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: January 26, 1999
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 January 26, 1999, the Company issued a press release relating to its
financial results for the year and fourth quarter of 1998, a copy of
which is filed herewith as Exhibit 99.
Item 7.
(C) Exhibits
(99) Press Release of the Company dated January 26, 1999.
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
February 2, 1999
/s/ Susan J. Riley
Senior Vice President and Chief Financial Officer
Nancy Stern-Corporate Affairs
602.754.4090
Bob Fulton-Investor Relations
602.754.1016
DIAL REPORTS 1998 NET INCOME UP 23% ON 12% SALES INCREASE
FOURTH QUARTER SALES AND NET INCOME ROSE 21%
Scottsdale, Ariz., Jan. 26, 1999 - The Dial Corporation (NYSE:DL) today
reported a 23% increase in net income for the year ended Dec. 31, 1998, driven
by strong sales growth and continued gross margin improvement. Net income was
$102.6 million, or $1.02 per share (diluted), versus $83.7 million, or $0.89
per share (diluted),in 1997.
Net sales for 1998 were up 12% to $1.525 billion from $1.363 billion in 1997.
This increase resulted from strong growth in the Dial and Renuzit franchises,
which each grew more than 12%, as well as from inclusion of results from three
acquisitions: a full-year contribution from Nuevo Federal, acquired in
September 1997; two quarters of sales from The Freeman Cosmetic Corporation,
acquired in July 1998; and one quarter of sales from Sarah Michaels, Inc.,
acquired in September 1998.
(more)
Page 2
Gross margin increased to 48.4% in 1998 from 47.3% in 1997 due to improved
manufacturing efficiencies, lower commodity costs and continued strong sales
of high margin air freshener and personal washing products.
For the fourth quarter of 1998, net sales were $438.8 million, up 21% from
$362.8 million in the fourth quarter of 1997. Net income in the 1998 fourth
quarter was $27.4 million, up 21% from $22.7 million in the year-ago quarter.
Earnings per share (diluted) were $0.27 in the 1998 quarter versus $0.23 in
the 1997 quarter. Gross margin increased 60 basis points to 47.7%.
"We are very pleased with our financial and operating performance in the
fourth quarter, which capped an outstanding 1998," said Mal Jozoff, Chairman
and CEO. "The Company delivered another year of solid improvements in sales,
gross margin, earnings and market share in our core domestic branded business
and in our international business. We also began building a leadership
position in the Specialty Personal Care category with our acquisitions of
Freeman Cosmetics and Sarah Michaels."
The Dial Corporation, headquartered in Scottsdale, Arizona, is one of
America's leading manufacturers of consumer products, including Dial soaps,
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 more than 100 years.
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THE DIAL CORPORATION
SUMMARY OF OPERATIONS
In millions, except per share data
QUARTER ENDED FISCAL YEAR ENDED
-------------------------------- -------------------------------
DEC. 31, 1998 JAN. 3, 1998 DEC. 31, 1998 JAN. 3, 1998
--------------- --------------- --------------- --------------
<S> <C> <C> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . $ 438.8 $ 362.8 $ 1,524.5 $ 1,362.6
--------------- --------------- --------------- --------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . 229.6 192.0 787.4 718.1
Selling, general and administrative expenses 157.7 126.3 553.2 482.3
--------------- --------------- --------------- --------------
387.3 318.3 1,340.6 1,200.4
Operating income. . . . . . . . . . . . . . . . 51.5 44.5 183.9 162.2
Interest and accretion . . . . . . . . . . . 8.5 7.1 23.3 28.3
--------------- --------------- --------------- -------------
Income before income taxes. . . . . . . . . . . 43.0 37.4 160.6 133.9
Income taxes . . . . . . . . . . . . . . . . 15.6 14.7 58.0 50.2
--------------- --------------- --------------- -------------
NET INCOME. . . . . . . . . . . . . . . . . . . $ 27.4 $ 22.7 $ 102.6 $ 83.7
=============== =============== =============== =============
BASIC EARNINGS PER SHARE. . . . . . . . . . . . $ 0.28 $ 0.24 $ 1.04 0.91
=============== =============== =============== =============
DILUTED EARNINGS PER SHARE. . . . . . . . . . . $ 0.27 $ 0.23 $ 1.02 0.89
=============== =============== =============== =============
Basic shares outstanding. . . . . . . . . . . . 98.6 94.0 98.3 91.9
Common share equivalents . . . . . . . . . 2.2 2.7 2.2 2.2
--------------- --------------- --------------- -------------
Diluted shares outstanding. . . . . . . . . . . 100.8 96.7 100.5 94.1
=============== =============== =============== =============
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THE DIAL CORPORATION
CONDENSED BALANCE SHEET
In millions
DEC. 31, 1998 JAN. 3, 1998
-------------- ----------------
<S> <C> <C>
ASSETS
Current assets . . . . . . . . . . . . . . . $ 248.5 $ 227.0
Non-current assets . . . . . . . . . . . . . 917.0 656.9
-------------- ----------------
Total assets . . . . . . . . . . . . . . . $ 1,165.5 $ 883.9
============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities. . . . . . . . . . . . . $ 240.8 $ 238.8
Long-term liabilities. . . . . . . . . . . . 533.0 325.1
Stockholders' equity . . . . . . . . . . . . 391.7 320.0
-------------- ----------------
Total liabilities and stockholders' equity $ 1,165.5 $ 883.9
============== ================
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THE DIAL CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
In millions
QUARTER ENDED FISCAL YEAR ENDED
------------- -----------------
DEC. 31, 1998 JAN. 3, 1998 DEC. 31, 1998 JAN. 3, 1998
--------------- ---------------- -------------- ---------------
<S> <C> <C> <C> <C>
Net cash provided (used) by operations . . . . . . . $ 60.5 $ 41.1 $ 122.0 $ 160.8
Net cash provided (used) by investing activities . . (22.4) (22.7) (310.4) (42.4)
Net cash provided (used) by financing activities . . (30.9) (17.1) 190.7 (122.4)
--------------- ---------------- ------------- ---------------
Net increase (decrease) in cash and cash equivalents 7.2 1.3 2.3 (4.0)
Cash and cash equivalents, beginning of year/period. . 5.2 8.8 10.1 14.1
--------------- ---------------- ------------- ---------------
Cash and cash equivalents, end of period . . . . . . $ 12.4 $ 10.1 $ 12.4 $ 10.1
=============== ================ ============= ===============
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