SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C. 20549
                         ----------------------
                            FORM 10-KSB
             Annual Report Pursuant to Section 13 or 15(d) of
                   the Securities Exchange Act of 1934

For the fiscal year ended    April 30, 2002   Commission File No. 0-8512
                          -------------------
                          MONARCH SERVICES, INC.
              (Name of small business issuer in its charter)

           MARYLAND                410-254-9200           52-1073628
----------------------------   --------------------  -------------------
(State or other jurisdiction   (Issuer's telephone    (I.R.S.Employer
    of incorporation or         number, including    Identification No.)
       organization)               area code)

       4517 Harford Road, Baltimore, Maryland            21214
------------------------------------------------------------------------
      (Address of principal executive offices)         (Zip code)


      Securities registered pursuant to Section 12(g) of the Act:
                     Common Stock, $.001 par value
                        (Title of each class)

      Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past
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 90 days. Yes [ X ]   No [  ]

      Check  if  disclosure of delinquent filers in response to Item  405  of
Regulation  S-B  is  not contained in this form, and no disclosure  will  be
contained, to the best of the registrant's knowledge, in definitive proxy  or
information statements incorporated by reference in Part III of this Form 10-
KSB or any amendment to this Form 10-KSB.   [  ]

     The issuer's revenues for the fiscal year ended April 30, 2002 are
$4,583,000.

      As  of July 16, 2002, the aggregate market value of the Issuer's common
stock held by non-affiliates was $1,673,212.

      As of July 16, 2002, the number of shares outstanding of the Issuer's
common stock was 1,619,820.

                  DOCUMENTS INCORPORATED BY REFERENCE

     Portions of the definitive proxy statement to be filed under Regulation
14A for the annual meeting to be held in October, 2002 are incorporated by
reference into Part III.

     Transitional small business disclosure format (check one):
                    Yes [   ]        No [ X ]










                          PART  I

Item 1.   DESCRIPTION OF BUSINESS

Monarch Services, Inc. ("Monarch Maryland") was incorporated on September
22, 2000.  On November 30, 2000, Monarch Services, Inc., a Delaware
corporation ("Monarch Delaware") that was incorporated December 20,
1976, merged into Monarch Maryland with Monarch Maryland as the surviving
entity.  As used herein, references to the "Company" refer to Monarch
Delaware prior to November 30, 2000 and Monarch Maryland, on and after
November 30, 2000.  The primary purpose of the merger was to change the
state of incorporation of the Company from Delaware to Maryland and make
certain changes in the organizational documents of the Company.

In 1993, the Company established a wholly-owned subsidiary, Girls' Life,
Inc. which commenced substantial operations with the sale of Girls' Life
magazine in August 1994.

On October 27, 1998, the Company sold substantially all the assets of its
former games division to a subsidiary of Hasbro, Inc. for $6,000,000 in cash.
The assets sold included trademarks, copyrights and other intellectual
property rights, inventory and tooling.

On August 20, 1999, the Company closed its former printing and envelope
division due to increased losses since the previous year's sale of the
games division.

On November 2, 1999, all remaining machinery and equipment from the games
division and remaining inventories and machinery and equipment from the
printing and envelope division were sold at auction.

The Company's primary operation during fiscal 2002 was the publication of
"Girls' Life" magazine, "Adam" magazine, "Girls Life Living" theme food court
and the "Adam Leaf and Bean" tobacco and coffee shop.  During fiscal 2002,
the Company invested some resources and management effort in developing and
marketing Adam Magazine and Girls Life Living restaurant and analyzing the
feasibility of a discount cigarette and liquor store. After analysis of the
results of the first three issues of Adam Magazine and the performance of
Girls Life Living restaurant during its first seven months of operation, the
Board of Directors has determined to terminate publication of Adam Magazine
and close Girls Life Living restaurant.  After analysis of the cigarette
and liquor business plan, the Board has determined to focus the Company's
resources and management effort on its core business of Girls' Life
Magazine, its new business of Adam Leaf & Bean coffee/smoke shop and
its proposed business of Peerce's Plantation GL.  Accordingly, the
Company does not currently intend to pursue the cigarette and liquor
store opportunity.

The Company is continually exploring new ways to expand its publishing
operation and diversify into other operations while using its established
brand name "Girls' Life".

Publishing Business

Girls' Life, Inc. publishes a bi-monthly magazine for young girls age ten to
fifteen.

"Girls' Life" is intended to be an intelligent, non-condescending and easy-
to-read magazine.  The philosophy behind the graphic presentation and every
article  presented is that girls are important, independent, and intelligent
people with opinions of their own.  Each article seeks to reinforce that
message and inspire confidence in a girl's thoughts, opinions, and feelings.
Editorial material is created by the magazine's staff as well as  through
outside writers.  The magazine is printed through one large national printing
service company.

The revenues of the Company's publishing business are seasonal in nature.
Girls' Life magazine is published six times per year normally, two issues
are published in the second and fourth quarters and one issue is published
in each of the first and third quarters.

During fiscal 2001, management began exploring the feasibility of publishing
"Adam", a magazine for young men between the ages of 21 and 34.  Management
decided to proceed with the publication of the magazine and the February
/March 2002 premiere issue went on the newsstand for sale in January 2002.
The April/May 2002 issue went on the newsstand for sale in March 2002 and the
June/July 2002 issue went on the newsstand for sale in May 2002.  "Adam"
magazine  had no sales during the third quarter of fiscal 2002 and minimal
sales during the fourth quarter of fiscal 2002.  Despite some success in
increasing the  distribution of "Adam" magazine through retail outlets,
management was unable to generate significant interest from advertisers due
to what management believes was an industry-wide slowdown in the demand for
advertising in the United States.  Without  advertising interest, management
believes that "Adam" Magazine is not viable at this time.  As a result, the
publication of "Adam" Magazine was terminated effective with the June/July
2002 issue.  Costs totaling $382,000 (net of income tax benefit of $158,000)
have been classified as discontinued operations in the financial statements
for fiscal 2002.  Costs totaling $32,000 (net of income tax benefit of
$10,000) that were previously classified in 2001 as selling, general and
adminstrative expenses have been classified as discontinued operations.
All costs related to the final issue and termination of "Adam" have been
accrued as of April 30, 2002.

Retail Business

During fiscal 2000, the Company leased a property adjacent to the Company's
headquarters in Baltimore, Maryland.  The Company established a Girls' Life
theme food court on this property called "Girls' Life Living" designed to
attract girls in the target market of Girls' Life magazine and their
families.  "Girls Life Living" started doing business in December 2001.
Despite some success in attracting the target market, the restaurant was
unable to generate significant or steadily increasing revenues in its
first seven months of operations.  Without increasing revenues, management
has determined that Girls Life Living is not viable at this time.  As a
result, the Company intends to close Girls Life Living in the near future.
Net costs totaling $168,000 and $23,000 (net of income tax benefit of
$69,000 and $7,000) have been classified as discontinued operations in
the financial statements for fiscal 2002 and 2001, respectively.  Costs
associated with Girls Life Living during fiscal 2001 were included in
selling, general and administrative and have been reclassified as
discontinued operations.  Costs associated with the disposal of assets
and improvements totaled $91,000 (net of income tax benefit of $38,000)
were classified as discontinued operations for fiscal 2002.  Equipment
that will not be used in the Company's other operations has been
classified as held for sale as of April 30, 2002.

In June 2001, the Company purchased three adjoining parcels of real estate
located in Baltimore County, Maryland for $1.91 million in cash.  The
acquisition includes "Peerce's Plantation GL", a 350 seat fine dining
restaurant and bar with liquor license, off premises sales, an adjoining
6,000 square-foot house, and 14.74 acres with a horse stable zoned for
residential development.  Management is considering various uses for the
property including formal and family dining and entertainment.  The
Company has hired a general manager and executive chef to operate the
restaurant and bar.  The name "Peerce's Plantation GL" will be used
throughout this document to distinguish it from the name used by the
previous owner. Commencement of operations is dependent upon completion
of renovations.

