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 June 30, 1996
---------------
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 June 30, 1996, there were 1,801,535 shares of the registrant's common
stock outstanding.
<PAGE>
RONSON CORPORATION
FORM 10-Q INDEX
PART I - FINANCIAL INFORMATION:
CONSOLIDATED BALANCE SHEETS:
JUNE 30, 1996 AND DECEMBER 31, 1995
CONSOLIDATED STATEMENTS OF EARNINGS:
QUARTER ENDED JUNE 30, 1996 AND 1995
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
CONSOLIDATED STATEMENTS OF CASH FLOWS:
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
PART II - OTHER INFORMATION:
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
<PAGE>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------- --------
ASSETS (unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash ................................................. $ 23 $ 64
Accounts receivable - net ............................ 2,868 1,940
Inventories:
Finished goods ..................................... 6,400 5,501
Work in process .................................... 68 177
Raw materials ...................................... 684 700
-------- --------
7,152 6,378
Other current assets ................................. 1,241 970
-------- --------
TOTAL CURRENT ASSETS ........................... 11,284 9,352
-------- --------
Property, plant and equipment, at cost:
Land ............................................... 19 19
Buildings and improvements ......................... 3,481 3,477
Machinery and equipment ............................ 3,318 2,995
Construction in progress ........................... 90 45
-------- --------
6,908 6,536
Less accumulated depreciation and amortization ....... 4,471 4,370
-------- --------
2,437 2,166
Intangible pension assets ............................ 387 419
Other assets ......................................... 745 764
Other assets of discontinued operations............... 702 702
-------- --------
$ 15,555 $ 13,403
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt ...................................... $ 5,478 $ 4,472
Current portion of long-term debt and leases ......... 600 251
Accounts payable ..................................... 2,064 1,428
Other current liabilities............................. 1,747 2,030
Current liabilities of discontinued operations........ 874 993
-------- --------
TOTAL CURRENT LIABILITIES ...................... 10,763 9,174
-------- --------
Long-term debt ....................................... 1,327 1,728
Pension obligations .................................. 262 287
Other long-term liabilities .......................... 370 180
<PAGE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
(continued)
June 30, December 31,
1996 1995
-------- --------
(unaudited)
<S> <C> <C>
STOCKHOLDERS' EQUITY:
Preferred stock ...................................... 8 8
Common stock ......................................... 1,864 1,821
Additional paid-in capital ........................... 30,345 30,308
Accumulated deficit .................................. (26,418) (27,081)
Unrecognized net loss on pension plans ............... (1,341) (1,403)
Cumulative foreign currency translation adjustment ... (32) (26)
-------- --------
4,426 3,627
Less cost of treasury shares ......................... 1,593 1,593
-------- --------
TOTAL STOCKHOLDERS' EQUITY ..................... 2,833 2,034
-------- --------
$ 15,555 $ 13,403
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of dollars, except per share data) (unaudited)
<TABLE>
<CAPTION>
Quarter Ended
June 30,
--------------------
1996 1995
------- -------
<S> <C> <C>
NET SALES ............................................ $ 6,919 $ 8,304
------- -------
Cost and expenses:
Cost of sales ...................................... 4,552 5,886
Selling, shipping and advertising .................. 861 932
General and administrative ......................... 845 844
Depreciation and amortization ...................... 91 85
------- -------
6,349 7,747
------- -------
EARNINGS FROM OPERATIONS ............................. 570 557
------- -------
Other income (expense):
Interest expense ................................... (196) (120)
Other-net .......................................... (27) 61
------- -------
(223) (59)
------- -------
EARNINGS BEFORE INCOME TAXES ......................... 347 498
Income tax benefits-net .............................. 83 112
------- -------
NET EARNINGS ......................................... $ 430 $ 610
======= =======
EARNINGS PER COMMON SHARE:
Assuming no dilution ............................... $ 0.22 $ 0.33
======= =======
Assuming full dilution ............................. $ 0.16 $ 0.24
======= =======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands of dollars, except per share data) (unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
------------------------
1996 1995
-------- --------
<S> <C> <C>
NET SALES ...................................... $ 12,682 $ 14,148
-------- --------
Cost and expenses:
Cost of sales ................................ 8,270 9,668
Selling, shipping and advertising ............ 1,673 1,790
General and administrative ................... 1,623 1,663
Depreciation and amortization ................ 182 172
-------- --------
11,748 13,293
-------- --------
EARNINGS FROM OPERATIONS ....................... 934 855
-------- --------
Other income (expense):
Interest expense ............................. (378) (231)
Other-net .................................... (55) 95
-------- --------
(433) (136)
-------- --------
EARNINGS BEFORE INCOME TAXES ................... 501 719
Income tax benefits-net ........................ 162 118
-------- --------
NET EARNINGS ................................... $ 663 $ 837
======== ========
EARNINGS PER COMMON SHARE:
Assuming no dilution ......................... $ 0.32 $ 0.44
======== ========
Assuming full dilution ....................... $ 0.25 $ 0.32
======== ========
</TABLE>
See notes to consolidated financial statements.
