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, 1997
---------------
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, 1997, there were 2,926,545 shares of the registrant's common
stock outstanding.
<PAGE>
RONSON CORPORATION
FORM 10-Q INDEX
PART I - FINANCIAL INFORMATION:
CONSOLIDATED BALANCE SHEETS:
JUNE 30, 1997 AND DECEMBER 31, 1996
CONSOLIDATED STATEMENTS OF EARNINGS:
QUARTER ENDED JUNE 30, 1997 AND 1996
SIX MONTHS ENDED JUNE 30, 1997 AND 1996
CONSOLIDATED STATEMENTS OF CASH FLOWS:
SIX MONTHS ENDED JUNE 30, 1997 AND 1996
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>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------
(in thousands of dollars)
June 30, December 31,
1997 1996
-------- --------
(unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash ............................................... $ 153 $ 116
Accounts receivable - net .......................... 1,628 1,617
Inventories:
Finished goods ................................... 2,499 2,428
Work in process .................................. 132 160
Raw materials .................................... 746 520
-------- --------
3,377 3,108
Other current assets ............................... 1,195 971
-------- --------
TOTAL CURRENT ASSETS ......................... 6,353 5,812
-------- --------
Property, plant and equipment, at cost:
Land ............................................. 19 19
Buildings and improvements ....................... 3,677 3,638
Machinery and equipment .......................... 4,927 5,678
Construction in progress ......................... 55 55
-------- --------
8,678 9,390
Less accumulated depreciation and amortization ..... 5,064 5,056
-------- --------
3,614 4,334
Intangible pension assets .......................... 326 357
Other assets ....................................... 800 775
Other assets of discontinued operations ............ 832 826
-------- --------
$ 11,925 $ 12,104
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt .................................... $ 1,902 $ 2,084
Current portion of long-term debt and leases ....... 528 706
Accounts payable ................................... 2,270 1,477
Accrued expenses ................................... 1,641 1,911
Current liabilities of discontinued operations ..... 1,588 1,753
-------- --------
TOTAL CURRENT LIABILITIES .................... 7,929 7,931
-------- --------
Long-term debt and leases .......................... 2,035 2,602
Pension obligations ................................ 263 268
Other long-term liabilities ........................ 87 93
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------
(in thousands of dollars)
(continued)
June 30, December 31,
1997 1996
-------- --------
(unaudited)
<S> <C> <C>
STOCKHOLDERS' EQUITY:
Preferred stock .................................... 2 8
Common stock ....................................... 2,989 1,864
Additional paid-in capital ......................... 29,227 30,345
Accumulated deficit ................................ (27,597) (27,936)
Unrecognized net loss on pension plans ............. (1,371) (1,441)
Cumulative foreign currency translation adjustment . (45) (36)
-------- --------
3,205 2,804
Less cost of treasury shares ....................... 1,594 1,594
-------- --------
TOTAL STOCKHOLDERS' EQUITY ................... 1,611 1,210
-------- --------
$ 11,925 $ 12,104
======== ========
See notes to consolidated financial statements.
</TABLE>
<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
June 30,
---------------------
1997 1996 *
------ ------
<S> <C> <C>
NET SALES ........................................ $5,894 $6,919
------ ------
Cost and expenses:
Cost of sales .................................. 3,816 4,522
Selling, shipping and advertising .............. 904 861
General and administrative ..................... 809 845
Depreciation and amortization .................. 93 121
------ ------
5,622 6,349
------ ------
EARNINGS FROM OPERATIONS ......................... 272 570
------ ------
Other expense:
Interest expense ............................... 128 196
Other-net ...................................... 30 27
------ ------
158 223
------ ------
EARNINGS BEFORE INCOME TAXES ..................... 114 347
Income tax benefits-net .......................... 47 83
------ ------
NET EARNINGS ..................................... $ 161 $ 430
====== ======
NET EARNINGS PER COMMON SHARE:
Assuming no dilution ........................... $ 0.05 $ 0.22
====== ======
Assuming full dilution ......................... $ 0.05 $ 0.16
====== ======
See notes to consolidated financial statements.
