Comdisco, Inc. Announces Record Third Quarter Net Earnings Up 25% At $40 Million, On Revenues of $817 Million, Up 15%; Declares Quarterly Cash Dividend.ROSEMONT Rosemont can have many meanings, including: Places
OPERATING RESULTS: For the third quarter, Comdisco (Comdisco, Inc., Rosemont, IL, www.comdisco.com) A technology services company, originally founded as Computer Discount Company in 1969 by Ken Pontikes. By the mid-1990s, Comdisco had become one of the largest independent computer and electronics equipment leasing companies as well as a reported net earnings of $40 million, up 25%, or $.24 per common share, compared with $32 million, or $.20 per common share, for the year earlier period. The company also reported revenues of $817 million for the third quarter of fiscal 1998, compared with $712 million, for the prior year period. This represents an increase of 15% from the prior year period. For the nine months ended June 30, 1998, the company reported net earnings of $111 million, or $.68 per common share, up 22%, compared with $91 million, or $.57 per common share, for the prior year period. Total revenue was up 15% at $2.3 billion, compared with $2.0 billion for the prior year period. As of June 30, 1998, the company had repurchased $83 million of its common stock during the current fiscal year. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. COMMENTARY: "This was the strongest quarter of the year," said Jack Slevin, Comdisco's chairman and chief executive officer. "Two of Comdisco's primary benchmarks for top line growth, new business volume and revenue, set all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal quarterly records at $905 million and $817 million, respectively. Remarketing continued strong during the third quarter. In addition, Comdisco Electronics Group had their best quarter ever in terms of new business volume and earnings." Continued Slevin, "We continue to make investments in both people and technology as we proceed with the implementation of our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategies. The record results we achieved this quarter are the result of our employees' focus, commitment and determination in making Comdisco one of the leading global technology services providers." DIVIDEND INFORMATION: On July July: see month. 22, 1998, the Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly cash dividend of $.025 per share to common stockholders, unchanged from the previous quarter. The common stock cash dividend will be payable on September September: see month. 15, 1998, to stockholders of record on August 14, 1998. Comdisco had 152,003,133 shares of common stock outstanding at June 30, 1998. SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. : The statements regarding Comdisco, Inc. contained in this release that are not historical in nature are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbors created thereby. These statements are based on current expectations and assumptions, and entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Important factors known to Comdisco that could cause such material differences are discussed in Comdisco's Quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 1998, dated May 14, 1998. COMPANY DESCRIPTION: Comdisco Inc. (NYSE NYSE See: New York Stock Exchange :CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the ), 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; business continuity; network services; and equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
Comdisco, Inc. and Subsidiaries Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Earnings For the Three and Nine Months Ended June 30, 1998 and 1997 (Dollars in millions except per share data)
Three months %
ended June 30, +/-
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1998 1997
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Revenue
Leasing
Operating $ 483 $ 415 16%
Direct financing 41 36 14%
Sales-type 69 89 -22%
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Total leasing 593 540 10%
Sales 106 68 56%
Continuity and network services 107 91 18%
Other (1) 11 13 -15%
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Total revenue 817 712 15%
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Costs and expenses
Leasing
Operating 390 332 17%
Sales-type 43 62 -31%
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Total leasing 433 394 10%
Sales 88 51 73%
Continuity and network services 91 76 20%
Selling, general and administrative 62 61 2%
Interest 81 75 8%
Other (2) - - N/A
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Total costs and expenses 755 657 15%
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Earnings before income taxes 62 55 13%
Income taxes 22 21 5%
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Net earnings before preferred dividends 40 34 18%
Preferred dividends - (2) N/A%
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Net earnings available to
common stockholders $ 40 $ 32 25%
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Retained earnings at beginning of period $1,029 $ 908
Net earnings available to
common stockholders $ 40 $ 32
Cash dividends paid on common stock (5) (4)
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Retained earnings at end of period $1,064 $ 936
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Net earnings per common share:
Earnings per common share--basic $ 0.26 $ 0.21 24%
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Earnings per common share--diluted $ 0.24 $ 0.20 20%
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Common shares outstanding:
Average common shares
outstanding--basic 153 148
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Average common shares
outstanding--diluted 164 158
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Nine months %
ended June 30, +/-
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1998 1997
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Revenue
Leasing
Operating $1,386 $1,207 15%
Direct financing 122 108 13%
Sales-type 231 221 5%
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Total leasing 1,739 1,536 13%
Sales 241 173 39%
Continuity and network services 321 260 23%
Other (1) 37 66 -44%
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Total revenue 2,338 2,035 15%
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Costs and expenses
Leasing
Operating 1,114 953 17%
Sales-type 149 151 -1%
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Total leasing 1,263 1,104 14%
Sales 202 130 55%
Continuity and network services 267 218 22%
Selling, general and administrative 185 181 2%
Interest 245 221 11%
Other (2) - 25 N/A
Total costs and expenses 2,162 1,879 15%
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Earnings before income taxes 176 156 13%
Income taxes 63 59 7%
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Net earnings before preferred dividends 113 97 16%
Preferred dividends (2) (6) -67%
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Net earnings available to
common stockholders $ 111 $ 91 22%
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Retained earnings at beginning of period $ 965 $ 856
Net earnings available to
common stockholders 111 91
Cash dividends paid on common stock (12) (11)
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Retained earnings at end of period $1,064 $ 936
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Net earnings per common share:
Earnings per common share--basic $ 0.73 $ 0.61 20%
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Earnings per common share--diluted $ 0.68 $ 0.57 19%
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Common shares outstanding:
Average common shares
outstanding--basic 151 147
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Average common shares
outstanding--diluted 163 157
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(1) 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . (2) In the second quarter of fiscal 1997, the Company recorded a non-cash, non-operating charge of $25 million, ($16 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , or $.10 per common share) as a one time addition to the equipment valuation allowance. CONTACT: Investor Contact: James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. J. Hyland Hyland can refer to any of the following:
jjhyland@comdisco.com Media Contact: Mary Mary, the mother of Jesus Mary, in the Bible, mother of Jesus. Christian tradition reckons her the principal saint, naming her variously the Blessed Virgin Mary, Our Lady, and Mother of God (Gr., theotokos). Her name is the Hebrew Miriam. Moster Moster is a former municipality in Hordaland county, Norway. It was created by the split of Finnås on July 1, 1916, which created the new municipalities Moster, Bømlo and Bremnes. At that time Moster had a population of 1.316. , 847/518-5147 mcmoster@comdisco.com |
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