AMBASSADOR FOOD SERVICES CORPORATION
3269 Roanoke Road
Kansas City, Missouri 64111
March 9, 2000
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 Amended.
Sincerely,
Daryl Roecker
Daryl Roecker
Controller
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Form 10QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarter ended August 27, 1998
Commission File Number 0-1744
Ambassador Food Services Corporation
Delaware 244-0656199
(State or other jurisdiction of (IRS Employer Identification #)
incorporation or organization)
3269 Roanoke Road
Kansas City, Missouri 64111
(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) 737,656 shares
outstanding as of 8/27/98.
AMBASSADOR FOOD SERVICES CORPORATION AND SUBSIDIARIES
INDEX
Part 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
August 27, 1998 (Unaudited) and May 28, 1998 4
Consolidated Statements of Income
Three Months ended August 27, 1998 (Unaudited)
And August 28, 1997 (Unaudited) 5
Condensed Consolidated Statements of Cash Flows
Three months August 27, 1998 (Unaudited) 5
Notes to Condensed Consolidated Financial
Statements (Unaudited) 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-7
Signatures 7
AMBASSADOR FOOD SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS 8/27/98 5/28/98
Cash 258,977 271,709
Accounts & Notes Receivable 1,258,158 1,492,466
Inventories 489,693 483,999
Other current 424,531 134,961
Total Current Assets 2,301,359 2,383,135
Property Plant and Equip - Net 1,756,979 1,810,984
Location Contracts 250,283 253,345
Other Long Term Assets 1,163,465 1,138,645
Total Assets 5,472,086 5,586,109
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade Accounts Payable 1,971,762 1,955,896
Accrued Expensed and Other 517,083 678,243
Current Maturities
Of Long term debt 665,675 864,904
Line of Credit 402,229 721,929
Total Current Liabilities 3,566,749 4,220,972
Long-Term Debt 1,151,669 646,803
Other Long-Term Liabilities 402,229 405,577
Stockholders' Equity:
Common Stock 1,009,230 1,009,230
Additional Paid-In Capital 718,291 718,291
Retained Earnings (1,038,284) (993,328)
689,237 734,193
Less Treasury Stock (322,186) (321,436)
367,051 412,757
Total Liabilities
& Stockholders' Equity 5,472,086 5,686,109
Note: The balance sheet at May 28, 1998 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)
8/27/98
Net Cash provided (used)
By continuing operations 34,813
Net Cash provided (used)
By investing activities (60,858)
Net Cash provided (used)
By financing activities 13,313
Net Increase (Decrease) in Cash (12,732)
Cash:
Beginning of period 5/28/98 271,709
End of period 8/27/98 258,977
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
13 Weeks Ended 13 Weeks Ended
8/27/97 8/27/98
Total Revenue: $5,052,142 $4,466,971
Costs of Products Sold 2,067,485 1,887,928
Payroll Expense 1,322,945 1,232,242
Operating 719,739 566,868
Administrative 729,489 649,418
Depreciation and Amortization 132,469 114,863
Interest 95,192 75,530
Total Expenses $5,067,319 $4,526,849
Income from Cont. Ops. (BIT) ($15,177) ($59,878)
Provision for Income Taxes 0 0
Net (Loss) Earnings ($15,177) ($59,878)
Earnings per common share ($0.02) ($0.11)
AMBASSADOR FOOD SERVICES CORPORATION
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANACIAL STATEMENTS
(Unaudited)
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The condensed consolidated balance sheet as of August 27, 1998,
the consolidated statements of income for the three month periods
ended August 27, 1998, and August 28, 1997, and the condensed
consolidated statements of cash flows for the three month periods
then ended have been prepared by the company without any 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 27, 1998 and for all period 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 and notes thereto included in the Company's May 28,
1998 annual report to shareholders. The results of operations
for the periods ended August 27, 1998 and August 28, 1997 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 RESULT OF OPERATION
Revenues for the three months ended August 27, 1998 showed a
decrease of 11.6% compared to the same period for 1997. This decrease
of $585,171.00 reflects lower sales in the Company's Kansas City
operations due to account lost to competitors and also in the New York
food service division which had certain short-term contracts which
ended in the late part of fiscal 1998.
Costs of products sold and operating costs increased as a
percentage of sales from prior year levels due to a decline in
margins in the Company's East Coast operations. Management has
taken steps to improve margins through staff reductions and improved
purchasing.
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 though 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_________________________
Daryl Roecker Date
Controller