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 10, 2001
THE DIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
| DELAWARE (State or Other Jurisdiction of Incorporation or Organization) |
51-0374887 (I.R.S. Employer Identification No.) |
|
| 15501 NORTH DIAL BOULEVARD SCOTTSDALE, ARIZONA (Address of Principal Executive Offices) |
85260-1619 (Zip Code) |
Registrant’s Telephone Number, Including Area Code (480) 754-3425
ITEM 5. OTHER EVENTS
On August 28, 2001 Dial sold all of the stock of its wholly-owned subsidiary, Sarah Michaels Inc., and inventory, other operating, intellectual property and other intangible assets associated with its Specialty Personal Care business. The SPC business included the businesses conducted under the Sarah Michaels and Freeman trademarks.
Dial retained all accounts receivable and accounts payable relating to the Specialty Personal Care business generated prior to August 28, 2001.
The accompanying financial statements have been prepared to reflect the historical results of continuing operations as adjusted for the reclassification of the Specialty Personal Care business as discontinued operations.
| 2000 | ||||||||||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||||
Net
Sales |
346,282 | 388,570 | 385,624 | 401,798 | 1,522,274 | |||||||||||||||||
Costs and expenses: |
||||||||||||||||||||||
Cost of products sold |
173,142 | 193,426 | 197,472 | 207,154 | 771,194 | |||||||||||||||||
Asset writedowns and discontinued
product inventories as a result of
restructuring and special charges |
0 | 6,813 | 3,030 | 676 | 10,519 | |||||||||||||||||
Total
cost of products sold |
173,142 | 200,239 | 200,502 | 207,830 | 781,713 | |||||||||||||||||
Selling, general and administrative expenses |
128,502 | 153,952 | 158,127 | 162,945 | 603,526 | |||||||||||||||||
Special charges and other asset writedowns |
0 | 3,586 | 3,596 | 235 | 7,417 | |||||||||||||||||
Total costs and expenses |
301,644 | 357,777 | 362,225 | 371,010 | 1,392,656 | |||||||||||||||||
Operating income |
44,638 | 30,793 | 23,399 | 30,788 | 129,618 | |||||||||||||||||
Interest and other expenses |
(9,639 | ) | (12,322 | ) | (13,875 | ) | (14,470 | ) | (50,306 | ) | ||||||||||||
Net loss of joint ventures |
(721 | ) | (3,624 | ) | (13,635 | ) | (19,634 | ) | (37,614 | ) | ||||||||||||
Other
income-gain (loss) on special items |
0 | 6,662 | 4,583 | (2,002 | ) | 9,243 | ||||||||||||||||
Income
(loss) on continuing operations before income taxes |
34,278 | 21,509 | 472 | (5,318 | ) | 50,941 | ||||||||||||||||
Income
taxes (benefit) on continuing operations |
11,607 | 6,666 | 918 | (2,539 | ) | 16,652 | ||||||||||||||||
Net
income (loss) from continuing operations |
22,671 | 14,843 | (446 | ) | (2,779 | ) | 34,289 | |||||||||||||||
Discontinued operations |
||||||||||||||||||||||
Loss
from discontinued operations, net of tax |
(1,173 | ) | (13,714 | ) | (25,720 | ) | (4,690 | ) | (45,297 | ) | ||||||||||||
Net
income (loss) |
21,498 | 1,129 | (26,166 | ) | (7,469 | ) | (11,008 | ) | ||||||||||||||
Basic shares outstanding |
93,979 | 91,084 | 91,150 | 91,241 | 92,237 | |||||||||||||||||
Equivalent shares |
631 | 287 | 0 | 0 | 0 | |||||||||||||||||
Diluted shares outstanding |
94,610 | 91,371 | 91,150 | 91,241 | 92,237 | |||||||||||||||||
Basic
net income (loss) per common share: |
||||||||||||||||||||||
Income
