AMBASSADOR FOOD SERVICES CORPORATION
3269 Roanoke Road
Kansas City, Missouri 64111
March 6, 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.
Sincerely,
Daryl Roecker
Daryl Roecker
Controller
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 September 2, 1999
Commission File Number 0-1744
Ambassador Food Services Corporation
Delaware 244-0656199
(State or other (IRS
Employer
jurisdiction of
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 _ 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) 737,556 shares
outstanding as of 09/02/99.
AMBASSADOR FOOD SERVICES CORPORATION
AND SUBSIDIARIES
I N D E X
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
September 2, 1999 (Unaudited) and
June 3, 1999 4
Consolidated Statements of Income
Three months ended September 2, 1999
(Unaudited) and August 27, 1998
(Unaudited) 5
Condensed Consolidated
Statements of Cash Flows
Three months ended September 2, 1999
(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
9/2/99 6/3/99
ASSETS
Cash
159,789 238,410
Accounts & Notes Receivable
1,092,621 958,549
Inventories 532,818 538,978
Other Current
129,702 90,288
Total Current Assets
1,914,930 1,826,225
Property Plant and Equip. - Net
1,765,180 1,824,128
Location Contracts
238,742 242,482
Other Long Term Assets
595,586 549,698
Total Assets
4,514,438 4,442,533
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade Accounts Payable
1,827,023 1,819,354
Accrued Expenses and Other
504,974 665,348
Current Maturities of Long-Term Debt
599,368 480,554
Line of Credit
559,219 417,490
Total Current Liabilities
3,490,584 3,382,746
Long-Term Debt
893,130 1,114,798
Other Long-Term Liabilities
349,322 347,933
Stockholders' Equity:
Common Stock
1,009,230 1,009,230
Additional Paid-In Capital
718,291 718,291
Retained Earnings
(1,616,664) (1,801,010)
110,857
(73,489)
Less Treasury Stock (329,455)
(329,455)
(218,598)
(402,944)
Total Liabilities & Stockholders' Equity
4,514,438 4,442,533
Note: The balance sheet at June 3, 1999 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)
9/2/99
Net Cash provided (used)
By continuing operations $159,975
Net Cash provided (used)
By investing activities (390,165)
Net Cash provided (used)
By financing activities 151,569
Net Increase (Decrease) in Cash
($78,621)
Cash:
Beginning of period (June)
$238,410
End of period (November) 159,789
CONDENSED CONSOLIDATED STATEMENT OF
INCOME (Unaudited)
13 Weeks
13 Weeks
Ended
Ended
9/2/99
8/27/98
Total Revenue: $4,486,901
$4,466,971
Costs of Products Sold 2,000,661 1,887,928
Payroll Expense 1,153,377
1,232,242
Operating
565,401 566,868
Administrative
544,535 649,418
Depreciation and Amortization 116,214
114,863
Interest 62,952
75,530
Total Expenses 4,443,140 4,526,849
Income from Cont. Ops. (BIT)
43,761 (59,878)
Provision for Income Taxes
0 0
Net (Loss) Earnings
$43,761 ($59,878)
Earnings per common share
$.06 ($.08)
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 September 2, 1999, the consolidated
statements of income for the three month periods
ended
September 2, 1999, and August 27, 1998, 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 September 2,
1999 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 3, 1999 annual report to
shareholders. The results of operations for the
periods ended September 2, 1999 and August 27,
1998 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
September 2, 1999 increased $19,930 or 4% over
the same period for 1998. The increase in sales
in the Des Moines, Ia, Lawton, OK locations
offset the substantial decrease in sales in the
Kansas City location due to accounts lost to
competition and the expiration of short term
food and maintenance contracts in the New York
division.
Cost of products sold increased as a
percentage of sales from prior year levels due
to a decline in margins in the Company's East
Coast operations. Labor costs have decreased
through staff reductions.
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
continues to reduce operating costs and improve
purchasing.
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_____________Date__
______
Robert A. Laudicina
President
By______________Date_
______
Daryl Roecker
Controller