In July 2001, the Company purchased the assets of a tobacco and coffee
shop located in Baltimore County, Maryland.  The new business commenced
operation in December 2001.  This new business is trading as "Adam Leaf
and Bean".

In December 2001, the Company purchased the assets and property of a
liquor and tobacco store located in Baltimore City, Maryland with the
intention of operating a cigarette and liquor store that would trade as
"Adam Discount Cigarettes and Liquors".  Adam Discount Cigarettes and
Liquors did not engage in any operations in fiscal 2002. In order to
focus on the Company's core business of Girls' Life Magazine, its new
business of Adam Leaf & Bean coffee/smoke shop and its proposed business
of Peerce's Plantation GL, the Board of Directors has determined not to
pursue the discount cigarette and liquor store business plan.  The
property is currently being marketed for sale and is classified as
held for sale as of April 30, 2002.

MARKETING

Girls' Life magazine subscriptions are sold through traditional sources such
as  direct-mail solicitation, insert cards and subscription agents.  The
magazine is also sold on newsstands and subscriptions can be obtained or
renewed through the internet on the Girls' Life website.  Newsstand copies
are distributed nationally and internationally by Warner Publisher Services,
Ingram Periodicals,Inc. and Worldwide Media Services, Inc.  During fiscal
2002, the Girl Scouts of the U.S.A. notified management that the Company
would no longer have access to the Girl Scouts mailing list.  The number
of subscriptions attributed to the Girl Scouts mailing list is less then
8% of total subscriptions.

The subscription price of a one-year Girls' Life subscription is between $14.95
and $17.95.  The suggested newsstand price of a single issue of Girls' Life in
the United States is $3.50.

The average subscriptions sold per issue during fiscal year 2002 was as set
forth in the following table.


    Distribution Channel            Number of Magazines Sold
    --------------------            ------------------------

         Newsstand Sales                     42,000

         Subscription Sales                 252,000
                                          ----------
            Total Paid Circulation          294,000


         Complementary Copies                 1,000


The following table sets forth the average number of subscriptions
geographically sold per issue, internationally and domestically during
fiscal year 2002.

    Geographic Distribution         Number of Magazines Sold
    -----------------------         ------------------------

         United States                     248,000

         International                       4,000


COPYRIGHTS AND TRADEMARKS

The Company's magazine is generally protected by registered trademarks and
copyrights in the United States and foreign countries to the extent that such
protection is available.


COMPETITION

Competition in the publishing industry is intense with numerous other
publishers , as well as other media, competing for readers and advertising
revenue.  Most of our competitors in the publishing business have broader
and better recognized product offerings and  greater experience, depth of
management and creative and financial resources than we have. Given these
factors, there can be no assurance that we will be able to continue to
compete successfully in the publishing industry and the failure to do so
may have a material adverse effect on our results of operations.

Competition in the retail cigar industry is intense with numerous other
outlets for cigar sales located in the Baltimore, Maryland metropolitan
area competing for customers.  There can be no assurance that we will
be able to compete successfully in the retail cigar industry and the
failure to do so may have a material adverse effect on our results of
operations.

Competition in the upscale restaurant industry is intense with numerous
other restaurants located in the Baltimore, Maryland metropolitan area
competing for customers including individual and chain restaurants with
broader and better recognized names, greater experience, depth of
management and financial resources than we have.  These competing
restaurants may also have established reputations, rankings by restaurant
guides and other media and be supported by advertising campaigns.



EMPLOYEES

At April 30,  2002, the Company employed 43 executive, administrative,
clerical and maintenance personnel. Approximately 20 of the Company's
employees work part-time.  None of the Company's employees are
represented by a union. The Company believes its relations with its
employees are good.


Item 2.  DESCRIPTION OF PROPERTY

The Company leases and owns property at the following locations for the
following purposes:

1.  4517 Harford Road, Baltimore, Maryland 21214. This property contains  the
Company's  offices and warehouse facilities. The property is leased  through
2007.

2.  4511-4515 Harford Road, Baltimore, Maryland 21214.  This property contains
the food court that operates under the name "Girls' Life Living".  The property
is leased through 2005. Due to the closure of Girls' Life Living, management
is currently attempting to re-negotiate the term of this lease.

3.  4313 Harford Road, Baltimore, Maryland 21214.  The proposed use of this
property is to accommodate existing business and new lines of business, if
any.  This property is not leased, but owned by the Company.

4.  4627 Harford Road, Baltimore, Maryland 21214. The proposed use of this
property is to accommodate existing business and new lines of business, if
any. This property is not leased but owned by Adam Corp, a subsidiary
of the Company.

5.  1407 York Road, Lutherville, Maryland 21093.  This property contains the
tobacco and coffee shop that operates under the name "Adam Leaf and Bean".
The property is leased through October 2004.

The  Company leases the 4517 Harford Road property and the 4511-4515 Harford
Road property from A. Eric Dott who is the Chairman and a major stockholder
of the Company. Although not negotiated at arms  length,  management believes
the terms of the leases with Mr. Dott are comparable to lease terms for like
properties in the same geographic area.

In June of 2001, the Company purchased three adjoining parcels of real
estate located in Baltimore County, Maryland for $1.91 million in cash.
The acquisition includes Peerce's Plantation GL, a 350 seat fine dining
restaurant and bar with liquor license, a 6,000 square foot house, and
14.74 acres with a horse stable zoned for residential development. The
property is not currently in the Company's operations and no portion of
the property is leased to a tenant.  The Company is currently renovating
a portion of this property to prepare for the opening of the proposed
Peerce's Plantation GL, an upscale family restaurant. The Company believes
that the property is adequately covered by insurance. Since the property
is not yet in service, there was no depreciation taken on this property
for fiscal 2002.  The method of  depreciation and life of the property
has not been determined since no cost allocation has been performed to
determine what part of the property is depreciable or not depreciable.
During fiscal 2002, approximately $91,000 in costs associated with the
property have been capitalized and $53,000 charged to current operations.


Item 3. LEGAL PROCEEDINGS

Companies in the publishing industry and the retail industries are, in the
ordinary course of business, made the subject of actions alleging copyright
infringement and other actions.  Such actions may allege large damages.
The Company has, on an infrequent basis, had such claims made against it.


Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS
        NONE



                                PART II

Item 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS


Common Stock Market Prices and Dividends

The Company's common stock is traded on the Nasdaq SmallCap Market under the
symbol MAHI.  The number of stockholders of record on July 16, 2002 was
approximately 528.

High and low closing sale prices for the last two years were:

                         Fiscal 2002                Fiscal 2001
Quarter                     Price                      Price
Ended                  High        Low            High        Low
                     -------     -------        -------     -------
July 31                2.95        2.95           3.96        3.75
October 31             2.88        2.88           3.75        3.25
January 31             2.48        2.48           3.25        3.03
April 30               2.26        2.26           2.58        2.49

Such prices reflect inter-dealer prices, without retail mark-up, mark-down or
commissions and may not represent actual transactions. The Company has not
paid any cash dividends since April 1987. Although the board of directors
will continue to review the Company's profitability with respect to the
resumption of dividends, there can be no assurance as to the timing or amount
of any future dividends.


