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 March 31, 1999
--------------
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 March 31, 1999, there were 3,197,736 shares of the registrant's common
stock outstanding.
<PAGE>
RONSON CORPORATION
FORM 10-Q INDEX
---------------
PART I - FINANCIAL INFORMATION:
CONSOLIDATED BALANCE SHEETS:
MARCH 31, 1999 AND DECEMBER 31, 1998
CONSOLIDATED STATEMENTS OF EARNINGS:
QUARTER ENDED MARCH 31, 1999 AND 1998
CONSOLIDATED STATEMENTS OF CASH FLOWS:
QUARTER ENDED MARCH 31, 1999 AND 1998
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>
March 31, December 31,
1999 1998
------------ ------------
ASSETS (unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 26 $ 146
Accounts receivable, net 1,605 1,777
Inventories:
Finished goods 2,302 2,189
Work in process 58 66
Raw materials 515 429
-------- --------
2,875 2,684
Other current assets 1,455 1,447
-------- --------
TOTAL CURRENT ASSETS 5,961 6,054
-------- --------
Property, plant and equipment, at cost:
Land 19 19
Buildings and improvements 4,118 3,740
Machinery and equipment 7,496 7,456
Construction in progress 155 471
-------- --------
11,788 11,686
Less accumulated depreciation and amortization 5,996 5,879
-------- --------
5,792 5,807
Other assets 2,784 2,741
-------- --------
$ 14,537 $ 14,602
======== ========
</TABLE>
<PAGE>
RONSON CORPORATION AND ITS WHOLLY OWNED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
----------------------------------------------------
(in thousands of dollars)
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
------------ ------------
(unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt $ 1,980 $ 2,209
Current portion of long-term debt and leases 490 489
Accounts payable 2,262 1,941
Accrued expenses 1,811 1,790
Current liabilities of discontinued operations 1,638 1,833
-------- --------
TOTAL CURRENT LIABILITIES 8,181 8,262
-------- --------
Long-term debt and leases 3,631 3,761
Other long-term liabilities 443 434
STOCKHOLDERS' EQUITY:
Common stock 3,260 3,260
Additional paid-in capital 28,991 29,007
Accumulated deficit (27,306) (27,442)
Accumulated other comprehensive deficit (1,069) (1,086)
-------- --------
3,876 3,739
Less cost of treasury shares 1,594 1,594
-------- --------
TOTAL STOCKHOLDERS' EQUITY 2,282 2,145
-------- --------
$ 14,537 $ 14,602
======== ========
</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
March 31,
-------------------
1999 1998
---- ----
<S> <C> <C>
NET SALES $ 5,609 $ 5,435
-------- --------
Cost and expenses:
Cost of sales 3,231 3,194
Selling, shipping and advertising 929 870
General and administrative 953 903
Depreciation and amortization 137 139
-------- --------
5,250 5,106
-------- --------
EARNINGS FROM OPERATIONS 359 329
-------- --------
Other expense:
Interest expense 161 168
Other-net 22 10
-------- --------
183 178
-------- --------
EARNINGS BEFORE INCOME TAXES 176 151
Income tax expense (benefits)-net 40 (32)
-------- --------
NET EARNINGS $ 136 $ 183
======== ========
NET EARNINGS PER COMMON SHARE:
Basic $ 0.04 $ 0.06
======== ========
Diluted $ 0.04 $ 0.06
======== ========
</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>
Quarter Ended
March 31,
------------------
1999 1998
------- -------
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings $ 136 $ 183
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 137 139
Deferred income tax expense (benefits) 26 (38)
Increase in cash from changes in current assets
and current liabilities 381 493
Discontinued operations (246) (78)
Other (76) 33
------- -------
Net cash provided by operating activities 358 732
------- -------
Cash Flows from Investing Activities:
Net cash used in investing activities,
capital expenditures (120) (31)
------- -------
Cash Flows from Financing Activities:
Proceeds from short-term debt -- 40
Proceeds from exercise of stock options -- 17
Payments of short-term debt (229) (592)
Payments of long-term debt (103) (103)
Payments of long-term lease obligations (26) (23)
------- -------
Net cash used in financing activities (358) (661)
------- -------
Net increase (decrease) in cash (120) 40
Cash at beginning of period 146 32
------- -------
Cash at end of period $ 26 $ 72
======= =======
</TABLE>
See notes to consolidated financial statements.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED MARCH 31, 1999 (unaudited)
Note 1: ACCOUNTING POLICIES
Basis of Financial Statement Presentation - The information as of and for
the three months ended March 31, 1999 and 1998, is unaudited. In the opinion of
management, all adjustments necessary for a fair presentation of the results of
such interim periods have been included.
