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EXHIBIT 1
Movement of Comdisco™s Stock and S&P 500 Index, January 1982“September 1983

450


400


350


300
Comdisco (A)




250


200


150


100


50
Jan.
Jan. Sep.
1983
1982 1983


Comdisco's Stock S&P 500 Index
809
Case: Comdisco, Inc. (A)




79
Part 4 Additional Cases




EXHIBIT 2
Comdisco, Inc. Quarterly Report, Third Quarter Ended June 30, 1983

To Our Stockholders
I am pleased to report net earnings of $13,199,000 In April 1983, the Company announced its Corpo-
or $.45 per share for the third quarter of ¬scal rate Lease Line Program, an expanded leasing pro-
1983. These results represent increases of 127% gram designed to meet the growing demand for
and 96%, respectively, over the three months ended lease ¬nancing of of¬ce and industrial equipment.
June 30, 1982 when net earnings were $5,824,000 The Corporate Lease Line Program expands the
or $.23 per share. Earnings improved as a result of Company™s array of complementary services and
increased pro¬tability of ¬nancial services activities, capitalizes on its expertise in providing customers
increased leasing of computer equipment and a with innovative and cost effective ¬nancing options.
lower effective tax rate. Total revenue for the quarter




Comdisco (A)
During the third quarter of ¬scal 1983, the Com-
ended June 30, 1983 was $127,455,000 com-
pany began operations of a newly established,
pared to $94,691,000 for the prior year period. The
wholly owned subsidiary, Comdisco Resources, Inc.
increase in total revenue was primarily due to the
(“CRI”). Initially CRI will be primarily engaged,
continued growth of the Company™s lease base. In
through joint ventures with established partners, in
the third quarter of ¬scal 1983, the Company
the acquisition of mineral and royalty rights in pro-
entered into 850 new leases with total revenue of
ducing domestic oil and gas properties and the
$266.1 million during the initial lease terms. These
acquisition of onshore leasehold interests, primarily
¬gures compare to 605 new leases and $180.4 mil-
for resale to others for oil and gas exploration and
lion of revenue for the year earlier period.
development. For ¬scal 1983 and 1984, invest-
Net earnings for the nine months ended June 30, ments of approximately $32.0 million and $13.0
1983 were $36,064,000, or $1.25 per share, rep- million, respectively, have been budgeted by CRI.
resenting increases of 69% and 51%, respectively,
These new activities, along with the continued
over the prior year period. Total revenue for the
growth of the Company™s lease and customer base,
¬rst nine months of ¬scal 1983 amounted to
enhance the Company™s long term growth pros-
$401,367,000 compared to $334,189,000 for the
pects. The Company™s history of outstanding ¬nan-
nine months ended June 30, 1982. The Company™s
cial performance and the recent issuance of
impressive results for the ¬rst nine months of ¬scal
$250,000,000 of convertible subordinated deben-
1983 were primarily due to its active participation in
tures, which further strengthened the Company™s
the peripheral equipment and 3081 and 3083 pro-
capital base, provide it with the ¬‚exibility required
cessor markets, which have resulted in increased
for continued growth in today™s marketplace.
computer equipment sales, leasing and ¬nancial
services activities. In addition, deliveries by IBM of
Kenneth N. Pontikes
the 3081 and 3083 processors have stimulated
Chairman of the Board and President
both sale and leasing of displaced IBM 3033
August 10, 1983
processors.
On July 21, 1983, the Board of Directors declared a
cash dividend of $.04 per share to be paid on Sep-
tember 9, 1983 to stockholders of record as of
August 19, 1983. This is the twenty-seventh consec-
utive quarterly cash dividend declared since the
Company commenced paying cash dividends in
1977.
810 Case: Comdisco, Inc. (A)




80 Part 4 Additional Cases




CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
For the Three and Nine Months Ended June 30, 1983 and 1982 (unaudited)

Three Months Ended Nine Months Ended
June 30 June 30
(in thousands except per share data) 1983 1982 1983 1982

