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: April 25, 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 April 25, 2000, the Company issued a press release relating to its financial
results for the first quarter of 2000, a copy of which is filed herewith as
Exhibit 99.1.
On April 25, 2000, the Company issued a press release announcing the agreement
to purchase Coast brand soap from The Proctor & Gamble Company, a copy of which
is filed herewith as Exhibit 99.2.
ITEM 7.
(C) Exhibits
(99.1) Press Release of the Company dated April 25,2000.
(99.2) Press Release of the Company dated April 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
May 2, 2000
/s/ Susan J. Riley
Executive Vice President and Chief Financial Officer
EXHIBIT 99.1.
CYNTHIA DEMERS -- CORPORATE AND GOVERNMENT AFFAIRS
480.754.4090
BOB FULTON -- INVESTOR RELATIONS
480.754.1016
DIAL REPORTS FIRST QUARTER 2000 EARNINGS PER SHARE OF $0.23
ON $373 MILLION IN SALES
SCOTTSDALE, ARIZ., APRIL 25, 2000 - The Dial Corporation (NYSE: DL) announced
today earnings per share of $0.23 for the quarter ended April 1, 2000, in line
with revised guidance released on March 10, 2000. Net income was $21.5 million,
or $0.23 per share (diluted), versus $25.9 million, or $0.26 per share
(diluted), in the first quarter of 1999. The year-over-year reduction in
operating results was caused mainly by lower than expected sales and gross
margin as previously disclosed.
Net sales for the quarter, as consolidated, declined 6.5 percent to $373.1
million from $398.9 million in the first quarter of 1999. Net sales, including
the Dial/Henkel LLC joint venture, were down 2 percent for the quarter.
Gross margin for the quarter was up 20 basis points to 49.5 percent. Gross
margin was positively impacted by improvements in manufacturing and procurement
but offset by the reduced overhead absorption associated with lower sales,
increasing costs of petroleum that affects, among other things, transportation
and distribution expenses, and the mix of products sold. Dial's portion of the
loss in the Dial/Henkel LLC joint venture reduced earnings by $0.7 million in
the quarter. The Company benefited from a reduction in the tax rate to 34.5
percent from 36.3 percent.
"This has been a frustrating period for a company that has enjoyed more
than three years of earnings growth," said Mal Jozoff, Chairman and CEO of
Dial. "However, our core business market shares remain strong and we remain
confidentwe can work through the short-term issues which impacted this
quarter. The strong new product programs lined up for the back half of the year,
plus the two strategic acquisitions we recently announced, make us confident
Dial will recover."
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 Cosmetics
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, please access the Company's Web site at www.dialcorp.com or
call the Dial Consumer Information Center at 1-800-528-0849.
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THE DIAL CORPORATION
SUMMARY OF OPERATIONS
Unaudited
In millions, except for per share data
QUARTER ENDED
-------------
APRIL 1, 2000 APRIL 3, 1999
--------------- --------------
<S> <C> <C>
Net Sales. . . . . . . . . . . . . . . . . . . $ 373.1 $ 398.9
--------------- --------------
Costs and expenses:
Cost of products sold. . . . . . . . . . . . 188.5 202.4
Selling, general and administrative expenses 141.4 147.5
--------------- --------------
329.9 349.9
Operating income . . . . . . . . . . . . . . . 43.2 49.0
Interest and accretion expense . . . . . . . 9.7 8.4
Net Earnings (Loss) of Joint Venture . . . . (0.7) -
--------------- --------------
Income before income taxes . . . . . . . . . . 32.8 40.6
Income taxes . . . . . . . . . . . . . . . . 11.3 14.7
--------------- --------------
Net income . . . . . . . . . . . . . . . . . . $ 21.5 $ 25.9
=============== ==============
Basic earnings per share . . . . . . . . . . . $ 0.23 $ 0.26
=============== ==============
Diluted earnings per share . . . . . . . . . . $ 0.23 $ 0.26
=============== ==============
Basic shares outstanding . . . . . . . . . . . 94.0 98.8
Common share equivalents . . . . . . . . . . 0.6 2.1
--------------- --------------
Diluted shares outstanding . . . . . . . . . . 94.6 100.9
=============== ==============
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<TABLE>
<CAPTION>
THE DIAL CORPORATION
