FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

(Mark One)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

         For the quarterly period ended:      November 30, 1996


[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

                          Commission File No.: 0-10093


                          AMERICAN METALS SERVICE, INC.
       (Exact name of small business issuer as specified in its charter)


         Florida                                             9-1224913
(State or other jurisdiction of                          (I.R.S. Employer
incorporation or organization)                           Identification No.)


           376 Main Street, P.O. Box 74, Bedminster, New Jersey 07921
              (Address of principal executive offices) (Zip Code)


                                 (908) 234-0078
                           (Issuer's telephone number)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

                            Yes X               No _____

     State the number of shares  outstanding of each of the issuer's  classes of
common equity as of the latest  practicable  date: As of November 30, 1996,  the
issuer had  1,958,872  shares of its common  stock,  par value $.01,  per share,
outstanding.

           Transitional Small Business Disclosure Format (check one):
                            Yes                 No   X



<PAGE>


PART I -          FINANCIAL INFORMATION

Item 1. -         Financial Statements




<TABLE>
<CAPTION>


                          AMERICAN METALS SERVICE, INC.
                                  BALANCE SHEET
                                   (Unaudited)


                                                        November 30,
                                                           1996
                                                       ($000 Omitted)
                                                      ----------------
<S>                                                        <C>
ASSETS

    Current assets:
        Cash and cash equivalents, including
          U.S. treasury bills of $1,999,000                 $2,094
                                                            ------
               Total current assets                         $2,094
                                                            ======



LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
        Accounts payable and accrued liabilities            $   25
                                                            ------
               Total current liabilities                        25
                                                            ------

    Stockholders' equity:
        Common stock, $.01 par value, 6,000,000
           shares authorized, 1,958,872 issued
           and outstanding                                     20
        Additional capital in excess of par value           3,062
        Accumulated deficit                                (1,013)
                                                            -----

               Total stockholders' equity                   2,069
                                                            -----

               Total liabilities and stockholders'
                  equity                                   $2,094
                                                           ======



</TABLE>









                 See accompanying note to financial statements.



                                                                


<PAGE>



<TABLE>
<CAPTION>

                          AMERICAN METALS SERVICE, INC.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)



                                                                                   
                                                       For the three months
                                                        ended November 30,
                                                      ---------------------
                                                       1996          1995
                                                      ------        ------
                                                         ($000 Omitted,
                                                      Except Per Share Data)

<S>                                                   <C>           <C>
Interest income                                       $   26        $   27

General and administrative expenses                       22            16
                                                      ------        ------

Income before income taxes                                 4            11

Provision for income taxes                                 -             -
                                                      ------        ------

Net income                                            $    4        $   11
                                                      ======        ======

Net income per common share                           $    -        $  .01
                                                      ======        ======

Weighted average number of shares
    outstanding (in 000's)                             1,959         1,959
                                                      ======        ======





</TABLE>



                 See accompanying note to financial statements.




                                                             



<PAGE>


<TABLE>
<CAPTION>

                          AMERICAN METALS SERVICE, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                           For the three months
                                                            ended November 30,
                                                           1996           1995
                                                          -------       --------
                                                             ($000 Omitted)
<S>                                                        <C>           <C>
Cash flows from operating activities:
     Net cash provided by
       operating activities                               $    4         $   26
                                                          ------         ------

Net increase in cash and cash
  equivalents                                                  4             26
Cash and cash equivalents at beginning
  of the period                                            2,090          2,025
                                                          ------         ------
Cash and cash equivalents at end of
  the period                                              $2,094         $2,051
                                                          ======         ======

Reconciliation of net income 
  to net cash provided by 
  operating activities:
    Net income                                            $    4         $   11
        Adjustments to reconcile net income
          to net cash provided by
          operating activities:
        Increase in accounts payable
          and accrued liabilities                              -             15
                                                          ------         ------
    Net cash provided by operating
      activities                                          $    4         $   26
                                                          ======         ======



</TABLE>







                 See accompanying note to financial statements.




<PAGE>




                          AMERICAN METALS SERVICE, INC.

                          NOTE TO FINANCIAL STATEMENTS

                                   (Unaudited)



     The accompanying unaudited financial statements of American Metals Service,
Inc. (the "Company") as of November 30, 1996 and for the quarters ended November
30, 1996 and 1995  reflect all  material  adjustments  which,  in the opinion of
management,  are  necessary for a fair  presentation  of results for the interim
periods.  Certain information and footnote  disclosures required under generally
accepted  accounting  principles have been condensed or omitted  pursuant to the
rules and  regulations of the Securities and Exchange  Commission,  although the
Company  believes  that the  disclosures  are  adequate to make the  information
presented  not  misleading.   These  financial  statements  should  be  read  in
conjunction with the year-end financial statements and notes thereto included in
the  Company's  Annual Report on Form 10-KSB for the year ended August 31, 1996,
as filed with the Securities and Exchange Commission.  Certain reclassifications
have  been made to the prior  year's  financial  statements  to  conform  to the
current year's presentation.

     The results of operations  for the quarter ended  November 30, 1996 are not
necessarily  indicative of the results to be expected for the entire fiscal year
or for any other period.






<PAGE>




Item 2. - Management's Discussion and Analysis or Plan of
          Operations

Results of Operations
---------------------

     Until the fourth  quarter of fiscal  1992,  the  Company was engaged in the
wholesale distribution of aluminum alloys, steel and other specialty metals. The
Company has liquidated the assets of its former business and is actively seeking
an acquisition with the goal of becoming an operating  company.  In the interim,
available cash is being invested in U.S.  Treasury  securities.  Interest income
for the quarter ended November 30, 1996, was  approximately  $26,000 compared to
$27,000 in the  comparable  quarter of the prior  fiscal  year.  The decrease in
interest  income  was  due  to  lower  interest  rates  on  the  Company's  cash
equivalents.

     General  and  administrative  expenses  were  $22,000  and  $16,000 for the
quarters ended November 30, 1996 and 1995, respectively. The increase in general
and administrative expenses of approximately $6,000 was due to expenses incurred
in the search for an operating  business  and  additional  professional  fees. A
management  fee of $12,500  per  quarter is paid to an  affiliated  company  for
accounting,  financial and administrative  management.  This fee is based on the
affiliate's  estimated costs, and management believes that the allocation method
is reasonable.  The remaining general and administrative  expenses for the three
month  periods  ended  November  30,  1996 and  November  30,  1995  consist  of
stockholder, insurance and other miscellaneous expenses.


Liquidity and Capital Resources
-------------------------------

     At November,  1996, cash and cash  equivalents and net working capital were
approximately $2,094,000 and $2,069,000,  respectively.  The U.S. Treasury bills
of  approximately  $1,999,000  mature at various dates through  February,  1997.
Management  believes the  Company's  cash and cash  equivalents  and net working
capital are adequate for its remaining business  activities and for the costs of
seeking  an  acquisition  of an  operating  business.  The net book value of the
Company at November 30, 1996 is $1.06 per share.




<PAGE>



PART II - OTHER INFORMATION

Item 6. - Exhibits and Reports on Form 8-K

        (a)    Exhibits
               --------

           (27).    Financial Data Schedule for the three months ended
                    November 30, 1996.

        (b)    Reports on Form 8-K
               -------------------

               No reports on Form 8-K were filed during the quarter for which
               this Form 10-QSB is filed.




<PAGE>


                                    SIGNATURE



     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                              AMERICAN METALS SERVICE, INC.




Dated:  December 13, 1996                      By: /s/ Mark Koscinski
                                                   -----------------------------
                                                   Mark Koscinski
                                                   Vice President and Secretary