* Reclassified for comparability.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
----------------------------------------------------------- -
(in thousands of dollars, except per share data) (unaudited)
Six Months Ended
June 30,
-----------------------
1997 1996 *
------- -------
<S> <C> <C>
NET SALES ...................................... $11,497 $12,682
------- -------
Cost and expenses:
Cost of sales ................................ 7,305 8,213
Selling, shipping and advertising ............ 1,817 1,673
General and administrative ................... 1,617 1,623
Depreciation and amortization ................ 212 239
------- -------
10,951 11,748
------- -------
EARNINGS FROM OPERATIONS ....................... 546 934
------- -------
Other expense:
Interest expense ............................. 251 378
Other-net .................................... 42 55
------- -------
293 433
------- -------
EARNINGS BEFORE INCOME TAXES ................... 253 501
Income tax benefits-net ........................ 86 162
------- -------
NET EARNINGS ................................... $ 339 $ 663
======= =======
NET EARNINGS PER COMMON SHARE:
Assuming no dilution ......................... $ 0.11 $ 0.32
======= =======
Assuming full dilution ....................... $ 0.11 $ 0.25
======= =======
See notes to consolidated financial statements.
* Reclassified for comparability.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
----------------------------------------------------
(in thousands of dollars) (unaudited)
Six Months Ended
June 30,
---------------------
1997 1996 *
------- -------
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings ..................................................... $ 339 $ 663
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Depreciation and amortization ................................. 212 239
Deferred income tax benefits .................................. (101) (224)
Increase (decrease) in cash from changes in:
Accounts receivable ........................................ (11) (928)
Inventories ................................................ 406 (658)
Other current assets ....................................... (245) (171)
Accounts payable ........................................... 793 636
Accrued expenses ........................................... (263) (293)
Net change in pension-related accounts ........................ (77) (40)
Other ......................................................... 12 (35)
------- -------
Net cash provided by (used in)
operating activities .................................... 1,065 (811)
------- -------
Cash Flows from Investing Activities:
Net cash used in investing activities,
capital expenditures ..................................... (101) (297)
------- -------
Cash Flows from Financing Activities:
Proceeds from short-term debt ..................................... 142 1,677
Proceeds from exercise of stock options............................ -- 80
Payments of short-term debt ....................................... (324) (514)
Payments of long-term debt ........................................ (691) (144)
Payments of long-term lease obligations............................ (54) (32)
------- -------
Net cash provided by (used in)
financing activities .................................... (927) 1,067
------- -------
Net increase (decrease) in cash ............................... 37 (41)
Cash at beginning of period ................................... 116 64
------- -------
Cash at end of period ......................................... $ 153 $ 23
======= =======
See notes to consolidated financial statements.
* Reclassified for comparability.
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 1997 (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, 1997 and 1996 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.
In February 1997, the Financial Accounting Standards Board issued SFAS
No. 128, "Earnings per Share", which establishes standards for computing and
presenting earnings per share. The Company will give effect to this standard at
December 31, 1997. The Company believes implementation of SFAS No. 128 will not
have a material impact on earnings per share.
The weighted average number of common shares used for these
computations was as follows:
Quarter Ended
June 30,
--------------------
1997 1996
---- ----
Assuming no dilution 2,921,046 1,794,730
Assuming full dilution 3,100,280 2,632,845
Six Months Ended
June 30,
--------------------
1997 1996
---- ----
Assuming no dilution 2,825,361 1,781,222
Assuming full dilution 3,060,881 2,621,348
On November 15, 1996, the Company issued an Offer to owners of its 12%
Cumulative Convertible Preferred Stock to exchange their shares of preferred
stock for shares of common stock at the rate of 1.7 shares of common stock for
each share of preferred. As of June 30, 1997, the Company had accepted 661,595
shares of preferred stock for exchange under the Company's Exchange Offer. As a
result, at June 30, 1997, the Company had outstanding 176,000 shares of
preferred stock and 2,926,545 shares of common stock.
Discontinued Operations - In December 1989, the Company adopted a plan
to discontinue the operations in 1990 of one of its New Jersey facilities,
Ronson Metals Corporation, subsequently renamed Prometcor, Inc. ("Prometcor").
As a result, the operations of Prometcor have been classified as discontinued
operations 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.
Note 2: SHORT-TERM DEBT
In January 1995, Ronson Consumer Products Corporation ("RCPC") entered
into an agreement with Summit Bank ("Summit"), formerly United Jersey Bank, for
a Revolving Loan and a Term Loan. In March 1997, RCPC and Summit extended RCPC's
Revolving Loan by over three years to June 30, 2000. The extended agreement also
amended certain other terms of the Revolving Loan agreement. The Revolving Loan
of $1,013,000 at June 30, 1997 provides a line of credit up to $2,500,000 (an
increase in 1997 of $500,000 from the prior $2,000,000) to RCPC based on
accounts receivable and inventory. The balance of the Term Loan was $63,000 at
June 30, 1997, and is to be repaid in monthly installments of $6,250 plus
interest through April 1, 1998.