                   EQUITY COMPENSATION PLAN INFORMATION
----------------------------------------------------------------------------

                                                              Number of
                                                              securities
                                                              remaining
                              Number of                      available for
                             securities to    Weighted-     future issuance
                              be issued        average        under equity
                                upon           exercise       compensation
                             exercise of       price of          plans
                             outstanding     outstanding      (excluding
                               options         options         securities
                            warrants and       warrants       relected in
                               rights        and rights       column (a))
                                (a)              (b)              (c)
----------------------------------------------------------------------------
Equity compensation plans
approved by security
holders                       210,000          $ 3.73           90,000
----------------------------------------------------------------------------
Equity compensation plans
not approved by security
holders                         -0-              -0-              -0-
----------------------------------------------------------------------------

        Total                 210,000          $ 3.73           90,000
----------------------------------------------------------------------------



Item 5A. CERTAIN CAUTIONARY INFORMATION

In  connection with the Private Securities Litigation Reform Act of 1995 (the
"Litigation Reform Act"), the Company is hereby disclosing certain cautionary
information  to be used in connection with written materials (including  this
Annual Report on Form 10-KSB) and oral statements made by or on behalf of its
employees  and representatives that may contain "forward-looking statements"
within the meaning of the Litigation Reform Act.  Such statements consist  of
any  statement  other  than  a  recitation of  historical  fact and  can  be
identified by the use of forward-looking terminology such as "may," "expect,"
"anticipate,"  "estimate,"  or "continue" or the negative  thereof or  other
variations  thereon  or comparable terminology.  The listener  or reader  is
cautioned that all forward-looking statements are necessarily speculative and
there are numerous risks and uncertainties that could cause actual events  or
results  to  differ materially from those referred to in such forward-looking
statements.  The discussion below highlights some of the more important risks
identified  by management, but should not be assumed to be the only  factors
that  could  affect future performance.  The reader or listener is cautioned
that  the  Company  does not have a policy of updating or revising  forward-
looking  statements  and  thus he or she should not assume  that silence  by
management over time means that actual events are bearing out as estimated in
such forward-looking statements.

CAUTIONARY LANGUAGE REGARDING NEW BUSINESS LINES

We are currently working on certain new lines of business including a tobacco
and coffee shop called "Adam Leaf and Bean" and an upscale family restaurant
called "Peerce's Plantation GL". As disclosed below under the caption "Results
of Operations," we have invested a portion of our capital in developing these
new business lines in the fiscal year and we expect to continue investing our
capital in exploring these and other business lines in the future.  As we
commence or continue operations with these new business lines, we expect that
they will require increasing levels of capital investment and management
attention.  We expect any new business will incur significant expenses for
personnel and marketing, among other items and that such expenses will
precede revenues. If we decide not to go forward with these new business
lines, we do not expect to recover our invested capital. Due to limited
resources, we have not commissioned third-party scientific marketing or other
studies of the viability of these or other proposed business lines, nor do
we have the capacity to conduct such studies internally.  In lieu of such
studies, we have relied on the experience of our management team and internal
analysis by our management and staff in evaluating new lines of business.
Our analysis may be incomplete or based upon incomplete or incorrect data.
In light of the risks of any new business enterprise and the limited analysis
permitted by our resources, we cannot be sure that "Adam Leaf and Bean" and
"Peerce's Plantation GL" or other business lines that we may consider, will
be profitable and we may lose our entire investment in such business lines.
We intend to continue to consider additional business lines and, accordingly,
we expect to continue to incur expenses for exploring new business lines for
the foreseeable future.


HISTORY OF OPERATING LOSSES


We have reported losses from continuing operations in four of the past five
years and net losses in three of the past five years.  There can be no
assurance that our business strategies and tactics will be successful and
that we will be profitable in future periods.

COMPETITION

Competition in the publishing industry is intense with numerous other
publishers , as well as other media, competing for readers and advertising
revenue.  Most of our competitors in the publishing business have broader
and better recognized product offerings and  greater experience, depth of
management and creative and financial resources than we have. Given these
factors, there can be no assurance that we will be able to continue to
compete successfully in the publishing industry and the failure to do so
may have a material adverse effect on our results of operations.

Competition in the retail cigar industry is intense with numerous other
outlets for cigar sales located in the Baltimore, Maryland metropolitan
area competing for customers.  There can be no assurance that we will
be able to compete successfully in the retail cigar industry and the
failure to do so may have a material adverse effect on our results of
operations.

Competition in the upscale restaurant industry is intense with numerous
other restaurants located in the Baltimore, Maryland metropolitan area
competing for customers including individual and chain restaurants with
broader and better recognized names, greater experience, depth of
management and financial resources than we have.  These competing
restaurants may also have established reputations, rankings by restaurant
guides and other media and be supported by advertising campaigns.

LIMITED MARKET FOR GIRLS LIFE MAGAZINE

The Girls' Life magazine is targeted to girls ages ten to fifteen.  Since
Girls' Life's target audience is limited by age and gender, Girls' Life,
unlike other magazines that appeal to broader age groups, must replace a
large portion of its readership each year due to maturing of its audience.
Accordingly, Girls' Life's promotional expenses that are designed to replace
and expand its readership may be higher than other magazines with comparable
circulation.  There can be no assurance that Girls' Life will be able to
replace its existing readers and expand its circulation going forward.  Any
decrease in Girls' Life's circulation, due to demographic or other factors,
can be expected to have a material adverse effect on the revenues of our
publishing business.

CONTROL BY PRINCIPAL STOCKHOLDERS

A. Eric Dott and, his son, Jackson Y. Dott, the Company's Chairman  and
President, respectively, beneficially own an aggregate of 41% of our
outstanding voting securities.  Accordingly, these stockholders have the
ability, acting together, to exercise significant control over fundamental
corporate transactions requiring stockholder approval, including without
limitation the election of Directors, approval of merger transactions
and sales of all or substantially all of our assets.

ANTI-TAKEOVER PROVISIONS COULD MAKE A THIRD-PARTY ACQUISITION OF US
DIFFICULT.

Maryland corporate law restricts transactions between a corporation and
its affiliates and potential acquirers.  The applicability of these
provisions and other provisions set forth in our organizational documents
may discourage bids for our common stock at a premium over the market
price and may adversely affect the market price and the voting rights
of our common stock.  These provisions may discourage changes in control
of our company.



Item 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

RESULTS OF OPERATIONS FISCAL 2002 COMPARED TO FISCAL 2001

Publishing sales of Girls' Life increased $238,000 or 6% in fiscal year 2002
from fiscal year 2001. All publishing sales are attributable to "Girls' Life"
magazine.  The limited sales of "Adam" magazine and "Girls Life Living" food
court are included in discontinued operations. The increase in sales for
"Girls' Life" is attributable primarily to increased advertising income,
increased newsstand sales and editorial services to third parties. Advertising
revenue increased 1.5% from $1,380,000 in 2001 to $1,401,000 in 2002. The
average number of subscribers was 252,000 and 260,000 for the years ending
April 30, 2002 and 2001, respectively. The decline in subscription revenue
per issue is attributable to lower remittances from subscription agencies.
Publishers often use subscription agencies to expand their subscription base
with the intention of converting a subscriber to a direct customer after the
initial subscription period under the subscription agency expires. The
decline in remittances is attributed to increased competition between
publishers. This decline is offset with increases in advertising revenue
as a result of more advertisements per issue. Retail sales for Adam Leaf
and Bean was $145,000 for fiscal year 2002.  There were no retail sales
for fiscal year 2001. Total sales for publishing and the one retail
operation increased $383,000 or 9% in fiscal year 2002.


Total cost of goods sold, as a percent of sales was 76% in fiscal year
2002 and 78% in fiscal year 2001.  The decrease in 2002 was primarily due
to decreased labor, insurance and depreciation costs for publishing.
Cost of goods sold was $222,000 for the retail store compared to retail
sales of $145,000.  The high cost of goods sold was primarily because the
retail store is in the start-up stage and began operations in December 2001.
Cost of goods sold, as a percent of sales for Girls' Life was 73% in fiscal
year 2002 and 78% in fiscal year 2001.  The overall net decrease for Girls'
Life was primarily due to decreased labor, insurance and depreciation costs
partially offset by slightly higher printing and mailing costs.