<PAGE>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars) (unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------------------
1996 1995
------- -------
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings ......................................... $ 663 $ 837
Adjustments to reconcile net earnings to net cash
used in operating activities:
Depreciation and amortization ..................... 182 172
Deferred income tax benefit ....................... (224) (161)
Increase (decrease) in cash from changes in:
Accounts receivable ............................ (928) (291)
Inventories .................................... (774) (848)
Other current assets ........................... (171) (28)
Accounts payable ............................... 636 (302)
Accrued expenses ............................... (293) (354)
Net change in pension-related accounts ............ (40) (695)
Other ............................................. (35) (42)
------- -------
Net cash used in operating activities .......... (984) (1,712)
------- -------
Cash Flows from Investing Activities:
Capital expenditures ................................. (124) (161)
------- -------
Cash Flows from Financing Activities:
Proceeds from short-term debt ........................ 1,677 6,098
Proceeds from long-term debt ......................... -- 225
Proceeds from exercise of stock options .............. 80 --
Payments of short-term debt .......................... (553) (4,319)
Payments of long-term debt ........................... (105) (55)
Payments of long-term lease obligations .............. (32) (35)
------- -------
Net cash provided by financing activities ...... 1,067 1,914
------- -------
Net increase (decrease) in cash ................... (41) 41
Cash at beginning of period ....................... 64 186
------- -------
Cash at end of period ............................. $ 23 $ 227
======= =======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 1996 (unaudited)
Note 1: ACCOUNTING POLICIES
Basis of Financial Statement Presentation - The information as of
and for the three-month and six-month periods ended June 30, 1996 and 1995
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 - Net earnings per common share, assuming no
dilution, was computed by dividing net earnings less cumulative preferred
dividends by the weighted average number of common shares outstanding.
Net earnings per common share, assuming full dilution, was
computed by dividing net 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:
Quarter Ended
June 30,
---------------
1996 1995
---- ----
Assuming no dilution 1,794,730 1,707,698
Assuming full dilution 2,632,845 2,580,965
Six Months Ended
June 30,
---------------
1996 1995
---- ----
Assuming no dilution 1,781,222 1,706,803
Assuming full dilution 2,621,348 2,580,070
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
In January 1995, Ronson Consumer Products Corporation ("RCPC")
entered into an agreement with United Jersey Bank ("UJB") for a Revolving
Loan and a Term Loan. The Revolving Loan provides a line of credit of up to
$2,000,000 to RCPC, which expires on January 11, 1997, based on accounts
receivable and inventory. The amount of the Revolving Loan outstanding at
June 30, 1996, was $1,332,000. The balance of the Term Loan was $138,000 at
June 30, 1996, and is to be repaid in monthly installments of $6,250 plus
interest through April 1, 1998. UJB has provided waivers of violations of
certain provisions of the loan agreements as of June 30, 1996, because the
Company and RCPC were in violation of those provisions of the loan
agreements, principally related to transfer of funds by the Company to
Ronson Metals and Ronson Aviation, Inc. ("Ronson Aviation").
Note 3: LONG-TERM DEBT
In accordance with the terms of the Ronson Aviation mortgage, in
the amount of $402,000 at June 30, 1996, with the Bank of New York, National
Community Division ("BONY/NCD"), the remaining mortgage balance is due to be
paid in January 1997, in the amount of $339,000.
