SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1995
-------------------
Commission File Number 1-1031
------
RONSON CORPORATION
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
New Jersey 22-0743290
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Corporate Park III-Campus Drive, P.O. Box 6707, Somerset, NJ 08875
------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(908) 469-8300
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [ X ] No [ ]
As of September 30, 1995, there were 1,732,874 shares of the Registrant's common
stock outstanding.
<PAGE>
RONSON CORPORATION
FORM 10-Q INDEX
PART I - FINANCIAL INFORMATION:
CONSOLIDATED BALANCE SHEETS:
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
CONSOLIDATED STATEMENTS OF EARNINGS:
QUARTER ENDED SEPTEMBER 30, 1995 AND 1994
NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
CONSOLIDATED STATEMENTS OF CASH FLOWS:
NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
PART II - OTHER INFORMATION:
ITEM 1 - LEGAL PROCEEDINGS
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------
(in thousands of dollars)
September 30, December 31,
1995 1994
(unaudited)
------------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash ................................................. $ 103 $ 186
Accounts receivable - net ............................ 1,931 1,697
Inventories:
Finished goods ..................................... 4,340 4,650
Work in process .................................... 159 76
Raw materials ...................................... 757 772
-------- --------
5,256 5,498
Other current assets ................................. 596 690
Current assets of discontinued operations ............ 336 97
-------- --------
TOTAL CURRENT ASSETS ........................... 8,222 8,168
-------- --------
Property, plant and equipment, at cost:
Land ............................................... 19 19
Buildings and improvements ......................... 3,456 3,360
Machinery and equipment ............................ 3,001 2,902
Construction in progress ........................... 30 5
-------- --------
6,506 6,286
Less accumulated depreciation and amortization ....... 4,311 4,049
-------- --------
2,195 2,237
Intangible pension assets ............................ 416 463
Other assets ......................................... 974 588
Other assets of discontinued operations .............. 431 431
-------- --------
$ 12,238 $ 11,887
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
----------------------------------------------------
(in thousands of dollars)
September 30, December 31,
1995 1994
(unaudited)
------------- ------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt ...................................... $ 3,239 $ 2,750
Current portion of long-term debt .................... 183 553
Current portion of lease obligations ................. 41 58
Current portion of pension obligations ............... 1,451 1,913
Accounts payable ..................................... 1,437 1,693
Accrued expenses ..................................... 1,727 2,044
Current liabilities of discontinued operations ....... 324 584
-------- --------
TOTAL CURRENT LIABILITIES ...................... 8,402 9,595
-------- --------
Long-term debt ....................................... 494 --
Pension obligations .................................. 238 559
Other long-term liabilities .......................... 331 461
Long-term liabilities of discontinued operations ..... 95 101
STOCKHOLDERS' EQUITY:
Preferred stock ...................................... 9 9
Common stock ......................................... 1,795 1,768
Additional paid-in capital ........................... 30,333 30,329
Accumulated deficit .................................. (26,376) (27,721)
Unrecognized net loss on pension plans ............... (1,480) (1,595)
Cumulative foreign currency translation adjustment ... (10) (26)
-------- --------
4,271 2,764
Less cost of treasury shares ......................... 1,593 1,593
-------- --------
2,678 1,171
-------- --------
$ 12,238 $ 11,887
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
----------------------------------------------------------- -
(in thousands of dollars except per share data) (unaudited)
Quarter Ended
September 30,
----------------------
1995 1994
------- -------
<S> <C> <C>
NET SALES ........................................ $ 7,181 $ 7,629
------- -------
Cost and expenses:
Cost of sales .................................. 4,951 5,339
Selling, shipping and advertising .............. 772 848
General and administrative ..................... 749 922
Depreciation and amortization .................. 86 82
------- -------
6,558 7,191
------- -------
EARNINGS FROM OPERATIONS ......................... 623 438
------- -------
Other income (expense):
Interest expense ............................... (137) (74)
Other-net ...................................... (71) (45)
------- -------
(208) (119)
------- -------
EARNINGS BEFORE INCOME TAXES ..................... 415 319
Income tax benefit-net ........................... 93 --
------- -------
NET EARNINGS ..................................... $ 508 $ 319
======= =======
NET EARNINGS PER COMMON SHARE:
Assuming no dilution ........................... $ 0.27 $ 0.16
======= =======
