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, 1998
-------------
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)
(732) 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, 1998, there were 3,177,175 shares of the registrant's common
stock outstanding.
<PAGE>
RONSON CORPORATION
FORM 10-Q INDEX
PART I - FINANCIAL INFORMATION:
CONSOLIDATED BALANCE SHEETS:
JUNE 30, 1998 AND DECEMBER 31, 1997
CONSOLIDATED STATEMENTS OF EARNINGS:
QUARTER ENDED JUNE 30, 1998 AND 1997
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
CONSOLIDATED STATEMENTS OF CASH FLOWS:
SIX MONTHS ENDED JUNE 30, 1998 AND 1997
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,
1998 1997
----------- ------------
ASSETS (unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash $ 224 $ 32
Accounts receivable, net 1,675 1,865
Inventories:
Finished goods 2,112 2,260
Work in process 125 62
Raw materials 603 695
-------- --------
2,840 3,017
Other current assets 1,037 914
-------- --------
TOTAL CURRENT ASSETS 5,776 5,828
-------- --------
Property, plant and equipment, at cost:
Land 19 19
Buildings and improvements 3,744 3,742
Machinery and equipment 7,130 7,071
Construction in progress 102 61
-------- --------
10,995 10,893
Less accumulated depreciation and amortization 5,698 5,424
-------- --------
5,297 5,469
Other assets 2,244 2,222
-------- --------
$ 13,317 $ 13,519
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt $ 2,075 $ 2,713
Current portion of long-term debt and leases 439 459
Accounts payable 1,811 1,431
Accrued expenses 1,606 1,724
Current liabilities of discontinued operations 1,043 1,106
-------- --------
TOTAL CURRENT LIABILITIES 6,974 7,433
-------- --------
Long-term debt and leases 3,535 3,744
Other long-term liabilities 408 478
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------
(in thousands of dollars)
June 30, December 31,
1998 1997
----------- ------------
(unaudited)
<S> <C> <C>
STOCKHOLDERS' EQUITY:
Common stock 3,240 3,226
Additional paid-in capital 28,994 28,991
Accumulated deficit (26,699) (27,153)
Accumulated other comprehensive deficit (1,541) (1,606)
-------- --------
3,994 3,458
Less cost of treasury shares 1,594 1,594
-------- --------
TOTAL STOCKHOLDERS' EQUITY 2,400 1,864
-------- --------
$ 13,317 $ 13,519
======== ========
</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
June 30,
-------------------
1998 1997 *
------ ------
<S> <C> <C>
NET SALES $6,266 $5,894
------ ------
Cost and expenses:
Cost of sales 3,810 3,796
Selling, shipping and advertising 890 904
General and administrative 996 809
Depreciation and amortization 136 113
------ ------
5,832 5,622
------ ------
EARNINGS FROM OPERATIONS 434 272
------ ------
Other expense:
Interest expense 167 128
Other, net 28 30
------ ------
195 158
------ ------
EARNINGS BEFORE INCOME TAXES 239 114
Income tax benefits, net 32 47
------ ------
NET EARNINGS $ 271 $ 161
====== ======
NET EARNINGS PER COMMON SHARE:
Basic $ 0.08 $ 0.05
====== ======
Diluted $ 0.08 $ 0.05
====== ======
</TABLE>
See notes to consolidated financial statements.
* Reclassified for comparability.
<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,
------------------------
1998 1997 *
-------- -------
<S> <C> <C>
NET SALES $11,701 $11,497
------- -------
Cost and expenses:
Cost of sales 7,004 7,263
Selling, shipping and advertising 1,760 1,817
General and administrative 1,899 1,617
Depreciation and amortization 275 254
------- -------
10,938 10,951
------- -------
EARNINGS FROM OPERATIONS 763 546
------- -------
Other expense:
Interest expense 335 251
Other, net 38 42
------- -------
373 293
------- -------
EARNINGS BEFORE INCOME TAXES 390 253
Income tax benefits, net 64 86
------- -------
NET EARNINGS $ 454 $ 339
======= =======
NET EARNINGS PER COMMON SHARE:
Basic $ 0.14 $ 0.11
======= =======
Diluted $ 0.14 $ 0.11
======= =======
</TABLE>
See notes to consolidated financial statements.
* Reclassified for comparability.
