UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 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 1-7725
I.R.S. Employer Identification Number 36-2687938
COMDISCO, INC.
(a Delaware Corporation)
6111 North River Road
Rosemont, Illinois 60018
Telephone: (708) 698-3000
Name of each Number of shares
Title of exchange on outstanding as of
each class which registered March 31,1995
Common stock, New York Stock Exchange 35,242,045
$.10 par value Chicago Stock Exchange
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 90 days. YesXX No .
<PAGE>
Comdisco, Inc. and Subsidiaries
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Statements of Earnings and Retained Earnings --
Three and six months Ended March 31, 1995 and 1994 3
Consolidated Balance Sheets --
March 31, 1995 and September 30, 1994 4
Consolidated Statements of Cash Flows --
Three and Six Months Ended March 31, 1995 and 1994 5
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 15
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Comdisco, Inc. and Subsidiaries
<CAPTION>
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (UNAUDITED)
(in millions except per share data)
For the Three and Six Months Ended March 31, 1995 and 1994
Three Months Ended Three Months Ended
March 31, March 31,
<S> <C> <C> <C> <C>
Revenue 1995 1994 1995 1994
Leasing
Operating $272 $251 $521 $516
Direct financing 46 47 93 93
Sales-type 93 100 157 181
Total leasing 411 398 771 790
Sales 105 65 195 143
Diaster recovery 65 60 129 118
Other 12 6 22 14
Total revenue 593 529 1,117 1,065
Costs and expenses
Leasing
Operating 202 187 383 383
Sales-type 75 80 121 143
Total leasing 277 267 504 526
Sales 89 52 163 118
Disaster recovery 58 56 116 111
Selling, general and administrative 58 49 114 97
Interest 70 65 138 134
Total costs and expenses 552 489 1,035 986
Earnings before income taxes 41 40 82 79
Income taxes 15 16 31 32
Net earnings before preferred dividends 26 24 51 47
Preferred dividends (2) (2) (4) (4)
Net earnings to common stockholders $ 24 $ 22 $ 47 $ 43
Retained earnings at beginning of period $701 $668 $681 $ 650
Net earnings to common stockholders 24 22 47 43
Cash dividends paid on common stock (4) (4) ( 7) ( 7)
Retained earnings at end of period $721 $686 $ 721 $ 686
Net earnings per common and common
equivalent share:
Net earnings to common stockholders $.64 $.55 $1.26 $1.09
Cash dividends paid per common share $.09 $.09 $.18 $ .17
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
Comdisco, Inc. and Subsidiaries
<CAPTION>
CONSOLIDATED BALANCE SHEETS
(in millions except number of shares)
March 31, September 30,
1995 1994
(unaudited) (audited)
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 81 $ 51
Cash - legally restricted 25 37
Receivables, net 187 169
Inventory of equipment 154 145
Leased assets:
Direct financing and sales-type 2,123 2,144
Operating (net of accumulated depreciation 1,909 1,696
Net leased assets 4,032 3,840
Buildings, furniture and other, net 160 168
Other assets 391 397
5,030 4,807
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $ 922 $ 593
Term notes payable 273 291
Senior notes 1,088 1,073
Accounts payable 104 84
Income taxes 235 229
Other liabilities 311 248
Discounted lease rentals 1,348 1,548
4,281 4,066
Stockholders' equity:
Preferred stock $.10 par value.
Authorized 100,000,000 shares:
8.75% Cumulative Preferred Stock,
Series A and B. $25 stated value and
liquidation preference. 3,800,000 shares
issued (4,000,000 at September 30, 1994) 95 100
Common stock $.10 par value.