Assuming full dilution ......................... $ 0.20 $ 0.12
======= =======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
-------------------------------------------------------------
(in thousands of dollars except per share data) (unaudited)
Nine Months Ended
September 30,
------------------------
1995 1994
-------- --------
<S> <C> <C>
NET SALES ...................................... $ 21,329 $ 19,571
-------- --------
Cost and expenses:
Cost of sales ................................ 14,619 13,466
Selling, shipping and advertising ............ 2,562 2,315
General and administrative ................... 2,412 2,455
Depreciation and amortization ................ 258 248
-------- --------
19,851 18,484
-------- --------
EARNINGS FROM OPERATIONS ....................... 1,478 1,087
-------- --------
Other income (expense):
Interest expense ............................. (368) (216)
Other-net .................................... 24 (118)
-------- --------
(344) (334)
-------- --------
EARNINGS BEFORE INCOME TAXES ................... 1,134 753
Income tax benefit-net ......................... 211 --
-------- --------
NET EARNINGS ................................... $ 1,345 $ 753
======== ========
NET EARNINGS PER COMMON SHARE:
Assuming no dilution ......................... $ 0.71 $ 0.36
======== ========
Assuming full dilution ....................... $ 0.52 $ 0.29
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
------------------------------------------------
(in thousands of dollars) (unaudited)
Nine Months Ended
September 30,
---------------------
1995 1994
-------- --------
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings ......................................... $ 1,345 $ 753
Adjustments to reconcile net earnings to net cash
used in operating activities:
Depreciation and amortization ..................... 258 248
Gain on sale of property, plant & equipment ....... (6) --
Deferred income tax benefit ....................... (282) --
Increase (decrease) in cash from changes in:
Accounts receivable ............................ (234) (428)
Inventories .................................... 242 (1,176)
Other current assets ........................... (145) (70)
Accounts payable ............................... (273) 396
Accrued expenses ............................... (560) (7)
Net change in pension-related accounts ............ (621) 228
Other ............................................. (73) (107)
-------- --------
Net cash used in operating activities .......... (349) (163)
-------- --------
Cash Flows from Investing Activities:
Sale of property, plant and equipment ................ 6 --
Capital expenditures ................................. (217) (324)
-------- --------
Net cash used in investing activities .......... (211) (324)
-------- --------
Cash Flows from Financing Activities:
Exercise of stock options ............................ 31 --
Proceeds from short-term debt ........................ 6,533 940
Proceeds from long-term debt ......................... 225 --
Payments of dividends on preferred stock ............. -- (92)
Payments of short-term debt .......................... (6,161) (704)
Payments of long-term debt ........................... (101) (64)
Payments of long-term lease obligations .............. (50) (41)
-------- --------
Net cash provided by financing activities ...... 477 39
-------- --------
Net decrease in cash .............................. (83) (448)
Cash at beginning of period ....................... 186 607
-------- --------
Cash at end of period ............................. $ 103 $ 159
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER AND NINE MONTHS ENDED
SEPTEMBER 30, 1995 (unaudited)
Note 1: ACCOUNTING POLICIES
Basis of Financial Statement Presentation - The information as of and
for the three-month and nine-month periods ended September 30, 1995 and 1994 is
unaudited. In the opinion of management, all adjustments necessary for a fair
presentation of the results of such interim periods have been included.
Per Common Share Data - Earnings per common share, assuming no dilution,
was computed by dividing earnings less cumulative preferred dividends by the
weighted average number of common shares outstanding.
Earnings per common share, assuming full dilution, was computed by
dividing earnings by the weighted average number of common shares outstanding
plus the assumed conversion of the preferred shares to common shares.
The weighted average number of common shares used for these computations
was as follows:
<TABLE>
<CAPTION>
Quarter Ended
September 30,
1995 1994
--------- ---------
<S> <C> <C>
Assuming no dilution................ 1,719,406 1,698,762
Assuming full dilution.............. 2,592,673 2,576,174
<CAPTION>
Nine Months Ended
September 30,
1995 1994
--------- ---------
<S> <C> <C>
Assuming no dilution................ 1,711,051 1,698,765
Assuming full dilution.............. 2,584,318 2,576,177
</TABLE>
Discontinued Operations - On October 6, 1993, the Registrant, Ronson
Corporation (the "Company"), sold the assets and business of Ronson Hydraulic
Units Corporation ("Ronson Hydraulics"). As a result, the operations of Ronson
Hydraulics have been classified as discontinued operations in the accompanying
Consolidated Statements of Earnings and other related operating statement data.
