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
July 22, 1998
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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<PAGE>
Item 5 Other Events
On July 22, 1998 Comdisco, Inc. announced third quarter fiscal 1998
operating results.
Item 7 Financial Statements and Exhibits
(c) Exhibits
99 Consolidated Statements of Earnings For the Three and Nine Months Ended
June 30, 1998 and 1997
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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: July 22, 1998 by: /s/David J. Keenan
David J. Keenan
Senior Vice President
and Controller
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<PAGE>
Comdisco, Inc. and Subsidiaries
Consolidated Statements of Earnings
For the Three and Nine Months Ended June 30, 1998 and 1997
(Dollars in millions except per share data)
<TABLE>
<CAPTION>
Three months % Nine months %
ended June 30, +/- ended June 30, +/-
1998 1997 1998 1997
------ ---- ---- ------ ------ ----
<S> <C> <C> <C> <C> <C> <C>
Revenue
Leasing
Operating ............................... $ 483 $415 16% $1,386 $1,207 15%
Direct financing ........................ 41 36 14% 122 108 13%
Sales-type .............................. 69 89 -22% 231 221 5%
------ ---- ---- ------ ------ ----
Total leasing ........................... 593 540 10% 1,739 1,536 13%
Sales .................................... 106 68 56% 241 173 39%
Continuity and network services .......... 107 91 18% 321 260 23%
Other <F1>................................ 11 13 -15% 37 66 -44%
------ ---- ---- ------ ------ ----
Total revenue ........................... 817 712 15% 2,338 2,035 15%
------ ---- ---- ------ ------ ----
Costs and expenses
Leasing
Operating ............................... 390 332 17% 1,114 953 17%
Sales-type .............................. 43 62 -31% 149 151 -1%
------ ---- ---- ------ ------ ----
Total leasing .......................... 433 394 10% 1,263 1,104 14%
Sales .................................... 88 51 73% 202 130 55%
Continuity and network services .......... 91 76 20% 267 218 22%
Selling, general and administrative ...... 62 61 2% 185 181 2%
Interest ................................. 81 75 8% 245 221 11%
Other <F2>................................ -- -- N/A -- 25 N/A
------ ---- ---- ------ ------ ----
Total costs and expenses ................ 755 657 15% 2,162 1,879 15%
------ ---- ---- ------ ------ ----
Earnings before income taxes ................ 62 55 13% 176 156 13%
Income taxes ................................ 22 21 5% 63 59 7%
------ ---- ---- ------ ------ ----
Net earnings before preferred dividends ..... 40 34 18% 113 97 16%
Preferred dividends ......................... -- (2) N/A% (2) (6) -67%
------ ---- ---- ------ ------ ----
Net earnings available to common stockholders $ 40 $ 32 25% $ 111 $ 91 22%
====== ==== ==== ====== ====== ====
Retained earnings at beginning of period .... $1,029 $908 $ 965 $ 856
Net earnings available to common stockholders 40 32 111 91
Cash dividends paid on common stock ......... (5) (4) (12) (11)
------ ---- ------ ------
Retained earnings at end of period .......... $1,064 $936 $1,064 $ 936
====== ==== ====== ======
Net earnings per common share:
Earnings per common share--basic .......... $ .26 $.21 24% $ .73 $ .61 20%
====== ==== === ====== ====== ===
Earnings per common share--diluted......... $ .24 $.20 20% $ .68 $ .57 19%
====== ==== === ====== ====== ===
Common shares outstanding:
Average common shares outstanding--basic... 153 148 151 147
====== ==== ====== ======
Average common shares outstanding--diluted. 164 158 163 157
====== ==== ====== ======
<FN>
<F1> Other revenue in the second quarter of fiscal 1997 includes a gain of
$25 million, ($16 million after-tax, or $.10 per common share) as a
result of amounts received in settlement of litigation.
<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 $.10 per
common share) as a one time addition to the equipment valuation
allowance.
</FN>
</TABLE>
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