Discontinued Operations - In December 1989 Ronson Corporation (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: PER COMMON SHARE DATA
The calculation and reconciliation of Basic and Diluted Earnings per Common
Share were as follows (in thousands except per share data):
<TABLE>
<CAPTION>
Quarter Ended March 31,
------------------------------------------------------
1999 1998
-------------------------- --------------------------
Per Per
Share Share
Earnings Shares Amount Earnings Shares Amount
-------- ------ ------ -------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net earnings $ 136 $ 183
Less accrued
dividends on
preferred stock (2) (2)
-------- --------
Basic 134 3,197 $ 0.04 181 3,166 $ 0.06
====== ======
Effect of dilutive
securities:
Stock options 5 17
Cumulative
convertible
preferred stock 2 37 2 37
-------- ----- -------- -----
Diluted $ 136 3,239 $ 0.04 $ 183 3,220 $ 0.06
======== ===== ====== ======== ===== ======
</TABLE>
There were no securities that were excluded in the computation of Diluted
Earnings Per Share because they were anti-dilutive in the periods presented.
<PAGE>
Note 3: SHORT-TERM DEBT
In 1995 Ronson Consumer Products Corporation ("RCPC") entered into an
agreement with Summit Bank ("Summit") for a Revolving Loan. On May 13, 1999,
RCPC and Summit extended RCPC's Revolving Loan to June 30, 2002. The extended
agreement also amended certain other terms of the Revolving Loan agreement. The
Revolving Loan of $1,133,000 at March 31, 1999, provides a line of credit up to
$2,500,000 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 loan
availability is being reduced in monthly amounts of $20,833 to June 1999. With
the extension of the Revolving Loan and the Mortgage Loan agreement refinancing
on May 13, 1999 (refer to Note 4 below), Summit will provide additional loan
availability of approximately $200,000 to be amortized through June 30, 2000.
The outstanding amount under the agreement for the additional available loan of
$63,000 as of March 31, 1999, is included in the balance of the Revolving Loan
in the paragraph above.
In 1995 Ronson Corporation of Canada, Ltd. ("Ronson-Canada") entered into
an agreement with Canadian Imperial Bank of Commerce ("CIBC") for a line of
credit of C$250,000. The agreement was extended to 1999. The Revolving Loan
balance of $99,000 (C$149,000) at March 31, 1999, of Ronson-Canada under the
line of credit is secured by the accounts receivable and inventory of
Ronson-Canada. The Revolving Loan currently bears interest at the rate of 1.25%
above CIBC's prime rate.
At March 31, 1999, Ronson Aviation, Inc. ("Ronson Aviation") had notes
payable consisting of the following: 1) $670,000 due to Raytheon Aircraft Credit
Corp.; and 2) $78,000 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 4 below regarding the Term Loan).
The Revolving Loan, which had not yet been utilized at March 31, 1999, provides
a line of credit up to $400,000 to Ronson Aviation based on the level of its
accounts receivable. On May 13, 1999, the Revolving Loan was extended for two
years to June 30, 2002.
Note 4: LONG-TERM DEBT
On May 13, 1999, RCPC and Summit entered into an agreement which refinanced
the existing Mortgage Loan agreement on the RCPC property. The Mortgage Loan
balance was $1,211,000 at March 31, 1999. The amended Mortgage Loan agreement
provides for additional funds of approximately $550,000, is payable in sixty
monthly installments of $17,218, including interest, and a final installment
on May 1, 2004. The loan bears interest at a fixed rate of 8.39%.
In August 1997 Ronson Aviation entered into a Term Loan agreement with
Summit in the original amount of $285,000. The Term Loan is payable in monthly
installments of $4,750 plus interest. On May 13, 1999, Ronson Aviation and
Summit amended the Term Loan agreement to extend the payment terms for two years
to June 30, 2002. The Term Loan balance was $195,000 at March 31, 1999.
Ronson Aviation has six additional term loans payable to Summit with
balances at March 31, 1999, totalling approximately $2,280,000. The loans are
collateralized by specific aircraft.
<PAGE>
In September 1998 Ronson Aviation entered into a Promissory Term Note
agreement with Texaco Refining and Marketing, Inc. in the original amount of
$250,000. The Promissory Term Note, with a balance of $240,000 at March 31,
1999, is payable in 120 monthly installments of $2,775 including interest,
through September 14, 2008. The Promissory Term Note bears interest at the rate
of 6% per annum. The proceeds of the Promissory Term Note are being used to
finance the construction of Ronson Aviation's new aircraft fueling facilities.
