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 20, 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 July 20, 1999, the Company issued a press releases relating to its
financial results for the second quarter of 1999 a copy of which is
filed herewith as Exhibit 99.1
ITEM 7.
(C) Exhibits
(99.1) Press Release of the Company dated July 20, 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
July 27, 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 SECOND QUARTER 1999 EARNINGS PER SHARE UP 16% TO $0.29 PER SHARE ON
17% SALES INCREASE
SCOTTSDALE, ARIZ., JULY 20, 1999 - The Dial Corporation (NYSE:DL) today reported
a 16% increase in earnings per share for its second quarter due to strong core
revenue growth and continued improvement in its gross margin. The Company
posted second quarter net income of $29.4 million, or $0.29 per share (diluted),
versus $25.6 million, or $0.25 per share (diluted), in the year earlier quarter.
Net sales improved 17% to $430 million from $367 million for the same
period last year. Net sales in the current quarter include sales from Freeman
Cosmetic Corporation, acquired by the Company in July 1998, and Sarah Michaels,
Inc., acquired in September 1998. Sales without the acquisitions improved 11%
for the quarter due to strong shipments of core brands and a price increase
taken on Purex in January 1999.
The Company's gross margin increased 1.6 percentage points in the second quarter
to 50.9% from 49.3% in the same period last year, due to improvements in
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manufacturing costs and a price increase on Purex. Gross margin without the
Purex price increase was 50.1%.
For the first half of 1999, Dial's earnings per share increased 15% due to
strong core revenue growth and gross margin improvements. Net income for the
first half was $55.3 million, or $0.55 per share (diluted), versus $48.5
million, or $0.48 per share (diluted), the prior year. Net sales rose 18% in
the first half due to the inclusion of results from two acquisitions, Freeman
Cosmetics and Sarah Michaels, and strong growth in the Purex and Renuzit
franchises. Sales without the acquisitions improved 12% for the first half due
to strong shipments of core brands and the Purex price increase.
"We are very pleased with the Company's financial and operating performance for
the second quarter and first half of 1999," said Mal Jozoff, Chairman and CEO of
Dial. "The contribution of our new Specialty Personal Care business plus
fundamental strength in each of our four core franchises, Dial, Purex, Renuzit
and Armour, has resulted in our 12th quarter in a row of strong results."
The Dial Corporation, headquartered in Scottsdale, Ariz., 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
Unaudited
In millions, except for per share data
QUARTER ENDED SIX MONTHS ENDED
------------- ----------------
JULY 3, 1999 JULY 4, 1998 JULY 3, 1999 JULY 4, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net Sales. . . . . . . . . . . . . . . . . . . $ 430.4 $ 366.8 $ 829.3 $ 701.8
------------- ------------- ------------- -------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . 211.3 185.9 413.7 362.4
Selling, general and administrative expenses 164.6 136.2 312.1 254.1
------------- ------------- ------------- -------------
375.9 322.1 725.8 616.5
Operating income . . . . . . . . . . . . . . . 54.5 44.7 103.5 85.3
Interest and accretion . . . . . . . . . . . 8.3 4.6 16.7 9.4
------------- ------------- ------------- -------------
Income before income taxes . . . . . . . . . . 46.2 40.1 86.8 75.9
Income taxes . . . . . . . . . . . . . . . . 16.8 14.5 31.5 27.4
------------- ------------- ------------- -------------
Net income . . . . . . . . . . . . . . . . . . $ 29.4 $ 25.6 $ 55.3 $ 48.5
============= ============= ============= =============
Basic earnings per share . . . . . . . . . . . $ 0.30 $ 0.26 $ 0.56 $ 0.50
============= ============= ============= =============
Diluted earnings per share . . . . . . . . . . $ 0.29 $ 0.25 $ 0.55 $ 0.48
============= ============= ============= =============
Basic shares outstanding . . . . . . . . . . . 98.6 98.2 98.6 97.9
Common share equivalents . . . . . . . . . . 2.0 2.4 2.1 2.4
------------- ------------- ------------- -------------
Diluted shares outstanding . . . . . . . . . . 100.6 100.6 100.7 100.3
============= ============= ============= =============
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THE DIAL CORPORATION
CONDENSED BALANCE SHEET
Unaudited
In millions
JULY 3, DEC. 31,
1999 1998
------------------ ---------
<S> <C> <C> <C> <C>
ASSETS
Current assets. . . . . . . . . . . . . . . . . . . $ 264.8 $ 239.1
Non-current assets. . . . . . . . . . . . . . . . . 919.5 936.3
------------------ ---------
Total assets . . . . . . . . . . . . . . . . . $ 1,184.3 $1,175.4
================== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities . . . . . . . . . . . . . . . . $ 225.0 $ 250.6
Long-term liabilities . . . . . . . . . . . . . . . 558.4 534.6
Stockholders' equity. . . . . . . . . . . . . . . . 400.9 390.2
------------------ ---------
Total liabilities and stockholders' equity . . $ 1,184.3 $1,175.4
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CONDENSED STATEMENT OF CASH FLOWS
Unaudited
In millions
QUARTER ENDED . . . . . . . . . . . . . . . . SIX MONTHS ENDED
- --------------------------------------------------- ------------------
JULY 3, . . . . . . . . . . . . . . . . . . . JULY 4, JULY 3, JULY 4,
1999 1998 1999 1998
------------------ --------- --------- -------
Net cash provided by operations . . . . . . . . . . $ 25.4 $ 38.7 $ 25.9 $ 31.2
Net cash used by investing activities . . . . . . . (11.8) (92.1) (13.6) (88.7)
Net cash provided (used) by financing activities. . (13.6) 52.0 (19.4) 53.9
------------------ --------- --------- -------
Net decrease in cash and cash equivalents . . . . . 0.0 (1.4) (7.1) (3.6)
Cash and cash equivalents, beginning of year/period 5.3 7.9 12.4 10.1
------------------ --------- --------- -------
Cash and cash equivalents, end of period. . . . . . $ 5.3 $ 6.5 $ 5.3 $ 6.5
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