During fiscal 2001, management began exploring the feasibility of publishing
"Adam", a magazine for young men between the ages of 21 and 34.  Management
decided to proceed with the publication of the magazine and the February
/March 2002 premiere issue went on the newsstand for sale in January 2002.
The April/May 2002 issue went on the newsstand for sale in March 2002 and
the June/July 2002 issue went on the newsstand for sale in May 2002.  Adam
magazine had no sales during the third quarter of fiscal 2002 and minimal
sales during the fourth quarter of fiscal year 2002.  Despite some success
in increasing the distribution of "Adam" magazine through retail outlets,
management was unable to generate significant interest from advertisers due
to what management believes was an industry-wide slowdown in the demand for
advertising in the United States.  Without  advertising interest, management
believes that "Adam" magazine is not viable at this time.  As a result,
management terminated the publication of "Adam" magazine effective with the
June/July 2002 issue. As a result of the termination of the publication of
Adam Magazine, all costs associated with "Adam" magazine have been included
in the financial statements for fiscal year 2002. Costs totaling $382,000
(net of income tax benefit of $158,000) relating to "Adam" magazine are
included in discontinued operations for fiscal 2002.  Costs totaling
$32,000 (net of income tax benefit of $10,000) which were previously
reported in selling, general and administrative expenses are included in
discontinued operations for fiscal 2001.

During fiscal 2001, the Company leased a property adjacent to its
headquarters in Baltimore, Maryland.  Management established a Girls' Life
theme food court on this property called "Girls' Life Living" designed to
attract girls in the target market of Girls' Life magazine and their families.
Sales and customer traffic at "Girls' Life Living" have not met management's
expectations. Sales from December 2001 through April 2002 were $17,000.
Despite some success in attracting the target market, the restaurant was
unable to generate significant or steadily increasing revenues in its first
seven months of operations.  Without increasing revenues, management has
determined that Girls Life Living is not viable at this time.  As a result,
the Company intends to close "Girls Life Living" in the near future.  Costs
totaling $168,000 and $23,000 (net of income tax benefit of $69,000 and
$7,000) have been classified as discontinued operations in the financial
statements for fiscal 2002 and 2001, respectively.  Costs associated with
Girls Life Living during fiscal 2001 were included in selling, general and
administrative expenses and have been reclassified as  discontinued
operations. Costs associated with the disposal of assets and improvements
totaled $91,000 (net of income tax benefit of $38,000) were classified as
discontinued operations for fiscal 2002.  Equipment that will not be used
in the Company's other operations has been classified as held for sale as
of April 30, 2002.

In July 2001, the Company purchased the assets of a tobacco and coffee
shop located in Baltimore County, Maryland.  This new business is trading
as "Adam Leaf and Bean". Adam Leaf and Bean started doing business in
December 2001.  Sales from December 2001 through April 2002 were $145,000.

In December 2001, the Company purchased the assets and property of a liquor
and tobacco store located in Baltimore City, Maryland with the intention of
operating a discount cigarette and liquor store under the name "Adam Discount
Cigarettes and Liquors".  "Adam Discount Cigarettes and Liquors" did not engage
in any operations for the third or fourth quarter of fiscal 2002. In order
to focus on the Company's core business of Girls' Life Magazine, its new
business of Adam Leaf & Bean coffee/smoke shop and its proposed business
of Peerce's Plantation GL, the Board of Directors has determined not to
pursue the discount cigarette and liquor store business plan.  The property
is currently being marketed for sale and is classified as held for sale
as of April 30, 2002.

Selling,  general and administrative expenses as a percentage of sales
were 36% in fiscal year 2002 and 38% in fiscal year 2001.  The decrease in
fiscal 2002 was primarily due to decreased advertising and promotional
costs for publishing and a decrease in corporate overhead.  Corporate
overhead which is comprised primarily of salaries, professional fees,
telephone expenses, insurance and depreciation was $953,000 for fiscal
year 2002 compared to $971,000 in 2001.  Corporate overhead also includes
indirect costs associated with "Adam Leaf and Bean". During fiscal year
2002, advertising and promotional costs decreased $40,000.  Salaries
included in selling, general and administrative expenses decreased $43,000
and outside services decreased $70,000.  Utilities, taxes and  insurance
increased due to the new businesses that commenced during fiscal year 2002.
Included in selling, general and administrative expenses for 2002 is
$40,000 of expense for obsolete inventory related to Girlslife.com. The
charge was taken due to limited sales experienced through Girlslife.com.
A $15,000 charge was recorded in 2002 for trademarks on certain names that
are not part of current or planned lines of business. This amount is
included in depreciation and amortization. Also included in selling, general
and administrative expenses for 2002 is a $67,000 loss on the disposal of
equipment that was unrelated to discontinued operations.  The Company is
continuing to explore new lines of business and expects to continue to
consider other new lines of business for the foreseeable future. The
Company expects that, as it explores and develops these and other lines
of business, the cost of such activities will increase the amount of the
Company's selling, general and administrative expense in future periods.

In June of 2001, the Company purchased three adjoining parcels of real
estate located in Baltimore County, Maryland for $1.91 million in cash.
The acquisition includes "Peerce's Plantation GL", a 350 seat fine dining
restaurant and bar with liquor license, a 6,000 square foot house, and
14.74 acres with a horse stable zoned for residential development. The
property is not currently used in the Company's operations and no portion
of the property is leased to a tenant.  The Company is currently
renovating a portion of this property to prepare for the opening of
the proposed "Peerce's Plantation GL", an upscale family restaurant. The
Company believes that the property is adequately covered by insurance.
Since the property is not yet in service, there was no depreciation
taken on this property for fiscal 2002.  The method of depreciation
and life of the property has not been determined since no cost
allocation has been performed to determine what part of the property is
depreciable or not depreciable.  During fiscal 2002, approximately $91,000
in costs associated with the property has been capitalized and $53,000
charged to operations. The Company has hired a general manager and
executive chef to operate the restaurant and bar.  Commencement of
operations is dependent upon completion of renovations. Management has
obtained an independent appraisal as of April 30, 2002 that supported
the carrying value of the Company's investment in "Peerce's Plantation GL".

Other income decreased $193,000 in 2002 to $323,000 from $516,000 in 2001.
The fiscal year 2002 decrease was primarily due to the decrease in interest
income in the amount of $172,000 as a result of lower balances of cash
invested in certificates of deposit and lower interest rates and a decrease
in other miscellaneous income in the amount of $21,000.

As a result of the Job Creation and Worker Assistance Act of 2002 (the "2002
Act") that was signed by President Bush in March 2002, entities with net
operating losses arising in tax years ending in 2001 and 2002 are allowed
to carryback those losses five years.  Prior to the 2002 Act, loss carrybacks
were only permitted for two years.  The Company has only recorded tax benefits
to the extent carryback claims are available and has not recorded any tax
benefit associated with the future realization of operating losses. These
carryback claims are for federal income tax purposes only. Income tax benefits
attributable to continuing operations was $64,000 for 2002 compared to $36,000
for 2001.  The income tax benefit associated with discontinued operations was
$265,000 for 2002 and $17,000 for 2001.  The Company's effective rate for the
fiscal year 2002 was (29)% compared to (24)% in 2001.



CRITICAL ACCOUNTING POLICIES

The Company prepares its financial statements in conformity with accounting
principles generally accepted  in the United States of America, which
require the use of management's estimates.  The Company believes that the
most critical accounting policies relate to revenue recognition.  This and
the Company's other accounting policies are described in Note A to the Notes
to Consolidated Financial Statements.



LIQUIDITY AND SOURCES OF CAPITAL

At April 30, 2002, the Company had a cash overdraft of approximately ($121,000)
a decrease of $1,243,000 from the amount as of April 30, 2001.  The cash
overdraft was due to the timing of deposits and the clearing of checks.  As
the Company enters into new lines of business there results a need for greater
capital investment.  In June 2001, the Company purchased improved real estate,
what is now referred to as "Peerce's Plantation GL" for $1.91 million in cash.
Since that time, approximately $91,000 of costs associated with improvements
have been capitalized. The Company experienced a net increase in its accounts
receivable of $161,000 from last year.  The increase is primarily attributable
to editorial and publication services provided to third parties.  The increase
in inventory over the prior year is associated with "Adam Leaf and Bean". The
increase in prepaid expenses of $67,000 over the prior year-end is attributed
to prepaid postage for a future "Girls' Life" magazine issue. The increase in
income taxes receivable over the prior year represent the federal carryback
claim of the current year's operating loss.  The increase in property, equipment
and land and assets held for sale are as a result of improvements made to the
"Girls' Life Living" location, personal property and leasehold improvements
purchased at the "Adam Leaf and Bean" location and the building and land
purchased for the "Adam Discount Cigarettes and Liquors". Deferred
subscription revenue declined due to a higher relative volume of agency
subscriptions.  Deferred subscription revenue is also affected by the timing
of renewals which can be affected by the timing of direct mail advertising.

