SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 2000 Commission File Number 0-23382
TRANS GLOBAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware 62-1544008
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1393 Veterans Memorial Highway, Hauppauge, NY 11788
Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (631) 724-0006
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 12 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 90 days.
Yes X No
Number of shares of common stock outstanding as of May 1,2000: 2,889,716
<PAGE> 2
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES
INDEX
Part 1 - Financial Information:
Item 1. Financial Statements: Page No.
---------
Report of Independent Certified Public Accountants 3
Balance Sheets as of March 31, 2000 and December 31, 1999. 4-5
Consolidated Statements of Operations-
Three Months Ended March 31, 2000 and March 31, 1999. 6
Consolidated Statements of Cash Flows-
Three Months Ended March 31, 2000 and March 31, 1999. 7-8
Consolidated Statement of Stockholders' Equity - 9-10
Three Months Ended March 31, 2000
Notes to Consolidated Financial Statements 11-12
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 13-15
Part 11 Other Information
<PAGE> 3
To the Stockholders and Board of Directors of Trans Global Services, Inc.
Hauppauge, New York
We have reviewed the accompanying consolidated balance sheet of Trans Global
Services, Inc. and its subsidiaries as of March 31, 2000, and the related
consolidated statements of operations, stockholders' equity and cash flows for
the three month periods ended March 31, 2000 and 1999. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying consolidated financial statements referred to above
for them to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1999, and the
related consolidated statements of operations, stockholders' equity, and cash
flows for the year then ended [ not presented herein]; and in our report dated
February 11, 2000, we expressed an unqualified opinion on those consolidated
financial statements.
MOORE STEPHENS, P. C.
Certified Public Accountants.
Cranford, New Jersey
May 3, 2000
<PAGE> 4
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31 December 31,
2000 1999
(Unaudited)
<S> <C> <C>
Current Assets:
Cash $ 19,665 $ 43,141
Accounts Receivable- Net of allowance
for doubtful accounts of $62,500 2,555,683 2,518,343
Notes Receivable- i-engineering.com, Inc. 508,334 -0-
Deferred Debt Issuance Costs - Current 140,000 -0-
Deferred Loan Costs 17,000 -0-
Prepaid Expenses and Other Current Assets 65,881 100,865
-------- ---------
Total Current Assets 3,306,563 2,662,349
Property and Equipment-Net 160,095 162,820
Other Assets:
Due from Arc Networks 1,166,236 1,171,673
Deferred Debt Issuance Costs 35,000 -0-
Customer Lists 2,107,417 2,163,655
Goodwill, Net 666,249 678,392
Deferred Tax Asset-Non Current 490,000 490,000
Other Assets 38,792 36,373
Investment in i-engineering.com, Inc. 329,130 -0-
Total Other Assets 4,832,823 4,540,093
Total Assets $ 8,299,481 $ 7,365,262
============= ===========
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE> 5
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED
BALANCE SHEETS
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
(Unaudited)
<S> <C> <C>
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable and Accrued Expenses $ 303,799 $ 402,735
Accrued Payroll and Related Taxes and Expenses 857,572 359,295
Loans Payable, Asset-based lender 1,343,615 2,056,372
--------- ---------
Total Current Liabilities 2,504,986 2,818,402
Long-Term Debt 1,016,666 -0-
Commitments and Contingencies
Stockholders' Equity:
Common Stock, $.01 Par Value, 25,000,000
Shares Authorized. At December 31, 1999--
3,819,716 Shares Issued; 2,669,715 Outstanding
At March 31, 2000-- 4,089,716 Issued;
