UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: October 20, 1998
THE DIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 51-0374887
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
15501 NORTH DIAL BOULEVARD
SCOTTSDALE, ARIZONA 85260-1619
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (602) 754-3425
Item 5. Other Events.
On October 20, 1998, the Company issued a press release relating to its
financial results for the third quarter of 1998, a copy of which is filed
herewith as Exhibit 99.
Item 7.
(C) Exhibits
(99) Press Release of the Company dated October 20, 1998.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
The Dial Corporation
October 27, 1998
/s/ Susan J. Riley
Senior Vice President and Chief Financial Officer
Nancy Stern-Corporate Affairs
602.754.4090
Walter Rogers-Investor Relations
602.754.2386
DIAL'S THIRD QUARTER NET INCOME ROSE 19 PERCENT
ON 15 PERCENT IMPROVEMENT IN NET SALES
Scottsdale, Ariz., October 20, 1998 - The Dial Corporation (NYSE/DL) today
reported a 19 percent increase in net income for its third quarter due to
strong core revenue growth and continued improvement in its gross margin. The
Company posted third quarter net income of $26.7 million, or $ .27 per share
(diluted), versus $22.4 million, or $ .24 per share (diluted), in the year
earlier quarter.
Net sales improved 15 percent to $384 million from $334 million for the same
period last year. Net sales in the current quarter include sales from the
Freeman Cosmetic Corporation, acquired by the Company in July, and Nuevo
Federal, acquired in September of 1997. Net sales in the year-ago quarter
included $10 million of sales from nonstrategic brands that were sold in
September of 1997.
Excluding the effect of acquisitions and divestitures, net sales grew
8 percent in the third quarter. The Company's four core domestic franchises,
Dial, Purex, Renuzit and Armour, grew an aggregate 10 percent in the third
quarter.
The Company's gross margin increased 1.1 percentage points in the third quarter
to 49.1 percent from 48 percent in the same period last year, due to improved
manufacturing efficiencies and continued strong sales of its high margin
personal washing products.
For the first nine months of 1998, Dial's net income increased 23 percent to
$75.2 million, or $ .75 per share (diluted), versus $61.1 million, or $ .66
per share (diluted), in the prior year. Net sales rose 9 percent in the first
nine months while sales from continuing businesses improved 14 percent behind
strong growth in the Dial, Purex and Renuzit franchises and inclusion of
results from two acquisitions, Nuevo Federal and Freeman Cosmetics.
"We are very pleased with the Company's financial and operating performance
for the third quarter and first nine months of 1998," said Mal Jozoff,
Chairman and CEO of Dial. "The combination of strong revenue growth and gross
margin improvement,providing for high quality earnings, along with market
share gains in our core domestic franchises and on-strategy acquisitions
confirm that our business is developing right in line with expectations," he
added.
The Dial Corporation, headquartered in Scottsdale, Arizona, is one of America's
leading manufacturers of consumer products including Dial soap, this year
celebrating 50 years as America's leading antibacterial soap, Renuzit air
fresheners, Purex laundry detergents, Armour Star canned meats and the Sarah
Michaels, Freeman and Nature's Accents personal care brands. Dial products
have been in the American marketplace for over 100 years.
xxx
<PAGE>
<TABLE>
<CAPTION>
THE DIAL CORPORATION
SUMMARY OF OPERATIONS
In millions, except per share data
QUARTER ENDED NINE MONTHS ENDED
-------------------------------- -------------------------------
OCT 3, 1998 SEPT 27, 1997 OCT 3, 1998 SEPT 27, 1997
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . $ 383.9 $ 334.3 $ 1,085.7 999.8
--------------- --------------- --------------- --------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . 195.4 173.7 557.8 526.0
Selling, general and administrative expenses 141.4 119.6 395.5 356.1
--------------- --------------- --------------- --------------
336.8 293.3 953.3 882.1
Operating income. . . . . . . . . . . . . . . . 47.1 41.0 132.4 117.7
Interest and accretion . . . . . . . . . . . 5.5 6.4 14.9 21.2
--------------- --------------- --------------- -------------
Income before income taxes. . . . . . . . . . . 41.6 34.6 117.5 96.5
Income taxes . . . . . . . . . . . . . . . . 14.9 12.2 42.3 35.4
--------------- --------------- --------------- -------------
NET INCOME. . . . . . . . . . . . . . . . . . . $ 26.7 $ 22.4 $ 75.2 $ 61.1
=============== =============== =============== =============
BASIC EARNINGS PER SHARE. . . . . . . . . . . . $ 0.27 $ 0.25 $ 0.77 0.68
=============== =============== =============== =============
DILUTED EARNINGS PER SHARE. . . . . . . . . . . $ 0.27 $ 0.24 $ 0.75 0.66
=============== =============== =============== =============
Basic shares outstanding. . . . . . . . . . . . 98.6 91.0 98.2 90.3
Common share equivalents . . . . . . . . . 1.7 1.9 2.2 2.2
--------------- --------------- --------------- -------------
Diluted shares outstanding. . . . . . . . . . . 100.3 92.9 100.4 92.5
=============== =============== =============== =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE DIAL CORPORATION
CONDENSED BALANCE SHEET
In millions
OCT 3, 1998 JANUARY 3, 1998
-------------- ----------------
<S> <C> <C>
ASSETS
Current assets . . . . . . . . . . . . . . . $ 268.9 $ 227.0
Non-current assets . . . . . . . . . . . . . 906.1 656.9
-------------- ----------------
Total assets . . . . . . . . . . . . . . . $ 1,175.0 $ 883.9
============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities. . . . . . . . . . . . . $ 251.9 $ 238.8
Long-term liabilities. . . . . . . . . . . . 542.8 325.1
Stockholders' equity . . . . . . . . . . . . 380.3 320.0
-------------- ----------------
Total liabilities and stockholders' equity $ 1,175.0 $ 883.9
============== ================
</TABLE>
<TABLE>
<CAPTION>
THE DIAL CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
In millions
QUARTER ENDED NINE MONTHS ENDED
------------- -----------------
OCT 3, 1998 SEPT 27, 1997 OCT 3, 1998 SEPT 27, 1997
--------------- ---------------- -------------- ---------------
<S> <C> <C> <C> <C>
Net cash provided (used) by operations . . . . . . . $ 32.3 $ 34.9 $ 63.5 $ 119.8
Net cash provided (used) by investing activities . . (201.4) (2.3) (290.1) (19.8)
Net cash provided (used) by financing activities . . 167.8 (36.0) 221.7 (105.3)
--------------- ---------------- ------------- ---------------
Net increase (decrease) in cash and cash equivalents (1.3) (3.4) (4.9) (5.3)
Cash and cash equivalents, beginning of year/period. . 6.5 12.2 10.1 14.1
--------------- ---------------- ------------- ---------------
Cash and cash equivalents, end of period . . . . . . $ 5.2 $ 8.8 $ 5.2 $ 8.8
=============== ================ ============= ===============
</TABLE>
