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COMDISCO ANNOUNCES 1991 NET EARNINGS FROM CONTINUING OPERATIONS OF $83 MILLION; INTENDS TO DISCONTINUE INVOLVEMENT IN OIL AND GAS BUSINESS

   COMDISCO ANNOUNCES 1991 NET EARNINGS FROM CONTINUING OPERATIONS OF  $83 MILLION; INTENDS TO DISCONTINUE INVOLVEMENT IN OIL AND GAS BUSINESS
    ROSEMONT, Ill., Nov. 11 /PRNewswire/ -- Comdisco, Inc. (NYSE: CDO) today reported fiscal 1991 earnings from continuing operations of $83 million, or $2.13 per share, versus $83 million, or $2.04 per share, for the year earlier period.  Revenues for the fiscal year ended Sept. 30, 1991, were $2.2 billion, a 13 percent increase over the prior year.
    The company also announced today its intention to discontinue its involvement in the oil and gas business.  The company previously announced a $15 million non-cash, after-tax charge pertaining to its oil and gas interest in a press release dated Oct. 21, 1991.  As a result of this charge, net earnings for the year ended Sept. 30, 1991, were $69 million, or $1.78 per share, versus $95 million, or $2.34 per share for the prior year.  The company has retained the First Boston Corporation as advisors to review alternatives regarding its oil and gas investment that are in the best interests of the company, its stockholders and joint venture partners.
    For the fourth quarter ended Sept. 30, 1991, earnings from continuing operations were $19 million, or $.50 per share, versus $20 million, or $.52 per share, for the prior year period.  As a result of this charge, net earnings for the fourth quarter ended Sept. 30, 1991, were $4 million, or $.11 per share, compared to $31 million, or $.79 per share, for the prior year period.  For the quarter ended Sept. 30, 1991, revenues were $550 million, a 7 percent increase over the prior year period.
    Speaking for the company, Kenneth M. Pontikes, chairman of the board and president, stated, "Notwithstanding the oil and gas charge which skewed the earnings performance for the quarter, we are currently experiencing strong core business activity.  Our remarketing experience on the high-technology equipment portfolio has been excellent.  The mainframe is more dynamic and we are experiencing increased remarketing activity in this area.  The recent announcement by IBM regarding the delivery of their new ES/9000 mainframe computers has been a catalyst for the increased activity.  Although the benefits to our earnings will be recognized over the longer term, we are encouraged by the renewed pace of activity in this area."
    Continued Pontikes, "The strength of our future contractual cash flows, approximately $4.5 billion, combined with our diversified equipment portfolio, residual value discipline and management strengths places Comdisco in a strong position to profit from expanding markets in fiscal 1992 and beyond."
    Concluded Pontikes, "We remain confident that by continuing to provide technological alternatives designed at helping over 5,000 customers worldwide manage their high-technology assets, we will continue to be the industry leader."
    The board of directors today declared a quarterly cash dividend of $.07 per share.  The dividend will be payable on Dec. 9, 1991, to stockholders of record as of Nov. 22, 1991.  Comdisco currently has 38,623,265 shares of common stock outstanding.
    Comdisco is engaged primarily in buying, selling and leasing new and used computer equipment, communications and other high-technology equipment.  The company, through a wholly owned subsidiary, provides disaster recovery services for computer users.  Comdisco's common stock is listed on the New York and Midwest Stock Exchanges.
                          COMDISCO, INC.