2,889,716 Outstanding
40,897 38,197
Capital in Excess of Par Value 13,499,281 12,887,851
Accumulated Deficit (6,120,667) ( 5,812,506)
----------- ------------
7,419,511 7,113,542
Less Treasury Stock, at cost
1,150,000 shares- 1999
1,200,000 shares- 2000 (2,641,682) (2,566,682)
Total Stockholders' Equity 4,777,829 4,546,860
Total Liabilities and Stockholders' Equity $ 8,299,481 $ 7,365,262
============ ===========
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE> 6
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION> Three Months Ended
March 31,
2000 1999
<S> <C> <C>
Revenue $ 6,503,330 $ 11,218,307
Cost of Services Provided 5,857,319 10,492,497
---------- ----------
Gross Profit 646,011 725,810
Selling, General and Administrative 848,547 763,750
Amortization of Intangibles 68,382 68,382
--------- ---------
Total Operating Expenses 916,929 832,132
Operating (Loss) ( 270,918) (106,322)
Other Income (Expenses):
Interest Expense ( 95,297) ( 65,711)
Interest Income 47,137 30,417
Other Income 10,917 2,061
-------- --------
Total Other (Expenses)-Net ( 37,243) ( 33,233)
--------- ---------
Net Loss $ ( 308,161) $ ( 139,555)
=========== ===========
Basic Loss Per Share:
Net Loss $ ( .11) $ ( .04)
-------- --------
Weighted Average Number of Shares 2,850,156 3,819,716
Diluted Loss Per Share:
Incremental Shares from Assumed Conversion
of Options and Warrants -0- -0-
----------- ------------
Weighted Average Number of Shares
Assuming Dilution 2,850,156 3,819,716
Diluted Loss Per Share:
Net Loss $ ( .11) $ ( .04)
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE> 7
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
- -----------------------------------------------------------------------------
<TABLE> Three Months Ended
<CAPTION> March 31,
2 0 0 0 1 9 9 9
<S> <C> <C>
Operating Activities:
Net (Loss) $ (308,161) $ ( 139,555)
Adjustments to Reconcile Net (Loss)
to Net Cash Provided By (Used in)
Operations:
Depreciation and Amortization 86,528 100,552
Debt Issuance Costs 35,000 -0-
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Assets:
Accounts Receivable-Net ( 37,340) 345,301
Tax Refund Receivable -0- (323,451)
Prepaid Expenses and Other
Current Assets 34,984 51,134
Increase (Decrease) in Liabilities:
Accounts Payable and Accrued
Expenses ( 98,936) (133,555)
Accrued Payroll and Related
Taxes and Expenses 498,277 1,177,928
--------- ---------
Total Adjustments 518,513 1,217,909
--------- --------
Net Cash - Operating Activities 210,352 1,078,354
--------- ---------
Forward
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE> 8
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION> Three Months Ended
March 31,
2000 1999
<S> <C> <C>
Net Cash -
Operating Activities Forwarded $ 210,352 $ 1,078,354
Investing Activities:
Capital Expenditures ( 15,421) ( 23,914)
Deferred Acquisition Costs -0- ( 41,100)
Repayments from Affiliates 5,437 32,573
Other, net ( 2,419) 379
Note Receivable ( 508,334) -0-
Investment in Preferred Stock
of Affiliate -0- ( 3,500)
--------- --------
Net Cash - Investing Activities ( 520,737) ( 35,562)
Financing Activities:
Net Payments to
Asset-Based Lender ( 712,757) ( 784,289)
Repayment of Note Payable -0- ( 42,498)
Deferred Loan Costs ( 17,000) -0-
Long Term Borrowings 1,016,666 -0-
---------- ---------
Net Cash - Used in Financing Activities 286,909 ( 826,787)
Net (Decrease) Increase in Cash and
Cash Equivalents ( 23,476) 216,005
Cash and Cash Equivalents
- Beginning of Year 43,141 234,917
Cash and Cash Equivalents
- March 31 $ 19,665 $ 450,922
=========== ===========
Supplemental Disclosures of Cash
Flow Information:
Interest $ 60,297 $ 65,711
Income Taxes $ -0- $ -0-
Supplementary Disclosure of Non Cash Investing and Financing Activities during
the three months ended March 31, 2000.