Note 4: CONTINGENCIES
On December 30, 1994, the Company agreed to a settlement with the
United States Department of Labor ("DOL") and in March 1995, the Company
agreed to a settlement with the Internal Revenue Service ("IRS"), 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.
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, 1995, the appraised value of
the land was about $675,000, compared to the amount of the judgment,
including interest, of approximately $916,000 at June 30, 1996, for a net
contingent liability of the Company of approximately $241,000. In connection
with the settlements, the Company has established an escrow account, with
assets of about $50,000 at June 30, 1996. The funds in the escrow account
may be required to be deposited into the Retirement Plan should the proceeds
from the future sale of the North Carolina land by the Retirement Plan be
less than the amount of the judgment, including accrued interest.
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 about four thousand
Potentially Responsible Parties ("PRP's") for waste disposed of prior to
1980 at a landfill in Monterey Park, California, which the USEPA designated
<PAGE>
as a Superfund site ("Site"). The USEPA identified manifests dated from 1974
through 1979 which allegedly indicate that waste originating at the location
of the Company's former Duarte, California, hydraulic subsidiary was
delivered to the Site. The Company sold the Duarte, California, hydraulic
subsidiary to the Boeing Corporation in 1981.
As a result of successfully challenging the USEPA's original
volumetric allocation, in September 1995, the USEPA reduced the volume of
waste attributed to the Duarte facility, Ronson Hydraulic Units Corporation
("RHUCOR-CA"), and determined the volume to be "de minimis". In addition,
counsel for this matter has informed the Company that factual arguments are
available that could further reduce the amount of waste attributed to the
hydraulic subsidiary, and that arguments also exist that the subsequent
owners of the facility should be required to pay a significant portion, or
possibly all, of the costs the USEPA determines to be due as a result of
RHUCOR-CA's waste having been sent to the Site.
Although the Company's final contribution amount, if any, is not
yet determinable, in the General Notice Letter, the USEPA offered to
partially settle the matter if the Company paid $212,000, which would have
been full settlement of the Fifth Partial Consent Decree. This offer,
however, was made prior to the USEPA reduction of the volume of waste
allocated to RHUCOR-CA and prior to the USEPA determination that this
reduced waste volume is "de minimis". Because the USEPA has determined that
the volume of waste generated by the facility and sent to the Site is "de
minimis", and because the USEPA has sent a General Notice Letter to another
PRP for the same waste, the Company believes that the cost, if any, will not
have a material effect on the Company's financial position.
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):
Six Months Ended June 30,
-------------------------
1996 1995
---- ----
Cash Payments for:
Interest $362 $221
Income taxes 43 --
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
Second Quarter 1996 Compared to Second Quarter 1995 and First Half
1996 Compared to First Half 1995.
The Registrant, Ronson Corporation (the "Company"), had Earnings
from Operations in the first half of 1996 of $934,000, an increase of
$79,000 or 9%, from $855,000 in the first half of 1995. The Company's
Earnings from Operations increased in the second quarter of 1996 to $570,000
from $557,000 in the second quarter of 1995. The Company's Net Earnings were
$430,000 in the second quarter of 1996 and $663,000 in the first half of
1996. Net Earnings were $610,000 in the second quarter of 1995 and $837,000
in the first half of 1995, both of which included income of $96,000
resulting from the proceeds of an insurance claim.
The Company's Consolidated Net Sales were $6,919,000 in the second
quarter of 1996 as compared to $8,304,000 in the second quarter of 1995. The
Company's Net Sales were $12,682,000 in the first half of 1996 as compared
to $14,148,000 in the first half of 1995. Net Sales of consumer products at
Ronson Consumer Products Corporation ("RCPC"), Woodbridge, New Jersey, and
Ronson Corporation of Canada, Ltd. ("Ronson-Canada"), Mississauga, Ontario,
(together "Ronson Consumer Products") increased by 15% in the second quarter
of 1996 as compared to the second quarter of 1995. Net Sales at Ronson
Consumer Products increased by 12% in the first half of 1996 as compared to
the first half of 1995. The increases in Net Sales at Ronson Consumer
Products in the 1996 periods were primarily due to increased shipments of
lighter and accessory products. Net Sales at Ronson Aviation, Inc. ("Ronson
Aviation"), Trenton, New Jersey, decreased by 44% in the second quarter of
1996 compared to the second quarter of 1995 and decreased by 37% in the
first half of 1996 as compared to the first half of 1995. The decreases in
Net Sales at Ronson Aviation in the second quarter and first half of 1996
were primarily due to lower aircraft sales and to lower sales in the first
quarter of 1996 of general aviation services as a result of severe winter
weather.