                       Financial Highlights
          (Unaudited -- In millions, except per share data)
    Periods Ended                   Three Months       12 Months
    Sept. 30                       1991     1990     1991     1990
    Revenue
     Leasing
       Operating                   $308     $274    $1,167   $  996
       Direct financing              52       60       221      239
       Sales-type                    52       53       245      230
       Total leasing                412      387     1,633    1,465
    Sales                            87       90       360      319
    Disaster recovery                41       34       150      118
    Other                            10        5        31       18
    Total revenue                   550      516     2,174    1,920
    Costs and expenses
      Leasing
       Operating                    226      202       851      733
       Sales-type                    38       34       175      151
       Total leasing                264      236     1,026      884
    Sales                            72       79       313      279
    Disaster recovery                36       29       132      104
    Selling, general & admin.        54       49       201      181
    Interest                         92       90       366      338
    Total costs and expenses        518      483     2,038    1,786
    Earnings from cont. opers.
     bef. inc. taxes & extraord.
     item                            32       33       136      134
    Income taxes                     13       13        53       51
    Earnings from cont. opers.
     bef. extraord. item             19       20        83       83
    Discont. oil and gas activities
     (net of income taxes)          (15)       1       (14)       2
    Earnings before extraord. item    4       21        69       85
    Extraordinary item               --       10        --       10
    Net earnings                      4       31        69       95
    Retained earnings at beginning
     of period                      632      546       574      490
    Net earnings                      4       31        69       95
    Dividends paid                   (3)      (3)      (11)     (11)
    Retained earnings at end of
     period                         631      574       632      574
    Net earnings per common &
     common equivalent share:
    Earnings from cont. opers.
     bef. extraordinary item      $0.50    $0.52     $2.13    $2.04
    Discont. oil & gas activities (0.39)    0.02     (0.35)    0.05
    Extraordinary item               --     0.25        --     0.25
    Net earnings                   0.11     0.79      1.78     2.34
    Common & common equivalent
     shares outstanding              39       39        39       41
                    COMDISCO, INC. AND SUBSIDIARIES
                 Condensed Consolidated Balance Sheets
                        (in millions, unaudited)
        At Sept. 30                                1991      1990
        Assets:
    Cash                                           $141       $75
    Receivables, net                                191       155
    Inventory of equipment                          117       109
    Net leased assets                             3,982     3,911
    Buildings, furniture and other, net             178       153
    Other assets                                    397       382
     Total                                        5,006     4,785
        Liabilities and stockholders' equity
    Notes payable                                   353       589
    Term notes payable and senior notes           1,502     1,021
    Accounts payable and other liabilities          613       539
    Discounted lease rentals (nonrecourse)        1,900     2,047
     Total                                        4,368     4,196
    Equity                                          638       589
     Total                                        5,006     4,785
                    COMDISCO, INC. AND SUBSIDIARIES
            Condensed Consolidated Statements of Cash Flows
                        (in millions, unaudited)
        Years ended Sept. 30                       1991      1990
        Increase (decrease) in cash and cash equivalents:
        Cash flows from operating activities:
    Leasing receipts, net                        $2,336    $1,903
    Sales, net                                      196        78
    Disaster recovery, net                           30        12
    Selling, general and administrative expenses   (217)     (199)
    Interest                                       (349)     (315)
    Other                                            24        16
     Net cash provided by operating activities    2,020     1,495
        Cash flows from investing activities:
    Equipment purchased for leasing              (1,928)   (1,825)
    Other                                           (57)      (94)
     Net cash used in investing activities       (1,985)   (1,919)
        Cash flows from financing activities:
    Discounted lease proceeds                       850       876
    Incr. (decr.) in notes and term notes payable   (20)      384
    Issuance of senior notes                        250       200
    Principal payments on nonrecourse debt       (1,048)     (909)
    Other                                            (1)      (73)
     Net cash provided by financing activities       31       478
    Net increase in cash and cash equivalents        66        54
    Cash and cash equivalents at beginning of year   75        21
    Cash and cash equivalents at end of year        141        75
    -0-                      11/11/91
    /CONTACT:  James J. Hyland of Comdisco, 708-698-3000/
    (CDO) CO:  Comdisco, Inc. ST:  Illinois IN:  CPR SU:  ERN PS-KD -- NY086 -- 3228 11/11/91 19:22 EST
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Date:Nov 11, 1991
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