Authorized 200,000,000 shares
issued 47,626,180 shares
(47,293,714 at September 30, 1994) 5 5
Additional paid-in capital 147 139
Deferred compensation (ESOP) ( 9) (10)
Deferred translation adjustment 13 -
Retained earnings 721 681
972 915
Common stock held in treasury, at cost;
12,384,135 shares (9,954,133 shares at
September 30, 1994) (223) (174)
Total stockholders' equity 749 741
5,030 4,807
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
Comdisco, Inc. and Subsidiaries
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in millions)
For the Six Months Ended March 31, 1995 and 1994
Increase (decrease) in cash and cash equivalents:
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Operating lease and other leasing receipts $598 $579
Direct financing and sales-type leasing receipts 456 440
Leasing costs, primarily rentals paid (14) (23)
Sales 173 160
Sales costs (101) (75)
Disaster recovery receipts 136 115
Disaster recovery costs (103) (102)
Other revenue 22 14
Selling, general and administrative expenses (120) ( 99)
Interest (137) (133)
Income taxes - (20)
Net cash provided by operating activities 910 856
Cash flows from investing activities:
Equipment purchased for leasing ( 959) ( 707)
Investment in disaster recovery facilities ( 6) ( 6)
Other 3 (11)
Net cash used in investing activities ( 962) ( 724)
Cash flows from financing activities:
Discounted lease proceeds 159 434
Net increase (decrease) in notes payable 329 (133)
Issuance of term notes and senior notes 335 34
Maturities and repurchases of term notes
and senior notes (318) -
Principal payments on nonrecourse debt (359) (441)
Preferred stock repurchased (5) -
Common stock repurchased and placed in treasury (67) (13)
Decrease in legally restricted cash 12 1
Dividends paid on common stock ( 7) ( 7)
Dividends paid on preferred stock (4) (4)
Other 7 2
Net cash used in financing activities 82 (127)
Net increase in cash and cash equivalents 30 5
Cash and cash equivalents at beginning of period 51 70
Cash and cash equivalents at end of period $ 81 $ 75
</TABLE>
<PAGE>
<TABLE>
Comdisco, Inc. and Subsidiaries
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) -- CONTINUED
(in millions)
For the Six Months Ended March 31, 1995 and 1994
1995 1994
<S> <C> <C>
Reconciliation of net earnings to net cash
provided by operating activities:
Net earnings $51 $ 47
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Leasing costs, primarily
depreciation and amortization 490 503
Leasing revenue, primarily principal portion of
direct financing and sales-type lease rentals 283 229
Cost of sales 62 43
Interest 1 1
Income taxes 31 12
Other - net (8) 21
Net cash provided by operating activities $ 910 $856
Supplemental schedule of noncash financing activities:
Assumption of discounted lease rentals in lease
portfolio acquisition $ - $ 2
Common stock issued upon conversion of 6%
convertible subordinated promissory note $20 $ -
See accompanying notes to consolidated financial statements.
</TABLE>
Comdisco, Inc. and Subsidiaries
TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 1995 and 1994
1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial statements and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and disclosures required by generally accepted accounting
principles for annual financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. For further
information, refer to the consolidated financial statements and notes thereto
included in the Company's Annual Report on Form 10-K for the year ended
September 30, 1994.
The balance sheet at September 30, 1994 has been derived from the audited
financial statements included in the Company's Annual Report on Form 10-K for
the year ended September 30, 1994.
Legally restricted cash represents cash and cash equivalents that are
restricted solely for use as collateral in secured borrowings and are not
available to other creditors.
2. Interest-Bearing Liabilities
At March 31, 1995, the Company had $1.2 billion of available domestic and
international borrowing capacity under various lines of credit from commercial
banks and commercial paper facilities, of which approximately $278 million was
unused.
The average daily borrowings outstanding during the six months ended March 31,
1995 were approximately $3.7 billion, with a related weighted average interest
rate of 7.23%. This compares to average daily borrowings during the first six
months of fiscal 1994 of approximately $3.6 billion, with a related weighted
average interest rate of 7.17%.
3. Senior Notes
On February 13, 1995, the Company filed a registration statement on Form S-3
with the Securities and Exchange Commission for a shelf offering of up to $500
million of Senior Debt Securities (the "1995 Shelf") on terms to be set at
the time of each sale. Pursuant to the 1995 Shelf, the Company filed a
Prospectus Supplement on March 27, 1995 relating to $250 million in medium
term notes, which have not yet been issued.
Pursuant to the 1995 Shelf, the Company, on April 13, 1995 (the "Funding
Date"), issued $200 million of 7.25% Notes Due April 15, 1998 (the "Notes").
Between the Funding Date and the maturity of the Company's outstanding 8.95%
Senior Notes due May 15, 1995, which aggregated $150 million in principal
amount (the "8.95% Senior Notes"), the Company used the net proceeds from the
sale of the Notes to reduce outstanding notes payable (short-term debt), which
in turn made short-term debt available to redeem the 8.95% Senior Notes.
