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: February 1, 2000
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 January 25, 2000, the Company issued a press release relating to its
financial results for the fourth quarter and the fiscal year ended
December 31, 1999, a copy of which is filed herewith as
Exhibit 99.
ITEM 7.
(C) Exhibits
(99) Press Release of the Company dated January 25, 2000.
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 1, 2000
/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 1999 EARNINGS PER SHARE UP 15 %
TO $1.17 PER SHARE ON 13% SALES INCREASE
SCOTTSDALE, ARIZ., JANUARY 25, 2000 - The Dial Corporation (NYSE:DL) announced
today a 15% increase in earnings per share for the year ended December 31, 1999,
driven by strong core revenue growth and continued improvement in its gross
margin. Net income was $116.8 million, or $1.17 per share (diluted), versus
$102.6 million, or $1.02 per share (diluted), in 1998.
Net sales improved 13% to $1,721.6 million from $1,524.5 million in 1998.
Net sales in 1999 include sales from Sarah Michaels, Inc., acquired in September
1998, and the Freeman Cosmetic Corporation, acquired in July of 1998. Sales
without the acquisitions improved 10% for 1999 due to strong shipments of core
brands and a price increase taken on Purex in January 1999.
The Company's gross margin increased 160 basis points in 1999 to 50.0% from
48.4%, due to improvements in manufacturing costs and a price increase on Purex.
Earnings in 1999 were offset by a loss in the Dial/Henkel LLC joint venture of
$1.3 million. The Company benefited from a reduction in the tax rate to 35.5%
from 36.1%.
For the fourth quarter of 1999, Dial's earnings per share increased 15% due to
core revenue growth and gross margin improvements. Net income for the fourth
quarter was $30.7 million, or $0.31 per share (diluted), versus $27.4 million,
or $0.27 per share (diluted), in the prior year. Net sales rose 4% in the
fourth quarter due to the strong growth in the Renuzit franchise and the Purex
price increase, offset by decreases in the Specialty Personal Care and
International franchises. Earnings in the quarter were negatively impacted by a
loss in the Dial/Henkel LLC joint venture of $0.9 million. The Company
benefited from a reduction in the tax rate to 34.7% from 36.3%.
"We are very pleased with our financial and operating performance in 1999," said
Mal Jozoff, Chairman and CEO of Dial. "These excellent operating and financial
results mark the 14th 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 is one of America's leading manufacturers of consumer
products, including Dial soaps, Purex laundry detergents, Renuzit air
fresheners, 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. For more information about The Dial
Corporation, visit the Company's Web site at www.dialcorp.com.
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THE DIAL CORPORATION
SUMMARY OF OPERATIONS
Unaudited
In millions, except for per share data
QUARTER ENDED FISCAL YEAR ENDED
------------- -----------------
DEC. 31, 1999 DEC. 31, 1998 DEC. 31, 1999 DEC. 31, 1998
--------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
Net Sales. . . . . . . . . . . . . . . . . . . $ 455.3 $ 438.8 $ 1,721.6 $ 1,524.5
--------------- --------------- -------------- --------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . 227.1 229.6 860.8 787.4
Selling, general and administrative expenses 172.3 157.7 645.7 553.2
--------------- --------------- -------------- --------------
399.4 387.3 1,506.5 1,340.6
Operating income . . . . . . . . . . . . . . . 55.9 51.5 215.1 183.9
Interest and accretion . . . . . . . . . . . 8.0 8.5 32.7 23.3
Net Earnings (Loss) of Joint Venture . . . . (0.9) (1.3)
--------------- ---------------
Income before income taxes . . . . . . . . . . 47.0 43.0 181.1 160.6
