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:     February 28, 1997


[  ]     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                                             59-1224913
(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 February 28, 1997,  the
issuer  had  1,958,732  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>


                          AMERICAN METALS SERVICE, INC.
                                  BALANCE SHEET
                                   (Unaudited)
<CAPTION>


                                                            February 28,
                                                                1997
                                                           ($000 Omitted)
                                                           --------------
<S>                                                           <C>
ASSETS
                                                               
    Current assets:                          
        Cash and cash equivalents, including
          U.S. treasury bills of $2,000,000                    $2,104
                                                               ------
               Total current assets                            $2,104
                                                               ======



LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
        Accounts payable and accrued liabilities               $   17
                                                               ------
               Total current liabilities                           17
                                                               ------

    Stockholders' equity:
        Common stock, $.01 par value, 6,000,000
           shares authorized, 1,958,732 issued
        and outstanding                                            20
        Additional capital in excess of par value               3,061
        Accumulated deficit                                   (   994)
                                                               ------

               Total stockholders' equity                       2,087
                                                               ------

             Total liabilities and stockholders'
                  equity                                       $2,104
                                                               ======



</TABLE>



                 See accompanying note to financial statements.




<PAGE>



<TABLE>


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

<CAPTION>

                                                   For the three months ended
                                                      February 28, 1997 and
                                                        February 29, 1996
                                                   --------------------------
                                                      1997             1996
                                                   ---------        ---------
                                                         ($000 Omitted,
                                                     Except Per Share Data)
<S>                                                 <C>              <C>

Interest income                                     $   24           $   28
Other income                                             1               15
                                                    ------           ------
                                                        25               43

General and administrative expenses                      7               22
                                                    ------           ------


Income before income taxes                              18               21

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

Net income                                          $   18           $   21
                                                    ======           ======

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

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




</TABLE>




                 See accompanying note to financial statements.





<PAGE>

<TABLE>

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

<CAPTION>

                                                   For the six months ended
                                                    February 28, 1997 and
                                                      February 29, 1996
                                                   -------------------------
                                                     1997             1996
                                                   --------         --------
                                                         ($000 Omitted,
                                                      Except Per Share Data)

<S>                                                 <C>             <C>
Revenues:

    Interest                                        $   50          $   54
    Other income                                         1              15
                                                    ------          ------
                                                        51              69


General and administrative expenses                     28              37
                                                    ------          ------


Income before income taxes                              23              32

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

Net income                                          $   23          $   32
                                                    ======          ======

Net income per common share                         $  .01          $  .02
                                                    ======          ======

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




</TABLE>

                 See accompanying note to financial statements.

                                                               




<PAGE>


<TABLE>

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

<CAPTION>

                                                   For the six months ended
                                                    February 28, 1997 and
                                                      February 29, 1996
                                                   --------------------------
                                                     1997              1996
                                                   --------          --------
                                                        ($000 Omitted)

<S>                                               <C>                 <C>
Cash flows from operating activities:
     Net cash provided by
       operating activities                        $   14             $   55
                                                   ------             ------

Net increase in cash and cash
  equivalents                                          14                 55
Cash and cash equivalents at beginning
  of the period                                     2,090              2,018
                                                   ------             ------
Cash and cash equivalents at end of
  the period                                       $2,104             $2,073
                                                   ======             ======

Reconciliation of net income 
     to net cash provided by 
     operating activities:
  Net income                                       $   23             $   32
     Adjustments to reconcile net income
         to net cash provided by
         operating activities:
        Change in accounts payable
          and accrued liabilities                 (     9)                23
                                                    -----             ------
   Net cash provided by operating
     activities                                    $   14             $   55
                                                   ======             ======





</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 February 28, 1997 and for the quarters and six month
periods  ended  February  28, 1997 and  February  29, 1996  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.

     The  results  of  operations  for the  three and six  month  periods  ended
February 28, 1997 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 February 28, 1997, was approximately $24,000,  compared to
$28,000 in the  comparable  quarter of the prior fiscal year.  For the six month
period ended February 28, 1997,  interest income was $50,000 compared to $54,000
for the  comparable  period of the prior fiscal  year.  The decrease in interest
income during the current  fiscal year compared to the prior fiscal year was due
to lower available interest rates on the Company's cash equivalents. Collections
of previously  written-off  accounts  receivable of $1,000 and $15,000 accounted
for the other  income in the six  month  periods  ended  February  28,  1997 and
February 29, 1996, respectively.

     General  and  administrative  expenses  were  $7,000  and  $22,000  for the
quarters  ended  February  28, 1997 and February  29,  1996,  respectively,  and
$28,000  and  $37,000  for the six month  periods  ended  February  28, 1997 and
February 29,  1996,  respectively.  The  decrease in general and  administrative
expenses was due to expenses incurred in the search for an operating business in
the prior fiscal  year.  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 six month periods ended February 28, 1997 and February 29, 1996
consist of stockholder, insurance and other miscellaneous expenses.


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

     At February 28, 1997,  cash and cash  equivalents  and net working  capital
were approximately  $2,104,000 and $2,087,000,  respectively.  The U.S. Treasury
bills of approximately  $2,000,000  mature at various dates through May 15, 1997
and bear interest ranging from 4.96% to 5.16%. 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  February  28,  1997  is
approximately $1.07 per share.



<PAGE>


PART II -         OTHER INFORMATION

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

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

                      (27). Financial Data Schedule for the six months ended
                            February 28, 1997.

           (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: March 25, 1997                             By:/s/ Mark Koscinski
                                                  ------------------------
                                                  Mark Koscinski
                                                  Vice President and Secretary
                                                  (Principal Accounting Officer)