4. Common Stock
On April 24 1995, the Board of Directors declared a quarterly cash dividend of
$.09 per common share to be paid on June 19, 1995 to common stockholders of
record as of May 26, 1995.
During the quarter ended March 31, 1995, the Company purchased 2,426,006
shares of its common stock at an aggregate cost of approximately $60 million.
At March 31, 1995, the Company had a remaining authorization of approximately
$16 million to purchase common stock. An additional 366,700 shares were
purchased between March 31, 1995 and May 10, 1995 at a cost of $10 million.
On March 1, 1995, the Company issued 1 million shares from Treasury upon the
conversion of a $20 million convertible subordinated promissory note. These
shares were repurchased on the same day at a price of $25 per share.
5. Earnings Per Common Share
Average common and common equivalent shares outstanding for the three months
ended March 31, 1995 and 1994 were 36,803,469 and 39,023,601, respectively.
Average common and common equivalent shares outstanding for the six months
ended March 31, 1995 and 1994 were 37,026,316 and 39,091,959, respectively.
Earnings per common and common equivalent share reflects the assumed exercise
of stock options that would have a dilutive effect on earnings per common
share if exercised.
Comdisco, Inc. and Subsidiaries
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Net Earnings
Net earnings to common stockholders (hereinafter referred to as "net
earnings") for the three months ended March 31, 1995 were $24 million, or $.64
per share, as compared to $22 million, or $.55 per share, for the three months
ended March 31, 1994. Net earnings for the six months ended March 31, 1995,
were $47 million, or $1.26 per share, as compared to $43 million, or $1.09 per
share, for the year earlier period. The increase in net earnings in the three
and six months ended March 31, 1995 compared to the year earlier periods is
due to increases in earnings contributions from operating leases, sales and
disaster recovery activities, offset by increases in selling, general and
administrative expense. A decrease in the estimated effective tax rate from
the 40% utilized in the three and six months ended March 31, 1994 compared to
38% in the current year periods also positively impacted net earnings. Overall
remarketing activity remained strong and margins on remarketing remained
stable. Earnings per share in the current year periods benefited from the
Company's stock repurchase program, which has reduced the average common
equivalent shares outstanding.
The Company's operating results are subject to quarterly fluctuations
resulting from a variety of factors, including product announcements by
manufacturers, economic conditions, interest rate fluctuations and variations
in the mix of leases written. The mix of leases written in a quarter is a
result of a combination of factors, including, but not limited to, changes in
customer demands and/or requirements, new product announcements, price
changes, changes in delivery dates, changes in maintenance policies and the
pricing policies of equipment manufacturers, and price competition from other
lessors.
Leasing
Leasing volume in the three and six months ended March 31, 1995 increased as
compared to the year earlier periods. In general, improving worldwide
economies coupled with continued demand for high technology equipment,
including mainframes, have had a favorable impact on volume in the current
fiscal year. Other factors having a positive impact on volume include the
acquisition of Promodata S.A. in June 1994, (the "Acquisition"), the growth of
the Company's semiconductor manufacturing equipment leasing activities, and
improving markets in Europe. This growth results in an increased amount of
equipment available for remarketing.
Cost of equipment placed on lease was $536 million during the quarter ended
March 31, 1995. This compares to cost of equipment placed on lease of $290
million and $502 million during the quarters ended March 31, 1994 and December
31, 1994, respectively. During the six months ended March 31, 1995, cost of
equipment placed on lease totaled $1.0 billion compared to $752 million during
the six months ended March 31, 1994.
Three months ended March 31, 1995
Total revenue for the three months ended March 31, 1995 was $593 million
compared to $529 million in the prior year quarter. Total leasing revenue of
$411 million for the quarter ended March 31, 1995 represented an increase of
3% compared to the year earlier period. Total leasing revenue was $360
million in the first quarter of fiscal 1995. The increase in total leasing
revenue in the current quarter compared to the prior year quarter is due to
increased operating lease revenue. Operating lease revenue in the current
quarter increased compared to the first quarter of fiscal 1995, representing
the second consecutive quarter-to-quarter increase in operating lease revenue.
The Company expects operating lease revenue to increase in the third quarter
as compared to the second quarter of fiscal 1995, primarily due to the
increase in operating leased assets since September 30, 1994.
Operating lease revenue minus operating lease cost was $70 million, or 25.7%
of operating lease revenue (the "Lease Margin"), and $64 million, or 25.5% of
operating lease revenue, in the three months ended March 31, 1995 and 1994,
respectively. The Company expects the Lease Margin to remain at current
levels throughout the remainder of fiscal 1995.