At April 30, 2002, the Company had no debt with third-party lenders other
than the cash overdraft.

During fiscal 2002, cash and cash equivalents ranged from a deficit of
$121,000 to a positive balance of  $1.1 million. The Company's cash and
cash equivalents are subject to variation based upon the timing of receipts
and the payment of payables.

Management believes that existing cash and cash equivalents, and certificates
of deposit together with cash generated from operations and investing
activities, will be sufficient to meet the Company's liquidity and capital
needs for the next 12 months.

IMPACT OF INFLATION AND CHANGING PRICES

The price of paper is a significant expense of the Company's publishing
business.   Paper price increases may have an adverse effect on the Company's
future results.  Postage for the magazine distribution is also a significant
expense of the Company.   The Company uses the U.S. Postal Service for
distribution of its magazine.  Postage costs increase periodically and can be
expected to increase in the future.  No assurances can be given that the
Company can pass such cost increases through to its customer.



<TABLE>
Item 7.     FINANCIAL STATEMENTS

Consolidated Statement of Financial Condition
<CAPTION>
------------------------------------------------------------
April 30,                                          2002
------------------------------------------------------------
                                             (000's Omitted)
<S>                                              <C>
ASSETS

CURRENT ASSETS
   Certificates of deposit                        $4,669
   Accounts receivable, net                          448
   Marketable securities available
       for sale                                       32
   Inventory                                         251
   Prepaid expenses                                  117
   Income taxes receivable                           293
                                                  -------
                   TOTAL CURRENT ASSETS            5,810

PROPERTY AND EQUIPMENT
   Leasehold improvements                            387
   Machinery, equipment, furniture and
      fixtures                                       508
                                                  -------
                                                     895
   Less accumulated depreciation                    (573)
                                                  -------
                                                     322
   Buildings and other assets held for sale          136
   Investment in Peerce's Plantation GL            1,992
                                                  -------
                                                   2,450
   Trademarks - net                                   10
                                                  ------
                                                  $8,270
                                                  =======

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Cash overdraft                                 $  121
   Accounts payable                                  399
   Accrued expenses                                   77
   Deferred subscription revenue                   1,396
                                                  -------
                  TOTAL CURRENT LIABILITIES        1,993
                                                  -------
DEFERRED INCOME TAXES                                230
                                                  -------
STOCKHOLDERS' EQUITY
   Common Stock-par value $.001 per share:
      Authorized - 10,000,000 shares;
      shares outstanding 1,619,820                     2
   Capital surplus                                 3,781
   Retained earnings                               2,273
   Accumulated other comprehensive income (loss)      (9)
                                                  -------
                   TOTAL STOCKHOLDERS' EQUITY      6,047
                                                  -------
                                                  $8,270
                                                  =======

<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
Item 7.             FINANCIAL STATEMENTS (Continued)

Consolidated Statements of Operations
<CAPTION>
-----------------------------------------------------------------------
Years Ended April 30,                            2002        2001
-----------------------------------------------------------------------

                               (000's Omitted, except share information)
<S>                                          <C>          <C>
Net Sales - publishing                        $ 4,438      $ 4,200
Net Sales - retail                                145            0
                                              ----------------------
                                                4,583        4,200

Cost of goods sold - publishing                 3,245        3,278
Cost of goods sold - retail                       222            0
                                              ----------------------
                                                3,467        3,278
                                              ----------------------
Gross profit from continuing operations         1,116          922
                                              ----------------------
Selling, general and administrative
   expenses                                     1,657        1,585
                                              ----------------------
Other income:
   Investment and interest income                 319          491
   Other                                            4           25
                                              ----------------------
                                                  323          516
                                              ----------------------
Loss from continuing operations
   before income tax benefit                     (218)        (147)

Income tax benefit                                (64)         (36)
                                                --------------------
Loss from continuing operations                  (154)        (111)

Discontinued Operations:
   Operating loss from "Adam" magazine
      (net of income tax benefit of
      ($158 and $10) for the years
       ended April 30, 2002 and
       2001, respectively                        (382)         (32)
   Operating loss from "Girls Life
      Living" food court (net of
      income tax benefit of $69 and
      $7) for the years ended April
      30, 2002 and 2001, respectively            (168)         (23)
   Loss on disposal of assets from
      "Girls Life Living" (net of
      income tax benefit of $38)
      for the year ended April 30,
      2002                                        (91)           0
                                             -----------------------
Loss from discontinued operations                (641)         (55)

                                             -----------------------
Net loss                                     $   (795)        (166)
                                             =======================
Net loss per common share -
      basic and diluted:

Loss from continuing
     operations per share                    $  (.09)      $  (.07)

Loss from discontinued operations               (.40)         (.03)
                                             -----------------------
Net loss per common share -
      basic and diluted                      $  (.49)      $  (.10)
                                             =======================
Weighted average number of shares
     outstanding - basic and diluted         1,619,820     1,619,820
                                             =======================
<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
Item 7.                FINANCIAL STATEMENTS (Continued)

Consolidated Statements of Changes in Stockholders' Equity
<CAPTION>
------------------------------------------------------------------
Years Ended April 30, 2002 and 2001
------------------------------------------------------------------

                   (000's omitted, except shares outstanding data)

                                                                     Total
                    Common Capital Retained Comprehensive Treasury Stockholders'
                    Stock   Surplus  Earnings  Income       Stock    Equity
                  --------- -------  --------  ------     -------- ------------
<S>                <C>     <C>      <C>       <C>          <C>       <C>

Balance
May 1, 2000        $ 527   $ 3,378  $ 3,234   $ (10)       $ (122)   $7,007

Elimination of
 Treasury Stock     (122)                                     122         -

Adjust par value
 from $.25 to
 $.001              (403)     403                                         -

Other comprehensive
income - unrealized
loss on marketable
securities avail-
able-for sale                                    (4)                      (4)

Net loss                               (166)                            (166)

                                                                  -----------
Total comprehensive
  income (loss)                                                         (170)
                   -----  -------  -------   -------   --------   -----------
Balance
April 30, 2001         2    3,781    3,068      (14)        -          6,837

Other comprehensive
income - unrealized
gain on marketable
securities avail-
able-for sale                                     5                        5

Net loss                              (795)                             (795)

                                                                     --------
Total comprehensive
   income (loss)                                                        (790)
                   -----  -------  -------   ------     -------      --------
Balance
April 30, 2002     $   2  $ 3,781  $ 2,273   $   (9)    $    -       $ 6,047
                    ==========================================================

Shares Outstanding:  April 30, 2001    1,619,820
                     April 30, 2002    1,619,820


<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
Item 7.               FINANCIAL STATEMENTS (Continued)

<CAPTION>

Consolidated Statements of Cash Flows
-------------------------------------------------------------------
Year Ended April 30,                              2002         2001
-------------------------------------------------------------------
                                                 (000's Omitted)
<S>                                           <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net loss                                      $  (795)      $ (166)
  Adjustments to reconcile net loss
     to net cash used by operating
       activities:
     Depreciation and amortization                 104           78
     Loss on disposal of fixed assets              158            0
     Obsolete inventory                             40            0
     Bad debt expense                               26            0
     Deferred income taxes                         (32)         (16)
     Increase/decrease in operating assets
       and liabilities:
        Accounts receivable, gross                (187)         (57)
        Inventories                               (291)           0
        Prepaid expenses                           (67)         (15)
        Accounts payable                           114            6
        Accrued expenses                            10           13
        Income taxes receivable                   (181)          43
        Deferred subscription revenue              (93)          11
                                                --------------------
Total cash used by operating
      activities                                (1,194)        (103)
                                                --------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment           (2,381)        (178)
  Trademark costs                                   (6)         (12)
  Maturity of investment in
    certificates of deposit                      2,338       (7,007)
                                                --------------------
    Total cash used by
      investing activities                         (49)      (7,197)
                                                --------------------
NET DECREASE IN CASH AND
    CASH EQUIVALENTS                            (1,243)      (7,300)

