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 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
I N D E X
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
8/27/98 5/28/98
ASSETS
Cash 258,977 271,709
Accounts & Notes Receivable
1,128,158 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 Expenses 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 13 Weeks
Ended
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 FINANCIAL
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 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 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 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 RESULTS 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 accounts
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.
Cost 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 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________________Date____
____
Robert A. Laudicina
President
By________________Date____
____
Daryl Roecker
Controller
