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 March 1, 2001
Commission File Number 0-1744
Ambassador Food Services Corporation
Delaware 244-0656199
(State or other jurisdiction of (IRS Employer Identification #)
incorporation or organization)
5-30 54th Avenue
Long Island City, NY 11101
(Address of principal executive offices)
718-361-2512 (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) 735,356 shares outstanding as of 05/11/01.
AMBASSADOR FOOD SERVICES CORPORATION AND SUBSIDIARIES
INDEX
Part 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
March 1, 2001 (Unaudited) and June 1, 2000 3
Consolidated Statements of Income
Nine Months ended March 1, 2001 (Unaudited)
And March 2, 2000 (Unaudited) 4-5
Condensed Consolidated Statements of Cash Flows
Nine months March 1, 2001 (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
ASSETS 3/01/01 6/1/00
Cash 19,351 232,775
Accounts & Notes Receivable 1,504,063 1,228,033
Inventories 152,609 537,655
Other current 11,985 109,494
Total Current Assets 1,688,008 2,107,957
Property Plant and Equipment - Net 172,703 1,611,249
Location Contracts - 147,477
Other Long Term Assets 223,138 405,843
Total Assets 2,083,849 4,272,526
LIABILITIES AND STOCKHOLDERS'
EQUITY
Trade Accounts Payable 645,872 1,549,304
Accrued Expensed and Other 355,160 439,342
Current Maturities of Long Term 191,305 497,293
Debt
Line of Credit 209,034 770,969
Total Current Liabilities 1,401,371 3,256,908
Long-Term Debt 945,744 1,420,856
Other Long-term Liabilities 43,250 177,621
Stock Holders' Equity:
Common Stock 1,009,230 1,009,230
Additional Paid-In Capital 718,291 718,291
Retained Earnings (1,704,526) (1,980,869)
22,995 (253,348)
Less Treasury Stock (329,511) (329,511)
(306,516) (582,859)
Total Liabilities & Stockholders'
Equity 2,083,849 4,272,526
Note: The balance sheet at June 1, 2000 has been taken from the audited
financial statements at that date, and condensed. See accompanying notes to
consolidated condensed financial statements.
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AMBASSADOR FOOD SERVICES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
3/1/01
Cash Flows from Operating Activities (322,708)
Cash Flows from Investing Activities 1,586,690
Cash Flows from Financing Activities (1,477,406)
Net Increase (Decrease) in Cash (213,424)
Cash:
Beginning of period (June) 232,775
End of period (March) 19,351
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
39 Weeks Ended 39 Weeks Ended
3/1/01 3/2/00
Total Revenue: $4,488,373 $12,977,116
Costs of Products Sold 1,673,700 5,928,312
Payroll Expenses 1,316,811 3,302,964
Operating 650,976 1,583,096
Administrative 859,988 1,531,217
Depreciation and Amortization 70,333 356,505
Interest 119,947 218,808
Total Expenses 4,691,755 12,920,902
Gain (Loss) from continuing
operations before extraordinary
item and income tax benefit (203,382) 56,214
Income tax benefit 81,353
Loss from continuing operations
before extraordinary item (122,029)
Discontinued Operations:
Loss from vending machine
operation, net of applicable
income taxes of $129,398 (194,098)
Gain on disposal of vending
machine operation, including
provision for losses during
phase-out period of $346,410, and
gain on sale of assets of
$1,058,970, net of
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applicable income taxes of $195,376 517,184
-------
323,086
Income before extraordinary item $201,057
--------
Extraordinary Item-gain from
restructure of debt, net of
applicable income taxes of $15,375 75,286
Net Income 276,343 56,214
======= ======
Earnings per Common share $.38 $.08
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 March 1, 2001, the
consolidated statements of income for the nine month period ended March 1,
2001, and March 3, 2000, and the condensed consolidated statements
of cash flows for the nine monthperiod then ended have been prepared by the
company without any audit. In the opinion of management, all adjustments
(which include only normal recurringadjustments) necessary to present
fairly the financial position, results of operations, and cash flows
at March 1, 2001 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 and notes thereto, are included in the
Company's June 1, 2000 annual report to shareholders. The results of
operations for the periods ended March 1, 2001 and March 2, 2000
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
Declining sales, a need to strengthen the financial position of the Company and
a strategy to exit the vending service business resulted in the sale of three of
the
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Company's operations. The assets of its Kansas City operation were sold on
August 19, 2000 and the sale of the assets of its Des Moines, Iowa and Lawton,
Oklahoma operations were sold on January 12, 2001.
Continuing operations had a loss of $203,382 before extraordinary item and
income tax on sales of $4,488,373. A gain of $90,661 before income taxes was
realized on the restructuring of a note payable to an individual. The interest
rate was reduced from 12% to 10%.
The sales of the janitorial segment of the Company of $753,270 for the
thirty-nine weeks became 16.8% of total sales from continuing operations
because of the sale of the vending operations. The related loss for the
janitorial segment was $11,020.
In March 2001, the company sold its corporate office building in Kansas City
and moved its principal executive offices to its Long Island City, New York
facility resulting in reduced overhead costs
The proceeds from the sale of assets of the three operations and the office
building were used to reduce term debt and trade creditors.
These events have improved the financial condition of the company. Cash flow
from the remaining locations in New York and New Jersey will, in the opinion of
management, be less than requirements for the next 4-6 months however, new food
service contracts which commence in July and August should provide the
additional cash flow needed to meet requirements
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 /s/ Robert A. Laudicina July 20, 2001
---------------------------- ----------------------------------
Robert A. Laudicina Date
President
By /s/ Daryl Roecker July 20, 2001
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Daryl Roecker Date
Controller
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