<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,
---------------------
1998 1997 *
------- --------
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings $ 454 $ 339
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 275 254
Deferred income tax benefits (76) (101)
Increase in cash from changes in current
assets and current liabilities 407 623
Other 86 9
------- -------
Net cash provided by operating activities 1,146 1,124
------- -------
Cash Flows from Investing Activities:
Net cash used in investing activities,
capital expenditures (92) (160)
------- -------
Cash Flows from Financing Activities:
Proceeds from short-term debt 377 142
Proceeds from exercise of stock options 17 --
Payments of short-term debt (1,015) (324)
Payments of long-term debt (196) (691)
Payments of long-term lease obligations (45) (54)
------- -------
Net cash used in financing activities (862) (927)
------- -------
Net increase in cash 192 37
------- -------
Cash at beginning of period 32 116
------- -------
Cash at end of period $ 224 $ 153
======= =======
</TABLE>
See notes to consolidated financial statements.
* Reclassified for comparability.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 1998 (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, 1998 and 1997
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 - Basic net earnings per common share was
computed by dividing net earnings less cumulative preferred dividends by the
weighted average number of common shares outstanding.
Diluted net earnings per common share 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 and the
dilutive effect of outstanding stock options.
The weighted average number of common shares used for these
computations was as follows:
Quarter Ended
June 30,
--------------------
1998 1997
--------- ---------
Basic 3,177,175 2,921,046
Diluted (1) 3,238,031 3,108,588
Six Months Ended
June 30,
--------------------
1998 1997
--------- ---------
Basic 3,171,876 2,825,361
Diluted (1) 3,228,393 3,070,173
(1) The number of shares for the computation of diluted earnings per
share for the quarter and six months ended June 30, 1997, has been adjusted
to include the dilutive effect of outstanding stock options in accordance
with Statement of Financial Accounting Standards ("SFAS") #128, "Earnings
per Share".
On November 15, 1996, Ronson Corporation (the "Company") issued an
offer to exchange 1.7 shares of its common stock for each share of preferred
stock outstanding. During the six months ended June 30, 1997, the Company
accepted approximately 662,000 preferred shares tendered in accordance with
the terms of its offer. Approximately 1,125,000 common shares were issued in
exchange for the preferred shares tendered and accepted. After the
expiration of the offer on September 30, 1997, the Company had accepted a
total of 800,844 shares of preferred stock and had issued a total of
1,361,435 shares of common stock in exchange under the Company's Exchange
Offer. At June 30, 1998, the Company had outstanding 36,518 shares of
preferred stock and 3,177,175 shares of common stock.
<PAGE>
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 1995 Ronson Consumer Products Corporation ("RCPC") entered into
an agreement with Summit Bank ("Summit") for a Revolving Loan and a Term
Loan. The Revolving Loan of $1,456,000 at June 30, 1998, provides a line of
credit up to $2,500,000 to RCPC based on accounts receivable and inventory.
The balance of the Term Loan was paid in full on 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
loan availability was reduced in monthly amounts of $14,583 from October
1997 to March 1998, and is currently being reduced in monthly amounts of
$20,833 from April 1998 to June 1999. The outstanding amount under the
agreement for the additional available loan of $250,000 as of June 30, 1998,
is included in the balance of the Revolving Loan in the paragraph above.
In 1995 Ronson-Canada entered into an agreement with Canadian
Imperial Bank of Commerce ("CIBC") for a line of credit of C$250,000. The
Revolving Loan balance of $89,000 (C$131,000) at June 30, 1998, by
Ronson-Canada under the line of credit is secured by the accounts receivable
and inventory of Ronson-Canada.
At June 30, 1998, Ronson Aviation, Inc. ("Ronson Aviation") had
notes payable consisting of the following: 1) $377,000 due to Raytheon
Aircraft Credit Corp.; and 2) $153,000 due to Greentree Financial Servicing
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.
In August 1997 Ronson Aviation entered into an agreement with
Summit for a Revolving Loan and a Term Loan (refer to Note 3 below regarding
the Term Loan). The Revolving Loan, which had not yet been utilized at June
30, 1998, provides a line of credit up to $400,000 to Ronson Aviation based
on the level of its accounts receivable.
Note 3: LONG-TERM DEBT
In August 1997 Ronson Aviation entered into a Term Loan agreement
with Summit in the original amount of $285,000. The Term Loan balance was
$242,000 at June 30, 1998.
<PAGE>
Note 4: CONTINGENCIES
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
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 involved in various other lawsuits and claims. While
the amounts claimed may be substantial, the ultimate liability cannot now be
determined because of the considerable uncertainties that exist. Therefore,
it is possible that results of operations or liquidity in a particular
period could be materially affected by certain contingencies. However, based
on facts currently available, including the insurance coverage that the
Company has in place, management believes that the outcome of these lawsuits
and claims will not have a material adverse effect on the Company's
financial position.