In connection with the $1,000,000 raised in January, 2000, the Company issued
warrants to purchase 250,000 shares of the Company's common stock at $.35 per
share to the investors. In addition, the Company issued warrants to purchase
300,000 shares of the Company's common stock at $.35 per share to the placement
agent. The Company incurred a deferred charge of $210,000 which is being
amortized over the life of the debt which is 18 months. This deferred charge has
been credited to capital in excess of par value.
Pursuant to an agreement with i-engineering.com, Inc., the Company (i) loaned
$500,000 to i-engineering.com, Inc. on a short-term basis, (ii) issued 270,000
shares of Common Stock to i-engineering.com, Inc. and (iii) acquired a minority
interest in i-engineering.com, Inc. The value of this interest was determined by
the market value of the Company's shares exchanged.
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE> 9
Trans Global Services, Inc.
Consolidated Statement of Stockholders' Equity
<TABLE>
<CAPTION>
Shares Amounts
<S> <C> <C>
Common Stock $.01 Par Value Authorized
25,000,000 Shares
Balance December 31, 1999 3,819,716 $38,197
Issuance of shares of Common Stock-
i-engineering.com, Inc. 270,000 2,700
---------- --------
Balance - March 31, 2000 4,089,716 $40,897
Capital in Excess of Par Value
Balance - December 31, 1999 12,887,851
Issuance of Below Market Warrants 210,000
Issuance of shares of Common Stock-
i-engineering.com, Inc. 326,430
Purchase of Treasury Stock 75,000
----------
Balance - March 31, 2000 13,499,281
Accumulated Deficit
Balance - December 31, 1999 $(5,812,506)
Net (Loss) ( 308,161)
------------
Balance - March 31, 2000 $(6,120,667)
===========
Treasury Stock
Purchase of treasury stock - 1999 1,150,000 $(2,566,682)
--------- -----------
Balance December 31, 1999 1,150,000 $(2,566,682)
Purchase of treasury stock - 2000 50,000 ( 75,000)
Balance - March 31, 2000 1,200,000 $(2,641,682)
========= ============
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE> 10
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES
STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION> AMOUNT
<S> <C>
Total Stockholders' Equity
Balance - December 31, 1999 $ 4,546,860
Issuance of Warrants 210,000
Issuance of shares of Common Stock -i-engineering.com, Inc. 329,130
Net loss for the three Months Ended March 31, 2000 ( 308,161)
-----------
Balance - March 31, 2000 $ 4,777,829
===========
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE> 11
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------
(1) Basis of Presentation
Trans Global Services, Inc. ("the Company or Trans Global"), a Delaware
corporation, operates through two subsidiaries, Avionics Research Holdings,
Inc., formerly known as ARC Acquisition Group, Inc.["Holdings"] and Resource
Management International,Inc. ["RMI"]. The Company is engaged in providing
technical temporary staffing services throughout the United States, principally
in the aerospace and aircraft industry.
In the opinion of the Company, the accompanying unaudited financial statements
contain all adjustments (consisting of only normal recurring accruals) necessary
to present fairly the financial position of the Company as of March 31, 2000 and
the results of its operations for the three months ended March 31, 2000 and
1999. These consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto together with
management's discussion and analysis of financial condition and results of
operations contained in the Company's Form 10-K for the year ending December 31,
1999. The results of operations for the three months ended March 31, 2000 are
not necessarily indicative of the results for the entire year or any future
interim period.
(2) Summary of Significant Accounting Policies
The accounting policies followed by the Company are set forth in Note 2 to the
Company's consolidated financial statements included in the Company's Form 10-K
for the year ended December 31, 1999.
(3) Transaction with - i-engineering.com, Inc.
