-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HhRYQiMNWmOJaBnndP5s33EozgWrF+Mgc8cmBu/RIEMN4J4/n/NPgvS5R/0BygsG iKmbf81Y8St1t54c8oeyiQ== 0000008734-00-000001.txt : 20000110 0000008734-00-000001.hdr.sgml : 20000110 ACCESSION NUMBER: 0000008734-00-000001 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990225 FILED AS OF DATE: 20000107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMBASSADOR FOOD SERVICES CORP CENTRAL INDEX KEY: 0000008734 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 440656199 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-01744 FILM NUMBER: 502766 BUSINESS ADDRESS: STREET 1: 3269 ROANOKE ROAD CITY: KANSAS CITY STATE: MO ZIP: 64111 BUSINESS PHONE: 8165616474 MAIL ADDRESS: STREET 1: 3269 ROANOKE ROAD CITY: KANSAS CITY STATE: MO ZIP: 64111 FORMER COMPANY: FORMER CONFORMED NAME: AUTOMATIQUE INC DATE OF NAME CHANGE: 19890810 10QSB 1 AMBASSADOR FOOD SERVICE CORPORATION P.O. BOX 419586 Kansas City, Missouri 64111 April 15, 1999 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 February 25, 1999 Commission File Number 0-1744 Ambassador Food Services Corporation Delaware 44-0656199 (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) 735,056 shares outstanding as of 02/25/99. 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 February 25, 1999 (Unaudited) and May 28, 1998 3 Consolidated Statements of Income Nine months ended February 25, 1999 (Unaudited) and February 26, 1998 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows Nine months ended February 25, 1999 (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 2/25/99 5/28/98 ASSETS Cash $ 291,435 $ 271,709 Accounts & Notes Receivable 1,166,920 1,492,466 Inventories 596,826 483,999 Other Current 149,357 134,961 Total Current Assets 2,204,538 2,383,135 Property,Plant and Equip.-Net 1,736,740 1,810,984 Location Contracts 244,306 253,345 Other Long Term Assets 602,663 1,138,645 Total Assets 4,788,247 5,686,109 LIABILITIES AND STOCKHOLDERS' EQUITY Trade Accounts Payable 1,908,478 1,955,896 Accrued Expenses and Other 324,859 678,243 Current Maturities of Long-Term Debt 274,271 864,904 Line of Credit 274,756 721,929 Total Current Liabilities 2,782,364 4,220,922 Long-Term Debt 1,351,692 646,803 Other Long Term Liabilities 370,773 405,577 Stockholders' Equity: Common Stock 1,009,230 1,009,230 Additional Paid-In Capital 718,291 718,291 Retained Earnings (1,116,648) (993,328) 610,873 734,139 Less: Treasury Stock 327,455 321,436 283,418 412,757 Total Liabilities & Stockholders' Equity $ 4,788,247 $ 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) 2/25/99 Net Cash provided (used) by continuing operations (138,242) Net Cash provided (used) by investing activities 586,728 Net Cash provided (used) by financing activities (332,917) Net Incr (Decr) in Cash 19,726 Cash: Beginning of period (June) 271,709 End of period (February) 291,435 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited) 39 Weeks 39 Weeks Ended Ended 02/25/99 02/26/98 Total Revenues 13,174,003 14,687,148 Costs and Expenses: Cost of Products Sold 5,591,388 6,026,744 Payroll Expense 3,612,341 3,907,319 Other Operating Expenses 1,632,995 1,893,587 Selling and Administrative 1,900,813 2,161,820 Depreciation and Amortization 350,077 389,938 Interest 224,030 289,821 Total Expenses 13,312,244 14,669,229 Income from Cont. Ops. (BIT) (138,242) 17,919 Provision for Income Taxes -0- -0- Net (Loss) Earnings (138,242) 17,919 Earnings per Common Share (.19) .02 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 February 25, 1999, the consolidated statements of income for the nine month periods ended February 25, 1999, and February 26, 1998, and the condensed consolidated statements of cash flows for the nine 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 February 25, 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 May 28, 1998 annual report to shareholders. The results of operations for the periods ended February 25, 1999 and February 26, 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 nine months ended February 25, 1999 showed a decrease of 10.3% compared to the same period for 1998. This decrease of $1,513,145 reflects lower sales levels in the Company's Kansas City and New York Operations. Sales in the Kansas City operation are down $703,397 from those recorded in the prior year. This is due to the loss of certain accounts to competitors and the cancellation of unprofitable account locations. Sales in the New York operation are lower by more than $520,000 compared to 1998. 1998 sales in New York reflected unusually high levels of activity due to certain short term agreements which ended in May and June of 1998. Management anticipates sales to continue near current levels in the short term as management continues to eliminate unprofitable situations. Cost of products sold and Payroll costs rose as a percentage of sales compared to the prior year. This reflects the effects of the short term agreements lost in the New York operation which carried very low costs in these areas. Management has eliminated a number of operating positions in the Iowa market and anticipates improvement in payroll costs on an ongoing basis. The Company's debt service obligations have been reduced through control of capital expenditures, receipt of payments on notes receivable and debt restructuring. This has allowed the Company to strengthen working capital and provide available capital for unforeseen business 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 EX-7 2 [ARTICLE] 5 [PERIOD-TYPE] OTHER [FISCAL-YEAR-END] MAY-28-1998 [PERIOD-END] FEB-25-1999 [CASH] 291,435 [SECURITIES] 0 [RECEIVABLES] 1,166,920 [ALLOWANCES] 0 [INVENTORY] 596,826 [CURRENT-ASSETS] 2,204,538 [PP&E] 7,436,410 [DEPRECIATION] 5,699,670 [TOTAL-ASSETS] 4,788,247 [CURRENT-LIABILITIES] 2,782,364 [BONDS] 0 [COMMON] 1,009,230 [PREFERRED-MANDATORY] 0 [PREFERRED] 0 [OTHER-SE] 0 [TOTAL-LIABILITY-AND-EQUITY] 4,788,247 [SALES] 13,174,003 [TOTAL-REVENUES] 13,174,003 [CGS] 5,591,388 [TOTAL-COSTS] 13,312,244 [OTHER-EXPENSES] 0 [LOSS-PROVISION] 0 [INTEREST-EXPENSE] 224,030 [INCOME-PRETAX] (138,242) [INCOME-TAX] 0 [INCOME-CONTINUING] (138,242) [DISCONTINUED] 0 [EXTRAORDINARY] 0 [CHANGES] 0 [NET-INCOME] (135,242) [EPS-BASIC] (.19) [EPS-DILUTED] (.19)
-----END PRIVACY-ENHANCED MESSAGE-----