Revenue from disaster recovery activities for the three months ended March 31,
1995 and 1994 was $65 million and $60 million, respectively, an 8% increase.
Cost of disaster recovery activities for the three months ended March 31, 1995
was $58 million and $56 million, respectively, a 4% increase.
Other revenue for the three months ended March 31, 1995 and 1994 was $12
million and $6 million, respectively. The increase in the current period
compared to the prior year period is primarily due to revenue from managing
the Promodata S.A. lease portfolio. The current year period also includes
revenue from the sale of stock received by the Company for the sale of
Comdisco Systems, Inc. in fiscal 1993.
Total costs and expenses of $552 million for the quarter ended March 31, 1995
represented a 13% increase compared to the prior year period. The increase is
primarily due to increased leasing costs and cost of sales related to
increasing operating lease revenue and sales revenue, respectively. Other
factors contributing to the increase include higher selling, general and
administrative costs and an increase in interest expense.
Cost of sales for the three months ended March 31, 1995 and 1994 were $89
million and $52 million, respectively. Margins on sales were 15% and 20% in
the quarters ended March 31, 1995 and 1994, respectively.
Selling, general and administrative expenses were $58 and $49 million for the
three months ended March 31, 1995 and 1994, respectively. Selling, general
and administrative expenses were $56 million in the first quarter of fiscal
1995. The increase is primarily due to the Acquisition, which increased
selling, general and administrative expenses by approximately $5 million in
the current quarter compared to the prior year quarter.
Interest expense for the three months ended March 31, 1995 totaled $70 million
in comparison to $65 million in the quarter ended March 31, 1994 and $68
million in the quarter ended December 31, 1994. The increase in interest
expense primarily reflects rising interest rates on domestic short-term
borrowings and an increase in average daily borrowings (see Note 2 of Notes to
Consolidated Financial Statements). The increase in average daily borrowings
reflects the increase in leasing volume and the impact of the Company's stock
repurchase program.
Six Months Ended March 31, 1995
Total revenue was $1.1 billion for the six months ended March 31, 1995 and
1994. Leasing revenue of $771 million for the six months ended March 31,
1995, represented a decrease of 2% compared to the year earlier period. The
decrease relates primarily to a decline in sales-type revenue.
Total costs and expenses of $1.0 billion for the six months ended March 31,
1995, represented an increase of 5% over the comparative period of the prior
year. The increase is primarily due to higher costs of sales resulting from
increased sales, offset by lower sale-type costs.
The Lease Margin was $138 million, or 26.5% of operating lease revenue, and
$133 million, or 25.8% of operating lease revenue, in the six months ended
March 31, 1995 and 1994, respectively.
Selling, general and administrative expenses totaled $114 million and $97
million for the six months ended March 31, 1995 and 1994, respectively. The
increase is primarily due to the Acquisition, which increased selling, general
and administrative expense by $10 million in the current period.
Interest expense was $138 million for the six months ended March 31, 1995 as
compared to $134 million for the year earlier period. The increase in
interest expense is primarily due to rising interest rates and higher average
daily borrowings.
Financial Condition
The Company's current financial resources and estimated cash flows from
operations are considered adequate to fund anticipated future growth and
operating requirements. The Company utilizes a variety of financial
instruments to fund its short and long-term needs.
Capital expenditures for equipment are generally financed by cash provided by
operating activities, recourse debt, or by assigning the noncancelable lease
rentals to various financial institutions at fixed interest rates on a
nonrecourse basis. Cash provided by operating activities for the six months
ended March 31, 1995 was $910 million, compared to $856 million for the year
earlier period. Cash provided by operations has been used to finance equipment
purchases and, accordingly, had a positive impact on the level of borrowing
required to support the Company's investment in its lease portfolio. The
Company expects this trend to continue, with cash flow from leasing and
remarketing reinvested in the equipment portfolio.
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits:
Exhibit No. Description of Exhibit
4.01 Indenture Agreement between Registrant and The Fuji Bank and Trust
Company, as Trustee, dated as of February 1, 1995.
