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, 1999 
                                              -----------------  


[  ]     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, 1999, the
issuer had  1,949,622  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


                          AMERICAN METALS SERVICE, INC.
                                  BALANCE SHEET
                                   (Unaudited)


                                                           February 28,
                                                              1999    
                                                          -------------
                                                         ($000 Omitted)

ASSETS

    Current assets:
        Cash and cash equivalents, including
          U.S. treasury bills of $2,035,000                   $2,144
                                                              ------
               Total current assets                           $2,144
                                                              ======



LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
        Accounts payable and accrued liabilities              $    3
                                                              ------
               Total current liabilities                           3
                                                              ------

    Stockholders' equity:
        Common stock, $.01 par value, 6,000,000
           shares authorized, 1,949,622
           shares outstanding                                     19
        Additional capital in excess of par value              3,050
        Accumulated deficit                                  (   928)
                                                              ------

               Total stockholders' equity                      2,141
                                                              ------

               Total liabilities and stockholders'
                  equity                                      $2,144
                                                              ======




                 See accompanying notes to financial statements.

                                                               
<PAGE>




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




                                                          For the three months
                                                           ended February 28, 
                                                          -------------------- 
                                                            1999         1998 
                                                          --------     ------- 
                                                             ($000 Omitted,
                                                          Except Per Share Data)



Interest income                                           $   21         $   26

General and administrative expenses                           15             16
                                                          ------         ------

Income before income taxes                                     6             10

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

Net income                                                $    6         $   10
                                                          ======         ======

Basic and diluted net income per share                    $    -         $  .01
                                                          ======         ======

Weighted average number of shares
    outstanding (in 000's)                                 1,958          1,957
                                                          ======         ======



                 See accompanying notes to financial statements.



                                                            
<PAGE>

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



                                                       For the six months ended
                                                              February 28,     
                                                       ------------------------
                                                        1999              1998  
                                                       --------        --------
                                                            ($000 Omitted,
                                                         Except Per Share Data)




Interest income                                        $   45            $   53

General and administrative expenses                        31                32
                                                       ------            ------
Income before income taxes                                 14                21

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

Net income                                             $   14            $   21
                                                       ======            ======

Basic and diluted net income per share                 $  .01            $  .01
                                                       ======            ======

Weighted average number of shares
    outstanding (in 000's)                              1,963             1,957
                                                       ======            ======




                 See accompanying notes to financial statements.



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


                                                           For the six months
                                                            ended February 28, 
                                                         -----------------------
                                                           1999           1998  
                                                         --------       --------
                                                             ($000 Omitted)
Cash flows from operating activities:
        Net cash provided by
           operating activities                         $    14          $   18

Cash flows from financing activities:
        Issuance of common stock upon
          exercise of stock options                           -              16
        Purchase of common stock                        (    21)              -
                                                         ------          ------

        Net cash provided by (used in)
           financing activities                         (    21)             16
                                                         ------          ------

Net increase (decrease) in cash and cash
    equivalents                                         (     7)             34
Cash and cash equivalents at beginning
    of the period                                         2,151           2,111
                                                         ------          ------
Cash and cash equivalents at end of
    the period                                           $2,144          $2,145
                                                         ======          ======

Reconciliation of net income 
      to net cash provided by 
      operating activities:
  Net income                                             $   14          $   21
        Adjustments to reconcile net income
           to net cash provided by
           operating activities:
        Change in accounts payable
           and accrued liabilities                            -         (     3)
                                                         ------          ------
        Net cash provided by operating
           activities                                    $   14          $   18
                                                         ======          ======



                 See accompanying notes to financial statements.

                                                              


<PAGE>


                          AMERICAN METALS SERVICE, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)


1.  Basis of Presentation
    ---------------------

The accompanying unaudited financial statements of American Metals Service, Inc.
(the  "Company")  as of  February  28, 1999 and for the  quarters  and six month
periods ended February 28, 1999 and 1998 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,
1998, as filed with the Securities and Exchange Commission.

The results of operations for the three and six month periods ended February 28,
1999 are not necessarily indicative of the results to be expected for the entire
fiscal year or for any other period.


2.  Income Per Share
    ----------------

Income per common share is calculated in accordance  with Statement of Financial
Accounting  Standards  No.128 "Earnings Per Share" ("SFAS No. 128") and is based
on the weighted average number of shares outstanding. Diluted earnings per share
includes the assumed  conversion  of shares  issuable  upon  exercise of options
where appropriate. Prior years' earnings per share information has been restated
to comply with the requirements of SFAS No. 128.


<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, 1999, was approximately $21,000,  compared to
$26,000 in the  comparable  quarter of the prior fiscal year.  For the six month
period ended February 28, 1999,  interest income was $45,000 compared to $53,000
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.

General and  administrative  expenses  were $15,000 and $16,000 for the quarters
ended February 28, 1999 and 1998, respectively,  and $31,000 and $32,000 for the
six month periods ended February 28, 1999 and 1998,  respectively.  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  and six  month  periods  ended  February  28,  1999 and 1998  consist  of
stockholder, insurance and other miscellaneous expenses.

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

At February 28, 1999,  cash and cash  equivalents  and net working  capital were
approximately $2,144,000 and $2,141,000,  respectively. U.S. Treasury securities
of approximately $2,035,000 mature at various dates through May 13,1999 and bear
interest  rates ranging from 4.43% to 4.53%.  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,  1999  is
approximately $1.10 per share.

Year 2000 Matters
-----------------

The Year 2000 Issue is the result of computer  programs  being written using two
digits  rather than four to define the  applicable  year.  Any of the  Company's
computer programs that have time- sensitive  software may recognize a date using
"00" as the year 1900  rather  than the year 2000.  Miscalculations  could cause

<PAGE>

disruptions of operations,  including, among other things, a temporary inability
to process transactions or engage in similar normal business activities.

Management  has  determined  that the Year 2000 Issue will not pose  significant
operational  problems for its internal computer  systems.  The Company uses "off
the shelf" accounting  software to maintain its accounting  system. All of these
software  applications  are already Year 2000 compliant.  The cost of being Year
2000 compliant was nominal.  All costs associated with this conversion have been
expensed as incurred.



<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, 1999.

        (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: April 12, 1999                           By: /s/ Mark Koscinski     
                                                   --------------------------
                                                   Mark Koscinski
                                                   Vice President and Secretary