Pursuant to an agreement with i-engineering.com, Inc., the Company (i) loaned
$500,000 to i-engineering.com on a short-term basis, (ii) issued 270,000 shares
of Common Stock to i-engineering.com and (iii) acquired an equity interest in
i-engineering.com. In connection with the agreement, the chief executive officer
of the Company was elected a director of i-engineering.com and the Company
agreed to include the chief executive officer of i-engineering.com as a nominee
for election as a director for the Company's 2000 annual meeting.
(4) Loan Payable - Asset Based Lender
At March 31, 2000, the Company was in violation of the covenants in its Credit
Agreement with its asset-based lender. Additionally, the lender has advised the
Company that it will not renew the agreement when it expires on April 23, 2000.
However, the lender has signed a forbearance agreement with the Company,
agreeing not to enforce its rights and remedies under the Loan Document until
July 23, 2000.
<PAGE> 12
TRANS GLOBAL SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------
(4) Loan Payable - Asset Based Lender(continued)
The Company has received a tentative approval from another lender for a $2.5
million asset based revolving credit facility. The extension of credit is
subject to receipt and satisfactory review by the lender of all financial and
other information as the Bank shall require. The facility is conditioned upon
the execution and delivery of definitive loan documents satisfactory to the
lender and it's counsel.
(5) Long-Term Debt
In January, 2000 the Company raised $1 million through the issuance of a 10%
subordinated promissory note due July 2001 or earlier upon the Company's receipt
of payment of the Arc Note. In connection with this note, the Company issued
warrants to purchase 550,000 shares of the Company's common stock at $.35 per
share to the investors and others who assisted the Company in the financing.
(7) Subsequent Events
The Company has agreed to extend the Arc Note until July 10, 2000. As a
condition to the extension, Arc and the guarantors agreed to an accelerated
payment schedule, with installments through June 16, 2000. In addition, Arc paid
$50,000 to reimburse the Company for its expenses resulting from Arc's default
under the Arc Note. If the entire principal and interest is paid by July 10,
2000 the principal amount of the Arc Note shall be reduced by ($30,000).
Additionally, the parent of Arc Networks agreed to issue Trans Global a warrant
to purchase shares of its common stock.
<PAGE> 13
Item 2. Management's Discussion and Analysis of Financial Conditions and Results
of Operations
Three Months Ended March 31, 2000 and 1999
Revenue from technical temporary staffing services is based on the hourly cost
of payroll plus a percentage. The success of the Company's business is dependent
upon its ability to generate sufficient revenue to enable it to cover its fixed
costs and other operating expenses and to reduce its variable costs. Under its
agreements with its clients, the Company is required to pay its employees and
pay all applicable federal and state withholding and payroll taxes prior to the
receipt of payment from the clients. Furthermore, the Company's payments from
its clients are based upon the hourly rate paid to the employee, without regard
to when payroll taxes are payable with respect to the employee. Accordingly, the
company's cost of services are greater during the first part of the year, when
Federal Social Security taxes and state unemployment and related taxes, which
are based on a specific level of compensation are due. Thus until the Company
satisfies its payroll tax obligations, it will have a lower gross margin than
after such obligations are satisfied. Furthermore, to the extent that the
Company experiences turnover in employees, its gross margin will be adversely
affected. For example, in 2000, Social Security taxes are payable on the first
$76,200 of compensation. Once that level of compensation is paid with respect to
any employee, there is no further requirement for the Company to pay Social
Security tax for such employee. Since most of the Company's employees receive
compensation in excess of that amount, the Company's costs with respect to any
employee are significantly higher during the period when it is required to pay
Social Security taxes than it is after such taxes have been paid.