SUMMARY OF NET SALES
Unaudited
In millions
QUARTER ENDED
-------------
APRIL 1, 2000 APRIL 3, 1999
-------------- --------------
<S> <C> <C>
Dial. . . . . . . . . . . . . . . . . $ 83.2 $ 88.9
Purex . . . . . . . . . . . . . . . . 112.7 119.2
Renuzit . . . . . . . . . . . . . . . 50.8 49.9
Armour. . . . . . . . . . . . . . . . 44.7 54.3
Specialty Personal Care . . . . . . . 27.1 26.8
-------------- --------------
Total Domestic Branded. . . . . . . 318.5 339.1
International . . . . . . . . . . . . 38.5 43.7
Commercial Markets & Other. . . . . . 16.1 16.1
-------------- --------------
Total reported - The Dial Corporation $ 373.1 $ 398.9
============== ==============
Net Sales of Dial/Henkel, LLC,
an unconsolidated joint venture. . $ 17.8 $ -
-------------- --------------
Total Sales
reported and unconsolidated. . . . $ 390.9 $ 398.9
============== ==============
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<TABLE>
<CAPTION>
THE DIAL CORPORATION
CONDENSED BALANCE SHEET
Unaudited
In millions
APRIL 1, DEC. 31,
2000 1999
---------- ---------
<S> <C> <C>
ASSETS
Current assets. . . . . . . . . . . . . . . . . . . $ 393.1 $ 332.5
Non-current assets. . . . . . . . . . . . . . . . . 928.7 937.2
---------- ---------
Total assets . . . . . . . . . . . . . . . . . $ 1,321.8 $1,269.7
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities . . . . . . . . . . . . . . . . $ 331.2 $ 318.0
Long-term liabilities . . . . . . . . . . . . . . . 646.0 540.4
Stockholders' equity. . . . . . . . . . . . . . . . 344.6 411.3
---------- ---------
Total liabilities and stockholders' equity . . $ 1,321.8 $1,269.7
========== =========
CONDENSED STATEMENT OF CASH FLOWS
Unaudited
In millions
QUARTER ENDED
-------------
APRIL 1, APRIL 3,
2000 1999
---------- ---------
Net income. . . . . . . . . . . . . . . . . . . . . $ 21.5 $ 25.9
Adjustments to reconcile net income to net cash
provided (used) by operating activities
Depreciation and amortization . . . . . . . . . . 12.4 10.5
Deferred income taxes . . . . . . . . . . . . . . 5.2 9.3
Change in operating assets and liabilities:
Receivables. . . . . . . . . . . . . . . . . . . 16.9 8.8
Inventories. . . . . . . . . . . . . . . . . . . (17.7) (11.6)
Trade accounts payable . . . . . . . . . . . . . (30.7) (19.5)
Other assets and liabilities, net. . . . . . . . (37.0) (22.9)
---------- ---------
Net cash provided (used) by operating activities. . (29.4) 0.5
Net cash used by investing activities . . . . . . . (9.5) (1.8)
Net cash provided (used) by financing activities. . 38.0 (5.8)
---------- ---------
Net decrease in cash and cash equivalents . . . . . (0.9) (7.1)
Cash and cash equivalents, beginning of year/period 6.1 12.4
---------- ---------
Cash and cash equivalents, end of period. . . . . . $ 5.2 $ 5.3
========== =========
</TABLE>
EXHIBIT 99.2.
CYNTHIA DEMERS -- CORPORATE AND GOVERNMENT AFFAIRS
480.754.4090
BOB FULTON -- INVESTOR RELATIONS
480.754.1016
DIAL TO ACQUIRE THE COAST BRAND
FROM PROCTER & GAMBLE
SCOTTSDALE, ARIZ., APRIL 25, 2000 - The Dial Corporation (NYSE: DL) announced
today that it has agreed to acquire the Coast brand from The Procter & Gamble
Company (NYSE: PG). The agreement calls for Dial to purchase assets relating to
the Coast business, which consist primarily of trademarks, equipment and
finished product inventory. Terms of the transaction were not disclosed.
"We are excited about adding Coast to our portfolio of personal care
products," said Mal Jozoff, Dial's Chairman and CEO. "Coast has tremendous brand
equity and stable retail distribution. As we integrate Coast, we will realize
important efficiencies, particularly in manufacturing. This brand is an
excellent fit for Dial."
The acquisition is expected to be neutral to Dial's earnings in 2000
and slightly accretive in 2001. The acquisition, which is subject to certain
closing conditions and approvals, is expected to be completed by early
June.
The Dial Corporation, headquartered in Scottsdale, Ariz., 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 Cosmetics 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.
Procter & Gamble manufactures over 300 brands to 5 billion consumers in 140
countries. Its beauty care brands include Olay, Safeguard, Zest, Clearasil,
Noxzema, Secret, Old Spice, Pantene Vidal Sassoon, Cover Girl and Max Factor.
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