In July 1997, RCPC and Summit amended the Revolving Loan agreement to
provide $400,000 in additional loan availability. The $400,000 additional
available loan will be repaid in monthly amounts of $14,583 from October 1997 to
March 1998 and $20,833 from April 1998 to June 1999.
At June 30, 1997, Ronson Aviation, Inc. ("Ronson Aviation") had notes
payable consisting of the following: 1) $608,000 due to Raytheon Aircraft Credit
Corp., formerly Beech Acceptance Corporation, Inc.; 2) $177,000 due to Greentree
Financial Servicing Corporation; and 3) $58,000 due to Cessna Finance
Corporation. These notes are each collateralized by specific aircraft, and the
notes are to be repaid from the proceeds from the sale of the aircraft.
Note 3: LONG-TERM DEBT
Ronson Aviation and Bank of New York/National Community Division
("BONY/NCD") have extended the Ronson Aviation mortgage to August 31, 1997. The
mortgage balance had been due to be paid in January 1997. Ronson Aviation and
the Company expect that the BONY/NCD mortgage loan will be repaid in the third
quarter of 1997 with a new term loan for Ronson Aviation from Summit. The
mortgage balance was $294,000 at June 30, 1997.
Note 4: CONTINGENCIES
On August 31, 1995, the Company received a General Notice Letter from
the United States Environmental Protection Agency ("USEPA"), which the Company
believes will not have a material effect on the Company's financial position.
The General Notice Letter notified 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 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, on
September 29, 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 the 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 the Defendant in a product liability lawsuit pending in
the Superior Court of Wilkinson County, Georgia, entitled, PRINEST G. HAMMOND
AND SCARLETT W. HAMMOND, AS PARENTS, GUARDIANS, AND NEXT FRIENDS OF FABIAN GAYLE
HAMMOND, A MINOR, AND PRINEST G. HAMMOND AND SCARLETT W. HAMMOND, INDIVIDUALLY,
V. RONSON CORPORATION, in which Plaintiffs seek damages for an incident that
allegedly occurred in December 1994, when a spark from an unidentified cigarette
lighter ignited the clothing of Fabian Gayle Hammond after he had allegedly
allowed lighter fluid to leak onto his pants. The case was filed in June 1996.
The Plaintiffs seek substantial special damages and punitive damages. Discovery
has not been completed, and, therefore, the Company's counsel is unable to
render an opinion about whether the likelihood of an unfavorable outcome is
either "probable" or "remote". However, counsel for the Company has advised that
substantial defenses exist and is vigorously defending this litigation.
Management believes that the claim is without merit and a loss, if any, would be
well within the limits of insurance coverage.
The Company is involved in various other lawsuits and claims.
Management believes that the outcome of these lawsuits and claims 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 smaller amounts of liability insurance than it had
purchased prior to 1987. While the Company has increased the amounts of coverage
purchased in the last three years and 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,
-------------------------
1997 1996
---- ----
Cash Payments for:
Interest $265 $362
Income taxes 36 43
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Second Quarter 1997 Compared to Second Quarter 1996 and First Half 1997 Compared
to First Half 1996.
The Registrant, Ronson Corporation (the "Company"), had Earnings from
Operations in the first half of 1997 of $546,000, as compared to $934,000 in the
first half of 1996. The Company's Earnings from Operations in the second quarter
of 1997 were $272,000 compared to $570,000 in the second quarter of 1996.
The Company's Consolidated Net Sales were $5,894,000 in the second
quarter of 1997 as compared to $6,919,000 in the second quarter of 1996. The
Company's Consolidated Net Sales were $11,497,000 in the first half of 1997 as
compared to $12,682,000 in the first half of 1996. 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") decreased by 15% in the second
quarter of 1997 as compared to the second quarter of 1996. Net Sales at Ronson
Consumer Products decreased by 10% in the first half of 1997 as compared to the
first half of 1996. The decreases in Net Sales at Ronson Consumer Products in
the 1997 periods were primarily due to decreased shipments of lighter products.
Net Sales at Ronson Aviation, Inc. ("Ronson Aviation"), Trenton, New Jersey,
decreased by 15% in the second quarter of 1997 compared to the second quarter of
1996 and decreased by 8% in the first half of 1997 as compared to the first half
of 1996. The decreases in Net Sales at Ronson Aviation in the second quarter and
first half of 1997 were primarily due to lower aircraft sales which were
partially offset by increased sales of general aviation services in the 1997
periods.