The Promissory Term Note is secured by the leased premises of the fueling
facilities complex and all related equipment, and also contains restrictive
covenants.
Note 5: CONTINGENCIES
In September 1998 the Company received a "de minimis" settlement offer
("Settlement Offer") from the United States Environmental Protection Agency
("USEPA") related to waste disposed of prior to 1980 at a landfill in Monterey
Park, California, which the USEPA had 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. As a result, in
August 1995 the Company received a General Notice Letter from the 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 at the Site. In 1981 the Company sold the Duarte,
California, hydraulic subsidiary, Ronson Hydraulic Units Corporation
("RHUCOR-CA"), to the Boeing Corporation. The USEPA has notified a subsequent
owner of the facility that the USEPA considers the subsequent owner also liable
for the costs the USEPA determines to be due as a result of RHUCOR-CA's waste
having been sent to the Site. The USEPA may also consider financial factors in
determining the final amount due. In the fourth quarter of 1998 the Company
offered to settle the matter for six equal payments totalling $90,000, to be
paid semiannually over three years. Although the USEPA's Settlement Offer
includes various options at costs of from $307,000 to $376,000, and the Company
has offered to settle the matter for $90,000, the Company's final contribution,
if any, is not yet determinable. The Company has accrued the amount of its offer
and related expenses.
In February 1999 Ronson Aviation completed the installation of a new 58,500
gallon fueling facility at a total cost of approximately $430,000, and ceased
use of most of its former underground storage tanks. The underground storage
tanks formerly used by Ronson Aviation will be closed in place or removed in
1999 as required by the NJDEP. The extent of any soil and groundwater
contamination cannot be determined until testing has been undertaken. Ronson
Aviation is in negotiations with the lessor, the County of Mercer ("Mercer"), as
to the allocation of responsibility for the costs of meeting regulatory
requirements as to the former tank system because the former tanks are owned by
Mercer and most of the tanks pre-date the lease between Ronson Aviation and
Mercer. Since the ultimate allocation of costs cannot be estimated at this time,
the effect on the Company's financial position or results of future operations
cannot be estimated at this time. Management does not believe that the effect
will be material.
In the third quarter of 1998, a mechanical failure at Ronson Aviation
resulted in an overfill of a fuel tank and a release of about 700 gallons of jet
fuel. The Company has taken appropriate action to address the release and to
meet NJDEP requirements. Ronson Aviation has accrued projected future costs
related to the release. Until all required remediation and sampling is
completed, the total cost of the release cannot be determined. The Company's
insurance carriers have been notified of the claim, and management believes that
the Company will receive a reimbursement for the cost from insurance, but the
Company has not recorded a receivable for that reimbursement.
<PAGE>
The Company is involved in various 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 6: INDUSTRY SEGMENTS INFORMATION
The Company has two reportable segments: consumer products and aviation
services. The Company's reportable segments are strategic business units that
offer different products and services.
Financial information by industry segment is summarized below (in
thousands):
<TABLE>
<CAPTION>
Quarter Ended March 31,
1999 1998
---- ----
<S> <C> <C>
Net sales:
Consumer Products $ 3,978 $ 3,727
Aviation Services 1,631 1,708
------- -------
Consolidated $ 5,609 $ 5,435
======= =======
Earnings (loss) from operations:
Consumer Products $ 662 $ 615
Aviation Services 74 103
------- -------
Total reportable segments 736 718
Corporate and others (377) (389)
------- -------
Consolidated $ 359 $ 329
======= =======
Earnings (loss) before intercompany
charges and taxes:
Consumer Products $ 616 $ 556
Aviation Services (3) 46
------- -------
Total reportable segments 613 602
Corporate and others (437) (451)
------- -------
Consolidated $ 176 $ 151
======= =======
</TABLE>
Note 7: COMPREHENSIVE INCOME
Comprehensive Income is the change in equity during a period from
transactions and other events from nonowner sources. As required, the Company
classifies items of other comprehensive income in financial statements and
displays the accumulated balance of other comprehensive income (deficit)
separately in the equity section of the Consolidated Balance Sheets.
