AMBASSADOR FOOD SERVICE CORPORATION
P.O. BOX 419586
Kansas City, Missouri 64111
January 30, 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 November 30, 1995
Commission File Number 0-1744
Ambassador Food Services Corporation
Delaware 44-0656199
(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
1/15/96.
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
November 30,1995 (Unaudited) and June 1, 1995 3
Consolidated Statements of Income
Six months ended November 30, 1995
(Unaudited) and December 1, 1994 (Unaudited) 4
Condensed Consolidated Statement of Cash Flows
Six months ended November 30, 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
Signatures 6
AMBASSADOR FOOD SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
11/30/95 6/01/95
ASSETS
Cash $ 248,799 $ 321,471
Accounts Receivable 1,228,663 1,703,152
Inventories 543,489 483,283
Other Current 204,540 184,951
Total Current Assets 2,225,491 2,692,857
Property,Plant and Equip.-Net 2,006,560 2,016,964
Location Contracts 1,085,549 1,088,049
Other Long Term Assets 562,355 528,125
Total Assets 5,879,955 6,325,995
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade Accounts Payable 1,477,488 1,760,915
Accrued Expenses and Other 684,333 627,591
Current Maturities of
Long-Term Debt 430,212 372,515
Line of Credit -0- 493,379
Total Current Liabilities 2,592,033 3,254,400
Line of Credit 189,451 -0-
Long-Term Debt 667,133 779,657
Other Long Term Liabilities 889,360 891,225
Stockholder's Equity:
Common Stock 1,009,230 1,009,230
Additional Paid-In Capital 718,291 718,291
Retained Earnings 163,361 21,696
1,890,882 1,749,217
Less: Treasury Stock 348,904 348,504
1,541,978 1,400,713
Total Liab. & Stckhldrs' Eq. $ 5,879,955 $ 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)
11/30/95
Net Cash provided (used)
by continuing operations 559,761
Net Cash provided (used)
by investing activities (281,809)
Net Cash provided (used)
by financing activities (350,624)
Net Incr (Decr) in Cash (72,672)
Cash:
Beginning of period (June) 321,471
End of period (November) 248,799
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
11/30/95 12/01/94 11/30/95 12/01/94
Total Revenues 5,137,003 5,079,727 9,999,247 9,724,248
Costs and Expenses:
Cost of Products Sold 2,070,708 1,985,460 4,040,752 3,847,919
Operating Expenses 2,037,521 2,002,252 3,982,767 3,897,464
Selling and Administrative 691,701 768,805 1,415,107 1,462,956
Depreciation and Amortization 151,381 157,143 303,892 298,558
Interest 58,827 44,825 115,064 82,868
Total Expenses 5,010,138 4,958,485 9,857,582 9,589,765
Income from cont. ops. (BIT) 126,865 121,242 141,665 134,483
Provision for Income Taxes -0- -0- -0- -0-
Net Earnings 126,865 121,242 141,665 134,483
Earnings per common share .18 .17 .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 November 30, 1995, the
consolidated statements of income for the three month and six month periods
ended November 30, 1995 and December 1, 1994, and the condensed consolidated
statement of cash flows for the six month period 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 November 30, 1995 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 November 30, 1995 and December 1,
1994 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
Second quarter operating results reflected a profit of $126,865 up $5,623
from results in the same period of the prior year. This improvement reflects
a slightly higher sales level as sales reached $5,137,003 versus $5,079,727
in the first half of fiscal 1995, a 1.13% increase. This sales increase
results from stronger sales in the Company's food service operations despite
lower sales in the maintenance segment. Maintenance sales were $99,488
lower for the quarter due to the sale of the Company's operations in
Connecticut during the fourth quarter of fiscal 1995. The Company
anticipates continued growth through year-end as the prospects for new
business in the food services operations seem very favorable. Additionally,
the Company is in discussions with a number of its competitors regarding
the possible acquisitions of their businesses. These discussions are at
various stages and while their results are still uncertain, conditions are
favorable for the completion of a major transaction in the near term.
The Company's working capital position has improved during the first
half of fiscal 1996 by $195,001. This is primarily due to the renewal
of the Company's working capital line of credit on a long term basis.
Additionally, accounts payable have been reduced by $283,427 which reflects
the Company's use of available capital resources to improve product costs
by purchasing on shorter terms from suppliers.
During the second quarter of fiscal 1996 the Company renewed its line
of credit agreement with a financing company which reduced its costs under
the agreement from the prime rate plus 8% to the prime rate plus 3 1/2%.
The renewal of this line of credit provides for a continuing source of
capital to continue the strengthening and growth of the Company's operations
with a substantially lower cost of funds than experienced in the prior year.
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