Note 5: COMPREHENSIVE INCOME
Effective January 1, 1998, the Company adopted SFAS #130,
"Reporting Comprehensive Income". Comprehensive Income is the change in
equity during a period from transactions and other events from nonowner
sources. Under SFAS #130, the Company is required to classify items of other
comprehensive income in financial statements and to display the accumulated
balance of other comprehensive income (deficit) separately in the equity
section of the Consolidated Balance Sheets. The adoption of SFAS #130 does
not have a material impact on the financial position or results of
operations of the Company.
<PAGE>
The composition of Comprehensive Income was as follows (in
thousands):
Quarter Ended
June 30,
-------------
1998 1997
---- ----
Net earnings $271 $161
Other comprehensive income, net of tax:
Minimum pension liability adjustment 42 35
Foreign currency translation adjustment (22) 1
---- ----
Comprehensive income $291 $197
==== ====
Six Months Ended
June 30,
----------------
1998 1997
---- ----
Net earnings $454 $339
Other comprehensive income, net of tax:
Minimum pension liability adjustment 82 70
Foreign currency translation adjustment (17) (9)
---- ----
Comprehensive income $519 $400
==== ====
Note 6: 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,
----------------
1998 1997
---- ----
Cash Payments for:
Interest $328 $265
Income taxes 3 36
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Second Quarter 1998 Compared to Second Quarter 1997 and First Half 1998
Compared to First Half 1997.
Ronson Corporation's ("the Company's") second quarter 1998
Earnings from Operations increased by 60% to $434,000 from $272,000 in
the second quarter of 1997. The first half 1998 Earnings from Operations
were 40% higher than in the first half of 1997. Earnings from Operations
were significantly higher at both Ronson Consumer Products and Ronson
Aviation in the second quarter and first half of 1998 compared to the
same periods in 1997.
The Company's Consolidated Net Sales increased by 6% to
$6,266,000 in the second quarter of 1998 from $5,894,000 in the second
quarter of 1997. Consolidated Net Sales increased by 2% to $11,701,000 in
the first half of 1998 compared to $11,497,000 in the first half of 1997.
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 3% in the second quarter of 1998 as compared to
the second quarter of 1997, but Net Sales were 1% lower in the first half
of 1998 as compared to the first half of 1997. The increased sales in the
second quarter 1998 from the second quarter 1997 were slightly more than
offset by a decline in the first quarter 1998 from the first quarter
1997. Net Sales at Ronson Aviation, Inc. ("Ronson Aviation"), Trenton,
New Jersey, increased by 12% in the second quarter of 1998 as compared to
the second quarter of 1997 and by 7% in the first half of 1998 as
compared to the first half of 1997 primarily because lower aircraft sales
were more than offset by increased sales of general aviation services,
notably of charter services, in the 1998 periods. These increases in
revenue from charter operations were primarily due to Ronson Aviation's
fourth quarter 1997 purchase of a Cessna Citation II jet and to increases
in other charter revenues.
Consolidated Cost of Sales, as a percentage of Consolidated Net
Sales, was reduced to 61% in the second quarter of 1998 from 64% in the
second quarter of 1997 and to 60% in the first half of 1998 from 63% in
the first half of 1997. The Cost of Sales percentage at Ronson Consumer
Products decreased to 52% in the second quarter of 1998 as compared to
54% in the second quarter of 1997 and to 51% in the first half of 1998
from 53% in the first half of 1997 primarily due to reductions in
material costs related to certain products and to small increases in the
selling prices of certain products. The Cost of Sales percentage at
Ronson Aviation decreased to 75% in the second quarter of 1998 as
compared to 84% in the second quarter of 1997 and to 76% in the first
half of 1998 from 84% in the first half of 1997 primarily due to
increased sales of general aviation services, particularly increased
charter services.
Consolidated General and Administrative Expenses, as a
percentage of Consolidated Net Sales, increased to 16% in the first half
of 1998 as compared to 14% in the first half of 1997. The increase was
primarily due to new market and brand development costs and to increased
professional fees in the first half of 1998.
<PAGE>
The Company's Earnings from Operations improved by 60% to
$434,000 in the second quarter of 1998 compared to $272,000 in the second
quarter of 1997. The Company's Earnings from Operations were 40% higher
at $763,000 in the first half of 1998 as compared to $546,000 in the
first half of 1997. This improvement in operating earnings of $217,000
was due primarily to an improvement at Ronson Aviation of over $200,000.
