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 19, 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 (480) 754-3425
<PAGE>
ITEM 5. OTHER EVENTS.
On October 19, 1999, the Company issued a press release relating to its
financial results for the third quarter of 1999, a copy of which is filed
herewith as Exhibit 99.
ITEM 7.
(C) Exhibits
(99) Press Release of the Company dated October 19, 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
October 27, 1999
/s/ Susan J. Riley
Executive Vice President and Chief Financial Officer
CYNTHIA DEMERS -- CORPORATE AND GOVERNMENT AFFAIRS
480.754.4090
BOB FULTON -- INVESTOR RELATIONS
480.754.1016
DIAL REPORTS THIRD QUARTER 1999 EARNINGS PER SHARE UP 15% TO $0.31 PER SHARE ON
14% SALES INCREASE
SCOTTSDALE, ARIZ., OCTOBER 19, 1999 - The Dial Corporation (NYSE:DL) today
reported a 15% increase in earnings per share 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 $30.8 million, or $0.31 per share
(diluted), versus $26.7 million, or $0.27 per share (diluted), in the year
earlier quarter.
Net sales improved 14% to $437 million from $384 million for the same period
last year. Net sales in the current quarter include sales from Sarah Michaels,
Inc., acquired in September 1998. Sales without the acquisition improved 9% 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 60 basis points in the third quarter to
49.7% from 49.1% in the same period last year, due to improvements in
manufacturing costs and a price increase on Purex, partially offset by lower
margins on holiday gift
packs. The Company has also benefited from a reduction in the tax rate to 34.9%
from 35.8%.
For the first nine months of 1999, Dial's earnings per share increased 15%
due to strong core revenue growth and gross margin improvements. Net income for
the first nine months was $86.1 million, or $0.86 per share (diluted), versus
$75.2 million, or $0.75 per share (diluted), the prior year. Net sales rose 17%
in the first nine months due to the inclusion of results from the acquisitions
of The Freeman Cosmetic Corporation, acquired by the Company in July 1998, and
Sarah Michaels, Inc., and strong growth in the Purex and Renuzit franchises.
Sales without the acquisitions improved 11% for the first nine months due to
strong shipments of core brands and the Purex price increase. The Company has
also benefited from a reduction in the tax rate to 35.8% from 36.0%.
"Our third quarter results showed the fundamental strengths of our Company
to grow our core franchises, add new products and integrate new acquisitions in
the U.S. and internationally," said Mal Jozoff, Chairman and CEO of Dial.
"These excellent operating and financial results mark the 13th consecutive
quarter we have met or beat expectations. In today's stock market environment,
that's an enviable record of which we're all very proud."
The Dial Corporation, headquartered in Scottsdale, Ariz., is one of America's
leading manufacturers of consumer products, including Dial 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 more than 100 years.
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THE DIAL CORPORATION
SUMMARY OF OPERATIONS
Unaudited
In millions, except for per share data
QUARTER ENDED NINE MONTHS ENDED
------------- -----------------
OCT 2, 1999 OCT 3, 1998 OCT 2, 1999 OCT 3, 1998
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
Net Sales. . . . . . . . . . . . . . . . . . . $ 437.0 $ 383.9 $ 1,266.3 $ 1,085.7
------------- ------------- ------------ ------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . 220.0 195.4 633.7 557.8
Selling, general and administrative expenses 161.3 141.4 473.4 395.5
------------- ------------- ------------ ------------
381.3 336.8 1,107.1 953.3
Operating income . . . . . . . . . . . . . . . 55.7 47.1 159.2 132.4
Interest and accretion . . . . . . . . . . . 8.0 5.5 24.7 14.9
Net Earnings (Loss) of Joint Venture . . . . (0.4) (0.4)
------------- -------------
Income before income taxes . . . . . . . . . . 47.3 41.6 134.1 117.5
Income taxes . . . . . . . . . . . . . . . . 16.5 14.9 48.0 42.3
------------- ------------- ------------ ------------
Net income . . . . . . . . . . . . . . . . . . $ 30.8 $ 26.7 $ 86.1 $ 75.2
============= ============= ============ ============
Basic earnings per share . . . . . . . . . . . $ 0.31 $ 0.27 $ 0.87 $ 0.77
============= ============= ============ ============
Diluted earnings per share . . . . . . . . . . $ 0.31 $ 0.27 $ 0.86 $ 0.75
============= ============= ============ ============
Basic shares outstanding . . . . . . . . . . . 98.3 98.6 98.6 98.2
Common share equivalents . . . . . . . . . . 1.8 1.7 2.1 2.2
------------- ------------- ------------ ------------
Diluted shares outstanding . . . . . . . . . . 100.1 100.3 100.7 100.4
============= ============= ============ ============
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THE DIAL CORPORATION
CONDENSED BALANCE SHEET
Unaudited
In millions
OCT. 2, DEC. 31,
1999 1998
------------------- ---------
<S> <C> <C> <C> <C>
ASSETS
Current assets . . . . . . . . . . . . . . . . . . . $ 286.9 $ 239.1
Non-current assets . . . . . . . . . . . . . . . . . 930.4 936.3
------------------- ---------
Total assets. . . . . . . . . . . . . . . . . . $ 1,217.3 $1,175.4
=================== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities. . . . . . . . . . . . . . . . . $ 304.2 $ 250.6
Long-term liabilities. . . . . . . . . . . . . . . . 486.7 534.6
Stockholders' equity . . . . . . . . . . . . . . . . 426.4 390.2
------------------- ---------
Total liabilities and stockholders' equity. . . $ 1,217.3 $1,175.4
=================== =========
CONDENSED STATEMENT OF CASH FLOWS
Unaudited
In millions
QUARTER ENDED. . NINE MONTHS ENDED
---------------------------------------------------- ------------------
OCT 2, . OCT 3, OCT 2, OCT 3,
1999 1998 1999 1998
------------------- --------- -------- --------
Net cash provided by operations. . . . . . . . . . . $ 36.4 $ 30.3 $ 62.3 $ 61.5
Net cash used by investing activities. . . . . . . . (22.9) (199.4) (36.5) (288.1)
Net cash provided (used) by financing activities . . (10.9) 167.8 (30.3) 221.7
------------------- --------- -------- --------
Net increase (decrease) in cash and cash equivalents 2.6 (1.3) (4.5) (4.9)
Cash and cash equivalents, beginning of year/period. 5.3 6.5 12.4 10.1
------------------- --------- -------- --------
Cash and cash equivalents, end of period . . . . . . $ 7.9 $ 5.2 $ 7.9 $ 5.2
=================== ========= ======== ========
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