SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Filed pursuant to Section 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
November 15, 1996
Date of Earliest Event Reported
COMDISCO, INC.
(a Delaware Corporation)
6111 North River Road
Rosemont, Illinois 60018
Telephone (708) 698-3000
Commission file number 1-7725
I.R.S. Employer Identification Number 36-2687938
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Item 5. Other Events.
On November 6, 1996, Comdisco, Inc. announced fourth quarter and fiscal 1996
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 15, 1996 by: /s/ David J. Keenan
-------------------
David J. Keenan
Vice President and
Corporate Controller
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Exhibit 99. Press Release Announcing Results of Operations
For Immediate Release
Media Contact: Mary Moster 847/518-5147
COMDISCO, INC. ANNOUNCES RECORD 1996 NET EARNINGS OF $2.00 PER COMMON SHARE ON
REVENUE OF $2.4 BILLION; DECLARES QUARTERLY CASH DIVIDENDS
ROSEMONT, Illinois, November 6, 1996: Comdisco, Inc. (NYSE: CDO) today \
reported operating results for its fourth quarter and fiscal year ended
September 30, 1996.
OPERATING RESULTS:
For the quarter ended September 30, 1996, the company reported total
revenue of $728 million, versus $584 million for the prior year period. Net
earnings for the quarter were $28 million, or $.53 per common share, versus $25
million, or $.45 per common share, for the prior year period.
For the year ended September 30, 1996, the company reported total
revenue of $2.4 billion, versus $2.2 billion for the prior year period. Net
earnings were $106 million, or $2.00 per common share, versus $96 million, or
$1.73 per common share, for the prior year period.
CEO COMMENTARY:
Commenting on the Company's results, Jack Slevin, chairman and chief
executive officer, stated," 1996 was the best year in the company's history. We
set many new records during the year but most notable was the volume of new
business that we wrote during the year. We surpassed our internal target by over
$400 million and wrote $2.6 billion of new business. A significant part of this
increase was due to the performance of our Technology Integration Services and
Distributed Systems groups.
"Our 1996 fourth quarter was our best quarter ever," Slevin continued.
"The company's new business volume, revenue, and earnings were all records.
Comdisco's Business Continuity and Network Services division, as well as our
Healthcare subsidiary and Comdisco Ventures division posted records for both
earnings and revenue for the quarter. The company's lease volume surpassed the
$700 million mark for the second consecutive quarter to a record $769 million.
"During the quarter we formed an alliance with VIASOFT (VIAS/NASDAQ/NM)
that will add value to our Millennium Testing Services program," Slevin said.
"We also formed an alliance with Asset Software International Corporation of
Canada to cooperatively provide asset management software and services
worldwide. These joint ventures are integral components of Comdisco's technology
services offerings.
"For the year, we established records in terms of new business volume,
revenue, and earnings. One of our value drivers, operating lease revenue, was up
22% from the prior year period. The pretax earnings contribution from our five
diversified business areas; Business Continuity and Network Services,
Electronics, International, Healthcare and Comdisco Ventures, was $88 million,
or 48% of pretax profits, up 28% from last year," he said.
"The company strengthened its financial position in 1996 and made
continued improvements in shareholder value. We repurchased $80 million, or 3.7
million shares, of Comdisco common stock during the year. Despite our aggressive
share repurchase program we increased our stockholders equity to a record $799
million. Our financial performance did not go unnoticed. In April, Standard &
Poor's raised our debt rating to BBB+ and in October Moody's raised it to Baa1.
Also, the total return of 47% on Comdisco common stock for fiscal 1996
outperformed the S&P 500 Index.
"We experienced great success in 1996 and we anticipate that with the
people, strategies and technology services that we have in place, we should
achieve an even greater level of success in 1997," Slevin said.
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DIVIDEND INFORMATION:
On November 5, 1996, the company declared a quarterly cash dividend of
$.07 per share to common stockholders. The common stock cash dividend will be
payable on December 9, 1996, to stockholders of record on November 15, 1996. The
company declared a quarterly cash dividend of $.55 per share to preferred
stockholders (Series A and B). The preferred stock cash dividend will be payable
on December 15, 1996 to preferred stockholders of record (Series A and B) on
November 29, 1996. Comdisco had 49,632,758 shares, and 3,562,600 shares of
common and preferred (Series A and B) stock outstanding, respectively, at
September 30, 1996.
SAFE HARBOR:
The third paragraph and the last sentence of the CEO commentary
above contain forward-looking statements as to which the company intends to
have the benefit of the safe harbor created by the Private Securities Litigation
Reform Act of 1995. While these forward-looking statements are based on
assumptions believed by the company to be reasonable and reflect the
company's current expectations as to future events and financial performance,
they are subject to important factors relating to the company's operations and
business environment which may cause the actual results of the company to be
materially different from any future results expressed or implied by such
forward-looking statements. Examples of such factors include, but are not
limited to, the mix of leases written in a quarter which are 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. The company
undertakes no obligation to publicly update or revise any forward-looking
statements whether as a result of new information, future events or otherwise.
Comdisco Inc. (NYSE:CDO), a technology services company, is one of the
world's leading providers of solutions that help organizations reduce technology
cost and risk. These services include asset management; equipment leasing and
remarketing; business continuity; technology integration; and network services.
For more information visit Comdisco's web site at http://www.comdisco.com.
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Comdisco, Inc. and Subsidiaries
Consolidated Statements of Earnings
For the Three and Twelve Months Ended September 30, 1996 and 1995
(Dollars in millions except per share data)
<TABLE>
<CAPTION>
Three months Twelve months
ended ended
September 30 September 30
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenue
Leasing
Operating $ 370 $ 305 $ 1,365 $ 1,117
Direct financing 33 43 149 180
Sales-type 140 66 283 276
------- ------- ------- -------
Total leasing 543 414 1,797 1,573
Sales 83 89 262 358
Business continuity and network services 87 70 318 267
Other 15 11 54 42
------- ------- ------- -------
Total revenue 728 584 2,431 2,240
------- ------- ------- -------
Costs and expenses
Leasing
Operating 287 227 1,037 824
Sales-type 112 43 209 199
------- ------- ------- -------
Total leasing 399 270 1,246 1,023
Sales 73 79 218 304
Business continuity and network services 76 62 277 238
Selling, general and administrative 64 61 244 233
Interest 68 68 262 274
------- ------- ------- -------
Total costs and expenses 680 540 2,247 2,072
------- ------- ------- -------
Earnings before income taxes 48 44 184 168
Income taxes 18 17 70 64
------- ------- ------- -------
Net earnings before preferred dividends 30 27 114 104
Preferred dividends (2) (2) (8) (8)
------- ------- ------- -------
Net earnings available to common stockholders $ 28 $ 25 $ 106 $ 96
======= ======= ======= =======
Retained earnings at beginning of period $ 831 $ 742 $ 764 $ 681
Net earnings available to common stockholders 28 25 106 96
Cash dividends paid on common stock (3) (3) (14) (13)
------- ------- ------- -------
Retained earnings at end of period $ 856 $ 764 $ 856 $ 764
======= ======= ======= =======
Net earnings per common and common equivalent share:
Net earnings available to common stockholders $ 0.53 $ 0.45 $ 2.00 $ 1.73
======= ======= ======= =======
Common and common equivalent shares outstanding 53 55 53 55
======= ======= ======= =======
</TABLE>