(loss) from continuing operations |
$ | 0.24 | $ | 0.16 | $ | 0.00 | $ | (0.03 | ) | $ | 0.37 | |||||||||||
Income
(loss) from discontinued operations |
(0.01 | ) | (0.15 | ) | (0.28 | ) | (0.05 | ) | (0.49 | ) | ||||||||||||
Basic
net income (loss) per common share |
$ | 0.23 | $ | 0.01 | $ | (0.29 | ) | $ | (0.08 | ) | $ | (0.12 | ) | |||||||||
Diluted
net income (loss) per common share: |
||||||||||||||||||||||
Income
(loss) from continuing operations |
$ | 0.24 | $ | 0.16 | $ | 0.00 | $ | (0.03 | ) | $ | 0.37 | |||||||||||
Income
(loss) from discontinued operations |
(0.01 | ) | (0.15 | ) | (0.28 | ) | (0.05 | ) | (0.49 | ) | ||||||||||||
Diluted
net income (loss) per common share |
$ | 0.23 | $ | 0.01 | $ | (0.29 | ) | $ | (0.08 | ) | $ | (0.12 | ) | |||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| 2001 | |||||||||||||
| First Quarter | Second Quarter | Six Months | |||||||||||
Net
sales |
389,671 | 416,602 | 806,273 | ||||||||||
Costs and expenses: |
|||||||||||||
Cost of products sold |
198,465 | 209,815 | 408,280 | ||||||||||
Selling, general and administrative expenses |
156,624 | 170,081 | 326,705 | ||||||||||
Total costs and expenses |
355,089 | 379,896 | 734,985 | ||||||||||
Operating income |
34,582 | 36,706 | 71,288 | ||||||||||
Interest and other expenses |
(13,872 | ) | (12,023 | ) | (25,895 | ) | |||||||
Net earnings of joint ventures |
1,999 | 4 | 2,003 | ||||||||||
Income
on continuing operations before income taxes |
22,709 | 24,687 | 47,396 | ||||||||||
Income
taxes on continuing operations |
8,014 | 8,728 | 16,742 | ||||||||||
Net income from continuing operations |
14,695 | 15,959 | 30,654 | ||||||||||
Discontinued operations |
|||||||||||||
Loss
from discontinued operations, net of tax |
(1,597 | ) | (1,218 | ) | (2,815 | ) | |||||||
Net income |
13,098 | 14,741 | 27,839 | ||||||||||
Basic shares outstanding |
91,291 | 91,368 | 91,326 | ||||||||||
Equivalent shares |
294 | 442 | 299 | ||||||||||
Diluted shares outstanding |
91,585 | 91,810 | 91,625 | ||||||||||
Basic
net income (loss) per common share: |
|||||||||||||
Income
(loss) from continuing operations |
$ | 0.16 | $ | 0.17 | $ | 0.34 | |||||||
Income
(loss) from discontinued operations |
(0.02 | ) | (0.01 | ) | (0.03 | ) | |||||||
Basic
net income (loss) per common share |
$ | 0.14 | $ | 0.16 | $ | 0.30 | |||||||
Diluted
net income (loss) per common share: |
|||||||||||||
Income
(loss) from continuing operations |
$ | 0.16 | $ | 0.17 | $ | 0.33 | |||||||
Income
(loss) from discontinued operations |
(0.02 | ) | (0.01 | ) | (0.03 | ) | |||||||
Diluted
net income (loss) per common share |
$ | 0.14 | $ | 0.16 | $ | 0.30 | |||||||
On October 10, 2001, Dial issued a press release relating to its better than expected results from continuing operations in the third quarter and the special charges it took in the third quarter. A copy of this press release is attached as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
The following exhibit is filed herewith. The exhibit number corresponds with Item 601(b) of Regulation S-K.
| Exhibit No. | Description | |
| 99 | Press Release dated October 10, 2001 |
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 10, 2001
Executive Vice President and Chief Financial Officer
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99 | Press Release dated October 10, 2001 |