Cost of Sales, as a percentage of Net Sales, was lower at 66% in
the second quarter of 1996 and 65% in the first half of 1996 compared to 71%
and 68% in the second quarter and first half of 1995, respectively. The
lower Consolidated Cost of Sales percentage was due to the Net Sales of
Ronson Consumer Products constituting a greater portion of the Consolidated
Net Sales of the Company in the second quarter and first half of 1996 as
compared to the second quarter and first half of 1995. This reduction was
partially offset by an increased Cost of Sales percentage at Ronson Consumer
Products. The Cost of Sales percentage at Ronson Consumer Products increased
to 53% in the second quarter and first half of 1996 as compared to 48% in
the second quarter of 1995 and 49% in the first half of 1995 primarily due
to a change in the mix of products. The Cost of Sales percentage at Ronson
Aviation decreased to 88% in the second quarter of 1996 as compared to 91%
in the second quarter of 1995 primarily due to a change in the mix of
products sold. The Cost of Sales percentage at Ronson Aviation was unchanged
at 91% in the first half of 1996 compared to the first half of 1995.
Selling, Shipping and Advertising Expenses, as a percentage of Net
Sales, increased to 12% in the second quarter of 1996 from 11% in the second
quarter of 1995. The Selling, Shipping and Advertising percentage was
unchanged at 13% in the first half of 1996 and the first half of 1995. The
<PAGE>
reduction in the percentage due to lower selling costs at Ronson Consumer
Products was offset by the effect on the percentage by the lower
Consolidated Net Sales.
Interest Expense increased to $196,000 in the second quarter of
1996 from $120,000 in the second quarter of 1995 and to $378,000 in the
first half of 1996 from $231,000 in the first half of 1995. These increases
were primarily due to the additional long-term debt from the new mortgage
loan between RCPC and United Jersey Bank ("UJB") dated December 1, 1995, and
to increased short-term debt at Ronson Aviation utilized to finance
increased aircraft inventory.
Other Income (Expense)-Net in the second quarter and first half of
1995 included a gain of approximately $96,000 from insurance proceeds and
also included approximately $38,000 in the first quarter of 1995 of royalty
income related to final settlement of certain overseas trademark rights.
The Income Tax Benefits-Net in the second quarters of 1996 and
1995 included deferred income tax benefits of $112,000 and $135,000,
respectively, and, in the first halves of 1996 and 1995, included deferred
income tax benefits of $224,000 and $161,000, respectively, all as the
result of the reduction in the valuation allowance related to deferred tax
assets. These tax benefits were partially offset by provisions for state
income taxes in the second quarters and first halves of 1996 and 1995.
FINANCIAL CONDITION
The Company's Stockholders' Equity improved to $2,833,000 at June
30, 1996 from $2,034,000 at December 31, 1995. The improvement of $799,000
in 1996 Stockholders' Equity was primarily due to the Net Earnings in the
first half of 1996. At June 30, 1996, the Company had net working capital of
$521,000 as compared to $178,000 at December 31, 1995. The increase in net
working capital was primarily due to the Net Earnings in 1996, partially
offset by the change in classification to short-term liabilities from
long-term liabilities of $348,000 of the Ronson Aviation mortgage loan in
the first quarter of 1996 since the final payment is due in January 1997.
The change in cash from changes in accounts receivable was a
decrease of $928,000 in the first half of 1996 as compared to a decrease of
$291,000 in the first half of 1995. This increase in accounts receivable in
1996 was primarily the result of extended terms provided by Ronson Consumer
Products to a new customer and to a receivable of Ronson Aviation resulting
from the June 1996 sale of an aircraft.
The change in cash from changes in accounts payable was an
increase of $636,000 in the first half of 1996 as compared to a decrease of
$302,000 in the first half of 1995. The decrease in the first half of 1995
resulted from utilizing a portion of the proceeds from the UJB loan to
reduce accounts payable. The increase in the first half of 1996 was
primarily the result of the timing of materials purchases by Ronson Consumer
Products from its suppliers to meet sales requirements.
