FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or
15(d)
of the Securities Exchange Act of 1934
Date of Report: January 24, 2002
THE DIAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
| DELAWARE (State or Other Jurisdiction of Incorporation or Organization) 15501 NORTH DIAL BOULEVARD SCOTTSDALE, ARIZONA (Address of Principal Executive Offices) |
51-0374887 (I.R.S. Employer Identification No.) 85260-1619 (Zip Code) |
Registrant's Telephone Number, Including Area Code (480) 754-3425
Item 5. Other Events.
On January 24, 2002, Dial issued a press release relating to its fourth quarter and full year 2001 earnings and outlook for 2002. A copy of the press release is attached as Exhibit 99.
The condensed balance sheet as of December 31, 2001, which was attached to the press release, did not reflect the tax effect of the pension alternative minimum liability that was recorded as a direct charge to equity. As a result, non-current assets and stockholders’ equity have each been increased $7.4 million from the amounts previously shown in the December 31, 2001 condensed balance sheet. This change had no effect on earnings or cash flows.
Effective January 1, 2002, the Company has adopted EITF 00-14, “Accounting for Certain Sales Incentives” and EITF 00-25, “Vendor Income Statement Characterization of Consideration Paid to a Reseller of the Vendor’s Products”. These issues require us to reclassify certain marketing expenses as a reduction of sales. The accompanying financial statements have been prepared to reflect the historical results of continuing operations as adjusted for both the reclassification of these marketing expenses as a reduction of sales as well as the reclassification of the Specialty Personal Care business as discontinued operations. These financial statements also include a reconciliation of reported net income (loss) to net income excluding one-time charges and gains.
THE DIAL CORPORATION
Statement of Consolidated Operations
| 2000 | |||||||||||||||||||||
| First | Second | Third | Fourth | Full | |||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||||||
Net sales |
$ | 265,191 | $ | 293,579 | $ | 288,687 | $ | 303,936 | $ | 1,151,393 | |||||||||||
Costs and expenses: |
|||||||||||||||||||||
Cost of products sold |
174,729 | 195,739 | 200,937 | 209,055 | 780,460 | ||||||||||||||||
Asset writedowns and discontinued product inventories
as a result of restructuring and special charges |
— | 6,813 | 3,030 | 676 | 10,519 | ||||||||||||||||
Total cost of products sold |
174,729 | 202,552 | 203,967 | 209,731 | 790,979 | ||||||||||||||||
Selling, general and administrative expenses |
45,824 | 56,648 | 57,725 | 63,182 | 223,379 | ||||||||||||||||
Restructuring and special charges and other asset writedowns |
— | 3,586 | 3,596 | 235 | 7,417 | ||||||||||||||||
Total costs and expenses |
220,553 | 262,786 | 265,288 | 273,148 | 1,021,775 | ||||||||||||||||
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 income (loss) of joint ventures |
(721 | ) | (3,624 | ) | (13,635 | ) | (19,634 | ) | (37,614 | ) | |||||||||||
Other income (expense) — gain (loss) on special items |
— | 6,662 | 4,583 | (2,002 | ) | 9,243 | |||||||||||||||
Income (loss) from continuing operations before income taxes |
34,278 | 21,509 | 472 | (5,318 | ) | 50,941 | |||||||||||||||
Income taxes (benefit) |
11,607 | 6,666 | 918 | (2,539 | ) | 16,652 | |||||||||||||||
Income (loss) from continuing operations |
22,671 | 14,843 | (446 | ) | (2,779 | ) | 34,289 | ||||||||||||||
Discontinued operation: |
|||||||||||||||||||||
Loss from discontinued Specialty Personal Care
segment, net of income tax |
(1,173 | ) | (13,714 | ) | (25,720 | ) | (4,690 | ) | (45,297 | ) | |||||||||||
Loss on disposal of discontinued Specialty Personal
Care segment, net of income tax |
— | — | — | — | — | ||||||||||||||||
Net Income (Loss) |
$ | 21,498 | $ | 1,129 | $ | (26,166 | ) | $ | (7,469 | ) | $ | (11,008 | ) | ||||||||
Weighted average basic shares outstanding |
93,979 | 91,084 | 91,150 | 91,241 | 92,237 | ||||||||||||||||
Weighted average equivalent shares |
631 | 287 | — | — | — | ||||||||||||||||
Weighted average 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 | |||||||||
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 | |||||||||
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 | ) | ||||||||
Reconciliation of reported net income (loss) to net
income excluding one-time items
Net income (loss) as reported |
$ | 21,498 | $ | 1,129 | $ | (26,166 | ) | $ | (7,469 | ) | $ | (11,008 | ) | ||||||||
Add back one-time items, net of tax: |
|||||||||||||||||||||
Restructuring (gain) charges |
