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 5, 1997
Date of Earliest Event Reported
COMDISCO, INC.
(a Delaware Corporation)
6111 North River Road
Rosemont, Illinois 60018
Telephone (847) 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 5, 1997, Comdisco, Inc announced fourth quarter and fiscal year 1997
operating results.
Item 7 Financial Statements and Exhibits
(c) Exhibits
99.1 Safe Harbor Statement
99.2 Consolidated Statements of Earnings For the Three and Twelve Months
ended September 30, 1997 and 1996
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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 5, 1997 by: /s/David J. Keenan
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David J. Keenan
Vice President
and Controller
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Exhibit 99.1
SAFE HARBOR:
The news release dated November 5, 1997, contains forward-looking statements as
to which Comdisco 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 Comdisco to be reasonable and
reflect Comdisco's current expectations as to future events and financial
performance, they are subject to important factors relating to Comdisco's
operations and business environment which may cause the actual results of
Comdisco 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 volume of New Leases, fair market value volatility in large
systems, changes in customer demand and requirements, financial mix of leases
written, new product announcements, interest rate fluctuations, competition,
including competition from other technology service providers, reductions in
technology budgets and related spending plans and price competition from other
technology service providers. The growth in leasing volume during the last five
fiscal quarters has increased the proportion of leases for new equipment to
total leases. New Leases traditionally have lower earnings contributions than
leases for remarketed equipment. Accordingly, the increase in lease volume has
put pressure on leasing margins. The financial 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. Comdisco undertakes no obligation to publicly update or revise
any forward-looking statements whether as a result of new information, future
events or otherwise.
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Exhibit 99.2
Comdisco, Inc. and Subsidiaries
Consolidated Statements of Earnings
For the Three and Twelve Months Ended September 30, 1997 and 1996
(Dollars in millions except per share data)
<TABLE>
<CAPTION>
Three months ended % Twelve months ended %
September 30, +/- September 30, +/-
1997 1996 1997 1996
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Revenue
Leasing:
Operating ............................................. $ 428 $ 370 16% $ 1,635 $ 1,365 20%
Direct financing ...................................... 37 33 12% 145 149 -3%
Sales-type ............................................ 115 140 -18% 336 283 19%
------- ------- ------- ------- ------- -------
Total leasing ............................ 580 543 7% 2,116 1,797 18%
Sales .................................................. 96 83 16% 269 262 3%
Continuity and network services ........................ 94 87 8% 354 318 11%
Other <F1>.............................................. 14 15 -7 80 54 48%
------- ------- ------- ------- ------- -------
Total revenue ..................................... 784 728 8% 2,819 2,431 16%
------- ------- ------- ------- ------- -------
Costs and expenses
Leasing:
Operating ............................................. 344 287 20% 1,297 1,037 25%
Sales-type ............................................ 86 112 -23% 237 209 13%
------- ------- ------- ------- ------- -------
Total leasing ............................ 430 399 8% 1,534 1,246 23%
Sales .................................................. 80 73 10% 210 218 - 4%
Continuity and network services ........................ 78 76 3% 296 277 7%
Selling, general and administrative .................... 63 64 -2% 244 244 0%
Interest ............................................... 78 68 15% 299 262 14%
Other <F2>............................................. -- -- N/A 25 -- N/A
------- ------- ------- ------- ------- -------
Total costs and expenses ........................... 729 680 7% 2,608 2,247 16%
------- ------- ------- ------- ------- -------
Earnings before income taxes .............................. 55 48 15% 211 184 15%
Income taxes .............................................. 21 18 17% 80 70 14%
------- ------- ------- ------- ------- -------
Net earnings before preferred dividends ................... 34 30 13% 131 114 15%
Preferred dividends ....................................... (2) (2) 0% (8) (8) 0%
------- ------- ------- ------- ------- -------
Net earnings available to common stockholders ............. $ 32 $ 28 14% $ 123 $ 106 16%
======= ======= ======= ======= ======= =======
Retained earnings at beginning of period .................. $ 936 $ 831 $ 856 $ 764
Net earnings available to common stockholders ............. 32 28 123 106
Cash dividends paid on common stock ....................... (3) (3) (14) (14)
------- ------- ------- -------
Retained earnings at end of period ........................ $ 965 $ 856 $ 965 $ 856
======= ======= ======= =======
Net earnings per common and common equivalent share:
Net earnings available to common stockholders $ 0.41 $ 0.35 17% $ 1.56 $ 1.33 17%
======= ======= ======= ======= ======= =======
Common and common equivalent shares
outstanding 79 80 79 80
======= ======= ======= =======
<FN>
<F1> Other revenue includes a gain of $25 million, ($16 million after-tax, or
$.20 per common share) as a result of amounts received in settlement of
litigation during the second fiscal quarter of 1997.
<F2> In the second quarter of fiscal 1997, the Company recorded a non-cash,
non-operating charge of $25 million, ($16 million after-tax, or $.20 per common
share) as a one time addition to the equipment valuation allowance.
</FN>
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