AMBASSADOR FOOD SERVICE CORPORATION
P.O. BOX 419586
Kansas City, Missouri 64111
May 10, 1996
Securities and Exchange Commission
Washington, D.C. 20549
Gentlemen:
Pursuant to the requirements of the Securities Exchange Act of
1934, we are transmitting herewith the attached Form 10QSB.
Sincerely,
AMBASSADOR FOOD SERVICE CORP.
Richard A. Mitchell
Richard A. Mitchell, Vice President
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended February 29, 1996
Commission File Number 0-1744
Ambassador Food Services Corporation
Delaware 244-0656199
(State or other jurisdiction of (IRS Employer Identification #)
incorporation or organization)
Post Office Box 419586 3269 Roanoke Road
Kansas City, Missouri 64141-6586 Kansas City, Missouri 64111-3785
(Address of principal executive offices)
816-561-6474
(Registrant's Telephone Number, Including Area Code)
No changes
(Former Name, Former Address, and Former Fiscal Year, if Changed
Since Last Report)
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 twelve 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 ninety days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the close of the period covered by
this report:
Common Stock ($1.00 par value) 702,857 shares outstanding as of
02/29/96.
AMBASSADOR FOOD SERVICES CORPORATION
AND SUBSIDIARIES
I N D E X
Page
Number
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
February 29, 1996 (Unaudited) and June 1, 1995 3
Consolidated Statements of Income
Three months ended February 29, 1996
(Unaudited) and March 2, 1995 (Unaudited) 4
Condensed Consolidated Statements of Cash Flows
Three months ended February 29, 1996
(Unaudited) and March 2, 1995 (Unaudited) 4
Notes to Condensed Consolidated
Financial Statements (Unaudited) 5
Item 2.Management's Discussion and Analysis of
Financial Condition and Results of Operations 5 - 6
Signatures 6
AMBASSADOR FOOD SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
2/29/96 6/01/95
ASSETS
Cash $ 376,341 $ 321,471
Accounts & Notes Receivable 1,692,037 1,703,152
Inventories 573,590 483,283
Other Current 231,494 184,951
Total Current Assets 2,873,462 2,692,857
Property,Plant and Equip.-Net 1,883,276 2,016,964
Location Contracts 1,084,299 1,088,049
Other Long Temr Assets 587,074 528,125
Total Assets 6,428,111 6,325,995
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade Accounts Payable 1,486,721 1,760,915
Accrued Expenses and Other 990,894 627,591
Current Maturities of
Long-Term Debt 363,970 372,515
Line of Credit -0- 493,379
Total Current Liabilities 2,841,585 3,254,400
Line of Credit 586,500 -0-
Long-Term Debt 616,735 779,657
Other Long Term Liabilities 814,598 891,225
Stockholders' Equity:
Common Stock 1,009,230 1,009,230
Additional Paid-In Capital 718,291 718,291
Retained Earnings 190,076 21,696
1,917,597 1,749,217
Less: Treasury Stock 348,904 348,504
1,568,693 1,400,713
Total Liabilities &
Stockholders' Equity $ 6,428,111 $ 6,325,995
Note: The balance sheet at June 1, 1995 has been taken from the
audited financial statements at that date, and condensed. See
accompanying notes to consolidated condensed financial statements.