The Company's revenues, derived principally from the aircraft and aerospace
industry, during the three month period ended March 31, 2000 totaled $6.5
million. This reflected a decrease of 42% from the revenue earned in the three
month period ended March 31, 1999, which were $11.2 million. The decrease can be
attributed to the continued slowdown being experienced by the Company's clients
in the aircraft and aerospace industry. During the three months ended March 31,
2000 and 1999, approximately 68% and 67% of the Company's revenue was generated
from its five largest customers. In 2000, these customers were Lockheed-Martin,
Bell Helicopter Textron, Boeing Corp., Gulfstream Aerospace and Cablevision
Systems Corp. In 1999, they were Lockheed-Martin, Boeing Corp., Northrop-Grumman
Corp., Bell Helicopter Textron and Gulfstream Aerospace.
The Company's gross margins for the quarters ended March 31, 2000 and March 31,
1999 were 9.9% and 6.5% respectively. The increased gross margin during the
current year is attributed to the reduction in business with some of the
Company's lower margin aircraft and aerospace clients combined with a slight
increase in revenue attributed to those clients in other industries. The Company
also generated $60,000 from permanent placement of technical personnel which had
no material associated cost of revenue.
Selling, general and administrative expenses increased $85,000, or 11.1%, to $
849,000 in the 2000 period from $764,000 in the 1999 period. During the 1999
period, we collected $324,000 as the result of our successful contesting of tax
penalties paid in prior years. This collection is reflected as a reduction in
selling, general and administrative expenses. Thus, if the effect of the refund
of the tax penalties in 1999 were excluded from selling, general and
administrative expenses in the 1999 period, the Company would show a decrease in
the 2000 period of 22.2% from the level of these expenses in the 1999 period.
The decline reflects principally the effects of our continued cost reduction
program.
<PAGE> 14
Item 2. Management's Discussion and Analysis of Financial Conditions and Results
of Operations (Continued)
As a result of the decrease in revenue, our gross profit was not sufficient to
cover our selling, general and administrative expenses, resulting in an
operating loss of $271,000 for the three months ended March 31, 2000, a 155%
increase in operating loss from the operating loss of $106,000 sustained in the
1999 period.
Interest expense during the three month period ended March 31, 2000 increased by
$30,000 or 45.0% from the three months ended March 31, 1999. This increase is
attributable to the interest expense associated with funds raised in January
2000, as well as the amortization of debt finance costs associated with the
550,000 warrants issued in conjunction with the loan.
As a result of the foregoing, the Company incurred a loss of approximately
$308,000 or $.11 per share (basic and diluted), for the three months ended March
31, 2000, compared to a loss of $140,000 or $.04 per share (basic and diluted)
for the three months ended March 31, 1999.
Liquidity and Capital Resources
As of March 31, 2000, the Company had working capital of approximately $802,000,
an increase of $958,000 compared to the working capital available at December
31, 1999. The most significant current asset at March 31, 2000 was the Company's
accounts receivables, which was $ 2.6 million. These receivables were offset by
payroll and related expenses of $900,000 and $ 1.3 million due to the Asset
Based Lender. The payroll and related taxes and expenses relate primarily to
compensation to the Company's contract employees and related taxes, which were
paid during the first week of April 2000. During the three months ended March
31, 2000, operations generated cash flow of $210,000. Our principal source of
cash during the three month period was our credit facility with our asset-based
lender. Additionally, the Company raised $1 million through the issuance of a
10% subordinated promissory note due 18 months from the date of issuance or
earlier upon the Company's receipt of payment of the Arc Note.
The Company utilized $500,000 of the proceeds as a loan to i-engineering.com
Inc. with an interest rate of 10% for a period of 120 days. These notes mature
in May and June 2000.
In February 2000, the Company extended the Arc Note until April 24, 2000. In
exchange for this extension, the Company received $15,000 to apply to those
expenses incurred by the Company for granting the extension and 50,000 shares of
the Company's common stock from a guarantor of the note.
<PAGE> 15
Item 2. Management's Discussion and Analysis of Financial Conditions and Results
of Operations (Continued)
On April 24, 2000, the Company granted a further extension of the Arc Note until
July 10, 2000, with interim payments of $150,000 due in installments through
June 16, 2000 and a payment of $50,000 to reimburse the Company for expenses
incurred as a result of the default. If the principal and interst on the note is
paid in full by July 10, 2000, the principal amount of the note shall be reduced
by $30,000.