0 | 7,078 | 12,697 | 14,288 | 34,063 | ||||||||||||||||
Special charge (gain) |
0 | (5,396 | ) | (3,002 | ) | 1,206 | (7,192 | ) | |||||||||||||
Discontinued operation |
1,173 | 13,714 | 25,720 | 4,690 | 45,297 | ||||||||||||||||
Net income excluding one-time items |
$ | 22,671 | $ | 16,525 | $ | 9,249 | $ | 12,715 | $ | 61,160 | |||||||||||
Diluted net income per common share, excluding one-time items |
$ | 0.24 | $ | 0.18 | $ | 0.10 | $ | 0.14 | $ | 0.66 | |||||||||||
| 2001 | |||||||||||||||||||||
| First | Second | Third | Fourth | Full | |||||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Year | |||||||||||||||||
Net sales |
$ | 292,935 | $ | 315,656 | $ | 333,647 | $ | 327,936 | $ | 1,270,174 | |||||||||||
Costs and expenses: |
|||||||||||||||||||||
Cost of products sold |
199,989 | 213,179 | 214,236 | 209,400 | 836,804 | ||||||||||||||||
Asset writedowns and discontinued product inventories
as a result of restructuring and special charges |
— | — | 10,940 | (552 | ) | 10,388 | |||||||||||||||
Total cost of products sold |
199,989 | 213,179 | 225,176 | 208,848 | 847,192 | ||||||||||||||||
Selling, general and administrative expenses |
58,365 | 65,771 | 71,060 | 68,923 | 264,119 | ||||||||||||||||
Restructuring and special charges and other asset writedowns |
— | — | 486 | (156 | ) | 330 | |||||||||||||||
Total costs and expenses |
258,354 | 278,950 | 296,722 | 277,615 | 1,111,641 | ||||||||||||||||
Operating income |
34,581 | 36,706 | 36,925 | 50,321 | 158,533 | ||||||||||||||||
Interest and other expenses |
(13,872 | ) | (12,023 | ) | (11,934 | ) | (10,161 | ) | (47,990 | ) | |||||||||||
Net income (loss) of joint ventures |
2,000 | 4 | 986 | — | 2,990 | ||||||||||||||||
Other income (expense) — gain (loss) on special items |
— | — | — | — | — | ||||||||||||||||
Income (loss) from continuing operations before income taxes |
22,709 | 24,687 | 25,977 | 40,160 | 113,533 | ||||||||||||||||
Income taxes (benefit) |
8,013 | 8,728 | 12,114 | 14,835 | 43,690 | ||||||||||||||||
Income (loss) from continuing operations |
14,696 | 15,959 | 13,863 | 25,325 | 69,843 | ||||||||||||||||
Discontinued operation: |
|||||||||||||||||||||
Loss from discontinued Specialty Personal Care
segment, net of income tax |
(1,597 | ) | (1,218 | ) | (876 | ) | — | (3,691 | ) | ||||||||||||
Loss on disposal of discontinued Specialty Personal
Care segment, net of income tax |
— | — | (198,403 | ) | — | (198,403 | ) | ||||||||||||||
Net Income (Loss) |
$ | 13,099 | $ | 14,741 | $ | (185,416 | ) | $ | 25,325 | $ | (132,251 | ) | |||||||||
Weighted average basic shares outstanding |
91,291 | 91,368 | 91,494 | 91,647 | 91,451 | ||||||||||||||||
Weighted average equivalent shares |
294 | 442 | — | 1,526 | — | ||||||||||||||||
Weighted average diluted shares outstanding |
91,585 | 91,810 | 91,494 | 93,173 | 91,451 | ||||||||||||||||
Basic net income (loss) per common share: |
|||||||||||||||||||||
Income (loss) from continuing operations |
$ | 0.16 | $ | 0.17 | $ | 0.15 | $ | 0.28 | $ | 0.76 | |||||||||||
Loss from discontinued operations |
(0.02 | ) | (0.01 | ) | (2.18 | ) | — | (2.21 | ) | ||||||||||||
Basic net income (loss) per common share |
$ | 0.14 | $ | 0.16 | $ | (2.03 | ) | $ | 0.28 | $ | (1.45 | ) | |||||||||
Diluted net income (loss) per common share: |
|||||||||||||||||||||
Income (loss) from continuing operations |
$ | 0.16 | $ | 0.17 | $ | 0.15 | $ | 0.27 | $ | 0.76 | |||||||||||
Loss from discontinued operations |
(0.02 | ) | (0.01 | ) | (2.18 | ) | — | (2.21 | ) | ||||||||||||
Diluted net income (loss) per common share |
$ | 0.14 | $ | 0.16 | $ | (2.03 | ) | $ | 0.27 | $ | (1.45 | ) | |||||||||
Reconciliation of reported net income (loss) to net
income excluding one-time items
Net income (loss) as reported |
$ | 13,099 | $ | 14,741 | $ | (185,416 | ) | $ | 25,325 | $ | (132,251 | ) | |||||||||
Add back one-time items, net of tax: |
|||||||||||||||||||||
Restructuring (gain) charges |
0 | 0 | 10,008 | (464 | ) | 9,544 | |||||||||||||||
Special charge (gain) |
0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Discontinued operation |
1,597 | 1,218 | 199,279 | 0 | 202,094 | ||||||||||||||||
Net income excluding one-time items |
$ | 14,696 | $ | 15,959 | $ | 23,871 | $ | 24,861 | $ | 79,387 | |||||||||||
Diluted net income per common share, excluding one-time items |
$ | 0.16 | $ | 0.17 | $ | 0.26 | $ | 0.27 | $ | 0.86 | |||||||||||
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
January 29, 2002
/s/ Conrad A. Conrad
Executive Vice President and Chief Financial Officer
Exhibit Index
| Exhibit Number | Description | |
| 99 | Press Release dated January 24, 2002 |