In the second quarter of 1997, Consolidated Cost of Sales, as a
percentage of Net Sales, was unchanged at 65% compared to 1996 and was lower at
64% in the first half of 1997 compared to 65% in the first half of 1996. The
Cost of Sales percentage at Ronson Consumer Products increased to 54% in the
second quarter of 1997 compared to 53% in the second quarter of 1996 and was
unchanged at 53% in the first half of 1997 compared to 1996. The Cost of Sales
percentage at Ronson Aviation decreased to 84% in the second quarter of 1997 as
compared to 87% in the second quarter of 1996 primarily due to a change in the
mix of products sold and lower operating costs. The Cost of Sales percentage at
Ronson Aviation was reduced to 85% in the first half of 1997 compared to 90% in
the first half of 1996 primarily due to a change in the mix of products sold and
lower operating costs.
Consolidated Selling, Shipping and Advertising Expenses, as a
percentage of Net Sales, increased to 15% in the second quarter of 1997 from 12%
in the second quarter of 1996 and to 16% in the first half of 1997 compared to
13% in the first half of 1996 primarily due to increases in costs of selling and
advertising at Ronson Consumer Products as the result of the introduction of the
Windii lighter, a new lighter product.
The Earnings from Operations at Ronson Aviation improved substantially
in 1997 as compared to the same period in 1996. Ronson Aviation's 1997 first
half Earnings from Operations were $104,000 as compared to a Loss from
Operations in the first half of 1996 of $78,000, an improvement of $182,000 in
operating earnings.
Interest Expense decreased to $128,000 in the second quarter of 1997
from $196,000 in the second quarter of 1996 and to $251,000 in the first half of
1997 from $378,000 in the first half of 1996 primarily due to reduced short-term
and long-term debt at Ronson Aviation because of lower aircraft inventory and
aircraft equipment in the 1997 periods compared to the 1996 periods.
FINANCIAL CONDITION
The Company's Stockholders' Equity improved to $1,611,000 at June 30,
1997 from $1,210,000 at December 31, 1996. The improvement of $401,000 in the
1997 Stockholders' Equity was primarily due to the Net Earnings in the first
half of 1997. At June 30, 1997, the Company had a deficiency in working capital
of $1,576,000 as compared to $2,119,000 at December 31, 1996. The increase of
$543,000 in working capital was primarily due to first half of 1997 Net Earnings
of $339,000 and to the sale of aircraft equipment at Ronson Aviation.
The change in cash from changes in inventories was an increase of
$406,000 in the first half of 1997 as compared to a decrease of $656,000 in the
first half of 1996. This change was primarily due to decreased aircraft
inventory at Ronson Aviation in the first half of 1997 and to increased aircraft
inventory at Ronson Aviation in the first half of 1996. The reduction in
aircraft inventory in the first half of 1997 also resulted in lower short-term
debt at June 30, 1997 compared to December 31, 1996.
The change in cash from changes in accounts receivable was a decrease
of $11,000 in the first half of 1997 as compared to a decrease of $928,000 in
the first half of 1996. 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
$793,000 in the first half of 1997 as compared to an increase of $636,000 in the
first half of 1996. The increases in the first half of 1997 and 1996 were
primarily the result of the timing of materials purchased by Ronson Consumer
Products from its suppliers to meet sales requirements.
In January 1995, RCPC entered into an agreement with Summit Bank
("Summit"), formerly United Jersey Bank, for a Revolving Loan and a Term Loan.
In March 1997, RCPC and Summit extended RCPC's Revolving Loan by over three
years to June 30, 2000. The extended agreement also amended certain other terms
of the Revolving Loan agreement, including a 1/2% reduction in the interest rate
to 1-1/2% above prime from 2% above prime. The Revolving Loan of $1,013,000 at
June 30, 1997 provides a line of credit up to $2,500,000 (an increase in 1997 of
$500,000 from the prior $2,000,000) to RCPC based on accounts receivable and
inventory.
In July 1997, RCPC and Summit amended the Revolving Loan agreement to
provide $400,000 in additional loan availability. The $400,000 additional
available loan will be repaid in monthly amounts of $14,583 from October 1997 to
March 1998 and $20,833 from April 1998 to June 1999.
