AMBASSADOR FOOD SERVICE CORPORATION
P.O. BOX 419586
Kansas City, Missouri 64111
May 15, 1998
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 August 28, 1997
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 NO X
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) 745,456 shares outstanding as of
8/28/97.
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
August 28, 1997 (Unaudited) and May 29, 1997 3
Consolidated Statements of Income
Three months ended August 28, 1997
(Unaudited) and August 29, 1996 (Unaudited) 4
Condensed Consolidated Statements of Cash Flows
Three months ended August 28, 1997 (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
8/28/98 5/29/97
ASSETS
Cash $ 378,510 $ 370,340
Accounts & Notes Receivable 1,586,157 1,697,773
Inventories 545,903 548,477
Other Current 455,099 568,049
Total Current Assets 2,965,699 3,184,639
Property,Plant and Equip.-Net 2,057,422 2,197,830
Location Contracts 263,806 267,530
Other Long Term Assets 1,690,651 1,665,863
Total Assets 6,977,578 7,315,862
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade Accounts Payable 2,042,598 2,194,861
Accrued Expenses and Other 1,260,979 1,249,170
Current Maturities of
Long-Term Debt 564,194 582,863
Line of Credit 702,698 1,142,213
Total Current Liabilities 4,570,469 5,169,107
Long-Term Debt 1,485,917 1,171,617
Other Long Term Liabilities 447,811 463,706
Stockholders' Equity:
Common Stock 1,009,230 1,009,230
Additional Paid-In Capital 718,291 718,291
Retained Earnings (932,704) (917,528)
794,817 809,993
Less: Treasury Stock 321,436 298,561
473,381 511,423
Total Liabilities &
Stockholders' Equity $ 6,977,578 $ 7,315,862
Note: The balance sheet at May 29, 1997 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)
8/28/97
Net Cash provided (used)
by continuing operations 140,691
Net Cash provided (used)
by investing activities 34,238
Net Cash provided (used)
by financing activities (166,759)
Net Incr (Decr) in Cash 8,170
Cash:
Beginning of period (June) 370,340
End of period (August) 378,510
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
13 Weeks 13 Weeks
Ended Ended
8/28/97 8/29/96
Total Revenues 5,052,142 5,767,581
Costs and Expenses:
Cost of Products Sold 2,067,485 2,401,028
Payroll Expense 1,322,945 1,595,655
Other Operating Expenses 719,739 753,753
Selling and Administrative 729,489 757,907
Depreciation and Amortization 132,468 146,723
Interest 95,192 84,580
Total Expenses 5,067,318 5,739,646
Income from Cont. Ops. (BIT) (15,176) 27,935
Provision for Income Taxes -0- -0-
Net (Loss) Earnings (15,176) 27,935
Earnings per Common Share (.02) .03
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 August 28, 1997, the
consolidated statements of income for the three month periods ended
August 28, 1997, and August 29, 1996, and the condensed consolidated
statements of cash flows for the three 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 August 28, 1997 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 May 29, 1997 annual report to shareholders. The results
of operations for the periods ended August 28, 1997 and August 29, 1996
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 three months ended August 28, 1997 showed a decrease
of 12.4% compared to the same period for 1996. This decrease of $ 715,439
reflects the sale of Ambassador's St. Louis operations . This operation
produced revenues of $ 865,497 in the three months ended August 29,1996
and generated no revenues in the most recent three months.
Cost of products sold and operating costs decreased as a percentage of
sales from prior year levels due to improvement in margins in the Company's
East Coast operations. Margins in the Midwest Food Operations were comparable
on a year to year basis. Management has taken steps to improve margins
through overhead reductions,improved purchasing, and improved cash controls.
Financing continues to be available for necessary capital investment
through the Company's equipment suppliers. The Company's debt service
obligations and required payments on accrued expenses exceed cash flow
from operations. Because of this, management has pursued financing through
private sources to meet the Company's short term cash needs.
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
Robert A. Laudicina Date
President
By
Richard A. Mitchell Date
Vice President/Secretary
[ARTICLE] 5
<TABLE>
<S> <C>
[PERIOD-TYPE] OTHER
[FISCAL-YEAR-END] MAY-28-1998
[PERIOD-END] AUG-28-1997
[CASH] 378,510
[SECURITIES] 0
[RECEIVABLES] 1,586,157
[ALLOWANCES] 0
[INVENTORY] 545,903
[CURRENT-ASSETS] 2,965,699
[PP&E] 7,635,362
[DEPRECIATION] 5,577,940
[TOTAL-ASSETS] 6,977,578
[CURRENT-LIABILITIES] 4,570,469
[BONDS] 0
[COMMON] 1,009,230
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[OTHER-SE] 0
[TOTAL-LIABILITY-AND-EQUITY] 6,977,578
[SALES] 5,052,142
[TOTAL-REVENUES] 5,052,142
[CGS] 2,067,485
[TOTAL-COSTS] 5,067,318
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 95,192
[INCOME-PRETAX] (15,176)
[INCOME-TAX] 0
[INCOME-CONTINUING] (15,176)
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (15,176)
[EPS-PRIMARY] (.02)
[EPS-DILUTED] (.02)
</TABLE>