The notes from Arc and i-engineering are payable during the next two months. The
total payments due on such notes, as of March 31, 2000 were approximately $1.7
million. When the Company, receives payment on the Arc Note, it is required to
prepay the $1.0 million notes issued in January 2000. Arc and i-engineering are
both privately owned companies seeking private financing and do not presently
have the funds to pay their notes to the Company. The Company's financial
position may be impaired if either of them fails to pay.
During 1999 and the first quarter of 2000, the Company has relied primarily on
its cash flow from operations and financing from its asset-based lender to fund
its operations. Additionally in the first quarter of 2000, the Company raised $1
million of which $500,000 is being used to fund operations and $500,000 was
advanced to i-engineering.com, Inc. However, the Company must still improve its
working capital and stockholders' equity in order to increase its revenue from
certain major clients and to attract clients requiring greater working capital.
The company relies on its ability to generate cash flows from operating activity
and its borrowings to fund operations. The company does not have any agreements
with any other funding sources and its business may be impaired if it does not
maintain adequate financing.
At March 31, 2000, the Company was in violation of the covenants in its Credit
Agreement with its asset-based lender. Additionally, the lender has advised the
Company that it will not renew the agreement when it expires on April 23,2000.
However, the lender has signed a forbearance agreement with the Company,
agreeing not to enforce its rights and remedies under the Loan Document until
July 23, 2000. The Company has received a tentative approval from another lender
for a $2.5 million asset based revolving credit facility. The Company's business
will be materially and adversely affected if it is unable either to enter into
an agreement with another lender by July 23, 2000, to find alternative financing
or obtain a further forbearance agreement from its asset-based lender.
Forward Looking Statements
The statements in this Form 10-Q that are not descriptions of historical facts
may be forward-looking statements that are subject to risks and uncertainties.
In particular, statements in this Form 10-Q that state our intentions, beliefs,
expectations, strategies, predictions or any other statements relating to our
future activities or other future events or conditions are "forward-looking
statements." Forward-looking statements are subject to risks, uncertainties and
other factors, including, but not limited to, those identified under "Risk
Factors", those described in Management's Discussion and Analysis of Financial
Conditions and Results of Operations in this Form 10-Q, and those described in
any other filings by the Company with the Securities and Exchange Commission, as
well as general economic conditions, any one or more of which could cause actual
results to differ materially from those stated in such statements.
<PAGE> 16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Trans Global Services, Inc.
(Registrant)
-------------------------
Date: May 12, 2000 Joseph G. Sicinski
(Chief Executive Officer)
------------------------
Date: May 12, 2000 Glen R. Charles
(Chief Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AND THE CONSOLIDATED STATEMENT OF OPERATIONS FILED
AS PART OF THE QUARTERLY REPORT ON FORM 10-Q AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH QUARTERLY REPORT ON FORM 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 19,665
<SECURITIES> 0
<RECEIVABLES> 2,555,683
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,306,563
<PP&E> 767,252
<DEPRECIATION> 607,157
<TOTAL-ASSETS> 8,299,481
<CURRENT-LIABILITIES> 2,504,986
<BONDS> 0
<COMMON> 40,897
0
0
<OTHER-SE> 4,736,932
<TOTAL-LIABILITY-AND-EQUITY> 8,299,481
<SALES> 6,503,330
<TOTAL-REVENUES> 6,503,330
<CGS> 5,857,319
<TOTAL-COSTS> 5,857,319
<OTHER-EXPENSES> 858,875
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 95,297
<INCOME-PRETAX> (308,161)
<INCOME-TAX> 0
<INCOME-CONTINUING> (308,161)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (308,161)
<EPS-BASIC> (.11)
<EPS-DILUTED> (.11)
</TABLE>