Incorporated by reference to Exhibit 4.1 filed with the Company's
with the Company's Current Report on Form 8-K dated May 15, 1995, as
filed with the Commission on May 15, 1995, File No. 1-7725, the copy of
the Indenture dated as of February 1, 1995 between the Registrant an The
Fuji Bank and Trust Company, as Trustee (said Indenture defines certain
rights of security holders).
4.02 Indenture Agreement between Registrant and Citibank, N.A., as Trustee
dated as of June 15, 1992
Incorporated by reference to Exhibit 4.1 filed with the Company's
Current Report on Form 8-K dated September 1, 1992, as filed with the
Commission on September 2, 1992, File No. 1-7725, the copy of Indenture,
dated as of June 15, 1992 between Registrant and Citibank, N.A., as Trustee,
(said Indenture defines certain rights of security holders).
4.03 Indenture between Registrant and Chemical Bank, N.A., as Trustee
dated as of April 1, 1988
Incorporated by reference to Exhibit 4.5 filed with the Form 8
Amendment to the Company's Annual Report on Form 10-K for the year ended
September 30, 1990, filed February 21, 1991, File No. 1-7725, the copy of
Indenture dated as of April 1, 1988, between Registrant and Manufacturers
Hanover Trust Company, as Trustee (said Indenture defines certain rights of
security holders).
4.04 First Supplemental Indenture between Registrant and Chemical Bank,
N.A., as Trustee dated as of January 1, 1990
Incorporated by reference to Exhibit 4.8 filed with the Company's
Quarterly Report on Form 10-Q for the quarter ended December 31, 1990, File
No. 1-7725, the copy of the First Supplemental Indenture dated as of January
1, 1990, between Registrant and Manufacturers Hanover Trust Company, as
Trustee (said Indenture defines certain rights of security holders).
4.05 Shareholder Rights Agreement, as amended and restated as of November
7, 1994, between Comdisco, Inc. and Chemical Bank, as Rights Agent, which
includes as Exhibit A thereto the Form of Rights Certificate
Incorporated by reference to Exhibit 4.1 filed with the Company's
Current Report on Form 8-K, filed on December 6,1994, File No. 1-7725.
4.06 Certificate of Designations with respect to the Company's 8 3/4%
Cumulative Preferred Stock, Series A, as filed with the Secretary of
State of Delaware on September 18, 1992
Incorporated by reference to Exhibit 4.1 filed with the Company's
Current Report on Form 8-K dated September 17, 1992, as filed with the
Commission October 9, 1992, File No. 1-7725.
4.07 Certificate of Designations with respect to the Company's 8 3/4%
Cumulative Preferred Stock, Series B, as filed with the Secretary of the
State of Delaware on July 2, 1993.
Incorporated by reference to Exhibit 4.1 filed with the Company's
Current Report on Form 8-K dated June 30, 1993, as filed with the
Commission July 21, 1993, File No. 1-7725.
10.01 Purchase Agreement dated January 27, 1995 by and among Computer
Discount Corporation, Nicholas K. Pontikes, as executor of
the Estate of Kenneth N. Pontikes, and Nicholas K. Pontikes as
trustee of the Pontikes Trust
Incorporated by reference to Exhibit 2 to Amendment No. 2 to Schedule
13-D filed by Nicholas K. Pontikes, the Pontikes Trust and the Ponchil
Limited Partnership, dated as of January 27, 1995 and filed with the
Commission on February 2, 1995, File No. 1-7725.
11 Computation of Earnings Per Common Share
12 Ratio of Earnings to Combined Fixed Charges and Preferred Stock
Dividends
27 Financial Data Schedule
b) Reports on Form 8-K:
On February 15, 1995, the Company filed four (4) Current Reports on Form 8-K,
each dated February 15, 1995, reporting Item 7. Financial Statements and
Exhibits. The exhibits in the reports included the Amended Credit Agreements
between the Company and the banks thereto.
On March 22, 1995, the Company filed a Current Report on Form 8-K, dated March
21, 1995, reporting Item 5. Other Events. The filing reported that the
Company had filed a declaratory judgment action against the Dun & Bradstreet
Corporation, Dun & Bradstreet Computer Leasing, Inc. and the Fillupar Leasing
Partnership, and described additional litigation among the parties.
On March 28, 1995, the Company filed a Current Report on Form 8-K, dated March
24, 1995, reporting Item 7. Financial Statements and Exhibits. The exhibits
included in the report related to the Company's $250 million medium term note
program.