CASH AND CASH EQUIVALENTS
  BEGINNING OF YEAR                              1,122        8,422
                                               --------------------
CASH AND CASH EQUIVALENTS (OVERDRAFT)
  END OF YEAR                                  $  (121)     $ 1,122
                                               ====================

Non-cash investing activities:
   Transfer of property and equipment
      to assets held for sale                  $   136      $     0
                                               ====================

<FN>
<F1>
See Notes to Consolidated Financial Statements.
</FN>
</TABLE>


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION: The consolidated financial statements include
the accounts of Monarch Services, Inc. and its wholly owned subsidiaries,
Girls' Life, Inc., Girls Life.com, Girls Life Living, Inc.,Adam Magazine,
Inc., Adam Corp. and Adam Leaf and Bean, Inc. ("collectively the Company").
Consolidation has resulted in the elimination of all significant
intercompany balances and transactions. Certain reclassifications
have been made to amounts previously reported to conform with the
classifications made in 2002.

Monarch  Services, Inc. ("Monarch") on November 30, 2000, became a Maryland
corporation.  The Company was previously incorporated in the State of
Delaware.

Girls' Life, Inc. ("Girls' Life") was incorporated in December 1993 in the
State  of  Maryland and publishes a magazine for girls age ten to fifteen.
Magazines are sold nationally and internationally through distributors and
directly by Girls' Life through one, two and three year subscriptions.

Girls Life Living, Inc. was incorporated on March 12, 1997 in the State of
Maryland. During 2001, this subsidiary began limited activity developing a
model for a theme restaurant called "Girls Life Living".  "Girls Life Living"
started doing business in December 2001.

Adam Leaf and Bean, Inc. was incorporated on June 11, 1997 in the State of
Maryland.  "Adam Leaf and Bean", a tobacco and coffee shop, started doing
business in December 2001.

Adam Magazine, Inc. was incorporated on June 11, 1997 in the State of
Maryland. During 2001, this subsidiary began limited activity developing
a new magazine for young men called "Adam".

Girlslife.com, Inc. was incorporated on January 24, 2000 in the State of
Maryland. Sales for this subsidiary were minimal in fiscal year 2002.  Sales
for Girlslife.com have been included in the total sales of Girl's Life
magazine for the fiscal year 2002.

Adam Corp. was incorporated on November 16, 2001 in the State of Maryland.
This subsidiary holds the property that was planned to become "Adam Discount
Cigarettes and Liquors".

USE  OF ESTIMATES: The preparation of financial statements in conformity
with accounting  principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

REVENUE RECOGNITION: The Company recognizes revenue in accordance with
Securities and Exchange Commission's Staff Accounting Bulletin No. 101
Revenue Recognition in Financial Statements ("SAB 101") whereby revenue
related to subscriptions for its magazines is recognized upon shipment
of the magazine to the subscriber.  The adoption of SAB 101 during 2001
had no effect on the statement of operations or financial position of
the Company. Deferred subscription revenue represents amounts collected
for subscriptions of the magazine not yet issued.

CASH  EQUIVALENTS:  For the purpose of reporting cash flows, the Company
considers all highly liquid debt instruments purchased with an original
maturity of three months or less to be cash equivalents.

ACCOUNTS RECEIVABLE: Girls' Life sells its magazine through distributors  and
direct individual subscriptions. Receivables consist of advertising income
and sales of magazines through the distributors for issues released prior to
April 30.  Services for publishing and editing are also included in accounts
receivable.

TRADEMARKS: Direct costs associated with obtaining trademarks are amortized
using the straight-line method over periods estimated to be benefited.

PROPERTY  AND  EQUIPMENT: Property and equipment is carried at cost and
depreciation  is  computed by the straight-line method over estimated  useful
lives ranging from three to forty years.  The investment in "Peerce's
Plantation GL" is carried at cost.  Buildings and other assets held for
sale are carried at the lower of cost or estimated fair value, less
disposal costs.

FINANCIAL  INSTRUMENTS: The current carrying value of current assets and
current liabilities is a reasonable estimate of their fair value due to the
short-term nature of such accounts.

MARKETABLE  SECURITIES: The Company accounts for its investments in equity
securities under the accounting and reporting provisions of Statement of
Financial Accounting Standards No. 115 ("SFAS No. 115").  The Company has
classified its investments as available-for-sale based on its intended use.
As such, unrealized holding gains and losses are included as other
comprehensive income, a separate component of stockholders' equity.

RESEARCH  AND DEVELOPMENT COSTS: The Company had no research and development
costs during the fiscal year 2002.

COSTS ASSOCIATED WITH START-UP ACTIVITIES: The Company accounts for start-up
costs in accordance with the American Institute of Certified Public
Accountants' Statement of Position 98-5 Reporting on the Costs of Start-up
Activities, which requires such costs to be expensed in the period incurred.

INCOME  TAXES:  The  Company provides for income  taxes  using Statement  of
Financial Accounting Standards No. 109, "Accounting for Income Taxes," ("SFAS
No. 109") which requires an asset and liability  approach to financial
accounting and reporting for income taxes (see Note F). Under SFAS No. 109,
deferred tax assets and liabilities are provided for differences between the
financial statement and tax bases of assets and liabilities that will result
in  future taxable income or deductible amounts. The deferred tax assets and
liabilities are measured using enacted tax laws and rates applicable to the
periods in which the differences are expected to affect taxable income.
Income tax expense is computed as the tax payable or refundable for the
period  plus or minus the change during the period in deferred tax assets or
liabilities. Income tax benefits are recognized to the extent that carryback
claims are available.

EARNINGS  PER  SHARE: Basic earnings per share is computed by dividing net
earnings (loss) available to common stockholders by the weighted average
number of common shares outstanding during the year.  Diluted earnings (loss)
per share is computed by including the average common stock equivalents
outstanding, if any, to the weighted average number of common shares
outstanding during the period.

STOCK-BASED  COMPENSATION ARRANGEMENTS:  The Company applies APB Opinion No.
25  and  related  interpretations in accounting for stock based compensation
arrangements. Accordingly, no compensation expense has been recognized.  For
disclosure purposes, pro-forma results have been determined based on the fair
value method consistent with  SFAS  No. 123,  "Accounting for Stock-Based
Compensation".

Recently Issued Accounting Pronouncements

In July 2001, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ('SFAS") No. 141, "Business Combinations" and
SFAS No. 142, "Goodwill and Other Intangible Assets".  SFAS No. 141 requires
that the purchase method of accounting be used for all business combinations
initiated after June 30, 2001, as well as all purchase method business
combinations completed after June 30, 2001.  SFAS No. 141 also specifies
criteria that intangible assets acquired in a purchase method business
combination must meet to be recognized and reported apart from goodwill.
SFAS No. 142 requires that goodwill and intangible assets with indefinite
useful lives no longer be amortized, but instead be tested for impairment
at least annually in accordance with the provisions of SFAS No. 142.  SFAS
No. 142 also requires that intangible assets with definite useful lives be
amortized over their respective estimated useful lives to their estimated
residual values and reviewed for impairment.

The provisions of SFAS No. 142 were adopted by the Company as required
effective May 1, 2002.  The adoption of SFAS Nos. 141 and 142 had no
effect on the Company's financial condition or results of operations.

