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quarterly price range and dividends paid for ¬scal
year 1983 and 1982, adjusted to re¬‚ect the two-for- Total notes and debentures as a percentage of total
one and three-for-two common stock splits effected capital (the sum of notes and debentures payable,
in March 1983 and March 1982, respectively, are discounted lease rentals and stockholders™ equity)
shown below: was 32%, 16% and 20% at September 30, 1983,
1982 and 1981, respectively.
1983 1982

Ratios
Qtr. High Low Dvds. High Low Dvds.
The following table presents ratios which illustrate
First $18.38 $10.56 $.03 $ 9.00 $5.88 $.02
the changes and trends in earnings for the last three
Second 27.13 16.56 .04 9.00 6.75 .03
¬scal years:
Third 37.88 22.75 .04 9.63 7.75 .03
Fourth 42.00 34.25 .04 11.50 7.50 .03
1983 1982 1981
At September 30, 1983, there were approximately
Return on average stockholders™
5,000 record holders of common stock. equity 36.7% 39.2% 30.6%
Return on average assets 6.9% 6.2% 4.9%
Financial Condition Earnings before income taxes (as a
The Company™s stockholders™ equity increased sub- percentage of revenue) 10.8% 11.4% 7.1%
Net earnings (as a percentage of
stantially during ¬scal 1983 as a result of the Com-
revenue) 9.5% 6.2% 5.2%
pany™s record earnings and the conversion of
852 Case: Comdisco, Inc. (B)




122 Part 4 Additional Cases




FIVE YEAR SELECTED FINANCIAL DATA

Years ended September 30, 1982 1981 1980 1979
1983

Consolidated Summary of Earnings
(in thousands):
Revenue:
Rental $ 266,628 $206,592 $131,571 $ 80,979 $ 60,947
Sale of computer equipment 171,138 166,705 125,384 149,708 149,983
Financial services 65,635 73,879 30,837 14,079 9,991
Other 39,779 24,454 13,746 8,348 4,355
Total revenue 543,180 471,630 301,538 253,114 225,276
Cost and expenses:
Equipment depreciation, amortiza-
Comdisco (B)




tion and rental 214,439 160,523 99,413 68,328 47,698
Cost of computer equipment 151,573 149,654 111,784 134,595 128,470
Selling, general and administrative 64,655 60,402 35,313 24,219 21,284
Interest 53,673 47,242 33,657 16,988 13,319
Total costs and expenses 484,340 417,821 280,167 244,130 210,771
Earnings before income taxes 58,840 53,809 21,371 8,984 14,505
Income taxes 7,000 24,432 5,730 1,870 3,900
Net earnings $ 51,840 $ 29,377 $ 15,641 $ 7,114 $ 10,605
Common and Common Equivalent
Share Data
Net earnings $1.78 $1.14 $.68 $.33 $.54
Stockholders™ equity 6.65 3.87 2.59 1.98 1.75
Average of common and common
equivalent shares (in thousands) 29,502 28,973 24,539 22,102 19,858
Cash dividends paid .15 .11 .09 .07 .06
Stock splits 2 for 1 3 for 2 5 for 4 ” 3 for 2
Financial Position (in thousands)
Total assets $ 975,004 $536,679 $404,507 $229,170 $173,950
Total long-term debt 276,437 83,271 84,945 29,055 25,573
Discounted lease rentals 356,547 261,780 197,672 85,612 74,569
Stockholders™ equity 191,487 91,056 58,746 43,565 35,508
Leasing Data
Number of new leases 3,467 2,259 1,620 1,083 616
Total ¬rm rents, initial lease term (in
thousands) $1,055,000 $702,000 $339,000 $183,000 $126,000
853
Case: Comdisco, Inc. (B)




123
Part 4 Additional Cases




CONSOLIDATED BALANCE SHEETS
(in thousands except number of shares)

Years Ended September 30, 1982
1983

Assets
Cash and marketable securities (at cost of $205,053 in 1983 and $3,909 in
1982, which approximates market) $232,560 $39,762
Receivables:
Accounts and notes (net of allowance for doubtful accounts of $1,215 in
1983 and $628 in 1982) 74,830 41,368
Other 9,014 3,687
Inventory of computer equipment 59,681 35,382
Net investment in sales-type and direct ¬nancing leases 96,097 23,682




Comdisco (B)
Leased computer equipment:
Owned 671,697 502,494
Capitalized leases 24,353 24,158
Total leased equipment 696,050 526,652
Less accumulated depreciation and amortization 280,917 190,817
Net 415,133 335,835
Buildings, furniture and other (at cost less accumulated depreciation of
$2,764 in 1983 and $1,897 in 1982) 9,068 6,062
Other assets and deferred charges 78,621 50,901
$975,004 $536,679

