Comdisco, Inc. Announces Record 1997 Results
Business Editors ROSEMONT, Ill.--(BUSINESS WIRE)--Nov. 5,
1997-- Revenue Of $2.8 Billion, Up 16%; Net Earnings Of $123
Million, Up 16%; Earnings Per Share Of $1.56, Up 17%; Declares
Quarterly Cash Dividend
Comdisco, Inc. (NYSE:CDO) today reported operating results for
its fourth quarter and fiscal year ended September 30, 1997.
OPERATING RESULTS: For the quarter ended September 30, 1997,
the company reported total revenues of $784 million, versus $728
million for the prior year. Net earnings for the quarter were $32
million, or $.41 per common share, versus $28 million, or $.35 per
common share, for the prior year. For the year ended September 30,
1997, the company reported total revenues of $2.8 billion, versus
$2.4 billion for the prior year. Net earnings were $123 million,
or $1.56 per common share, versus $106 million, or $1.33 per
common share, for the prior year.
CEO COMMENTARY: Commenting on the company's results, Jack
Slevin, chairman and chief executive officer, stated that "1997 was a
very exciting and rewarding year for Comdisco. For the third year in a
row we set records in all of our performance benchmarks; new
business volume, revenue and earnings. "The fiscal fourth quarter of
1997 was our 22nd consecutive quarter of earnings growth. We
established records for both earnings and revenue of $32 million and
$784 million respectively during the quarter. Our new business
volume for the quarter was a record $838 million. "In April, we raised
our 1997 targets to $3.0 billion for new business volume and to $210
million for pre-tax earnings. I'm pleased to report that we not only
met but slightly exceeded those targets by recording $3.1 billion of
new business volume and $211 million of pre-tax earnings for fiscal
1997. Our total revenue increased 16 percent year over year to $2.8
billion, the first double digit revenue gain in 6 years." Continued
Slevin, "The equity markets continue to reward our consistent
performance. For the fiscal year, Comdisco's total return was 71
percent, outperforming the S&P 500 Index for the fourth consecutive
year. "Over the last three years we have developed a business
model that has positioned Comdisco as a leading technology
services company. Approximately one third of our 1997 pre-tax
earnings are derived from our service businesses. We anticipate that
by fiscal 1999 approximately one half of our pre-tax earnings should
come from our service businesses. "We enter fiscal 1998 with a
record backlog of business and a strong focus on serving our global
client base with our successful asset management strategies and
technology solutions. We anticipate another record performance in
1998."
DIVIDEND INFORMATION: On November 4, 1997, the board of
directors declared a quarterly cash dividend of $.05 per share to
common stockholders, unchanged from the previous quarter. The
common stock cash dividend will be payable on December 8, 1997,
to stockholders of record on November 14, 1997. The company
declared a quarterly cash dividend of $.55 per share to Series B
preferred stockholders. The preferred stock cash dividend will be
payable on December 15, 1997, to Series B preferred stockholders
of record on November 28, 1997. Comdisco had 74,040,661 shares
of common stock outstanding at September 30, 1997.
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)
Three months ended % Twelve months ended %
September 30, +/- September 30, +/-
____________ ___ ____________ ___
1997 1996 1997 1996
____ ____ ____ ____
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 (1) 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 (2) - - 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
_____ ____ _____ ____
(1) 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.
(2) 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.
CONTACT: Comdisco, Inc.
Investor Contact: James J. Hyland, 847/518-5051
jjhyland@comdisco.com
or
Media Contact: Mary Moster, 847/518-5147
mcmoster@comdisco.com
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