Ronson Aviation and Bank of New York/National Community Division
("BONY/NCD") have extended the Ronson Aviation mortgage to August 31, 1997. The
mortgage balance had been due to be paid in January 1997. Ronson Aviation and
the Company expect that the BONY/NCD mortgage loan will be repaid in the third
quarter of 1997 with a new term loan which is currently being processed for
Ronson Aviation by Summit. The mortgage balance was $294,000 at June 30, 1997.
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.
PART II - OTHER INFORMATION
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
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 14, 1997 /s/Louis V. Aronson II
--------------- ------------------------------
Louis V. Aronson II, President
and Chief Executive Officer
(Signing as Duly Authorized
Officer of the Registrant)
Date: August 14, 1997 /s/Daryl K. Holcomb
--------------- ------------------------------
Daryl K. Holcomb
Vice President &
Chief Financial Officer,
Controller and Treasurer
(Signing as Chief Financial
Officer of the Registrant)
<TABLE>
<CAPTION>
RONSON CORPORATION Exhibit 11
CALCULATION OF EARNINGS PER COMMON SHARE
(Dollars in thousands, except per common share data) (unaudited)
Quarter Ended
June 30,
----------------------------
1997 1996
----------- -----------
<S> <C> <C>
Assuming No Dilution
Net earnings ........................... $ 161 $ 430
Less cumulative preferred dividends .... (9) (44)
----------- -----------
Net earnings applicable to common stock $ 152 $ 386
=========== ===========
Weighted average number of common shares
outstanding (1) ..................... 2,921,046 1,794,730
----------- -----------
Net earnings per common share .......... $ 0.05 $ 0.22
=========== ===========
Assuming Full Dilution
Net earnings ........................... $ 161 $ 430
=========== ===========
Weighted average number of common shares
outstanding (1) ..................... 2,921,046 1,794,730
Additional common shares outstanding
resulting from assumed conversion of
preferred stock to common stock ..... 179,234 838,115
----------- -----------
Total .................................. 3,100,280 2,632,845
=========== ===========
Net earnings per common share .......... $ 0.05 $ 0.16
=========== ===========
</TABLE>
(1) The dilution due to the outstanding stock options was less than 3% in
the second quarters of 1997 and 1996 and, therefore, the stock options
were not included as common stock equivalents for those periods.
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION Exhibit 11
CALCULATION OF EARNINGS PER COMMON SHARE
(Dollars in thousands, except per common share data) (unaudited)(continued)
Six Months Ended
June 30,
----------------------------
1997 1996
----------- -----------
<S> <C> <C>
Assuming No Dilution
Net Earnings ........................... $ 339 $ 663
Less Cumulative Preferred Dividends .... (18) (88)
----------- -----------
Net Earnings from Continuing Operations
Applicable to Common Stock .......... $ 321 $ 575
=========== ===========
Weighted average number of common shares
outstanding (1) ..................... 2,825,361 1,781,222
----------- -----------
Net Earnings per Common Share .......... $ 0.11 $ 0.32
=========== ===========
Assuming Full Dilution
Net Earnings ........................... $ 339 $ 663
=========== ===========
Weighted average number of common shares
outstanding (1) ..................... 2,825,361 1,781,222
Additional common shares outstanding
resulting from assumed conversion of
preferred stock to common stock ..... 235,520 840,126
----------- -----------
Total .................................. 3,060,881 2,621,348
=========== ===========
Net Earnings per Common Share .......... $ 0.11 $ 0.25
=========== ===========
</TABLE>
(1) The dilution due to the outstanding stock options was less than 3% in
the six months of 1997 and 1996 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 153
<SECURITIES> 0
<RECEIVABLES> 1,707
<ALLOWANCES> (79)
<INVENTORY> 3,377
<CURRENT-ASSETS> 6,353
<PP&E> 8,678
<DEPRECIATION> 5,064
<TOTAL-ASSETS> 11,925
<CURRENT-LIABILITIES> 7,929
<BONDS> 2,035
0
2
<COMMON> 2,989
<OTHER-SE> (1,380)
<TOTAL-LIABILITY-AND-EQUITY> 11,925
<SALES> 11,497
<TOTAL-REVENUES> 11,497
<CGS> 7,305
<TOTAL-COSTS> 7,305
<OTHER-EXPENSES> 3,679
<LOSS-PROVISION> 9
<INTEREST-EXPENSE> 251
<INCOME-PRETAX> 253
<INCOME-TAX> (86)
<INCOME-CONTINUING> 339
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 339
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
</TABLE>
