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: April 21, 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
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ITEM 5. OTHER EVENTS.
On April 21, 1998, the Company issued a press release relating to its financial
results for the first quarter of 1998, a copy of which is filed herewith as
Exhibit 99.
ITEM 7.
(C) Exhibits
(99) Press Release of the Company dated April 21, 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
April 21, 1998
\s\ Susan J. Riley
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 FIRST QUARTER NET INCOME IMPROVED 25%
--------------------------------------------
NET EARNINGS PER SHARE UP 15%
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SCOTTSDALE, ARIZ., APRIL 21, 1998 - The Dial Corporation (NYSE/DL) today
reported a 25% increase in net income for its first quarter versus the same
quarter last year due to strong core revenue growth and gross margin
improvements. The Company posted first quarter net income of $22.9 million, or
$ .23 per share (diluted), versus $18.3 million, or $ .20 per share (diluted),
in the year-earlier quarter.
Net sales improved 6% to $335 million versus $316 million for the same
period last year. Net sales for the first quarter of 1997 included $23 million
of sales from non-strategic brands that the Company divested in the third
quarter of 1997. Sales from continuing businesses increased 14% over the prior
year's quarter due to important progress throughout the Company's international
operations with particular contribution from Nuevo Federal, a soap and laundry
detergent subsidiary in Argentina, which was acquired in the third quarter
of 1997. Domestically, Dial Personal Care Products and Purex Laundry Detergents
grew impressively.
Dial's gross margin in the first quarter was 47.3%, up from 46.5% in the
same period last year due to the Company's continuing success in improving
manufacturing efficiencies.
"We are pleased with our first quarter results," commented Mal Jozoff, Dial
Chairman and Chief Executive Officer. "We continue to focus on our four core
franchises (Dial, Purex, Renuzit and Armour), on growing our international
business and on keeping our eye on cost controls. Our first quarter marks yet
another quarter where we have delivered strong results. We believe it is
further testament to the fact that our strategy is right for the Company."
The Dial Corporation, headquartered in Scottsdale, Arizona, is a leading
manufacturer and marketer of consumer products including Dial soaps, Purex
detergents, Renuzit air fresheners and Armour canned meats. Dial products have
been in the American marketplace for more than 100 years.
XXX
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THE DIAL CORPORATION
SUMMARY OF OPERATIONS
In millions, except per share data
QUARTER ENDED
----------------------------------
APRIL 4, 1998 MARCH 29, 1997
--------------- ---------------
<S> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . $ 335.0 $ 316.2
--------------- ---------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . 176.5 169.3
Selling, general and administrative expenses 117.9 110.2
--------------- ---------------
294.4 279.5
Operating income. . . . . . . . . . . . . . . . 40.6 36.7
Interest and accretion . . . . . . . . . . . 4.8 7.7
--------------- ---------------
Income before income taxes. . . . . . . . . . . 35.8 29.0
Income taxes . . . . . . . . . . . . . . . . 12.9 10.7
--------------- ---------------
NET INCOME. . . . . . . . . . . . . . . . . . . $ 22.9 $ 18.3
=============== ===============
BASIC EARNINGS PER SHARE. . . . . . . . . . . . $ 0.23 $ 0.20
=============== ===============
DILUTED EARNINGS PER SHARE. . . . . . . . . . . $ 0.23 $ 0.20
=============== ===============
Basic shares outstanding. . . . . . . . . . . . 97.8 89.9
Common share equivalents . . . . . . . . . 2.2 2.0
--------------- ---------------
Diluted shares outstanding. . . . . . . . . . . 100.0 91.9
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THE DIAL CORPORATION
CONDENSED BALANCE SHEET
In millions
APRIL 4, 1998 JANUARY 3, 1998
-------------- ----------------
<S> <C> <C>
ASSETS
Current assets . . . . . . . . . . . . . . . $ 196.1 $ 227.0
Non-current assets . . . . . . . . . . . . . 659.5 656.9
-------------- ----------------
Total assets . . . . . . . . . . . . . . . $ 855.6 $ 883.9
============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities. . . . . . . . . . . . . $ 204.2 $ 238.8
Long-term liabilities. . . . . . . . . . . . 313.2 325.1
Stockholders' equity . . . . . . . . . . . . 338.2 320.0
-------------- ----------------
Total liabilities and stockholders' equity $ 855.6 $ 883.9
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THE DIAL CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
In millions
QUARTER ENDED
-------------
APRIL 4, 1998 MARCH 29, 1997
--------------- ----------------
<S> <C> <C>
Net cash provided (used) by operations . . . . . . . $ (7.5) $ 21.1
Net cash provided (used) by investing activities . . 3.4 (6.8)
Net cash provided (used) by financing activities . . 1.9 (22.7)
--------------- ----------------
Net increase (decrease) in cash and cash equivalents (2.2) (8.4)
Cash and cash equivalents, beginning of year/period. . 10.1 14.1
--------------- ----------------
Cash and cash equivalents, end of period . . . . . . $ 7.9 $ 5.7
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