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: July 23, 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 July 23, 1998, the Company issued a press release relating to its financial
results for the second quarter of 1998, a copy of which is filed herewith as
Exhibit 99.
ITEM 7.
(C) Exhibits
(99) Press Release of the Company dated July 23, 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
July 30, 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 SECOND QUARTER NET INCOME IMPROVED 26%
NET EARNINGS PER SHARE UP 14%
SCOTTSDALE, ARIZ., JULY 23, 1998 - The Dial Corporation (NYSE/DL) today reported
a 26% increase in net income for its second quarter due to core revenue growth
and a 1.7 percentage point improvement in its gross margin. The Company posted
second quarter net income of $25.6 million, or $ .25 per share (diluted), versus
$20.4 million, or $ .22 per share (diluted), in the year-earlier quarter.
Net sales improved 5% to $367 million versus $349 million for the same
period last year. Net sales in the year-ago quarter included $19 million of
sales from non-strategic brands that were sold in the third quarter of 1997.
Sales from core businesses increased 11% due to strong results in the Company's
international operations and the inclusion of Nuevo Federal, a soap and laundry
detergent subsidiary in Argentina acquired in the third quarter of 1997.
Domestically, sales of Dial personal care products and Purex laundry detergents
grew 13% and 7% respectively.
The Company's gross margin increased 1.7 percentage points in the second
quarter to 49.3%, from 47.6% in the same period last year, due to improved
manufacturing efficiencies and strong sales of its high-margin personal washing
products.
For the first six months of 1998, Dial's net income increased 25% to $48.5
million, or $ .48 per share (diluted), versus $38.7 million, or $ .42 per share
(diluted), in the prior year. Net sales rose more than 5% in the first half
while sales from core businesses improved more than 12% due to strong growth in
the Dial and Purex franchises and the inclusion of results from Nuevo Federal.
"We are particularly pleased with the quality of the earnings we have
achieved throughout the second quarter and so far this year," commented Mal
Jozoff, Dial Chairman and CEO. "All indicators of operating strength - gross
margin improvement, core franchise market share gains, international expansion
and strong net earnings per share - came together. Our business is developing
right on plan."
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 Freeman
personal care products. 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 SIX MONTHS ENDED
-------------------------------- -------------------------------
JULY 4, 1998 JUNE 28, 1997 JULY 4, 1998 JUNE 28, 1997
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . $ 366.8 $ 349.3 $ 701.8 665.5
--------------- --------------- --------------- --------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . 185.9 183.0 362.4 352.3
Selling, general and administrative expenses 136.2 126.3 254.1 236.5
--------------- --------------- --------------- --------------
322.1 309.3 616.5 588.8
Operating income. . . . . . . . . . . . . . . . 44.7 40.0 85.3 76.7
Interest and accretion . . . . . . . . . . . 4.6 7.1 9.4 14.8
--------------- --------------- --------------- -------------
Income before income taxes. . . . . . . . . . . 40.1 32.9 75.9 61.9
Income taxes . . . . . . . . . . . . . . . . 14.5 12.5 27.4 23.2
--------------- --------------- --------------- -------------
NET INCOME. . . . . . . . . . . . . . . . . . . $ 25.6 $ 20.4 $ 48.5 $ 38.7
=============== =============== =============== =============
BASIC EARNINGS PER SHARE. . . . . . . . . . . . $ 0.26 $ 0.23 $ 0.50 0.43
=============== =============== =============== =============
DILUTED EARNINGS PER SHARE. . . . . . . . . . . $ 0.25 $ 0.22 $ 0.48 0.42
=============== =============== =============== =============
Basic shares outstanding. . . . . . . . . . . . 98.2 90.4 97.9 90.3
Common share equivalents . . . . . . . . . 2.4 2.2 2.4 2.0
--------------- --------------- --------------- -------------
Diluted shares outstanding. . . . . . . . . . . 100.6 92.6 100.3 92.3
=============== =============== =============== =============
Note: The Summary of Operations does not include any results from Freeman Cosmetic Corporation, which was acquired by
The Dial Corporation on July 1, 1998.
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THE DIAL CORPORATION
CONDENSED BALANCE SHEET
In millions
JULY 4, 1998 JANUARY 3, 1998
-------------- ----------------
<S> <C> <C>
ASSETS
Current assets . . . . . . . . . . . . . . . $ 204.3 $ 227.0
Non-current assets . . . . . . . . . . . . . 745.7 656.9
-------------- ----------------
Total assets . . . . . . . . . . . . . . . $ 950.0 $ 883.9
============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities. . . . . . . . . . . . . $ 226.4 $ 238.8
Long-term liabilities. . . . . . . . . . . . 360.6 325.1
Stockholders' equity . . . . . . . . . . . . 363.0 320.0
-------------- ----------------
Total liabilities and stockholders' equity $ 950.0 $ 883.9
============== ================
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THE DIAL CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
In millions
QUARTER ENDED SIX MONTHS ENDED
------------- ----------------
JULY 4, 1998 JUNE 28, 1997 JULY 4, 1998 JUNE 28, 1997
--------------- ---------------- -------------- ---------------
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Net cash provided (used) by operations . . . . . . . $ 38.7 $ 63.8 $ 31.2 $ 84.9
Net cash provided (used) by investing activities . . (92.1) (10.7) (88.7) (17.5)
Net cash provided (used) by financing activities . . 52.0 (46.6) 53.9 (69.3)
--------------- ---------------- ------------- ---------------
Net increase (decrease) in cash and cash equivalents (1.4) 6.5 (3.6) (1.9)
Cash and cash equivalents, beginning of year/period. . 7.9 5.7 10.1 14.1
--------------- ---------------- ------------- ---------------
Cash and cash equivalents, end of period . . . . . . $ 6.5 $ 12.2 $ 6.5 $ 12.2
=============== ================ ============= ===============
Note: The Condensed Balance Sheet includes the accounts of Freeman Cosmetic Corporation, which was
acquired by The Dial Corporation on July 1, 1998.
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