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 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
<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: August 12, 1996 /s/Louis V. Aronson II
Louis V. Aronson II, President
and Chief Executive Officer
(Signing as Duly Authorized
Officer of the Registrant)
Date: August 12, 1996 /s/Daryl K. Holcomb
Daryl K. Holcomb
Vice President &
Chief Financial Officer,
Controller and Treasurer
(Signing as Chief Financial
Officer of the Registrant)
Exhibit 11
RONSON CORPORATION
CALCULATION OF EARNINGS PER COMMON SHARE
(Dollars in thousands, except per common share data) (unaudited)
<TABLE>
<CAPTION>
Quarter Ended
June 30,
--------------------------
1996 1995
----------- -----------
<S> <C> <C>
Assuming No Dilution
Net Earnings .............................. $ 430 $ 610
Less Cumulative Preferred Dividends ....... (44) (46)
----------- -----------
Net Earnings Applicable to Common Stock ... $ 386 $ 564
=========== ===========
Weighted average number of common shares
outstanding (1) ........................ 1,794,730 1,707,698
----------- -----------
Net Earnings per Common Share ............. $ 0.22 $ 0.33
=========== ===========
Assuming Full Dilution
Net Earnings .............................. $ 430 $ 610
=========== ===========
Weighted average number of common shares
outstanding (1) ........................ 1,794,730 1,707,698
Additional common shares outstanding
resulting from assumed conversion of
preferred stock to common stock ........ 838,115 873,267
----------- -----------
Total ..................................... 2,632,845 2,580,965
=========== ===========
Net Earnings per Common Share ............. $ 0.16 $ 0.24
=========== ===========
</TABLE>
(1) The dilution due to the outstanding stock options was less than 3% in
the second quarters of 1996 and 1995 and, therefore, the stock options
were not included as common stock equivalents for those periods.
<PAGE>
RONSON CORPORATION
CALCULATION OF EARNINGS PER COMMON SHARE
(Dollars in thousands, except per common share data) (unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------------------------
1996 1995
----------- -----------
<S> <C> <C>
Assuming No Dilution
Net Earnings .............................. $ 663 $ 837
Less Cumulative Preferred Dividends ....... (88) (92)
----------- -----------
Net Earnings from Continuing Operations
Applicable to Common Stock ............. $ 575 $ 745
=========== ===========
Weighted average number of common shares
outstanding (1) ........................ 1,781,222 1,706,803
----------- -----------
Net Earnings per Common Share ............. $ 0.32 $ 0.44
=========== ===========
Assuming Full Dilution
Net Earnings .............................. $ 663 $ 837
=========== ===========
Weighted average number of common shares
outstanding (1) ........................ 1,781,222 1,706,803
Additional common shares outstanding
resulting from assumed conversion of
preferred stock to common stock ........ 840,126 873,267
----------- -----------
Total ..................................... 2,621,348 2,580,070
=========== ===========
Net Earnings per Common Share ............. $ 0.25 $ 0.32
=========== ===========
</TABLE>
(1) The dilution due to the outstanding stock options was less than 3% in
the six months of 1996 and 1995 and, therefore, the stock options were
not included as common stock equivalents for those periods.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 23
<SECURITIES> 0
<RECEIVABLES> 2,962
<ALLOWANCES> 94
<INVENTORY> 7,152
<CURRENT-ASSETS> 11,284
<PP&E> 6,908
<DEPRECIATION> 4,471
<TOTAL-ASSETS> 15,555
<CURRENT-LIABILITIES> 10,763
<BONDS> 2,198
0
8
<COMMON> 1,864
<OTHER-SE> 961
<TOTAL-LIABILITY-AND-EQUITY> 15,555
<SALES> 12,682
<TOTAL-REVENUES> 12,682
<CGS> 8,270
<TOTAL-COSTS> 8,270
<OTHER-EXPENSES> 3,478
<LOSS-PROVISION> 10
<INTEREST-EXPENSE> 378
<INCOME-PRETAX> 501
<INCOME-TAX> (162)
<INCOME-CONTINUING> 663
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 663
<EPS-PRIMARY> .32
<EPS-DILUTED> .25
</TABLE>
