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COMDISCO, INC. REPORTS THIRD QUARTER EARNINGS FROM CONTINUING OPERATIONS OF $17 MILLION, OR $.41 PER SHARE, ON REVENUES OF $561 MILLION

COMDISCO, INC. REPORTS THIRD QUARTER EARNINGS FROM CONTINUING OPERATIONS
 OF $17 MILLION, OR $.41 PER SHARE, ON REVENUES OF $561 MILLION
 ROSEMONT, Ill., July 21 /PRNewswire/ -- Comdisco, Inc. (NYSE: CDO) today reported operating results for its third fiscal quarter ended June 30, 1992.
 Third Quarter Revenue and Earnings
 For the quarter, the company reported total revenues of $561 million, up 9 percent from the prior year period. The company reported earnings from continuing operations for the quarter of $17 million, or $0.41 per share versus $19 million, or $0.44 per share, for the prior year period. Due to early retirement of corporate debt during the quarter, the company recorded an extraordinary loss of $(5) million which reduced reported net earnings for the quarter to $12 million, or $0.30 per share, compared with net earnings of $19 million. or $0.45 per share, for the prior year period.
 Nine Months Revenue and Earnings
 For the nine months ended June 30, 1992, the company reported total revenues of $1.6 billion, up 1 percent from the prior year period. During the second fiscal quarter, the company recorded an $80 million pre-tax charge to earnings. This charge resulted in an earnings shortfall for the nine months. Net earnings from continuing operations for the nine months were $2 million, or $0.05 per share, versus $64 million, or $1.55 per share for the prior year period. Net loss for the nine months was $(3) million, or $(0.06) per share, versus net earnings of $65 million, or $1.59 per share, for the prior year period.
 Kenneth N. Pontikes, chairman of the board and president, stated: "Our third quarter insults were strong. We are encouraged by the current levels of activity that we are experiencing in the marketplace. Our volume increased significantly from the second fiscal quarter of this year and the remarketing of both our IBM and non-IBM portfolios was strong. We are beginning to see the positive results generated by our new integrated organization. Our overhead has been reduced and the organizational changes that we have made to date benefit both our customers and our bottom line. We are confident that we will continue to see improved growth in earnings from continuing operations going forward."
 As mentioned above, during the quarter the company called for redemption all of its remaining 10 percent senior notes due May 15, 1994, amounting to $182.3 million. This redemption resulted in an after-tax extraordinary loss for the quarter of $(5.0) million or $(0.11) per share. During the quarter, the company also issued $159.5 million senior notes at the rate of 6.5 percent due June 15, 1994. The company anticipates the net effect of this refinancing will be a cash savings of approximately $7.0 million over the next two years.
 Comdisco is one of the world's largest providers of solutions that help businesses acquire, manage, and protect their high-tech assets. Comdisco's common stock is listed on the New York and Midwest Stock Exchanges.
 COMDISCO, INC. AND SUBSIDIARIES
 Consolidated Statements of Earnings
 (Dollars in millions except per share data)
 Periods ended Three months Nine months
 June 30 1992 1991 1992 1991
 Revenue
 Leasing:
 Operating 287 287 $ 872 859
 Direct financing 48 54 149 169
 Sales-type 84 49 223 193
 Total leasing 419 390 1,244 1,221
 Sales 84 80 234 273
 Disaster recovery 49 38 140 109
 Other 9 9 30 21
 Total revenue 561 517 1,648 1,624
 Costs and expenses
 Leasing
 Operating 216 208 646 625
 Sales-type 65 34 169 137
 Total leasing 281 242 815 762
 Sales 75 72 206 241
 Disaster recovery 44 33 127 96
 SG&A
 Recurring 47 51 149 147
 Litigation and loss
 reserves (A) -- -- 45 --
 Restructuring charge (B) -- -- 35 --
 Interest 86 89 267 274
 Total costs and expenses 533 487 1,644 1,520
 Earnings from cont. opers. bef.
 inc. taxes and extord. loss 28 30 4 104
 Income taxes 11 11 2 40
 Earnings from continuing operations
 bef. extraord. loss 17 19 2 64
 Earnings from discont. oil and gas
 activities (net of inc.taxes) -- -- -- 1
 Earnings bef. extraord. loss 17 19 2 65
 Extraord. loss
 (net of inc. taxes) (5) -- (5) --
 Net earnings (loss) 12 19 (3) 65
 Retained earnings at
 beginning of period $582 $615 $ 632 $ 574
 Net earnings (loss) 12 19 (3) 65
 Stock dividend -- -- (30) --
 Dividends paid (3) (3) (8) (8)
 Retained earnings at
 end of period 591 631 591 631
 Net earnings per common and
 common equivalent share:
 Earnings from
 continuing operations $0.41 $0.44 $0.05 $1.55
 Earnings from discontinued
 oil and gas activities 0.01 0.04
 Extraordinary loss (0.11) -- (0.11) --
 Net earnings (loss) 0.30 0.45 0.06 1.59
 Common and common equivalent
 shares outstanding 41 41 41 41
 -- (A) Litigation and Loss Reserves
 In fiscal 1991 and 1992, International Business Machines and IBM Credit Corporation filed actions against the Company. During the quarter ended March 31, 1992, the Company established a $20 million litigation reserve $(12 million after-tax), to cover additional costs associated with these lawsuits, including outside counsel and additional in-house personnel. The company continues to vigorously defend itself in these matters.
 During the quarter ended March 31, 1992, the company recorded a $25 million provision for receivable losses $(15 million after-tax), reflecting continued uncertainty in the U.S. economy and its impact on the credit quality of the company's lease portfolio.
 -- (B) Restructuring Charges
 During the quarter ended March 31, 1992, the company took several actions to realign its businesses, reduce its overall cost structure and withdraw from the lessing of certain high technology equipment. These actions resulted in a restructuring charge of approximately $35 million $(21 million after-tax) tor anticipated employee severance programs and excess facilities and lease termination costs, primarily related to planned reorganizations of the company's headquarters and U.S. marketing operations.
 -0- 7/21/92
 /CONTACT: James J. Hyland of Comdisco, 708-698-3000/
 (CDO) CO: Comdisco, Inc. ST: Illinois IN: CPR SU: ERN


AH -- NY109 -- 1603 07/21/92 18:24 EDT
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