Liabilities and Stockholders™ Equity
Note payable to bank ” $2,385
Convertible subordinated debentures 250,000 50,000
Subordinated debentures 12,250 12,250
Accounts payable 58,963 19,110
Obligations under capital leases 14,187 18,636
Obligations under capital leases income taxes:
Current 7,242 6,076
Deferred 18,121 30,121
Other liabilities 66,207 45,265
Discounted lease rentals 356,547 261,780
783,517 445,623
Stockholders™ equity:
Common stock $.10 par value. Authorized 50,000,000 shares: issues out-
standing 28,808,571 shares in 1983 (11,769,043 in 1982) 2,881 1,177
Additional paid-in capital 69,927 18,965
Deferred translation adjustment (439) (354)
Retained earnings 119,118 71,268
Total Stockholders™ equity 191,487 91,056
$975,004 $536,679
854 Case: Comdisco, Inc. (B)




124 Part 4 Additional Cases




CONSOLIDATED STATEMENTS OF EARNINGS

Years Ended September 30, 1982 1981
1983

Revenue
Rental $266,628 $206,592 $131,571
Sale of computer equipment 171,138 166,705 125,384
Financial services 65,635 73,879 30,837
Other 39,779 24,454 13,746
Total revenue 543,180 471,630 301,538
Cost and expenses
Equipment depreciation, amortization and rental 214,439 160,523 99,413
Cost of computer equipment 151,573 149,654 111,784
Selling, general and administrative 64,655 60,402 35,313
Comdisco (B)




Interest 53,673 47,242 33,657
Total costs and expenses 484,340 417,821 280,167
Earnings before income taxes 58,840 53,809 21,371
Income taxes 7,000 24,432 5,730
Net Earnings $ 51,840 $ 29,377 $ 15,641
Net Earnings per Common and Common Equivalent
Share $1.78 $ 1.14 $.68
855
Case: Comdisco, Inc. (B)




125
Part 4 Additional Cases




CONSOLIDATED STATEMENT OF STOCKHOLDERS™ EQUITY
(in thousands)

Common Additional Deferred
Years Ended September 30, 1983, stock $.10 paid-in Retained translation
1982 and 1981 par value capital earnings adjustment

”)
Balance at September 30, 1980 $ 587 $ 14,167) $ 28,811) $
Net earnings ” ”) 15,641) ”)
Dividends paid ” ”) (1,093) ”)
Stock split 148 (148) ”) ”)
Stock options exercised 22 611) ”) ”)
Balance at September 30, 1981 757 14,630) 43,359) ”)




Comdisco (B)
Cumulative amount as of September 30,
1981 ” ”) ”) (232)
Net earnings ” ”) 29,377) ”)
Dividends paid ” ”) (1,468) ”)
Stock split 391 (400) ”) ”)
Stock options exercised 14 835) ”) ”)
Common stock issued 15 2,648) ”) ”)
Translation adjustment ” ”) ”) (122)
Income tax bene¬ts resulting from exercise of
non-quali¬ed stock options ” 1,252) ”) ”)
Balance at September 30, 1982 1,177 18,965) 71,268) (354)

Net earnings ” ”) 51,840) ”)
Dividends paid ” ”) (3,990) ”)
Issuance of common stock upon conversion
of 13% convertible debentures 256 51,782) ”) ”)
Stock split 1,435 (1,435) ”) ”)
Stock options exercised 13 582) ”) ”)
Employee Stock Purchase Plan ” 33) ”) ”)
Translation adjustment ” ”) ”) (85)
Balance at September 30, 1983 $2,881 $ 69,927) $119,118) $ (439)
856 Case: Comdisco, Inc. (B)




126 Part 4 Additional Cases




CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(in thousands)

Years Ended September 30, 1982 1981
1983

Source of Funds
From operations:
Net earnings $ 51,840 $ 29,377 $ 15,641
Noncash changes (credits) to operations:
Depreciation and amortization 180,676 133,902 77,528
Increase in receivables (38,789) (12,849) (5,531)
Investment in sales-type and direct ¬nancing leases (72,415) (5,792) (11,732)
Income taxes (10,834) 23,180 5,730
Increase in accounts payable and accrued liabilities 60,795 14,248 18,611
Comdisco (B)




Other, net 5,636 474 (1,233)
Total provided from operations 176,909 182,540 99,014
Proceeds from issuance of subordinated debentures 245,250 ” 48,560
Issuance of common stock upon conversion of 13% convert-
ible debentures, net 53,365 ” ”

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