Income taxes . . . . . . . . . . . . . . . . 16.3 15.6 64.3 58.0
--------------- --------------- -------------- --------------
Net income . . . . . . . . . . . . . . . . . . $ 30.7 $ 27.4 $ 116.8 $ 102.6
=============== =============== ============== ==============
Basic earnings per share . . . . . . . . . . . $ 0.32 $ 0.28 $ 1.19 $ 1.04
=============== =============== ============== ==============
Diluted earnings per share . . . . . . . . . . $ 0.31 $ 0.27 $ 1.17 $ 1.02
=============== =============== ============== ==============
Basic shares outstanding . . . . . . . . . . . 97.3 98.6 98.3 98.3
Common share equivalents . . . . . . . . . . 1.4 2.2 1.8 2.2
--------------- --------------- -------------- --------------
Diluted shares outstanding . . . . . . . . . . 98.7 100.8 100.1 100.5
=============== =============== ============== ==============
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THE DIAL CORPORATION
SUMMARY OF NET SALES
Unaudited
In millions
QUARTER ENDED FISCAL YEAR ENDED
------------- -----------------
DEC. 31, 1999 DEC. 31, 1998 DEC. 31, 1999 DEC. 31, 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Dial . . . . . . . . . . . . . . . $ 97.1 $ 95.6 $ 404.9 $ 385.0
Purex. . . . . . . . . . . . . . . 119.7 107.3 474.6 417.0
Renuzit. . . . . . . . . . . . . . 61.7 54.4 213.7 177.1
Armour . . . . . . . . . . . . . . 67.3 61.3 246.5 233.1
Specialty Personal Care. . . . . . 49.1 58.1 137.7 79.1
-------------- -------------- -------------- --------------
Total Domestic Branded . . . . . 394.9 376.7 1,477.4 1,291.3
International. . . . . . . . . . . 42.8 45.5 174.6 164.1
Commercial Markets and Other . . . 17.6 16.6 69.6 69.1
-------------- -------------- -------------- --------------
Total reported - Dial Corporation. $ 455.3 $ 438.8 $ 1,721.6 $ 1,524.5
============== ============== ============== ==============
Net Sales of Dial/Henkel, LLC.,
an unconsolidated joint venture $ 9.9 $ 10.7
-------------- --------------
Total Sales
reported and unconsolidated . . $ 465.2 $ 1,732.3
============== ==============
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THE DIAL CORPORATION
CONDENSED BALANCE SHEET
Unaudited
In millions
DEC. 31, DEC. 31,
1999 1998
------------------- ----------
<S> <C> <C> <C> <C>
ASSETS
Current assets . . . . . . . . . . . . . . . . . . . $ 332.5 $ 239.1
Non-current assets . . . . . . . . . . . . . . . . . 937.2 936.3
------------------- ----------
Total assets. . . . . . . . . . . . . . . . . . $ 1,269.7 $ 1,175.4
=================== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities. . . . . . . . . . . . . . . . . $ 318.0 $ 250.6
Long-term liabilities. . . . . . . . . . . . . . . . 540.4 534.6
Stockholders' equity . . . . . . . . . . . . . . . . 411.3 390.2
------------------- ----------
Total liabilities and stockholders' equity. . . $ 1,269.7 $ 1,175.4
=================== ==========
CONDENSED STATEMENT OF CASH FLOWS
Unaudited
In millions
QUARTER ENDED. . . . . . . . . . . . . . . . . . FISCAL YEAR ENDED
- ---------------------------------------------------- -------------------
DEC. 31, . DEC. 31, DEC. 31, DEC. 31,
1999 1998 1999 1998
------------------- ---------- ---------- --------
Net cash provided by operations. . . . . . . . . . . $ 59.5 $ 60.7 $ 121.8 $ 122.2
Net cash used by investing activities. . . . . . . . (31.8) (22.6) (68.3) (310.7)
Net cash provided (used) by financing activities . . (29.5) (30.9) (59.8) 190.8
------------------- ---------- ---------- --------
Net increase (decrease) in cash and cash equivalents (1.8) 7.2 (6.3) 2.3
Cash and cash equivalents, beginning of year/period. 7.9 5.2 12.4 10.1
------------------- ---------- ---------- --------
Cash and cash equivalents, end of period . . . . . . $ 6.1 $ 12.4 $ 6.1 $ 12.4
=================== ========== ========== ========
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