Ronson Metals Corporation ("Ronson Metals") is also being accounted for as a
discontinued operation and, accordingly, its operating results are reported in
this manner in all periods presented in the accompanying Consolidated Statements
of Earnings and other related operating statement data.
This quarterly report should be read in conjunction with the Company's
Annual Report on Form 10-K.
<PAGE>
Note 2: SHORT-TERM DEBT
On January 11, 1995, Ronson Consumer Products Corporation ("RCPC")
entered into an agreement with United Jersey Bank ("UJB") for a Revolving Loan
and a Term Loan (refer to Note 3 below). The Revolving Loan provides a line of
credit of up to $2,000,000 to RCPC, which expires on January 11, 1997. The
balance available under the Revolving Loan is determined by the level of
accounts receivable and inventory of RCPC. The loan bears interest at the rate
of 2% above UJB's prime rate (8.75% at September 30, 1995). The Revolving Loan
and Term Loan are secured by the accounts receivable, inventory and machinery
and equipment of RCPC, a mortgage on the land, buildings and improvements of
RCPC and the guarantees of the Company and Ronson Corporation of Canada, Ltd.
The UJB agreement also has restrictive covenants which, among other things,
limit the transfer of assets between the Company and its subsidiaries. At
September 30, 1995, the amount of the Revolving Loan was $1,020,000.
Note 3: LONG-TERM DEBT
The Term Loan from UJB to RCPC of $194,000 at September 30, 1995 is
payable in monthly installments of $6,250 plus interest through April 1, 1998.
The Term Loan bears interest at the rate of 2% above UJB's prime rate.
On June 26, 1995, Ronson Aviation, Inc. ("Ronson Aviation") and the Bank
of New York, National Community Division ("BONY/NCD") agreed to extend the
mortgage loan of $483,000 at September 30, 1995, which had been due to be repaid
on June 30, 1995, to January 31, 1997. The extended mortgage is now payable in
monthly installments of $9,000 plus interest.
Note 4: CONTINGENCIES
On December 30, 1994, the Company agreed to a settlement with the United
States Department of Labor ("DOL") and on February 3, 1995, the Company agreed
to a settlement with an appellate office of the Internal Revenue Service
("IRS"), which was accepted on behalf of the Commissioner of the IRS on March 7,
1995, related to the 1991 contribution by the Company of unencumbered land, not
used in operations, to the Ronson Corporation Retirement Plan ("Retirement
Plan"). The settlements with the DOL and IRS settled all matters arising from
the IRS examination of the information return, Form 5500, of the Retirement Plan
for the years ended June 30, 1991 and June 30, 1992, including the proposed
assessments pertaining to such years. As described more fully below, there
remains an additional contingent liability at September 30, 1995 of
approximately $210,000.
Under the terms of the settlements with the IRS and DOL, the land
contributed in 1991 will remain in the Retirement Plan. A consent judgment with
the DOL in the amount of $855,194 was entered against the Company, with simple
interest at the rate of 4.72% per year, compounded annually, on December 30,
1994. Payment of the judgment amount is stayed, and no collection action will be
taken unless the Company fails to make required payments to an escrow account.
Further, the amount of the judgment will be satisfied in whole, or in part, by
the proceeds from the future sale of the land by the Retirement Plan. At
December 31, 1994, the appraised value of the land was about $675,000, compared
to the amount of the judgment, including interest, of approximately $885,000 at
September 30, 1995, for a net contingent liability of the Company of
approximately $210,000.
<PAGE>
The Company is involved in various lawsuits. Management believes that
the outcome of these lawsuits will not have a material adverse effect on the
Company's financial position.
Largely as the result of increased cost of product liability insurance,
the Company has secured substantially smaller amounts of liability insurance
than it had purchased prior to 1987. While the Company has never settled or been
liable for claims for amounts in excess of the reduced level of coverage now
available, the present level of insurance represents a potential exposure for
the Company.
