Consolidated Statements of Earnings
For the Three and Twelve Months Ended September 30, 1995 and 1994
(Dollars in millions except per share data)
<TABLE>
<CAPTION>
Three months Twelve months
ended September 30, ended September 30,
1995 1994 1995 1994
Revenue
Leasing
<S> <C> <C> <C> <C>
Operating $ 305 $ 242 $1,117 $1,002
Direct financing 43 47 180 186
Sales-type 66 95 276 350
------ ------ ------ ------
Total leasing 414 384 1,573 1,538
Sales 89 64 358 271
Disaster recovery 70 64 267 242
Other 11 7 42 47
------ ------ ------ ------
Total revenue 584 519 2,240 2,098
------ ------ ------ ------
Costs and expenses
Leasing
Operating 227 182 824 746
Sales-type 43 64 199 258
------ ------ ------ ------
Total leasing 270 246 1,023 1,004
Sales 79 54 304 225
Disaster recovery 62 58 238 224
Selling, general and administrative 61 56 233 213
IBM litigation settlement - 70 - 70
Litigation charge - - - 10
Interest 68 65 274 263
------ ------ ------ ------
Total costs and expenses 540 549 2,072 2,009
------ ------ ------ ------
Earnings (loss) before income taxes 44 (30) 168 89
Income taxes (benefit) 17 (12) 64 36
------- ------ ------- ------
Net earnings (loss) before preferred dividends 27 (18) 104 53
Preferred dividends (2) ( 3) (8) (9)
------- ------ ------- ------
Net earnings (loss) to common stockholders $ 25 $ (21) $ 96 $ 44
======= ======= ======= ======
Retained earnings at beginning of period $ 742 $ 705 $ 681 $ 650
Net earnings (loss) to common stockholders 25 (21) 96 44
Cash dividends paid on common stock (3) (3) (13) (13)
------- ------ ------- ------
Retained earnings at end of period $ 764 $ 681 $ 764 $ 681
======= ====== ======= ======
Net earnings (loss) per common and common equivalent share:
Net earnings (loss) to common stockholders $ 0.68 $(0.53) $ 2.60 $ 1.16
======= ====== ======= ======
Common and common equivalent shares outstanding 37 37 37 39
======= ======= ======= ======
</TABLE>
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