<PAGE>
Changes in the components of Other Comprehensive Income (Loss) and in
Accumulated Other Comprehensive Deficit for the first quarters ended March 31,
1999 and 1998, were as follows (in thousands):
<TABLE>
<CAPTION>
Foreign Currency Minimum Pension Accumulated
Translation Liability Other Comprehensive
Adjustment Adjustment Deficit
---------------- --------------- -------------------
<S> <C> <C> <C>
Balance at
December 31, 1998 $ (96) $ (990) $ (1,086)
Change during first
quarter 1999 4 13 17
--------- --------- ---------
Balance at
March 31, 1999 $ (92) $ (977) $ (1,069)
========= ========= =========
Balance at
December 31, 1997 $ (61) $ (1,545) $ (1,606)
Change during first
quarter 1998 5 40 45
--------- --------- ---------
Balance at
March 31, 1998 $ (56) $ (1,505) $ (1,561)
========= ========= =========
</TABLE>
Note 8: STATEMENTS OF CASH FLOWS
Certificates of deposit that have a maturity of 90 days or more are not
considered cash equivalents for purposes of the accompanying Consolidated
Statements of Cash Flows.
Supplemental disclosures of cash flow information are as follows (in
thousands):
<TABLE>
<CAPTION>
Quarter Ended
March 31,
1999 1998
---- ----
<S> <C> <C>
Cash Payments for Interest $141 $169
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS
First Quarter 1999 Compared to First Quarter 1998.
The Company's Net Sales increased by 3% in the first quarter of 1999 to
$5,609,000 from $5,435,000 in the first quarter of 1998. The Company's Earnings
from Operations improved by 9% to $359,000 in the first quarter of 1999 from
$329,000 in the first quarter of 1998.
Earnings before Income Taxes increased by 17% in the first quarter of 1999
to $176,000 from $151,000 in the first quarter of 1998. Net Earnings in the
first quarter of 1999 were $136,000 as compared to $183,000 in the first quarter
of 1998.
The 1999 Net Earnings were lower than the 1998 Net Earnings due to an
increase in deferred income tax expense in the first quarter of 1999, while in
1998 there were deferred income tax benefits. Net Earnings in the first quarter
of 1999 were net of deferred income tax expense of $26,000, while the Net
Earnings in the first quarter of 1998 included deferred income tax benefits of
$38,000, a combined increase in deferred income tax expense of $64,000.
The Company's Consolidated Net Sales increased to $5,609,000 in the first
quarter of 1999 from $5,435,000 in the first quarter of 1998. Net Sales of
consumer products at Ronson Consumer Products Corporation, Woodbridge, New
Jersey, and Ronson Corporation of Canada, Ltd., Mississauga, Ontario (together
"Ronson Consumer Products"), increased by 7% in the first quarter of 1999 as
compared to the first quarter of 1998 primarily due to increased shipments of
lighters and accessory products. Net Sales at Ronson Aviation, Trenton, New
Jersey, decreased by 5% in the first quarter of 1999 as compared to the first
quarter of 1998, primarily because of lower aircraft sales in the first quarter
of 1999.
Consolidated Cost of Sales, as a percentage of Consolidated Net Sales, was
58% in the first quarter of 1999 as compared to 59% in the first quarter of
1998. The Cost of Sales percentage at Ronson Consumer Products was unchanged at
50% in the first quarters of both 1999 and 1998. The Cost of Sales percentage at
Ronson Aviation decreased to 76% in the first quarter of 1999 as compared to 77%
in the first quarter of 1998 primarily due to the change in the mix of products
sold as the result of the lower 1999 aircraft sales.
Consolidated Selling, Shipping and Advertising Expenses, as a percentage of
Consolidated Net Sales, increased slightly to 17% in the first quarter of 1999
from 16% in the first quarter of 1998. Consolidated General and Administrative
Expenses, as a percentage of Consolidated Net Sales, was unchanged at 17% in the
first quarter of both 1999 and 1998.
The 3% increase in Consolidated Net Sales and the lower Consolidated Cost
of Sales percentage resulted in a 9% increase in Earnings from Operations and a
17% increase in Earnings before Income Taxes in the first quarter of 1999 as
compared to the first quarter of 1998.
<PAGE>
FINANCIAL CONDITION
The Company's Stockholders' Equity improved to $2,282,000 at March 31,
1999, from $2,145,000 at December 31, 1998. The improvement of $137,000 in 1999
Stockholders' Equity was primarily due to the Net Earnings in the first quarter
of 1999. The Company had a deficiency in working capital of $2,220,000 at March
31, 1999, as compared to $2,208,000 at December 31, 1998.