Revenue
Rental $ 70,056 $53,462 $193,520 $148,434
Sale of computer equipment 29,159 24,113 129,626 110,108
Financial services 15,493 12,890 50,073 62,040
Other 12,747 4,226 28,148 13,607
Total Revenue 127,455 94,691 401,367 334,189
Comdisco (A)




Cost and Expenses
Equipment depreciation, amortization and
rental 56,647 40,378 152,586 115,325
Cost of computer equipment 26,112 21,318 114,631 99,659
Financial services 1,524 1,065 3,614 6,641
Selling, general and administrative 13,938 10,722 43,060 38,074
Interest 14,035 12,016 38,112 34,560
Total Costs and Expenses 112,256 85,499 352,003 294,259
Earnings before income taxes 15,199 9,192 49,364 39,930
Income taxes 2,000 3,368 13,300 18,568
Net earnings $ 13,199 5,824 36,064 21,362
Retained earnings at beginning of period $ 92,445 $58,223 $71,268 $43,359
Net earnings 13,199 5,824 36,064 21,362
Dividends paid (1,150) (394) (2,838) (1,068)
Retained earnings at end of period $104,494 $63,653 $104,494 $ 63,653
Net earnings per common and common
equivalent share .45 .23 1.25 .83
Cash dividends per common share .04 .03 .11 .09
Common and common equivalent shares
outstanding 29,611 29,118 29,234 28,918
811
Case: Comdisco, Inc. (A)




81
Part 4 Additional Cases




CONSOLIDATED BALANCE SHEET
June 30, 1983 and 1982 (unaudited) and September 30, 1982 (unaudited)




June 30 September 30
(in thousands except number of shares) 1983 1982 1982

Assets
Cash and marketable securities (at cost which approxi-
mates market) $175,215 $ 4,586 $ 39,762
Receivables 66,430 38,854 45,055
Inventory of computer equipment 48,914 38,716 35,382




Comdisco (A)
Investment in sales-type and direct ¬nancing leases 63,735 28,541 23,682
Leased and other equipment 703,759 532,969 534,611
Less: accumulated depreciation and amortization 263,401 174,408 192,714
Net equipment 440,358 358,561 341,897
Other assets and deferred charges 55,925 43,446 50,901
$850,577 $512,704 $536,679
Liabilities and Stockholders™ Equity
Note payable $ ” $ 2,650 $ 2,385
Subordinated debentures 262,250 62,250 62,250
Accounts payable 29,001 26,982 19,110
Obligations under capital leases 14,669 20,122 18,636
Income taxes 42,817 31,585 36,197
Other liabilities 45,139 39,219 45,265
Discounted lease rentals 280,976 247,899 261,780
674,852 430,707 445,623
Stockholders™ equity:
Common stock $.10 par value
Authorized 50,000,000 shares; issued 28,768,366
and 11,757,418 shares at June 30, 1983 and 1982,
respectively (11,769,043 at September 30, 1982) 2,877 1,176 1,177
Additional paid-in capital 68,718 17,657 18,965
Deferred translation adjustment (364) (489) (354)
Retained earnings 104,494 63,653 71,268
Total stockholders™ equity 175,725 81,997 91,056
$850,577 $512,704 $536,679
812 Case: Comdisco, Inc. (A)




82 Part 4 Additional Cases




CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
For the Nine Months Ended June 30, 1983 and 1982 (unaudited)



(in thousands) 1983 1982

Source of Funds
Total provided by operations $123,798 $133,285
Issuance of common stock upon conversion of 13% convertible
debentures, net 52,465 ”
Proceeds from issuance of subordinated debentures 245,250 ”
Discounted lease rentals 141,002 92,535
Other 305 2,624
Comdisco (A)




562,820 228,444
Application of Funds
Increase in leased equipment and inventory 238,304 175,193
Decrease in note payable 2,385 795
Redemption of convertible debentures 50,000 ”
Reduction of discounted lease rentals and obligations under
capital leases 126,332 45,611
Other assets and deferred charges 7,508 11,039
Other 2,838 1,068
427,367 233,706
Increase (decrease) in cash and marketable securities 135,453 (5,262)
Cash and marketable securities at beginning of period 39,762 9,848

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