On April 19, 1995, the Company filed a Current Report on Form 8-K, dated April
13, 1995, reporting Item 7. Financial Statements and Exhibits. The exhibits
included in the report related to the Company's $200 million 7.25% Senior
Notes due April 15, 1998.
On May 1, 1995, the Company filed a Current Report on Form 8-K, dated April
28, 1995, reporting Item 5. Other Events. The filing reported the repurchase
of 300,000 shares of common stock by the Company from Mr. William N. Pontikes
and related trusts. Mr. Pontikes is an Executive Vice President and Director
of the Company.
On May 15, 1995, the Company filed a Current Report on Form 8-K, dated May 15,
1995 reporting Item 7. Financial Statements and Exhibits. The exhibit in the
report was the form of executed Indenture dated February 1, 1995 between the
Registrant and The Fuji Bank and Trust Company, as Trustee.
<PAGE>
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.
COMDISCO, INC.
Registrant
Date: May 15, 1995 /s/ John J. Vosicky
John J. Vosicky
Executive Vice President and
Chief Financial Officer
Comdisco, Inc. and Subsidiaries
Exhibit 11
<TABLE>
COMPUTATION OF EARNINGS PER COMMON SHARE
(in millions except per share data)
<CAPTION>
Average shares used in computing net earnings per common and common equivalent
share were as follows:
Three Months Six Months
ended ended
March 31 March 31
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Average shares outstanding 36 38 36 38
Effect of dilutive options 1 1 1 1
Total 37 39 37 39
Net earnings to
common stockholders $ 24 $ 22 $ 47 $ 43
Net earnings per common and
common equivalent share $ .64 $ .55 $1.26 $1.09
</TABLE>
<TABLE>
Comdisco, Inc. and Subsidiaries
<CAPTION>
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in millions)
Six Months Ended
March 31, For the Years Ended September 30,
1995 1994 1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C> <C>
Fixed charges
Interest expense F1 $ 140 $135 $266 $295 $355 $371 $343
Approximate portion of rental expense
representative of an interest factor 5 7 13 22 29 37 39
Fixed charges 145 142 279 317 384 408 382
Preferred stock dividends F2 6 7 15 11 - - -
Combined fixed charges and
preferred stock dividends 151 149 294 328 384 408 382
Earnings from continuing operations
before income taxes and extraordinary item,
net of preferred stock dividends 78 75 80 137 34 136 134
Earnings from continuing operations before
income taxes, extraordinary item, combined
fixed charges and preferred stock dividend $229 $224 $374 $465 $418 $544 $516
Ratio of earnings to combined fixed charges
and preferred stock dividends 1.52 1.50 1.27 1.42 1.09 1.33 1.35
Rental expense:
Equipment subleases $12 $17 $ 30 $ 57 $77 $ 103 109
Office space, furniture, etc. 4 4 8 8 10 9 8
Total $16 $ 21 $ 38 $ 65 $ 87 $ 112 $117
1/3 of rental expense $ 5 $ 7 $ 13 $ 22 $ 29 $ 37 $ 39
<FN>
<F1>Includes interest expense incurred by disaster recovery services and included in disaster recovery
services expenses on the statements of earnings.
<F2>There were no preferred stock dividend requirements for fiscal years 1990 through 1992.
</TABLE>
[ARTICLE] 5
[MULTIPLIER] 1,000,000
<TABLE>
<S> <C>
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] SEP-30-1994
[PERIOD-START] OCT-01-1994
[PERIOD-END] MAR-31-1995
[CASH] 106
[SECURITIES] 0
[RECEIVABLES] 199
[ALLOWANCES] (12)
[INVENTORY] 154
[CURRENT-ASSETS] 447
[PP&E] 4032
[DEPRECIATION] 0
[TOTAL-ASSETS] 5030
[CURRENT-LIABILITIES] 104
[BONDS] 1088
[COMMON] 5
[PREFERRED-MANDATORY] 0
[PREFERRED] 95
[OTHER-SE] 649
[TOTAL-LIABILITY-AND-EQUITY] 5030
[SALES] 771
[TOTAL-REVENUES] 1117
[CGS] 504
[TOTAL-COSTS] 897
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 138
[INCOME-PRETAX] 82
[INCOME-TAX] 31
[INCOME-CONTINUING] 51
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 47
[EPS-PRIMARY] 1.26
[EPS-DILUTED] 1.26
</TABLE>