The improvements in sales and operating earnings at Ronson Aviation were
primarily due to increased sales of charter services, and the majority of
this increase in charter revenue is from Ronson Aviation's expansion into
jet charter operations with its purchase of the Cessna Citation II.
Ronson Consumer Products' operating earnings increased by 6%.
Interest Expense increased to $167,000 in the second quarter of
1998 from $128,000 in the second quarter of 1997 and to $335,000 in the
first half of 1998 from $251,000 in the first half of 1997 primarily due
to increased long-term debt financing Ronson Aviation's purchase of the
Citation II.
FINANCIAL CONDITION
The Company's Stockholders' Equity improved to $2,400,000 at
June 30, 1998, from $1,864,000 at December 31, 1997. The improvement of
$536,000 in 1998 Stockholders' Equity was primarily due to the Net
Earnings of $454,000 in the first half of 1998. The Company's first half
1998 Net Earnings were also the primary factor improving the Company's
working capital by $407,000 to a deficiency in working capital of
$1,198,000 at June 30, 1998, from $1,605,000 at December 31, 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 13, 1998 /s/Louis V. Aronson II
----------------------
Louis V. Aronson II, President
and Chief Executive Officer
(Signing as Duly Authorized
Officer of the Registrant)
Date: August 13, 1998 /s/Daryl K. Holcomb
-------------------
Daryl K. Holcomb, Vice President
and 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)
Quarter Ended June 30,
1998 1997 *
----------- -----------
Basic:
Net earnings $ 271 $ 161
Less cumulative preferred dividends (2) (9)
----------- -----------
Net earnings applicable to common
stock $ 269 $ 152
=========== ===========
Weighted average number of common
shares outstanding 3,177,175 2,921,046
----------- -----------
Net earnings per common share $ 0.08 $ 0.05
=========== ===========
Diluted:
Net earnings $ 271 $ 161
=========== ===========
Weighted average number of common
shares outstanding 3,177,175 2,921,046
Additional common shares outstanding
resulting from assumed conversion
of preferred stock to common stock 36,518 179,234
Additional common shares outstanding
resulting from the dilutive effect
of outstanding stock options 24,338 8,308
----------- -----------
Total 3,238,031 3,108,588
=========== ===========
Net earnings per common share $ 0.08 $ 0.05
=========== ===========
* Reclassified for comparability.
<PAGE>
RONSON CORPORATION Exhibit 11
CALCULATION OF EARNINGS PER COMMON SHARE
(Dollars in thousands, except per common share data)
Six Months Ended June 30,
1998 1997 *
----------- -----------
Basic:
Net earnings $ 454 $ 339
Less cumulative preferred dividends (4) (18)
----------- -----------
Net earnings applicable to common
stock $ 450 $ 321
=========== ===========
Weighted average number of common
shares outstanding 3,171,876 2,825,361
----------- -----------
Net earnings per common share $ 0.14 $ 0.11
=========== ===========
Diluted:
Net earnings $ 454 $ 339
=========== ===========
Weighted average number of common
shares outstanding 3,171,876 2,825,361
Additional common shares outstanding
resulting from assumed conversion
of preferred stock to common stock 36,518 235,520
Additional common shares outstanding
resulting from the dilutive effect
of outstanding stock options 19,999 9,292
----------- -----------
Total 3,228,393 3,070,173
=========== ===========
Net earnings per common share $ 0.14 $ 0.11
=========== ===========
* Reclassified for comparability.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 224
<SECURITIES> 0
<RECEIVABLES> 1,743
<ALLOWANCES> (68)
<INVENTORY> 2,840
<CURRENT-ASSETS> 5,776
<PP&E> 10,995
<DEPRECIATION> 5,698
<TOTAL-ASSETS> 13,317
<CURRENT-LIABILITIES> 6,974
<BONDS> 3,535
0
0
<COMMON> 3,240
<OTHER-SE> (840)
<TOTAL-LIABILITY-AND-EQUITY> 13,317
<SALES> 11,701
<TOTAL-REVENUES> 11,701
<CGS> 7,004
<TOTAL-COSTS> 7,004
<OTHER-EXPENSES> 3,951
<LOSS-PROVISION> 21
<INTEREST-EXPENSE> 335
<INCOME-PRETAX> 390
<INCOME-TAX> (64)
<INCOME-CONTINUING> 454
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 454
<EPS-PRIMARY> 0.14
<EPS-DILUTED> 0.14
</TABLE>