Note 5. STATEMENTS OF CASH FLOWS
Certificates of deposit that have a maturity of three months or more are
not considered cash equivalents for purposes of the accompanying consolidated
statements of cash flows.
Supplemental disclosures of cash flow information (in thousands):
<TABLE>
<CAPTION>
Nine Months Ended September 30,
1995 1994
---- ----
<S> <C> <C>
Cash Payments for:
Interest $353 $196
Income taxes -- 94
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RESULTS OF OPERATIONS
Third Quarter 1995 compared to Third Quarter 1994 and Nine Months 1995
compared to Nine Months 1994.
The Registrant, Ronson Corporation ("the Company"), had Net Earnings in
the third quarter of 1995 of $508,000 compared to Net Earnings in the third
quarter of 1994 of $319,000, an increase of 59%. The Company's Net Earnings in
the nine months of 1995 increased to $1,345,000 from $753,000 in the nine months
of 1994, an increase of 79%.
The Company's Consolidated Net Sales were $7,181,000 in the third
quarter of 1995 as compared to $7,629,000 in the third quarter of 1994. The
Company's Net Sales increased to $21,329,000 in the nine months of 1995 from
$19,571,000 in the nine months of 1994, an increase of 9%. Net Sales of consumer
products at Ronson Consumer Products Corporation ("RCPC"), Woodbridge, New
Jersey, and Ronson Corporation of Canada, Ltd., Mississauga, Ontario, (together
"Ronson Consumer Products") increased by 12% in the third quarter of 1995 as
compared to the third quarter of 1994. Net Sales at Ronson Consumer Products
increased by 17% in the nine months of 1995 as compared to the nine months of
1994. The increased sales at Ronson Consumer Products in the 1995 periods were
primarily due to increased shipments of lighter and accessory products. Net
Sales at Ronson Aviation, Inc. ("Ronson Aviation"), Trenton, New Jersey, were
20% lower in the third quarter of 1995 compared to the third quarter of 1994
primarily due to lower aircraft sales; however, the Net Sales at Ronson Aviation
increased by 1% in the nine months of 1995 as compared to the nine months of
1994.
Cost of Sales, as a percentage of Net Sales, was reduced to 69% in the
third quarter of 1995 from 70% in the third quarter of 1994 and was unchanged at
69% in the nine months of 1995 as compared to the nine months of 1994.
Selling, Shipping and Advertising Expenses, as a percentage of Net
Sales, were unchanged at 11% in the third quarter of 1995 compared to the third
quarter of 1994. The Selling, Shipping and Advertising Expenses, as a percentage
of Net Sales, was also unchanged at 12% in the nine months of 1995 compared to
the nine months of 1994.
General and Administrative Expenses, as a percentage of Net Sales, were
lower at 10% and 11% in the third quarter and nine months of 1995, respectively,
as compared to 12% and 13% in the third quarter and nine months of 1994,
respectively.
Interest Expense increased to $137,000 in the third quarter of 1995 from
$74,000 in the third quarter of 1994 and increased to $368,000 in the nine
months of 1995 from $216,000 in the nine months of 1994. The increases in
Interest Expense in 1995 were primarily due to the additional short-term debt
from the new line of credit agreement between RCPC and United Jersey Bank
("UJB") in January 1995 and to increased short-term debt financing related to
increased average inventory of aircraft at Ronson Aviation.
Other Income (Expense)-Net in the nine months of 1995 included a gain of
approximately $96,000 from insurance proceeds and also included approximately
$38,000 of royalty income related to the final settlement of certain overseas
trademark rights.
<PAGE>
The Income Tax Benefit in the third quarter and nine months of 1995
included tax benefits of $121,000 and $282,000, respectively, as the result of
the recognition of deferred tax assets. This tax benefit was partially offset by
provisions for state income taxes of $28,000 and $71,000 in the third quarter
and nine months of 1995, respectively.