In May 1999 the Company and its principal lender, Summit, reached agreement
to amend the Revolving Loans, Mortgage Loan and Term Loan with RCPC and Ronson
Aviation. The amendments include a new Mortgage Loan with RCPC which provides
additional funds of approximately $550,000 to RCPC and extends the expiration of
the Mortgage Loan to May 1, 2004. The amendments also provide for extensions of
the RCPC Revolving Loan, the Ronson Aviation Revolving Loan, and the Ronson
Aviation Term Loan for two years to June 30, 2002. The RCPC Revolving Loan is
amended to also provide approximately an additional $200,000 in available
borrowing, to be amortized through June 30, 2000. A substantial majority of the
total of $750,000 in additional funds will be utilized to meet the cash
requirements of the Prometcor environmental clearance.
During the first quarter and April 1999, Prometcor received clearance from
the NRC and NJDEP to demolish the buildings on the Prometcor property which had
not previously been released. The demolition was completed in April. Progress
with the remaining tasks to complete Prometcor's environmental clearance
continues. The full extent of the costs and time required for completion is not
determinable until the remediation and confirmation testing of the properties
have been completed and accepted by the NJDEP and NRC.
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.
YEAR 2000 ISSUES
The Company's information technology systems have been reviewed for Year
2000 ("Y2K") readiness, and actions have been taken to update all material
systems. The information technology systems used at Ronson Aviation were
recently acquired and have been certified Y2K compliant. The necessary upgrades
to the information technology systems utilized by the Company and Ronson
Consumer Products have been acquired. The implementation of these upgraded
systems is substantially complete and is expected to be tested in the second and
third quarters of 1999.
The Company has also reviewed its non-information technology systems. The
Company believes there are no material concerns. This assessment includes Ronson
Aviation's aircraft and related equipment.
The Company has assessed its material relationships with third parties.
Based on information received from the Company's third parties, the Company
believes that those third parties with which the Company has a material
relationship will not be disrupted by any Y2K issues.
<PAGE>
The majority of the costs to address the Company's Y2K issues have been
incurred and have not been material. Any costs remaining are not expected to be
material.
Because of the current status of the Company's preparations related to the
Y2K issues, the Company does not believe there is a material risk of losses
related to the Y2K issues.
For those systems for which compliance has not yet been demonstrated, the
Company is developing contingency plans even though none of those systems are
material to the Company's operations.
FORWARD-LOOKING STATEMENTS
This Management's Discussion and Analysis of Results of Operations and
Financial Condition and other sections of this report contain forward-looking
statements that anticipate results based on management's plans that are subject
to uncertainty. The use of the words "expects", "plans", "anticipates" and other
similar words in conjunction with discussions of future operations or financial
performance identifies these statements.
Forward-looking statements are based on current expectations of future
events. The Company cannot ensure that any forward-looking statement will be
accurate, although the Company believes that it has been reasonable in its
expectations and assumptions. Investors should realize that if underlying
assumptions prove inaccurate or that unknown risks or uncertainties materialize,
actual results could vary materially from our projections. The Company assumes
no obligation to update any forward-looking statements as a result of future
events or developments.
Investors are cautioned not to place undue reliance on such statements that
speak only as of the date made. Investors also should understand that it is not
possible to predict or identify all such factors and should not consider this to
be a complete statement of all potential risks and uncertainties.
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: May 13, 1999 /s/ Louis V. Aronson II
----------------------------------------
Louis V. Aronson II, President
and Chief Executive Officer
(Signing as Duly Authorized
Officer of the Registrant)
Date: May 13, 1999 /s/ Daryl K. Holcomb
----------------------------------------
Daryl K. Holcomb, Vice President
and Chief Financial Officer,
Controller and Treasurer
(Signing as Chief Financial
Officer of the Registrant)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 26
<SECURITIES> 0
<RECEIVABLES> 1,690
<ALLOWANCES> (85)
<INVENTORY> 2,875
<CURRENT-ASSETS> 5,961
<PP&E> 11,788
<DEPRECIATION> 5,996
<TOTAL-ASSETS> 14,537
<CURRENT-LIABILITIES> 8,181
<BONDS> 3,631
0
0
<COMMON> 3,260
<OTHER-SE> (978)
<TOTAL-LIABILITY-AND-EQUITY> 14,537
<SALES> 5,609
<TOTAL-REVENUES> 5,609
<CGS> 3,231
<TOTAL-COSTS> 3,231
<OTHER-EXPENSES> 2,030
<LOSS-PROVISION> 11
<INTEREST-EXPENSE> 161
<INCOME-PRETAX> 176
<INCOME-TAX> 40
<INCOME-CONTINUING> 136
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 136
<EPS-PRIMARY> 0.04
<EPS-DILUTED> 0.04
</TABLE>