In August 2001, the Financial Accounting Standards Board issued SFAS No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets",
which supersedes both SFAS No. 121, "Accounting for the Impairment of
Long-Lived Assets to Be Disposed Of" and the accounting and reporting
provisions of APB Opinion No. 30, "Reporting the Results of Operations-
Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions",
for the disposal of a segment of a business (as previously defined in that
Opinion).  SFAS No. 144 retains the fundamental provisions in SFAS No. 121
for recognizing and measuring impairment losses in long-lived assets held
for use and long-lived assets to be disposed of by sale, while also
resolving significant implementation issues associated with SFAS No. 121.
The provisions of SFAS No. 144 are effective for years beginning after
December 15, 2001, and its adoption is not expected to affect the financial
position or results of operations of the Company.



NOTE B - DISCONTINUED OPERATIONS:

DISCONTINUED PUBLICATION OF ADAM MAGAZINE:

Effective with the June/July 2002 issue of "Adam" magazine on sale in May
2002, the Company terminated the publication of Adam Magazine.  All sales
and costs associated with Adam magazine has been reclassified as Discontinued
Operations for the year ended April 30, 2002 and 2001.

Net sales and loss from discontinued operation of "Adam" magazine are as
follows (in thousands):

                                         Years Ended April 30,
                                           2002        2001
---------------------------------------------------------------------
Net sales                                 $    9      $  0

Loss from discontinued
   operations (net of tax)                  (382)      (32)



DISCONTINUED OPERATIONS OF GIRLS LIFE LIVING:

Effective July 2002, "Girls Life Living" food court will be closed.  All
sales and costs associated with Girls Life Living has been reclassified
as Discontinued Operations for the year ended April 30, 2002 and 2001.

Net sales and loss from discontinued operation of "Girls Life Living"
food court are as follows (in thousands):

                                         Years Ended April 30,
                                           2002        2001
---------------------------------------------------------------------
Net sales                                 $   17      $  0

Loss from discontinued
   operations (net of tax)                  (168)      (23)
Loss on disposal of assets
   (net of tax)                              (91)        0



NOTE C - ACCOUNTS RECEIVABLE
Accounts receivable consist of the following at April 30, 2002 (in thousands):

Accounts Receivable - publishing     $  488
Accounts Receivable - retail             10
                                     -------
                                        498
Less:
  Allowance for doubtful accounts      ( 50)
                                     -------
      Accounts receivable, net       $  448
                                     =======

Bad debt expense charged to operations was $26,000 and $0 for the years
ended April 30, 2002 and 2001, respectively.


NOTE D - CERTIFICATES OF DEPOSITS

As of April 30, 2002, investments in certificates of deposit consisted of
the following (in thousands):

       Rate                Maturity                Amount
      ------              ----------            ------------

       4.40%               01/20/03              $ 4,476
       4.40%               01/20/03                  193
                                                ------------
                  Total                          $ 4,669
                                                ============

The certificates of deposit are in excess of federal insurance limits.



NOTE E - MARKETABLE SECURITIES AVAILABLE-FOR-SALE

At April 30, 2002, the cost and estimated fair value of marketable
securities, available-for-sale are as follows (in thousands):

                                Unrealized      Unrealized     Estimated
                       Cost       Gains            Loss        Fair Value
                     ------------------------------------------------------
Equity Securities      $ 49       $ -             $ 17           $ 32
                     ======================================================



NOTE F - INCOME TAXES

A  reconciliation of the effective tax rate for income taxes in the financial
statements to the federal statutory rate is as follows:

-----------------------------------------------------------------------------
Years Ended April 30,                                         2002      2001
-----------------------------------------------------------------------------

Federal income tax (benefit) expense at statutory rate         (34)%    (34)%
Non-deductible items                                             1        9
State income taxes, net of federal benefit                       -        -
Other                                                            4        1
                                                              -----     -----
                                                               (29)%    (24)%
                                                              =====     =====

The  deferred  tax  assets (liabilities) result from the following temporary
differences (in thousands):
--------------------------------------------------------------
April 30,                                           2002
--------------------------------------------------------------
Deferred tax assets:
  Financial statement accruals, net              $   19
  Allowances for accounts receivable                 19
  Unrealized loss on marketable securities
    available-for-sale                                7
                                                 --------
       Total deferred tax assets                     45

Deferred tax liabilities:
    Property and equipment                         (275)
                                                 --------
Net deferred tax liabilities                     $ (230)
                                                 ========


Cash payments for income taxes were $0 and $35,000 for the years ended
April 30, 2002 and 2001, respectively.


NOTE G - PROFIT-SHARING PLAN

During fiscal year 2002, the original  profit sharing plan was changed to a
401(k) defined contribution plan which allows employees to make contributions
to their individual 401(k) plan through payroll deductions.  The Company made
no contributions to the original profit sharing plan or the new 401(k) plan
in fiscal years ended 2002 and 2001.


NOTE H - STOCK OPTION PLANS

The Company's Omnibus Stock Option Plan (the  "Omnibus Plan") provides for the
granting of certain types of qualified and nonqualified stock options to
directors, executive officers and key employees on a periodic basis at the
discretion of the Company's Board of Directors.  The Company has reserved
300,000 shares of common stock under the Omnibus Plan.

Options for 10,000 and 200,000 shares of common stock were granted during
the years ended April 30, 2001 and 2000, respectively. The options begin to
vest at an annual rate of 25% after the completion of one year of service
after the date of grant. The weighted average exercise price of the options
granted during fiscal 2001 and 2000 was $3.81 and $3.72 respectively.  As of
April 30, 2002, the options outstanding have a weighted average remaining
contractual life of 2.8 years and a weighted average exercise price of
$3.73.


The fair value of  the options granted that began to vest during 2001 and
2002 were estimated using the Black-Scholes option-pricing model and used
the following assumptions for the 2000 and 2001 grants:

                               2002       2001
                               ----       ----
Dividend yield                   0%          0%
Expected volatility             75%         74%
Risk-free interest rate       4.93%       4.99%
Expected lives (in years)        5           5

The Company has adopted the disclosure-only provisions of Statement of Financial
Accounting Standards No. 123, "Accounting for Stock-Based Compensation" (SFAS
No. 123), but applies Accounting Principles Board Opinion No. 25 and related
interpretations in accounting for its stock option plans.  Such interpretations
include Financial Accounting Standards Board Interpretation No. 44, "Accounting
for Certain Transactions Involving Stock Compensation: An Interpretation of APB
No. 25" (FIN No. 44) which was issued in April 2000.  The Company has adopted
the provisions of FIN No. 44, and such adoption did not materially impact the
Company's results of operation.

No compensation expense related to the Company's stock option plans was
recorded during the two years ended April 30, 2002.  If the Company had
elected to recognize compensation cost based on the fair value at the grant
dates for awards under the plan consistent with the method prescribed by
SFAS No. 123, net income and earnings per share would have been changed to
the pro forma amounts as follows for options vested during the years ended
April 30, 2002 and 2001:

(In thousands, except per share data)
-------------------------------------------------------------

                                          2002         2001
                                          ----         ----
Net loss:
  As reported                           $ (795)      $ (166)
  Pro forma *                             (920)        (286)
Basic and diluted net loss per share:
  As reported                           $ (.49)     $ (0.10)
  Pro forma *                             (.57)       (0.18)

* The pro forma amounts are not representative of the effects
    on reported earnings for future years.



NOTE I - COMMITMENTS AND CONTINGENCIES

LEASES: The Company leases office and warehouse and other facilities. The
lease for the office  and warehouse facilities currently in use was extended for
a term  of 10  years  commencing July 1997, and ending June 2007. The lease for
the food court facilities started in November 2000 and will be leased through
2005. The Company generally must  pay for property taxes, insurance and
maintenance costs related to  the property.  The  lease for the property
previously used by the games  division was terminated in December 1999.  Total
rental expense for 2002 and 2001 was approximately $210,000 and $166,000,
respectively.

The  future  annual minimum rental commitments for the current non-cancelable
operating leases as of April 30, 2001 is $131,000 annually through 2007 for the
office and warehouse facilities and $72,000 annually through 2005 for the food
court facilities.

