<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This Schedule contains summary financial information extracted from the
Form 10-QSB of American Metals Service, Inc. for the three months ended November
30, 1998 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000319016
<NAME> AMERICAN METALS SERVICES, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> NOV-30-1998
<CASH> 2,158
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,158
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,158
<CURRENT-LIABILITIES> 4
<BONDS> 0
0
0
<COMMON> 20
<OTHER-SE> 2,134
<TOTAL-LIABILITY-AND-EQUITY> 2,158
<SALES> 0
<TOTAL-REVENUES> 25
<CGS> 0
<TOTAL-COSTS> 16
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 9
<INCOME-TAX> 0
<INCOME-CONTINUING> 9
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: November 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File No.: 0-10093
AMERICAN METALS SERVICE, INC.
(Exact name of small business issuer as specified in its charter)
Florida 59-1224913
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
376 Main Street, P.O. Box 74, Bedminster, New Jersey 07921
(Address of principal executive offices) (Zip Code)
(908) 234-0078
(Issuer's telephone number)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 _____
State the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date: As of December 31, 1998, the
issuer had 1,966,748 shares of its common stock, par value $.01 per share,
outstanding.
Transitional Small Business Disclosure Format (check one):
Yes No X
<PAGE>
PART I - FINANCIAL INFORMATION
- ------ ---------------------
Item 1.- Financial Statements
- ------ ---------------------
<TABLE>
<CAPTION>
AMERICAN METALS SERVICE, INC.
BALANCE SHEET
(Unaudited)
November 30,
1998
------------
($000 Omitted)
<S> <C>
ASSETS
Current assets:
Cash and cash equivalents, including
U.S. treasury bills of $2,037,000 $2,158
------
Total current assets $2,158
======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 4
------
Total current liabilities 4
------
Stockholders' equity:
Common stock, $.01 par value, 6,000,000
shares authorized, 1,966,767 outstanding 20
Additional capital in excess of par value 3,067
Accumulated deficit ( 933)
------
Total stockholders' equity 2,154
------
Total liabilities and stockholders'
equity $2,158
======
See accompanying note to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN METALS SERVICE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
For the three months
ended November 30,
1998 1997
------ ------
($000 Omitted,
Except Per Share Data)
<S> <C> <C>
Interest income $ 25 $ 27
General and administrative expenses 16 16
------ ------
Income before income taxes 9 11
Provision for income taxes - -
------ ------
Net income $ 9 $ 11
====== ======
Basic and diluted net income per share $ .01 $ .01
====== ======
Weighted average number of shares
outstanding (in 000's) 1,969 1,951
====== ======
See accompanying note to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN METALS SERVICE, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
For the three months ended
November 30, 1998
---------------------------
1998 1997
------ ------
($000 Omitted)
<S> <C> <C>
Cash flows from operating activities:
Net cash provided by
operating activities $ 10 $ 7
Cash flows from financing activities:
Purchase of common stock ( 3) -
------ ------
Net increase in cash and cash
equivalents 7 7
Cash and cash equivalents at beginning
of the period 2,151 2,111
------ ------
Cash and cash equivalents at end of
the period $2,158 $2,118
====== ======
Reconciliation of net income to net
cash provided by operating activities:
Net income $ 9 $ 11
Adjustments to reconcile net income
to net cash provided by
operating activities:
Change in accounts payable
and accrued liabilities 1 ( 4)
------ ------
Net cash provided by operating
activities $ 10 $ 7
====== ======
See accompanying note to financial statements.
</TABLE>
<PAGE>
AMERICAN METALS SERVICE, INC.
NOTE TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
---------------------
The accompanying unaudited financial statements of American Metals
Service, Inc. (the "Company") as of November 30, 1998 and for the three months
ended November 30, 1998 and 1997 reflect all material adjustments which, in the
opinion of management, are necessary for a fair presentation of results for the
interim periods. Certain information and footnote disclosures required under
generally accepted accounting principles have been condensed or omitted pursuant
to the rules and regulations of the Securities and Exchange Commission, although
the Company believes that the disclosures are adequate to make the information
presented not misleading. These financial statements should be read in
conjunction with the year-end financial statements and notes thereto included in
the Company's Annual Report on Form 10-KSB for the year ended August 31, 1998,
as filed with the Securities and Exchange Commission.
The results of operations for the three months ended November 30, 1998
and 1997 are not necessarily indicative of the results to be expected for the
entire fiscal year or for any other period.
<PAGE>
Item 2. - Management's Discussion and Analysis or Plan of Operations
----------------------------------------------------------
Results of Operations
- ---------------------
Until the fourth quarter of fiscal 1992, the Company was engaged in the
wholesale distribution of aluminum alloys, steel and other specialty metals. The
Company has liquidated the assets of its former business and is actively seeking
an acquisition with the goal of becoming an operating company. In the interim,
available cash is being invested in U.S. Treasury Securities. Interest income
for the quarters ended November 30, 1998 and 1997, was approximately $25,000 and
$ 27,000 respectively. This decrease was due to lower interest rates on the
Company's U.S. Treasury Securities.
For the three months ended November 30, 1998 and 1997, general and
administrative expenses were $16,000. A management fee of $12,500 per quarter is
paid to an affiliated company for accounting, financial and administrative
management. This fee is based on the affiliate's estimated costs, and management
believes that the allocation method is reasonable. The remaining general and
administrative expenses for the quarters ended November 30, 1998 and 1997
consist of stockholder, insurance and other miscellaneous expenses.
Liquidity and Capital Resources
- -------------------------------
At November 30, 1998, cash and cash equivalents and net working capital
were approximately $2,158,000 and $2,154,000, respectively. U.S. Treasury
Securities of approximately $2,037,000 mature at various dates through February
11, 1999 and bear interest rates ranging from 3.96% to 4.92%. Management
believes the Company's cash and cash equivalents and net working capital are
adequate for its remaining business activities and for the costs of seeking an
acquisition of an operating business. The net book value of the Company at
November 30, 1998 is approximately $1.10 per share.
<PAGE>
Year 2000 Matters
- -----------------
The Year 2000 Issue is the result of computer programs being written
using two digits rather than four to define the applicable year. Any of the
Company's computer programs that have time- sensitive software may recognize a
date using "00" as the year 1900 rather than the year 2000. Miscalculations
could cause disruptions of operations, including, among other things, a
temporary inability to process transactions or engage in similar normal business
activities.
Management has determined that the Year 2000 Issue will not pose
significant operational problems for its internal computer systems. The Company
uses "off the shelf" accounting software to maintain its accounting system. All
of these software applications are already Year 2000 compliant. The cost of
being Year 2000 compliant was nominal. All costs associated with this conversion
have been expensed as incurred.
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
Item 6. - Exhibits and Reports on Form 8-K
- ------ --------------------------------
(a) Exhibits
--------
(27). Financial Data Schedule for the three months
ended November 30, 1998.
(b) Reports on Form 8-K
-------------------
No reports on Form 8-K were filed during the quarter for
which this Form 10-QSB is filed.
<PAGE>
SIGNATURE
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
AMERICAN METALS SERVICE, INC.
Dated: January 14, 1999 By:/s/ Mark Koscinski
------------------------------
Mark Koscinski
Vice President and Secretary
(Principal Accounting Officer)