FINANCIAL CONDITION
The Company's Stockholders' Equity improved to $2,678,000 at September
30, 1995 from $1,171,000 at December 31, 1994. The improvement of $1,507,000 in
1995 Stockholders' Equity was primarily due to the Net Earnings in the nine
months of 1995. At September 30, 1995, the Company's working capital deficiency
was reduced to $180,000 as compared to $1,427,000 at December 31, 1994. The
decrease in the deficiency in working capital was primarily due to the Net
Earnings of $1,345,000 in the nine months of 1995 which was partially offset by
the change in classification of pension obligations from long-term liabilities
to current liabilities.
On January 11, 1995, RCPC entered into an agreement with UJB for a
Revolving Loan and a Term Loan. The Revolving Loan provides a line of credit up
to $2,000,000 to RCPC based on accounts receivable and inventory. The balance
available under the Revolving Loan is determined by the level of receivables and
inventory. The Term Loan of $194,000 at September 30, 1995, is payable in equal
installments of $6,250 plus interest and is based on the value of the machinery
and equipment of RCPC. The loans bear interest at the rate of 2% above UJB's
prime rate. The Revolving Loan and Term Loan are secured by the accounts
receivable, inventory and machinery and equipment of RCPC, a mortgage on the
land, buildings and improvements of RCPC and the guarantees of the Company and
Ronson Corporation of Canada, Ltd. The UJB agreement also has restrictive
covenants which, among other things, limit the transfer of assets between the
Company and its subsidiaries. The short-term debt of $332,000 at December 31,
1994 of RCPC to United Credit Corporation was repaid in full out of the proceeds
of the UJB loans to RCPC. Also out of the proceeds from the financing, the
Company contributed approximately $850,000 to the Ronson Corporation Retirement
Plan to meet substantially all of the required minimum funding of the Ronson
Corporation Retirement Plan for 1995.
On June 26, 1995, the Company, Ronson Aviation and the Bank of New York,
National Community Division ("BONY/NCD") completed an agreement to extend the
due date of the mortgage loan from BONY/NCD to Ronson Aviation to January 31,
1997. The loan had been due to expire on June 30, 1995. Under the agreement, the
mortgage loan in the amount of $483,000 at September 30, 1995 is payable in
monthly installments of $9,000 plus interest with a final payment of $339,000 on
January 31, 1997. The agreement also provides for an extension to December 31,
1995 of the line of credit to Ronson Aviation for aircraft inventory, limited to
those aircraft currently financed.
The Company has continued to meet its obligations as they have matured
and management believes that the Company will continue to meet its obligations
through internally generated funds from future net earnings and depreciation,
established external financing arrangements, potential additional sources of
financing and existing cash balances.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS.
On August 31, 1995, the Company received a General Notice Letter from
the United States Environmental Protection Agency ("USEPA") notifying the
Company that the USEPA considered the Company one of approximately four thousand
Potentially Responsible Parties ("PRP's") regarding waste disposed of prior to
1980 at a landfill in Monterey Park, California, which has been designated by
the USEPA as a Superfund site. The USEPA has identified manifests from 1974
through 1979 for waste delivered to the Superfund site which had originated at
the location of the Company's former Duarte, California, hydraulic subsidiary,
sold by the Company in 1981 to the Boeing Corporation. On September 29, 1995,
the Company received notice that the USEPA's original quantification of the
amounts of waste attributed to the Duarte facility had been reduced and that
Ronson Hydraulic Units Corporation, Duarte, California, has now been determined
by USEPA to be a "de minimis" PRP. The Company's counsel has informed the
Company that good factual arguments are available to further reduce the amount
of waste attributed to the facility and that legal arguments also exist that the
subsequent owners after the 1981 sale of the facility should be required to pay
a significant portion, or possibly all, of any "de minimis" amounts finally
determined to be due by the USEPA from the Company or the subsequent owners of
the facility. The Company's final contribution amount, if any, is not yet
determinable. Based on the above, management believes that the cost, if any,
will not have a material effect on the Company's financial position.
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(11) Statement re computation of per share earnings is attached
hereto as Exhibit 11.
(b) Reports on Form 8-K
On July 31, 1995, the Company filed a report on Form 8-K
with the Securities and Exchange Commission providing information in
response to Item 5 of such report. No financial statements were included
in this report.
<PAGE>
SIGNATURES
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.