The office and warehouse facilities and the food court facilities are leased
through 2007 and 2005 respectively for approximately $140,000 and $70,000
respectively annually from the Chairman of the Company and a member of  his
family.  The lease for the food court facilities is currently being
re-negotiated as a result of the discontinued operations of Girls Life Living
and may be mutually terminated prior to its contractual maturity, however
no agreement has yet been reached. The tobacco and coffee shop facilities are
leased through 2004 for approximately $69,000 annually.  The lease agreements
provide for escalation of rent based on certain indexes.

Expected lease payments under the above operating leases are as follows:


                                       2003   2004    2005    2006    2007
                                     ------  ------  ------  ------  ------
                                                 (in thousands)

Property: Office and Warehouse       $ 127   $ 127   $ 127   $ 127   $ 127
Property: Food court facilities         72      72      72       -       -
Property: Tobacco and Coffee shop       69      69       -       -       -
                                     -----   -----   -----   -----   -----
      Total lease payments           $ 268   $ 268   $ 199   $ 127   $ 127



LITIGATION: The Company is involved, from time to time, in legal actions arising
in its normal course of operations.  As of April 30, 2002, there was no pending
litigation against the Company.


NOTE J - SEGMENT INFORMATION

The Company currently operates in two industry segments. The Company's
primary operation during fiscal year 2002 was the publication of "Girls'
Life" magazine in the publishing segment and "Adam Leaf and Bean" tobacco
and coffee shop in the retail segment.  These segments do not meet the
quantitive thresholds described in SFAS No. 131 "Segment Reporting" that
require segment reporting disclosure.



Independent Auditors' Report


To the Stockholders and Board of Directors, Monarch Services, Inc.

We have audited the accompanying consolidated statement of financial
condition of Monarch Services, Inc. and Subsidiaries as of April 30, 2002
and the related consolidated statements of operations, changes in
stockholders' equity, and cash flows for each of the two years in the period
ended April 30, 2002. These financial statements are the responsibility of
the Company's management.   Our responsibility is to express an opinion on
these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are  free of  material  misstatement. An audit includes
examining, on a test  basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe our
audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of
Monarch  Services, Inc. and Subsidiaries  as of April 30, 2002, and the
results of their operations  and their cash flows for each of the two
years in the period ended April 30, 2002 in conformity with accounting
principles generally accepted in the United States of America.


/s/  Stegman & Company
------------------------
Stegman & Company
Baltimore, Maryland
June 25, 2002




Item 8.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
          AND FINANCIAL DISCLOSURE

          NONE




                                PART III

     Information required in Part III, Items 9-12 is incorporated by
     reference to the Company's proxy statement to be filed in
     connection with the 2001 Annual Meeting of Stockholders.


Item 9.   DIRECTORS,  EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
          PERSONS, COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE
          ACT

          The information required by Item 9 is incorporated by
          reference from the information set forth under the heading
          "Election of Directors--Directors and Officers" and "Section
          16(A) Beneficial Ownership Reporting Compliance" in the
          Company's definitive proxy statement for its 2001 annual
          meeting of stockholders.

Item 10.  EXECUTIVE COMPENSATION

          The information required by Item 10 is incorporated by reference
          from the information set forth under the heading "Election of
          Directors--Executive Compensation" in the Company's definitive
          proxy statement for its 2001 annual meeting of stockholders.

Item 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
          MANAGEMENT

          The information required by Item 11 is incorporated by reference
          from the information set forth under the heading "Ownership of
          Voting Securities--Principal Stockholders" in the Company's
          definitive proxy statement for its 2001 annual meeting of
          stockholders.

Item 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

          The information required by Item 12 is incorporated by reference
          from the information set forth under the heading "Election of
          Directors--Certain Relationships and Related Transactions" in
          the Company's definitive proxy statement for its 2001 annual
          meeting of stockholders.

Item 13.  EXHIBITS AND REPORTS ON FORM 8-K
          (a) Listing of Exhibits:
            3.(a) The Company's Articles of Incorporation dated
                  September 22, 2000 (incorporated by reference
                  to Exhibit 3A.1  to the Company's Form 8-K
                  filed December 29, 2000).

              (b) The Company's Articles Supplementary dated
                  December 21, 2000 (incorporated by reference
                  to Exhibit 3A.2 to the Company's Form 8-K
                  filed December 29, 2000).

              (h) The Company's By-Laws dated July 25, 2001
                  (filed herewith).


          10. (a) Lease Agreement dated July 2, 1973 between the
                  Company as Lessee and A. Eric Dott and Esther J.
                  Dott as lessors (incorporated by reference to
                  Exhibit 10(a) to the Company's Form 10-KSB for
                  the fiscal year ended April 30, 1995).

              (b) Lease renewal and Amendment of Lease Agreement
                  dated July 1, 1983 between the Company and A.
                  Eric Dott and Esther J. Dott, renewing and
                  amending terms of the Lease Agreement in
                  Exhibit 10(a) (incorporated by reference to
                  Exhibit 10(b) to the Company's Form 10-KSB
                  for the fiscal year ended April 30, 1995).

              (c) Lease renewal and Amendment of Lease Agreement
                  dated July 1, 1997 between the Company and A. Eric
                  Dott and Esther J. Dott, renewing and amending
                  terms of the Lease Agreement in Exhibit 10(a)
                  (incorporated by reference to Exhibit 10(b) to
                  the Company's Form 10-QSB for the quarter ended
                  October 31, 1998).

              (d) Monarch Services, Inc. Omnibus Stock Plan incorporated
                  by reference to Ex. 4 to the Company's Form S-8
                  (file no. 333-31536) as filed with the Securities
                  and Exchange Commission on March 2, 2000.

              (e) Lease agreement dated November 1, 2001 between the
                  Company as Lessee and A. Eric Dott and Esther J.
                  Dott as Lessors.

              (f) Addendum to lease agreement dated November 1, 2001
                  between the Company as lessee and A. Eric Dott and
                  Esther J. Dott as lessors (filed herewith).

           21.    Subsidiaries of the Registrant (incorporated
                  by reference to Exhibit 21 to the Company's
                  Form 10-QSB for the quarter ended January 31,
                  2002).

           23.1   Consent of Stegman & Company(filed herewith).



                          S I G N A T U R E S

In accordance with 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, thereunto duly authorized.


                                     MONARCH SERVICES, INC.


                                     By:  /s/    A. Eric Dott
                                          --------------------------
                                          A. Eric Dott, Chairman
                                                and Director

DATE: July 29, 2002
      -------------





In  accordance with the Securities Exchange Act of 1934, this report has been
signed below by the following persons on behalf of the registrant and in  the
capacities and on the dates indicated.



Date   July 29, 2002                     /s/     Jackson Y. Dott
     ----------------                    -------------------------------
                                         Jackson Y. Dott, President
                                        (Principal Executive Officer),
                                           Treasurer and Director


Date   July 29, 2002                     /s/    David F. Gonano
     ----------------                    -------------------------------
                                         David F. Gonano, Director



Date   July 29, 2002                     /s/   Helen Delich Bentley
     ----------------                    -------------------------------
                                         Helen Delich Bentley, Director



Date   July 29, 2002                     /s/   Kenneth C. Holt
     ----------------                    -------------------------------
                                         Kenneth C. Holt, Director



Date   July 29, 2002                     /s/    A. Eric Dott
     ----------------                    -------------------------------
                                         A. Eric Dott, Chairman and
                                            Director



Date  July 29, 2002                      /s/    Marshall Chadwell
    ----------------                    -------------------------------
                                         Marshall Chadwell, Controller
                                        (Principal Financial Officer),
                                         Principal Accounting Officer






                               EXHIBIT INDEX

Exhibit Number
--------------

     10.(f)    -        Addendum to lease agreement dated November
                        1, 2000 between the Company as lessee and
                        A. Eric Dott and Esther J. Dott as lessors

     23.1      -        Consent from Stegman & Company