AMBASSADOR FOOD SERVICES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
2/29/96
Net Cash provided (used)
by continuing operations 427,985
Net Cash provided (used)
by investing activities (303,750)
Net Cash provided (used)
by financing activities ( 69,365)
Net Incr (Decr) in Cash 54,780
Cash:
Beginning of period (June) 321,471
End of period (February) 376,341
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
13 Weeks 13 Weeks 39 Weeks 39 Weeks
Ended Ended Ended Ended
2/29/96 3/02/95 2/29/96 3/02/95
Total Revenues 4,993,649 4,986,127 14,992,896 14,710,375
Costs and Expenses:
Cost of Products Sold 1,982,789 1,980,984 6,023,541 5,828,903
Operating Expenses 1,971,814 2,044,646 5,954,581 5,942,110
Selling and Administrative 836,816 738,689 2,251,926 2,201,645
Depreciation and Amortization 150,807 165,099 454,699 463,657
Interest 54,705 55,420 169,769 138,288
Total Expenses 4,996,931 4,984,838 14,854,516 14,574,603
Income from Cont. Ops. (BIT) (3,282) 1,289 138,380 135,772
Provision for Income Taxes -0- -0- -0- -0-
Net (Loss) Earnings (3,282) 1,289 138,380 135,772
Earnings per Common Share (.02) .01 .20 .19
AMBASSADOR FOOD SERVICES CORPORATION
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The condensed consolidated balance sheet as of February 29, 1996, the
consolidated statements of income for the three month and nine month periods
ended February 29, 1996, and March 2, 1995, and the condensed consolidated
statements of cash flows for the nine month periods then ended have
been prepared by the company, without audit. In the opinion of
management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results
of operations, and cash flows at February 29, 1996 and for all periods
presented have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested
that these condensed consolidated financial statements be read in
conjunction with the financial statements and notes thereto included in
the Company's June 1, 1995 annual report to shareholders. The results
of operations for the periods ended February 29, 1996 and March 2, 1995
are not necessarily indicative of the operating results for the full year.
2. INVENTORIES
Inventories consist of raw materials and supplies.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
Revenues for the Third Quarter of the fiscal year ending February 29,
1996 show a modest increase from the same period for 1995. This increase
reflects increasing sales in the Midwest Food Service Operations offset by
lower sales in the Company's New York Food Service and Squire Maintenance
operations (down $217,561). This modest growth in sales does not reflect the
impact of an excellent sales effort during the Third Quarter as a number of
new accounts contracted for service and will begin producing revenues in the
early part of the Fourth Quarter. Additionally, subsequent to the end of the
period an acquisition of the accounts of a competitor in the Des Moines
market was completed. Sales of the acquired operation are projected to be over
$40,000 per week.
Operating cost remained near prior year levels during the Third Quarter.
Management continues to seek to improve margins through increased pricing in the
Ambassador accounts.
Working Capital continued to improve during the Third Quarter as growth in
current assets has been funded through Long Term sources of funds. Management
anticipates a temporary strain on cash flow as it absorbs the acquisition in
Des Moines because the Company continues to have limited capital resources at
its disposal.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, there-unto duly
authorized.
AMBASSADOR FOOD SERVICES CORPORATION
(Registrant)
By
Arthur D. Stevens Date
President/Chairman of the Board
By
Richard A. Mitchell Date
Assistant Secretary
[ARTICLE] 5
<TABLE>
<S> <C>
[PERIOD-TYPE] OTHER
[FISCAL-YEAR-END] MAY-30-1996
[PERIOD-END] FEB-29-1996
[CASH] 376,341
[SECURITIES] 0
[RECEIVABLES] 1,692,037
[ALLOWANCES] 0
[INVENTORY] 573,590
[CURRENT-ASSETS] 2,873,462
[PP&E] 7,520,690
[DEPRECIATION] 5,637,414
[TOTAL-ASSETS] 6,428,111
[CURRENT-LIABILITIES] 2,841,585
[BONDS] 0
[COMMON] 1,009,230
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[OTHER-SE] 0
[TOTAL-LIABILITY-AND-EQUITY] 6,428,111
[SALES] 4,993,649
[TOTAL-REVENUES] 4,993,649
[CGS] 1,982,789
[TOTAL-COSTS] 4,942,226
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 54,705
[INCOME-PRETAX] (3,282)
[INCOME-TAX] 0
[INCOME-CONTINUING] (3,282)
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (3,282)
[EPS-PRIMARY] 0
[EPS-DILUTED] 0
</TABLE>