RONSON CORPORATION
Date: November 13, 1995 /s/Louis V. Aronson II
---------------------------------------
Louis V. Aronson II, President
and Chief Executive Officer
(Signing as Duly Authorized
Officer of the Registrant)
Date: November 13, 1995 /s/Daryl K. Holcomb
---------------------------------------
Daryl K. Holcomb
Chief Financial Officer,
Controller and Treasurer
(Signing as Chief Financial
Officer of the Registrant)
RONSON CORPORATION Exhibit 11
CALCULATION OF EARNINGS PER COMMON SHARE
(Dollars in thousands, except per common share data) (unaudited)
<TABLE>
<CAPTION>
Quarter Ended
September 30,
---------------------------
1995 1994
----------- -----------
<S> <C> <C>
Assuming No Dilution
- --------------------
Net Earnings ................................ $ 508 $ 319
Less Cumulative Preferred Dividends ......... (46) (46)
----------- -----------
Net Earnings Applicable to Common Stock ..... $ 462 $ 273
=========== ===========
Weighted average number of common shares
outstanding (1) .......................... 1,719,406 1,698,762
----------- -----------
Net Earnings per Common Share ............... $ 0.27 $ 0.16
=========== ===========
Assuming Full Dilution
- ----------------------
Net Earnings ................................ $ 508 $ 319
=========== ===========
Weighted average number of common shares
outstanding (1) .......................... 1,719,406 1,698,762
Additional common shares outstanding
resulting from assumed conversion of
preferred stock to common stock .......... 873,267 877,412
----------- -----------
Total ....................................... 2,592,673 2,576,174
=========== ===========
Net Earnings per Common Share ............... $ 0.20 $ 0.12
=========== ===========
</TABLE>
(1) The dilution of the outstanding stock options was less than 3% in the third
quarter of 1995 and, therefore, the stock options were not included as
common stock equivalents for that period. The exercise prices of outstanding
stock options exceeded the market prices in the third quarter of 1994 and,
therefore, the stock options were anti-dilutive and not included as common
stock equivalents for the third quarter of 1994.
<PAGE>
RONSON CORPORATION Exhibit 11
CALCULATION OF EARNINGS PER COMMON SHARE
(Dollars in thousands, except per common share data) (unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
---------------------------
1995 1994
----------- ------------
<S> <C> <C>
Assuming No Dilution
- --------------------
Net Earnings ................................ $ 1,345 $ 753
Less Cumulative Preferred Dividends ......... (138) (138)
----------- -----------
Net Earnings from Continuing Operations
Applicable to Common Stock ............... $ 1,207 $ 615
=========== ===========
Weighted average number of common shares
outstanding (1) .......................... 1,711,051 1,698,765
----------- -----------
Net Earnings per Common Share ............... $ 0.71 $ 0.36
=========== ===========
Assuming Full Dilution
- ----------------------
Net Earnings ................................ $ 1,345 $ 753
=========== ===========
Weighted average number of common shares
outstanding (1) .......................... 1,711,051 1,698,765
Additional common shares outstanding
resulting from assumed conversion of
preferred stock to common stock .......... 873,267 877,412
----------- -----------
Total ....................................... 2,584,318 2,576,177
=========== ===========
Net Earnings per Common Share ............... $ 0.52 $ 0.29
=========== ===========
</TABLE>
(1) The dilution of the outstanding stock options was less than 3% in the nine
months of 1995 and, therefore, the stock options were not included as common
stock equivalents for that period. The exercise prices of outstanding stock
options exceeded the market prices in the nine months of 1994 and,
therefore, the stock options were anti- dilutive and not included as common
stock equivalents for the nine months of 1994.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 103
<SECURITIES> 0
<RECEIVABLES> 2,012
<ALLOWANCES> 81
<INVENTORY> 5,256
<CURRENT-ASSETS> 8,222
<PP&E> 6,506
<DEPRECIATION> 4,311
<TOTAL-ASSETS> 12,238
<CURRENT-LIABILITIES> 8,402
<BONDS> 764
<COMMON> 1,795
0
9
<OTHER-SE> 874
<TOTAL-LIABILITY-AND-EQUITY> 12,238
<SALES> 21,329
<TOTAL-REVENUES> 21,329
<CGS> 14,619
<TOTAL-COSTS> 14,619
<OTHER-EXPENSES> 5,232
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<INCOME-TAX> (211)
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</TABLE>
